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2016-10-24 City Council Agenda Packet
City Council 1 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. October 24, 2016 Special Meeting Council Chambers 5:30 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 10 days preceding the meeting. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Closed Session Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1.CONFERENCE WITH LABOR NEGOTIATORS THIS ITEM WILL NOT BE HEARD TONIGHT Study Session 5:30-7:00 PM 2.Partner Presentation and Discussion With Palo Alto Housing Corporation REVISED 2 October 24, 2016 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 Changes, Additions and Deletions City Manager Comments 7:00-7:10 PM Oral Communications 7:10-7:25 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Consent Calendar 7:25-7:30 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 3.Finance Committee Recommendation That the City Council Approve the Proposed Low Carbon Fuel Standard Credit Program, Including the use of Revenues From the Sale of Low Carbon Fuel Standard Credits 4.Approval of a Contract With Anderson Pacific Engineering Construction, Inc. (APEC) in the Total Amount of $2,746,563 for the Old Pumping Plant (OPP) Rehabilitation Project at the Regional Water Quality Control Plant - Capital Improvement Program Project WQ-80021 5.Adoption of a Resolution Amending Utilities Rate Schedule E-15 (Electric Service Connection Fees) and Utilities Rule and Regulations 2 (Definitions and Abbreviations) and 18 (Utility Service Connections and Facilities on Customer Premises) to Implement the Low Carbon FuelStandard Program 6.SECOND READING: Adoption of Nine Ordinances to Adopt 2016 California Building Codes, Local Amendments, and Related Updates: (1) Repealing Chapter 16.04 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.04, California Building Code, California Historical Building Code, and California Existing Building Code, 2016 Editions, and Local Amendments and Related Findings; (2) Repealing Chapter 16.05 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.05, California Mechanical Code, 2016 Edition, and Local Amendments and Related Findings; (3) Repealing Chapter 16.06 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.06, California Residential Code, 2016 Edition, and Local Amendments and Related Findings; (4) Repealing Chapter 16.08 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.08, California Plumbing Code, 2016 Edition, and Local Amendments and Related Findings; (5) Repealing Chapter 16.14 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.14, California Green Building Standards Code, 2016 Edition, and Local Amendments and Related Findings; (6) Repealing Chapter 16.16 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.16, 3 October 24, 2016 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. California Electrical Code, 2016 Edition, and Local Amendments and Related Findings; (7) Repealing Chapter 15.04 of the Palo Alto Municipal Code and Amending Title 15 to Adopt a New Chapter 15.04, California Fire Code, 2016 Edition, and Local Amendments and Related Findings; and (8) Adopt a New Title 16, Chapter 16.18 Private Swimming Pool and Spa Code, 2016 Edition and Local Amendments and Related Findings; (9) Amending Title 16, Chapters 16.36 House Numbering and 16.40 Unsafe Buildings for Local Amendments and Related Findings (FIRST READING: October 4, 2016 PASSED: 9-0) 7.Policy and Services Committee Recommends That the City Council Approve its Motions Regarding the Cable Franchise and Public, Education, and Government (PEG) Fees Audit 8.Adoption of a Resolution to Amend and Correct Salary Schedules for: Managers and Professional Employees, Service Employees International Union, Local 521 (SEIU); Service Employees International Union Hourly, Local 521 (SEIU - H); Limited Hourly, Local 521 (HRLY); International Association of Fire Fighters, Local 1319; and Utilities Managers of Palo Alto Professional Association (UMPAPA); and Amend the Table of Organization in the City Manager's Office General Fund and Utilities Department Enterprise Funds Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:30-8:15 PM 9.PUBLIC HEARING: Proposition 218 Storm Water Management Fee Protest Hearing and Approval of a Resolution Calling a Mail Ballot Election for April 11, 2017 to Submit a Storm Water Management Fee to Owners of Parcels of Real Property Subject to the Fee and a Resolution Amending Utility Rule and Regulation 25 8:15-9:15 PM 10.PUBLIC HEARING: Adoption of a Resolution Adopting the Professorville Historic District Design Guidelines. The Project is Exempt From the Provisions of CEQA per Class 8 Categorical Exemption (Actions Taken by Regulatory Agencies to Protect the Environment) (Continued From September 12, 2016) 9:15-10:00 PM 11.Adoption of an Emergency Ordinance of the Council of the City of Palo Alto Adding Chapter 9.17 (Personal Cultivation of Marijuana) to Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal Code to Prohibit Outdoor Cultivation of Marijuana and Informational Update on Proposition 64 and Finding the Amendment Exempt From Review MEMO 4 October 24, 2016 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. Under the California Environmental Quality Act (CEQA) Pursuant to State CEQA Guidelines Section 15061(b)(3) 9:15-10:00 PM 12.Adoption of an Ordinance of the Council of the City of Palo Alto Adding Chapter 9.17 (Personal Cultivation of Marijuana) to Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal Code to Prohibit Outdoor Cultivation of Marijuana and Informational Update on Proposition 64 and Finding the Amendment Exempt From Review Under the California Environmental Quality Act (CEQA) Pursuant to State CEQA Guidelines Section 15061(b)(3) 10:00-10:45 PM 13.Review and Direction on Formation of a Stakeholder Committee to Advise the Council Regarding a Potential Local Tax to Raise Funds for Transportation Programs and Projects 10:45-10:50 PM 14.PUBLIC HEARING: Adoption of an Ordinance Approving Revisions to the Architectural Review Findings in Palo Alto Municipal Code Chapter 18.76 and Approval of an Exemption Under Sections 15061 and 15305 of the California Environmental Quality Act (CEQA) Guidelines. The Planning and Transportation Commission Recommended Council Approval of the Ordinance (Continued from September 12, 2016) STAFF REQUESTS THIS ITEM BE CONTINUED TO A DATE UNCERTAIN Inter-Governmental Legislative Affairs Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) 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. 5 October 24, 2016 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. Additional Information Standing Committee Meetings Sp. City / School Committee Meeting October 20, 2016 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Proclamation Honoring the 19th Annual United Nations Association Film Festival (UNAFF) Public Letters to Council Set 1 City of Palo Alto (ID # 7326) City Council Staff Report Report Type: Study Session Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Partner Presentation/Study Session with Palo Alto Housing Title: Partner Presentation and Discussion With Palo Alto Housing Corporation From: City Manager Lead Department: Planning and Community Environment Recommendation This is a study session and no action is recommended. Executive Summary Palo Alto Housing (PAH), a non-profit housing developer, has been a long-term partner of the City, developing and managing below market rate (BMR) housing units in Palo Alto and adjacent communities for over 40 years. This evening’s study session will provide representatives of Palo Alto Housing with an opportunity to update the City Council on their ongoing activities and to discuss goals and objectives related to the development of additional BMR units. Background Palo Alto Housing currently administers the City’s BMR housing program, which includes the management of 237 BMR ownership units and 250 BMR rental units for the City of Palo Alto under a contract exectuted in June 2015. Palo Alto Housing also manages over 20 affordable rental projects in Palo Alto. PAH provides information to interested persons about the BMR programs, maintains a waiting list of eligible households, pre-qualifies potential loan applicants for the BMR ownership units and certifies tenant incomes for the rental program. In addition PAH provides consultation to City staff on implementing changes resulting from evaluations of the BMR program. Environmental Review No action will be taken and therefore no environmental review is required. Attachments: Attachment A: PAH Summary 102416 for Council (PDF) City Council Study Session 10/24/16 Our Mission •A private, non-profit organization founded in 1970 with the assistance of the Council members and community leaders •PAH has acquired/developed over 700 units since its inception •To create stronger, more diverse communities •To provide and maintain high-quality affordable housing and programs for individuals and families Who we are BOARD •MICHAEL J. ANDERSON •JEAN S. DAWES •DAVID EASTON •DALE DENSON •MARK MORAGNE •JEAN MCCOWN •THOMAS B. JACOB •MARGARET "SANDY" SLOAN •JESSIE WOODYARD •HELENE S. WHEELER •JOSEPH F. MARTIGNETTI, JR •ELIZABETH RATNER •MILA ZELKHA •ALEX RUSOFF •BONNIE PACKER •SHERYL KLEIN •RONALD HALL •Program management partner since inception of the BMR program in 1974 with the City of Palo Alto •250 Rental units, serving low to moderate income levels (50-80% AMI) •237 Ownership units, serving moderate income levels (80-120% AMI) •Current waiting list is 10-15 years; no additional units since 2008 Below Market Rate Administration Property Management •Own & operate all our properties •Serve over 2,000 residents •Vacancy rate less than 0.5% •Education and Wellness Programs for all age groups including job coaching, fitness and nutrition programs and after-school homework clubs. Resident Services •Community relations •Site acquisition •Site planning •Entitlements and permits •Project management •Focus on green building Development •Mountain View - construction 67 units (30 for veterans) •Redwood City - proposed 60 units •Palo Alto – Colorado Park rehab 60 multi-family apartments Current Projects •The most vulnerable in our community •Applicants who live or work in Palo Alto and are part of our community •June 2016 - over 500 applications received in 1 day for the waitlist at Sheridan Apartments for seniors and/or disabled; 50+ people camped out overnight to receive an application. The local housing crisis is real. Who do we serve Cherryl Artist, former Admin Assistant She waited 6 years on the waitlist before moving into her apartment. Residents Lorena She recently earned a Masters degree in Special Education from UC Santa Cruz. Lorena supports her daughter who received her undergraduate degree at the same time and attended PAH resident service education programs year after year. City of Palo Alto (ID # 7301) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Finance Committee Recommendation to Approve LCFS Program Title: Finance Committee Recommendation That the City Council Approve the Proposed Low Carbon Fuel Standard Credit Program, Including the use of Revenues From the Sale of Low Carbon Fuel Standard Credits From: City Manager Lead Department: Utilities Recommendation Staff, the Utilities Advisory Commission (UAC), and the Finance Committee recommend that the City Council approve the proposed Low Carbon Fuel Standard (LCFS) program (Attachment A), including the use of revenues from the sale of LCFS credits. Executive Summary The California Air Resources Board (CARB) developed the LCFS program in compliance with AB 32 (the Global Warming Solutions Act of 2006) to reduce the carbon intensity of transportation fuels used in California by 10% by 2020. Electric utilities that provide electricity to charge electric vehicles (EVs) are eligible to receive LCFS credits. Since April 2014, when the City began participating in the program, CARB has been allocating LCFS credits to the City. The credits accumulated in the past two years are currently valued at about $600,000. The value of future credits is expected to be $500,000 to $1 million per year through 2020 as the number of EVs increase in Palo Alto. These credits will be sold to providers of transportation fuel in the state. The regulations require the City to use all proceeds from the sale of LCFS credits received for EVs to benefit current or future EV customers, educate the public on the benefits of EV transportation, and provide rates that encourage off-peak charging to minimize grid impacts. The City must also provide CARB an annual compliance report. The CARB regulations also allow dispensers of compressed natural gas (CNG) to earn LCFS credits. Since the City dispenses CNG at the Municipal Service Center, it is eligible to receive LCFS credits worth about $30,000 per year. City of Palo Alto Page 2 The City’s proposed LCFS program complies with CARB’s regulatory requirements and is designed to direct revenues from the sale of the LCFS credits for the benefit of EV and CNG vehicle owners. The program includes rebates for EV chargers, discounts to utility connection fees, the exploration of discounts for off-peak charging, encouragement of flexible charging, education and outreach. At its June 1, 2016 meeting, the UAC unanimously supported staff’s recommendation and made additional suggestions regarding ways to use the LCFS funds, which staff has incorporated into the proposed program. On September 20, 2016, the Finance Committee voted unanimously to recommend Council approve the proposed LCFS Program. Discussion After engaging with industry and community stakeholders, staff explored a number of programs for using the LCFS funds, and screened the options based on the following criteria: Cost and simplicity of program administration; Breadth of EV customer segments to which program would be applicable; Impact on the rate of EV adoption; and Potential funds that could be utilized in the program option. The staff report to the Finance Committee (Attachment B) provides detail on the programs examined and their relative merits. The proposed program (Attachment A) includes four primary elements: A. Use of revenues from the sale of LCFS credits for EVs to provide customer rebates, discounts or funding to encourage EVs; B. Use of revenues from the sale of LCFS credits for CNG vehicles to facilitate CNG vehicle adoption; C. City Manager authority since the rebate amounts and funds allocated to individual programs depends on funds available from the sale of LCFS credits; and D. Program terms and reporting requirement specify that the program will be in place until the end of 2020 and that annual reports to the Council will be provided. Committee Review and Recommendation The UAC reviewed the proposed LCFS program at its June 1, 2016 meeting and voted unanimously to recommend that the Council approve the proposed LCFS program and the use of revenues from the sale of LCFS credits. The final minutes of the UAC’s June 2016 meeting are provided as Attachment C. The Finance Committee reviewed the recommendation at its September 20, 2016 meeting. The committee members discussed the proposed program and asked for clarification on what is eligible under State law. Staff clarified that new buildings that are required to install EV chargers would not be eligible for the rebates. Staff also clarified that the City Manager would revise the program depending on actual LCFS revenues since the revenue depends on the value City of Palo Alto Page 3 of the LCFS credits, which has been relatively volatile. Committee Chair Filseth summarized that CARB’s guidance is to: 1) help offset the cost of EV infrastructure; 2) benefit existing EV owners; 3) benefit future EV owners; and 4) benefit EV commuters. The committee voted unanimously (4-0) to recommend that the Council approve the proposed LCFS program including the use of revenues from the sale of LCFS credits. The draft action minutes from the Finance Committee’s September 20, 2016 are provided as Attachment D. Resource Impact The revenue generated by participating in the State’s LCFS program is currently estimated at $400,000 to $800,000 per year. Staff time of approximately 0.25 FTE will be required to administer this program; existing staffing resources will be utilized for this effort. Funds from the program revenues may be allocated to hire temporary staff to manage tasks related to encouraging EV adoption. Policy Implications The City’s proposed LCFS program complies with CARB’s regulatory requirements and is designed to direct revenues from the sale of the LCFS credits for the benefit of EV and CNG vehicle owners. The program meets the State’s objective of reducing the carbon intensity of transportation fuels and the City’s Sustainability and Climate Action Plan goal of reducing the City’s carbon footprint by 80% by 2030. The recommendation is also consistent with City’s 2011 Electric Vehicle Infrastructure Policy. Environmental Review The Council’s approval of a program to utilize LCFS revenues does not meet the California Environmental Quality Act’s definition of a “project” under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. Attachments: Attachment A: Proposed Palo Alto LCFS Program (PDF) Attachment B: Finance Committee Staff Report 7128--Approval of Low Carbon Fuel Standard Program (PDF) Attachment C: Excerpted Final Minutes from the UAC Meeting of June 1, 2016 (PDF) Attachment D: Excerpted Draft Minutes from the FC Meeting of September 20, 2016 (PDF) Attachment A 1 CITY OF PALO ALTO PROGRAM FOR USE OF REVENUES FROM THE SALE OF LOW CARBON FUEL STANDARD CREDITS Low Carbon Fuel Standard (LCFS) credits are allocated to the City of Palo Alto by the California Air Resources Board (CARB) based on the estimated amount of electricity used by electric vehicles (EVs) served by City of Palo Alto Utilities (CPAU) and Compressed Natural Gas (CNG) dispensed at the Municipal Service Center for CNG-fueled vehicles. The City’s Program for the use of revenues from the sale of LCFS credits outlines the types of programs the City intends to promote to meet state’s objective of reducing the carbon intensity of transportation fuels, in compliance with the state’s LCFS regulations1. A. Use of Revenues from the Sale of LCFS Credits for Electric Vehicles The City may use revenues from the sale of LCFS credits to provide customer rebates, discounts or funding for the following purposes: 1. Provide rebates for the installation of Electric Vehicle Supply Equipment (EVSE) at non- single family residential buildings and parking areas. 2. Discount the Utilities Connection fee related to the installation of EVSE in single-family and multi-family residential buildings. 3. Discount off-peak time electricity rate of residential customers, with registered EVs, who elect to be on the time-of-use electricity rate. 4. Pay EV owners who provide CPAU access to information related to their EV charging patterns and are willing to be part of CPAU’s voluntary demand response program. 5. Fund CPAU programs designed to lower the cost of electric utility services for EV charging or to enable EVs owner to modulate charging patterns to lower charging cost. Support pilot-scale programs to expedite EV adoption. 6. Educational and Program implementation outreach activities to accelerate EVSE installation and EV adoption. B. Use of Revenues from the Sale of LCFS Credits for CNGVs The City may use the LCFS credit sales revenues to facilitate CNG vehicle adoption in the following order of preference: 1. Fund capital and maintenance costs associated with the CNG station at the Municipal Service Center to facilitate expanding the CNG vehicle customer base. 2. Fund activity to dispense carbon neutral CNG (e.g. use of certified environmental off- sets or renewable natural gas supplies). 3. Reduce the CNG retail rate charged for vehicles. 1 Currently set forth in Title 17 of CA Code of Regulations, Section 94580, et. seq. Attachment A 2 C. City Manager Authority 1. The actual rebate and discount amounts and individual program budgets shall be based on funds available and shall be determined by the City Manager. The CNG retail rate, including the discount offered based on available LCFS sales revenue available, shall be determined by the City Manager. 2. The City Manager is authorized to: a. Annually make changes to the programs and implementation details to optimally utilize the revenues to benefit of EV and CNG vehicle owners. b. Suspend the rebates if funds are depleted or if a program is found to be ineffective at meeting stated program goals or regulatory requirements. D. Program Term and Reporting Requirements 1. This Program shall be in place until December 31, 2020, unless revised by Council. 2. The Council shall be provided annual reports on the sale revenues and expenditures associated with the LCFS program and this policy. 3. The rebate amounts and related detailed guidelines shall be published on the City’s website. City of Palo Alto (ID # 7128) Finance Committee Staff Report Report Type: Action Items Meeting Date: 9/20/2016 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Approval of Low Carbon Fuel Standard Program Title: Staff and Utilities Advisory Commission Recommend that the Finance Committee Recommend the City Council Approve the Proposed Low Carbon Fuel Standard Credit Program, Including the Use of Revenues from the Sale of Low Carbon Fuel Standard Credits From: City Manager Lead Department: Utilities Recommendation Staff and Utilities Advisory Commission (UAC) request that the Finance Committee recommend that the City Council approve the proposed Low Carbon Fuel Standard (LCFS) program (Attachment A), including the use of revenues from the sale of LCFS credits. Executive Summary The California Air Resources Board (CARB) developed the LCFS program in compliance with AB 32 (the Global Warming Solutions Act of 2006) to reduce the carbon intensity of transportation fuels used in California by 10% by 2020. Electric utilities that provide electricity to charge electric vehicles (EVs) are eligible to receive LCFS credits. Since April 2014, when the City began participating in the program, CARB has been allocating LCFS credits to the City. The credits accumulated in the past two years are currently valued at about $600,000. The value of future credits is expected to be $500,000 to $1 million per year through 2020 as the number of EVs increase in Palo Alto. These credits are intended to be sold to providers of transportation fuel in the state. The regulations require the City to use all proceeds from the sale of LCFS credits received for EVs to benefit current or future EV customers, educate the public on the benefits of EV transportation, and provide rates that encourage off-peak charging to minimize grid impacts. The City must also provide CARB an annual compliance report. ATTACHMENT B City of Palo Alto Page 2 The CARB regulations also allow dispensers of compressed natural gas (CNG) to earn LCFS credits. Since the City dispenses CNG at the Municipal Service Center, it is eligible to receive LCFS credits worth about $30,000 per year. The City’s proposed LCFS program complies with CARB’s regulatory requirements and is designed to direct revenues from the sale of the LCFS credits for the benefit of EV and CNG vehicle owners. The program includes rebates for EV chargers, discounts to utility connection fees, the exploration of discounts for off-peak charging, encouragement of flexible charging, education and outreach. At its June 1, 2016 meeting, the UAC unanimously supported staff’s recommendation and made additional suggestions regarding ways to use the LCFS funds, which staff has incorporated into the proposed program. Background CARB’s LCFS program aims to reduce the carbon intensity of transportation fuels used in California by 10% by 2020. The primary method for reducing the carbon content of transportation fuels is by blending standard fuels with fuels such as cellulosic ethanol or biodiesel which have lower carbon intensities than traditional fuels. Electricity and CNG are also recognized as low carbon intensive transportation fuels. CARB adopted the most recent version of LCFS regulations in September 2015, effective January 1, 2016. Electric utilities that provide electricity to charge EVs are eligible to receive LCFS credits based on the number of EVs registered in their service territory and the amount of electricity dispensed.1 CARB approved the City of Palo Alto Utilities’ (CPAU’s) application to participate in the LCFS program in April 2014, and has been allocating LCFS credits to the CPAU since then. Under CARB’s formula, Palo Alto received 1,855 credits in 2014, 3,311 credits in 2015, and anticipates receiving 4,500 credits in 2016. As of March 2016, approximately 1,300 EVs were registered in Palo Alto. CNG related credits are based on the amount of CNG actually dispensed at the City’s CNG fueling station. In 2016 the City anticipates dispensing approximately 12 million cubic feet of CNG and receiving about 270 credits. At the prevailing market price of $116 per credit, the sale of credits allocated in 2014 and 2015 is expected to yield $600,000. Revenues from the sale of 2016 credits are expected to be $500,000. With projections of 3,000 to 5,000 EVs in Palo Alto by 2020, the revenue from LCFS sales credit could range from $800,000 to $1.2 million per year by 2020. The value of credits related to CNG is projected to be $30,000 per year and projected to stay relatively flat through 2020. 1 CARB’s LCFS program overview is provided here: http://www.arb.ca.gov/fuels/lcfs/lcfs.htm City of Palo Alto Page 3 In March 2016 Council approved a master agreement template to enable the City to sell LCFS credits to transportation fossil fuel providers in California (Staff Report #6489). Staff anticipates using this template to make the first credit sale in late spring 2016 in order to fund the programs described in this report. These projected revenues and costs are included in the fiscal year (FY) 2017 budget request. Discussion Use of EV Related LCFS Funds Electric distribution utilities like CPAU that receive LCFS credits must comply with the regulatory requirements outlined in California Code of Regulations Sec. 95483(e)(1) in order to receive credits, including: (A) Use all credit proceeds to benefit current or future EV customers; (B) Educate the public on the benefits of EV transportation (including environmental benefits and costs of EV charging, or total cost of ownership, as compared to gasoline); (C) Provide rate options that encourage off-peak charging and minimize adverse impacts to the electrical grid; and (D) Include in annual compliance reporting the following supplemental information: an itemized summary of efforts to meet requirements (A) through (C) above and costs associated with meeting the requirements. After engaging with industry and community stakeholders, staff explored a number of programs for using the LCFS funds, and screened the options based on the following criteria: Cost and simplicity of program administration; Breadth of EV customer segments to which program would be applicable; Impact on the rate of EV adoption; and Potential funds that could be utilized in the program option. Outlined below is a list of the program options identified and their relative merits based on the criteria. A presentation of the relative merits of the options is provided in Attachment C. The following options may be considered in the future, but were determined to be not ready for implementation in the initial phase of the program: 1. Discount Development Center permit fees related to EV charger installations. Such a program would waive or discount the permit fee related to EV chargers which currently range from $160 for residential chargers to $560 for commercial Level 3 chargers. This option was initially found to be administratively burdensome. 2. Provide cash rebates to EVs registered in Palo Alto. This would likely require EV owners to apply online with their vehicle registration information. The rebate could be one-time or annual. The large investor-owned utilities in California and the Sacramento Municipal Utility District are contemplating this type of a program. Since this option was administratively City of Palo Alto Page 4 burdensome and could consume the bulk of the funds available, it is not recommended at this time. Staff feels that the funds could be better utilized in other LCFS program options and that such a rebate would not be a significant influence for those contemplating an EV purchase. 3. Discount or provide free charging at public EV charging stations. This option was found to be suboptimal for Palo Alto because free charging may attract EV owners that casually take the opportunity since charging is free, an impact that crowds out EVs that need to charge and are willing to pay for the service. The following options were determined to be the best ones for CPAU’s initial LCFS program: 1. Rebates for the installation of Electric Vehicle Supply Equipment (EVSE, or chargers). Staff determined that providing rebates for EVSE installations at underserved segments of the market would be valuable. Those market segments include public and non-profit buildings as well as at private buildings with multiple tenants, such as multi-family or mixed use buildings or on corporate campuses. The landlord, property owner, or tenant would own the EVSE, not the City of Palo Alto. 2. Discount electric utility fees associated with upgrading electric services due to the installation of EV chargers. The utility connection fees are periodically required if the installation of chargers at homes requires a utility service upgrade2. Such upgrades have been triggered a dozen times the past year. The related fees ranged from $400 to $9,000, with an average fee of $1,300. This use of the LCFS funds was identified as a preferred option. Utility Rate E-15 and related Utility Rules and Regulations may have to be modified to reflect this discount. 3. Discount off-peak electric rates for residential customers to encourage off-peak EV charging. Though this option has many implementation hurdles, the option was identified as an option that merits further investigation for possible implementation in the future. 4. Provide a payment to customers who provide CPAU access to their EV charging patterns via the telematics in their EV or their charging equipment. This information will assist CPAU better assess impacts of such charging systems on the distribution grid and seek EV customer interest in various EV-related Utilities programs. This was identified as a preferred option, though all elements related to harnessing the information provided are not yet fully defined. 5. Fund programs designed to lower the cost of electric utility services for EV charging or to enable EVs owner to modulate charging patterns to lower charging cost. Support pilot scale programs to expedite EVSE installation and EV adoption. 2 When a customer wishes to install EVSE at home, an upgrade to their home’s electric service may be required. Per CPAU Utilities Rule and Regulation 18: “The Customer is responsible for all costs associated with relocation or modification of Utility Service.” The costs are determined based on Utility Rate Schedule E-15 and periodically EVSE projects require the preparation of a cost estimate. Customers are invoiced for the labor and material costs, excluding the cost of the transformer itself. City of Palo Alto Page 5 6. Fund education and outreach efforts. This is a key element to enable EV adoption at a rapid clip and was identified as a preferred program to fund. This may include the cost of temporary staff resources, a third-party program manager or administrator, or direct marketing to support program implementation. Initial EV Related LCFS Program Details Based on staff’s analysis of program options, the following rebate/discount amounts are proposed for inclusion in CPAU’s initial LCFS program. The City Manager will determine the final details and make any modifications, as necessary, to respond to changes in technology, funds available and costs for various program components. Detailed eligibility and guidelines for each of the programs will be provided on the City’s website. The initial program and designation of funds by program area is summarized below and more detail is provided in Attachment B. LCFS Program Area Funds Expended Annually Rebate of up to $3,000 for the installation of EVSE at non-single family residential buildings and parking areas. To ensure that funds are dispersed over many locations, a limit of 3 EVSEs per location is recommended for non-public locations. Similarly, allocation to all Palo Alto Unified School District (PAUSD) locations is recommended to be limited to $30,000 per fiscal year for EVSE installations. $225,000 to $375,000 Discount the Utilities Connection fee related to the installation of EVSE in single family and multi-family residential applications for up to $3,0003. $30,000 to $60,000 Discount off-peak electricity rate of residential customers with registered EVs who elect to be on the time-of-use electricity rate. $40,000 to $150,000 Rebate of $300 for EV owners who provide CPAU access to information related to their EV charging patterns. <$30,000 Fund programs designed to lower the cost of electric utility services for EV charging or to enable EVs owner to modulate charging patterns to lower their charging cost. Support pilot-scale City, Utility, and Community programs to expedite EVSE installation and EV adoption. $50,000 Fund educational and outreach activities to facilitate early adoption of EVs at $20,000/year, $20,000/year to fund related staffing needs, and additional direct $40,000/year for marketing cost to promote EVSE installations in multi-family homes. $80,000 Use of CNG Related LCFS Funds While EV related LCFS credits account for more than 90% of the funds, LCFS credits related to dispensing CNG will generate approximately $30,000 annually. CARB’s regulations do not 3 Modifications to the Utility connection fee schedule (Utilities Rate Schedule E-15) are needed to incorporate this program. City of Palo Alto Page 6 impose specific requirements for how regulated parties must use revenues earned from the sale of CNG-related LCFS credits, but staff’s proposal is to use the funds to expand the use of CNG vehicles. Staff’s primary recommended use of these funds in FY 2017 is for the installation of a credit card reader at the pump to expand the number of CNG vehicle owners that could use the station. In subsequent years, the funds could be used for annual service and maintenance costs for the public CNG station, and if funds remain, they could be used to explore purchasing carbon neutral CNG (e.g. using certified environmental off-sets or renewable natural gas supplies) or reduce the CNG retail rate charged. Reporting Requirements The current LCFS regulation extends through 2020, but it is expected to be extended. Hence, staff recommends revisiting the LCFS Program in 2020. As required by the regulations, staff will file various quarterly reports to CARB to claim credits, and annually report on the use of funds. Staff will report to Council annually on the progress and impact of the LCFS and may request changes to the LCFS Program if additional or alternative uses of funds are identified. A balancing account will be maintained to smooth out short-term fluctuations in annual revenue and expenses. City Manager to Manage Program The City Manager may change the rebate amounts annually or suspend them based on funds available. Under the program, the City Manager may make changes to the programs and implementation details to optimally utilize the revenues to benefit EV and CNG vehicle owners. Commission Review and Recommendation The UAC reviewed the proposed LCFS program at its June 1, 2016 meeting. Commissioners generally supported the proposed program and noted that schools would be an ideal place for EV chargers since teachers would have an incentive to purchase EVs if they could charge them while at work. Another idea discussed was to provide funds for research and development or a pilot program to provide an incentive for direct DC charging or for new vehicle-to-grid technologies. The UAC also expressed support for educational and outreach activities. The UAC voted unanimously (6-0 with Chair Cook, and Commissioners Ballantine, Forssell, Johnston, Schwartz and Trumbull voting yes and Vice Chair Danaher absent) to recommend that the Council approve the proposed LCFS program and the use of revenues from the sale of LCFS credits and requested that staff explore the suggestions the UAC discussed for the program. Subsequently, staff modified the proposed program to add the fifth initial program element (pilot programs to expedite EVSE installation and EV adoption) and to make additional funds available for marketing the program, espeically to multi-family homes. The draft minutes of the UAC’s June 2016 meeting are provided as Attachment D. Timeline Upon Council approval of the Program, the Program is expected to be implemented by January 2017. Systems installed after July 1, 2016 will be eligible for the program’s rebates and City of Palo Alto Page 7 incentives since Utilities customers have already started installation projects in anticipation of the availability of these incentives. Resource Impact The revenue generated by participating in the State’s LCFS program is estimated to be $500,000 to $1,000,000 per year. Staff time of approximately 0.25 FTE will be required to administer this program; existing staffing resources will be utilized for this effort. Funds from the program revenues may be allocated to hire temporary staff to manage tasks related to encouraging EV adoption. Policy Implications The City’s proposed LCFS program complies with CARB’s regulatory requirements and is designed to direct revenues from the sale of the LCFS credits for the benefit of EV and CNG vehicle owners. The program meets the State’s objective of reducing the carbon intensity of transportation fuels and the City’s Sustainability and Climate Action Plan goal of reducing the City’s carbon footprint by 80% by 2030. The recommendation is also consistent with City’s 2011 Electric Vehicle Infrastructure Policy. Environmental Review Approving a program to utilize LCFS revenues does not meet the California Environmental Quality Act’s definition of a “project” under Public Resources Code Section 21065, thus, environmental review is not required. Attachments: Attachment A: Proposed Palo Alto LCFS Program (PDF) Attachment B: Outline of Proposed LCFS Program Implementation Details (PDF) Attachment C: Analysis of the Relative Merits of Options (PDF) Attachment D: Excerpted Final Minutes from the UAC Meeting of June 1, 2016 (PDF) Attachment A 1 CITY OF PALO ALTO PROGRAM FOR USE OF REVENUES FROM THE SALE OF LOW CARBON FUEL STANDARD CREDITS Low Carbon Fuel Standard (LCFS) credits are allocated to the City of Palo Alto by the California Air Resources Board (CARB) based on the estimated amount of electricity used by electric vehicles (EVs) served by City of Palo Alto Utilities (CPAU) and Compressed Natural Gas (CNG) dispensed at the Municipal Service Center for CNG-fueled vehicles. The City’s Program for the use of revenues from the sale of LCFS credits outlines the types of programs the City intends to promote to meet state’s objective of reducing the carbon intensity of transportation fuels, in compliance with the state’s LCFS regulations1. A. Use of Revenues from the Sale of LCFS Credits for Electric Vehicles The City may use revenues from the sale of LCFS credits to provide customer rebates, discounts or funding for the following purposes: 1. Provide rebates for the installation of Electric Vehicle Supply Equipment (EVSE) at non- single family residential buildings and parking areas. 2. Discount the Utilities Connection fee related to the installation of EVSE in single-family and multi-family residential buildings. 3. Discount off-peak time electricity rate of residential customers, with registered EVs, who elect to be on the time-of-use electricity rate. 4. Pay EV owners who provide CPAU access to information related to their EV charging patterns and are willing to be part of CPAU’s voluntary demand response program. 5. Fund CPAU programs designed to lower the cost of electric utility services for EV charging or to enable EVs owner to modulate charging patterns to lower charging cost. Support pilot-scale programs to expedite EV adoption. 6. Educational and Program implementation outreach activities to accelerate EVSE installation and EV adoption. B. Use of Revenues from the Sale of LCFS Credits for CNGVs The City may use the LCFS credit sales revenues to facilitate CNG vehicle adoption in the following order of preference: 1. Fund capital and maintenance costs associated with the CNG station at the Municipal Service Center to facilitate expanding the CNG vehicle customer base. 2. Fund activity to dispense carbon neutral CNG (e.g. use of certified environmental off- sets or renewable natural gas supplies). 3. Reduce the CNG retail rate charged for vehicles. 1 Currently set forth in Title 17 of CA Code of Regulations, Section 94580, et. seq. Attachment A 2 C. City Manager Authority 1. The actual rebate and discount amounts and individual program budgets shall be based on funds available and shall be determined by the City Manager. The CNG retail rate, including the discount offered based on available LCFS sales revenue available, shall be determined by the City Manager. 2. The City Manager is authorized to: a. Annually make changes to the programs and implementation details to optimally utilize the revenues to benefit of EV and CNG vehicle owners. b. Suspend the rebates if funds are depleted or if a program is found to be ineffective at meeting stated program goals or regulatory requirements. D. Program Term and Reporting Requirements 1. This Program shall be in place until December 31, 2020, unless revised by Council. 2. The Council shall be provided annual reports on the sale revenues and expenditures associated with the LCFS program and this policy. 3. The rebate amounts and related detailed guidelines shall be published on the City’s website. Attachment B 1 Outline of Palo Alto’s Initial (FY 2017) LCFS Program Implementation (To be updated annually by the City Manager as appropriate) 1. Rebate for the installation of EVSE A. Multi-family residential, mixed use, and commercial building garages and parking areas (1) EVSE must be installed in a shared parking location not assigned or dedicated to particular tenants or owners, but available to any tenant, owner, employee or guest. a) Service panel upgrade and cost of installing conduits will be rebated, irrespective of the location of the EVSE. b) In a rental apartment building, assigning a space to an EV owner is allowed. (2) Information about EVSEs receiving a rebate shall be posted on public EV station locaters on the internet, and to the extent possible, made available to the public. (3) Rebates may cover up to 75% of the total cost of the installation including the cost of the EVSE, electrical wiring, and all capital costs related to the installation. (4) Rebate limited to $3,000 per EVSE installed up to a maximum of 3 chargers per service address. B. Public buildings and not-for-profit organizations (1) Information about EVSEs receiving a rebate shall be posted on public EV station locaters on the internet and made available to the public. (2) Rebates may cover up to 100% of the total cost of the installation including the cost of the EVSE, electrical wiring, and all related capital cost. (3) A rebate shall be $3,000 per EVSE installed, with a maximum rebate of $9,000 per service address with the installation of 3 chargers. This limit may be waived for large apartment buildings (> 10 units) depending on funding availability. C. Palo Alto Unified School District (PAUSD) Facilities (1) Allocate up to $30,000 per fiscal year towards EVSE installations in PAUSD facilities. (2) Rebates may cover cost of electrical wiring, cost of EVSEs and all related cost for up to 100% of the total cost. (3) The anticipated reimbursement per EVSE is $3,000, but in no event shall it exceed $5,000 per EVSE installed. (4) If networked EVSEs are installed, PAUSD shall provide access to the EVSE charging information to CPAU. D. Additional requirements for EVSE receiving rebates: (1) All EVSE rebates above are based on Level 2 EVSEs with 30A circuits or larger. In the event Level 2 EVSE is suboptimal for a location, to claim a $3,000 EVSE rebate, the City requires the installation of two units of Level 1 EVSE with 20 A circuits. All EVSEs for which rebates are requested are encouraged to be equipped with a J1772 plug. (2) Physical signage for easy identification of EVSE location. Attachment B 2 (3) The three EVSEs per service address limit may be increased for a publicly accessible parking location if applicant can demonstrate need. (4) The rebates for EVSEs may not be provided to install EVSEs already required by the City’s Building Code.1 2. Rebate for Utilities Connection Fee A. Provide a rebate on the utility connection fee to residential single- and multi-family customers, when the installation of an EVSE triggers the need for a utility service upgrade. B. The rebate could cover the full cost of the fee2 for up to $3,000 per utility service address. 3. Discount night-time electricity rates A. Investigate the merits of providing a night-time electricity use rate discount of about 5 cents per kWh for EV customers, with the objective of lowering the adverse impact of EV charging on the distribution grid and lowering the charging cost to the EV owners. B. If found feasible and desirable, bring a time-of-use electricity rate proposal to Council for consideration and approval. 4. Rebate for EV owners who provide CPAU access to their EV’s charging system A. Provide a rebate to EV owners who are willing and able to provide CPAU access to their networked charging systems and are qualified to participate in CPAU’s Voluntary Demand Response (DR) programs3. B. The rebate this activity shall be a one-time payment of $3004. 1 Palo Alto Municipal Code Section 16.14.420, Ordinance 5324 2 Utility Service Connection Fee is in accordance with Council approved Utility Rate Schedule E-15. Historically, such fees, when triggered, average $1300, but the actual fee could vary widely. 3 Conditions to be qualified to participate in the Voluntary DR program: a) the EV must primarily charge within City of Palo Alto; b) ability for EV owner to communicate and control vehicle charging system remotely; c) EV owners must agree to provide connectivity to the charging system via the EV owner’s charging system service provider; and d) CPAU must have agreements with charging system’s service provide. Access to the connected and communicating charging system may be provided either through vehicle onboard telematics or through the customer EVSE system. Note: CPAU’s voluntary DR programs are and will be designed to reduce the adverse impacts of EV charging on the electrical grid and assist California better integrate intermittent renewable resources. 4 In return for the $300 payment, the expectation is that the EV owner will participate in CPAU’s DR program on a voluntary basis over a 3 to 5 year period. The participation is limited to no more than 15 days per year. Notification will be provided to the EV owner to voluntarily reduce or stop EV charging during specified time periods between noon and 6pm on hot summer days. For details see: Staff Report 3454 of February 2013 Attachment B 3 5. Support related projects: A. Support programs designed to lower the cost of electric utility services such as enabling EVs owner to modulate charging patterns to lower the cost of charging. B. Support pilot-scale programs, including those designed to test new and emerging technologies, to expedite EVSE installation and EV adoption. 6. Fund educational and outreach activities to facilitate early adoption of EVs A. Support community and stakeholder generated initiatives to advance goals of the LCFS program B. Utilize up to $20,000 per year to fund educational and outreach activities related to facilitating early adoption of EVs. An additional $20,000 may be used per year to fund staffing needs related to the programs. C. Funds may be utilized to pay CPAU’s efficiency service contractors who directly enable the installation of EVSEs in multi-family homes and cross promote efficiency programs and EVSE installation. Attachment C 1 Relative Merits of Program Options to Return LCFS Credit Value to Current & Future EV Owners in Palo Alto Annual LCFS credit value of $500,000 in 2016 and increasing to $1 million by 2020 (CY 2014 & 2015 credits worth $600,000) Objective of Programs: To encourage EV adoption by residents and commuters, and minimize adverse impacts on the electrical grid Criteria for Evaluating → Customer Program Options ↓ [A] Simple and Easy to Admin? [B] Serve large segments of EV customers? [C] Spur new EV Buyers? [D] # of EV or EVSE owners served/year [E] Cost per Customer Served/ year [F] Anticipated Cost/ year [G] Merit of Program through 2020 [H] Segment of current and future EV owners served Notes 1. Rebate installation of EVSE at public & non-profit buildings and at private buildings with multiple tenants (multifamily, mixed use) 25 -50 EVSE per year $3000/EVSE $75 to $150k Mainly commuters Public and non-profits are an underserved segment of the EVSE market 50 -75 EVSE per year $3000/EVSE $150k to $225k Multi- family residents, commuters Multi-family buildings are an underserved segment of the EVSE market 2. Discount CPAU fees for upgrading customer’s electrical service connection, triggered by EVSE installation 10-20 $3k $30-$60k Easy to administer; valued by customer Single- and Multi- family residential Small number of customers; but reduce uncertainty 3. Use LCFS funds to lower/rebate off-peak electric rates for EV-TOU customers 250 to 1000 @5¢/kWh discount, $150/yr $40k to $150k Long lead time to set- up Mainly Single- family residential Attractive long term solutions, requires smart meters to implement 4. EV owners provide CPAU access to their charging system 50-100 $300, one time < $30k Residential and commuters Assist CPAU manage electrical loads through Demand Response 5. Fund related pilot scale projects - - - $40k TBD TBD 6. Education/Outreach and staffing N/A N/A $80k All Education & outreach: key to program success Attachment C 2 Criteria for Evaluating → Customer Program Options ↓ [A] Simple and Easy to Admin? [B] Serve large segments of EV customers? [C] Spur new EV Buyers? [D] # of EV or EVSE owners served/year [E] Cost per Customer Served/ year [F] Anticipated Cost/ year [G] Merit of Program through 2020 [H] Segment of current and future EV owners served Notes 1. Discount EVSE Permit Fee for homes, schools & businesses 100-300 $400 $40 to $120k Residents, businesses Difficult to implement; long term option 2. Annual or one-time rebate for EVs registered in Palo Alto 1,200 existing, 500 new EVs per year $200 to $500 $100k to $300k High Admin residents Preferred option for CA utilities; not supported by most PA community EV advocates, high admin 3. Discounted or free EV charging at public chargers in Palo Alto 20-40 EV chargers $1,500 /charger if made free $30-60k Would not make big difference Mainly commuters Do not recommend making EV charging free long term, perhaps discounted by 50%. Level of merit denoted by Recommended programs highlighted in green EXCERPTED FINAL MINUTES OF THE JUNE 1, 2016 UTILITIES ADVISORY COMMISSION MEETING ITEM 3. ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend the City Council Approve the Proposed Low Carbon Fuel Standard Credit Program, Including the Use of Revenues From the Sale of Low Carbon Fuel Standard Credits Senior Resource Planner Shiva Swaminathan summarized the written report. He said the overall proposal is to reduce greenhouse gas (GHG) emissions by increasing the use of Electric Vehicles (EVs) both by residents and by commuters. He noted that the majority of the City’s GHG emissions are related to transportation. He said the Low Carbon Fuel Standard (LCFS) regulations emanate from the Global Warming Solutions Act, AB32 in 2006 and aims to reduce the carbon intensity of transportation fuels. Staff projects that the electricity used to charge EVs in Palo Alto is less than 1% of the total electricity used in the City currently, but is expected to grow to about 5.5% of total citywide use. These projections are based on the 1,300 EVs currently in the City (or 3% of the City’s vehicles) and the expectation that EVs will comprise 30- 60% of the total number of vehicles by 2030. Commissioner Schwartz asked if the City gets the numbers of EVs from the Department of Motor Vehicles (DMV). Swaminathan replied that the City gets the numbers from the California Air Resources Board (CARB), which gets them from the DMV so the City gets a total number of EVs registered in the City, but does not know where they are located. Swaminathan said that the number can also be obtained from the number of vehicles that got rebates from the State and that this is public information and available on the web. Commissioner Forssell asked if the number of EVs includes both plug-in hybrids and all electric (battery) vehicles. Swaminathan said that the numbers include all EVs that plug in. Swaminathan says that the value of the LCFS credits for EVs is about $500,000 in 2016 and is estimated to grow to $1 million per year in 2020. The credits for CNG use is expected to stay flat at about $30,000 per year. Swaminathan showed the usage of the City-owned 30 EV chargers noting that they are used by 4 to 6 charging sessions per year per charger and that the total cost to the City for the electricity is about $40,000 per year, but that the charging is currently provided for free. Commissioner Ballantine noted that the 30 City-owned chargers do not serve very many EVs. Swaminathan agreed and added that there are about 400-600 privately-owed chargers at businesses and other locations in addition to all the chargers in private residences. ATTACHMENT D Commissioner Forssell asked if there is a time limit for parking at the City-owned charging stations. Swaminathan confirmed that there is a time limit. Swaminathan stated that the revenues from the sale of LCFS credits must be used to benefit current and future EV owners. He discussed the options examined for using the revenues. Several options were evaluated and the ones that are not preferred include providing a discount for permit fees for chargers, cash rebates to EV owners, and providing free electricity at the City’s charging stations. He noted that most of the investor-owned utilities including PG&E and also the Sacramento Municipal Utilities District are planning to provide one-time cash rebates directly to EV owners. Commissioner Schwartz said that she did not support providing a rebate to EV owners and asked if there was any justification for such a proposal. Swaminathan said that justification used by those utilities who are planning to provide rebates is that the credits were generated by those EV owners. Assistant Director Jane Ratchye added that the proposal is not to provide these rebates, but the regulations require that the funds be used to benefit EV owners and rebates do exactly that, which is why PG&E plans to do—a one-time rebate to EV owners who generated the credits. Commissioner Schwartz said that more EV chargers would benefit EV owners and it doesn’t make sense to give the money to those who already have made a decision to buy an EV. Swaminathan added that the community stakeholders also did not support the proposal to provide rebates. Chair Cook clarified that the money is supposed to benefit both current and future EV owners so there is some reason to consider rebates. Chair Cook doesn’t necessarily support the idea, but understands that it is a viable option. Swaminathan stated that each EV owner generates 2 credits per year and that each credit is worth from $100 to $120 so about $200 per year is generated by each EV registered in Palo Alto. He said that another idea evaluated, but determined not be the best way to use the proceeds, is to provide the energy at City-owned chargers for free. Swaminathan described the items that are being proposed for the implementation in the near term. These include providing rebates for Electric Vehicle Supply Equipment (EVSEs, or chargers) for locations other than single-family residences, discounted Utilities fees related to any required service upgrades, discounting off-peak rates, incentives to EV owners that provide access to charging information, and education and outreach programs. Chair Cook asked if the City would be eligible for these rebates for EVSEs since it would benefit EV owners to have more chargers and noted that employment locations such as the schools would be good places for charger installations since employees would be able to charge while at work and that would encourage them to purchase an EV. Swaminathan said that these would eligible and that the initial program restricts the rebates to 3 chargers per site, but that for schools, since they have many campuses, the initial program would allow schools to get EVSE rebates of up to $30,000 per year. He said that the schools indicated that EV chargers are viewed by the schools as a way of attracting good teachers since they may not live in Palo Alto. Swaminathan described the proposal to provide discounted Utilities fees related to any required service upgrades since sometimes, a new transformer may be required in a neighborhood as a result of a new EV charger being installed. Commissioner Ballantine asked if this would apply when the next EV charger installation would require a transformer upgrade. Swaminathan confirmed that this is exactly the situation that would trigger this upgrade and the proposal is to partially fund the additional cost. He agreed that this situation may be more prevalent in the future as the number of EVs rise. Swaminathan described the idea to use LCFS funds to give a larger off-peak price discount for EVs to charge at night. He said that there are billing issues with this, but it is an idea that will be explored more in the future. Commissioner Schwartz asked why we would want to discount non-solar electrons to encourage charge EVs at night since the carbon content of the electricity should be a consideration. Swaminathan said that the “off-peak” timing may change over time, but there could also be impacts on the distribution system that call for encouraging off-peak charging. He noted that the last customer installing a charger may trigger the need for a distribution system upgrade that could be avoided by shifting charging to night-time, or off-peak hours. He said that energy storage is also coming and could assist in effectively moving solar energy to off- peak hours. Commissioner Johnson said that if a discount for off-peak energy use was provided, how would the utility know if the energy used off peak was for EV charging, or for any other energy use such as a clothes dryer used at night. Swaminathan acknowledged that the utility would not know that, or try to determine that, and it would consider the point when designing the discount. Swaminathan said that the utility does not want to install a separate meter for EV chargers. Swaminathan said that another idea is to provide an incentive to EV owners who are willing to share information about their EV charger profile. Commissioner Schwartz asked if interval meters would be provided to access that type of data. Swaminathan said that the information would come directly from the charger itself and interval meters would not be needed. Commissioner Johnston asked if a rebate would be provided for those buildings that are required to install EVSE. Swaminathan said that those would not be eligible for rebates. Commissioner Johnston asked if a building owner was required to put in 10 chargers, but decided to put in more, could the owner get the rebate for the additional chargers. Swaminathan said that additional chargers beyond what is required would be eligible. Commissioner Ballantine asked if there was any consideration to providing an incentive to direct DC charging, or at least providing some funds for research and development for such activities as vehicle-to-grid infrastructure. Swaminathan said that staff has not considered this for these funds, but there may be some funds for that type of work in the evaluation of storage alternatives that is currently being done. He added that there are a number of storage systems being installed at residences with the potential to use DC power. Swaminathan said that LCFS credits are also available for compressed natural gas (CNG) vehicles. Staff proposes to use those funds to fund improvements at the City’s CNG station or subsidize the CNG dispensed. Commissioner Johnston said that there is the potential to dramatically increase EV adoption with more chargers available. Commissioner Ballantine said that he likes the idea of supporting infrastructure build-out and providing more EV chargers where employees are. Commissioner Forssell supports the rebates for the EVSEs, especially for multi-family, mixed- use and commercial buildings. She asked if a requirement for receiving a rebate for chargers be that they be communication enabled to allow collection of data since it is important to understand EV charging patterns. Swaminathan noted that the cost for a “dumb” charger is about $200 and the cost for “smart” (communication-enabled) chargers is $2000 so we didn’t want to require them. Also dumb chargers, or even Level 1 chargers, may be very appropriate in some situations such as a workplace or school where employees park and can charge all day and do not need Level 2 chargers. Commissioner Forssell said that discounting night-time rates for charging may not be the best message if off-peak times change since people have a tendency to learn a behavior once and there may be difficulty if the message about the optimal time to charge changes. She added that she supports educational and outreach activities. Commissioner Schwartz said that the rebate offered for providing information may be unnecessary as most people would volunteer that information to the City to be helpful. She said that people will most likely do this if asked and would not be motivated to do so by a rebate and that the City can just appeal for the information and likely would receive it. She said that the money could be better spent on additional chargers for schools and non-profits organizations that could use them for their fleet vehicles. Chair Cook said that it may be difficult to spend all the money in a year’s time and expects that staff will return with additional ideas to spend the money generated. He suggested a group-buy could be used to reduce the cost of chargers for multi-family facilities, schools, etc. Swaminathan said that the underlying assumption is that the Utility will take a hands-off approach and does not intend to buy or own the chargers, unlike what PG&E plans to do by using ratepayer money to get into the business of building charger infrastructure. Chair Cook agreed that the City could facilitate the purchase of EVs without owning them. ACTION: Commissioner Trumbull made a motion that the UAC recommend that Council LCFS program and the use of revenues from the sale of LCFS credits and requested that staff explore the suggestions the UAC discussed for the program. Commissioner Johnston seconded the motion. The motion passed unanimously (6-0) with Chair Cook, and Commissioners Ballantine, Forssell, Johnston, Schwartz and Trumbull voting yes and Vice Chair Danaher absent. ATTACHMENT C EXCERPTED FINAL MINUTES OF THE JUNE 1, 2016 UTILITIES ADVISORY COMMISSION MEETING ITEM 3. ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend the City Council Approve the Proposed Low Carbon Fuel Standard Credit Program, Including the Use of Revenues From the Sale of Low Carbon Fuel Standard Credits Senior Resource Planner Shiva Swaminathan summarized the written report. He said the overall proposal is to reduce greenhouse gas (GHG) emissions by increasing the use of Electric Vehicles (EVs) both by residents and by commuters. He noted that the majority of the City’s GHG emissions are related to transportation. He said the Low Carbon Fuel Standard (LCFS) regulations emanate from the Global Warming Solutions Act, AB32 in 2006 and aims to reduce the carbon intensity of transportation fuels. Staff projects that the electricity used to charge EVs in Palo Alto is less than 1% of the total electricity used in the City currently, but is expected to grow to about 5.5% of total citywide use. These projections are based on the 1,300 EVs currently in the City (or 3% of the City’s vehicles) and the expectation that EVs will comprise 30‐ 60% of the total number of vehicles by 2030. Commissioner Schwartz asked if the City gets the numbers of EVs from the Department of Motor Vehicles (DMV). Swaminathan replied that the City gets the numbers from the California Air Resources Board (CARB), which gets them from the DMV so the City gets a total number of EVs registered in the City, but does not know where they are located. Swaminathan said that the number can also be obtained from the number of vehicles that got rebates from the State and that this is public information and available on the web. Commissioner Forssell asked if the number of EVs includes both plug‐in hybrids and all electric (battery) vehicles. Swaminathan said that the numbers include all EVs that plug in. Swaminathan says that the value of the LCFS credits for EVs is about $500,000 in 2016 and is estimated to grow to $1 million per year in 2020. The credits for CNG use is expected to stay flat at about $30,000 per year. Swaminathan showed the usage of the City‐owned 30 EV chargers noting that they are used by 4 to 6 charging sessions per year per charger and that the total cost to the City for the electricity is about $40,000 per year, but that the charging is currently provided for free. Commissioner Ballantine noted that the 30 City‐owned chargers do not serve very many EVs. Swaminathan agreed and added that there are about 400‐600 privately‐owed chargers at businesses and other locations in addition to all the chargers in private residences. Commissioner Forssell asked if there is a time limit for parking at the City‐owned charging stations. Swaminathan confirmed that there is a time limit. Swaminathan stated that the revenues from the sale of LCFS credits must be used to benefit current and future EV owners. He discussed the options examined for using the revenues. Several options were evaluated and the ones that are not preferred include providing a discount for permit fees for chargers, cash rebates to EV owners, and providing free electricity at the City’s charging stations. He noted that most of the investor‐owned utilities including PG&E and also the Sacramento Municipal Utilities District are planning to provide one‐time cash rebates directly to EV owners. Commissioner Schwartz said that she did not support providing a rebate to EV owners and asked if there was any justification for such a proposal. Swaminathan said that justification used by those utilities who are planning to provide rebates is that the credits were generated by those EV owners. Assistant Director Jane Ratchye added that the proposal is not to provide these rebates, but the regulations require that the funds be used to benefit EV owners and rebates do exactly that, which is why PG&E plans to do—a one‐time rebate to EV owners who generated the credits. Commissioner Schwartz said that more EV chargers would benefit EV owners and it doesn’t make sense to give the money to those who already have made a decision to buy an EV. Swaminathan added that the community stakeholders also did not support the proposal to provide rebates. Chair Cook clarified that the money is supposed to benefit both current and future EV owners so there is some reason to consider rebates. Chair Cook doesn’t necessarily support the idea, but understands that it is a viable option. Swaminathan stated that each EV owner generates 2 credits per year and that each credit is worth from $100 to $120 so about $200 per year is generated by each EV registered in Palo Alto. He said that another idea evaluated, but determined not be the best way to use the proceeds, is to provide the energy at City‐owned chargers for free. Swaminathan described the items that are being proposed for the implementation in the near term. These include providing rebates for Electric Vehicle Supply Equipment (EVSEs, or chargers) for locations other than single‐family residences, discounted Utilities fees related to any required service upgrades, discounting off‐peak rates, incentives to EV owners that provide access to charging information, and education and outreach programs. Chair Cook asked if the City would be eligible for these rebates for EVSEs since it would benefit EV owners to have more chargers and noted that employment locations such as the schools would be good places for charger installations since employees would be able to charge while at work and that would encourage them to purchase an EV. Swaminathan said that these would eligible and that the initial program restricts the rebates to 3 chargers per site, but that for schools, since they have many campuses, the initial program would allow schools to get EVSE rebates of up to $30,000 per year. He said that the schools indicated that EV chargers are viewed by the schools as a way of attracting good teachers since they may not live in Palo Alto. Swaminathan described the proposal to provide discounted Utilities fees related to any required service upgrades since sometimes, a new transformer may be required in a neighborhood as a result of a new EV charger being installed. Commissioner Ballantine asked if this would apply when the next EV charger installation would require a transformer upgrade. Swaminathan confirmed that this is exactly the situation that would trigger this upgrade and the proposal is to partially fund the additional cost. He agreed that this situation may be more prevalent in the future as the number of EVs rise. Swaminathan described the idea to use LCFS funds to give a larger off‐peak price discount for EVs to charge at night. He said that there are billing issues with this, but it is an idea that will be explored more in the future. Commissioner Schwartz asked why we would want to discount non‐solar electrons to encourage charge EVs at night since the carbon content of the electricity should be a consideration. Swaminathan said that the “off‐peak” timing may change over time, but there could also be impacts on the distribution system that call for encouraging off‐peak charging. He noted that the last customer installing a charger may trigger the need for a distribution system upgrade that could be avoided by shifting charging to night‐time, or off‐peak hours. He said that energy storage is also coming and could assist in effectively moving solar energy to off‐ peak hours. Commissioner Johnson said that if a discount for off‐peak energy use was provided, how would the utility know if the energy used off peak was for EV charging, or for any other energy use such as a clothes dryer used at night. Swaminathan acknowledged that the utility would not know that, or try to determine that, and it would consider the point when designing the discount. Swaminathan said that the utility does not want to install a separate meter for EV chargers. Swaminathan said that another idea is to provide an incentive to EV owners who are willing to share information about their EV charger profile. Commissioner Schwartz asked if interval meters would be provided to access that type of data. Swaminathan said that the information would come directly from the charger itself and interval meters would not be needed. Commissioner Johnston asked if a rebate would be provided for those buildings that are required to install EVSE. Swaminathan said that those would not be eligible for rebates. Commissioner Johnston asked if a building owner was required to put in 10 chargers, but decided to put in more, could the owner get the rebate for the additional chargers. Swaminathan said that additional chargers beyond what is required would be eligible. Commissioner Ballantine asked if there was any consideration to providing an incentive to direct DC charging, or at least providing some funds for research and development for such activities as vehicle‐to‐grid infrastructure. Swaminathan said that staff has not considered this for these funds, but there may be some funds for that type of work in the evaluation of storage alternatives that is currently being done. He added that there are a number of storage systems being installed at residences with the potential to use DC power. Swaminathan said that LCFS credits are also available for compressed natural gas (CNG) vehicles. Staff proposes to use those funds to fund improvements at the City’s CNG station or subsidize the CNG dispensed. Commissioner Johnston said that there is the potential to dramatically increase EV adoption with more chargers available. Commissioner Ballantine said that he likes the idea of supporting infrastructure build‐out and providing more EV chargers where employees are. Commissioner Forssell supports the rebates for the EVSEs, especially for multi‐family, mixed‐ use and commercial buildings. She asked if a requirement for receiving a rebate for chargers be that they be communication enabled to allow collection of data since it is important to understand EV charging patterns. Swaminathan noted that the cost for a “dumb” charger is about $200 and the cost for “smart” (communication‐enabled) chargers is $2000 so we didn’t want to require them. Also dumb chargers, or even Level 1 chargers, may be very appropriate in some situations such as a workplace or school where employees park and can charge all day and do not need Level 2 chargers. Commissioner Forssell said that discounting night‐time rates for charging may not be the best message if off‐peak times change since people have a tendency to learn a behavior once and there may be difficulty if the message about the optimal time to charge changes. She added that she supports educational and outreach activities. Commissioner Schwartz said that the rebate offered for providing information may be unnecessary as most people would volunteer that information to the City to be helpful. She said that people will most likely do this if asked and would not be motivated to do so by a rebate and that the City can just appeal for the information and likely would receive it. She said that the money could be better spent on additional chargers for schools and non‐profits organizations that could use them for their fleet vehicles. Chair Cook said that it may be difficult to spend all the money in a year’s time and expects that staff will return with additional ideas to spend the money generated. He suggested a group‐buy could be used to reduce the cost of chargers for multi‐family facilities, schools, etc. Swaminathan said that the underlying assumption is that the Utility will take a hands‐off approach and does not intend to buy or own the chargers, unlike what PG&E plans to do by using ratepayer money to get into the business of building charger infrastructure. Chair Cook agreed that the City could facilitate the purchase of EVs without owning them. ACTION: Commissioner Trumbull made a motion that the UAC recommend that Council LCFS program and the use of revenues from the sale of LCFS credits and requested that staff explore the suggestions the UAC discussed for the program. Commissioner Johnston seconded the motion. The motion passed unanimously (6‐0) with Chair Cook, and Commissioners Ballantine, Forssell, Johnston, Schwartz and Trumbull voting yes and Vice Chair Danaher absent. FINANCE COMMITTEE EXCERPT MINUTES 1 Finance Committee Excerpt Minutes September 20, 2016 Special Meeting Tuesday, September 20, 2016 Chairperson Filseth called the meeting to order at 7:02 P.M. in the Community Meeting Room, 250 Hamilton Avenue, Palo Alto, California. Present: Filseth (Chair), Holman, Schmid, Wolbach Absent: 2.Staff and Utilities Advisory Commission Recommend That the Finance Committee Recommend the City Council Approve the Proposed Low Carbon Fuel Standard Credit Program, Including the Use of Revenues From the Sale of Low Carbon Fuel Standard Credits. Chair Filseth: We will proceed to the Staff and Utilities Advisory Commission (UAC) recommendation regarding disposition or use of revenue from low carbon fuel credits. Ed Shikada, Assistant City Manager: Low Carbon Fuel Standard Credits. Chair Filseth: Cap and Trade Credits. Ed Shikada: Well, not exactly. (crosstalk, background noise) Ed Shikada: This is actually credits generated by the sale of natural gas within our jurisdiction. No, got it wrong. Okay, try again. Credits generated by… (crosstalk, background noise) Mr. Shikada: Go ahead. ATTACHMENT D EXCERPT MINUTES 2 Finance Committee Excerpt Minutes September 20, 2016 Jane Ratchye, Assistant Director of Utilities: I’m Jane Ratchye, Assistant Director of Utilities. I have Hiromi Kelty with me who helped develop this program. So I’m just going to quickly go through the slides and try to get to your questions. I’m actually a substitute presenter tonight. The program manager is actually at a meeting elsewhere. So first we will go over what is the low carbon fuel standard, what is this regulation. This is actually, should be good news and a happy story here and, hopefully, noncontroversial. This is kind of free money to us and the decision here is a policy on how to spend these revenues that we get. So I’ll explain what the regulations, the value of the credits generated and we’re generating them both for Electric Vehicles (EV’s), and for compressed natural gas (CNG) vehicles,. And then I’m going to go over what we’re asking, what we will be asking Council to approve, the program on how we spend the revenues. You’ve seen some of this before at the Council, the Council approved a template for selling our low carbon fuel standard credits already, so that we can monetize these credits that we do receive, and then we will go into the timeline. So there is a State goal to reduce the carbon intensity of transportation fuels by 10 percent by 2020 and this is a program that the California Area Resources Board developed to try to achieve that goal. So transportation fuel companies are required to try to reduce the carbon intensity somehow of their fuel, and they are going to do it either by trying to get more efficient processes to extract and refine the fossil fuel, they are going to try to make the actual fuel they deliver have less carbon intensity by mixing in something that has a lower carbon intensity to it, or they will buy these low carbon fuel standard credits from somebody like us. So these are allocated to us at no cost or to providers of low carbon intense fuels. Compressed natural gas is a low carbon intensity fuel and so is electricity. So we get a certain amount of these credits and they are granted to us based on how many electric vehicles are in Palo Alto, and we know that because the Department of Motor Vehicles (DMV) tells us how many there are. It doesn’t tell us where they are exactly, but we know how many there are, and so we have agreed with CARB, California Area Resources Board of a formula. For each EV in town you get a certain number of credits and also we get additional credits for electricity that is delivered at EV charging stations that the City owns. So that’s based on how many kilowatt hours are delivered of our energy. Unfortunately, we only get to use the California average carbon intensity of the electricity. They wouldn’t let us get even more credits because we’re carbon neutral on electricity. We tried that. Chair Filseth: Actually, I wanted to ask that. It doesn’t matter even if we were generating our electricity from coal, it would be the same number of… Ms. Ratchye: Yes, yeah. EXCERPT MINUTES 3 Finance Committee Excerpt Minutes September 20, 2016 Chair Filseth: So they are really crediting EV’s not renewable energy. Ms. Ratchye: Right. Yeah, we made an argument there and it didn’t go. Also, so the value of it is how many credits we have and what the market value of the credits are and the market value, I’ll show a chart here later, has been very volatile. But just a few facts and figures, so as of March 2016 we had 1300 EV’s registered in Palo Alto. We project that that number is going to increase a lot in the future. So right now the value of the credits is, we think, this number of half a million dollars might actually be a bit high for 2016, just because the value of the credits have actually dropped lately, so we may not get that much money. But with additional EV’s in town we do expect this to be a substantial revenue source, so that’s why we need a policy how can we spend it. But we can’t spend it on anything we want. The regulations are very clear on how you can spend it and I guess I don’t have that in the presentation, but it has to be effectively to the benefit of EV owners, that’s the primary consideration for the EV credits. For the CNG vehicles it’s effectively the same thing, to the benefit of them. Chair Filseth: Nobody just wants to give them a rebate. Ms. Ratchye: What? Chair Filseth: Nobody wants to just give them a rebate. Ms. Ratchye: That’s what Pacific Gas and Electric (PG&E) is doing and that is an option. It’s very easy, it’s very direct, it definitely benefits the EV owners. PG&E has something like, give them $500 at one time amount. But we kind of felt we have this money, we can maybe kind of give an incentive for new people to get new EV’s and try to expand the EV’s in town, so we didn’t propose that. But I will get to that a little bit later. So this chart shows, the blue bars shows what the volume of the transactions in this market have been, so it’s you know, the volume has picked up a bit. The bars are two different sort of market measurements of where these, the value of these (inaudible) low carbon fuel standard credits have been. When we began this we signed up for this program in early 2014 and we were looking at a price around $50 a credit and then we saw them go way up. In fact, I was looking here in the report it says the prevailing price is $116 a credit. Well it has gone down since August. It is now $80 so the amount we get is going to be variable. So this, just to show you the program we’re proposing has different options and it has sort of delegates to the City Manager exactly for that year how the money would be spent, so the policy is, you can spend it in these areas and the City Manager will determine, okay, well this is how much money we actually got and there is interest in this part and not that part and this is how the money will be spent, how we will try to spend the money this EXCERPT MINUTES 4 Finance Committee Excerpt Minutes September 20, 2016 year. So we looked at a lot of different options, including some things that look reasonable for now, some things that are maybe not great at the moment, but we still included them in the program and we may want to implement those in the future. Let me go through the, kind of the reverse of this slide. The ones that we’re looking at for the near term in the initial year of the program will be rebates for the installation of EV, that’s Electric Vehicle Supply Equipment. That’s basically chargers. And the other idea was to try to, for people with electric vehicles, when they, because we have a tiered rate structure, they’re adding new electric load often will be bumped into the second tier, all the energy that they use to charge their car will be in the second tier. So is there a way for us to use this money to provide a discount or subsidy somehow for the electric costs associated with charging their EV’s. So that’s one idea. We have a pilot Time of Use Rate Program and we could expand that. A lot of the EV owners are on that Time of Use Rate Program and we may be able to use these funds to further discount off peak price and use the money that way. Of course, our rates have to be compliant with Prop 26 and based on the cost of service, but we can, these are additional funds beyond that that can be used to provide that subsidy. Also, there is another, if EV owners are willing to share with us information about how their EV’s are being used and perhaps we can communicate with them and tell them, please charge now or don’t charge now, and we can optimize and maybe use that for a demand-response program in the future or somehow a grid interactive type of information. We sort of provide incentive for people to share that data with us. And finally, and this is a component of the regulation, they want us to spend money or to provide education and outreach programs around EV’s, and so there is work to be done in that area to try to make sure people understand everything about EV’s and their value and their cost and how easy it is to connect in Palo Alto. Other ideas that we have discarded for the first year of the program that but are part of the policy and may be implemented in the future are to discount development center permit fees. That turned out to be just administratively difficult, so we’re not proposing that at the moment. Providing cash rebates, that’s a very, there is some administrative headache with that. Finding exactly the guy and who owns it and are they a utility customer, is it only utility bill and we cut them a check. Also, it felt like it was not, it’s probably not, the guy didn’t buy an EV because he was expecting to get a $500 check from the utility, so that probably didn’t really influence his decision to buy an EV. So that, and that idea of the cash rebate did not get very good support at all from the UAC. They thought the money could be better spent on these other programs that we proposed. The other idea is providing free charging at the public EV charging stations and we actually think that’s not a very good idea because it kind of makes, people will just use the free chargers for free and they will clog them up and they aren’t available, and what our point is, is to try to have chargers available for people and actually by charging money to charge, that actually makes a lot more chargers available to people and EXCERPT MINUTES 5 Finance Committee Excerpt Minutes September 20, 2016 that’s what we want. We want people to feel like when the get an EV there’s going to be a spot where they can charge them when they need to. So we kind of picked the bottom ones there. And I just have a couple of slides to show you, some projections about where we see EV charging right now and in the future. This shows that, how many EV chargers we expect or how many EV’s we expect for the people who live in town and the people who commute into town. Basically the point of this slide is we see EV charging and EV ownership, both by residents and commuters growing over time substantially. This is a picture of, the City does own some level 2 and sort of fast charger. You can see the blue line in the top chart shows how many of these chargers the City owns over the past several years, so we don’t own that many. It looks like we have six, and you can see the red line shows how many EV’s charge daily per charger. So that’s just kind of statistics for you. Then the bottom is how much total electricity is dispensed through the City- owned chargers. Again, that is how, that is one way we get additional of these Low Carbon Fuel Standard (LCFS) credits. So we, based on what we think we will get in terms of just revenue from selling these LCFS credits, we, our initial program is, and there is a lot more detail in the Staff report, this is sort of a summary, that we would provide first of all rebates for people putting in chargers and up to three rebates or three chargers per address, and we’re really trying to target multifamily dwellings and sort of the underserved area first. We think those are more difficult. Hiromi Kelty, Program Administrator: So I can talk about the program a little bit. So it’s actually a maximum of six chargers per service address because what we’re finding is there are all these new types of chargers where it has one pillar with like octopus arms and those are a lot cheaper to install, so we would like to see as many chargers as possible. But with EV charging in public places, it’s not the cost of the charger itself. Those you can buy, a single one you can buy for $5,000 to maybe $2,000. It’s the infrastructure work, so with our program we have it divided into two, actually. One for multifamily residences, like Jane said, and those would target apartments, townhouses, condominiums, mixed-use buildings and commercial buildings. Then the second part of the program would be for the school district, the public sector and nonprofit organizations, and we have two separate sets of requirements that we think would be a good idea. For the commercial side we’re saying rebates of up to $3,000 with a maximum of six chargers, and we’ll pay up to 75 percent of the total project. So we’re imagining we’ll be paying mainly for infrastructure costs, but at the end we want proof that they actually used, that they actually put all the conduits and everything in for an EV charger, so we have to at least be able to see one charger there at the end. Because some of these projects, they’re going to spend over $10,000 just laying all the conduit to make their buildings EV ready. And we have a various set of rules, for example, like in an apartment building it can’t be any parking space dedicated to one person, it has to be for a shared EXCERPT MINUTES 6 Finance Committee Excerpt Minutes September 20, 2016 parking location. This is something talking to a lot of the facility managers and the property managers of apartments and condominiums, they are really struggling with this because there is a huge demand from their residents asking for EV charging. The EV charging companies are coming up with a lot of great options on how to charge a fair rate, so each person will pay for the electricity they use, but they are not paying for their neighbor charging their car. So there are a lot of systems that are coming out. We are hoping most people will put in Level 2 chargers. Like Jane said, those are the faster ones. The Level 3 are the super chargers, like what the Tesla supercharging stations have. Level 2 tends to be the ones that are faster, so you could charge a car in maybe four hours and they use like a dryer, so 220 volt, 240 volt outlet, so it’s, for each of these places the big thing is where are they going to install this. So we’ve also decided we will do a pre- inspection and a post-inspection for each site before approving any rebates. Then for the schools and other nonprofit organizations and the public sector, we’re thinking rebates of up to $5,000 per Electric Vehicle Supply Equipment (EVSE) installed with a maximum of six EVSE’s and in this case the rebates can cover up to 100 percent of the total installation cost. The reason for this is, for example, at the schools the biggest cost is going to be the trenching because, if you think of the school parking lot or a church parking lot, there isn’t electricity right in those larger parking spaces, whereas at an apartment complex, electricity is pretty close to a pole. So a lot of the cost is going to be getting that infrastructure in place. Ms. Ratchye: So I think a lot of these details she is talking about are in Attachment B of the Staff report. I don’t know how much more detail you want or are interested in going through these. I kind of already explained just lightly before, generally what these five areas are, so let me just move on. Also, remember, we do have the compressed natural gas station that is used by schools and other people with CNG vehicles, including the City, so we do get some credits for that. The value for this is a lot less than the credits for the EV’s. This is only maybe $30,000 a year, but we do have a proposed policy for using those funds as well, and there are some improvements that the City is looking at to upgrade that CNG station and that would be the first area we would like to devote those funds to. Then, if there is extra money after that, we were looking at potentially making that a carbon-neutral gas supply for that CNG and then if there is any extra money after, actually reducing the rate that is charged for the CNG to make it even more beneficial for CNG driver. So basically this is what we’re recommending that you approve the program. We expect this to come back to Council in November and we would like to start this program in 2017. Chair Filseth: Thank you very much. At this point why don’t we see if there are any questions from the public. If there are no public questions, let’s EXCERPT MINUTES 7 Finance Committee Excerpt Minutes September 20, 2016 move on to Council question and comments. I think, why don’t we ask a round of questions first, because I have one and you have one, but comments is going to sort of (Inaudible). Council Member Holman. Council Member Holman: So I have a couple, three questions. So three percent now, six to eight percent by 2020, the number of EV’s in our district, and 30 to 60 percent by 2030. That’s a big range. Ms. Ratchye: A lot of that is driven by if we’re going to try to meet this 80 percent by 2030 goal, it’s got to be focused on mobility, because that’s the biggest part of estimations by far. Chair Filseth: That’s a need-driven number as opposed to (inaudible) number. Ms. Ratchye: Well, it doesn’t really affect the policy in front of you anyway. Council Member Holman: Just curiosity. Mr. Shikada: But it is intended to facilitate the growth. Ms. Ratchye: It’s a huge… Mr. Shikada: Major market shift. Council Member Holman: You sort of have access (in audible) like part of the projections… Ms. Kelty: That we’ll all have at least one EV. Council Member Holman: By 2030. Ms. Kelty: No, um, you know, I think one of the things is the price and as prices for EV’s come down, and I recently saw an email saying that there was a lease for like the Chevy Spark, $29 a month, which I looked into for my daughter. I mean, it’s a no-brainer, so I think like Jane said (crosstalk). I do think people will implement them, not just Palo Alto residents, but those commuting into Palo Alto, I think will say, you know, if I can charge at work I can go with a car that doesn’t have a 200 mile range. I do think more people will be driving EV’s. EXCERPT MINUTES 8 Finance Committee Excerpt Minutes September 20, 2016 Council Member Holman: So another question which is related, but not the same, you said that, when was it the rate was $116 and now it’s $80? Ms. Ratchye: I think, yeah, when we wrote this (crosstalk) I think it was July or June. Council Member Holman: And it’s already gone to $80. Ms. Ratchye: You can see the volatility of that. Council Member Holman: Yeah, so I guess the question is, is it volatile or is it going down? I mean, how do we… Ms. Ratchye: You know, we don’t know. I don’t know if it’s a trend going down and it’s going to go way down. We didn’t see that it was going to rise when we started and we saw that they were worth $50, we thought well let’s still joint the program. And then it went up a lot and we thought wow. Council Member Schmid: When did we join? Ms. Ratchye: We joined the program in early 2014. So I don’t know if it’s going to go back up or if it’s going to continue falling or if it’s setting at $80. I don’t know. Council Member Holman: So is the evaluation of the program going to be, like how frequent, because you know, we’re looking at spending money and there is this volatility or trend. Ms. Ratchye: We will spend the money after we monetize it, so we’ll get the credits, we’ll sell the credits, and then we will know how much money we have. Then the next year we will sell the next year’s credits. Now we haven’t spent anything so we have all the credits from when we joined the program in 2014. So we have some money to spend right now. Council Member Holman: So it will be sort of like, it will be sort of like a regular utility rebate in a way, just to use the term rebate generally loosely here. So people are going to understand the volatility it’s a trend downwards, then, you know, people won’t be married to… Ms. Ratchye: We might have to restrict it at some point and say, you know, we only have… I don’t know if we want to reduce the rebate from $3,000 to something less if we have less money, or just say, you really need $3,000 EXCERPT MINUTES 9 Finance Committee Excerpt Minutes September 20, 2016 and so we’re only going to have one per address or something like that. But we’ll find a way to, you know, implement it. So each year we’ll know how much we have and we’ll have to modify the program to meet that budget. Mr. Shikada: I think to you point to Council Members that the volatility of the pricing suggests this is not a funding source we would want to create more of an ongoing expectation. That the money will be there because of… Ms. Ratchye: There’s a chance this entire program might end. That’s a clear possibility these days when, this has come up recently actually that they might say, well this LCFS Program, we’re done with it. We were anticipating that it would go through 2020 and it may not even do that. Council Member Holman: That’s why I was sort of equating it to a utility rebate. Sort of like, you know, we’re out of money for your washer and dryer upgrade, so just wondering if it’s kind of … Ms. Kelty: So for our other rebates that Utilities offers, there is the recognition that as long as funds last and I think that would be the case with this. Council Member Holman: Okay. Chair Filseth: Questions? Council Member Wolbach. Council Member Wolbach: I have a couple of questions. Let’s see, on Slide 8, the chart at the top shows the number of Level 2 EV chargers that our City owned in blue, correct? Ms. Ratchye: Yes, just six now. Council Member Wolbach: So that’s 30. Ms. Kelty: 30 on the right-hand side. Council Member Wolbach: And I said a couple of questions. One, I can’t remember what our plans are to expand that over the next few years. It was neat to see the projections from the prior pages. I was kind of hoping to see a projection on that. Is that still a policy decision that is really going to come to Council? EXCERPT MINUTES 10 Finance Committee Excerpt Minutes September 20, 2016 Mr. Shikada: To a certain extent. On Monday the Council will be discussing the EV chargers, sorry, solar in City garages. As part of that project there is in conjunction with our private partner, the plan to add 80 additional chargers in the four garages. Council Member Wolbach: So we’re going from 30 to 110, cool. And the previous line of questioning may have answered my next question, which is, do we want to dedicate some of these funds to that or towards even more expansion, but given this money is not very dependable, it sounds like we don’t want to count on it in order to plan financing infrastructure improvements, including EV chargers. Is that kind of what Staff was thinking, that it would be risky to count on this as funding coming in, and so we don’t want to plan to use this for, of the proposals presented here by Staff, helping fund construction of more City-owned EV chargers is not one of the options, correct? Ms. Kelty: I just want to say, like Jane said, there are funds from 2014, ’15 and ’16, and I think the prices are coming back up again after they dropped quite a bit from that $116 price and… Ms. Ratchye: I think the question is, will the funds be used for City-owned. Council Member Wolbach: Yeah, so let’s start with that. Ms. Ratchye: If you look at our Attachment B, which is the program, what we’re trying to target with this program is the multifamily, the mixed use, commercial building garages and parking areas. We don’t really say we’re going to give this money to ourselves, the City, so we’re trying to increase EV charging available where it’s kind of been an underserved area now, is the first goal to try to get it beyond. And we are expecting, hopefully, these new chargers that will come along with the solar on the four garages too, so we aren’t, there’s nothing really in here that doesn’t allow us to do that, but that is, wasn’t the first place that we were going to concentrate. Council Member Wolbach: Okay, and then you said up to six chargers per address, correct? Would that include your larger, you know, places with a lot of parking, such as big grocery stores, Town and Country or Charleston shopping or Midtown or, you know around Cal Ave, I guess that’s more City owned, or Stanford Shopping Center, where you have a large big parking lot and lots of people driving there on private property, would the cap still be six? Ms. Ratchye: For now I think we’re thinking six per address. EXCERPT MINUTES 11 Finance Committee Excerpt Minutes September 20, 2016 Council Member Wolbach: Is that just because we don’t want a single employer to tap out… Ms. Kelty: We want to spread it out across the City as much as possible. Stanford Shopping Center, or let’s say Tesla says we want to put in a bunch of chargers… Council Member Wolbach: They could drain the whole (inaudible). Ms. Kelty: We can’t say no, but, right. Council Member Wolbach: If we didn’t have the cap. Ms. Kelty: We want to spread it out as much as possible. Council Member Wolbach: We don’t want anyone to monopolize the funds. That makes sense. Mr. Shikada: I think also part of the rationale here is, as Jane pointed out, the untapped market or perhaps another way of saying this is, it’s the seed market that we see as key to the future growth of the EV say volume within Palo Alto. So the area in particular of multi families, multifamily developments, because of the duration of the parking, but also being consistent with the ability to charge versus let’s say a grocery store, where the stay would be relatively short as one of the key growth areas to meet our Sustainability Plan of Action goals. Council Member Wolbach: And then on Slide 10, it looks like compressed natural gas vehicles, I don’t know if it was the shorthand used for the ballpoint, I wasn’t really clear on the first ballpoint on your item 1, is that expanding the number of compressed natural gas vehicles? Mr. Ratchye: Right. The point of it is to make it available to more CNG owners, CNG vehicle owners. Council Member Wolbach: So is the goal to make the clean natural gas station available to more natural gas vehicle owners, or is the goal to expand the number of compressed natural gas vehicle owners? Ms. Ratchye: Well that is the goal, probably both. EXCERPT MINUTES 12 Finance Committee Excerpt Minutes September 20, 2016 Council Member Wolbach: Okay. I actually have kind of mixed feelings. I didn’t have a chance to go in depth through the UAC comments about this. I don’t know if it was discussed there. I don’t think I’m alone in having kind of mixed feelings about whether we really want to encourage more compressed natural gas vehicles in Palo Alto, or if we should really put more of our focus on EV’s. Ms. Ratchye: Right, but with the funds, with the revenue from the LCFS credits that you get from dispensing compressed natural gas, it has to go to the compressed natural gas owners, or to encourage those or to reduce their cost. You can’t take the revenues from that and use it for EV’s. We’re going to get, the value of this is much, much smaller. It was $30,000. Maybe with the falling value of the credits, it’s maybe like only $20,000 to $25,000. So it’s not a whole lot anyway. Council Member Wolbach: So basically we shouldn’t worry about it too much. Mr. Shikada: It’s not going to have a big impact on the market. Council Member Wolbach: Okay, I’ll leave that one alone then. Thank you. That’s it for my questions, Chair. Chair Filseth: Council Member Schmid, questions? Council Member Schmid: Well, a couple of questions, some just to understand. We are selling these credits to someone who does not then have to reduce greenhouse gas? Ms. Ratchye: Right, this is the cheapest way for them to do it. Council Member Schmid: Right, so it’s the cheapest way, but does it mean our savings that we are achieving by buying electric vehicles doesn’t happen in the State, at no net effect on the State? Ms. Ratchye: Well, they still have to pay, right, so they don’t get these for free, so they’re trying to make a decision, should we increase the efficiency, can we, at what cost, or should we just buy these credits, and maybe that’s another reason that the value of the credits has gone down. Maybe people are finding that they can do other things more cheaply than the credit, but at some point, I mean the fact that they have to buy this for $80 or $100 or whatever it is, rather than zero, adds a cost to the (crosstalk) high carbon intensity. EXCERPT MINUTES 13 Finance Committee Excerpt Minutes September 20, 2016 Council Member Schmid: So does one cent, one-tenth of a cent change in the gas price have an impact on greenhouse gasses? Ms. Ratchye: Well, if it, if that one-tenth of one cent is used to encourage EV’s or CNG’s or low carbon intensity fuels, that’s the whole point of this program, so you know, if you question that you question the intent of the entire program. Council Member Schmid: Well, yeah. Ms. Ratchye: I mean it’s basically, it’s kind of like Cap and Trade in its own way (crosstalk). Council Member Schmid: … to buy out and maintaining a bad practice, not necessarily a (inaudible). Okay, just a background question. Let me ask questions on your recommended program areas. You have seven times the amount going to large rental properties or non-single family homes as going to individuals, so it’s a big bias towards these groups. Ms. Ratchye: And you’re looking at Page 5 of the Report, the chart there? Council Member Schmid: Yes, that’s what I’m looking at. Tell me a little bit how this works in apartment buildings. Suppose you have an apartment with ten units and you have ten parking places and all of the parking places are open and you have five of them having electric vehicles and they all come back from a long commute at 7:00 P.M. at night. Who gets the charger that you just put in? Ms. Kelty: That is the tricky part and that is something that when I talked to property managers, is one that I think each community is going to have to figure out. For example schools, the same thing, the teacher that commutes and they really need to charge to get home. If you look downstairs at our parking garage, those chargers are rarely ever empty and what I’ve seen my colleagues do is, everyone knows who has an EV and there is a buddy system where after their three hours is up for charging, they call their colleague or whoever and says, okay, I’m done, and then they’ll switch. Council Member Schmid: Okay, that’s at work where you have eight hours and colleagues. When you’re in the apartment after a long day at work and commuting, does it mean someone goes down there at 1:00 A.M. in the morning? Mr. Shikada: (Crosstalk). EXCERPT MINUTES 14 Finance Committee Excerpt Minutes September 20, 2016 Ms. Ratchye: I mean it’s going an issue I think the landlord and the tenants are going to have to work out and if there is a problem like that that persists, I would hope the landlord would have some sort of incentive to build more chargers. Council Member Wolbach: We’re not going to solve that one here tonight. Council Member Schmid: Right, but the issue is that it’s hard to create incentives for EV’s if you don’t know if you’ll be able to take care of it when you get home, because that’s always the worry. Okay, let me just go to the economics of the deal. Instead of going to the EV buyer, the individual who has laid out the money, who can come from any part of the City, it’s going instead to apartment owners as an infrastructure issue because they aren’t getting the subsidy on their infrastructure, and it’s a rental property, not an owner property, so it doesn’t go to the residents, it goes to the owner, property owner. So why do we have seven times the subsidy to property owners than to those who are actually buying the EV’s. That would seem to me to argue a real case, let’s get it to the people who just laid out money to buy an EV. Why give it to property owners to enhance their infrastructure at no cost? Mr. Shikada: It really reflects the ability to then leverage that into future purchases. Again to incent the market the availability for other users. For a single family it really wouldn’t be available to anyone else. Council Member Schmid: Yeah, that goes back then to if I’m one of ten, can you guarantee me that I can do it before 2:00 AM. Mr. Shikada: A future policy discussion for the Council will be the charging rates and how to design a rate that creates an incentive to get off the charger after a certain number of hours. Council Member Schmid: Yeah, but it would seem to me the incentive, the individual incentive would be much stronger if we just write a check. You buy an EV, we send you check. Mr. Shikada: If you could depend on that check, and again recognizing the volatility of the rebate or the funding source as we were just describing, if you were immediately making, let’s say in the next several weeks or even months, a decision to buy an EV based upon the existence of this program, then perhaps it has that impact, but if you’re looking at it as more of a, let’s say, you’re planning a future buy, this program may not be here, so I think the investment, or the City’s, the utilities’ decision to make it available at a EXCERPT MINUTES 15 Finance Committee Excerpt Minutes September 20, 2016 multifamily dwelling or development makes it more likely it would be available for some future user who hasn’t either moved in or hasn’t purchased the EV. Council Member Schmid: Okay, but the dynamic of the market right now is every person that has a car does repurchase and that repurchase date is ever moving closer, so if you had the clear incentive out there now it might be enough to tip the balance for a number of people and then you get more EV’s in town and that’s what we want. Chair Filseth: A follow-up question Council Member Wolbach. Council Member Wolbach: Just kind of picking up on that, I actually think that you raise, Council Member Schmid raises a couple interesting points that kind of relate to each other, which is, one of the reasons why we want to incent the construction providence of additional chargers throughout the City is so that it’s more likely when you come home from work you’re going to find a charger at home or when you go shopping, near where you’re going shopping you’ll find a charger there, or if you’re working in town and commuting from say our neighborhood in Paloverde, you work in the Stanford Research Park and you commute over there, you’re more likely to find a charger there. And, you know, speaking from personal experience, one of the reasons why I haven’t bought an EV myself yet is I’m waiting a couple of years until the charging infrastructure is more robust and I can more guarantee that I’ll be able to plug my bike in when I get to my destination, so anecdotal one personal experience, but I think those two questions really do tie together. I actually think that the spread is pretty good here, so… Chair Filseth: I have a question. Do you have a question? Council Member Holman: I have a curmudgeon questions. Chair Filseth: I don’t see anywhere that it says curmudgeon. Council Member Holman: Well, Yahweh used to say that I think like an auditor, so with that, so at this stage, you know, there is talk of… Chair Filseth: This is a question, right? Council Member Holman: Yes it is. Charging, you know, a tax on electric vehicles as a part of the registration fee because they don’t pay a gas tax anymore, but yet they use the roads, so that’s the background for my EXCERPT MINUTES 16 Finance Committee Excerpt Minutes September 20, 2016 curmudgeon question here. So right now, we have, to use the numbers in this presentation, 1,300 residential vehicles, and that 1,300 cars we’re allowing the use of $12,000 worth of City electricity, if I’m understanding this correctly, so if that number of... Isn’t that right? Ms. Ratchye: Let me see. Council Member Holman: Electricity consumed by City-owned Smart EV chargers. Ms. Ratchye: Those are just the electricity by the City-owned chargers, so a lot of the EV’s are being charged at people’s homes. Council Member Holman: No, I understand. Yeah, so we’re on the same page. So this is, the City is basically subsidizing the $12,000 of electricity. Now currently, I told you this is a curmudgeon question so bear with me, so that’s with 1300. If we’re looking to go to 2020 to have, you know, whatever the six percent would be (crosstalk), 2,600 so, you know, let’s just say use that number, that’s double, that’s $24,000 worth, and you go up to 30,000, that’s ten times, so it’s $120,000 worth. And let’s just pretend for purposes of conversation, because we don’t know, let’s just suppose that the value of the credits goes away totally, so the City is then subsidizing, I’ll just make up a number, $200,000 worth of electricity to EV drivers. And that’s so… Ms. Ratchye: I mean, that’s an issue that we would probably, we’re trying to solve separately with, have been trying to find a way to not have the City even chargers, have it be free, but charge a fee. So that’s separate from this program. In fact, one of the ideas was, let’s imagine that we’re in the future, a couple years, and we are charging and not, as you say, subsidizing and providing this energy for free. One of the ideas was, why don’t we make it free or cheaper and that was one of the ideas we said, no, that’s not a good idea. I just don’t think the incentive is right, if you provide something for free people will go and just sort of sit because it’s free, and they’re there and they don’t necessarily really need it and they don’t leave the space and the charger open for people who actually do need to charge their car. So you’re right, we’re subsidizing and providing this for free and I don’t know how long that’s going to persist, but that’s not the plan to do that forever. (crosstalk) The plan is to stop doing that for the reasons you described. Council Member Holman: And you don’t anticipate, you know, ATM’s used to be free and they started charging for it, but it’s like, (inaudible) EXCERPT MINUTES 17 Finance Committee Excerpt Minutes September 20, 2016 Mr. Shikada: It’s interesting, you know, some of the resident feedback we’ve gotten, maybe curmudgeon feedback, was the inability to get on a charger because others are sitting on there. So we expect that by implementing a charge or fee for charging, again, to create the incentive to get off the charger. Council Member Holman: I hope you appreciate the question and maybe it’s not so separate that it shouldn’t come to the Council. Anticipate the question at the Council. I won’t bring it up again. Ms. Ratchye: It’s a good question and it’s something we need to solve. (crosstalk). Chair Filseth: So I have a couple of questions. The first one is, so this portfolio, we have so much towards this bucket and so much towards that bucket. How often does that get adjusted? I mean, what’s the process by which that sort of gets changed over time? Ms. Ratchye: The program that we’re asking you to recommend approval is Attachment A, and that includes sort of delegating to the City Manager how the program would be run with the available dollars annually, so the City Manager would adjust these each year as we figure out how much we actually have. So it’s well this year we have $2 million, let’s do whatever and then the next year we only have $500,000 or whatever. So that’s part of the program is that the City Manager will have authority to annually review the program. So what we’re kind of showing here is not what you’re being asked to approve, but just the sort of initial proposal for the initial year of the program. Chair Filseth: Got it. Okay. Because the reason I ask is the amount of money this year is pretty small. So how big of a mistake can we make, right. But on the other hand, if it grows over time, then… If it doesn’t get cancelled like you said, right. If it grows and becomes in the millions of dollars then (inaudible). So my other question is, what is the intent of the legislation? That is, what kind of guidance have we been given on how to utilize these funds. I mean, obviously, as you point out, we’re not allowed to take the compressed natural gas and use it on EV’s. That’s a constraint. Ms. Ratchye: The guidance is on Page 3 of the Report. Those are the regulations. Chair Filseth: What’s your interpretation of the intent? EXCERPT MINUTES 18 Finance Committee Excerpt Minutes September 20, 2016 Ms. Ratchye: I think the intent is to try to reduce the carbon intensity of transportation fuels by 10 percent by 2020. This is a program to meet that objective. Chair Filseth: I understand that, but they’re going to give us, I mean, they’re going to allow us to sell these credits. What’s they’re guidance on how we should use the money. Ms. Ratchye: That’s on Page 3. So this is verbatim from the regulations and this is for the EV’s. “Use all credits to benefit current or future EV customers, educate the public”, so that’s why we have that education piece in there, “of the benefits of EV transportation. Provide rate options that encourage off- peak charging or minimize adverse impacts to the electric grid. Include an annual compliance report”. So we have an obligation because of getting these credits to report annually to the CARB how we did spend the revenue. So we’ll have to report and in fact, one of the other parts of what we’re asking Council approval for includes a program reporting requirement. So that’s basically it, and it’s less sort of prescriptive for the natural gas fee of goal revenue, but it’s effectively the same. Chair Filseth: But it’s tiny and will shrink. Okay, I understand. Okay, with that, any comments? Are we already done with the comments? Council Member Wolbach. Council Member Wolbach: I’d like to move the Staff recommendation. Council Member Holman: Second. MOTION: Council Member Wolbach moved, seconded by Council Member Holman to recommend the City Council approve the proposed Low Carbon Fuel Standard (LCFS) program, including the use of revenues from the sale of LCFS credits. Chair Filseth: So I have some comments. It seems to me… Council Member Schmid: Is there a Motion on the floor? Chair Filseth: There is a Motion on the floor. Council Member Schmid: And it has been seconded? Chair Filseth: It has been seconded. EXCERPT MINUTES 19 Finance Committee Excerpt Minutes September 20, 2016 Council Member Holman: Yes. But the maker didn’t get a chance to speak to his Motion. Chair Filseth: Do you care to speak to your Motion? Council Member Wolbach: I actually think we hashed out most of this. I am happy to hear the other comments from the Chair, but I think that Staff seems to have really done their homework, understanding the context of EV use in Palo Alto, doing our best to try to project that for the future, understanding what we’re allowed to do under the regulations and trying to make best use of that for us. So I think it’s a sound recommendation. If anyone has friendly amendments, I’d be open to them, but I think it’s largely heading in the right direction. Chair Filseth: Council Member Holman, care to speak to your second? Council Member Holman: I think Staff’s done a good job laying this out, curmudgeon factor aside. And I think you said it’s not like we’re risking a lot of money here. Chair Filseth: Greg, want to comment on that? Council Member Schmid: I’d like to hear your comments. I have no extra comments. Chair Filseth: So it seems to me, given their guidance, that the high level use of this kind of funds kind of falls into three buckets that seem to be sensible to me. One is because the intent is to proliferate EV usage, let’s just speak about the EV now, so one kind of investment we can make is to help the City offset the cost of investing in the EV infrastructure to support that kind of mobility, right, which I think makes sense. There’s a second bucket which is to the benefit if existing EV owners, and there’s a third bucket which is to the benefit of future EV owners, those people who haven’t bought one yet but might buy one in the future. And there’s a fourth bucket, actually, which is EV drivers that aren’t from Palo Alto, because if I look at how the money, how we get it, it’s attached to the fact that there are EV drivers in Palo Alto so… Council Member Schmid: Living in Palo Alto. Chair Filseth: Living in Palo Alto, and it’s coming in because of that. Ms. Ratchye: Or that’s dispensed by the City owned. EXCERPT MINUTES 20 Finance Committee Excerpt Minutes September 20, 2016 Chair Filseth: Or that’s dispensed by the City owned, correct, so the argument that it should go to existing EV owners, because they already made their decision, I’m troubled by that argument, okay. At least that some of it shouldn’t go there, right. Because, let’s say Karen owns an EV, so we’re going to get $200, $232 right, this year because Karen bought an EV. So if we take the $230 that’s coming in because of Karen and we give it to Greg to buy an EV, then we’re basically, it seems off to me, okay. It seems like a transfer, okay. I mean, it’s not actually what that is, right, but it sort of seems that way. So it seems to me that Karen ought to get some of it. Now, City investing in EV infrastructure benefits everybody, so that one’s easy. City providing incentives to future EV customers, that seems to be consistent with the intent of the program, right, and what they want to do. You know, governments have the right to tax and distribute. Again, step aside for a second, and allow the caveat that the numbers here are so small that how much engineering does it make sense to do. But then one other category is, people that don’t live in Palo Alto, right, but drive their EV’s in to charge. So to me that’s another reason why the City shouldn’t give out free electricity at City-owned charging stations, because the vast majority of those are going to go to people who have commuted in. Because your data shows that 80 percent of EV charging is done by people at their home, right, which is how I do it. I’ve had an EV for eight years and I think I’ve charged it less than four times at some other place. So it seems to me that those three buckets ought to be, ought to guide our thinking in how to spend the money. So, for example, to offset the cost of installing EV charging facilities in apartment buildings, that sort of makes sense to me, because they are going to be used by Palo Alto residents, because it’s people who are living there, it’s not people who drive from San Jose and so forth. And it goes towards maybe existing EV owners, although if there’s not a charging station at your apartment building, maybe you probably don’t have an EV. Council Member Wolbach: Or you may be in Greg’s situation where you got in tight with your neighbors. Chair Filseth: …you have to que up at 3:00 A.M. in the morning or something. So none of this is to reject Council Member Wolbach’s Motion, which I’m going to support too, but I think as we go forward we ought to be thinking about that. That some of it should go, I mean, having this funding City infrastructure stamp makes a lot of sense and a lot of it should go there. I think some of it needs to go back to existing EV owners, so to the extent there are programs that benefit existing EV owners and future EV owners together, like reducing the cost of charging at night, you know, and I saw that and I thought, boy that makes a lot of sense now but what about in 2024, when 35 percent of our electricity comes from solar and it only shows up in the nighttime, you don’t want people to charge in the daytime, so that EXCERPT MINUTES 21 Finance Committee Excerpt Minutes September 20, 2016 kind of makes sense. But if you went through that filter again, and it would line up with yours, that you know, free electricity at City EV chargers probably doesn’t rank high on the prairie and the other thing that I’ve looked at this and I think it makes sense is that we should spend a little bit on education and outreach, but I would hate to see us spending millions of dollars on education and outreach, because my sense is that people in Palo Alto, they’re not going to be influenced too much by this stuff, right, so I mean, but they may be influenced by apartment buildings with chargers and so forth. So, yeah, so that would be my two bits on that. Council Member Holman: I did have one question and really good comments, I want my $252. But I did have a question, 32, I’m sorry. But I did have one question I neglected to ask is, are we talking about apartment buildings that are new construction or how feasible is it to retrofit? Ms. Kelty: This is just retrofits, because the Building Code… Council Member Holman: Just retrofits, okay. Ms. Kelty: Yes, because Building Codes today say (crosstalk). Council Member Holman: That’s right. Ms. Kelty: So in that case they do not qualify for the rebate. This is just for existing buildings that do not have any… Council Member Holman: I knew that. Thank you for the reminder. I knew that. Chair Filseth: That goes to some of my comments, programs that benefit all EV owners are preferable to those that just benefit new ones, like paying to install chargers, because Karen had to install a charger too, right, and she’s getting some of that credit because she installed a charger. Council Member Schmid. Council Member Schmid: I thought Eric made some great points. The key qualifications I would add is that the early users of EV’s already have their reward for being smarter than others and (crosstalk), the best way to build an infrastructure is to increase the number of EV users, therefore, I propose an amendment to the Motion that the majority, half the funds go to rebates, at least half of the funds go to rebates to new buyers. Ms. Ratchye: Rebates to new buyers? EXCERPT MINUTES 22 Finance Committee Excerpt Minutes September 20, 2016 Chair Filseth: New buyers only? Council Member Wolbach: I will not accept that as a friendly amendment. AMENDMENT: Council Member Schmid moved, seconded by Council Member XX to add to the Motion, “with at least half the revenues going toward rebates for new EV buyers.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND Ms. Kelty: Just food for thought, there is also a request by early adopters that places in public spaces, like certain churches and buildings that put in EV chargers that are free to the public that have been there for a while, that they should get something, and so there are a lot of groups that could potentially get some of the funds. Ms. Ratchye: I had another comment on the giving to existing EV owners. We don’t know who these owners are and we know the number, but the administrative issue with trying to find out who they are, whether they still own it, and then, you know, having them to come forward and register and how many of them are going to do that, and it turned out it was actually fairly expensive to give the money away, and it didn’t feel like a very good use of the money. And then, if you did an annual amount, because we get the money annually based on the value of what we sell it for, then you have to continue to check with them, do you still own that car, and you know, a lot of them don’t necessarily want you to know that they own it or where they live and all that stuff, and they may not be a utility customer, so it’s a different type of relationship we would have with them, and it turned out to be, just thinking through it, it felt like, wow, that is probably not worth it. Chair Filseth: Thank you very much for that and I, you know, that makes perfect sense. I don’t mean to sort of argue that specifically literally the City should start sending out checks to existing owners. I think we should weigh the administrative efficiency into all this stuff as well. Only that principal that, you know, the existing owners did what they did because what they did and should be out of the equation. I find that problematic. I think we should design programs that benefit all EV owners. I didn’t mean to say sort of literally we should send out checks. Council Member Wolbach. Council Member Wolbach: I like the whole concept inspired by the comments of my colleagues. The, kind of the fourth bucket of, that was identified by Chair Filseth, you know, helping or providing some kind of service or spending in a way which benefits EV users who do not live in Palo Alto. I EXCERPT MINUTES 23 Finance Committee Excerpt Minutes September 20, 2016 would actually not argue that we should eliminate or limit that bucket. I actually think that is a tremendously important bucket, as it is exceedingly difficult for people to live in Palo Alto and it’s not likely to become easier for those people to become Palo Alto residents any time soon, yet they do have to commute to Palo Alto for their jobs and given not just Palo Alto, but regional housing costs, sometimes those commutes are stretching further and further away. In order for them to have a successful commute without severe range anxiety or really pushing beyond the range capabilities of EV’s, having a place for them to charge when they get to their job or come to Palo Alto to spend their money and help our sales tax base, when they come to Palo Alto for them to have a place to charge, even, whether it’s for a couple of hours while they are shopping here or having dinner downtown or when they’re at work here, before they go home to whatever community they live in, I think that is important and pursues the goal of Palo Alto. Not just the State goal, which is to, you know, make it easier and thus encourage people to buy EV’s and to use EV’s, but also pursues our goal of being a great City, as was mentioned earlier, the lion’s share, the big opportunity for us to reduce our net greenhouse gas is in transportation, and considering that we can’t just think about the greenhouse gas impacts of Palo Alto residents, we have to think about the greenhouse gas impacts of Palo Alto, and that includes the car trips that we facilitate, encourage, require by having people come to and from Palo Alto from other communities. I just wanted to emphasize, you know, it doesn’t sound like we’re going to have a debate about it as motions tonight, but you know, if it does come to future decision making by City Manager or the Council, it sounds like there might be some, my preference would be to make sure that group is not left out of the equation. Chair Filseth: I actually think that’s a separate discussion, and maybe a valuable discussion in its own right. It’s really an issue to what extent do we, does the City of Palo Alto want to invest in regional stuff, right. That is, you know, the City of Palo Alto, for example, could say, you know we’re going to take one percent of revenues and put it into regional emissions reductions, right, and that’s going to be, we’re going to provide charging stations for people that drive in, we’re going to provide charging stations, we’re going to help fund charging stations in San Jose, and Cupertino and other places too. It’s a regional action kind of thing, and I think that it’s potentially, it’s a worthwhile discussion, but I think what you’re describing sort of fits on that axis, not specifically this one. Council Member Wolbach: What I’m taking about… Chair Filseth: Because you can make the same argument, you know, people who work in San Jose. I mean, maybe we should say, maybe we should EXCERPT MINUTES 24 Finance Committee Excerpt Minutes September 20, 2016 subsidize park space in San Jose because they live in San Jose, right, but they work in Palo Alto, you know. Do we have an obligation to help them with their life. You can make the argument. It seems to me the same kind of argument, but like you said, it’s not material to the Motion tonight. I thought what to do about the discretion of the City Manager on an annual basis makes sense. Further comments. All those in favor. Motion carries 4-0. MOTION PASSED: 4-0 Chair Filseth: Thank you. Council Member Schmid: If I could make a comment, I found it very helpful that the UAC minutes were more detailed than then traditionally have been. It makes a world of difference to be able to see these rather perspectives and points of view. ADJOURNMENT: The meeting was adjourned at 8:46 P.M. City of Palo Alto (ID # 7274) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Old Pumping Plant (OPP) Rehabilitation -Construction Title: Approval of a Contract With Anderson Pacific Engineering Construction, Inc. (APEC) in the Total Amount of $2,746,563 for the Old Pumping Plant (OPP) Rehabilitation Project at the Regional Water Quality Control Plant - Capital Improvement Program Project WQ-80021 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1.Approve and authorize the City Manager or his designee to execute the attached Wastewater Treatment Enterprise Fund contract with Anderson Pacific Engineering Construction, Inc. (Attachment A) in the amount of $2,496,875 for the Old Pumping Plant Rehabilitation project at the Regional Water Quality Control Plant included in the recurring Capital Improvement Program project WQ-80021; and 2.Approve and authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Anderson Pacific Engineering Construction, Inc. for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $249,688. Background The Regional Water Quality Control Plant (RWQCP) has two raw sewage lift pump stations:the smaller lift station known as the Old Pumping Plant (OPP) built in 1956 and the much larger lift station built in 1972 known as the New Pumping Plant. The OPP lifts raw sewage out of the sanitary sewers up to RWQCP’s main treatment structure serving as a backup to the New Pumping Plant. City of Palo Alto Page 2 The OPP rehabilitation project is consistent with RWQCP’s Long Range Facility Plan (LRFP)completed in October 2012 and accepted by Council in July 2012 (SR ID 2914). The LRFP identified the need to use ongoing Capital Improvement Program wastewater treatment projects to rehabilitate the aging OPP.In November 2014 Council approved a contract with Carollo Engineers, P.C. (SR #5119) to design and prepare construction bid documents for the rehabilitation of the OPP. Discussion The OPP’s concrete structure, mechanical equipment, and electrical equipment have exceeded their useful lives. Pumps and valves leak raw sewage, no longer operate as intended, and utilize outdated and inefficient electrical controls. The concrete is deteriorating and the equipment needs to be replaced for safety, efficiency, and operational reasons. The work to be performed under this contract includes:(a)replacing the pumps, motors, isolation valves, power distribution equipment, pump controls, and flowmeter; (b) plugging leaking influent sewer pipes; (c) recoating wet wells;(d) repairing concrete; and (e) installing corrosion protection. On Aug. 16, 2016, the City advertised a notice inviting formal bids for the Old Pumping Plant (OPP) Rehabilitation project. The bidding period was 28 days. On Sep. 13, 2016, bids were received from four qualified contractors as presented in the bid summary (Attachment B). Summary of Bid Process Bid Name/Number Old Pumping Plant (OPP) Rehabilitation Project (IFB #165685) Proposed Length of Project 15 months Number of Bid Packages downloaded by Contractors 38 Number of Bid Packages downloaded by Builder’s Exchanges 7 Number of vendors notified through City’s eProcurement system 576 Total Days to Respond to Bid 28 City of Palo Alto Page 3 Pre-Bid Meeting Yes Number of Company Attendees at Pre-Bid Meeting 11 Number of *Bids Received:4 Bid Price Range From $2,496,875 to $3,352,400. Staff reviewed all bids submitted and recommends the bid of $2,496,875 submitted by Anderson Pacific Engineering Construction, Inc.(APEC)be accepted and that APEC be declared the lowest responsible bidder. The bid is 0.04% above the engineer's estimate of $2,496,000. The change order amount of $249,688, which equals ten percent of the total contract, is requested for related additional, but unforeseen work, which may develop during the project. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also checked references supplied by the contractor for previous work performed, including other work with the City, and found no significant complaints. Timeline Following Council approval of the contract, the work is expected to be complete by January 31, 2018. Resource Impact, Funding for this contract is included in the Wastewater Treatment Enterprise Fund Capital Improvement Program Plant Equipment Replacement project WQ- 80021 budget. Policy Implications Authorization of this project does not represent a change in existing City policies. Environmental Review The recommended action is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 (b), which includes maintenance of publicly-owned wastewater facilities involving negligible expansion. Attachments: City of Palo Alto Page 4 ·Attachment A: Anderson Pacific C17165685-OPP Rehab (DOCX) ·Attachment B: IFB165685 Bid Summary (PDF) Invitation for Bid (IFB) Package 1 Rev. April 27, 2016 CONSTRUCTION CONTRACT Attachment A CONSTRUCTION CONTRACT Contract No. C17165685 City of Palo Alto OLD PUMPING PLANT (OPP) REHABILITATION PROJECT Invitation for Bid (IFB) Package 2 Rev. April 27, 2016 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….…………..6 1.1 Recitals…………………………………………………………………………………………………………………….6 1.2 Definitions……………………………………………………………………………………………………………….6 SECTION 2 THE PROJECT………………………………………………………………………………………………………...6 SECTION 3 THE CONTRACT DOCUMENTS………………………………………………………………………………..7 3.1 List of Documents…………………………………………………………………………………………….........7 3.2 Order of Precedence……………………………………………………………………………………………......7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………..8 4.1 Contractor's Duties…………………………………………………………………………………………………..8 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..8 5.1 Contractor's Co-operation………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………….......8 6.1 Time Is of Essence…………………………………………………………………………………………………….8 6.2 Commencement of Work…………………………………………………………………………………………8 6.3 Contract Time…………………………………………………………………………………………………………..8 6.4 Liquidated Damages…………………………………………………………………………………………………8 6.4.1 Other Remedies……………………………………………………………………………………………………..9 6.5 Adjustments to Contract Time………………………………………………………………………………….9 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………………….9 7.1 Contract Sum……………………………………………………………………………………………………………9 7.2 Full Compensation……………………………………………………………………………………………………9 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..9 8.1 Standard of Care…………………………………………………………………………………..…………………9 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..…10 9.1 Hold Harmless……………………………………………………………………………………………………….10 9.2 Survival…………………………………………………………………………………………………………………10 SECTION 10 NON-DISCRIMINATION……..………………………………………………………………………………10 10.1 Municipal Code Requirement…………….………………………………..……………………………….10 SECTION 11 INSURANCE AND BONDS.…………………………………………………………………………………10 Invitation for Bid (IFB) Package 3 Rev. April 27, 2016 CONSTRUCTION CONTRACT 11.1 Evidence of Coverage…………………………………………………………………………………………..10 SECTION 12 PROHIBITION AGAINST TRANSFERS…………………………………………………………….…11 12.1 Assignment………………………………………………………………………………………………………….11 12.2 Assignment by Law.………………………………………………………………………………………………11 SECTION 13 NOTICES …………………………………………………………………………………………………………….11 13.1 Method of Notice …………………………………………………………………………………………………11 13.2 Notice Recipents ………………………………………………………………………………………………….11 13.3 Change of Address……………………………………………………………………………………………….12 SECTION 14 DEFAULT…………………………………………………………………………………………………………...12 14.1 Notice of Default………………………………………………………………………………………………….12 14.2 Opportunity to Cure Default…………………………………………………………………………………12 SECTION 15 CITY'S RIGHTS AND REMEDIES…………………………………………………………………………..13 15.1 Remedies Upon Default……………………………………………………………………………………….13 15.1.1 Delete Certain Services…………………………………………………………………………………….13 15.1.2 Perform and Withhold……………………………………………………………………………………..13 15.1.3 Suspend The Construction Contract…………………………………………………………………13 15.1.4 Terminate the Construction Contract for Default………………………………………………13 15.1.5 Invoke the Performance Bond………………………………………………………………………….13 15.1.6 Additional Provisions……………………………………………………………………………………….13 15.2 Delays by Sureties……………………………………………………………………………………………….13 15.3 Damages to City…………………………………………………………………………………………………..14 15.3.1 For Contractor's Default…………………………………………………………………………………..14 15.3.2 Compensation for Losses…………………………………………………………………………………14 15.4 Suspension by City……………………………………………………………………………………………….14 15.4.1 Suspension for Convenience……………………………………………………………………………..14 15.4.2 Suspension for Cause………………………………………………………………………………………..14 15.5 Termination Without Cause…………………………………………………………………………………14 15.5.1 Compensation………………………………………………………………………………………………….15 15.5.2 Subcontractors………………………………………………………………………………………………..15 15.6 Contractor’s Duties Upon Termination………………………………………………………………...15 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES……………………………………………………………16 16.1 Contractor’s Remedies……………………………………..………………………………..………………….16 Invitation for Bid (IFB) Package 4 Rev. April 27, 2016 CONSTRUCTION CONTRACT 16.1.1 For Work Stoppage……………………………………………………………………………………………16 16.1.2 For City's Non-Payment…………………………………………………………………………………….16 16.2 Damages to Contractor………………………………………………………………………………………..16 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….…16 17.1 Financial Management and City Access………………………………………………………………..16 17.2 Compliance with City Requests…………………………………………………………………………….17 SECTION 18 INDEPENDENT PARTIES……………………………………………………………………………………..17 18.1 Status of Parties……………………………………………………………………………………………………17 SECTION 19 NUISANCE……………………………………………………………………………………………………….…17 19.1 Nuisance Prohibited……………………………………………………………………………………………..17 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………….17 20.1 Payment of Fees…………………………………………………………………………………………………..17 SECTION 21 WAIVER…………………………………………………………………………………………………………….17 21.1 Waiver………………………………………………………………………………………………………………….17 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS……………………………….18 22.1 Governing Law…………………………………………………………………………………………………….18 22.2 Compliance with Laws…………………………………………………………………………………………18 22.2.1 Palo Alto Minimum Wage Ordinance…………….………………………………………………….18 SECTION 23 COMPLETE AGREEMENT……………………………………………………………………………………18 23.1 Integration………………………………………………………………………………………………………….18 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………..18 24.1 Survival of Provisions……………………………………………………………………………………………18 SECTION 25 PREVAILING WAGES………………………………………………………………………………………….18 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………….19 26.1 Appropriation………………………………………………………………………………………………………19 SECTION 27 AUTHORITY……………………………………………………………………………………………………….19 27.1 Representation of Parties…………………………………………………………………………………….19 SECTION 28 COUNTERPARTS………………………………………………………………………………………………..19 28.1 Multiple Counterparts………………………………………………………………………………………….19 SECTION 29 SEVERABILITY……………………………………………………………………………………………………19 29.1 Severability………………………………………………………………………………………………………….19 SECTION 30 STATUTORY AND REGULATORY REFERENCES …………………………………………………..19 Invitation for Bid (IFB) Package 5 Rev. April 27, 2016 CONSTRUCTION CONTRACT 30.1 Amendments of Laws…………………………………………………………………………………………..19 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….….19 31.1 Workers Compensation…………………………………………………………………………………….19 SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS………………………………..…20 32.1 General Notice to Contractor…………………………………………………………………………….20 32.2 Labor Code section 1771.1(a)…………………………………………………………………………….20 32.3 DIR Registration Required…………………………………………………………………………………20 32.4 Posting of Job Site Notices…………………………………………………………………………………20 32.5 Payroll Records…………………………………………………………………………………………………20 Invitation for Bid (IFB) Package 6 Rev. April 27, 2016 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on October 17, 2016 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and ANDERSON PACIFIC ENGINEERING CONSTRUCTION, INC.("Contractor"), is made with reference to the following: R E C I T A L S: A.City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B.Contractor is a Corporation duly organized and in good standing in the State of California, Contractor’s License Number 245215 and Department of Industrial Relations Registration Number 1000000061. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C.On August 16, 2016, City issued an Invitation for Bids (IFB) to contractors for the Old Pumping Plant (OPP) Rehabilitation Project (“Project”). In response to the IFB, Contractor submitted a Bid. D.City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the “Old Pumping Plant (OPP) Rehabilitation Project”,located at 2501 Embarcadero Way, Palo Alto, CA.94301 ("Project"). Invitation for Bid (IFB) Package 7 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1)Change Orders 2)Field Orders 3)Contract 4)Bidding Addenda 5)Special Provisions 6)General Conditions 7) Project Plans and Drawings 8) Technical Specifications 9)Instructions to Bidders 10)Invitation for Bids 11)Contractor's Bid/Non-Collusion Declaration 12) Reports listed in the Contract Documents 13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid) 14)Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid) 15) City of Palo Alto Traffic Control Requirements 16) City of Palo Alto Truck Route Map and Regulations 17)Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 18)Performance and Payment Bonds 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Invitation for Bid (IFB) Package 8 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 4 CONTRACTOR’S DUTY. 4.1 Contractor’s Duties Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. SECTION 5 PROJECT TEAM. 5.1 Contractor’s Co-operation. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than . Within three hundred sixty five calendar days (365) after the commencement date specified in City’s Notice to Proceed. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion. 6.4 Liquidated Damages. Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the amount of Five Hundred dollars ($500) per day, or as otherwise specified in the Special Provisions. Liquidated damages may also be separately assessed for failure to meet milestones specified elsewhere in the Contract Documents, regardless of impact on the time for achieving Substantial Completion. The assessment of liquidated damages is not a penalty but considered to be a reasonable Invitation for Bid (IFB) Package 9 Rev. April 27, 2016 CONSTRUCTION CONTRACT estimate of the amount of damages City will suffer by delay in completion of the Work. The City is entitled to setoff the amount of liquidated damages assessed against any payments otherwise due to Contractor, including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of Two Million Four Hundred Ninety Six thousand eight hundred seventy five Dollars ($2,496,875.00). [This amount includes the Base Bid and Additive Alternates.] 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents. SECTION 8 STANDARD OF CARE. 8.1 Standard of Care. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third-party claim relating to the Contract. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NON-DISCRIMINATION. 10.1 Municipal Code Requirement. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. 11.1 Evidence of coverage. Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Invitation for Bid (IFB) Package 11 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. 12.1 Assignment. City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City. 12.2 Assignment by Law. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i)On the date delivered if delivered personally; (ii)On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii)On the date sent if sent by facsimile transmission; (iv)On the date sent if delivered by electronic mail; or (v)On the date it is accepted or rejected if sent by certified mail. 13.2 Notice to Recipients. All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City:City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto,CA 94301 Attn: Padmakar M Chaobal, PE AND Invitation for Bid (IFB) Package 12 Rev. April 27, 2016 CONSTRUCTION CONTRACT City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be delivered personally or sent by certified mail. All notices, demands, requests or approvals from City to Contractor shall be addressed to: Anderson Pacific Engineering Construction, Inc. 1390 Norman Avenue Santa Clara, CA 95054 Attn: Peter Anderson 13.3 Change of Address. In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DEFAULT. 14.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety. 14.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. Invitation for Bid (IFB) Package 13 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 15 CITY'S RIGHTS AND REMEDIES. 15.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following: 15.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 15.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 15.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 15.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 15.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 15.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 15.2 Delays by Sureties. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally Invitation for Bid (IFB) Package 14 Rev. April 27, 2016 CONSTRUCTION CONTRACT liable for any additional cost incurred by City to complete the Work following termination. In addition, City shall have the right to use any materials, supplies, and equipment belonging to Contractor and located at the Worksite for the purposes of completing the remaining Work. 15.3 Damages to City. 15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 15.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City. 15.4 Suspension by City 15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents. 15.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor. Invitation for Bid (IFB) Package 15 Rev. April 27, 2016 CONSTRUCTION CONTRACT 15.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors: (i)Demobilizing and (ii)Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. .4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated. 15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 15.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i)Immediately discontinue the Work to the extent specified in the notice; (ii)Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii)Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv)Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v)Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, Invitation for Bid (IFB) Package 16 Rev. April 27, 2016 CONSTRUCTION CONTRACT submittals of as-built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date. SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. 16.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 16.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 16.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 16.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 17 ACCOUNTING RECORDS. 17.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. Invitation for Bid (IFB) Package 17 Rev. April 27, 2016 CONSTRUCTION CONTRACT 17.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 18 INDEPENDENT PARTIES. 18.1 Status of parties. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 19 NUISANCE. 19.1 Nuisance Prohibited. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 20 PERMITS AND LICENSES. 20.1 Payment of Fees. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 21 WAIVER. 21.1 Waiver. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. Invitation for Bid (IFB) Package 18 Rev. April 27, 2016 CONSTRUCTION CONTRACT SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS. 22.1 Governing Law. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place. 22.2 Compliance with Laws. Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract. 22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 23 COMPLETE AGREEMENT. 23.1 Integration. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 24 SURVIVAL OF CONTRACT. 24.1 Survival of Provisions. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 25 PREVAILING WAGES. This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the public works contract does not include a project of $25,000 or less, when the project is for construction work, or the contract does not include a project of $15,000 or less, when the project is for alteration, demolition, repair, or maintenance (collectively, ‘improvement’) work. Or Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq.and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”).Copies of these rates may be Invitation for Bid (IFB) Package 19 Rev. April 27, 2016 CONSTRUCTION CONTRACT obtained at the Purchasing Division’s office of the City of Palo Alto.Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum.Contractor shall comply with the provisions of all sections,including,but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813,of the Labor Code pertaining to prevailing wages. SECTION 26 NON-APPROPRIATION. 26.1 Appropriations. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 27 AUTHORITY. 27.1 Representation of Parties. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 28 COUNTERPARTS 28.1 Multiple Counterparts. This Agreement may be signed in multiple counterparts, which shall,when executed by all the parties, constitute a single binding agreement. SECTION 29 SEVERABILITY. 29.1 Severability. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. SECTION 30 STATUTORY AND REGULATORY REFERENCES. 30.1 Amendments to Laws. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise required by law. SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. 31.1 Workers Compensation. Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the Invitation for Bid (IFB) Package 20 Rev. April 27, 2016 CONSTRUCTION CONTRACT provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.” SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS. 32.1 General Notice to Contractor. City requires Contractor and its listed subcontractors to comply with the requirements of SB 854. 32.2 Labor Code section 1771.1(a) City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” 32.3 DIR Registration Required. City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. 32.4 Posting of Job Site Notices. City gives notice to Contractor and its listed subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to SB 854-compliance monitoring and enforcement by DIR. 32.5 Payroll Records. City requires Contractor and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: (i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its listed subcontractors, in connection with the Project. (ii)The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its listed subcontractors, respectively. (iii)At the request of City, acting by its project manager, Contractor and its listed subcontractors shall make the certified payroll records available for inspection Invitation for Bid (IFB) Package 21 Rev. April 27, 2016 CONSTRUCTION CONTRACT or furnished upon request to the project manager within ten (10) days of receipt of City’s request. City requests Contractor and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. (iv)If the certified payroll records are not produced to the project manager within the 10-day period, then Contractor and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s)then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v)Inform the project manager of the location of contractor’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO City Manager (Contract over $85k) Purchasing Manager (Contract over $25k) Contracts Administrator (Contract under $25k) APPROVED AS TO FORM: City Attorney or designee (Contract over $25k) Contracts Administrator (Checklist Approval) PWD APPROVED: Public Works Director ANDERSON PACIFIC ENGINEERING CONSTRUCTION, INC Officer 1 By: Name: Title: Officer 2 (Required for Corp. or LLC) By: Name: Title: Bidder Bid Amount Remarks Engineer's Estimate $2,496,000.00 Anderson Pacific Engineering Construction, Inc $2,496,875.00 Low Bidder Monterey Mechanical Co.$2,936,000.00 Valentine Corporation $2,988,369.00 Blocka Construction, Inc.$3,352,400.00 City of Palo Alto, Public Works Department - RWQCP CIP WQ-80021 (Wastewater Treatment Enterprise Fund) Attachment B Bid Summary for Old Pumping Plant (OPP) Rehabilitation Project (IFB 165685) City of Palo Alto (ID # 7180) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Resolution Amending Utilities Rules and Rates for LCFS Program Title: Adoption of a Resolution Amending Utilities Rate Schedule E-15 (Electric Service Connection Fees) and Utilities Rule and Regulation 2 (Definitions and Abbreviations) and 18 (Utility Service Connections and Facilities on Customer Premises) to Implement the Low Carbon Fuel Standard Program From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council adopt a resolution (Attachment A) adopting revisions to Utilities Rate Schedule E-15, Electric Service Connection Fees (Attachment B) and amending Utilities Rule and Regulation 2, Definitions and Abbreviations, (Attachment C) and 18, Utility Service Connection and Facilities on Customer’s Premises (Attachment D). Executive Summary Implementation of the City’s Low Carbon Fuel Standard (LCFS) program will require the amendment of one Utilities Rate Schedules and two Utilities Rules and Regulations. The recommended changes will be needed to provide the $3,000 discount on Electric Service Connection Fees (Rate Schedule E-15) funded by LCFS program revenues, as described in the proposed LCFS Program (see October 24, 2016 Staff Report 7301 or September 20, 2016 Finance Committee Staff Report 7128). Discussion Utilities Rules and Regulations set forth the conditions under which the City provides utility services from both the Utilities Department (electric, natural gas, water, wastewater, fiber optic) and the Public Works Department (refuse, storm drain). The Rules and Regulations and Utilities Rates are updated as needed to reflect current standards and business practices. City of Palo Alto Page 2 Rate Schedule E-15 (Electric Service Connection Fees) This rate schedule contains fees customers are charged when they seek electrical utility connection to their residential electric panel. These cost-based fees are a fixed amount if the residential electric panel is less than 200 Amps1. If the connection capacity sought is greater than 200 Amps, the connection fee is based on the estimated cost incurred to do the work and can vary widely2. The change proposed to rate schedule E-15 will provide a discount or credit for up to $3,000 per connection if the electric service upgrade is triggered by the installation of Electric Vehicle Supply Equipment (EVSE) to charge Electric Vehicles (EVs) at homes. No changes to any of the service or connection fees included in rate schedule E-15 is proposed. These proposed discounts on connection fees are not provided by electric ratepayer funds, but would be funded from the revenue from the sales of LCFS credits—funds that, by state regulation, must be used for the benefit of EV owners. Such a discount would reduce one aspect of financial uncertainty related to EV purchases and is intended to result in accelerated local adoption of EVs. Details of the proposed LCFS Program for Palo Alto are described in Staff Report 7128. The discount for reduced connection fees is one of the proposed uses of LCFS revenue; other uses include discounts on time-of-use rates to encourage charging EVs at the lowest cost hours and rebates for the installation of EVSE at multi-family dwellings, schools, and educational outreach to encourage EV adoption. Utilities Rule and Regulation 2 (Definitions and Abbreviations) Rule and Regulation 2 defines commonly used industry terms. The proposed modification includes terms related to the proposed amendment to Rate Schedule E-15. Utilities Rule and Regulation 18 (Utility Service Connection and Facilities on Customer’s Premises) This rule outlines general requirements governing utility service connections. The proposed modification describes the proposed residential customer discount for the installation of Electric Vehicle Supply Equipment. Resource Impact Approval of changes to Utilities Rules and Regulation 2 and 18 is to incorporate changes required to implement discounts on Utility Rate Schedule E-15. The discount of up to $3,000 will be funded by LCFS funds rather than customer funds. Hence, there is no net impact on utility revenues or on other retail electric customers. Policy Implications The recommended discount of up to $3,000 in connection fee will encourage local EV adoption. This is in line with City’s policy to encourage rapid de-carbonization of the mobility service sector. 1 Connection fees range from $840 to $1,930 depending on the type of connection. 2 Over the past year, these fees ranged from $400 to $9,000, with an average fee of $1,300. City of Palo Alto Page 3 Environmental Review The adoption of the proposed resolution is not a project requiring California Environmental Quality Act (CEQA) review, under California Public Resources Code Sec. 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. Attachments: Attachment A: Resolution Amending E-15 and Rules and Regulations 2 and 18 (PDF) Attachment B: Utilities Rate E-15 effective November 1, 2016 in redline-strikeout type (PDF) Attachment C: Rule 2-Definitions and Abbreviations-Effective November 1, 2016 in redline-strikeout type (PDF) Attachment D: Rule 18-Utility Service Connections and Facilities on Customers' Premises-Effective November 1, 2016 in redline-strikout type (PDF) Attachment A NOT YET APPROVED 160929 jb 6053839 1 Resolution No. Resolution of the Council of the City of Palo Alto Amending Utilities Rate Schedule E-15 (Electric Service Connections), Utilities Rule and Regulation 2 (Definitions and Abbreviations), and Utilities Rule and Regulation 18 (Utility Service Connections and Facilities on Customer Premises) R E C I T A L S A. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. B. On October 24, 2016, the City Council approved the City’s Low Carbon Fuel Standard program, including the use of revenues from the sale of Low Carbon Fuel Standard Credits. Implementation of this program requires that certain Utilities Rate Schedules, Rules and Regulations be amended to conform with program terms and conditions. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-15 (Electric Service Connections) is hereby amended as attached and incorporated. Utility Rate Schedule E-15, as amended, shall become effective November 1, 2016. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rule and Regulation 2 (Definitions and Abbreviations) is hereby amended as attached and incorporated. Utility Rule and Regulation 2, as amended, shall become effective November 1, 2016. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 18 (Utility Service Connections and Facilities on Customers’ Premises) is hereby amended as attached and incorporated. Utility Rule and Regulation 18, as amended, shall become effective November 1, 2016. SECTION 4. The City Council finds as follows: a. The change proposed to Utility Rate Schedule E-15 (Electric Service Connections) is to provide a credit of up to $3,000 per connection on electric service connection fees related to the installation of Electric Vehicle Supply Equipment needed to charge Electric Vehicles at single family and multi-family residences. b. No new or increased fees are proposed for Utility Rate Schedule E-15, and all existing fees within Rate Schedule E-15 remain unchanged by the adoption of this resolution. Revenue derived from the implementation of the existing, unchanged provisions of Utility Rate Schedule E-15 does not exceed the funds required to Attachment A NOT YET APPROVED 160929 jb 6053839 2 provide electric service and shall continue to be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. c. The fees and charges set forth in Utility Rate Schedule E-15 that have not been amended by this resolution remain charges imposed for a specific government service or product provided directly to the payer that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product. SECTION 5. The adoption of this resolution amending Utility Rate Schedule E-15 (Electric Service Connections) is not a project requiring California Environmental Quality Act (CEQA) review, under California Public Resources Code Sec. 21080(b)(8)21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager ____________________________ Director of Utilities ____________________________ Director of Administrative Services ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 6-2711-1-2016 Supersedes Sheet No. E-15-1 dated 7-1-126-27-16 Sheet No.E-15-1 A. APPLICABILITY: This schedule applies to all connections, expansions, and upgrades to the City's Electric Distribution System except those that serve street lighting or traffic signals. B. TERRITORY: All territory within the incorporated limits of the City and land owned or leased by the City. C. ADVANCE ENGINEERING FEES Advance Engineering Fees must be paid to start the engineering process and are non-refundable. The Advance Engineering Fees will be credited against the estimated job cost prior to the collection of construction fees. Advance Engineering Fees will not be collected for Service Connections that do not require a job estimate. D. ESTIMATED CONSTRUCTION AND SERVICE CONNECTION FEES All estimated on-site, off-site Distribution System, and Service Connection fees must be paid prior to the scheduling of any construction or connections to the City's Electrical Distribution System. E. SUMMARY OF FEES: The following schedule of common fees is for summary purposes. Sections C and F herein describe in detail the specific fees and conditions under which they are required. 1. UNDERGROUND SYSTEMS: Service Connections Which Do Not Require an Estimate Service Connection Fees (1) Residential ..........................................................................................................$850 (2) Residential: Rear Easement ............................................................................$1,900 (3) Multi-Family/Commercial/Industrial 200A or less, Single Phase ..................$1,160 (4) Multi-Family/Commercial/Industrial Greater Than 200A .................... By Estimate ATTACHMENT B ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 6-2711-1-2016 Supersedes Sheet No. E-15-2 dated 7-1-126-27-16 Sheet No.E-15-2 Service Connections That Require Estimates Advance Engineering Fees (1) Residential .........................................................................................................$800 (2) Multi-Family/Commercial/Industrial 200A or Less ........................................$1800 (3) Multi-Family/Commercial/Industrial Greater Than 200A .................... By Estimate On-Site Distribution System Fees (1) Residential .......................................................................................................... N/A (2) Multi-Family/Commercial/Industrial ……………… ............................ By Estimate Off-Site Distribution System Fees (1) Residential ............................................................................................. By Estimate (2) Multi-Family/Commercial/Industrial .................................................... By Estimate 2. OVERHEAD SYSTEMS: All Service Connection fees are based on a maximum 100-foot service length. If additional service length is required there may be additional fees. Service Connection Fees (1) Residential 200 A or Less .................................................................................$840 (2) Residential Mid-span 200A or Less ...............................................................$1,930 (3) Multi-Family/Commercial/Industrial 200A or Less .......................................$1,180 (4) All Others .............................................................................................. By Estimate 3. TEMPORARY SERVICES: Temporary service charges 200A maximum, 250 V maximum, 3-wire services 100' in length are shown in the following table. Fees for services requiring greater Voltage or capacity will be determined by estimate. Overhead Service Connection Fees (1) Residential .........................................................................................................$970 (2) Multi-Family/Commercial/Industrial 200A or Less ..........................................$970 (3) Multi-Family/Commercial/Industrial Greater Than 200A .................... By Estimate ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 6-2711-1-2016 Supersedes Sheet No. E-15-3 dated 7-1-126-27-16 Sheet No.E-15-3 Underground Service Connection Fees (1) Residential .........................................................................................................$970 (2) Multi-Family/Commercial/Industrial 200A or Less ..........................................$970 (3) Multi-Family/Commercial/Industrial Greater Than 200A .................... By Estimate F. FEES: 1. UNDERGROUND SYSTEMS Connection fees for new or replacement services to the underground electrical system consist of one or more of the following: Service Connection Fee, On-site Distribution System Fee and/or Off-site Distribution System Fee. (A) Service Connection Fees: Where the City connects any Customer to the electrical Distribution System, a Service Connection fee shall be charged. A one-time waiver of this fee is granted for services connected during the construction of an underground conversion district. (1) Residential - Single Family These fees apply to a development in which Electric Metering will be on a single- family basis. (a) For a 250 Volt maximum, 200 Amp or less service ........................................$850 (b) For any connection requiring greater capacity the fee shall be the estimate of the installation cost or $850 whichever is greater. (c) For a 250 Volt maximum, 200 Amp max service from a rear easement ......$1,900 (d) For any rear easement connection requiring greater capacity the fee shall be the estimate of the installation cost or $1,900, whichever is greater. (2) Commercial/Industrial These fees apply to commercial, industrial, multi-family residential services. (a) For a 250 Volt maximum, 200 Amp or less service .....................................$1,160 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 6-2711-1-2016 Supersedes Sheet No. E-15-4 dated 7-1-126-27-16 Sheet No.E-15-4 (b) For any connection requiring greater capacity, the fee shall be the estimate of the installation costs or $1,160, whichever is greater. (3) Where the City installs, or will install, Electric Meters in a new development (single family, multi-family, or commercial/industrial inclusive) consisting of 30 (thirty) units or more, the connection fee shall include the estimate of the cost to furnish all electric meters with AMR-ERTs. (B) On-site Distribution System Fees: Where the City installs or will install the underground conductors (primary or secondary), switches or transformers in and on facilities provided by the developer within the boundaries of a sub-division or other development, an on-site distribution system fee shall be charged. The fee shall be the estimate of the installation costs. (C) Off-Site Distribution System Fees: Where the City installs or will install an electric distribution system, system extension, or system reinforcement outside the boundaries of a sub-division or other development to be served, an off-site distribution system fee shall apply. The fee shall be the estimate of the installation costs. 2. OVERHEAD SYSTEMS Connection fees shall apply for all new services or for service upgrades exceeding 200 Amps. Overhead services that do not require the addition of poles to the system will be the standard service for residential areas not in Underground Districts. Underground Service will be required for all new industrial, commercial, and multi-family residential construction. No new construction that will require new poles to be added to the system shall be permitted except with the approval of the Electric Engineering Manager and only after a finding that an underground service is not feasible. Replacement of existing overhead services with new overhead services will be allowed so long as the new service does not exceed the size of the existing service, 200 Amperes for single-family residential or 400 Amps for all others, whichever is greater. Replacement of 250 Volt, 200 Amp maximum, 3-wire overhead residential service drops to existing structures will be done by the City at no cost to the customer providing such a ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 6-2711-1-2016 Supersedes Sheet No. E-15-5 dated 7-1-126-27-16 Sheet No.E-15-5 replacement does not require relocation of the connection at the pole or mid-span, does not require relocation at the house by more than 10 feet, and does not exceed 100 feet in length. (A) Overhead Service Connection Replacement Fees: (1) Residential – Single Family These fees apply to development in which electric metering will be on a single-family basis. (a) For a 250 Volt maximum, 200 Amp or less, 3 and 4 wire services, 100 feet in length maximum services ...........................................................$840 (b) For a 250 Volt maximum, 200 Amp or less, 3 and 4 wire services, 100 feet in length maximum services, mid-span connection .....................$1,930 (c) For all others the fee shall be the estimate of the installation cost or $840, whichever is greater. (2) Commercial/ Industrial These fees apply to commercial, industrial, multi-family residential services. (a) For a 250 Volt maximum, 200 Amp or less, 3 and 4 wire services, 100 feet in length maximum service ..........................................................$1,180 (b) For all others the fee shall be the estimate of the installation cost or $1,180, whichever is greater. (3) Replacement of Overhead Services of greater Voltage, other than described above when done for the customer benefit, or when required due to damage by customer, shall be the estimate of the installation costs. 3. TEMPORARY SERVICE A fee shall be charged to connect Temporary Service. The Customer shall furnish all equipment up to the designated point-of-service. This Point-of-Service will usually be the weatherhead for overhead temporary Services in overhead distribution areas or the secondary connection box for underground temporary Services in underground distribution system areas. The City will not supply overhead Temporary Services in underground service areas or underground temporary ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 6-2711-1-2016 Supersedes Sheet No. E-15-6 dated 7-1-126-27-16 Sheet No.E-15-6 services in overhead distribution system areas. The City will supply: overhead conductors and Meter for overhead Temporary Services; and Meter only for underground Temporary Services. The City will connect both overhead and underground Services to the City's electrical Distribution System. Any additional off-site facilities or work required shall be provided and removed by the Utility at the Customer's expense. (A) Overhead Temporary Service Fees: (1) For a 250 Volt, 200 Amp, 3 wire service, 100 feet in length maximum service ......................................................................$970 (2) The fees for a Temporary Service of greater length and capacity or Voltage shall be the estimate of the installation and removal costs or $970, whichever is greater. (B) Underground Temporary Service Fees: (1) For a 250 Volt, 200 Amp, 3-wire maximum service, If a service box is available at the property ...........................................................$970 (2) If a Service box is not available at the property, the Charges to provide a Service box will be at the Customer’s expense. (3) The fees for a Temporary Service of greater length and capacity or Voltage shall be the estimate of the installation and removal costs or $970, whichever is greater. 4. GENERATOR INTERCONNECTION A fee shall be charged for evaluation of Generator Interconnection Applications performed pursuant to Rule and Regulation 27. An Initial Review for Simplified Interconnection will be performed. No fee is charged for this initial review. If it is determined that a Supplemental Review will be required, an Advance Engineering Fee will be charged. The Advance Engineering Fee will be applied to any Detailed Study fees or Interconnection fees. (A) Advance Engineering Fees: ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 6-2711-1-2016 Supersedes Sheet No. E-15-7 dated 7-1-126-27-16 Sheet No.E-15-7 (1) Net Energy Metering projects (this does not include projects with a size less than or equal to 10 kW taking Service under the Net Energy Metering Successor Program) .....................................................................................................$0 (2) All Projects not covered under section 4(A.)(1), which are greater than 10 kW and less than 100 kW in capacity ..........................................................................$675 (3) All Projects not covered under section 4(A)(1), which are greater than or equal to 100 kW and less than 500 kW in capacity ............................................$4,500 (4) All Projects not covered under section 4(A)(1), which are 500 kW or greater in capacity ...........................................................................................................$8,500 (B) Detailed Study: (1) Net Energy Metering projects (this does not include projects with a size less than or equal to 10 kW taking Service under the Net Energy Metering Successor Program) .....................................................................................................$0 (2) All Projects not covered under section 4(B.)(1) shall be responsible for the actual costs of the Detailed Study, as determined by CPAU. (C) Interconnection Fees: (1) Net Energy Metering projects (this does not include projects taking Service under the Net Energy Metering Successor Program) ..................................................$0 (2) All projects less than or equal to 10 kW not under section 4(C.)(1) .......................$123 (3) All Projects not under section 4(C.)(1) or 4(C.)(2) shall be responsible for the actual costs of design and installation of interconnection equipment. 5. PALO ALTO CLEAN LOCAL ENERGY ACCESSIBLE NOW PROGRAM A monthly fee shall be charged for Meter maintenance and administrative services for Generators participating in the Palo Alto Clean Local Energy Accessible Now (CLEAN) Program. (1) Metering and administrative fee .........................................................................$34.73 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 6-2711-1-2016 Supersedes Sheet No. E-15-8 dated 7-1-126-27-16 Sheet No.E-15-8 G. CREDITS: 1. Electric Vehicle Supply Equipment (EVSE) Credit: For single family or multi-family Service Connections only, if the installation of Electric Vehicle Supply Equipment will require a capacity upgrade of Electric Distribution System Equipment, a connection fee credit may be available under the City’s Low Carbon Fuel Standard (“LCFS”) Program. The credit shall be equal to the estimated cost of the upgrade of electric distribution system equipment, and may not exceed $3,000 per connection. When Service Connection is triggered by EVSE installation, the connection fee shall be the greater of a) the estimate of the installation costs minus the LCFS credit, or b) the minimum fee shown in section F.1(A)(1) (for single family Service Connections) or F.1(A)(2) (for multi-family Service Connections). The availability of the credit is subject to LCFS Program rules and funding availability. H. NOTES: 1. These fees apply to all vacant land except where the fees are recorded as previously paid. 2. The Customer is responsible for the installation of all equipment from the facility to the designated Point-of-Service. For underground systems, this includes conduit and conductors. For overhead systems, because the Point-of-Service is the weatherhead or point of attachment to the facility, this includes the mast or riser and all conductors therein. 3. When the City replaces a Service, the Customer is obligated to accept a shutdown of Utility Service during regular working hours. The time of the shutdown shall be agreed upon as mutually acceptable. When, for the convenience of the Customer, the shutdown is during other than regular working hours, it shall be done entirely at the Customer's expense. The Customer shall pay the entire cost of the overtime labor, not the incremental cost. 4. The City can generally provide service availability from 30 to 45 days after all fees are paid except when long lead-time equipment or materials are required. Consult the City for estimated lead-times. 5. The City cannot be held liable for delays in Service connection caused by conditions beyond its control, including, but not limited to, delays in the arrival of equipment such as transformers, switches and cable. {End} DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 1 A. ABBREVIATIONS AMI - Advanced Metering Infrastructure AMR - Automated Meter Reading AER - Advance Engineering Request APGA - American Public Gas Association ARB - Air Resources Board (California) AWWA - American Water Works Association Btu - British Thermal Unit ccf - Hundred Cubic Feet (water) CEC - California Energy Commission CNG - Compressed Natural Gas CPAU - City of Palo Alto Utilities CPI - Consumer Price Index CPUC - California Public Utilities Commission DFLA - Dark Fiber (Optic) Licensing Agreement DOE - Department of Energy (Federal) DOT - Department of Transportation (Federal) DSM - Demand-side Management EVSE - Electric Vehicle Supply Equipment ERU - Equivalent Residential Unit FERC - Federal Energy Regulatory Commission kVar - Kilovar kVarh - Kilovar-hours kW - Kilowatt kWh - Kilowatt-hour LCFS - Low Carbon Fuel Standard MW - Megawatt MMBtu - One million Btu. NCPA - Northern California Power Agency NEC - National Electric Code, Latest Version NEM - Net Energy Metering NEMA - Net Energy Metering Aggregation NEMIA - Net Energy Metering Interconnection Agreement NRTL - Nationally Recognized Testing Laboratory PAMC - Palo Alto Municipal Code ATTACHMENT C DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 2 PSIG - Per square inch gauge RAP - Rate Assistance Program PPA - Power Purchase Agreement PST - Pacific Standard Time RTP - Real-time Pricing RWQCP - Regional Water Quality Control Plant TOU - Time of Use WAPA - Western Area Power Administration UUT - Utilities Users Tax B. GENERAL DEFINITIONS Account The identification number in CPAU’s billing system for Utility Services. Advance Engineering Fee A non-refundable fee paid at the start of an engineering review process. The Advance Engineering Fees will be credited against the estimated job cost prior to collection of construction fees. Agency Any local, county, state or federal governmental body or quasi-governmental body, including, without limitation, the CPUC, the FERC and any joint powers agency, but excluding the City and any board, commission or council of the City. Aggregation Customer A Customer with a Renewable Electrical Generation Facility wishing to install an eligible Renewable Electrical Generation Facility that is sized to offset separately metered electric loads on adjacent or contiguous properties that are solely owned, leased, or rented by them, and who have signed the Net Energy Metering Interconnection Agreement for NEM Aggregation. Affected System An electric system, other than CPAU’s distribution or transmission system, that may be affected by the proposed Interconnection. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 3 Affected System Operator The entity that operates an Affected System. Applicant An individual, corporation, partnership, Agency, or other legal entity or authorized agent of same, requesting CPAU to supply any or all of the following: 1. Electric Service 2. Water Service 3. Gas Service 4. Wastewater Collection 5. Refuse Service 6. Storm and Surface Water Drainage Service 7. Fiber Optics Service Or, an entity submitting an Application for Interconnection pursuant to Rule 27. Application (for Interconnection of Generating Facilities) An approved standard form (Load Sheet) submitted to CPAU for Interconnection of a Generating Facility. Beneficiary Account The Electric Service Meter(s) serviced by an Aggregation Customer’s Generating Facility, as listed on the Aggregation Customer’s NEMA-IA form. Bidweek Price Index The price reported in Natural Gas Intelligence “NGI’s Bidweek Survey”, California “PG&E Citygate” under the column “avg.” for the calendar month. Billing Period Also “service period” or “billing cycle”. The normal Billing Period for CPAU Customers is approximately 30 days, with variations occurring due to staff availability, holiday scheduling, field verification of Meter readings, or any other billing-related issues requiring additional investigation prior to issuance of the bill. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 4 British Thermal Unit Also “Btu”. The standard sub-unit of measurement comprising a Therm of natural Gas. One (1) Therm equals 100,000 Btu. Business Day Any day, except a Saturday, Sunday, or any day observed as a legal holiday by the City. Business Partner A Utilities customer having multiple service locations in the City of Palo Alto. Certification Test A test pursuant to Rule 27 that verifies conformance of certain equipment with approved performance standards in order to be classified as Certified Equipment. Certification Tests are performed by NRTLs. Certification; Certified; Certificate The documented results of a successful Certification Test. Certified Equipment Equipment that has passed all required Certification Tests. Charge Any assessment, cost, fee, surcharge or levy for Utility Service other than a Tax, including metered and unmetered Utility Service, capacity, connections, construction, penalties, and mandated or required Customer financial obligations for Service. Charter The Charter of the City of Palo Alto. City Attorney The individual designated as the City Attorney of the City under Section 2.08.120 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Attorney. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 5 City’s Collector The Person(s) authorized under Section 5.20.040 of the Palo Alto Municipal Code to provide collection, processing and disposal of Refuse including Solid Waste, Compostable Materials and Recyclable Materials pursuant to one or more written contracts with the City. City Manager The individual designated as the City Manager of the City under Section 2.08.140 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Manager. City of Palo Alto, or City The government of the City of Palo Alto, a chartered City and a municipal corporation duly organized and validly existing under the Laws of the State of California, with a principal place of business located at 250 Hamilton Avenue, Palo Alto, County of Santa Clara. For the purposes of these Rules and Regulations, the term “City” may include services provided by both the City of Palo Alto Utilities Department and the City of Palo Alto Public Works Department. City of Palo Alto Public Works Department (Public Works) The City Department responsible for providing Refuse Service, Wastewater Treatment and Storm and Surface Water Drainage Services. Other Utility Services such as Water, Gas, Electric, Wastewater Collection, and Fiber Optics are provided by the City of Palo Alto Utilities Department. City of Palo Alto Utilities Department (CPAU) The City Department responsible for providing Water, Gas, Electric, Wastewater Collection and Fiber Optic Utility Services. Other Utility Services such as Refuse Service, Wastewater Treatment and Storm and Surface Water Drainage are provided by the City of Palo Alto Public Works Department. Code The words "the Code" or "this Code" shall mean the Palo Alto Municipal Code. Commercial Service Commercial Utility Service is provided to businesses, non-profit organizations, public institutions, and industrial Customers. The term also applies to Utility Services through Master Meters serving multi- family Residential dwellings and common areas of multi-family facilities. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 6 Compostable Materials Organic materials designated by the City as acceptable for collection and processing, including, without limitation, yard trimmings, food scraps, soiled paper and compostable plastics, but excluding animal manure, sewage sludge, and human biological infectious wastes. Container Any bin, box, cart, compactor, drop box, roll-off box, or receptacle used for storage of Solid Waste, Recyclable Materials, Compostable Materials or other materials designated by the City to be collected by the City’s Collector. Cubic Foot of Gas (cf) The quantity of Gas that, at a temperature of sixty (60) degrees Fahrenheit and a pressure of 14.73 pounds per square inch absolute, occupies one cubic foot. Curtailment The act of reducing or interrupting the delivery of natural Gas. Customer The Person, corporation, Agency, or entity that receives or is entitled to receive Utility Service(s) from the City of Palo Alto, or in whose name Service is rendered for a particular Account as evidenced by the signature on the Application, contract, or agreement for Service. In the absence of a signed instrument, a Customer shall be identified by the receipt of any payment of bills regularly issued in the name of the Person, corporation, or Agency regardless of the identity of the actual user of the Utility Service(s). Customer-Generator: An “eligible customer-generator,” as that term is defined by the California Public Utilities Code section 2827, as the same may be amended from time to time. Dark Fiber A Fiber Optic cable provided to end-users or resellers by CPAU without any of the light transmitters, receivers, or electronics required for telecommunications over the Fiber. Infrastructure for Fiber Optic activation is provided by the reseller or end-user. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 7 Dark Fiber Infrastructure Components of the CPAU Fiber Optic Distribution System required to provide Service to Customers (licensees), that are attached, owned, controlled or used by the City, located overhead or underground within the Public Right-of-Way, the Public Utility Easements and Leased Service Properties. Dark Fiber (Optic) Licensing Agreement The mandatory contractual agreement between the City and the customer specifying the terms, conditions and pricing to access the City of Palo Alto’s Dark Fiber (Optic) Ring. Dedicated Distribution Transformer A Distribution Transformer that is dedicated to serving a single premise. Demand The highest rate of delivery of Electric energy, measured in Kilowatts (kW) or kilovolt amperes (kVA) occurring instantaneously or registered over a fixed time period (normally fifteen minutes unless otherwise specified within a monthly billing cycle). Demand Charge An electrical Charge or rate that is applied to a metered Demand reading expressed in Kilowatts to compute a Demand Charge component of a Customer’s Electric bill. Demarcation Point The Demarcation Point for a project shall be the Customer side of the panel onto which the CPAU Fiber terminates within the Customer Premises, unless otherwise specified in the Proposal for Dark Fiber Services. Deposit A fixed amount (residential customers), or an estimated amount based upon usage (commercial customers, except Fiber Optic), to be paid to the Utilities Department upon submission of an Application for Service. Deposits from customers with good payment history will be retained for 36 months and returned to the customer. Customers with inconsistent payment history will have deposits retained or re- submitted until Utility Service on the account is permanently discontinued. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 8 Detailed Study An engineering study consisting of an Interconnection System Impact Study and Interconnection Facilities Study for the purpose of identifying Interconnection Facilities, Distribution Upgrades and Reliability Network Upgrades. Disconnect Notice A written notice from CPAU to the customer indicating the date that Utility Service will be terminated or discontinued unless payment is tendered to mitigate an outstanding balance or until a customer’s operating condition is brought into compliance with CPAU regulations and requirements. Discontinuance of Service The closing of a Utilities account. Considered to be a permanent cessation of service unlike temporary termination of service for non-payment. Distribution Services Includes, but is not limited to, Utility Service provided by the Distribution System and other Services such as billing, meter reading, administration, marketing, and Customer Services. Does not include Services directly related to the Interconnection of a Generating Facility as per Rule 27. Distribution System The infrastructure owned and operated by CPAU which is capable of transmitting electrical power, other than Interconnection Facilities, or transporting Water, Wastewater, or Gas within the City of Palo Alto. The Electric Distribution System transmits power from the City’s Interconnection with PG&E to CPAU’s Meter located on the Customer’s Premises. The Gas Distribution System transports Gas from PG&E receiving stations to CPAU’s Meter located on the Customer Premises. The Water Distribution System transports Water from the San Francisco Water Department receiving stations and CPAU wells to the meter located on the Customer Premises. The Wastewater Collection System transports sewage from the Customer’s Premises to the Water Quality Control Plant. Effluent Treated or untreated Wastewater flowing out of a Wastewater treatment facility, sewer, or industrial outfall. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 9 Electric, Electric Service Utility Service provided to residents and business owners in the City of Palo Alto consisting of generation, transmission, and distribution of electrical power for retail use. Electric Service is provided by the City of Palo Alto Utilities Department. Electric Vehicle Supply Equipment (EVSE) The conductors, including the ungrounded, grounded, and equipment grounding conductors and the electric vehicle connectors, attachment plugs, and all other fittings, devices, power outlets, or apparatus installed specifically for the purpose of transferring energy between the premises wiring and the electric vehicle. EVSE is as defined in the California Electrical Code, California Code of Regulations (CCR), Title 24, Part 3, Chapter 6, Article 625 (Electric Vehicle Charging System), as amended. Enterprise Funds, Enterprise Services A budgetary identification for individual Utilities services. Each individual Utility (electric, natural gas, water, wastewater, storm drain, fiber optic, refuse) has its own operating and capital budgets, staffing, contracts, financial obligations, cash reserves, etc. combined into specific Enterprise Funds. Emergency An actual or imminent condition or situation, which jeopardizes CPAU’s Distribution System Integrity. Emergency Service Electric Service supplied to, or made available to, Load devices which are operated only in Emergency situations or in testing for same. Energy Services Energy commodity and any applicable ancillary Services used to generate and transport such commodity from its origin to the City’s Point of Receipt. May also mean the sale of value added Services associated or related to the Provision and/or usage of energy commodity. Equivalent Residential Unit (ERU) This is the basic unit for computing storm and surface water drainage fees. All single-family Residential properties are billed the number of ERU’s specified in the table contained in Utility Rate Schedule D-1, according to parcel size. All other properties have ERU's computed to the nearest 1/10 ERU using this formula: No. Of ERU = Impervious Area (sq. ft.) / 2,500 sq. ft. Final Bill DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 10 The last bill that is issued upon permanent discontinuance of service. This bill will combine ending financial debits and credits, close the account, and terminate all further customer and Utility financial obligations. Fiber Optic, Fiber Optic Service A solid core of optical transmission material. Fiber Optic Service that is provided by the City of Palo Alto Utilities Department is referred to as Dark Fiber. Fiber Optic Backbone The high-density portion of the Dark Fiber Infrastructure installed and owned by the City. Force Majeure The occurrence of any event that has, had or may have an adverse effect on the design, construction, installation, management, operation, testing, use or enjoyment of the City’s Utility Services, which is beyond the reasonable control of the parties and which event includes, but is not limited to, an Act of God, an irresistible superhuman cause, an act of a superior governmental authority, an act of a public enemy, a labor dispute or strike or a boycott which could not be reasonably contemplated by the City or Customer affected thereby, a defect in manufactured equipment (including, but not limited to, the Dark Fibers), fire, floods, earthquakes, or any other similar cause. Function Some combination of hardware and software designed to provide specific features or capabilities. Its use, as in Protective Function, is intended to encompass a range of implementations from a single- purpose device to a section of software and specific pieces of hardware within a larger piece of equipment to a collection of devices and software. Gas Any combustible gas or vapor, or combustible mixture of gaseous constituents used to produce heat by burning. It shall include, but not be limited to, natural gas, gas manufactured from coal or oil, gas obtained from biomass or from landfill, or a mixture of any or all of the above. Gas, Gas Service Utility Service provided to residents and business owners in the City of Palo Alto consisting of procurement, transmission, and distribution of Gas for retail use. Gas Service is provided by the City of Palo Alto Utilities Department. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 11 Generating Facility All Generators, electrical wires, equipment, and other facilities owned or provided by Producer for the purpose of producing Electric power. This includes a solar or wind turbine Renewable Electrical Generation Facility that is the subject of a Net Energy Metering and Interconnection Agreement and Rule and Regulation 29. Generator A device converting mechanical, chemical or solar energy into electrical energy, including all of its protective and control Functions and structural appurtenances. One or more Generators comprise a Generating Facility. Gross Nameplate Rating; Gross Nameplate Capacity The total gross generating capacity of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s). Initial Review The review by CPAU, following receipt of an Application, to determine the following: (a) whether the Generating Facility qualifies for Simplified Interconnection; or (b) if the Generating Facility can be made to qualify for Interconnection with a Supplemental Review determining any additional requirements. Inspector The authorized Inspector, agent, or representative of CPAU. Interconnection; Interconnected The physical connection of a Generating Facility in accordance with the requirements of the City’s Utilities Rules and Regulations so that Parallel Operation with CPAU’s Distribution System can occur (has occurred). Interconnection Agreement An agreement between CPAU and the Producer providing for the Interconnection of a Generating Facility that gives certain rights and obligations to effect or end Interconnection. For the purposes of the City’s Utilities Rules and Regulations, the Net Energy Metering and Interconnection Agreement (for NEM and NEM Aggregation Customers), and the Power Purchase Agreements authorized by the City Council may be considered as Interconnection Agreements for purposes of defining such term. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 12 Interconnection Facilities The electrical wires, switches and related equipment that are required in addition to the facilities required to provide Electric Distribution Service to a Customer to allow Interconnection. Interconnection Facilities may be located on either side of the Point of Common Coupling as appropriate to their purpose and design. Interconnection Facilities may be integral to a Generating Facility or provided separately. Interconnection Facilities Study A study conducted by CPAU for an Interconnection Customer under the Detailed Study process to determine a list of facilities (including CPAU’s Interconnection Facilities, Distribution Upgrades, and Reliability Network Upgrades as identified in the Interconnection System Impact Study), the cost of those facilities, and the time required to interconnect the Generating Facility with CPAU’s distribution or transmission System. Interconnection Request An Applicant’s request to interconnect a new Generating Facility, or to increase the capacity of, or make a Material Modification to the operating characteristics of, an existing Generating Facility that is interconnected with CPAU’s Distribution or Transmission System. Interconnection Study A study to establish the requirements for Interconnection of a Generating Facility with CPAU’s Distribution System. Interconnection System Impact Study An engineering study conducted by CPAU for an Interconnection Customer under the Independent Study Process that evaluates the impact of the proposed interconnection on the safety and reliability of CPAU’s distribution and/or transmission system and, if applicable, an Affected System. Internet Exchange Any Internet data center for telecommunications equipment and computer equipment for the purposes of enabling traffic exchange and providing commercial-grade data center services. Island; Islanding A condition on CPAU’s Electric Distribution System in which one or more Generating Facilities deliver power to Customers using a portion of CPAU’s Distribution System that is electrically isolated from the remainder of CPAU’s Distribution System. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 13 Junction A location on the Dark Fiber Infrastructure where equipment is installed for the purpose of connecting communication cables. Junction Site The area within the Transmission Pathway at which a Junction is located. Kilovar (kVar) A unit of reactive power equal to 1,000 reactive volt-amperes. Kilovar-hours (kVarh) The amount of reactive flow in one hour, at a constant rate of Kilovar. Kilowatt (kW) A unit of power equal to 1,000 watts. Kilowatt-hour (kWh) The amount of energy delivered in one hour, when delivery is at a constant rate of one Kilowatt; a standard unit of billing for electrical energy. Law Any administrative or judicial act, decision, bill, Certificate, Charter, Code, constitution, opinion, order, ordinance, policy, procedure, Rate, Regulation, resolution, Rule, Schedule, specification, statute, tariff, or other requirement of any district, local, municipal, county, joint powers, state, or federal Agency, or any other Agency having joint or several jurisdiction over the City of Palo Alto or City of Palo Alto Utilities or Public Works Customers, including, without limitation, any regulation or order of an official or quasi-official entity or body. Licensed Fibers One or more fibers comprising a part of the Dark Fiber Infrastructure that are dedicated to the exclusive use of the Customer under the Provisions of the Dark Fiber License Agreement, Proposal to Dark Fiber Services Agreement and the Utilities Rules and Regulations. Licensed Fibers Route A defined path of Licensed Fibers that is identified by specific End Points. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 14 Load(s) The Electric power Demand (kW) of the Customer at its Service Address within a measured period of time, normally 15 minutes, or the quantity of Gas required by a Customer at its Service Address, measured in MMBtu per Day. Low Carbon Fuel Standard (LCFS) A program developed and administered by the California Air Resources Board to lower the carbon intensity of transportation fuel under the Global Warming Solutions Act of 2006 (AB 32). Through the LCFS program, the City, through its Electric Utility, receives credits for providing electricity to charge electric vehicles. These credits are sold and the funds are utilized to benefit current or future electric vehicle customers, educate the public on the benefits of electric vehicle transportation, and accelerate the adoption of electric vehicles. Lower Sewer Lateral The portion of the wastewater pipe from the Wastewater Main to the City Sewer Cleanout or to the property line if there is no City Sewer Cleanout. Master-metering Where CPAU installs one Service and Meter to supply more than one residence, apartment dwelling unit, mobile home space, store, or office. Maximum Generation For a customer with a non-utility generator located on the customer’s side of the Point of Common Coupling, the Maximum Generation for that non-utility generator during any billing period is the maximum average generation in kilowatts taken during any 15-minute interval in that billing period provided that in case the generator output is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. Meter The instrument owned and maintained by CPAU that is used for measuring either the Electricity, Gas or Water delivered to the Customer. Metering The measurement of electrical power flow in kW and/or energy in kWh, and, if necessary, reactive power in kVar at a point, and its display to CPAU as required by Rule 27. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 15 Metering Equipment All equipment, hardware, software including Meter cabinets, conduit, etc., that are necessary for Metering. Meter Read The recording of usage data from Metering Equipment. Minimum Charge The least amount for which Service will be rendered in accordance with the Rate Schedule. Momentary Parallel Operation The Interconnection of a Generating Facility to the Distribution System for one second (60 cycles) or less. Nationally Recognized Testing Laboratory (NRTL) A laboratory accredited to perform the Certification Testing requirements under Rule 27. Net Electricity Consumer A Customer-Generator whose Generating Facility produces less electricity than is supplied by CPAU during a particular period, as such definition may otherwise be modified or supplemented by any definition in California Public Utilities Code section 2827(h)(2), as the same may be amended from time to time. Net Energy Metering Net Energy Metering means measuring the difference between the electricity supplied through CPAU’s Electric utility Distribution System and the electricity generated by the customer-generator’s facility and delivered to CPAU’s Electric utility Distribution System over a specified twelve-month period. Net Energy Metering Cap (NEM Cap) Five (5) percent of the historical system peak of 190 MW from 2006, or 9.5 MW, using the CEC’s Alternating Current (AC) capacity rating. Where the CEC AC rating is not available, CPAU will multiply the inverter AC nameplate rating by 0.86. Net Generation Metering DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 16 Metering of the net electrical power of energy output in kW or energy in kWh, from a given Generating Facility. This may also be the measurement of the difference between the total electrical energy produced by a Generator and the electrical energy consumed by the auxiliary equipment necessary to operate the Generator. Net Nameplate Rating The Gross Nameplate Rating minus the consumption of electrical power of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s). Net Surplus Customer-Generator A Customer-Generator who’s Generating Facility produces more electricity than is supplied by CPAU, during a particular period, as such definition may otherwise be modified or supplemented by any definition in California Public Utilities Code section 2827(h)(3), as the same may be amended from time to time. Net Surplus Electricity Compensation A per kilowatthour rate offered by CPAU to the Net Surplus Customer-Generators (excluding Aggregation Customers) for net surplus electricity, as such definition may otherwise be modified or supplemented by any definition in California Public Utilities Code section 2827(b)(8), as the same may be amended from time to time. Non-Islanding Designed to detect and disconnect from an Unintended Island with matched Load and generation. Reliance solely on under/over voltage and frequency trip is not considered sufficient to qualify as Non- Islanding. Occupied Domestic Dwelling Any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities, which is occupied by a Person or Persons. Parallel Operation The simultaneous operation of a Generator with power delivered or received by CPAU while Interconnected. For the purpose of this Rule, Parallel Operation includes only those Generating Facilities that are Interconnected with CPAU’s Distribution System for more than 60 cycles (one second). DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 17 Performance Test, Performance Tested After the completion of any Fiber Interconnection work, the City will conduct a Performance Test of each Fiber constituting a part of the proposed leased fibers to determine its compliance with the Performance Specifications. Performance Specifications These specifications will include, but not be limited to, criteria relating to end-to-end optical time domain reflectometer data plots that identify the light optical transmission losses in each direction along the leased fibers whenever the testing is possible, measured in decibels at a wavelength of 1310 or 1550 nanometers for singlemode Fiber, as a Function of distance, measured in kilometers. Person Any individual, for profit corporation, nonprofit corporation, limited liability company, partnership, limited liability partnership, joint venture, business, family or testamentary trust, sole proprietorship, or other form of business association. PG&E Citygate The PG&E Citygate is the point at which PG&E’s backbone transmission system connects to PG&E’s local transmission system. Point of Common Coupling (PCC) The transfer point for electricity between the electrical conductors of CPAU and the electrical conductors of the Producer. Point of Common Coupling Metering Metering located at the Point of Common Coupling. This is the same Metering as Net Generation Metering for Generating Facilities with no host load. Point of Delivery (POD) Unless otherwise specified, the following definitions apply: For Electric, that location where the Service lateral conductors connect to the Customer’s Service entrance equipment; for overhead Services, the POD is at the weather-head connection; for under-ground Services, the POD is located at the terminals ahead of or at the Meter; for multiple Meter arrangements with connections in a gutter, the POD is at the Meter terminals (supply-side); for multiple Meter arrangements in a switchboard, the POD is typically at the connectors in the utility entrance section; for Natural Gas, the POD is the point(s) on the Distribution System where the City delivers natural Gas that it has transported to the Customer. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 18 Point of Interconnection The electrical transfer point between a Generating Facility and the Distribution System. This may or may not be coincident with the Point of Common Coupling. Point of Service (POS) Where CPAU connects the Electric Service lateral to its Distribution System. For Fiber Optics Service, this is where CPAU connects the Fiber Service to the backbone. This point is usually a box located in or near the street or sidewalk and can be in the Public Right-of-Way. This point is at a mutually agreed upon location established at the time of installation. Pole Line Overhead wires and overhead structures, including poles, towers, support wires, conductors, guys, studs, platforms, cross arms braces, transformers, insulators, cutouts, switches, communication circuits, appliances attachments, and appurtenances, located above ground and used or useful in supplying Electric, communication, or similar or associated Service. Power Factor The percent of total power delivery (kVA) which does useful work. For billing purposes, average Power Factor is calculated from a trigonometric function of the ratio of reactive kilovolt-ampere-hours to the Kilowatt-hours consumed during the billing month. Power Factor is a ratio that reflects the reactive power used by a Customer. CPAU maintains an overall system Power Factor above 95% to reduce distribution system losses caused by low Power Factor. Power Factor Adjustment CPAU must install additional equipment to correct for Customers that maintain a low Power Factor, and may make a Power Factor Adjustment to a Customer’s bill to account for those costs and the additional energy costs and losses incurred by CPAU due to the Customer’s low Power Factor. Premises All structures, apparatus, or portion thereof occupied or operated by an individual(s), a family, or a business enterprise, and situated on an integral parcel of land undivided by a public street, highway, or railway. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 19 Primary Service CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level equal to or greater than 1000 volts. Producer The entity that executes an Interconnection Agreement with CPAU. The Producer may or may not own or operate the Generating Facility, but is responsible for the rights and obligations related to the Interconnection Agreement. Proposal for Dark Fiber Services A project-specific Service agreement that acts as a supplemental document for the Dark Fiber License Agreement. This Service agreement shall include the proposed Interconnection fees, applicable Fiber licensing fees, term of the Service, and summary of licensed Fiber elements. Protective Function(s) The equipment, hardware and/or software in a Generating Facility (whether discrete or integrated with other Functions) whose purpose is to protect against Unsafe Operating Conditions. Provision Any agreement, circumstance, clause, condition, covenant, fact, objective, qualification, restriction, recital, reservation, representation, term, warranty, or other stipulation in a contract or in Law that defines or otherwise controls, establishes, or limits the performance required or permitted by any party. Prudent Utility Practices The methods, protocols, and procedures that are currently used or employed by utilities to design, engineer, select, construct, operate and maintain facilities in a dependable, reliable, safe, efficient and economic manner. Public Right-of-Way The areas owned, occupied or used by the City for the purposes of furnishing retail and/or wholesale Electricity, Gas, Water, Wastewater, Storm and Surface Water Drainage, Refuse Service or communications commodity and/or distribution Service, and the means of public transportation, to the general public, including but not limited to, the public alleys, avenues, boulevards, courts, curbs, gutters, lanes, places, roads, sidewalks, sidewalk planter areas, streets, and ways. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 20 Public Utility Easements The areas occupied or used by the City for the purpose of providing Utility Service to the general public, and all related Services offered by the City’s Utilities Department and/or Public Works Department, the rights of which were acquired by easements appurtenant or in gross, or are other interests or estates in real property, or are the highest use permitted to be granted by the nature of the City’s interest in and to the affected real property. This term incorporates all public Service easements for Utility Services that have been recorded by the City with the Recorder of the County of Santa Clara, California. Public Works Department See City of Palo Alto Public Works Department. Rate Schedule One or more Council-adopted documents setting forth the Charges and conditions for a particular class or type of Utility Service. A Rate Schedule includes wording such as Schedule number, title, class of Service, applicability, territory, rates, conditions, and references to Rules. Recyclable Materials Materials designated by the City as suitable for collection and transport to a material recovery facility for processing into a recycled content product, including, but not limited to newspaper, paper, cans, corrugated cardboard, glass and certain types of plastic, and metals. Refuse Service Refuse Service includes weekly collection, processing and disposal of Solid Waste, weekly collection and processing of Recyclable Materials, weekly collection and processing of Compostable Materials and construction and demolition waste, street sweeping service, the household hazardous waste program, and the annual Clean Up Day. Reliability Network Upgrades The transmission facilities at or beyond the point where CPAU’s distribution system interconnects to the CAISO Controlled Grid, necessary to interconnect one or more Generating Facility(ies) safely and reliably to the CAISO Controlled Grid, as defined in the CAISO Tariff. Renewable Electrical Generation Facility A Generation Facility eligible for NEM under California Public Utilities Code section 2827 et seq. as the same may be amended from time to time. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 21 Reserved Capacity For a customer with one or more non-utility generators located on the customer’s side of the Point of Common Coupling, the Reserved Capacity for each billing period is the lesser of 1) the sum of the Maximum Generation for that period for all non-utility generation sources; or 2) the maximum average customer demand in kilowatts taken during any 15-minute interval in the billing period provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. Residential Service Utility Service provided to separately metered single family or multi-family, domestic dwelling. Rules and Regulations See Utilities Rules and Regulations Scheduling Coordinator An entity providing the coordination of power schedules and nominations to effect transportation and distribution of Gas, Electric power and energy. Secondary Service CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level less than 1000 volts. Service(s) Utility Services offered by the City of Palo Alto include Electric, Fiber Optics, Gas, Water, Wastewater Collection services provided by the Utilities Department (CPAU); and Refuse Service, Wastewater Treatment, and Storm and Surface Water Drainage Services provided by the Public Works Department. Service Address The official physical address of the building or facility assigned by CPAU’s Planning Department, at which Customer receives Utility Services. Service Charge A fixed monthly Charge applicable on certain Rate Schedules that does not vary with consumption. The Charge is intended to recover a portion of certain fixed costs. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 22 Service Drop The overhead Electric Service conductors from the last pole or other aerial support to and including the splices, if any, connecting to the service entrance conductors at the building or other structure. Or, in the case of Fiber Optic Drops, the overhead Fiber Optics cable from the last pole or other aerial support to the building or other structure to and including the termination box. Services or Service Lines Facilities of CPAU, excluding transformers and Meters, between CPAU’s infrastructure and the Point of Delivery to the Customer. Service Territory The geographic boundaries within the City of Palo Alto limits served by the physical Distribution System of the CPAU. Sewer Cleanout A point of access where the sewer lateral can be serviced. Short Circuit (Current) Contribution Ratio (SCCR) The ratio of the Generating Facility’s short circuit contribution to the short circuit contribution provided through CPAU’s Distribution System for a three-phase fault at the high voltage side of the distribution transformer connecting the Generating Facility to CPAU’s system. Simplified Interconnection An Interconnection conforming to the minimum requirements as determined under Rule 27. Single Line Diagram; Single Line Drawing A schematic drawing, showing the major Electric switchgear, Protective Function devices, wires, Generators, transformers and other devices, providing sufficient detail to communicate to a qualified engineer the essential design and safety of the system being considered. Smart Inverter A Generating Facility’s inverter that performs functions that, when activated, can autonomously contribute to grid support during excursions from normal operating voltage and frequency system conditions by providing: dynamic reactive/real power support, voltage and frequency ride-through, ramp rate controls, communication systems with ability to accept external commands and other functions. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 23 Solid Waste Solid Waste means solid and semisolid wastes, generated in or upon, related to the occupancy of, remaining in or emanating from residential premises or commercial premises, including garbage, trash, rubbish, ashes, industrial wastes, manure, animal carcasses, solid or semisolid wastes, and other solid and semisolid wastes. Solid Waste shall not include liquid wastes or sewage, abandoned vehicles, hazardous waste, recyclable materials or compostable materials. Special Facilities Special Facilities are facilities requested by an Applicant in addition to or in substitution for standard facilities which CPAU would normally provide. Splice A point where two separate sections of Fiber are physically connected. Standby Service Back-up Energy Services provided by CPAU. State Energy Surcharge The California State Board of Equalization administers the Energy Resources Surcharge Law, as authorized under the Revenue and Taxation Code (section 40016). The surcharge is imposed upon the consumption in California of electrical energy purchased from an electric utility on and after January 1, 1975. Every electric utility in California making energy sales to consumers must collect and remit to the state the amount of surcharge applicable to its consumers. Information on the surcharge and current surcharge rate can be found at the California Board of Equalization’s web site. Storm and Surface Water Drainage Utility Service provided to residents and business owners in the City of Palo Alto. Storm and Surface Water Drainage Service is provided by the City of Palo Alto Public Works Department. Submetering Utility submetering is the implementation of a system that allows a landlord, property management firm, condominium association, homeowners association, or other multi-tenant property to bill master- metered tenants for utility usage. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 24 Supplemental Review A process wherein CPAU further reviews an Application that fails one or more of the Initial Review Process screens. The Supplemental Review may result in one of the following: (a) approval of Interconnection; (b) approval of Interconnection with additional requirements; or (c) cost and schedule for an Interconnection Study. System Integrity The condition under which a Distribution System is deemed safe and can reliably perform its intended Functions in accordance with the safety and reliability rules of CPAU. Tax Any assessment, Charge, imposition, license, or levy (including any Utility Users Tax) and imposed by any Agency, including the City. Telemetering The electrical or electronic transmittal of Metering data in real-time to CPAU. Temporary Service Service requested for limited period of time or of indeterminate duration such as, but not limited to, Service to provide power for construction, seasonal sales lots (Christmas trees), carnivals, rock crushers or paving plants. Temporary Service does not include Emergency, breakdown, or Standby Service. Termination of Service When one or more Utilities services are interrupted for non-payment. Assumed to be a temporary situation unless service is permanently discontinued and the Account is closed. Therm A Therm is a unit of heat energy equal to 100,000 British Thermal Units (Btu). It is approximately the energy equivalent of burning 100 cubic feet (often referred to as 1 ccf) of natural Gas. Since Meters measure volume and not energy content, a Therm factor is used to convert the volume of Gas used to its heat equivalent, and thus calculate the actual energy use. The Therm factor is usually in the units therms/ccf. It will vary with the mix of hydrocarbons in the natural Gas. Natural Gas with a higher than average concentration of ethane, propane or butane will have a higher Therm factor. Impurities, such as carbon dioxide or nitrogen lower the Therm factor. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 25 Total Rated Generating Capacity Total Rated Generating Capacity will be calculated as the sum of the rated generating capacity of all installed Renewable Electrical Generation Facilities participating in NEM or NEM Aggregation. The rated generating capacity for each individual Renewable Electrical Generation Facility participating in NEM or NEM Aggregation will be calculated as follows: 1. For Solar: For each Renewable Electrical Generation Facility that is a solar photovoltaic generating facility, CPAU will use the CEC’s Alternating Current (AC) rating; or where the CEC AC rating is not available, CPAU will multiply the inverter AC nameplate rating by 0.86; and 2. For Non-Solar: For all other Renewable Electrical Generation Facilities, CPAU will use the AC nameplate rating of the generating facility. Transfer Trip A Protective Function that trips a Generating Facility remotely by means of an automated communications link controlled by CPAU. Transmission Pathway Those areas of the Public Right-of-Way, the Public Utility Easements and the Leased Service Properties in which the Dark Fiber Infrastructure is located. Transmission System Transmission facilities owned by CPAU that have been placed under the CAISO’s operation control and are part of the CAISO Controlled Grid, as defined in the CAISO Tariff. Trap Any approved equipment or appliance for sealing an outlet from a house-connection sewer to prevent the escape of sewer Gas from a main line through a building connection (service) sewer. Underground Utility District An area in the City within which poles, overhead electric or telecommunication wires, and associated overhead structures are prohibited or as otherwise defined in Section 12.04.050 of the PAMC. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 26 Unintended Island The creation of an Island, usually following a loss of a portion of CPAU’s Distribution System, without the approval of CPAU. Unsafe Operating Conditions Conditions that, if left uncorrected, could result in harm to personnel, damage to equipment, loss of System Integrity or operation outside pre-established parameters required by the Interconnection Agreement. Upper Sewer Lateral The portion of the wastewater pipe from the building or structure to the City Sewer Cleanout or Lower Sewer Lateral. Utilities Department See City of Palo Alto Utilities Department. Utilities Director The individual designated as the Director of Utilities Department under Section 2.08.200 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the director of utilities. Utility(ies) Rules and Regulations, Rules and Regulations The compendium of Utilities Rules and Regulations prepared by the City’s Utilities and Public Works Departments and adopted by ordinance or resolution of the Council pursuant to Chapter 12.20 of the Palo Alto Municipal Code, as amended from time to time. Utility(ies) Service(s), Service(s) Electric, Fiber optics, Water, Gas, Wastewater collection services provided by the City of Palo Alto Utilities Department (CPAU) and Refuse Service, Wastewater Treatment and Storm and Surface Water Drainage services provided by the City of Palo Alto Public Works Department. Utility Service Application (Application) A general CPAU Application form documenting an Applicant’s request for Electric, Water, Gas and Wastewater Service. The Application documents the applicant’s contact information, billing information and basic electric, water, gas and wastewater loading data necessary to approve, design and install sufficient facilities based on load and usage information provided by the Applicant. DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 11-1-2016 Sheet No 27 Utility Users Tax (UUT) City of Palo Alto Tax imposed on Utility Charges to a Water, Gas, and/or Electric Service user. This may include Charges made for Electricity, Gas, and Water and Charges for Service including Customer Charges, Service Charges, Standby Charges, Charges for Temporary Services, Demand Charges, and annual and monthly Charges, as described in Chapter 2.35 of the Palo Alto Municipal Code. Wastewater Utility Service provided to residents and business owners in the City of Palo Alto. Wastewater Utility Services include collection and treatment of Wastewater. Wastewater Collection Service is provided by the City of Palo Alto Utilities Department, and Wastewater Treatment Service is provided by the City of Palo Alto Public Works Department. Wastewater Main Collector pipes for numerous sewer laterals from an area or neighborhood. Wastewater Mains convey the wastewater to larger trunk sewer lines or to a water quality treatment plant. Water Utility Service provided to residents and business owners in the City of Palo Alto for retail use. Water Service is provided by the City of Palo Alto Utilities Department. Water Column (WC) Pressure unit based on the difference in inches between the heights of water columns as measured in a manometer. 6” WC = 0.217 psi; 7” WC = 0.25 psi. (END) UTILITY SERVICE CONNECTIONS AND FACILITIES ON CUSTOMERS’ PREMISES RULE AND REGULATION 18 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-2711-1-2016 Sheet No. 1 A. GENERAL Rule and Regulation 18 outlines the general requirements governing Utility Service Connections and facilities on Customer Premises in the City of Palo Alto. For information and Rules specific to each type of Utility Service, please refer to the following Special Utility Regulations: Rule and Regulation 20 – Special Electric Utility Regulations Rule and Regulation 21 – Special Water Utility Regulations Rule and Regulation 22 – Special Gas Utility Regulations Rule and Regulation 23 – Special Wastewater Utility Regulations Rule and Regulation 24 – Special Refuse and Recycling Utility Regulations Rule and Regulation 25 – Special Storm and Surface Water Drainage Utility Regulations Rule and Regulation 26 – Special Fiber Optics Utility Regulations B. SERVICE CONNECTION REQUIREMENTS Upon an approved Application for a new Utility Service, CPAU will connect Utility Service Lines of suitable capacity to the CPAU infrastructure at a Point of Service designated by CPAU, provided that: 1.The property fronts on a public street, highway, alley, lane, or right-of-way along which CPAU has or will install the appropriate infrastructure; or the property has a contiguous easement or right-of-way along which CPAU has or will install Utility infrastructure. 2.CPAU has approved the Customer’s applicable: Utility Service Application and plans, Meter locations, Electric switchboard design and location, and Water backflow prevention device type and location. 3.The Applicant has complied with CPAU and Building Department requirements for the project and completed the installation in accordance with CPAU-approved plans submitted by the Applicant. 4.The Applicant has installed all required Service equipment and facilities (e.g., Electric Service equipment with Meter socket, main disconnect device, Water control valve, ATTACHMENT D UTILITY SERVICE CONNECTIONS AND FACILITIES ON CUSTOMERS’ PREMISES RULE AND REGULATION 18 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-2711-1-2016 Sheet No. 2 backflow preventer, Fiber demarcation cabinet, etc.) in accordance with the Special Utility Regulations listed in section A. above. 5. The Applicant has paid all required connection Charges and fees. 6. The City’s Building Inspector has approved the installation authorizing the Customer to activate the Service. C. OWNERSHIP AND RESPONSIBILITY FOR SERVICE LINES 1. General a. All materials and equipment installed by CPAU on the Customer’s Premises in the construction or operation of CPAU Services will at all times be and remain the sole property of CPAU and may be repaired, replaced, or removed by CPAU at any time. CPAU will attempt to notify and coordinate material and equipment modifications with Customers when possible and in non-emergency situations. b. The Customer shall exercise reasonable care to prevent CPAU equipment on the Customer’s Premises from being damaged or destroyed and shall refrain from interfering with same. The Customer shall immediately notify CPAU upon the discovery of any defect in CPAU equipment. c. No rent or other Charge whatsoever shall be made by the Customer against CPAU for placing, maintaining or accessing any Meters, equipment, substations or other facilities on the Customer’s Premises that are required to install, maintain, upgrade or otherwise provide Utility Service. D. INSTALLATION OF SERVICE CONNECTION: 1. Only duly authorized employees of CPAU shall be allowed to connect the Customer’s Electric, Gas, or Fiber Optic Service to, or disconnect the Service from, the CPAU infrastructure. UTILITY SERVICE CONNECTIONS AND FACILITIES ON CUSTOMERS’ PREMISES RULE AND REGULATION 18 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-2711-1-2016 Sheet No. 3 2. If the City allows the Customer to connect or disconnect the Water or Wastewater Service from the City distribution/collection system, then the work shall be observed by a WGW Utilities Inspector. E. RELOCATION OR MODIFICATION OF SERVICE CONNECTIONS The Customer is responsible for all costs associated with relocation or modification of Utility equipment initiated at the Customer’s request, or to provide Service to new load. A credit towards costs associated with modifications to Utility equipment required by the installation of Electric Vehicle Supply Equipment at single family or multi-family residential sites may be available under the City’s Low Carbon Fuel Standard Program, as described in Rate Schedule E-15. (END) CITY OF PALO ALTO OFFICE OF THE CITY CLERK October 24, 2016 The Honorable City Council Palo Alto, California SECOND READING: Adoption of Nine Ordinances to Adopt 2016 California Building Codes, Local Amendments, and Related Updates: (1) Repealing Chapter 16.04 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.04, California Building Code, California Historical Building Code, and California Existing Building Code, 2016 Editions, and Local Amendments and Related Findings; (2) Repealing Chapter 16.05 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.05, California Mechanical Code, 2016 Edition, and Local Amendments and Related Findings; (3) Repealing Chapter 16.06 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.06, California Residential Code, 2016 Edition, and Local Amendments and Related Findings; (4) Repealing Chapter 16.08 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.08, California Plumbing Code, 2016 Edition, and Local Amendments and Related Findings; (5) Repealing Chapter 16.14 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.14, California Green Building Standards Code, 2016 Edition, and Local Amendments and Related Findings; (6) Repealing Chapter 16.16 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.16, California Electrical Code, 2016 Edition, and Local Amendments and Related Findings; (7) Repealing Chapter 15.04 of the Palo Alto Municipal Code and Amending Title 15 to Adopt a new Chapter 15.04, California Fire Code, 2016 Edition, and Local Amendments and Related Findings; and (8) Adopt a New Title 16, Chapter 16.18 Private Swimming Pool and Spa Code, 2016 Edition and Local Amendments and Related Findings; (9) Amending Title 16, Chapters 16.36 House Page 2 Numbering and 16.40 Unsafe Buildings for Local Amendments and Related Findings. (FIRST READING: October 4, 2016 PASSED: 9-0) The attached Building Code Ordinance updates were heard by Council on October 4, 2016 and passed without changes 9-0. ATTACHMENTS: Attachment A: Building Code Ordinances (PDF) Department Head: Beth Minor, City Clerk NOT YET APPROVED 1 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Repealing Chapter 16.04 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.04, California Building Code, California Historical Building Code, and California Existing Building Code, 2016 Editions, and Local Amendments and Related Findings The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 16.04 of the Palo Alto Municipal Code is hereby amended by repealing in its entirety and adopting a new Chapter 16.04 to read as follows: 16.04.010 2016 California Building Code adopted. The California Building Code, 2016 Edition, Title 24, Part 2 of the California Code of Regulations, together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former California Code of Regulations, Title 24, 2013, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2016. Ordinance No. 5216 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed. Wherever the phrases “California Building Code” or “Building Code’ are used in this code or any ordinance of the City, such phrases shall be deemed and construed to refer and apply to the California Building Code, 2016 Edition, as adopted by this chapter. One copy of the California Building Code, 2016 Edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.04.020 2016 California Building Code Appendix Chapters adopted. The following Appendix chapter and section of the California Building Code, 2016 Edition, are adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein: A. Appendix I – Patio Covers B. Section J109.4 – Drainage across Property Lines (Appendix J) // ATTACHMENT A NOT YET APPROVED 2 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 16.04.030 Cross - References to California Building Code. The provisions of this Chapter contain cross-references to the provisions of the California Building Code, 2016 Edition, in order to facilitate reference and comparison to those provisions. 16.04.040 Section 1.11.2.1.1 Duties and powers of the enforcing agency/Enforcement. Section 1.11.2.1.1 of Chapter 1, Division I of the California Building Code is amended to read: 1.11.2.1.1 The responsibility for enforcement of building standards adopted by the State Fire Marshal and published in the California Building Standards Code relating to fire and panic safety and other regulations of the State Fire Marshal shall, except as provided in Section 1.11.2.1.2, be as follows: 1. The city, county or city and county with jurisdiction in the area affected by the standard or regulation shall delegate the enforcement of the building standards relating to fire and panic safety and other regulations of the State Fire Marshal as they relate to Group R-3 occupancies, as described in Section 310.1 of Part 2 of the California Building Standards Code, to both enforcement divisions specific to their areas of enforcement disciplines: 1.1 The chief of the fire authority of the city, county or city and county, or an authorized representative and; 1.2. The chief building official of the city, county or city and county, or an authorized representative. 16.04.050 Violations -- Penalties. Any person, firm or corporation violating any provision of this chapter is guilty of a misdemeanor and upon conviction thereof shall be punished as provided in subsection (a) of Section 1.08.010 of this code. Each separate day or any portion thereof during which any violation of this chapter occurs or continues shall be deemed to constitute a separate offense, and upon conviction thereof shall be punishable as provided in this section. When the building official determines that a violation of this chapter or chapters 16.05, 16.06, 16.08, 16.14, 16.16 or 16.17 of this code has occurred, he/she may record a notice of pendency of code violation with the Office of the County Recorder stating the address and owner of the property involved. When the violation has been corrected, the building official shall issue and record a release of the notice of pendency of code violation. 16.04.060 Enforcement -- Citation authority. The employee positions designated in this section may enforce the provisions of this chapter by the issuance of citations; persons employed in such positions are authorized to exercise the authority provided in Penal Code section 836.5 and are authorized to issue citations for violations of this chapter. The designated employee positions are: (1) chief building official; (2) building inspection supervisor; and (3) code enforcement officer. NOT YET APPROVED 3 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 16.04.70 Local Amendments. The provisions of this Chapter shall constitute local amendments to the cross-referenced provisions of the California Building Code, 2016 Edition, and shall be deemed to replace the cross- referenced sections of said Code with the respective provisions set forth in this Chapter. 16.04.080 Section 105.1.3 Demolition permits. Section 105.1.3 of Chapter 1, Division II of the California Building Code is added to read: 105.1.3 Demolition permits. In addition to other requirements of law, every person seeking a permit to demolish a unit used for residential rental purposes shall furnish an affidavit or declaration under penalty of perjury that the unit proposed to be demolished is vacant, or that notice to vacate has been given to each tenant lawfully in possession thereof as required by law or by the terms of such tenancy. No work or demolition shall begin upon any portion of such a unit until each and every portion has been vacated by all tenants lawfully in possession thereof. 16.04.85 Section 105.3.2 Time limitation of application. Section 105.3.2 of Chapter 1, Division II of the California Building Code is amended to read: Section 105.3.2 Time limitation of application. An application for a permit for any proposed work shall be deemed to have been abandoned 365 days after the date of filing, unless such application has been pursued in good faith or a permit has been issued; except that the building official is authorized to grant one or more extensions and/or reactivations for additional periods not exceeding 90 days each. The extension shall be required in writing and justifiable cause demonstrated. 16.04.90 Section 105.5 Expiration. Section 105.5 of Chapter 1, Division II of the California Building Code is amended to read: 105.5 Expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within 180 days after its issuance, or if the work authorized on the site by such permit is suspended or abandoned for a period of 180 days after the time the work is commenced. For the purpose of this section, failure to progress a project to the next level of required inspection shall be deemed to be suspension of the work. The chief building official is authorized to grant, in writing, no more than three extensions and reactivations of permits that would otherwise expire or reactivations of expired permits, for periods not more than 180 days each and may require: 1) that the construction documents be revised to partially or fully comply with current codes; and 2) payment of a fee; and NOT YET APPROVED 4 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 3) payment of a penalty pursuant to Chapter 16.62 of the Palo Alto Municipal Code, as it may be amended from time to time. Extensions and reactivations shall be requested in writing and justifiable cause demonstrated. Additional extensions or reactivations beyond three may only be granted with the approval of the City Council. 105.5.1 Term Limit for Permits. All work associated with a building permit must be completed, and final inspection issued, within 48 months of permit issuance. 16.04.100 Section 109.6 Refunds. Section 109.6 of Chapter 1, Division II of the California Building Code is amended to read: 109.6 Refunds The building official or the permit center manager may authorize the refund of any fee paid hereunder which was erroneously paid or collected. The building official or the permit center manager may authorize the refund of not more than eighty percent (80%) of the Permit Fee paid when no work has occurred under a permit issued pursuant to this Chapter. The building official or the permit center manager may authorize the refund of not more than eighty percent (80%) of the Plan Review Fee paid when a permit application is withdrawn or canceled before any plan review work has started. 16.04.110 Section 109.7 Re-Inspection Fees. Section 109.7 of Chapter 1, Division II of the California Building Code is added to read: 109.7 Re-Inspection Fees. A Re-Inspection Fee may be assessed/authorized by the building official or the building inspection supervisor for each re-inspection required when work for which an inspection is requested is not ready for inspection or when required corrections noted during prior inspections have not been completed. A “Re- Inspection Fee” may be assessed/authorized when; 1. The inspection record card is not posted or otherwise available on the work site, 2. The approved plans are not readily available for the inspector at the time of inspection, 3. The inspector is unable to access the work at the time of inspection, or; 4. When work has substantially deviated from the approved plans without the prior approval of the building official. 5. When a Re-Inspection Fee is assessed, additional inspection of the work will not be performed until the fee has been paid. 16.04.115 Section 110.2.1 Preliminary accessibility compliance inspection. Section 110.2.1 of Chapter 1, Division II of the California Building Code is added to read: 110.2.1 Preliminary accessibility compliance inspection. Before issuing a permit, the building official or designee is authorized to examine or cause to be examined the pre- NOT YET APPROVED 5 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code construction accessibility compliance conditions of the buildings, structures, and sites for which an application has been filed. 16.04.120 Section 110.3.3 Lowest Floor Elevation. Section 110.3.3 of Chapter 1, Division II of the California Building Code is amended to read: 110.3.3 Lowest Floor Elevation. In flood hazard areas, upon placement of the lowest floor, including the basement, and prior to further vertical construction, the elevation certification shall be submitted to City Public Works Engineering for inspection approval prior to foundation inspection by City Building Inspection. 16.04.130 Section 111.1 of Division II – Use and occupancy. Section 111.1 of Chapter 1, Division II of the California Building Code is amended to read: 111.1 Use and occupancy. No building or structure shall be used or occupied, and no change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building official has issued a certificate of occupancy therefor as provided herein. Issuance of a certificate of occupancy shall not be construed as an approval of a violation of the provisions of this code or of other ordinances of the jurisdiction. Exception: Certificates of occupancy are not required for: 1. Work exempt from permits under Section 105.2 and: 2. Group R – Division 3 occupancies 3. Group U occupancies 111.1.1 Change of occupancy or tenancy. Each change of occupancy, official name or tenancy of any building, structure or portion thereof, shall require a new certificate of occupancy, whether or not any alterations to the building are required by this code. If a portion of any building does not conform to the requirements of this code for a proposed occupancy, that portion shall be made to conform. The building official may issue a new certificate of occupancy without requiring compliance with all such requirements if it is determined that the change in occupancy or tenancy will result in no increased hazard to life or limb, health, property or public welfare. When application is made for a new certificate of occupancy under this section, the building official and fire chief shall cause an inspection of the building to be made. The inspector(s) shall inform the applicant of those alterations necessary, or if none are necessary, and shall submit a report of compliance to the building official. NOT YET APPROVED 6 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code Before any application for a new certificate of occupancy is accepted, a fee shall be paid by the applicant to cover the cost of the inspection of the building required by the change of occupancy or tenancy. 16.04.140 Section 111.3 of Division II – Temporary occupancy. Section 111.3 of Division II of the California Building Code is amended to read: 111.3 Temporary occupancy. The building official is authorized to issue a temporary certificate of occupancy before the completion of the entire work covered by the permit, or as otherwise required, provided that such portion or portions shall be occupied safely. The building official shall set a time period during which the temporary certificate of occupancy is valid. 16.04.150 Section 111.5 Posting. Section 111.5 of Chapter 1, Division II of the California Building Code is added to read: 111.5 Posting. The certificate of occupancy shall be posted in a conspicuous, readily accessible place in the building or portion of building to be occupied and shall not be removed except when authorized by the building official. 16.04.153 Section 115 Stop Work Order. Section 115 of Chapter 1, Division II of the California Building Code is amended to read: SECTION 115 STOP WORK ORDER 115.1 Authority. Whenever the building official finds any work regulated by this code being performed in a manner that is contrary to the provisions of this code, without a permit, beyond the scope of the issued permit, in violation of the Palo Alto Municipal Code or Zoning Ordinance, or dangerous or unsafe, the building official is authorized to issue a stop work order. 115.2 Issuance. The stop work order shall be in writing and shall be posted in a visible location near the location where the work is being conducted. If the owner or owner’s agent is not on site at the time of posting, a notice advising the reasons for the stop work order issuance shall be hand delivered or mailed first-class to the owner of the property involved, or to the owner’s agent, or to the person doing the work. Upon issuance of a stop work order, the cited work shall immediately cease. The stop work order shall state the reason for the order, the conditions under which the cited work will be permitted to resume, and the name and contact information of the official or agency issuing the order. 115.3 Unlawful Continuance. Any person who continues to engage in any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be guilty of a misdemeanor. NOT YET APPROVED 7 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 115.4 Removal of Posted Stop Work Order. Any person who removes a posted stop work order without written consent of the Building Official shall be guilty of a misdemeanor. 115.5 Response Required. Violators receiving a stop work order are required to respond to the Building Division within five (5) business days of the issued notice to receive instructions on how to rescind the order. 115.6 Permit Application Required. A building permit application with construction or demolition plans and supporting (structural calculations, energy calculations, accessible access) documents must be submitted for approval within fifteen (15) working days following response to the Building Division. Plans will be reviewed and correction letters issued or permit application approved by the Building Division. A response to any correction letter must be submitted within fifteen (15) working days of the date of the correction letter. Ten working days will be required to review this second submission and a permit approved for issuance. Permits ready for issuance must be issued within 5 working days thereafter. All construction must be inspected as work progresses and signed off by all (affected) departments within 180 days of building permit issuance. 115.7 Stop Work Order Penalty. The Building Official may impose Stop Work Order Penalties in accordance with Section 1.14.050 of this code and/or other applicable law. 16.04.155 Section 501.2 Address identification. Section 501.2 of Chapter 5 of the California Building Code is amended to read: 501.2 Address identification. New and existing buildings shall be provided with approved address numbers or letters. Each character shall be not less than 4 inches (102 mm) in height and not less than 0.5 inches (12.7 mm) in width. They shall be installed on a contrasting background and be plainly visible from the street or road fronting the property. When required by the fire code official, address numbers shall be provided in additional approved locations to facilitate emergency response. Where access is by means of a private road and the building address cannot be viewed from the public way, a monument, pole or other approved sign or means shall be used to identify the structure. Address numbers shall be maintained. 501.2.1 Address illumination. Address identification required by Section 501.2 shall be illuminated. 501.2.2 Address identification size. Address numbers and letters shall be sized as follows: 1. When the structure is between thirty-six (36) and fifty (50) feet from the road or other emergency means of access, a minimum of one-half inch (0.5”) stroke by six inches (6”) high is required. NOT YET APPROVED 8 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 2. When the structure is fifty (50) or more feet from the road or other emergency means of access, a minimum of one inch (1”) stroke by nine inches (9”) high is required. 3. Numbers shall be contrasting to the adjacent surfaces. 16.04.160 Section 702A Definitions – Wildland-Urban Interface Fire Area. Section 702A of Chapter 7A of the California Building Code is amended include the following definition of “Wildland-Urban Interface Fire Area”: WILDLAND-URBAN INTERFACE FIRE AREA is a geographical area identified by the State of California as a “Fire Hazard Severity Zone” in accordance with Public Resources Code Sections 4201 through 4202 and Government Code Sections 51175 through 51189, or other areas designated by the enforcing agency to be at a significant risk from wildfires. Within the city limits of the City of Palo Alto, “Wild Land-Urban Fire Interface Area” shall also include all areas west of Interstate 280, and all other areas recommended as a “Very High Fire Hazard Severity Zone” by the Director of the California Department of Forestry. 16.04.170 Section 902.1 Definitions. Section 902.1 of Chapter 9 the California Building Code is amended to include the following definitions: DUAL SENSOR PHOTOELECTRIC/IONIZATION SMOKE DETECTOR OR ALARM. A smoke alarm or detector that utilizes both photoelectric and ionization methods in a single device. DUAL SENSOR CARBON MONOXIDE AND SMOKE ALARM. A combination carbon monoxide and smoke alarm or detector that senses both smoke and CO in a single device. PHOTOELECTRIC SMOKE DETECTOR OR ALARM. A smoke alarm or detector that uses a light-source to detect the presence of smoke. 16.04.180 Section 903.2 – Automatic Sprinkler Systems, Where Required. Section 903.2 of Chapter 9 the California Building Code is amended to read as follows: 903.2 Automatic sprinkler systems, where required. Approved automatic sprinkler systems in new buildings and structures and in existing modified buildings and structures, shall be provided in the locations described in this section. Automatic fire sprinklers shall be installed per the requirements set forth in Sections 903.2.1 through 903.2.18 and as follows, whichever is the more restrictive: 1. An automatic sprinkler system shall be provided throughout all new buildings and structures. NOT YET APPROVED 9 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code Exception: New non-residential occupancies, buildings or structures that do not exceed 350 square feet of building area. 2. An automatic sprinkler system shall be provided for all existing buildings or structures where modifications have been determined by the Building Official to trigger requirements for seismic retrofit. 3. An automatic sprinkler system shall be provided throughout all existing buildings when modifications are made that create conditions described in Sections 903.2.1 through 903.2.18, or that create an increase in fire area to more than 3600 square feet or when the addition is equal or greater than 50% of the existing building square footage whichever is more restrictive. 4. An automatic sprinkler system shall be provided throughout all new basements regardless of size and throughout existing basements that are expanded by more than 50% or is conditioned for use. If the addition is only the basement, then only the basement is required to be fire sprinkler protection. 5. An automatic sprinkler system shall be installed throughout when either the roof structure or exterior wall structure have been removed and/ or replaced by at least 50% of the existing structure. 6. An automatic sprinkler system shall be installed throughout when any change in use or occupancy creating a more hazardous fire/life safety condition, as determined by the Fire Chief. 16.04.190 Section 903.3.1.1 NFPA sprinkler systems. Section 903.3.1.1 of Chapter 9 of the California Building Code is amended to read as follows: 903.3.1.1 NFPA 13 sprinkler systems. Where the provisions of this code require that a building or portion thereof be equipped throughout with an automatic sprinkler system in accordance with this section, sprinklers shall be installed throughout in accordance with NFPA 13 and State and local requirements except as provided in Section 903.3.1.1. 1. For new buildings having no designated use or tenant, the minimum sprinkler design density shall be Ordinary Hazard Group II. 2. Where future use or tenant is determined to require a higher density, the sprinkler system shall be augmented to meet the higher density. 16.04.200 Section 903.3.1.2 – NFPA 13R sprinkler systems. Section 903.3.1.2 of Chapter 9 of the California Building Code is amended to read as follows: NOT YET APPROVED 10 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 903.3.1.2 NFPA 13R sprinkler systems. Where allowed in buildings of Group R Occupancies, up to and including four stories in height, automatic sprinkler systems shall be installed throughout in accordance with NFPA 13 and State and local standards. 16.04.210 Section 903.3.1.3 – NFPA 13D sprinkler systems. Section 903.3.1.3 of Chapter 9 of the California Building Code is amended to read as follows: 903.3.1.3 NFPA 13D sprinkler systems. Where allowed, automatic sprinkler systems installed in one-and two-family detached dwellings and townhouses shall be installed throughout in accordance with NFPA 13D and State and local standards. 16.04.220 Reserved 16.04.230 Reserved 16.04.240 Section 903.4.3 - Floor control valves. Section 903.4.3 of the California Building Code is amended to read as follows: 903.4.3 Floor control valves. Automatic sprinkler systems serving buildings two (2) or more stories in height shall have valves installed so as to control the system independently on each floor including basements. 16.04.250 Section 907.2.11 - Single- and multiple-station smoke alarms. Section 907.2.11 of Chapter 9 of the California Building Code is amended to read as follows: 907.2.11 Single- and multiple-station smoke alarms. Listed single- and multiple-station smoke alarms complying with UL217 shall be installed in accordance with Sections 907.2.11.1 through 907.2.11.5 and manufacturers’ installation and use instructions. Smoke alarms and smoke detectors shall be in compliance with this code or subject to the provisions of the Health and Safety Code, they shall also be listed and approved for rapid response to smoldering synthetic materials. All smoke alarms or detectors shall be of the photoelectric type or shall have equivalent detection capabilities in compliance with UL 217. Exception: A combination photoelectric/ionization smoke alarm or detector may be used if located no closer than 20 feet to a kitchen, bathroom, fireplace or woodburning appliance. 16.04.255 Section 1203.6 Ventilation of weather-exposed enclosed assemblies. Section 1203.6 of Chapter 12 of the California Building Code is added to read: NOT YET APPROVED 11 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 1203.6 Ventilation of weather-exposed enclosed assemblies. Exterior projecting elements and appurtenances exposed to the weather and sealed underneath, including but not limited to balconies, landings, decks, and stairs, shall have cross ventilation for each separate enclosed space by ventilation openings protected against the entrance of rain and snow. Blocking and bridging shall be arranged so as not to interfere with the movement of air. The net free ventilating area shall not be less than 1/150th of the area of the space ventilated. Ventilation openings shall comply with Section1203.2.1. An access panel of sufficient size shall be provided on the underside of the enclosed space to allow for periodic inspection. Exceptions: 1. An access panel is not required where the exterior coverings applied to the underside of joists are easily removable using only common tools. 2. Removable soffit vents of at least four inches (4”) in width can be used to satisfy both ventilation and access panel requirements. 16.04.260 Section 1206.3.4 – Roof guardrails at interior courts. Section 1206.3.4 of Chapter 12 of the California Building Code is added to read: 1206.3.4 Roof guardrails at interior courts. Roof openings into interior courts that are bounded on all sides by building walls shall be protected with guardrails. The top of the guardrail shall not be less than 42 inches in height above the adjacent roof surface that can be walked on. Intermediate rails shall be designed and spaced such that a 12 inch diameter sphere cannot pass through. Exception: Where the roof opening is greater than 600 square feet in area. 16.04.265 Section 1404.13 Projections exposed to weather. Section 1404.13 of Chapter 14 of the California Building Code is added to read: 1404.13 Projections exposed to weather. Floor projections exposed to the weather and sealed underneath, including but not limited to balconies, landings, decks, and stairs shall be constructed of naturally durable wood, preservative-treated wood, corrosion-resistant (e.g. galvanized) steel, or similar approved materials. 16.04.270 Section 1503.2.1 Flashing Locations. Section 1503.2.1 of Chapter 15 of the California Building Code is amended to read: 1503.2.1 Locations. Flashing shall be installed at wall and roof intersections, gutters, wherever there is a change in roof slope or direction, and around roof openings. Where flashing is of metal, the metal shall be corrosion resistant with a thickness of not less than 0.019 inches (0.483 mm) (e.g. no. 26 galvanized sheet) and shall be primed and painted. // NOT YET APPROVED 12 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 16.04.275 Section 1616.10.15 ASCE 7, Section 13.1.4 Section 1616.10.15 of Chapter 16 of the California Building Code is amended to include the following: 13.1.4 Exemptions. The following nonstructural components are exempt from the requirements of this section: [. . .] 6. [. . .] c. Flexible connections are provided at seismic separation joints and between the component and associated ductwork, piping, and conduit; and one of the following applies: [. . .] or iii. The component weights 200 lb (890N) or less and is suspended from roof/floor or mounted on wall. 16.04.280 Section 1612.1.1 - Palo Alto Flood Hazard Regulations. Section 1612.1.1 of Chapter 16 of the California Building Code is added to read: 1612.1.1 Palo Alto Flood Hazard Regulations. Notwithstanding the provisions of Section 1612.1, all construction or development within a flood hazard area (areas depicted as a Special Flood Hazard Area on Flood Insurance Rate Maps published by the Federal Emergency Management Agency) shall comply with the City of Palo Alto Flood Hazard Regulations (Palo Alto Municipal Code Chapter 16.52). Where discrepancies exist between the requirements of this code and said regulations, the provisions of said regulations shall apply. 16.04.290 Section 1705.3 Concrete Construction. Section 1705.3 of Chapter 17 of the California Building Code is amended to read: 1705.3 Concrete construction. The special inspections and verifications for concrete construction shall be as required by this section and Table 1705.3. Exception: Special inspections shall not be required for: 1. Isolated spread concrete footings of buildings three stories or less above grade plane that are fully supported on earth or rock, where the structural design of the footing is based on a specified compressive strength, f’c, no greater than 2,500 pound per square inch (psi). 2. Continuous concrete footings supporting walls of buildings three stories or less above grade plane that are fully supported on earth or rock where: 2.1. The footings support walls of light-frame construction; 2.2. The footings are designed in accordance with Table 1809.7; or 2.3. The structural design of the footing is based on a specified compressive strength, f ′c, no greater than 2,500 pounds per square inch (psi) (17.2 NOT YET APPROVED 13 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code MPa), regardless of the compressive strength specified in the construction documents or used in the footing construction. 3. Nonstructural concrete slabs supported directly on the ground, including pre- stressed slabs on grade, where the effective pre-stress in the concrete is less than 150 psi (1.03 MPa). 4. Concrete foundation walls constructed in accordance with Table 1807.1.6.2. 5. Concrete patios, driveways and sidewalks, on grade. 16.04.300 Table 1809.7 Prescriptive Footings Supporting Walls of Light-Frame Construction. Table 1809.7 of Chapter 18 of the California Building Code is amended to read: TABLE 1809.7 Prescriptive Footings Supporting Walls of Light-Frame Constructionabcd Number of Floors Supported by the Footing e Thickness of Foundation Wall (inches) Width of Footing (inches) Thickness of Footing (inches) Depth of Foundation Below Natural Surface of Ground or Finish Grade (inches) 1&2 8 15 8 20 3 8 18 8 30 Group U Occupancies 8 12 8 12 a. The ground under the floor shall be permitted to be excavated to the elevation of the top of the footing. b. Interior stud-bearing walls shall be permitted to be supported by isolated footings. The footing width and length shall be twice the width shown in this table, and footings shall be spaced not more than 6 feet on center. c. See Section 1905 for additional requirements for concrete footings of structures assigned to Seismic Design Category C, D, E or F. d. All foundations as required in the above Table shall be continuous and have a minimum of three #4 bars of reinforcing steel, except for one story, detached accessory buildings of Group U occupancy where two bars are required. e. Footings shall be permitted to support a roof in addition to the stipulated number of floors. Footings supporting roof only shall be as required for supporting one floor. 16.04.310 Section 2308.9.3 Bracing. Section 2308.9.3 of Chapter 23 of the California Building Code is amended to read: NOT YET APPROVED 14 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 2308.9.3 Bracing. Braced wall lines shall consist of braced wall panels that meet the requirements for location, type and amount of bracing as shown in Figure 2308.9.3, specified in Table 2308.9.3(1) and are in line or offset from each other by not more than 4 feet (1219 mm). Braced wall panels shall start not more than 121/2 feet (3810 mm) from each end of a braced wall line. Braced wall panels shall be clearly indicated on the plans. Construction of braced wall panels shall be by one of the following methods: 1. Wood boards of 5/8 inch (15.9 mm) net minimum thickness applied diagonally on studs spaced not over 24 inches (610 mm) o.c. 2. Wood structural panel sheathing with a thickness not less than 3/8 inch (9.5 mm) for 16-inch (406 mm) or 24-inch (610 mm) stud spacing in accordance with Tables 2308.9.3(2) and 2308.9.3(3). 3. Fiberboard sheathing panels not less than 1/2 inch (12.7 mm) thick applied vertically or horizontally on studs spaced not over 16 inches (406 mm) o.c. where installed with fasteners in accordance with Section 2306.6 and Table 2306.6. 4. Particleboard wall sheathing panels where installed in accordance with Table 2308.9.3(4). 5. Portland cement plaster on studs spaced 16 inches (406 mm) o.c. installed in accordance with Section 2510. 6. Hardboard panel siding where installed in accordance with Section 2303.1.6 and Table 2308.9.3(5). For cripple wall bracing, see Section 2308.6.6.2 . For all methods above, each panel must be at least 48 inches (1219 mm) in length, covering three stud spaces where studs are spaced 16 inches (406 mm) apart and covering two stud spaces where studs are spaced 24 inches (610 mm) apart. 16.04.315 Table 2308.6.1 – footnote c amended. Footnote “c” of table 2308.6.1 of Chapter 23 of the California Building Code is amended to read: c. Method GB, gypsum wallboard is prohibited in Seismic Design Categories D & E. 16.04.317 Table 2308.6.3(1) Bracing Methods. Table 2308.6.3(1) – Bracing Methods of Chapter 23 of the California Building Code is amended to add footnote “c” as follows: Table 2308.6.3(1) BRACING METHODS METHODS, MATERIAL MINIMUM THICKNESS FIGURE CONNECTION CRITERIAa,c Fasteners Spacing c. Method GB, gypsum wallboard is prohibited in Seismic Design Categories D & E. 16.04.320 Section 2308.12.5 Attachment of sheathing. Section 2308.12.5 of Chapter 23 of the California Building Code is amended to read: NOT YET APPROVED 15 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 2308.12.5 Attachment of sheathing. Fastening of braced wall panel sheathing shall not be less than that prescribed in Table 2308.12.4 or 2304.9.1. Wall sheathing shall not be attached to framing members by adhesives. All braced wall panels shall extend to the roof sheathing and shall be attached to parallel roof rafters or blocking above with framing clips (18 gauge minimum) spaced at maximum 24 inches on center with four 8d nails per leg (total eight-8d nails per clip). Braced wall panels shall be laterally braced at each top corner and at maximum 24 inch intervals along the top plate of discontinuous vertical framing. 16.04.325 Section 3304.1 Excavation and fill. Section 3304.1 of Chapter 33 of the California Building Code is amended to read: 3304.1 Excavation and fill. Excavation and fill for buildings and structures shall be constructed or protected so as not to endanger life or property. Stumps and roots shall be removed from the soil to a depth of not less than 12 inches (305mm) below the surface of the ground in the area to be occupied by the building. Wood forms that have been used in placing concrete, if within the ground or between foundation sills and the ground, shall be removed before a building is occupied or used for any reason. Wooden stakes shall not be embedded in concrete. Before completion, loose or casual wood shall be removed from direct contact with the ground under the building. 16.04.330 2016 California Existing Building Code Adopted. The California Existing Building Code, 2016 Edition, Title 24, Part 10, which provides alternative building regulations for the rehabilitation, preservation restoration or relocation of existing buildings is adopted and hereby incorporated in this Chapter be reference and made a part hereof the same as if fully set forth herein. One copy of the California, 2016 Edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.04.335 2016 California Existing Building Code and International Existing Building Code Appendix Chapters Adopted. The following Appendix Chapters of the California Existing Building Code (CEBC), 2016 Edition, and International Existing Building Code (IEBC), 2015 Edition, are adopted and herby incorporated in this Chapter be reference and made a part hereof the same as if fully set forth herein: A. CEBC Appendix A1 – Seismic Strengthening Provisions for Unreinforced Masonry Bearing Wall Buildings B. IEBC Appendix Chapter A2 – Earthquake Hazard Reduction in Existing Reinforced Concrete and Reinforced Masonry Wall Buildings with Flexible Diaphragms. C. CEBC Appendix A3 – Prescriptive Provisions for Seismic Strengthening of Cripple Walls and Sill Plate Anchorage of Light, Wood-Frame Residential Buildings NOT YET APPROVED 16 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code D. CEBC Appendix A4 – Earthquake Risk Reduction in Wood-Frame Residential Buildings with Soft, Weak or Open Front Walls E. IEBC Appendix A5 – Earthquake Hazard Reduction in Existing Concrete Buildings 16.04.340 Section 403.13 – Suspended ceiling systems. Section 403.13 of the California Existing Building Code, Title 24, Part 10 is added to read: 403.13 Suspended ceiling systems. In existing buildings or structures, when a permit is issued for alterations or repairs, the existing suspended ceiling system within the area of the alterations or repairs shall comply with ASCE 7-10 Section 13.5.6. 16.04.345 Section 404.2.1 – Seismic Evaluation and Design Procedures for Repairs. Section 404.2.1 of the California Existing Building Code, Title 24, Part 10 is amended to read: 404.2.1 Evaluation and design procedures. The building shall be evaluated by a registered design professional, and the evaluation findings shall be submitted to the code official. The evaluation shall establish whether the damaged building, if repaired to its pre-damage state, would comply with the provisions of this code for wind and earthquake loads. Evaluation for earthquake loads shall be required if the substantial structural damage was caused by or related to earthquake effects or if the building is in Seismic Design Category C, D, E or F. The seismic evaluation and design shall be based on the procedures specified in the building code, ASCE 41 Seismic Evaluation and Upgrade of Existing Buildings. The procedures contained in Appendix A of the International Existing Building Code (IEBC) shall be permitted to be used as specified in Section 404.2.1. Wind loads for this evaluation shall be those prescribed in Section 1609. 404.2.1.1 CEBC level seismic forces. When seismic forces are required to meet the building code level, they shall be one of the following: 1. One hundred percent of the values in the building code. The R factor used for analysis in accordance with Chapter 16 of the building code shall be the R factor specified for structural systems classified as "Ordinary" unless it can be demonstrated that the structural system satisfies the proportioning and detailing requirements for systems classified as "intermediate" or "special". 2. Forces corresponding to BSE-1 and BSE-2 Earthquake Hazard Levels defined in ASCE 41. Where ASCE 41 is used, the corresponding performance levels shall be those shown in Table 404.2.1.1. NOT YET APPROVED 17 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code TABLE 404.2.1.1 ASCE 41 PERFORMANCE LEVELS RISK CATEGORY (BASED ON CBC TABLE 1604.5) PERFORMANCE LEVEL FOR USE WITH ASCE 41 BSE-1 EARTHQUAKE HAZARD LEVEL PERFORMANCE LEVEL FOR USE WITH ASCE 41 BSE-2 EARTHQUAKE HAZARD LEVEL * I Life Safety (LS) Collapse Prevention (CP) II Life Safety (LS) Collapse Prevention (CP) III Damage Control Limited Safety IV Immediate Occupancy (IO) Life Safety (LS) * Only applicable when Tier 3 procedure is used. 404.2.1.2 Reduced CEBC level seismic forces. When seismic forces are permitted to meet reduced building code levels, they shall be one of the following: 1. Seventy-five percent of the forces prescribed in the building code. The R factor used for analysis in accordance with Chapter 16 of the building code shall be the R factor as specified in Section 404.2.1.1. 2. In accordance with the California Existing Building Code and applicable chapters in Appendix A of the International Existing Building Code, as specified in Items a. through e. below. Structures or portions of structures that comply with the requirements of the applicable chapter in Appendix A shall be deemed to comply with the requirements for reduced building code force levels. a. The seismic evaluation and design of unreinforced masonry bearing wall buildings in Risk Category I or II are permitted to be based on the procedures specified in CEBC Appendix Chapter A1. b. Seismic evaluation and design of the wall anchorage system in reinforced concrete and reinforced masonry wall buildings with flexible diaphragms in Risk Category I or II are permitted to be based on the procedures specified in IEBC Appendix Chapter A2. c. Seismic evaluation and design of cripple walls and sill plate anchorage in residential buildings of light-frame wood construction in Risk Category I or II are permitted to be based on the procedures specified in CEBC Appendix Chapter A3 d. Seismic evaluation and design of soft, weak, or open-front wall conditions in multi-unit residential buildings of wood construction in Risk Category I or II are permitted to be based on the procedures specified in CEBC Appendix Chapter A4. e. Seismic evaluation and design of concrete buildings and concrete with masonry infill buildings in all risk categories are permitted to be based on the procedures specified in IEBC Appendix Chapter A5. NOT YET APPROVED 18 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 3. Those associated with the BSE-1 Earthquake Hazard Level defined in ASCE 41 and the performance level as shown in Table 404.2.1.1. Where ASCE 41 is used, the design spectral response acceleration parameters SXS and SX1 shall not be taken less than seventy-five percent of the respective design spectral response acceleration parameters SDS and SD1 defined by the California Building Code and its reference standards. 16.04.350 2016 California Historical Building Code adopted. The California Historical Building Code, 2016 Edition, Title 24, Part 8 (authorized by Health and Safety Code Sections 18950 through 18961), which provides alternative building regulations for the rehabilitation, preservation, restoration, or relocation of designated historic buildings, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. One copy of the California Historical Building Code, 2016 Edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. SECTION 2. The Council adopts the findings for local amendments to the California Building Code, 2016 Edition, attached hereto as Exhibit “A” and incorporated herein by reference. SECTION 3. Section 16.62.030 (Penalty for expired permits) of Chapter 16.62 (Expired Permits for Residential Construction and Demolition) of Title 16 (Building Regulations) of the Palo Alto Municipal Code is amended to read: A property owner shall be subject to the following penalties for violation of section 16.62.020: Time from Permit Expiration Penalty 0 to 30 days $0 31st day through 60th day $200.00 per day (i.e., $6,000.00 maximum penalty applicable to this 30-day period) 61st day through 120th day $400.00 per day (i.e., $24,000.00 maximum penalty applicable to this 60-day period) 121st day and every day thereafter $800.00 per day (a) For purposes of this section, if a renewed permit expires and the property owner has not advanced a project to the next level of required inspection, the calculation of penalties shall relate back to the date of the previous permit expiration. (b) The chief building official may reduce or waive a penalty accrued under this chapter upon finding that the property owner acted in good faith and either: (1) the delay was attributable to circumstances beyond the property owner’s control; or (2) imposition of NOT YET APPROVED 19 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code the full accrued penalty would harm the public interest, provided, however, that and reduction or waiver of more than $10,000 must be approved by the City Manager. SECTION 4. The Council finds that this ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Development Services ____________________________ Director of Administrative Services NOT YET APPROVED 20 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code Exhibit A FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA BUILDING CODE AND CALIORNIA EXISTING BUILDING CODE Section 17958 of the California Health and Safety Code provides that the City may make changes to the provisions of the California Building Standards Code. Sections 17958.5 and 17958.7 of the Health and Safety Code require that for each proposed local change to those provisions of the California Building Standards Code which regulate buildings used for human habitation, the City Council must make findings supporting its determination that each such local change is reasonably necessary because of local climatic, geological, or topographical conditions. Local building regulations having the effect of amending the uniform codes, which were adopted by the City prior to November 23, 1970, were unaffected by the regulations of Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code. Therefore, amendments to the uniform codes which were adopted by the City Council prior to November 23, 1970, and have been carried through from year to year without significant change, need no required findings. Also, amendments to provisions not regulating buildings used for human habitation do not require findings. Code: CBC Section Title Add Amended Justification (See below for keys) 501.2 Address Identification T 702A Wild Land-Urban Interface Fire Area T 902.1 Definition (Dual Sensor Carbon Monoxide and Smoke Alarm) T 903.2 Where Automatic Sprinklers Required T 903.3.1.1 NFPA 13 Sprinkler Systems T 903.3.1.2 NFPA 13R Sprinkler Systems T 903.3.1.3 NFPA 13D Sprinkler Systems T 903.4.3 Floor Control Valves T 907.2.11 Single- and Multiple-Station Smoke Alarms T 1203.6.1 Ventilation of Weather-Exposed, Enclosed Assemblies G, T 1206.3.4 Roof Guardrails at Interior Courts T 1404.13 Projections Exposed to Weather G, T 1503.2.1 Flashing Locations T NOT YET APPROVED 21 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code 1612.1.1 Palo alto Flood Hazard Regulations C, T 1616.10.15 ASCE 7 Sec. 13.1.4 G 1705.3 Concrete Construction G Table 1809.7 Prescriptive Footings Supporting Walls of Light Frame Construction G 2308.9.3 Bracing G Table 2306.1 & Table 2308.6.3(1) Wall Bracing in Seismic Design Categories D & E G 2308.12.5 Attachment of Sheathing G 3405.2.1 Evaluation and Design Procedures T Appendix I Patio Covers C Appendix J; section J109.4 Drainage Across Property Lines T Code: CEBC Section Title Add Amended Justification (See below for keys) 403.13 Excavation and fill G 404.2.1 Suspended Ceiling Systems G CEBC Appendix A1 Seismic Strengthening Provisions for Unreinforced Masonry Bearing Wall Buildings G IEBC Appendix A2 Earthquake Hazard Reduction in Existing Reinforced Concrete and Reinforced Masonry Wall Buildings with Flexible Diaphragms. G CEBC Appendix A3 Prescriptive Provisions for Seismic Strengthening of Cripple Walls and Sill Plate Anchorage of Light, Wood- Frame Residential Buildings G CEBC Appendix A4 Earthquake Risk Reduction in Wood- Frame Residential Buildings with Soft, Weak or Open Front Walls G IEBC Appendix A5 Earthquake Hazard Reduction in Existing Concrete Buildings G NOT YET APPROVED 22 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.04 Building Code Key to Justification for Amendments to Title 24 of the California Code of Regulations This amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Building Standards Code is required. C G T This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for repair of damaged properties following a local emergency. The City of Palo Alto topography includes hillsides with narrow and winding access, which makes timely response by fire suppression and emergency response vehicles difficult. Palo Alto is contiguous with the San Francisco Bay, resulting in a natural receptor for storm and waste water run-off. Also the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Code is warranted. NOT YET APPROVED 1 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Amending and Restating Chapter 16.14 of the Palo Alto Municipal Code, California Green Building Standards Code 2016 Edition, and Local Amendments and Related Findings The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 16.14 of the Palo Alto Municipal Code is hereby amended by repealing in its entirety Chapter 16.14 and adopting a new Chapter 16.14 to read as follows: 16.14.010 2016 California Green Building Standards Code adopted. The California Green Building Standards Code, 2016 Edition, Title 24, Part 11 of the California Code of Regulations, together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former California Code of Regulations, Title 24, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2016. Ordinance No. 5324 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed. Wherever the phrases “California Green Building Standards Code” or “Cal Green” are used in this code or any ordinance of the City, such phrases shall be deemed and construed to refer and apply to the California Green Building Standards Code, 2016 Edition, as adopted and amended by this chapter. One copy of the California Green Building Standards Code, 2016 Edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.14.020 2016 California Green Building Standards Code Appendix Chapters adopted. The following Appendix Chapters of the California Green Building Standards Code, 2016 Edition, are adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein: A. Appendix A4 - Residential Voluntary Measures (Tier 1 and Tier 2) B. Appendix A5 - Nonresidential Voluntary Measures (Tier 1 and Tier 2) ATTACHMENT B NOT YET APPROVED 2 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code 16.14.030 Cross - References to California Green Building Standards Code. The provisions of this Chapter contain cross-references to the provisions of the California Green Building Standards Code, 2016 Edition, in order to facilitate reference and comparison to those provisions. 16.14.040 Violations – Penalties. Any person, firm or corporation violating any provision of this chapter is guilty of a misdemeanor and upon conviction thereof shall be punished as provided in subsection (a) of Section 1.08.010 of this code. Each separate day or any portion thereof during which any violation of this chapter occurs or continues shall be deemed to constitute a separate offense, and upon conviction thereof shall be punishable as provided in this section. 16.14.050 Enforcement -- Citation authority. The employee positions designated in this section may enforce the provisions of this chapter by the issuance of citations; persons employed in such positions are authorized to exercise the authority provided in Penal Code section 836.5 and are authorized to issue citations for violations of this chapter. The designated employee positions are: (1) chief building official; (2) building inspection supervisor; (3) Director of Development Services, and (4) Code enforcement officer. 16.14.060 Local Amendments. The provisions of this Chapter shall constitute local amendments to the cross-referenced provisions of the California Green Building Standards Code, 2016 Edition, and shall be deemed to replace the cross-referenced sections of said Code with the respective provisions set forth in this Chapter. 16.14.070 Section 202 amended – Definitions added. Section 202 of the California Green Building Standards Code is amended to include the following definitions: CPAU: The City of Palo Alto Utilities Department. CALGREEN MANDATORY: Calgreen mandatory requirements are triggered for projects outlined in Section 301.1 Scope of the code, as amended. Projects that trigger only Calgreen mandatory measures are not required to fulfill Calgreen Tier 1 or Tier 2 as listed in Appendix A4 and A5. CALGREEN “TIER 1”: To achieve Tier 1 status, a project must comply with the requirements identified in Appendix A4, Division A4.601.4 for residential projects and NOT YET APPROVED 3 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code Appendix A5.601.2 for non-residential projects. The local adaptations to these appendices are identified in this ordinance. Projects subject to Tier 1 must fulfill on Calgreen mandatory measures and Calgreen Tier 1 prerequisite measures. Tier 1 projects must also select the minimum amount Calgreen elective measures required for Tier 1. CALGREEN “TIER 2”: To achieve Tier 2 status, a project must comply with the requirements identified in Appendix A4, Division A4.601.5 for residential projects and Appendix A5.601.3 for non-residential projects. The local adaptations to these appendices are identified in this ordinance. Projects subject to Tier 2 must fulfill on Calgreen mandatory measures and Calgreen Tier 2 prerequisite measures. Tier 2 projects must also select the minimum amount of Calgreen elective measures required for Tier 2. CALGREEN “TIER 1” AND “TIER 2” PREREQUISITE MEASURES: Projects subject to Calgreen Tier 1 or Tier 2 must fulfill the minimum prerequisites as described within Appendix A4, Division A4.6 for Residential projects and Appendix A5.6 for Non- Residential Projects, and local amendments within this ordinance. Tier 1 and Tier 2 prerequisite and elective measures are generally preceded by an “A”. CALGREEN “TIER 1” AND “TIER 2” ELECTIVE MEASURES: Projects subject to Calgreen Tier 1 or Tier 2 must fulfill the minimum number of electives as described within Appendix A4, Division A4.6 for Residential projects and Appendix A5.6 for Non- Residential Projects, and local amendments within this ordinance. Tier 1 and Tier 2 prerequisite and elective measures are generally preceded by an “A”. DEDICATED IRRIGATION METER. A dedicated irrigation meter is a water meter that exclusively meters water used for outdoor watering and irrigation, and is completely independent from the meter used for indoor water use. CALGREEN PLANS EXAMINER: A Calgreen Plans Examiner is an individual certified through the International Code Council (ICC) for demonstrating knowledge and application of Green Building concepts during plan review. For projects that require a Calgreen Plans Examiner verification, the Examiner must be contracted directly with the owner and may not be a contractor or employee of the design or construction firm. CALGREEN INSPECTOR: A Calgreen Inspector is an individual certified through the International Code Council (ICC) for demonstrating knowledge and application of Green Building concepts during inspection. For projects that require a Calgreen Inspector verification, the Inspector must be contracted directly with the owner and may not be a contractor or employee of the design or construction firm. NOT YET APPROVED 4 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code GREEN POINT RATER: A GreenPoint Rater is an individual rated by Build It Green—a professional non-profit membership organization whose mission is to promote healthy, energy- and resource-efficient buildings in California. For projects that require Green Point Rater verification, the Green Point Rater must be contracted directly with the owner and may not be a contractor or employee of the design or construction firm. The city shall maintain a list of pre-approved Special Inspectors in accordance with Chapter 7, section 702.2 Special Inspection. INVASIVE PLANTS. Invasive plants are both indigenous and non-indigenous species with growth habits that are characteristically aggressive. Invasive plants that are of concern and may be prohibited by this code are defined as such in the “Water Use Classification of Landscape Species (WUCOLS), A Guide to the Water Needs of Landscape Plants,” from the University of California Cooperative Extension. MODEL WATER EFFICIENT LANDSCAPE ORDINANCE. The California Department of Water Resources Model Water Efficient Landscape Ordinance (or “Model Water Ordinance) ordinance regulating new construction and rehabilitated landscape project design, installation and maintenance. The Model Water Ordinance assigns a Maximum Applied Water Allowance (MAWA) based on landscaped area and climatological parameters. The City of Palo Alto has adopted more stringent compliance regulations in this code than the Model Water Ordinance; however, the Model Water Ordinance is referenced as the guiding document for water use calculations, irrigation system design, and water waste prevention. PROCESS WATER. Process water means untreated wastewater, uncontaminated by toilet discharge or an unhealthy bodily waste, which is not a threat from unhealthful processing, manufacturing or operating wastes. SALVAGE. Salvage means the controlled removal of construction or demolition debris/ material from a building, construction, or demolition site for the purpose of on- or off- site reuse, or storage for later reuse. Examples include air conditioning and heating systems, columns, balustrades, fountains, gazebos, molding, mantels, pavers, planters, quoins, stair treads, trim, wall caps, bath tubs, bricks, cabinetry, carpet, doors, ceiling fans, lighting fixtures, electrical panel boxes, fencing, fireplaces, flooring materials of wood, marble, stone or tile, furnaces, plate glass, wall mirrors, door knobs, door brackets, door hinges, marble, iron work, metal balconies, structural steel, plumbing fixtures, refrigerators, rock, roofing materials, siding materials, sinks, stairs, stone, stoves, toilets, windows, wood fencing, lumber and plywood. SQUARE FOOTAGE. For application of green building requirements, square footage means all new and replacement square footage, including basement areas (7 feet or NOT YET APPROVED 5 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code greater in height) and garages, except that unconditioned garage space shall only count as 50% . Areas demolished shall not be deducted from the total new construction square footage. Square footage may also apply to landscapes, in which case it is the total surface area of the site not covered by impervious surfaces. 16.14.080 Section 301 amended – voluntary tiers added. Section 301 of the California Green Building Standards Code is amended to read: SECTION 301 GENERAL 301.1 Scope. Buildings shall be designed to include the green building measures specified as mandatory in the application checklists contained in this code and any applicable local amendments. In addition, the City requires the use of Voluntary Tiers, as provided in Sections A4.601 and A5.601, for certain residential and nonresidential new construction, additions, and alterations. 301.1.1 Residential additions and alterations. [HCD] The mandatory provisions of Chapter 4 shall be applied to additions or alterations of existing residential buildings where the addition or alteration increases the building's conditioned area, volume, or size. The requirements shall apply only to and/or within the specific area of the addition or alteration. Tier 1 adopted. All residential building additions or alterations exceeding 1000 square feet must meet California Green Building Standards Code Mandatory plus Tier 1 requirements, as amended by this Chapter and as applicable to the scope of work. Note: On and after January 1, 2014, residential buildings undergoing permitted alterations, additions or improvements shall replace noncompliant plumbing fixtures with water-conserving plumbing fixtures. Plumbing fixture replacement is required prior to issuance of a certificate of final completion, certificate of occupancy or final permit approval by the local building department. See Civil Code Section 1101.1, et seq., for the definition of a noncompliant plumbing fixture, types of residential buildings affected and other important enactment dates. 301.2 Low-rise and high-rise residential buildings. [HCD] The provisions of individual sections of CALGreen may apply to either low-rise residential buildings, high-rise residential buildings, or both. Individual sections will be designated by banners to indicate where the section applies specifically to low-rise only (LR) or high-rise only (HR). NOT YET APPROVED 6 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code When the section applies to both low-rise and high-rise buildings, no banner will be used. 301.3 Nonresidential additions and alterations. [BSC] The provisions of individual sections of Chapter 5 apply to building nonresidential additions of 1,000 square feet or greater, and/or building alterations with a permit valuation of $200,000 or above (for occupancies within the authority of California Building Standards Commission). Code sections relevant to additions and alterations shall only apply to the portions of the building being added or altered within the scope of the permitted work. A code section will be designated by a banner to indicate where the code section only applies to newly constructed buildings [N] or to additions and alterations [AA]. When the code section applies to both, no banner will be used. Tier 1 adopted. Nonresidential alterations (including tenant improvements or renovations) of 5,000 square feet that include replacement or alteration of at least two of the following: HVAC system, building envelope, hot water system, or lighting system, must comply with Mandatory California Green Building Standards Code plus Tier 1 requirements, as amended by this Chapter and as applicable to the scope of work. Tier 2 adopted. Nonresidential additions of 1000 square feet or greater must comply with California Green Building Standards Code Mandatory plus Tier 2 requirements, as amended by this Chapter and as applicable to the scope of work. 301.4 Residential new construction – Tier 2 adopted. All newly constructed Residential Buildings must meet California Green Building Standards Code Mandatory plus Tier 2 requirements, as amended by this Chapter and as applicable to the scope of work. 301.5 Non-residential new construction – Tier 2 adopted. All new nonresidential construction must meet California Green Building Standards Code Mandatory plus Tier 2 requirements, as amended by this Chapter and as applicable to the scope of work. 301.6 Special Inspector Requirements. Residential project owners subject to Calgreen Mandatory plus Tier 1 or Tier 2 requirements shall contract a special inspector in accordance with section 702.2 of this code, as amended. 16.14.090 Section 702.2 Special Inspection. Section 702.2 of the California Green Building Standards Code is amended to read: 702.2 Special Inspection. When required by the enforcing agency, the owner or responsible entity acting as the owner’s agent shall employ one or more special NOT YET APPROVED 7 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code inspectors to provide inspection or other duties necessary to substantiate compliance with this code. Special inspectors shall demonstrate competence to the satisfaction of the enforcing agency for the particular type of inspection or task to be performed. In addition to other certifications or qualifications acceptable to the enforcing agency, the following certifications or education may be considered by the enforcing agency when evaluating the qualifications of a special inspector. The city shall maintain a list of pre- approved Special Inspectors in accordance with this section. The owner shall contract a Special Inspector meeting one of the following; 1)Certification by a national or regional green building program: ICC Certified Plans Examiner and ICC Certified Calgreen Inspector: Contract a Calgreen Plans Examiner and Calgreen Inspector to provide third-party verification of compliance prior to Permit Issuance and prior to Final Inspection. This Special Inspector may fulfill both requirements if the individual, or company, maintains both the Calgreen Plans Examiner and Calgreen Inspector designation. 2) Other programs acceptable to the enforcing agency. When required by the enforcing agency, the owner or responsible entity acting as the owner’s agent shall employ one or more special inspectors to provide inspection or other duties necessary to substantiate compliance with this code. Special inspectors shall demonstrate competence to the satisfaction of the enforcing agency for the particular type of inspection or task to be performed. In addition, the special inspector shall have a certification from a recognized state, national or international association, as determined by the local agency. The city shall maintain a list of pre-approved Special Inspectors in accordance with this section. Note: Special inspectors shall be independent entities with no financial interest in the materials or the project they are inspecting for compliance with this code. 16.14.100 Section 303.1.2 Cumulative construction. Section 303.1.2 is added to the California Green Building Standards Code to read: 303.1.2 Cumulative construction. Cumulative construction over any two-year period, or a project completed in phases, shall be considered as a single project, subject to the highest level of green building requirements for that project, unless exempted by the Director of Development Services as impractical for compliance. If a project is developed in phases, such as a core and shell development following by a tenant improvement, regardless of ownership each phase will be subject to the green building requirements which apply to the scope of work constructed as part of that phase. NOT YET APPROVED 8 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code 16.14.110 Residential Projects. Chapter 4 Preface: Green building requirements for project type and scope. A preface is added to Chapter 4 of the California Green Building Standards Code to read: Preface - Green Building Requirements for Project Type and Scope For design and construction of residential projects, the City requires compliance with the mandatory measures of Chapter 4, in addition to use of Tier 1 and Tier 2 as specified in Palo Alto Municipal Code Chapter 16.14. See Section 202 for definitions on Calgreen mandatory, Tier 1 prerequisites and electives, and Tier 2 prerequisites and electives. All elective measures are adopted as written under Appendix A4 unless otherwise indicated in this Section. 16.14.120 Section A4.104 Site Preservation. Section A4.104.1 is adopted as a Tier 1 and Tier 2 elective and is amended to read: A4.104.1 Supervision and Education by a Special Inspector. Individuals with oversight authority on the project, as defined in 16.14.090 of this code, who have been trained in areas related to environmentally friendly development, can teach green concepts to other members of the builder’s staff and ensure training and written instruction has been provided to all parties associated with the development of the project. Prior to the beginning the construction activities, all the builder shall receive a written guideline and instruction specifying the green goals of the project. Note: Lack of adequate supervision and dissemination of the project goals can result in negative effects on green building projects. If the theme of green building is not carried through the project, the overall benefit can be substantially reduced by the lack of knowledge and information provided to the various entities involved with the construction of the project. 16.14.130 Section A4.105.1 and A4.105.2 Deconstruction and Reuse of Existing Materials. Sections A4.105.1 and A4.105.2 are adopted as Tier 1 and Tier 2 elective measures and are amended to read: A4.105.1 General. Existing buildings on the site are deconstructed and the salvaged materials are reused. Reused materials or products must comply with the current building standards requirements or be an accepted alternate method or material. Salvaged materials may be reused onsite or for a different project. The Chief Building NOT YET APPROVED 9 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code Official may require documentation confirming that salvageable materials have been reused. A4.105.2 Reuse of materials. Non-hazardous materials which can be easily reused include but are not limited to the following: 1.Light fixtures 2.Plumbing fixtures 3.Doors and trim 4.Masonry 5.Electrical devices 6.Appliances 7.Foundations or portions of foundations Note: Reused material must be in compliance with the appropriate Title 24 requirements. 16.14.135 Section A4.105.3 Deconstruction Survey. Section A4.105.3 is added as mandatory to read: A4.105.3 Deconstruction Survey. All single family residential dwelling units required to obtain a demolition permit shall complete a deconstruction survey provided by third party approved by the Chief Building Official. The survey shall include a list of materials that are reusable in the project, as well as the values of such materials. 16.14.140 Reserved. 16.14.150 Section A4.106.8 Electric Vehicle (EV) Charging for New Construction. Section A4.106.8 is not adopted as a Tier 1 and Tier 2 elective measure. Projects must comply with the mandatory electric vehicle supply equipment (EVSE) requirements stated in Section 4.106.4, as amended. 16.14.160 Section A4.106.9 Bicycle Parking. Section A4.106.9 is not adopted as a Tier 1 and Tier 2 elective measure. Projects must comply with the bicycle parking requirements in the Palo Alto Municipal Code. // NOT YET APPROVED 10 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code 16.14.170 Section A4.106.10 Light Pollution Reduction. Section A4.106.10 is adopted as a Tier 1 and Tier 2 elective measure for all covered projects and is amended to read: A4.106.10 Light pollution reduction. Outdoor lighting systems shall be designed and installed to comply with the following: 1.The minimum requirements in the California Energy Code for Lighting Zones 1-4 as defined in Chapter 10 of the California Administrative Code; and 2.Backlight, Uplight and Glare (BUG) ratings as defined in IES TM-15-11; and 3.Allowable BUG ratings not exceeding those shown in Table A4.106.10; or 4.Comply with a local ordinance lawfully enacted pursuant to Section 101.7 of this code, whichever is more stringent. Projects may use an approved equal reference standard for light fixtures where BUG ratings are unavailable. Exceptions: 1.Luminaires that qualify as exceptions to the California Energy Code. 2.Emergency lighting. 3.One- and two-family dwellings. 16.14.180 Section A4.203.1 Performance Approach for Newly Constructed Buildings. Sections A4.203.1 is not adopted as a Tier 1 and Tier 2 elective measure. Projects shall comply with Chapter 16.17 of the Palo Alto Municipal Code (Energy Reach Code). 16.14.190 Reserved. 16.14.200 Reserved. 16.14.210 Reserved. 16.14.220 Section A4.304.2.1 Irrigation Metering Device. Section A4.304.2.1 is adopted as a Tier 1 and Tier 2 prerequisite and is amended to read: NOT YET APPROVED 11 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code A4.304.2.1 Irrigation Metering Device. Dedicated irrigation meters are to be installed in all new construction and rehabilitated landscapes when the landscape is greater than 1,000 square feet. 16.14.230 Section A4.305 Water Reuse Systems. Sections A4.305.1 through A4.305.3 are adopted as Tier 1 and Tier 2 electives and are amended to read: A4.305.1 Graywater. Alternative plumbing piping is installed to permit the discharge from the clothes washer and other fixtures (except toilets and kitchen sinks) to be used for an irrigation system in compliance with the California Plumbing Code. A4.305.2 Recycled Water Piping. Based on projected availability, dual water piping is installed for future use of recycled water at the following locations: 1.Interior piping for the use of recycled water is installed to serve all water closets, urinals, and floor drains. 2.Exterior piping is installed to transport recycled water from the point of connection to the structure. Recycled water systems shall be designed and installed in accordance with the California Plumbing Code. A4.305.3 Recycled water for landscape irrigation. Recycled water is used for landscape irrigation. Section A4.305.4 is added and adopted as Tier 1 and Tier 2 prerequisite and shall read as follows: A4.305.4 Additions and alterations. All multifamily residential additions and alterations must install recycled water infrastructure for irrigation when the landscape area exceeds 1,000 square feet. Section A4.305.5 is added and adopted a Tier 2 prerequisite and shall read as follows: A4.305.5 Laundry to Landscape Infrastructure. Newly constructed Residential Buildings with a landscape area of any size shall install an independent plumbing drainage system including a trap and vent that shall begin near the interior laundry fixtures and will terminate at the exterior of the home. This piping system will be capped at all outlets and will assist in the future installation of a “Laundry-to-Landscape” irrigation system. A NOT YET APPROVED 12 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code complete irrigation system installation shall meet the requirements of the California Plumbing Code 1502.1.1, Clothes Washer System. Exception: Laundry fixtures located below grade. A4.305.5.1 Identification. Independent laundry to landscape capable system shall be labeled as "LAUNDRY-TO-LANDSCAPE CABABLE" and be readily visible to the user. 16.14.240 Section A4.403.1 Frost Protection Foundation Systems. Sections A4.203.1 is not adopted as a Tier 1 and Tier 2 elective measure. 16.14.250 Section A4.403.2 Reduction in cement use. Section A4.403 is not adopted as a Tier 1 and Tier 2 prerequisite. Section A4.403 is adopted as a Tier 1 and Tier 2 elective measure and shall read as: A4.403.2 Reduction in cement use. As allowed by the enforcing agency, cement used in foundation mix design shall be reduced as follows: Tier 1. Not less than a 20 percent reduction in cement. Tier 2: Not less than a 25 percent reduction in cement. Note: Products commonly used to replace cement in concrete mix designs include, but are not limited to: 1. Fly ash 2. Slag 3. Silica fume 4. Rice hull ash 16.14.260 Section A4.408.1 Enhanced Construction Waste Reduction. Section A4.408.1 is adopted as mandatory and is amended to read: A4.408.1 Enhanced Construction Waste Reduction. Nonhazardous construction and demolition debris generated at the site is diverted to recycle or salvage incompliance with the following: NOT YET APPROVED 13 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code Tier 1 and Tier 2. At least a 80-percent reduction. Any mixed recyclables that are sent to mixed-waste recycling facilities shall include a qualified third party verified facility average diversion rate. Verification of diversion rates shall meet minimum certification eligibility guidelines, acceptable to the local enforcing agency. A4.408.1.1 Documentation. Documentation shall be provided to the enforcing agency which demonstrates compliance with all construction and demolition waste reduction requirements. 16.14.270 Section A4.504.3 Thermal insulation. Section A4.504.3 is not adopted as a Tier 1 and Tier 2 prerequisite. Section A4.403 is adopted as a Tier 1 and Tier 2 elective measure. 16.14.280 Non-Residential Projects: Chapter 5 Preface Green Building Requirements for Project Type and Scope. A Preface is added to Chapter 5 of the California Green Building Standards Code to read: Preface – Green Building Requirements for Project Type and Scope. For design and construction of non-residential projects, the City requires compliance with the mandatory measures of Chapter 5, in addition to use of Tier 1 and Tier 2 as specified in Palo Alto Municipal Code Chapter 16.14. See Section 202 for definitions on Calgreen mandatory, Tier 1 prerequisites and electives, and Tier 2 prerequisites and electives. All elective measures are adopted as written under Appendix A5 unless otherwise indicated in this Section. 16.14.290 Section 5.106.1.1 Local storm water pollution prevention. Section 5.106.1.1 Local ordinance is amended to read: 5.106.1.1 Local ordinance. Newly constructed projects and additions shall comply with additional storm water pollution prevention measures as applicable. (See Chapter 16.11, Storm Water Pollution Prevention, of the Palo Alto Municipal Code.) 16.14.295 Section 5.106.8 Light pollution reduction Section 5.106.8 Light pollution reduction is amended to read: 5.106.8 Light pollution reduction. Outdoor lighting systems shall be designed and installed to comply with the following: NOT YET APPROVED 14 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code 1. The minimum requirements in the California Energy Code for Lighting Zones 1-4 as defined in Chapter 10 of the California Administrative Code; and 2. Backlight, Uplight and Glare (BUG) ratings as defined in IES TM-15-11; and 3. Allowable BUG ratings not exceeding those shown in Table A4.106.10; or 4. Comply with a local ordinance lawfully enacted pursuant to Section 101.7 of this code, whichever is more stringent. Projects may use an approved equal reference standard for light fixtures where BUG ratings are unavailable. Exceptions: 1. Luminaires that qualify as exceptins in Section 140.7 of the California Energy Code. 2. Emergency lighting. 3. Building façade meeting the requirements in Table 140.7-B of the California Energy Code, Part 6. 4. Custom lighting features as allowed by the local enforcing agency, as permitted by Section 101.8 Alternate materials, designs, and methods of construction. 16.14.300 Section 5.303.5 Dual Plumbing. Section 5.303.5 Dual plumbing is added as mandatory and is amended to read: 5.303.5 Dual plumbing. New buildings and facilities shall be dual plumbed for potable and recycled water systems for toilet flushing when recycled water is available. All building projects for which CPAU recycled water service is available must install dual Plumbing and use recycled water for toilet and urinal flushing when the building area is greater than 10,000 square feet or where installation of 25 or more toilets and urinals is proposed. All projects for which CPAU recycled water service is not yet available must install dual plumbing for use of recycled water for toilet and urinal flushing when the building area exceeds 100,000 square feet or where installation of 100 or more toilets and urinals is proposed. 16.14.310 Reserved. 16.14.320 Reserved. 16.14.330 Reserved. NOT YET APPROVED 15 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code 16.14.340 Reserved. 16.14.350 Section 5.304.5 Potable water elimination. Section 5.304.5 Potable water elimination is adopted as mandatory and amended to read: 5.304.5 Potable water elimination. Recycled water infrastructure for irrigation systems is required for all projects for which CPAU recycled water service is available. All projects for which CPAU recycled water service is not yet available must install recycled water infrastructure for irrigation when the landscape area exceeds 1,000 square feet. Dedicated irrigation meters are to be installed in all new construction and rehabilitated landscapes when the landscape is greater than 1,000 square feet. 16.14.360 Section 5.304.6 Invasive species prohibited. Section 5.304.6 is added as mandatory to read: 5.304.6 Invasive species prohibited. All nonresidential new construction, additions, and alterations shall not install invasive species in a landscape area of any size. 16.14.365 Section 5.305.1 Non-residential enhanced water budget. Section 5.305.1 Non-residential enhanced water budget is added as mandatory to read: 5.305.1 Non-residential enhanced water budget. Non-residential buildings anticipated to use more than 1,000 gallons of water a day shall complete an Enhanced Water Budget Calculator as established by the Chief Building Official. 16.14.370 Section A5.408 Construction Waste, Reduction, Disposal and Recycling. Section A5.408.3.1.1 Enhanced Construction Waste Reduction is adopted at Tier 2 (80% construction waste reduction) as a mandatory requirement for all nonresidential construction, including new construction, additions, and alterations, as long as the construction has a valuation exceeding $25,000. Nonresidential projects with a lower valuation shall remain subject to California Green Building Code Chapter 5 mandatory requirements. 16.14.380 Section 5.410.4.6 Energy STAR portfolio manager. Section 5.410.4.6 Energy STAR portfolio manager is added as mandatory to read: NOT YET APPROVED 16 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code 5.410.4.6 Energy STAR portfolio manager. All nonresidential projects exceeding $100,000 valuation must provide evidence of an Energy STAR Portfolio Manager project profile prior to Permit Issuance, acquire an Energy STAR Portfolio Manager Rating, and submit the rating to the City of Palo Alto once the project has been occupied after 12 months. 16.14.390 Section 5.410.4.7 Performance reviews – energy. Section 5.410.4.7 Performance reviews - energy is added to read: 5.410.4.7 Performance reviews – energy. All projects over 10,000 square feet. The City reserves the right to conduct a performance review, no more frequently than once every five years unless a project fails review, to evaluate the building's energy use to ensure that resources used at the building and/or site do not exceed the maximum allowance set forth in the rehabilitation or new construction design. Energy use reviews may be initiated by the Building Division or as a coordinated effort between the City's Utilities Department and/or its designated contractors. Following the findings and recommendations of the review, the City may require adjustments to the energy usage or energy-using equipment or systems if the building is no longer compliant with the original design. Renovation or rehabilitation resulting from such audit activity shall be considered a project, and shall be subject to applicable documentation submittal requirements of the City. This section is effective only for those projects for which a building permit was issued after January 1, 2009. 16.14.400 Section 5.410.4.8 Performance reviews – water. Section 5.410.4.8 Performance reviews - water is added to read: 5.410.4.8 Performance reviews – water. All sites greater than one acre: The City reserves the right to conduct performance reviews, no more frequently than once every five years unless a project fails review, to evaluate water use to ensure that resources used at the building and/or site do not exceed a maximum allowance set forth in the rehabilitation or new construction design. Water use reviews may be initiated by the Building Division, or as a coordinated effort between the City's Utilities Department and the Santa Clara Valley Water District (SCVWD), or as part of SCVWD's established water conservation programs. Following the findings and recommendations of the review, the City may require adjustments to irrigation usage, irrigation hardware, and/or landscape materials to reduce consumption and improve efficiency. Renovation or rehabilitation resulting from such audit activity shall be considered a project, and shall be subject to applicable documentation submittal requirements of the City. NOT YET APPROVED 17 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code 16.14.420 Section A4.106.8 Electric Vehicle (EV) Charging. Section A4.106.8 of the California Green Building Standards Code is added as mandatory and amended to read: A4.106.8 Electric Vehicle (EV) Charging for Residential Structures. Newly constructed single family and multifamily residential structures, including residential structures constructed as part of a mixed use development, shall comply with the following requirements for electric vehicle supply equipment (EVSE). All parking space calculations under this section shall be rounded up to the next full space. The requirements stated in this section are in addition to those contained in Section 4.106.4 of the California Green Building Standards Code. In the event of a conflict between this section and Section 4.106.4 of the California Green Building Standards Code, the more robust EV Charging requirements shall prevail. A4.106.8.1 Definitions. For the purposes of this section, the following definitions shall apply: (a) Level 2 EVSE. “Level 2 EVSE” shall mean an EVSE capable of charging at 30 amperes or higher at 208 or 240 VAC. An EVSE capable of simultaneously charging at 30 amperes for each of two vehicles shall be counted as two Level 2 EVSE. (b) Conduit Only. “Conduit Only” shall mean, at minimum: (1) a panel capable to accommodate a dedicated branch circuit and service capacity to install a 208/240V, 50 amperes grounded AC outlet; and (2) raceway or wiring with capacity to accommodate a 100 ampere circuit; terminating in (3) a listed cabinet, box, enclosure, or NEMA receptacle. The raceway shall be installed so that minimal removal of materials is necessary to complete the final installation. (c) EVSE-Ready Outlet. “EVSE-Ready Outlet” shall mean, at minimum: (1) a panel capable to accommodate a dedicated branch circuit and service capacity to install a 208/240V, 50 amperes grounded AC outlet; (2) a two-pole circuit breaker; (3) raceway with capacity to accommodate 100-ampere circuit; (4) 50 ampere wiring; terminating in (5) a 50 ampere NEMA receptacle in a covered outlet box. (d) EVSE Installed. “EVSE Installed” shall mean an installed Level 2 EVSE. NOT YET APPROVED 18 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code A4.106.8.2 Single Family Residences. The following standards apply to newly constructed detached and attached single family residences. (a) In general. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed for each residence. (b) Location. The proposed location of a charging station may be internal or external to the dwelling, and shall be in close proximity to an on-site parking space consistent with City guidelines, rules, and regulations. A4.106.8.3 Multi-Family Residential Structures. The following standards apply to newly constructed residences in a multi-family residential structure, except as provided in section A4.106.8.4. (a) Resident parking. The property owner shall provide at least one EVSE-Ready Outlet or EVSE Installed for each residential unit in the structure. (b) Guest parking. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed, for at least 25% of guest parking spaces, among which at least 5% (and no fewer than one) shall be EVSE Installed. (c) Accessible spaces. Projects shall comply with the 2016 California Building Code requirements for accessible electric vehicle parking. (d) Minimum total circuit capacity. The property owner shall ensure sufficient circuit capacity, as determined by the Chief Building Official, to support a Level 2 EVSE in every location where Circuit Only, EVSE-Ready Outlet or EVSE Installed is required. (e) Location. The EVSE, receptacles, and/or raceway required by this section shall be placed in locations allowing convenient installation of and access to EVSE. In addition, if parking is deed-restricted to individual residential units, the EVSE or receptacles required by subsection (a) shall be located such that each unit has access to its own EVSE or receptacle. Location of EVSE or receptacles shall be consistent with all City guidelines, rules, and regulations. A4.106.8.4 Exception – Multi-Family Residential Structures with Individual, Attached Parking. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed for each newly constructed residence in a multi-family residential structure featuring: (1) a parking space attached to the residence; and NOT YET APPROVED 19 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code (2) a shared electrical panel between the residence and parking space (e.g., a multi-family structure with tuck-under garages). 16.14.430 Section A5.106.5.3 Electric Vehicle (EV) Charging for Non-Residential Structures. Section A5.106.5.3 of the California Green Building Standards Code is added as mandatory and amended to read: A5.106.5.3 Electric Vehicle (EV) Charging for Non-Residential Structures. New non- residential structures shall comply with the following requirements for electric vehicle supply equipment (EVSE). All parking space calculations under this section shall be rounded up to the next full space. The requirements stated in this section are in addition to those contained in Section 5.106.5.3 of the California Green Building Standards Code. In the event of a conflict between this section and Section 5.106.5.3, the more robust EV Charging requirements shall prevail. A5.106.5.3.1 Definitions. For the purposes of this section, the following definitions shall apply: (a) Level 2 EVSE. “Level 2 EVSE” shall mean an EVSE capable of charging at 30 amperes or higher at 208 or 240 VAC. An EVSE capable of simultaneously charging at 30 amperes for each of two vehicles shall be counted as two Level 2 EVSE. (b) Conduit Only. “Conduit Only” shall mean, at minimum: (1) a panel capable to accommodate a dedicated branch circuit and service capacity to install at least a 208/240V, 50 amperes grounded AC outlet; and (2) raceway or wiring with capacity to accommodate a 100 ampere circuit; terminating in (3) a listed cabinet, box, enclosure, or NEMA receptacle. The raceway shall be installed so that minimal removal of materials is necessary to complete the final installation. (c) EVSE-Ready Outlet. “EVSE-Ready Outlet” shall mean, at minimum: (1) a panel capable to accommodate a dedicated branch circuit and service capacity to install at least a 208/240V, 50 amperes grounded AC outlet; (2) a two-pole circuit breaker; (3) raceway with capacity to accommodate a 100-ampere circuit; (4) 50 ampere wiring; terminating in (5) a 50 ampere NEMA receptacle in a covered outlet box. (d) EVSE Installed. “EVSE Installed” shall mean an installed Level 2 EVSE. NOT YET APPROVED 20 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code A5.106.5.3.2 Non-Residential Structures Other than Hotels. The following standards apply newly constructed non-residential structures other than hotels. (a) In general. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed for at least 25% of parking spaces, among which at least 5% (and no fewer than one) shall be EVSE Installed. (b) Accessible spaces. Projects shall comply with the 2016 California Building Code requirements for accessible electric vehicle parking. (c) Minimum total circuit capacity. The property owner shall ensure sufficient circuit capacity, as determined by the Chief Building Official, to support a Level 2 EVSE in every location where Circuit Only, EVSE-Ready Outlet or EVSE Installed is required. (d) Location. The EVSE, receptacles, and/or raceway required by this section shall be placed in locations allowing convenient installation of and access to EVSE. Location of EVSE or receptacles shall be consistent with all City guidelines, rules, and regulations. A5.106.5.3.3 Hotels. The following standards apply newly constructed hotels. (a) In general. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed for at least 30% of parking spaces, among which at least 10% (and no fewer than one) shall be EVSE Installed. (b) Accessible spaces. Projects shall comply with the 2016 California Building Code requirements for accessible electric vehicle parking. (c) Minimum total circuit capacity. The property owner shall ensure sufficient circuit capacity, as determined by the Chief Building Official, to support a Level 2 EVSE in every location where Circuit Only, EVSE-Ready Outlet or EVSE Installed is required. (d) Location. The EVSE, receptacles, and/or raceway required by this section shall be placed in locations allowing convenient installation of and access to EVSE. Location of EVSE or receptacles shall be consistent with all City guidelines, rules, and regulations. SECTION 2. The Council adopts the findings for local amendments to the California Green Building Standards Code, 2016 Edition, attached hereto as Exhibit “A” and incorporated herein by reference. NOT YET APPROVED 21 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 4. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Development Services ____________________________ Director of Administrative Services NOT YET APPROVED 22 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code Exhibit A FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA GREEN BUILDING STANDARD CODE, 2016 EDITION Section 17958 of the California Health and Safety Code provides that the City may make changes to the provisions in the uniform codes that are published in the California Building Standards Code. Sections 17958.5 and 17958.7 of the Health and Safety Code require that for each proposed local change to those provisions in the uniform codes and published in the California Building Standards Code which regulate buildings used for human habitation, the City Council must make findings supporting its determination that each such local change is reasonably necessary because of local climatic, geological, or topographical conditions. Local building regulations having the effect of amending the uniform codes, which were adopted by the City prior to November 23, 1970, were unaffected by the regulations of Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code. Therefore, amendments to the uniform codes which were adopted by the City Council prior to November 23, 1970, and have been carried through from year to year without significant change, need no required findings. Also, amendments to provisions not regulating buildings used for human habitation, including amendments made only for administrative consistency, do not require findings. Code: Cal Green Section Title Add Deleted Amended Justification (See below for keys) 301 Voluntary tiers added C & E 303.1.2 Cumulative Construction C & E 4.105 Deconstruction Survey C & E 4.304 Outdoor Water Use C 5.105.1 Salvage E 5.106.1.1 Local ordinance C 5.106.8 Light pollution reduction E 5.303.5 Dual Plumbing C 5.304.5 Potable Water Elimination C 5.304.6 Invasive Species E 5.305.1 Non-residential enhanced water budget C 5.410.4.6 Energy STAR portfolio manager C & E 5.410.4.7 Performance reviews – energy C & E 5.410.4.8 Performance reviews – water C & E 702.2 Special Inspection E Appendix A4 Residential Voluntary Measures C & E Appendix A5 Non-Residential Voluntary Measures C & E NOT YET APPROVED 23 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.14 Green Building Stds Code Key to Justification for Amendments to Title 24 of the California Code of Regulations C This amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Building Standards Code is required. Failure to address and significantly reduce greenhouse gas (GHG) emissions could result in rises in sea level, including in San Francisco Bay, that could put at risk Palo Alto homes and businesses, public facilities, and Highway 101 (Bayshore Freeway), particularly the mapped Flood Hazard areas of the City. Energy efficiency is a key component in reducing GHG emissions, and construction of more energy efficient buildings can help Palo Alto reduce its share of the GHG emissions that contribute to climate change. The burning of fossil fuels used in the generation of electric power and heating of buildings contributes to climate change, which could result in rises in sea level, including in San Francisco Bay, that could put at risk Palo Alto homes and businesses 1 public facilities, and Highway 101. Due to decrease in annual rain fall, Palo Alto experiences the effect of drought and water saving more than some other communities in California. E Green building enhances the public health and welfare by promoting the environmental and economic health of the City through the design, construction, maintenance, operation and deconstruction of buildings and sites by incorporating green practices into all development. The green provisions in this Chapter are designed to achieve the following goals: (a) Increase energy efficiency in buildings; (b) Increase water and resource conservation; (c) Reduce waste generated by construction and demolition projects; (d) Provide durable buildings that are efficient and economical to own and operate; ( e) Promote the health and productivity of residents, workers, and visitors to the city; (f) Recognize and conserve the energy embodied in existing buildings; (g) Encourage alternative transportation; and (h) Reduce disturbance of natural ecosystems. G This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for repair of damaged properties following a local emergency. T The City of Palo Alto topography includes hillsides with narrow and winding access, which makes timely response by fire suppression vehicles difficult. Palo Alto is contiguous with the San Francisco Bay, resulting in a natural receptor for storm and waste water run-off. Also the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Code is warranted. NOT YET APPROVED 1 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.08 Plumbing Code Ordinance No. ____ Ordinance of the Council of the City Of Palo Alto Repealing Chapter 16.08 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.08, California Plumbing Code, 2016 Edition, and Local Amendments and Related Findings The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 16.08 of the Palo Alto Municipal Code is hereby amended by repealing in its entirety and adopting a new Chapter 16.08 to read as follows: 16.08 CALIFORNIA PLUMBING CODE 16.08.010 2016 California Plumbing Code adopted. The California Plumbing Code, 2016 Edition, Title 24, Part 5 of the California Code of Regulations together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former California Code of Regulations, Title 24, 2013, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2016. Ordinance No. 5219 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed. Wherever the phrases "California Mechanical Code" or "Mechanical Code" are used in this code or any ordinance of the City, such phrases shall be deemed and construed to refer and apply to the California Mechanical Code, 2016 Edition, as adopted by this Chapter. One copy of the California Plumbing Code, 2016 edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.08.020 2016 California Plumbing Code Appendix Chapters adopted. The following Appendix Chapters of the California Plumbing Code, 2016 Edition, are adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein: A. Appendix A – Recommended Rules for Sizing the Water Supply System // NOT YET APPROVED 2 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.08 Plumbing Code 16.08.030 Cross - References to California Plumbing Code. The provisions of this Chapter contain cross-references to the provisions of the California Plumbing Code, 2016 Edition, in order to facilitate reference and comparison to those provisions. 16.08.040 Violations -- Penalties. Any person, firm or corporation violating any provision of this chapter is guilty of a misdemeanor and upon conviction thereof shall be punished as provided in subsection (a) of Section 1.08.010 of this code. Each separate day or any portion thereof during which any violation of this chapter occurs or continues shall be deemed to constitute a separate offense, and upon conviction thereof shall be punishable as provided in this section. 16.08.050 Enforcement -- Citation authority. The employee positions designated in this section may enforce the provisions of this chapter by the issuance of citations; persons employed in such positions are authorized to exercise the authority provided in Penal Code section 836.5 and are authorized to issue citations for violations of this chapter. The designated employee positions are: (1) chief building official; (2) building inspection supervisor; and (3) code enforcement officer. 16.08.060 Local Amendments. The provisions of this Chapter shall constitute local amendments to the cross-referenced provisions of the California Plumbing Code, 2016 Edition, and shall be deemed to replace the cross-referenced sections of said Code with the respective provisions set forth in this Chapter. 16.08.070 Section 306.3 Palo Alto Sewer Use. Section 306.3 is added to the California Plumbing Code to read: 306.3 Palo Alto Sewer Use. All non-domestic waste shall comply with the City of Palo Alto Sewer Use Ordinance (Palo Alto Municipal Code Chapter 16.09). Where discrepancies exist between the requirements of this code and said ordinance, the provisions of said ordinance shall apply. 16.08.080 Reserved. 16.08.090 Section 701.1, Part 4 Materials. Section 701.1, Part 4 of the California Plumbing Code is amended to read: NOT YET APPROVED 3 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.08 Plumbing Code 701.1 (4) Copper, copper alloys, lead and lead alloys, including brass, shall not be used for building sanitary sewer systems except for domestic waste sink traps and short lengths of associated connecting pipes where alternate materials are not practical. Where permitted by the building official, copper tube for drainage and vent piping shall have a weight of not less than that of copper drainage tube type DWV. 16.08.100 Table 701.1 Materials for Drain, Waste, Vent Pipe and Fittings. Footnote 1 is amended to Table 701.1 to read as follows: 1 For limitations on the use of Brass and Copper (Type DWV) refer to Section 701.1, Part 4. 16.08.110 Section 710.1 Backflow Protection. Section 710.1 of the California Plumbing Code is amended to read: 710.1 Backflow Protection. Fixtures installed on floor levels that are considered ground level or lower shall be protected from backflow of sewage by installing an approved type of backwater valve. Fixtures on such floor levels that are considered second floor or higher shall not discharge through the backwater valve. Cleanouts for drains that pass through a backwater valve shall be clearly identified with a permanent label stating “backwater valve downstream”. Backflow protection shall be installed under the following conditions: 1. All new construction 2. On remodels where plumbing fixtures are added to the property, and/or more than fifty percent of the structure is being remodeled. 3. When any replacement or repair is made to the sanitary sewer lateral. 4. When property has been damaged by the blockage of the city sanitary sewer main. 5. On all structures where a pump is used to lift sewage to the sanitary sewer lateral and city sanitary sewer main. The backflow relief device shall be located to protect the structure from damage in the event the pump is pumping against a closed backflow device. 6. Buildings where the elevation of any floor is at or below the invert of the city sanitary sewer main, or where a condition may exist where a plug in the city sanitary sewer main will cause the hydraulic grade line to rise above the lowest floor level. Failure of the owner to install a backflow prevention device for or as a result of any of the above conditions shall relieve the city of any and all responsibilities for any and all subsequent damage caused by sanitary sewer overflows. NOT YET APPROVED 4 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.08 Plumbing Code 16.08.120 Reserved. 16.08.130 Section 719.7 Cleanouts. Section 719.7 is added to the California Plumbing Code to read: 719.7 A cleanout shall be provided at the point of connection between the building sewer and the city lateral and an approved fitting shall be used to bring the cleanout riser to grade. Where sewer cleanouts are to be connected to existing city laterals, such connections shall be accomplished by use of an approved fitting. 16.08.140 Section 808.2 Cooling Water. Section 808.2 of the California Plumbing Code is added to read: 808.2 Single Pass Cooling Water Systems Prohibited. Clean running water used exclusively as a cooling medium in an appliance, device, or apparatus is prohibited. 16.08.160 Section 1014.1.3 Food Waste Disposal Units and Dishwashers. Section 10.14.1.3 of the California Plumbing Code is amended to read: 1014.1.3 Food Waste Disposal Units and Dishwashers. Unless specifically required or permitted by the Authority Having Jurisdiction, no dishwasher shall be connected to or discharge into any grease interceptor. Commercial Food Waste Disposal Units are prohibited. 16.08.170 Section 1101.3 Material Uses. Section 1101.3 of the California Plumbing Code is amended to read: 1101.3 Material Uses. Rainwater piping placed within the interior of a building or run within a vent or shaft shall be of cast iron, galvanized steel, wrought iron, Schedule 40 ABS DWV, Schedule 40 PVC DWV, stainless steel 304 or 316L (stainless steel 304 pipe and fittings shall not be installed underground and shall be kept not less than six (6) inches (152 mm) aboveground), or other approved materials, and changes in direction shall conform to the requirements of Section 706.0. ABS and PVC DWV piping installations shall be installed in accordance with IS 5 and IS 9. Except for individual single-family dwelling units, materials exposed within ducts or plenums shall have a flame-spread index of a maximum of twenty-five (25) and a smoke-developed index of a maximum of fifty (50), when tested in accordance with the Test for Surface-Burning Characteristics of the Building Materials (see the Building Code standards based on ASTM E 84 and UL 723.). ABS or PVC installations are limited to not more than two stories of areas of residential accommodation. NOT YET APPROVED 5 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.08 Plumbing Code 16.08.180 Section 1105.1.2 Roof Drains (Materials). Section 1105.1.2 of the California Plumbing Code is amended to read: 1105.1.2 Roof drains and conductor/leader’s shall be of cast iron, plastic or other approved materials. SECTION 2. The Council adopts the findings for local amendments to the California Plumbing Code, 2016 Edition, attached hereto as Exhibit “A” and incorporated herein by reference. SECTION 3. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. SECTION 4. This ordinance shall be effective on the commencement of the thirty- first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney City Manager ____________________________ Director of Development Services ____________________________ Director of Administrative Services NOT YET APPROVED 6 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.08 Plumbing Code Exhibit A FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA PLUMBING CODE, 2016 EDITION Section 17958 of the California Health and Safety Code provides that the City may make changes to the provisions in the uniform codes that are published in the California Building Standards Code. Sections 17958.5 and 17958.7 of the Health and Safety Code require that for each proposed local change to those provisions in the uniform codes and published in the California Building Standards Code which regulate buildings used for human habitation, the City Council must make findings supporting its determination that each such local change is reasonably necessary because of local climatic, geological, or topographical conditions. Local building regulations having the effect of amending the uniform codes, which were adopted by the City prior to November 23, 1970, were unaffected by the regulations of Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code. Therefore, amendments to the uniform codes which were adopted by the City Council prior to November 23, 1970, and have been carried through from year to year without significant change, need no required findings. Also, amendments to provisions not regulating buildings used for human habitation, including amendments made only for administrative consistency, do not require findings. Code: CPC Section Title Add Deleted Amended Justification (See below for keys) 306.3 Palo Alto Sewer Use C 701.1, Part4 Materials T Table 701.1 Materials for Drain, Waste, vent Pipe and Fittings T 710.1 Backflow Protection T 719.7 Cleanouts T & G 808.2 Cooling Water C & T 1014.1.3 Food Waste Disposal Units and Dishwashers T 1101.3 Material Uses G T 1105.1.2 Roof Drains (Materials) T Appendix A Recommended Rules for Sizing the Water Supply System C & T NOT YET APPROVED 7 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.08 Plumbing Code Key to Justification for Amendments to Title 24 of the California Code of Regulations This amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Building Standards Code is required. C G T This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for repair of damaged properties following a local emergency. The City of Palo Alto topography includes hillsides with narrow and winding access, which makes timely response by fire suppression vehicles difficult. Palo Alto is contiguous with the San Francisco Bay, resulting in a natural receptor for storm and waste water run-off. Also the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Code is warranted. NOT YET APPROVED 1 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Repealing Chapter 16.06 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.06, California Residential Code, 2016 Edition, and Local Amendments and Related Findings The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 16.06 of Palo Alto Municipal Code is hereby amended by repealing the Chapter in its entirety and adopting a new Chapter 16.06 to read as follows: 16.06.010 2016 California Residential Code adopted. The California Residential Code, 2016 Edition, Title 24, Part 2.5 of the California Code of Regulations, together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former California Code of Regulations, Title 24, 2013, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2016. Ordinance No. 5218 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed. Wherever the phrases "California Residential Code" or "Residential Code" are used in this code or any ordinance of the city, such phrases shall be deemed and construed to refer and apply to the California Residential Code, 2016 Edition, as adopted by this Chapter. One copy of the California Residential Code, 2016 Edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.06.020 2016 California Residential Code Appendix Chapters adopted. The following Appendix Chapters of the California Residential Code, 2016 Edition, are adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein: A. Appendix H – Patio Covers B. Appendix K – Sound Transmission C. Appendix V – Swimming Pool Safety Act ATTACHMENT D NOT YET APPROVED 2 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code 16.06.030 Cross - References to California Residential Code. The provisions of this Chapter contain cross-references to the provisions of the California Residential Code, 2016 Edition, in order to facilitate reference and comparison to those provisions. 16.06.040 Section 1.11.2.1.1 Duties and powers of the enforcing agency/Enforcement is amended with the following language: Section 1.11.2.1.1 Duties and powers of the enforcing agency/Enforcement The responsibility for enforcement of building standards adopted by the State Fire Marshal and published in the California Building Standards Code relating to fire and panic safety and other regulations of the State Fire Marshal shall, except as provided in Section 1.11.2.1.2, be as follows: 1. The city, county or city and county with jurisdiction in the area affected by the standard or regulation shall delegate the enforcement of the building standards relating to fire and panic safety and other regulations of the State Fire Marshal as they relate to Group R-3 occupancies, as described in Section 310.1 of Part 2 of the California Building Standards Code, to both enforcement divisions specific to their areas of enforcement disciplines: 1.1 The chief of the fire authority of the city, county or city and county, or an authorized representative and; 1.2. The chief building official of the city, county or city and county, or an authorized representative. 16.06.050 Violations -- Penalties. Any person, firm or corporation violating any provision of this chapter is guilty of a misdemeanor and upon conviction thereof shall be punished as provided in subsection (a) of Section 1.08.010 of this code. Each separate day or any portion thereof during which any violation of this chapter occurs or continues shall be deemed to constitute a separate offense, and upon conviction thereof shall be punishable as provided in this section. When the building official determines that a violation of this chapter or chapters 16.04, 16.05, 16.08, 16.14, 16.16 or 16.17 of this code has occurred, he/she may record a notice of pendency of code violation with the Office of the County Recorder stating the address and owner of the property involved. When the violation has been corrected, the building official shall issue and record a release of the notice of pendency of code violation. 16.06.060 Enforcement -- Citation authority. The employee positions designated in this section may enforce the provisions of this chapter by the issuance of citations; persons employed in such positions are authorized to exercise the authority provided in Penal Code section 836.5 and are authorized to issue citations for NOT YET APPROVED 3 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code violations of this chapter. The designated employee positions are: (1) chief building official; (2) building inspection supervisor; and (3) code enforcement officer. 16.06.070 Local Amendments. The provisions of this Chapter shall constitute local amendments to the cross-referenced provisions of the California Residential Code, 2016 Edition, and shall be deemed to replace the cross-referenced sections of said Code with the respective provisions set forth in this Chapter. 16.06.080 Reserved. 16.06.090 Section R105.1.2 Demolition permits is added to read: Section R105.1.2 Demolition Permits. In addition to other requirements of law, every person seeking a permit to demolish a unit used for residential rental purposes shall furnish an affidavit or declaration under penalty of perjury that the unit proposed to be demolished is vacant, or that notice to vacate has been given to each tenant lawfully in possession thereof as required by law or by the terms of such tenancy. No work or demolition shall begin upon any portion of such a unit until each and every portion has been vacated by all tenants lawfully in possession thereof. 16.04.100 Section R105.5 Expiration is amended to read: R105.5 Expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within 180 days after its issuance, or if the work authorized on the site by such permit is suspended or abandoned for a period of 180 days after the time the work is commenced. The chief building official is authorized to grant, in writing, one or more extensions of time, for periods not more than 180 days each and may require; 1) that the construction documents be revised to partially or fully comply with current codes, and 2) payment of a fee. Extensions shall be requested in writing and justifiable cause demonstrated. For the purpose of this section, failure to progress a project to the next level of required inspection shall be deemed to be suspension of the work. 16.06.110 Section R108.5 Refunds is amended to read: R108.5 Refunds. The building official or permit center manager may authorize the refund of any fee paid hereunder which was erroneously paid or collected. The building official or permit center manager may authorize the refund of not more than eighty percent (80%) of the permit fee paid when no work has occurred under a permit issued NOT YET APPROVED 4 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code pursuant to this Chapter. The building official or permit center manager may authorize the refund of not more than eighty percent (80%) of the Plan Review Fee paid when a permit application is withdrawn or canceled before any plan review work has started. 16.06.120 Section R109.1.3 Floodplain Inspection is amended to read: R109.1.3 Floodplain Inspections. In flood hazard areas, upon placement of the lowest floor, including the basement, and prior to further vertical construction, the elevation certification shall be submitted to City Public Works Engineering for inspection approval prior to foundation inspection by city building inspection. 16.06.130 Section R109.5 Re-Inspection Fees Assessed/Authorized is added to read: R109.5 Re-Inspection Fees. A Re-Inspection Fee may be assessed/authorized by the building official or building inspection supervisor for each re-inspection required when work for which an inspection is requested is not ready for inspection or when required corrections noted during prior inspections have not been completed. A “Re-Inspection Fee” may be assessed/authorized when; 1. The inspection record card is not posted or otherwise available on the work site, 2. The approved plans are not readily available for the inspector at the time of inspection, 3. The inspector is unable to access the work at the time of inspection, or; 4. When work has substantially deviated from the approved plans without the prior approval of the building official. 5. When a Re-Inspection Fee is assessed, additional inspection of the work will not be performed until the fee has been paid. 16.06.140 Section R110.1 Use and Occupancy is amended to read: R110.1 Use and Occupancy. No building or structure shall be used or occupied, and no change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building official has issued a certificate of occupancy therefor as provided herein. Issuance of a certificate of occupancy shall not be construed as an approval of a violation of the provisions of this code or of other ordinances of the jurisdiction. Exception: Certificates of occupancy are not required for work exempt from permits under Section 105.2: 1. Group R - Division 3 occupancies 2. Group U occupancies 16.06.150 Section R202 amended – Definitions added. Section R202 of the California Residential Code is amended to include the following definitions: NOT YET APPROVED 5 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code DUAL SENSOR PHOTOELECTRIC/IONIZATION SMOKE DETECTOR OR ALARM. A smoke alarm or detector that utilizes both photoelectric and ionization methods in a single device. DUAL SENSOR CARBON MONOXIDE AND SMOKE ALARM. A combination carbon monoxide and smoke alarm or detector that senses both smoke and CO in a single device. PHOTOELECTRIC SMOKE DETECTOR OR ALARM. A smoke alarm or detector that uses a light-source to detect the presence of smoke. WILDLAND-URBAN INTERFACE FIRE AREA is a geographical area identified by the State of California as a “Fire Hazard Severity Zone” in accordance with Public Resources Code Sections 4201 through 4202 and Government Code Sections 51175 through 51189, or other areas designated by the enforcing agency to be at a significant risk from wildfires. Within the city limits of the City of Palo Alto, “Wildland-Urban Fire Interface Area” shall also include all areas west of Interstate 280, and all other areas recommended as a “Very High Fire Hazard Severity Zone” by the Director of the California Department of Forestry. 16.06.160 Table 301.2(1) Climatic and Geographic Design Criteria: Section Table 301.2(1) of the California Residential Code is added to read: TABLE R301.2(1) CLIMATIC AND GEOGRAPHIC DESIGN CRITERIA GROUND SNOW LOAD WIND DESIGN SEISMIC DESIGN CATEGORY SUBJECT TO DAMAGE FROM Speed (mph) Topographic effects Weathering Frost line depth Termite 0 85 No D1 thru E Negligible 5” Very High WINTER DESIGN TEMP. (OF) ICE BARRIER UNDERLAYEMENT REQUIRED FLOOD HAZARDS AIR FREEZING INDEX MEAN ANNUAL TEMP. (OF) 40 No See Footnotes n thru p 0 55 n The City of Palo Alto entered National Flood Insurance Program in 1979. o The effective date of the current Flood Insurance Study and Flood Insurance Rate Map is May 18, 2009. p The panel numbers and dates of all currently effective FIRMs and FBFMs: 06085CIND0A, 06085C0010H, 06085C0015H through 06085C0019H, 06085C0030H, 06085C0036H , 06085C0038H , 06085C0180H , 06085C0185H ( May 18, 2009 for all) NOT YET APPROVED 6 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code 16.06.170 Section R310.2.3.3 Window Well Fall Protection: Section R310.2.3.3 of the California Residential Code is added to read: R310.2.3.3 Window Well Fall Protection. Window wells with a vertical depth greater than 30 inches shall have guards on all sides. The guards shall be provided in accordance with Section R312.1. Openings shall comply with Section R312.1.3. Access ladder shall comply with Section R310.2.1 and shall extend from the bottom of the well to the top of the guard. 16.06.180 Section R310.4.1 Security Bars: Section R310.4.1 of the California Residential Code is added to read: R310.4.1 Security Bars. Fire Department plan check review and approval of all security bar submittals shall be required prior to the issuance of a Building Permit. 16.06.190 Section R313.2 One- and two-family dwellings automatic fire sprinkler systems. Section R313.2 of the California Residential Code is amended to read: R313.2 One- and two-family dwellings automatic fire sprinkler systems. Approved automatic sprinkler systems in new buildings and structures and in existing modified buildings and structures, shall be provided in the locations described in this section. Automatic fire sprinklers shall be installed per the requirements set forth in Sections 903.2.1 through 903.2.18 and as follows, whichever is the more restrictive: 1. An automatic sprinkler system shall be provided throughout all new buildings and structures. Exception: New residential occupancies, buildings or structures that do not exceed 350 square feet of building area. 2. An automatic sprinkler system shall be provided for all existing buildings or structures where modifications have been determined by the Building Official to trigger requirements for seismic retrofit. 3. An automatic sprinkler system shall be provided throughout all existing buildings when modifications are made that create an increase in fire area to more than 3600 square feet or when the addition is equal or greater than 50% of the existing building square footage whichever is more restrictive. NOT YET APPROVED 7 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code 4. An automatic sprinkler system shall be provided throughout all new basements regardless of size and throughout existing basements that are expanded by more than 50% or is conditioned for use. If the addition is only the basement, then only the basement is required to be fire sprinkler protection. 5. An automatic sprinkler system shall be installed throughout when either the roof structure or exterior wall structure have been removed and/ or replaced by at least 50% of the existing structure. 6. An automatic sprinkler system shall be installed throughout when any change in use or occupancy creating a more hazardous fire/life safety condition, as determined by the Fire Chief. 16.04.193 Section R313.1.1 – Design and installation Section R313.1.1 of the California Residential Code is amended to read as follows: R313.1.1 Design and installation. Where allowed, automatic sprinkler systems installed in townhouses shall be installed throughout in accordance with NFPA 13D and State and local standards. 16.04.195 Section R313.2.1 – Design and installation Section R313.2.1 of the California Residential Code is amended to read as follows: R313.2.1 Design and installation. R313.2.1 Design and installation. Where allowed, automatic sprinkler systems installed in one-and two-family detached dwellings shall be installed throughout in accordance with NFPA 13D and Stat and local standards. 16.06.200 Section R314.1– Smoke detection and notification. Section R314.1 of the California Residential Code is amended to read: R314.1 Smoke detection and notification. Listed single- and multiple-station smoke alarms complying with UL 217 shall be installed in accordance with the California Fire Code Sections 907.2.11.1 through 907.2.11.5 and manufacturer’s installation and use instructions. Smoke alarms and smoke detectors shall be in compliance with this code or subject to the provisions of the Health and Safety Code, they shall also be listed and approved for rapid response to smoldering synthetic materials. All smoke alarms or detectors shall be of the photoelectric type or shall have equivalent detection capabilities in compliance with UL 217. NOT YET APPROVED 8 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code Exception: A combination photoelectric/ionization smoke alarm or detector may be used if located no closer than 20 feet to a kitchen, bathroom, fireplace or woodburning stove. 16.06.205 Section R319.1 Address Numbers. The following subsections are added to Section R319.1 of the California Residential Code: R319.1.1 Address illumination. Address identification required by Section R319.1 shall be illuminated. R319.1.2 Address identification size. Address numbers and letters shall be sized as follows: 1. When the structure is between thirty-six (36) and fifty (50) feet from the road or other emergency means of access, a minimum of one-half inch (0.5”) stroke by six inches (6”) high is required. 2. When the structure is fifty (50) or more feet from the road or other emergency means of access, a minimum of one inch (1”) stroke by nine inches (9”) high is required. 16.06.210 Section R322.1 – General. The following paragraph is added to Section R322.1 of the California Residential Code: Palo Alto Flood Hazard Regulations. Notwithstanding the provisions of this section, all construction or development within a flood hazard area (areas depicted as a Special Flood Hazard Area on Flood Insurance Rate Maps published by the Federal Emergency Management Agency) shall comply with the City of Palo Alto Flood Hazard Regulations (Palo Alto Municipal Code Chapter 16.52). Where discrepancies exist between the requirements of this code and said regulations, the provisions of said regulations shall apply. 16.06.220 Section R327.1.5 Vegetation management compliance. Section R327.1.5 of the California Residential Code is amended to read: R327.1.5 Vegetation management compliance. Prior to building permit final approval, the property shall be in compliance with the vegetation management requirements prescribed-in California Fire Code section 4906, including California Public Resources Code 4291 or California Government Code Section 51182. Acceptable methods of compliance inspection and documentation shall be determined by the enforcing agency and may include any of the following: 1. Local, state, or federal fire authority or designee authorized to enforce vegetation management requirements. 2. Enforcing agency - City of Palo Alto Fire Inspection shall inspect the aforementioned NOT YET APPROVED 9 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code requirements and indicate compliance prior to building division final inspection sign- off. 3. Third party inspection and certification authorized to enforce vegetation management requirements. 4. Property owner certification authorized by the enforcing agency. 16.06.230 Section R403.1.3 Seismic Reinforcing. Section R403.1.3 of the California Residential Code is amended to read: R403.1.3 Seismic reinforcing. Concrete footings located in Seismic Design Categories D0, D1 and D2, as established in Table R301.2.2.1.1 , shall have minimum reinforcement of at least three continuous longitudinal reinforcing bars, one top and two bottom and not smaller than No. 4 bars. Bottom reinforcement shall be located a minimum of 3 inches (76 mm) clear from the bottom of the footing. In Seismic Design Categories D0, D1 and D2 where a construction joint is created between a concrete footing and a stem wall, a minimum of one No. 4 bar shall be installed at not more than 4 feet (1219 mm) on center. The vertical bar shall extend to 3 inches (76 mm) clear of the bottom of the footing, have a standard hook and extend a minimum of 14 inches (357 mm) into the stem wall. In Seismic Design Categories D0, D1 and D2 where a grouted masonry stem wall is supported on a concrete footing and stem wall, a minimum of one No. 4 bar shall be installed at not more than 4 feet (1219 mm) on center. The vertical bar shall extend to 3 inches (76 mm) clear of the bottom of the footing and have a standard hook. In Seismic Design Categories D0, D1 and D2 masonry stem walls without solid grout and vertical reinforcing are not permitted. 16.06.240 Section R403.1.8 – Foundations on expansive soils. Section R403.1.8 of the California Residential Code is amended to read: R403.1.8 Foundations on expansive soils. Foundations and floor slabs for buildings located on expansive soils shall be designed in accordance with Section 1808.6 or Table 1809.7 of the California Building Code. Table 1809.7 of the California Building Code is added and amended to read: // // NOT YET APPROVED 10 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code TABLE 1809.7 Prescriptive Footings Supporting Walls of Light-Frame Constructionabcd Number of Floors Supported by the Footing e Thickness of Foundation Wall (inches) Width of Footing (inches) Thickness of Footing (inches) Depth of Foundation Below Natural Surface of Ground or Finish Grade (inches) 1&2 8 15 8 20 3 8 18 8 30 Group U Occupancies 8 12 8 12 a) The ground under the floor shall be permitted to be excavated to the elevation of the top of the footing. b) Interior stud-bearing walls shall be permitted to be supported by isolated footings. The footing width and length shall be twice the width shown in this table, and footings shall be spaced not more than 6 feet on center. c) See Section 1905 of California Building Code for additional requirements for concrete footings of structures assigned to Seismic Design Category C, D, E or F. d) All foundations as required in the above Table shall be continuous and have a minimum of three #4 bars of reinforcing steel, except for one story, detached accessory buildings of Group U occupancy where two bars are required. e) Footings shall be permitted to support a roof in addition to the stipulated number of floors. Footings supporting roof only shall be as required for supporting one floor. 16.06.245 Section R504.3.1 Projections exposed to weather. Section R504.3.1 of the California Residential Code is amended to read: R504.3.1 Projections exposed to weather. Floor projections exposed to the weather and sealed underneath, including but not limited to balconies, landings, decks, and stairs shall be constructed of naturally durable wood, preservative-treated wood, corrosion-resistant (e.g. galvanized) steel, or similar approved materials. // NOT YET APPROVED 11 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code 16.06.250 Table R602.10.3(3) – Bracing Requirements Based on Seismic Design Category. Footnote e is added to Table R602.10. 3(3) to read as follows: e. In Seismic Design Categories D0, D1 and D2, Methods GB and PCP are not permitted. 16.06.253 Section R703.8.5.1 Locations. Section R703.8.1 of the California Residential Code is added to read: R703.8.5.1 Locations. Flashing shall be installed at wall and roof intersections, gutters, wherever there is a change in roof slope or direction, and around roof openings. Where flashing is of metal, the metal shall be corrosion resistant with a thickness of not less than 0.019 inches (0.483 mm) (e.g. no. 26 galvanized sheet) and shall be primed and painted. 16.06.255 Section R806.6 Ventilation of weather-exposed enclosed assemblies. Section R806.6 of the California Residential Code is added to read: R806.6 Ventilation of weather-exposed enclosed assemblies. Exterior projecting elements and appurtenances exposed to the weather and sealed underneath, including but not limited to balconies, landings, decks, and stairs, shall have cross ventilation for each separate enclosed space by ventilation openings protected against the entrance of rain and snow. Blocking and bridging shall be arranged so as not to interfere with the movement of air. The net free ventilating area shall not be less than 1/150th of the area of the space ventilated. Ventilation openings shall comply with Section R806.1 . An access panel of sufficient size shall be provided on the underside of the enclosed space to allow for periodic inspection. Exceptions: 1. An access panel is not required where the exterior coverings applied to the underside of joists are easily removable using only common tools. 2. Removable soffit vents 4 inches minimum in width can be used to satisfy both ventilation and access panel requirements. 16.06.260 Section R902.1.4 – Roofing requirements in a Wildland-Urban Interface Fire Area. Section R902.1.4 of the California Residential Code is amended to read: R902.1.4 Roofing requirements in a Wild Land-Urban Interface Fire Area. The entire roof covering on new structures and existing structures on which more than 50 percent of the total roof area is replaced within any one-year period, and any roof covering applied in the alteration, repair or replacement of roofs on existing structures, shall be a fire-retardant roof covering that is at least Class A. Roofing requirements for structures located in a Wildland-Urban Interface Fire Area shall also comply with Section R327.5. // NOT YET APPROVED 12 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code 16.06.270 Section R1003.9.2.1 – Repairs, replacements and alterations. Section R1003.9.2.1 is added to the California Residential Code to read: R1003.9.2.1 Repairs, replacements and alterations. When any repair, replacement or alteration to the roof of an existing structure is performed, a spark arrester shall be installed on the existing chimney in accordance with Section R1003.9.2. SECTION 2. The Council adopts the findings for local amendments to the California Residential Code, 2013 Edition, attached hereto as Exhibit “A” and incorporated herein by reference. SECTION 3. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Development Services ____________________________ Director of Administrative Services NOT YET APPROVED 13 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code Exhibit A FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA RESIDENTIAL CODE (CRC) Section 17958 of the California Health and Safety Code provides that the City may make changes to the provisions of the California Building Standards Code. Sections 17958.5 and 17958.7 of the Health and Safety Code require that for each proposed local change to those provisions of the California Building Standards Code which regulate buildings used for human habitation, the City Council must make findings supporting its determination that each such local change is reasonably necessary because of local climatic, geological, or topographical conditions. Code: CRC Section Title Add Deleted Amended Justification (See below for keys) R 202 Definition (Dual Sensor Carbon Monoxide and Smoke Alarm) T Table R301.2(1) Climatic and Geographic Design Criteria C, G, T R310.2.3.3 Window Well Fall Protection T R 310.4.1 Security Bars T R313.1.1 Design and installation T R 313.2 One and Two Family Dwellings Automatic Spr. Syst. T R313.2.1 Design and installation T R313.3.1.1 Required sprinkler locations T R 314.1 Smoke Detection and Notification C, T R 319.1 Address Identification T R 322.1 Flood Hazard Regulations T R 327.1.5 Vegetation Management Compliance T R403.1.3 Seismic Reinforcing G R 403.1.8 Foundation on expansive Soils G, T R 504.3.1 Projections exposed to weather G, T Table R602.10.3(3) Bracing Requirements Based on Seismic Design Category G R 703.8.5.1 Flashing Locations T R 806.6 Ventilation of Weather-Exposed, Enclosed Assemblies G, T R902.1.4 Roofing Requirements in Wildland- Urban Interface Fire Area T NOT YET APPROVED 14 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cycle) ORD Amending Ch 16.06 Residential Code R1003.9.2.1 Repairs, Replacements and Alterations T Appendix H Patio Covers C Appendix K Sound Transmission C Appendix V Swimming Pool Safety Act C, G Key to Justification for Amendments to Title 24 of the California Code of Regulations This amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Building Standards Code is required. C G T This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for repair of damaged properties following a local emergency. The City of Palo Alto topography includes hillsides with narrow and winding access, which makes timely response by fire suppression vehicles difficult. Palo Alto is contiguous with the San Francisco Bay, resulting in a natural receptor for storm and waste water run-off. Also the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Code is warranted. NOT YET APPROVED 1 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.16 Electrical Code Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Repealing Chapter 16.16 of the Palo Alto Municipal Code And Amending Title 16 to Adopt a New Chapter 16.16, California Electrical Code, 2016 Edition, and Local Amendments and Related Findings The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 16.16 of the Palo Alto Municipal Code is hereby amended by repealing in its entirety 16.16 and adopting a new Chapter 16.16 to read as follows: 16.16 CALIFORNIA ELECTRICAL CODE 16.16.010 2016 California Electrical Code adopted. The California Electrical Code, 2016 Edition, Title 24, Part 4 of the California Code of Regulations together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former California Code of Regulations, Title 24, 2013, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2016. Ordinance No. 5221 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed. Wherever the phrases "California Electrical Code" or "Electrical Code" are used in this code or any ordinance of the City, such phrases shall be deemed and construed to refer and apply to the California Electrical Code, 2016 Edition, as adopted by this Chapter. One copy of the California Electrical Code, 2016 edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.16.020 2016 California Electrical Code Annex Chapters adopted. The following Annex Chapters of the California Electrical Code, 2016 Edition, are adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein: A. Annex B – Application Information for Ampacity Calculations B. Annex C – Conduit and Tubing Fill Tables for Conductors and Fixture Wires of the Same Size C. Annex I – Unit Recommended Tightening Torque Tables from UL Standard 486A-B ATTACHMENT E NOT YET APPROVED 2 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.16 Electrical Code 16.16.030 Cross - References to California Electrical Code. The provisions of this Chapter contain cross-references to the provisions of the California Electrical Code, 2016 Edition, in order to facilitate reference and comparison to those provisions. 16.16.040 Section 89.102.2.3 Third Party Field Evaluation. Section 89.102.2.3 is added to read: 89.102.2.3 Third-Party Field Evaluation. City of Palo Alto approved applications for Third-Party Field Evaluators shall be submitted for each project submitting evaluation reports on Electrical Systems and others as required for these types of reports. Educational background, training experience, professional licenses, registrations or certificates, and other applicable qualifications for each key personnel shall include information as required and defined in NFPA 790 and 791 including but not limited to: a. Technical Manager, direct Supervisor of FEB operations, and individual(s) managing the management system, minimum competency for personnel completing Field Evaluation projects, including educational background, experience, training, and professional registration. b. Provide information on the basic evaluation process to the building official in determining the adequacy and completeness of submitted evaluations and evaluation reports. 16.16.050 Section 110.13 Mounting and Cooling of Equipment. Section 110.13 (A) (1) is added to read: 110.13 (A) (1) Slab-On-Grade Supporting Electrical Equipment. When electrical equipment is proposed to be installed, including temporary electrical for construction, in locations where the deleterious effects of the environment may create adverse maintenance issues with ground mounted electrical equipment a concrete slab-on- grade shall be installed to elevate, protect, and attach equipment to per City of Palo Alto Electrical Utilities Standards or approved engineering design. 16.16.060 Violations -- Penalties. Any person, firm or corporation violating any provision of this chapter is guilty of a misdemeanor and upon conviction thereof shall be punished as provided in subsection (a) of Section 1.08.010 of this code. Each separate day or any portion thereof during which any violation of this chapter occurs or continues shall be deemed to constitute a separate offense, and upon conviction thereof shall be punishable as provided in this section. // NOT YET APPROVED 3 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.16 Electrical Code 16.16.070 Enforcement -- Citation authority. The employee positions designated in this section may enforce the provisions of this chapter by the issuance of citations; persons employed in such positions are authorized to exercise the authority provided in Penal Code section 836.5 and are authorized to issue citations for violations of this chapter. The designated employee positions are: (1) chief building official; (2) building inspection supervisor; and (3) code enforcement officer. 16.16.080 Local Amendments. The provisions of this Chapter shall constitute local amendments to the cross-referenced provisions of the California Electrical Code, 2016 Edition, and shall be deemed to replace the cross-referenced sections of said Code with the respective provisions set forth in this Chapter. SECTION 2. The Council adopts the findings for local amendments to the California Electrical Code, 2016 Edition, attached hereto as Exhibit “A” and incorporated herein by reference. SECTION 3. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. // // // // // // // // // // // NOT YET APPROVED 4 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.16 Electrical Code SECTION 4. This ordinance shall be effective on the commencement of the thirty- first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney City Manager ____________________________ Director of Development Services ____________________________ Director of Administrative Services NOT YET APPROVED 5 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.16 Electrical Code Exhibit A FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA ELECTRICAL CODE, 2016 Section 17958 of the California Health and Safety Code provides that the City may make changes to the provisions of the California Building Standards Code. Sections 17958.5 and 17958.7 of the Health and Safety Code require that for each proposed local change to those provisions of the California Building Standards Code which regulate buildings used for human habitation, the City Council must make findings supporting its determination that each such local change is reasonably necessary because of local climatic, geological, or topographical conditions. Local building regulations having the effect of amending the uniform codes, which were adopted by the City prior to November 23, 1970, were unaffected by the regulations of Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code. Therefore, amendments to the uniform codes which were adopted by the City Council prior to November 23, 1970, and have been carried through from year to year without significant change, need no required findings. Also, amendments to provisions not regulating buildings used for human habitation do not require findings. Code: CEC Section Title Add Justification (See below for keys) 110.13 (A) Mounting and Cooling of Equipment C Annex B Application Information for Ampacity Calculations G Annex C Conduit and Tubing Fill Tables for Conductors and Fixture Wires of the Same Size G Annex I Unit Recommended Tightening Torque Tables from UL Standard 486A-B G NOT YET APPROVED 6 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 16.16 Electrical Code Key to Justification for Amendments to Title 24 of the California Code of Regulations This amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Building Standards Code is required. C G T This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for repair of damaged properties following a local emergency. The City of Palo Alto topography includes hillsides with narrow and winding access, which makes timely response by fire suppression vehicles difficult. Palo Alto is contiguous with the San Francisco Bay, resulting in a natural receptor for storm and waste water run-off. Also the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Code is warranted. NOT YET APPROVED 1 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-09-14 (2016 Code Cycle) ORD Amending Ch 16.05 Mechanical Code Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Repealing Chapter 16.05 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.05, California Mechanical Code, 2016 Edition, and Local Amendments and Related Findings The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 16.05 of the Palo Alto Municipal Code is hereby amended by repealing in its entirety 16.05 and adopting a new Chapter 16.05 to read as follows: 16.05 CALIFORNIA MECHANICAL CODE 16.05.010 2016 California Mechanical Code adopted. The California Mechanical Code, 2016 Edition, Title 24, Part 4 of the California Code of Regulations together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former California Code of Regulations, Title 24, 2013, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2016. Ordinance No. 5217 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed. Wherever the phrases "California Mechanical Code" or "Mechanical Code" are used in this code or any ordinance of the City, such phrases shall be deemed and construed to refer and apply to the California Mechanical Code, 2016 Edition, as adopted by this Chapter. One copy of the California Mechanical Code, 2016 edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.05.020 2016 California Mechanical Code Appendix Chapters adopted. The following Appendix Chapters of the California Mechanical Code, 2016 Edition, are adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein: A.Appendix B – Procedures to be Followed to Place Gas Equipment in Operation B.Appendix C – Installation and testing of Oil (Liquid) Fuel‐Fired Equipment C.Appendix F – Sizing of Venting Systems Attachment F NOT YET APPROVED 2 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-09-14 (2016 Code Cycle) ORD Amending Ch 16.05 Mechanical Code 16.05.030 Cross ‐ References to California Mechanical Code. The provisions of this Chapter contain cross‐references to the provisions of the California Mechanical Code, 2016 Edition, in order to facilitate reference and comparison to those provisions. 16.05.040 Violations ‐‐ Penalties. Any person, firm or corporation violating any provision of this chapter is guilty of a misdemeanor and upon conviction thereof shall be punished as provided in subsection (a) of Section 1.08.010 of this code. Each separate day or any portion thereof during which any violation of this chapter occurs or continues shall be deemed to constitute a separate offense, and upon conviction thereof shall be punishable as provided in this section. 16.05.050 Enforcement ‐‐ Citation authority. The employee positions designated in this section may enforce the provisions of this chapter by the issuance of citations; persons employed in such positions are authorized to exercise the authority provided in Penal Code section 836.5 and are authorized to issue citations for violations of this chapter. The designated employee positions are: (1) chief building official; (2) building inspection supervisor; and (3) code enforcement officer. 16.05.060 Local Amendments The provisions of this Chapter shall constitute local amendments to the cross‐referenced provisions of the California Mechanical Code, 2016 Edition, and shall be deemed to replace the cross‐referenced sections of said Code with the respective provisions set forth in this Chapter. SECTION 2. The Council adopts the findings for local amendments to the California Mechanical Code, 2016 Edition, attached hereto as Exhibit “A” and incorporated herein by reference. SECTION 3. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. // // // NOT YET APPROVED 3 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-09-14 (2016 Code Cycle) ORD Amending Ch 16.05 Mechanical Code SECTION 4. This ordinance shall be effective on the commencement of the thirty‐ first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Development Services ____________________________ Director of Administrative Services NOT YET APPROVED 4 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-09-14 (2016 Code Cycle) ORD Amending Ch 16.05 Mechanical Code Exhibit A FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA MECHANICAL CODE, 2016 Section 17958 of the California Health and Safety Code provides that the City may make changes to the provisions of the California Building Standards Code. Sections 17958.5 and 17958.7 of the Health and Safety Code require that for each proposed local change to those provisions of the California Building Standards Code which regulate buildings used for human habitation, the City Council must make findings supporting its determination that each such local change is reasonably necessary because of local climatic, geological, or topographical conditions. Local building regulations having the effect of amending the uniform codes, which were adopted by the City prior to November 23, 1970, were unaffected by the regulations of Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code. Therefore, amendments to the uniform codes which were adopted by the City Council prior to November 23, 1970, and have been carried through from year to year without significant change, need no required findings. Also, amendments to provisions not regulating buildings used for human habitation do not require findings. Code: CMC Section Title Add Justification (See below for keys) Appendix B Procedures to be Followed to Place Gas Equipment in Operation G Appendix C Installation and testing of Oil (Liquid) Fuel‐Fired Equipment G Appendix F Sizing of Venting Systems C NOT YET APPROVED 5 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-09-14 (2016 Code Cycle) ORD Amending Ch 16.05 Mechanical Code Key to Justification for Amendments to Title 24 of the California Code of Regulations This amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Building Standards Code is required. C G T This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for repair of damaged properties following a local emergency. The City of Palo Alto topography includes hillsides with narrow and winding access, which makes timely response by fire suppression vehicles difficult. Palo Alto is contiguous with the San Francisco Bay, resulting in a natural receptor for storm and waste water run‐off. Also the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Code is warranted. NOT YET APPROVED 1 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code Ordinance No. ____ Adoption of an Ordinance Repealing Chapters 15.04 and 15.05 and Reenacting Chapter 15.04 of the Palo Alto Municipal Code to Adopt the 2016 Edition of the California Fire Code, With Local Amendments and Related Findings The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Title 15 of the Palo Alto Municipal Code is hereby amended by repealing in their entirety Chapters 15.04 and 15.05 and enacting a new Chapter 15.04 to read as follows: 15.04 CALIFORNIA FIRE CODE 15.04.010 Adoption of the California Fire Code. The California Fire Code, 2016 Edition, as adopted by the California Code of Regulations Title 24, Part 9, and Appendices B, C, D, E, F, G, H, and K is adopted as herein amended. One copy of the California Fire Code is on file and open to public inspection in the Office of the City Clerk. Additional copies of the secondary codes set forth within the California Fire Code, and the amendments set forth in this chapter, are on file and open to public inspection in the fire department administrative office. Whenever the phrase “California Fire Code” appears in this code or in any ordinance of the city, such phrase shall be deemed and construed to refer to and apply to the “California Fire Code, 2016 Edition” as adopted by the California Code of Regulations Title 24, Part 9 and as adopted and amended by this chapter. 15.04.015 Section 102.5 amended – Application of residential code. Section 102.5 of the California Fire Code is amended to read as follows: 102.5 Application of residential code. Where structures are designed and constructed in accordance with the California Residential Code, the provisions of this code shall apply as follows: 1.Construction and design provisions: Provisions of this code pertaining to the exterior of the structure shall apply including, but not limited to, premises identification, fire apparatus access and water supplies. Provisions of this code pertaining to the interior of the structure shall apply when specifically required by this code including, but not limited to, Sections 903.2 through 903.3.7 and Section 907.2.10. Where interior or exterior systems or devices are installed, construction permits required by Section 105.7 of this code shall also apply. 2.Administrative, operational and maintenance provisions: all such provisions of this code shall apply. ATTACHMENT G NOT YET APPROVED 2 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code TYPE OF GAS AMOUNT (cubic feet)2 X 0.0283 for m3 Corrosive 200 Flammable (except cryogenic and liquefied petroleum gases) 200 Highly toxic Any amount Inert and simple asphyxiant 6,000 Irritant 200 Moderately toxic 20 Other health hazards 650 Oxidizing (including oxygen) 504 Pyrophoric Any amount Radioactive Any amount Sensitizer 200 Toxic Any Amount Unstable (reactive) Any amount 15.04.017 Section 103.2 deleted. Section 103.2 of the California Fire Code is deleted. 15.04.020 Sections 105.3.9 and 105.3.10 added- Permits/Permit fees. Sections 105.3.9 and 105.3.10 are added to the California Fire Code to read as follows: 105.3.9 Permits/Permit fees. All permit fees shall be established by the City Council as set forth in the municipal fee schedule. 105.3.10 Operational Permits. Operational permits are valid for one year at which time they must be renewed by paying a fee specified in the municipal fee schedule. 15.04.030 Table 105.6.8 amended - Permit amounts for compressed gases. Table 105.6.8 of the California Fire Code is amended to read as follows: TABLE 105.6.8 PERMIT AMOUNTS FOR COMPRESSED GASES1 For SI: 1 cubic foot = 0.02832m3. 1 Refer to Chapters 27, 30, 32, 35, 37, 40 and 41 for additional requirements and exceptions. 2 Cubic feet measured at normal Temperature and pressure. // // NOT YET APPROVED 3 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 15.04.040 Table 105.6.20 amended - Permit amounts for hazardous materials. Table 105.6.20 of the California Fire Code is amended to read as follows: TABLE 105.6.20 PERMIT AMOUNTS FOR HAZARDOUS MATERIALS1 TYPE OF MATERIAL AMOUNT Carcinogens 10 pounds Combustible liquids See Section 105.6.16 Corrosive materials: Gases Liquids Solids See Section 105.6.8 55 gallons 500 pounds Cryogens See Section 105.6.10 Explosive materials See Section 105.6.14 Flammable materials: Gases Liquids Solids See Section 105.6.8 See Section 105.6.16 10 pounds Highly toxic materials: Gases Liquids Solids Any amount Any amount Any amount Moderately toxic gas 20 cubic feet Organic peroxides: Liquids: Class I-IV Liquids: Class V Solids: Class I-IV Solids: Class V Any Amount No Permit Required Any Amount No Permit Required Oxidizing materials: Gases Liquids Solids: 504 Cubic Feet Any amount Any amount Other health Hazards: Liquids 55 gallons 500 pounds Pyrophoric materials: Gases Liquids Solids Any amount Any amount Any amount NOT YET APPROVED 4 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code Radioactive materials: Gases Liquids Solids Any Amount See Section 105.6.47 See Section 105.6.47 Toxic materials: Gases Liquids Solids Any amount Any amount Any amount Unstable (reactive) materials: Gases Liquids Solids Any amount Any amount Any amount Water reactive materials: Liquids Solids Any amount Any amount For SI: 1 gallon = 3.785 L, 1 pound = 0.454kg. a. 20 gallons when Table 2703.1.1(1) Note k applies and hazard identification signs in accordance with Section 2703.5 are provided for quantities of 20 gallons or less. b. 200 pounds when Table 2703.1.1(1) Note k applies and hazard identification signs in accordance with Section 2703.5 are provided for quantities of 200 pounds or less. 15.04.050 Sections 105.6.48 and 105.6.49 added – Permits required. Sections 105.6.48 and 105.6.49 are added to the California Fire Code to read as follows: 105.6.48 Radioactive materials. To store or handle at any installation more than one microcurie (37,000 becquerel) of radioactive material not contained in a sealed source or more than 1 millicurie (37,000,000 becquerel) of radioactive material in a sealed source or sources, or any amount of radioactive material for which a specific licenses from the Nuclear Regulatory Commission is required. 105.6.49 Day Care Permit. To operate a day care facility for more than six children or adults. 15.04.060 Sections 105.7.19 and 105.7.20 added. Sections 105.7.19 and 105.7.20 are added to the California Fire Code to read as follows: 105.7.19 Cryogenic fluids. Except where federal or state regulations apply and except for fuel systems of the vehicle, to produce, store or handle cryogens in NOT YET APPROVED 5 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code excess of the amounts listed in Table 105.6.10, to install a cryogenic vessel or piping system for the storage or distribution of cryogens. See Chapter 32. 105.7.20 Underground Fire Service Lines, installation or modification. A construction permit is required for the installation, modification or removal from service of underground fire service lines. Maintenance performed in accordance with this code that does not affect the pipe restraints nor have the potential of introducing debris into the piping system is not considered to be a modification and does not require a permit. 15.04.070 Sections 105.8.1 and 105.8.2 added – Fire and life safety. Subsections 105.8.1 and 105.8.2 are added to the California Fire Code to read as follows: 105.8.1 Fire and life-safety plan review. Fire and life-safety plan review of all new construction, all remodels, and all additions shall be performed by the Fire Chief or his designee. 105.8.2 Site Map and Floor plans. The Fire Chief or fire code official may require as a condition of final permit approval, a site map including the use of standard or approved Palo Alto Fire Department symbols. Features would include interior floor plans, on-site hydrant locations, FDC locations, key safe locations, alarm panel locations, electrical panel locations, stairwell and elevator locations, water shut off locations, hazardous materials locations, and other significant design elements or fire service features. The site map is to be provided in a format compatible with the City’s Geographic Information System (GIS) at time of construction. This requirement applies to newly constructed buildings, facilities where hazardous materials are used or stored in quantities exceeding permit amounts in Section 105, additions or permitted remodels when in the opinion of the fire code official a site map is warranted. 15.04.080 Section 105.9 added – Certified Unified Program Agency Fees. Section 105.9 is added to the California Fire Code to read as follows: 105.9 Certified Unified Program Agency (CUPA) Fees. Pursuant to the Participating Agency Agreement between the County of Santa Clara and the City of Palo Alto dated July 1, 1997, or as amended, the Fire Department is authorized to collect fees associated with the CUPA programs. The CUPA fees will be collected on an annual basis or as specified in the Palo Alto Fire Department Fee Schedule. // // // NOT YET APPROVED 6 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 15.04.090 Section 106.1 amended – Inspection authority. Section 106.1 of the California Fire Code is amended to read as follows: 106.1 Inspection authority. The fire code official is authorized to inspect, as often as necessary, buildings and premises, including such other hazards or appliances designated by the fire code official for the purposes of ascertaining and causing to be corrected any conditions which would reasonably tend to cause fire or contribute to its spread, result in an unauthorized discharge of hazardous materials, or any violation of this code or any other law or standard affecting fire and life safety. 15.04.100 Section 109.1.2 added - Enforcement/citation authority. Section 109.1.2 is added to the California Fire Code to read as follows: 109.1.2 Enforcement/citation authority. The following designated employee positions may enforce the provisions of this chapter by the issuance of citations. Persons employed in such positions are authorized to exercise the authority provided in Penal Code Section 836.5 and are authorized to issue citations for violations of this chapter. The designated employee positions are: Fire Chief, Deputy Fire Chief, Fire Marshal, Fire Inspector, Hazardous Materials Specialist and Hazardous Materials Inspector. 15.04.110 Section 109.3 amended – violations and penalties. Section 109.3 of the California Fire Code is amended to read as follows: Any person, firm or corporation violating any provision of this Title 15 shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished as provided in subsection (a) of Section 1.08.010 of the Palo Alto Municipal Code. Each separate day or any portion thereof during which any violation of the fire code occurs or continues shall be deemed to constitute a separate offense, and upon conviction thereof shall be punishable as herein provided. 15.04.120 Definitions added to section 202 The following definitions are added to Section 202 of the California Fire Code to read as follows: DEVICE. Device is, for the purpose of Exhibit “A,” an appliance or piece of equipment that plays an active part in the proper functioning of the regulated systems. Examples include, but are not limited to the following: smoke detectors, heat detectors, flame detectors, manual pull stations, horns, alarms, bells, warning lights, hydrants, risers, FDCs, standpipes, strobes, control NOT YET APPROVED 7 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code panels, transponders, and other such equipment used to detect, transmit, initiate, annunciate, alarm, or respond according to the system design criteria. DUAL SENSOR CARBON MONOXIDE AND SMOKE ALARM. A combination carbon monoxide and smoke alarm or detector that senses both smoke and CO in a single device. CARCINOGEN. A carcinogen is a substance that causes the development of cancerous growths in living tissue. A chemical is considered a carcinogen if: 1. It has been evaluated by the International Agency for Research on Cancer and found to be a carcinogen or potential carcinogen, or 2. It is listed a s a carcinogen or potential carcinogen in the latest edition of the Annual Report on Carcinogens published by the National Toxicology program, or 3. It is regulated by OSHA as a carcinogen. CONTINUOUS GAS DETECTION SYSTEM. A continuous gas detection system is a gas detection system where the analytical instrument is maintained in continuous operation and sampling is performed without interruption. Analysis is allowed to be performed on a cyclical basis at intervals not to exceed 30 minutes. In occupied areas where air is re-circulated and not exhausted to a treatment system (e.g. breathing zone), the fire code official may require a cyclical basis at intervals not to exceed 5 minutes. The gas detection system shall be able to detect the presence of a gas at or below the permissible exposure limit in occupiable areas and at or below ½ IDLH (or 0.05 LC 50 if no established IDLH) in unoccupiable areas. CORROSIVE LIQUID. A corrosive liquid is: 1. any liquid which, when in contact with living tissue, will cause destruction or irreversible alteration of such tissue by chemical action; 2. any liquid having a pH of 2 or less or 12.5 or more; 3. any liquid classified as corrosive by the U.S. Department of Transportation; or 4. any material exhibiting the characteristics of corrosivity in accordance with Title 22, California Code of Regulations §66261.22. FALSE ALARM. The willful, knowing, or negligent initiation or transmission of a signal, message, or other notification of an event of fire when no such danger exists. MODERATELY TOXIC GAS. A moderately toxic gas is a chemical or substance that has a median lethal concentration (LC50) in air more than 2000 parts per million but not more than 5000 parts per million by volume of gas or vapor, when administered by continuous inhalation for an hour, or less if death occurs within one hour, to albino rats weighing between 200 and 300 grams each. NOT YET APPROVED 8 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code MAXIMUM THRESHOLD QUANTITY (MAX TQ). Maximum threshold quantity is the maximum quantity of a moderately toxic or toxic gas, which may be stored in a single vessel before a more stringent category of regulation is applied. The following equation shall be used to calculate the Max TQ: Max TQ (pounds) = LC50 (ppm) x 2 lb. MODERATELY TOXIC GAS. Moderately toxic gas is a chemical or substance that has a median lethal concentration (LC50) in air more than 2000 parts per million but not more than 5000 parts per million by volume of gas or vapor, when administered by continuous inhalation for an hour, or less if death occurs within one hour, to albino rats weighing between 200 and 300 grams each. OTHER HEALTH HAZARD MATERIAL. Other health hazard material is a hazardous material which affects target organs of the body, including but not limited to, those materials which produce liver damage, kidney damage, damage to the nervous system, act on the blood to decrease hemoglobin function, deprive the body tissue of oxygen or affect reproductive capabilities, including mutations (chromosomal damage), sensitizers or teratogens (effect on fetuses). PHOTOELECTRIC SMOKE DETECTOR OR ALARM. A smoke alarm or detector that uses a light-source to detect the presence of smoke. SECONDARY CONTAINMENT. Secondary containment is that level of containment that is external to and separate from primary containment and is capable of safely and securely containing the material, without discharge, for a period of time reasonably necessary to ensure detection and remedy of the primary containment failure. SENSITIZER. A sensitizer is a chemical that causes a substantial proportion of exposed people or animals to develop an allergic reaction in normal tissue after repeated exposure to the chemical. SMOKE DETECTOR OR ALARM. A smoke alarm or detector that uses a light- source to detect the presence of smoke. SPILL CONTROL. Spill control is that level of containment that is external to and separate from the primary containment and is capable of safely and securely containing the contents of the largest container and preventions the materials from spreading to other parts of the room. WILDLAND-URBAN INTERFACE FIRE AREA. Wildland-urban interface fire area is a geographical area identified by the state as a “Fire Hazard Severity Zone” in NOT YET APPROVED 9 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code accordance with the Public Resources Code Sections 4201 through 4204 and Government Code Sections 51175 through 51189, or other areas designated by the enforcing agency to be at a significant risk from wildfires. See Article 86B for the applicable referenced sections of the Government Code and the Public Resources Code. The Wildland-Urban Interface Fire Area shall be defined as all areas within the City of Palo Alto as set forth and delineated on the map entitled "Wildland-Urban Interface Fire Area” which map and all notations, references, data and other information shown thereon are hereby adopted and made a part of this chapter. The map properly attested, shall be on file in the Office of the City Clerk of the City of Palo Alto. WORKSTATION. A workstation is a defined space or independent principal piece of equipment using hazardous materials with a hazard rating of 3 or higher as ranked by NFPA 704 where a specific function, laboratory procedure, or research activity occurs. Approved or listed hazardous materials storage cabinets, flammable liquid storage cabinets or gas cabinets serving a workstation are included as part of the workstation. A workstation is allowed to contain ventilation equipment, fire protection devices, electrical devices, and other processing and scientific equipment. 15.04.200 Section 316.7 added - Roof guiderails at interior courts. Section 316.7 of the California Fire Code is amended to read as follows: 316.7 Roof Guardrails at Interior Courts. Roof openings into interior courts that are bounded on all sides by building walls shall be protected with guardrails. The top of the guardrail shall not be less than 42 inches in height above the adjacent roof surface that can be walked on. Intermediate rails shall be designed and spaced such that a 12-inch diameter sphere cannot pass through. Exception: Where the roof opening is greater than 600 square feet in area. 15.04.205 Section 401.5 amended – Making false report. Section 401.5 of the California Fire Code is amended to read as follows: 401.5 Making false report. A person shall not give, signal, or transmit a false alarm. Initiation or transmission in a twelve-month period of three or more signals, messages, or other notifications of an event of fire when no such danger exists shall be presumed negligent. 15.04.210 Section 605.13 added - Immersion Heaters. Section 605.13 is added to the California Fire Code to read as follows: 605.13 Immersion Heaters. All electrical immersion heaters used in dip tanks, sinks, vats and similar operations shall be provided with approved over- temperature controls and low liquid level electrical disconnects. Manual reset of required protection devices shall be provided. NOT YET APPROVED 10 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 15.04.220 Definitions added to section 902.1. The following definitions are added to Section 902.1 of the California Fire Code to read as follows: DUAL SENSOR CARBON MONOXIDE AND SMOKE ALARM. PHOTOELECTRIC SMOKE DETECTOR OR ALARM. SMOKE DETECTOR OR ALARM. 15.04.230 Section 903.2 amended – Automatic Sprinkler Systems, Where Required. Section 903.2 of the California Fire Code is amended to read as follows: 903.2 Automatic sprinkler systems, where required. Approved automatic sprinkler systems in new buildings and structures and in existing modified buildings and structures, shall be provided in the locations described in this section. Automatic fire sprinklers shall be installed per the requirements set forth in Sections 903.2.1 through 903.2.18 and as follows, whichever is the more restrictive: 1. An automatic sprinkler system shall be provided throughout all new buildings and structures. Exception: New non-residential occupancies, buildings or structures that do not exceed 350 square feet of building area. 2. An automatic sprinkler system shall be provided for all existing buildings or structures where modifications have been determined by the Building Official to trigger requirements for seismic retrofit. 3. An automatic sprinkler system shall be provided throughout all existing buildings when modifications are made that create conditions described in Sections 903.2.1 through 903.2.18, or that create an increase in fire area to more than 3,600 square feet or when the addition is equal or greater than 50% of the existing building square footage whichever is more restrictive. 4. An automatic sprinkler system shall be provided throughout all new basements regardless of size and throughout existing basements that are expanded by more than 50%. If the addition is only the basement, then only the basement is required to be sprinklered. 5. An automatic sprinkler system shall be installed throughout when either the roof structure or exterior wall structure have been removed and/or replaced in at least 50% of the existing structure. NOT YET APPROVED 11 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 6. An automatic sprinkler system shall be installed throughout when any change in use or occupancy creating a more hazardous fire/life safety condition, as determined by the Fire Chief. 15.04.240 903.1.1.1 amended – NFPA 13 sprinkler systems. Section 903.1.1.1 of the California Fire Code is amended to read as follows: 903.1.1.1 NFPA 13 sprinkler systems. Where the provisions of this code require that a building or portion thereof be equipped throughout with an automatic sprinkler system in accordance with this section, sprinklers shall be installed throughout in accordance with NFPA 13 and State and local requirements except as provided in Section 903.3.1.1. 1. For new buildings having no designated use or tenant, the minimum sprinkler design density shall be Ordinary Hazard Group II / 1500 square feet. 2. Where future use or tenant is determined to require a higher density, the sprinkler system shall be augmented to meet the higher density. 15.04.250 Section 903.3.1.2 amended – NFPA 13R sprinkler systems. Section 903.3.1.2 of the California Fire Code is amended to read as follows: 903.3.1.2 NFPA 13R sprinkler systems. Where allowed in buildings of Group R, up to and including four stories in height, automatic sprinkler systems shall be installed throughout in accordance with NFPA 13 and State and local standards. 15.04.260 Section 903.3.1.3 amended – NFPA 13D sprinkler systems. Section 903.3.1.3 of the California Fire Code is amended to read as follows: 903.3.1.3 NFPA 13D sprinkler systems. Where allowed, automatic sprinkler systems installed in one-and two-family dwellings and townhouses shall be installed throughout in accordance with NFPA 13D and State and local standards. 15.04.270 Section 903.4.3 amended - Floor control valves. Section 903.4.3 of the California Fire Code is amended to read as follows: 903.4.3 Floor control valves. Automatic sprinkler systems serving buildings two (2) or more stories in height shall have valves installed so as to control the system independently on each floor including basements. 15.04.275 Section 907.2.11 amended - Single- and multiple-station smoke alarms. Section 907.2.11 of the California Fire Code is amended to read as follows: NOT YET APPROVED 12 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 907.2.11 Single- and multiple-station smoke alarms. Listed single- and multiple- station smoke alarms complying with UL217 shall be installed in accordance with Sections 907.2.11.1 through 907.2.11.5 and manufacturers’ installation and use instructions. Smoke alarms and smoke detectors shall be in compliance with this code or subject to the provisions of the Health and Safety Code, they shall also be listed and approved for rapid response to smoldering synthetic materials. All smoke alarms or detectors shall be of the photoelectric type or shall have equivalent detection capabilities in compliance with UL 217. Exception: A combination photoelectric/ionization smoke alarm or detector may be used if located no closer than 20 feet to a kitchen, bathroom, fireplace or wood burning appliance. 15.04.280 Section 3304.8 added - Fire Walls. Section 3304.8 is added to the California Fire Code to read as follows: 3304.8 Fire Walls. When firewalls are required, the wall construction shall be completed (with all openings protected) immediately after the building is sufficiently weather-protected at the location of the wall(s). 15.04.290 Section 3311.1 amended - Stairways Required. Section 3311.1 of the California Fire Code is amended to read as follows: 3311.1 Stairways Required. Each level above the first story in new multi-story buildings shall be provided with at least two usable exit stairways after the floor decking is installed. The stairways shall be continuous and discharge to grade level. Stairways serving more than two floor levels shall be enclosed (with openings adequately protected) after exterior walls/windows are in place. Exit stairs in new and in existing, occupied buildings shall be lighted and maintained clear of debris and construction materials at all times. Exception: For new multi-story buildings, one of the required exit stairs may be obstructed on not more than two contiguous floor levels for the purposes of stairway construction (i.e., installation of gypsum board, painting, flooring, etc.). 15.04.295 Section 3311.1.1 added - Required Means Of Egress. Section 3311.1.1 is added to the California Fire Code to read as follows: 3311.1.1 Required Means Of Egress. All new buildings under construction shall have a least one unobstructed means of egress. All means of egress shall be identified in the Fire Protection Plan. // NOT YET APPROVED 13 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 15.04.300 Section 4902.1 amended – Definition of wildland-urban interface area. The definition of “wildland-urban interface fire area” in Section 4902.1 is amended to read as follows: WILDLAND-URBAN INTERFACE FIRE AREA is a geographical area identified by the state as a “Fire Hazard Severity Zone” in accordance with the Public Resources Code Sections 4201 through 4202 and Government Code Sections 51175 through 51189. In addition, within the limits of the City of Palo Alto, wildland-urban fire interface area shall include all areas west of Highway 280 and all other areas recommended as Very High Fire Hazard Severity Zone by the director of Cal Fire. 15.04.305 Sections 4903.1 through 4903.4 added – General Requirements for wildland- urban interface fire areas. Sections 4903.1 through 4903.4 are added to the California Fire Code to read as follows: 4903.1 General. When required by the fire code official, a fire protection plan shall be prepared. 4903.2 Content. The plan shall be based upon a site-specific wildfire risk assessment that includes considerations of location, topography, aspect, flammable vegetation, climatic conditions and fire history. The plan shall address water supply, access, building ignition and fire-resistance factors, fire protection systems and equipment, defensible space and vegetation management. 4903.3 Cost. The cost of fire protection plan preparation and review shall be the responsibility of the applicant. 4903.4 Plan retention. The fire protection plan shall be retained by the fire code official. 15.04.307 Sections 4907.1 through 4907.2 amended - Defensible space. Sections 4070.1 through 4907.2 are added to the California Fire Code to read as follows: 4907.1 General. Persons owning, leasing, controlling, operating or maintaining buildings or structures in, upon or adjoining the Wildland-Urban Interface Fire Area and persons owning, leasing or controlling land adjacent to such buildings or structures, shall at all times: 1. Maintain an effective defensible space by removing and clearing away flammable vegetation and combustible growth from areas within 30 feet (9144 mm) of such buildings or structures. Exception: Single specimens of trees, ornamental shrubbery or similar NOT YET APPROVED 14 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code plants used as ground covers, provided that they do not form a means of rapidly transmitting fire from the native growth to any structure. 2. Maintain additional effective defensible space by removing brush, flammable vegetation and combustible growth located 30 feet to 100 feet (9144 mm to 30480 mm) from such buildings or structures, when required by the fire code official due to steepness of terrain or other conditions that would cause a defensible space of only 30 feet (9144 mm) to be insufficient. Exception: Grass and other vegetation located more than 30 feet (9144 mm) from buildings or structures and less than 18 inches (457 mm) in height above the ground need not be removed where necessary to stabilize the soil and prevent erosion. 3. Remove portions of trees, which extend within 10 feet (3048 mm) of the outlet of a chimney. 4. Maintain trees adjacent to or overhanging a building free of deadwood. 5. Maintain the roof of a structure free of leaves, needles or other dead vegetative growth. 6. Remove flammable vegetation a minimum of 10 feet around liquefied petroleum gas tanks/containers. 7. Firewood and combustible materials shall not be stored in unenclosed spaces beneath buildings or structures, or on decks or under eaves, canopies or other projections or overhangs. The storage of firewood and combustible material within the defensible space shall be located a minimum of 30 feet (6096 mm) from structures and separated from the crown of trees by a minimum horizontal distance of 15 feet (4572 mm). Exception: Firewood and combustible materials not for consumption on the premises shall be stored as approved by the fire code official. 8. Clear areas within 10 feet (3048 mm) of fire apparatus access roads and driveways to of non-fire-resistive vegetation growth. Exception: Grass and other vegetation located more than 30 feet (9144 mm) from buildings or structures and less than 18 inches (457 mm) in height above the ground need not be removed where necessary to stabilize the soil and prevent erosion. 4907.2 Corrective Actions. The executive body is authorized to instruct the fire code official to give notice to the owner of the property upon which conditions regulated by Section 4907.1 exist to correct such conditions. If the owner fails to correct such conditions, the executive body is authorized to cause the same NOT YET APPROVED 15 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code to be done and make the expense of such correction a lien upon the property where such condition exists. 15.04.310 Section 5001.1.2 added – Lithium ion battery storage and handling. Section 5001.2.12 is added to the California Fire Code to read as follows: 5001.1.2 Lithium ion battery storage and handling. Rooms or areas where lithium ion batteries are stored or handled shall comply with the following: 1. Rooms or areas where lithium ion batteries are stored or handled shall be protected throughout with an approved smoke detection system. 2. Indoor storage of lithium ion batteries in excess of 6,000 pounds shall be confined to a Group H Division 2 Occupancy designed and constructed in accordance with the Building Code. 15.04.320 Section 5001.2.1.1 added – Gas mixtures. Section 5001.2.1.1 is added to the California Fire Code to read as follows: Section 5001.2.1.1 Gas mixtures. For gas mixtures containing one or more toxic, highly toxic or moderately toxic components, LC50 shall be calculated using CGA Standards P-20 and P-23. 15.04.330 Section 5001.2.2.2 amended - Health Hazards. Section 5001.2.2.2 of the California Fire Code is amended to read as follows: 5001.2.2.2 Health Hazards. The material categories listed in this section are classified as health hazards. A material with a primary classification as a health hazard can also pose a physical hazard. 1. Highly toxic, toxic and moderately toxic. 2. Corrosive materials 3. Moderately toxic gas. 4. Other health hazards 15.04.335 Section 5001.5.2.1 added – HMIS Exemptions. Section 2701.5.2.1 is added to the California Fire Code to read as follows: Section 5001.5.2.1 HMIS Exemptions. The following hazardous materials uses are found to not represent a sufficient degree of hazard in of themselves to justify the filing of a HMMP or HMIS. SMALL COMPRESSED GAS CYLINDER EXEMPTION A facility using compressed gas cylinders containing any of the following hazardous materials used for the purpose specified and stored at each facility NOT YET APPROVED 16 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code in quantities not exceeding the thresholds specified below shall be exempted from the requirements of Chapter 6.95 Section 25501 (p) of the California Health and Safety Code: (a) Non refrigerated or non-cryogenic helium compressed gas in quantities of not more than 1000 cubic feet at standard temperature and pressure for the purpose of filling party balloons. (b) Non-refrigerated or non-cryogenic carbon dioxide and nitrogen compressed gases used for carbonation of beverages and stored in quantities of not more than 6000 cubic feet at standard temperature and pressure. (c) Refrigerated or cryogenic carbon dioxide compressed gas used for carbonation of beverages and stored in quantities of not more than 6000 cubic feet (116 gallons) at standard temperature and pressure. SMALL PROPANE GAS TANK EXEMPTION Commercial facilities, restaurants and RV hookup stations that handle 300 gallons or less of propane gas in stationary tanks outside of buildings used exclusively for heating, cooling, or cooking shall be exempted from the requirements of Chapter 6.95 Section 25501 (p) of the California Health and Safety Code. This exception does not include sites that dispense propane. CLOSED COOLING SYSTEM EXEMPTION Closed cooling systems containing group A1 refrigerants, including fluorocarbons, chlorocarbons and chlorofluorocarbons used for air conditioning and refrigeration shall be exempted from the requirements of chapter 6.95 Section 25501 (p) of the California Health and Safety Code. CLOSED FIRE SUPPRESSION SYSTEM EXEMPTION Closed fire suppression systems shall be exempted from the requirements of Chapter 6.95 Section 25501 (p) of the California Health and Safety Code. COMPRESSED AIR EXEMPTION Compressed air in cylinders and bottles shall be exempted from Chapter 6.95 Section 25501 (p) of the California Health and Safety Code. 15.04.340 Section 5003.1.3.1 added - Toxic, Highly Toxic, Moderately Toxic gases and similarly used or handled materials. Section 5003.1.3.1 is added to the California Fire Code to read as follows: 5003.1.3.1 Toxic, Highly Toxic, Moderately Toxic gases and similarly used or handled materials. The storage, use and handling of toxic, highly toxic and moderately toxic gases in amounts exceeding Table 60004.2 or 60004.3 shall be in accordance with this chapter and Chapter 60. Any toxic, highly toxic or moderately toxic material that is used or handled as a gas or vapor shall be in NOT YET APPROVED 17 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code accordance with the requirements for toxic, highly toxic or moderately toxic gases. 15.04.350 Section 5003.1.5 added - Other Health Hazards Including Carcinogens, Irritants and Sensitizers. Section 5003.1.5 is added to the California Fire Code to read as follows: 5003.1.5 Other Health Hazards Including Carcinogens, Irritants and Sensitizers. The storage, use and handling of materials classified as other health hazards including carcinogens, irritants and sensitizers in amounts exceeding 810 cubic feet for gases, 55 gallons for liquids and 5,000 pounds for solids shall be in accordance with this Section 5003. 15.04.355 Section 5003.1.6 added – Additional Secondary Containment Requirements. Section 5003.1.6 is added to the California Fire Code to read as follows: 5003.1.6 Additional Secondary Containment Requirements. In addition to the requirements set forth in Section 5004.2, an approved containment system is required for any quantity of hazardous materials that are liquids or solids at normal temperature and pressure (NTP) where a spill is determined to be a plausible event and where such an event would endanger, people, property or the environment. The approved containment system may be required to include a combination of spill control and secondary containment meeting the design and construction requirements set forth in section 5004.2. 15.04.357 Section 5003.1.7 added – Other health hazards. Section 5003.1.7 is added to the California Fire Code to read as follows: 5003.1.7 Other Health Hazards Including Carcinogens, Irritants and Sensitizers. The storage, use and handling of materials classified as other health hazards including carcinogens, irritants and sensitizers in amounts exceeding 810 cubic feet for gases, 55 gallons for liquids and 5,000 pounds for solids shall be in accordance with this chapter. 15.04.360 Section 5003.2.2.1 amended - Design and Construction. Section 5003.2.2.1 of the California Fire Code is amended to read as follows: 5003.2.2.1 Design and Construction. Piping, tubing, valves, fittings and related components used for hazardous materials shall be in accordance with the following: 1. Piping, tubing, valves, fittings and related components shall be designed and fabricated from materials compatible with the material to be contained and shall be of adequate strength and durability to withstand the pressure, structural and seismic stress, and exposure to which they are subject. NOT YET APPROVED 18 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 2. Piping and tubing shall be identified in accordance with ASME A13.1 and the Santa Clara County Fire Chiefs Marking Requirements and Guidelines for Hazardous Materials and Hazardous Waste to indicate the material conveyed. 3. Readily accessible manual valves or automatic remotely activated fail-safe emergency shutoff valves shall be installed on supply piping and tubing at the following locations: a. The point of use. b. The tank, cylinder or bulk use. 4. Manual emergency shutoff valves and controls for remotely activated emergency shutoff valves shall be identified and the location shall be clearly visible accessible and indicated by means of a sign. 5. Backflow prevention or check valves shall be provided when the backflow of hazardous materials could create a hazardous condition or cause the unauthorized discharge of hazardous materials. 6. Where gases or liquids having a hazard ranking of: Health hazard Class 3 or 4, Flammability Class 3 or 4, or Reactivity Class 4 in accordance with NFPA 704 are carried in pressurized piping above 15 pounds per square inch gauge (psig)(103 Kpa), an approved means of leak detection, emergency shutoff and excess flow control shall be provided. Where the piping originates from within a hazardous material storage room or area, the excess flow control shall be located within the storage room or area. Where the piping originates from a bulk source, the excess flow control shall be located as close to the bulk source as practical. Exceptions: a. Piping for inlet connections designed to prevent backflow. b. Piping for pressure relief devices. 7. Secondary containment or equivalent protection from spills or leaks shall be provided for piping for liquid hazardous materials and for highly toxic and toxic corrosive gases above threshold quantities listed in Tables 6004.2 and 6004.3. Secondary containment includes, but is not limited to double- walled piping. Exceptions: a. Secondary containment is not required for toxic corrosive gases if the piping is constructed of inert materials. b. Piping under sub-atmospheric conditions if the piping is equipped NOT YET APPROVED 19 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code with an alarm and fail-safe-to-close valve activated by a loss of vacuum. 8. Expansion chambers shall be provided between valves whenever the regulated gas may be subjected to thermal expansion. Chambers shall be sized to provide protection for piping and instrumentation and to accommodate the expansion of regulated materials. 15.04.365 Section 5003.2.2.2 amended - Additional Regulation for Supply Piping for Health Hazard Materials. Section 5003.2.2.2 of the California Fire Code is amended to read as follows: 5003.2.2.2 Additional Regulation for Supply Piping for Health Hazard Materials. Supply piping and tubing for gases and liquids having a health hazard ranking of 3 or 4 in accordance with ASME B31.3 and the following: 1. Piping and tubing utilized for the transmission of toxic, highly toxic, or highly volatile corrosive liquids and gases shall have welded or brazed connections throughout except for connections within an exhausted enclosure if the material is a gas, or an approved method of drainage or containment is provided for connections if the material is a liquid. 2. Piping and tubing shall not be located within corridors, within any portion of a means of egress required to be enclosed in fire-resistance-rated construction or in concealed spaces in areas not classified as Group H Occupancies. Exception: Piping and tubing within the space defined by the walls of corridors and the floor or roof above or in concealed space above other occupancies when installed in accordance with Section 415.8.6.3 of the California Building Code as required for Group H, Division 5 Occupancies. 3. All primary piping for toxic, highly toxic and moderately toxic gases shall pass a helium leak test of 1x10-9 cubic centimeters/second where practical, or shall pass testing in accordance with an approved, nationally recognized standard. Tests shall be conducted by a qualified “third party” not involved with the construction of the piping and control systems. // // // // // NOT YET APPROVED 20 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 15.04.370 Section 5003.3.1 amended - Unauthorized Discharges. Section 5003.3.1 of the California Fire Code is amended to read as follows: 5003.3.1 Unauthorized Discharges. When hazardous materials are released in quantities reportable under state, federal or local regulations or when there is a threatened release that presents a threat to health, property or the environment, the fire code official shall be notified immediately in an approved manner and the following procedures required in accordance with Sections 5003.3.1.1 through 5003.3.1.4. 15.04.380 Section 5003.5.2 added - Ventilation Ducting. Section 5003.5.2 is added to the California Fire Code to read as follows: 5003.5.2 Ventilation Ducting. Product conveying ducts for venting hazardous materials operations shall be labeled with the hazard class of the material being vented and the direction of flow. 15.04.385 Section 5003.5.3 added - “H” Occupancies. Section 5003.5.4 is added to the California Fire Code to read as follows: 5003.5.3 “H” Occupancies. In “H” occupancies, all piping and tubing may be required to be identified when there is any possibility of confusion with hazardous materials transport tubing or piping. Flow direction indicators are required. 15.04.390 Section 5003.9.11 added - Fire Extinguishing Systems for Workstations Dispensing, Handling or Using Hazardous Materials. Section 5003.9.11 is added to the California Fire Code to read as follows: 5003.9.11 Fire Extinguishing Systems for Workstations Dispensing, Handling or Using Hazardous Materials. Combustible and non-combustible work stations which dispense, handle or use hazardous materials shall be protected by an approved automatic fire extinguishing system in accordance with Section 1803.10. Exception: Internal fire protection is not required for Biological Safety Cabinets that carry NSF/ANSI certification where quantities of flammable liquids in use or storage within the cabinet do not exceed 500 ml. // // // NOT YET APPROVED 21 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 15.04.395 Section 5003.10.4 amended - Elevators utilized to transport hazardous materials. Section 5003.10.4 of the California Fire Code is amended to read as follows: 5003.10.4 Elevators utilized to transport hazardous materials. 5003.10.4.1 When transporting hazardous materials, elevators shall have no other passengers other than in the individual(s) handling the chemical transport cart. 5003.10.4.2 Hazardous materials liquid containers shall have a maximum capacity of 20 liters (5.26 gal). 5003.10.4.3 Toxic, highly toxic, and asphyxiant gases shall be limited to a container of a maximum water capacity of 1 lb. 5003.10.4.4 Means shall be provided to prevent the elevator from being summoned to other floors. 15.04.400 Section 5004.2.1 amended - Spill Control for Hazardous Material Liquids. Section 5004.2.1 of the California Fire Code is amended to read as follows: 5004.2.1 Spill Control for Hazardous Material Liquids. Rooms, buildings or areas used for storage of hazardous material liquids shall be provided with spill control to prevent the flow of liquids to adjoining areas. Floors in indoor locations and similar surfaces in outdoor locations shall be constructed to contain a spill from the largest single vessel by one of the following methods: 1. Liquid-tight sloped or recessed floors in indoor locations or similar areas in outdoor locations. 2. Liquid-tight floors in indoor locations or similar areas provided with liquid-tight raised or recessed sills or dikes. 3. Sumps and collection systems, including containment pallets in accordance with Section 5004.2.3. 4. Other approved engineered systems. Except for surfacing, the floors, sills, dikes, sumps and collection systems shall be constructed of noncombustible material, and the liquid-tight seal shall be compatible with the material stored. When liquid-tight sills or dikes are provided, they are not required at perimeter openings having an open-grate trench across the opening that connects to an approved collection system. // // // // NOT YET APPROVED 22 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 15.04.405 Sections 5004.2.2 and 5004.2.2.2 amended and Table 5004.2.2 deleted - Secondary Containment for Hazardous Material Liquids and Solids. Table 5004.2.2 is deleted in its entirety. Section 5004.2.2 of the California Fire Code is amended to read as follows: 5004.2.2 Secondary Containment for Hazardous Material Liquids and Solids. Buildings, rooms or areas used for the storage of hazardous materials liquids or solids shall be provided with secondary containment in accordance with this section. Section 5004.2.2.2 of the California Fire Code is amended to read as follows: 5004.2.2.2 Incompatible Materials. Incompatible materials shall be separated from each other in independent secondary containment systems. 15.04.410 Section 5004.3 amended – Containment pallets. Section 5004.2.3 of the California Fire Code is amended to read as follows: 5004.2.3 Containment pallets. Combustible containment pallets shall not be used inside buildings to comply with Section 5004.2 where the individual container capacity exceeds 55 gallons (208 L) or an aggregate capacity of multiple containers exceeds 1,000 gallons (3785 L) for liquids or where the individual container capacity exceeds 550 pounds (250 kg) or an aggregate of multiple containers exceeds 10,000 pounds (4540 kg) for solids. Where used as an alternative to spill control and secondary containment for outdoor storage in accordance with the exception in Section 5004.2, containment pallets shall comply with all of the following: 1. A liquid-tight sump accessible for visual inspection shall be provided; 2. The sump shall be designed to contain not less than 66 gallons (250L); 3. Exposed surfaces shall be compatible with material stored; Containment pallets shall be protected to prevent collection of rainwater within the sump of the containment pallet. 15.04.420 Section 5005.4.4 amended - Emergency Alarm. Section 5005.4.4 of the California Fire Code is amended to read as follows: 5005.4.4 Emergency Alarm. When hazardous materials having a hazard ranking of 3 or 4 in accordance with NFPA 704, or toxic gases exceeding 10 cu. ft. and any amount of highly toxic compressed gases are transported through corridors or exit enclosures, there shall be an emergency telephone system, a local manual alarm station or an approved alarm-initiating device at not more NOT YET APPROVED 23 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code than 150-foot (45,720 mm) intervals and at each exit and exit-access doorway throughout the transport route. The signal shall be relayed to an approved central, proprietary or remote station service or constantly attended on-site location and shall also initiate a local audible alarm. 15.04.430 Section 5704.2.7.5.8 amended - Overfill Prevention. Section 5704.2.7.5.8 of the California Fire Code is amended to read as follows: 5704.2.7.5.8 Overfill Prevention. An approved means or method in accordance with Section 5704.2.9.7.5 shall be provided to prevent overfill of all Class I, II and IIIA liquid storage tanks. Storage tanks in refineries, bulk plants or terminals regulated by Sections 5706.4 or 5706.7 shall have overfill protection in accordance with API 2350. An approved means or method in accordance with Section 5704.2.9.7.6 shall be provided to prevent the overfilling of Class IIIB liquid storage tanks connected to fuel-burning equipment inside buildings. Exception: Outside aboveground tanks with a capacity of 1320 gallons (5000 L) or less shall comply with Section 5704.2.9.7.5.1 (1.1) 15.04.440 Section 5704.2.7.5.9 added - Automatic Filling of Tanks. Section 5704.2.7.5.9 is added to the California Fire Code to read as follows: 5704.2.7.5.9 Automatic Filling of Tanks. Systems that automatically fill flammable or combustible liquid tanks shall be equipped with an approved overfill protection system that sends an alarm signal to a constantly attended location and immediately stops the filling of the tank. The alarm signal and automatic shutoff shall be tested on an annual basis and records of such Albtesting shall be maintained on-site for a period of five (5) years. 15.04.445 Section 5803.3 added – Mobile fueling of hydrogen vehicles. Section 5803.3 is added to the California Fire Code to read as follows: 5803.3 Mobile fueling of hydrogen vehicles. Mobile fueling of hydrogen vehicles is prohibited except as approved by the fire code official. 15.04.450 Section 6001.3 added - Moderately Toxic Gases with a LC50 Equal to or Less Than 3000 Parts Per Million. Section 6001.3 is added to the California Fire Code to read as follows: 6001.3 Moderately Toxic Gases With A LC50 Equal To Or Less Than 3000 Parts Per Million. Moderately toxic gases with an LC50 less than 3000 parts per million shall additionally comply with the requirements for toxic gases in Section 6004 of this code. NOT YET APPROVED 24 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 15.04.460 Section 6002.1 amended – add definitions The following definition is added to section 6002.1 of the California Fire Code as defined in Chapter 2 of the California Fire Code and local amendments: MODERATELY TOXIC GAS. 15.04.470 Section 6004 amended – Toxic gases including refrigerants. Section 3704 of the California Fire Code is amended to read as follows: Section 6004 HIGHLY TOXIC, TOXIC AND MODERATELY TOXIC GASES INCLUDING THOSE USED AS REFRIGERANTS. 15.04.480 Sections 6004.1.4 through 6004.1.17 added - Controls for toxic gases. Sections 6004.1.4 through 6004.1.17 are added to the California Fire Code to read as follows: 6004.1.4 Automatic Shut-Off Valve. An automatic shut-off valve, which is of a fail-safe to close design, shall be provided to shut off the supply of highly toxic gases for any of the following: 1. Activation of a manual fire alarm system. 2. Activation of the gas detection system. 3. Failure of emergency power. 4. Failure of primary containment. 5. Seismic activity. 6. Failure of required ventilation. 7. Manual activation at an approved remote location. 6004.1.5 Emergency Control Station. Signals from emergency equipment used for highly toxic gases shall be transmitted to an emergency control station or other approved monitoring station, which is continually staffed by trained personnel. 6004.1.6 Maximum Threshold Quantity. Toxic gases stored or used in quantities exceeding the maximum threshold quantity in a single vessel per control area or outdoor control area shall comply with the additional requirements for highly toxic gases of Section 6004 of this code. Moderately toxic gases stored or used in quantities exceeding the maximum threshold quantity in a single vessel per control area or outdoor control area shall comply with the additional requirements for toxic gases of Section 3704 of this code 6004.1.7 Reduced Flow Valve. All containers of materials other than lecture bottles containing Highly Toxic material and having a vapor pressure exceeding 29 psia shall be equipped with a reduced flow valve when available. If a NOT YET APPROVED 25 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code reduced flow valve is not available, the container shall be used with a flow- limiting device. All flow limiting devices shall be part of the valve assembly and visible to the eye when possible; otherwise, they shall be installed as close as possible to the cylinder source. 6004.1.8 Annual Maintenance. All safety control systems at a facility shall be maintained in good working condition and tested not less frequently than annually. Maintenance and testing shall be performed by persons qualified to perform the maintenance and tests. Maintenance records and certifications shall be available to any representative of the Fire Department for inspection upon request. 6004.1.9 Fire Extinguishing Systems. Buildings and covered exterior areas for storage and use areas of materials regulated by this Chapter shall be protected by an automatic fire sprinkler system in accordance with NFPA 13. The design of the sprinkler system for any room or area where highly toxic, toxic and moderately toxic gases are stored, handled or used shall be in accordance with Section 2704.5. 6004.1.10 Local Gas Shut Off. Manual activation controls shall be provided at locations near the point of use and near the source, as approved by the fire code official. The fire code official may require additional controls at other places, including, but not limited to, the entry to the building, storage or use areas, and emergency control stations. Manual activated shut-off valves shall be of a fail-safe- to-close design. 6004.1.11 Exhaust Ventilation Monitoring. For highly toxic gases and toxic gases exceeding threshold quantities, a continuous monitoring system shall be provided to assure that the required exhaust ventilation rate is maintained. The monitoring system shall initiate a local alarm. The alarm shall be both visual and audible and shall be designed to provide warning both inside and outside of the interior storage, use, or handling area. 6004.1.12 Emergency Response Plan. If the preparation of an emergency response plan for the facility is not required by any other law, responsible persons shall prepare, or cause to be prepared, and filed with the fire code official, a written emergency response plan. If the preparation of an emergency response plan is required by other law, a responsible person shall file a copy of the plan with the Fire Chief. 6004.1.13 Emergency Response Team. Responsible persons shall be designated the on-site emergency response team and trained to be liaison personnel for the Fire Department. These persons shall aid the Fire Department in preplanning emergency responses, identifying locations where regulated materials are stored, handled and used, and be familiar with the NOT YET APPROVED 26 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code chemical nature of such material. An adequate number of personnel for each work shift shall be designated. 6004.1.14 Emergency Drills. Emergency drills of the on-site emergency response team shall be conducted on a regular basis but not less than once every three months. Records of drills conducted shall be maintained. 6004.1.15 Cylinder Leak Testing. Cylinders shall be tested for leaks immediately upon delivery and again immediately prior to departure. Testing shall be approved by the fire code official in accordance with appropriate nationally recognized industry standards and practices, if any. Appropriate remedial action shall be immediately undertaken when leaks are detected 6004.1.16 Inert Gas Purge System. Gas systems shall be provided with dedicated inert gas purge systems. A dedicated inert gas purge system may be used to purge more than one gas, provided the gases are compatible. Purge gas systems inside buildings shall be located in an approved gas cabinet unless the system operates by vacuum demand. 6004.1.17 Seismic Shutoff Valve. An automatic seismic shut-off valve, which is of a fail-safe to close design, shall be provided to shutoff the supply of highly toxic, toxic and moderately toxic gases with an LC50 less than 3000 parts per million upon a seismic event within 5 seconds of a horizontal sinusoidal oscillation having a peak acceleration of 0.3G (1.47m/sec2) and a period of 0.4 seconds. 15.04.490 Section 6004.2 amended – Indoor storage and use of toxic gases. Section 6004.2 of the California Fire Code is amended to read as follows: 6004.2 Indoor Storage and Use. The indoor storage or use of highly toxic, toxic and moderately toxic compressed gases shall be in accordance with Sections 6004.1 through 3704.2.2.10.3.3. The threshold quantity for highly toxic, toxic and moderately toxic gases for indoor storage and use are set forth in Table 6004.2. Table 6004.2 Threshold Quantities for Highly Toxic, Toxic and Moderately Toxic Gases for Indoor Storage and Use Highly Toxic 0 Toxic 10 cubic feet Moderately Toxic 20 cubic feet // // NOT YET APPROVED 27 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 15.04.492 Sections 6004.2.1 through 6004.2.1.1 amended – Applicability of toxic gas regulations. Sections 6004.2.1 through 6004.2.1.1 of the California Fire Code are amended to read as follows: 6004.2.1 Applicability. The applicability of regulations governing the indoor storage and use of highly toxic, toxic, and moderately toxic compressed gases shall be as set forth in Sections 6004.2.1.1 through 6004.2.1.3. 6004.2.1.1 Quantities Not Exceeding the Maximum Allowable Quantity per Control Area. The indoor storage or use of highly toxic, and toxic and moderately toxic gases in amounts exceeding the threshold quantity per control area set forth in Table 6004.2 shall be in accordance with Sections 5001, 5003, 6001, 6004.1 and 6004.2. 15.04.494 Section 6004.2.2 amended – General requirements for use and storage of toxic gases. Section 6004.2.2 of the California Fire Code is amended to read as follows: 6004.2.2 General indoor requirements. The general requirements applicable to the indoor storage and use of highly toxic and toxic compressed gases shall be in accordance with Sections 6004.2.2.1 through 6004.2.2.10.3. Moderately toxic gases with an LC50 less than 3000 parts per million shall comply with the requirements for toxic gases in Sections 6004.2.2.1 through 6004.2.2.10.3. All other moderately toxic gases exceeding the threshold quantity shall comply with the requirements for toxic gases in Sections 6004.2.2.1 through 6004.2.2.7. 15.04.496 Section 6004.2.2.7 amended –Treatment systems. Section 6004.2.2.7 of the California Fire Code is amended to read as follows: 6004.2.2.7 Treatment Systems. The exhaust ventilation from gas cabinets, exhausted enclosures, gas rooms and local exhaust systems required in Section 6004.2.2.4 and 6004.2.2.5 shall be directed to a treatment system. The treatment system shall be utilized to handle the accidental release of gas and to process exhaust ventilation. The treatment system shall be designed in accordance with Sections 6004.2.2.7.1 through 6004.2.2.7.5 and Section 505 of the California Mechanical Code. Exceptions: 1.1 Highly toxic, toxic and moderately toxic gases storage. A treatment system is not required for cylinders, containers and tanks in storage when all of the following are provided: NOT YET APPROVED 28 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 1.2 Valve outlets are equipped with gas-tight outlet plug or caps. 1.3 Hand wheel-operated valves have handles secured to prevent movement. 1.4 Approved containment vessels or containment systems are provided in accordance with Section 6004.2.2.3. 15.04.498 Section 6004.2.2.10.2 amended – Alarms. Section 6004.2.2.10.2 of the California Fire Code is amended to read as follows: 6004.2.2.10.2 Alarms. The gas detection system shall initiate a local alarm and transmit a signal to a constantly attended control station when a short-term hazard condition is detected. The alarm shall be both visual and audible and shall provide warning both inside and outside the area where the gas is detected. The audible alarm shall be distinct from all other alarms. 15.04.500 Section 6004.3 amended – Outdoor storage and use. Section 6004.3 of the California Fire Code is amended to read as follows: 6004.3 Outdoor Storage and Use. The outdoor storage or use of highly toxic, toxic and moderately toxic compressed gases shall be in accordance with Sections 6004.3.1 through 6004.3.4. The threshold quantity for highly toxic, toxic and moderately toxic gases for outdoor storage and use are set forth in Table 6004.3. Table 6004.3 Threshold Quantities for Highly Toxic, Toxic and Moderately Toxic Gases for Outdoor Storage and Use Highly Toxic 0 Toxic 10 cubic feet Moderately Toxic 20 cubic feet 15.04.503 Sections 6004.3.1 and 6004.3.1.1 amended – Applicability of toxic gas regulations. Sections 6004.3.1 and 6004.3.1.1 of the California Fire Code are amended to read as follows: 6004.3.1 Applicability. The applicability of regulations governing the outdoor storage and use of highly toxic, toxic, and moderately toxic compressed gases shall be as set forth in Sections 6004.3.1.1 through 6004.3.1.3. 6004.3.1.1 Quantities not exceeding the maximum allowable quantity per control area. The outdoor storage or use of highly toxic and toxic gases in amounts exceeding the threshold quantity per control area set forth in Table 6004.3 shall be in accordance with Sections 5001, 5003, 6001, 6004.1, and 6004.3. NOT YET APPROVED 29 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code Moderately toxic gases with an LC50 less than 3000 parts per million in amounts exceeding the threshold quantity in Table 6004.3 shall comply with the requirements for toxic gases in Sections 5001, 5003, 6001, 6004.1 and 6004.3. Moderately toxic gases in amounts exceeding the threshold quantity in Table 6004.3 shall comply with the requirements for toxic gases in Sections 5001, 5003, 6001, 6004.1 and 6004.3.2.1 through 6004.3.2.5. 15.04.505 Section 6004.3.3 amended – Outdoor storage of tanks and cylinders. Section 6004.3.3 of the California Fire Code is amended to read as follows: 6004.3.3 Outdoor storage weather protection for portable tanks and cylinders. Weather protection in accordance with Section 5004.13 and this section shall be provided for portable tanks and cylinders located outdoors and not within gas cabinets or exhausted enclosures. The storage area shall be equipped with an approved automatic sprinkler system in accordance with Section 5004.5. 15.04.510 Section 6101.4 added – Storage and use of liquefied petroleum gas. Section 6101.4 is added to the California Fire Code to read as follows: 6101.4 Storage and use of liquefied petroleum gas. Storage and use of liquefied petroleum gas (LPG) is prohibited within the City limits of Palo Alto where natural gas mains exist. Exception: The Fire Chief may permit the use of LPG for the following purposes and in the following manner: (1) A single tank of no more than 500-gallon (1892 L) water capacity in connection with portable equipment or devices which are approved for use with LPG. (2) As an emergency standby fuel supply for critical industrial, medical or research equipment. (3) A single tank of no more than 2000-gallon (7570 L) water capacity used in vehicle servicing operations installed in accordance with applicable safety standards. The storage of LPG shall conform to the provisions of applicable state and local Codes and ordinances. 15.04.515 Section 6405.3.1 added – Silane distribution systems automatic shutdown. Section 6405.3.1 is added to the California Fire Code to read as follows: 6405.3.1 Silane distribution systems automatic shutdown. Silane distribution systems shall automatically shut down at the source upon activation of the gas NOT YET APPROVED 30 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code detection system at levels above the alarm level and/or failure of the ventilation system for the silane distribution system. 15.04.520 Addition of Chapter 19 – Life safety requirements for existing high rise buildings. Chapter 19 is added to the California Fire Code to read as follows: CHAPTER 19 LIFE SAFETY REQUIREMENTS FOR EXISTING HIGH-RISE BUILDINGS SECTION 1901 GENERAL 1901.1 Purpose. The purpose of this appendix is to provide a reasonable degree of safety to persons occupying existing high-rise buildings by requiring minimum standards for exit corridors, exit stairways and elevator shafts, monitored alarm systems and emergency plans. 1901.2 Scope. The requirements shall apply to all high-rise buildings constructed prior to January 1, 1994 which have floors used for human occupancy located more than 75 feet above the lowest level of approved fire department vehicle access or other physical configuration that qualifies a building as high rise by local ordinance. 1901.3 Permits Required. 1. Building permits shall be obtained as required by the Building Code. 2. Not less than 30 days prior to submitting plans for a building permit, a preplan review meeting shall be held, including the owner’s design team, building official and the chief, to determine the adequacy of the life-safety emergency systems concept for the building. The life-safety emergency systems shall be reflected on the plans for the building and become a permanent part of the building department’s records. The building official and the chief may require sufficient documentation, based upon engineering analysis, that the concept meets the intent of nationally recognized good practices and such guidelines as the building official and chief have published. 1901.4 Enforcement. The provisions of this appendix shall be enforced by the chief. 1901.5 Compliance. All buildings shall be made to conform with the requirements of Section 1902 within the following time periods: 1. Subsections 1902.11, 1902.12 and 1902.13 shall be completed within six months of the adoption date of this Chapter. NOT YET APPROVED 31 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 2. The owners of buildings affected by this appendix or their representatives shall submit plans to the building official showing intended methods of compliance with subsections 1902.1 through 1902.10 on or before June 30, 1990. 3. Subsections 1902.5, 1902.8, and 1902.9 shall be completed on or before January 1, 1991. 4. Subsections 1902.1, 1902.2, 1902.3, 1902.4, 1902.5, 1902.6 and 1902.8 shall be completed on or before April l, 1994. Note: Regardless of any specific compliance date stipulated above, a building shall not be deemed in violation of this Chapter until such date has expired 1901.6 Exceptions. The Fire Chief may grant certain exceptions to the requirements of this Chapter, under the following circumstances: 1. The Fire Chief may allow the use of alternate materials or methods of compliance upon a finding that the use of such alternate materials or methods of compliance will provide levels of fire and life safety equal to or greater than those otherwise required in this Chapter. 2. The Fire Chief may waive individual requirements of this Chapter or grant reasonable extensions of time in which to comply with said requirements upon a finding that such requirements are not practical or possible, or pose an unreasonable hardship. The determination of whether compliance is not practical or possible, or an unreasonable hardship, shall be based upon an overall evaluation of the following factors: (i) The amount of fire and life safety that would be lost if the requirements were waived or deferred; (ii) The cost of complying with the requirements; (iii) The financial hardship and disruption to occupants and users of the building in question; (iv) The type and nature of the use of the building in question; and (v) Such other factors as in the judgment of Fire Chief will result in providing a reasonable degree of safety as required by this Uniform Fire Code, to persons occupying or using the building. // NOT YET APPROVED 32 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 3. The Fire Chief may grant reasonable extensions of time, up to two additional years, within which to comply with the requirements of subsections 1902.1, 1902.2, 1902.3, 1902.4, 1902.6, 1902.7 and 1902.9 of this Chapter, upon making a finding of hardship based upon the factors set forth in subsection (2) of this subsection 1901.6(f), or upon the agreement of the building owner that within said time, the building will be 100% sprinklered, in accordance with NFPA 13. 4. The Fire Chief shall prepare written notice of determination to grant or not to grant exceptions pursuant to this paragraph. The Fire Chief shall distribute the notice of determination in the next available council packet; shall mail notice, postage prepaid, to the affected building owner; and shall publish such notice once in a newspaper of general circulation not later than five (5) days after the distribution of the notice on the city council packet. The notice shall state the address and general description of the subject property and the nature of the determination. The notice shall also state that the details regarding the decision will be available in the Fire Chief’s office, and that an appeal may be taken within ten (10) days after the date of publication of the notice. 1901.7 Appeals. 1. Any person aggrieved or affected by any determination made by the Fire Chief pursuant to subsection 1901.6 of this Chapter may appeal that determination in accordance with this subsection 1901.7. 2. An appeal from the decision of the Fire Chief shall be initiated within ten (10) days after the publication of notice, as provided in Paragraph 1901.6, by the filing at the office of the City Manager of a written, dated appeal, signed by all parties named as appellants, stating the names and official mailing addresses of all appellant(s) participating in the appeal and their relationship to the matter being appealed. 3. The appeal shall contain a statement of all facts supporting the contention of the appellant(s) and all reasons why the decision of the Fire Chief should be reversed, modified or set aside. 4. The appeal shall be accompanied by a fee, as set forth in the Municipal Fee Schedule for Fire Department appeals. 5. Upon receipt of any appeal, the City Manager or designee shall set a date for a hearing. Such hearing shall be held within fifteen (15) days of receipt of the appeal. A notice of the time and place of the hearing shall be given to the appellant(s) by the City Manager or designee in writing. The notice shall be mailed, postage prepaid, addressed to the appellant(s) at the NOT YET APPROVED 33 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code address(es) listed on the appeal, or it shall be delivered to the appellant(s) personally, at least ten (10) days prior to the hearing date. If the appellant is other than the building owner, the building owner shall also be notified of the hearing. 6. The City Manager or designee (other than any personnel from the Fire Department), shall hear the appeal. At the time and place set for the hearing, the City Manager or designee shall receive all testimonial, documentary and tangible evidence bearing on the issues. The City Manager or designee may continue the hearing from time to time. The City Manager or designee may approve, modify or disapprove the determination of the Fire Chief. Within three (3) working days of the close of the hearing, the City Manager or designee shall render a decision in writing. The decision shall be mailed, postage prepaid, to the appellant(s) at the address(es) listed on the appeal or delivered to the appellant(s) personally. If the appellant is other than the building owner, the building owner shall also be notified of the decision. 7. The decision of the City Manager or designee shall be final. 1901.8 Penalty. Failure to comply with subsection (e) above is unlawful and any person, firm or corporation, whether as principal, agent, employee or otherwise, violating any provisions of the above requirements shall be guilty of a misdemeanor. Such person, firm or corporation is guilty of a separate offense for each and every day during any portion of which any violation of these requirements is committed, continued or permitted by such person, firm or corporation. 1901.9 Severability. Should any section, subsection, paragraph, sentence, clause or phrase of this appendix be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of these requirements. SECTION 1902 LIFE SAFETY REQUIREMENTS 1902.1 Automatic Sprinklers. All required exit corridors, stairwells, elevator lobbies, public assembly areas occupied by 100 or more persons and commercial kitchens shall be protected by an approved automatic sprinkler system meeting the design criteria of NFPA 13. One sprinkler head shall be provided on the room side of every corridor opening. Exception: Sprinkler heads may be omitted in stairwells of noncombustible construction. // // NOT YET APPROVED 34 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 1902.2 Corridor Doors. All doors opening into required exit corridors shall be in conformance with the Building Code. Exception: Existing 1-3/8 inch bonded, solid-core wood doors, if equipped with self-closures, need not be replaced. 1902.3 Corridor Openings. All openings into required exit corridor, other than doors, shall be in conformance with the Building Code. 1902.4 Exit Stairways. All high-rise buildings shall have a minimum of two approved exit stairways. The Fire Chief may allow a minimum of one approved stairway upon a finding that additional automatic sprinkler protection is provided that meets the spirit of this Appendix and provides at least the equivalent protection of that prescribed in this Appendix. 1902.5 Exit Stairwell Doors. All stairwell doors which are to be locked from the stairwell side shall automatically unlock, without unlatching, when the alarm system activates. 1902.6 Elevator Lobby Separation. All elevators on all floors shall open into elevator lobbies which are separated from the remainder of the building as is required for corridor construction in the Building Code. The Fire Chief may waive this requirement upon a finding that additional automatic sprinkler protection is provided that meets the spirit of this Appendix and provides at least the equivalent protection of that prescribed in this Appendix. 1902.7 Elevator Recall. All automatic elevators shall be equipped for emergency operation in conformance with the Building Code. 1902.8 Fire Alarm Systems. All high-rise buildings shall have an alarm system meeting the requirements of this section. All required fire alarm systems shall be designed to be heard clearly by all occupants within the building but in no case shall it be less than 60 dB, or 15 dB above ambient noise levels, as measured in the A scale, within all habitable areas of the building. All required alarm systems shall operate automatically by smoke or products of combustion detectors and by manual pull stations as approved by the chief. 1902.9 Fire Alarm Supervision. All fire alarm systems shall be connected to an approved central station or the local fire department dispatch office in conformance with the Fire Code as approved by the chief. // // NOT YET APPROVED 35 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 1902.10 Exit Illumination. Exits shall be illuminated at any time the building is occupied with lights having an intensity of not less than 1 foot-candle at floor level. Such lighting shall have an independent alternate source of supply such as an emergency battery pack. 1902.11 Emergency Plan. The management for all buildings shall establish and maintain a written fire and life safety emergency plan which has been approved by the chief. The chief shall develop written criteria and guidelines upon which all plans shall be based. 1902.12 Posting of Emergency Plan and Exit Plans. Copies of the emergency plan and exiting plans (including elevator and stairway placarding) shall be posted in locations approved by the chief. 1902.13 Fire Drills. The management of all buildings shall conduct fire drills for their staff and employees at least every 120 days. The fire department must be advised of such drills at least 24 hours in advance. A written record of each drill shall be maintained in the building management office and made available to the fire department for review. SECTION 2. The Council adopts the findings for local amendments to the California Fire Code, 2016 Edition, attached hereto as Exhibit "A" and incorporated herein by reference. SECTION 3. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the California Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. // // // // // // // // NOT YET APPROVED 36 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code SECTION 4. This Ordinance shall become effective on the commencement of the thirty-first day after the day of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Human Resources ____________________________ Director of Administrative Services NOT YET APPROVED 37 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code EXHIBIT A Findings for Local Amendments to the 2016 California Fire Code The following local amendments to the 2016 California Fire Code make modifications as authorized by the California Health and Safety Code. In accordance with Section 18941.5 of said Code, Findings are hereby made to show that such modifications or changes are reasonably necessary because of local climatic, geological or topographical conditions. PREAMBLE I. Findings of fact: A. Pursuant to Section 17958.5 of the California Health and Safety Code, the report contained herein is submitted as the “Findings of Fact” document with regard to the adoption of the California Fire Code, 2016 Edition, and amendments. Under this adopting ordinance, specific amendments have been established which are more restrictive in nature than those adopted by the State of California (State Building Code Standards, State Housing and Community Development Codes) commonly referred to as California Code of Regulations, Titles 19, 24 and 25. B. These amendments to the California Fire Code, 2016 Edition, have been recognized by the City of Palo Alto (“City”) as tools for addressing the fire problems, concerns and future direction by which the authority can establish and maintain an environment which will afford a level of fire and life safety to all who live and work within the City’s boundaries. C. Under the provisions of Section 17958.5 of the Health and Safety Code, local amendments shall be based upon the following: climatic, geological/geographical, and topographical conditions. The findings of fact contained herein shall address each of these situations and shall present the local situation which, either singularly or in combination, caused the established amendments to be adopted. 1. Climactic Conditions: The City, on an average, experiences an annual rainfall of 16" - 18". This rainfall can be expected between October and April of each year. However, during the summer months there is little, if any, measurable precipitation. During this dry period the temperatures are usually between 70-90 degrees with light to gusty westerly winds. These drying winds, combined with the natural vegetation which is dominant throughout the area, create a hazardous fuel condition which can cause, and has caused in the past, extensive grass and brush land fires. With more and more development encroaching into these wooded and grass covered areas, wind-driven fires could have severe consequences, as has been demonstrated on several occasions in Palo Alto and other areas of the state. Fires in structures can easily spread to the wildland as well as a fire in the wildland into a structure. NOT YET APPROVED 38 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code Because of the weather patterns, a normal rainfall cannot always be relied upon. This can result in water rationing and water allocation systems, as demonstrated by the drought years of 1986- 1991. Water shortages can also be expected in the future due to the current water storage capacities and increased consumption. The water supply for the Palo Alto fire department makes use of automatic fire sprinkler systems feasible as a means to reduce our dependency on large volumes of water for fire suppression. 2. Geological & Geographical Conditions Geographical Location. Palo Alto is located at the northern most part of Santa Clara County. Palo Alto is a major focus of the “Silicon Valley,” the center for an expanding and changing electronics industry, as well as pharmaceutical, biomedical, and genetic research. Seismic Location. Palo Alto is situated on alluvial solids between San Francisco Bay and the San Andreas Fault zone. The City’s location makes it particularly vulnerable to damage to taller and older structures caused by seismic events. The relatively young geological processes that have created the San Francisco Bay Area are still active today. Seismically, the city sits between two active earthquake faults (San Andreas and the Hayward/Calaveras), and numerous potentially active faults. Approximately 55% of the City’s land surface is in the high-to-moderate seismic hazard zones. Seismic and Fire Hazards. Fire following an earthquake has the potential of causing greater loss of life and damage than the earthquake itself. The majority of the City’s high-rise structures are located in seismic risk zones. Should a significant seismic event occur, Public Safety resources would have to be prioritized to mitigate the greatest threat, and may not be available for every structural fire. In such event, individual structures, including high-rise buildings, should be equipped to help in mitigating the risk of damage. Other variables may tend to intensify the situation: a. The extent of damage to the water system; b. The extent of isolation due to bridge and/or freeway overpass collapse; c. The extent of roadway damage and/or amount of debris blocking the roadways; d. Climatical conditions (hot, dry weather with high winds); e. Time of day will influence the amount of traffic on roadways and could intensify the risk to life during normal business hours; f. The availability of timely mutual aid or military assistance; NOT YET APPROVED 39 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code g. Many high-rise structures are located near areas of high fire danger necessitating special precautions. Transportation. Palo Alto is dissected by a major state highway (El Camino Real) and two major freeways (I-280 and U.S. 101), which potentially could negatively affect response times of fire suppression equipment. Soil Conditions. Palo Alto lies at the southern end of San Francisco Bay and is built atop the alluvial deposits that surround the margins of the Bay. The alluvium was created by the flooding of many streams emptying into the San Francisco Bay depression, and from intermittent sea water inundation that has occurred over the last 2 or 3 million years. The areas closest to the Bay are overlain by unconsolidated fine silty clay, known as Bay Mud which varies in thickness from a few feet to as much as 30 feet. Generally, the older more stable alluvium is to the south and the younger less stable material is to the north. Bedrock lies beneath the area at depths of generally 300' or more. 3. Topographical Conditions: The findings of fact for the topographical element, as would be expected, are closely associated with the geological/geographical element. With the elevation changes within the district, development is of course following the path of least resistance, creating a meandering pattern. This then does not lend itself to a good systematic street and road layout, which would promote easy traffic flow. It has, in fact, resulted in few major crosstown thoroughfares which tend to be heavily congested, primarily during commute hours and seasonal periods of the year. This creates barriers which reduce the response time of fire equipment and other emergency services. The topography of the district is being burdened by major structures. Employment areas are throughout the district. The people who work in these complexes have added to the traffic congestion throughout the city, thereby reducing the fire department’s response time capabilities. Inherent delays caused by the traffic patterns to many of these types of projects, make it necessary to mitigate this problem by requiring additional built-in automatic fire protection systems to provide early detection and initial control until the arrival of the fire department. The topography of the district in much of the commercial and residential zones lies within or near a flood plane. Periodically, heavy rains and high tides cause region-wide flooding which not only delays response but also increases demands on fire personnel. The fire code amendments increase safeguards and initialize early response to help compensate for these physical delays. As a result of the findings of facts which identify the various climatic, geological/geographical and topographical elements, those additional requirements as specified in the amendments to adopting ordinance for the California Fire Code 2013 Edition, by the City of Palo Alto area are NOT YET APPROVED 40 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code considered reasonable and necessary modifications. The experience of several disastrous fires within the city in addition to Santa Clara, Monterey, San Mateo, Alameda and Contra Costa counties have demonstrated the need for other fire protection features, the most significant of which was located in the Oakland/Berkeley Hills in which over 3,000 homes were destroyed and 25 human lives were lost. While it is clearly understood that the adoption of such regulations may not prevent the incidence of fire, the implementation of these various amendments to the Code may reduce the severity and potential of loss of life and property. II. Specific Findings for Local Amendments The majority of local amendments (those not specifically listed below) are made strictly to conform to other parts of the Palo Alto Municipal Code (PAMC) and for similar administrative purposes. Based upon the findings of fact described in section I, the City Council also makes the following specific findings regarding local climatic, geological, and topographic conditions related to local amendments to the California and International Fire Codes found in Chapters 15.04 and 15.05 of Title 15 of the Palo Alto Municipal Code (“PAMC”): 1. The local amendments contained in PAMC sections 15.04.030 through 15.04.070 and sections 15.04.325 through 15.04.441 relating to general conditions for hazardous materials are necessary modifications to the California Fire Code flammable and hazardous materials sections because they maintain consistency with the Hazardous Materials Storage Ordinance which has been adopted county-wide since 1983. Requirements include safeguards such as monitoring, secondary containment, separation of non compatibles which prevent incidents should a seismic event, unauthorized release or accident occur. 2. The local amendment contained in PAMC section 15.05.015- Weed removal- is necessary to require weeds to be removed from properties when determined to be a hazard at the expense of the responsible party. Weeds can be a fire hazard that may also contribute to the uncontrolled spread of fire as a result of the climatic, geographical, and topographical conditions described in Findings 1, 2, and 3 above. 3. The local amendments contained in PAMC section 15.05.140 through 15.05.170 set forth measures to limit delays in response time and reduce hazards to firefighters. These measures are necessary to prevent exacerbation of response delays associated with the Climatic, Geographical and Topographical conditions listed in Findings 1, 2 and 3 above. 4. The local amendment contained in PAMC section 15.04.210- Immersion Heaters- is necessary as a fire control measure because it requires additional controls on process heating devices which are often activated when unattended. See Geological Findings 2. // NOT YET APPROVED 41 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 5. The local amendments contained in PAMC 15.04.230 through 15.04.260 relating to fire sprinkler systems are necessary for faster control of fires in the dense populated area of our community to confine a fire to the area of origin rather than spread to neighboring structures. The modifications contained in these amendments provide additional fire extinguishing systems in new construction, major remodels, additions, and occupancy classification changes to help mitigate the problems identified in Findings 1, 2, and 3, above- Climatic, Geographical and Topographical. 6. The local amendment contained in PAMC section 15.04.270 - Floor control valves- is necessary to provide fire extinguishing control devices that allow systems to remain partially in service while repairs or maintenance are ongoing. See Findings 1 and 2 above- Climatic and Geographical. 7. The local amendment contained in Section 15.04.275- Single- and multiple-station smoke alarms- is necessary to alert occupants at the earliest possible stage of smoldering residential fires. This modification requires smoke detection provided in new construction, remodels, additions, rental housing and newly purchased homes to be photoelectric or dual sensor technology to allow greater likelihood of occupants safely escaping residential fires and notifying the fire department during the earliest possible stage of fire growth. This will help mitigate the problems identified in Findings 1, 2, and 3, above- Climatic, Geographical and Topographical. 8. The local amendments contained in PAMC sections 15.04.280 through 15.04.295 provide for additional fire and life safety measures during construction and demolition. See Findings 2 and 3, above- Geographical and Topographical. 9. The local amendments contained in PAMC 15.04.300– Definition of “continuous gas detection system” and sections 15.04.325, 15.04.352 and 15.04.450 through 15.04.502 regarding toxic gases incorporate requirements established by the Model Toxic Gas Ordinance and California Fire Code. Administrative and restrictive measures include changes in definitions, quantities regulated, and utilizes County consensus guidelines established by other regional agencies which share similar climatic, geological/geographical, and topographical conditions. See Findings 1, 2 and 3, above- Climatic, Geographical and Topographical. 10. The local amendment contained in PAMC sections 15.04.310 and 15.04.320- Fire Protection Water Supply System, requires an adequate water supply in areas used for storage of highly combustible organic waste materials. This requirement mitigates the added hazards and limited access conditions described in Findings 1 and 3, above- Climatic and Topographical. // // NOT YET APPROVED 42 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Ch 15.04 Fire Code 11. The local amendments contained in PAMC section 15.04.510 - Storage and use of liquefied petroleum gas- place restrictions on liquid petroleum gas where natural gas is provided. These restrictions are appropriate given Palo Alto’s seismically active local geological conditions because they will reduce portable container releases in the event of seismic activity and mitigate the geological risk described in Finding 2, above- Geographical. 12. The local amendments contained in PAMC section 15.04.515 – Silane distribution systems automatic shutdown- place restrictions on silane distribution systems. These restrictions are appropriate given Palo Alto’s seismically active local geological conditions because they will reduce release volume in the event of seismic activity or unauthorized release and mitigate the geological risk described in Finding 2, above- Geographical. 13. The local amendments contained in PAMC sections 15.04.520 through 15.04.588 set forth protections for urban-wildland interface areas that are necessary to mitigate the additional fire risks in the Palo Alto foothills hazardous fire zone. The modifications contained in these amendments provide for additional precautions against fire risks and additional fire extinguishing systems necessitated by the conditions listed in Findings 1, 2, and 3, above- Climatic, Geographical and Topographical. 14. The local amendments contained in PAMC section 15.04.590- Life safety requirements for existing high rise buildings- are designed to provide additional fire and life safety features in existing high-rise buildings given the seismically sensitive geological conditions described in Findings 2 and 3, above- Geographical and Topographical. 15. The local amendments contained in PAMC section 15.05.035- Roofguards at interior courts provides for additional fire and life safety measures for firefighters on buildings with unconventional lightwells. See Findings 2 and 3, above- Geographical and Topographical. NOT YET APPROVED 1 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Adding Ch 16.16 Intl Pool Code Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Adding Chapter 16.18 of the Palo Alto Municipal Code, International Swimming Pool and Spa Code The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 16.18 of the Palo Alto Municipal Code is hereby added to read as follows: 16.18.010 2015 International Swimming Pool and Spa Code Adopted in Part and Amended. Chapters 1 through 3 and chapters 7 through 11 of the International Swimming Pool and Spa Code, 2015 Edition, are adopted and hereby incorporated into this Chapter by reference and made a part hereof as if fully set forth herein. The provisions of this Chapter shall constitute local amendments to the referenced provisions of the International Swimming Pool and Spa Code, Edition. One copy of the International Swimming Pool and Spa Code, 2015 Edition, has been filed for use and examination by the public in the Office of the Chief Building Official of the City of Palo Alto. 16.18.020 Violations -- Penalties. Any person, firm or corporation violating any provision of this chapter is guilty of a misdemeanor and upon conviction thereof shall be punished as provided in subsection (a) of Section 1.08.010 of this code. Each separate day or any portion thereof during which any violation of this chapter occurs or continues shall be deemed to constitute a separate offense, and upon conviction thereof shall be punishable as provided in this section. When the building official determines that a violation of this chapter has occurred, he/she may record a notice of pendency of code violation with the Office of the County Recorder stating the address and owner of the property involved. When the violation has been corrected, the building official shall issue and record a release of the notice of pendency of code violation. 16.18.030 Enforcement -- Citation authority. The employee positions designated in this section may enforce the provisions of this chapter by the issuance of citations; persons employed in such positions are authorized to exercise the authority provided in Penal Code section 836.5 and are authorized to issue citations for violations of this chapter. The designated employee positions are: (1) chief building official; (2) building inspection supervisor; and (3) code enforcement officer. ATTACHMENT H NOT YET APPROVED 2 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Adding Ch 16.16 Intl Pool Code 16.18.040 References to California Building Codes The International Swimming Pool and Spa Code, 2015 Edition, is hereby amended to refer to those building regulations adopted by the California Building Standards Commission in Title 24 of the California Code of Regulations, as follows: 1. Where the term “International Building Code” is used it shall be replaced with the term “California Building Code.” 2. Where the term “International Residential Code” is used it shall be replaced with the term “California Residential Code.” 3. Where the term “International Plumbing Code” is used it shall be replaced with the term “California Plumbing Code.” 4. Where the term “International Energy Conservation Code” is used it shall be replaced with the term “California Energy Code.” 5. Where the term “International Fire Code” is used it shall be replaced with the term “California Fire Code.” 6. Where the term “International Fuel Gas Code” is used it shall be replaced with the term “California Plumbing Code.” 7. Where the term “International Mechanical Code” is used it shall be replaced with the term “California Mechanical Code.” 8. Where the term “NFPA 70” is used it shall be replaced with the term “California Electrical Code.” 16.18.050 Precedence of California Building Codes. In the event of any conflict between this Chapter and provisions of the California Health and Safety Code or the building regulations adopted by the California Building Standards Commission in Title 24 of the California Code of Regulations, the provisions of the Health and Safety Code and Title 24 shall prevail. 16.18.060 Section 101.1 amended – Title. Section 101.1 of the International Swimming Pool and Spa Code is hereby amended to read: 101.1 Title. These regulations shall be known as the International Swimming Pool and Spa Code of the City of Palo Alto, hereinafter referred to as “this code.” 16.08.070 Section 105.1.1 added – Agreements to build; notice of provisions. Section 105.1.1 of the International Swimming Pool and Spa Code is hereby added to read: 105.1.1 Agreements to build; notice of provisions. Any person entering into an agreement to build a swimming pool or spa, or to engage in permitted work on a pool or spa covered by this article, shall give the consumer notice of the requirements of this code. NOT YET APPROVED 3 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Adding Ch 16.16 Intl Pool Code Pursuant to existing law, the California Department of Health Services shall have available on the department's web site, commencing January 1, 2007, approved pool safety information available for consumers to download. Pool contractors are encouraged to share this information with consumers regarding the potential dangers a pool or spa poses toddlers. Additionally, pool contractors may provide the consumer with swimming pool safety materials produced from organizations such as the United States Consumer Product Safety Commission, Drowning Prevention Foundation, California Coalition for Children's Safety & Health, Safe Kids Worldwide, Association of Pool and Spa Professionals, or the American Academy of Pediatrics. [CBC 3109.4.4.4] 16.18.080 Sections 105.6.1 and 105.6.2 deleted. Sections 105.6.1 and 105.6.2 of the International Swimming Pool and Spa Code are hereby deleted in their entireties. 16.18.090 Section 106.1.9.2 Added – Final Approval. Section 106.1.9.2 of the International Swimming Pool and Spa Code is hereby added to read: 106.19.2 Final Approval. Prior to the issuance of any final approval for the completion of permitted construction or remodeling work, the code official shall inspect the drowning safety prevention devices required and if no violations are found, shall give final approval. [CBC 3109.4.4.2] 16.18.100 Section 107 deleted. Section 107 of the International Swimming Pool and Spa Code is hereby deleted in its entirety. 16.18.110 Section 108 Amended – Means of appeal. Section 108 of the International Swimming Pool and Spa Code is hereby amended to read: Section 108 – Means of appeal. A final decision of the Chief Building Official under this code may be appealed pursuant to the provisions of Section 1.8.8 of the California Building Code, as amended. 16.18.120 Section 303.1.3 Added – Operating time. Section 303.1.3 of the International Swimming Pool and Spa Code is hereby added to read: 303.3.1 Operating time. The time switch or other control mechanism shall be installed as part of a pool water circulation control system that will allow all pumps to be set or programmed to run only during off-peak electric demand period, and for the minimum time necessary to maintain the water in the condition required by applicable public health standards. [CEnC 110.4(b)3ii] // // NOT YET APPROVED 4 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Adding Ch 16.16 Intl Pool Code 16.18.130 Section 303.4 Amended – Covers. Section 303.4 of the International Swimming Pool and Spa Code is hereby amended to read: 303.4 Covers. Heated pools and outdoor spas shall be provided with a vapor retardant cover. Exception: Where pools or spas deriving at least 60 percent of the annual heating energy from site solar or recovered energy. 16.18.140 Section 305.2 Amended – Outdoor swimming pools and spas. Section 305.2 of the International Swimming Pool and Spa Code is hereby amended to read: 305.2 Outdoor swimming pools and spas. Other than those facilities regulated in Section 305.8, all outdoor pools and spas and indoor swimming pools shall be surrounded by a barrier that complies with Sections 305.2.1 through 305.7. [CBC 3109.4.4.2] 16.18.150 Section 305.8 Added – Private swimming pools. Section 305.8 of the International Swimming Pool and Spa Code is hereby added to read: 305.8 Private swimming pools. Whenever a building permit is issued for construction of a new swimming pool or spa, or any building permit is issued for remodeling of an existing pool or spa, at a private, single-family home, it shall be equipped with at least one of the following seven drowning prevention safety features: 1. The pool shall be isolated from access to a home by an enclosure that meets the requirements of Section 305.8.1. [CBC 3109.4.4.2 #1] 2. The pool shall incorporate removable mesh pool fencing that meets ASTM F 2286 in conjunction with a gate that is self-closing and self-latching and can accommodate a key lockable device. [CBC 3109.4.4.2 #2] 3. The pool shall be equipped with an approved safety pool cover that meets all requirements of the ASTM F 1346. [CBC 3109.4.4.2 #3] 4. The residence shall be equipped with exit alarms on those doors providing direct access to the pool. [CBC 3109.4.4.2 #4] 5. All doors providing direct access from the home to the swimming pool shall be equipped with a self-closing, self-latching device with a release mechanism placed no lower than 54 inches (1372 mm) above the floor. [CBC 3109.4.4.2 #5] 6. Swimming pool alarms that, when placed in pools, will sound upon detection of accidental or unauthorized entrance into the water. These pool alarms shall meet and be independently certified to the ASTM F 2208 which includes surface motion, pressure, sonar, laser and infrared type alarms. For purposes of this section, "swimming pool alarms" shall not include swimming protection alarm devices designed for individual use, such as an alarm attached to a child that sounds when the child exceeds a certain distance or becomes submerged in water. [CBC 3109.4.4.2 #6] NOT YET APPROVED 5 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Adding Ch 16.16 Intl Pool Code 7. Other means of protection, if the degree of protection afforded is equal to or greater than that afforded by any of the devices set forth in items 1-4, and have been independently verified by an approved testing laboratory as meeting standards for those devices established by the ASTM or ASME. [CBC 3109.4.4.2 #7] Exceptions: 1. This section does not apply to any facility regulated by the State Department of Social Services even if the facility is also used as a private residence of the operator. Pool safety in those facilities shall be regulated pursuant to regulations adopted therefor by the State Department of Social Services. [CBC 3109.4.4.6] 2. Hot tubs or spas with locking safety covers that comply with the ASTM ES 13- 89. [CBC 3109.4.4.5 #2] 16.18.160 Section 305.9 Added – Enclosure. Section 305.9 of the International Swimming Pool and Spa Code is hereby added to read: 305.9 Enclosure. The enclosure for private swimming pools shall have all of the following characteristics: 1. Any access gates through the enclosure open away from the swimming pool and are self-closing with a self-latching device placed no lower than 60 inches (1524 mm) above the ground. [CBC 3109.4.4.3 #1] 2. A minimum height of 60 inches (1524 mm). [CBC 3109.4.4.3 #2] 3. A maximum vertical clearance from the ground to the bottom of the enclosure of 2 inches (51 mm). [CBC 3109.4.4.3 #3] 4. Gaps or voids, if any, do not allow passage of a sphere equal to or greater than 4 inches (102 mm) in diameter. [CBC 3109.4.4.3 #4] 5. An outside surface free of protrusions, cavities or other physical characteristics that would serve as handholds or footholds that could enable a child below the age of five years to climb over. [CBC 3109.4.4.3 #5] 16.18.170 Section 310.2 Added – Construction Requirements for building a pool or spa. Section 310.2 of the International Swimming Pool and Spa Code is hereby added to read: 310.2 Construction Requirements for building a pool or spa. Whenever a building permit is issued for the construction a new private swimming pool or spa, the pool or spa shall meet all of the following requirements: 1. The suction outlet of the pool or spa for which the permit is issued shall be equipped to provide circulation throughout the pool or spa as prescribed in Paragraph 2. 2. The swimming pool or spa shall have at least two circulation drains per pump that shall be hydraulically balanced and symmetrically plumbed through one or more "T" fittings, and that are separated by a distance of at least three feet in NOT YET APPROVED 6 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Adding Ch 16.16 Intl Pool Code any dimension between the drains. Suction outlets that are less than 12 inches across shall be covered with antientrapment grates, as specified in the ASME/ANSI Standard A 112.19.8, that cannot be removed except with the use of tools. Slots of openings in the grates or similar protective devices shall be of a shape, area and arrangement that would prevent physical entrapment and would pose any suction hazard to bathers. 3. Any backup safety system that an owner of a new swimming pools or spa may choose to install in addition to the requirements set forth in subdivisions (1) and (2) shall meet the standards as published in the document, "Guidelines for Entrapment Hazards: Making Pools and Spas Safer," Publication Number 363, March 2005, United States Consumer Products Safety Commission. 4. Whenever a building permit is for the remodel or modification of any existing swimming pool, toddler pool or spa, the permit shall require that the suction outlet of the existing swimming pool, toddler pool or spa be upgraded so as to be equipped with an antientrapment cover meeting current standards of the American Society for Testing and Materials (ASTM) or the American Society of Mechanical Engineers (ASME). Authority: Health and Safety Code Section 18942(b) Reference: Health and Safety Code Section 115928 AB 3305 (Statutes 1996, c.925); AB 2977 (Statutes 2006, c.926); AB 382 (Statutes 2007, c.XXX) 16.18.180 Section 316.2.1 Added – Construction Requirements for building a pool or spa. Section 316.2.1 of the International Swimming Pool and Spa Code is hereby added to read: 316.2.1 Certification and Installation. (a) Certification by manufacturers. Heating systems and equipment shall be certified by the manufacturer that the heating system and equipment complies with the following: 1. Efficiency. A thermal efficiency that complies with the Appliance Efficiency Regulations in Title 20, Division 2, Chapter 4, Article 4 of the California Code of Regulations; and [CEnC 110.4(a)1] 2. Instructions. A permanent, easily readable and weatherproof plate or card that gives instruction for the energy efficient operation of the pool or spa heater and for the proper care of pool or spa water when a cover is used; and [CEnC 110.4(a)3] 3. Electric resistance heating. No electric resistance heating; and Exception 1 to Section 110.4(a)4: Listed package units with fully insulated enclosures, and with tight-fitting covers that are insulated to at least R-6. Exception 2 to Section 110.4(a)4: Pools or spas deriving at least 60 percent of the annual heating energy from site solar energy or recovered energy. [CEnC 110.4(a)4] (b) Installation. Any pool or spa system or equipment shall be installed with all of the following: NOT YET APPROVED 7 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Adding Ch 16.16 Intl Pool Code 1. Piping. At least 36 inches of pipe shall be installed between the filter and the heater or dedicated suction and return lines, or built-in or built-up connections shall be installed to allow for the future addition of solar heating equipment. [CEnC 110.4(b)1] 2. Directional inlets. The swimming pool shall have directional inlets that adequately mix the pool water. [CEnC 110.4(b)3i] 16.18.190 Section 504.1 Amended – Emergency shutoff switch. Section 504.1 of the International Swimming Pool and Spa Code is hereby amended to read: 504.1 Emergency shutoff switch. One emergency shutoff switch shall be provided to disconnect power to circulation and jet system pumps and air blowers. Emergency shutoff switches shall be clearly labeled, accessible, located within sight of the spa and shall be located not less than 5 feet (1524 mm) but not greater than 10 feet (3048 mm) horizontally from the inside walls of the spa. [CElecC 686.41] SECTION 2. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION3. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. // // // // // // // // NOT YET APPROVED 8 160830 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Adding Ch 16.16 Intl Pool Code SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Development Services ____________________________ Director of Administrative Services NOT YET APPROVED 1 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Chs 16.36 and 16.40 Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Amending Chapters 16.36 (House Numbering), and 16.40 (Unsafe Buildings) of the Palo Alto Municipal Code The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Section 16.36.060 (Display of numbers required) of Chapter 16.36 (House Numbering) of Title 16 (Building Regulations) of the Palo Alto Municipal Code Unsafe Buildings is hereby amended to read as follows: No owner, occupant, lessee, tenant or subtenant of any building having an entrance which fronts on a public street shall display any number of such building or entrance thereto other than the proper number designated by the building official. Such designated number shall be placed upon or immediately above or to one side of the door, gate, post or entrance to such building or in some other conspicuous location as provided in this Chapter or Chapter 16.04. SECTION 2. Section 16.40.020 (Substandard Residential Building Defined) of Chapter 16.40 (Unsafe Buildings) of Title 16 (Building Regulations) of the Palo Alto Municipal Code Unsafe Buildings is hereby amended to read as follows: The term "substandard residential building" shall mean any residential building including any dwelling unit, guest room, or suite of rooms or the premises on which the same is located, in which any of the following conditions exist to an extent that endangers the life, limb, health, property, safety or welfare of the public or the occupants thereof: (a) Structural unsoundness, including: (1) Weakened or deteriorated footings. (2) Footings of insufficient size to carry imposed loads with safety. (3) Defective or deteriorated flooring or floor supports. (4) Flooring or floor supports of insufficient size to carry imposed loads with safety. (5) Members of walls, partitions, or other vertical supports that split, lean, list, or buckle due to defective material or deterioration. (6) Members of walls, partitions, or other vertical supports that are of insufficient size to carry imposed loads with safety. (7) Members of ceilings, roofs, ceiling and roof supports, or other horizontal members which sag, split, or buckle due to defective material or deterioration. (8) Members of ceilings, roofs, ceiling and roof supports, or other horizontal members that are of insufficient size to carry imposed loads with safety. ATTACHMENT I NOT YET APPROVED 2 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Chs 16.36 and 16.40 (9) Fireplaces or chimneys which list, bulge, or settle, due to defective material or deterioration. (10) Fireplaces or chimneys which are of insufficient size or strength to carry imposed loads with safety. (b) Improper materials of construction, including all materials except those specifically allowed or approved by this code. (c) Fire hazard, as defined in Title 15 of this code. (d) Nuisance, as defined in Chapter 9.56 of this code. (e) Improperly weatherproofed, including: (1) Crumbling, loose, or failing plaster. (2) Broken windows or doors. (3) Defective or lack of waterproofing for wood frame walls. (4) Defective or weathered exterior wall covering due to lack of paint or other approved protective coating. (5) Defective or lack of waterproofing for wood frame roofs. (6) Broken, split, decayed, or buckled exterior wall or roof covering. (f) Defective wiring, including all wiring except that which was legally installed in compliance with the Palo Alto Electrical Code in effect at the time of installation and is still maintained in good condition. (g) Defective plumbing, including all plumbing except that which was legally installed in compliance with the Palo Alto Plumbing Code in effect at the time of installation and is still maintained in good condition. (h) Defective heating and ventilation devices and accessory vents and piping, including all such devices and accessory vents and piping except those which: (1) Were legally installed in compliance with this code in effect at the time of installation and are still maintained in good condition; and (2) Are properly vented as required by this chapter. (i) Improper sanitation and safety, including: (1) Lack of one bath, lavatory and water closet in a dwelling unit. (2) Lack of one bath, lavatory and water closet either serving each ten guest rooms, or serving each twenty guests if housed in less than ten guest rooms. (3) Lack of kitchen sink in the kitchen of a dwelling unit. (4) Lack of running water to sink, bath, water closet and lavatory in a dwelling unit. (5) Lack of running water in bath, water closet and lavatory guest rooms. (6) Lack of heating device to provide hot running water for bath and kitchen sink in a dwelling unit. (7) Lack of heating device to provide hot running water for the baths serving guest rooms. (8) Lack of adequate electric lighting. (9) Lack of adequate heating system. (10) Window areas or ventilation less than that required by this chapter. (11) Room areas, ceiling height and cubic air space less than those required by this chapter. NOT YET APPROVED 3 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Chs 16.36 and 16.40 (12) Damp, wet rooms used for living purposes. (13) Infestation with insects, vermin and rodents, when so determined by the health officer. (14) General dilapidated condition and not maintained as required by this chapter. (15) Improperly enclosed or unsanitary underfloor area. (16) Improperly ventilated or reduced height of underfloor area. (17) Improperly ventilated cooking facilities. (j) Exits, including: (1) All doors, passageways, stairways, and courts which do not comply with the provisions of this chapter. (2) Lack of access to each dwelling unit, guest room, or suite of rooms without passing through some portion of another dwelling unit, guest room or suite of rooms. (k) Lack of, or defective fire protective equipment, where required by this chapter. (l) Any building which is occupied by a residential occupancy for which it was not designed or intended. (m) Visible mold growth, as determined by a health officer or a code enforcement officer, except mold that is minor and found on surfaces that accumulate moisture as part of their proper functioning and use. (n) Any residential building which constitutes a "dangerous building," as defined in this code. (o) Any residential building which constitutes a substandard building under the California State Housing Law, Section 17920.3, as it may be amended from time to time. SECTION 3. Section 16.40.040 (Dangerous Buildings Declared) of Chapter 16.40 (Unsafe Buildings) of Title 16 (Building Regulations) of the Palo Alto Municipal Code Unsafe Buildings is hereby amended to read as follows: All buildings or portions thereof which are determined by the building official to be dangerous or substandard as defined in this chapter are hereby declared to be public nuisances and shall be abated by repair, rehabilitation, demolition or removal in accordance with the procedure in this Chapter or Chapter 9.56 (Abatement of Nuisances). The procedure provided in this Chapter shall be cumulative and in addition to any other procedure or procedures provided in ordinances of this city or by state law for the abatement of any of the conditions described in this Chapter, and abatement under this chapter shall not prejudice or affect any other action, administrative, civil, or criminal, for the maintenance of any such condition. // NOT YET APPROVED 4 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Chs 16.36 and 16.40 SECTION 4. Section 16.40.060 (Notice and Order of Building Official) of Chapter 16.40 (Unsafe Buildings) of Title 16 (Building Regulations) of the Palo Alto Municipal Code Unsafe Buildings is hereby amended to read as follows: (a) Building Official to Commence Proceedings. Whenever the building official has inspected or caused to be inspected any building and has found and determined that such building is a dangerous building, he may commence proceedings to cause the repair or rehabilitation of the building or, if he finds that repairs or rehabilitation are impracticable, to cause the vacation and demolition of the building. (b) Notice and Order - Contents. To commence proceedings under this Section, the building official shall issue a notice and order directed to the record owner of the building and the person, if any, occupying or otherwise in real or apparent charge and control of the building. The notice and order shall contain: (1) The street address and a legal description sufficient for identification of the premises on which the building is located. (2) A statement that the building official has found the building to be dangerous and a public nuisance, with a brief description of the conditions which render the building dangerous and a public nuisance under the provisions of Sections 16.40.010 through 16.40.040 of this chapter, including, whenever an order to vacate and demolish is given, a finding that repair or rehabilitation is impracticable, with a brief statement of the facts upon which such finding is based. (3) An order to secure permits and physically commence elimination of the described conditions within a reasonable timeframe as determined by the building official or, if repair or rehabilitation has been found impracticable, to vacate the building and commence demolition and complete demolition within a reasonable timeframe as determined by the building official. (4) A statement advising that if the required repair or demolition work is not commenced within the time specified, the building official will order the building vacated and posted to prevent further occupancy until the work is completed, and may proceed to cause the work to be done and assess the costs thereof against the property. (5) A statement advising that any person having any record title or interest in the building may appeal from the notice and order, or any action of the building official to the city council, provided the appeal is made in writing as provided in this section, and filed with the building official within fifteen days from the date of service of such notice and order. (c) Persons Served. The notice and order, and any amended notice and order, shall be served upon each person to whom it is directed, and one copy thereof shall be served on each of the following: the holder of any mortgage or deed of trust or other lien or encumbrance of record; the owner or holder of any lease of record; and the holder of any other estate or interest of record in or to the building or the land on which it is located. The failure of the building official to make or attempt NOT YET APPROVED 5 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Chs 16.36 and 16.40 service on any person required herein to be served shall not invalidate any proceedings hereunder as to any other person duly served from any duty or obligation imposed on him by the provisions of this section. (d) Method of Service. Service of the notice and order shall be made upon all persons entitled thereto either personally or by mailing a copy of such notice and order by certified mail, postage prepaid, return receipt requested, to each such person at his address as it appears on the last equalized assessment roll of the county or as known to the building official. If no address of any such person so appears or is known to the building official, then a copy of the notice and order shall be so mailed, addressed to such person, at the address of the building involved in the proceedings. The failure of any such person to receive such notice shall not affect the validity of any proceedings taken under this section. Service by certified mail in the manner provided shall be effective on the date of mailing. (e) Proof of service of the notice and order shall be documented at the time of service by a declaration under penalty of perjury executed by the person effecting service, declaring the time and manner in which service was made. The declaration, together with any receipt card returned in acknowledgment of receipt by certified mail shall be affixed to the copy of the notice and order retained by the building official. (f) At the time the notice and order is served the building official shall file in the office of the county recorder a certificate legally describing the property and certifying that the building is a dangerous building and the owner has been so notified. Whenever the corrections ordered shall have been completed or the notice and order reversed, modified or set aside by the city council upon appeal, so that the building no longer exists as a dangerous building on the property described in the certificate, the building official shall file a new certificate with the county recorder that the building has been demolished or removed or is no longer dangerous. SECTION 5. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 6. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. // // NOT YET APPROVED 6 160831 sh 016/Dev Services/2016 Code Cycle/Final Codes/2016-08-25 (2016 Code Cyle) ORD Amending Chs 16.36 and 16.40 SECTION 7. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Development Services ____________________________ Director of Administrative Services CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR October 24, 2016 The Honorable City Council Palo Alto, California Policy and Services Committee Recommends the City Council Approve its Motions Regarding the Cable Franchise and Public, Education, and Government (PEG) Fees Audit RECOMMENDATION The Policy and Services Committee recommends that Council adopt three motions regarding the Cable Franchise and PEG Fees Audit: 1) that staff work with the Midpeninsula Media Center (Media Center) to develop options for the Council to consider for a plan going forward that complies with PEG funding restrictions while supporting the Media Center’s public access function, 2) that the City Manager’s Office move forward to demand payment of underpaid franchise and PEG fees, and 3) that staff return to the Committee with clearly defined roles and responsibilities for oversight of tracking funds and communications. DISCUSSION On May 10, 2016, the City Auditor presented the Cable Franchise and PEG Fees Audit to the Policy and Services Committee. The audit included three findings and related recommendations. The Policy and Services Committee minutes are included as Attachment B. Committee discussion largely focused on the first audit finding and how to bring the City into compliance with federal law regarding the use of PEG fees. The City, on behalf of the Cable Joint Powers and under a written agreement with the Media Center, provides all of the cable subscriber PEG fees collected to the Media Center. The agreement requires the Media Center to use PEG funds in a manner consistent with federal law, which allows PEG fees to be used only for capital costs associated with PEG access facilities to the extent that the PEG fees exceed five percent of cable subscriber fees. The federal limits on the use of PEG fees apply to all of the PEG fees collected from subscribers in the Cable Joint Powers geographic area because subscribers pay the maximum of five percent in cable franchise fees. However, the Media Center had been using the PEG fees for operating expenses rather than capital expenses. Comments from members of the public in attendance at the meeting were primarily to support the Media Center and the value it provides to the community. As a result, Policy and Services moved that staff work with the Media Center and develop options for the Council to consider a plan going forward that complies with PEG funding restrictions while supporting the Media Center’s public access function, such as: a. A framework for meeting City communications and public access needs, and Page 2 b. Consider approaches used by other agencies, and c. City purchase the Media Center’s building, and d. Upgrading City Hall broadcast technology. The City Manager’s Office is leading a team of staff that has been meeting with the Media Center to develop options for Council consideration that addresses the above direction. A proposed term sheet is nearing draft stage. Staff expects to return to Council in the next few months with options. The upgrade of the audiovisual equipment and broadcasting room in Council Chambers is an in- progress project. The second audit finding discussed Comcast’s and AT&T’s underpayment of franchise and PEG fees. Policy and Services moved to adopt the recommendations as stated in the audit report. Staff in Information Technology Department, Administrative Services Department and City Attorney’s Office have been working to resolve the underpayment of franchise and PEG fees with Comcast and AT&T. Staff expects to provide an update on this matter as part of the report on options for the Media Center. The third audit finding discussed the need to clarify roles and responsibilities regarding the City’s cable communications program. Policy and Services moved to direct staff to return to the Committee with clearly defined roles and responsibilities for oversight of tracking funds and communications. This was a summary of the first recommendation in the finding. The second recommendation, regarding the need to update the Palo Alto Municipal Code, cannot be implemented until those roles and responsibilities are clarified. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: Attachment A: Cable Franchise and Public, Education, and Government (PEG) Fee Audit (PDF) Attachment B: Policy and Services Committee Meeting Minutes Excerpt (May 10, 2016) (PDF) Department Head: Harriet Richardson, City Auditor Page 3 CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR May 10, 2016 The Honorable City Council Attention: Policy & Services Committee Palo Alto, California Cable Franchise and Public, Education, and Government (PEG) Fee Audit In accordance with the Fiscal Year 2016 Annual Audit Work Plan, the Office of the City Auditor has completed the Cable Franchise and Public, Education, and Government (PEG) Fee Audit. The audit report presents three findings with a total of nine recommendations. The Office of the City Auditor recommends that the Policy and Services Committee review and recommend to the City Council acceptance of the Cable Franchise and PEG Fee Audit. Respectfully submitted, Harriet Richardson City Auditor ATTACHMENTS: Attachment A: Cable Franchise and Public, Education, and Government (PEG) Fee Audit (PDF) Department Head: Harriet Richardson, City Auditor Attachment A Page 2 Attachment A CA AN May Ha Ho Lis O ABLE F ND GO y 10, 201 arriet Rich ouman Bo sa Wehara Office FRAN OVER 16 hardson, Ci oussina, Se a, Perform of the CHISE NME ity Auditor nior Perfo ance Audit e City E AND NT (P r rmance Au tor II Audit D PUB PEG) F uditor tor BLIC, FEE A EDUC UDIT CATIO ON, Attachment A Page intentionally left blank Attachment A PU The T a C T a REP Find Cen use PEG exp by t (Pa Find AT& am PEG RPOSE OF T e audit objecti The City of Pa and met its ov Comcast and A The City estab and state fran PORT HIGHL ding 1: The M nter did not re e of $340,000 G fees to capit penditures as the federal Ca ge 8) ding 2: Comca &T did not rem ount of franch G fees due. 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As m July 1, 2010 011, through because it did G fee payment o Counties bec ty areas direct e amounts due lculated at th underpaid fees CA 94301 ● 65 ditor website at: rmance.asp UDITOR ARY Fee Audit 010, through J education, an cess fees. franchise and ter its cable co erage of $340 e audit period ating expense the use of PEG : PEG fees, adju pital expenses ing potential a e PEG fee req w PEG fees ma ure complianc restricted fran due in accorda a result, Com , through June September 30 not provide su ts. In addition cause it remitt tly to the coun e only to the C e highest prim s, as required 0.329.2667 June 30, 2014 nd governmen PEG fees. ommunication ,000 of public d, paid by cabl s. Neither the G fees to capit ust the fee, or related to PE amendments t uirement. y be used and ce with the fed nchise fees or ance with DIV cast underpai e 30, 2014, an 0, 2014. ufficient recor , AT&T’s unde ted fees collec nties and coul Cable Joint Po me lending rat by DIVCA. DIV 4: t (PEG) fees ns program c, education, le television e City nor the tal expenses r discontinue G access to their d require deral Cable other funds VCA and the id about nd AT&T rds for us to erpayments cted from ld not provide wers (see te during the VCA also e Attachment A requires that AT&T pay the City for its portion of the audit costs because AT&T’s underpayment exceeds 5 percent of the amount that it should have paid. Key Recommendations to the City Manager’s Office: Send letters to AT&T and Comcast demanding payment of the underpaid franchise and PEG fees, interest due, and for AT&T, its portion of the audit costs. Work with AT&T and Comcast to develop methods to ensure accuracy of their address databases and the basis for determining the revenues on which franchise and PEG fees should be calculated. Review franchise and PEG fee payments to ensure they were calculated based on the established criteria and promptly follow up on discrepancies. Finding 3: Roles and responsibilities for managing the City’s cable communications program are not clearly defined or assigned (Page 21) The City has not clearly assigned or defined roles and responsibilities for its cable communications program or effectively managed the program to ensure that funds are used appropriately and that program outcomes are consistent with the City’s and residents’ cable communications needs. Key Recommendations to the City Manager’s Office: Assign responsibility for the City’s cable communications program and require the assigned department to provide appropriate program oversight. Submit a draft ordinance to the Palo Alto City Council recommending revisions to the Palo Alto Municipal Code based on the revised assignment of roles and responsibilities. Comcast and AT&T Underpaid Franchise and PEG Fees by Revenue Category July 1, 2010, through June 30, 2014 Revenue Category Atherton East Palo Alto Menlo Park Palo Alto Santa Clara San Mateo Total Comcast ‐ July 1, 2010, through June 30, 2014 Advertising Revenue $3,797 $7,506 $18,455 $35,259 $3,937 $1,406 $70,360 Flat fees $1,973 $6,499 $8,783 $17,145 $1,821 $428 $36,649 CPUC and FCC Fees $1,139 $2,233 $5,329 $10,276 $931 $320 $20,228 Unreturned Equipment $53 $75 $143 $315 $17 $603 Underpaid Franchise Fees $6,962 $16,313 $32,710 $62,995 $6,706 $2,154 $127,840 Underpaid PEG Fees $8,548 $4,197 $12,745 Total Due from Comcast $6,962 $16,313 $32,710 $62,995 $15,254 $6,351 $140,585 AT&T ‐ July 1, 2011, through September 30, 20141, 2 Santa Clara County Revenue & Adjustments $542 $2,261 $2,837 $6,215 $4,455 $4,006 $20,316 Advertising $126 $503 $814 $2,025 $1,212 $1,032 $5,712 Unreturned Equipment $164 $4,231 $1,152 $2,197 $5,280 $5,280 $18,304 Other Revenues (Repair, Installation, etc.) $108 $462 $444 $1,050 $1,017 $1,017 $4,098 Underpaid Franchise Fees $940 $7,457 $5,247 $11,487 $11,964 $11,335 $48,430 Underpaid PEG Fees $2,126 $25,091 $27,217 Total Due from AT&T $940 $7,457 $5,247 $11,487 $14,090 $36,426 $75,647 Grand Total Due from Comcast and AT&T $7,902 $23,770 $37,957 $74,482 $29,344 $42,777 $216,232 1 The figures shown for Santa Clara and San Mateo Counties include AT&T underpayments for all county areas because AT&T did not provide sufficient information to calculate underpayments specific only to the Cable Joint Powers. 2 Some AT&T underpayments are estimates because AT&T did not provide all requested records. Source: Comcast and AT&T financial records Attachment A TABLE OF CONTENTS Audit Objectives ......................................................................................................................................... 1 Background ................................................................................................................................................. 1 Audit Scope ................................................................................................................................................. 4 Audit Methodology ..................................................................................................................................... 5 Compliance with government auditing standards and independence impairment .................................. 6 Finding 1 ..................................................................................................................................................... 8 The Media Center did not restrict its use of $340,000 of annual PEG fees to capital expenditures as required by the federal Cable Act ......................................................................................................... 8 Recommendations ............................................................................................................................. 12 Finding 2 .................................................................................................................................................. 14 Comcast and AT&T did not remit the full amount of franchise and PEG fees due ........................... 14 Recommendations ............................................................................................................................. 20 Finding 3 .................................................................................................................................................. 21 Roles and responsibilities for managing the City’s cable communications program are not clearly defined or assigned ............................................................................................................................ 21 Recommendations ............................................................................................................................. 22 APPENDIX 1 – City Manager’s Response ................................................................................................. 23 APPENDIX 2 – Media Center’s Response ................................................................................................. 28 APPENDIX 3 – Auditor Comments Regarding Media Center’s Response ................................................ 91 APPENDIX 4 – Legal Response ................................................................................................................. 96 ABBREVIATIONS ASD Administrative Services Department DIVCA Digital Infrastructure and Video Competition Act FCC Federal Communications Commission FY Fiscal Year I‐Net Institutional Network IT Information Technology JPA Joint Powers Authority PEG Public, Education, and Government Attachment A Page intentionally left blank Attachment A Cable Franchise and PEG Fee Audit 1 INTRODUCTION Audit Objectives The audit objectives were to determine whether and to what degree, from July 1, 2010, through June 30, 2014: The City of Palo Alto accurately accounted for its receipt of franchise and public, education, and government (PEG) fees and met its oversight responsibilities regarding the Media Center’s use of public, education, and government PEG access fees. Comcast and AT&T collected and promptly remitted the appropriate amount of franchise and PEG fees. The City established and sufficiently defined roles and responsibilities to administer its cable communications program and state franchises awarded to Comcast and AT&T. Background Legal framework: franchise and PEG fees The California Digital Infrastructure and Video Competition Act (DIVCA) of 2006 gives the California Public Utilities Commission sole authority to issue video and cable franchises to companies that provide such services within the state. DIVCA requires a franchise holder to pay a franchise fee of 5 percent of its gross revenues to each jurisdiction served, unless the jurisdiction adopts an ordinance that sets a lower fee, as rent or toll for using the public rights‐of‐ way. DIVCA requires franchise holders to provide PEG access channels within each jurisdiction served, and jurisdictions may adopt an ordinance that establishes a fee to support PEG channel facilities. DIVCA limits the PEG fee to 1 percent of the franchise holder’s gross revenues for entities that did not assess a PEG fee prior to December 31, 2006. The federal Cable Communications Policy Act of 1984 (Cable Act), 47 U.S.C. § 542, restricts the use of PEG fees to capital expenses associated with PEG access facilities when the fee is assessed in addition to a franchise fee, but allows paid advertising, underwriting, or sponsorships to fund PEG‐related activities. Franchise holders may pass both the franchise and PEG fees on to their cable subscribers. DIVCA requires franchise holders to maintain records so the local entities can assess the accuracy of franchise and PEG fee payments. Joint Exercise of Powers Agreement The cities of Palo Alto, Menlo Park, and East Palo Alto; the Town of Atherton; and unincorporated portions of San Mateo and Santa Clara Counties created a Joint Powers Authority (JPA) in 1983 to obtain cable television service within these jurisdictions. The JPA members are known as the Cable Joint Powers. Two cable franchise holders, Comcast and AT&T, currently serve the Cable Joint Powers. Attachment A Cable Franchise and PEG Fee Audit 2 Palo Alto administers and enforces the state franchises on behalf of the Cable Joint Powers through an agreement among the members. A working group comprised of Cable Joint Powers members considers cable and video service‐related issues related to state franchises. JPA franchise and PEG fees The Palo Alto Municipal Code (Municipal Code) requires each franchise holder to activate seven PEG access channels on its network. It sets the cable franchise fee at 5 percent of the franchise holder’s gross revenues and the PEG support fee at 88 cents per month per subscriber. The other Cable Joint Powers members have similar requirements, except Santa Clara County requires a PEG support fee that is the higher of 1 percent of gross revenues or 88 cents per subscriber, limited to 3 percent of gross revenues, and San Mateo County requires a PEG support fee that is the higher of 1 percent of gross revenues or 88 cents per subscriber. Roles and responsibilities The Municipal Code defines roles and responsibilities for managing the City’s cable communications program: The Office of the City Clerk is responsible for managing the City’s cable communications program. The City Manager designates a cable coordinator to administer and provide oversight of state franchises in the City. The City may designate one or more entities, including itself, to control and manage the use of PEG access channels and any PEG facilities and equipment. The City, through its Information Technology (IT) Department, contracts with an individual who serves as the City’s cable coordinator to oversee and manage the cable communications program. This position was formerly managed in the Administrative Services Department (ASD) but was moved under the oversight of IT when IT became a separate department from ASD. Use of funds and financial reporting Palo Alto distributes the franchise fees to each of the Cable Joint Powers based on the percentage of fees derived from Comcast’s and AT&T’s subscribers within each jurisdiction, after: Reimbursing Palo Alto for its costs to administer the state franchises, including the fees paid to the cable coordinator. Paying the costs of regulatory and oversight functions. Paying for other cable‐ or video‐related activities that benefit the area in which the revenue was generated. Attachment A Cable Franchise and PEG Fee Audit 3 In 2001, the Palo Alto City Council designated the Midpeninsula Community Media Center, Inc., (Media Center) as the community access organization to meet the Cable Joint Powers’ existing and future PEG access needs. The City’s 2011 contract with the Media Center requires Palo Alto to remit all of the PEG fees it receives from Comcast and AT&T on behalf of the Cable Joint Powers to the Media Center. The City separately contracts with the Media Center for cablecasting services, including broadcasting Palo Alto City council and committee meetings via cable television. Palo Alto currently receives about 50 percent of the allocated franchise fee revenues. Exhibit 1 shows the distribution of franchise fees to the Cable Joint Powers, and Exhibit 2 shows the total PEG fees received and remitted to the Media Center from July 1, 2010, through June 30, 2014. Exhibit 1: Franchise Fee Payments to Each Jurisdiction Jurisdiction FY 2011 FY 2012 FY 2013 FY 2014 Comcast AT&T* Comcast AT&T* Comcast AT&T* Comcast AT&T* Palo Alto $688,735 $96,631 $678,092 $131,907 $716,504 $137,738 $735,326 $135,902 Menlo Park $384,301 $34,815 $380,990 $49,218 $399,290 $55,996 $412,231 $64,065 East Palo Alto $130,772 $21,645 $130,560 $28,915 $135,299 $34,505 $137,082 $39,495 Atherton $105,734 $5,981 $105,191 $8,955 $111,060 $10,524 $116,765 $10,735 Santa Clara County $82,831 ‐ $84,322 ‐ $92,266 ‐ $100,399 ‐ San Mateo County $32,917 ‐ $33,084 ‐ $33,869 ‐ $34,019 ‐ Total $1,425,289 $159,072 $1,412,239 $218,995 $1,488,289 $238,763 $1,535,822 $250,198 *No revenue is shown from AT&T for Santa Clara and San Mateo Counties because AT&T remitted all of its franchise fee payments for Santa Clara and San Mateo Counties directly to the counties. Source: City of Palo Alto financial records Exhibit 2: PEG Fees Remitted to the Media Center Jurisdiction FY 2011 FY 2012 FY 2013 FY 2014 Comcast AT&T2 Comcast1 AT&T2 Comcast1 AT&T2 Comcast1 AT&T2 Palo Alto $156,306 $19,573 $251,013 $25,440 $297,289 $26,978 $294,613 $28,062 Menlo Park $79,199 $6,693 $25,811 $8,990 ‐ $10,620 ‐ $12,305 East Palo Alto $33,495 $4,117 $10,849 $5,279 ‐ $6,643 ‐ $7,958 Atherton $15,736 $1,072 $5,157 $1,479 ‐ $1,774 ‐ $1,918 Santa Clara County $15,368 ‐ $5,120 ‐ ‐ ‐ ‐ ‐ San Mateo County $5,944 ‐ $1,975 ‐ ‐ ‐ ‐ ‐ Total $306,047 $31,455 $299,925 $41,188 $297,289 $46,016 $294,613 $50,243 1 Starting in November 2011, Comcast stopped providing a detailed breakdown by jurisdiction; total PEG fees are shown under Palo Alto. 2 No revenue is shown from AT&T for Santa Clara and San Mateo Counties because AT&T remitted all of its PEG fee payments for Santa Clara and San Mateo Counties directly to the counties. Source: City of Palo Alto financial records Attachment A Cable Franchise and PEG Fee Audit 4 Palo Alto established the Cable Fund as a restricted‐use fund for nonrecurring cable‐related revenue, such as settlements and grants. The fund is used to carry out specific actions required by the policy. The fund’s balance was $759,000, including about $4,000 in interest receivable, as of June 30, 2014. In FY 2015, the City began using the Cable Fund to record franchise and PEG fee remittances from the cable companies and to allocate the fees to the Cable Joint Powers and the Media Center, respectively. Exhibit 3 summarizes the main components of the cable communications program, which generates $2.1 million in revenues and incurs $436,000 in expenditures annually for the Cable Joint Powers. Exhibit 3: Summary of Estimated Annual Cable Communications Program FY 2014 Revenues and Expenditures Program Revenues Collected from Comcast and AT&T Franchise fees $1.8 million ‐ distributed to the Cable Joint Powers, after deducting the City’s expenses, based on the percentage of fees generated within each area PEG fees $345,000 ‐ all remitted to the Media Center (see program expenditures below) Total $2.1 million Program Expenditures Management and oversight $48,000 ‐ consultant (cable coordinator) costs, allocated to the Cable Joint Powers $14,000 ‐ other costs (cable program oversight, accounting, procurement, financial statement preparation, legal, audit, etc.), allocated to the Cable Joint Powers Media Center* $345,000 in pass‐through PEG fees to the Media Center Institutional Network (I‐Net) operation and management $29,000 ‐ Comcast contract costs for use of I‐Net fiber, allocated to the Cable Joint Powers through the Cable Fund Total $436,000* Estimated Net Annual Program Revenues* $1.7 million ‐ net unrestricted Cable Joint Powers revenues * An additional $125,000 for cablecasting services (i.e., broadcasting via cable television), including Palo Alto City Council and committee meetings, is associated with the City’s contract with the Media Center and is not allocated to the Cable Joint Powers or included in the estimated net annual program revenues shown above. Source: Estimates based on City of Palo Alto financial records, staff reports, and contracts Audit Scope We assessed the City’s oversight of its cable communications program and the use of franchise and PEG fee payments that Comcast and AT&T collected from cable subscribers in the Cable Attachment A Cable Franchise and PEG Fee Audit 5 Joint Powers areas and remitted to Palo Alto from July 1, 2010, through June 30, 2014. We also reviewed Cable Fund activity from its inception in 2000. We did not review changes that the City made after the audit period for how it accounts for franchise and PEG fees and use of the Cable Fund. Scope Limitations Despite repeated requests, AT&T did not provide all information needed to perform a complete review of the accuracy and completeness of the franchise and PEG fees it remitted to Palo Alto. As a result, The Buske Group sometimes estimated AT&T’s underpayment of franchise and PEG fees based on common industry practices. We intended our audit to cover four years, based on DIVCA’s data retention provision, but AT&T only provided three years of data based on the DIVCA provision that requires claims for refunds or other corrections to be made within three years and 45 days of the end of the quarter for which compensation was remitted, or three years from the date of remittance, whichever is later. However, AT&T provided information for July through September 2014, which was not originally included in the audit period. AT&T remitted fees collected from subscribers in unincorporated Santa Clara and San Mateo Counties directly to the counties and could not provide the information needed to calculate the amounts due for the unincorporated areas specific to the Cable Joint Powers. As a result, the audit report includes estimates of AT&T’s franchise and PEG fee underpayments for all of Santa Clara and San Mateo Counties, including areas that are not in the Cable Joint Powers. Audit Methodology To conduct this audit, we: Reviewed federal, state, and local regulations regarding collection and use of franchise and PEG fees. Assessed the City’s process to calculate and remit franchise and PEG fees to the Cable Joint Powers and the Media Center, respectively. Reviewed the City’s and the Media Center’s financial records to determine whether franchise and PEG fees were used appropriately. Interviewed the cable coordinator and staff in the Office of the City Clerk, ASD, IT Department, and Media Center to assess operation and oversight of the state franchises and the City’s cable communications program. Attachment A Cable Franchise and PEG Fee Audit 6 Consulted with the City Attorney for legal advice regarding the federal Cable Act and DIVCA. Contracted with The Buske Group, a subject‐matter expert, to obtain and review Comcast and AT&T records on our behalf to determine if they collected and promptly remitted the appropriate amount of franchise and PEG fees to the City. Data Reliability We assessed the reliability of the Comcast and AT&T data by interviewing our hired subject matter expert, who was knowledgeable about the data, and by comparing Comcast and AT&T address and fee allocation data with Cable Joint Powers members’ address data to identify any miscoding that could result in payment misallocation. Except as noted in the Scope Limitations section above, we determined that the data were sufficiently reliable for the purposes of this report. Compliance with government auditing standards and independence impairment We conducted this performance audit of cable franchise and PEG fees in accordance with our FY 2014 and FY 2015 Annual Audit Work Plans and generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. Except as noted in the Scope Limitations section above, we believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. The government auditing standards require auditors to be free from external interference or influence that could compromise an auditor’s professional judgment or create the appearance that the auditor’s professional judgment may be compromised. Subsequent to our providing the Media Center with a copy of the draft audit report and discussing our finding regarding the Media Center’s use of PEG fees, the Media Center commissioned Sue Buske, president of The Buske Group, to write a paper supporting the appropriateness of the Media Center’s use of PEG fees for what we identified as operating expenses. When Ms. Buske wrote the opinion, which conflicts with our conclusions, she was under contract with our office to perform work for a separate audit objective unrelated to the use of PEG fees, although we had informed her of the nature of our work regarding the use of PEG fees. Prior to beginning her work for the Office of the City Auditor, Ms. Buske had signed an “independence statement” to confirm that she was not biased (i.e., political, ideological, social, or other Attachment A Cable Franchise and PEG Fee Audit 7 convictions that might impair her independence related to the subject matter of the audit) and that she would immediately notify the City Auditor regarding any new threats to independence that occurred during the course of the audit or after the report is issued. Ms. Buske did not notify the City Auditor as required by the independence statement. When we became aware of this situation and asked Ms. Buske about the opinion document, she referred us back to the Media Center. The Media Center indicated that they would rely on Ms. Buske’s opinion when responding to our audit finding. Although Ms. Buske’s work on the audit was limited to determining whether Comcast and AT&T had collected and promptly remitted the appropriate amount of franchise and PEG fees, we believe that Ms. Buske’s opinion document and lack of notification to the City Auditor creates the appearance that the auditor’s professional judgment may be compromised. To avoid an independence impairment, we relied on the research and legal advice that we had obtained during the audit and not on Ms. Buske’s opinion document. Attachment A Cable Franchise and PEG Fee Audit 8 Finding 1 The Media Center did not restrict its use of $340,000 of annual PEG fees to capital expenditures as required by the federal Cable Act The Media Center inappropriately used an annual average of $340,000 of public, education, and government (PEG) fees, or $1.4 million during the audit period, paid by cable television subscribers in the Cable Joint Powers areas, for operating expenses.1 Neither the City nor the Media Center enforced the federal law that restricts the use of PEG fees to capital expenses associated with PEG access facilities.2 $1.4 million of PEG fees used for operating expenses did not comply with federal law From July 1, 2010, through June 30, 2014, Comcast and AT&T collected $1.4 million in PEG fees from cable television subscribers in the Cable Joint Powers areas. They remitted the fees to the City of Palo Alto, which gave them to the Media Center, as required by the written agreement with the Media Center. To the extent that the Media Center used the fees for operating expenses, the expenditures did not comply with the federal law that restricts the use of PEG fees to capital expenditures for PEG access facilities. Federal law does not restrict the use of franchise fees, but does restrict the use of PEG fees to capital expenses for PEG access facilities. Because the Cable Joint Powers impose a PEG support fee, the PEG fee must be used only for capital expenses associated with PEG access facilities. Media Center’s records support that PEG fees were allocated to operating expenses Media Center staff provided detailed financial records showing that it allocated PEG fees to operating expenses, including salaries and benefits, professional services, janitorial services, maintenance, outreach, and insurance: In calendar year 2013, $340,000 in PEG funds comprised more than 40 percent of the Media Center’s operating revenue. 1 Because the Media Center’s fiscal years run from January 1 through December 31, we were able to review its financial records only through December 31, 2013, although our audit period ran through June 30, 2014. The differences in timing do not affect the issues cited in our findings, although the dollar amounts may differ. 2 The Media Center’s accounting policies in use during the audit period say that it capitalizes the aggregate cost of assets over $1,500 and expenses maintenance and repair costs as incurred. A 2008 federal appellate court decision ruled that Congress intended “capital costs associated with the construction of PEG access facilities” to refer to channel capacity designated for PEG use, as well as for facilities and equipment, including vans, studios, cameras, or other equipment, related to the use of PEG channel capacity. Attachment A Cable Franchise and PEG Fee Audit 9 From calendar year 2010 through 2013, the Media Center had only $161,563 in capital expenditures associated with its PEG program, including website redesign, a cablecasting system, computers, software, and camcorders. Although the Media Center received $1.4 million in PEG fees during this period and had only $161,563 in capital expenditures,3 it requested, and the City paid, an additional $52,708 from the Cable Fund for a portion of the cost of a cablecasting system that the Media Center purchased. Media Center’s capital plan does not show capital needs related to PEG access facilities The Media Center’s August 2014 capital plan did not show planned capital expenditures through 2018 or plans to construct or expand PEG access facilities, but Media Center staff said that the Media Center Board had recently approved spending $579,000 from the Media Center’s “investment account” to provide high‐definition broadcasting in its studios. The studio update is a potentially qualifying capital expense for use of PEG fees, but the Media Center did not identify it as such. Media Center staff provided financial records in April 2015 showing that it had over $427,000 in capital expenditures in calendar year 2014 and an equal amount budgeted for calendar year 2015 for its studio upgrade project. Although these may have qualified as an appropriate use of PEG fees under the federal Cable Act, the Media Center used its investment fund for these expenditures and used the PEG fees for operating expenses. Agreement with the Media Center requires compliance with DIVCA and the federal Cable Act The agreement between the City of Palo Alto and the Media Center requires the Media Center to use PEG funds in a manner consistent with DIVCA and federal law. It specifically states that PEG fees shall not be construed to be a franchise fee within the meaning of the Cable Act, which allows the PEG fees to be used only for capital costs associated with PEG access facilities. The agreement requires the Media Center to provide the City with an annual plan and budget that lists the activities and programs for which it plans to use funds received from the City during the following fiscal year. Although the Media Center provided its annual plan and budget as required, the City’s cable coordinator reviewed the plan based on the Media Center’s incorrect definition of capital expenditures, which did not ensure that the Media Center used the PEG fees in compliance with the Cable Act. 3 We did not assess whether these capital expenditures were actually for items that were specific to PEG access facilities. Attachment A Cable Franchise and PEG Fee Audit 10 The agreement also states that equipment or facilities purchased with PEG fees or City funds belong to the City upon termination of the agreement or dissolution of the Media Center. To the extent that the Media Center used the PEG fees for operating expenses instead of tangible capital expenses, there is less equipment or facilities in the Media Center’s possession for potential transfer to the City upon termination of the agreement. Some thought the Media Center was “grandfathered in” to use PEG fees for operating expenses A 2011 Congressional Research Service report said that more than 100 PEG access centers nationwide have closed due to restrictions on the use of PEG fees and the lack of other funding to support operating expenses. Despite the Media Center’s acknowledgment of those closings, its executive director and the City’s cable coordinator said they believed that the Media Center was “grandfathered in” under DIVCA to use the funds as they had under the City’s prior local franchise agreements. However, neither DIVCA nor the City’s agreement with the Media Center allow the PEG fees to be used in a manner other than as prescribed in the federal Cable Act, and DIVCA specifically requires that PEG fees only be used “as authorized under federal law.” Franchise fees, Cable Fund, or Media Center’s investment account could have paid for Media Center operations Instead of providing all of the PEG fees collected to the Media Center without knowing if there was a specific capital‐expense need for the fees, the Cable Joint Powers could have used some of the franchise fees collected to support the Media Center’s ongoing operations. It was not within the scope of our audit to review how the Cable Joint Powers members used their allocation of franchise fees, but the Media Center’s financial statements do not show that it received franchise fees from any Cable Joint Power members. The Cable Fund was another option for supporting the Media Center’s operating costs related to PEG channels. The JPA’s Cable Fund policy prioritizes support to the Media Center to operate the PEG channels, but the Cable Joint Powers did not allocate Cable Fund revenues to the Media Center for operating expenses. Doing so would have allowed the Media Center to reserve the PEG fees received for capital expenses associated with PEG access facilities and be compliant with the federal Cable Act. A third option would have been for the Media Center to use its investment account for its operating expenses. The Media Center already uses this account to offset the portion of its annual operating expenses that exceed its revenues from PEG fees and other sources. The investment account, established through a Attachment A Cable Franchise and PEG Fee Audit 11 charitable contribution received when the former Cable Co‐op sold its principal assets to AT&T, had a balance of $6.4 million as of December 31, 2014. Customer usage and satisfaction data for PEG channels not tracked Neither the City nor the Media Center collect customer usage and satisfaction data, such as frequency and duration of resident access to Media Center PEG channels, ease of access to PEG channels, and users’ overall satisfaction with PEG channel programming and transmission quality. The Media Center provided us with a 2004 telephone survey, which showed that about one‐third of all subscriber respondents had watched at least one Media Center channel and 70 percent of those viewers, or 23 percent of those surveyed, had watched a City Council or other public meeting ‐ a lower than anticipated viewership. Consistent with these results, Palo Alto’s National Citizen Survey™ show a declining trend in PEG channel viewership. In 2006, 31% of respondents reported that they had watched a meeting of local elected officials or other public meeting on cable television, the internet, or other media during the previous year compared to 16% in 2014. Concerns about ongoing usefulness of PEG channels The above issues may raise questions about the ongoing need for PEG access channels, particularly because there have been significant changes in technology since the Cable Act and DIVCA were enacted, and other options are now available for residents to obtain local information and programming. A November 2008 Mackinac Center Policy Brief provided insights on the evolving state of PEG channels:4 Only a small portion of cable subscribers actually watch the programming on PEG channels. PEG channels do offer some benefits today, including broadcasts of local government meetings, school concerts, sporting events, graduation ceremonies, and training opportunities for aspiring filmmakers. The idea that PEG channels offer unique choices to viewers is outdated. Much of the programming and local information is available on the internet through websites such as YouTube and through e‐mail groups, rendering PEG channels increasingly redundant. 4 Theodore Bolema, Ph.D., J.D., An Evaluation of Legislative Proposals for Higher Cable Fees to Finance Public, Education and Government Access Channels (Mackinac Center Policy Brief, November 10, 2008), available at https://www.mackinac.org/archives/2008/2008‐11REGfeesWEB.pdf. Attachment A Cable Franchise and PEG Fee Audit 12 There is no real evidence that cable subscribers want more PEG channels or that PEG cable channel viewing will significantly increase following the proposed increase in funding.5 Recommendations We recommend that the City Manager’s Office: 1.1 Consult with ASD, IT, the City Attorney’s Office, and Cable Joint Powers members to assess the need to continue collecting PEG fees and adjust the fee based on a demonstrated need for future capital expenses related to PEG access facilities or discontinue collecting the fee. a. If it is determined that the PEG fee should be adjusted or discontinued, submit a staff report to the City Council with a recommendation to amend the Municipal Code to reflect the revised fee or to eliminate the requirement and recommend to the other Cable Joint Powers members that they do the same. b. If it is determined that the PEG fee should continue to be collected: Amend the agreement with the Media Center to remove the requirement for the City to remit all PEG fees collected to the Media Center. Coordinate with ASD, the City Attorney’s Office, and the Cable Joint Powers to develop and implement criteria for the use of PEG fees to ensure compliance with the federal Cable Act, and that the fees are set at a level appropriate for anticipated and necessary capital expenses. Place the PEG fees in a restricted account and distribute them based on City‐approved capital expenditures that meet federal Cable Act requirements. Require that semi‐annual documentation of expenditures be provided and adopt procedures to review the documentation to ensure that PEG fees are spent only as allowed by the federal Cable Act and take immediate corrective action as necessary. 5 This was in reference to proposed amendments to Michigan state law that would have removed several legal limitations on the amount of PEG fees that local governments could charge cable companies to finance local PEG channels. Attachment A Cable Franchise and PEG Fee Audit 13 1.2 Consult with ASD, IT, the City Attorney’s Office, and the Cable Joint Powers on whether to allocate a portion of the unrestricted franchise fees or other funds, instead of restricted‐use PEG fees, to subsidize the Media Center’s operations or to discontinue subsidizing the Media Center’s operations. Based on the resulting recommendation, the City Manager’s Office should make recommendations to the Council regarding appropriate future funding, if any, for the Media Center. Attachment A Cable Franchise and PEG Fee Audit 14 Finding 2 Comcast and AT&T did not remit the full amount of franchise and PEG fees due Comcast and AT&T did not always calculate the fees due in accordance with DIVCA and the municipal code of each of the Cable Joint Powers. As a result, Comcast underpaid about $141,000 in franchise and PEG fees from July 1, 2010, through June 30, 2014, and AT&T underpaid about $76,000 from July 1, 2011, through September 30, 2014.6 AT&T’s underpayments are estimated because it did not provide sufficient records for us to verify the accuracy of franchise and PEG fee payments. In addition, AT&T’s underpayments are for all of Santa Clara and San Mateo Counties because it remitted fees collected from subscribers in the unincorporated county areas directly to the counties and could not provide the information needed to calculate the amounts due only to the Cable Joint Powers (see scope limitations section on page 5). Comcast and AT&T will owe interest, calculated at the highest prime lending rate during the delinquency period plus 1 percent, on underpaid fees, as required by DIVCA. DIVCA also requires that AT&T pay the City for its portion of the audit costs because AT&T’s underpayment exceeds 5 percent of the amount that it should have paid. Comcast and AT&T underpaid $216,000 in franchise and PEG fees Comcast underpaid the Cable Joint Powers about $128,000 in franchise fees and $13,000 in PEG fees, and AT&T underpaid about $48,000 in franchise fees and $27,000 in PEG fees.7 Comcast and AT&T underpaid franchise and PEG fees because they did not always comply with provisions of DIVCA and the Cable Joint Powers’ municipal codes that require: Payment of a 5 percent franchise fee based on gross revenues for all charges billed to subscribers for cable or video service provided by the franchise holders and their affiliates, including 6 AT&T provided data for July 1, 2011, through September 30, 2014, based on the DIVCA requirement for local entities to make claims for underpayments within three years and 45 days of the end of the quarter for which compensation was remitted or three years from the remittance date, whichever is later. 7 AT&T’s estimated underpayments shown in this report include all of Santa Clara and San Mateo Counties because AT&T does not maintain its records in a manner that would allow us to calculate underpayments only for the unincorporated county areas that are within the Cable Joint Powers geographical area. Attachment A Cable Franchise and PEG Fee Audit 15 revenue related to programming provided to the subscriber, equipment rentals, late fees, and insufficient fund fees. Payment of an $0.88 PEG fee per subscriber, except for Santa Clara and San Mateo Counties, which require the fee to be the higher of $0.88 per subscriber or 1 percent of gross revenue. Exhibit 4 summarizes the amount of underpaid franchise and PEG fees for each of the Cable Joint Powers members. Exhibit 4: Comcast and AT&T Underpaid Franchise and PEG Fees by Revenue Category Revenue Category Atherton East Palo Alto Menlo Park Palo Alto Santa Clara San Mateo Total Comcast ‐ July 1, 2010, through June 30, 2014 Advertising Revenue $3,797 $7,506 $18,455 $35,259 $3,937 $1,406 $70,360 Flat fees $1,973 $6,499 $8,783 $17,145 $1,821 $428 $36,649 CPUC and FCC Fees $1,139 $2,233 $5,329 $10,276 $931 $320 $20,228 Unreturned Equipment $53 $75 $143 $315 $17 ‐ $603 Underpaid Franchise Fees $6,962 $16,313 $32,710 $62,995 $6,706 $2,154 $127,840 Underpaid PEG Fees ‐ ‐ ‐ ‐ $8,548 $4,197 $12,745 Total Due from Comcast $6,962 $16,313 $32,710 $62,995 $15,254 $6,351 $140,585 AT&T ‐ July 1, 2011, through September 30, 20141, 2 Revenue Adjustments $542 $2,261 $2,837 $6,215 $4,455 $4,006 $20,316 Advertising $126 $503 $814 $2,025 $1,212 $1,032 $5,712 Unreturned Equipment $164 $4,231 $1,152 $2,197 $5,280 $5,280 $18,304 Other Revenues (Repair, Installation, etc.) $108 $462 $444 $1,050 $1,017 $1,017 $4,098 Underpaid Franchise Fees $940 $7,457 $5,247 $11,487 $11,964 $11,335 $48,430 Underpaid PEG Fees ‐ ‐ ‐ ‐ $2,126 $25,091 $27,217 Total Due from AT&T $940 $7,457 $5,247 $11,487 $14,090 $36,426 $75,647 Grand Total Due from Comcast and AT&T $7,902 $23,770 $37,957 $74,482 $29,344 $42,777 $216,232 1 Only portions of unincorporated county areas are included in the Cable Joint Powers geographical area. However, the figures shown for Santa Clara and San Mateo Counties include AT&T underpayments for all county areas because AT&T did not provide sufficient information to calculate underpayments specific only to the Cable Joint Powers. 2 Some AT&T underpayments are estimates because AT&T did not provide all requested records. Source: Comcast and AT&T financial records Comcast and AT&T did not pay franchise fees on all advertising revenue Comcast underpaid about $70,000 in franchise fees because it excluded from its gross revenue the commissions paid by its advertising affiliate, Spotlight, to third‐party advertising agencies and their representatives and because it did not include revenue that Spotlight earned from assisting other cable operators in the Cable Joint Powers areas. DIVCA requires an affiliate’s revenue to be treated as the franchise holder’s revenue, and specifically states Attachment A Cable Franchise and PEG Fee Audit 16 that not doing so has the effect of evading the payment of fees that would otherwise be paid to the local entity. AT&T underpaid franchise fees by about $6,000, based on a standard 15 percent commission charged by advertising agencies to assist in selling advertising time to businesses. The Buske Group estimated this amount because AT&T did not provide sufficient information to verify advertising revenue. Comcast did not pay franchise fees on all flat fees charged to subscribers Comcast underpaid about $37,000 in franchise fees because it did not include in its gross revenues all flat fees collected from its subscribers. Flat fees include late, nonsufficient fund, convenience, wire maintenance, early termination, and collection fees. Instead, Comcast allocated to its gross revenues only the flat fee charges that represented subscribers’ video revenue as a percentage of its total revenue, which could include other services, such as internet and telephone. Because flat fees are not based on a subscriber’s service level, the only amounts that should be excluded from gross revenues are those for subscribers who did not have video service. Comcast also excluded from its revenues its expenses for collecting past‐due payments. The Buske Group estimated this underpayment because Comcast only provided records of net collection fees. AT&T remitted fees collected from subscribers in unincorporated Santa Clara and San Mateo County areas directly to the counties The Cable Joint Powers agreement requires Palo Alto to remit to the JPA members the franchise and PEG fees that Comcast and AT&T collect from subscribers, based on the percentage of total fees collected in each member’s jurisdiction and after deducting the City’s administrative costs. The JPA area includes unincorporated areas of Santa Clara and San Mateo Counties that border the Cable Joint Powers cities. However, AT&T remitted the franchise and PEG fees collected from subscribers in all of Santa Clara and San Mateo Counties directly to the counties and could not provide information needed to calculate the amounts due only to the Cable Joint Powers. An AT&T representative told us that the City would have to provide the addresses for the county areas in the JPA for AT&T to appropriately allocate fees to the Cable Joint Powers. Because Palo Alto was unaware of these direct payments, the cable coordinator did not allocate to the counties the City’s administrative costs for this portion of the revenues. This caused the counties to underpay and the other Cable Joint Powers members to overpay their respective shares of administrative costs. The counties did not remit the PEG fees paid directly to them for the unincorporated areas to the Media Center, as required by the Attachment A Cable Franchise and PEG Fee Audit 17 contract with the Media Center, and it was beyond the scope of this audit to determine if the counties used the PEG fees only for capital expenditures related to PEG access facilities, as required under the federal Cable Act (see related discussion in Finding 1). However, regardless of whether the counties used the PEG fees in accordance with the Cable Act, AT&T’s payments directly to the counties resulted in subscribers other than those who paid the fees to receive the benefit of those payments. AT&T excluded customer refunds and credits from gross revenues AT&T excluded adjustments, such as customer refunds and credits that it made for noncable service revenues that are subject to franchise fees, from its revenues. This caused AT&T to underpay Santa Clara County about $20,000 in franchise fees. Comcast excluded FCC and CPUC fees from gross revenues Comcast underpaid about $20,000 in franchise fees because it did not include fees assessed by the California Public Utilities Commission (CPUC) and the Federal Communications Commission (FCC) in gross revenues. Although DIVCA clearly defines franchise fees as those paid to the local entity, Comcast excludes the CPUC and FCC fees because it claims that these are franchise fees and that including them would cause it to pay more than DIVCA’s 5 percent cap on franchise fees. Comcast includes these fees in subscribers’ monthly service charges and should have included them in gross revenues. Comcast and AT&T did not pay franchise fees on unreturned equipment charges Comcast underpaid about $600 and AT&T underpaid about $18,000 in franchise fees because they excluded unreturned equipment revenue from their calculation of gross revenue that is subject to franchise fees. Comcast’s underpayment may be understated because it changed the mapping for unreturned equipment revenue, which made it difficult to determine if it fully reported this revenue. AT&T began calculating and paying franchise fees on unreturned equipment revenue in April 2014 but inappropriately excluded amounts written off from its gross revenues. Comcast and AT&T miscalculated and underpaid some PEG fees Comcast underpaid about $13,000 in PEG fees due to Santa Clara and San Mateo Counties and AT&T underpaid about $4,000 because they billed $0.88 per subscriber instead of 1 percent, which would have generated more revenue. AT&T underpaid an additional $23,000 in PEG fees because, although it billed $0.88 per subscriber, it remitted payment based on $0.55 per subscriber in San Mateo County instead of 1 percent. The municipal codes for Palo Alto, Menlo Park, East Palo Alto, and Atherton require a PEG Attachment A Cable Franchise and PEG Fee Audit 18 fee of $0.88 per subscriber, but Santa Clara and San Mateo Counties require the fee to be the higher of $0.88 per subscriber or 1 percent of gross revenue. AT&T’s representative told us that its systems can only calculate the fee based on a single rate for a geographical area, not an “either/or” formula. AT&T did not pay franchise fees on all gross revenues AT&T underpaid about $4,100 in franchise fees because it did not include all revenues, including convenience fees, installation labor, additional outlets, and repair labor, in gross revenues that are subject to franchise fees. The Buske Group estimated the underpayment because AT&T did not provide all requested records needed to calculate the amount due. Comcast and AT&T owe interest on underpaid franchise and PEG fees Comcast and AT&T owe interest on the underpaid franchise and PEG fees. DIVCA requires that interest be calculated at an annual rate equal to the highest prime lending rate during the period of delinquency, plus 1 percent. The interest owed should be calculated when the City finalizes the underpayment amounts on which it will pursue collection. AT&T owes the City for the costs of the audit AT&T’s estimated underpayment of $48,400 in franchise fee payments equals 6 percent of total franchise fees due during the audit period, which means that AT&T owes the City for the costs related to AT&T’s portion of this audit. DIVCA requires a franchise holder to pay the audit costs if it underpaid franchise fees by more than 5 percent. Whether AT&T has to pay the audit costs will also depend on whether it provides additional information that would allow us to recalculate the underpayments based on revenue that is only for the unincorporated areas of San Mateo and Santa Clara Counties, rather than all areas of those counties. Inaccuracies and omissions in Comcast and AT&T address databases can cause payment errors Comcast uses an address database, commonly referred to in the industry as a “homes‐passed” list, to associate subscriber revenues with the jurisdiction that should receive the franchise and PEG fees. However, the database is not complete or fully reliable, which likely caused errors in franchise and PEG fee payments to the Cable Joint Powers members: 524 out of 36,930 residential address records for Palo Alto are associated with the East Palo Alto billing code, which means that some Palo Alto revenues and their related franchise fees were misallocated to East Palo Alto. About 1,400 residential address records in the Cable Joint Powers area are not in the database, and 246 Comcast database Attachment A Cable Franchise and PEG Fee Audit 19 records are not in the Cable Joint Powers members’ residential address records. Although DIVCA requires franchise holders to maintain records that would allow a local entity to ensure that the franchise holder accurately compensated the local entity, AT&T does not have a homes‐passed list or other database to show how each residential address is associated with jurisdictions in the Cable Joint Powers area. AT&T uses a third‐party vendor to determine how to allocate revenue when an account is established for a residential address and can only provide addresses that are being billed within a jurisdiction for the point in time when the list is produced. The lack of a comprehensive address list for the areas served limits the ability to assess AT&T’s address database to gain assurance that past fees were and that future fees will be appropriately allocated to Cable Joint Powers members. However, the account database that AT&T provided for a point in time during the audit included residential addresses that were associated with incorrect jurisdictions, which would cause inappropriate allocation of franchise and PEG fees. The City does not effectively monitor the accuracy and completeness of franchise and PEG fee payments The City’s cable coordinator reviews Comcast and AT&T franchise and PEG fee payments and follows up with them regarding large variances and late payments. However, the cable coordinator does not obtain and review documents, such as customer count and address billing records and documents that show how Comcast and AT&T calculated gross revenue that is subject to franchise fees, to verify the accuracy of fee payments. Recognized internal control frameworks require organizations to implement monitoring processes that allow timely identification of deficiencies, but the City has relied on the Office of the City Auditor and an external consultant to periodically assess the accuracy of franchise and PEG fee payments.8 The Office of the City Auditor conducted the last assessment, which included only Comcast, in 2006. Because of the cost of conducting periodic audits and DIVCA limits on the amount of time entities have to submit claims to recover underpayments, ongoing reviews would help ensure the accuracy of fee payments on a routine basis. 8 U.S. Government Accountability Office, “Standards for Internal Control in the Federal Government,” Washington, D.C., 2014, available at http://www.gao.gov/products/GAO‐14‐704G. Committee of Sponsoring Organizations of the Treadway Commission, “Internal Control – Integrated Framework,” 2013, available at: http://www.coso.org/IC.htm. Attachment A Cable Franchise and PEG Fee Audit 20 Recommendations We recommend that the City Manager’s Office, in coordination with ASD, IT, and the City Attorney’s Office: 2.1 Send a letter to AT&T and Comcast describing the results of the audit and demanding payment of the underpaid franchise and PEG fees shown in Exhibit 4, plus interest calculated in accordance with DIVCA requirements. 2.2 Include in AT&T’s letter a demand for payment of the audit costs that are attributable to AT&T. 2.3 Work with Comcast and AT&T to develop methods to ensure: Their address databases accurately reflect all potential service addresses within the Cable Joint Powers geographic areas. They have a separate billing code for each member jurisdiction and accurately report and remit payments to the City of Palo Alto based on those billing codes. 2.4 Develop criteria for assessing the accuracy of future Comcast and AT&T franchise and PEG fee payments on an ongoing basis and: Communicate the criteria to Comcast and AT&T and that it will be used to review the accuracy of future payments. Require Comcast and AT&T to report the breakdown of their fees in more detail, including identifying what is and is not included in the gross revenues used to calculate the fees and the reason for any exclusions. Review the franchise and PEG fee payments to ensure that they were calculated on all revenues that are subject to franchise and PEG fees and promptly follow up with Comcast and AT&T regarding any discrepancies. 2.5 Request that San Mateo and Santa Clara Counties revise their municipal codes to reflect only a single adopted rate to accommodate the cable companies’ billing system capabilities, if the PEG fee continues to be collected (see Recommendation 1.1). Attachment A Cable Franchise and PEG Fee Audit 21 Finding 3 Roles and responsibilities for managing the City’s cable communications program are not clearly defined or assigned The City has not clearly assigned or defined roles and responsibilities for its cable communications program or effectively managed the program to ensure that funds are used appropriately and that program outcomes are consistent with the City’s and residents’ cable communications needs. Municipal Code assigns the Office of the City Clerk responsibility for managing cable communications Municipal Code Section 2.08.110, Office and Duties of the City Clerk, was adopted in 1995 and designates the Office of the City Clerk as responsible for administering the city’s cable communications program. However, the City Clerk’s Office does not in fact administer the program and administering it does not align well with the City Clerk’s other key responsibilities. Other sections of Municipal Code updated responsibility for program administration and oversight Municipal Code Chapter 2.10, adopted in 2000 and no longer operative after 2008, described cable television franchise awards and identified the cable coordinator as “the individual or individuals designated by the city to administer a cable communications system franchise.” This chapter was superseded by Chapter 2.11, which Council adopted in 2007 to implement DIVCA. It states that the cable coordinator is “the city manager or the individual or individuals designated by the city manager to administer oversight of state franchisees in the city.” The term, “cable communications program,” is not defined in the Code and is not referenced anywhere in the Code other than where the Code assigns responsibility for the program to the Office of City Clerk. The IT Department performs limited activities related to the cable program The IT Department administers a contract and approves payments for the City’s cable coordinator but does not otherwise actively manage or provide oversight of the cable communications program. ASD administered the cable coordinator contract prior to IT becoming a separate department. When the Municipal Code was updated, the provision in Chapter 2.08 that assigns responsibility to the Office of the City Clerk was not updated to reflect changes in how cable activities were to be administered in the City. No program performance measures There are no established goals and objectives to address program activities or performance measures to monitor and assess program inputs, outputs, and outcomes. Having measures would help the department responsible for oversight to ensure that the program Attachment A Cable Franchise and PEG Fee Audit 22 meets its goals and objectives and aligns with the City’s mission, business needs, and responsibilities. Recommendations We recommend that the City Clerk and City Manager’s Office: 3.1 Confer and develop a recommendation for the City Council to assign responsibility for the City’s cable communications program and require the assigned department to provide appropriate program oversight to ensure that: a. The City’s cable communications program objectives are aligned with the City’s goals and objectives. b. The assigned department develops performance measures to demonstrate that the program is effective and is meeting the City’s goals and objectives. c. There is effective oversight and management of the cable coordinator’s contract and activities. 3.2 Submit a draft ordinance to the Palo Alto City Council recommending revisions to the Palo Alto Municipal Code based on the revised assignment of roles and responsibilities. Attachment A Cable Franchise and PEG Fee Audit 23 APPENDIX 1 – City Manager’s Response Attachment A Cable Franchise and PEG Fee Audit 24 The City Manager has agreed to take the following actions in response to the audit recommendations in this report. The City Manager will report progress on implementation six months after the Council accepts the audit report, and every six months thereafter until all recommendations have been implemented. Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status Finding 1: The Media Center did not restrict its use of $340,000 of annual PEG fees to capital expenditures as required by the federal Cable Act. We recommend that the City Manager’s Office: 1.1 Consult with ASD, IT, the City Attorney’s Office, and Cable Joint Powers members to assess the need to continue collecting PEG fees and adjust the fee based on a demonstrated need for future capital expenses related to PEG access facilities or discontinue collecting the fee. a. If it is determined that the PEG fee should be adjusted or discontinued, submit a staff report to the City Council with a recommendation to amend the Municipal Code to reflect the revised fee or to eliminate the requirement and recommend to the other Cable Joint Powers members that they do the same. b. If it is determined that the PEG fee should continue to be collected: Amend the agreement with the Media Center to remove the requirement for the City to remit all PEG fees collected to the Media Center. Coordinate with ASD, the City Attorney’s Office, and the Cable Joint Powers to develop and implement criteria for the use of PEG fees to ensure compliance with the federal Cable Act, and that the fees are set at a level appropriate for anticipated and necessary capital expenses. Place the PEG fees in a restricted account and distribute them based on City‐ approved capital expenditures that meet federal Cable Act requirements. Require that semi‐annual documentation City Manager’s Office, ASD, IT, City Attorney’s Office Concurrence: Agree Target Date: 2017 Action Plan: Staff agrees that it should confirm the ongoing need for the PEG fee and ensure it is set at a level that is consistent with future capital needs. Staff will work with the City Attorney’s Office to develop a “capital cost” definition that eliminates any cost categories that could be construed as operating costs and will restrict the use of PEG fees to expenditures that meet this definition. Staff will also develop and adopt procedures that define the PEG fee distribution and reporting process. Staff will propose the appropriate revisions to the Municipal Code if it is determined that the PEG fee should be modified in any way. Attachment A Cable Franchise and PEG Fee Audit 25 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status of expenditures be provided and adopt procedures to review the documentation to ensure that PEG fees are spent only as allowed by the federal Cable Act and take immediate corrective action as necessary. 1.2 Consult with ASD, IT, the City Attorney’s Office, and the Cable Joint Powers on whether to allocate a portion of the unrestricted franchise fees or other funds, instead of restricted‐use PEG fees, to subsidize the Media Center’s operations or to discontinue subsidizing the Media Center’s operations. Based on the resulting recommendation, the City Manager’s Office should make recommendations to the Council regarding appropriate future funding, if any, for the Media Center. City Manager’s Office, ASD, IT, City Attorney’s Office Concurrence: Agree Target Date: 2017 Action Plan: Staff will consult with the Cable Joint Powers to determine if there is any interest in subsidizing the Media Center’s operations. Staff will propose recommendations to the City Council if needed. Finding 2: Comcast and AT&T did not remit the full amount of franchise and PEG fees due. We recommend that the City Manager’s Office, in coordination with ASD, IT, and the City Attorney’s Office: 2.1 Send a letter to AT&T and Comcast describing the results of the audit and demanding payment of the underpaid franchise and PEG fees shown in Exhibit 4, plus interest calculated in accordance with DIVCA requirements. City Manager, ASD, IT, City Attorney’s Office Concurrence: Agree Target Date: 4Q 2016 Action Plan: Staff will draft a letter to Comcast/AT&T demanding payment of the underpaid franchise and PEG fees, plus interest (and audit costs in the case of AT&T). Staff will work with Comcast/AT&T to correct their address databases so that future payments are properly remitted and will develop criteria to assess the accuracy of future payments. Staff will work with San Mateo and Santa Clara Counties to adjust their PEG fee rates as needed. 2.2 Include in AT&T’s letter a demand for payment of the audit costs that are attributable to AT&T. 2.3 Work with Comcast and AT&T to develop methods to ensure: Attachment A Cable Franchise and PEG Fee Audit 26 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status Their address databases accurately reflect all potential service addresses within the Cable Joint Powers geographic areas. They have a separate billing code for each member jurisdiction and accurately report and remit payments to the City of Palo Alto based on those billing codes. 2.4 Develop criteria for assessing the accuracy of future Comcast and AT&T franchise and PEG fee payments on an ongoing basis and: Communicate the criteria to Comcast and AT&T and that it will be used to review the accuracy of future payments. Require Comcast and AT&T to report the breakdown of their fees in more detail, including identifying what is and is not included in the gross revenues used to calculate the fees and the reason for any exclusions. Review the franchise and PEG fee payments to ensure that they were calculated on all revenues that are subject to franchise and PEG fees and promptly follow up with Comcast and AT&T regarding any discrepancies. 2.5 Request that San Mateo and Santa Clara Counties revise their municipal codes to reflect only a single adopted rate to accommodate the cable companies’ billing system capabilities, if the PEG fee continues to be collected (see Recommendation 1.1). Finding 3: Roles and responsibilities for managing the City’s cable communications program are not clearly defined or assigned. We recommend that the City Clerk and City Manager’s Office: 3.1. Confer and develop a recommendation for the City Council to assign responsibility for the City’s cable communications program and require the City Manager’s Office, City Clerk Concurrence: Agree Target Date: 4Q 2016 Attachment A Cable Franchise and PEG Fee Audit 27 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Status assigned department to provide appropriate program oversight to ensure that: a. The City’s cable communications program objectives are aligned with the City’s goals and objectives. b. The assigned department develops performance measures to demonstrate that the program is effective and is meeting the City’s goals and objectives. c. There is effective oversight and management of the cable coordinator’s contract and activities. Action Plan: Staff will determine where to assign responsibility for the City’s cable communications program/activities and propose the appropriate revisions to the Municipal Code. The responsible department will establish performance measures to ensure proper program administration and oversight. 3.2. Submit a draft ordinance to the Palo Alto City Council recommending revisions to the Palo Alto Municipal Code based on the revised assignment of roles and responsibilities. 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However, we have opted to respond only to a few key points. Our lack of response to each individual comment in the Media Center’s response should not be construed to mean that we agree with the Media Center’s comments. Our comments below focus on four key points: 1) the purpose of the audit, 2) the timeline for when the City became subject to the federal Cable Act restrictions on the use of PEG fees, 3) the Media Center’s and others’ previous comments regarding PEG fee restrictions, and 4) the Office of the City Auditor’s compliance with Government Auditing Standards. 1. Purpose of the Audit Media Center Response: The Midpeninsula Media Center’s (Media Center) response raises concerns that the audit misrepresents the Media Center’s accounting system, misinterprets documents provided to the auditor, and did not do the sort of review of internal documentation required to support the implied motivations on the part of the Media Center or negligence on the part of the JPA members. The response questions, several times, what we audited vs. what the Media Center thought we should audit. Auditor Comments: Performance audits, by their nature, are intended to mitigate risk to the organization for which the audit is performed. The City of Palo Alto is ultimately responsible for ensuring that PEG fees are used in compliance with the federal Cable Act. In recognition of this obligation, section 2.11.070(b)(2) of the City’s Municipal Code states, “The PEG support fee shall be used by the city for PEG purposes consistent with state and federal law” [emphasis added], and section 2.11.040(c) states, “The failure of the city, upon one or more occasions, to exercise a right or to require compliance or performance under this Chapter 2.11 or any other applicable law [emphasis added] shall not be deemed to constitute a waiver of such right or a waiver of compliance or performance.” Because the City of Palo Alto would incur any sanctions imposed by cable providers for noncompliance with the federal Cable Act, the audit objective to determine whether the City met its oversight responsibilities regarding the Media Center’s use of PEG access fees was designed to mitigate the risk to the City of Palo Alto, not the risk to the Media Center. However, because the City remits 100 percent of the PEG fees to the Media Center, we were obligated to look at how the Media Center spent the funds to answer our audit objective. To determine if the Media Center spent the PEG fees in accordance with the federal Cable Act, we reviewed the Media Center’s annual reports from 2003 through 2013 and the Statement of Activities from the Media Center’s 2012 financial statements. Those reports showed that the Media Center always classified PEG fees as operating revenue; did not classify the PEG fees as restricted, which would have been appropriate given the federal restrictions on the use of PEG fees; used the fees to support its operating expenses; and had limited capital expenses, other than those used to purchase and renovate its building, which was before the Cable Act limited how PEG fees can be used. We met with the Media Center’s executive director and finance manager to discuss the audit objectives and our preliminary findings and requested that they provide any additional documentation that would support that they had spent the PEG fees only for capital expenses. Media Center staff provided a copy of its five‐year capital plan, which did not show planned capital expenditures. When we told them that the document did not support that they had used PEG fees for capital expenses, they provided a copy Attachment A Cable Franchise and PEG Fee Audit 92 of the spreadsheet that they also attached to their response, titled “Media Center Use of PEG Fees, July 2010‐October 2013.” This spreadsheet supports that the Media Center spent the PEG fees only for operating expenses, which is prohibited under the federal Cable Act. The Media Center did not provide us with copies of the budget documents that they included in their response; however, those documents also support our conclusion that the Media Center used the PEG fees only for operating expenses. The Media Center’s response states in several places what they thought we should have audited instead of what we audited, including what evidence we should have obtained to support our findings and conclusions. The Government Auditing Standards require auditors to not allow external influences or pressures to impact an auditor’s ability to make independent and objective judgments, which includes determining the audit objectives, the methodology to be used to address those objectives, and the evidence needed to be gathered and reviewed or analyzed to address the objectives. Although the Media Center’s executive director tried to influence our findings during the audit, and the Media Center’s response continues that trend, the auditors are responsible for evaluating the subject matter of the audit and objectively drawing conclusions based on all the facts and circumstances, even if those conclusions conflict with management’s assertions. 2. Timeline for When City Became Subject to PEG Fee Restrictions Media Center Response: The Media Center’s response states 1) that the federal Cable Act does not restrict use of PEG fees to capital expenditures, 2) that PEG fees may be used for operating support with operator (i.e., cable franchise holder) consent, and 3) that the City entered into a franchise agreement that allowed PEG fees to be used for operating support and, in fact, “preferred” that the Media Center use the PEG fees rather than its investment fund for operating expenses. Auditor Comments: The Media Center’s above assertions are incorrect: 1) We worked closely with the City Attorney, who engaged a consulting attorney who specializes in communication law, to ensure that our interpretation was accurate and that the federal Cable Act does indeed restrict the use of PEG fees to capital expenses if the local entity collects the full five‐ percent franchise fee. The City of Palo Alto collects the full five‐percent franchise fee, and the City Attorney, with advice from the consulting attorney, confirmed that our interpretation regarding the restricted use of PEG fees is correct. 2) Lack of action on the part of the cable providers does not mean that they knew how the Media Center had spent the PEG fees. There is no evidence to support that the cable providers consented to the PEG fees being used for operating expenses, or that the cable providers even knew how the Media Center had used the PEG fees. Transferring PEG fees to the Media Center is based on an agreement between the City of Palo Alto and the Media Center and did not require knowledge or agreement from the cable operators. 3) The federal Cable Act limited the use of PEG fees to capital expenses for new franchise agreements that became effective 60 days after its enactment on October 30, 1984. The Palo Alto City Council adopted a new franchise agreement in July 2000 when the cable television system was transferred and assigned from Cable Co‐op to TCI. The agreement required TCI to pay $0.88 per month per residential subscriber “for PEG Access facilities and equipment” and allowed the City to use the funds “for any lawful PEG Access purposes.” This agreement, which acknowledged the restrictions Attachment A Cable Franchise and PEG Fee Audit 93 regarding the use of PEG fees, is the point where the restriction became effective for the City of Palo Alto. DIVCA, which California adopted in 2006, says that PEG fees may be established “to support PEG channel facilities consistent with federal law [emphasis added]. The City entered into an agreement with the Media Center in 2002, which required the Media Center to “operate and administer the PEG facilities and channels in compliance with applicable laws” and in compliance with the franchise agreements between the City and the Cable Companies.” When that agreement expired, the City entered into a new agreement, in 2011, which required the Media Center to use the PEG fees “only in a manner consistent with DIVCA and the Cable Act.” These provisions in the City’s agreements with the Media Center support that the City always intended for the Media Center to comply with the federal Cable Act restrictions on the use of PEG fees. Because DIVCA was enacted more than 20 years after the Cable Act and because it is a state law, it had no impact toward changing the restrictions on the use of PEG fees. 3. Media Center’s and Others’ Previous Comments Regarding the PEG Fee Restrictions Media Center Response: The Media Center’s response and its attachment from the law firm of Best Best & Kreiger states that the federal Cable Act does not restrict the use of PEG fees to capital expenses, and that we should have consulted with The Buske Group for an interpretation of the law. Auditor Comments: It was more appropriate for us to obtain advice from an attorney regarding the legal interpretation of the law than it would have been for us to obtain an interpretation from The Buske Group, which is a telecommunications consulting firm. The comments in the Media Center’s response contradict statements that the Media Center’s executive director, an attorney from Best Best & Kreiger, and Sue Buske from The Buske Group have made in the past regarding the restrictions on the use of PEG fees: The Media Center’s executive director, knowing that the Cable act does indeed restrict the use of PEG fees to operating expenses, has actively advocated for changing the federal law to allow PEG fees to be used for operating expenses in additional to capital expenses. Gail Karish, one of the attorneys who provided comments in the response from Best Best & Kreiger; Sue Buske, president of The Buske Group; and Annie Folger, the Media Center’s executive director, were panelists in a November 2013 workshop that focused on cable franchise and PEG fees. Excerpts from the workshop, which was recorded and is available at https://www.youtube.com/watch?v=w7gpH_WqLNg, include: o Gail Karish: “The franchise fees, there’s a federal cap, and there is also in the state law five percent, right? So that’s what you can pay; that’s what you can collect in franchise fees. You can collect PEG fees in addition to that, that will not be credited as franchise fees as long as they are spent on capital [emphasis added]l. If you spend something that you call a PEG fee on something other than capital, then the risk is that the operator will say, ‘Well, you know what? That’s really a franchise fee and it goes towards our five percent franchise fee cap . . . It’s now become, now if falls under a franchise fee kind of category and we’re gonna assume we can have a credit against the franchise fees that we’re paying to the local government.’” Attachment A Cable Franchise and PEG Fee Audit 94 o Sue Buske: In reference to PEG fees ‐ “I think that it is subject to interpretation. But the issue really becomes do you want to take the risk? Okay? At the end of the day, do you want to take the risk, and are they going to send the cable cops after you?” o Annie Folger: “In the local franchise,9 the language said that the fee could be used for any PEG purpose . . . So we have been telling ourselves that because our local franchise allowed us to spend that $0.88 per subscriber for operations, we would continue to do so until challenged otherwise, and that’s exactly what we’ve been doing . . . But it would be, you know, a painful experience to have to figure out how, it’s essentially about $327,000 annually now that we get in PEG fees as a result of this pass‐through fee, that we’d be hard pressed to say it’s being spent on capital each year.” The above comments support that the Media Center had prior knowledge of the appropriate use of PEG fees but chose to use them inappropriately. 4. Office of the City Auditor’s Compliance With Government Auditing Standards Media Center Response: The Media Center’s response includes a letter from Garth Ashpaugh, CPA, which asserts that although the Media Center had capital expenditures paid for by its unrestricted fund, “this information appears to have been ignored by the auditor.” By citing several paragraphs from the Government Auditing Standards, he also suggests, without directly saying it, that this means the audit did not comply with the ethical principles and the independence standard in the Government Auditing Standards. He makes these assertions while also acknowledging that he had not reviewed the materials or the research that we performed. Auditor Comments: The audit report acknowledges that the Media Center had a small amount of capital expenses during the audit review period that potentially could have qualified as PEG fee expenditures and later provided financial records showing its capital expenditures for calendar year 2014, but that the Media Center chose to use its unrestricted (investment) fund, rather than the PEG fees, for those expenses. When we first discussed our finding with the Media Center a nd told them that our conclusion was that the Media Center had not complied with the Cable Act restriction for use of PEG fees, we gave them the opportunity to provide additional documentation to support that they were in compliance. The additional documentation that they provided continued to support our conclusion that the Media Center had used the PEG fees only for operating expenses. Neither Mr. Ashpaugh’s response summarizing his background, nor his biography on the National Association of Telecommunication Officers and Advisors’ website indicate that he has any experience conducting performance audits that comply with Government Auditing Standards (our internet search did not locate a website for his accounting firm, which could potentially provide more information on Mr. Ashpaugh’s experience). The Office of the City Auditor has undergone several peer reviews that confirmed our ongoing compliance with the Government Auditing Standards in the work it performs. Further, City Auditor Harriet Richardson is a recognized expert in the requirements of the Government 9 This comment refers to the local franchise agreement established in 2000 with TCI, which stated that the fees could be used “for any lawful [emphasis added] PEG Access purposes.” Because the federal Cable Act restricted the use of PEG fees, using them for operations was not a lawful PEG access purpose. Attachment A Cable Franchise and PEG Fee Audit 95 Auditing Standards, as demonstrated by her recent appointment by the Comptroller General of the United States to the Government Auditing Standards Advisory Council. There is no basis for Mr. Ashpaugh’s suggestion that the audit did not comply with the ethical principles and independence standard in the Government Auditing Standards. The Government Auditing Standards require auditors to exercise professional skepticism in the work they do, which includes being alert to, for example, audit evidence that contradicts other audit evidence obtained or information that brings into question the reliability of responses to inquiries. Exercising our professional skepticism led us to provide multiple opportunities for the Media Center to provide reliable responses to our inquiries. However, during the audit, they changed the reasons they provided for why they used the PEG fees for operating expenses, which led us to take extra care toward providing assurance regarding our conclusions. Attachment A C A Cable Franchise APPENDIX e and PEG Fee 4 – Legal R e Audit Response 96 Attachment A C Cable Franchisee and PEG Feee Audit 97 Attachment A C Cable Franchisee and PEG Feee Audit 98 Attachment A C Cable Franchisee and PEG Feee Audit 99 Attachment A C Cable Franchisee and PEG Feee Audit 100 Attachment A Policy and Services Committee TRANSCRIPT Page 1 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Special Meeting May 10, 2016 Chairperson DuBois called the meeting to order at 5:03 P.M. in the Council Chambers, 250 Hamilton Avenue, Palo Alto, California. Present: Berman, DuBois (Chair), Kniss, Scharff Absent: Oral Communications Chair DuBois: The first Item on the Agenda is Oral Communications, to speak about something not on the Agenda. We don't have any speakers for Oral Communications. Action Items 2.Cable Franchise and Public, Education, and Government (PEG) Fee Audit. Chair DuBois: We are also changing the order of the Agenda. We're going to be taking the Cable Franchise and Public, Education and Government (PEG) Fee Audit first. I guess I'd like to have the Auditor present her findings, and then we'll take comments from the public, and then we'll have a discussion among the Policy and Services Committee (Committee). Harriet, are you ready? Do I have a Motion to change the Agenda order? Council Member Berman: So moved. Vice Mayor Scharff: Second. Chair DuBois: All in favor. Are you ready? MOTION: Council Member Berman moved, seconded by Vice Mayor Scharff to change the Agenda order and discuss Item 2 before Item 1. MOTION PASSED: 4-0 Attachment B Page 2 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Harriet Richardson, City Auditor: Yes. Good evening, Mr. Chair and members of the Committee. Harriet Richardson, City Auditor, here to present the Cable Franchise and PEG Fee Audit. With me is Houman Boussina, Senior Performance Auditor, who was the Lead Auditor on the project. Somewhere in the audience out there is Lisa Wehara who also worked on the audit with us. The objectives of the audit were to determine whether and to what degree from July 1st, 2010 through June 30th, 2014 the City of Palo Alto accurately accounted for its receipt of franchise and Public, Education and Government, also known as PEG, fees and met its oversight responsibilities regarding the Media Center's use of the PEG Access Fees. The second objective was to determine if Comcast and AT&T collected and promptly remitted the appropriate amount of franchise and PEG Fees to the City. The third objective was to determine whether the City had established and sufficiently defined the roles and responsibilities to administer its Cable Communications Program and State Franchises awarded to Comcast and AT&T. I'd like to provide a little background. Vice Mayor Scharff: Excuse me. Do you have those as handouts? Chair DuBois: You should (inaudible). Vice Mayor Scharff: Are they in front of me somewhere? Ms. Richardson: They should be. Did they get moved? Council Member Kniss: They were in the other room. Ms. Richardson: Did those get moved? Vice Mayor Scharff: I guess we could (crosstalk) and get them. Ms. Richardson: You should also have an At-places Memo, if you don't have that. Vice Mayor Scharff: I have nothing up here. I guess it was in the other room. Ms. Richardson: They're in the other room. I can give you my copy for now. Do you want me to wait to continue until Council Member Berman comes back? I wanted to provide a little background to help you understand the Audit Findings. First is that there are two laws that govern cable communications that are relevant to this audit. The first is the Cable Communications Act of 1984, commonly referred to as the Cable Act, which established a national policy for cable communications. It was enacted by Congress in October 1984 and became effective 60 days later for all new Franchise Agreements. The law allowed certain State Laws already in effect to remain in effect for not longer than the current remaining term of existing franchises. The second law Attachment B Page 3 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 is California's Digital Infrastructure and Video Cable Act (DIVCA) of 2006, commonly referred to as DIVCA, which was enacted to increase competition for video broadband services statewide, create a fair and level playing field for all market competitors, and establish the California Public Utilities Commission as the sole franchising authority for video service. Once DIVCA was implemented, cable operators had the option of switching to a State-issued Franchise Agreement or continuing to operate under the Franchise Agreement that had been issued by the local jurisdictions until that Local Franchise Agreement expired. Comcast and AT&T currently hold State Franchise Agreements that serve our residents and some surrounding areas. There are two fees that the cable operators pay and pass on to their subscribers. The first is the Franchise Fee which is considered to be rent or a toll for using the public rights-of-way. The Federal Cable Act limits this fee to 5 percent, and DIVCA establishes the fee at 5 percent unless the local entity adopts an Ordinance setting the fee at less than 5 percent. Palo Alto does have an Ordinance that establishes the fee at 5 percent. The second fee supports public, educational and government access channel facilities and is commonly referred to as the PEG Fee. DIVCA generally limits the fee to one percent of the cable operator's gross revenues, and the Federal Cable Act limits the use of that fee to Capital Expenses that support PEG access facilities. The City of Palo Alto has administrative and oversight responsibility for cable operations in Palo Alto, Menlo Park, East Palo Alto, Atherton and the unincorporated areas of San Mateo and Santa Clara Counties through the Cable Joint Powers Authority. I'm now going to pass the presentation on to Houman who will discuss the findings and recommendations. Houman Boussina, Senior Performance Auditor: Housman Boussina, Senior Performance Auditor. The Audit Report has three findings. I'd like to provide a summary of the three in the next few slides. Finding 1, the Media Center inappropriately used an average of $340,000 annually of public, education and government or PEG Fees, or $1.4 million during the audit period for operating expenses such as salaries and benefits, utilities, janitorial service, noncapital equipment and insurance; although, the Federal Cable Act requires that PEG Fees be used only for Capital Expenses to the extent that they exceed a 5 percent Franchise Fee. This occurred because the City didn't fulfill its oversight responsibility to ensure that the PEG Fees were used in compliance with the Federal Law, and the Media Center did not ensure its own compliance with the law despite our agreement with them stating that the fees could only be used in a manner consistent with DIVCA and the Cable Act. Given that the PEG Fee is a discretionary fee that the City and other Cable Joint Power members have the option to impose on the cable service providers and that the cable service providers pass the fee on to their subscribers, the audit raises concerns about the lack of customer usage and satisfaction data for PEG channels and about ongoing usefulness of PEG channels as a result of Attachment B Page 4 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 significant changes in technology since the Cable Act and DIVCA were enacted. While PEG channels do offer benefits including broadcasts of local government meetings, PEG channels do not necessarily offer unique choices with the advent of the internet and websites such as YouTube, where much of the same programming and information may be available. A timeline is helpful for giving context to this Audit Finding. The 1984 Federal Cable Act requires that PEG Fees be used only for Capital Costs related to PEG access facilities and related equipment such as manned studios and cameras for new Franchise Agreements granted 60 days after the law's enactment. In 2000, the City awarded a new Local Franchise Agreement to TCI Cablevision (TCI). The agreement required TCI to pay the City $0.88 per month per residential subscriber to fund PEG equipment and facilities and specified that the City would use the funds for any lawful PEG access purposes. In 2002, the City contracted with the Media Center to support PEG channels. The agreement said that TCI would provide the payments for PEG facilities and required the Media Center to operate and administer the PEG facilities and channels in compliance with applicable laws and the Franchise Agreement between the City and the cable operator. The City's 2011 contract with the Media Center reaffirmed that requirement and said that the PEG Fees shall be used consistent with Federal Law. DIVCA affirmed the applicability of Federal Cable Act restrictions on the use of PEG Fees by allowing local entities to establish a fee to support PEG channel facilities consistent with Federal Law. DIVCA didn't impact Finding 1 or the Federal Law provisions that were the basis for Finding 1. In Finding 2, we contracted with the Buske Group to obtain and review Comcast and AT&T records on our behalf to determine if they collected and promptly remitted the appropriate amount of Franchise and PEG Fees to the City. Comcast and AT&T underpaid Franchise and PEG Fees because they did not always comply with provisions of DIVCA and the Cable Joint Powers Municipal Codes that require payment of a 5 percent Franchise Fee based on gross revenues and payment of an $0.88 PEG Fee per subscriber. Comcast and AT&T did not always calculate the fees due in accordance with DIVCA and the Municipal Codes of the Cable Joint Powers. Underpayments mainly resulted because Comcast and AT&T did not pay a Franchise Fee on all advertising revenue. Comcast did not pay Franchise Fees on all flat fees charged to subscribers, and AT&T excluded customer refunds and credits from gross revenues. Comcast's and AT&T's customer address databases also had inaccuracies and omissions that can cause payment errors, including misallocation of Franchise and PEG Fee payments to the Cable Joint Power members. Comcast and AT&T will owe interest calculated at the highest prime lending rate during the delinquency period plus 1 percent on underpaid fees as required by DIVCA. DIVCA also requires that AT&T pay the City for its portion of the audit costs because AT&T's underpayment exceeds 5 percent of the amount that it should have paid. Finding 3 looks at roles and responsibilities. The City has not clearly assigned or defined roles and Attachment B Page 5 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 responsibilities for its Cable Communications Program or effectively managed the Program to ensure that funds are used appropriately and that Program outcomes are consistent with the City's and residents' cable communications needs. The Information Technology (IT) Department administers the contract and approves payments for the City's Cable Coordinator but does not otherwise actively manage or provide oversight of the Cable Communications Program. Administrative Services Department (ASD) administered the Cable Coordinator Contract prior to IT becoming a separate department. When the Municipal Code was updated to assign responsibilities to the Cable Coordinator, the provision in Chapter 2.08 that assigns responsibility to the Office of the City Clerk was not updated to reflect changes in how cable activities were to be administered in the City. The Audit Report includes nine recommendations to the City Manager's Office including assessing the need to continue collecting PEG Fees, adjust the PEG Fees or discontinue the fee based on a demonstrated need for future PEG Capital Expenses; if it is retained, to establish criteria for how PEG Fees may be used and monitor expenditures to ensure compliance with the Federal Cable Act and determine whether to allocate a portion of the unrestricted Franchise Fees or other funds to subsidize the Media Center's operations. We also recommend sending letters to AT&T and Comcast demanding payment of the underpaid Franchise and PEG Fees, interest due and for AT&T its portion of the audit costs. We recommend that the City work with AT&T and Comcast to develop methods to ensure accuracy of their address databases and the basis for determining the revenues on which Franchise and PEG Fees should be calculated, review the accuracy of future payments and promptly follow up on discrepancies. We recommend assigning responsibility for the City's Cable Communications Program and that we require the assigned department to provide appropriate program oversight, and finally submitting a Draft Ordinance to the Palo Alto City Council recommending revisions to the Palo Alto Municipal Code based on revised assignment of roles and responsibilities. Ms. Richardson: That concludes our presentation. We're ready for questions whenever you're ready to ask them. I think that's going to be after the public comment. Chair DuBois: Yes. Unless we have any really short technical questions, I suggest we go out to the public. I think most of the people here would like us to get to this Item, so we have 30 speakers. We're going to have two minutes per speaker. I'd suggest that if you're making a point that's already been made, it'd be appreciated if you could just say, "I agree with that speaker," and maybe keep it short. We're going to proceed. The first speaker is Laura Kinley, and the next speaker will be Judy Gittelsohn, if you could move to the front. Thank you. Attachment B Page 6 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Laura Kinley: Hello. My name is Laura Kinley. As an educator and former director of the Silicon Valley Instructional Television Network and the Integrated Learning Technologies Department at the Santa Clara County Office of Education, it has been my job and privilege to integrate the use of technology in television and internet, video and computer in the 33 public school districts of Santa Clara County. We responded to this challenge with the creation of TV shows and series, which you may remember some of them— Math Mentor was one, Math Squares Tournament, Writers Workshop, History Hunters and Silicon Valley High—and also pages on our website that included the teacher lessons and interactive links to play along, CD ROMs with practice questions as well as YouTube sites for past episodes. What we learned was that the use of all multimedia platforms is necessary and essential to reach students in this day and age. In fact, I wish we had been able to do what the Midpen (MidPen) Media Center has done. They went one better by providing training and how to create your own media and find your own voice. They are educating students of elementary school, middle and high school, college-age as well as lifetime learners to not just consume media but to produce it. They are learning skills they can use for life or for a job, not just for grades. Volunteers of all ages learn how to produce a TV show. In case you're wondering about the relevance of television in the age of mobile phones and the internet, a research article in today's THE journal entitled "How Kids Use Technology: TV is Still the Most Popular Video Platform" reported that television is still king among the video platforms. Please don't take this vital educational resource away from the community. I've left a copy of the article for you to see. Chair DuBois: Thank you. Ms. Kinley: Where do I leave this? Chair DuBois: You can hand it to the Clerk. Judy Gittelsohn followed by Fred Bockmann. Judy Gittelsohn: Good afternoon. My name is Judy Gittelsohn. I'm a Palo Alto resident, and I was a producer of a television show for a year and a half at the MidPen Media Center. I'm an artist and I serve people with special needs. My show highlighted people with special needs, and it was a really great venue because it was live; I brought in the community. The people with special needs, in particular with developmental disabilities, found their way to being in the public. It brought back resources to their community and it gave them a voice, which is a very rare opportunity for this population. In my experience with the Media Center, I'm not the only one of this kind of ilk that they're supporting. I think the Media Center is a fabulous resource and deserves to be supported by the community. I know Palo Alto had a MidPen Media Center Day that they proclaimed. It's high quality; it's bringing the Attachment B Page 7 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 community together, and it really was an opportunity for me. I really appreciate the venue. Thank you. Chair DuBois: Thank you. Fred Bockmann followed by Lessa Bouchard. Fred Bockmann: Hello. I'm Fred Bockmann. I live on Charleston Road and have been a volunteer producing shows at the Media Center for about 10 years now. I have met amazing people from Palo Alto. I've discovered a unique and wonderful way to learn about our community and to communicate with the citizens throughout the country. As I've worked on all these various shows, I've never really produced one from scratch myself up until this past year. Stanford University has created along with 31 other leading university research centers an Alzheimer's Disease Research Center. Its funded by the National Institute of Health (NIH), and they are doing some amazing things there. The statistics that they've shown me show that about 1 in 9 adults over the age of 65 have Alzheimer's or a related dementia, 1 in 3 over 85 have this problem. All of our lives are touched by it. The research grant that they have has identified the need for community outreach and education. I worked with them to put together a series that we started shooting this past winter. The first episode was so well received at Stanford that they've submitted it to the American Psychological Association as an example of community outreach and how they would like to continue working with this. There are many other things that I could say about this wonderful location, the Media Center. It's a group of caring, loving people that really are doing a wonderful job. That's what I'm here to speak in support. Thank you. Chair DuBois: Thank you. Lessa Bouchard followed by Karen Aclams I'm sorry if I'm mispronouncing your last name. Lessa Bouchard: Thank you. My name is Lessa Bouchard, and I am a community documentary producer and arts educator. I hope that in any consideration of value of the Mid Pen Media Center you will consider the downsizing that journalism in general has endured nationally, that local newspapers have reduced the number of jobs in the industry by the thousands in the past decade. Financial pressures have increasingly put papers in the position of sensationalizing issues right and left in an effort to stay alive and to maintain relationships with advertisers. These conditions make access to nonpartisan video recordings of government process more important than ever before and, in fact, create an argument for increased funding and support of the Media Center and its insurance needs and its under ten-person fulltime staff, not less. Social media such as YouTube, these are delivery platforms, not tools of content creation. Not everyone has access to the time and the means to record. Not everyone has a smart phone or a computer. Libraries are not the place to edit and post this citizen journalism. Not everyone has the time and education to represent an balanced account of an event. Local Attachment B Page 8 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 journalists and concerned citizens rely heavily on the archiving of these meetings. The recording and uploading of which is done by Media Center employees with barely enough support and compensation for their work as it is. These people, a skeleton crew, work long hours for little pay because they believe in the mission of the Media Center. They believe in a free press and access to the tools of media for diverse and underrepresented voices in the community. Thank you. Chair DuBois: Thank you. Karen Adams followed by Tom Upton. Karen Adams: Hi. My name is Karen Adams, and I've been working with the Media Center for over 20 years. I now run our studio. Every year I'm astonished at the number of organizations that make use of our facility. I have a list here of over 900 unique organizations that have come through the Media Center between 2010 and 2015. This is probably a minimum number. These are primarily nonprofit, educational and government groups. Many of them have been to our station multiple times over the years. They use the space and equipment in our center to record their messages, and they take those shows, and they run them on our cable channels, upload them to YouTube, post segments on their websites and social media. Now, with the service that's been in place for many years called PEG Media, they can upload their shows to a national server that's accessed by 3,000 community stations throughout the nation. Our producers can have a national audience. Audiences have never been bigger for access television. In fact, one of our music shows has over 250,000 hits. Future Talk, which was sponsored by the Tech Museum of San Jose, is seen in 300 stations throughout the U.S., also in Great Britain and New Zealand. What these amazing numbers might not reflect are the stories that rarely are told in commercial television. We are hyper-local programming that has a ripple effect throughout our community. For instance, we partnered with the East Palo Alto Police Department to help solve cold case murders. Friends and families of murder victims came to the station to put a human face on the crime. We're so much more than a TV station. We provide community. This community represents the entire diverse cross-section of the Mid-Peninsula. That is young and old, rich and poor, families, all flavors of races and ethnicities. I've been privileged to chronicle the stories of our community for the past 25 years. I appreciate your support over those years. Chair DuBois: Thank you. Tom Upton followed by Ken Allen. Tom Upton: I'm Tom Upton, a local creative person, a photographer in fact. I willingly give my time to the Media Center programs that need my skills and help, and I'll be doing so when I walk out of this building tonight and drive down to the Media Center. I challenge you to find a more dedicated, open, welcoming and skilled focused group of people. The leadership at the Media Attachment B Page 9 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Center is among the best I have seen and inspire dozens of people like me who have real lives to volunteer joyfully. I've photographed a lot of bigwigs in my 30 years as a Silicon Valley photographer. Your being picky-picky chapter and verse regarding operational versus Capital Expenditures at this point in time after so many years of already publicly scrutinized operation is puzzling indeed to me, but I'm just an artist. Calling into question the Media Center's usefulness in the community appears to be more than specious projection, but a rather deft twist of the knife, taking on the distinct flavor of muckraking with a tablespoon of Trumpian hyperbole, well neo-Trumpian hyperbole. Good job, you got our attention. I won't take offense that all the audit people have their backs to me. I want you to understand there are more volunteers at the Media Center than there are staff. We are creatives; we're doers, artists, idea people, activists, techies and makers. You need us, but you don't see us. Please make an effort not to pick the road most traveled by politicians, bean counters, bureaucrats. That is the road of failed imagination. Please open your eyes, examine the books, go over the costs, find the pain points and fix them. Work together, be kind and dig in for a bit of understanding the wide-angle view, the establishing shot. That's a good place to start. Godspeed to you. Chair DuBois: Thank you. Ken Allen followed by Nancy Wheeler. Ken Allen: First of all, I'm Ken Allen, Grove Avenue. I believe I speak from a useful perspective because I was the corporate secretary of Cable Co-Op when it funded the Media Center back in 2000. I was responsible for distribution of the funds. I was not involved in the contract negotiations, but they're relevant here despite what the Auditor may have said. From what I've read in the Auditor's Report, it seems as though the primary issue is whether PEG Funds are allowed to be used for Capital Expenditures. I believe the Auditor erred in Finding 1, that the Audit Report is fundamentally flawed. The Report of the Auditor seems to ignore the realities and make it appear that there is an evil intent on behalf of the Media Center and the money grab by the City to the detriment of the Media Center, its contributors, its users and its viewers. I read the Cable Act. I read the State Franchise Law that superseded the Local Franchise Agreement, and I even found an opinion of the California Attorney General that PEG funds were to support PEG operations. I tried to find the case law the Auditor relied on, and I think I found it. It has no statement that limits the use of PEG funds to Capital Expenditures only. All of the discussions were on what is a Franchise Fee. PEG funds were definitely separately defined. There is no such limitation in the Cable Act on the use of PEG funds for Capital Expenditures. The law merely says that Franchise Fees are not to be used on Capital Expenditures, and that PEG funds could be used for Capital Expenditures. The Auditor evidently has no memory of the history of the Media Center. When Cable Co-Op offered to give the entire cable system and operations to the City in the late 1990s, the City refused, agreeing to subsidize Attachment B Page 10 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 operations instead. If you want now to rewrite that understanding and limit the use of PEG funds, then consider the PEG funds as borrowed from the capital of the Legacy Fund and allow the Media Center from this point forward to begin to reimburse that Legacy Fund. It will take nearly two decades to do so. Otherwise, the City and the Joint Powers may be obligated to find other means to support PEG operations as expected by the Cable Act. Chair DuBois: Thank you, Ken. Nancy Wheeler to be followed by Stephanie Reuder. Nancy Wheeler: Hello. I'm an artist and also a volunteer for Silicon Valley Open Studios, a local nonprofit for artists. I produce a show called Talk Art at the MidPeninsula Media Center. On Talk Art we feature many Palo Alto artists and other artists from the surrounding communities. We aim to connect the community to their local artists and the local artists to their community. We also hope to educate people on the techniques and styles of art that are available and to make this more accessible. This is particularly for people who haven't received an arts education either because they're very young and have not yet received one or because for whatever reason they didn't have the opportunity to get one. I think one of the important things about the Media Center is the combination of broadcast and digital delivery. Broadcast enables people who don't yet know what they're looking for or what it might be called to find this. Once they've found it, then the digital delivery gives them more direct, interactive access. I think the synergy is much more effective than just the one or the other. Many of the artists I work with would not be able to reach out to the community in this way without the Media Center. Both because of the expense of the equipment needed to produce a high quality video, which is really needed for the arts, and also because of the knowledge gap as it's very complex and most artists have concentrated on the arts and may not have the technical understanding to approach it. People need the Media Center to cross these barriers. Thank you. Chair DuBois: Thank you. Stephanie Reuder to be followed by Paul George. Stephanie Reuder: Hello. My name is Stephanie Reuder; I am the President of the Board of the Peninsula Peace and Justice Center. I'm going to point out some problems with the Study from the Mackinac Center for Public Policy. In questioning the funding for our MidPen Media Center, the Auditor cites this so- called study from Mackinac. I have read the Study, and I have some post- graduate training in reading and evaluating social science research. This Study may not be the most fraudulent piece of social science research that Mackinac has produced, because they're a notorious source of far-right opinion lightly disguised as social science. Like other Mackinac classics, this Study does not collect and test relevant data and then reach a conclusion. Instead it speculates that community media centers are obsolete, that they lack Attachment B Page 11 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 viewers, that they don't serve their community, etcetera. It concludes that cable companies should no longer be required to pay PEG fees. That is not social science research; that's an opinion. It's not a Study; it's just disguised as one and has no relevance to our Media Center's role and value which so many people have already spoke eloquently about, and more will. I'll just say finally that I did get training as a camera operator for the Peace Center in 1988, then we had to go to De Anza to do that. After our Media Center was created, it was certainly easier to do it up here. I've remained involved in a lot of different ways since, and I look forward to hearing the comments of other people who have been involved with the Media Center. I think it's been a great value to our community. Thank you. Chair DuBois: Thank you. Paul George to be followed Audrey Daniel. Paul, it looks like you want to speak for five others. Paul George: Yeah. Can we get a little volume discount here, maybe four minutes total? Chair DuBois: Sure. Paul's going to speak for Richard Duda [phonetic], Henry Morgan, Glenda Jones and Richard Clark. Paul George: Thank you. As noted, my name is Paul George. I'm Director of Peninsula Peace and Justice Center. In that capacity, I've been producing and hosting an award-winning monthly program at the Media Center for nearly 20 years now. Just so we're clear, could everybody who's here in support of the Media Center just hold your hand up? I thought as much. Just didn't want you to miss that. You know by now that the Mackinac Center for Public Policy— it was just talked about—and whose Study is cited in this audit as a reason for undermining PEG Access Fees, that Center is largely funded by the Koch brothers, the Dubose family and other radical, right-wing billionaires. This is why the Kochs pour millions of dollars into such think tanks each year. You take a radical, right-wing ideology, you dress it up as social science and fling it into the public policy arena. Voila, the Koch brothers are influencing policy here in the MidPeninsula. I'd like to address that Study and the points brought up in the audit about the worthiness and value of PEG access and the Media Center. Suppose I propose that Palo Alto City Council should be dissolved because nobody watches your meetings on TV; that on its face would be absurd and so are the comments in the audit regarding PEG access. Our monthly program is a community forum with an audience in the studio that participates in the discussion. Usually between 50 to 100 people attend each program. Over 20 years, that comes to about 12,000 people who have used the physical spaces of the Media Center as a kind of community commons. I can honestly say that today the Media Center is an even more valuable community resource than it was 20 years ago when we started our program. That's because of the very technologies that the audit cites as a reason to get Attachment B Page 12 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 rid of PEG access. Let me give you just a couple of quick, recent examples. Our program in December was on the Syrian refugee crisis and featured award-winning foreign correspondent Reese Erlich who reports for National Public Radio (NPR) among other outlets. I have no idea how many watched on TV, and I really don't care. I do know that over 300 people watched on YouTube, another 250 on Facebook. When I posted a short clip from the program to Facebook, yet another 500 people watched that. That's over 1,000 people who saw that program. That's enormous outreach for a small organization like ours. A program on Silicon Valley's housing crisis last October packed the studio, and housing advocates from Mountain View participated on the program live from a Mountain View City Council that was taking place right then on the issue of the housing crisis. They were able to do so because the Media Center has now provided us with Skype, which brings me even more people. A program in January on anti-muslim hatred featured the director of the Council on American-Islamic Relations (CAIR). In addition to the hundreds of views on there, CAIR now uses that video for their own outreach, and many other organizations have just done the same thing. The audit says "the idea that PEG channels offer unique choices to viewers is outdated. Much of the programming and local information is available on the internet." That is just so wrong. The Auditor forgot to think about where that programming comes from. It doesn't just show up out of thin air on YouTube; somebody makes it. It's produced at the MidPen Media Center, using the latest technologies and equipment that simply wouldn't be available to an organization like us otherwise, millions of dollars’ worth of the latest equipment. It is produced by the people in this community; that's the real value of the PEG access. Please do not accept this audit in its current state. Please get rid of the Koch brothers and acknowledge the astounding, creative, unique contributions of the people in this community. Thank you. Chair DuBois: Thank you. Audrey Daniel followed by Phillip Pflager. Audrey Daniel: I've been a volunteer at the Media Center for five years and producer for two. My show is called Culture Connect. It's really to help each other understand our different cultures. On the show, we share messages that are important not only to the local community, but to the national community and international. The Media Center offers a place for anyone of any income level, as the previous speaker said, color, gender, political party, religion, educational background to express their ideas through media by learning how media works. What you do with the content, whether it goes on YouTube, Vimeo, community cable access TV, is not the point. It's learning to create good content that can deliver a powerful message. This is what the Media Center is all about. The MidPen Media Center studio and equipment give people with very little means access to professional tools they couldn't afford. To rent a studio generally, just the studio, is $1,000. You tell me anybody in East Palo Alto that has a spare $1,000 to go into a studio and Attachment B Page 13 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 produce a show. That doesn't include cameras, lights, tripods, other costs that are involved. How do you even use that equipment? You can't learn how to use the equipment if you don't have access to it. So much of what I see happen at the studio is people from all income levels and education that share a learning opportunity and a team working spirit to help each other share our individual messages and release them in the world. The more one can learn how to effectively express themselves in a media whirlwind and understand how to navigate the media outlets and audiences, the more their voice can and will make a difference. Thank you. Chair DuBois: Thank you. Phillip Pflager. Phillip Pflager: My name is Phillip Pflager; I'm a retired broadcast engineer. I worked for KGO TV in San Francisco for 22 years, and I received a good wage for doing that. Retired now, I volunteer at the Media Center for free because I believe in the mission of the Media Center. The Media Center provides an opportunity for those who don't have a voice to have a voice. It provides a voice for your constituency. There are six corporations that control 90 percent of the media. While they have a large cable channel system, it's a corporate cable channel. The Media Center provides an alternative that provides views and ideas that are not allowed on corporate TV. I come here today to implore you not to reduce the funding to the Media Center and silence the voice of those who are voiceless and reduce the opportunity for people to prevent alternate views that are not allowed on corporate TV. Thank you. Chair DuBois: Michael Di Battista followed by Barbara Noparstak. Michael Di Battista: Hello. I'm Mike Di Battista. I've been a member of the Board since 2005 representing the town of Atherton. I've been the treasurer of the Board since 2008. I appreciate the opportunity to speak to you today. I wanted you to know what steps the Media Center is taking in terms of its accounting principles and policies to avoid any future scrutiny regarding the use of the PEG Fees. First, we have redefined and narrowed the definition of capital in our policy to include only those items that are purchased which exceed a certain dollar amount and have a useful life of one year or more. We believe that that should be an acceptable definition of capital by just about any accounting principle. Second, the Media Center now uses PEG income solely for those capital purchases. The Cable Co-Op Legacy Fund, which was previously used, which we refer to as the Investment Fund, will now be used for noncapital expenses. However, capital purchases are generally a small part of the Media Center operation costs. Limiting PEG Fees solely to capital equipment purchases will have a significant effect of shortening the life of the Investment Fund and, hence, the life of the Media Center or at least the extent of services that it's capable of offering. We have developed a forecast model to predict the life of the Investment Fund. The model predicts that limiting Attachment B Page 14 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 PEG income to solely the amount of Capital Purchases will reduce the life of the Investment Fund by at least 10 years. There is a solution that we would propose to provide for a long-term sustaining of the Media Center. The Investment Fund was used to purchase capital equipment, the property, the building that the Media Center now owns and operates. We propose that future PEG income which exceeds the amount of capital purchased in a year be applied towards the purchase of those items. Ultimately, that would result appropriately in the Joint Powers Authority (JPA) owning those items, and it would extend the use and the lifetime of the Investment Fund. Chair DuBois: If you can wrap up please. Mr. Di Battista: At any rate, we hope that our actions and proposal be taken into consideration. Thank you. Chair DuBois: Thank you. Barbara followed by Andrew Mellows. Barbara Noparstak: Good evening. I'm Barbara Noparstak, President of the MidPen Media Center Board of Directors. I'm a volunteer. I do it because I love my community and I value public access. We've earned the best station in the nation award from the National Alliance for Community Media, which represents 3,000 public access stations, three times. What's more important is how we are valued by the community we serve. Last year for our 25th anniversary, we received so many proclamations including one from the City of Palo Alto. There are lots of people here today who are testifying to the value of our Media Center and PEG access, government transparency, inclusivity, social capital including youth self-esteem. I want to address one additional important value head-on, integrity. Everything we do is above board and open to scrutiny. Each of the six JPA member jurisdictions is entitled to representation on the Board. I've represented San Mateo County since 2002. Palo Alto's seat has been vacant since the end of 2014 when Donna Grider retired. The Auditor has blocked nomination of a replacement. I encourage you to direct Staff to nominate someone, someone to share our fiduciary responsibilities, to participate actively in our upcoming strategic planning and community outreach and to link constructively to the City. Let's not fight about the past; let's think about the future. Thank you. Chair DuBois: Thank you. Just so you know, I’m cutting off speaker cards at this point. Our next speaker is Andrew Mellows followed by Rick Row. Andrew Mellows: I'm Andrew Mellows; I live at 791 Coastland Drive. In respect to your request, I will say I agree with everything that's been said. I will limit my comments to my own little experience. My wife and I have a small video production business in Palo Alto. We have taken classes in the Media Center as our business becomes more sophisticated, and the instruction Attachment B Page 15 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 was excellent and the cost modest. I help with the sports summer camp program at the Media Center. Children are instructed in the use of the Media Center's production truck. During May this year, East Palo Alto children have been producing live coverage of sports at Palo Alto high schools. It is a unique opportunity for elementary, middle and high school children to work as a team on a project that would normally be far out of their reach. To be clear, the children do the entire production including camera, director, audio, replay, graphics and commentary. Many who have been involved in the Media Center have gone on to study film and media in college and have related careers. I have been able to broadcast Grace Lutheran Church's services on cable for 25 years and recently of course on the internet also, all this with no cost. The audience of shut-ins, people who have moved away and people who are traveling is small, but they really appreciate the facility. As a grateful immigrant, the right to public access is a real gift and one thing I love about America. I value the Media Center enough to volunteer as a Board Member, to maintain and repair equipment without cost and to give a modest annual gift in support of operations. I hope you share my enthusiasm for supporting the Media Center as a worthwhile community resource. Thank you to all of you for your efforts for the people of Palo Alto. Chair DuBois: Thank you. Rick Row followed by Ben Stetson. Rick Row: Hi. Thanks for getting my name right the second time. Yes, it is Rick Row. I'm a resident of Palo Alto. I am a graduate of the video production class, and I'm actually in the middle of doing a video for the Tuolumne River Trust and one next week for Acterra as well. I just wanted to say that I found it quite reprehensible that the City Auditor went from talking about financial management to commenting on community values. I just find it very inappropriate for someone who's an employee of the City—sorry, I'm not sure whether she's an employee or contractor—to talk at length with the media and (inaudible) media than TV actually about the social value of a program. I noted on one of her slides under Finding 1 she asked the question if PEG channel's relevant given today's technology. She's already given her answer to that, but that question has nothing to do with Finding 1. I don't know whether they're supposed to be spending this money on Capital Expenditures or not. That question is just another thinly veiled attempt to continue the discussion of social values. I think that's between us and our elected officials. Thank you. Chair DuBois: Ben Stetson followed by Arlen Comfort. Ben Stetson: My name's Ben Stetson, and I just want to add my support to all that you've heard and the emails you've received in support of the Media Center. I've attended maybe six live tapings of Paul George's interview show. Attachment B Page 16 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 I found them extremely worthwhile. Again, I just want to add my support and appreciation for the value the Media Center provides us. Thank you. Chair DuBois: Thank you. Arlen Comfort followed by Roy Blitzer. Arlen Comfort: I'm Arlen Comfort from Menlo Park. I'm not part of any staff of the Media Center; I'm a user, I'm a customer or however you call it. I'm very happy with what I see from the Media Center. The other thing I would say is that I'm a cynic about everything that I see that's commercial television, cable, on-air, whatever. I believe when I'm listening to Paul George and his group, which is one of my favorites, if they're not telling the truth, they're trying their hardest to get the right information out to us. They're trustable, I can do that. The other thing I get at home, to bring up something here, is a lot of survey calls. My first question is, when somebody calls for a survey, who's paying for this. If they won't tell me, I won't tell them any information, because I don't know how they'll use it, because I know they'll use it for their own purposes, throw out what they don't want and keep what they do want. My question is, who behind this audit helped pay for it, pay for any the Study, was it just the City or was there other people involved. We need to know that because that's part of how you determine whether this is right or wrong. Thank you. Chair DuBois: Thank you. Roy Blitzer followed by Steven Gredinger. Roy J. Blitzer: I'm here both as a supporter of the Media Center and also as a former City employee. I sat on the Human Relations Council or Commission for 9 1/2 years and was also one of their Chairs. I guess my first point is to imply in any way, shape or form that the Media Center was not acting in an integrity mode is really ridiculous. I have never met a greater group of committed, honest and basically high-integrity people. Whatever you're after is certainly a miniscule amount of time and energy for a community service that is very worthwhile. I'm also a producer there that helps young people and old people learn more about their careers, that they will be happy and more satisfied at work. I want you to reiterate that this is a process that may not need to take place. The Media Center is a valuable resource to the community. It is something that you should be proud of and not scrutinizing and questioning. Thank you. Chair DuBois: Thank you. Steven Gredinger followed by Judy. Steven Gredinger: Hello. Thank you for taking public comment on this important issue. I would like to reinforce and support the comments of the people who have gone before me. In addition, I'd like to note that in fact there is a studio in the MidPen and that you cannot obtain studio-like quality on your cell phone. One of the things that actually attracted me to the Attachment B Page 17 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 neighborhood of MidPen was the fact that there were opportunities to volunteer and produce the kind of educational programming that is created there. Our children are not going to live in a text-only world. We don't even know the relative importance of text-based and multimedia communication into the future. We should allow them as many opportunities as we can to explore multimedia and to explore the integration of web video and other media. Really from my perspective, the only question worth asking here is how do we drive more utilization of the facility and how do we get more kids and more people interested in exploring opportunities there. Now, we could consider enhancing the facility by soliciting some kind of a public-private partnership maybe, but really I would encourage the Council to think about policy and how to make the Media Center even more vibrant than it already is. Chair DuBois: Thank you. Judy followed by Elliot Margolies. Judy Adams: I think I'm the Judy in question, Judy Adams. Chair DuBois: There's no last name. Judy blue eyes wanted (inaudible). Judy Adams: I can't speak for the fiscal issues which are complex, but I will add my support to the statement that in an Auditor's Report there should not be an analysis of the social, educational relevance of a service. I can speak as others have for the educational opportunities provided by the Media Center and its predecessor in the '70s, which was down by Fry's where MaxiAids used to be. That's where I first got involved in public access TV for the Peace Center as a Board Member which happily hired Paul George, who's still obviously going strong. I use the Media Center more recently for the Women's International League for Peace and Freedom, which put on an exhibit at Rinconada Library for our centennial from November through January, last November and this January, and then other nearby venues. I made a slide show in the '80s of interviews with women peace activists, and the Media Center helped me edit, bring that together as a video program. Now it's true that was shown on Vimeo, available on Vimeo, but it was shown in the community. I continue to learn skills that I learned in the beginning, in the '70s. It's an invaluable resource, and I encourage the City Council to solve whatever issues there are, keep the programming going. As a community resource, as everyone has said, it's unmatched. Thank you. Chair DuBois: Thank you. Elliot followed by Henrietta Burroughs. Elliot Margolies: I'm Elliot Margolies. I was the first Executive Director of the Media Center. We put all the Palo Alto government meetings online. In the first half of 2015, no less than an average of 717 views every month came to the Palo Alto meetings page. That doesn't include those who watch at home Attachment B Page 18 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 live on the government channel. In fact, the City Council meetings are the most long-running series we have. Now inspiring speakers tonight have illuminated the incredible value that they bring. Their viewers find them on the cable channels but also on our web streams, our YouTube channel and on the producers' own websites. These are platforms that the one-sided report quoted by the Auditor doesn't even measure. I want to point out that a significant portion of what the Media Center does have very little to do with the cable channels at all and everything to do with community building. Some examples: violence prevention, media projects with teenagers, community forums on health and legal issues in Spanish, afterschool activities in the Ravenswood District, town meetings that we've set up on local issues, dozens of candidate forums and ballot measure debates on almost—yes, we're doing yours later—every local contested election since 1990, and a growing archive of immigration stories that over 5,000 people a month come to visit, and community events such as author readings done in partnership with the Palo Alto libraries. My last line is that the scope of what we do goes far past what plays on the cable channels. Our staff is passionately involved in community building and dismantling the digital divide. Our work is not television per se, but about building bridges of empathy and empowering people with the tools of engagement and storytelling. Thank you. Chair DuBois: Thank you. Henrietta Burroughs to be followed by Leif Erickson. Henrietta Burroughs: I'm Henrietta Burroughs, the founder and editor in chief of the East Palo Alto Today newspaper and the host and producer of Talking with Henrietta. I am delighted to be here to speak on behalf of the Media Center, but not as delighted as I was in the 1980s when I moved to Palo Alto and found that there was a small group of people who wanted to set up community media in Palo Alto. Why was I so delighted? Because I'm a professional journalist, and I worked in New York City as a print reporter and as a broadcast journalist, even hosting a television show. I worked at Rockefeller Center with some of the broadcasters that you know of. Even at the top of my field in the number one media market, I was not happy with the way news was selected and produced. Here was the chance to meet with a small group of people, which I did, on a regular basis, and was delighted that the Media Center was launched. Since that time, I produce one of the first shows at the Media Center as a Commissioner on the Human Relations Commission (HRC) and five years later started the East Palo Alto Today newspaper, the Talking with Henrietta show that has been going since 2002. I've interviewed Congressional representatives, State officials, City officials, even some of you, business representatives, community representatives on a variety of critical issues. There is no way that I could have had that opportunity outside of a commercial media network, to present the type of quality shows that receive national, State recognition. No institution or Attachment B Page 19 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 agency is perfect, but the Media Center needs to be commended for the way it has kept to its mission, allowed some of us to keep to our mission. I hope, while you might consider cuts, that they not be the beginning of a thousand cuts that would destroy what we value in this community so much. Chair DuBois: Thank you, Henrietta. I'm available for interviews all week. Leif Erickson followed by Thomas Atwood. Leif Erickson: I'm Leif Erickson, Executive Director of Youth Community Service (YCS), and honored to be speaking with Henrietta. YCS, Youth Community Service, also is enjoying a 25-year anniversary this year along with the Media Center. Media Center has been an essential partner for our work of civic engagement and social and emotional learning and community service with young people in our mid-Peninsula communities. Media Center folks have trained and broadcast video messages created by our students with messages that it's okay to ask for help when you're having a bad day. They have broadcast public education programming for our parents and our staff and our young people. One of the particular areas of overlap is our community footprint where we also serve East Palo Alto, Menlo Park, Palo Alto and the surrounding community like the Media Center. We appreciate the way that the Media Center not only promotes communication and information sharing within a city, but also across the freeway, across communities in a way that helps to overcome the extreme inequality of wealth and education. In short, the Media Center is a beloved and essential community institution. I'm puzzled at the findings of this Audit Report. I'll look forward to hearing your resolution. Thank you. Chair DuBois: Thank you. Thomas Atwood followed by Dorothy Fadiman. Thomas Atwood: Hi. My name is Thomas Atwood, which I guess makes me an anglicized version of your name, Council Member DuBois. I also find it strange that the Audit included claims about the usefulness of the Media Center to the community. Is this evaluation within the scope of an audit? I'm not an auditor, and I don't know the answer to that question. If it's not, then let's focus on whether the Media Center followed appropriate accounting practices and correct any problems. If it is in scope, let's use more reliable sources than the Mackinac Center to make the evaluation. Last fall, I became a producer in retirement when Peninsula New Economy partnered with the Media Center to record a series of three local cable programs on banking, finance and the economy. We brought Marco Vangelisti, a Fulbright Scholar and economist, to deliver these talks. Marco shared perspectives that are virtually unavailable in mainstream media and probably threatened the Agenda of the Kochs and Waltons of this world. I sure hope the programs didn't attract the attention of the Koch brothers and they just don't want to pay the fees. The City's PEG Fee Audit states that government auditing Attachment B Page 20 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 standards require auditors to be free from external influences that could create the appearance that the Auditor's professional judgment may be compromised. What could be a more biased influence than a brief funded by families whose express goal is to make government small enough to drown in the bathtub? The Koch brothers, the Scaifes, the Waltons, the DeVoses and the Bradleys already own more than 50 percent of Americans combined. The five Walton heirs alone own more than 40 percent of us. The death by a thousand cuts tactics of libertarian think tanks are incremental and patient, but they're unworthy of Palo Alto. In summary, if evaluation of the usefulness of PEG channels or the Media Center is not part of the scope of an audit, let's reject it or at least set aside the section of the Report titled Concerns About Ongoing Usefulness of PEG Channels. Thanks. Chair DuBois: Thank you. Dorothy Fadiman followed by John Kelley. Dorothy Fadiman: My name is Dorothy Fadiman. I'm an independent documentary filmmaker. I had five minutes prepared because I didn't know, and I got it down to a minute. After everyone spoke, I got it down to about 45 seconds. I'm always looking for ways to share my completed work. I've been nominated for an Oscar; I have an Emmy. Still I face the same old challenges of how can I share what I've produced. Through the Media Center's broadcasts and my ability to be on their channels and speak about my work, I'm able to reach not only my own community but, once the films are online, they can be seen by millions of people anywhere in the world. Through PEG access, my films are picked up and shown station by station in places which I could never reach myself through DVDs or on foot. I've worked on various shows at the Media Center, both as a producer and on camera. Afterwards, when I thank the volunteer crew, invariably every one of them says something like, "Thank you for giving us this opportunity." What the Media Center does is create a two-way highway between producers and on-air guests and volunteers. All of them make it possible for us to reach audiences. They produce our programs with us and then thank us for the opportunity. They never make us feel that they're doing us a favor. I always feel that they're giving me a gift. Thank you. Chair DuBois: John Kelley followed by Peter Drekmeier. John Kelley: Thank you. I'd like to associate myself with the remarks of Ken Allen, with Andrew Mellows, with the gentleman from the Media Center who was talking about how they plan to go forward on a financial basis, and with the woman whose name I can't remember who talked so eloquently about the need to increase funding for the Media Center, not cut it. I would like to add very quickly—I could probably talk for two hours on this subject. I was the President of Cable Co-Op for over a decade. I was a member of its Board of Directors for 19 years. I was the person who lead the franchising effort. I Attachment B Page 21 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 spent a lot of time here in the early '80s trying to win the franchise for Cable Co-Op. I was also the person who negotiated the agreements with MPAC and in the sale. I know this stuff cold, at least as it was originally funded. I can tell you that, from the consumer's perspective, providing support for PEG channels, providing support first for Midpeninsula Access Center (MPAC) and then the Media Center in its creation was fundamental to our franchising effort. It was continually reaffirmed not only by the community and its elected officials, but also by the subscribers themselves. That was part of what the subscribers voted on to dedicate a substantial portion of the proceeds from the sale of Cable Co-Op at the time that we turned the system over to AT&T. The other thing I'd like to say is from Ken's remarks and from what other information I've gleaned from the audit itself, there's at least an open question about the treatment of the Capital Expenditures. I think if you're going to go back and look at things, going back five years, you should really go back and look at the money that went into the building of the—that went from Cable Co-Op to the building and perhaps amortize that over almost 20 years now. I think you would probably end up owing a great deal to the Media Center. Finally I'd like to say that the real challenge, particularly now when the City's looking at constructing a fiber network, is how to provide more and better content that's relevant to this community. I think you should be directing the Staff not to find ways to cut funding for PEG programming, but to increase it, particularly if you're going to build a fiber system here in Palo Alto. Thank you. Chair DuBois: Thank you. Peter Drekmeier followed by Larry Klein. Peter Drekmeier: Good afternoon, Chair DuBois and Committee Members. I thank you for your great service to our community. Like others, I just wanted to share the value of the Media Center to me and my community. When we started Bay Area Action on Earth Day 1990, we had a number of projects, and one was a video project. We had a member who was producing public service announcements for Beat the Backup Day, for the Downtown Environmental Action project. He encouraged us to go through the training, so I did it at MPAC. It opened up a new world for me. I produced several documentaries including one on San Francisquito Creek that is now available on the Media Center YouTube channel. We had a program called Common Ground, a monthly program, that lasted for several years and had quite a strong following. I used to broadcast the City Council meetings; that was when I learned that it might be fun to serve on Council at some point. I was working with Vince, who's now doing KZSU, so you can imagine it was quite a scene in the broadcast room. Just the broadcasting of debates, of community forums is so important. We had a community forum in the chambers here on December 11, 2014, with the City, the Water District and Stanford, and it was on water reuse. I mention December 11 because that was the biggest storm we've had in the last five years, and here we are talking about the need to Attachment B Page 22 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 reuse water. People were getting texts that you shouldn't drive unless you have to. A lot of people who had signed up worked for Public Works Departments, and they had to be on call. About half the people, about 100 people, didn't show up, but it was videotaped by the Media Center, and they all got to see it. It was really great information. Just last night I realized we had the Tuolumne River film and culture fest at the Menlo-Atherton (MA) Center for Performing Arts. One of the documentaries about the Tuolumne Wild and Scenic Campaign from 1983, I was able to convert it at the Media Center from 3/4 inch to digital. Rick Row, who you heard from earlier, was videotaping that event so other people would be able to see it. Thank you, and thank you for providing the best reality TV on Monday nights. We all appreciate that. Chair DuBois: Larry Klein followed by Ellen Forbes. Larry Klein: Good evening, Committee Members. I'm here to urge you to adopt the position of the Media Center as set forth in their March 24th letter to you. Four reasons. First, I would urge you to look at this from the 30,000- foot level. You've heard a great deal of testimony this evening about how valuable the Media Center is to the community. You've heard nothing on the other side. There's nobody here complaining except perhaps the Auditor. No citizen has come down here to criticize anything about the Media Center. You haven't heard anything even from Comcast and AT&T. We've heard nothing that the Federal Government doesn't like the way the accounting has been handled. We've heard nothing from the State. The only person complaining against all these citizens is our Auditor, and that to me is strange. Second, you've heard a lot of about this Capital Expenditure issue versus operating costs. I'm not going to get into that. You've heard some very eloquent speeches, and I want to add that Ken Allen, perhaps out of modesty, did not mention to you that he has been voted one of the distinguished patent lawyers in the world and has 40 years of experience in dealing with statutes like the Cable Act of 1984. There's an easy way to find out who's right on the issue of capital versus operating expenses. You can ask the Federal Communications Commission (FCC) for their opinion. We don't have to have this duel of lawyers. The FCC has the right to issue opinions. Lawyers frequently use things like that to Federal Agencies. The criticism of the PEG channels by the Auditor, I think, is out of bounds, but it's also using the wrong lens. This isn't a question of a cost-benefit analysis or Neilsen ratings or things of that nature. This is a service to the public. I don't think we should look at it in that narrow of a light. Lastly, I would urge you to do no harm. We have a great asset here; don't harm it. Chair DuBois: Ellen Forbes to be followed Batya Bell de Berenfus. Attachment B Page 23 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Ellen Forbes: Good evening. I'm Ellen Forbes, President of the League of Women Voters of Palo Alto. Since you have the League's letter on this subject in your Packet, I will limit my remarks here. As I was sitting here tonight, it occurred to me that all three categories, public, education and government, apply to the League's work. The mission of the League is an informed electorate; therefore, any question that public access to governmental affairs might be pared back deeply concerns the League of Women Voters. The League believes that the democratic government depends on informed and active participation in government. Democratic government also requires that government bodies protect the citizens' right to know by giving adequate notice of proposed actions, holding open meetings and making public records accessible. Most of the City's public meetings are available to the public via the PEG access channels maintained by the Media Center. Should there be limited PEG access channels, the City would be impairing the citizens' right to know. The League of Women Voters of Palo Alto heavily relies on PEG access channels to air its many voter education activities such as City Council candidate forums, presentations of the pros and cons of the ballot measures and many more events. If PEG access channels were not available, the League of Women Voters would lose this valuable means of educating voters and ensuring that our democracy works. Thank you. Chair DuBois: Thank you. Batya Bell de Berenfus, and then our last speaker will be Beth Charlesworth. Batya Bell de Berenfus: My name is Batya Bell de Berenfus, and I actually moved to Palo Alto in 2002. I'm a businesswoman, and was told by a political candidate in Menlo Park about the Media Center. One thing that I did want to say is—I wrote a letter to you not knowing if I'd be here—that Capital Expenditures are only as good as the people who steward them that benefit the local communities. The MidPen Media Center is a thoughtful and responsible custodian of these assets, doing a value-added job. The Media Center's operations and cutting-edge equipment is a necessary component to the continuum of informal and entertainment community engagement that is essential to and among other things First Amendment rights, workforce development, community relevance, affordability and access. On one hand, people have mentioned that YouTube is that impulsive, creative mind armchair way of engaging with people. On the other end of the continuum is the Holly Bollywood entertainment industry. The Media Center is conveniently and comfortably nestled in the middle of this continuum with professional supervisors, seasoned and knowledgeable trainers and nationally recognized, award-winning TV and film productions. When we talk about free speech, you already heard from a few people here. Yes, there's public access options throughout Northern California, but the Media Center puts the Mid-Peninsula on the map. It's the only Media Center where East Palo Alto, Palo Alto and Menlo Park issues are regularly addressed in a thoughtful and cohesive way. Attachment B Page 24 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Karen mentioned Making the Call as an example, and then Talking with Henrietta is another example. In terms of workforce—there is workforce development and community relevance that other people have also addressed. What I want to say is please weigh the assumptions of the audit carefully against the merits of the Media Center that offers a unique benefit to the community where there is no other option. Chair DuBois: Thank you. Beth Charlesworth. I missed one speaker; Annie Folger will be our last speaker. Beth Charlesworth: Thank you for giving me the opportunity to share a few thoughts with you about the Media Center and about this Audit Report, which I have read. The thing that disturbs me most about the Report is the attitude that the marketplace should be the arbiter of how citizens exercise their First Amendment rights. The Mackinac Center, which is the sponsor of the 2008 Report cited by the Auditor to support her views, is explicit about that in the conclusion section of the Report where it states that the video marketplace will sort out issues such as the value of PEG channels and the funding of media centers. The City Auditor and the Mackinac Report both suggest that PEG media facilities are no longer needed because there are alternatives in the marketplace to the Media Center. It's true that commercial means of self- expression have arisen since the Media Center was founded, such as YouTube and Facebook, but this ignores another vital purpose filled by the Media Center which is teaching citizens to use the technology to communicate as effectively as possible including on YouTube and Facebook and other hosts as well as on local TV channels. Creating a video to promote your small business or nonprofit or school or political views takes more than waving an iPhone and then uploading raw footage to YouTube. The Media Center provides education on getting good quality video, good audio, editing raw footage, promoting the video and getting it out on host services. It provides that education at a cost far below market price. Finally, I question, as another speaker has, why the political attitudes of City officials and employees should have any role in an audit. The residents of Palo Alto, I believe, are entitled to an audit process which is fair, neutral and has no political axe to grind. Thank you. Chair DuBois: Last speaker, Annie Folger. Annie Folger: Hi. I'm Annie Folger, the Executive Director of the Community Media Center. Thank you, and thank you especially to all of our amazing speakers here for validating so eloquently our value. In wrapping up, I'd like to briefly summarize for you three major points. First, while we appreciate and support the principle of an independent audit, in our audit response we address why we believe this Report is critically flawed and why it's recommendations ought to be rejected. Rather than spending City Staff time and the public's money on investigating whether PEG access has value, we Attachment B Page 25 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 think it makes more sense for Staff, the Center and other concerned parties to work together for the real mission to inform, inspire and empower people to speak and act on behalf of their communities. Let's focus on the future. The Cable Act of 1984 mandated public access to ensure our communities could express their First Amendment right of free speech on television. Television is a 20th century tool. Our goal is to do our best to see that our 21st century legislators continue to support the need for public discourse in emerging communication technologies. We want to work with the City Staff, with the City's fiber to the home and similar initiatives and be part of solutions that allow local residents active participation in civic affairs. Democracy is not a spectator sport. We challenge ourselves to use our entrepreneurial spirit to invent new, interactive ways to participate in choosing our future. Second, we don't think that PEG fees should be cut or eliminated or that they should flow through each of the JPA cities' individual accounting systems. We disagree with the audit's recommendation and want to put this matter behind us. We recommend that the PEG fees continue to flow to the Media Center, to now be spent only on capital. We will continue to be transparent in our accounting and reporting. In order to preserve free speech, we were set up as an independent agency. It is our responsibility to define Capital Policy and take the liability if we define it wrong. Third and last, our agreement to use PEG Fees only for capital represents a severe change in how we continue to fund our efforts, but we believe we've offered a solution. Mike Di Battista, our treasurer, gave that to you earlier. I would just like to respectfully urge that you direct the City to work with the JPA and with us to finalize the feasibility of this plan that will allow the Media Center to continue to serve our cities. Thank you very much. Chair DuBois: Thank you. We now shift to the Committee. I was going to suggest that we look at the findings one at a time, but I know Marc Berman needs to leave and participate in public discourse at a candidate debate. Marc, if you want to make a few comments before you leave. Council Member Berman: Thank you, Chair Tom. I find myself more conflicted than I anticipated when I walked into this meeting. It just dawned on me during all of your public comment that, if the Media Center has less funding, then the things that I say at 11:00 at night, six hours into a Council meeting, won't be preserved for all of eternity. I'm having a tough time—no. In all seriousness, thank you everybody for coming out and telling us how much you value the Media Center as a community asset. I do apologize; I have to run off for something that's going to be taped by the Media Center and played later. I just want to say a couple of quick things. One is—I do want to say that I have full faith in the integrity of our City Auditor and the Auditor's Office. That doesn't mean that we're all—none of us are perfect. Sometimes we might choose sources that aren't great, and sometimes we might make judgments that the rest of us don't agree with. I do have 100 percent faith in the integrity Attachment B Page 26 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 and the independence of our City Auditor's Office. This is something that was funded fully by the City, to just answer another gentleman's question. Clearly not every benefit of an asset can be quantified, and sometimes it shouldn't necessarily be quantified. I think we've heard clearly tonight that you could justify the Media Center through metrics, but there are also a whole lot of other benefits, intangible benefits, that it provides to the community in giving a platform for people to express themselves, to learn new skills, to educate the public. Those are all critically important things for the City of Palo Alto and for the region that the Media Center serves. There are two questions. To me, there really aren't two questions, but clearly there seems to be two questions. One is, is the Media Center a valuable asset to our community. Clearly the answer is unequivocally yes. There are legal questions that I'll leave my colleagues to have to haggle over and hash through. I'm confident that we can do that in a way that doesn't negatively impact the Media Center. I do think it's important that we do it in a way that makes sure that the City is abiding by Federal Law. There's clearly some question amongst lawyers as to what the law states. I also have a lot of faith in our City Attorney who is fantastic. Those are questions that will be debated tonight, and it'll go to Council. I'll be there to participate in that conversation. I apologize that I have to run off now. Thank you all for coming out to let us know what you think and how much you guys value the Media Center. Appreciate it. Council Member Berman left the meeting at 6:37 P.M. Chair DuBois: I know we were going to call in an attorney. If my Colleagues agree, I thought we could break this into three parts and talk about the findings on the use of funds and then on the underpayment. The last one was roles and responsibilities of managing the communications program. I think ... Council Member Kniss: Just some general comments I want to make at some point. Chair DuBois: We can make general comments and talk about the finding on use of funds. Looks like our Auditor may want to make a comment. Ms. Richardson: A couple of things I wanted to just address in response to the comments that were made. First of all, the audit did not question the value of the Media Center. We did not look at the value of the Media Center, and we did not question their value or the social aspect of the work that they perform. What we did do was question the value of the PEG channels. Based on the research that we found, the research that supports PEG access channels was all done by people in the industry. As an auditor, we try to be as objective as possible. When it's based on the industry promoting itself, it's more difficult to view it as an objective source. When we looked at the Report Attachment B Page 27 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 from the Mackinaw Center, they did rely on other resources. We also spoke to the author of the paper before we determined that it was appropriate to use, and then we corroborated their comments with our own National Citizens Survey, which is a statistically valid survey, that does ask a question about viewership of government access on TV. Based on those, we felt it was a reliable, appropriate source to use. It was an independent source. The fact that it was funded by the Koch brothers, we don't look at that kind of thing. They get funding from a lot of different sources, and that was just irrelevant to us. We also note that we did not say stop funding the Media Center. What we said was stop providing the PEG Fees automatically, determine if there is a bona fide capital need for the funds, and then put the funds into a reserve account either for the City to use—the City has some identified PEG access needs—or allocate those funds based on actual documented expenses. We also suggested an alternative which is to fund the Media Center through an alternate source that would not be restricted funding. We have not recommended just pulling the funds. We've looked at options. I think the City Manager's Office concurs with us that there is a need to review what the options are and make some decisions based on City needs as well as if there is an option for funding the Media Center in an alternate way. One more thing that I wanted to point out is that the audit is really about the need for accountability. We know that the Media Center has had these funds for a long time. The discussion about backing up, going backwards and retroactively applying those funds all the way back to when they purchased the building, that doesn't make sense because the fee restriction was not in place at the time they purchased the building. That is their big Capital Expense. Since then, the expenses have been limited up until recently when they determined it was time to upgrade their studio to High Definition (HD) quality. Based on that, we do not recommend going backwards. We have not recommended pulling the money back. Our recommendations are looking forward. Chair DuBois: If we'd like to make some general comments. Council Member Kniss: I'm (inaudible) whenever you're ready. Chair DuBois: I'm sorry. One second. Molly Stump, City Attorney: Chair DuBois, thank you. City Attorney Molly Stump. I just want to introduce myself, because I'm joining you from the Clerk's table today. We are in this beautiful room without modern telecommunications equipment. We have a challenge because the City's outside counsel, specialist counsel on telecommunications issues, Tillman Lay with the law firm of Spiegel and McDiarmid, is in Washington D.C. He is on this cell phone, which is pointed at a microphone. Hopefully if there are technical legal questions, between Mr. Lay and myself we can assist the Attachment B Page 28 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Committee today. I just did want to introduce myself and Tim. He is on the phone. We await your questions. Thank you. Chair DuBois: Tim, if you can hear me, thank you for joining us. Tillman Lay, Spiegel and McDiarmid: (Inaudible.) Chair DuBois: Go ahead. Council Member Kniss: Let me kind of go backwards on this and maybe start from the top. Harriet, I have no question that you certainly went about this in the way that an auditor would go about doing this. That is clear. Questioning your integrity, certainly not. What I would question, though, is how this community operates and what they believe has value. I've been involved with the Media Center for so long—Elliot, I know you're out there somewhere, if you'll wave—that I couldn't remember when I first began. I have done things like be there—Karen Adams is here—for the nights when we've announced who has won the City Council. I have been there to be interviewed by Henrietta—are you still here, Henrietta, or did you—and by Mike Cobb when he used to be the Mayor. I have been involved at that Center over a very long period of time. I think our job tonight is to find a way to keep this functioning. I'm very troubled by this alternate source of funding. I can't hear the need for that. Maybe my colleagues will. It sounds to me as though this—unless it's broken and needs fixing, which I don't hear, I don't think we need to go forward with our tool kit at this point. I'm just not hearing that. I think there must be other ways for us to go about this that will make sense financially. I was particularly interested in John Kelley's comments, because I know John has been involved in this for such a long period of time. He took it way back. The only person we're missing tonight is—where is Bob Moss? I can't believe he's not here, who is extremely involved with this. I was fascinated. Who is the gentleman who spoke about the capital, the PEG funding solely on capital, what would happen to the Investment Fund? What was your name? I'm so sorry. Mr. Di Battista: Mike Di Battista. I'm the treasurer of the Board. Council Member Kniss: Thank you. I apologize; I didn't remember your name. We don't need to work this all out in public tonight. That's too complicated, I think, to go through each part of this. I think that if we say to both the Auditor tonight and we say to Molly Stump, our legal counsel, there is a way to work this out financially. We would like you to do that before we come back to the full Council. I think that can be done. Harriet, I'm looking at you. Do you believe that can be done or do you not believe that? Attachment B Page 29 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Ms. Richardson: I think there's a legal question here for Molly and Mr. Lay on the phone. The real issue is the Federal Law is what restricts the way the money is spent. The Media Center has not had sufficient capital needs up until this year when they made—last year when they started working on the studio. They had not had sufficient capital needs to offset the amount of revenues they were getting from the PEG fee, which does have a legal restriction. To continue using the PEG fee as a source puts the City at risk. Ultimately it's the City that's liable, not the Media Center, if those funds are misspent. Molly may want to chime in right here. Ms. Stump: Thank you, Auditor Richardson and Council Member Kniss. We do believe—there is a lot of information in the record this evening about various aspects of the legal arguments, but we believe it's clear; our outside counsel concurs. Essentially through all of the detail, we read the Media Center's response as not objecting to the essential conclusion that on a going- forward basis the PEG Access Fees need to be used for Capital Expenditures. There are lots of policy issues to be explored. I think there are lots of avenues by which that could be accomplished. I'd certainly agree with the sentiment that the City Manager and the Staff and the Media Center and the community folks who are involved with this wonderful institution have a lot of work to do to develop a plan to come into consistent compliance with that, if that's what you meant, Council Member Kniss. We do believe that that ... Council Member Kniss: As always, Molly, you've put it very well and beautifully. Even though I can't see your mouth which is a little bit (inaudible). Ms. Stump: It is very odd sitting over here. Council Member Kniss: I'm just watching one part of your face. Ms. Richardson: Can I say one more thing to that? I think the City Manager's Office is also committed. Ed Shikada is here. I believe that they're also committed to resolve the issue. We did have a meeting today to discuss it. David Ramberg is also in the audience where he might want to discuss some of the financial aspect from an ASD perspective. Council Member Kniss: What I'm hearing tonight is this can be resolved. I think that none of us want to look at, at least I don't want to look at this alternate source of funding, which to me would say it comes out of the General Fund or something else like that. It is a puzzle to me that this has gone on— I realize two laws have intervened, but this has gone on for this long without it being questioned by the Federal Government. Am I correct? Are they breathing down our neck? Just yes or no. Attachment B Page 30 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Ms. Richardson: No, but they have not—but typically they would not come in and look at that. It would be up to us. Council Member Kniss: I'm not suggesting we break the law. I'm simply saying I think there's a way that we can work this through. I think that when something has this much value, and you can look at what looks like 40 or 50 people here tonight. I'm not talking about one particular aspect of the Center, but multiple aspects of the Center. I've worked with Leif and his kids with YCS, with—looking around in this room, Judy Gittelsohn who put on her show for a year and a half. This makes a difference. Our job, I think, is to make this continue to operate and to operate, yes, within the letter of the law, but to operate wisely and to operate in such a way that it continues to serve us as a cultural resource in our community and as a terrific place for people to go and learn more about public access and about government. Vice Mayor Scharff: Thank you all for coming today. I don't think there's any question that the Media Center is a community gem. I think that's—it goes without saying. I think everyone of us up here—I'm going to speak for Tom before he speaks—would support the Media Center. I think that's true for all of Council. I don't think any of you should feel that that's not true. However, with that said, I do think—I've talked to Annie out there. I do think there's no question that we can't continue to use PEG fees for noncapital expenses. I think that's fairly clear. I don't think it's a close call. With all respect to my dear esteemed former Mayor colleague, Larry Klein, I actually think if we asked for an FCC opinion, we would probably get an opinion that hurts the Media Center, and we'd be going down a road that makes things worse, not better. I also agree with all the comments that we need to figure out a way to make this work. I think that's where Council Member Kniss was going. I think what would be useful today too is to have the City Manager's Office go look at issues of how do we make this work, how do we come up with a plan that works for all. We want the Media Center to continue. We want them to offer all of the great programming they offer and all of that. However, we can't violate the law. I don't think we can say we're just going to wink, wink and hope that nothing bad comes. I think that's not a good government and not a good approach. I don't think that works. One of the speakers did talk about the City possibly buying the building; I think that's what they meant by that as opposed to going back and looking at old Capital Expenses. I think what they said is why don't we, the Media Center, sell the City the building and you use the PEG Fees to pay for it over time. If I'm misstating that—I see you guys nodding. I think the City Manager's Office and the Auditor should look at that and the City Attorney and say is that a possibility. What I'd like to see happen is the City Manager's Office come back to us—frankly I think before we go to Council, because I don't think it would be useful to go to Council without more information frankly than what we have today, information of what are the options here. The options are obviously we could Attachment B Page 31 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 say we're not going to give the PEG Funds unless they're for Capital Expenses. We could fund with the General Fund. We could maybe do something creative like that. Maybe there are other options. I don't think we could design it from the dais today; I don't think that's what we should do. What I'd like to see is the City Manager's Office come back, working with the audit, with a City Manager’s Report (CMR), saying here are the options. The other thing I do want to say is that I'm not happy with part of what we have which is the quality of the technology in this room. I think the City Attorney said that right there. I think it's obvious. I'm not happy that the fact that we don't use HD when we record the Council meetings and all that, that the technology we have here is poor. I've talked to the Media Center about that. I think they agree with us. I would like to see us invest in that, and I think we should use the PEG fees for that. I personally think it's a waste of time to decide whether or not we should collect the PEG fees. I think we should collect as much of the PEG fees as we could possibly collect because, as far as I can tell, there is a huge unmet need for capital that we need to invest in. We need to use those funds to invest in great capital so we have the most up-to-date technology, and we have the best user experience for the people of Palo Alto. That's the broad things. I also would like, when the City Manager's Office comes back, them to analyze that and say what do we need to have to have the best possible user experience with the highest quality when people watch our City Council meetings, when we record things here and all of that. That's sort of what I'm looking for. I also wanted to say that I appreciate all the volunteer time in the Media Center. I don't think that anyone is saying that anyone at the Media Center did anything wrong or underhanded or anything like that. I think that's really important to say that, because I know you all volunteer. I know sometimes as a Council Member, I've got to say I sort of feel that same way. You volunteer, you stand up. I know you sort of feel a little like wow. I understand that. The Media Center's great. I just think that we need to on an ongoing basis, however, make sure that we do this correctly, so that we don't end up with problems down the road. I think it's important to note that the Media Center is in agreement with that. I don't think it's an issue of whether or not we should go back and say, "Can they use it for these or not?" I think everyone's in agreement including the Media Center that we're not going to use PEG fees for operational expenses. We're going to use them for capital. With that said, then the question is let's move on to make sure that we continue to fund the Media Center in a way and what options we have and how this all works. Council Member Kniss: Could I do a clarification with the Council Member? I think when I—Greg, I think we're concurring with each other. I think one of the things I'm hearing you say is keep it in policy until our policy is clearer than what we are probably able to come up with tonight. Attachment B Page 32 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Vice Mayor Scharff: Let's at least give the Council options as opposed to— let's give (inaudible). Council Member Kniss: I would totally agree with that. I just wanted to make sure I'd heard it correctly. Chair DuBois: If I could just make some general comments. First of all, I see a lot of value in just independent audit process. I want to thank the Auditor for completion of the audit. No one mentioned the finding of underpayment, which is another purpose of the audit, which generates more money for both the Media Center and for the General Fund. We want to make sure that our telecommunications providers are meeting their obligations. To me this kind of boils down to the fourth branch of government, a free press. The DIVCA Act has forced a lot of communities to lose their community access because of this issue of operational costs. We're very lucky here that we have the funds from the Cable Co-Op and some flexibility. To me, this is primarily how do we fix the accounting going forward to be compliant. I agree maybe that the concept of channels may be archaic. As several speakers suggested, we need to separate the creation of content from the distribution mechanisms. I would expect that some of these laws—2006, I think it is, they're going to be updated to deal with new media, media on demand, things like interactive media. I can see storytelling and virtual reality. I don't see capital needs ending anytime soon. I think there's a role for PEG fees. Again, it's just making sure that we're tracking and allocating it correctly. I think as a Council we need to make sure we address our fiduciary responsibility. As Marc Berman said, we can do that in a way that doesn't harm the Media Center but protects the City. I think we have the issue of how do we deal with the past fees. I think we can just largely wait and see if anybody comes calling on those. As Liz and Greg have both said, we need to fix the accounting structure going forward. I do think the proposal that we spend PEG fees to purchase the asset of the building is interesting and would like to explore that option and see if Staff comes up with other options in terms of the use of funds. Those are my comments on the First Finding, on the use of funds. Council Member Kniss: Might we just look at Ed and see? Ed, you've heard what the three of us have said, are you in concurrence with us? Do you have a ... Ed Shikada, Assistant City Manager: Absolutely. On behalf of Staff, we'd be happy to follow up with the Media Center and identify a go-forward plan in order to ensure the various parameters that the Committee has referenced can be reinforced. Certainly to the extent through your discussion tonight, that helps give us some clear focus areas. Hope the Media Center takes that as well in identifying the primary issues of concern and priorities for the City. Attachment B Page 33 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 As we try to identify what those options are coming forward, that we're focused in the most productive areas. Council Member Kniss: If I might. We have many other similar provisions of content and so forth in the Bay Area. We might look at some of the others. You've been in San Jose where they have their own set up. Mountain View has their own station, which I imagine will be televising Marc Berman tonight. We do have some others we can look at and see whether they have run into some similar situations. Mr. Shikada: We do. I'll say in the interest of full disclosure and keeping the options open, I recognize that some of the options could involve the City self- performing in some measure the services for broadcast and the like. If we're looking at options, we would want to look at the most cost-effective options for the City as an institution. I think we'll proceed accordingly. Vice Mayor Scharff: That was my intent, that we'd look at full options, that you'd come back with all the difference options, and then it becomes a policy issue of how we proceed. I also think, in terms of the structure, a lot of people seem to conflate in their mind—I believe we pay separately for the broadcast of the City Council. Ms. Richardson: That's correct. Vice Mayor Scharff: I think what would be great is to have a framework and a CMR so everyone understands—it's clear in everyone's mind what services we pay for, what services the PEG fees go to, so every understands the structure, and then we move forward based on full information of how all this works. Chair DuBois: I'd like to add, though, that when we look at those options, one of the goals is really preserving the Operational Budget for the Media Center and to keep the life as long as possible. Council Member Kniss: I don't want to lose the fact that we value this Media Center so much that our goal is keeping it functional, keeping it relevant, keeping it an exciting place to be. I don't think there's any message at all from this dais tonight saying we wouldn't continue to find that way to fund the Center and for everyone to keep up not only their good work, but apparently their learning. So many of you said tonight you've taken classes or you've learned from someone else, and that has great value. Chair DuBois: Do we want to break this up and have an actual Motion about the use of funds? Attachment B Page 34 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Vice Mayor Scharff: Sure, I'll make the Motion. I'll just make a Motion of what I would like to see, and you can see the same. I would simply like to make a Motion that the City Manager's Office come back to us with options as we discussed today along the lines of what we discussed. I don't need to be more specific; I think they know what (inaudible). Chair DuBois: Do we have a second? Council Member Kniss: You have a second. MOTION: Vice Mayor Scharff moved, seconded by Council Member Kniss that the Policy and Services Committee direct Staff to work with the Mid-Peninsula Media Center and develop options for the Council to consider for a plan going forward that complies with PEG funding restrictions while supporting the Media Center’s public access function, such as: a) A framework for meeting City communications and public access needs; and b) Consider approaches used by other agencies; and c) City purchase the Media Center’s building; and d) Upgrading City Hall broadcast technology. Chair DuBois: All in favor. We've got three out of four. MOTION PASSED: 3-0 Berman absent Chair DuBois: I would like to shift now to maybe findings on underpayment, because I actually had a few questions in that area. I don't know if either of you have comments or questions. Vice Mayor Scharff: On underpayment? Chair DuBois: Yep. Vice Mayor Scharff: Yeah, let's go get the money. I'd like to get that done as quickly as possible. Council Member Kniss: I think that one's pretty simple. That one just says ... Vice Mayor Scharff: Right. I'm all for it. Chair DuBois: If I could ask a couple of questions particularly with our Attorney; hopefully he can hear me. Attachment B Page 35 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Ms. Stump: As it turns out, it is very difficult for him to hear. I know, Chair DuBois, you do have some questions. I got a ... Chair DuBois: I actually had some different questions. Ms. Stump: You do have different questions. I wonder if it would be more efficient, if you can get those to me offline, and I can transmit them to our outside counsel. When the Item comes back, we might be able to have a more thorough conversation and even have outside counsel here in the room where it's easier to communicate. I think it's going to be difficult. I will have to translate your question. Chair DuBois: Okay. I have one question maybe you can answer or Harriet can answer. How does the State DIVCA Law and Federal Cable Act interact with each other? Does one take precedent? Ms. Stump: In general, Federal Law takes precedence over State Law through the supremacy clause of the U.S. Constitution. There are some complex ways that those two laws work together. The State Law references the Federal Law. I suspect that behind your question is a practical, more specific inquiry. Chair DuBois: It was just really understanding which law ruled. Again, there seems to be some discussion nationally about media communications in general and this idea of video versus Broadband Franchise Fees. I did note that Google is registered as a video provider, so we potentially would have a third source of income from Video Franchise Fees and PEG fees. Ms. Stump: These are very cutting-edge questions. I do want to get some specialized advice for you on them. My recommendation, given our challenges today, is that you do what you are so good at which is to write or we can chat, and then we can get answers for you perhaps when the Item comes back to the Committee. Will that be satisfactory? Chair DuBois: Yes. For my Colleagues, it's just really quickly this idea that video services are now being bundled with voice and broadband. There's a lot of ability to shift pricing to minimize these Franchise Fees. I think there's a question, probably at the State level and the national level, should we be looking at overall revenue for media communications and not just video and where the law has changed to do that. We can take that up in the future. I guess there is really no Motion to be made here. I think we're going to pursue that revenue as you outlined, or do we need to make a Motion? Council Member Kniss: You need a Motion to go out and get the money? Attachment B Page 36 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Ms. Richardson: We don't have a Motion yet about the status of the audit. If you're wanting us to come back later before you refer the audit to the full Council, it might be good to have a Motion right now on that aspect of it. Vice Mayor Scharff: Are we going to make the Motion? Chair DuBois: Sure. Vice Mayor Scharff: I'll move that on Finding 2 we move forward to go ahead and collect the money. Chair DuBois: I second that. MOTION: Vice Mayor Scharff moved, seconded by Chair DuBois that the Policy and Services Committee recommend the Council move forward with Finding No. 2 recommendation to direct the City Manager’s Office, in coordination with ASD, IT, and the City Attorney’s Office: a) Send a letter to AT&T and Comcast describing the results of the audit and demanding payment of the underpaid franchise and PEG Fees shown in Exhibit 4, plus interest calculated in accordance with DIVCA requirements; and b) Include in AT&T’s letter a demand for payment of the audit costs that are attributable to AT&T; and c) Work with Comcast and AT&T to develop methods to ensure: i) Their address databases accurately reflect all potential service addresses within the Cable Joint Powers geographic areas; and ii) They have a separate billing code for each member jurisdiction and accurately report and remit payments to the City of Palo Alto based on those billing codes; and iii) Develop criteria for assessing the accuracy of future Comcast and AT&T franchise and PEG Fee payments on an ongoing basis, iv) Communicate the criteria to Comcast and AT&T and that it will be used to review the accuracy of future payments; and v) Require Comcast and AT&T to report the breakdown of their fees in more detail, including identifying what is and is not included in the gross revenues used to calculate the fees and the reason for any exclusions; and Attachment B Page 37 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 vi) Review the franchise and PEG Fee payments to ensure that they were calculated on all revenues that are subject to franchise and PEG Fees and promptly follow up with Comcast and AT&T regarding any discrepancies; and vii) Request that San Mateo and Santa Clara Counties revise their municipal codes to reflect only a single adopted rate to accommodate the cable companies’ billing system capabilities, if the PEG Fee continues to be collected. Council Member Kniss: It'll be hard to vote no on that one. Chair DuBois: All in favor. MOTION PASSED: 3-0 Berman absent Chair DuBois: The third finding is worth a little bit of discussion as well, which is the role of oversight and really the nature of that oversight. Do you have some comments? Ms. Richardson: I think there's going to be some decisions that need to be made about—I think it's going to wrap up really into part of the Finding 1 issue about the policy about what functions the City might perform versus what functions we leave at the Media Center. If there's more of an IT role for what the City might do, then I think those roles need to be defined based on the revenue piece of it, which is more of an ASD function, and then the communications piece which would be more of an IT function. Jasmine might want to speak a little bit to that on the IT piece. Jasmine Frost, Information Technology Chief of Staff: Good evening. Jasmine Frost, IT Chief of Staff. Currently we do fund and manage the coordinator. I defer to whatever the Council wants to say. We'd be happy to take on that responsibility should the Council wish. Mr. Shikada: Just to amplify on that. As Harriet pointed out, the current staffing for the JPA effectively is through the IT Department. Depending on where the primary body of work ends up with respect to the City's role versus the Media Center, we may want to reevaluate how that staffing is handled in addition to the question of the complexity of the financial transactions that might be involved depending on the providers and the follow-up necessary there. Ultimately, this would be a longer-term conversation; it's a question of the role of PEG in general in our digital communications strategy with the community. Clearly that's one that might dovetail in a number of different directions. I think that we'd want to give some thought as to how best to tackle that based upon where we end up on PEG specifically. Attachment B Page 38 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Chair DuBois: Can you just clarify when you guys talk about staffing versus participating on the Board? They seem to be very different. It's not clear to me why that's IT versus communications. Mr. Shikada: It's actually, I suppose, primarily a legacy of the organization and how responsibilities have been handled originally, I understand, through the City Clerk's Office to ASD. When IT was split off from ASD, the contract administration went to IT. Chair DuBois: Are we talking about different functions? Is there a Staff ongoing function that's in IT now? Mr. Shikada: The Staff person who serves on the working group, I guess is the appropriate term, is a contractor through IT. Mr. Richardson: That is a different position than being a Board Member on the Media Center Board. Chair DuBois: I think there's that question of both of those levels of interaction, the City has not been represented on the Board, even though I believe in the Charter we're supposed to have a representative. We may want to fill that position. Ms. Richardson: The delay on that was really trying to identify who should be the right person. Until the roles were clearly defined, it didn't seem appropriate to just draw the City Clerk back into it when the City Clerk isn't actively involved in the process. I think it wraps into part of this decision making about what roles each department plays in the overarching issue of PEG fees, Franchise Fees, provision of services and that sort of thing. Chair DuBois: I'll make one last comment, and then I'd like to hear what you guys think. I think there's two levels here, which is the financial interactions, but I think there's also this role of communications which it might be nice to continue to involve the City Clerk or somebody maybe in the communications area in the City. Vice Mayor Scharff: Again, I'd prefer to see the City Manager's Office come back with options. I don't really see a role for the City Clerk's Office in this. It doesn't seem like the right—I'm not sure what the expertise is in the City Clerks' Office frankly, what role they have and why they should be involved. I'm open to it. If you're worried about communications, I actually wonder why Claudia might not be a better choice frankly. There's all sorts of IT issues in that. I just would want the City Manager's Office to analyze and see who should be the representative. What we're looking for and what the point is, I'd just rather they come back and tell us what they think. Attachment B Page 39 of 39 Policy and Services Committee Special Meeting Transcript 5/10/16 Council Member Kniss: I think this is—we're making it surprisingly complicated. What I'm hoping is, Ed, that you and others can work with this and bring it to the fore in such a way that we can have clarity in how we're working together. I'm sorry that it's been empty now since Donna Grider left, but I wouldn't begin to guess who exactly the right person would be. Vice Mayor Scharff: I think it's Liz Kniss. Council Member Kniss: I had forgotten her. That might be okay. Chair DuBois: I support the idea of Staff coming back. Again, I want to distinguish between a Staff role of tracking the finances versus a community communications and outreach role, which either the City Clerk or our Communications Director—again at the level of discussion about just communications out to the community, it's a different area. I'll make a Motion that we roll that into the First Finding and that Staff come back with some proposals on the roles and responsibilities for oversight. Vice Mayor Scharff: You have a second. MOTION: Chair DuBois moved, seconded by Vice Mayor Scharff that the Policy and Services Committee direct Staff to return to the Committee with clearly defined roles and responsibilities for oversight of tracking funds and communications. Chair DuBois: All in favor. That concludes this Item. Thank you everybody for coming out tonight and speaking. MOTION PASSED: 3-0 Berman absent Attachment B City of Palo Alto (ID # 7227) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Amend and Correct salaries and salary schedules for employee groups & Amend Table of Organization Title: Adoption of a Resolution to Amend and Correct Salary Schedules for: Managers and Professional Employees, Services Employees International Union (SEIU), Service Employees International Union Hourly (SEIU - H), Limited Hourly (HRLY), International Association of Fire Fighters, Local 1319, and Utilities Managers of Palo Alto Professional Association (UMPAPA); and, Approval of Amendments to the Table of Organization in the City Manager's Office General Fund and Utilities Department Enterprise Funds From: City Manager Lead Department: Human Resources Recommended Motion Council moves to adopt the attached resolution (Attachment A) amending the salary schedules for the following employee groups 1) Management and Professional Employees group (“MGMT”); 2) Utilities Managers of Palo Alto Professional Association (“UMPAPA”); and 3) Service Employees International Union (“SEIU”); 4) Service Employees International Union Hourly (“SEIU-H”) and Limited Hourly (“HRLY”); and 5) International Fire Fighter’s Association (“IAFF”) to complete various administrative updates in accordance with contract provisions or compensation plans. In addition, Council moves to amend the Table of Organization by adding a net 1.25 positions in the General Fund in the City Manager’s Office and a net 0.75 positions in the Utilities Enterprise Funds in the Utilities Department. Recommendation Staff recommends that Council 1.Adopt the attached resolution amending salary schedules in the a.Management and Professional employees group (MGMT) to amend the salary range and change the classification title of the Director of Utilities to Assistant City Manager/Utilities General Manager; add the Utilities Chief Operating Officer 8 City of Palo Alto Page 2 classification; and, add the Deputy City Manager classification in the MGMT group; b. Utilities Managers of Palo Alto Professional Association (“UMPAPA”) to correct the salary range for the existing Utility Safety Officer classification in the UMPAPA group; c. Service Employees International Union (“SEIU”) to correct salaries for the existing Restoration – Lead and Senior Mechanic classifications; and add new titles: Utilities System Operator Apprentice, Heavy Equipment Operator/Installer Repairer and Electrical Equipment Technician classifications in SEIU; d. Service Employees International Union Hourly (“SEIU-H”) and Limited Hourly (“HRLY”) to add the Project Construction Inspector – H and Staff Specialist – H in the SEIU-H group; and to correct pay rates for the Police Reserve I and Police Reserve II classifications; and, e. International Fire Fighter’s Association (IAFF) to add the Fire Captain EMT Paramedic Hazmat classification to IAFF. 2. Approve amendment of the Table of Organization by: a. Eliminating 2.0 Assistant City Manager positions and 1.0 Manager Economic Development in the General Fund, in the City Manager’s Office; b. Adding 0.25 Assistant City Manager/Utilities General Manger position in the General Fund, in the City Manager’s Office; c. Adding 2.0 Deputy City Manager and 2.0 Assistant to the City Manager positions in the General Fund, in the City Manager’s Office; and d. Adding 1.0 Utilities Chief Operating Officer and deleting 0.25 Assistant City Manager/Utilities General Manager positions in the Utilities Enterprise Funds, in the Utilities Department. Discussion On October 4, 2016, the City Council approved the appointment of Ed Shikada as Utilities Assistant City Manager/Utilities General Manger; authorized the addition of a Utilities Chief Operating Officer and the restructuring of the City Manager’s Office; and directed the City Manager to return to Council with conforming changes to the Table of Organization. This report brings forward the actions necessary to execute these plans, including amending the salary schedules and the table of organization. In addition, it recommends various administrative clean-up for various employee groups to ensure that the salary schedules are accurate and fully up to date. A. Resolutions Adopting Revised Salary Schedules Under the Public Employees’ Retirement Law (PERL), CalPERS has adopted regulations requiring contracting agencies like the City of Palo Alto to adopt publically available pay schedules. In particular, CalPERS regulations require that a salary schedule must show “the pay rate for each City of Palo Alto Page 3 identified position, which may be stated as a single amount or as multiple amounts within a range.” The City’s historical practice for the M&P and UMPAPA salary schedules has been to list the “midpoint” (control point - UMPAPA) pay rate for each classification in the salary schedule, with the text of the plans or implemented terms providing that the full salary range for those positions was 20% below to 20% above that midpoint rate. For the SEIU, SEIU-H, HRLY and IAFF group has been structure in a 5 step system with 5% spreads between each step. The salary schedules include the following group-specific changes: 1. For Management and Professional, to amend the salary range and edit the classification title of the Director of Utilities to the Assistant City Manager/Utilities General Manger; add the Utilities Chief Operating Officer classification; and, add the Deputy City Manager classification title in the MGMT group. The revised salary schedule will reflect these changes outlined in recent CMR #7362 describing the restructuring plan to the City Manager’s Office. 2. For UMPAPA, correction to the salary range for the Utilities Safety Officer. The salary for this classification was incorrectly stated in the salary schedule included in the UMPAPA Salary Schedule adopted by Council during the FY 2017 annual budget. The revised salary schedule will reflect this correction. 3. For SEIU, correct salaries for the Restoration – Lead and Senior Mechanic in accordance with contract provision in SEIU Memorandum of Agreement, Article VII, Section 6 which states that these positions will be paid 7% above the pay step for the highest paid employee in the crew. In addition, recently, Utilities Electric Operations Management recognized the need for a SEIU Utilities System Operator Apprentice classification due to difficulty in recruiting for this specialized position. Creating an apprentice position will provide ability to grow and train on-the-job and fill this crucial role. In addition, as a result of recent City and Union meet and confer meetings to review updates to two job descriptions, the City is amending the salary rates for the Utilities Heavy Equipment Operator/Installer Repairer and Electrical Equipment Technician classifications. 4. For SEIU-H and HRLY groups, add the Project Construction Inspector – H and Staff Specialist – H in the SEIU-H group, and, correct pay rates for the Police Reserve I and Police Reserve II classifications in the HRLY group. The revised salary schedule will reflect these changes. The updates to these classifications were overlooked when council adopted the SEIU-Hourly unit MOA and the Limited Hourly compensations plan on August 11, 2014 (CMR# 5002). 5. For IAFF, add the Fire Captain EMT Paramedic Hazmat classification. The revised salary schedule will reflect this update. City of Palo Alto Page 4 B. Table of Organization Changes In the General Fund, 2.0 Assistant City Managers and 1.0 Manager Economic Development are recommended to be eliminated from the City Manager’s Office, and 0.25 Assistant City Manager/Utilities General Manager, 2.0 Deputy City Managers, and 2.0 Assistants to the City Manager are recommended to be added to the City Manager’s Office. In the Utilities Department Enterprise Funds, the 1.0 Director Utilities position is recommended to be retitled “Assistant City Manager/Utilities General Manager”, with a reduction from 1.0 FTE to 0.75 FTE in the Utilities Department Enterprise Funds, and the remaining 0.25 FTE shifting to the General Fund in the City Manager’s Office, as discussed above. Additionally, 1.0 Utilities Chief Operating Officer (COO) position is recommended to be added to the Utilities Department Enterprise Funds. Resource Impact A number of the recommended amendments are administrative in nature and are consistent with the Adopted FY2017 Budget and Council policy direction. However, the reorganization of the table of organization implications are outlined below. The proposed restructure in the City Manager’s Office from two Assistant City Managers and one Economic Development Manager to two Deputy City Managers and two Assistant to the City Manager positions will result in a net add of 1.25 FTE and a net total compensation cost of approximately $233,000 on an ongoing basis - for the current Fiscal Year (FY 2017), this amount will be absorbed from vacancy savings. For future fiscal years, the new funding will be included as part of the recommended base budget for Council consideration. In the Utilities department and various enterprise funds, the addition of a Utilities Chief Operating Officer is anticipated to be offset with vacancy savings by holding authorized positions vacant and savings from the reallocation of 25% of the Director of Utilities that is currently budgeted at 100% but will be filled at 75%. A full review of the staffing is anticipated to take place with formal adjustments recommended subsequent to this report and following consultations with labor groups, as required. Environmental Review Adoption of the attached resolution and amendment of the Table of Organization are not projects for the purposes of the California Environmental Quality Act (CEQA) and therefore no environmental review is required. Attachments: Attachment A (PDF) *NOT YET APPROVED* Resolution No. Resolution of the Council of the City of Palo Alto Amending Salary Schedules for the Following Bargaining Units: Management, Professional, and Confidential; Utilities Managers of Palo Alto Professional Association (UMPAPA); Services Employees International Union (SEIU); Service Employees International Union Hourly (SEIU - H); Limited Hourly (HRLY), and International Association of Fire Fighters, Local 1319 (IAFF) The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Salary Schedule attached to the 2016-2019 Compensation Plan for Management, Professional, and Confidential Personnel, as adopted by Resolution No. 9611, is hereby amended as set forth in Exhibit “1”, attached hereto and incorporated herein by reference. SECTION 2. The Salary Schedule for the Utilities Managers of Palo Alto Professional Association, as amended by Resolution Nos. 9527 and 9603, is hereby amended as set forth in Exhibit “2”, attached hereto and incorporated herein by reference. SECTION 3. The Salary Schedule attached to the 2015-2018 Memorandum of Agreement for the Services Employees International Union General Unit, as approved on April 11, 2016 and amended by Resolution Nos. 9567 and 9603, is hereby amended as set forth in Exhibit “3”, attached hereto and incorporated herein by reference. SECTION 4. The Salary Schedule attached to the 2012-2017 Memorandum of Agreement for the Services Employees International Union Hourly Unit, as adopted by Resolution 9450 and amended by Resolution 9568, is hereby amended as set forth in Exhibit “4”, attached hereto and incorporated herein by reference. SECTION 5 The Salary Schedule for the Limited Hourly Unit, as approved on August 11, 2014 and amended by Resolution No. 9568, is hereby amended as set forth in Exhibit “5”, attached hereto and incorporated herein by reference. SECTION 6. The Salary Schedule attached to the 2014-2018 Memorandum of Agreement for the International Association of Fire Fighters, Local 1319, as approved on April 11, 2016 and amended by Resolution No. 9603, is hereby amended as set forth in Exhibit “6”, attached hereto and incorporated herein by reference. // // // 1 *NOT YET APPROVED* SECTION 7. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Administrative Services Director of Human Resources 2 Exhibit 1 City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/1/2016 (2.5% Increase) Effective 7/1/2017 (2.5% Increase) Effective 7/1/2018 (2.5% Increase) Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx. Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate 190 Non-Exempt Accountant 690P $32.89 $41.11 $49.34 $7,125.73 $85,508.80 $33.72 $42.14 $50.57 $34.56 $43.20 $51.84 76 Exempt Administrative Assistant 750P $28.37 $35.46 $42.56 $6,146.40 $73,756.80 $29.08 $36.35 $43.62 $29.81 $37.26 $44.72 115 Exempt Assistant Chief Building Official 405M $46.08 $57.60 $69.12 $9,984.00 $119,808.00 $47.24 $59.04 $70.85 $48.42 $60.52 $72.63 132 Exempt Assistant Chief of Police 100A $75.43 $94.28 $113.14 $16,341.87 $196,102.40 $77.32 $96.64 $115.97 $79.25 $99.06 $118.88 108 Exempt Assistant City Attorney 165A $63.94 $79.92 $95.91 $13,852.80 $166,233.60 $65.54 $81.92 $98.31 $67.18 $83.97 $100.77 109 Exempt Assistant City Clerk 630M $37.21 $46.51 $55.82 $8,061.73 $96,740.80 $38.15 $47.68 $57.22 $39.11 $48.88 $58.66 107 Exempt Assistant City Manager 20E $78.36 $97.94 $117.53 $16,976.27 $203,715.20 $80.32 $100.39 $120.47 $82.32 $102.90 $123.48 TBD Exempt Assistant City Manager / Utilities General Manager 10E $98.47 $123.08 $147.70 $21,333.87 $256,006.40 $100.93 $126.16 $151.40 $103.46 $129.32 $155.19 73 Exempt Assistant Director Administrative Services 120A $64.47 $80.58 $96.70 $13,967.20 $167,606.40 $66.08 $82.60 $99.12 $67.74 $84.67 $101.61 126 Exempt Assistant Director Community Services 150A $61.72 $77.14 $92.57 $13,370.93 $160,451.20 $63.26 $79.07 $94.89 $64.84 $81.05 $97.26 1007 Exempt Assistant Director Human Resources 155A $59.65 $74.56 $89.48 $12,923.73 $155,084.80 $61.15 $76.43 $91.72 $62.68 $78.35 $94.02 2001 Exempt Assistant Director Library Services 160A $59.03 $73.78 $88.54 $12,788.53 $153,462.40 $60.51 $75.63 $90.76 $62.03 $77.53 $93.04 10 Exempt Assistant Director Planning & Community Environment 130A $63.23 $79.03 $94.84 $13,698.53 $164,382.40 $64.81 $81.01 $97.22 $66.44 $83.04 $99.65 143 Exempt Assistant Director Public Works 140A $62.49 $78.11 $93.74 $13,539.07 $162,468.80 $64.06 $80.07 $96.09 $65.67 $82.08 $98.50 168 Exempt Assistant Fleet Manager 585M $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 102 Exempt Assistant Manager WQCP 240D $50.52 $63.14 $75.77 $10,944.27 $131,331.20 $51.78 $64.72 $77.67 $53.08 $66.34 $79.61 30 Exempt Assistant to the City Manager 390M $48.82 $61.02 $73.23 $10,576.80 $126,921.60 $50.04 $62.55 $75.06 $51.30 $64.12 $76.95 118 Exempt Chief Building Official 290M $59.99 $74.98 $89.98 $12,996.53 $155,958.40 $61.49 $76.86 $92.24 $63.04 $78.79 $94.55 2008 Exempt Chief Communications Officer 135A $62.89 $78.61 $94.34 $13,625.73 $163,508.80 $64.47 $80.58 $96.70 $66.08 $82.60 $99.12 112 Exempt Chief Planning Official 220D $53.61 $67.01 $80.42 $11,615.07 $139,380.80 $54.96 $68.69 $82.43 $56.33 $70.41 $84.50 95 Exempt Chief Procurement Officer 235D $50.72 $63.39 $76.07 $10,987.60 $131,851.20 $51.99 $64.98 $77.98 $53.29 $66.61 $79.94 2010 Exempt Chief Sustainability Officer 435M $54.75 $68.43 $82.12 $11,861.20 $142,334.40 $56.12 $70.15 $84.18 $57.53 $71.91 $86.30 82 Exempt Chief Transportation Official 204D $56.40 $70.50 $84.60 $12,220.00 $146,640.00 $57.82 $72.27 $86.73 $59.27 $74.08 $88.90 96 Exempt Claims Investigator 660P $34.56 $43.19 $51.83 $7,486.27 $89,835.20 $35.42 $44.27 $53.13 $36.31 $45.38 $54.46 24 Exempt Communication Specialist 615M $37.43 $46.78 $56.14 $8,108.53 $97,302.40 $38.36 $47.95 $57.54 $39.32 $49.15 $58.98 89 Exempt Contracts Administrator 585P $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 186 Non-Exempt Coordinator Library Circulation 675M $32.95 $41.18 $49.42 $7,137.87 $85,654.40 $33.77 $42.21 $50.66 $34.62 $43.27 $51.93 191 Exempt Deputy Chief/Fire Marshall 125A $63.71 $79.63 $95.56 $13,802.53 $165,630.40 $65.31 $81.63 $97.96 $66.95 $83.68 $100.42 9 Exempt Deputy City Attorney 480P $45.34 $56.67 $68.01 $9,822.80 $117,873.60 $46.48 $58.09 $69.71 $47.64 $59.55 $71.46 71 Exempt Deputy City Clerk 720M $29.80 $37.25 $44.70 $6,456.67 $77,480.00 $30.56 $38.19 $45.83 $31.32 $39.15 $46.98 55 Exempt Deputy City Manager 115A $65.31 $81.63 $97.96 $14,149.20 $169,790.40 $66.95 $83.68 $100.42 $68.63 $85.78 $102.94 195 Exempt Deputy Director Technical Services Division 200D $63.52 $79.39 $95.27 $13,760.93 $165,131.20 $65.11 $81.38 $97.66 $66.74 $83.42 $100.11 20 Exempt Deputy Fire Chief 110A $66.38 $82.97 $99.57 $14,381.47 $172,577.60 $68.04 $85.05 $102.06 $69.75 $87.18 $104.62 81 Exempt Director Administrative Services/Chief Financial Officer 50E $75.11 $93.88 $112.66 $16,272.53 $195,270.40 $76.99 $96.23 $115.48 $78.92 $98.64 $118.37 72 Exempt Director Community Services 45E $75.68 $94.60 $113.52 $16,397.33 $196,768.00 $77.58 $96.97 $116.37 $79.52 $99.40 $119.28 1012 Exempt Director Development Services 145A $66.45 $83.06 $99.68 $14,397.07 $172,764.80 $68.12 $85.14 $102.17 $69.82 $87.27 $104.73 133 Exempt Director Human Resources/Chief People Officer 55E $71.58 $89.47 $107.37 $15,508.13 $186,097.60 $73.37 $91.71 $110.06 $75.21 $94.01 $112.82 128 Exempt Director Information Technology/Chief Information Officer 25E $78.21 $97.76 $117.32 $16,945.07 $203,340.80 $80.17 $100.21 $120.26 $82.18 $102.72 $123.27 131 Exempt Director Libraries 60E $70.84 $88.54 $106.25 $15,346.93 $184,163.20 $72.61 $90.76 $108.92 $74.43 $93.03 $111.64 2005 Exempt Director Office of Emergency Services 215D $55.58 $69.47 $83.37 $12,041.47 $144,497.60 $56.97 $71.21 $85.46 $58.40 $73.00 $87.60 49 Exempt Director Office of Management and Budget 120A $64.47 $80.58 $96.70 $13,967.20 $167,606.40 $66.08 $82.60 $99.12 $67.74 $84.67 $101.61 Page 1 Exhibit 1 Effective 7/1/2016 (2.5% Increase) Effective 7/1/2017 (2.5% Increase) Effective 7/1/2018 (2.5% Increase) Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx. Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate 134 Exempt Director Planning & Community Environment 40E $75.86 $94.82 $113.79 $16,435.47 $197,225.60 $77.76 $97.20 $116.64 $79.71 $99.63 $119.56 135 Exempt Director Public Works/City Engineer 30E $76.84 $96.04 $115.25 $16,646.93 $199,763.20 $78.76 $98.45 $118.14 $80.74 $100.92 $121.11 121 Exempt Director Utilities 10E $98.47 $123.08 $147.70 $21,333.87 $256,006.40 $100.93 $126.16 $151.40 $103.46 $129.32 $155.19 2002 Exempt Division Head Library Services 260D $46.36 $57.95 $69.54 $10,044.67 $120,536.00 $47.52 $59.40 $71.28 $48.72 $60.89 $73.07 172 Exempt Division Manager Open Space, Parks & Golf 245D $49.84 $62.29 $74.75 $10,796.93 $129,563.20 $51.08 $63.85 $76.62 $52.36 $65.45 $78.54 1005 Exempt Executive Assistant to the City Manager 705M $32.09 $40.11 $48.14 $6,952.40 $83,428.80 $32.90 $41.12 $49.35 $33.72 $42.15 $50.58 139 Exempt Fire Chief 35E $76.41 $95.51 $114.62 $16,555.07 $198,660.80 $78.32 $97.90 $117.48 $80.28 $100.35 $120.42 163 Exempt Hearing Officer 480M $45.34 $56.67 $68.01 $9,822.80 $117,873.60 $46.48 $58.09 $69.71 $47.64 $59.55 $71.46 101 Exempt Human Resources Representative 735P $29.08 $36.34 $43.61 $6,298.93 $75,587.20 $29.80 $37.25 $44.70 $30.56 $38.19 $45.83 90 Exempt Landscape Architect Park Planner 510M $43.16 $53.94 $64.73 $9,349.60 $112,195.20 $44.24 $55.29 $66.35 $45.35 $56.68 $68.02 2015 Exempt Legal Fellow 755P $37.11 $46.38 $55.66 $8,039.20 $96,470.40 $38.04 $47.54 $57.05 $38.99 $48.73 $58.48 171 Exempt Management Analyst 585M $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 79 Exempt Manager Accounting 235D $50.72 $63.39 $76.07 $10,987.60 $131,851.20 $51.99 $64.98 $77.98 $53.29 $66.61 $79.94 2007 Exempt Manager Airport 210D $55.59 $69.48 $83.38 $12,043.20 $144,518.40 $56.98 $71.22 $85.47 $58.41 $73.01 $87.62 2023 Exempt Manager Budget 360M $53.84 $67.29 $80.75 $11,663.60 $139,963.20 $55.19 $68.98 $82.78 $56.57 $70.71 $84.86 38 Exempt Manager Communications 525M $42.11 $52.63 $63.16 $9,122.53 $109,470.40 $43.16 $53.95 $64.74 $44.24 $55.30 $66.36 154 Exempt Manager Community Services 630M $37.21 $46.51 $55.82 $8,061.73 $96,740.80 $38.15 $47.68 $57.22 $39.11 $48.88 $58.66 169 Exempt Manager Community Services Sr Program 585M $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 1013 Exempt Manager Development Center 495M $44.24 $55.29 $66.35 $9,583.60 $115,003.20 $45.35 $56.68 $68.02 $46.48 $58.10 $69.72 63 Exempt Manager Economic Development 220D $53.61 $67.01 $80.42 $11,615.07 $139,380.80 $54.96 $68.69 $82.43 $56.33 $70.41 $84.50 44 Exempt Manager Employee Benefits 450M $45.81 $57.26 $68.72 $9,925.07 $119,100.80 $46.96 $58.70 $70.44 $48.14 $60.17 $72.21 45 Exempt Manager Employee Relations & Training 235D $50.72 $63.39 $76.07 $10,987.60 $131,851.20 $51.99 $64.98 $77.98 $53.29 $66.61 $79.94 93 Exempt Manager Environmental Control Program 419M $46.91 $58.63 $70.36 $10,162.53 $121,950.40 $48.08 $60.10 $72.12 $49.29 $61.61 $73.94 1116 Exempt Manager Facilities 445M $46.50 $58.12 $69.75 $10,074.13 $120,889.60 $47.67 $59.58 $71.50 $48.86 $61.07 $73.29 127 Exempt Manager Fleet 255D $46.97 $58.71 $70.46 $10,176.40 $122,116.80 $48.15 $60.18 $72.22 $49.36 $61.69 $74.03 2018 Exempt Manager Human Services 540M $41.08 $51.35 $61.62 $8,900.67 $106,808.00 $42.12 $52.64 $63.17 $43.17 $53.96 $64.76 32 Exempt Manager Information Technology 230D $51.85 $64.81 $77.78 $11,233.73 $134,804.80 $53.16 $66.44 $79.73 $54.49 $68.11 $81.74 2006 Exempt Manager Information Technology Security 420M $47.01 $58.76 $70.52 $10,185.07 $122,220.80 $48.19 $60.23 $72.28 $49.40 $61.74 $74.09 158 Exempt Manager Laboratory Services 495M $44.24 $55.29 $66.35 $9,583.60 $115,003.20 $45.35 $56.68 $68.02 $46.48 $58.10 $69.72 78 Exempt Manager Library Services 565M $38.61 $48.26 $57.92 $8,365.07 $100,380.80 $39.58 $49.47 $59.37 $40.57 $50.71 $60.86 92 Exempt Manager Maintenance Operations 469M $43.33 $54.16 $65.00 $9,387.73 $112,652.80 $44.42 $55.52 $66.63 $45.53 $56.91 $68.30 26 Exempt Manager Transportation Planning 345M $50.71 $63.38 $76.06 $10,985.87 $131,830.40 $51.98 $64.97 $77.97 $53.28 $66.60 $79.92 51 Exempt Manager Planning 415M $46.96 $58.70 $70.44 $10,174.67 $122,096.00 $48.14 $60.17 $72.21 $49.35 $61.68 $74.02 103 Exempt Manager Real Property 235D $50.72 $63.39 $76.07 $10,987.60 $131,851.20 $51.99 $64.98 $77.98 $53.29 $66.61 $79.94 2011 Exempt Manager Revenue Collections 250D $47.64 $59.55 $71.46 $10,322.00 $123,864.00 $48.84 $61.04 $73.25 $50.06 $62.57 $75.09 160 Exempt Manager Solid Waste 330M $51.30 $64.12 $76.95 $11,114.13 $133,369.60 $52.59 $65.73 $78.88 $53.91 $67.38 $80.86 57 Exempt Manager Treasury, Debt & Investments 235D $50.72 $63.39 $76.07 $10,987.60 $131,851.20 $51.99 $64.98 $77.98 $53.29 $66.61 $79.94 86 Exempt Manager Urban Forestry 436M $45.50 $56.87 $68.25 $9,857.47 $118,289.60 $46.64 $58.30 $69.96 $47.81 $59.76 $71.72 178 Exempt Manager Water Quality Control Plant 205D $57.08 $71.34 $85.61 $12,365.60 $148,387.20 $58.51 $73.13 $87.76 $59.97 $74.96 $89.96 39 Exempt Manager Watershed Protection 330M $51.30 $64.12 $76.95 $11,114.13 $133,369.60 $52.59 $65.73 $78.88 $53.91 $67.38 $80.86 1008 Exempt Office of Emergency Services Coordinator 525M $42.11 $52.63 $63.16 $9,122.53 $109,470.40 $43.16 $53.95 $64.74 $44.24 $55.30 $66.36 2024 Exempt Performance Auditor I 750P $28.37 $35.46 $42.56 $6,146.40 $73,756.80 $29.08 $36.35 $43.62 $29.81 $37.26 $44.72 100 Exempt Performance Auditor II 585M $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 148 Exempt Police Chief 15E $84.96 $106.19 $127.43 $18,406.27 $220,875.20 $87.08 $108.85 $130.62 $89.27 $111.58 $133.90 Page 2 Exhibit 1 Effective 7/1/2016 (2.5% Increase) Effective 7/1/2017 (2.5% Increase) Effective 7/1/2018 (2.5% Increase) Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx. Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate 2021 Exempt Principal Attorney 101A $77.36 $96.70 $116.04 $16,761.33 $201,136.00 $79.30 $99.12 $118.95 $81.28 $101.60 $121.92 2016 Exempt Principal Business Analyst 310M $54.06 $67.57 $81.09 $11,712.13 $140,545.60 $55.41 $69.26 $83.12 $56.80 $71.00 $85.20 2003 Exempt Principal Management Analyst 360M $53.84 $67.29 $80.75 $11,663.60 $139,963.20 $55.19 $68.98 $82.78 $56.57 $70.71 $84.86 2009 Exempt Project Manager 570M $39.36 $49.20 $59.04 $8,528.00 $102,336.00 $40.35 $50.43 $60.52 $41.36 $51.70 $62.04 2012 Exempt Public Safety Communications Manager 540M $41.08 $51.35 $61.62 $8,900.67 $106,808.00 $42.12 $52.64 $63.17 $43.17 $53.96 $64.76 166 Exempt Public Safety Program Manager 585M $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 117 Exempt Senior Accountant 555M $40.08 $50.10 $60.12 $8,684.00 $104,208.00 $41.09 $51.36 $61.64 $42.12 $52.65 $63.18 152 Exempt Senior Assistant City Attorney 105A $70.33 $87.91 $105.50 $15,237.73 $182,852.80 $72.09 $90.11 $108.14 $73.90 $92.37 $110.85 2013 Exempt Senior Business Analyst - M 420M $47.01 $58.76 $70.52 $10,185.07 $122,220.80 $48.19 $60.23 $72.28 $49.40 $61.74 $74.09 11 Exempt Senior Deputy City Attorney 375M $50.04 $62.55 $75.06 $10,842.00 $130,104.00 $51.30 $64.12 $76.95 $52.59 $65.73 $78.88 187 Exempt Senior Engineer 300M $53.90 $67.37 $80.85 $11,677.47 $140,129.60 $55.25 $69.06 $82.88 $56.64 $70.79 $84.95 106 Exempt Senior Executive Assistant 450M $45.81 $57.26 $68.72 $9,925.07 $119,100.80 $46.96 $58.70 $70.44 $48.14 $60.17 $72.21 157 Exempt Senior Human Resources Administrator 545M $39.93 $49.91 $59.90 $8,651.07 $103,812.80 $40.93 $51.16 $61.40 $41.96 $52.44 $62.93 14 Exempt Senior Management Analyst 465M $45.77 $57.21 $68.66 $9,916.40 $118,996.80 $46.92 $58.65 $70.38 $48.10 $60.12 $72.15 130 Exempt Senior Performance Auditor 510M $43.16 $53.94 $64.73 $9,349.60 $112,195.20 $44.24 $55.29 $66.35 $45.35 $56.68 $68.02 53 Exempt Senior Project Manager 300M $53.90 $67.37 $80.85 $11,677.47 $140,129.60 $55.25 $69.06 $82.88 $56.64 $70.79 $84.95 33 Exempt Senior Technologist 420M $47.01 $58.76 $70.52 $10,185.07 $122,220.80 $48.19 $60.23 $72.28 $49.40 $61.74 $74.09 155 Exempt Superintendent Animal Services 540M $41.08 $51.35 $61.62 $8,900.67 $106,808.00 $42.12 $52.64 $63.17 $43.17 $53.96 $64.76 83 Exempt Superintendent Community Services 480M $45.34 $56.67 $68.01 $9,822.80 $117,873.60 $46.48 $58.09 $69.71 $47.64 $59.55 $71.46 1117 Exempt Superintendent Recreation 480M $45.34 $56.67 $68.01 $9,822.80 $117,873.60 $46.48 $58.09 $69.71 $47.64 $59.55 $71.46 2022 Exempt Supervising Librarian 675M $33.07 $41.33 $49.60 $7,163.87 $85,966.40 $33.90 $42.37 $50.85 $34.75 $43.43 $52.12 161 Exempt Supervisor Facilities Management 600M $38.24 $47.79 $57.35 $8,283.60 $99,403.20 $39.20 $48.99 $58.79 $40.18 $50.22 $60.27 113 Exempt Supervisor Inspection and Surveying 540M $41.08 $51.35 $61.62 $8,900.67 $106,808.00 $42.12 $52.64 $63.17 $43.17 $53.96 $64.76 146 Exempt Supervisor Warehouse 660M $34.56 $43.19 $51.83 $7,486.27 $89,835.20 $35.42 $44.27 $53.13 $36.31 $45.38 $54.46 181 Exempt Supervisor Water Quality Control Operations 525M $42.11 $52.63 $63.16 $9,122.53 $109,470.40 $43.16 $53.95 $64.74 $44.24 $55.30 $66.36 TBD Exempt Utilities Chief Operating Officer 60E $70.84 $88.54 $106.25 $15,346.93 $184,163.20 $72.61 $90.76 $108.92 $74.43 $93.03 $111.64 184 Exempt Veterinarian 555M $40.08 $50.10 $60.12 $8,684.00 $104,208.00 $41.09 $51.36 $61.64 $42.12 $52.65 $63.18 Confidential Classifications Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx. Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate 905 Non-Exempt Human Resources Technician 830C $25.08 $31.34 $37.61 $5,432.27 $65,187.20 $25.71 $32.13 $38.56 $26.36 $32.94 $39.53 903 Non-Exempt Legal Secretary-Confidential 820C $25.70 $32.12 $38.55 $5,567.47 $66,809.60 $26.35 $32.93 $39.52 $27.01 $33.76 $40.52 67 Exempt Secretary to City Attorney 800C $30.55 $38.18 $45.82 $6,617.87 $79,414.40 $31.32 $39.14 $46.97 $32.10 $40.12 $48.15 1004 Non-Exempt Senior Legal Secretary - Confidential 810C $28.37 $35.46 $42.56 $6,146.40 $73,756.80 $29.08 $36.35 $43.62 $29.81 $37.26 $44.72 Page 3 Exhibit 2 Effective 11/30/2013 ** Updated 05/31/2016** Job Code Classifications Grade Codes Min Hourly Rate Mid Point Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Annual Salary 2076 Administrative Assistant - U 700 $30.08 $37.59 $45.11 $6,516 $78,187 1002 Assistant Director Utilities - Customer Support 230 $63.42 $79.27 $95.13 $13,740 $164,882 1003 Assistant Director Utilities - Engineering 190 $70.46 $88.07 $105.69 $15,265 $183,186 6 Assistant Director Utilities - Operations 210 $70.46 $88.07 $105.69 $15,265 $183,186 65 Assistant Director Utilities - Resource Management 190 $70.46 $88.07 $105.69 $15,265 $183,186 84 Division Manager/Manager of Communications 380 $45.72 $57.14 $68.57 $9,904 $118,851 129 Engineering Manager, Electric 231 $60.48 $75.59 $90.71 $13,102 $157,227 120 Engineering Manager, Water, Gas & Wastewater 231 $60.48 $75.59 $90.71 $13,102 $157,227 179 Manager, Customer Service and Meter Reading 300 $48.56 $60.70 $72.84 $10,521 $126,256 185 Manager, Electric Operations 270 $59.22 $74.02 $88.83 $12,830 $153,962 1114 Manager, Utilities Credit & Collection 300 $48.56 $60.70 $72.84 $10,521 $126,256 150 Manager, Utilities Program Services 300 $48.56 $60.70 $72.84 $10,521 $126,256 156 Manager, Utilities Operations WGW 290 $59.14 $73.92 $88.71 $12,813 $153,754 48 Manager, Utilities Telecommunications 250 $53.47 $66.83 $80.20 $11,584 $139,006 13 Senior Business Analyst 340 $43.86 $54.82 $65.79 $9,502 $114,026 188 Senior Electrical Engineer 291 $55.33 $69.16 $83.00 $11,988 $143,853 2187 Senior Engineer - U 710 $52.64 $65.79 $78.95 $11,404 $136,843 64 Sr. Resource Planner 271 $54.02 $67.52 $81.03 $11,703 $140,442 27 Supervising Electrical Project Engineer 341 $51.42 $64.27 $77.13 $11,140 $133,682 28 Supervising Project Engineer 360 $47.75 $59.68 $71.62 $10,345 $124,134 1115 Supervisor, Inspection Services 390 $36.72 $45.89 $55.07 $7,955 $95,465 1011 Utilities Compliance Manager 290 $59.14 $73.92 $88.71 $12,813 $153,754 114 Utilities Supervisor 680 $51.32 $64.14 $76.97 $11,118 $133,411 2020 Principal Business Analyst - U TBD $46.93 $58.66 $70.40 $10,168 $122,013 2017 Utility Safety Officer TBD $38.72 $48.40 $58.08 $8,389 $100,672 2025 Manager Utilities Strategic Business 321 $60.48 $75.59 $90.71 $13,102 $157,227 UMPAPA Salary Schedule Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 206 non-exempt Account Assistant 1 $20.92 $21.56 $21.56 $22.21 2 $22.02 $22.69 $22.69 $23.38 3 $23.18 $23.88 $23.88 $24.61 4 $24.40 $25.14 $25.14 $25.90 5 $25.68 $4,451.20 $53,414.40 $26.46 $4,586.40 $55,036.80 $26.46 $4,586.40 $55,036.80 $27.26 $4,725.07 $56,700.80 204 non-exempt Acct Spec 1 $24.44 $25.18 $25.18 $25.94 2 $25.73 $26.51 $26.51 $27.31 3 $27.08 $27.90 $27.90 $28.75 4 $28.51 $29.37 $29.37 $30.26 5 $30.01 $5,201.73 $62,420.80 $30.92 $5,359.47 $64,313.60 $30.92 $5,359.47 $64,313.60 $31.85 $5,520.67 $66,248.00 207 non-exempt Acct Spec-Lead 1 $26.15 $26.96 $26.96 $27.77 2 $27.53 $28.38 $28.38 $29.23 3 $28.98 $29.87 $29.87 $30.77 4 $30.51 $31.44 $31.44 $32.39 5 $32.12 $5,567.47 $66,809.60 $33.09 $5,735.60 $68,827.20 $33.09 $5,735.60 $68,827.20 $34.09 $5,908.93 $70,907.20 294 non-exempt Administrative Associate I 1 $24.05 $24.81 $24.84 $25.60 2 $25.32 $26.12 $26.15 $26.95 3 $26.65 $27.49 $27.53 $28.37 4 $28.05 $28.94 $28.98 $29.86 5 $29.53 $5,118.53 $61,422.40 $30.46 $5,279.73 $63,356.80 $30.51 $5,288.40 $63,460.80 $31.43 $5,447.87 $65,374.40 295 non-exempt Administrative Associate II 1 $26.14 $26.97 $27.00 $27.82 2 $27.52 $28.39 $28.42 $29.28 3 $28.97 $29.88 $29.92 $30.82 4 $30.49 $31.45 $31.49 $32.44 5 $32.09 $5,562.27 $66,747.20 $33.10 $5,737.33 $68,848.00 $33.15 $5,746.00 $68,952.00 $34.15 $5,919.33 $71,032.00 296 non-exempt Administrative Associate III 1 $28.03 $28.90 $28.94 $29.81 2 $29.50 $30.42 $30.46 $31.38 3 $31.05 $32.02 $32.06 $33.03 4 $32.68 $33.71 $33.75 $34.77 5 $34.40 $5,962.67 $71,552.00 $35.48 $6,149.87 $73,798.40 $35.53 $6,158.53 $73,902.40 $36.60 $6,344.00 $76,128.00 277 non-exempt Animal Attendant 1 $23.02 $23.78 $23.86 $24.58 2 $24.23 $25.03 $25.12 $25.87 3 $25.51 $26.35 $26.44 $27.23 4 $26.85 $27.74 $27.83 $28.66 5 $28.26 $4,898.40 $58,780.80 $29.20 $5,061.33 $60,736.00 $29.29 $5,076.93 $60,923.20 $30.17 $5,229.47 $62,753.60 276 non-exempt Animal Control Off 1 $24.66 $25.48 $25.56 $26.32 2 $25.96 $26.82 $26.90 $27.71 3 $27.33 $28.23 $28.32 $29.17 4 $28.77 $29.72 $29.81 $30.71 5 $30.28 $5,248.53 $62,982.40 $31.28 $5,421.87 $65,062.40 $31.38 $5,439.20 $65,270.40 $32.33 $5,603.87 $67,246.40 312 non-exempt Animal Control Off - L 1 $26.39 $27.27 $27.35 $28.18 2 $27.78 $28.70 $28.79 $29.66 3 $29.24 $30.21 $30.31 $31.22 4 $30.78 $31.80 $31.90 $32.86 5 $32.40 $5,616.00 $67,392.00 $33.47 $5,801.47 $69,617.60 $33.58 $5,820.53 $69,846.40 $34.59 $5,995.60 $71,947.20 263 non-exempt Animal Services Spec 1 $24.32 $25.13 $25.20 $25.97 2 $25.60 $26.45 $26.53 $27.34 3 $26.95 $27.84 $27.93 $28.78 4 $28.37 $29.31 $29.40 $30.29 5 $29.86 $5,175.73 $62,108.80 $30.85 $5,347.33 $64,168.00 $30.95 $5,364.67 $64,376.00 $31.88 $5,525.87 $66,310.40 1 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 275 non-exempt Animal Services Spec II 1 $26.82 $27.71 $27.80 $28.63 2 $28.23 $29.17 $29.26 $30.14 3 $29.72 $30.70 $30.80 $31.73 4 $31.28 $32.32 $32.42 $33.40 5 $32.93 $5,707.87 $68,494.40 $34.02 $5,896.80 $70,761.60 $34.13 $5,915.87 $70,990.40 $35.16 $6,094.40 $73,132.80 244 non-exempt Assoc Buyer 1 $31.32 $32.28 $32.30 $33.27 2 $32.97 $33.98 $34.00 $35.02 3 $34.71 $35.77 $35.79 $36.86 4 $36.54 $37.65 $37.67 $38.80 5 $38.46 $6,666.40 $79,996.80 $39.63 $6,869.20 $82,430.40 $39.65 $6,872.67 $82,472.00 $40.84 $7,078.93 $84,947.20 333 non-exempt Assoc Engineer 1 $38.75 $40.10 $40.29 $41.50 2 $40.79 $42.21 $42.41 $43.68 3 $42.94 $44.43 $44.64 $45.98 4 $45.20 $46.77 $46.99 $48.40 5 $47.58 $8,247.20 $98,966.40 $49.23 $8,533.20 $102,398.40 $49.46 $8,573.07 $102,876.80 $50.95 $8,831.33 $105,976.00 353 non-exempt Assoc Planner 1 $35.94 $37.28 $37.55 $38.68 2 $37.83 $39.24 $39.53 $40.72 3 $39.82 $41.31 $41.61 $42.86 4 $41.92 $43.48 $43.80 $45.12 5 $44.13 $7,649.20 $91,790.40 $45.77 $7,933.47 $95,201.60 $46.10 $7,990.67 $95,888.00 $47.49 $8,231.60 $98,779.20 247 non-exempt Assoc Power Engr 1 $41.25 $42.69 $42.89 $44.18 2 $43.42 $44.94 $45.15 $46.50 3 $45.71 $47.30 $47.53 $48.95 4 $48.12 $49.79 $50.03 $51.53 5 $50.65 $8,779.33 $105,352.00 $52.41 $9,084.40 $109,012.80 $52.66 $9,127.73 $109,532.80 $54.24 $9,401.60 $112,819.20 269 non-exempt Assoc Res Planner 1 $39.78 $40.97 $40.97 $42.20 2 $41.87 $43.13 $43.13 $44.42 3 $44.07 $45.40 $45.40 $46.76 4 $46.39 $47.79 $47.79 $49.22 5 $48.83 $8,463.87 $101,566.40 $50.30 $8,718.67 $104,624.00 $50.30 $8,718.67 $104,624.00 $51.81 $8,980.40 $107,764.80 330 non-exempt Asst Engineer 1 $35.10 $36.32 $36.49 $37.59 2 $36.95 $38.23 $38.41 $39.57 3 $38.89 $40.24 $40.43 $41.65 4 $40.94 $42.36 $42.56 $43.84 5 $43.09 $7,468.93 $89,627.20 $44.59 $7,728.93 $92,747.20 $44.80 $7,765.33 $93,184.00 $46.15 $7,999.33 $95,992.00 256 non-exempt Asst Power Engr 1 $37.25 $38.54 $38.72 $39.89 2 $39.21 $40.57 $40.76 $41.99 3 $41.27 $42.70 $42.91 $44.20 4 $43.44 $44.95 $45.17 $46.53 5 $45.73 $7,926.53 $95,118.40 $47.32 $8,202.13 $98,425.60 $47.55 $8,242.00 $98,904.00 $48.98 $8,489.87 $101,878.40 268 non-exempt Asst Res Planner 1 $35.91 $36.98 $36.98 $38.10 2 $37.80 $38.93 $38.93 $40.11 3 $39.79 $40.98 $40.98 $42.22 4 $41.88 $43.14 $43.14 $44.44 5 $44.08 $7,640.53 $91,686.40 $45.41 $7,871.07 $94,452.80 $45.41 $7,871.07 $94,452.80 $46.78 $8,108.53 $97,302.40 299 non-exempt Bldg Inspector 1 $35.69 $37.33 $37.91 $39.05 2 $37.57 $39.29 $39.91 $41.11 3 $39.55 $41.36 $42.01 $43.27 4 $41.63 $43.54 $44.22 $45.55 5 $43.82 $7,595.47 $91,145.60 $45.83 $7,943.87 $95,326.40 $46.55 $8,068.67 $96,824.00 $47.95 $8,311.33 $99,736.00 2 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 300 non-exempt Bldg Inspector Spec 1 $38.10 $39.84 $40.48 $41.70 2 $40.11 $41.94 $42.61 $43.89 3 $42.22 $44.15 $44.85 $46.20 4 $44.44 $46.47 $47.21 $48.63 5 $46.78 $8,108.53 $97,302.40 $48.92 $8,479.47 $101,753.60 $49.69 $8,612.93 $103,355.20 $51.19 $8,872.93 $106,475.20 370 non-exempt Bldg Serviceperson 1 $21.10 $21.98 $22.24 $22.90 2 $22.21 $23.14 $23.41 $24.10 3 $23.38 $24.36 $24.64 $25.37 4 $24.61 $25.64 $25.94 $26.71 5 $25.91 $4,491.07 $53,892.80 $26.99 $4,678.27 $56,139.20 $27.30 $4,732.00 $56,784.00 $28.12 $4,874.13 $58,489.60 371 non-exempt Bldg Serviceperson-L 1 $22.59 $23.54 $23.80 $24.52 2 $23.78 $24.78 $25.05 $25.81 3 $25.03 $26.08 $26.37 $27.17 4 $26.35 $27.45 $27.76 $28.60 5 $27.74 $4,808.27 $57,699.20 $28.89 $5,007.60 $60,091.20 $29.22 $5,064.80 $60,777.60 $30.10 $5,217.33 $62,608.00 355 non-exempt Bldg/Plg Technician 1 $29.16 $30.24 $30.45 $31.37 2 $30.69 $31.83 $32.05 $33.02 3 $32.31 $33.51 $33.74 $34.76 4 $34.01 $35.27 $35.52 $36.59 5 $35.80 $6,205.33 $74,464.00 $37.13 $6,435.87 $77,230.40 $37.39 $6,480.93 $77,771.20 $38.52 $6,676.80 $80,121.60 340 non-exempt Business Analyst 1 $48.82 $51.62 $53.04 $54.63 2 $51.39 $54.34 $55.83 $57.51 3 $54.09 $57.20 $58.77 $60.54 4 $56.94 $60.21 $61.86 $63.73 5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40 3400 non-exempt Business Analyst - S 1 $48.82 $51.62 $53.04 $54.63 2 $51.39 $54.34 $55.83 $57.51 3 $54.09 $57.20 $58.77 $60.54 4 $56.94 $60.21 $61.86 $63.73 5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40 212 non-exempt Buyer 1 $34.49 $35.54 $35.56 $36.61 2 $36.30 $37.41 $37.43 $38.54 3 $38.21 $39.38 $39.40 $40.57 4 $40.22 $41.45 $41.47 $42.71 5 $42.34 $7,338.93 $88,067.20 $43.63 $7,562.53 $90,750.40 $43.65 $7,566.00 $90,792.00 $44.96 $7,793.07 $93,516.80 464 non-exempt Cathodic Protection Tech Assistant 1 $33.56 $35.49 $36.47 $37.57 2 $35.33 $37.36 $38.39 $39.55 3 $37.19 $39.33 $40.41 $41.63 4 $39.15 $41.40 $42.54 $43.82 5 $41.21 $7,143.07 $85,716.80 $43.58 $7,553.87 $90,646.40 $44.78 $7,761.87 $93,142.40 $46.13 $7,995.87 $95,950.40 536 non-exempt Cathodic Tech 1 $41.21 $43.59 $44.77 $46.12 2 $43.38 $45.88 $47.13 $48.55 3 $45.66 $48.29 $49.61 $51.10 4 $48.06 $50.83 $52.22 $53.79 5 $50.59 $8,768.93 $105,227.20 $53.50 $9,273.33 $111,280.00 $54.97 $9,528.13 $114,337.60 $56.62 $9,814.13 $117,769.60 208 non-exempt CDBG Coordinator 1 $38.43 $39.85 $40.15 $41.34 2 $40.45 $41.95 $42.26 $43.52 3 $42.58 $44.16 $44.48 $45.81 4 $44.82 $46.48 $46.82 $48.22 5 $47.18 $8,177.87 $98,134.40 $48.93 $8,481.20 $101,774.40 $49.28 $8,541.87 $102,502.40 $50.76 $8,798.40 $105,580.80 3 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 408 non-exempt Cement Finisher 1 $30.11 $31.85 $32.75 $33.73 2 $31.69 $33.53 $34.47 $35.50 3 $33.36 $35.29 $36.28 $37.37 4 $35.12 $37.15 $38.19 $39.34 5 $36.97 $6,408.13 $76,897.60 $39.11 $6,779.07 $81,348.80 $40.20 $6,968.00 $83,616.00 $41.41 $7,177.73 $86,132.80 409 non-exempt Cement Finisher Lead 1 $32.21 $34.08 $35.03 $36.08 2 $33.91 $35.87 $36.87 $37.98 3 $35.69 $37.76 $38.81 $39.98 4 $37.57 $39.75 $40.85 $42.08 5 $39.55 $6,855.33 $82,264.00 $41.84 $7,252.27 $87,027.20 $43.00 $7,453.33 $89,440.00 $44.29 $7,676.93 $92,123.20 502 non-exempt Chemist 1 $35.11 $36.20 $36.21 $37.30 2 $36.96 $38.10 $38.12 $39.26 3 $38.90 $40.10 $40.13 $41.33 4 $40.95 $42.21 $42.24 $43.51 5 $43.10 $7,470.67 $89,648.00 $44.43 $7,701.20 $92,414.40 $44.46 $7,706.40 $92,476.80 $45.80 $7,938.67 $95,264.00 239 non-exempt Chf Inspec WGW 1 $38.18 $39.94 $40.56 $41.79 2 $40.19 $42.04 $42.69 $43.99 3 $42.31 $44.25 $44.94 $46.30 4 $44.54 $46.58 $47.31 $48.74 5 $46.88 $8,125.87 $97,510.40 $49.03 $8,498.53 $101,982.40 $49.80 $8,632.00 $103,584.00 $51.30 $8,892.00 $106,704.00 301 non-exempt Code Enforcement Off 1 $34.29 $35.85 $36.41 $37.52 2 $36.09 $37.74 $38.33 $39.49 3 $37.99 $39.73 $40.35 $41.57 4 $39.99 $41.82 $42.47 $43.76 5 $42.09 $7,295.60 $87,547.20 $44.02 $7,630.13 $91,561.60 $44.71 $7,749.73 $92,996.80 $46.06 $7,983.73 $95,804.80 560 non-exempt Code Enforcement Off - L 1 $36.68 $38.36 $38.96 $40.14 2 $38.61 $40.38 $41.01 $42.25 3 $40.64 $42.50 $43.17 $44.47 4 $42.78 $44.74 $45.44 $46.81 5 $45.03 $7,805.20 $93,662.40 $47.09 $8,162.27 $97,947.20 $47.83 $8,290.53 $99,486.40 $49.27 $8,540.13 $102,481.60 306 non-exempt Comm Tech 1 $35.92 $36.99 $36.99 $38.11 2 $37.81 $38.94 $38.94 $40.12 3 $39.80 $40.99 $40.99 $42.23 4 $41.89 $43.15 $43.15 $44.45 5 $44.09 $7,642.27 $91,707.20 $45.42 $7,872.80 $94,473.60 $45.42 $7,872.80 $94,473.60 $46.79 $8,110.27 $97,323.20 702 non-exempt Community Serv Offcr 1 $26.09 $27.33 $27.82 $28.65 2 $27.46 $28.77 $29.28 $30.16 3 $28.90 $30.28 $30.82 $31.75 4 $30.42 $31.87 $32.44 $33.42 5 $32.02 $5,550.13 $66,601.60 $33.55 $5,815.33 $69,784.00 $34.15 $5,919.33 $71,032.00 $35.18 $6,097.87 $73,174.40 320 non-exempt Community Service Officer - Lead 1 $27.89 $29.24 $29.75 $30.65 2 $29.36 $30.78 $31.32 $32.26 3 $30.91 $32.40 $32.97 $33.96 4 $32.54 $34.10 $34.70 $35.75 5 $34.25 $5,936.67 $71,240.00 $35.89 $6,220.93 $74,651.20 $36.53 $6,331.87 $75,982.40 $37.63 $6,522.53 $78,270.40 341 non-exempt Coor Trans Sys Mgmt 1 $36.60 $38.04 $38.38 $39.54 2 $38.53 $40.04 $40.40 $41.62 3 $40.56 $42.15 $42.53 $43.81 4 $42.69 $44.37 $44.77 $46.12 5 $44.94 $7,789.60 $93,475.20 $46.70 $8,094.67 $97,136.00 $47.13 $8,169.20 $98,030.40 $48.55 $8,415.33 $100,984.00 4 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 3410 non-exempt Coor Trans Sys Mgmt - S 1 $36.60 $38.04 $38.38 $39.54 2 $38.53 $40.04 $40.40 $41.62 3 $40.56 $42.15 $42.53 $43.81 4 $42.69 $44.37 $44.77 $46.12 5 $44.94 $7,789.60 $93,475.20 $46.70 $8,094.67 $97,136.00 $47.13 $8,169.20 $98,030.40 $48.55 $8,415.33 $100,984.00 255 non-exempt Coord Library Prog 1 $33.24 $34.43 $34.62 $35.66 2 $34.99 $36.24 $36.44 $37.54 3 $36.83 $38.15 $38.36 $39.52 4 $38.77 $40.16 $40.38 $41.60 5 $40.81 $7,073.73 $84,884.80 $42.27 $7,326.80 $87,921.60 $42.51 $7,368.40 $88,420.80 $43.79 $7,590.27 $91,083.20 342 non-exempt Coord Pub Wks Proj 1 $34.78 $36.14 $36.46 $37.56 2 $36.61 $38.04 $38.38 $39.54 3 $38.54 $40.04 $40.40 $41.62 4 $40.57 $42.15 $42.53 $43.81 5 $42.70 $7,401.33 $88,816.00 $44.37 $7,690.80 $92,289.60 $44.77 $7,760.13 $93,121.60 $46.12 $7,994.13 $95,929.60 317 non-exempt Coord Rec Prog 1 $29.88 $31.04 $31.32 $32.27 2 $31.45 $32.67 $32.97 $33.97 3 $33.10 $34.39 $34.71 $35.76 4 $34.84 $36.20 $36.54 $37.64 5 $36.67 $6,356.13 $76,273.60 $38.11 $6,605.73 $79,268.80 $38.46 $6,666.40 $79,996.80 $39.62 $6,867.47 $82,409.60 344 non-exempt Coord Utility Proj 1 $37.55 $39.02 $39.38 $40.57 2 $39.53 $41.07 $41.45 $42.70 3 $41.61 $43.23 $43.63 $44.95 4 $43.80 $45.51 $45.93 $47.32 5 $46.11 $7,992.40 $95,908.80 $47.91 $8,304.40 $99,652.80 $48.35 $8,380.67 $100,568.00 $49.81 $8,633.73 $103,604.80 3440 non-exempt Coord Utility Proj - S 1 $37.55 $39.02 $39.38 $40.57 2 $39.53 $41.07 $41.45 $42.70 3 $41.61 $43.23 $43.63 $44.95 4 $43.80 $45.51 $45.93 $47.32 5 $46.11 $7,992.40 $95,908.80 $47.91 $8,304.40 $99,652.80 $48.35 $8,380.67 $100,568.00 $49.81 $8,633.73 $103,604.80 242 non-exempt Coord Zero Waste 1 $33.39 $34.70 $35.02 $36.07 2 $35.15 $36.53 $36.86 $37.97 3 $37.00 $38.45 $38.80 $39.97 4 $38.95 $40.47 $40.84 $42.07 5 $41.00 $7,106.67 $85,280.00 $42.60 $7,384.00 $88,608.00 $42.99 $7,451.60 $89,419.20 $44.28 $7,675.20 $92,102.40 205 non-exempt Court Liaison Officer 1 $33.95 $35.58 $36.20 $37.30 2 $35.74 $37.45 $38.11 $39.26 3 $37.62 $39.42 $40.12 $41.33 4 $39.60 $41.49 $42.23 $43.50 5 $41.68 $7,224.53 $86,694.40 $43.67 $7,569.47 $90,833.60 $44.45 $7,704.67 $92,456.00 $45.79 $7,936.93 $95,243.20 214 non-exempt Crime Analyst 1 $33.95 $35.58 $36.20 $37.30 2 $35.74 $37.45 $38.11 $39.26 3 $37.62 $39.42 $40.12 $41.33 4 $39.60 $41.49 $42.23 $43.50 5 $41.68 $7,224.53 $86,694.40 $43.67 $7,569.47 $90,833.60 $44.45 $7,704.67 $92,456.00 $45.79 $7,936.93 $95,243.20 415 non-exempt Cust Srv Specialist-L 1 $30.55 $31.47 $31.47 $32.40 2 $32.16 $33.13 $33.13 $34.11 3 $33.85 $34.87 $34.87 $35.91 4 $35.63 $36.70 $36.70 $37.80 5 $37.50 $6,500.00 $78,000.00 $38.63 $6,695.87 $80,350.40 $38.63 $6,695.87 $80,350.40 $39.79 $6,896.93 $82,763.20 5 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 218 non-exempt Cust Svc Represent 1 $25.98 $26.76 $26.76 $27.56 2 $27.35 $28.17 $28.17 $29.01 3 $28.79 $29.65 $29.65 $30.54 4 $30.30 $31.21 $31.21 $32.15 5 $31.89 $5,527.60 $66,331.20 $32.85 $5,694.00 $68,328.00 $32.85 $5,694.00 $68,328.00 $33.84 $5,865.60 $70,387.20 217 non-exempt Cust Svc Spec 1 $28.56 $29.41 $29.41 $30.31 2 $30.06 $30.96 $30.96 $31.90 3 $31.64 $32.59 $32.59 $33.58 4 $33.31 $34.31 $34.31 $35.35 5 $35.06 $6,077.07 $72,924.80 $36.12 $6,260.80 $75,129.60 $36.12 $6,260.80 $75,129.60 $37.21 $6,449.73 $77,396.80 260 non-exempt Desktop Technician 1 $31.13 $32.06 $32.06 $33.03 2 $32.77 $33.75 $33.75 $34.77 3 $34.49 $35.53 $35.53 $36.60 4 $36.31 $37.40 $37.40 $38.53 5 $38.22 $6,624.80 $79,497.60 $39.37 $6,824.13 $81,889.60 $39.37 $6,824.13 $81,889.60 $40.56 $7,030.40 $84,364.80 514 non-exempt Development Project Coordinator I 1 $27.42 $28.67 $29.13 $30.01 2 $28.86 $30.18 $30.66 $31.59 3 $30.38 $31.77 $32.27 $33.25 4 $31.98 $33.44 $33.97 $35.00 5 $33.66 $5,834.40 $70,012.80 $35.20 $6,101.33 $73,216.00 $35.76 $6,198.40 $74,380.80 $36.84 $6,385.60 $76,627.20 515 non-exempt Development Project Coordinator II 1 $31.15 $32.59 $33.10 $34.09 2 $32.79 $34.30 $34.84 $35.88 3 $34.52 $36.10 $36.67 $37.77 4 $36.34 $38.00 $38.60 $39.76 5 $38.25 $6,630.00 $79,560.00 $40.00 $6,933.33 $83,200.00 $40.63 $7,042.53 $84,510.40 $41.85 $7,254.00 $87,048.00 516 non-exempt Development Project Coordinator III 1 $34.36 $35.93 $36.50 $37.60 2 $36.17 $37.82 $38.42 $39.58 3 $38.07 $39.81 $40.44 $41.66 4 $40.07 $41.90 $42.57 $43.85 5 $42.18 $7,311.20 $87,734.40 $44.11 $7,645.73 $91,748.80 $44.81 $7,767.07 $93,204.80 $46.16 $8,001.07 $96,012.80 533 non-exempt Elec Asst I 1 $27.09 $28.22 $28.53 $29.39 2 $28.52 $29.70 $30.03 $30.94 3 $30.02 $31.26 $31.61 $32.57 4 $31.60 $32.90 $33.27 $34.28 5 $33.26 $5,765.07 $69,180.80 $34.63 $6,002.53 $72,030.40 $35.02 $6,070.13 $72,841.60 $36.08 $6,253.87 $75,046.40 267 non-exempt Elec Undgd Inspec 1 $33.84 $35.39 $35.94 $37.03 2 $35.62 $37.25 $37.83 $38.98 3 $37.49 $39.21 $39.82 $41.03 4 $39.46 $41.27 $41.92 $43.19 5 $41.54 $7,200.27 $86,403.20 $43.44 $7,529.60 $90,355.20 $44.13 $7,649.20 $91,790.40 $45.46 $7,879.73 $94,556.80 345 non-exempt Electric Project Engineer 1 $49.43 $51.15 $51.39 $52.93 2 $52.03 $53.84 $54.09 $55.72 3 $54.77 $56.67 $56.94 $58.65 4 $57.65 $59.65 $59.94 $61.74 5 $60.68 $10,517.87 $126,214.40 $62.79 $10,883.60 $130,603.20 $63.09 $10,935.60 $131,227.20 $64.99 $11,264.93 $135,179.20 3450 non-exempt Electric Project Engineer - S 1 $49.43 $51.15 $51.39 $52.93 2 $52.03 $53.84 $54.09 $55.72 3 $54.77 $56.67 $56.94 $58.65 4 $57.65 $59.65 $59.94 $61.74 5 $60.68 $10,517.87 $126,214.40 $62.79 $10,883.60 $130,603.20 $63.09 $10,935.60 $131,227.20 $64.99 $11,264.93 $135,179.20 6 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 292 non-exempt Electric Underground Inspector - Lead 1 $36.20 $37.84 $38.44 $39.60 2 $38.10 $39.83 $40.46 $41.68 3 $40.10 $41.93 $42.59 $43.87 4 $42.21 $44.14 $44.83 $46.18 5 $44.43 $7,701.20 $92,414.40 $46.46 $8,053.07 $96,636.80 $47.19 $8,179.60 $98,155.20 $48.61 $8,425.73 $101,108.80 527 non-exempt Electrical Equipment Tech 1 $34.61 $36.19 $36.74 $37.84 2 $36.43 $38.09 $38.67 $39.83 3 $38.35 $40.09 $40.71 $41.93 4 $40.37 $42.20 $42.85 $44.14 5 $42.49 $7,364.93 $88,379.20 $44.42 $7,699.47 $92,393.60 $45.10 $7,817.33 $93,808.00 $46.46 $8,053.07 $96,636.80 530 non-exempt Electrician 1 $36.23 $37.72 $13.00 $39.28 2 $38.14 $39.70 $40.15 $41.35 3 $40.15 $41.79 $42.26 $43.53 4 $42.26 $43.99 $44.48 $45.82 5 $44.48 $7,709.87 $92,518.40 $46.31 $8,027.07 $96,324.80 $46.82 $8,115.47 $97,385.60 $48.23 $8,359.87 $100,318.40 529 non-exempt Electrician-Appren 1 $34.30 $35.70 $36.10 $37.18 2 $36.10 $37.58 $38.00 $39.14 3 $38.00 $39.56 $40.00 $41.20 4 $40.00 $41.64 $42.10 $43.37 5 $42.10 $7,297.33 $87,568.00 $43.83 $7,597.20 $91,166.40 $44.32 $7,682.13 $92,185.60 $45.65 $7,912.67 $94,952.00 535 non-exempt Electrician-Lead 1 $38.79 $40.38 $40.83 $42.07 2 $40.83 $42.51 $42.98 $44.28 3 $42.98 $44.75 $45.24 $46.61 4 $45.24 $47.10 $47.62 $49.06 5 $47.62 $8,254.13 $99,049.60 $49.58 $8,593.87 $103,126.40 $50.13 $8,689.20 $104,270.40 $51.64 $8,950.93 $107,411.20 399 non-exempt Emergency Med Svs Data Specialist 1 $28.03 $28.90 $28.94 $29.81 2 $29.50 $30.42 $30.46 $31.38 3 $31.05 $32.02 $32.06 $33.03 4 $32.68 $33.71 $33.75 $34.77 5 $34.40 $5,962.67 $71,552.00 $35.48 $6,149.87 $73,798.40 $35.53 $6,158.53 $73,902.40 $36.60 $6,344.00 $76,128.00 311 non-exempt Eng Tech I 1 $26.50 $27.69 $28.09 $28.94 2 $27.89 $29.15 $29.57 $30.46 3 $29.36 $30.68 $31.13 $32.06 4 $30.90 $32.29 $32.77 $33.75 5 $32.53 $5,638.53 $67,662.40 $33.99 $5,891.60 $70,699.20 $34.49 $5,978.27 $71,739.20 $35.53 $6,158.53 $73,902.40 332 non-exempt Engineer 1 $43.64 $45.17 $45.37 $46.74 2 $45.94 $47.55 $47.76 $49.20 3 $48.36 $50.05 $50.27 $51.79 4 $50.91 $52.68 $52.92 $54.52 5 $53.59 $9,288.93 $111,467.20 $55.45 $9,611.33 $115,336.00 $55.71 $9,656.40 $115,876.80 $57.39 $9,947.60 $119,371.20 323 non-exempt Engr Tech II 1 $28.67 $29.95 $30.40 $31.31 2 $30.18 $31.53 $32.00 $32.96 3 $31.77 $33.19 $33.68 $34.69 4 $33.44 $34.94 $35.45 $36.52 5 $35.20 $6,101.33 $73,216.00 $36.78 $6,375.20 $76,502.40 $37.32 $6,468.80 $77,625.60 $38.44 $6,662.93 $79,955.20 319 non-exempt Engr Tech III 1 $32.02 $33.45 $33.94 $34.96 2 $33.70 $35.21 $35.73 $36.80 3 $35.47 $37.06 $37.61 $38.74 4 $37.34 $39.01 $39.59 $40.78 5 $39.30 $6,812.00 $81,744.00 $41.06 $7,117.07 $85,404.80 $41.67 $7,222.80 $86,673.60 $42.93 $7,441.20 $89,294.40 7 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 257 non-exempt Environmental Spec 1 $37.67 $39.35 $39.92 $41.13 2 $39.65 $41.42 $42.02 $43.29 3 $41.74 $43.60 $44.23 $45.57 4 $43.94 $45.89 $46.56 $47.97 5 $46.25 $8,016.67 $96,200.00 $48.31 $8,373.73 $100,484.80 $49.01 $8,495.07 $101,940.80 $50.49 $8,751.60 $105,019.20 211 non-exempt Equip Maint Serv Per 1 $22.62 $23.56 $23.83 $24.54 2 $23.81 $24.80 $25.08 $25.83 3 $25.06 $26.10 $26.40 $27.19 4 $26.38 $27.47 $27.79 $28.62 5 $27.77 $4,813.47 $57,761.60 $28.92 $5,012.80 $60,153.60 $29.25 $5,070.00 $60,840.00 $30.13 $5,222.53 $62,670.40 396 non-exempt Equip Operator 1 $27.81 $29.37 $30.13 $31.04 2 $29.27 $30.92 $31.72 $32.67 3 $30.81 $32.55 $33.39 $34.39 4 $32.43 $34.26 $35.15 $36.20 5 $34.14 $5,917.60 $71,011.20 $36.06 $6,250.40 $75,004.80 $37.00 $6,413.33 $76,960.00 $38.11 $6,605.73 $79,268.80 397 non-exempt Equip Operator - Lead 1 $29.75 $31.43 $32.24 $33.21 2 $31.32 $33.08 $33.94 $34.96 3 $32.97 $34.82 $35.73 $36.80 4 $34.70 $36.65 $37.61 $38.74 5 $36.53 $6,331.87 $75,982.40 $38.58 $6,687.20 $80,246.40 $39.59 $6,862.27 $82,347.20 $40.78 $7,068.53 $84,822.40 250 non-exempt Equip Parts Tech 1 $24.31 $25.04 $25.04 $25.81 2 $25.59 $26.36 $26.36 $27.17 3 $26.94 $27.75 $27.75 $28.60 4 $28.36 $29.21 $29.21 $30.10 5 $29.85 $5,174.00 $62,088.00 $30.75 $5,330.00 $63,960.00 $30.75 $5,330.00 $63,960.00 $31.68 $5,491.20 $65,894.40 203 non-exempt Facilities Asst 1 $23.09 $24.44 $25.12 $25.87 2 $24.31 $25.73 $26.44 $27.23 3 $25.59 $27.08 $27.83 $28.66 4 $26.94 $28.50 $29.29 $30.17 5 $28.36 $4,915.73 $58,988.80 $30.00 $5,200.00 $62,400.00 $30.83 $5,343.87 $64,126.40 $31.76 $5,505.07 $66,060.80 374 non-exempt Facilities Carpenter 1 $30.11 $31.85 $32.75 $33.73 2 $31.69 $33.53 $34.47 $35.50 3 $33.36 $35.29 $36.28 $37.37 4 $35.12 $37.15 $38.19 $39.34 5 $36.97 $6,408.13 $76,897.60 $39.11 $6,779.07 $81,348.80 $40.20 $6,968.00 $83,616.00 $41.41 $7,177.73 $86,132.80 375 non-exempt Facilities Elect 1 $30.02 $31.26 $31.61 $32.56 2 $31.60 $32.90 $33.27 $34.27 3 $33.26 $34.63 $35.02 $36.07 4 $35.01 $36.45 $36.86 $37.97 5 $36.85 $6,387.33 $76,648.00 $38.37 $6,650.80 $79,809.60 $38.80 $6,725.33 $80,704.00 $39.97 $6,928.13 $83,137.60 373 non-exempt Facilities Maint-L 1 $38.90 $41.15 $42.29 $43.58 2 $40.95 $43.32 $44.52 $45.87 3 $43.11 $45.60 $46.86 $48.28 4 $45.38 $48.00 $49.33 $50.82 5 $47.77 $8,280.13 $99,361.60 $50.53 $8,758.53 $105,102.40 $51.93 $9,001.20 $108,014.40 $53.49 $9,271.60 $111,259.20 377 non-exempt Facilities Painter 1 $30.11 $31.85 $32.75 $33.73 2 $31.69 $33.53 $34.47 $35.50 3 $33.36 $35.29 $36.28 $37.37 4 $35.12 $37.15 $38.19 $39.34 5 $36.97 $6,408.13 $76,897.60 $39.11 $6,779.07 $81,348.80 $40.20 $6,968.00 $83,616.00 $41.41 $7,177.73 $86,132.80 8 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 376 non-exempt Facilities Tech 1 $32.57 $33.79 $34.04 $35.07 2 $34.28 $35.57 $35.83 $36.92 3 $36.08 $37.44 $37.72 $38.86 4 $37.98 $39.41 $39.70 $40.90 5 $39.98 $6,929.87 $83,158.40 $41.48 $7,189.87 $86,278.40 $41.79 $7,243.60 $86,923.20 $43.05 $7,462.00 $89,544.00 462 non-exempt Field Service Pers WGW 1 $27.89 $29.51 $30.31 $31.23 2 $29.36 $31.06 $31.91 $32.87 3 $30.91 $32.69 $33.59 $34.60 4 $32.54 $34.41 $35.36 $36.42 5 $34.25 $5,936.67 $71,240.00 $36.22 $6,278.13 $75,337.60 $37.22 $6,451.47 $77,417.60 $38.34 $6,645.60 $79,747.20 383 non-exempt Fleet Svcs Coord 1 $28.97 $29.84 $29.84 $30.73 2 $30.49 $31.41 $31.41 $32.35 3 $32.09 $33.06 $33.06 $34.05 4 $33.78 $34.80 $34.80 $35.84 5 $35.56 $6,163.73 $73,964.80 $36.63 $6,349.20 $76,190.40 $36.63 $6,349.20 $76,190.40 $37.73 $6,539.87 $78,478.40 489 non-exempt Gas System Tech 1 $30.39 $32.14 $33.01 $34.01 2 $31.99 $33.83 $34.75 $35.80 3 $33.67 $35.61 $36.58 $37.68 4 $35.44 $37.48 $38.50 $39.66 5 $37.31 $6,467.07 $77,604.80 $39.45 $6,838.00 $82,056.00 $40.53 $7,025.20 $84,302.40 $41.75 $7,236.67 $86,840.00 463 non-exempt Gas System Tech II 1 $31.91 $33.74 $34.68 $35.72 2 $33.59 $35.52 $36.50 $37.60 3 $35.36 $37.39 $38.42 $39.58 4 $37.22 $39.36 $40.44 $41.66 5 $39.18 $6,791.20 $81,494.40 $41.43 $7,181.20 $86,174.40 $42.57 $7,378.80 $88,545.60 $43.85 $7,600.67 $91,208.00 398 non-exempt Geographic Inform Syst Specialist 1 $40.98 $43.34 $44.53 $45.88 2 $43.14 $45.62 $46.87 $48.29 3 $45.41 $48.02 $49.34 $50.83 4 $47.80 $50.55 $51.94 $53.50 5 $50.32 $8,722.13 $104,665.60 $53.21 $9,223.07 $110,676.80 $54.67 $9,476.13 $113,713.60 $56.32 $9,762.13 $117,145.60 390 non-exempt Heavy Equip Oper 1 $31.49 $33.26 $34.13 $35.15 2 $33.15 $35.01 $35.93 $37.00 3 $34.89 $36.85 $37.82 $38.95 4 $36.73 $38.79 $39.81 $41.00 5 $38.66 $6,701.07 $80,412.80 $40.83 $7,077.20 $84,926.40 $41.90 $7,262.67 $87,152.00 $43.16 $7,481.07 $89,772.80 391 non-exempt Heavy Equip Oper-L 1 $33.68 $35.58 $36.50 $37.60 2 $35.45 $37.45 $38.42 $39.58 3 $37.32 $39.42 $40.44 $41.66 4 $39.28 $41.49 $42.57 $43.85 5 $41.35 $7,167.33 $86,008.00 $43.67 $7,569.47 $90,833.60 $44.81 $7,767.07 $93,204.80 $46.16 $8,001.07 $96,012.80 389 non-exempt HEO/Installer Repairer 1 $33.77 $35.71 $36.69 $37.80 2 $35.55 $37.59 $38.62 $39.79 3 $37.42 $39.57 $40.65 $41.88 4 $39.39 $41.65 $42.79 $44.08 5 $41.46 $7,186.40 $86,236.80 $43.84 $7,598.93 $91,187.20 $45.04 $7,806.93 $93,683.20 $46.40 $8,042.67 $96,512.00 9 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 508 non-exempt Ind Waste Inspec 1 $31.65 $33.06 $33.54 $34.56 2 $33.32 $34.80 $35.30 $36.38 3 $35.07 $36.63 $37.16 $38.29 4 $36.92 $38.56 $39.12 $40.30 5 $38.86 $6,735.73 $80,828.80 $40.59 $7,035.60 $84,427.20 $41.18 $7,137.87 $85,654.40 $42.42 $7,352.80 $88,233.60 258 non-exempt Ind Waste Invtgtr 1 $35.58 $37.15 $37.69 $38.83 2 $37.45 $39.10 $39.67 $40.87 3 $39.42 $41.16 $41.76 $43.02 4 $41.49 $43.33 $43.96 $45.28 5 $43.67 $7,569.47 $90,833.60 $45.61 $7,905.73 $94,868.80 $46.27 $8,020.13 $96,241.60 $47.66 $8,261.07 $99,132.80 365 non-exempt Industrial Waste Technician 1 $28.58 $29.85 $30.27 $31.19 2 $30.08 $31.42 $31.86 $32.83 3 $31.66 $33.07 $33.54 $34.56 4 $33.33 $34.81 $35.31 $36.38 5 $35.08 $6,080.53 $72,966.40 $36.64 $6,350.93 $76,211.20 $37.17 $6,442.80 $77,313.60 $38.29 $6,636.93 $79,643.20 227 non-exempt Inspector, Field Svc 1 $34.47 $36.05 $36.61 $37.72 2 $36.28 $37.95 $38.54 $39.70 3 $38.19 $39.95 $40.57 $41.79 4 $40.20 $42.05 $42.71 $43.99 5 $42.32 $7,335.47 $88,025.60 $44.26 $7,671.73 $92,060.80 $44.96 $7,793.07 $93,516.80 $46.31 $8,027.07 $96,324.80 308 non-exempt Instrum Elec 1 $34.16 $35.57 $35.96 $37.05 2 $35.96 $37.44 $37.85 $39.00 3 $37.85 $39.41 $39.84 $41.05 4 $39.84 $41.48 $41.94 $43.21 5 $41.94 $7,269.60 $87,235.20 $43.66 $7,567.73 $90,812.80 $44.15 $7,652.67 $91,832.00 $45.48 $7,883.20 $94,598.40 293 non-exempt Junior Museum & Zoo Educator 1 $26.71 $27.76 $28.02 $28.86 2 $28.12 $29.22 $29.49 $30.38 3 $29.60 $30.76 $31.04 $31.98 4 $31.16 $32.38 $32.67 $33.66 5 $32.80 $5,685.33 $68,224.00 $34.08 $5,907.20 $70,886.40 $34.39 $5,960.93 $71,531.20 $35.43 $6,141.20 $73,694.40 503 non-exempt Laboratory Tech Wqc 1 $31.40 $32.37 $32.40 $33.36 2 $33.05 $34.07 $34.10 $35.12 3 $34.79 $35.86 $35.89 $36.97 4 $36.62 $37.75 $37.78 $38.92 5 $38.55 $6,682.00 $80,184.00 $39.74 $6,888.27 $82,659.20 $39.77 $6,893.47 $82,721.60 $40.97 $7,101.47 $85,217.60 413 non-exempt Landfill Technician 1 $34.91 $36.47 $37.01 $38.13 2 $36.75 $38.39 $38.96 $40.14 3 $38.68 $40.41 $41.01 $42.25 4 $40.72 $42.54 $43.17 $44.47 5 $42.86 $7,429.07 $89,148.80 $44.78 $7,761.87 $93,142.40 $45.44 $7,876.27 $94,515.20 $46.81 $8,113.73 $97,364.80 254 non-exempt Librarian 1 $26.84 $27.80 $27.96 $28.79 2 $28.25 $29.26 $29.43 $30.31 3 $29.74 $30.80 $30.98 $31.91 4 $31.30 $32.42 $32.61 $33.59 5 $32.95 $5,711.33 $68,536.00 $34.13 $5,915.87 $70,990.40 $34.33 $5,950.53 $71,406.40 $35.36 $6,129.07 $73,548.80 252 non-exempt Library Associate 1 $24.52 $25.27 $25.27 $26.03 2 $25.81 $26.60 $26.60 $27.40 3 $27.17 $28.00 $28.00 $28.84 4 $28.60 $29.47 $29.47 $30.36 5 $30.11 $5,219.07 $62,628.80 $31.02 $5,376.80 $64,521.60 $31.02 $5,376.80 $64,521.60 $31.96 $5,539.73 $66,476.80 10 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 253 non-exempt Library Specialist 1 $23.20 $23.90 $23.90 $24.62 2 $24.42 $25.16 $25.16 $25.92 3 $25.71 $26.48 $26.48 $27.28 4 $27.06 $27.87 $27.87 $28.72 5 $28.48 $4,936.53 $59,238.40 $29.34 $5,085.60 $61,027.20 $29.34 $5,085.60 $61,027.20 $30.23 $5,239.87 $62,878.40 541 non-exempt Lineper/Cable Spl 1 $42.81 $44.75 $45.45 $46.83 2 $45.06 $47.11 $47.84 $49.29 3 $47.43 $49.59 $50.36 $51.88 4 $49.93 $52.20 $53.01 $54.61 5 $52.56 $9,110.40 $109,324.80 $54.95 $9,524.67 $114,296.00 $55.80 $9,672.00 $116,064.00 $57.48 $9,963.20 $119,558.40 542 non-exempt Lineper/Cable Spl-L 1 $45.82 $47.90 $48.63 $50.09 2 $48.23 $50.42 $51.19 $52.73 3 $50.77 $53.07 $53.88 $55.51 4 $53.44 $55.86 $56.72 $58.43 5 $56.25 $9,750.00 $117,000.00 $58.80 $10,192.00 $122,304.00 $59.71 $10,349.73 $124,196.80 $61.51 $10,661.73 $127,940.80 531 non-exempt Lineperson/Cable Spl-T 1 $40.78 $42.63 $43.29 $44.59 2 $42.93 $44.87 $45.57 $46.94 3 $45.19 $47.23 $47.97 $49.41 4 $47.57 $49.72 $50.49 $52.01 5 $50.07 $8,678.80 $104,145.60 $52.34 $9,072.27 $108,867.20 $53.15 $9,212.67 $110,552.00 $54.75 $9,490.00 $113,880.00 532 non-exempt Lineperson/Cable Spl-TL 1 $43.61 $45.59 $46.30 $47.69 2 $45.91 $47.99 $48.74 $50.20 3 $48.33 $50.52 $51.30 $52.84 4 $50.87 $53.18 $54.00 $55.62 5 $53.55 $9,282.00 $111,384.00 $55.98 $9,703.20 $116,438.40 $56.84 $9,852.27 $118,227.20 $58.55 $10,148.67 $121,784.00 528 non-exempt Lnper/Cbl Spl-Appren 1 $36.77 $38.45 $39.04 $40.21 2 $38.71 $40.47 $41.09 $42.33 3 $40.75 $42.60 $43.25 $44.56 4 $42.89 $44.84 $45.53 $46.90 5 $45.15 $7,826.00 $93,912.00 $47.20 $8,181.33 $98,176.00 $47.93 $8,307.87 $99,694.40 $49.37 $8,557.47 $102,689.60 213 non-exempt Mailing Svcs Spec 1 $20.48 $21.12 $21.16 $21.78 2 $21.56 $22.23 $22.27 $22.93 3 $22.69 $23.40 $23.44 $24.14 4 $23.88 $24.63 $24.67 $25.41 5 $25.14 $4,357.60 $52,291.20 $25.93 $4,494.53 $53,934.40 $25.97 $4,501.47 $54,017.60 $26.75 $4,636.67 $55,640.00 291 non-exempt Maintenance Mechanic-Welding 1 $33.53 $35.46 $36.44 $37.54 2 $35.29 $37.33 $38.36 $39.52 3 $37.15 $39.29 $40.38 $41.60 4 $39.11 $41.36 $42.50 $43.79 5 $41.17 $7,136.13 $85,633.60 $43.54 $7,546.93 $90,563.20 $44.74 $7,754.93 $93,059.20 $46.09 $7,988.93 $95,867.20 346 non-exempt Management Assistant 1 $30.44 $31.40 $31.45 $32.40 2 $32.04 $33.05 $33.11 $34.10 3 $33.73 $34.79 $34.85 $35.89 4 $35.50 $36.62 $36.68 $37.78 5 $37.37 $6,477.47 $77,729.60 $38.55 $6,682.00 $80,184.00 $38.61 $6,692.40 $80,308.80 $39.77 $6,893.47 $82,721.60 3460 non-exempt Management Assistant - S 1 $30.44 $31.40 $31.45 $32.40 2 $32.04 $33.05 $33.11 $34.10 3 $33.73 $34.79 $34.85 $35.89 4 $35.50 $36.62 $36.68 $37.78 5 $37.37 $6,477.47 $77,729.60 $38.55 $6,682.00 $80,184.00 $38.61 $6,692.40 $80,308.80 $39.77 $6,893.47 $82,721.60 11 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 216 non-exempt Marketing Eng 1 $43.64 $45.17 $45.37 $46.74 2 $45.94 $47.55 $47.76 $49.20 3 $48.36 $50.05 $50.27 $51.79 4 $50.91 $52.68 $52.92 $54.52 5 $53.59 $9,288.93 $111,467.20 $55.45 $9,611.33 $115,336.00 $55.71 $9,656.40 $115,876.80 $57.39 $9,947.60 $119,371.20 241 non-exempt Meter Reader 1 $24.31 $25.09 $25.14 $25.90 2 $25.59 $26.41 $26.46 $27.26 3 $26.94 $27.80 $27.85 $28.69 4 $28.36 $29.26 $29.32 $30.20 5 $29.85 $5,174.00 $62,088.00 $30.80 $5,338.67 $64,064.00 $30.86 $5,349.07 $64,188.80 $31.79 $5,510.27 $66,123.20 240 non-exempt Meter Reader-Lead 1 $26.01 $26.84 $26.89 $27.71 2 $27.38 $28.25 $28.31 $29.17 3 $28.82 $29.74 $29.80 $30.70 4 $30.34 $31.31 $31.37 $32.32 5 $31.94 $5,536.27 $66,435.20 $32.96 $5,713.07 $68,556.80 $33.02 $5,723.47 $68,681.60 $34.02 $5,896.80 $70,761.60 369 non-exempt Meter Shop Lead 1 $29.29 $30.64 $31.14 $32.07 2 $30.83 $32.25 $32.78 $33.76 3 $32.45 $33.95 $34.50 $35.54 4 $34.16 $35.74 $36.32 $37.41 5 $35.96 $6,233.07 $74,796.80 $37.62 $6,520.80 $78,249.60 $38.23 $6,626.53 $79,518.40 $39.38 $6,825.87 $81,910.40 552 non-exempt Metering Technician 1 $40.36 $42.19 $42.85 $44.14 2 $42.48 $44.41 $45.10 $46.46 3 $44.72 $46.75 $47.47 $48.90 4 $47.07 $49.21 $49.97 $51.47 5 $49.55 $8,588.67 $103,064.00 $51.80 $8,978.67 $107,744.00 $52.60 $9,117.33 $109,408.00 $54.18 $9,391.20 $112,694.40 553 non-exempt Metering Technician – Lead 1 $43.20 $45.16 $45.87 $47.23 2 $45.47 $47.54 $48.28 $49.72 3 $47.86 $50.04 $50.82 $52.34 4 $50.38 $52.67 $53.49 $55.09 5 $53.03 $9,191.87 $110,302.40 $55.44 $9,609.60 $115,315.20 $56.30 $9,758.67 $117,104.00 $57.99 $10,051.60 $120,619.20 384 non-exempt Mobile Service Tech 1 $34.41 $35.44 $35.44 $36.52 2 $36.22 $37.31 $37.31 $38.44 3 $38.13 $39.27 $39.27 $40.46 4 $40.14 $41.34 $41.34 $42.59 5 $42.25 $7,323.33 $87,880.00 $43.52 $7,543.47 $90,521.60 $43.52 $7,543.47 $90,521.60 $44.83 $7,770.53 $93,246.40 381 non-exempt Motor Equip Mech-L 1 $35.06 $36.11 $36.11 $37.21 2 $36.91 $38.01 $38.01 $39.17 3 $38.85 $40.01 $40.01 $41.23 4 $40.89 $42.12 $42.12 $43.40 5 $43.04 $7,460.27 $89,523.20 $44.34 $7,685.60 $92,227.20 $44.34 $7,685.60 $92,227.20 $45.68 $7,917.87 $95,014.40 286 non-exempt Motor Equipment Mechanic I 1 $30.36 $31.27 $31.27 $32.21 2 $31.96 $32.92 $32.92 $33.91 3 $33.64 $34.65 $34.65 $35.69 4 $35.41 $36.47 $36.47 $37.57 5 $37.27 $6,460.13 $77,521.60 $38.39 $6,654.27 $79,851.20 $38.39 $6,654.27 $79,851.20 $39.55 $6,855.33 $82,264.00 287 non-exempt Motor Equipment Mechanic II 1 $32.78 $33.76 $33.76 $34.78 2 $34.50 $35.54 $35.54 $36.61 3 $36.32 $37.41 $37.41 $38.54 4 $38.23 $39.38 $39.38 $40.57 5 $40.24 $6,974.93 $83,699.20 $41.45 $7,184.67 $86,216.00 $41.45 $7,184.67 $86,216.00 $42.70 $7,401.33 $88,816.00 12 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 230 non-exempt Offset Equip Op 1 $23.22 $23.94 $23.98 $24.70 2 $24.44 $25.20 $25.24 $26.00 3 $25.73 $26.53 $26.57 $27.37 4 $27.08 $27.93 $27.97 $28.81 5 $28.50 $4,940.00 $59,280.00 $29.40 $5,096.00 $61,152.00 $29.44 $5,102.93 $61,235.20 $30.33 $5,257.20 $63,086.40 543 non-exempt Overhead Underground Troubleman 1 $44.98 $47.03 $47.75 $49.18 2 $47.35 $49.50 $50.26 $51.77 3 $49.84 $52.10 $52.91 $54.49 4 $52.46 $54.84 $55.69 $57.36 5 $55.22 $9,571.47 $114,857.60 $57.73 $10,006.53 $120,078.40 $58.62 $10,160.80 $121,929.60 $60.38 $10,465.87 $125,590.40 452 non-exempt Park Maint - Lead 1 $29.79 $30.78 $30.88 $31.82 2 $31.36 $32.40 $32.50 $33.49 3 $33.01 $34.11 $34.21 $35.25 4 $34.75 $35.90 $36.01 $37.10 5 $36.58 $6,340.53 $76,086.40 $37.79 $6,550.27 $78,603.20 $37.91 $6,571.07 $78,852.80 $39.05 $6,768.67 $81,224.00 451 non-exempt Park Maint Person 1 $25.70 $26.55 $26.64 $27.45 2 $27.05 $27.95 $28.04 $28.89 3 $28.47 $29.42 $29.52 $30.41 4 $29.97 $30.97 $31.07 $32.01 5 $31.55 $5,468.67 $65,624.00 $32.60 $5,650.67 $67,808.00 $32.70 $5,668.00 $68,016.00 $33.69 $5,839.60 $70,075.20 281 non-exempt Park Ranger 1 $28.79 $29.66 $29.66 $30.55 2 $30.30 $31.22 $31.22 $32.16 3 $31.89 $32.86 $32.86 $33.85 4 $33.57 $34.59 $34.59 $35.63 5 $35.34 $6,125.60 $73,507.20 $36.41 $6,311.07 $75,732.80 $36.41 $6,311.07 $75,732.80 $37.51 $6,501.73 $78,020.80 570 non-exempt Parking Operations Lead 1 $44.20 $46.31 $47.14 $48.55 2 $46.53 $48.75 $49.62 $51.11 3 $48.98 $51.32 $52.23 $53.80 4 $51.56 $54.02 $54.98 $56.63 5 $54.27 $9,406.80 $112,881.60 $56.86 $9,855.73 $118,268.80 $57.87 $10,030.80 $120,369.60 $59.61 $10,332.40 $123,988.80 460 non-exempt Parks/Golf Crew-Lead 1 $27.96 $28.90 $28.98 $29.86 2 $29.43 $30.42 $30.50 $31.43 3 $30.98 $32.02 $32.11 $33.08 4 $32.61 $33.70 $33.80 $34.82 5 $34.33 $5,950.53 $71,406.40 $35.47 $6,148.13 $73,777.60 $35.58 $6,167.20 $74,006.40 $36.65 $6,352.67 $76,232.00 348 non-exempt Payroll Analyst 1 $29.15 $30.03 $30.03 $30.93 2 $30.68 $31.61 $31.61 $32.56 3 $32.29 $33.27 $33.27 $34.27 4 $33.99 $35.02 $35.02 $36.07 5 $35.78 $6,201.87 $74,422.40 $36.86 $6,389.07 $76,668.80 $36.86 $6,389.07 $76,668.80 $37.97 $6,581.47 $78,977.60 3480 non-exempt Payroll Analyst - S 1 29.15 $30.03 $30.03 $30.93 2 30.68 $31.61 $31.61 $32.56 3 32.29 $33.27 $33.27 $34.27 4 33.99 $35.02 $35.02 $36.07 5 35.78 $6,201.87 $74,422.40 $36.86 $6,389.07 $76,668.80 $36.86 $6,389.07 $76,668.80 $37.97 $6,581.47 $78,977.60 352 non-exempt Planner 1 $38.43 $39.85 $40.15 $41.34 2 $40.45 $41.95 $42.26 $43.52 3 $42.58 $44.16 $44.48 $45.81 4 $44.82 $46.48 $46.82 $48.22 5 $47.18 $8,177.87 $98,134.40 $48.93 $8,481.20 $101,774.40 $49.28 $8,541.87 $102,502.40 $50.76 $8,798.40 $105,580.80 13 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 347 non-exempt Planning Arborist 1 $41.76 $43.66 $44.35 $45.70 2 $43.96 $45.96 $46.68 $48.10 3 $46.27 $48.38 $49.14 $50.63 4 $48.70 $50.93 $51.73 $53.29 5 $51.26 $8,885.07 $106,620.80 $53.61 $9,292.40 $111,508.80 $54.45 $9,438.00 $113,256.00 $56.09 $9,722.27 $116,667.20 3470 non-exempt Planning Arborist - S 1 $41.76 $43.66 $44.35 $45.70 2 $43.96 $45.96 $46.68 $48.10 3 $46.27 $48.38 $49.14 $50.63 4 $48.70 $50.93 $51.73 $53.29 5 $51.26 $8,885.07 $106,620.80 $53.61 $9,292.40 $111,508.80 $54.45 $9,438.00 $113,256.00 $56.09 $9,722.27 $116,667.20 304 non-exempt Plans Check Engr 1 $42.38 $43.85 $44.07 $45.39 2 $44.61 $46.16 $46.39 $47.78 3 $46.96 $48.59 $48.83 $50.29 4 $49.43 $51.15 $51.40 $52.94 5 $52.03 $9,018.53 $108,222.40 $53.84 $9,332.27 $111,987.20 $54.10 $9,377.33 $112,528.00 $55.73 $9,659.87 $115,918.40 513 non-exempt Plans Examiner 1 $36.22 $37.88 $38.48 $39.63 2 $38.13 $39.87 $40.51 $41.72 3 $40.14 $41.97 $42.64 $43.92 4 $42.25 $44.18 $44.88 $46.23 5 $44.47 $7,708.13 $92,497.60 $46.51 $8,061.73 $96,740.80 $47.24 $8,188.27 $98,259.20 $48.66 $8,434.40 $101,212.80 517 non-exempt Plant Mechanic 1 $34.53 $35.58 $35.58 $36.64 2 $36.35 $37.45 $37.45 $38.57 3 $38.26 $39.42 $39.42 $40.60 4 $40.27 $41.49 $41.49 $42.74 5 $42.39 $7,347.60 $88,171.20 $43.67 $7,569.47 $90,833.60 $43.67 $7,569.47 $90,833.60 $44.99 $7,798.27 $93,579.20 321 non-exempt Police Records Specialist - Lead 1 $27.00 $28.29 $28.79 $29.68 2 $28.42 $29.78 $30.31 $31.24 3 $29.92 $31.35 $31.91 $32.88 4 $31.49 $33.00 $33.59 $34.61 5 $33.15 $5,746.00 $68,952.00 $34.74 $6,021.60 $72,259.20 $35.36 $6,129.07 $73,548.80 $36.43 $6,314.53 $75,774.40 313 non-exempt Police Records Specialist I 1 $23.98 $25.13 $25.57 $26.34 2 $25.24 $26.45 $26.92 $27.73 3 $26.57 $27.84 $28.34 $29.19 4 $27.97 $29.31 $29.83 $30.73 5 $29.44 $5,102.93 $61,235.20 $30.85 $5,347.33 $64,168.00 $31.40 $5,442.67 $65,312.00 $32.35 $5,607.33 $67,288.00 314 non-exempt Police Records Specialist II 1 $25.23 $26.45 $26.91 $27.72 2 $26.56 $27.84 $28.33 $29.18 3 $27.96 $29.30 $29.82 $30.72 4 $29.43 $30.84 $31.39 $32.34 5 $30.98 $5,369.87 $64,438.40 $32.46 $5,626.40 $67,516.80 $33.04 $5,726.93 $68,723.20 $34.04 $5,900.27 $70,803.20 246 non-exempt Power Engr 1 $46.60 $48.22 $48.45 $49.91 2 $49.05 $50.76 $51.00 $52.54 3 $51.63 $53.43 $53.68 $55.30 4 $54.35 $56.24 $56.51 $58.21 5 $57.21 $9,916.40 $118,996.80 $59.20 $10,261.33 $123,136.00 $59.48 $10,309.87 $123,718.40 $61.27 $10,620.13 $127,441.60 270 non-exempt Prod Arts/Sci Prog 1 $32.39 $33.66 $33.97 $34.99 2 $34.09 $35.43 $35.76 $36.83 3 $35.88 $37.29 $37.64 $38.77 4 $37.77 $39.25 $39.62 $40.81 5 $39.76 $6,891.73 $82,700.80 $41.32 $7,162.13 $85,945.60 $41.70 $7,228.00 $86,736.00 $42.96 $7,446.40 $89,356.80 14 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 232 non-exempt Prog-Analyst 1 $39.44 $41.71 $42.85 $44.14 2 $41.52 $43.91 $45.11 $46.46 3 $43.71 $46.22 $47.48 $48.91 4 $46.01 $48.65 $49.98 $51.48 5 $48.43 $8,394.53 $100,734.40 $51.21 $8,876.40 $106,516.80 $52.61 $9,119.07 $109,428.80 $54.19 $9,392.93 $112,715.20 265 non-exempt Program Assistant 1 $25.00 $25.79 $25.82 $26.62 2 $26.32 $27.15 $27.18 $28.02 3 $27.70 $28.58 $28.61 $29.49 4 $29.16 $30.08 $30.12 $31.04 5 $30.69 $5,319.60 $63,835.20 $31.66 $5,487.73 $65,852.80 $31.71 $5,496.40 $65,956.80 $32.67 $5,662.80 $67,953.60 302 non-exempt Program Assistant I 1 $26.51 $27.35 $27.40 $28.22 2 $27.91 $28.79 $28.84 $29.71 3 $29.38 $30.31 $30.36 $31.27 4 $30.93 $31.91 $31.96 $32.92 5 $32.56 $5,643.73 $67,724.80 $33.59 $5,822.27 $69,867.20 $33.64 $5,830.93 $69,971.20 $34.65 $6,006.00 $72,072.00 303 non-exempt Program Assistant II 1 $28.51 $29.41 $29.44 $30.33 2 $30.01 $30.96 $30.99 $31.93 3 $31.59 $32.59 $32.62 $33.61 4 $33.25 $34.30 $34.34 $35.38 5 $35.00 $6,066.67 $72,800.00 $36.10 $6,257.33 $75,088.00 $36.15 $6,266.00 $75,192.00 $37.24 $6,454.93 $77,459.20 368 non-exempt Program Coordinator 1 $27.96 $29.06 $29.33 $30.21 2 $29.43 $30.59 $30.87 $31.80 3 $30.98 $32.20 $32.49 $33.47 4 $32.61 $33.89 $34.20 $35.23 5 $34.33 $5,950.53 $71,406.40 $35.67 $6,182.80 $74,193.60 $36.00 $6,240.00 $74,880.00 $37.08 $6,427.20 $77,126.40 349 non-exempt Project Engineer 1 $46.99 $48.62 $48.83 $50.30 2 $49.46 $51.18 $51.40 $52.95 3 $52.06 $53.87 $54.11 $55.74 4 $54.80 $56.70 $56.96 $58.67 5 $57.68 $9,997.87 $119,974.40 $59.68 $10,344.53 $124,134.40 $59.96 $10,393.07 $124,716.80 $61.76 $10,705.07 $128,460.80 3490 non-exempt Project Engineer - S 1 $46.99 $48.62 $48.83 $50.30 2 $49.46 $51.18 $51.40 $52.95 3 $52.06 $53.87 $54.11 $55.74 4 $54.80 $56.70 $56.96 $58.67 5 $57.68 $9,997.87 $119,974.40 $59.68 $10,344.53 $124,134.40 $59.96 $10,393.07 $124,716.80 $61.76 $10,705.07 $128,460.80 209 non-exempt Property Evid Tech 1 $26.11 $27.35 $27.84 $28.68 2 $27.48 $28.79 $29.31 $30.19 3 $28.93 $30.31 $30.85 $31.78 4 $30.45 $31.90 $32.47 $33.45 5 $32.05 $5,555.33 $66,664.00 $33.58 $5,820.53 $69,846.40 $34.18 $5,924.53 $71,094.40 $35.21 $6,103.07 $73,236.80 315 non-exempt Public Safety Dispatcher - Lead 1 $40.54 $41.76 $41.76 $43.02 2 $42.67 $43.96 $43.96 $45.28 3 $44.92 $46.27 $46.27 $47.66 4 $47.28 $48.71 $48.71 $50.17 5 $49.77 $8,626.80 $103,521.60 $51.27 $8,886.80 $106,641.60 $51.27 $8,886.80 $106,641.60 $52.81 $9,153.73 $109,844.80 6 $51.02 $52.56 $52.56 $54.14 7 $52.29 $53.86 $53.86 $55.48 298 non-exempt Public Safety Dispatcher I 1 $34.30 $35.33 $35.33 $36.40 2 $36.10 $37.19 $37.19 $38.32 3 $38.00 $39.15 $39.15 $40.34 4 $40.00 $41.21 $41.21 $42.46 5 $42.11 $7,299.07 $87,588.80 $43.38 $7,519.20 $90,230.40 $43.38 $7,519.20 $90,230.40 $44.69 $7,746.27 $92,955.20 6 $43.17 $44.47 $44.47 $45.81 7 $44.25 $45.58 $45.58 $46.95 15 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 316 non-exempt Public Safety Dispatcher II 1 $36.11 $37.21 $37.21 $38.33 2 $38.01 $39.17 $39.17 $40.35 3 $40.01 $41.23 $41.23 $42.47 4 $42.12 $43.40 $43.40 $44.71 5 $44.34 $7,685.60 $92,227.20 $45.68 $7,917.87 $95,014.40 $45.68 $7,917.87 $95,014.40 $47.06 $8,157.07 $97,884.80 6 $45.44 $46.81 $46.81 $48.22 7 $46.58 $47.98 $47.98 $49.42 262 non-exempt Resource Planner 1 $47.19 $48.61 $48.61 $50.07 2 $49.67 $51.17 $51.17 $52.71 3 $52.28 $53.86 $53.86 $55.48 4 $55.03 $56.69 $56.69 $58.40 5 $57.93 $10,041.20 $120,494.40 $59.67 $10,342.80 $124,113.60 $59.67 $10,342.80 $124,113.60 $61.47 $10,654.80 $127,857.60 366 non-exempt Restoration Lead 1 $33.39 $34.98 $35.60 $36.67 2 $35.15 $36.82 $37.47 $38.60 3 $37.00 $38.76 $39.44 $40.63 4 $38.95 $40.80 $41.52 $42.77 5 $41.00 $7,106.67 $85,280.00 $42.95 $7,444.67 $89,336.00 $43.70 $7,574.67 $90,896.00 $45.02 $7,803.47 $93,641.60 366 non-exempt Restoration Lead 1 $33.71 $35.60 $36.55 $37.64 2 $35.48 $37.47 $38.47 $39.62 3 $37.35 $39.44 $40.49 $41.71 4 $39.32 $41.52 $42.62 $43.90 5 $41.39 $7,174.27 $86,091.20 $43.71 $7,576.40 $90,916.80 $44.86 $7,775.73 $93,308.80 $46.21 $8,009.73 $96,116.80 554 non-exempt SCADA Technologist 1 $47.94 $50.69 $52.08 $53.66 2 $50.46 $53.36 $54.82 $56.48 3 $53.12 $56.17 $57.71 $59.45 4 $55.92 $59.13 $60.75 $62.58 5 $58.86 $10,202.40 $122,428.80 $62.24 $10,788.27 $129,459.20 $63.95 $11,084.67 $133,016.00 $65.87 $11,417.47 $137,009.60 385 non-exempt Senior Fleet Services Coordinator 1 $33.27 $34.27 $34.27 $35.29 2 $35.02 $36.07 $36.07 $37.15 3 $36.86 $37.97 $37.97 $39.11 4 $38.80 $39.97 $39.97 $41.17 5 $40.84 $7,078.93 $84,947.20 $42.07 $7,292.13 $87,505.60 $42.07 $7,292.13 $87,505.60 $43.34 $7,512.27 $90,147.20 461 non-exempt Sprinkler Sys Repr 1 $26.14 $27.00 $27.08 $27.89 2 $27.52 $28.42 $28.51 $29.36 3 $28.97 $29.92 $30.01 $30.91 4 $30.49 $31.49 $31.59 $32.54 5 $32.09 $5,562.27 $66,747.20 $33.15 $5,746.00 $68,952.00 $33.25 $5,763.33 $69,160.00 $34.25 $5,936.67 $71,240.00 360 non-exempt Sr Buyer 1 $34.87 $35.93 $35.93 $37.02 2 $36.70 $37.82 $37.82 $38.97 3 $38.63 $39.81 $39.81 $41.02 4 $40.66 $41.90 $41.91 $43.18 5 $42.80 $7,418.67 $89,024.00 $44.10 $7,644.00 $91,728.00 $44.12 $7,647.47 $91,769.60 $45.45 $7,878.00 $94,536.00 3600 non-exempt Sr Buyer - S 1 $34.87 $35.93 $35.93 $37.02 2 $36.70 $37.82 $37.82 $38.97 3 $38.63 $39.81 $39.81 $41.02 4 $40.66 $41.90 $41.91 $43.18 5 $42.80 $7,418.67 $89,024.00 $44.10 $7,644.00 $91,728.00 $44.12 $7,647.47 $91,769.60 $45.45 $7,878.00 $94,536.00 224 non-exempt Sr Chemist 1 $39.02 $40.20 $40.23 $41.45 2 $41.07 $42.32 $42.35 $43.63 3 $43.23 $44.55 $44.58 $45.93 4 $45.50 $46.89 $46.93 $48.35 5 $47.89 $8,300.93 $99,611.20 $49.36 $8,555.73 $102,668.80 $49.40 $8,562.67 $102,752.00 $50.89 $8,820.93 $105,851.20 16 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 544 non-exempt Sr Industrial Waste Investigator 1 $38.05 $39.75 $40.33 $41.53 2 $40.05 $41.84 $42.45 $43.72 3 $42.16 $44.04 $44.68 $46.02 4 $44.38 $46.36 $47.03 $48.44 5 $46.72 $8,098.13 $97,177.60 $48.80 $8,458.67 $101,504.00 $49.50 $8,580.00 $102,960.00 $50.99 $8,838.27 $106,059.20 512 non-exempt Sr Instrum Elect 1 $37.31 $38.85 $39.27 $40.46 2 $39.27 $40.89 $41.34 $42.59 3 $41.34 $43.04 $43.52 $44.83 4 $43.52 $45.31 $45.81 $47.19 5 $45.81 $7,940.40 $95,284.80 $47.69 $8,266.27 $99,195.20 $48.22 $8,358.13 $100,297.60 $49.67 $8,609.47 $103,313.60 251 non-exempt Sr Librarian 1 $30.48 $31.57 $31.75 $32.70 2 $32.08 $33.23 $33.42 $34.42 3 $33.77 $34.98 $35.18 $36.23 4 $35.55 $36.82 $37.03 $38.14 5 $37.42 $6,486.13 $77,833.60 $38.76 $6,718.40 $80,620.80 $38.98 $6,756.53 $81,078.40 $40.15 $6,959.33 $83,512.00 504 non-exempt Sr Mech 1 $37.13 $38.24 $38.24 $39.39 2 $39.08 $40.25 $40.25 $41.46 3 $41.14 $42.37 $42.37 $43.64 4 $43.30 $44.60 $44.60 $45.94 5 $45.58 $7,900.53 $94,806.40 $46.95 $8,138.00 $97,656.00 $46.95 $8,138.00 $97,656.00 $48.36 $8,382.40 $100,588.80 504 non-exempt Sr. Mech 1 $37.13 $38.24 $39.03 $40.20 2 $39.08 $40.25 $41.08 $42.32 3 $41.14 $42.37 $43.24 $44.55 4 $43.30 $44.60 $45.52 $46.89 5 $45.58 $7,900.53 $94,806.40 $46.95 $8,138.00 $97,656.00 $47.92 $8,306.13 $99,673.60 $49.36 $8,555.73 $102,668.80 361 non-exempt Sr Mkt Analyst 1 $43.30 $44.60 $44.60 $45.94 2 $45.58 $46.95 $46.95 $48.36 3 $47.98 $49.42 $49.42 $50.91 4 $50.50 $52.02 $52.02 $53.59 5 $53.16 $9,214.40 $110,572.80 $54.76 $9,491.73 $113,900.80 $54.76 $9,491.73 $113,900.80 $56.41 $9,777.73 $117,332.80 3610 non-exempt Sr Mkt Analyst - S 1 $43.30 $44.60 $44.60 $45.94 2 $45.58 $46.95 $46.95 $48.36 3 $47.98 $49.42 $49.42 $50.91 4 $50.50 $52.02 $52.02 $53.59 5 $53.16 $9,214.40 $110,572.80 $54.76 $54.76 $56.41 506 non-exempt Sr Operator Wqc 1 $39.40 $40.58 $40.58 $41.80 2 $41.47 $42.72 $42.72 $44.00 3 $43.65 $44.97 $44.97 $46.32 4 $45.95 $47.34 $47.34 $48.76 5 $48.37 $8,384.13 $100,609.60 $49.83 $8,637.20 $103,646.40 $49.83 $8,637.20 $103,646.40 $51.33 $8,897.20 $106,766.40 318 non-exempt Sr Planner 1 $44.39 $46.05 $46.37 $47.76 2 $46.73 $48.47 $48.81 $50.27 3 $49.19 $51.02 $51.38 $52.92 4 $51.78 $53.70 $54.08 $55.71 5 $54.51 $9,448.40 $113,380.80 $56.53 $9,798.53 $117,582.40 $56.93 $9,867.87 $118,414.40 $58.64 $10,164.27 $121,971.20 389 non-exempt Sr Ranger 1 $31.85 $32.81 $32.81 $33.80 2 $33.53 $34.54 $34.54 $35.58 3 $35.29 $36.36 $36.36 $37.45 4 $37.15 $38.27 $38.27 $39.42 5 $39.10 $6,777.33 $81,328.00 $40.28 $6,981.87 $83,782.40 $40.28 $6,981.87 $83,782.40 $41.49 $7,191.60 $86,299.20 17 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 261 non-exempt Sr Util Field Svc Rep 1 $36.49 $38.58 $39.64 $40.84 2 $38.41 $40.61 $41.73 $42.99 3 $40.43 $42.75 $43.93 $45.25 4 $42.56 $45.00 $46.24 $47.63 5 $44.80 $7,765.33 $93,184.00 $47.37 $8,210.80 $98,529.60 $48.67 $8,436.13 $101,233.60 $50.14 $8,690.93 $104,291.20 501 non-exempt Sr Water Sys Oper 1 $37.55 $38.68 $38.68 $39.84 2 $39.53 $40.72 $40.72 $41.94 3 $41.61 $42.86 $42.86 $44.15 4 $43.80 $45.12 $45.12 $46.47 5 $46.10 $7,990.67 $95,888.00 $47.49 $8,231.60 $98,779.20 $47.49 $8,231.60 $98,779.20 $48.92 $8,479.47 $101,753.60 405 non-exempt St Maint Asst 1 $23.72 $24.84 $25.28 $26.04 2 $24.97 $26.15 $26.61 $27.41 3 $26.28 $27.53 $28.01 $28.85 4 $27.66 $28.98 $29.48 $30.37 5 $29.12 $5,047.47 $60,569.60 $30.50 $5,286.67 $63,440.00 $31.03 $5,378.53 $64,542.40 $31.97 $5,541.47 $66,497.60 392 non-exempt St Sweeper Op 1 $27.76 $29.32 $30.08 $30.98 2 $29.22 $30.86 $31.66 $32.61 3 $30.76 $32.48 $33.33 $34.33 4 $32.38 $34.19 $35.08 $36.14 5 $34.08 $5,907.20 $70,886.40 $35.99 $6,238.27 $74,859.20 $36.93 $6,401.20 $76,814.40 $38.04 $6,593.60 $79,123.20 248 non-exempt Storekeeper 1 $25.45 $26.21 $26.21 $27.00 2 $26.79 $27.59 $27.59 $28.42 3 $28.20 $29.04 $29.04 $29.92 4 $29.68 $30.57 $30.57 $31.49 5 $31.24 $5,414.93 $64,979.20 $32.18 $5,577.87 $66,934.40 $32.18 $5,577.87 $66,934.40 $33.15 $5,746.00 $68,952.00 288 non-exempt Storekeeper-L 1 $27.23 $28.05 $28.05 $28.90 2 $28.66 $29.53 $29.53 $30.42 3 $30.17 $31.08 $31.08 $32.02 4 $31.76 $32.72 $32.72 $33.71 5 $33.43 $5,794.53 $69,534.40 $34.44 $5,969.60 $71,635.20 $34.44 $5,969.60 $71,635.20 $35.48 $6,149.87 $73,798.40 545 non-exempt Street Light, Traffic Signal and Fiber – Apprentice 1 $36.54 $38.19 $38.78 $39.95 2 $38.46 $40.20 $40.82 $42.05 3 $40.48 $42.32 $42.97 $44.26 4 $42.61 $44.55 $45.23 $46.59 5 $44.85 $7,774.00 $93,288.00 $46.89 $8,127.60 $97,531.20 $47.61 $8,252.40 $99,028.80 $49.04 $8,500.27 $102,003.20 547 non-exempt Street Light, Traffic Signal and Fiber – Lead 1 $41.31 $43.19 $43.85 $45.18 2 $43.48 $45.46 $46.16 $47.56 3 $45.77 $47.85 $48.59 $50.06 4 $48.18 $50.37 $51.15 $52.69 5 $50.72 $8,791.47 $105,497.60 $53.02 $9,190.13 $110,281.60 $53.84 $9,332.27 $111,987.20 $55.46 $9,613.07 $115,356.80 546 non-exempt Street Light, Traffic Signal and Fiber Technician 1 $38.61 $40.36 $40.97 $42.21 2 $40.64 $42.48 $43.13 $44.43 3 $42.78 $44.72 $45.40 $46.77 4 $45.03 $47.07 $47.79 $49.23 5 $47.40 $8,216.00 $98,592.00 $49.55 $8,588.67 $103,064.00 $50.31 $8,720.40 $104,644.80 $51.82 $8,982.13 $107,785.60 549 non-exempt Substation Electrician 1 $42.11 $44.03 $44.71 $46.05 2 $44.33 $46.35 $47.06 $48.47 3 $46.66 $48.79 $49.54 $51.02 4 $49.12 $51.36 $52.15 $53.71 5 $51.71 $8,963.07 $107,556.80 $54.06 $9,370.40 $112,444.80 $54.89 $9,514.27 $114,171.20 $56.54 $9,800.27 $117,603.20 18 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 548 non-exempt Substation Electrician - Apprentice 1 $39.87 $41.68 $42.32 $43.60 2 $41.97 $43.87 $44.55 $45.89 3 $44.18 $46.18 $46.89 $48.30 4 $46.50 $48.61 $49.36 $50.84 5 $48.95 $8,484.67 $101,816.00 $51.17 $8,869.47 $106,433.60 $51.96 $9,006.40 $108,076.80 $53.52 $9,276.80 $111,321.60 550 non-exempt Substation Electrician - Lead 1 $45.06 $47.11 $47.83 $49.29 2 $47.43 $49.59 $50.35 $51.88 3 $49.93 $52.20 $53.00 $54.61 4 $52.56 $54.95 $55.79 $57.48 5 $55.33 $9,590.53 $115,086.40 $57.84 $10,025.60 $120,307.20 $58.73 $10,179.87 $122,158.40 $60.50 $10,486.67 $125,840.00 326 non-exempt Surveying Asst 1 $32.06 $33.53 $34.06 $35.09 2 $33.75 $35.29 $35.85 $36.94 3 $35.53 $37.15 $37.74 $38.88 4 $37.40 $39.11 $39.73 $40.93 5 $39.37 $6,824.13 $81,889.60 $41.17 $7,136.13 $85,633.60 $41.82 $7,248.80 $86,985.60 $43.08 $7,467.20 $89,606.40 325 non-exempt Surveyor, Public Wks 1 $34.89 $36.48 $37.07 $38.18 2 $36.73 $38.40 $39.02 $40.19 3 $38.66 $40.42 $41.07 $42.30 4 $40.69 $42.55 $43.23 $44.53 5 $42.83 $7,423.87 $89,086.40 $44.79 $7,763.60 $93,163.20 $45.50 $7,886.67 $94,640.00 $46.87 $8,124.13 $97,489.60 362 non-exempt Technologist 1 $48.82 $51.62 $53.04 $54.63 2 $51.39 $54.34 $55.83 $57.51 3 $54.09 $57.20 $58.77 $60.54 4 $56.94 $60.21 $61.86 $63.73 5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40 3620 non-exempt Technologist - S 1 $48.82 $51.62 $53.04 $54.63 2 $51.39 $54.34 $55.83 $57.51 3 $54.09 $57.20 $58.77 $60.54 4 $56.94 $60.21 $61.86 $63.73 5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40 229 non-exempt Theater Specialist 1 $34.65 $36.01 $36.33 $37.42 2 $36.47 $37.90 $38.24 $39.39 3 $38.39 $39.89 $40.25 $41.46 4 $40.41 $41.99 $42.37 $43.64 5 $42.54 $7,373.60 $88,483.20 $44.20 $7,661.33 $91,936.00 $44.60 $7,730.67 $92,768.00 $45.94 $7,962.93 $95,555.20 406 non-exempt Traf Cont Maint I 1 $27.76 $29.08 $29.58 $30.47 2 $29.22 $30.61 $31.14 $32.07 3 $30.76 $32.22 $32.78 $33.76 4 $32.38 $33.92 $34.50 $35.54 5 $34.08 $5,907.20 $70,886.40 $35.70 $6,188.00 $74,256.00 $36.32 $6,295.47 $75,545.60 $37.41 $6,484.40 $77,812.80 412 non-exempt Traf Cont Maint Ii 1 $25.70 $26.92 $27.39 $28.22 2 $27.05 $28.34 $28.83 $29.70 3 $28.47 $29.83 $30.35 $31.26 4 $29.97 $31.40 $31.95 $32.91 5 $31.55 $5,468.67 $65,624.00 $33.05 $5,728.67 $68,744.00 $33.63 $5,829.20 $69,950.40 $34.64 $6,004.27 $72,051.20 407 non-exempt Traf Cont Maint-L 1 $29.70 $31.11 $31.65 $32.60 2 $31.26 $32.75 $33.32 $34.32 3 $32.91 $34.47 $35.07 $36.13 4 $34.64 $36.28 $36.92 $38.03 5 $36.46 $6,319.73 $75,836.80 $38.19 $6,619.60 $79,435.20 $38.86 $6,735.73 $80,828.80 $40.03 $6,938.53 $83,262.40 19 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 575 non-exempt Traffic Engineering Lead 1 $49.43 $51.15 $51.39 $52.93 2 $52.03 $53.84 $54.09 $55.72 3 $54.77 $56.67 $56.94 $58.65 4 $57.65 $59.65 $59.94 $61.74 5 $60.68 $10,517.87 $126,214.40 $62.79 $10,883.60 $130,603.20 $63.09 $10,935.60 $131,227.20 $64.99 $11,264.93 $135,179.20 435 non-exempt Tree Maint Asst 1 $24.80 $25.77 $26.01 $26.81 2 $26.10 $27.13 $27.38 $28.22 3 $27.47 $28.56 $28.82 $29.70 4 $28.92 $30.06 $30.34 $31.26 5 $30.44 $5,276.27 $63,315.20 $31.64 $5,484.27 $65,811.20 $31.94 $5,536.27 $66,435.20 $32.90 $5,702.67 $68,432.00 434 non-exempt Tree Maintenance Specialist 1 $28.93 $30.07 $30.36 $31.27 2 $30.45 $31.65 $31.96 $32.92 3 $32.05 $33.32 $33.64 $34.65 4 $33.74 $35.07 $35.41 $36.47 5 $35.52 $6,156.80 $73,881.60 $36.92 $6,399.47 $76,793.60 $37.27 $6,460.13 $77,521.60 $38.39 $6,654.27 $79,851.20 430 non-exempt Tree Trim/Ln Clr 1 $28.48 $29.60 $29.89 $30.78 2 $29.98 $31.16 $31.46 $32.40 3 $31.56 $32.80 $33.12 $34.11 4 $33.22 $34.53 $34.86 $35.91 5 $34.97 $6,061.47 $72,737.60 $36.35 $6,300.67 $75,608.00 $36.69 $6,359.60 $76,315.20 $37.80 $6,552.00 $78,624.00 431 non-exempt Tree Trim/Ln Clr-L 1 $30.46 $31.67 $31.98 $32.94 2 $32.06 $33.34 $33.66 $34.67 3 $33.75 $35.09 $35.43 $36.49 4 $35.53 $36.94 $37.29 $38.41 5 $37.40 $6,482.67 $77,792.00 $38.88 $6,739.20 $80,870.40 $39.25 $6,803.33 $81,640.00 $40.43 $7,007.87 $84,094.40 432 non-exempt Tree Trm/Ln Clr Asst 1 $26.84 $27.90 $28.17 $29.01 2 $28.25 $29.37 $29.65 $30.54 3 $29.74 $30.92 $31.21 $32.15 4 $31.31 $32.55 $32.85 $33.84 5 $32.96 $5,713.07 $68,556.80 $34.26 $5,938.40 $71,260.80 $34.58 $5,993.87 $71,926.40 $35.62 $6,174.13 $74,089.60 223 non-exempt Util Acctg Tech 1 $26.41 $27.20 $27.20 $28.03 2 $27.80 $28.63 $28.63 $29.51 3 $29.26 $30.14 $30.14 $31.06 4 $30.80 $31.73 $31.73 $32.69 5 $32.42 $5,619.47 $67,433.60 $33.40 $5,789.33 $69,472.00 $33.40 $5,789.33 $69,472.00 $34.41 $5,964.40 $71,572.80 272 non-exempt Util Comp Tech 1 $41.31 $43.19 $43.85 $45.18 2 $43.48 $45.46 $46.16 $47.56 3 $45.77 $47.85 $48.59 $50.06 4 $48.18 $50.37 $51.15 $52.69 5 $50.72 $8,791.47 $105,497.60 $53.02 $9,190.13 $110,281.60 $53.84 $9,332.27 $111,987.20 $55.46 $9,613.07 $115,356.80 273 non-exempt Util Comp Tech-L 1 $44.19 $46.20 $46.90 $48.31 2 $46.52 $48.63 $49.37 $50.85 3 $48.97 $51.19 $51.97 $53.53 4 $51.55 $53.88 $54.71 $56.35 5 $54.26 $9,405.07 $112,860.80 $56.72 $9,831.47 $117,977.60 $57.59 $9,982.27 $119,787.20 $59.32 $10,282.13 $123,385.60 219 non-exempt Util Credit/Col Spec 1 $31.47 $32.40 $32.40 $33.38 2 $33.13 $34.11 $34.11 $35.14 3 $34.87 $35.91 $35.91 $36.99 4 $36.70 $37.80 $37.80 $38.94 5 $38.63 $6,695.87 $80,350.40 $39.79 $6,896.93 $82,763.20 $39.79 $6,896.93 $82,763.20 $40.99 $7,104.93 $85,259.20 20 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 310 non-exempt Util Engr Estimator 1 $41.03 $42.45 $42.66 $43.95 2 $43.19 $44.68 $44.90 $46.26 3 $45.46 $47.03 $47.26 $48.69 4 $47.85 $49.51 $49.75 $51.25 5 $50.37 $8,730.80 $104,769.60 $52.12 $9,034.13 $108,409.60 $52.37 $9,077.47 $108,929.60 $53.95 $9,351.33 $112,216.00 486 non-exempt Util Fld Svcs Rep 1 $34.12 $36.09 $37.08 $38.19 2 $35.92 $37.99 $39.03 $40.20 3 $37.81 $39.99 $41.08 $42.32 4 $39.80 $42.09 $43.24 $44.55 5 $41.89 $7,260.93 $87,131.20 $44.30 $7,678.67 $92,144.00 $45.52 $7,890.13 $94,681.60 $46.89 $8,127.60 $97,531.20 480 non-exempt Util Install/Rep 1 $33.27 $35.18 $36.15 $37.24 2 $35.02 $37.03 $38.05 $39.20 3 $36.86 $38.98 $40.05 $41.26 4 $38.80 $41.03 $42.16 $43.43 5 $40.84 $7,078.93 $84,947.20 $43.19 $7,486.27 $89,835.20 $44.38 $7,692.53 $92,310.40 $45.72 $7,924.80 $95,097.60 481 non-exempt Util Install/Rep Ast 1 $28.22 $29.84 $30.66 $31.58 2 $29.70 $31.41 $32.27 $33.24 3 $31.26 $33.06 $33.97 $34.99 4 $32.91 $34.80 $35.76 $36.83 5 $34.64 $6,004.27 $72,051.20 $36.63 $6,349.20 $76,190.40 $37.64 $6,524.27 $78,291.20 $38.77 $6,720.13 $80,641.60 479 non-exempt Util Install/Rep-L 1 $36.31 $38.39 $39.44 $40.64 2 $38.22 $40.41 $41.52 $42.78 3 $40.23 $42.54 $43.71 $45.03 4 $42.35 $44.78 $46.01 $47.40 5 $44.58 $7,727.20 $92,726.40 $47.14 $8,170.93 $98,051.20 $48.43 $8,394.53 $100,734.40 $49.89 $8,647.60 $103,771.20 363 non-exempt Util Key Acct Rep 1 $40.16 $41.35 $41.35 $42.61 2 $42.27 $43.53 $43.53 $44.85 3 $44.49 $45.82 $45.82 $47.21 4 $46.83 $48.23 $48.23 $49.69 5 $49.29 $8,543.60 $102,523.20 $50.77 $8,800.13 $105,601.60 $50.77 $8,800.13 $105,601.60 $52.30 $9,065.33 $108,784.00 3630 non-exempt Util Key Acct Rep -S 1 $40.16 $41.35 $41.35 $42.61 2 $42.27 $43.53 $43.53 $44.85 3 $44.49 $45.82 $45.82 $47.21 4 $46.83 $48.23 $48.23 $49.69 5 $49.29 $8,543.60 $102,523.20 $50.77 $8,800.13 $105,601.60 $50.77 $8,800.13 $105,601.60 $52.30 $9,065.33 $108,784.00 271 non-exempt Util Locator 1 $31.32 $33.13 $34.03 $35.06 2 $32.97 $34.87 $35.82 $36.91 3 $34.70 $36.70 $37.71 $38.85 4 $36.53 $38.63 $39.69 $40.89 5 $38.45 $6,664.67 $79,976.00 $40.66 $7,047.73 $84,572.80 $41.78 $7,241.87 $86,902.40 $43.04 $7,460.27 $89,523.20 215 non-exempt Util Marketing Program Admin 1 $38.15 $39.29 $39.29 $40.48 2 $40.16 $41.36 $41.36 $42.61 3 $42.27 $43.54 $43.54 $44.85 4 $44.49 $45.83 $45.83 $47.21 5 $46.83 $8,117.20 $97,406.40 $48.24 $8,361.60 $100,339.20 $48.24 $8,361.60 $100,339.20 $49.69 $8,612.93 $103,355.20 233 non-exempt Util Rate Analyst 1 $36.77 $37.88 $37.88 $39.02 2 $38.71 $39.87 $39.87 $41.07 3 $40.75 $41.97 $41.97 $43.23 4 $42.89 $44.18 $44.18 $45.51 5 $45.15 $7,826.00 $93,912.00 $46.51 $8,061.73 $96,740.80 $46.51 $8,061.73 $96,740.80 $47.91 $8,304.40 $99,652.80 21 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 307 non-exempt Util Syst Oper 1 $47.94 $50.11 $50.89 $52.42 2 $50.46 $52.75 $53.57 $55.18 3 $53.12 $55.53 $56.39 $58.08 4 $55.92 $58.45 $59.36 $61.14 5 $58.86 $10,202.40 $122,428.80 $61.53 $10,665.20 $127,982.40 $62.48 $10,829.87 $129,958.40 $64.36 $11,155.73 $133,868.80 TBD non-exempt Util Syst Oper Apprentice 1 $45.54 $47.60 $48.35 $49.80 2 $47.94 $50.11 $50.89 $52.42 3 $50.46 $52.75 $53.57 $55.18 4 $53.12 $55.53 $56.39 $58.08 5 $55.92 $9,692.80 $116,313.60 $58.45 $10,131.33 $121,576.00 $59.36 $10,289.07 $123,468.80 $61.14 $10,597.60 $127,171.20 284 non-exempt Utilities Engineer Estimator Lead 1 $43.90 $45.41 $45.64 $47.02 2 $46.21 $47.80 $48.04 $49.49 3 $48.64 $50.32 $50.57 $52.09 4 $51.20 $52.97 $53.23 $54.83 5 $53.89 $9,340.93 $112,091.20 $55.76 $9,665.07 $115,980.80 $56.03 $9,711.87 $116,542.40 $57.72 $10,004.80 $120,057.60 290 non-exempt Utl Install Repair Lead-Welding Cert 1 $37.15 $39.29 $40.37 $41.59 2 $39.11 $41.36 $42.49 $43.78 3 $41.17 $43.54 $44.73 $46.08 4 $43.34 $45.83 $47.08 $48.50 5 $45.62 $7,907.47 $94,889.60 $48.24 $8,361.60 $100,339.20 $49.56 $8,590.40 $103,084.80 $51.05 $8,848.67 $106,184.00 289 non-exempt Utl Install Repair-Welding Cert 1 $34.58 $36.58 $37.57 $38.70 2 $36.40 $38.50 $39.55 $40.74 3 $38.32 $40.53 $41.63 $42.88 4 $40.34 $42.66 $43.82 $45.14 5 $42.46 $7,359.73 $88,316.80 $44.90 $7,782.67 $93,392.00 $46.13 $7,995.87 $95,950.40 $47.52 $8,236.80 $98,841.60 278 non-exempt Veterinarian Tech 1 $25.18 $26.03 $26.12 $26.90 2 $26.51 $27.40 $27.49 $28.32 3 $27.91 $28.84 $28.94 $29.81 4 $29.38 $30.36 $30.46 $31.38 5 $30.93 $5,361.20 $64,334.40 $31.96 $5,539.73 $66,476.80 $32.06 $5,557.07 $66,684.80 $33.03 $5,725.20 $68,702.40 274 non-exempt Volunteer Coord 1 $29.41 $30.55 $30.83 $31.76 2 $30.96 $32.16 $32.45 $33.43 3 $32.59 $33.85 $34.16 $35.19 4 $34.30 $35.63 $35.96 $37.04 5 $36.10 $6,257.33 $75,088.00 $37.51 $6,501.73 $78,020.80 $37.85 $6,560.67 $78,728.00 $38.99 $6,758.27 $81,099.20 482 non-exempt Water Meter Rep Asst 1 $24.06 $25.18 $25.57 $26.34 2 $25.33 $26.50 $26.92 $27.73 3 $26.66 $27.89 $28.34 $29.19 4 $28.06 $29.36 $29.83 $30.73 5 $29.54 $5,120.27 $61,443.20 $30.90 $5,356.00 $64,272.00 $31.40 $5,442.67 $65,312.00 $32.35 $5,607.33 $67,288.00 484 non-exempt Water Meter Repair 1 $26.65 $27.88 $28.33 $29.18 2 $28.05 $29.35 $29.82 $30.72 3 $29.53 $30.89 $31.39 $32.34 4 $31.08 $32.52 $33.04 $34.04 5 $32.72 $5,671.47 $68,057.60 $34.23 $5,933.20 $71,198.40 $34.78 $6,028.53 $72,342.40 $35.83 $6,210.53 $74,526.40 499 non-exempt Water Sys Oper I 1 $28.98 $29.86 $29.86 $30.75 2 $30.50 $31.43 $31.43 $32.37 3 $32.11 $33.08 $33.08 $34.07 4 $33.80 $34.82 $34.82 $35.86 5 $35.58 $6,167.20 $74,006.40 $36.65 $6,352.67 $76,232.00 $36.65 $6,352.67 $76,232.00 $37.75 $6,543.33 $78,520.00 22 Exhibit 3 Appendix A -2 To MOA Between City of Palo Alto and SEIU FY16/FY17 Salary Schedule Job Code FLSA Job Title Steps Salary Effective 4/16/2016 (PP09:2016) Salary Effective 12/10/2016 (PP26:2016) Salary Effective 7/08/2017 (PP15:2017) Salary Effective 12/9/2017 (PP26:2017) Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 507 non-exempt Water Sys Oper II 1 $33.12 $34.11 $34.11 $35.12 2 $34.86 $35.90 $35.90 $36.97 3 $36.69 $37.79 $37.79 $38.92 4 $38.62 $39.78 $39.78 $40.97 5 $40.65 $7,046.00 $84,552.00 $41.87 $7,257.47 $87,089.60 $41.87 $7,257.47 $87,089.60 $43.13 $7,475.87 $89,710.40 500 non-exempt WQC Plt Oper I 1 $30.41 $31.32 $31.32 $32.26 2 $32.01 $32.97 $32.97 $33.96 3 $33.69 $34.70 $34.70 $35.75 4 $35.46 $36.53 $36.53 $37.63 5 $37.33 $6,470.53 $77,646.40 $38.45 $6,664.67 $79,976.00 $38.45 $6,664.67 $79,976.00 $39.61 $6,865.73 $82,388.80 509 non-exempt WQC Plt Oper II 1 $34.74 $35.78 $35.78 $36.86 2 $36.57 $37.66 $37.66 $38.80 3 $38.49 $39.64 $39.64 $40.84 4 $40.52 $41.73 $41.73 $42.99 5 $42.65 $7,392.67 $88,712.00 $43.93 $7,614.53 $91,374.40 $43.93 $7,614.53 $91,374.40 $45.25 $7,843.33 $94,120.00 510 non-exempt WQC Plt Oper Trn 1 $26.77 $27.57 $27.57 $28.41 2 $28.18 $29.02 $29.02 $29.90 3 $29.66 $30.55 $30.55 $31.47 4 $31.22 $32.16 $32.16 $33.13 5 $32.86 $5,695.73 $68,348.80 $33.85 $5,867.33 $70,408.00 $33.85 $5,867.33 $70,408.00 $34.87 $6,044.13 $72,529.60 226 non-exempt Wtr Mtr Crs Cn Tec 1 $27.34 $28.60 $29.07 $29.93 2 $28.78 $30.10 $30.60 $31.51 3 $30.29 $31.68 $32.21 $33.17 4 $31.88 $33.35 $33.90 $34.92 5 $33.56 $5,817.07 $69,804.80 $35.11 $6,085.73 $73,028.80 $35.68 $6,184.53 $74,214.40 $36.76 $6,371.73 $76,460.80 23 Exhibit 4 SEIU Hourly Salary Schedule effective on 01/01/2016 Job Code FLSA Job Title Salary Effective upon MOA Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 9000 Non-exempt Administrative Specialist I – H Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 9001 Non-exempt Administrative Specialist II - H Step 1 $25.52 Step 1 $26.03 Step 1 $26.03 Step 1 $26.55 Step 2 $26.86 Step 2 $27.40 Step 2 $27.40 Step 2 $27.95 Step 3 $28.27 Step 3 $28.84 Step 3 $28.84 Step 3 $29.42 Step 4 $29.76 Step 4 $30.36 Step 4 $30.36 Step 4 $30.97 Step 5 $31.33 Step 5 $31.96 Step 5 $31.96 Step 5 $32.60 9002 Non-exempt Assistant Park Ranger - H Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 9003 Non-exempt Building Service Person - H Step 1 $19.74 Step 1 $20.13 Step 1 $20.13 Step 1 $20.54 Step 2 $20.78 Step 2 $21.19 Step 2 $21.19 Step 2 $21.62 Step 3 $21.87 Step 3 $22.31 Step 3 $22.31 Step 3 $22.76 Step 4 $23.02 Step 4 $23.48 Step 4 $23.48 Step 4 $23.96 Step 5 $24.23 Step 5 $24.72 Step 5 $24.72 Step 5 $25.22 9004 Non-exempt Clerical Assistant - H Step 1 $17.31 Step 1 $17.66 Step 1 $17.66 Step 1 $18.01 Step 2 $18.22 Step 2 $18.59 Step 2 $18.59 Step 2 $18.96 Step 3 $19.18 Step 3 $19.57 Step 3 $19.57 Step 3 $19.96 Step 4 $20.19 Step 4 $20.60 Step 4 $20.60 Step 4 $21.01 Step 5 $21.25 Step 5 $21.68 Step 5 $21.68 Step 5 $22.12 Exhibit 4 SEIU Hourly Salary Schedule effective on 01/01/2016 Job Code FLSA Job Title Salary Effective upon MOA Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 9005 Non-exempt Custodial Aide - H Step 1 $13.98 Step 1 $14.27 Step 1 $14.27 Step 1 $14.56 Step 2 $14.72 Step 2 $15.02 Step 2 $15.02 Step 2 $15.33 Step 3 $15.49 Step 3 $15.81 Step 3 $15.81 Step 3 $16.14 Step 4 $16.31 Step 4 $16.64 Step 4 $16.64 Step 4 $16.99 Step 5 $17.17 Step 5 $17.52 Step 5 $17.52 Step 5 $17.88 9006 Non-exempt Custodial Assistant - H Step 1 $16.36 Step 1 $16.70 Step 1 $16.70 Step 1 $17.03 Step 2 $17.22 Step 2 $17.58 Step 2 $17.58 Step 2 $17.93 Step 3 $18.13 Step 3 $18.50 Step 3 $18.50 Step 3 $18.87 Step 4 $19.08 Step 4 $19.47 Step 4 $19.47 Step 4 $19.86 Step 5 $20.08 Step 5 $20.49 Step 5 $20.49 Step 5 $20.90 9007 Non-exempt House Manager - H Step 1 $16.08 Step 1 $16.41 Step 1 $16.41 Step 1 $16.74 Step 2 $16.93 Step 2 $17.27 Step 2 $17.27 Step 2 $17.62 Step 3 $17.82 Step 3 $18.18 Step 3 $18.18 Step 3 $18.55 Step 4 $18.76 Step 4 $19.14 Step 4 $19.14 Step 4 $19.53 Step 5 $19.75 Step 5 $20.15 Step 5 $20.15 Step 5 $20.56 9008 Non-exempt Instructor Aide - H Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $11.24 Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $11.83 Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $12.45 Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $13.10 Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $13.79 9009 Non-exempt Instructor I - H Step 1 $20.20 Step 1 $20.62 Step 1 $20.62 Step 1 $21.02 Step 2 $21.26 Step 2 $21.70 Step 2 $21.70 Step 2 $22.13 Step 3 $22.38 Step 3 $22.84 Step 3 $22.84 Step 3 $23.29 Step 4 $23.56 Step 4 $24.04 Step 4 $24.04 Step 4 $24.52 Step 5 $24.80 Step 5 $25.30 Step 5 $25.30 Step 5 $25.81 Exhibit 4 SEIU Hourly Salary Schedule effective on 01/01/2016 Job Code FLSA Job Title Salary Effective upon MOA Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 9010 Non-exempt Instructor II - H Step 1 $24.61 Step 1 $25.10 Step 1 $25.10 Step 1 $25.60 Step 2 $25.90 Step 2 $26.42 Step 2 $26.42 Step 2 $26.95 Step 3 $27.26 Step 3 $27.81 Step 3 $27.81 Step 3 $28.37 Step 4 $28.69 Step 4 $29.27 Step 4 $29.27 Step 4 $29.86 Step 5 $30.20 Step 5 $30.81 Step 5 $30.81 Step 5 $31.43 9036 Non-exempt Instructor III-H Step 1 $28.31 Step 1 $28.89 Step 1 $28.89 Step 1 $29.46 Step 2 $29.80 Step 2 $30.41 Step 2 $30.41 Step 2 $31.01 Step 3 $31.37 Step 3 $32.01 Step 3 $32.01 Step 3 $32.64 Step 4 $33.02 Step 4 $33.69 Step 4 $33.69 Step 4 $34.36 Step 5 $34.76 Step 5 $35.46 Step 5 $35.46 Step 5 $36.17 9011 Non-exempt Librarian - H Step 1 $25.98 Step 1 $26.50 Step 1 $26.50 Step 1 $27.03 Step 2 $27.35 Step 2 $27.89 Step 2 $27.89 Step 2 $28.45 Step 3 $28.79 Step 3 $29.36 Step 3 $29.36 Step 3 $29.95 Step 4 $30.30 Step 4 $30.90 Step 4 $30.90 Step 4 $31.53 Step 5 $31.89 Step 5 $32.53 Step 5 $32.53 Step 5 $33.19 9012 Non-exempt Library Clerk - H Step 1 $19.33 Step 1 $19.73 Step 1 $19.73 Step 1 $20.13 Step 2 $20.35 Step 2 $20.77 Step 2 $20.77 Step 2 $21.19 Step 3 $21.42 Step 3 $21.86 Step 3 $21.86 Step 3 $22.30 Step 4 $22.55 Step 4 $23.01 Step 4 $23.01 Step 4 $23.47 Step 5 $23.74 Step 5 $24.22 Step 5 $24.22 Step 5 $24.71 9013 Non-exempt Library Page - H Step 1 $11.85 Step 1 $12.09 Step 1 $12.09 Step 1 $12.34 Step 2 $12.47 Step 2 $12.73 Step 2 $12.73 Step 2 $12.99 Step 3 $13.13 Step 3 $13.40 Step 3 $13.40 Step 3 $13.67 Step 4 $13.82 Step 4 $14.11 Step 4 $14.11 Step 4 $14.39 Step 5 $14.55 Step 5 $14.85 Step 5 $14.85 Step 5 $15.15 Exhibit 4 SEIU Hourly Salary Schedule effective on 01/01/2016 Job Code FLSA Job Title Salary Effective upon MOA Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 9014 Non-exempt Maintenance Assistant - H Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $16.20 Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $17.05 Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $17.95 Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $18.89 Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $19.88 9015 Non-exempt Open Space Technician - H Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $16.20 Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $17.05 Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $17.95 Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $18.89 Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $19.88 9016 Non-exempt Print Shop Assistant - H Step 1 $19.33 Step 1 $19.73 Step 1 $19.73 Step 1 $20.13 Step 2 $20.35 Step 2 $20.77 Step 2 $20.77 Step 2 $21.19 Step 3 $21.42 Step 3 $21.86 Step 3 $21.86 Step 3 $22.30 Step 4 $22.55 Step 4 $23.01 Step 4 $23.01 Step 4 $23.47 Step 5 $23.74 Step 5 $24.22 Step 5 $24.22 Step 5 $24.71 9017 Non-exempt Project Construction Inspector - H Step 1 $27.98 Step 1 $28.55 Step 1 $28.55 Step 1 $29.12 Step 2 $29.45 Step 2 $30.05 Step 2 $30.05 Step 2 $30.65 Step 3 $31.00 Step 3 $31.63 Step 3 $31.63 Step 3 $32.26 Step 4 $32.63 Step 4 $33.29 Step 4 $33.29 Step 4 $33.96 Step 5 $34.35 Step 5 $35.04 Step 5 $35.04 Step 5 $35.75 9018 Non-exempt Project Specialist - H Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Exhibit 4 SEIU Hourly Salary Schedule effective on 01/01/2016 Job Code FLSA Job Title Salary Effective upon MOA Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 9019 Non-exempt Recreation Aide - H Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $11.24 Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $11.83 Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $12.45 Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $13.10 Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $13.79 9020 Non-exempt Recreation Leader I - H Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $11.24 Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $11.83 Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $12.45 Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $13.10 Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $13.79 9021 Non-exempt Recreation Leader II - H Step 1 $13.12 Step 1 $13.39 Step 1 $13.39 Step 1 $13.64 Step 2 $13.81 Step 2 $14.09 Step 2 $14.09 Step 2 $14.36 Step 3 $14.54 Step 3 $14.83 Step 3 $14.83 Step 3 $15.12 Step 4 $15.30 Step 4 $15.61 Step 4 $15.61 Step 4 $15.92 Step 5 $16.10 Step 5 $16.43 Step 5 $16.43 Step 5 $16.76 9022 Non-exempt Recreation Leader III - H Step 1 $16.32 Step 1 $16.65 Step 1 $16.65 Step 1 $16.99 Step 2 $17.18 Step 2 $17.53 Step 2 $17.53 Step 2 $17.88 Step 3 $18.08 Step 3 $18.45 Step 3 $18.45 Step 3 $18.82 Step 4 $19.03 Step 4 $19.42 Step 4 $19.42 Step 4 $19.81 Step 5 $20.03 Step 5 $20.44 Step 5 $20.44 Step 5 $20.85 9023 Non-exempt Stock Clerk - H Step 1 $15.48 Step 1 $15.79 Step 1 $15.79 Step 1 $16.10 Step 2 $16.29 Step 2 $16.62 Step 2 $16.62 Step 2 $16.95 Step 3 $17.15 Step 3 $17.49 Step 3 $17.49 Step 3 $17.84 Step 4 $18.05 Step 4 $18.41 Step 4 $18.41 Step 4 $18.78 Step 5 $19.00 Step 5 $19.38 Step 5 $19.38 Step 5 $19.77 Exhibit 4 SEIU Hourly Salary Schedule effective on 01/01/2016 Job Code FLSA Job Title Salary Effective upon MOA Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 9024 Non-exempt Swim Instructor/Life Guard - H Step 1 $11.06 Step 1 $11.29 Step 1 $11.29 Step 1 $11.50 Step 2 $11.64 Step 2 $11.88 Step 2 $11.88 Step 2 $12.11 Step 3 $12.25 Step 3 $12.50 Step 3 $12.50 Step 3 $12.75 Step 4 $12.89 Step 4 $13.16 Step 4 $13.16 Step 4 $13.42 Step 5 $13.57 Step 5 $13.85 Step 5 $13.85 Step 5 $14.13 9025 Non-exempt Technical Specialist - H Step 1 $17.31 Step 1 $17.66 Step 1 $17.66 Step 1 $18.01 Step 2 $18.22 Step 2 $18.59 Step 2 $18.59 Step 2 $18.96 Step 3 $19.18 Step 3 $19.57 Step 3 $19.57 Step 3 $19.96 Step 4 $20.19 Step 4 $20.60 Step 4 $20.60 Step 4 $21.01 Step 5 $21.25 Step 5 $21.68 Step 5 $21.68 Step 5 $22.12 9026 Non-exempt Arts & Science Aide - H Step 1 $9.47 Step 1 $9.66 Step 1 $11.00 Step 1 $11.24 Step 2 $9.97 Step 2 $10.17 Step 2 $11.58 Step 2 $11.83 Step 3 $10.49 Step 3 $10.71 Step 3 $12.19 Step 3 $12.45 Step 4 $11.04 Step 4 $11.27 Step 4 $12.83 Step 4 $13.10 Step 5 $11.62 Step 5 $11.86 Step 5 $13.51 Step 5 $13.79 9027 Non-exempt Arts & Science Professional I - H Step 1 $20.20 Step 1 $20.62 Step 1 $20.62 Step 1 $21.02 Step 2 $21.26 Step 2 $21.70 Step 2 $21.70 Step 2 $22.13 Step 3 $22.38 Step 3 $22.84 Step 3 $22.84 Step 3 $23.29 Step 4 $23.56 Step 4 $24.04 Step 4 $24.04 Step 4 $24.52 Step 5 $24.80 Step 5 $25.30 Step 5 $25.30 Step 5 $25.81 9028 Non-exempt Arts & Science Professional II - H Step 1 $24.61 Step 1 $25.10 Step 1 $25.10 Step 1 $25.60 Step 2 $25.90 Step 2 $26.42 Step 2 $26.42 Step 2 $26.95 Step 3 $27.26 Step 3 $27.81 Step 3 $27.81 Step 3 $28.37 Step 4 $28.69 Step 4 $29.27 Step 4 $29.27 Step 4 $29.86 Step 5 $30.20 Step 5 $30.81 Step 5 $30.81 Step 5 $31.43 Exhibit 4 SEIU Hourly Salary Schedule effective on 01/01/2016 Job Code FLSA Job Title Salary Effective upon MOA Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 9037 Non-exempt Arts & Science Professional III - H Step 1 $28.31 Step 1 $28.89 Step 1 $28.89 Step 1 $29.46 Step 2 $29.80 Step 2 $30.41 Step 2 $30.41 Step 2 $31.01 Step 3 $31.37 Step 3 $32.01 Step 3 $32.01 Step 3 $32.64 Step 4 $33.02 Step 4 $33.69 Step 4 $33.69 Step 4 $34.36 Step 5 $34.76 Step 5 $35.46 Step 5 $35.46 Step 5 $36.17 9029 Non-exempt Arts & Science Technician - H Step 1 $14.35 Step 1 $14.64 Step 1 $14.64 Step 1 $14.92 Step 2 $15.10 Step 2 $15.41 Step 2 $15.41 Step 2 $15.71 Step 3 $15.89 Step 3 $16.22 Step 3 $16.22 Step 3 $16.54 Step 4 $16.73 Step 4 $17.07 Step 4 $17.07 Step 4 $17.41 Step 5 $17.61 Step 5 $17.97 Step 5 $17.97 Step 5 $18.33 9030 Non-exempt Zoological Assistant - H Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 9035 Non-exempt General Laborer - H Min $10 Max TBD Min $10 Max TBD Min $11 Max $60 Min $11 Max $60 9032 Non-exempt Inspector - H Min $10 Max TBD Min $10 Max TBD Min $11 Max $60 Min $11 Max $60 9033 Non-exempt Journey Level Laborer - H Min $10 Max TBD Min $10 Max TBD Min $11 Max $80 Min $11 Max $80 9034 Non-exempt Staff Specialist - H Min $10 Max TBD Min $10 Max TBD Min $11 Max $80 Min $11 Max $80 Exhibit 5 Limited Hourly 2014‐2017 Salary Schedule effective 01‐01‐2016 Job Code FLSA Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 910 Non-exempt Administrative Specialist I Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $ 22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $ 23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $ 24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $ 25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $ 27.31 913 Non-exempt Administrative Specialist II Step 1 $25.52 Step 1 $26.03 Step 1 $26.03 Step 1 $ 26.55 Step 2 $26.86 Step 2 $27.40 Step 2 $27.40 Step 2 $ 27.95 Step 3 $28.27 Step 3 $28.84 Step 3 $28.84 Step 3 $ 29.42 Step 4 $29.76 Step 4 $30.36 Step 4 $30.36 Step 4 $ 30.97 Step 5 $31.33 Step 5 $31.96 Step 5 $31.96 Step 5 $ 32.60 915 Non-exempt Assistant Park Ranger Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $ 22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $ 23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $ 24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $ 25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $ 27.31 916 Non-exempt Building Serviceperson Step 1 $19.74 Step 1 $20.13 Step 1 $20.13 Step 1 $ 20.54 Step 2 $20.78 Step 2 $21.19 Step 2 $21.19 Step 2 $ 21.62 Step 3 $21.87 Step 3 $22.31 Step 3 $22.31 Step 3 $ 22.76 Step 4 $23.02 Step 4 $23.48 Step 4 $23.48 Step 4 $ 23.96 Step 5 $24.23 Step 5 $24.72 Step 5 $24.72 Step 5 $ 25.22 917 Non-exempt Clerical Assistant Step 1 $17.31 Step 1 $17.66 Step 1 $17.66 Step 1 $ 18.01 Step 2 $18.22 Step 2 $18.59 Step 2 $18.59 Step 2 $ 18.96 Step 3 $19.18 Step 3 $19.57 Step 3 $19.57 Step 3 $ 19.96 Step 4 $20.19 Step 4 $20.60 Step 4 $20.60 Step 4 $ 21.01 Step 5 $21.25 Step 5 $21.68 Step 5 $21.68 Step 5 $ 22.12 918 Non-exempt Custodial Aide Step 1 $13.98 Step 1 $14.27 Step 1 $14.27 Step 1 $ 14.56 Step 2 $14.72 Step 2 $15.02 Step 2 $15.02 Step 2 $ 15.33 Step 3 $15.49 Step 3 $15.81 Step 3 $15.81 Step 3 $ 16.14 Step 4 $16.31 Step 4 $16.64 Step 4 $16.64 Step 4 $ 16.99 Step 5 $17.17 Step 5 $17.52 Step 5 $17.52 Step 5 $ 17.88 919 Non-exempt Custodial Assistant Step 1 $16.36 Step 1 $16.70 Step 1 $16.70 Step 1 $ 17.03 Step 2 $17.22 Step 2 $17.58 Step 2 $17.58 Step 2 $ 17.93 Step 3 $18.13 Step 3 $18.50 Step 3 $18.50 Step 3 $ 18.87 Step 4 $19.08 Step 4 $19.47 Step 4 $19.47 Step 4 $ 19.86 Step 5 $20.08 Step 5 $20.49 Step 5 $20.49 Step 5 $ 20.90 Exhibit 5 Limited Hourly 2014‐2017 Salary Schedule effective 01‐01‐2016 Job Code FLSA Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 920 Non-exempt House Manager Step 1 $16.08 Step 1 $16.41 Step 1 $16.41 Step 1 $ 16.74 Step 2 $16.93 Step 2 $17.27 Step 2 $17.27 Step 2 $ 17.62 Step 3 $17.82 Step 3 $18.18 Step 3 $18.18 Step 3 $ 18.55 Step 4 $18.76 Step 4 $19.14 Step 4 $19.14 Step 4 $ 19.53 Step 5 $19.75 Step 5 $20.15 Step 5 $20.15 Step 5 $ 20.56 921 Non-exempt Instructor Aide Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $ 10.10 Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $ 10.63 Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $ 11.19 Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $ 11.78 Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $ 12.40 922 Non-exempt Instructor I Step 1 $20.20 Step 1 $20.62 Step 1 $20.62 Step 1 $ 21.02 Step 2 $21.26 Step 2 $21.70 Step 2 $21.70 Step 2 $ 22.13 Step 3 $22.38 Step 3 $22.84 Step 3 $22.84 Step 3 $ 23.29 Step 4 $23.56 Step 4 $24.04 Step 4 $24.04 Step 4 $ 24.52 Step 5 $24.80 Step 5 $25.30 Step 5 $25.30 Step 5 $ 25.81 923 Non-exempt Instructor II Step 1 $24.61 Step 1 $25.10 Step 1 $25.10 Step 1 $ 25.60 Step 2 $25.90 Step 2 $26.42 Step 2 $26.42 Step 2 $ 26.95 Step 3 $27.26 Step 3 $27.81 Step 3 $27.81 Step 3 $ 28.37 Step 4 $28.69 Step 4 $29.27 Step 4 $29.27 Step 4 $ 29.86 Step 5 $30.20 Step 5 $30.81 Step 5 $30.81 Step 5 $ 31.43 982 Non-exempt Instructor III Step 1 $28.31 Step 1 $28.89 Step 1 $28.89 Step 1 $ 29.46 Step 2 $29.80 Step 2 $30.41 Step 2 $30.41 Step 2 $ 31.01 Step 3 $31.37 Step 3 $32.01 Step 3 $32.01 Step 3 $ 32.64 Step 4 $33.02 Step 4 $33.69 Step 4 $33.69 Step 4 $ 34.36 Step 5 $34.76 Step 5 $35.46 Step 5 $35.46 Step 5 $ 36.17 924 Non-exempt Librarian Step 1 $25.98 Step 1 $26.50 Step 1 $26.50 Step 1 $ 27.03 Step 2 $27.35 Step 2 $27.89 Step 2 $27.89 Step 2 $ 28.45 Step 3 $28.79 Step 3 $29.36 Step 3 $29.36 Step 3 $ 29.95 Step 4 $30.30 Step 4 $30.90 Step 4 $30.90 Step 4 $ 31.53 Step 5 $31.89 Step 5 $32.53 Step 5 $32.53 Step 5 $ 33.19 925 Non-exempt Library Clerk Step 1 $19.33 Step 1 $19.73 Step 1 $19.73 Step 1 $ 20.13 Step 2 $20.35 Step 2 $20.77 Step 2 $20.77 Step 2 $ 21.19 Step 3 $21.42 Step 3 $21.86 Step 3 $21.86 Step 3 $ 22.30 Step 4 $22.55 Step 4 $23.01 Step 4 $23.01 Step 4 $ 23.47 Step 5 $23.74 Step 5 $24.22 Step 5 $24.22 Step 5 $ 24.71 Exhibit 5 Limited Hourly 2014‐2017 Salary Schedule effective 01‐01‐2016 Job Code FLSA Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 930 Non-exempt Library Page Step 1 $11.85 Step 1 $12.09 Step 1 $12.09 Step 1 $ 12.34 Step 2 $12.47 Step 2 $12.73 Step 2 $12.73 Step 2 $ 12.99 Step 3 $13.13 Step 3 $13.40 Step 3 $13.40 Step 3 $ 13.67 Step 4 $13.82 Step 4 $14.11 Step 4 $14.11 Step 4 $ 14.39 Step 5 $14.55 Step 5 $14.85 Step 5 $14.85 Step 5 $ 15.15 935 Non-exempt Maintenance Assistant Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $ 16.20 Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $ 17.05 Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $ 17.95 Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $ 18.89 Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $ 19.88 936 Non-exempt Open Space Technician Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $ 16.20 Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $ 17.05 Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $ 17.95 Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $ 18.89 Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $ 19.88 937 Non-exempt Print Shop Assistant Step 1 $19.33 Step 1 $19.73 Step 1 $19.73 Step 1 $ 20.13 Step 2 $20.35 Step 2 $20.77 Step 2 $20.77 Step 2 $ 21.19 Step 3 $21.42 Step 3 $21.86 Step 3 $21.86 Step 3 $ 22.30 Step 4 $22.55 Step 4 $23.01 Step 4 $23.01 Step 4 $ 23.47 Step 5 $23.74 Step 5 $24.22 Step 5 $24.22 Step 5 $ 24.71 938 Non-exempt Project Construction Inspector Step 1 $27.98 Step 1 $28.55 Step 1 $28.55 Step 1 $ 29.12 Step 2 $29.45 Step 2 $30.05 Step 2 $30.05 Step 2 $ 30.65 Step 3 $31.00 Step 3 $31.63 Step 3 $31.63 Step 3 $ 32.26 Step 4 $32.63 Step 4 $33.29 Step 4 $33.29 Step 4 $ 33.96 Step 5 $34.35 Step 5 $35.04 Step 5 $35.04 Step 5 $ 35.75 939 Non-exempt Project Specialist Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $ 22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $ 23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $ 24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $ 25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $ 27.31 Exhibit 5 Limited Hourly 2014‐2017 Salary Schedule effective 01‐01‐2016 Job Code FLSA Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 940 Non-exempt Recreation Aide Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $ 10.10 Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $ 10.63 Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $ 11.19 Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $ 11.78 Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $ 12.40 941 Non-exempt Recreation Leader I Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $ 11.24 Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $ 11.83 Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $ 12.45 Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $ 13.10 Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $ 13.79 942 Non-exempt Recreation Leader II Step 1 $13.12 Step 1 $13.39 Step 1 $13.39 Step 1 $ 13.64 Step 2 $13.81 Step 2 $14.09 Step 2 $14.09 Step 2 $ 14.36 Step 3 $14.54 Step 3 $14.83 Step 3 $14.83 Step 3 $ 15.12 Step 4 $15.30 Step 4 $15.61 Step 4 $15.61 Step 4 $ 15.92 Step 5 $16.10 Step 5 $16.43 Step 5 $16.43 Step 5 $ 16.76 943 Non-exempt Recreation Leader III Step 1 $16.32 Step 1 $16.65 Step 1 $16.65 Step 1 $ 16.99 Step 2 $17.18 Step 2 $17.53 Step 2 $17.53 Step 2 $ 17.88 Step 3 $18.08 Step 3 $18.45 Step 3 $18.45 Step 3 $ 18.82 Step 4 $19.03 Step 4 $19.42 Step 4 $19.42 Step 4 $ 19.81 Step 5 $20.03 Step 5 $20.44 Step 5 $20.44 Step 5 $ 20.85 948 Non-exempt Stock Clerk Step 1 $15.48 Step 1 $15.79 Step 1 $15.79 Step 1 $ 16.10 Step 2 $16.29 Step 2 $16.62 Step 2 $16.62 Step 2 $ 16.95 Step 3 $17.15 Step 3 $17.49 Step 3 $17.49 Step 3 $ 17.84 Step 4 $18.05 Step 4 $18.41 Step 4 $18.41 Step 4 $ 18.78 Step 5 $19.00 Step 5 $19.38 Step 5 $19.38 Step 5 $ 19.77 949 Non-exempt Swim Instructor/Lifeguard Step 1 $11.06 Step 1 $11.29 Step 1 $11.29 Step 1 $ 11.50 Step 2 $11.64 Step 2 $11.88 Step 2 $11.88 Step 2 $ 12.11 Step 3 $12.25 Step 3 $12.50 Step 3 $12.50 Step 3 $ 12.75 Step 4 $12.89 Step 4 $13.16 Step 4 $13.16 Step 4 $ 13.42 Step 5 $13.57 Step 5 $13.85 Step 5 $13.85 Step 5 $ 14.13 Exhibit 5 Limited Hourly 2014‐2017 Salary Schedule effective 01‐01‐2016 Job Code FLSA Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 950 Non-exempt Technical Specialist Step 1 $17.31 Step 1 $17.66 Step 1 $17.66 Step 1 $ 18.01 Step 2 $18.22 Step 2 $18.59 Step 2 $18.59 Step 2 $ 18.96 Step 3 $19.18 Step 3 $19.57 Step 3 $19.57 Step 3 $ 19.96 Step 4 $20.19 Step 4 $20.60 Step 4 $20.60 Step 4 $ 21.01 Step 5 $21.25 Step 5 $21.68 Step 5 $21.68 Step 5 $ 22.12 951 Non-exempt Arts & Science Professional I Step 1 $20.20 Step 1 $20.62 Step 1 $20.62 Step 1 $ 21.02 Step 2 $21.26 Step 2 $21.70 Step 2 $21.70 Step 2 $ 22.13 Step 3 $22.38 Step 3 $22.84 Step 3 $22.84 Step 3 $ 23.29 Step 4 $23.56 Step 4 $24.04 Step 4 $24.04 Step 4 $ 24.52 Step 5 $24.80 Step 5 $25.30 Step 5 $25.30 Step 5 $ 25.81 952 Non-exempt Arts & Science Professional II Step 1 $24.61 Step 1 $25.10 Step 1 $25.10 Step 1 $ 25.60Step 2 $25.90 Step 2 $26.42 Step 2 $26.42 Step 2 $ 26.95 Step 3 $27.26 Step 3 $27.81 Step 3 $27.81 Step 3 $ 28.37 Step 4 $28.69 Step 4 $29.27 Step 4 $29.27 Step 4 $ 29.86 Step 5 $30.20 Step 5 $30.81 Step 5 $30.81 Step 5 $ 31.43 983 Non-exempt Arts & Science Professional III Step 1 $28.31 Step 1 $28.89 Step 1 $28.89 Step 1 $ 29.46Step 2 $29.80 Step 2 $30.41 Step 2 $30.41 Step 2 $ 31.01 Step 3 $31.37 Step 3 $32.01 Step 3 $32.01 Step 3 $ 32.64 Step 4 $33.02 Step 4 $33.69 Step 4 $33.69 Step 4 $ 34.36 Step 5 $34.76 Step 5 $35.46 Step 5 $35.46 Step 5 $ 36.17 953 Non-exempt Arts & ScienceTechnician Step 1 $14.35 Step 1 $14.64 Step 1 $14.64 Step 1 $ 14.92 Step 2 $15.10 Step 2 $15.41 Step 2 $15.41 Step 2 $ 15.71 Step 3 $15.89 Step 3 $16.22 Step 3 $16.22 Step 3 $ 16.54 Step 4 $16.73 Step 4 $17.07 Step 4 $17.07 Step 4 $ 17.41 Step 5 $17.61 Step 5 $17.97 Step 5 $17.97 Step 5 $ 18.33 954 Non-exempt Arts & Science Aide Step 1 $9.47 Step 1 $9.66 Step 1 $11.00 Step 1 $ 11.24 Step 2 $9.97 Step 2 $10.17 Step 2 $11.58 Step 2 $ 11.83 Step 3 $10.49 Step 3 $10.71 Step 3 $12.19 Step 3 $ 12.45 Step 4 $11.04 Step 4 $11.27 Step 4 $12.83 Step 4 $ 13.10 Step 5 $11.62 Step 5 $11.86 Step 5 $13.51 Step 5 $ 13.79 955 Non-exempt Zoological Assistant Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $ 22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $ 23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $ 24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $ 25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $ 27.31 Exhibit 5 Limited Hourly 2014‐2017 Salary Schedule effective 01‐01‐2016 Job Code FLSA Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Steps Rate Steps Rate Steps Rate Steps Rate 960 Non-exempt Police Reserve I Step 1 $26.46 Step 1 $26.99 Step 1 $26.99 Step 1 $ 27.53 Step 2 $26.46 Step 2 $26.99 Step 2 $26.99 Step 2 $ 27.53 Step 3 $26.46 Step 3 $26.99 Step 3 $26.99 Step 3 $ 27.53 Step 4 $26.46 Step 4 $26.99 Step 4 $26.99 Step 4 $ 27.53 Step 5 $26.46 Step 5 $26.99 Step 5 $26.99 Step 5 $ 27.53 961 Non-exempt Police Reserve II Step 1 $21.17 Step 1 $21.60 Step 1 $21.60 Step 1 $ 22.04 Step 2 $21.17 Step 2 $21.60 Step 2 $21.60 Step 2 $ 22.04 Step 3 $21.17 Step 3 $21.60 Step 3 $21.60 Step 3 $ 22.04 Step 4 $21.17 Step 4 $21.60 Step 4 $21.60 Step 4 $ 22.04 Step 5 $21.17 Step 5 $21.60 Step 5 $21.60 Step 5 $ 22.04 962 Non-exempt Technician I Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $ 16.20 Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $ 17.05 Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $ 17.95 Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $ 18.89 Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $ 19.88 963 Non-exempt Technician II Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $ 22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $ 23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $ 24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $ 25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $ 27.31 972 TBD Management Specialist Min Max Min Max Min Max Min Max $10 $100 $10 $100 $11 $100 $11 $100 Exhibit 6 IAFF Salary Schedule JobC ode FLSA Shift/ Non‐Shift Job Title Salary Effective the pay period following adoption (7.5% Increase) Salary Effective PP including 7/1/2016 2016‐14 (10.5% Increase) Salary Effective PP including 06/26/2017 2017‐14 (2.5% Increase) Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual 601 Non-exempt SH FIRE APPARATUS OP Step 1 $ 27.58 Step 1 $ 30.48 Step 1 $ 31.25 Step 2 $ 29.03 Step 2 $ 32.08 Step 2 $ 32.89 Step 3 $ 30.56 Step 3 $ 33.77 Step 3 $ 34.62 Step 4 $ 32.17 Step 4 $ 35.55 Step 4 $ 36.44 Step 5 $ 33.86 $ 8,216.69 $ 98,600.32 Step 5 $ 37.42 $ 9,080.59 $ 108,967.04 Step 5 $ 38.36 $ 9,308.69 $ 111,704.32 602 Non-exempt SH FIRE CAPTAIN Step 1 $ 32.73 Step 1 $ 36.17 Step 1 $ 37.07 Step 2 $ 34.45 Step 2 $ 38.07 Step 2 $ 39.02 Step 3 $ 36.26 Step 3 $ 40.07 Step 3 $ 41.07 Step 4 $ 38.17 Step 4 $ 42.18 Step 4 $ 43.23 Step 5 $ 40.18 $ 9,750.35 $ 117,004.16 Step 5 $ 44.40 $ 10,774.40 $ 129,292.80 Step 5 $ 45.51 $ 11,043.76 $ 132,525.12 603 Non-exempt SH FIRE INSPECTOR Step 1 $ 34.36 Step 1 $ 37.97 Step 1 $ 38.91 Step 2 $ 36.17 Step 2 $ 39.97 Step 2 $ 40.96 Step 3 $ 38.07 Step 3 $ 42.07 Step 3 $ 43.12 Step 4 $ 40.07 Step 4 $ 44.28 Step 4 $ 45.39 Step 5 $ 42.18 $ 10,235.68 $ 122,828.16 Step 5 $ 46.61 $ 11,310.69 $ 135,728.32 Step 5 $ 47.78 $ 11,594.61 $ 139,135.36 604 Non-exempt SH FIRE FIGHTER Step 1 $ 25.80 Step 1 $ 28.51 Step 1 $ 29.23 Step 2 $ 27.16 Step 2 $ 30.01 Step 2 $ 30.77 Step 3 $ 28.59 Step 3 $ 31.59 Step 3 $ 32.39 Step 4 $ 30.09 Step 4 $ 33.25 Step 4 $ 34.09 Step 5 $ 31.67 $ 7,685.25 $ 92,223.04 Step 5 $ 35.00 $ 8,493.33 $ 101,920.00 Step 5 $ 35.88 $ 8,706.88 $ 104,482.56 606 Non-exempt SH OPER PARAMEDIC-12.5 Step 1 $ 31.03 Step 1 $ 34.29 Step 1 $ 35.14 Step 2 $ 32.66 Step 2 $ 36.09 Step 2 $ 36.99 Step 3 $ 34.38 Step 3 $ 37.99 Step 3 $ 38.94 Step 4 $ 36.19 Step 4 $ 39.99 Step 4 $ 40.99 Step 5 $ 38.09 $ 9,243.17 $ 110,918.08 Step 5 $ 42.09 $ 10,213.84 $ 122,566.08 Step 5 $ 43.15 $ 10,471.07 $ 125,652.80 608 Non-exempt SH CAPTAIN PARAMEDIC-12.5 Step 1 $ 36.81 Step 1 $ 40.69 Step 1 $ 41.71 Step 2 $ 38.75 Step 2 $ 42.83 Step 2 $ 43.90 Step 3 $ 40.79 Step 3 $ 45.08 Step 3 $ 46.21 Step 4 $ 42.94 Step 4 $ 47.45 Step 4 $ 48.64 Step 5 $ 45.20 $ 10,968.53 $ 131,622.40 Step 5 $ 49.95 $ 12,121.20 $ 145,454.40 Step 5 $ 51.20 $ 12,424.53 $ 149,094.40 Exhibit 6 JobC ode FLSA Shift/ Non‐Shift Job Title Salary Effective the pay period following adoption (7.5% Increase) Salary Effective PP including 7/1/2016 2016‐14 (10.5% Increase) Salary Effective PP including 06/26/2017 2017‐14 (2.5% Increase) Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual 610 Non-exempt SH INSPCTR PARAMDC-12.5 Step 1 $ 37.14 Step 1 $ 41.05 Step 1 $ 42.08 Step 2 $ 39.09 Step 2 $ 43.21 Step 2 $ 44.29 Step 3 $ 41.15 Step 3 $ 45.48 Step 3 $ 46.62 Step 4 $ 43.32 Step 4 $ 47.87 Step 4 $ 49.07 Step 5 $ 45.60 $ 11,065.60 $ 132,787.20 Step 5 $ 50.39 $ 12,227.97 $ 146,735.68 Step 5 $ 51.65 $ 12,533.73 $ 150,404.80 676 Non-exempt SH F FIGHTR PARAMEDC-12.5 Step 1 $ 29.02 Step 1 $ 32.07 Step 1 $ 32.88 Step 2 $ 30.55 Step 2 $ 33.76 Step 2 $ 34.61 Step 3 $ 32.16 Step 3 $ 35.54 Step 3 $ 36.43 Step 4 $ 33.85 Step 4 $ 37.41 Step 4 $ 38.35 Step 5 $ 35.63 $ 8,646.21 $ 103,754.56 Step 5 $ 39.38 $ 9,556.21 $ 114,674.56 Step 5 $ 40.37 $ 9,796.45 $ 117,557.44 677 Non-exempt SH HAZ MAT SPEC Step 1 $ 35.37 Step 1 $ 39.08 Step 1 $ 40.05 Step 2 $ 37.23 Step 2 $ 41.14 Step 2 $ 42.16 Step 3 $ 39.19 Step 3 $ 43.30 Step 3 $ 44.38 Step 4 $ 41.25 Step 4 $ 45.58 Step 4 $ 46.72 Step 5 $ 43.42 $ 10,536.59 $ 126,439.04 Step 5 $ 47.98 $ 11,643.15 $ 139,717.76 Step 5 $ 49.18 $ 11,934.35 $ 143,212.16 678 Non-exempt SH HAZ MAT INSPECTOR Step 1 $ 34.36 Step 1 $ 37.97 Step 1 $ 38.91 Step 2 $ 36.17 Step 2 $ 39.97 Step 2 $ 40.96 Step 3 $ 38.07 Step 3 $ 42.07 Step 3 $ 43.12 Step 4 $ 40.07 Step 4 $ 44.28 Step 4 $ 45.39 Step 5 $ 42.18 $ 10,235.68 $ 122,828.16 Step 5 $ 46.61 $ 11,310.69 $ 135,728.32 Step 5 $ 47.78 $ 11,594.61 $ 139,135.36 680 Non-exempt SH FIRE FIGHTER HAZ MAT Step 1 $ 27.08 Step 1 $ 29.93 Step 1 $ 30.69 Step 2 $ 28.51 Step 2 $ 31.50 Step 2 $ 32.30 Step 3 $ 30.01 Step 3 $ 33.16 Step 3 $ 34.00 Step 4 $ 31.59 Step 4 $ 34.91 Step 4 $ 35.79 Step 5 $ 33.25 $ 8,068.67 $ 96,824.00 Step 5 $ 36.75 $ 8,918.00 $ 107,016.00 Step 5 $ 37.67 $ 9,141.25 $ 109,695.04 681 Non-exempt SH FIRE APPR OP HAZ MAT Step 1 $ 28.95 Step 1 $ 32.00 Step 1 $ 32.80 Step 2 $ 30.47 Step 2 $ 33.68 Step 2 $ 34.53 Step 3 $ 32.07 Step 3 $ 35.45 Step 3 $ 36.35 Step 4 $ 33.76 Step 4 $ 37.32 Step 4 $ 38.26 Step 5 $ 35.54 $ 8,624.37 $ 103,492.48 Step 5 $ 39.28 $ 9,531.95 $ 114,383.36 Step 5 $ 40.27 $ 9,772.19 $ 117,266.24 Exhibit 6 JobC ode FLSA Shift/ Non‐Shift Job Title Salary Effective the pay period following adoption (7.5% Increase) Salary Effective PP including 7/1/2016 2016‐14 (10.5% Increase) Salary Effective PP including 06/26/2017 2017‐14 (2.5% Increase) Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual 682 Non-exempt SH FIRE CAPTAIN HAZ MAT Step 1 $ 34.37 Step 1 $ 37.98 Step 1 $ 38.92 Step 2 $ 36.18 Step 2 $ 39.98 Step 2 $ 40.97 Step 3 $ 38.08 Step 3 $ 42.08 Step 3 $ 43.13 Step 4 $ 40.08 Step 4 $ 44.29 Step 4 $ 45.40 Step 5 $ 42.19 $ 10,238.11 $ 122,857.28 Step 5 $ 46.62 $ 11,313.12 $ 135,757.44 Step 5 $ 47.79 $ 11,597.04 $ 139,164.48 683 Non-exempt SH FIRE FIGHTER EMT Step 1 $ 26.57 Step 1 $ 29.36 Step 1 $ 30.10 Step 2 $ 27.97 Step 2 $ 30.91 Step 2 $ 31.68 Step 3 $ 29.44 Step 3 $ 32.54 Step 3 $ 33.35 Step 4 $ 30.99 Step 4 $ 34.25 Step 4 $ 35.11 Step 5 $ 32.62 $ 7,915.79 $ 94,989.44 Step 5 $ 36.05 $ 8,748.13 $ 104,977.60 Step 5 $ 36.96 $ 8,968.96 $ 107,627.52 684 Non-exempt SH FIRE FGHTR HZ MT EMT Step 1 $ 27.87 Step 1 $ 30.79 Step 1 $ 31.57 Step 2 $ 29.34 Step 2 $ 32.41 Step 2 $ 33.23 Step 3 $ 30.88 Step 3 $ 34.12 Step 3 $ 34.98 Step 4 $ 32.50 Step 4 $ 35.92 Step 4 $ 36.82 Step 5 $ 34.21 $ 8,301.63 $ 99,619.52 Step 5 $ 37.81 $ 9,175.23 $ 110,102.72 Step 5 $ 38.76 $ 9,405.76 $ 112,869.12 685 Non-exempt SH FIRE APPARATUS OP EMT Step 1 $ 28.41 Step 1 $ 31.40 Step 1 $ 32.19 Step 2 $ 29.91 Step 2 $ 33.05 Step 2 $ 33.88 Step 3 $ 31.48 Step 3 $ 34.79 Step 3 $ 35.66 Step 4 $ 33.14 Step 4 $ 36.62 Step 4 $ 37.54 Step 5 $ 34.88 $ 8,464.21 $ 101,570.56 Step 5 $ 38.55 $ 9,354.80 $ 112,257.60 Step 5 $ 39.52 $ 9,590.19 $ 115,082.24 686 Non-exempt SH FIRE AP OP HZ MT EMT Step 1 $ 29.78 Step 1 $ 32.92 Step 1 $ 33.74 Step 2 $ 31.35 Step 2 $ 34.65 Step 2 $ 35.52 Step 3 $ 33.00 Step 3 $ 36.47 Step 3 $ 37.39 Step 4 $ 34.74 Step 4 $ 38.39 Step 4 $ 39.36 Step 5 $ 36.57 $ 8,874.32 $ 106,491.84 Step 5 $ 40.41 $ 9,806.16 $ 117,673.92 Step 5 $ 41.43 $ 10,053.68 $ 120,644.16 687 Non-exempt SH FIRE CAPTAIN EMT Step 1 $ 33.70 Step 1 $ 37.25 Step 1 $ 38.18 Step 2 $ 35.47 Step 2 $ 39.21 Step 2 $ 40.19 Step 3 $ 37.34 Step 3 $ 41.27 Step 3 $ 42.31 Step 4 $ 39.31 Step 4 $ 43.44 Step 4 $ 44.54 Step 5 $ 41.38 $ 10,041.55 $ 120,498.56 Step 5 $ 45.73 $ 11,097.15 $ 133,165.76 Step 5 $ 46.88 $ 11,376.21 $ 136,514.56 Exhibit 6 JobC ode FLSA Shift/ Non‐Shift Job Title Salary Effective the pay period following adoption (7.5% Increase) Salary Effective PP including 7/1/2016 2016‐14 (10.5% Increase) Salary Effective PP including 06/26/2017 2017‐14 (2.5% Increase) Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual 688 Non-exempt SH FIRE CAP HAZ MAT EMT Step 1 $ 35.35 Step 1 $ 39.06 Step 1 $ 40.04 Step 2 $ 37.21 Step 2 $ 41.12 Step 2 $ 42.15 Step 3 $ 39.17 Step 3 $ 43.28 Step 3 $ 44.37 Step 4 $ 41.23 Step 4 $ 45.56 Step 4 $ 46.70 Step 5 $ 43.40 $ 10,531.73 $ 126,380.80 Step 5 $ 47.96 $ 11,638.29 $ 139,659.52 Step 5 $ 49.16 $ 11,929.49 $ 143,153.92 689 Non-exempt SH FIRE INSPECTOR EMT Step 1 $ 35.41 Step 1 $ 39.12 Step 1 $ 40.11 Step 2 $ 37.27 Step 2 $ 41.18 Step 2 $ 42.22 Step 3 $ 39.23 Step 3 $ 43.35 Step 3 $ 44.44 Step 4 $ 41.29 Step 4 $ 45.63 Step 4 $ 46.78 Step 5 $ 43.46 $ 10,546.29 $ 126,555.52 Step 5 $ 48.03 $ 11,655.28 $ 139,863.36 Step 5 $ 49.24 $ 11,948.91 $ 143,386.88 691 Non-exempt SH F FGH PRDMD-12.5 EMT Step 1 $ 29.79 Step 1 $ 32.94 Step 1 $ 33.76 Step 2 $ 31.36 Step 2 $ 34.67 Step 2 $ 35.54 Step 3 $ 33.01 Step 3 $ 36.49 Step 3 $ 37.41 Step 4 $ 34.75 Step 4 $ 38.41 Step 4 $ 39.38 Step 5 $ 36.58 $ 8,876.75 $ 106,520.96 Step 5 $ 40.43 $ 9,811.01 $ 117,732.16 Step 5 $ 41.45 $ 10,058.53 $ 120,702.40 693 Non-exempt SH OPR PRMDC-12.5 EMT Step 1 $ 31.85 Step 1 $ 35.21 Step 1 $ 36.09 Step 2 $ 33.53 Step 2 $ 37.06 Step 2 $ 37.99 Step 3 $ 35.29 Step 3 $ 39.01 Step 3 $ 39.99 Step 4 $ 37.15 Step 4 $ 41.06 Step 4 $ 42.09 Step 5 $ 39.11 $ 9,490.69 $ 113,888.32 Step 5 $ 43.22 $ 10,488.05 $ 125,856.64 Step 5 $ 44.31 $ 10,752.56 $ 129,030.72 695 Non-exempt SH CAPT PRMDC-12.5 EMT Step 1 $ 37.80 Step 1 $ 41.77 Step 1 $ 42.82 Step 2 $ 39.79 Step 2 $ 43.97 Step 2 $ 45.07 Step 3 $ 41.88 Step 3 $ 46.28 Step 3 $ 47.44 Step 4 $ 44.08 Step 4 $ 48.72 Step 4 $ 49.94 Step 5 $ 46.40 $ 11,259.73 $ 135,116.80 Step 5 $ 51.28 $ 12,443.95 $ 149,327.36 Step 5 $ 52.57 $ 12,756.99 $ 153,083.84 696 Non-exempt SH HAZ MAT SPEC EMT Step 1 $ 36.42 Step 1 $ 40.25 Step 1 $ 41.26 Step 2 $ 38.34 Step 2 $ 42.37 Step 2 $ 43.43 Step 3 $ 40.36 Step 3 $ 44.60 Step 3 $ 45.72 Step 4 $ 42.48 Step 4 $ 46.95 Step 4 $ 48.13 Step 5 $ 44.72 $ 10,852.05 $ 130,224.64 Step 5 $ 49.42 $ 11,992.59 $ 143,911.04 Step 5 $ 50.66 $ 12,293.49 $ 147,521.92 Exhibit 6 JobC ode FLSA Shift/ Non‐Shift Job Title Salary Effective the pay period following adoption (7.5% Increase) Salary Effective PP including 7/1/2016 2016‐14 (10.5% Increase) Salary Effective PP including 06/26/2017 2017‐14 (2.5% Increase) Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual TBD Non-exempt SH FIRE FGHTR EMT HAZ MT PARA Step 1 $ 31.08 Step 1 $ 34.35 Step 1 $ 35.22 Step 2 $ 32.72 Step 2 $ 36.16 Step 2 $ 37.07 Step 3 $ 34.44 Step 3 $ 38.06 Step 3 $ 39.02 Step 4 $ 36.25 Step 4 $ 40.06 Step 4 $ 41.07 Step 5 $ 38.16 $ 9,260.16 $ 111,121.92 Step 5 $ 42.17 $ 10,233.25 $ 122,799.04 Step 5 $ 43.23 $ 10,490.48 $ 125,885.76 TBD Non-exempt SH FIRE AP OP EMT HAZ MT PARA Step 1 $ 33.23 Step 1 $ 36.74 Step 1 $ 37.64 Step 2 $ 34.98 Step 2 $ 38.67 Step 2 $ 39.62 Step 3 $ 36.82 Step 3 $ 40.70 Step 3 $ 41.71 Step 4 $ 38.76 Step 4 $ 42.84 Step 4 $ 43.91 Step 5 $ 40.80 $ 9,900.80 $ 118,809.60 Step 5 $ 45.09 $ 10,941.84 $ 131,302.08 Step 5 $ 46.22 $ 11,216.05 $ 134,592.64 TBD Non‐exempt SH FIRE CPT EMT HAZ MT PARA Step 1 $ 39.44 Step 1 $ 43.59 Step 1 $ 44.68 Step 2 $ 41.52 Step 2 $ 45.88 Step 2 $ 47.03 Step 3 $ 43.70 Step 3 $ 48.29 Step 3 $ 49.50 Step 4 $ 46.00 Step 4 $ 50.83 Step 4 $ 52.11 Step 5 $ 48.42 $ 11,749.92 $ 140,999.04 Step 5 $ 53.51 $ 12,985.09 $ 155,821.12 Step 5 $ 54.85 $ 13,310.27 $ 159,723.20 634 Non-exempt NS FIRE APPARATUS OP Step 1 $ 38.61 Step 1 $ 42.66 Step 1 $ 43.74 Step 2 $ 40.64 Step 2 $ 44.91 Step 2 $ 46.04 Step 3 $ 42.78 Step 3 $ 47.27 Step 3 $ 48.46 Step 4 $ 45.03 Step 4 $ 49.76 Step 4 $ 51.01 Step 5 $ 47.40 $ 8,216.00 $ 98,592.00 Step 5 $ 52.38 $ 9,079.20 $ 108,950.40 Step 5 $ 53.69 $ 9,306.27 $ 111,675.20 635 Non-exempt NS FIRE CAPTAIN Step 1 $ 45.82 Step 1 $ 50.64 Step 1 $ 51.90 Step 2 $ 48.23 Step 2 $ 53.30 Step 2 $ 54.63 Step 3 $ 50.77 Step 3 $ 56.10 Step 3 $ 57.50 Step 4 $ 53.44 Step 4 $ 59.05 Step 4 $ 60.53 Step 5 $ 56.25 $ 9,750.00 $ 117,000.00 Step 5 $ 62.16 $ 10,774.40 $ 129,292.80 Step 5 $ 63.72 $ 11,044.80 $ 132,537.60 636 Non-exempt NS FIRE INSPECTOR Step 1 $ 48.11 Step 1 $ 53.16 Step 1 $ 54.49 Step 2 $ 50.64 Step 2 $ 55.96 Step 2 $ 57.36 Step 3 $ 53.30 Step 3 $ 58.90 Step 3 $ 60.38 Step 4 $ 56.10 Step 4 $ 62.00 Step 4 $ 63.56 Step 5 $ 59.05 $ 10,235.33 $ 122,824.00 Step 5 $ 65.26 $ 11,311.73 $ 135,740.80 Step 5 $ 66.90 $ 11,596.00 $ 139,152.00 Exhibit 6 JobC ode FLSA Shift/ Non‐Shift Job Title Salary Effective the pay period following adoption (7.5% Increase) Salary Effective PP including 7/1/2016 2016‐14 (10.5% Increase) Salary Effective PP including 06/26/2017 2017‐14 (2.5% Increase) Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual 637 Non-exempt NS FIRE FIGHTER Step 1 $ 36.11 Step 1 $ 39.91 Step 1 $ 40.91 Step 2 $ 38.01 Step 2 $ 42.01 Step 2 $ 43.06 Step 3 $ 40.01 Step 3 $ 44.22 Step 3 $ 45.33 Step 4 $ 42.12 Step 4 $ 46.55 Step 4 $ 47.72 Step 5 $ 44.34 $ 7,685.60 $ 92,227.20 Step 5 $ 49.00 $ 8,493.33 $ 101,920.00 Step 5 $ 50.23 $ 8,706.53 $ 104,478.40 638 Non-exempt NS OPER PARAMEDIC-12.5 Step 1 $ 43.42 Step 1 $ 47.98 Step 1 $ 49.19 Step 2 $ 45.71 Step 2 $ 50.51 Step 2 $ 51.78 Step 3 $ 48.12 Step 3 $ 53.17 Step 3 $ 54.51 Step 4 $ 50.65 Step 4 $ 55.97 Step 4 $ 57.38 Step 5 $ 53.32 $ 9,242.13 $ 110,905.60 Step 5 $ 58.92 $ 10,212.80 $ 122,553.60 Step 5 $ 60.40 $ 10,469.33 $ 125,632.00 639 Non-exempt NS CAPTAIN PARAMEDIC-12.5 Step 1 $ 51.54 Step 1 $ 56.95 Step 1 $ 58.40 Step 2 $ 54.25 Step 2 $ 59.95 Step 2 $ 61.47 Step 3 $ 57.11 Step 3 $ 63.11 Step 3 $ 64.70 Step 4 $ 60.12 Step 4 $ 66.43 Step 4 $ 68.10 Step 5 $ 63.28 $ 10,968.53 $ 131,622.40 Step 5 $ 69.93 $ 12,121.20 $ 145,454.40 Step 5 $ 71.68 $ 12,424.53 $ 149,094.40 641 Non-exempt NS INSPCTR PARAMDC-12.5 Step 1 $ 51.98 Step 1 $ 57.45 Step 1 $ 58.90 Step 2 $ 54.72 Step 2 $ 60.47 Step 2 $ 62.00 Step 3 $ 57.60 Step 3 $ 63.65 Step 3 $ 65.26 Step 4 $ 60.63 Step 4 $ 67.00 Step 4 $ 68.69 Step 5 $ 63.82 $ 11,062.13 $ 132,745.60 Step 5 $ 70.53 $ 12,225.20 $ 146,702.40 Step 5 $ 72.30 $ 12,532.00 $ 150,384.00 642 Non-exempt NS 40-HR TRAINING CAPTAIN Step 1 $ 48.11 Step 1 $ 53.16 Step 1 $ 54.49 Step 2 $ 50.64 Step 2 $ 55.96 Step 2 $ 57.36 Step 3 $ 53.30 Step 3 $ 58.90 Step 3 $ 60.38 Step 4 $ 56.10 Step 4 $ 62.00 Step 4 $ 63.56 Step 5 $ 59.05 $ 10,235.33 $ 122,824.00 Step 5 $ 65.26 $ 11,311.73 $ 135,740.80 Step 5 $ 66.90 $ 11,596.00 $ 139,152.00 643 Non-exempt NS 40-HR TRAINING CAPTAIN EMT Step 1 $ 49.55 Step 1 $ 54.76 Step 1 $ 56.13 Step 2 $ 52.16 Step 2 $ 57.64 Step 2 $ 59.08 Step 3 $ 54.90 Step 3 $ 60.67 Step 3 $ 62.19 Step 4 $ 57.79 Step 4 $ 63.86 Step 4 $ 65.46 Step 5 $ 60.83 $ 10,543.87 $ 126,526.40 Step 5 $ 67.22 $ 11,651.47 $ 139,817.60 Step 5 $ 68.91 $ 11,944.40 $ 143,332.80 Exhibit 6 JobC ode FLSA Shift/ Non‐Shift Job Title Salary Effective the pay period following adoption (7.5% Increase) Salary Effective PP including 7/1/2016 2016‐14 (10.5% Increase) Salary Effective PP including 06/26/2017 2017‐14 (2.5% Increase) Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual 644 Non-exempt NS F FIGHTR PARAMEDC-12.5 Step 1 $ 40.62 Step 1 $ 44.88 Step 1 $ 46.02 Step 2 $ 42.76 Step 2 $ 47.24 Step 2 $ 48.44 Step 3 $ 45.01 Step 3 $ 49.73 Step 3 $ 50.99 Step 4 $ 47.38 Step 4 $ 52.35 Step 4 $ 53.67 Step 5 $ 49.87 $ 8,644.13 $ 103,729.60 Step 5 $ 55.11 $ 9,552.40 $ 114,628.80 Step 5 $ 56.49 $ 9,791.60 $ 117,499.20 645 Non-exempt NS HAZ MAT SPEC Step 1 $ 49.51 Step 1 $ 54.72 Step 1 $ 56.09 Step 2 $ 52.12 Step 2 $ 57.60 Step 2 $ 59.04 Step 3 $ 54.86 Step 3 $ 60.63 Step 3 $ 62.15 Step 4 $ 57.75 Step 4 $ 63.82 Step 4 $ 65.42 Step 5 $ 60.79 $ 10,536.93 $ 126,443.20 Step 5 $ 67.18 $ 11,644.53 $ 139,734.40 Step 5 $ 68.86 $ 11,935.73 $ 143,228.80 646 Non-exempt NS HAZ MAT INSPECTOR Step 1 $ 48.11 Step 1 $ 53.16 Step 1 $ 54.49 Step 2 $ 50.64 Step 2 $ 55.96 Step 2 $ 57.36 Step 3 $ 53.30 Step 3 $ 58.90 Step 3 $ 60.38 Step 4 $ 56.10 Step 4 $ 62.00 Step 4 $ 63.56 Step 5 $ 59.05 $ 10,235.33 $ 122,824.00 Step 5 $ 65.26 $ 11,311.73 $ 135,740.80 Step 5 $ 66.90 $ 11,596.00 $ 139,152.00 647 Non-exempt NS FIRE FIGHTER HAZ MAT Step 1 $ 37.91 Step 1 $ 41.90 Step 1 $ 42.95 Step 2 $ 39.91 Step 2 $ 44.11 Step 2 $ 45.21 Step 3 $ 42.01 Step 3 $ 46.43 Step 3 $ 47.59 Step 4 $ 44.22 Step 4 $ 48.87 Step 4 $ 50.09 Step 5 $ 46.55 $ 8,068.67 $ 96,824.00 Step 5 $ 51.44 $ 8,916.27 $ 106,995.20 Step 5 $ 52.73 $ 9,139.87 $ 109,678.40 650 Non-exempt NS FIRE APPR OP HAZ MAT Step 1 $ 40.54 Step 1 $ 44.80 Step 1 $ 45.92 Step 2 $ 42.67 Step 2 $ 47.16 Step 2 $ 48.34 Step 3 $ 44.92 Step 3 $ 49.64 Step 3 $ 50.88 Step 4 $ 47.28 Step 4 $ 52.25 Step 4 $ 53.56 Step 5 $ 49.77 $ 8,626.80 $ 103,521.60 Step 5 $ 55.00 $ 9,533.33 $ 114,400.00 Step 5 $ 56.38 $ 9,772.53 $ 117,270.40 648 Non-exempt NS FIRE CAPTAIN HAZ MAT Step 1 $ 48.11 Step 1 $ 53.16 Step 1 $ 54.49 Step 2 $ 50.64 Step 2 $ 55.96 Step 2 $ 57.36 Step 3 $ 53.30 Step 3 $ 58.90 Step 3 $ 60.38 Step 4 $ 56.10 Step 4 $ 62.00 Step 4 $ 63.56 Step 5 $ 59.05 $ 10,235.33 $ 122,824.00 Step 5 $ 65.26 $ 11,311.73 $ 135,740.80 Step 5 $ 66.90 $ 11,596.00 $ 139,152.00 Exhibit 6 JobC ode FLSA Shift/ Non‐Shift Job Title Salary Effective the pay period following adoption (7.5% Increase) Salary Effective PP including 7/1/2016 2016‐14 (10.5% Increase) Salary Effective PP including 06/26/2017 2017‐14 (2.5% Increase) Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual 649 Non-exempt NS FIRE FIGHTER EMT Step 1 $ 37.20 Step 1 $ 41.11 Step 1 $ 42.14 Step 2 $ 39.16 Step 2 $ 43.27 Step 2 $ 44.36 Step 3 $ 41.22 Step 3 $ 45.55 Step 3 $ 46.69 Step 4 $ 43.39 Step 4 $ 47.95 Step 4 $ 49.15 Step 5 $ 45.67 $ 7,916.13 $ 94,993.60 Step 5 $ 50.47 $ 8,748.13 $ 104,977.60 Step 5 $ 51.74 $ 8,968.27 $ 107,619.20 651 Non-exempt NS FIRE FGHTR HZ MT EMT Step 1 $ 39.02 Step 1 $ 43.10 Step 1 $ 44.18 Step 2 $ 41.07 Step 2 $ 45.37 Step 2 $ 46.51 Step 3 $ 43.23 Step 3 $ 47.76 Step 3 $ 48.96 Step 4 $ 45.50 Step 4 $ 50.27 Step 4 $ 51.54 Step 5 $ 47.89 $ 8,300.93 $ 99,611.20 Step 5 $ 52.92 $ 9,172.80 $ 110,073.60 Step 5 $ 54.25 $ 9,403.33 $ 112,840.00 652 Non-exempt NS FIRE APPARATUS OP EMT Step 1 $ 39.78 Step 1 $ 43.96 Step 1 $ 45.04 Step 2 $ 41.87 Step 2 $ 46.27 Step 2 $ 47.41 Step 3 $ 44.07 Step 3 $ 48.70 Step 3 $ 49.91 Step 4 $ 46.39 Step 4 $ 51.26 Step 4 $ 52.54 Step 5 $ 48.83 $ 8,463.87 $ 101,566.40 Step 5 $ 53.96 $ 9,353.07 $ 112,236.80 Step 5 $ 55.31 $ 9,587.07 $ 115,044.80 653 Non-exempt NS FIRE AP OP HZ MT EMT Step 1 $ 41.71 Step 1 $ 46.08 Step 1 $ 47.24 Step 2 $ 43.90 Step 2 $ 48.51 Step 2 $ 49.73 Step 3 $ 46.21 Step 3 $ 51.06 Step 3 $ 52.35 Step 4 $ 48.64 Step 4 $ 53.75 Step 4 $ 55.10 Step 5 $ 51.20 $ 8,874.67 $ 106,496.00 Step 5 $ 56.58 $ 9,807.20 $ 117,686.40 Step 5 $ 58.00 $ 10,053.33 $ 120,640.00 655 Non-exempt NS FIRE CAPTAIN EMT Step 1 $ 47.20 Step 1 $ 52.16 Step 1 $ 53.47 Step 2 $ 49.68 Step 2 $ 54.90 Step 2 $ 56.28 Step 3 $ 52.29 Step 3 $ 57.79 Step 3 $ 59.24 Step 4 $ 55.04 Step 4 $ 60.83 Step 4 $ 62.36 Step 5 $ 57.94 $ 10,042.93 $ 120,515.20 Step 5 $ 64.03 $ 11,098.53 $ 133,182.40 Step 5 $ 65.64 $ 11,377.60 $ 136,531.20 654 Non-exempt NS FIRE CAP HAZ MAT EMT Step 1 $ 49.48 Step 1 $ 54.66 Step 1 $ 56.04 Step 2 $ 52.08 Step 2 $ 57.54 Step 2 $ 58.99 Step 3 $ 54.82 Step 3 $ 60.57 Step 3 $ 62.09 Step 4 $ 57.70 Step 4 $ 63.76 Step 4 $ 65.36 Step 5 $ 60.74 $ 10,528.27 $ 126,339.20 Step 5 $ 67.12 $ 11,634.13 $ 139,609.60 Step 5 $ 68.80 $ 11,925.33 $ 143,104.00 Exhibit 6 JobC ode FLSA Shift/ Non‐Shift Job Title Salary Effective the pay period following adoption (7.5% Increase) Salary Effective PP including 7/1/2016 2016‐14 (10.5% Increase) Salary Effective PP including 06/26/2017 2017‐14 (2.5% Increase) Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual 656 Non-exempt NS FIRE INSPECTOR EMT Step 1 $ 49.55 Step 1 $ 54.76 Step 1 $ 56.13 Step 2 $ 52.16 Step 2 $ 57.64 Step 2 $ 59.08 Step 3 $ 54.90 Step 3 $ 60.67 Step 3 $ 62.19 Step 4 $ 57.79 Step 4 $ 63.86 Step 4 $ 65.46 Step 5 $ 60.83 $ 10,543.87 $ 126,526.40 Step 5 $ 67.22 $ 11,651.47 $ 139,817.60 Step 5 $ 68.91 $ 11,944.40 $ 143,332.80 657 Non-exempt NS F FGH PRDMD-12.5 EMT Step 1 $ 41.71 Step 1 $ 46.09 Step 1 $ 47.24 Step 2 $ 43.91 Step 2 $ 48.52 Step 2 $ 49.73 Step 3 $ 46.22 Step 3 $ 51.07 Step 3 $ 52.35 Step 4 $ 48.65 Step 4 $ 53.76 Step 4 $ 55.11 Step 5 $ 51.21 $ 8,876.40 $ 106,516.80 Step 5 $ 56.59 $ 9,808.93 $ 117,707.20 Step 5 $ 58.01 $ 10,055.07 $ 120,660.80 658 Non-exempt NS OPR PRMDC-12.5 EMT Step 1 $ 44.58 Step 1 $ 49.28 Step 1 $ 50.50 Step 2 $ 46.93 Step 2 $ 51.87 Step 2 $ 53.16 Step 3 $ 49.40 Step 3 $ 54.60 Step 3 $ 55.96 Step 4 $ 52.00 Step 4 $ 57.47 Step 4 $ 58.91 Step 5 $ 54.74 $ 9,488.27 $ 113,859.20 Step 5 $ 60.49 $ 10,484.93 $ 125,819.20 Step 5 $ 62.01 $ 10,748.40 $ 128,980.80 697 Non-exempt NS CAPT PRMDC-12.5 EMT Step 1 $ 52.92 Step 1 $ 58.48 Step 1 $ 59.95 Step 2 $ 55.70 Step 2 $ 61.56 Step 2 $ 63.10 Step 3 $ 58.63 Step 3 $ 64.80 Step 3 $ 66.42 Step 4 $ 61.72 Step 4 $ 68.21 Step 4 $ 69.92 Step 5 $ 64.97 $ 11,261.47 $ 135,137.60 Step 5 $ 71.80 $ 12,445.33 $ 149,344.00 Step 5 $ 73.60 $ 12,757.33 $ 153,088.00 660 Non-exempt NS HAZ MAT INSPECTOR EMT Step 1 $ 49.55 Step 1 $ 54.76 Step 1 $ 56.13 Step 2 $ 52.16 Step 2 $ 57.64 Step 2 $ 59.08 Step 3 $ 54.90 Step 3 $ 60.67 Step 3 $ 62.19 Step 4 $ 57.79 Step 4 $ 63.86 Step 4 $ 65.46 Step 5 $ 60.83 $ 10,543.87 $ 126,526.40 Step 5 $ 67.22 $ 11,651.47 $ 139,817.60 Step 5 $ 68.91 $ 11,944.40 $ 143,332.80 659 Non-exempt NS HAZ MAT SPEC EMT Step 1 $ 51.00 Step 1 $ 56.35 Step 1 $ 57.76 Step 2 $ 53.68 Step 2 $ 59.32 Step 2 $ 60.80 Step 3 $ 56.51 Step 3 $ 62.44 Step 3 $ 64.00 Step 4 $ 59.48 Step 4 $ 65.73 Step 4 $ 67.37 Step 5 $ 62.61 $ 10,852.40 $ 130,228.80 Step 5 $ 69.19 $ 11,992.93 $ 143,915.20 Step 5 $ 70.92 $ 12,292.80 $ 147,513.60 Exhibit 6 JobC ode FLSA Shift/ Non‐Shift Job Title Salary Effective the pay period following adoption (7.5% Increase) Salary Effective PP including 7/1/2016 2016‐14 (10.5% Increase) Salary Effective PP including 06/26/2017 2017‐14 (2.5% Increase) Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual TBD Non-exempt NS FIRE FGHTR EMT HAZ MT PARA Step 1 $ 43.49 Step 1 $ 48.07 Step 1 $ 49.28 Step 2 $ 45.78 Step 2 $ 50.60 Step 2 $ 51.87 Step 3 $ 48.19 Step 3 $ 53.26 Step 3 $ 54.60 Step 4 $ 50.73 Step 4 $ 56.06 Step 4 $ 57.47 Step 5 $ 53.40 $ 9,256.00 $ 111,072.00 Step 5 $ 59.01 $ 10,228.40 $ 122,740.80 Step 5 $ 60.49 $ 10,484.93 $ 125,819.20 TBD Non-exempt NS FIRE AP OP EMT HAZ MT PARA Step 1 $ 46.52 Step 1 $ 51.40 Step 1 $ 52.71 Step 2 $ 48.97 Step 2 $ 54.11 Step 2 $ 55.48 Step 3 $ 51.55 Step 3 $ 56.96 Step 3 $ 58.40 Step 4 $ 54.26 Step 4 $ 59.96 Step 4 $ 61.47 Step 5 $ 57.12 $ 9,900.80 $ 118,809.60 Step 5 $ 63.12 $ 10,940.80 $ 131,289.60 Step 5 $ 64.70 $ 11,214.67 $ 134,576.00 TBD Non‐exempt NS FIRE CPT EMT HAZ MT PARA Step 1 $ 55.20 Step 1 $ 61.01 Step 1 $ 62.54 Step 2 $ 58.11 Step 2 $ 64.22 Step 2 $ 65.83 Step 3 $ 61.17 Step 3 $ 67.60 Step 3 $ 69.29 Step 4 $ 64.39 Step 4 $ 71.16 Step 4 $ 72.94 Step 5 $ 67.78 $ 11,748.53 $ 140,982.40 Step 5 $ 74.90 $ 12,982.67 $ 155,792.00 Step 5 $ 76.78 $ 13,308.53 $ 159,702.40 City of Palo Alto (ID # 7285) City Council Staff Report Report Type: Action Items Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Storm Water Management Fee Protest Hearing Title: PUBLIC HEARING: Proposition 218 Storm Water Management Fee Protest Hearing and Approval of a Resolution Calling a Mail Ballot Election for April 11, 2017 to Submit a Storm Water Management Fee to Owners of Parcels of Real Property Subject to the Fee and a Resolution Amending Utility Rule and Regulation 25 From: City Manager Lead Department: Public Works Recommendation Staff recommends that: 1. Council hold a public hearing and accept written and oral testimony on the matter of the proposed Storm Water Management Fee. At the close of the public testimony portion of the public hearing, the City Clerk will count the written protests received on the matter, and will announce to the Council whether written protests have been received from a majority of owners of parcels subject to the fee. 2. If a majority protest does not exist, Council adopt a resolution calling a mail ballot election for Tuesday, April 11, 2017 to allow owners of parcels subject to the Storm Water Management Fee to vote on whether the fee should be imposed. 3. Council adopt the attached resolution modifying Section 8(C) of Utility Rule and Regulation 25 (Special Storm and Surface Water Drainage Utility Regulations) to exempt certain developed parcels which do not impact City storm drainage facilities, and to clarify how the fee applies to parcels which only partially drain to the City’s storm drain system. City of Palo Alto Page 2 Background The City’s storm drain capital improvement, maintenance, and water quality protection programs are funded through the Storm Drainage Fund, an enterprise fund established by Council in 1989. Revenue is generated by a Storm Drainage Fee charged to all developed properties in Palo Alto on monthly utility bills. The Storm Drainage Fee is a property-related fee subject to the requirements of Proposition 218, and cannot be increased without the approval of property owners subject to the fee increase in a mail ballot election. In April 2005, Palo Alto property owners, voting in a mail ballot election, approved a measure increasing the Storm Drainage Fee, through June 1, 2017, for a typical single- family residential parcel to $10.00 per month, with provision for annual inflationary increases. Council approved a monthly fee of $13.03 per Equivalent Residential Unit (ERU) for FY 2017. If no action is taken to approve updated fees, the fee structure approved in 2005 will sunset in June 2017, and the fee will revert back to its pre-2005 level of $4.25 per ERU per month. Proposition 218 limits the authority of local governments to impose or increase taxes and property-related assessments, fees, or charges; and imposes procedural rules for the levy of new or increased fees. The provisions of Proposition 218 require that a proposed fee increase must be submitted to property owners for approval or rejection, after proper notice and public hearing. An initial public hearing must be held not less than 45 days after a mailed notice. If written protests are received from a majority of property owners at the hearing, the proposed fee increase cannot be levied. If a majority protest does not occur, the local government may refer the matter to property owners for a vote. Approval is required through a mail ballot election in which a majority of property owners returning ballots agree to any new or increased property-related fees. On August 29, 2016, Council approved a resolution proposing a monthly Storm Water Management Fee of $13.65 per ERU and establishing the procedures and timeline for a protest hearing and mail ballot election for implementation of the Storm Water Management Fee (Attachment A). On September 9, notices were mailed to all property owners subject to the fee. The notices contained information on the public hearing, property-specific information on the amount of the proposed Storm Water Management Fee, a description of how the proceeds from the fee would be spent, and instructions for filing a formal written City of Palo Alto Page 3 protest to the fee (Attachment B). Staff has also developed a web site containing detailed information on the proposed Storm Water Management Fee (www.cityofpaloalto.org/stormwaterfee). Discussion To comply with the provisions of Proposition 218, detailed procedures were adopted by Council for the public hearing and mail ballot election. The protest hearing is the next step in the process. Property owners have the opportunity to appear before Council to register their concerns and submit a written protest against the proposed Storm Water Management Fee. The proceedings will be governed by the following Council-approved guidelines: • Written protests must (i) state that it is a protest against the proposed Storm Water Management Fee; (ii) identify the parcel with respect to which it is made; (iii) identify the owner for whom the written protest is submitted; (iv) include the printed name of the natural person signing the protest (if that person is not himself or herself the owner); and (v) include the original wet signature of the owner or of a person legally authorized to execute documents on behalf of the owner. • No protests received after the close of the public hearing on October 24, 2016 will be accepted. • At the hearing, Council will hear all objections and take and receive documentary evidence pertaining to the proposed Storm Water Management Fee. • At the end of the hearing, Council will determine whether a majority protest has been received. If Council determines, at the close of the public testimony portion of the public hearing, that written protests have been received from property owners representing a majority of the parcels subject to the proposed Storm Water Management Fee, the Mayor shall declare the proceedings closed, and the fee shall not be approved. If Council determines that less than a majority of property owners have submitted written protest, the Council may adopt a resolution calling for the mailing of ballots to eligible property owners (Attachment C). Assuming that Council calls for a mail ballot election, the ballots will be mailed to property owners on February 24, 2017. This represents a slight delay from the City of Palo Alto Page 4 initial schedule proposed in the August 29, 2016 staff report, and would ensure that the voting period is conducted well after the distractions of the general election cycle and the holiday season. Ballots will be accompanied by a notice of election (consisting of a letter from the City Clerk and a description of the proposed fee) (Attachment D) and a postage paid return envelope. Ballots must be received by the City Clerk no later than 5:30 p.m. on April 11, 2017. Ballots received after 5:30 p.m. will not be included in the vote tabulation. The City Clerk will tabulate the ballots in public view in Council Chambers on April 12, 2017. During and after the tabulation, the ballots shall be treated as public records, subject to public disclosure and made available for inspection by any interested person. This treatment of the ballots is specified in the revised mail ballot procedures to be enacted through adoption of the recommended Council resolution. Council will certify the mail-in ballot vote on May 1, 2017. Utility Rule and Regulation 25 (Special Storm and Surface Water Drainage Utility Regulations) sets forth the manner in which the City’s existing storm drainage fee is charged. An update to Section 8(C) of Rule and Regulation 25 is needed to exempt certain developed parcels which do not impact City storm drainage facilities from the fee, and to clarify how the fee applies to parcels which only partially drain to the City’s storm drain system. This change will not increase the existing storm drainage fee and will have a negligible impact on Storm Drainage Fund revenues since only a small number of parcels are covered by this provision. Staff recommends that Council adopt the attached resolution, which amends Utility Rule and Regulation 25 as described above (Attachment E). Timeline The timeline for the protest hearing and storm drain mail ballot election is presented below. 10/24/16 Protest hearing; adoption of revised Utility Rule and Regulation 25 2/24/17 Ballots mailed; balloting process requires at least 45 days 4/11/17 Ballots due back to City Clerk 5/1/17 Council certification of election results; adoption of Utility Rate Schedule D-1 City of Palo Alto Page 5 6/1/17 Effective date of new Storm Water Management Fee Resource Impact To maintain the self-sufficiency of the Storm Drainage Fund, the City must secure property owner approval of a ballot measure authorizing increased storm drain funding before the 2005 ballot measure sunsets in June 2017. If the Storm Water Management Fee reverts back to its pre-2005 level of $4.25 per month per ERU, it will generate approximately $2.2 million per year. This amount of revenue would not support a minimum level of storm drainage service, which would cost approximately $4.3 million per year. In addition, the pre-2005 level of funding would preclude any further storm drain capital improvement projects. If a new ballot measure is not approved, storm drain system operations would need to be significantly curtailed. If the proposed rate schedule were approved, it would generate the following revenue for storm water management programs and capital improvement projects in FY 2018: Base Component ($7.48/month/ERU): $3.8 million Projects And Infrastructure Component ($6.17/month/ERU): $3.1 million Total Storm Water Management Fee Revenue: $6.9 million Policy Implications Identification of funding for storm drain capital improvements is consistent with Policy N-24 of the Comprehensive Plan, which states that the City should “improve storm drainage performance by constructing new system improvements where necessary and replacing undersized or otherwise inadequate lines with larger lines or parallel lines.” Program N-36 further states that the City should “complete improvements to the storm drainage system consistent with the priorities outlined in the City’s 1993 Storm Drainage Master Plan, provided that an appropriate funding mechanism is identified and approved by the City Council.” Environmental Review Holding a public hearing and calling for a mail ballot election for a proposed Storm Water Management Fee does not meet the definition of a project for the City of Palo Alto Page 6 purposes of the California Environmental Quality Act (CEQA) under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because these are administrative governmental activities which will not cause a direct or indirect physical change in the environment. Thus, no environmental analysis is required at this time. The level of future CEQA review will depend on the scope of the storm drain capital improvement projects that may be funded by the updated Storm Water Management Fee. Courtesy Copies Storm Drain Blue Ribbon Committee Attachments: Attachment A: Adopted Council Resolution #9624 (PDF) Attachment B: Storm Water Management Fee Public Notice (PDF) Attachment C: Resolution calling for Mail Ballot Election for Storm Water Management Fee (PDF) Attachment D: Storm Water Management Fee Mail Election Ballot (PDF) Attachment E: Resolution modifying Utility Rule & Regulation 25 (PDF) NF Resolution No. 9624 Resolution of the Council of the City of Palo Alto Proposing a Storm Water Management Fee To Replace The Storm Drainage Fee, Calling A Public Hearing For October 24, 2016 With Respect To Such Fee And Adopting Procedures Relating To The Conduct Of A Protest Hearing And Mail Ballot Election R E C I T A L S A. In 1989, the City established a storm drainage fee to fund costs associated with B. In 1994, the City set the rate of the storm drainage fee at $4.25 per month per C. In 1996, California voters adopted Proposition 218 which, among other things, required voter approval of certain propertyrelated fees. D. In 2005, at a mail ballot election, Palo Alto property owners approved an the increase. E.year sunset. F. The increase is scheduled to sunset on June 1, 2017. G. The current rate of the storm drainage fee, including the portion of the fee that is set to sunset, is $13.03 per month per ERU. H. The City Council desires to propose that the existing storm drainage fee be I. In order to conduct a fair process that complies with the provisions of Proposition 218, the City Council finds it appropriate to clearly describe the Proposed Fee and the procedure by which the City will conduct any protest hearings and mail ballot elections in connection with the Proposed Fee. NOW, THEREFORE, the City Council does hereby resolve as follows: DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF SECTION 1. The City Council hereby declares that its intent in adopting this resolution is to provide the community with a guide to the protest and mail ballot election process for the Proposed Fee. SECTION 2. The Council sets October 24, 2016, at 6:00 PM at the Council Chambers located at 250 Hamilton Avenue, Palo Alto, CA as the time and place for a public hearing on the Proposed Fe and incorporated herein by reference. SECTION 3 Hearing and Mail Ballot Election in Connection with reference. SECTION 4. Staff is directed to give notice of the October 24, 2016 public hearing in the manner set forth in the Procedures. The public hearing will be conducted as a protest hearing pursuant to the Procedures. SECTION 5. It is the intent of the Council that the $4.25 per month per ERU base storm drainage fee levied since 1994 will continue unless the Proposed Fee is approved. If the Proposed Fee is approved by the property owners at a mail ballot election and imposed by the City Council, the existing base storm drainage fee will not be charged in any month during which the Proposed Fee is effective. SECTION 6. The Council finds that this resolution, calling a public hearing and adopting protest hearing and election procedures is categorically exempt from California Environmental Quality Act review under CEQA Guidelines Section 15061(b)(3), because these actions do not adoption of a funding mechanism for storm water management projects is not a project under government funding mechanisms which do not involve commitment to any specific project which may result in a potentially significant environmental impact. Thus, no environmental analysis is required at this time. Future CEQA review will occur based on the selection of storm / / / / / / / / / / DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF drain capital improvement projects that may be funded by the proposed storm water management fees. INTRODUCED AND PASSED: August 29, 2016 AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Public Works Director of Administrative Services DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF DESCRIPTION OF THE PROPOSED STORM WATER MANAGEMENT FEE A. Overview The proposed Storm Water Management Fee would have two components: A Base Component A Projects and Infrastructure Component B. Proposed Rates (Effective June 1, 2017) The Proposed Rate for the Storm Water Management Fee effective June 1, 2017 is: $13.65 per ERU (Equivalent Residential Unit) per month. This is comprised of: Base Component of $7.48 per ERU per month; and Projects and Infrastructure Component of $6.17 per ERU per month C. Inflation Adjustment In order to offset the effects of inflation on labor and material costs, the maximum rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) will be increased annually each July 1 (beginning July 1, 2018), by the lesser of (i) the percentage change in the Consumer Price Index [CPI] for the San FranciscoOaklandSan Jose CSMA, published by the United States Department of Labor, Bureau of Labor Statistics during the prior calendar year or (ii) 6%. The City Council would have the authority to set the rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) at any rate that is less than or equal to the inflation adjusted maximum rate. D. Duration 1) Base Component The Base Component would be charged monthly, beginning June 1, 2017, until terminated by the City Council. DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF 2) Projects and Infrastructure Component The Projects and Infrastructure Component would be charged monthly, beginning June 1, 2017. Unless further extended by the voters, the Projects and Infrastructure Component would no longer be charged beginning June 1, 2032. E. Method of Collection and Calculated The Storm Water Management Fee would be collected and calculated in the manner set forth in City of Palo Alto Utilities Rule and Regulation No. 25, subject to the exemptions set forth in this Section E. As a general rule, ERU's are assigned to each parcel subject to the fee on the following basis: SingleFamily Residential Parcels: Lot Size ERU's <6,000 sq. ft. 0.8 ERU 6,000 11,000 sq. ft. 1.0 ERU >11,000 sq. ft. 1.4 ERU All Other Improved Parcels: Number of ERU = Impervious Area (Sq. Ft.) / 2,500 Assigned ERU's are rounded to the nearest onetenth of an ERU. Unimproved parcels are not subject to the Storm Water Management Fee, and the fee will not be charged for developed parcels that (i) have their own maintained storm drainage facility or facilities, and which do not utilize City facilities or (ii) make no substantial contribution of storm or surface water to the City's storm drainage facilities. For a more complete description of the manner of collection and calculation of the Storm Water Management Fee, reference is made City of Palo Alto Utilities Rule and Regulation No. 25. F. Use of Funds Proceeds of the Storm Water Management Fee would be available to the City exclusively to pay for: (A) Improving the quality of storm and surface water; (B) The operation, maintenance, improvement and replacement of existing City storm drainage facilities; and (C) The operation, maintenance, and replacement of future such facilities. DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF Permissible uses would include, but not be limited to, Green Storm Water Infrastructure programs (including financial incentives to property owners) intended to reduce the quantity of storm water entering the City's public storm water system or to improve the quality of storm water before it enters that system through measures including, but not limited to, rain gardens, rain barrels/cisterns, green roofs, tree wells, bioretention/infiltration basins and planters, and permeable pavement. G. Oversight provision for proposed fee increase The City Council would appoint an oversight committee to monitor and review expenditures for all storm water funding elements, including, but not limited to, Green Storm Water Infrastructure projects, storm water Capital Improvement Program projects, and Incentive Project funding and ensure that the money raised from the increased storm water management fee is spent in accordance with this resolution. The Committee would be empowered to consider and recommend consolidation of Green Storm Water Infrastructure and Incentive Project funding for particular projects. The City Council may choose to retain the members of the existing Councilappointed Storm Drain Oversight Committee to perform this oversight function. The oversight committee would report its findings to the City Council at least annually. H. Payasyougo funding of capital improvements The storm drain capital improvements to be funded through the proposed Storm Water Management Fee would be paid for on a payasyougo basis, without debt financing. DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF EXHIBIT "B" PROCEDURES FOR THE CONDUCT OF PROTEST HEARING AND MAIL BALLOT ELECTION IN CONNECTION WITH PROPOSED STORM WATER MANAGEMENT FEE 2016 The following procedures have been adopted by the City Council of the City of Palo Alto for the purpose of conducting all proceedings required by Article XIIID of the California Constitution for consideration of the proposed Storm Water Management Fee. Where no specific procedures are imposed by Article et seq.), these procedures shall apply. DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF Part I Introduction In connection with consideration of its proposed Storm Water Management Fee, the City of Palo Alto will conduct two proceedings: 1. A Protest Hearing. 2. A Mail Ballot Election. A Mail Ballot Election will only be held if (i) the City Council determines that, as of the close of the public input portion of the Protest Hearing, a majority protest does not exist and (ii) the City Council adopts a resolution calling a Mail Ballot Election. All references in this document to the City Clerk shall, to the extent the reference requires that the City Clerk perform a function, be deemed to include any employee of the City who is designated by the City Clerk to perform that function. The term "owner", when used in this document and not otherwise defined, includes any person who qualifies as an owner for purposes of Article XIII D, Section 6 of the California Constitution. DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF Part 2 Protest Hearing A. Notice 1. Not less than 45 days prior to the date of the Protest Hearing, Notice of the Protest Hearing shall be mailed to the Record Owner of each parcel to which the Storm Water Management Fee is proposed to apply. 2. The Notice shall include all information required by Article XIII D, Section 6(a)(1) of the California Constitution and such other relevant information as staff may determine to include. 3. For purposes of this Subsection A, "Record Ownership" shall be determined by the name appearing on the last equalized secured property tax assessment roll. Notice shall be mailed to the Record Owner at the mailing address indicated on that roll. B. Protests 1. Written Protests will be accepted by the City Clerk via US Mail or hand delivery at the Office of the City Clerk located at 250 Hamilton Avenue, Palo Alto, CA 94301 during regular business hours. Written Protests will also be accepted by the City Clerk at the Protest Hearing. All Written Protests must be received by the City Clerk prior to the close of the public input portion of the Public Hearing in order to be considered pursuant to these Procedures. 2. A Written Protest must (i) state that it is a protest against the proposed Storm Water Number or Street Address); (iii) identify the owner for whom the Written Protest is submitted; (iii) include the printed name of the natural person signing the Protest (if that person is not himself or herself the owner); and (iv) include the original wet signature of the owner or of a person legally authorized to execute documents on behalf of the owner. 3. If a Parcel served by the City is owned by a partnership, joint tenancy, or tenancy in common, any partner, joint tenant, or tenant in common may submit a Written Protest, but only one Protest will be counted per Parcel and any one Protest submitted in accordance with these rules will be sufficient to count as a Protest for that Parcel. 4. Where an owner of a Parcel is not a natural person, a Written Protest may be submitted by the owner and signed by any person authorized to execute documents on behalf of the owner. 5. In the event a person not shown on the last equalized secured property tax assessment roll assumes (or otherwise has) ownership of a Parcel, that person may submit a Written Protest with respect to that Parcel. Such protest must include all information otherwise required of a Written Protest and must also include either (i) proof of such ownership or (ii) a statement, submitted under penalty of perjury by the person submitting the Written Protest, that the person signing the Protest is an owner of the Parcel or is legally authorized to submit the Protest on behalf of the owner of the Parcel. DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF 6. Anyone who submits a Written Protest may withdraw it by submitting to the City Clerk a signed written request that the protest be withdrawn. The request shall contain sufficient information to identify the affected Parcel and the name of the person who submitted both the Protest and the request that it be withdrawn. 7. To ensure transparency and accountability in the fee protest tabulation, Protests shall constitute disclosable public records from and after the time they are received. C. Tabulation 1. The City Clerk or her designee shall determine the validity of all Protests. That person (the alid any Protest if he or she determines that any of the following conditions exist: a. The Written Protest does not identify a Parcel subject to the Storm Water Management Fee. b. The Written Protest does not bear an original wet signature of (i) an owner of the identified Parcel or (ii) a person legally authorized to submit the Written Protest on behalf of the owner. c. The Written Protest does not state its opposition to the proposed fee. d. The Written Protest was not received before the close of the public input portion of the Public Hearing. e. A request to withdraw the Written Protest is received prior to the close of the public input portion of the Public Hearing. 3. final action of the City and shall not be subject to any internal appeal. 4. A majority protest exists if Written Protests are timely submitted and not withdrawn with respect to a majority of the parcels subject to the proposed fee. The City Council may not adopt a resolution calling a Mail Ballot Election if there is a majority protest. 5. At the conclusion of the public hearing, the Tabulator shall complete the tabulation of all Written Protests received, including those received during the Public Hearing and shall report the results of the tabulation to the City Council upon completion. If review of the Written Protests received demonstrates that the number received is manifestly less than onehalf of the Parcels served by the City with respect to the fee which is the subject of the protest, then the Tabulator may advise the City Council of the absence of a majority protest without determining the validity of all Written Protests. DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF Part 3 Mail Ballot Election A. Mailing of Ballot 1. Not less than 45 days prior to the date of the Mail Ballot Election, Election Materials shall be mailed to the Record Owner of each Parcel to which the Storm Water Management Fee is proposed to apply. 2. Election Materials shall include a Notice, a Ballot, and a Ballot Return Envelope. 3. The Notice shall include: (i) The total amount of the Storm Water Management Fee chargeable to all Parcels in the City that are subject to the Storm Water Management Fee; (ii) The amount chargeable to the owner's particular Parcel; (iii) A description of the inflation adjustment formula applicable to the Storm Water Management Fee; (iv) The duration of the Storm Water Management Fee; (v) The reason for the Storm Water Management Fee and the basis upon which the amount of the proposed fee was calculated; (vi) The date and time by which Ballots must be returned to the City Clerk and the address for return of Ballots; (vii) The date, time and location where Ballots will be tabulated; (viii) A summary of the procedures applicable to the completion, return, and tabulation of the Ballots; (ix) A disclosure that the Fee will only be approved if the number of Ballots cast (and not withdrawn) in favor of the Storm Water Management Fee exceed the number of Ballots cast (and not withdrawn) in opposition to the Storm Water Management Fee; and (x) Such other relevant information as staff may determine to include. 4. The Ballot shall include: (i) The address for return of Ballots; (ii) The name of the Record Owner; (iii) An identification of the Parcel; DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF (iv) A place where the person casting the Ballot may indicate support or opposition to the Storm Water Management Fee; (v) A place where the person submitting the Ballot may print his or her name and execute a statement under penalty of perjury that he or she is an owner of the Parcel identified on the Ballot or is a person legally entitled to submit a Ballot on behalf of an owner; and (vi) Such other relevant information as staff may determine to include. 5. The Ballot Return Envelope shall include prepaid postage and be preaddressed to the Office of the City Clerk. The City Clerk may establish a special Post Office Box address for the return of Ballots. If the City Clerk does so, that address shall be used on the Ballot Return Envelope. In order to ensure Envelope 6. Any information required to be included on the Notice may instead be included on the Ballot. 7. For purposes of this Subsection A, "Record Ownership" shall be determined by the name appearing on the last equalized secured property tax assessment roll. Notice, a Ballot, and a Ballot Return Envelope shall be mailed to the Record Owner at the mailing address indicated on that roll. B. Completion of Ballots 1. Who May Complete a Ballot A Ballot may be completed by an owner of the parcel subject to the fee. If the owner of the Parcel is a partnership, joint tenancy, or tenancy in common, a Ballot may be completed by any of the general partners, joint tenants, or tenants in common. Except as set forth below, only one Ballot may be completed for each Parcel. 2. Proportional Ballots If a Parcel has multiple owners, any owner may request a Proportional Ballot. If the ownership interest of the owner is not shown on the last equalized secured property tax assessment roll, such request must include evidence, satisfactory to the City Clerk, of the owner's Proportional rights in the Parcel. The City Clerk will provide the Proportional Ballot to the owner at the address shown on the assessment roll. Any request for a Ballot to be mailed to another location must be made in writing and must include evidence, satisfactory to the City Clerk, of the identity of the person requesting the Ballot. Each Proportional Ballot will be marked to show the date on which the Ballot was provided, to identify it as a Proportional Ballot and to indicate the owner's Proportional rights in the Parcel. The City Clerk will keep a record of each Proportional Ballot provided to an owner. 3. Duplicate Ballots If a Ballot is lost, withdrawn, destroyed or never received, the City Clerk will mail or otherwise provide a Duplicate Ballot to the owner upon receipt of a request in writing delivered to the City Clerk. The Duplicate Ballot will be marked to show the date on which the Ballot was mailed or provided and to DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF identify it as a Duplicate Ballot or a Duplicate Proportional Ballot. The same procedure applies to Duplicate Ballots or Duplicate Proportional Ballots which are lost, withdrawn, destroyed, or never received. If the ownership interest of the owner requesting the Duplicate Ballot is not shown on the last equalized secured property tax assessment roll (as, for example, when a Parcel has been acquired after the assessment roll is equalized), the Duplicate Ballot request must include evidence, satisfactory to the City owner who has requested the Ballot. The City Clerk will provide the Duplicate Ballot to the owner at the address shown on the assessment roll. Any request for a Ballot to be mailed to another location must be made in writing and must include evidence, satisfactory to the City Clerk, of the identity of the person requesting the Ballot. Each Duplicate Ballot will be marked to show the date on which the Ballot was provided, to identify it as a Duplicate Ballot. The City Clerk will keep a record of each Duplicate Ballot provided to an owner. 4. Provisional Ballot If a person requests a Duplicate Ballot, and that person does not provide the City Clerk with evidence to the City Clerk that is sufficient to demonstrate to the City Clerk that the person is the owner of a Parcel that will be subject to the Storm Water Management Fee, the City Clerk will issue that person a Provisional Ballot. Each Provisional Ballot shall be marked to show the date on which the Ballot was provided, to identify the person to whom it was issued, and to identify the Parcel for which the requesting person claims an ownership interest. The City Clerk will keep a record of each Provisional Ballot provided. 5. Marking and Signing the Ballot To complete a Ballot, the owner of the Parcel must (1) mark the appropriate box supporting or opposing the proposed Storm Water Management Fee, and (2) sign, under penalty of perjury, the statement on the Ballot that the person completing the Ballot is an owner of the Parcel or a person legally authorized to execute documents on behalf of the owner. Ballots must be completed in ink and include the original wet signature of the signer. 6. Only Ballots Provided by the City Will Be Accepted The City Clerk will only accept Ballots mailed or otherwise provided to owners by the City. B. Return of Ballots 1. Where to Return Ballots Ballots may be handdelivered to the Office of the City Clerk located at 250 Hamilton Avenue, Palo Alto, CA 94301 during the normal business hours of that office. Ballots may also be returned to the Office of the City Clerk by mail. The mailing address for return of Ballots shall be the address printed on the DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF Ballot and Ballot Return Envelope, and may be the usual mailing address of the Office of the City Clerk or a special Post Office Box established for this purpose. 2. When to Return Ballots All returned Ballots must be received by the City Clerk prior to the date and time set by the City Council in the resolution calling the election. The date shall be any Tuesday selected by the City Council (aside from the date of a statewide direct primary election or statewide general election). 3. Withdrawal of Ballots Anyone who submits a Ballot may withdraw it by submitting to the City Clerk a signed written request that the Ballot be withdrawn. The request shall contain sufficient information to identify the affected Parcel and the name of the person who submitted both the Ballot and the request that it be withdrawn. When Ballots are tabulated, the City Clerk will segregate withdrawn Ballots from all other returned Ballots. The City Clerk will retain all withdrawn Ballots and will indicate on the face of such withdrawn Ballots that they have been withdrawn. If any Ballot has been withdrawn, the person withdrawing the Ballot may request a Duplicate Ballot. 4. Changes to Ballots In order to change the contents of a Ballot that has been submitted, the person who has signed that Ballot must (1) request that such Ballot be withdrawn, (2) request that a Duplicate Ballot be issued, and (3) return the Duplicate Ballot fully completed. Each of these steps must be completed according to the procedures set forth above. C. Tabulation of Ballots 1. Which Ballots Will Be Counted? Only Ballots which are completed and returned in compliance with these procedures will be counted. Ballots received by the City Clerk after the close of the deadline for return of Ballots will not be counted. Ballots which are not signed by the owner will not be counted. Ballots with no boxes marked, or with more than one box marked, will not be counted. Ballots withdrawn in accordance with these procedures will not be counted. The City will keep a record of each Proportional, Duplicate, or Provisional Ballot mailed or otherwise provided to an owner and will ensure that only one Ballot is tabulated for the Parcel (or for each owner in the case of Proportional Ballots). Provisional Ballots shall not be counted unless, by the deadline for returning Ballots, the City Clerk has received sufficient evidence of ownership as would have been required for the issuance of a Duplicate Ballot. All Provisional Ballots that have been returned to the City Clerk shall be retained along with other Ballots so returned. 2. When and Where Ballots Will Be Tabulated DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF The City Clerk will count the Ballots in the City Council Chambers at a date and time scheduled for such purpose by the City Clerk. Tabulation will be performed in view of such members of the public who choose to observe such tabulation. Ballots will not be removed from their Return Envelopes until tabulation begins. 3. How Ballots Will Be Tabulated Ballots may be counted by hand, by computer or by any other tabulating device. Each Ballot, other than a Proportional Ballot, will count as one vote. Proportional Ballots will be counted as a fraction of a vote, weighted in accordance with the respective ownership interests of each Proportional Ballot submitted. If one or more Proportional Ballots are returned for a Parcel and a non Proportional Ballot is returned for the Parcel, the nonProportional Ballot will either be disregarded (if the same owner has returned a Proportional Ballot) or treated as a Proportional Ballot (if the same owner has not returned a Proportional Ballot). 4. Who Will Tabulate Ballots? Ballots will be tabulated by the City Clerk or some other impartial person designated by the City Council who does not have a vested interest in the outcome of the Election. The City Clerk or other designated person may be assisted by any of the staff and consultants of the City. 5. Results of Tabulation The property owners will be deemed to have approved the Storm Water Management Fee (including any associated inflation adjustment formula) if the number of votes cast in favor of the Storm Water Management Fee exceeds the number of votes cast in opposition to the Storm Water Management Fee. 6. Announcement of Tabulation The results of the tabulation will be announced at a meeting of the City Council and will be certified by resolution of the City Council. D. Resolution of Disputes In the event a question arises regarding whether the signer of a Ballot (or person on whose behalf a Ballot has been submitted) is an owner of the Parcel to which the Ballot applies, the City Clerk will make such determination from the last equalized secured property tax assessment roll and any evidence of ownership submitted to the City Clerk prior to the closing of the election. The City Clerk will be under no duty to obtain or consider any other evidence as to ownership of property and her determination of ownership will be final and conclusive. In the event a question arises regarding whether the signer of a Ballot is legally entitled to submit a Ballot on behalf of an owner, the City may rely on the statement on the Ballot signed under penalty of perjury and any evidence submitted to the City Clerk prior to the closing of the election. The City Clerk will be under no duty to obtain or consider any other evidence as to whether the signer of the Ballot is an authorized representative of the owner and its determination will be final and conclusive. DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NF E. Confidentiality The City considers the vote contained on a Ballot (i.e. whether the box in support is checked or the box in opposition is checked) to be confidential, and will not disclose that fact with respect to any specific voter unless ordered to do so by a court of competent jurisdiction. DocuSign Envelope ID: 58A85B2C-9AB2-4B7F-A5E0-F2A7CEEA12F1 NOTICE OF PUBLIC HEARING CITY OF PALO ALTO STORM WATER MANAGEMENT FEE TO: «Situs_Street_Address» ASSESSOR’S PARCEL NO. «Assessors_Parcel_Number» «Assessee» «In_Care_of_Name» «Mailing_Address» «Mailing_City_and_State» «Mailing_Zip_Code» FROM: Beth Minor, City Clerk Dear Property Owner: On August 29, 2016, the Palo Alto City Council adopted its Resolution No. 9624. This Resolution proposes to replace the City’s existing Storm Drainage Fee with a new Storm Water Management Fee. The City Council will hold a public hearing on the proposed fee on October 24, 2016, in the Council Chambers, City Hall, 250 Hamilton Avenue, Palo Alto, California. At the hearing, the City Council will consider the proposed fee and hear all persons interested in the matter. The October 24, 2016 public hearing will be conducted as a protest hearing pursuant to the City’s “Procedures for the Conduct of Protest Hearing and Mail Ballot Election in Connection with Proposed Storm Water Management Fee.” A copy of these procedures, and of Resolution No. 9624, can be found online at www.cityofpaloalto.org/sdbrc. The City will accept written protests against the proposed fee from owners of parcels of real property subject to the fee. Written protests may be delivered to the Office of the City Clerk located at 250 Hamilton Avenue, Palo Alto, CA 94301 via US Mail or hand delivery. Written protests will also be accepted by the City Clerk at the October 24, 2016 hearing. Any written protests must be received by the City Clerk prior to the close of the public input portion of the October 24, 2016 hearing in order to be considered. A written protest must (i) state that it is a protest against the proposed Storm Water Management Fee; (ii) identify the parcel with respect to which the protest is made (either by Assessor’s Parcel Number or Street Address); (iii) include the printed name of the person signing the protest; and (iv) include the original wet signature of the person submitting the protest. If a parcel is owned by more than a single person, any owner may submit a written protest. If an owner of a parcel is a corporation, a trust, or is otherwise not a natural person, a written protest may be submitted by the owner and signed by any person authorized to execute documents on behalf of the owner. Property ownership has the same meaning as under Article XIII D of the California Constitution. This notice has been addressed to the parcel owner shown on the last equalized secured property tax assessment roll. In the event a person not shown on the last equalized secured property tax assessment roll assumes (or otherwise has) ownership of a parcel, that person may submit a written protest with respect to that parcel. Such protest should include all information otherwise required of a written protest and must also include either proof of such ownership or a statement, submitted under penalty of perjury by the person submitting the written protest, that the person signing the protest is the owner of the parcel or (if the owner is not a natural person) is legally entitled to file the protest for the owner of the parcel. If the City Clerk receives valid protests with respect to a majority of the parcels subject to the proposed fee, then the City Council will not continue the fee proceedings. Otherwise, the City Council may submit the proposed fee to a property owner mail ballot election. If ultimately approved by the election, the Storm Water Management Fee would be collected on monthly City utility bills beginning June 1, 2017, replacing the existing Storm Drainage Fee. The current and proposed monthly fee for your property is shown below. Current Fee Proposed Fee* Property Information «Current_Fee» «Proposed_Fee» «Situs_Street_Address» «Assessors_Parcel_Number» * In order to offset the effects of inflation on labor and material costs, the maximum rate for the Storm Water Management Fee will be increased annually each July 1 (beginning July 1, 2018), by the lesser of (i) the percentage change in the Consumer Price Index [CPI] for the San Francisco‐Oakland‐San Jose CSMA, published by the United States Department of Labor, Bureau of Labor Statistics during the prior calendar year or (ii) 6%. The City Council would have the authority to set the rate for the Storm Water Management Fee at any rate that is less than or equal to the inflation adjusted maximum rate. The following pages of this notice include additional information about the proposed Storm Water Management Fee. 1 DESCRIPTION OF THE PROPOSED STORM WATER MANAGEMENT FEE A. Overview The proposed Storm Water Management Fee of $13.65 per ERU (Equivalent Residential Unit) per month would replace the existing Storm Drainage Fee of $13.03 per ERU per month. The Storm Water Management Fee would have two components: 1) A Base Component of $7.48 per ERU per month (adjusted annually for inflation as discussed later in this document), which would continue until terminated by the City Council. 2) A Projects and Infrastructure Component of $6.17 per ERU per month (adjusted annually for inflation as discussed later in this document), which would end after 15 years, on June 1, 2032, unless extended by the voters. If approved, the Storm Water Management Fee would go into effect June 1, 2017. Proceeds of the Storm Water Management Fee would be available to the City exclusively to pay for: Improving the quality of storm and surface water; The operation, maintenance, improvement and replacement of existing City storm drainage facilities; and The operation, maintenance, and replacement of future such facilities. Permissible uses would include, but not be limited to, Green Storm Water Infrastructure programs (including financial incentives to property owners) intended to reduce the quantity of storm water entering the City's public storm water system or to improve the quality of storm water before it enters that system through measures including, but not limited to, rain gardens, rain barrels/cisterns, green roofs, tree wells, bio‐retention/infiltration basins and planters, and permeable pavement. B. Background The Palo Alto City Council established the Storm Drainage Fund and an associated Storm Drainage Fee in 1989 as an independent means to fund municipal storm drain capital improvements, maintenance, and storm water quality protections programs. The fee was last authorized in a 2005 property owner election, and most of the current fee will sunset in June 2017. Revenue generated by the fee since 2005 has funded seven high‐priority storm drain capital improvement projects as well as ongoing operational costs. The new Storm Water Management Fee was recommended to the City Council by an appointed Blue Ribbon Storm Drain Committee of residents. Adoption of the proposed new fee will enable the implementation of additional drainage improvements throughout the City, including compliance with state permit requirements mandating green storm water infrastructure. Green storm water infrastructure reduces runoff, improves storm water quality, and restores the natural water cycle by collecting and retaining, and/or treating runoff rather than discharging it directly to storm drains. C. Budget 1. Base Component Each Year, the Base Component is anticipated to generate approximately $3.8 million (to be adjusted for inflation in future years). The Base Component has been calculated based on the City’s anticipated ongoing costs for the engineering, maintenance, storm water quality protection, operation and administration of the City’s storm water system, including regulatory permit compliance. Floodplain Management $ 101,000 Engineering $ 255,000 Storm Water Quality Protection $ 1,135,000 Storm Drain System Maintenance $ 1,293,000 Emergency Response $ 119,000 Administrative Support $ 1,112,000 SUBTOTAL (partially funded by other revenue) $ 4,015,000 2 2. Projects and Infrastructure Component Each Year, the Projects and Infrastructure Component is anticipated to generate approximately $3.1 million (to be adjusted for inflation in future years). The Projects and Infrastructure Component has been calculated based on anticipated 15‐year costs for the Storm Drain Capital Improvement Program (which includes both major capacity upgrade projects and capital improvement repair and rehabilitation), Incentive Projects, and Green Storm Water Infrastructure Projects. Storm Drain Capital Improvements $ 1,104,000 Debt Service for Past Capital Projects* $ 947,000 Storm Drain System Repairs $ 400,000 Capital Program Engineering Support $ 177,000 Green Storm Water Infrastructure Projects $ 375,000 Incentive Projects $ 125,000 SUBTOTAL $ 3,128.000 * Debt service obligations end in Fiscal Year 2024, after which this budget is available for use for new capital improvements. The fifteen‐year budget for major capital improvements was based on the following projects depicted on the attached exhibit: a. Loma Verde Avenue (Louis Road to Sterling Canal) storm drain capacity upgrade (Midtown) $2,200,000 b. Corporation Way/East Bayshore Road Pump Station to Adobe Creek (Baylands) $2,420,000 c. West Bayshore Road to Adobe Creek storm drain capacity upgrade (Palo Verde) $1,390,000 d. West Bayshore Road Pump Station to Adobe Creek (Palo Verde) $1,040,000 e. East Charleston Road to Adobe Creek storm drain capacity upgrade (Charleston Terrace) $1,300,000 f. East Meadow Circle storm drain connection to Adobe Creek Pump Station (E Meadow Circle)$360,000 g. East Meadow Drive to Adobe Creek Pump Station storm drain capacity upgrade (Ortega) $400,000 h. Fabian Way storm drain capacity upgrade (Fabian Way) $580,000 i. Hamilton Avenue (Center Drive to Rhodes Drive) storm drain capacity upgrade (Duveneck‐St Francis) $3,440,000 j. Louis Road (Embarcadero Road to Seale‐Wooster Canal) storm drain capacity upgrade (Garland/Midtown) $6,910,000 k. Louis Road (Seale‐Wooster Canal to Matadero Creek) overflow storm drain (Midtown) $1,560,000 l. Colorado Pump Station integration with Matadero Pump Station (Midtown) $430,000 m. Center Drive storm drain capacity upgrade (Crescent Park) $1,620,000 Project costs were estimated based upon the best information currently available for the purpose of developing a reasonable and appropriate capital improvement program budget. Final selection and sequencing of individual projects is subject to further study and analysis, such as analysis under the California Environmental Quality Act. D. Annual Inflation Adjustment In order to offset the effects of inflation on labor and material costs, the maximum rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) will be increased annually each July 1 (beginning July 1, 2018), by the lesser of (i) the percentage change in the Consumer Price Index [CPI] for the San Francisco‐Oakland‐San Jose CSMA, published by the United States Department of Labor, Bureau of Labor Statistics during the prior calendar year or (ii) 6%. 3 The City Council would have the authority to set the rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) at any rate that is less than or equal to the inflation adjusted maximum rate. E. Method of Collection and Calculated As a general rule, ERU's are assigned to each parcel subject to the fee on the following basis: Single‐Family Residential Parcels: Lot Size ERU's <6,000 sq. ft. 0.8 ERU 6,000 ‐ 11,000 sq. ft. 1.0 ERU >11,000 sq. ft. 1.4 ERU All Other Improved Parcels: Number of ERU = Impervious Area (Sq. Ft.) / 2,500. Assigned ERU's are rounded to the nearest one‐tenth of an ERU. Fees are generally collected on water bills. The Storm Water Management Fee would be collected and calculated in the manner set forth in City of Palo Alto Utilities Rule and Regulation No. 25 (available online at www.cityofpaloalto.org/sdbrc), subject to the following exemptions: Unimproved parcels are not subject to the Storm Water Management Fee, and the fee will not be charged for developed parcels that (i) have their own maintained storm drainage facility or facilities, and which do not utilize City facilities or (ii) make no substantial contribution of storm or surface water to the City's storm drainage facilities. F. Oversight provision for proposed fee increase The City Council would appoint an oversight committee to monitor and review expenditures for all storm water funding elements, including, but not limited to, Green Storm Water Infrastructure projects, storm water Capital Improvement Program projects, and Incentive Project funding and ensure that the money raised from the increased storm water management fee is spent properly. The Committee would be empowered to consider and recommend consolidation of Green Storm Water Infrastructure and Incentive Project funding for particular projects. The City Council may choose to retain the members of the existing Council‐appointed Storm Drain Oversight Committee to perform this oversight function. The oversight committee would report its findings to the City Council at least annually. G. Pay‐as‐you‐go funding of capital improvements The storm drain capital improvements to be funded through the proposed Storm Water Management Fee would be paid for on a pay‐as‐you‐go basis, without debt financing. H. Additional Information Should you have any questions about the public hearing, please call or write to: Beth Minor, City Clerk, P.O. Box 10250, Palo Alto, CA 94303. Telephone: (650) 329‐2571. For questions about the proposed fee, please call Joe Teresi in the Public Works Engineering Services Division at (650) 329‐2129 or visit the City’s web site at www.cityofpaloalto.org/sdbrc. HWY 10 1 W. Bays h o r e R o a d Lom a V e r d e A v e n u e Co l o r a d o A v e n u e Middlefield Road Ore g o n E x p r e s s w a y El Camino Real Ro a d Pa g e M i l l Alma Street Emerson Street Ch a n n i n g A v e n u e Emb a r c a d e r o R o a d 2. CORPORATION WAY ($2.4 MILLION) 9. HAMILTON AVE($3.4 MILLION) 5. EAST CHARLESTON ROAD ($ 1.3 MILLION) 12. COLORADO PUMP STATION ($430 THOUSAND) 6. EAST MEADOW CIRCLE ($360 THOUSAND) 8. FABIAN WAY ($ 580 THOUSAND) 1. LOMA VERDE AVE. ($2.2 MILLION) 7. EAST MEADOW DRIVE ($400 THOUSAND) 13. CENTER DRIVE ($1.6 MILLION) 11. LOUIS ROAD (SEALE - WOOSTER CANAL) ($1.5 MILLION) 3. WEST BAYSHORE ROAD ($1.3 MILLION)10. LOUIS ROAD (EMBARCADERO ROAD - SEALE -WOOSTER) ($6.9 MILLION)4. WEST BAYSHORE ROAD PUMP STATION ($1 MILLION) This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. 0'3000' ProposedStorm DrainCapital Improvements For Storm Water Management Fee CITY O F PALO A L TO IN C O R P O RAT E D C ALIFOR N I A P a l o A l t oT h e C i t y o f A P RIL 1 6 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto rhada, 2016-08-17 10:22:25Ballot Measure 2016 (\\cc-maps\gis$\gis\admin\Personal\Storm.mdb) Not Yet Approved 160929 jb 6053836 Resolution No. ______ Resolution of the Council of the City of Palo Alto Calling a Mail Ballot Election in Connection with the City’s Proposed Storm Water Management Fee R E C I T A L S A. On August 29, 2016, by its adoption of its Resolution No. 9624 (the “Resolution of Intention”), the City Council (i) proposed a new Storm Water Management Fee (the “Proposed Fee”) to replace the City’s existing Storm Drainage Fee; (ii) approved the City’s “Procedures for the Conduct of Protest Hearing and Mail Ballot Election in Connection with Proposed Storm Water Management Fee” (the “Procedures”) to govern proceedings for the consideration of the Proposed Fee; and (iii) called a public hearing with respect to the Proposed Fee. B. On September 9, 2016, notice of the Protest Hearing was mailed to record owners in the manner set forth in the Procedures. C. On October 24, 2016, at 6:00 PM, in the Council Chambers located at 250 Hamilton Avenue, Palo Alto, CA, the City Council held the Protest Hearing. At the Protest Hearing all persons had an opportunity to be heard with respect to the Proposed Fees. D. The City Clerk has caused the tabulation pursuant to the Procedures of all written protests against the Proposed Fee. E. A majority protest against the Proposed Fee does not exist. F. The City Council desires to conduct a mail ballot election pursuant to the Procedures and to submit the Proposed Fee to property owners at the mail ballot election. NOW, THEREFORE, the City Council does hereby resolve as follows: SECTION 1. The City Council calls a Mail Ballot Election for Tuesday, April 11, 2017 to submit the Proposed Fee to property owners (the “Mail Ballot Election”). The Mail Ballot Election shall be conducted as set forth in the Procedures. All ballots in the Election must be received by the Office of the City Clerk no later than 5:30 PM on the date of the Election in order to be counted. The Proposed Fee is more completely described in Exhibit “A,” attached hereto and incorporated herein by reference. If the property owners approve the Proposed Fee at the Mail Ballot Election, that shall indicate their approval of this Resolution and authorize the City Council to levy the Proposed Fee at any rate that does not exceed the rate set forth in Exhibit “A”. Not Yet Approved 160929 jb 6053836 SECTION 2. Staff is directed to take all actions necessary for the conduct of the Mail Ballot Election. SECTION 3. It is the intent of the Council that the $4.25 per month per ERU base storm drainage fee levied since 1994 will continue unless the Proposed Fee is approved. If the Proposed Fee is approved by the property owners at the mail ballot election and imposed by the City Council, the existing base storm drainage fee will not be charged in any month during which the Proposed Fee is effective. SECTION 4. In accordance with Section 53755.5 of the Government Code, Section E of Part 3 of the Procedures, attached as Exhibit “B” and incorporated herein by reference, is revised to read “During and after the tabulation, the ballots shall be treated as public records, as defined in Section 6252 of the California Government Code, subject to public disclosure and made available for inspection by any interested person. The ballots shall be preserved for a minimum of two years, after which they may be destroyed as provided in accordance with applicable law.” SECTION 5. The Council finds that this resolution calling a mail ballot election does not meet the definition of a project for the purposes of the California Environmental Quality Act, under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. The Council’s review and adoption of a funding mechanism for storm water management projects is not a project under CEQA Guidelines Section 15378(b)(4), because a “project” does not include the creation of government funding mechanisms which do not involve commitment to any specific project which may result in a potentially significant environmental impact. Thus, no environmental analysis is required at this time. Future CEQA review will occur based on the selection of storm drain capital improvement projects that may be funded by the proposed storm water management fees. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor Not Yet Approved 160929 jb 6053836 APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Public Works ____________________________ Director of Administrative Services Not Yet Approved 160929 jb 6053836 EXHIBIT “A” DESCRIPTION OF THE PROPOSED STORM WATER MANAGEMENT FEE A. Overview The proposed Storm Water Management Fee would have two components: A Base Component A Projects and Infrastructure Component B. Proposed Rates (Effective June 1, 2017) The Proposed Rate for the Storm Water Management Fee effective June 1, 2017 is: $13.65 per ERU (Equivalent Residential Unit) per month. This is comprised of: Base Component of $7.48 per ERU per month; and Projects and Infrastructure Component of $6.17 per ERU per month C. Inflation Adjustment In order to offset the effects of inflation on labor and material costs, the maximum rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) will be increased annually each July 1 (beginning July 1, 2018), by the lesser of (i) the percentage change in the Consumer Price Index [CPI] for the San Francisco-Oakland-San Jose CSMA, published by the United States Department of Labor, Bureau of Labor Statistics during the prior calendar year or (ii) 6%. The City Council would have the authority to set the rate for the Storm Water Management Fee (and each component of the Storm Water Management Fee) at any rate that is less than or equal to the inflation adjusted maximum rate. D. Duration 1) Base Component The Base Component would be charged monthly, beginning June 1, 2017, until terminated by the City Council. Not Yet Approved 160929 jb 6053836 2) Projects and Infrastructure Component The Projects and Infrastructure Component would be charged monthly, beginning June 1, 2017. Unless further extended by the voters, the Projects and Infrastructure Component would no longer be charged beginning June 1, 2032. E. Method of Collection and Calculated The Storm Water Management Fee would be collected and calculated in the manner set forth in City of Palo Alto Utilities Rule and Regulation No. 25, subject to the exemptions set forth in this Section E. As a general rule, ERU's are assigned to each parcel subject to the fee on the following basis: Single-Family Residential Parcels: Lot Size ERU's <6,000 sq. ft. 0.8 ERU 6,000 - 11,000 sq. ft. 1.0 ERU >11,000 sq. ft. 1.4 ERU All Other Improved Parcels: Number of ERU = Impervious Area (Sq. Ft.) / 2,500 Assigned ERU's are rounded to the nearest one-tenth of an ERU. Unimproved parcels are not subject to the Storm Water Management Fee, and the fee will not be charged for developed parcels that (i) have their own maintained storm drainage facility or facilities, and which do not utilize City facilities or (ii) make no substantial contribution of storm or surface water to the City's storm drainage facilities. For a more complete description of the manner of collection and calculation of the Storm Water Management Fee, reference is made City of Palo Alto Utilities Rule and Regulation No. 25. F. Use of Funds Proceeds of the Storm Water Management Fee would be available to the City exclusively to pay for: (A) Improving the quality of storm and surface water; (B) The operation, maintenance, improvement and replacement of existing City storm drainage facilities; and (C) The operation, maintenance, and replacement of future such facilities. Not Yet Approved 160929 jb 6053836 Permissible uses would include, but not be limited to, Green Storm Water Infrastructure programs (including financial incentives to property owners) intended to reduce the quantity of storm water entering the City's public storm water system or to improve the quality of storm water before it enters that system through measures including, but not limited to, rain gardens, rain barrels/cisterns, green roofs, tree wells, bioretention/infiltration basins and planters, and permeable pavement. G. Oversight provision for proposed fee increase The City Council would appoint an oversight committee to monitor and review expenditures for all storm water funding elements, including, but not limited to, Green Storm Water Infrastructure projects, storm water Capital Improvement Program projects, and Incentive Project funding and ensure that the money raised from the increased storm water management fee is spent in accordance with this resolution. The Committee would be empowered to consider and recommend consolidation of Green Storm Water Infrastructure and Incentive Project funding for particular projects. The City Council may choose to retain the members of the existing Council-appointed Storm Drain Oversight Committee to perform this oversight function. The oversight committee would report its findings to the City Council at least annually. H. Pay-as-you-go funding of capital improvements The storm drain capital improvements to be funded through the proposed Storm Water Management Fee would be paid for on a pay-as-you-go basis, without debt financing. 6053814 EXHIBIT "B" PROCEDURES FOR THE CONDUCT OF PROTEST HEARING AND MAIL BALLOT ELECTION IN CONNECTION WITH PROPOSED STORM WATER MANAGEMENT FEE 2016 The following procedures have been adopted by the City Council of the City of Palo Alto for the purpose of conducting all proceedings required by Article XIIID of the California Constitution for consideration of the proposed Storm Water Management Fee. Where no specific procedures are imposed by Article XIIID, or the Proposition 218 Omnibus Implementation Act (Gov’t Code Section 53750 et seq.), these procedures shall apply. 6053814 Part I Introduction In connection with consideration of its proposed Storm Water Management Fee, the City of Palo Alto will conduct two proceedings: 1. A Protest Hearing. 2. A Mail Ballot Election. A Mail Ballot Election will only be held if (i) the City Council determines that, as of the close of the public input portion of the Protest Hearing, a majority protest does not exist and (ii) the City Council adopts a resolution calling a Mail Ballot Election. All references in this document to the City Clerk shall, to the extent the reference requires that the City Clerk perform a function, be deemed to include any employee of the City who is designated by the City Clerk to perform that function. The term "owner", when used in this document and not otherwise defined, includes any person who qualifies as an owner for purposes of Article XIII D, Section 6 of the California Constitution. 6053814 Part 2 Protest Hearing A. Notice 1. Not less than 45 days prior to the date of the Protest Hearing, Notice of the Protest Hearing shall be mailed to the Record Owner of each parcel to which the Storm Water Management Fee is proposed to apply. 2. The Notice shall include all information required by Article XIII D, Section 6(a)(1) of the California Constitution and such other relevant information as staff may determine to include. 3. For purposes of this Subsection A, "Record Ownership" shall be determined by the name appearing on the last equalized secured property tax assessment roll. Notice shall be mailed to the Record Owner at the mailing address indicated on that roll. B. Protests 1. Written Protests will be accepted by the City Clerk via US Mail or hand delivery at the Office of the City Clerk located at 250 Hamilton Avenue, Palo Alto, CA 94301 during regular business hours. Written Protests will also be accepted by the City Clerk at the Protest Hearing. All Written Protests must be received by the City Clerk prior to the close of the public input portion of the Public Hearing in order to be considered pursuant to these Procedures. 2. A Written Protest must (i) state that it is a protest against the proposed Storm Water Management Fee; (ii) identify the parcel with respect to which it is made (either by Assessor’s Parcel Number or Street Address); (iii) identify the owner for whom the Written Protest is submitted; (iii) include the printed name of the natural person signing the Protest (if that person is not himself or herself the owner); and (iv) include the original wet signature of the owner or of a person legally authorized to execute documents on behalf of the owner. 3. If a Parcel served by the City is owned by a partnership, joint tenancy, or tenancy in common, any partner, joint tenant, or tenant in common may submit a Written Protest, but only one Protest will be counted per Parcel and any one Protest submitted in accordance with these rules will be sufficient to count as a Protest for that Parcel. 4. Where an owner of a Parcel is not a natural person, a Written Protest may be submitted by the owner and signed by any person authorized to execute documents on behalf of the owner. 5. In the event a person not shown on the last equalized secured property tax assessment roll assumes (or otherwise has) ownership of a Parcel, that person may submit a Written Protest with respect to that Parcel. Such protest must include all information otherwise required of a Written Protest and must also include either (i) proof of such ownership or (ii) a statement, submitted under 6053814 penalty of perjury by the person submitting the Written Protest, that the person signing the Protest is an owner of the Parcel or is legally authorized to submit the Protest on behalf of the owner of the Parcel. 6. Anyone who submits a Written Protest may withdraw it by submitting to the City Clerk a signed written request that the protest be withdrawn. The request shall contain sufficient information to identify the affected Parcel and the name of the person who submitted both the Protest and the request that it be withdrawn. 7. To ensure transparency and accountability in the fee protest tabulation, Protests shall constitute disclosable public records from and after the time they are received. C. Tabulation 1. The City Clerk or her designee shall determine the validity of all Protests. That person (the “Tabulator”) shall not accept as valid any Protest if he or she determines that any of the following conditions exist: a. The Written Protest does not identify a Parcel subject to the Storm Water Management Fee. b. The Written Protest does not bear an original wet signature of (i) an owner of the identified Parcel or (ii) a person legally authorized to submit the Written Protest on behalf of the owner. c. The Written Protest does not state its opposition to the proposed fee. d. The Written Protest was not received before the close of the public input portion of the Public Hearing. e. A request to withdraw the Written Protest is received prior to the close of the public input portion of the Public Hearing. 3. The Tabulator’s decision that a Written Protest is not valid shall constitute a final action of the City and shall not be subject to any internal appeal. 4. A majority protest exists if Written Protests are timely submitted and not withdrawn with respect to a majority of the parcels subject to the proposed fee. The City Council may not adopt a resolution calling a Mail Ballot Election if there is a majority protest. 5. At the conclusion of the public hearing, the Tabulator shall complete the tabulation of all Written Protests received, including those received during the Public Hearing and shall report the results of the tabulation to the City Council upon completion. If review of the Written Protests received demonstrates that the number received is manifestly less than one-half of the Parcels served by the City with respect to the fee which is the subject of the protest, then the Tabulator may advise the City Council of the absence of a majority protest without determining the validity of all Written Protests. 6053814 Part 3 Mail Ballot Election A. Mailing of Ballot 1. Not less than 45 days prior to the date of the Mail Ballot Election, Election Materials shall be mailed to the Record Owner of each Parcel to which the Storm Water Management Fee is proposed to apply. 2. Election Materials shall include a Notice, a Ballot, and a Ballot Return Envelope. 3. The Notice shall include: (i) The total amount of the Storm Water Management Fee chargeable to all Parcels in the City that are subject to the Storm Water Management Fee; (ii) The amount chargeable to the owner's particular Parcel; (iii) A description of the inflation adjustment formula applicable to the Storm Water Management Fee; (iv) The duration of the Storm Water Management Fee; (v) The reason for the Storm Water Management Fee and the basis upon which the amount of the proposed fee was calculated; (vi) The date and time by which Ballots must be returned to the City Clerk and the address for return of Ballots; (vii) The date, time and location where Ballots will be tabulated; (viii) A summary of the procedures applicable to the completion, return, and tabulation of the Ballots; (ix) A disclosure that the Fee will only be approved if the number of Ballots cast (and not withdrawn) in favor of the Storm Water Management Fee exceed the number of Ballots cast (and not withdrawn) in opposition to the Storm Water Management Fee; and (x) Such other relevant information as staff may determine to include. 4. The Ballot shall include: (i) The address for return of Ballots; (ii) The name of the Record Owner; (iii) An identification of the Parcel; 6053814 (iv) A place where the person casting the Ballot may indicate support or opposition to the Storm Water Management Fee; (v) A place where the person submitting the Ballot may print his or her name and execute a statement under penalty of perjury that he or she is an owner of the Parcel identified on the Ballot or is a person legally entitled to submit a Ballot on behalf of an owner; and (vi) Such other relevant information as staff may determine to include. 5. The Ballot Return Envelope shall include prepaid postage and be preaddressed to the Office of the City Clerk. The City Clerk may establish a special Post Office Box address for the return of Ballots. If the City Clerk does so, that address shall be used on the Ballot Return Envelope. In order to ensure proper handling, the Ballot Return Envelope shall include on its face the words “Ballot Return Envelope—Do Not Open Until Close of [date] Election”. 6. Any information required to be included on the Notice may instead be included on the Ballot. 7. For purposes of this Subsection A, "Record Ownership" shall be determined by the name appearing on the last equalized secured property tax assessment roll. Notice, a Ballot, and a Ballot Return Envelope shall be mailed to the Record Owner at the mailing address indicated on that roll. B. Completion of Ballots 1. Who May Complete a Ballot A Ballot may be completed by an owner of the parcel subject to the fee. If the owner of the Parcel is a partnership, joint tenancy, or tenancy in common, a Ballot may be completed by any of the general partners, joint tenants, or tenants in common. Except as set forth below, only one Ballot may be completed for each Parcel. 2. Proportional Ballots If a Parcel has multiple owners, any owner may request a Proportional Ballot. If the ownership interest of the owner is not shown on the last equalized secured property tax assessment roll, such request must include evidence, satisfactory to the City Clerk, of the owner's Proportional rights in the Parcel. The City Clerk will provide the Proportional Ballot to the owner at the address shown on the assessment roll. Any request for a Ballot to be mailed to another location must be made in writing and must include evidence, satisfactory to the City Clerk, of the identity of the person requesting the Ballot. Each Proportional Ballot will be marked to show the date on which the Ballot was provided, to identify it as a Proportional Ballot and to indicate the owner's Proportional rights in the Parcel. The City Clerk will keep a record of each Proportional Ballot provided to an owner. 3. Duplicate Ballots If a Ballot is lost, withdrawn, destroyed or never received, the City Clerk will mail or otherwise provide a Duplicate Ballot to the owner upon receipt of a request in writing delivered to the City Clerk. The 6053814 Duplicate Ballot will be marked to show the date on which the Ballot was mailed or provided and to identify it as a Duplicate Ballot or a Duplicate Proportional Ballot. The same procedure applies to Duplicate Ballots or Duplicate Proportional Ballots which are lost, withdrawn, destroyed, or never received. If the ownership interest of the owner requesting the Duplicate Ballot is not shown on the last equalized secured property tax assessment roll (as, for example, when a Parcel has been acquired after the assessment roll is equalized), the Duplicate Ballot request must include evidence, satisfactory to the City Clerk, of the person’s rights in the Parcel. In this case, the Duplicate Ballot shall indicate the name of the owner who has requested the Ballot. The City Clerk will provide the Duplicate Ballot to the owner at the address shown on the assessment roll. Any request for a Ballot to be mailed to another location must be made in writing and must include evidence, satisfactory to the City Clerk, of the identity of the person requesting the Ballot. Each Duplicate Ballot will be marked to show the date on which the Ballot was provided, to identify it as a Duplicate Ballot. The City Clerk will keep a record of each Duplicate Ballot provided to an owner. 4. Provisional Ballot If a person requests a Duplicate Ballot, and that person does not provide the City Clerk with evidence to the City Clerk that is sufficient to demonstrate to the City Clerk that the person is the owner of a Parcel that will be subject to the Storm Water Management Fee, the City Clerk will issue that person a Provisional Ballot. Each Provisional Ballot shall be marked to show the date on which the Ballot was provided, to identify the person to whom it was issued, and to identify the Parcel for which the requesting person claims an ownership interest. The City Clerk will keep a record of each Provisional Ballot provided. 5. Marking and Signing the Ballot To complete a Ballot, the owner of the Parcel must (1) mark the appropriate box supporting or opposing the proposed Storm Water Management Fee, and (2) sign, under penalty of perjury, the statement on the Ballot that the person completing the Ballot is an owner of the Parcel or a person legally authorized to execute documents on behalf of the owner. Ballots must be completed in ink and include the original wet signature of the signer. 6. Only Ballots Provided by the City Will Be Accepted The City Clerk will only accept Ballots mailed or otherwise provided to owners by the City. B. Return of Ballots 1. Where to Return Ballots Ballots may be hand-delivered to the Office of the City Clerk located at 250 Hamilton Avenue, Palo Alto, CA 94301 during the normal business hours of that office. Ballots may also be returned to the Office of 6053814 the City Clerk by mail. The mailing address for return of Ballots shall be the address printed on the Ballot and Ballot Return Envelope, and may be the usual mailing address of the Office of the City Clerk or a special Post Office Box established for this purpose. 2. When to Return Ballots All returned Ballots must be received by the City Clerk prior to the date and time set by the City Council in the resolution calling the election. The date shall be any Tuesday selected by the City Council (aside from the date of a statewide direct primary election or statewide general election). 3. Withdrawal of Ballots Anyone who submits a Ballot may withdraw it by submitting to the City Clerk a signed written request that the Ballot be withdrawn. The request shall contain sufficient information to identify the affected Parcel and the name of the person who submitted both the Ballot and the request that it be withdrawn. When Ballots are tabulated, the City Clerk will segregate withdrawn Ballots from all other returned Ballots. The City Clerk will retain all withdrawn Ballots and will indicate on the face of such withdrawn Ballots that they have been withdrawn. If any Ballot has been withdrawn, the person withdrawing the Ballot may request a Duplicate Ballot. 4. Changes to Ballots In order to change the contents of a Ballot that has been submitted, the person who has signed that Ballot must (1) request that such Ballot be withdrawn, (2) request that a Duplicate Ballot be issued, and (3) return the Duplicate Ballot fully completed. Each of these steps must be completed according to the procedures set forth above. C. Tabulation of Ballots 1. Which Ballots Will Be Counted? Only Ballots which are completed and returned in compliance with these procedures will be counted. Ballots received by the City Clerk after the close of the deadline for return of Ballots will not be counted. Ballots which are not signed by the owner will not be counted. Ballots with no boxes marked, or with more than one box marked, will not be counted. Ballots withdrawn in accordance with these procedures will not be counted. The City will keep a record of each Proportional, Duplicate, or Provisional Ballot mailed or otherwise provided to an owner and will ensure that only one Ballot is tabulated for the Parcel (or for each owner in the case of Proportional Ballots). Provisional Ballots shall not be counted unless, by the deadline for returning Ballots, the City Clerk has received sufficient evidence of ownership as would have been required for the issuance of a Duplicate 6053814 Ballot. All Provisional Ballots that have been returned to the City Clerk shall be retained along with other Ballots so returned. 2. When and Where Ballots Will Be Tabulated The City Clerk will count the Ballots in the City Council Chambers at a date and time scheduled for such purpose by the City Clerk. Tabulation will be performed in view of such members of the public who choose to observe such tabulation. Ballots will not be removed from their Return Envelopes until tabulation begins. 3. How Ballots Will Be Tabulated Ballots may be counted by hand, by computer or by any other tabulating device. Each Ballot, other than a Proportional Ballot, will count as one vote. Proportional Ballots will be counted as a fraction of a vote, weighted in accordance with the respective ownership interests of each Proportional Ballot submitted. If one or more Proportional Ballots are returned for a Parcel and a non- Proportional Ballot is returned for the Parcel, the non-Proportional Ballot will either be disregarded (if the same owner has returned a Proportional Ballot) or treated as a Proportional Ballot (if the same owner has not returned a Proportional Ballot). 4. Who Will Tabulate Ballots? Ballots will be tabulated by the City Clerk or some other impartial person designated by the City Council who does not have a vested interest in the outcome of the Election. The City Clerk or other designated person may be assisted by any of the staff and consultants of the City. 5. Results of Tabulation The property owners will be deemed to have approved the Storm Water Management Fee (including any associated inflation adjustment formula) if the number of votes cast in favor of the Storm Water Management Fee exceeds the number of votes cast in opposition to the Storm Water Management Fee. 6. Announcement of Tabulation The results of the tabulation will be announced at a meeting of the City Council and will be certified by resolution of the City Council. D. Resolution of Disputes In the event a question arises regarding whether the signer of a Ballot (or person on whose behalf a Ballot has been submitted) is an owner of the Parcel to which the Ballot applies, the City Clerk will make such determination from the last equalized secured property tax assessment roll and any evidence of ownership submitted to the City Clerk prior to the closing of the election. The City Clerk will be under no duty to obtain or consider any other evidence as to ownership of property and her determination of ownership will be final and conclusive. 6053814 In the event a question arises regarding whether the signer of a Ballot is legally entitled to submit a Ballot on behalf of an owner, the City may rely on the statement on the Ballot signed under penalty of perjury and any evidence submitted to the City Clerk prior to the closing of the election. The City Clerk will be under no duty to obtain or consider any other evidence as to whether the signer of the Ballot is an authorized representative of the owner and its determination will be final and conclusive. E. Confidentiality The City considers the vote contained on a Ballot (i.e. whether the box in support is checked or the box in opposition is checked) to be confidential, and will not disclose that fact with respect to any specific voter unless ordered to do so by a court of competent jurisdiction. During and after the tabulation, the ballots shall be treated as public records, as defined in Section 6252 of the California Government Code, subject to public disclosure and made available for inspection by any interested person. The ballots shall be preserved for a minimum of two years, after which they may be destroyed as provided in accordance with applicable law. February 24, 2017 Dear Property Owner: In September, the City mailed information about a proposed Storm Water Management Fee that would replace the City’s existing Storm Drainage Fee. On October 24, 2016, the City Council held a public hearing regarding the proposed fee. Following the hearing the City Council adopted its Resolution No. _____, which directed that the proposed fee be submitted to property owners at a Mail Ballot Election. Enclosed is your ballot for the Mail Ballot Election. The Mail Ballot election is being conducted pursuant to the City’s “Procedures for the Conduct of Protest Hearing and Mail Ballot Election in Connection with Proposed Storm Water Management Fee.” A copy of these procedures, and of Resolution No. ______, can be found online at www.cityofpaloalto.org/stormwaterfee. The procedures describe how you can withdraw a submitted ballot, or obtain a duplicate, proportional, or provisional ballot. Ballots may be returned to the Office of the City Clerk, located at 250 Hamilton Avenue, Palo Alto, CA during normal business hours. Ballots may also be returned via mail addressed to ______________. In order to be counted, ballots must be received by the Office of the City Clerk no later than 5:30 PM on Tuesday, April 11, 2017. Postmarks do not count. The votes cast as “yes” or “no” will determine the fate of this fee increase. Ballots that are not returned or are returned late cannot be counted, so please return your ballot. The Storm Water Management Fee will only be approved if the number of Ballots cast (and not withdrawn) in favor of the fee exceed the number of Ballots cast (and not withdrawn) in opposition to the fee. Each ballot counts as a single vote. The City Clerk will count the Ballots in the City Council Chambers beginning at 9:00 AM on April 12, 2017. Tabulation will be performed in view of such members of the public who choose to observe such tabulation. Ballots will not be removed from their return envelopes until tabulation begins. As required by state law, during and after tabulation, ballots will be treated as public records. Enclosed is a description of the proposed Storm Water Management Fee. Together with this letter, the description constitutes the notice of the election. If you have any questions about the mail ballot election, need to have a copy of any document described in this letter mailed to you, please call Beth Minor at (650) 329-2571. If you have questions regarding the fee increase, please call _______ in the Public Works Department at (650) __________, or visit the City’s web site at www.cityofpaloalto.org/stormwaterfee. Please Vote! OFFICIAL MAIL BALLOT CITY OF PALO ALTO APRIL 11, 2017 MAIL BALLOT ELECTION PROPOSED STORM WATER MANAGEMENT FEE This Ballot is for the property designated as Assessor’s Parcel Number: <APN> located at :<Situs Address> <Owner> <Mail Address> <Mail City>, <Mail State> <Mail Zip> This is your official ballot for the Tuesday, April 11, 2017 City of Palo Alto Mail Ballot Election. You will receive a separate ballot for each parcel you own that is subject to the fees, and one vote may be cast for each such parcel. To complete your ballot, mark an (X) in the line next to the word “YES” or next to the word “NO” below, sign and date the ballot, and return the entire ballot to the City Clerk’s Office via mail at __(PO BOX ADDRESS, if using)__ or in person at 250 Hamilton Avenue, Palo Alto, CA. If you wrongly mark, tear, or deface this ballot, you may obtain a duplicate ballot by requesting one in writing from the Office of the City Clerk. All ballots must be received by the Office of the City Clerk no later than 5:30 PM on Tuesday, April 11, 2017. Assessor’s Parcel Number: <APN> Proposed Storm Drain Management Fee: $ <Amount> per month This is a monthly fee. The amount shown above is the projected monthly charge for the indicated parcel based on the methodology described in the election notice and in Resolution No. _(Oct. 24 Reso)_. As set forth in the notice and resolution, the proposed fee would be subject to an annual adjustment based on published inflation data, and capped at 6% per year. MARK ONLY ONE OPTION _______ YES -- I support the proposed Storm Drain Management Fee (and associated inflation adjustment) upon my parcel. ‘ _______ NO — I oppose the proposed Storm Drain Management Fee (and associated inflation adjustment) upon my parcel. IMPORTANT: BALLOT MUST BE SIGNED AND DATED BELOW IN ORDER TO BE COUNTED I hereby declare, under penalty of perjury, that I am an owner of the property identified on this ballot or I am legally entitled to submit a ballot on behalf of an owner. Signed ___________________________________________________ Date _______________________ Print Name of Person Signing Ballot: ____________________________ This ballot will be accepted and tabulated pursuant to the City’s “Procedures for the Conduct of Protest Hearing and Mail Ballot Election in Connection with Proposed Storm Water Management Fee.” A copy of these procedures can be found online at www.cityofpaloalto.org/stormwaterfee . Not Yet Approved 160502 jb 6053835 1 Resolution No. ____ Resolution of the Council of the City of Palo Alto Amending Rule and Regulation 25 (Special Storm and Surface Water Drainage Utility Regulations) R E C I T A L S A. Rule and Regulation 25 (Special Storm and Surface Water Drainage Utility Regulations) sets forth the manner in which the City’s Storm Drainage Fee is charged. B. On August 29, by its adoption of Resolution 9624, the City Council proposed a new Storm Water Management Fee (the “Proposed Fee”) to replace the City’s existing Storm Drainage Fee, which will also be governed by the provisions of Rule and Regulation 25. C. An update to Section 8(C) of Rule and Regulation 25 (Special Storm and Surface Water Drainage Utility Regulations) is needed in order to exempt certain developed parcels which do not impact City Storm Drainage Facilities from the City’s Storm Drainage Fee, and to clarify how the Storm Drainage Fee applies to parcels which only partially drain into the City’s Storm Drainage Facilities. D. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. The Council of the City of Palo Alto hereby RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rule and Regulation 25 (Special Storm and Surface Water Drainage Utility Regulations) is hereby amended as attached and incorporated. Utility Rule and Regulation 25, as amended, shall become effective November 1, 2016. SECTION 2. This Resolution is not intended to increase the rate of the City’s existing Storm Drainage Fee. In the unintended event this Resolution would cause the Storm Drainage Fee to increase (as that term is defined in Government Code Section 53750(h)(1)), it is the intent of the City Council that the charge for that parcel continue to be calculated as if this Resolution had not been adopted. The reservation set forth in this Section does not apply to the Proposed Fee or to any fee that is approved in a mail ballot election conducted subsequent to the approval of this Resolution. SECTION 3. The adoption of this resolution amending Utility Rules and Regulations does not meet the definition of a project for the purposes of the California Environmental Not Yet Approved 160502 jb 6053835 2 Quality Act, under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Deputy City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-1-201011-1-2016 Sheet No. 1 A. GENERAL For the purpose of City of Palo Alto Rate Schedule D-1 and this Rule and Regulation, the following words and terms shall be defined as follows, unless the context in which they are used clearly indicates otherwise. The definitions of words and terms set forth in Titles 12 and 13 of the Palo Alto Municipal Code shall also apply herein to the extent that they are not inconsistent herewith: 1. “Developed Parcel” shall mean any lot or parcel of land altered from its natural state by the construction, creation, or addition of impervious area, except public streets and highways. 2. “Equivalent Residential Unit (ERU)” shall mean the basic unit for the computation of storm drainage fees. The ERU’s for all parcels other than single-family residential properties shall be computed to the nearest 1/10 ERU using the following formula: Number of ERU = Impervious Area (Sq. Ft.) 2,500 Sq. Ft. The ERU's for single-family Residential properties shall be computed as set forth in CPAU Rate Schedule D-1. 3. “Impervious Area” shall mean any part of any developed parcel of land that has been modified by the action of Persons to reduce the land’s natural ability to absorb and hold rainfall. This includes any hard surface area which either prevents or retards the entry of water into the soil mantle as it entered under natural conditions pre-existent to development, and/or a hard surface area which causes water to run off the surface in greater quantities or at an increased rate of flow from the flow present under natural conditions pre-existent to development. By way of example, common impervious areas include, but are not limited to roof tops, walkways, patios, driveways, parking lots or storage areas, concrete or asphalt paving, gravel roads, or any cleared, graded, paved, graveled, or compacted surface or packed SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-1-201011-1-2016 Sheet No. 2 earthen materials, or areas covered with structures or other surfaces which similarly impede the natural infiltration of surface water into the soil mantle. 4. “Non-Single-Family Residential Property” shall include all developed parcels zoned or used for multi-family, commercial, industrial, retail, governmental, or other non-single family Residential purposes and shall include all developed parcels in the City of Palo Alto not defined as single-family Residential property herein. 5. “Parcel” shall mean the smallest separately segregated lot, unit or plot of land having an identified owner, boundaries, and surface area which is documented for property tax purposes and given a Tax lot number by the Santa Clara County Assessor. 6. “Primary CPAU Account” shall mean that CPAU Account, as determined below, that will be assessed the storm drainage fee for a given developed parcel: a. If there is only one CPAU Account associated with a developed parcel, then that Account is the Primary CPAU Account. b. If there is more than one CPAU Account associated with a developed parcel, then the Primary CPAU Account shall be the Account listed below, in order of preference: 1. The CPAU Account designated as the “house Account” or, if none or more than one, then; 2. The CPAU Account in the name of the owner of the parcel, or if none, then; 3. The CPAU Account(s) in the name of the occupier(s) of the parcel. 4. If more than one Account, then the CPAU Account that includes the most CPAU Services. 7. “Single-Family Residential Property” shall include all developed parcels with either one or two single-family detached housing units or one two-unit attached dwelling structure commonly known as a “duplex.” SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-1-201011-1-2016 Sheet No. 3 8. “Storm and Surface Water Control Facilities” shall mean all man-made structures or natural water course facility improvements, developments, properties or interest therein, made, constructed or acquired for the conveyance of Storm or Surface Water Runoff for the purpose of improving the quality of, controlling, or protecting life or property from any storm, flood, or surplus waters. 9. “Storm Drainage Facilities” shall mean the storm and surface water drainage systems comprised of storm and surface water control facilities and any other natural features which store, control, treat and/or convey storm and surface water. Storm Drainage Facilities shall include all natural and man-made elements used to convey storm water from the first point of impact with the surface of the earth to the suitable receiving body of water or location internal or external to the boundaries of the City of Palo Alto. Such facilities include all pipes, appurtenant features, culverts, streets, curbs, gutters, pumping stations, channels, streams, ditches, wetlands, detention/retention basins, ponds, and other storm water conveyance and treatment facilities whether public or private. See CPAU Rule and Regulation No. 8 “Access to Premises.” 10. “Storm and Surface Water” shall mean water occurring on the surface of the land, from natural causes such as rainfall, whether falling or flowing onto the land in question. 11. “Undeveloped Parcel” shall mean any parcel which has not been altered from its natural state by the construction, creation, or addition of impervious area. B. STORM DRAINAGE FEES 1. There is hereby imposed on each and every developed parcel of land within the City of Palo Alto, and the owners and occupiers thereof, jointly and severally, a Storm Drainage fee. This fee is deemed reasonable and is necessary to pay for: a. Improving the quality of storm and surface water; b. The operation, maintenance, improvement and replacement of the existing City storm drainage facilities; and c. The operation, maintenance, and replacement of future such facilities. SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-1-201011-1-2016 Sheet No. 4 It is the intent of the City of Palo Alto, and the City has calculated the storm drainage fee in such a manner, that the amount of the fee imposed upon any parcel shall not exceed the proportional cost of the service attributable to the parcel. It is the further intent of the City that revenues derived from the fee shall not exceed the funds required to provide the property-related Services described in this Rule and Regulation 25, and that revenues derived from the fee shall not be used for any purpose other than those described in this Rule and Regulation 25. 2. All of the proceeds of these fees are deemed to be in payment for use of City storm drainage facilities by the developed parcel on, and with respect to, which the fee is imposed, and the owners and/or occupiers thereof. 3. The storm drainage fee shall be payable monthly and shall be paid to CPAU, as billed by CPAU, for each and every developed parcel in the City by the owner or occupier responsible for the Primary CPAU Account for other CPAU Services for the subject parcel, unless otherwise agreed in writing by CPAU. The method of billing described in this Rule and Regulation 25 has been designed for administrative efficiency. However, because the storm drainage fee is a "property-related fee" as defined by Article XIIID, Section 6 of the California Constitution, a property owner may in writing request that the storm drainage fee for a parcel owned by the property owner be billed directly to the owner, notwithstanding the typical method of billing. Because the storm drainage fee is a "property-related fee," the parcel owner shall be responsible to pay all unpaid or delinquent storm drainage fees. For administrative efficiency, the storm drainage fee for condominium and townhouse- style developments is typically billed to the CPAU Account of the Homeowners' Association. 4. If a developed parcel does not have a CPAU Account on the effective date of this Rule and Regulation, a new Account shall be established for that parcel and billed to the owner as shown on the latest County Assessor's property Tax rolls until such time as a Primary CPAU Account is established for other CPAU Services. 5. When an undeveloped parcel is developed, a new Account shall be established and billed to the owner of that parcel as shown on the latest property Tax rolls of the Santa Clara SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-1-201011-1-2016 Sheet No. 5 County Assessor until such time as a Primary CPAU Account is established for other CPAU Services. 6. BASIS FOR CALCULATION a. The storm drainage fee shall be based on the relative contribution of Storm and Surface Water from a given developed parcel to City storm drainage facilities. b. The relative contribution of Storm and Surface Water from each developed parcel shall be based on the amount of impervious area on that parcel and shall determine that parcel’s storm drainage fee. c. For administrative efficiency, the impervious area of condominium and townhouse-style developments is typically calculated for the entire development rather than on a per-parcel basis. d. The extent of impervious area will be established to the nearest square foot by any of the following methods: 1. Computation of the impervious area using on-site measurements of the apparent outside boundaries of the impervious area in or on such developed parcels made by CPAU or on its behalf; or 2. Computation of the impervious area using the dimensions of the impervious area in or on the developed parcels which are set forth and contained in the records of the office of the County Assessor. 3. Estimation, calculation and computation of the impervious area using aerial photography or photogrammetry, or using the information and data from on-site measurements of like or similar property or features or as contained in City or County records. 4. Computation of the impervious area using information submitted by building permit Applicants on forms provided by the City, subject to review and correction by the City. SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-1-201011-1-2016 Sheet No. 6 7. CALCULATION OF MONTHLY FEE Monthly fees for all developed parcels shall be computed in accordance with the following formula: Number of ERU’s x Rate per ERU as set forth in CPAU Rate Schedule D-1. 8. APPLICATION a. Developed Parcels: Storm drainage fees shall apply to all developed parcels within the City, including those classified as non-profit or tax-exempt for ad valorem Tax purposes. The fees shall apply to all government properties, to the full extent permitted by the constitutions of the United States and the State of California, including developed parcels of the City of Palo Alto, City-owned buildings and parks, but excluding public streets and highways. b. Undeveloped Parcels: Storm drainage fees shall not be levied against undeveloped parcels that have not been altered from their natural state as defined herein under “Impervious Areas.” c. Proportional Reduction of FeesParcels That Do Not Use The City’s Storm Drainage Facilities: Developed parcels that (i) have their own maintained storm drainage facility or facilities, and which do not utilize City Storm Drainage Ffacilities or (ii) which make no substantial contribution of Storm or Surface Water to the City’s Storm Drainage Ffacilities shall be liable to pay only that portion of the storm drainage fee attributable to the generic discharge of storm runoff (e.g. coordination with the Santa Clara Valley Water District on regional flood control projects, administration of the City's flood hazard regulations, and implementation of the urban runoff pollution prevention program) and shall not be liable to pay for the portion of the fee attributable to the actual usage of (i.e. drainage into) the City's Storm Drain system (e.g. Storm Drain system capital improvements and maintenance) exempt from the fee. Developed parcels that have a portion of their impervious area within City of Palo Alto shall be cCharged only for that portion of impervious area which is in the City of Palo Alto. SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-1-201011-1-2016 Sheet No. 7 Developed parcels that drain totally or partially into an area outside the City of Palo Alto shall be charged only for that portion of impervious area that drains into the City of Palo Alto or City Storm Drainage Facilities.liable to pay only that portion of the storm drainage fee attributable to the generic discharge of storm runoff (e.g. coordination with the Santa Clara Valley Water District on regional flood control projects, administration of the City's flood hazard regulations, and implementation of the urban runoff pollution prevention program) and shall not be liable to pay for the portion of the fee attributable to the actual usage of (i.e. drainage into) the City's Storm Drain system (e.g. Storm Drain system capital improvements and maintenance). The City of Palo Alto has calculated the storm drainage fee for each parcel based on information available to the Public Works Department as to the amount of impervious area for the parcel, as well as other relevant information regarding the parcel. However, it is the intent of the City of Palo Alto that no fee shall exceed the proportional cost of Services attributable to the parcel. Therefore, a parcel owner has the right, through Administrative Review, to request a proportional reduction in the storm drainage fee if the owner believes that the parcel contributes less water to the City's Sstorm Ddrainage Ffacilities or uses fewer storm or surface water treatment Services, notwithstanding the amount of the parcel's impervious area. 9. ADMINISTRATIVE REVIEW a. Any Person who owns or pays the storm drainage fee for a developed parcel and who disputes the amount of any storm drainage fee for the parcel, or who requests a deferred payment schedule therefor may request a revision or modification of such fee from the City Engineer. b. The Person seeking Administrative Review shall make such request in writing pursuant to Rule and Regulation 11 Section H. The request for Administrative Review must be signed by the property owner. The City Engineer shall conduct the review. c. The City Engineer shall review the request and all data and documentation deemed by the City Engineer to be relevant to the request, and shall make a written determination as to whether the fee for the parcel exceeds the proportional SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 6-1-201011-1-2016 Original Sheet No. 8 cost of the service attributable to the parcel. If the City Engineer determines that the fee is proportional to the cost of service, no adjustment shall be made. If the City Engineer determines that the fee exceeds the proportional cost of service, the fee shall be adjusted accordingly. (END) City of Palo Alto (ID # 7314) City Council Staff Report Report Type: Action Items Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Professorville Historic District Design Guidelines Title: PUBLIC HEARING: Adoption of a Resolution Adopting the Professorville Historic District Design Guidelines. The Project is Exempt From the Provisions of CEQA per Class 8 Categorical Exemption (Actions Taken by Regulatory Agencies to Protect the Environment) (Continued From September 12, 2016) From: City Manager Lead Department: Planning and Community Environment Recommendation: Staff recommends that Council approve the attached Resolution (Attachment A) to adopt the Professorville Historic District Design Guidelines (Guidelines) in Attachment C with the list of corrections and edits provided in Attachment B, and finding the action exempt from review under the California Environmental Quality Act (CEQA) per Section 15308 (Actions By Regulatory Agencies for the Protection of the Environment). Executive Summary: The proposed Guidelines will provide a tool for the community to evaluate the compatibility of proposed development with the historic character of Professorville. The development of this tool was in response to Council direction on March 14, 2011 to develop design guidelines for all projects in Professorville, including compatibility criteria for new construction, additions, and remodels in the district. The Council’s action minutes are included as Attachment D. The Council reviewed the proposed Guidelines on September 12, 2016, and continued the hearing to a date uncertain, asking for clarity on corrections and clarifications presented at the time. The Council staff report from the September 12 hearing is viewable at: http://www.cityofpaloalto.org/civicax/filebank/documents/53710. For the September 12th hearing, staff provided Council with approved HRB meeting minutes (Attachment F) and at- places memorandums, including a matrix of proposed revisions. Staff has since revised the matrix as a table of proposed revisions (see Attachment B), incorporating the Council’s direction on September 12 to focus on non-substantive clarifications and corrections. City of Palo Alto Page 2 The Guidelines are accessible on the City’s Professorville Design Guidelines webpage at http://www.cityofpaloalto.org/gov/depts/pln/advance/professorville.asp. Background & Discussion: The September 12, 2016 staff report (link provided above) provided background information regarding the Professorville Historic District Design Guidelines project, including: The community input and public review process, The Certified Local Government (CLG) grant of federal funds from OHP, and The applicability and intended use of the Guidelines. The September 12 staff report also noted key issues including: Relationship of the Guidelines to code and application review, Guidelines vs. Standards, Traditional vs. Contemporary in New Construction, Variations in District Development Patterns, Feasibility and Practicality, and Contributors and Non-contributors. Six members of the public spoke to Council during the hearing; two were members of the Historic Resources Board and four were residents of homes within Professorville. The Council also received correspondence prior to the meeting, some of it urging the Council to set aside the Guidelines and take more direct action to protect historic resources in the historic district. Some of this correspondence is provided again in Attachment E. Staff’s presentation clarified that adoption of the proposed Guidelines would not preclude – and in fact would complement – any future changes to the Municipal Code and the Individual Review (IR) Guidelines to enhance regulations that apply to the Professorville District. Before continuing the hearing to a date uncertain, several Council members provided comments on the Guidelines and on proposed revisions provided in a handout at the meeting. It became clear that there was not agreement on the list of revisions, since some were clarifying only and some were substantive. As a result, the Council continued the meeting to a date uncertain and requested that staff refine the list of revisions to include non-substantive clarifications and corrections only. The list of proposed revisions (Attachment C) shows the changes that are currently proposed for the final version of the Guidelines. Briefly, the changes: Clarify that the later period of development in the district begins in the 1940s (not the 1930s), consistent with the description in the text. City of Palo Alto Page 3 Move the Secretary of Interior’s Standards forward to the first section in the document, and added an introductory paragraph explaining the background of the Standards and relationship to the Guidelines. Change “the Guidelines may be used by the HRB” to “the Guidelines will be used by the HRB”. Remove the second instance of “non-binding” recommendation for clarity. Change “desired” to “proposed” regarding setback of additions, for clarity. Change “is necessary to meet the needs of current occupants” to “is proposed…” for clarity regarding the height of additions. Add emphases, “Do Not Remove Characteristic Features or Volumes in Order to Facilitate New Construction, and “avoid significant impacts to the building’s historic character.” Add stronger emphasis and clarity regarding garage placement. Add reference to design compatibility recommendations. Add clarification regarding preservation along with land subdivision. In addition, staff recommends inserting on page 5 language required by the Office of Equal Opportunity under the terms of the CLG grant agreement for publications that result from activities that are financed in part with Federal funds. Timeline: The following table summarizes the project timeline. Activity Date Project “kick-off” postcard notices mailed to Professorville property owners and residents* December 15, 2015 Community Workshop #1 February 23, 2016 Draft guidelines posted on the City’s website for review and comment by the general public May 2, 2016 Community Workshop #2 May 26, 2016 HRB Public Hearing – Review and Comment June 9, 2016 HRB Public Hearing – Recommend Adoption July 28, 2016 City Council Hearing – Continued September 12, 2016 Submittal of Guidelines to OHP by September September 29, 2016 City of Palo Alto Page 4 Activity Date 30, 2016, in accordance with CLG Grant Agreement Submittal of Request for Reimbursement to OHP by October 10, 2016, in accordance with CLG Grant Agreement October 3, 2016 Council Consideration of Guidelines and Proposed Revisions October 24, 2016 *Additional separate postcard notices were mailed to all Professorville property owners and residents prior to each outreach event. Policy Implications: No new or updated policies are proposed. Similarly, no changes in existing application review procedures or review standards are proposed. The Guidelines will be used as a design tool for interpreting and applying the currently adopted Secretary of the Interior’s Standards for Rehabilitation, which the Guidelines are based upon (as described above), and the existing Standards of Review in the Historic Preservation Ordinance, which mandate that alterations should not adversely affect the exterior architectural characteristics, nor the historical, architectural or aesthetic value of buildings and sites in districts, nor the relationships of buildings, in terms of harmony and appropriateness, with surroundings and neighborhood structures.1 The Guidelines are consistent with and compatible with applicable elements of the Palo Alto Comprehensive Plan and the Preservation Ordinance (Municipal Code Chapter 16.49), as described in the attached Resolution (Attachment A). Resource Impact: No additional City resources will be needed to conduct application review or to provide pre- application consultations using the Guidelines. The Guidelines are not anticipated to result in any increase in the frequency or quantity of development applications submitted for review, or to result in any increase in the time required for the HRB and/or City staff to review and process applications. Currently, the HRB and City staff review development applications involving historic properties for consistency with the Secretary of the Interior’s Standards for Rehabilitation and the Standards of Review in the Historic Preservation Ordinance, as applicable. Also, City staff currently provides consultation on historic preservation matters to the general public on a regular basis. These current activities would continue to occur, and would be facilitated and possibly expedited by adoption and implementation of the Guidelines. 1 Muncipal Code Section 16.49.050 (b). City of Palo Alto Page 5 According to the CLG Grant agreement between the City and OHP, $37,000 in CLG Grant funds are reimbursable to the City upon OHP’s receipt of the final work product by September 30, 2016. On September 28, 2016, staff submitted the current draft of the Guidelines and a request for reimbursement to OHP. Staff has not yet received a response from OHP and intends to submit additional material reflecting the Council’s action. Environmental Review: The subject project has been assessed in accordance with the authority and criteria contained in CEQA, the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is exempt from the provisions of CEQA per Section 15308, Class 8 Categorical Exemption, which applies to actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. Attachments: Attachment A: Resolution Adopting Professorville Design Guidelines (PDF) Attachment B: List of Proposed Revisions (PDF) Attachment C: Professorville Historic District Design Guidelines (PDF) Attachment D: Council Minutes of March 14, 2011 (PDF) Attachment E: Correspondence Received Prior to the September 12, 2016 Meeting (PDF) Attachment F: 07-28-16 HRB transcript (PDF) NOT YET APPROVED 160822 jb 0131545 1 Resolution No. ____ Resolution of the Council of the City of Palo Alto Adopting The Professorville Historic District Design Guidelines R E C I T A L S A. On March 14, 2011, the City Council directed planning staff to work with the Historic Resources Board, Professorville residents, and other interested community members to develop design guidelines for all projects in Professorville, including compatibility criteria for new construction, additions, and remodels in the district. B. On August 17, 2015, the City Council accepted a $37,000 Grant from the California Office of Historic Preservation and adopted a related Budget Amendment Ordinance for completion of the Guidelines. C. On July 28, 2016, the Historic Resources Board reviewed the draft Guidelines, heard public testimony, provided comments to staff, and recommended the City Council adopt the final revised Guidelines. D. Upon consideration of said recommendation after duly noticed public hearing on September 12, 2016, the Council reviewed the Guidelines and made the following findings: 1. The Guidelines are consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan, including: POLICY L-12: Preserve the character of residential neighborhoods by encouraging new or remodeled structures to be compatible with the neighborhood and adjacent structures. POLICY L-48: Promote high quality, creative design and site planning that is compatible with surrounding development and public spaces. PROGRAM L-49: In areas of the City having a historic or consistent design character, design new development to maintain and support the existing character. POLICY L-51: Encourage public and private upkeep and preservation of resources that have historic merit, including residences listed in the Historic Inventory. PROGRAM L-58: For proposed exterior alterations or additions to designated Historic Landmarks, require design review findings that the proposed changes are in compliance with the Secretary of the Interior Standards for Rehabilitation. POLICY L-58: Promote adaptive reuse of old buildings. 2. The Guidelines are consistent and compatible with the purpose of the Historic Preservation Ordinance (Municipal Code Chapter 16.49), including: Designate, preserve, protect, NOT YET APPROVED 160822 jb 0131545 2 enhance and perpetuate those historic structures, districts and neighborhoods which contribute to the cultural and aesthetic heritage of Palo Alto; Stablize and improve the economic value of certain historic structures, districts and neighborhoods; Develop and maintain appropriate settings for such structures. 3. The Guidelines are consistent and compatible with the Standards of Review contained in the Historic Preservation Ordinance (Municipal Code Chapter 16.49), including: In historic districts, the proposed alterations should not adversely affect the exterior architectural characteristics nor the historical, architectural or aesthetic value of the building and its site; or the relationship of the building, in terms of harmony and appropriateness, with its surroundings, including neighborhood structures. 4. The Guidelines are consistent and compatible with the Secretary of the Interior’s Standards for Rehabilitation, as follows: 1. A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment. 2. The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided. 3. Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken. 4. Most properties change over time; those changes that have acquired historic significance in their own right shall be retained and preserved. 5. Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a historic property shall be preserved. 6. Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials. Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence. 7. Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible. 8. Significant archeological resources affected by a project shall be protected and preserved. If such resources must be disturbed, mitigation measures shall be undertaken. 9. New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. The new work shall be differentiated from the old NOT YET APPROVED 160822 jb 0131545 3 and shall be compatible with the massing, size, scale, and architectural features to protect the historic integrity of the property and its environment. 10. New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired. SECTION 2. The City Council hereby adopts the Professorville Historic District Design Guidelines, which are attached as Exhibit A with the changes noted in Exhibit B. Staff is authorized to reprint the Guidelines to incorporate the changes in Exhibit B. SECTION 3. CEQA. In conformance with the California Environmental Quality Act (CEQA), the subject project has been assessed in accordance with the authority and criteria contained in CEQA, the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is exempt from the provisions of CEQA per Class 8 Categorical Exemption, which applies to actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ ____________________________ Senior Assistant City Attorney Director of Planning and Community Environment Professorville Historic District Design Guidelines Proposed Revisions The following is a list of corrections and clarifications recommended for incorporation into the final Guidelines. Deletions are shown struck through, and additions are underlined. Where changes are proposed to the organization of the guidelines or maps, these are briefly described. Page 5 Insert language required by the Office of Equal Opportunity under the terms of the CLG grant agreement for publications that result from activities that are financed in part with Federal funds. Table of Contents & Chapter 3 “GUIDELINES FOR MAINTAINING, REPAIRING, RESTORING AND REPLACING HISTORIC MATERIALS” Table of Contents & Chapter 5 “Later Periods of Development (1930s1940s-Present)” Introduction, p. 9 “In addition, alterations may be desired in order to adapt the neighborhood’s early homes to contemporary tastes and lifestyles.” Introduction, p. 15 “…new construction should strive to retain the existing property's character-defining features.” Secretary of the Interior’s Standards for Rehabilitation, p. 23 No change to text. Move forward to the first section in the document. Add introductory paragraph explaining the background of the Standards and relationship to the Guidelines. FAQ, p. 24 “…the guidelines may will be used by the HRB…” “…the HRB may will use the guidelines as a reference document when making non-binding recommendations to homeowners.” Maps, pp. 31 & 38 No change to text. Update the maps for parcel at APN 120-18-048 457, which currently shows a single construction period and style/influence, to show two separate construction periods and styles/influences for 457 Kingsley Ave. (1910-1919; Tudor Revival) and 1140 Cowper St (1940-1979; Modern). Use colors with greater differentiation in map on p. 31. 4.1.1, 2nd bullet “If a side addition is desiredproposed, design the addition so that it is set back clearly from the primary volume of the residence.” 4.1.2, 2nd bullet “If a taller addition is necessary to meet the needs of current occupantsproposed, such as in the case of an existing one-story cottage, explore strategies to minimize the visual and physical impacts of the addition.” 10/13/16 Page 1 of 2 Professorville Historic District Design Guidelines Proposed Revisions 4.5 “Demolition ofDo Not Remove Significant Historic Features and Volumes on an Early Residence Should Be AvoidedIn Order to Facilitate New Construction. “Selective demolition in order to accommodate new additionsNew Work should be planned carefully to avoid significant impacts to the building’s historic integrity. Whenever possible, elect instead to make alterations and additions in areas where change has already occurred (see 4.1.3).” Drawing, upper, p. 89 No change to text. Revise the drawing to shorten the new side addition to better demonstrate massing compatibility with the historic structure. 5.2.1, 3rd bullet “If planning to build an attached garage space, consider the overall visual impact. Avoid a new attached garage that is visible at the front of a residenceNew garages for later homes should be detached and placed at the rear of the lot whenever possible, which would not be in keeping with Professorville's historic pattern of detached garages located at the backs of lots. An If a new attached garage is proposed for a later home, would preferablyit should be side-facing and set behind the primary volume of the house so that it is not visible at the front of the residence (see 7.3.2).” 6.1.2, 2nd bullet “Later residences that are not compatible with the character of the district may be candidates for demolition and replacement, provided that the new construction is compatible with the district. (See 6.2- 6.5 for design compatibility recommendations.)” 6.1.3, 1st and 2nd bullets “Seek out opportunities to subdivide existing large lots into new developable lotsSubdivision of large lots is an acceptable way to preserve existing homes and to create a new developable lot(s) provided the resulting new construction can be accomplished without significantly disrupting important characteristics of the setting and environment of the district and existing residences.” “Take advantage of opportunities toIf constructing a detached secondary dwelling units on an existing lots, avoid disrupting the setting and environment of existing buildings.” Appendix B: Professorville Property Data Add listing for 1156 Ramona Street (currently omitted). 10/13/16 Page 2 of 2 Professorville Historic District Design Guidelines Palo Alto, California August 2016 Revised Public Review Draft Prepared by: 3 Professorville Historic District Design Guidelines Palo Alto, California August 2016 Revised Public Review Draft Prepared by: THIS PAGE INTENTIONALLY BLANK The activity which is the subject of this design guidelines document has been financed in part with Federal funds from the National Park Service, Department of the Interior, through the California Office of Historic Preservation. However, the contents and opinions do not necessarily reflect the views or policies of the Department of the Interior or the California Office of Historic Preservation, nor does mention of trade names or commercial products constitute endorsement or recommendation by the Department of the Interior or the California Office of Historic Preservation. This program receives Federal financial assistance for identification and protection of historic properties. Under Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, as amended, the U.S. Department of the Interior prohibits discrimination on the basis of race, color, national origin, disability, or age in its federally assisted programs. If you believe you have been discriminated against in any program, activity, or facility as described above, or if you desire further information, please write to: Office of Equal Opportunity National Park Service 1849 C Street, N.W. Washington, D.C. 20240 Acknowledgments City Council Patrick Burt, Mayor Gregory Scharff, Vice Mayor Marc Berman Tom DuBois Eric Filseth Karen Holman Liz Kniss Greg Schmid Cory Wolbach Historic Resources Board Martin Bernstein David Bower Beth Bunnenberg Patricia Di Cicco Roger Kohler Michael Makinen Margaret Wimmer City Sta Advisory Panel Martin Bernstein, Historic Resources Board/Architect David Bower, Historic Resources Board/ Builder (retired) Laura Jones, Director of Heritage Services, Stanford University Lee Lippert, Palo Alto Stanford Heritage/ Architect Steve Pierce, Silicon Valley Association of Realtors City Sta Hillary Gitelman, Director of Planning and Community Environment Amy French, Chief Planning Official Matthew Weintraub, Planner Dave Dockter, Planning Arborist Special Acknowledgments to: Professorville Homeowners and Residents Dennis Backlund, City of Palo Alto Planner (retired) Prepared by Page & Turnbull, Inc. 417 Montgomery Street, 8th Floor San Francisco, California 94101 www.page-turnbull.com Contents 1. INTRODUCTION 11 Project Background 11 The Professorville Historic District 12 Purpose of the Design Guidelines 15 How to Use the Guidelines 18 Methodology for Developing the Guidelines 21 Secretary of the Interior’s Standards for Rehabilitation 23 Frequently Asked Questions (FAQ) 25 2. PROFESSORVILLE HISTORY AND CHARACTER 31 Brief History of Professorville 31 General Description of Current Conditions 35 3. GUIDELINES FOR MAINTAINING, REPAIRING, AND REPLACING HISTORIC MATERIALS 55 4. GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM EARLY PERIODS OF DEVELOPMENT (C. 1890-1930S) 73 5. GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM LATER PERIODS OF DEVELOPMENT (1930S-PRESENT) 89 6. GUIDELINES FOR DESIGNING AND BUILDING NEW RESIDENCES 99 7. GUIDELINES FOR SITE IMPROVEMENTS: DETACHED SECOND UNITS, ACCESSORY BUILDINGS, LANDSCAPE, AND STREETSCAPE 115 APPENDIX A: GLOSSARY OF TERMS 133 APPENDIX B: PROFESSORVILLE PROPERTY DATA 137 INDEX 159 Introduction 11INTRODUCTION The Professorville Historic District Design Guidelines have been prepared to serve as a planning tool for residents and property owners in the Professorville Historic District, which is listed to the National Register of Historic Places and the City of Palo Alto’s Historic Inventory. Among the earliest areas to develop in Palo Alto, Professorville is a residential neighborhood with a clear historic character, distinguished by its particular mixture of turn-of-the-twentieth-century architectural styles, consistent streetscape patterns, and verdant tree canopy. Yet, Professorville remains a living piece of Palo Alto’s urban fabric. Older residences require periodic maintenance to remain comfortable and in good condition. In addition, alterations may be desired in order to adapt the neighborhood’s early homes to contemporary tastes and lifestyles. In some cases, new residences have been constructed next to earlier buildings, and others may be in the future. All livable neighborhoods change over time, and Professorville is no exception. Project Background In 2011, the Palo Alto City Council directed the City’s Historic Resources Board and planning staff to work with the community to develop design guidelines for the Professorville Historic District, including guidance for new construction. Between 2011 1. Introduction 12 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES and 2013, Board members and staff conducted community workshops and meetings, during which design principles and approaches were discussed and preliminary guidelines were drafted. In 2015, the City Council accepted a Certified Local Government grant from the California Office of Historic Preservation to complete a bound volume of illustrated architectural guidelines incorporating the community’s design principles, input by homeowners, and the Secretary of the Interior’s Standards for Rehabilitation (listed at the end of this chapter). The City selected the firm of Page & Turnbull as the consultant to develop and produce the final guidelines. e Professorville Historic District The Professorville Historic District is located across approximately 65 acres and several residential suburban city blocks southeast of downtown Palo Alto. Most of the homes within the district face onto one of ten city streets that form a regular grid pattern: Emerson Street, Ramona Street, Bryant Street, Waverley Street, Cowper Street, Addison Avenue, Lincoln Avenue, Kingsley Avenue, Melville Avenue, and Embarcadero Road. The majority of residences within the district date to the first wave of the city’s development, which took place between c. 1893 and the 1930s. The western half of the district contains many of the neighborhood’s oldest homes and is characterized by tightly spaced lots. The eastern half of the district contains several large, early homes located on expansive properties, but also a number of more recent residences that were constructed after the lots were subdivided. Additional information about the district’s historic development and architectural character is found in Chapter 2. Professorville contains a mixture of house sizes, styles, and forms. This variety is one of the neighborhood’s defining characteristics. 13INTRODUCTION Wa v e r l e y S t r e e t Co w p e r S t r e e t Linc o l n A v e n u e Bry a n t S t r e e t King s l e y A v e n u e Embarcad e r o R o a d Melv i l l e A v e n u e We b s t e r S t r e e t Em e r s o n S t r e e t Byr o n S t r e e t Ra m o n a S t r e e t Chan n i n g A v e n u e Hig h S t r e e t Add i s o n A v e n u e Al m a S t r e e t Chu r c h i l l A v e n u e Tas s o S t r e e t Mi d d l e f i e l d R o a d Kello g g A v e n u e Hom e r A v e n u e Cole r i d g e A v e n u e Lan e B E a s t Lan e B W e s t Kipl i n g S t r e e t Sc o t t S t r e e t Embarcad e r o R o a d 0 125 250 375 500 Feet LEGEND Local Historic District National Register Historic District Professorville Boundaries Palo Alto Professorville The locally designated Professorville Historic District expanded the boundaries of the earlier National Register district. See Appendix B for a map that includes individual property addresses. 14 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES The Professorville Historic District was listed in the National Register of Historic Places in 1979. Administered by the National Park Service, the National Register is the nation’s comprehensive inventory of historic resources. A primary benefit of Professorville’s National Register designation is the formal recognition that the neighborhood is one of the most significant places in the context of Palo Alto’s historic development. The Professorville Historic District’s nomination to the National Register identified the district as bounded roughly by Emerson Street, Addison Avenue, Cowper Street, and Embarcadero Road. One hundred and five residences were found to be contributing properties to the National Register district, based on construction dates between the 1890s and 1929. As such, they convey the initial wave of construction that filled out much of the neighborhood with stately homes. According to the National Register district nomination, Professorville “reflects the unique background of the area’s origins and its early ties to the founding of both the University and Palo Alto itself. As such, the Professorville Historic District creates a strong sense of place and time expressive of Palo Alto’s intrinsic character and heritage.”1 Chapter 16.49 of Palo Alto’s Municipal Code allows the City to designate local historic districts. The City of Palo Alto adopted the Professorville Historic District to the City’s Historic Inventory in 1979. In 1993, the locally designated district’s boundaries were expanded east to Embarcadero Road, beyond the earlier identified district, encompassing additional properties that contribute to the historic character of the neighborhood. The City’s expanded district contains nearly 200 residential properties. These guidelines are applicable to all properties located within the City’s expanded local district, which is inclusive of the National Register district. 1 Professorville Historic District National Register Nomination, 1979, page 8-2. 15INTRODUCTION Purpose of the Design Guidelines The design guidelines are a tool so that members of the community can evaluate the compatibility of proposed development with the historic character of Professorville. For homeowners, the guidelines provide advice on everything from ordinary maintenance and repair of existing buildings to major new construction. Similarly, the guidelines provide architects and designers with advice early in the design development process regarding the community’s expectations of district compatibility, which can reduce the “guesswork” that can be involved in designing architecturally compatible improvements, additions, and new construction. The guidelines also give the general public a basis for understanding how decisions are made regarding the appropriate treatment of properties in the Professorville Historic District. In cases where proposed work is subject to City review and approval, the guidelines provide staff and the City of Palo Alto Historic Resources Board with specific criteria for evaluating design compatibility. The purpose of these guidelines is not to prevent change from happening in Professorville. Rather, the guidelines are meant to manage change while preserving the qualities that are most important to the district’s historic character. These qualities include how homes stand on their own as examples of distinguished architecture, and also how the residences relate to one another within the context of a wider, multifaceted residential neighborhood. 16 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES The guidelines take into account the following important characteristics of Professorville: • Lot layout and pattern; • Massing and form of buildings and structures; • Material palette; • Architectural styles and character-defining features; • Landscape and streetscape. Recognizing that the district’s historic character is conveyed by physical elements, natural features, and spatial relationships, this document identifies important principles that should inform future change. These principles were developed from prevalent philosophies in the historic preservation field—particularly distilled in the Secretary of the Interior’s Standards for the Treatment of Historic Properties—as well as from community and City staff input. These principles have led to design guidelines that should be consulted to inform any substantial changes that are proposed for properties within Professorville in the future. The ultimate goal of this document is to ensure that individual residences and the Professorville Historic District as a whole continue to express their significant and identifiable character within the neighborhood’s evolving setting in the City of Palo Alto. The Professorville Historic District Design Guidelines address individual homes, as well as the neighborhood’s overall landscape character. 17INTRODUCTION The following broad principles are incorporated into the design guidelines: • Property improvements and new construction are encouraged in Professorville, in ways that are compatible with the character of the district. • The character-defining features of existing historic buildings should be retained and rehabilitated whenever possible, with an emphasis on elements that can be seen from the public right-of-way. If deterioration requires replacement, then replacement features should match the originals as closely as possible. • A historic building should not be demolished unless its rehabilitation is infeasible due to its poor physical condition. If removal of an existing historic building is necessary, then new construction should strive to retain the existing property's character-defining features, which could include salvage and reuse of materials and features. • New additions to existing historic buildings should be subordinate to the historic buildings in location, scale, and detailing. • New residences should be designed and constructed so that they are not more prominent in the district than properties built during the historic period. • The architecture of new residences should be compatible with traditional styles, materials, and building forms that characterize historic development in the district. • The massing and placement of new construction should respect the historic streetscape of Professorville. Guidelines are provided for homes dating to Professorville’s early and later periods of development. 18 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES How to Use the Guidelines The guidelines are arranged according to the age of a building and the scope of a proposed project: • Chapter 3: Maintaining, Repairing, and Replacing Historic Materials • Chapter 4: Altering or Adding to Residences From Early Periods of Development (c. 1890-1930s) • Chapter 5: Altering or Adding to Residences From Later Periods of Development (1930s-present) • Chapter 6: Designing and Building New Residences • Chapter 7: Site Improvements: Landscape, Accessory Buildings, and the Streetscape While developing their projects, Professorville residents should focus their attention on the chapter(s) appropriate to their specific goals. Each chapter introduces a number of broad historic preservation concepts, based on the Secretary of the Interior’s Standards for Rehabilitation, that should inform the thought process behind project development. These concepts are organized by feature or project scope, and are broken down into specific guidelines that will shape design decisions. Each guideline is followed by additional and clarifying points that are organized in a bulleted list. The guidelines cannot anticipate every specific case that will arise. Nevertheless, the guidelines provide design objectives that can be applied to many different situations and result in a compatible project that is integrated into its historic context. Photographs included in this document were chosen for the purposes of illustrating particular guidelines. Please note that the property represented in any one photograph may not fulfill all of the Professorville Historic District Design Guidelines. 19INTRODUCTION It should also be noted that the design guidelines primarily offer principles regarding character and compatibility, rather than specific design solutions. Where applicable, this document includes references to additional resources that will help explain the technical aspects of preservation, which design teams can explore while developing their projects in order to meet the overall objectives of the guidelines. It is therefore wise to select a project team that has previous experience working in historic contexts and has encountered issues similar to what may be expected in Professorville. Components of a Design Guideline 1.1 Repairs and Alterations to Historic Buildings Historic exterior materials, whether used for cladding or decorative purposes, are critical components of a building’s architectural style and finely grained visual character. 1.1.1 Maintain original windows wherever possible. e original window type, including shape, size, and material, should be retained. • Always consider repairing original windows before replacing. If replacement is necessary, replacing in-kind and matching the original window is the preferred treatment. OVERARCHING CONCEPT, TYPE OF PROJECT, OR FEATURE OF THE BUILDING STATEMENT EXPLAINING DESIGN OBJECTIVE OR GENERAL APPROACHES THAT APPLY TO ALL OF THE FOLLOWING GUIDELINES DESIGN GUIDELINE ILLUSTRATING A PARTICULAR OBJECTIVE. OCCASIONALLY, ADDITIONAL IDENTIFICATION OF DESIGN PRIORITIES FOLLOWS THE GUIDELINE BULLETED LIST WITH SPECIFIC EXAMPLES AND FURTHER INFORMATION WHEN APPLICABLE, LINKS TO ADDITIONAL PUBLISHED INFORMATION ARE INCLUDED For more information: Preservation Brief 9: "The Repair of Historic Wooden Windows,” (NPS), https://www. nps.gov/tps/how-to-preserve/ briefs/9-wooden-windows.htm 20 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Selecting an Architect and Contractor Given that developing a project in the Professorville Historic District should be undertaken with the design guidelines in mind, selecting a project team with the right background is a helpful first step. One consideration in selecting architects and contractors should be whether they have experience dealing with historic properties, or with properties located within historic districts. It is strongly recommended that Professorville residents interview potential firms regarding their qualifications at the onset of their projects. Possible questions include: • Is the firm familiar with the Secretary of the Interior’s Standards for the Treatment of Historic Properties? • Does the firm have experience designing projects that are located in and compatible with historic districts? • Is the firm knowledgeable about applying the State Historical Building Code to residential projects? The California Historical Resources Information System Consultants List compiles a number of professional architects with demonstrated expertise in historic preservation, organized by county: http://www.chrisinfo.org. This list is not exhaustive, and many additional architects in the Palo Alto area likely have backgrounds working with historic buildings. 21INTRODUCTION Methodology for Developing the Guidelines The process of developing these guidelines was a continuation of previous work conducted prior to 2015 by the community and the Historic Resources Board, which established design principles and approaches to development that encouraged the preservation of historic neighborhood character. Continuity between previous efforts and the current project was evident by the participation of community members who had taken part in the previous workshops and meetings, as well as from new participants including homeowners and members of the general public. The Professorville Historic District Design Guidelines were developed following extensive research and fieldwork, as well as solicitation of community input. Research included review of the National Register nomination form and other literature relating to the historic architecture and landscaping of Professorville. The existing conditions of the neighborhood were surveyed in the field, and local historians provided walking tours and knowledge about history and architecture. To engage the community, a public workshop was held on February 23, 2016, at which the participants (including individuals who took part in previous workshops held between 2011 and 2013) provided additional input on community design principles and the preferred approaches to historic preservation. Preparation of the design guidelines involved field survey to document neighborhood character, as well as community workshops to solicit input from neighborhood residents. 22 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Following the workshop, the consultant began work on the first draft of the guidelines, which was submitted to the City for review in March 2016. City staff, in consultation with an advisory panel that included architects, historians, and real estate professionals, reviewed the administrative draft and provided comments. The consultant incorporated staff’s comments into a public review draft, which was submitted to the City in April 2016. The City posted online the draft guidelines for public review and comment on May 2, 2016. During the public review phase, a public workshop to present information and discuss the draft guidelines was conducted on May 26, 2016, and an informational presentation was given and testimony received at a Historic Resources Board hearing on June 9, 2016. City staff reviewed and responded to the public comments that were received, and the consultant incorporated applicable comments into the final design guidelines to the extent feasible. The adoption process for the final guidelines involved public hearings at the Historic Resources Board on July 28, 2016, and City Council on ____. All photographs in this document were taken by Page & Turnbull except where otherwise noted. 23INTRODUCTION Secretary of the Interior’s Standards for Rehabilitation The Professorville Historic District Design Guidelines provide recommendations that are closely based on, and are consistent with, the National Park Service’s Secretary of the Interior’s Standards for Rehabilitation. Rehabilitation is a treatment that allows "a compatible use for a property through repair, alterations, and additions while preserving those portions or features which convey its historical, cultural, or architectural values.”2 The National Park Service has developed the applicable Standards, listed on the following page, to help property owners, architects, municipalities, and others to understand the fundamental concepts that would accommodate changes and new uses of buildings, districts, and landscapes while preserving historic character. Property owners in Professorville are strongly encouraged to familiarize themselves with the Standards prior to developing their projects. 2 "Standards for Rehabilitation," National Park Service, https://www.nps.gov/tps/standards/four-treatments/ treatment-rehabilitation.htm. 24 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Rehabilitation Standard 1: A property will be used as it was historically or be given a new use that requires minimal change to its distinctive materials, features, spaces and spatial relationships. Rehabilitation Standard 2: The historic character of a property will be retained and preserved. The removal of distinctive materials or alteration of features, spaces and spatial relationships that characterize the property will be avoided. Rehabilitation Standard 3: Each property will be recognized as a physical record of its time, place and use. Changes that create a false sense of historical development, such as adding conjectural features or elements from other historical properties, will not be undertaken. Rehabilitation Standard 4: Changes to a property that have acquired significance in their own right will be retained and preserved. Rehabilitation Standard 5: Distinctive materials, features, finishes and construction techniques or examples of craftsmanship that characterize a property will be preserved. Rehabilitation Standard 6: Deteriorated historic features will be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature will match the old in design, color, texture, and, where possible, materials. Replacement of missing features will be substantiated by documentary and physical evidence. Rehabilitation Standard 7: Chemical or physical treatments, if appropriate, will be undertaken using the gentlest means possible. Treatments that cause damage to historic materials will not be used. Rehabilitation Standard 8: Archaeological resources will be protected and preserved in place. If such resources must be disturbed, mitigation measure will be undertaken. Rehabilitation Standard 9: New additions, exterior alterations, or related new construction will not destroy historic materials, features, and spatial relationships that characterize the property. The new work shall be differentiated from the old and will be compatible with the historic materials, features, size, scale and proportion, and massing to protect the integrity of the property and environment. Rehabilitation Standard 10: New additions and adjacent or related new construction will be undertaken in such a manner that, if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired. Additional information is available at the National Park Service's website: https://www.nps.gov/tps/standards.htm 25INTRODUCTION Frequently Asked Questions (FAQ) Question: What is the difference between guidelines and standards? Answer: Guidelines are suggestions that allow for case-by-case interpretation and decision making based on several factors, including but not limited to preservation issues. Guidelines are a starting point for a conversation about historically compatible development. They do not provide answers in and of themselves. Standards are generally more prescriptive and literal, and they are less flexible in allowing interpretation and individual decision making. Guidelines are proposed for Professorville instead of standards in order to allow for interpretation and flexibility in decision making, based on specific circumstances. Question: How do the guidelines treat diversity of architectural styles? Answer: The guidelines acknowledge that the existing character of Professorville includes a variety of architectural styles that developed during the district’s historic period of development, approximately 1890s-1930s, as well as other architectural styles that developed more recently. However, the existing architectural diversity does not necessarily mean that Professorville can accommodate additional contemporary architectural styles without having an adverse effect upon its character and its relationship to the historic period. Newer architectural styles should be introduced carefully and with great forethought as to how they relate to the historic architectural character of the district. Question: Do the guidelines differentiate between contributors and non- contributors? Answer: The guidelines are meant to apply equally to all properties in the district; therefore, they do not include radically different treatments for contributors and non-contributors. The guidelines encourage the preservation of historic contributors, the rehabilitation and restoration of altered historic non- contributors, and the general compatibility of properties constructed after the historic period. The guidelines do distinguish between properties constructed during the historic period and those constructed later, because architectural styles and construction types changed substantially after the 1930s. 26 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Question: How do the guidelines relate to City codes and review procedures? How will the guidelines be used in project reviews? Answer: The guidelines do not propose any changes to existing City codes or review procedures; nor do the guidelines preclude making changes to City codes or review procedures in the future, if so desired. The guidelines are meant to be used in concert with the existing codes and review procedures, or with updated codes and procedures that may be adopted in the future. Under existing codes and procedures, in cases where a development application is subject to a discretionary approval (e.g. Single Family Individual Review), the guidelines may be used by the HRB and staff to interpret and clarify the existing Standards of Review in the Municipal Code and the Secretary of the Interior’s Standards for Rehabilitation. When proposed exterior work requiring building permits is subject to HRB review and non-binding recommendation under the current code, the HRB may use the guidelines as a reference document when making non-binding recommendations to homeowners. Prior to filing a development application, homeowners, architects, and builders can use the guidelines as a design tool early in the design development process in order to inform preliminary designs. Professorville History and Character THIS PAGE INTENTIONALLY BLANK 31PROFESSORVILLE HISTORY AND CHARACTER Brief History of Professorville Professorville belongs to the historic core of Palo Alto. Neither the neighborhood nor the city at large existed prior to the opening of Stanford University, which Leland and Jane Stanford established on land belonging to their large horse farm in northwestern Santa Clara County. By the time Stanford University opened its doors in 1891, over 700 acres of land east of the new campus had been set aside for a townsite that could house those affiliated with the university. A number of freshly arrived faculty members wished to purchase land and build homes for their families in this new college town, known as Palo Alto. They chose the fledgling neighborhood that lay near the eastern boundary of the campus, across the Southern Pacific rail line. For its early academic residents, the neighborhood received the name Professorville. Its large lots and close proximity to the university were attractive features for early residents, and homes were steadily built there during the 1890s and first decades of the twentieth century. Professorville’s academic atmosphere fostered an appreciation for fashionable architectural styles. When faculty residents arrived in California, they imported elements of residential architecture from the areas where they had previously lived: the Eastern and Midwestern United States. Many new residences showed the influence of the Shingle, Arts and Crafts, and Colonial Revival styles, reflecting a San Francisco Bay Area 2. Professorville History and Character When Professorville was constructed, it conveyed a rustic feeling that is still experienced today. Cowper Street is seen above. Source: Stanford University Historical Photograph Collection 32 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES regional interpretation known as the First Bay Tradition. These residences frequently were clad in wood shingles and had asymmetric façades, which created a naturalistic impression throughout the neighborhood. Bernard Maybeck, one of the pioneers of the First Bay Tradition at the turn of the twentieth century, was commissioned to build a home for Emma Kellogg at the corner of Lincoln Avenue and Bryant Street. After this house burned, Maybeck designed its distinctive replacement, now commonly known as the Sunbonnet House. Other newly built residences in the early twentieth century showed the influence of Revival styles, such as Tudor and Spanish Colonial. Yet all exhibited a high quality of craftsmanship and design—truly notable for the somewhat isolated outpost of Palo Alto at this time. While primarily filled with residences, Professorville was also the location of the notable Castilleja Hall on Bryant Street, which housed a girls’ preparatory school during the first decade of the twentieth century and was later converted to housing. By the 1920s, much of Professorville had been largely built out with single-family homes. Most had detached automobile garages by this time, which were typically placed at the rear of the lot. The development pattern of the neighborhood, particularly in its western half, was characterized by a regular rhythm of handsome residences, each surrounded by a well-appointed lawn. The eastern half of the neighborhood, on the other hand, retained grander homes on expansive lots that resembled small estates. One element that linked both halves of Professorville was an impressive tree canopy, created in part by the immense redwood and live oak trees that predated the development of Palo Alto and were left standing in private yards as well as in public roadways. Many large trees were originally left standing within Professorville’s roadways. Source: Stanford University Historical Photograph Collection 33PROFESSORVILLE HISTORY AND CHARACTER Wa v e r l e y S t r e e t Co w p e r S t r e e t Linc o l n A v e n u e Bry a n t S t r e e t King s l e y A v e n u e Embarcad e r o R o a d Melv i l l e A v e n u e We b s t e r S t r e e t Em e r s o n S t r e e t Byr o n S t r e e t Ra m o n a S t r e e t Chan n i n g A v e n u e Hig h S t r e e t Add i s o n A v e n u e Al m a S t r e e t Chu r c h i l l A v e n u e Tas s o S t r e e t Mi d d l e f i e l d R o a d Kello g g A v e n u e Hom e r A v e n u e Cole r i d g e A v e n u e Lan e B E a s t La n e B W e s t Kip l i n g S t r e e t Sc o t t S t r e e t Embarcad e r o R o a d 0 125 250 375 500 Feet LEGEND Professorville Historic District Year Built: 1890 - 1899 1900 - 1909 1910 - 1919 1920 - 1929 1930 - 1939 1940 - 1979 1980 - 2013 Professorville's residences have been constructed over the course of more than a century. Many of the oldest homes are located in the district's west half. 34 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Over time, several of Professorville’s larger lots were subdivided, and any parcels that remained empty were filled in the postwar period. Kingsley Court, a cluster of 10 cottages designed by prolific Palo Alto architect Birge Clark, was constructed in 1940. In the following decades, a handful of Modernist style houses were added to the neighborhood, as well as two new religious complexes: St. Ann’s Chapel (established by playwright and diplomat Clare Boothe Luce to memorialize her deceased daughter) and the First Presbyterian Church. Professorville’s residents also shifted away from the faculty who had originally built homes there, as many of the large residences were converted to student housing by mid-century. In the 1970s and 1980s interest in historic preservation increased, and over time many of the homes in the neighborhood were rehabilitated and returned to single-family residential use.1 1 The narrative in this section is informed by the following sources: Historic Environment Consultants, Historical and Architectural Resources of the City of Palo Alto: Inventory and Report, prepared for the City of Palo Alto, 1979; Professorville National Register Nomination; Virginia and Lee McAlester, A Field Guide to America’s Historic Neighborhoods and Museum Houses: The Western States (New York: Alfred A. Knopf, 2008). 35PROFESSORVILLE HISTORY AND CHARACTER General Description of Current Conditions Overall Visual Character As a result of its historic development, Professorville contains an outstanding variety of residential architecture set within a verdant landscape of towering trees and well-kept yards. Dating to the late nineteenth and early twentieth centuries, the majority of the neighborhood’s houses vary in style and scale—some modest cottages, others large and stately mansions. Yet, they share certain materials and decorative elements that create the compelling architectural aesthetic that defines Professorville’s historic character. One of the most apparent of these is the pervasive use of wood shingle siding, which relates to the lushly planted yards and streetscape and gives the neighborhood a rustic feel. At the same time, the homes feature many formal details derived from the Classical architectural vocabulary, such as columns, dentils, and cornices. The result of these repeated elements is that buildings throughout Professorville have visual similarities in spite of their differences in plan, massing, and roof forms. Most homes in Professorville face the street, creating a handsome visual impression. 36 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Site Development Patterns The homes and accessory structures that make up Professorville are physically arranged in a discernible pattern that contributes to its cohesive visual character. • Many lots are 50’-75’ in width in the most tightly spaced portions of Professorville’s west half; larger lots are typically located north and east of Waverley Street. • Early residences are set back from the street between 25’-40’, so that they have ample front yards with narrow side yards. • Most homes have one-and-one-half, two, or two-and-one-half stories. • Most garages are detached from early residences and placed at the rear of their lots, typically along the property line. • Where rear alleys are present in the western half of the neighborhood, garages and carriage houses open directly onto the alley. • Kingsley Court, the loop of cottages located alongside Kingsley Avenue, was constructed as infill development in 1940; its pattern of smaller homes with compact yards is visibly distinct from the overall siting patterns of the historic neighborhood. The complex of the First Presbyterian Church on Cowper Street is a further example of infill that presents a contrasting development pattern. 37PROFESSORVILLE HISTORY AND CHARACTER Streetscape and Landscape Patterns The idyllic character of Professorville owes much to the pattern of yards, trees, and plantings that line the neighborhood’s sidewalks and face toward the public streets. The visual impression a visitor encounters while passing through Professorville is greatly influenced by the following features and spatial relationships: • Examples of large, mature trees date prior to the neighborhood’s construction and have been left in place. These include coast live oak and valley oak. • Other mature trees and hedges appear to have been planted in the first decades of the neighborhood’s development. These include coast redwood, date palm, Southern magnolia, persimmon, camphor, Carolina laurel hedge, loquat, English yew, and hawthorne: • The front yards of many residences include edge features, such as low wood picket fences and/or hedgerows, lining the public sidewalk. • Fences and hedgerows vary in their visual permeability, i.e. some allow front yards to be totally visible from the public right-of-way while others do not. • Front yards are typically graded flat. Many are planted with grass, yet others feature eclectic planting schemes of shrubs and other low plantings. • Approach walks lead through front yards to reach front entrances; many are narrow and are perpendicular to the public sidewalk. Common materials for approach walks are brick or concrete edged in brick. • Where approach walks meet the public sidewalk, fences often feature gates, gateposts, or trellises. • Curvilinear walks paved in stone appear to be more recent alterations. • Some more recent residences (c. 1970-present) have extensive concrete or gravel paving throughout the front yard. Many front yards in Professorville are edged in low fences, which communicates a progression from public to private space. A number of early trees in Professorville have been left standing, defining the neighborhood’s landscape character. 38 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES • Historic driveways are generally wide enough for only one car and are located along one edge of the parcel. • Expansive driveways that lead in front of their respective house are generally signs of later intervention. • Parking strips have varied planting schemes but generally contain evenly spaced street trees of numerous species. • Street lights are non-historic and are mounted onto the neighborhood’s utility poles. • Older curb cuts at driveways have a tight radius. Historic Developments in Residential Landscapes Virginia and Lee McAlester's reference book A Field Guide to America’s Historic Neighborhoods and Museum Houses: The Western States identifies several broad characteristics of residential landscapes that were employed during Professorville's initial period of development in the late nineteenth and early twentieth centuries. In the 1880s and 1890s, private yards were often surrounded by low ornamental fences, possibly made of wood or cast iron. Foundation plantings were not commonly used surrounding a residence, but instead homeowners inserted planting beds, shrubs, and trees in the middle of their yards. Low wood fences were still used during the 1910s, and often included trellises or other features at pedestrian entrances. At that time, it had become more common for residential yards to include profuse plantings of shrubs and other vegetation than during the Victorian era. By the 1920s, foundation plantings could be found alongside the foundation of a house; the front lawn was often left open and uninterrupted apart from trees. Throughout these periods, paving was typically limited to walkways and narrow driveways that reached detached garages and carriage houses. 39PROFESSORVILLE HISTORY AND CHARACTER Historic Architectural Styles in Professorville The character of Professorville is crucially defined by its residences. This section presents some of the most prevalent historic architectural styles found in the neighborhood and describes features that are commonly found on homes that belong to those styles. The following lists of features should not be understood to be comprehensive and complete. Rather, they are meant to assist Professorville residents to understand the stylistic qualities of their homes and to identify those elements that define their historic visual character. Gaining such an understanding will be important when using the guidelines included later in this document. Note that some residences may not have a single style but instead combine elements from more than one, so character-defining features may come from more than one list. Those residences with a combination of styles should not be thought of as “impure” examples. Instead, they should be recognized for adding to the architectural variety that is one of Professorville’s hallmarks. 40 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Wa v e r l e y S t r e e t Co w p e r S t r e e t Linc o l n A v e n u e Bry a n t S t r e e t King s l e y A v e n u e Embarcad e r o R o a d Melv i l l e A v e n u e We b s t e r S t r e e t Em e r s o n S t r e e t Byr o n S t r e e t Ra m o n a S t r e e t Chan n i n g A v e n u e Hig h S t r e e t Add i s o n A v e n u e Al m a S t r e e t Chu r c h i l l A v e n u e Tas s o S t r e e t Mi d d l e f i e l d R o a d Kello g g A v e n u e Hom e r A v e nue Cole r i d g e A v e n u e Lan e B E a s t Lan e B W e s t Sc o t t S t r e e t Embarcad e r o R o a d 0 125 250 375 500 Feet LEGEND Professorville Historic District Style / Influence: Shingle Style; Colonial Revival; Queen Anne; Craftsman; Prairie Spanish Colonial Revival; Mission Revival; Tudor Revival; French Eclectic Bungalows; Modern; Ranch Neoeclectic; Neotraditional; Contemporary This map displays the general distribution of different architectural styles, as explained in the following pages. Many homes exhibit the characteristic features of more than one style, so the groupings above are kept broad. 41PROFESSORVILLE HISTORY AND CHARACTER First Bay Tradition/Shingle Style The influence of the First Bay Tradition, the Bay Area variant of the Shingle style, is found throughout Professorville. The First Bay Tradition showcases the naturalistic, almost rustic elements of the Shingle style, in particular wood shingle cladding and asymmetrical arrangement of features and volumes. At the same time, homes built in this style may have classically inspired features, such as columns or dentils, and gambrel roofs that reflect the influence of the Colonial Revival style (see the following page). First Bay Tradition residences are also defined by a high level of craftsmanship, which can be seen in impressive carved wood and art glass. Common features seen on First Bay Tradition/Shingle Style houses in Professorville include: • One-and-one-half or two stories tall • Wood shingle and/or wood clapboard siding • Low-pitched roof slopes • Decorative brackets and exposed rafter tails underneath eaves • Wood-sash windows, typically with divided lites and occasionally with diamond muntin patterns • Front porches or recessed entries • Shed-roofed or hipped-roof dormers • Asymmetrical arrangement of features at façades • Cantilevered overhangs above the first story, in some instances flared outward • Angled or boxed bay windows Homes influenced by the First Bay Tradition and Shingle Style include the Kellogg House, at top, designed by Bernard Maybeck. Wood shingle siding is an important feature of these homes. 42 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Colonial Revival residences are characterized by their symmetrically arranged façades and Classical architectural details. Gambrel roofs are seen on homes throughout Professorville, reflecting the mixture of Colonial Revival and other influences. Colonial Revival Colonial Revival residences in Professorville reflect the renewed fascination with the formal Georgian architecture of the United States’ colonial era. A craze for the Colonial Revival followed the Centennial International Exposition of 1876, held in Philadelphia to celebrate one hundred years of American independence from Great Britain. Many of Professorville’s early faculty residents were recruited from the East and would have been familiar with this style. A number of the Colonial Revival’s distinctive characteristics were also employed in First Bay Tradition homes, as described on the previous page. • Two stories tall • Symmetrical arrangements of bays (often numbering five), with main entrances located at center • Side-gabled roofs (gambrel roofs indicate Dutch colonial influence) • Front porticoes at the main entrances, supported by columns • Wood-sash windows • Sidelites and fanlites surrounding front doors • Molded cornice element with dentil courses • Shutters flanking windows • Quarter-round windows flanking chimneys 43PROFESSORVILLE HISTORY AND CHARACTER Queen Anne residences take different forms in Professorville. Queen Anne Perhaps the quintessential Victorian-era architectural style, Queen Anne was extremely popular across the United States in the late nineteenth century. Homes built according to this style are often characterized by highly ornate features and sprawling, irregular footprints with trademark turrets or towers. • Two stories tall • Irregular floor plans and massing, with corner towers and/or angled bay windows • Complex, intersecting roof forms with steep pitches • Often, a prominent front-facing gable • Wood clapboard siding with areas of fishscale shingles • Ground-level wrap-around porches with spindlework balusters and carved brackets • Decorative wood detailing located within gables • Wood-sash windows • Palladian windows and wood columns (in Free Classic Queen Anne sub- type) 44 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Stucco cladding, tile roofs, and arched openings are characteristic of homes influenced by Spanish Colonial architecture. The Mediterranean Revival style is characterized by symmetricality, whereas other related styles often have asymmetrical façades. Spanish Colonial Revival, Mission Revival, Mediterranean Revival, and Spanish Eclectic A number of homes in Professorville were designed using related styles reflecting the influence of Spanish Colonial architecture in California. Unlike Professorville’s other Revival styles, Spanish Colonial Revival was not imported from the Eastern United States but instead first developed in California, in cities like San Diego and Santa Barbara. These styles are instantly recognizable in their material palette, particularly stucco and red clay tile roofs, that distinguish them as belonging to a regional vernacular. • One or two stories tall • Asymmetrical arrangements of features • Smooth stucco cladding, painted white or beige • Half-round clay roof tiles • Shaped roof parapets (specific to the Mission Revival style) • Wrought iron balconette railings • Paired wood-sash casement windows • Arched window and door openings • Tile vents within gables • Decorative chimney caps • Stucco cartouches 45PROFESSORVILLE HISTORY AND CHARACTER Prominent front gables are characteristic of the Craftsman style. Craftsman The Craftsman style, including the well-known bungalow sub-type, interpreted the cues of the somewhat elite Arts and Crafts and First Bay Tradition in California for a wider audience. Craftsman homes were meant to give the impression of high quality materials and craftsmanship, but often came from mass-produced plans. • One-and-one-half stories tall • Low-sloped gabled roofs • Decorative brackets and exposed rafter tails underneath overhanging eaves • Porches, often full-width and supported by tapered piers • Wood clapboard siding • Prominent dormers (gabled or with shed roof) over front roof slopes • Wood-sash windows • Boxed bay windows • In some instances, clipped gables 46 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Half timbering is a recognizable marker of the Tudor Revival style. Tudor Revival The Tudor Revival is seen occasionally in Professorville. Another of the Revival styles popular in the early twentieth century, Tudor looked to medieval England for inspiration and is unmistakable through its use of half timbering, which imitates the appearance of wattle and daub placed within structural wood frames. In Tudor Revival, such timbering is decorative and has no actual structural purpose. • Non-structural pattern of timbering filled by areas of stucco cladding • Asymmetrical arrangements of features • Steep roof slopes • Wood-sash windows • Often, prominent brick chimneys • In some cases, curved eaves to emulate the shape of a thatched roof 47PROFESSORVILLE HISTORY AND CHARACTER Strong horizontal massing and low-pitched roofs indicate the influence of the Prairie School. Prairie School Prairie School architecture is most often associated with Frank Lloyd Wright and the flat landscapes of the American Midwest. Its influence, however, is seen on residences throughout Professorville. Here, these homes are usually two stories tall with a rectangular plan—not as complexly designed as Wright’s, yet they emphasize their horizontal dimensions through several design strategies and features. • Two stories tall • Broad front façade • Rectangular plan • Shallowly pitched hipped roofs with widely overhanging eaves • Wood belt course located between the first and second stories • Wood-sash windows 48 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Later Changes and Development Even after the significant first wave of development in Professorville came to a close in the 1930s, residences continued to be built in the neighborhood as larger lots were subdivided. These homes were designed in the following general styles: Modern Many residences constructed in the United States after World War II reflected a departure from the materials and decorative treatments that defined Revival styles earlier in the century. Mid-century modern home designs took advantage of mass produced materials and were more austere in their use of architectural features. Ranch homes, a distinct sub-type of the modern style, are low-slung and characterized by their rambling floorplans. While these homes do not date to the first waves of construction in Professorville, many are muted in their design vocabulary and generally do not distract from the neighborhood’s historic character. The neighborhood’s two churches, St. Ann’s Chapel and the First Presbyterian Church, are also designed in this general style. • Simple arrangement of features • Flat façade planes with a variety of cladding materials: brick, wood, and/or stucco • Asymmetrical front façades • Gabled roofs • Attached garages incorporated into house volume • Large fixed windows, possibly metal-sash, placed on façades for compositional effectBuildings constructed in Professorville during the postwar period are visibly distinct from the neighborhood’s earliest homes. 49PROFESSORVILLE HISTORY AND CHARACTER Neoeclectic residences reflect modern interpretations of older architectural styles. Neoeclectic Other new residential styles introduced to Professorville after the 1960s can be referred to as “Neoeclectic.” These homes interpret earlier architectural styles, such as Colonial or Tudor Revival. Some draw upon the relatively simple designs of Mid-Century Modern, while others are more literal in their approximation of earlier styles. While these residences may take cues from the same historic architectural styles as earlier homes in Professorville, they can often be identified by their large size, loose interpretation of historic styles, and attached garages. These types of homes can vary greatly, and they may feature some of the following: • Historicist features taken from earlier Revival styles (such as large entry features, porches, and cornices) • Irregular/asymmetrical arrangement of features • Attached garages incorporated into the house volume For more information: “Preservation Brief 17: Architectural Character—Identifying the Visual Aspects of Historic Buildings as an Aid to Preserving their Character,” (NPS), https://www.nps.gov/tps/how- to-preserve/briefs/17-architectural- character.htm THIS PAGE INTENTIONALLY BLANK Guidelines for Maintaining, Repairing, and Replacing Historic Materials THIS PAGE INTENTIONALLY BLANK 55GUIDELINES FOR MAINTAINING, REPAIRING, AND/OR REPLACING HISTORIC MATERIALS 3. Guidelines for Maintaining, Repairing, and Replacing Historic Materials The guidelines included in this chapter are intended to help Professorville residents identify and retain the historic materials and craftsmanship that convey the character of their homes and neighborhood. Historic exterior materials, whether used for cladding or decorative purposes, are critical components of a building’s architectural style and finely grained visual character. As Professorville’s residences are recognized for the high quality of their materials and design, it is important that residents develop as sensitive an approach as possible while dealing with the historic fabric of their homes. The following guidelines offer recommendations to aid residents who wish to embark on maintenance and preservation projects for their homes. With these guidelines, projects can be developed in accordance with the general principle that existing historic materials should be retained and repaired wherever possible, and replaced only where necessary if severely deteriorated and/or damaged. If a historic feature or material cannot be repaired, it should ideally be replaced “in kind”—meaning the replacement should match in size/proportion, texture, and visual details to the extent feasible. When conducting a rehabilitation of a historic building, it is understood that repair of existing features and materials is not always feasible, and that exact replacement is not always possible or practical, in which case some judgment must be exercised in determining the appropriateness of replacement. The following guidelines offer broad principles and best practices that should inform the early planning stages of a project. Additional resources listed throughout the chapter should be consulted for specific technical solutions that residents can use to meet the objectives of the guidelines. 56 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 3.1 Historic exterior materials should be maintained and repaired whenever possible, and if deteriorated they should be replaced in kind. The materials that make up Professorville’s early residences contribute both visually and functionally to the neighborhood’s historic qualities. Repairing the existing materials is always the first approach that should be explored before a project is undertaken. If repair is not possible, investigate in-kind materials to match the old as closely as possible in order to retain the residence’s overall visual character. 3.1.1 Historic exterior wall cladding should be maintained and repaired, in order to keep it in good working condition. Deteriorated historic cladding should be replaced in kind to match the existing as closely as possible. • Retain existing wood shingle, wood clapboard, and stucco wall cladding where these types existed historically. These are common character-defining materials found throughout Professorville that often relate to particular architectural styles. • Where wall cladding has been painted or stained historically, continue to apply the same treatments to offer protection against the elements. • When cleaning or preparing to repaint historic cladding materials, do not attempt to remove existing paint or debris in a way that causes damage to the historic material. Sandblasting and other abrasive measures are not appropriate.The interplay between cladding materials is important to the character of many homes within Professorville. 57GUIDELINES FOR MAINTAINING, REPAIRING, AND/OR REPLACING HISTORIC MATERIALS • Avoid covering character-defining cladding with vinyl, aluminum, or other synthetic siding materials. If these materials have already been installed, their removal is encouraged in order to restore the historic character of a residence. • Maintain decorative stucco elements such as molded cartouches, as they are characteristic of a residence’s architectural style. • If stucco cladding is to be patched, match the existing stucco's composition and surface texture, which are often characteristic features. • Replace areas of wood shingle and clapboard siding only where they are deteriorated. Do not remove a greater number of shingles or boards than is required in order to make the repair and maintain visual consistency. • Match the replacement wood siding to the historic siding as closely as possible. Consider dimensions (size, shape), surface profile, and pattern of historic siding. • If historic shingles were manufactured using an identifiable and visually distinctive species of tree—such as redwood—attempt to use the same species for the replacement shingles. Stucco cladding is an important feature of homes designed in Spanish Colonial and Mediterranean Revival styles and should be preserved where it already exists. 58 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES For additional information: “Preservation Brief 1: Cleaning and Water-Repellent Treatments for Historic Masonry Buildings” (NPS), https://www.nps.gov/tps/how-to-preserve/briefs/1- cleaning-water-repellent.htm “Preservation Brief 6: Dangers of Abrasive Cleaning to Historic Buildings” (NPS), https://www.nps.gov/tps/how-to-preserve/briefs/6-dangers-abrasive-cleaning.htm “Preservation Brief 10: Exterior Paint Problems on Historic Woodwork” (NPS), https://www.nps.gov/tps/how-to-preserve/briefs/10-paint-problems.htm “Preservation Brief 14: The Use of Substitute Materials on Historic Building Exteriors” (NPS), https://www.nps.gov/tps/how-to-preserve/briefs/14-exterior- additions.htm “Preservation Brief 22: The Preservation and Repair of Historic Stucco” (NPS), https://www.nps.gov/tps/how-to-preserve/briefs/22-stucco.htm 59GUIDELINES FOR MAINTAINING, REPAIRING, AND/OR REPLACING HISTORIC MATERIALS 3.1.2 Historic roong materials should be maintained and repaired in place. Failing roong materials should be replaced with the goal of matching the material and appearance of the original as closely as possible. • Maintain existing wood shingle and clay tile roofing materials where feasible, as they often relate to a residence’s architectural style. When necessary, attempt to replace in kind considering the color, shape, and size of the historic materials. • Inspect and repair roofing systems regularly. Water infiltration through the roof can ultimately damage features throughout a residence. • Property owners are encouraged to research the original roofing of their homes, and to consider replacing non-compatible roofing materials with historically compatible materials that match the visual character of the original. • Avoid installing standing-seam metal roofs in Professorville, as they were not found in the neighborhood historically. • Avoid covering exposed rafter tails and wood brackets with boxed-in eaves. If rafter tails are deteriorated, attempt to replace them with new members that maintain the historic profile of the original. Roofing materials are important components of a residence’s architectural style. 60 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES For additional information: “Preservation Brief 4: Roofing for Historic Buildings” (NPS), https://www.nps.gov/ tps/how-to-preserve/briefs/4-roofing.htm “Preservation Brief 19: The Repair and Replacement of Historic Wooden Shingle Roofs” (NPS), https://www.nps.gov/tps/how-to-preserve/briefs/19-wooden-shingle- roofs.htm “Preservation Brief 30: The Preservation and Repair of Historic Clay Tile Roofs” (NPS), https://www.nps.gov/tps/how-to-preserve/briefs/30-clay-tile-roofs.htm 61GUIDELINES FOR MAINTAINING, REPAIRING, AND/OR REPLACING HISTORIC MATERIALS 3.2 Repair Historic Windows and Doors Whenever Feasible, and Replace in Kind Where Necessary. Wood-sash windows and partially glazed doors are traditional types in Professorville, and many are configured with muntins that divide the window sash into smaller lites. Insensitive repair or replacement of wood windows and doors may have a greater visual effect on the residence than intended. For this reason, residents should attempt to maintain historic windows and doors as much as possible and, where necessary, replace with windows and doors that closely replicate the appearance of the earlier ones. 3.2.1 Historic windows are important character-dening features and should be retained and repaired when feasible. • Provide cyclical maintenance to historic windows in order to keep them in operable condition and to prolong their lifespan. • Where one component of a window is deteriorated or broken (such as a muntin or a lite), attempt to repair or replace the individual element rather than replacing the entire window unit. If a full window must be replaced due to deterioration, match the new window to the original in dimensions, operability (such as hung, fixed, or casement), and configuration of muntins. Priority for this approach should be given to windows visible from the public right-of-way. • Where non-standard window types—for instance, windows with arched shapes or diamond muntin patterns—are deteriorated and cannot be repaired, investigate manufacturing new windows to match the appearance of the originals. Attention should be paid to the distinctive sizing, spacing, and configuration of windows on an older residence in Professorville. 62 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES • Attempt to replace specialty glass types, such as stained glass, with materials that provide the same visual effect. • Replace deteriorated window trim and other treatments to match the size and profile of the original as closely as possible. • Avoid installing new aluminum- and vinyl-sash windows, which are not necessarily the most cost effective alternatives to new wood-sash windows. Synthetic materials do not typically resemble wood, often do not closely match the proportions of the original windows, and have much shorter lifespans. • Investigate measures that increase energy efficiency for historic wood-sash windows while retaining their historic visual character. Possible solutions include weather stripping and interior storm windows. 3.2.2 e appearance and location of historic doors should be maintained. • Repair historic wood doors whenever feasible, rather than replace them. Keep in mind that hardware and glazing patterns also contribute to the historic character of a door. • If exterior doors must be replaced, choose a new door type that is compatible with the residence’s architectural style. Panel and/or partially-glazed doors are recommended, as they are appropriate to the early period of Professorville’s development. This is particularly important for street-facing doors. • Maintain historic door trim. If it is determined to be in need of replacement, match the profile and material of the original as closely as possible. • Maintain the historic location of a residence’s front entrance. 63GUIDELINES FOR MAINTAINING, REPAIRING, AND/OR REPLACING HISTORIC MATERIALS For additional information: “Preservation Brief 9: The Repair of Historic Wooden Windows,” (NPS), https://www. nps.gov/tps/how-to-preserve/briefs/9-wooden-windows.htm “Replacement Windows that Meet the Standards,” (NPS), https://www.nps.gov/tps/ standards/applying-rehabilitation/successful-rehab/windows-replacement.htm “Repair and Upgrade Windows and Doors,” (NPS), https://www.nps.gov/tps/ sustainability/energy-efficiency/weatherization/windows-doors.htm “Saving Windows, Saving Money,” (Preservation Green Lab of the National Trust for Historic Preservation), http://www.preservationnation.org/information-center/sustainable-communities/ green-lab/saving-windows-saving-money/ The Window Sash Bible: A Guide to Maintaining and Restoring Old Wood Windows, Steve Jordan, http://painintheglass.info/pages/window-restoration-bible.php 64 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 3.3 Additional Character-Dening Features at Contribute to an Early Residence’s Visual Appeal Should Be Preserved. Numerous types of decorative and functional elements are found throughout Professorville and help to create its richly detailed material fabric and visual character. Such features, which are carefully arranged and organized on individual residences according to the tenets of historical styles and periods, include wood cornices, dentils, and belt courses; porches and other entry features with column supports; wrought iron window grilles; wood porch railings and balusters; and decorative wood half-timbering. Pay heed to these types of features and their role in the overall appearance and personality of a residence. 3.3.1 Retain and repair character-dening decorative features wherever possible, and if replacement is required match the new as closely as possible to the original. • Always attempt to repair historic decorative features as a first course of action. • If these features are damaged or deteriorated to the point of failure, select replacement materials matching the dimensions and appearance of the original as closely as possible. • Where deteriorated brick masonry is found, replace damaged brick with new that matches the original’s color, size, and surface texture. Additional characteristics that should be considered include the bonding and decorative patterns of the brick. Historic homes throughout Professorville have distinctive decorative features that convey their character. They should be treated sensitively whenever possible. 65GUIDELINES FOR MAINTAINING, REPAIRING, AND/OR REPLACING HISTORIC MATERIALS • If brick repointing is required, attempt to determine a compatible mortar composition in order to avoid future damage to the brick. • Prioritize in-kind repairs for features that are located near the front of a residence and are visible from the public right-of-way. 3.3.2 Consider recreating missing historic features if adequate evidence exists to determine original appearance and materials. • Residents are encouraged to recreate historic features on a building where they once existed on that building but were later removed. These projects, however, should rely on evidence such as historic documentation or the "ghosting" (physical imprint or outline) of lost features to guide an accurate recreation. • Look for historic photographs and original architectural drawings that could provide the basis for replicating missing features. 3.3.3 Do not introduce new architectural elements to a residence where they did not exist historically. • Avoid placing new stylistic elements on a residence (such as brackets or bay windows) based on conjecture rather than on research—i.e., if the chief reason is that they simply feel period appropriate. • A residence should not have new features added that represent a different historic period or architectural style than the existing property. • When selecting new features such as lighting fixtures, choose a style that is compatible with the character of a home but that may also exhibit contemporary character. 66 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 3.3.4 When planning to paint exterior walls and features, explore color schemes that are compatible with a home's historic context. • Aim to select paint colors for the exterior of a residence that are compatible with the historic character and period of the residence. This effort can be informed by research on period-appropriate schemes, as well as by careful investigative testing that could reveal a home's historic paint colors. • Muted colors are encouraged for the primary exterior walls, with contrasting accent colors selected for decorative elements and trim. • Avoid selecting colors or reflective sheens that contrast sharply with nearby buildings. For additional information: “Preservation Brief 2: Repointing Mortar Joints in Historic Masonry Buildings” (NPS), https://www.nps.gov/tps/how-to-preserve/briefs/2-repoint-mortar-joints.htm “Preservation Brief 45: Preserving Historic Wood Porches” (NPS), https://www.nps. gov/tps/how-to-preserve/briefs/45-wooden-porches.htm 67GUIDELINES FOR MAINTAINING, REPAIRING, AND/OR REPLACING HISTORIC MATERIALS Solar roof panels should be placed so that they have as minimal a visual impact as possible on the publicly visible areas of a home. 3.4 e Historic Character of Homes Should Be an Important Consideration When Exploring Green Technology. Sustainability is a critical principle that can be achieved with many building types, including historic residences. “Green” building approaches and a home’s significant historic qualities are not mutually exclusive and can work in tandem. 3.4.1 Solar panels and other energy savings devices should be placed to have as small an impact on historic character as possible. • Place solar panels and skylights on roof slopes that are less visible from the public right-of-way whenever possible, as these types of features can visually contrast with the historic forms, textures, and materials of the roof. • Research new solar panel and energy capture products that attempt to replicate the appearance of wood shingles; use them where they will have the least visual and material impacts, such as away from the front of a residence when feasible. 3.4.2 Sustainable materials should be considered while planning exterior alterations. • Investigate post-consumer and salvaged materials with an eye towards replicating the historic appearance of original features and materials. • Keep in mind that repairing and retaining existing historic features where possible is an inherently green approach because it saves energy and materials. 68 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES For additional information: “Illustrated Guidelines on Sustainability for Rehabilitating Historic Buildings,” (NPS), https://www.nps.gov/tps/standards/rehabilitation/guidelines/index.htm "Design Guidelines for Solar Installations," (National Trust for Historic Preservation), http://www.preservationnation.org/information-center/sustainable-communities/ buildings/solar-panels/design-guidelines-for-solar.html Guidelines for Altering or Adding to Residences from Early Periods of Development (c. 1890-1930s) THIS PAGE INTENTIONALLY BLANK 73GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM EARLY PERIODS OF DEVELOPMENT 4. Guidelines for Altering or Adding to Residences from Early Periods of Development (c. 1890-1930s) It is anticipated that some projects proposed for residences in Professorville will exceed the scope of maintaining, repairing, and preserving historic features. Constructing additions and other major projects may result in obvious interventions that could distract from the historic character of a residence or its surrounding streetscape if not conducted sensitively. Such projects, however, can be planned and implemented to have a minimal impact on the neighborhood, and in some cases to enhance the neighborhood's character and visual qualities. The guidelines in this chapter are intended to give homeowners and architects a set of principles that would accommodate change—yet would also help safeguard a residence’s distinctive form, visual character, and relationship to its neighbors. These guidelines are tailored specifically for residences that date to Professorville’s earliest period of development from the 1890s to the 1930s. Residences built during these decades embody the historic district’s unique character, and most likely these are the buildings that first come to mind when a Palo Alto resident thinks of Professorville. The neighborhood’s homes from this era are stylistically varied—showcasing Arts and Crafts, Colonial Revival, and Eclectic Revival influences—yet many have similarities in terms of scale, materials, and placement on the lot. Stewardship of the distinctive character of these residences while allowing and managing change is the most important goal of historic preservation in Professorville. 74 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 4.1 New Additions to Early Residences Should Respect the Primacy and Historic Features of the Original Building. Professorville’s older residences are defined by their relatively uncomplicated volumes, distinctive architectural features, and strong façade planes that face the street, forming a repeated visual rhythm that is one of the neighborhood’s most memorable qualities. New additions to these homes should be designed to be subordinate to the existing buildings and support the overall appearance of the historic streetscape. 4.1.1 Additions should be placed where they will not distract from the volume of the historic residence. • Locate new additions at the rear of the historic residence whenever possible. This strategy maintains the historic view of the home as seen from its front, as well as the overall streetscape pattern as experienced in the public realm. • If a side addition is desired, design the addition so that it is set back clearly from the primary volume of the residence. Such an approach retains the primacy of the original building and continues a historic pattern of constructing subordinate additions in the neighborhood. • When designing an addition to a residence, consider where new construction would have the least impact to existing character-defining features. An area that has already experienced alterations, such as at a previously constructed addition, may be the most appropriate location for new construction. For additional information: “Preservation Brief 14: New Exterior Additions to Historic Buildings: Preservation Concerns” (NPS), https:// www.nps.gov/tps/how-to-preserve/ briefs/14-exterior-additions.htm This side addition to an early home in Professorville is visible from the street but is clearly set back from the original front façade. 75GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM EARLY PERIODS OF DEVELOPMENT • Constructing new attached garages on historic homes is strongly discouraged in Professorville, as attached garages convey a later development pattern in the neighborhood (see 7.3.2). If an attached garage is deemed necessary, make every attempt to place it to the rear of the primary volume of a residence in order to minimize its visual impact as seen from the street. 4.1.2 New additions should be sized appropriately to the scale of the historic residence. • Design an addition taking into account the size that is best suited for a sensitive and compatible addition, rather than simply designing an addition to maximize the square footage on a lot. • Avoid constructing an addition that exceeds the height of the existing home, in order to ensure that the form and scale of the historic residence remain the prominent characteristics. If a taller addition is necessary to meet the needs of current occupants, such as in the case of an existing one-story cottage, explore strategies to minimize the visual and physical impacts of the addition. These strategies may include setting the addition behind the existing home, connecting the existing and new volumes with a hyphen, and mitigating the visual bulk of the addition with sloped roofs. Consider the effect of an addition's placement and height on the overall appearance of a home. A hyphen can be used to differentiate a new addition from the original house volume. 76 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES • Avoid building a rear addition that is wider than the original residence. Ideally, a rear addition will not project beyond the sides of the existing house volume. If the narrow width of an existing residence would result in a wider rear addition in order to meet the needs of current occupants, pay special heed to employing compatible massing and roof forms to minimize the visual impact of the addition. 4.1.3 If a home already has a non-historic addition, consider placing a new addition at the same location in order to alter historic character as little as possible. • Portions of a home that have already experienced change can be considered as areas of opportunity for new construction, where they pose the least risk of affecting overall historic character. • Where existing non-historic additions are incompatible with the character of a historic home, consider employing selective demolition and/or new construction to improve the form and massing of the addition and its compatibility with the historic volume. • Existing non-historic additions can generally be removed without affecting the character of the property or the historic district. Note that an addition from Professorville's early periods of development may contribute to a residence's character (see 4.5.2). 77GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM EARLY PERIODS OF DEVELOPMENT These side additions were designed to share materials and decorative features with the original home. 4.2 e Architectural Character of a New Addition Should Be Compatible with the Historic Residence. The existing character of historic properties in Professorville—as evidenced by a property's style (if any), its period of construction, its materials and ornamentation, and its level of historic craftsmanship—should be referenced in the design of new additions. The new work should not introduce new material types, new complex roof shapes or volumes, or new types of detailing that are not already present on the historic building. “Compatible but differentiated” is an achievable balance that property owners should strive toward. 4.2.1 e massing and roof forms of an addition should draw on the architectural cues of the existing residence. • Design additions with a careful eye to the original massing of the residence. • Plan the new roof forms of an addition to be similar to those of the existing home. This includes both the shape of the roof (gabled or gambrel roof, for instance) and the pitch of its slopes. • If designing a first-story addition, consider a shed roof. This form is generally compatible with a range of roof types and can extend an original roof slope without a distracting visual impact. 78 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 4.2.2 e characteristic materials of a residence should inform the choice of materials for a new addition. • Respect the existing residence by using cladding and roofing materials that are compatible with those that are historic. • A new addition may continue the use of character-defining features found on the residence, such as brackets and exposed rafter tails, in order to provide visual continuity. However, slight variation and/or simplification in detailing at the new addition is recommended in order to differentiate old and new (see 4.2.4). 4.2.3 e fenestration pattern of an addition should generally match that of the existing residence. • Use a surface-to-void ratio of windows and wall space that continues the pattern found on the original residence. • Design a window pattern to match the residence’s existing hierarchy of windows—considering the different sizes and heights that occur on different levels. • Construct new windows at an addition with materials (preferably wood) and sash configurations that are compatible with, although not necessarily identical to, those on the original residence. 79GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM EARLY PERIODS OF DEVELOPMENT 4.2.4 An eort should be made to dierentiate an addition from the original building. • Differentiation is an important preservation principle that allows historic fabric to be distinguished from new, in order to avoid creating a false sense of historical development. New construction should not be radically different in style or materials; however, minor differences can be used effectively to distinguish new from old. • Prioritize differentiating the architecture of an addition in some way, rather than matching the original residence so closely in materials and style that the addition could be mistaken as historic in its own right. • Consider using siding materials and decorative features for an addition that have a subtly different profile, dimensions, or spacing pattern than the historic residence. A common technique for differentiation is to use similar, but simplified, decorative details at the addition, which would allow the addition to read as subordinate to the historic building. • Where a new addition has the same number of stories as its attached residence, consider placing the addition’s eave heights slightly lower to indicate the beginning of new construction and to indicate the primacy of the original residence. • Keeping compatibility in mind, avoid designing an addition with an architectural vocabulary that contrasts strongly to the primary residence for the sake of differentiation. • Do not attempt to differentiate an addition simply by using a contrasting paint color scheme. New colors and accent schemes should be compatible with those used on the original residence. 80 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 4.3 New Dormers and Second-Story Additions Should Be Designed to Be Compatible with the Character of the Original Residence. Roof dormers are commonly seen in Professorville and were originally designed to allow light and additional room into upper levels that are located within the roof form of a residence. New dormers would therefore be generally compatible with the neighborhood’s historic qualities and should be designed to enhance the historic scale and character of residences. 4.3.1 New dormers should be scaled so as to retain the predominance of the original roof form and the overall character of the neighborhood. • Scale new dormers appropriately so that they do not overwhelm the primacy of the historic roof. The original roof form should be plainly visible after the dormer is in place. New dormers would be inappropriately large if they span from end to end of the original roof slope or if they reach from eave to ridge. • Center a newly constructed dormer on its roof slope, reflecting the character of Professorville’s early residences. • It is acceptable to introduce more than one dormer on a single roof slope if they are spaced evenly and do not visually crowd the roof. Constructing an appropriately scaled roof dormer can be an effective strategy to create livable space within a roof form, in keeping with the neighborhood's historic character. 81GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM EARLY PERIODS OF DEVELOPMENT 4.3.2 e architectural character of a residence should guide the design of a new dormer. • Choose a dormer’s roofing and cladding materials, as well as distinctive features like exposed rafter tails, to reflect the character of the original home. • It is not necessary to design new dormers with roof forms that match the overall roof of the residence. A shed-roofed dormer is appropriate to a side- gabled residence, for instance. • Employ minor differences in materials and features to indicate that the new dormer is not original to the residence. 4.4 A Residence Should Not Be Lifted or Moved on Its Lot Such that Its Historic Spatial Relationships are Changed. A historic building’s location on its lot and its spatial orientation and relationships to other nearby properties are important aspects of a building's historic character and the district as a whole. Lifting or moving a residence can change its overall scale and visual impression, as well as its relationship to its neighbors, which can affect the entire neighborhood. 4.4.1 Early residences in Professorville should remain at their historic elevations and heights. • If a new foundation must be constructed, attempt to construct it so that the existing home remains at the same elevation. If the new foundation will be visible, use exterior materials that are compatible with the character of the building. Raising a residence onto a substantially taller foundation may bring it visibly out of scale with its neighbors. Pay attention to the heights of surrounding floor levels and rooflines. 82 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES • If a historic residence is raised, avoid impacting its floor, eave, and roof ridge heights such that they would be out of keeping with its character and surrounding homes. • If raising a home requires alterations to an existing entry or porch (i.e., replacing an existing landing or run of steps), retain historic materials whenever possible, and take care to design alterations to be compatible with the historic character of the home. 4.4.2 Early residences should remain in their historic locations unless practical considerations necessitate relocation within their lots. If moved, a home’s character-dening orientation and setting should be maintained. • Avoid moving an early residence within its lot, as a building's original location contributes to its integrity. Justification for moving a building should be based on practical hardship rather than preference. • If an early building is to be moved, it should not be moved to a different area of its lot; rather it should be kept in the same general area (i.e. avoid moving a building from the front to the back, or vice versa). Also, avoid moving a building so that it would encroach upon characteristic landscape features or other buildings. • Avoid turning a residence on its lot so that its front façade is oriented in a different direction than it was historically, as this breaks a property's historic association to its neighbors and its streetscape. • An early residence should remain on the lot upon which it was constructed. 83GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM EARLY PERIODS OF DEVELOPMENT 4.5 Demolition of Historic Features and Volumes on an Early Residence Should Be Avoided. Selective demolition in order to accommodate new additions should be planned carefully to avoid significant impacts to the building’s historic integrity. Whenever possible, elect instead to make alterations in areas where change has already occurred (see 4.1.3). 4.5.1 Selectively demolishing character-dening features and volumes diminishes the overall historic character of a home and should be avoided. • Avoid demolishing historic features that define the character of a residence, in particular those located on the front and those that can be seen from the street. • Demolishing features located at the rear of a residence is generally less impactful, and therefore a more acceptable option, than demolition at the front or sides, which are typically visible from the public right-of-way. 4.5.2 Existing additions and alterations that occurred during Professorville’s early period of development (through the 1930s) may contribute to a residence’s historic character. • Whenever possible, avoid demolishing additions that date to the neighborhood’s historic period, as they can provide a physical record of historic development patterns in the neighborhood. • Not every older addition or alteration is character-defining. Consult with preservation professionals regarding the relative importance of any particular historic addition or alteration to an original residence. The upper dormer on this home was an early intervention and should not be considered to detract from the overall historic character. THIS PAGE INTENTIONALLY BLANK Guidelines for Altering or Adding to Residences from Later Periods of Development (1930s-Present) THIS PAGE INTENTIONALLY BLANK 89GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM LATER PERIODS OF DEVELOPMENT 5. Guidelines for Altering or Adding to Residences from Later Periods of Development (1930s-Present) The first wave of development in Professorville came to a close during the 1930s, and subsequent home construction in the neighborhood introduced new architectural styles and materials. In certain ways, more recently constructed buildings contrast with the earlier homes of the neighborhood: they were built with mass-produced and/or more affordable materials, and they were designed when automobiles—and thus residential garages—had become even more ingrained in the lives of many Americans. Although constructed during Professorville’s later period of development, postwar residences also contribute to the surrounding streetscape. Regardless of materials and architectural style, most later residences bear a relationship to their older neighbors and respect their defining scale and features. Whereas the guidelines contained in Chapter 4 focused on strategies to maintain the integrity of the earliest properties—which are the most important in conveying the district’s historic character—this chapter offers a parallel set of guidelines that are more general in nature. Their purpose is to guide changes to later residences while minimizing the impact of changes on the overall character of the district. 90 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 5.1 Alterations to Existing Materials and Features Should Be Planned So As Not to Detract from the Overall Aesthetic Patterns of the Historic District. Later residences located within the boundaries of Professorville are usually visible as such: they have distinctive house forms and cladding materials that easily distinguish them from the earlier residences around them. It is appropriate to maintain the newer homes as they exist, but proposed alterations should be planned so that they do not create a new visual impact on the district. 5.1.1 Modern materials and features should be compatible with, yet dierentiated from, the historic character of the district. • Retain types of roofing and wall cladding that relate to the materials and textures found on earlier houses, as well as to the neighborhood’s rustic feeling. These may include modern wood shingles and board-and-batten siding. While stucco is historically present, it is not predominant in the district. • Avoid new cladding or roofing materials that are not already used in Professorville, such as stone veneer. • Do not install synthetic cladding materials, such as vinyl or aluminum, on any residence in Professorville. • If doors and windows are replaced, select the new to have simple arrangements. They should also be sized compatibly with the windows found on surrounding residences. Some newer residences are clad in wood shingles, reflecting Professorville's historic material palette. Retaining these shingles would help to relate homes from different eras within the district. 91GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM LATER PERIODS OF DEVELOPMENT 5.1.2 Modern-style buildings have their own distinctive types of materials and features and should not be altered with period-inappropriate elements. • Do not add decorative features to a newer residence simply because they are characteristic of early homes elsewhere in the neighborhood, as this can create a false sense of historical development in the district. 5.2 Additions to Later Buildings Should Have As Minimal a Visual Impact As Possible and Should Respect Neighboring Residences. While not historically significant within the context of Professorville, later residences can still contribute to the district by conforming to the historic rhythms of the streetscape. Any changes in massing and form should be planned so that they continue to support the regular rhythm of houses that defines the neighborhood’s visual character. 5.2.1 New additions should be placed on their lots and scaled to be as unobtrusive as possible. • Design and site a new addition that supports the surrounding streetscape pattern; placement at the rear of the building rather than facing the street is strongly encouraged. • Design an addition that is of an appropriate scale and height to the residence and its neighbors. The addition should not change the massing of the residence so that it is incompatible with surrounding historic homes. As with historic residences, additions to more recent homes should be recessed from the front façade to strengthen Professorville's overall streetscape pattern. 92 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES • If planning to build an attached garage space, consider the overall visual impact. Avoid a new attached garage that is visible at the front of a residence, which would not be in keeping with Professorville's historic pattern of detached garages located at the backs of lots. An attached garage would preferably be side-facing and set behind the primary volume of the house. 5.2.2 An addition should be designed with an architectural vocabulary that is both appropriate to the main residence and relates to surrounding older homes. • The roof form of an addition should resemble and/or continue the roof form of the original residence. • Explore cladding and roofing materials that are similar to those of the original residence, but are differentiated slightly in size or profile. While differentiation may be less important of a concern for more recent residences than for older residences, this strategy is typically encouraged. • Windows on an addition may be of the same material as windows on the original residence, and should relate to the character of nearby older residences in terms of scale and spacing. • Consider constructing a front porch if a residence does not already have one, in keeping with the style and period of the house. This type of feature can relate newer buildings to Professorville’s earlier homes. • Paint colors chosen for a new addition should relate to the original residence and should be compatible with the appearance of surrounding historic homes. 93GUIDELINES FOR ALTERING OR ADDING TO RESIDENCES FROM LATER PERIODS OF DEVELOPMENT 5.2.3 A second-story addition will likely be visible from the street and could change the appearance of a residence. Such an addition should be carefully designed to enhance the historic qualities of the neighborhood. • Design a second-story addition with the goal of minimizing its visual bulk. Utilize sloping roofs and overhanging eaves to mitigate bulk. • Avoid "stepping back" upper stories, which would result in a complex volume that is not characteristic of homes in the neighborhood, which typically have strong, unbroken façade planes. 5.3 Lifting or Moving a Later Building on Its Lot Should Not Interrupt the Overall Streetscape Pattern of the Surrounding Area. Professorville’s more recent homes are visually related to their neighbors and should not be substantially lifted or moved if this would affect the consistent character of the streetscape. The original location of a later residence on its lot, however, is not necessarily an important consideration to the district’s historic significance. 5.3.1 A later residence should not be raised above its existing height if this action would change the height and perceptible scale of the building to be larger than its neighbors. • If considering whether to raise a house or alter the level of a foundation, pay attention to the floor, eave, and roof ridge heights of neighboring homes. Strive for compatibility with the surrounding streetscape. 94 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 5.3.2 A later residence may be moved on its lot if it supports or enhances the district’s historic streetscape pattern. • Relocate a residence so that its new location and orientation are consistent with the setbacks, side-to-side spacing pattern, and street-facing orientation that characterize the neighborhood. 5.4 Special Note: Potential for Individual Historic and Architectural Signicance Outside of the District Context It is possible that buildings in Professorville constructed during the later development period could be determined to have individual historic or architectural significance. Properties may become eligible for historic register listing, if a good case for their significance exists. This means that later buildings in Professorville—while not strictly contributing to the historic district’s significance— could potentially be considered historic resources on the basis of their own individual architectural designs or historical backgrounds. Residents who plan to alter a later building that is found to have individual historic significance should explore project options that would preserve architectural forms and features that convey significance. These guidelines do not address design compatibility for later properties that are architecturally or historically significant. The modest cottages making up Kingsley Court were constructed after the first wave of development of Professorville, but they were designed by Birge Clark, an important Palo Alto architect. Keep in mind that later buildings in the neighborhood may have their own grounds for historic significance. Guidelines for Designing and Building New Residences THIS PAGE INTENTIONALLY BLANK 99GUIDELINES FOR DESIGNING AND BUILDING NEW RESIDENCES 6. Guidelines for Designing and Building New Residences While most lots within Professorville are currently built out, construction of new residences in Professorville may occur if and when larger lots are subdivided and further developed, detached secondary dwelling units are built on existing lots, or an existing non-historic home is replaced. As opportunities for new residential construction arise, it is critical to design new buildings to be compatible with the neighborhood’s early residences, yet also differentiated in some way in order to continue the physical record of historical development in the district. The most important considerations for compatibility include site placement, general form and massing, size and height, and fenestration patterns. Designing a home that takes into consideration these aspects of the historic character of surrounding homes would ensure that the overall appearance and feeling of Professorville remain distinguishable. 100 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 6.1 New Construction Should Avoid Demolition of Existing Buildings. New construction is anticipated in Professorville. However, existing residences should not be viewed as opportunities for demolition and new development. Most existing residences are complementary to the character of the district, even though not all residences in the district are historic contributors or date to its early period of development. Demolishing and replacing an existing residence can be disruptive to a historic, established streetscape. 6.1.1 Do not demolish an early residence. • The early homes of Professorville, constructed between the 1890s and 1930s, are the critical components of the historic district. Demolishing an early residence would adversely and permanently affect the district. • In the case of an early residence that is heavily altered or damaged, attempt to rehabilitate and/or repair it rather than pursuing demolition and replacement. 101GUIDELINES FOR DESIGNING AND BUILDING NEW RESIDENCES 6.1.2 Avoid demolishing later residences that are complementary to the district. • While they are not necessarily important to the historic integrity of the district, some properties constructed after the 1930s provide compatible architectural background for the historic contributors. Be cognizant of how existing later residences fit into and reinforce historic development patterns, and retain wherever feasible. • Later residences that are not compatible with the character of the district may be candidates for demolition and replacement, provided that the new construction is compatible with the district. • Please note that even later buildings could potentially have individual significance that is unrelated to the district (see 5.4). 6.1.3 Attempt to construct new residences without removing existing residences. • Seek out opportunities to subdivide existing large lots into new developable lots. • Take advantage of opportunities to construct detached secondary dwelling units on existing lots. 102 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 6.2 New Residences and Accessory Buildings Should Be Sited Within eir Lots to Reect Professorville’s Historic Development and Streetscape Patterns. New residences in Professorville should support the broader visual character and texture of the neighborhood. An important step is selecting a location on the lot that continues the overall cadence of houses on the surrounding block. 6.2.1 A new residence should be placed on its lot with a similar location, setback, and orientation as nearby residences in Professorville, which typically follow historic patterns. • Place a new residence within its lot (setback and side-to-side spacing) to follow the general pattern of homes on its block, in order not to interrupt the continuous streetscape pattern. A new home’s setback from the street should be within the range used on surrounding residences. • Always orient a new residence with its primary façade facing towards the street. When siting a new residence, pay attention to the setbacks of surrounding homes. 103GUIDELINES FOR DESIGNING AND BUILDING NEW RESIDENCES 6.3 Proposed Residences Should Be Designed to Match the Scale, Massing, and General Form of Older Residences. The earliest homes in Professorville are distinguished by their relatively simple forms, controlled scale, and strong front façade planes. These characteristics should guide future construction so that new homes are human-scaled and have a visual presence that is appropriate to the neighborhood. 6.3.1 e size and height of a new residence should reect Professorville’s early homes in order not to look out of place within the neighborhood. • Generally speaking, design a home that is similar in scale to surrounding early residences. Attempting to maximize the allowable floor area on a lot may not result in a house size that is most compatible with Professorville’s historic character. • Set the heights of the foundation, floor levels, eaves, and upper roofline on a new residence to be similar to the heights of those features on neighboring houses. 104 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 6.3.2 e massing and form of a new residence should be carefully planned to avoid perceived bulk that is incompatible with the neighborhood streetscape. • Design a new residence that is solidly massed with simple volumes, reflecting the forms of Professorville’s earlier homes. Rather than using unconventional massing, explore other strategies to provide visual interest. • Maintain a strong sense of the front façade plane, and do not include volumes projecting forward from it. Front porches are one important exception. • Consider designing the upper story of a residence to be contained within the roof form (i.e., a one-and-one-half-story residence), where this pattern is seen on surrounding historic residences. • Consider accommodating additional interior space through a rear wing that is not immediately visible from the street. This strategy would manage the perceived bulk and visual impact of a new residence while meeting the needs of occupants. When designing a new residence, strive to match the massing of immediately surrounding homes. While the neighborhood contains a mixture of house types and scales, compatibility will be best achieved when cues are taken from neighboring residences. Visual bulk could be managed by placing an upper story within the roof form, where neighboring residences use a similar strategy. 105GUIDELINES FOR DESIGNING AND BUILDING NEW RESIDENCES Simple roof forms that have precedence within Professorville are better suited to the neighborhood than roofs with many intersecting slopes. 6.3.3 A new residence should have a relatively simple roof form that references the forms found elsewhere in the neighborhood. e roof should be sized to complement the building’s proportions, not complicate them. • Select roof forms that are relatively simple and have precedence within Professorville. Do not design roofs that have many intersecting slopes, are flat, or have a form that is not found elsewhere in the neighborhood. • Consider including dormers in the roof design for a new home. Gabled, hipped, and shed-roof dormers are all appropriate to Professorville. • If a two-story residence is planned, design the roof with a low pitch to reduce overall height and visual bulk. • Break up an expansive, blank roof slope, particularly those facing the street, with dormers that complement the appearance of Professorville's early homes. 106 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 6.4 e Architectural Style of a New Residence Should Be Compatible with the Character of Early Houses in Professorville. The architectural style of a residence connects the various aspects of its visual character, including roof form, materials, and decorative features. The textured visual character of Professorville is supported in part by differences in architectural style, so no particular styles are mandated for new construction. A degree of variation is highly encouraged. At the same time, new residences should relate to the influence of surrounding residences. As with new additions to early residences, “compatible yet differentiated” is an important principle that should guide architectural designs. 6.4.1 New residences should be compatible with historic architectural inuences that are already found in the neighborhood. • Consider historic style precedents within Professorville when planning a new residence. Common styles in the neighborhood—such as First Bay Tradition/ Shingle Style, Colonial Revival, Prairie School, and various Eclectic Revival styles—are appropriate influences for new construction. No one particular style is mandated. • If a contemporary house design is desired, strive to blend it in with the neighborhood’s existing aesthetic patterns and residential forms/massing. New residences within Professorville can relate to the district's historic homes using compatible architectural styles. Contemporary architectural styles can also be used successfully, keeping in mind the general form and materials of earlier homes. 107GUIDELINES FOR DESIGNING AND BUILDING NEW RESIDENCES • Do not design a residence in a generally historicist style that does not have precedents in the neighborhood. • Consider using wood shingles or clapboard siding, as well as elements like bay windows, belt courses, and eave brackets, as a way to relate a new residence to the character of Professorville’s early homes and styles. • Choose stucco for exterior walls if a Spanish Colonial or Mediterranean influence is desired. In these instances, rounded clay tiles would be the appropriate roof covering. • Explore using materials that repeat the texture and visual impression of those found on historic Professorville homes. Brick and stone are seldom found on older homes in Professorville.Avoid designing a new residence with a contemporary architectural style that involves massing, roof forms, materials, and window patterns that are not compatible with the historic character of Professorville's early homes. 108 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 6.4.2 Choose strategies that dierentiate new construction from the neighborhood’s early residences. • Differentiate a new residence from its older neighbors, even when drawing on Professorville’s historic styles. Subtle differentiation strategies are encouraged. • More noticeable differentiation with modern materials may be possible if the scale, roof forms, and perceived massing of a proposed residence still reflect the basic character of surrounding homes. The balance of “compatible yet differentiated” should be achieved. • If a new residence is constructed on a lot that has been subdivided from a larger lot, take heed to retain the primacy of the original house on the lot. This can be accomplished through a modest scale and more restrained use of architectural features. 6.4.3 Paint and stain colors for the exteriors of new homes should generally be compatible with historic homes in Professorville. • Aim to select colors for the exterior of a residence that are compatible with the historic character of the district. • Muted colors are encouraged for the primary exterior walls, with contrasting accent colors selected for decorative elements and trim. • Avoid selecting colors or reflective sheens that contrast sharply with nearby buildings. 109GUIDELINES FOR DESIGNING AND BUILDING NEW RESIDENCES 6.5 e Entrances and Fenestration Patterns of New Residences Should Be Designed to Connect a New Residence to the Established Visual Character of the Neighborhood. Doors and windows are key elements that establish the human scale of a residence. The traditional patterns of window and door openings in Professorville should remain important influences while a new residence is being designed. 6.5.1 Doors and porches should relate directly to the public realm and support the historic character of the streetscape. • Always place the primary entrance on the front façade, facing the street. • Select door types that are compatible with the house style and overall character of the neighborhood. • Consider incorporating a first-story porch into a new house design, reflecting the majority of early homes in Professorville. These features are welcoming, and they allow an understandable progression from the public realm of the neighborhood into the private space of the home. • If a porch design is being developed, select a roof form that relates to the roof of the overall residence. Porches can also be recessed behind the front façade plane, if appropriate to the new house design. • Include additional stylistic elements, such as exposed rafter tails, in a porch if they relate to the architectural style of the residence.New residences in Professorville can use front porches effectively to reflect the character of historic homes in the neighborhood. 110 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES New residences should not be designed with surface-to-void ratios that contrast strongly with their historic neighbors within Professorville. • Avoid double-height entrance features that accentuate the height of the residence and are out of scale with the entrances found on surrounding houses. • Avoid two-story porches in new residential designs, as they did not exist in Professorville in the past. 6.5.2 Window types and arrangements on new construction should reect traditional patterns within Professorville. • Arrange windows so that a new residence has a surface-to-void ratio (i.e., amount of glazing in relation to walls) similar to that of early homes in the neighborhood. • When feasible, select wood-sash windows with lite configurations that are compatible with windows found elsewhere in Professorville. • Design the fenestration pattern so that there is an understandable hierarchy of window sizes and/or types from the base of the house to the top. Avoid window types, sizes, and locations that appear randomly assigned. • Avoid oversized windows that are out of character with the house and the neighborhood. Guidelines for Site Improvements: Landscape, Accessory Buildings, and the Streetscape THIS PAGE INTENTIONALLY BLANK 115GUIDELINES FOR SITE IMPROVEMENTS: LANDSCAPE, ACCESSORY BUILDINGS, AND THE STREETSCAPE 7. Guidelines for Site Improvements: Detached Second Units, Accessory Buildings, Landscape, and Streetscape The guidelines in this chapter address the historic qualities of the Professorville Historic District's landscape, streetscape, and accessory buildings, which complement the architecture and character of the neighborhood's historic residences. Those who live in and travel through Professorville recognize that the neighborhood is not simply a collection of private homes: its distinctive historic and aesthetic characteristics are also supported by a generous tree canopy and plant life, fences and other yard features, walks and drives, and accessory buildings like carriage houses and garages. All of these elements contribute to the textured and shaded impression that distinguishes the neighborhood. The landscape of Professorville is part of the public realm, and it can be experienced and enjoyed by all who enter the neighborhood. For this reason, the guidelines in this chapter focus on the overall character of the neighborhood that can be seen from public areas, specifically its streetscape and pattern of front yards. The aim of this chapter is to provide guidance to property owners, as well as to the City of Palo Alto, regarding the landscape features and materials that are located among Professorville’s houses and alongside the neighborhood’s roadways. While the quality of the streetscape is addressed in earlier chapters (for instance, the appropriate placement of houses within their lots), this chapter provides recommendations specifically for site features, plant materials, and circulation patterns. Property owners should refer to these guidelines when they consider making substantial changes to their yards, trees, 116 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES accessory buildings, and paved areas, to ensure that their proposed plans enforce the neighborhood’s historic character. Guidance is also provided for the City of Palo Alto, so that potential changes to Professorville's public infrastructure can be developed with the historic character of the neighborhood in mind. The ultimate goal of these guidelines is to preserve and enhance Professorville’s experience and overall historic character for the neighborhood’s residents, pedestrians, and bicyclists who experience it on a recurring basis. 117GUIDELINES FOR SITE IMPROVEMENTS: LANDSCAPE, ACCESSORY BUILDINGS, AND THE STREETSCAPE The open, planted quality of many front yards in Professorville is an appropriate model for new landscaping. 7.1 Professorville’s Historic Pattern of Yards and Plantings is a Critical Component of the Neighborhood’s Visual Character and Should Be Maintained. Natural features are found in every corner of Professorville. Yards and parking strips are the visible open spaces of the neighborhood, acting as connective tissue between the residences. The varied yet consistent character of the landscape includes diverse yard types, plantings, and tree species that contribute to the historic feeling of the district as much as its individual buildings. Large native trees visible to the street are considered to be of high value. 7.1.1 Lot grades and ground cover should generally be consistent with the neighborhood’s historic character. • Maintain a generally flat grade in front yards. Do not introduce berms or other distracting features that can be seen from public areas. • Preserve predominant areas of openness in front yards to reflect the historic character of the neighborhood’s landscape. • To prepare for possible drought conditions, explore xeriscaping options that use low, water efficient plants to convey a lush character. • Avoid installing synthetic ground coverings in residential yards, as they do not sufficiently replicate the appearance of natural turf. Instead, consider using permeable surfaces comprised of natural materials (i.e., stone, gravel, pavers) in order to reduce water usage. 118 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 7.1.2 Fences, hedges, and other boundary features should be appropriately designed and scaled to convey a visual progression from public to private space and to preserve Professorville’s historic landscaping patterns. • Recognize that yards in Professorville have historically supported a visual progression from public to private space. In addition to delineating private property lines, fences and hedges have historically allowed a visual relationship between private residences and the public sidewalk and street. • Attempt to retain wood fences and hedges that follow the boundaries of front and side yards, including along the public sidewalk. These features mark the boundaries of private property and support the neighborhood’s idyllic character. • Where a new fence or hedge is required, choose a configuration and materials that are compatible with the style of the property and the neighborhood’s historic precedents. Low and visually permeable boundary features, such as wood picket fences, are strongly recommended alongside the public sidewalk. • Avoid tall and visually impenetrable fences and hedges surrounding front yards, which can limit visual access to the architecture of the district. • Do not install fences made of metal chain link, plastic, or other materials that are incompatible with the neighborhood’s historic character. • Stucco-clad walls may be appropriate if chosen to match a residence that has stucco cladding, but these walls should remain low. Fences or hedges with a more permeable visual character, however, are preferred. Low fences and hedges are both good strategies to delineate front yards while allowing a visual relationship to public areas. 119GUIDELINES FOR SITE IMPROVEMENTS: LANDSCAPE, ACCESSORY BUILDINGS, AND THE STREETSCAPE For additional information: City of Palo Alto Tree Technical Manual (City of Palo Alto), http://www. cityofpaloalto.org/civicax/filebank/ documents/6436 “Urban Canopy” (City of Palo Alto), http://www.cityofpaloalto.org/services/ sustainability/trees.asp “City Tree Regulations” (Canopy), http://canopy.org/about-trees/trees-in- palo-alto/city-tree-regulations/ Professorville's historic leafy character should be preserved through sensitive treatment of trees.Source: Stanford University Historical Photograph Collection • Gates of pedestrian scale may be incorporated into the front fence at walkways, but avoid elaborate gate or trellis designs that may visually compete with the residence, including at vehicle entrances. • If it is determined appropriate for residences alongside Embarcadero Road to have taller and/or solid fences, in order to reduce the visual and audible impacts from automobile traffic, use materials and construction techniques that are consistent with the character of the district. 7.1.3 Trees should be maintained to convey the neighborhood’s existing leafy setting whenever possible. • Attempt to retain mature trees where they occur in private yards, unless proven to be unhealthy, as they contribute to Professorville’s overall tree canopy. The oldest trees, including native live oaks and redwoods, have been retained for over a century during the growth of Professorville. • When a new building addition, accessory building, or residence is planned, take into account the location of mature trees on the lot during project planning. Avoid removing these trees when feasible. • Where front and rear yards lack trees, consider introducing new trees to reinforce the urban forest. Use native and regionally appropriate species. • Consult with City staff with questions regarding tree health, appropriate tree species, safety issues, and protected tree regulations. 120 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 7.1.4 Planting beds along house foundations are common features in Professorville and should be retained when possible. • Introduce shrubs and other ornamental plantings within beds lining house foundations, and retain where they already exist. This strategy supports the neighborhood’s rustic character and enforces the existing pattern of edges and spacing between homes. 7.1.5 New site improvements that could aect historic landscape patterns should be placed so as to be minimally visible from the public right-of-way. • Place air conditioning units, generators, and features that require excavation (such as window wells and basement stair wells) within a lot where they are not immediately visible from the public sidewalk and street. The best location for these features is at the back of a residence. • If located at a side façade, place excavated features and mechanical equipment at the rear half of the residence, away from the front of the property. Investigate planting schemes that screen these elements from public view. 7.1.6 Residents of older properties in Professorville are encouraged to research historic landscaping patterns that are period appropriate to their homes. • Where interest exists, conduct research on planting schemes, species, and circulation patterns that were used for residences in the Palo Alto area during the late nineteenth and early twentieth centuries. This research can inform future landscaping plans at historic residences, if desired, that enhance the historic character of Professorville. See Chapter 2 for additional information on historic residential landscape design. Side yards are typically visible from public areas and contribute to the character of Professorville. The visual impact of mechanical equipment and other distracting elements in these locations should be minimized. 121GUIDELINES FOR SITE IMPROVEMENTS: LANDSCAPE, ACCESSORY BUILDINGS, AND THE STREETSCAPE Ribbon driveways offer an effective way to provide automobile circulation within a property while minimizing visual impact. 7.2 Driveways, Walkways, and Other Paved Elements Should Have As Little Visual Impact on the Overall Landscape As Possible. Paving is often viewed as a functional circulation feature, but it may affect a property’s landscape character and relationship between house and street. As modest walkways and one-car-width driveways are historic features within the neighborhood, new paving should ideally have a similar, minimal visual impact. If a paved surface is too expansive, the neighborhood’s pedestrian-centered experience will be diminished. 7.2.1 e location, size, and materials of a driveway should be carefully selected in order to preserve the broader visual patterns of the neighborhood. • Retain existing one-car driveways (approximately 8’ or 10’ wide) where they currently exist. • Where a new driveway is required, attempt to locate it alongside one edge of the lot. It should preferably be of single-car width until it approaches a detached garage or other designated parking space, where it may widen out. • Consider driveway materials and configurations that decrease surface runoff and minimize visual impact. Ribbon or “Hollywood” driveways (two strips of concrete), permeable brick paving patterns, and turf blocks are all effective options that are already found in Professorville. 122 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES • Explore alternatives to monotonous patterns of paving such as poured concrete. Choose materials that promote a degree of visual variety, and consider options that offer differences in paver coloration and size. Brick is particularly encouraged. • Be mindful of the visual impact of semicircular approach drives or other additional areas of paving. Introducing such an element would be appropriate if proven to reflect a property's historic conditions. 7.2.2 In Professorville, private walkways have often been located at the center of front yards to allow direct access between a residence’s front entrance and the sidewalk. Walkways of this type support the visual progression between public and private spaces and should be maintained. • Attempt to maintain existing walkways that have a low visual impact on the front yard. • In cases of new residential construction or landscape design, plan a new walkway that directly connects the public sidewalk and the front entrance. Straight walkways that are perpendicular to the public sidewalk are preferred, in keeping with historic precedents. • Consider paving materials that are found elsewhere in the neighborhood and provide a degree of visual variation, such as brick or flagstone. • Use connecting or secondary walkways located along the front façade of a residence to provide access between the front entrance and the driveway, garage, or other parking area. Narrow brick walkways provide visual interest to front yards without creating a monotonous paved surface. 123GUIDELINES FOR SITE IMPROVEMENTS: LANDSCAPE, ACCESSORY BUILDINGS, AND THE STREETSCAPE 7.2.3 Ramps or lifts, where required, should be designed to be compatible with the historic character of a residence, to the degree that is feasible. • When planning to add an access ramp or lift, consider issues like visual impact, removability in the future, and whether character-defining features are affected. 7.2.4 Patios placed within a front yard are discouraged, as they often involve paving and other features that interrupt the historic character that is desired for front yards in Professorville. • Attempt to place patios to the side or rear of a residence where possible, to support the open character of Professorville's front yards and the visual progression of landscape to streetscape. • If a patio is placed to the front of a residence, strive to use permeable pavers or other materials that reduce the visual impact of the patio surface. Avoid enclosing front yard patios with low walls or fences. 124 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 7.3 e Rehabilitation and Construction of Garages and Other Accessory Buildings Should Be Planned in Order to Enhance the Historic Character of Professorville. Accessory buildings such as carriage houses and automobile garages have existed throughout Professorville since the neighborhood's earliest years. Whether historic or recent, these types of buildings are important components of their properties: they contribute to the neighborhood's pattern of site layouts, and they convey the neighborhood’s historic development. They also provide opportunities for growth and development in Professorville. Existing accessory buildings can be converted for other purposes while retaining historic character. New secondary dwellings are also encouraged in locations where they support the neighborhood's overall streetscape pattern. Secondary dwellings warrant sensitive planning. 7.3.1 Historic accessory buildings such as garages and carriage houses are important components of early properties and should be preserved whenever possible. • Always make an effort to retain historic accessory buildings and to rehabilitate them sensitively if a new use is desired. • When a rehabilitation project is pursued, retain the building’s original form, materials, and character-defining features to the highest degree feasible. These historic elements will help relate the building to its associated residence. (Refer to Chapter 3 for appropriate guidance on treating the features and materials of a historic accessory building.) Historic garages and carriage houses are important elements of their properties and should remain in use where possible. 125GUIDELINES FOR SITE IMPROVEMENTS: LANDSCAPE, ACCESSORY BUILDINGS, AND THE STREETSCAPE • If possible, retain the existing automobile or carriage door to allow the building to convey its original purpose. • Avoid moving an original garage or carriage house within the lot such that it would alter its spatial and functional relationship with its associated residence. However, moving a historic building is always preferable to demolishing it or making incompatible alterations. 7.3.2 New accessory buildings and secondary dwelling units within Professorville should be placed at the rear of lots so as not to distract from the existing pattern of homes in the neighborhood. • New livable buildings such as detached offices and secondary dwelling units should be placed towards the rear of a lot, preferably in a location that is not directly visible from the public-right-of-way. • New garages should be detached and placed at the rear of the lot whenever possible. This is an important development pattern and defining characteristic of Professorville, as early homes in the neighborhood were typically constructed with detached garages at the backs of lots. (If a new attached garage is considered necessary, see 4.1.1 and 5.2.1 for appropriate guidance on the placement of new attached garages on early and later homes, respectively.) • If an alley is present along the rear boundary of a lot (found within the western half of Professorville), place the new garage directly adjacent to the alley. The alley should serve as the primary access route to the garage, as this was its traditional purpose within the block. Avoid using driveways where alleys exist. Detached garages at the backs of lots are preferred for new residences in Professorville, as this pattern was used historically. 126 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 7.3.3 New garages and other accessory buildings should be designed so that they respect and are compatible with the main residence. • Design a new secondary dwelling or accessory building to be compatible with the general architectural character (massing, roof form, materials, and features) of its residence. Keep in mind that a historic characteristic of Professorville is the vernacular appearance and architectural simplicity of its accessory buildings in comparison to the more elaborately styled houses. • A new secondary dwelling or accessory building should have basic forms, be one story in height, and be otherwise visibly subordinate to its associated residence. An accessory building should be scaled so that it cannot be seen over the roof of the primary residence.New detached garages can be designed with materials and doors that relate to historic residences in Professorville. 127GUIDELINES FOR SITE IMPROVEMENTS: LANDSCAPE, ACCESSORY BUILDINGS, AND THE STREETSCAPE 7.4 Take Into Account Professorville’s Historic Character When Making Changes to the Neighborhood’s Streetscape and Infrastructure. Public infrastructure is closely tied to the quality of Professorville’s streetscape and public realm. Future changes to Professorville’s infrastructure should attempt to support the qualities that distinguish the district. 7.4.1 Professorville’s sidewalks, parking strips, and street trees should be maintained in a manner that enhances the historic district’s streetscape and sense of place. • Maintain the existing pattern of public sidewalks running parallel to the neighborhood’s streets, with planter strips located in between. Minimize new paving in parking strips as much as possible. • Retain existing street trees that stand in parking strips whenever feasible. If street trees are removed for any reason, replace them with similar species and continue the overall spacing pattern seen in the neighborhood. • Attempt to preserve historic trees that currently encroach into roadways, a pattern that occurred in Palo Alto around the turn of the twentieth century. This phenomenon strongly conveys the city’s early development. • Plan new landscape design to screen utilities elements, such as required backflow units, using appropriate shrubs or tall clump grass. Mature native trees have been accommodated throughout Professorville's historic development. 128 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Identification signage has been used in many historic districts to enhance a sense of arrival and neighborhood identity. This curb cut with a tight radius reflects an earlier era of Professorville and could serve as a template for future improvements. 7.4.2 Upgrades to Professorville’s utilities and roadway infrastructure should be developed with the neighborhood’s historic character in mind. • Investigate sensitively moving utilities infrastructure, such as power lines, underground to remove visually distracting poles and wires. Yet, also consider the potential effects that ground disturbance could have on the landscape of the neighborhood. • Design new curb cuts at driveways to repeat the tighter radius of older curb cuts found in Professorville. • Plan upgrades to public roadways in a manner that respects the historic streetscape of the neighborhood as much as possible. Avoid adding new roadway features that did not exist historically and that may be considered visually distracting. • Conduct research in order to identify types of streetlights that may have existed in Professorville during the early twentieth century, with the possible goal of replacing the existing streetlights with historically appropriate fixtures. 7.4.3 Public place-making and education strategies should be considered to enhance the neighborhood’s identity as an important historic district in Palo Alto. • Consider designing and installing signage in appropriate locations near district boundaries that announces the Professorville Historic District. • Investigate a new design for street signs located in Professorville that is distinguished from the City's Standard street signs, and that would augment the district's unique sense of place. Appendices THIS PAGE INTENTIONALLY BLANK 133APPENDIX A - GLOSSARY OF TERMS Cartouche: A decorative relief located on a façade, often of molded stucco and representing a shield or crest. Casement window: A window with the sash hinged on the jamb (vertical side member). Clapboard siding: A siding material consisting of narrow wood boards applied horizontally, with the lower edge overlapping the board below. Clipped gable: A gable that features a partial roof slope (hip) that meets the ridge; also known as a jerkinhead. Cornice: The common name for the decorative projecting element at the top of a façade; commonly bracketed and located above a frieze. Dentils: Small tooth-like blocks set in rows (dentil courses) used in Classical cornices. Dormer: A minor projection on a pitched roof, usually bearing a window on its front face. Dormers can have a variety of roof forms. Eave: The lower edge of a roof slope that intersects with the exterior wall. Façade: An exterior building face. Façade plane: The predominant plane at which the physical features of a façade are arranged. Fanlight: A semi-circular or round arched window located above a door, often with radiating muntin patterns. Appendix A: Glossary of Terms Asphalt composition shingles: Shingles made from roofing felt coated with asphalt and mineral granules. Baluster: Small turned or cut out posts that form a railing. Bay window: The common term for a minor projection containing a window that extends beyond the surrounding façade plane. Belt course: A projecting horizontal member across a façade or around a building. Bracket: A feature that supports, or appears to support, a projecting element such as cornice, eave, or window hood. 134 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Fenestration: The physical arrangement of windows on a building’s exterior walls. Fixed window: A window sash that does not move or open. Gable: The upper area of an exterior wall that is located between the roof slopes. Gambrel roof: A roof form characterized by two roof slopes: one shallower near the ridge, the other steeper near the eaves. Half-timbering: Exposed wood framing infilled with contrasting materials, such as plaster or masonry. In the Tudor Revival style, false half-timbering is used for aesthetic rather than structural purposes. Hipped roof: A roof form where all sides slope between the roof ridge and eaves. Historicist architecture: Architecture that is heavily influenced by past movements, sometimes freely interpreted. Hung sash window: A window in which one or more sashes move vertically. Hyphen: A minor volume that connects two larger volumes. Infill: New construction located within an existing, historic setting. Landscape: The physical and aesthetic setting of a place, typically defined by natural features but also incorporating spatial relationships, views, furnishings, and circulation routes. Lite: A piece of glass located within a window. Massing: The distribution of a building’s volume through space. Muntin: A narrow member that separates the lites within a window sash. Palladian window: A window in the form of a round arch flanked on either side by narrower rectangular windows. Parapet: The area of a building’s exterior walls where they extend above a roof; it can be flat or stepped/shaped. Parking strip: The narrow area containing grass, plantings, or paving that is located between a roadway and its parallel sidewalk. Porch: A component of a building that shelters a building entrance and contains occupiable space. Portico: An exterior structure that shelters a building entrance; it is differentiated by a porch because it covers only the entrance and stoop and does not contain occupiable space. Rafter tail: The exterior expression of a roof structure below the eaves. Rafter tails are sometimes applied decorative elements and commonly have shaped or scrolled ends. 135APPENDIX A - GLOSSARY OF TERMS Setback: The distance between a property line and a building, especially at the front of a lot. Shed roof: A roof form characterized by a single slope. Sidelight: Any window that flanks a door; typically a tall narrow window that spans the full height or partial height of the door. Streetscape: The visual character of a roadway’s setting, including paving, plant life, and adjacent buildings and structures. Stucco: An exterior finish composed of some combination of portland cement, lime and sand, which are mixed with water and applied to a wall in a wet coating and allowed to dry. Surface-to-void ratio: The proportional relationship between solid wall areas and window/door openings. Window sash: The overall frame that contains the glazing and possibly muntins of a window. THIS PAGE INTENTIONALLY BLANK 137APPENDIX B - PROFESSORVILLE PROPERTY DATA Appendix B: Professorville Property Data APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-28-062 271 Addison Avenue 1896 Vernacular Professorville - Category 4 Professorville - Contributing 120-28-061 281 Addison Avenue 1904 Colonial Revival/ Classical Revival Professorville Professorville - Contributing 120-17-085 301 Addison Avenue 1902 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-18-002 310 Addison Avenue 1938 Colonial Revival Professorville Not applicable - Local listing only 120-17-084 319 Addison Avenue 1902 Craftsman Professorville Professorville - Contributing 120-18-003 326 Addison Avenue 1907 Craftsman Professorville Not applicable - Local listing only 120-17-083 327 Addison Avenue 1902 Craftsman/ Colonial Revival Professorville - Category 3 Professorville - Contributing 120-18-004 342-352 Addison Avenue 1904 Craftsman Professorville Not applicable - Local listing only Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 138 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-18-005 354-362 Addison Avenue 1896 Queen Anne Professorville Not applicable - Local listing only 120-18-006 370 Addison Avenue 1904 Prairie School/ Colonial Revival Professorville Not applicable - Local listing only 120-18-007 376 Addison Avenue 1904 Craftsman Professorville Not applicable - Local listing only 120-28-059 940 Bryant Street 1900 Colonial Revival Professorville Professorville - Contributing 120-17-087 943 Bryant Street 1904 Colonial Revival Professorville Professorville - Contributing 120-28-060 944 Bryant Street 1902 Craftsman Professorville Professorville - Contributing 120-17-086 951 Bryant Street 1898 Colonial Revival/ Shingle Professorville Professorville - Contributing 120-28-061 960 Bryant Street 1904 Colonial Revival Professorville Professorville - Non-contributing 120-18-001 1001-1005 Bryant Street 1892 Colonial Revival/ Shingle Professorville - Category 2 Professorville - Contributing Frank Angell House 120-29-002 1008 Bryant Street 2001 Neotraditional Professorville Professorville - Non- contributing 120-29-003 1010 Bryant Street 1903 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-18-040 1017-1023 Bryant Street 1893 Colonial Revival/ Shingle Professorville - Category 3 Professorville - Contributing Augustus Murray House Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 139APPENDIX B - PROFESSORVILLE PROPERTY DATA APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-29-004 1020 Bryant Street 1902 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-18-039 1027 Bryant Street 1898 Colonial Revival/ Queen Anne/ Craftsman Professorville Professorville - Contributing 120-29-005 1028 Bryant Street 1902 Colonial Revival Professorville Professorville - Contributing 120-18-038 1033-1037 Bryant Street 1901 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-29-006 1036 Bryant Street 1920 Colonial Revival Professorville Professorville - Contributing 120-29-007 1044 Bryant Street 1902 Craftsman Professorville - Category 3 Professorville - Contributing Varian House 120-29-008 1052 Bryant Street 1902 Craftsman/ Colonial Revival Professorville - Category 4 Professorville - Contributing 120-18-037 1061 Bryant Street 1899 Colonial Revival Professorville - Category 2 Professorville - Contributing Sun-Bonnet House by Bernard Maybeck 120-29-009 1100 Bryant Street 1903 Craftsman Professorville - Category 4 Professorville - Contributing Kimball Residence 120-29-010 1106 Bryant Street 1997 Neotraditional Professorville*Professorville - Contributing* *Contributing property replaced by new construction 120-29-011 1116 Bryant Street 1904 Colonial Revival Professorville Professorville - Contributing Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 140 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-18-062 1121 Bryant Street 1892 Colonial Revival/ Classical Revival Professorville - Category 3 Professorville - Contributing Castilleja Hall; Nardyne Apartments 120-29-012 1130 Bryant Street 1902 Craftsman Chalet Professorville - Category 3 Professorville - Contributing 120-18-061 1135 Bryant Street 1910 Craftsman Professorville Professorville - Contributing 120-29-013 1140 Bryant Street 1903 Colonial Revival Professorville Professorville - Contributing 120-18-060 1143 Bryant Street 1912 Prairie School Professorville Professorville - Contributing 120-29-014 1148 Bryant Street 1902 Craftsman/ Colonial Revival Professorville Professorville - Contributing 120-29-015 1160 Bryant Street 1910 Colonial Revival Professorville - Category 4 Professorville - Contributing 120-20-009 1200 Bryant Street 1908 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-20-008 1201 Bryant Street 1966 Ranch Professorville Not applicable - Local listing only 120-20-007 1225 Bryant Street 1966 Ranch Professorville Not applicable - Local listing only 120-20-010 1250 Bryant Street 1908 Colonial Revival Professorville Not applicable - Local listing only Historic address 281 Embarcadero Road 120-06-021 1055 Cowper Street 1910 Mission Revival Professorville - Category 2 Not applicable - Local listing only Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 141APPENDIX B - PROFESSORVILLE PROPERTY DATA APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-06-078 1107 Cowper Street 1997 Neotraditional Professorville Not applicable - Local listing only 120-18-048 1140 Cowper Street 1955 Modern Professorville - Category 2 Professorville - Non-contributing 120-07-044 1211 Cowper Street 1963 Ranch (multi-story) Professorville Not applicable - Local listing only 120-07-043 1225 Cowper Street 1948 Ranch Professorville Not applicable - Local listing only 120-19-005 1236 Cowper Street 1920 Craftsman Professorville Not applicable - Local listing only 120-19-006 1238 Cowper Street 1904 Craftsman Professorville Not applicable - Local listing only 120-07-101 1247 Cowper Street 1928 Spanish Colonial Revival Professorville - Category 1 Individual property listing Norris House 120-19-008 1300 Cowper Street 1958 Contemporary Professorville Not applicable - Local listing only 120-19-009 1312 Cowper Street 1910 Colonial Revival/ Craftsman Professorville Not applicable - Local listing only 120-07-094 1325 Cowper Street 1915 Craftsman Professorville Not applicable - Local listing only 120-19-010 1330 Cowper Street 1904 Craftsman Professorville Not applicable - Local listing only Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 142 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-07-093 1335 Cowper Street 1904 Craftsman Professorville Not applicable - Local listing only 120-19-011 1336 Cowper Street 1926 Spanish Colonial Revival Professorville - Category 1 Individual property listing Pettigrew House 120-07-092 1345 Cowper Street 1908 Craftsman Professorville - Category 3 Not applicable - Local listing only 120-07-091 1357 Cowper Street 1907 Craftsman Professorville - Category 4 Not applicable - Local listing only 120-19-012 1390 Cowper Street 1937 Tudor Revival Professorville Not applicable - Local listing only 120-19-013 1400 Cowper Street 1924 Colonial Revival Professorville Not applicable - Local listing only 120-08-001 1401 Cowper Street 1901 Craftsman Professorville - Category 4 Not applicable - Local listing only 120-08-058 1415 Cowper Street 1927 French Eclectic Professorville - Category 4 Not applicable - Local listing only 120-08-057 1425 Cowper Street 1903 Tudor Revival Professorville - Category 4 Not applicable - Local listing only 120-20-013 223 Embarcadero Road 1923 Craftsman Professorville Professorville - Contributing Also addressed as 222 Kingsley Avenue 120-20-012 235 Embarcadero Road 1906 Craftsman Professorville - Category 2 Professorville - Contributing Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 143APPENDIX B - PROFESSORVILLE PROPERTY DATA APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-20-011 251 Embarcadero Road 1906 Colonial Revival Professorville Professorville - Contributing 120-20-025 359 Embarcadero Road 1900 Prairie School Professorville - Category 4 Not applicable - Local listing only 120-19-016 425 Embarcadero Road 1907 Craftsman Professorville - Category 2 Not applicable - Local listing only 120-19-015 427 Embarcadero Road 1907 Craftsman Professorville - Category 2 Not applicable - Local listing only 120-19-014 473 Embarcadero Road 1988 Neotraditional Professorville Not applicable - Local listing only 120-29-044 1101-1103 Emerson Street 1906 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-30-009 1102 Emerson Street 1925 Spanish Colonial Revival Professorville Professorville - Contributing 120-29-043 1111 Emerson Street 1903 Colonial Revival Professorville - Category 4 Professorville - Contributing 120-30-010 1118 Emerson Street 1914 Colonial Revival/ Craftsman/ Prairie School Professorville - Category 3 Professorville - Contributing 120-29-042 1121 Emerson Street 1908 Colonial Revival Professorville Professorville - Contributing 120-30-011 1128 Emerson Street 1907 Colonial Revival/ English Cottage Professorville - Category 4 Professorville - Contributing Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 144 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-29-041 1129 Emerson Street 1908 Craftsman Professorville - Category 4 Professorville - Contributing 120-29-055 1133 Emerson Street 1976 Contemporary Shingle Professorville Professorville - Non-contributing 120-30-012 1134 Emerson Street 1903 Prairie School/ Craftsman Professorville - Category 4 Professorville - Contributing Elmore Residence 120-29-054 1135 Emerson Street 1975 Contemporary Shingle Professorville Professorville - Non-contributing 120-30-051 1174 Emerson Street 1980 Neotraditional Professorville Professorville - Non-contributing 120-30-052 1176 Emerson Street 1925 Spanish Colonial Revival Professorville - Category 3 Professorville - Contributing 120-20-014 200 Kingsley Avenue 1906 Craftsman Professorville Professorville - Contributing 120-29-056 221 Kingsley Avenue 1901 Colonial Revival/ Craftsman Professorville - Category 2 Professorville - Contributing Fowler Residence 120-20-013 222 Kingsley Avenue 1906 Colonial Revival Professorville Professorville - Contributing Also addressed as 223 Embarcadero Road 120-20-015 252 Kingsley Avenue 1908 Craftsman Professorville Professorville - Contributing 120-29-016 257 Kingsley Avenue 1904 Craftsman Professorville Professorville - Contributing 120-20-016 262 Kingsley Avenue 1908 Craftsman Professorville Professorville - Contributing Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 145APPENDIX B - PROFESSORVILLE PROPERTY DATA APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-18-059 303 Kingsley Avenue 1963 Ranch Professorville Professorville - Non-contributing 120-18-058 319 Kingsley Avenue 1908 Colonial Revival/ Craftsman Professorville Not applicable - Local listing only 120-69-006* 325-365 Kingsley Avenue 1940 Bungalows Professorville Not applicable - Local listing only 120-20-006 334 Kingsley Avenue 1904 Classical Revival Professorville - Category 2 Professorville - Contributing 120-20-005 356 Kingsley Avenue 1893 Vernacular Professorville - Category 1 Professorville - Contributing 120-20-004 360 Kingsley Avenue 1900 Colonial Revival Professorville Professorville - Contributing 120-20-003 364 Kingsley Avenue 2008 Neotraditional Professorville Contributing (does Not apply to new construction) 120-20-002 374 Kingsley Avenue 1905 Craftsman Category 3 Professorville - Contributing 120-18-050 405 Kingsley Avenue 1929 Spanish Colonial Revival Professorville Professorville - Contributing 120-18-064 425 Kingsley Avenue 1975 Contemporary Professorville Professorville - Non- contributing 120-19-002 430 Kingsley Avenue 1900 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-18-063 433 Kingsley Avenue 1899 Colonial Revival Professorville - Category 2 Professorville - Contributing Hutchinson House Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 146 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-19-003 450 Kingsley Avenue 1895 Colonial Revival/ Shingle Professorville - Category 2 Professorville - Contributing Sanford House 120-18-048 457-459 Kingsley Avenue 1914 Tudor Revival Professorville - Category 2 Professorville - Contributing 120-19-004 490 Kingsley Avenue 1923 Spanish Colonial Revival Professorville - Category 3 Professorville - Contributing Blake Wilbur Residence 120-07-001 500 Kingsley Avenue 2000 Neotraditional Professorville Not applicable - Local listing only Also addressed as 1201 Cowper Street 120-06-075 501-505 Kingsley Avenue 1897 Colonial Revival Professorville - Category 2 Professorville - Contributing Fleugel Residence 120-29-045 225 Lincoln Avenue 2013 Neotraditional Professorville - Category 3*Professorville - Contributing**Contributing property replaced by new construction 120-29-034 251 Lincoln Avenue 1904 Colonial Revival/ Craftsman Professorville - Category 4 Professorville - Contributing Charles House 120-18-041 308 Lincoln Avenue 1903 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-18-042 318 Lincoln Avenue 1904 Colonial Revival Professorville - Category 4 Professorville - Contributing 120-18-036 329 Lincoln Avenue 1900 Colonial Revival (altered) Professorville Professorville - Non- contributing 120-18-035 331 Lincoln Avenue 1900 Colonial Revival Professorville Professorville - Contributing Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 147APPENDIX B - PROFESSORVILLE PROPERTY DATA APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-18-043 332-334 Lincoln Avenue 1896 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-18-034 333-345 Lincoln Avenue 1890 Colonial Revival Professorville - Category 2 Professorville - Contributing 120-18-044 356 Lincoln Avenue 1896 Craftsman Professorville - Category 1 Professorville - Contributing 120-18-032 365 Lincoln Avenue 1896 Craftsman/ Shingle Professorville - Category 2 Professorville - Contributing Hoskins-Thomas Residence 120-18-070 381 Lincoln Avenue 1890 Craftsman Professorville - Category 4 Professorville - Contributing 120-18-025 405 Lincoln Avenue 2012 Neoeclectic Professorville Professorville - Non-contributing 120-18-024 409 Lincoln Avenue 1922 Spanish Colonial Revival Professorville Not applicable - Local listing only 120-18-023 427 Lincoln Avenue 1926 Spanish Colonial Revival Professorville Not applicable - Local listing only 120-18-047 436 Lincoln Avenue 1920 Colonial Revival Professorville Not applicable - Local listing only 120-18-022 439 Lincoln Avenue 1929 French Eclectic Professorville Not applicable - Local listing only 120-18-021 451 Lincoln Avenue 1924 Spanish Colonial Revival Professorville Not applicable - Local listing only Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 148 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-18-020 467 Lincoln Avenue 1926 Tudor Revival Professorville - Category 4 Not applicable - Local listing only 120-06-080 510 Lincoln Avenue 1930 French Eclectic Professorville - Category 3 Not applicable - Local listing only 120-20-017 305 Melville Avenue 1901 Queen Anne Professorville - Category 3 Not applicable - Local listing only Also addressed as 1251 Bryant Street 120-20-018 311-315 Melville Avenue 1903 Queen Anne Professorville - Category 4 Not applicable - Local listing only 120-20-019 321 Melville Avenue 1902 Queen Anne/ Craftsman Professorville Not applicable - Local listing only 120-20-029 325 Melville Avenue 1961 Ranch Professorville Not applicable - Local listing only 120-20-027 330 Melville Avenue 1900 Vernacular Professorville Not applicable - Local listing only Historic address 345 Embarcadero Road 120-20-028 335 Melville Avenue 1958 Ranch Professorville Not applicable - Local listing only 120-20-026 340 Melville Avenue 1987 Neotraditional Professorville Not applicable - Local listing only 120-20-021 353 Melville Avenue 1900 Colonial Revival/ Vernacular Professorville - Category 3 Not applicable - Local listing only 120-20-022 363 Melville Avenue 1904 Queen Anne Professorville Not applicable - Local listing only Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 149APPENDIX B - PROFESSORVILLE PROPERTY DATA APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-19-028 409 Melville Avenue 1901 Queen Anne Professorville Not applicable - Local listing only 120-19-027 433 Melville Avenue 1894 Queen Anne/ Shingle Professorville - Category 2 Not applicable - Local listing only 120-19-021 440 Melville Avenue 1926 Colonial Revival Professorville Not applicable - Local listing only 120-19-022 450-458 Melville Avenue 1983 Neotraditional Professorville Not applicable - Local listing only 120-19-035 465 Melville Avenue 1898 Craftsman Professorville Not applicable - Local listing only 120-19-024 467-469 Melville Avenue 1910 Craftsman (altered) Professorville Not applicable - Local listing only 120-19-007 475 Melville Avenue 1911 Craftsman Professorville - Category 2 Not applicable - Local listing only Huff House 120-19-023 480 Melville Avenue 1958 Contemporary Professorville Not applicable - Local listing only 120-07-045 500 Melville Avenue 1906 Craftsman Professorville - Category 3 Not applicable - Local listing only Stark Residence 120-07-102 541 Melville Avenue 1951 Modern Professorville Not applicable - Local listing only 120-29-028 1000 Ramona Street 1905 Craftsman Professorville Professorville - Contributing Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 150 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-29-001 1001 Ramona Street 1907 Craftsman Professorville - Category 3 Professorville - Contributing 120-29-028 1004-1006 Ramona Street 1905 Vernacular Professorville Professorville - Contributing 120-29-027 1013 Ramona Street 1908 Vernacular (altered) Professorville Professorville - Non-contributing 120-29-029 1020 Ramona Street 1907 Craftsman Professorville Professorville - Contributing 120-29-026 1021 Ramona Street 1907 Colonial Revival Professorville - Category 4 Professorville - Contributing 120-29-030 1024 Ramona Street 1914 Craftsman Professorville - Category 4 Professorville - Contributing 120-29-025 1029 Ramona Street 1907 Colonial Revival Professorville Professorville - Contributing 120-29-031 1030-1032 Ramona Street 2012 Neotraditional Professorville Professorville - Non-contributing 120-29-024 1037 Ramona Street 1904 Colonial Revival Professorville Professorville - Contributing 120-29-032 1040 Ramona Street 1914 Craftsman Professorville Professorville - Contributing 120-29-023 1047 Ramona Street 1907 Classical Revival Professorville - Category 4 Professorville - Contributing 120-29-033 1048 Ramona Street 1900 Colonial Revival Professorville - Category 4 Professorville - Contributing Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 151APPENDIX B - PROFESSORVILLE PROPERTY DATA APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-29-022 1057 Ramona Street 1906 Craftsman/ Colonial Revival Professorville - Category 4 Professorville - Contributing 120-29-035 1102 Ramona Street 1908 Colonial Revival Professorville Professorville - Contributing 120-29-021 1103 Ramona Street 1904 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-29-036 1106 Ramona Street 1905 Craftsman Professorville Professorville - Contributing 120-29-037 1112 Ramona Street 1905 Craftsman Professorville Professorville - Contributing 120-29-020 1115 Ramona Street 1908 Colonial Revival Professorville - Category 2 Professorville - Contributing 120-29-038 1116 Ramona Street 1902 Craftsman/ Colonial Revival Professorville Professorville - Contributing 120-29-019 1125 Ramona Street 1902 Colonial Revival Professorville Professorville - Contributing 120-29-057 1132-1156 Ramona Street 1910 Craftsman Professorville Professorville - Contributing 120-29-018 1139 Ramona Street 1904 Colonial Revival Professorville - Category 2 Professorville - Contributing 120-29-017 1147 Ramona Street 1906 Craftsman Professorville Professorville - Contributing 120-29-016 1155 Ramona Street 1904 Vernacular/ Craftsman Professorville Professorville - Contributing 120-18-008 1010 Waverley Street 1922 Craftsman Professorville Not applicable - Local listing only Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 152 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-18-030 1020 Waverley Street 1902 Craftsman Professorville Not applicable - Local listing only 120-18-031 1022 Waverley Street 1905 Colonial Revival Professorville Not applicable - Local listing only 120-18-071 1050 Waverley Street 1926 Colonial Revival Professorville - Category 4 Professorville - Non-contributing 120-18-046 1101 Waverley Street 1922 Colonial Revival/ Period Revival Professorville Professorville - Contributing 120-18-045 1110 Waverley Street 1993 Neotraditional Professorville*Professorville - Contributing**Contributing property replaced by new construction 120-18-054 1130 Waverley Street 1900 Vernacular/ Rustic Bungalow Professorville Professorville - Non-contributing 120-18-053 1135 Waverley Street 1926 Colonial Revival Professorville - Category 4 Professorville - Contributing 120-18-055 1136 Waverley Street 1893 Colonial Revival Professorville - Category 3 Professorville - Contributing 120-18-056 1146 Waverley Street 1893 Queen Anne Professorville - Category 4 Professorville - Contributing 120-18-052 1155 Waverley Street 1927 Spanish Colonial Revival Professorville - Category 4 Professorville - Contributing Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 153APPENDIX B - PROFESSORVILLE PROPERTY DATA APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-18-051 1177 Waverley Street 1928 Spanish Colonial Revival Professorville Professorville - Contributing 120-19-033 1207 Waverley Street 1904 Colonial Revival (altered)Professorville Professorville - Contributing Historic address 1221 Waverley Street 120-20-001 1220-1224 Waverley Street 1898 Craftsman Professorville - Category 4 Professorville - Contributing 120-19-034 1221 Waverley Street 1993 Neoeclectic Professorville Professorville - Non-contributing 120-20-023 1240 Waverley Street 1905 Classical Revival Professorville Professorville - Contributing 120-19-029 1245 Waverley Street 1902 Craftsman Professorville Not applicable - Local listing only 120-20-024 1248 Waverley Street 1904 Colonial Revival Professorville Professorville - Contributing 120-19-020 1303 Waverley Street 1912 Mission Revival Professorville - Category 4 Not applicable - Local listing only 120-19-032 1321 Waverley Street 1916 Colonial Revival Professorville Not applicable - Local listing only 120-19-030 1327 Waverley Street 1988 Neotraditional Professorville Not applicable - Local listing only 120-19-031 1329 Waverley Street 1988 Neotraditional Professorville Not applicable - Local listing only Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 154 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES APN ADDRESS YEAR BUILT STYLE / INFLUENCE CITY INVENTORY LISTING NATIONAL REGISTER LISTING NOTES 120-19-017 1331 Waverley Street 1950 Ranch Professorville Not applicable - Local listing only 120-20-020 334 Whitman Court 1904 Craftsman Professorville Not applicable - Local listing only 120-20-002 373-375 Whitman Court 1905 Craftsman Category 4 Professorville - Non-contributing Note: In addition to being located in the local historic district, properties may be listed in the City’s Historic Inventory with one of the following Historic Category designations: Category 1 (“Exceptional building”); Category 2 (“Major building”); Category 3 or 4 (“Contributing building”). Not all contributing buildings in the district are individually designated with a Historic Category in the City’s Historic Inventory. For more information about Historic Categories, see the Palo Alto Municipal Code Chapter 16.49. 155APPENDIX B - PROFESSORVILLE PROPERTY DATA Wa v e r l e y S t r e e t Co w p e r S t r e e t Linc o l n A v e n u e Bry a n t S t r e e t King s l e y A v e n u e Melv i l l e A v e n u e We bst e r S t r e e t Em e r s o n S t r e e t Ra m o n a S t r e e t Cha n n i n g A v e n u e Add i s o n A v e n u e Chu r c h i l l A v e n u e Tas s o S t r e e t La n e B E a s t Sc o t t S t r e e t 1140 4903 6 5 433 1247 11 0 7 433 450 35 6 45 0 46 5 359 1336 34 5 221 43 9 425 33 4 33 4 51 0 35 3 40 9 427 430 44 0 34 2 467 501 1201 36 3 54 1 111 0 1250252 12 0 0 35 8 473 10 6 1 110 1 105 5 500 301 40 9 43 6 1327 33 1 42 5 32 6 318 132 1 303 235 40 5 122 5 30 8 120 7 500 140 0 112 1 251 1118 11 4 6 251 134 5 101 7 222 1329 405 122 1 34 01225 1176 1052 115 5 26 2 111 5 1125 1136 334 47 5 121 1 257 113 5 1335 1325 116 0 28 1 26 9 124 0 12 4 8 1057 1047 113 0 1000 1020 32 7 48 0 117 7 115 6 1121 1330 141 5 11 3 5 112 9 1091 113 3 31 9 1357 117 4 130 0 114 7 124 5 1116 427 451 330315 356 374364 321 360 200 1027 1220 1251 329 1425 335325 1135 13031143 1020 1033 1022943951 1005 381 376370 319 469 1312 1331 1130 1401 1112 1102 1101 1102 1134 1106 1128 11161111 944940 1029 1139 1100 1037 1040 1008 1106 1103 1028 1148 1021 1030 1010 1036 1048 10131001 10241020 1010 1236310 1390 1140 1044 1238 1050 353 335 333 363 355345 325 343 365 327 0 90 180 270 360 Feet° The adjacent map shows the addresses associated with properties located within the boundaries of the Professorville Historic District. 156 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES 0 20 40 60 80 100 1980-Present1940-19791930-19391920-19291910-19191900-19091890-1899 The graph on this page displays the number of buildings in Professorville, organized by period of construction. Green bars represent those periods considered to be the early periods of development, while the gray bars represent later periods of development. 157APPENDIX B - PROFESSORVILLE PROPERTY DATA Colonial Revival; Classical Revival; Craftsman; Queen Anne; Vernacular (1890-1938) Spanish Colonial Revival; Mission Revival; Prairie; French Eclectic; Tudor Revival (1893-1937) Bungalows; Ranch; Contemporary; Modern (1940-1976) Neotraditional; Neoeclectic (1980-2013) Colonial Revival; Classical Revival; Craftsman; Queen Anne; Vernacular (1890-1938) Spanish Colonial Revival; Mission Revival; Prairie; French Eclectic; Tudor Revival (1893-1937) Bungalows; Ranch; Contemporary; Modern (1940-1976) Neotraditional; Neoeclectic (1980-2013) This graph displays the distribution of architectural styles and influences in Professorville, organized according to broad groupings of related styles. THIS PAGE INTENTIONALLY BLANK 159 Accessory buildings (new) Design, form, and scale 7.3.3 Placement 7.3.2 Additions (historic) 4.5.2 Additions (new) to early residences Differentiation from original residences 4.2.4 In place of existing non-historic additions 4.1.3 Lot placement 4.1.1 Massing 4.2.1 Materials (cladding, roofing) 4.2.2 Roof form 4.2.1 Size and scale 4.1.2 Windows 4.2.3 Additions (new) to later residences Lot placement 5.2.1 Materials (cladding, roofing) 5.2.2 Roof form 5.2.2 Size and scale 5.2.1 Windows 5.2.2 Air conditioning units and generators 7.1.5 Brick masonry Repairing/replacing on early residences 3.3.1 Cladding materials Repairing/replacing on early residences 3.1.1 Repairing/replacing on later residences 5.1.1 Decorative features New features on early residences 3.3.3 Reconstructing where missing 3.3.2 Repairing/replacing on early residences 3.3.1 Demolition Historic buildings 6.1.1 Historic additions and features 4.5.1 Later residences 6.1.2 Disability access ramps 7.2.3 Doors Repairing/replacing on early residences 3.2.2 Repairing/replacing on later residences 5.1.1 Location on early residences 3.2.2 Index 160 PROFESSORVILLE HISTORIC DISTRICT DESIGN GUIDELINES Dormers (new) on early residences Location 4.3.1 Materials 4.3.2 Size and scale 4.3.1 Driveways 7.2.1 Garages (historic) 7.3.1 Garages (new) Attached to historic residences 4.1.1 Attached to later residences 5.2.1 Lot placement for new detached 7.3.2 Fences 7.1.2 Hedges 7.1.2 Lifting residences Early residences 4.4.1 Later residences 5.3.1 Modern-style homes, alterations to 5.1.2 Moving and turning residences Early residences 4.4.2 Later residences 5.3.2 New residential construction Architectural style 6.4.1 Differentiation from early residences 6.4.2 Doors and porches 6.5.1 Lot placement and orientation 6.2.1 Massing 6.3.2 Materials 6.4.1 Roof form 6.3.3 Size/scale 6.3.1 Windows 6.5.2 Painting Color schemes for historic homes 3.3.4 Color schemes for new residences 6.4.3 Color schemes for additions to later residences 5.2.2 Historic cladding 3.1.1 Patios 7.2.4 Planting beds 7.1.4 Porches Historic 3.3.1 New, on later residences 5.2.2 Post-consumer products 3.4.2 Roof materials Repairing/replacing on early residences 3.1.2 Repairing/replacing on later residences 5.1.1 Sandblasting 3.1.1 Sidewalks (public) 7.4.1 Skylights 3.4.1 Solar panels 3.4.1 Stucco 3.1.1 161 Synthetic siding On early residences 3.1.1 On later residences 5.1.1 Trees In planting strips 7.4.1 In private yards 7.1.3 Walkways 7.2.2 Windows Repairing/replacing on early residences 3.2.1 Replacing on later residences 5.1.1 Window wells 7.1.5 Wood shingles Repairing/replacing on early residences 3.1.1 Roofing on early residences 3.1.2 Yards Grade 7.1.1 Ground cover and plantings 7.1.1 Historic landscaping schemes 7.1.6 THIS PAGE INTENTIONALLY BLANK 03/14/2011 . Special Meeting March 14, 2011 The City Council of the City of Palo Alto met on this date in the Council Conference Room at 6:03 p.m. Present: Burt, Espinosa, Holman, Klein, Price, Scharff, Schmid, Shepherd, Yeh Absent: ACTION 1. Acceptance of Long Range Financial Forecast. The City Council discussed the updated Long Range Financial Forecast as amended by the Finance Committee. The forecast reflected deficits for the next 10 years starting with Fiscal Year 2012 which has a projected deficit of $2.3 million. The discussion focused on the drivers of the deficit. These being the downturn in key revenues and increasing employee benefit costs along with their impacts to future budgets specifically pension and health care premiums. Other topics of discussion were the over $500 million infrastructure needs and backlog and the need to have a plan in place to address the need. The various assumptions on rate increases for revenues and costs were discussed as well. MOTION: Council Member Schmid moved, seconded by Council Member Burt to accept the Long Range Financial Forecast as the base model to include; 1) Health Care Costs Increase 10 % per year; 2) Eliminate assumed Transient Occupancy Tax (TOT) from Ming’s Hotel; 3) Assume California Public Employee Retirement System (CalPERS) discount rate decreases to 7.5 %; and 4) Assume CalPERS rates increase 3% per year from 2015-2021. Council Member Schmid said the four additional items regarding the CalPERS and health benefits were derived from the Service Efforts and Accomplishments (SEA) Report as having structural issues in benefits. He 2 03/14/2011 said total monies paid from 2003 to 2013 grew one percent per year in salaries and ten percent per year in benefits. He said the structural issues between cost and benefits should be dealt with prior to discussions on fees, revenues and cutting services. They had uncertainties with the City’s relationship to the California Public Employee Retirement System (CalPers) and should be considered in the 2012 plans. Council Member Burt said he concurred with most of Council Member Schmid’s comments. He said structural changes in benefits would not impact the near-term and only minimally impact the medium-term. The changes were for medium and long-term impacts, unless fundamental changes were made in the law. Benefits for retired or vested employees were not affected. He said there would be on-going issues even with the structural changes made in the past two years. Mayor Espinosa said the report was realistic but was on the conservative side. He asked how the issues were being shared with City employees and the Unions to promote understanding of the challenges and decisions that needed to be made prior to negotiations. City Manager James Keene said all issues were being shared with the labor groups and employees. The trend information, implications, and long-term choices would be revisited with employees, labor groups, and the community in April and May 2011. He said the 2012 deficit had been reduced but the City would be back in the same situation beyond 2012. It was important for people to realize that although the current situation was not as difficult as recent years, the trend would change and difficult times were not over. He said information would continue to be shared through conversation, outreach, and website postings. Mayor Espinosa asked what the structure was for reviewing cuts not recommended by department head’s. He asked about reviewing tradeoffs where certain departments could no longer take cuts versus areas where necessary cuts could be made to balance the budget. Director of Administrative Services, Lalo Perez said prior to moving forward in determining cuts and tradeoffs, a fee study would be done on the current fiscal year budget, and restructuring the Administrative Services Division (ASD), with more emphasis on the financial aspects. A strategic plan would be formulated for the entire organization and Staff would bring back to the Council a proposal resulting from the plan. 3 03/14/2011 Mayor Espinosa asked Mr. Perez to explain Staff’s reaction to the 10 percent infrastructure backlog. Mr. Perez said he was working with the Public Works Department and the Infrastructure Blue Ribbon Commission (IBRC) to update the numbers and define the backlog in operational and capital maintenance. The dollar figure was driven from the Kitchell Report which indicated that $160 million should be spent. The first 5-year budget was $60 million. He said a review would be made in getting closer to the $150 million mark. Council Member Holman asked why changes No. 5 and 6 were not incorporated into the Base Model scenario. Council Member Schmid said he did not include No. 5 which was the $10 million per year because of IBRC’s work and being sensitive to the fact that it was treated as a policy decision separate from the operating cost. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to include all units with 3-year salary freeze (one- year deferral of PD increase). Council Member Scharff said the $10 million for backlog should be a placeholder and was necessary to help the IBRC know what was needed to fund the infrastructure. AMENDMENT: Council Member Scharff moved, seconded by Council Member XXXX to include in the FY 2012-2014 a placeholder of $10 million for the infrastructure backlog. AMENDMENT FAILED DUE TO LACK OF SECOND Council Member Burt did not accept the Amendment because the Finance Committee had came forward with a step increase. He said there would be a $10 million step increase in a year whether the increase was in FY2012 or FY2013. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to direct the Finance Committee to return with a strategic plan to build in maintenance of the infrastructure backlog at its current level through ongoing revenues. 4 03/14/2011 Mr. Keene asked if the Motion would compromise the totality of the charge that was given to the Infrastructure Blue Ribbon Committee (IBRC). Council Member Burt said it would be outside the charge because the IBRC was about catching up on the backlog. The Motion was about not falling further behind on the backlog. Vice Mayor Yeh said he supported the original Motion. He raised concerns because his understanding was that the $10 million was projected in a previous analysis. He saw the different financing options being presented to the IBRC regarding the $10 million and did not know if that was a service for a Bond issuance and could go against ongoing revenues. Council Member Burt said the Amendment was not for an exact dollar amount. It was for the Finance Committee to come back with a plan for ongoing revenues and to not have an increase in backlog. It would enable Staff to fold the IBRC’s work into the plan that comes back to the full Council. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to change “ongoing” in the incorporation to “necessary”. Council Member Scharff said he would work with the IBRC in reviewing the issues and to provide quarterly updates to the Finance Committee. Council Member Klein arrived at 7:20 p.m. MOTION PASSED: 8-0 Klein not participating 2. Infrastructure Blue Ribbon Commission. Members of the Infrastructure Blue Ribbon Commission (IBRC) briefed the Council on the progress on the Commission’s work. The Commission was formed to develop recommendations on eliminating the backlog of Capital Improvement Projects (CIPs) for City facilities, parks and streets. It had been meeting since November 2010 with a plan to bring its final recommendations to the Council in December 2011. The Commission had formed three Committees: Above Ground, Surface, and Finance. The Above Ground Committee will make recommendations for City buildings and the Surface Committee would do the same for streets and parks. The Finance Committee will explore methods of funding the needed improvements and 5 03/14/2011 make recommendations on obtaining the funds to take care of deferred and future maintenance. A number of Council Members asked the Commission to explore new City facilities which may be needed and to plan for the next 25 years. At 8:42 p.m., the City Council continued the meeting in the Council Chambers. 3. Presentation of Proclamation for the Student Exchange Group of Tsuchiura and Introduction of Tim Wong who will be representing Palo Alto in a marathon in Tsuchiura. Mayor Espinosa acknowledged the devastation in Tsuchiura, Japan and said thoughts and prayers go out to all caught in the tragedy. He said the Proclamation was in recognition of the anticipated arrival and presence of the exchange students and the long-term partnership between Palo Alto and Sister City Tsuchiura. The City was pursuing ways to help the devastated city. Vice Mayor Yeh said the intent was to read the Proclamation in the presence of the exchange students and would proceed to read the Proclamation in anticipation of their future arrival. The trip for Palo Alto students to go to Tsuchiura was still planned. Vice Mayor Yeh read the Proclamation into the record. Keiko Nakajima said she was the Vice President of the Neighbors Abroad Program and in charge of all activities between the City and Tsuchiura, Japan. She spoke of the 9.0 earthquake that devastated Japan during the past week. She and her students expected to host 16 Japanese exchange students and 3 chaperons that were supposed to arrive on March 12, 2011. She said she had gotten word that 117 homes had been damaged in Tsuchiura City, one person was critically injured, 2,950 were evacuated and 224 people were in shelters. Gas and electricity that was disrupted for a few days was restored, but the water supply was still affected in certain areas. Catherine Carter said her son, John Carter was an 8th grade student at Jordan Middle School and learned about the Neighbors Abroad Program. She expressed her concerns regarding the exchange students’ situation and anticipated their arrival in the near future. She said an earthquake relief fund was established through the efforts of the Palo Alto students, parents, co-presidents Joe and Barbara Evans and the Neighbors Abroad Program. 6 03/14/2011 John Carter spoke regarding Kenjiro Kodaira, an exchange student who informed him via electronic mail (e-mail) that his family was safe and living in the family’s car, and looked forward to making the trip at a later date. He said the community was raising money to help their friends in Japan and appreciated the City’s support. Council Member Shepherd expressed her appreciation for the Neighbors Abroad Program’s quick response in setting up a relief fund. She confirmed contributions should be made payable to Neighbors Abroad and mailed to P.O. Box 52004, Palo Alto, CA. Ms. Nakajima spoke regarding Palo Alto resident Tim Wong representing Palo Alto in the International Marathon in Tsuchiura, Japan scheduled for April 2011. Tim Wong expressed his appreciation for the opportunity to represent Palo Alto in the marathon and looked forward to participating in the future event. CITY MANAGER COMMENTS City Manager, James Keene spoke regarding 1) a Bicycle/pedestrian Transportation Plan Community Workshop to be held at 655 Arastradero Road, on Thursday, March 24th, at 6:30 p.m., 2) the California Climate Action Registry annually reviewed the performance of California cities on green house gas emissions. Palo Alto achieved the standards of the registry and a climate action leader for the 5th consecutive year, 3) the Commonwealth Club had arranged various speakers to come to the area to speak that included Julius Genachowski, Chairman of the Federal Communications Commission (FCC), scheduled for April 14th @ 6:15 p.m., at the Computer History Museum, 1401 North Shoreline Boulevard, Mountain View. Wendy Kopp, CEO of Teach for America, scheduled for April 21st @ 8 p.m., at the Schultz Cultural Hall, Oshman Family Jewish Community Center (JCC) at Fabian Way, Palo Alto. ORAL COMMUNICATIONS Mark Petersen-Perez spoke regarding a public records request that he had submitted and addressed the issue of sending useless attachments to the City Attorney. 7 03/14/2011 Scott Smithwick spoke regarding California Environmental Quality Act (CEQA) and the issuance of demolition permits for historic structures. He urged Council to clearly state in the Ordinance that all demolition permits for historic structures was a discretionary action and that CEQA applied. Elaine Meyer addressed the issue regarding the installation of AT&T cell towers. She said in the interest of open government, the City should explain if it was in financial negotiations with AT&T, what stages the negotiation was in, and payments the City would be receiving. Anneica Dempsey spoke regarding the intrusive parking in the Professorville neighborhood and how it had reduced the quality of life. She urged the Council to provide good customer service in addressing the issue. Betsy Gamburd spoke regarding Professorville’s parking problem due to the lack of parking for downtown employees. Lisa Sullivan spoke regarding Professorville’s parking problem and could no longer park in front of their home due to the lack of downtown parking for employees. Linda Scott said Professorville was a National Register Historic District and would lose its character if the parking problem was not resolved. She urged the Council for an immediate solution. Theresa Rowland said her family car had gotten damaged on several occasions due to the parking issues in the Professorville neighborhood. She asked for the Council’s help in resolving the problem. Robert Gamburd said the downtown business parking had caused congestion in the Professorville neighborhood. He said his firm had provided parking for their employees and felt that all business owners should be compelled to do the same and to encourage their employees to not park offsite. Monica Yeung Arima said she was an advisor for the youth’s Organization of Chinese Americans (OCA). The students were involved in a fundraiser and were collecting monies for the American Red Cross to help tsunami victims in Japan. She spoke of the escalating parking issues in Professorville and how she no longer could provide guests parking in front of her home. She asked for the Council’s help in resolving the problem. 8 03/14/2011 Ron Laurie said the parking issue in Professorville had become intolerable with virtually no street parking between 8:30 a.m. to 5:30 p.m. during the weekdays and had the appearance of a Caltrain parking lot. Sandy Peters spoke of Professorville’s parking problem and urged the Council to move the parking issues back to the Downtown Business District where they belonged. Jeff Traum said the Professorville parking issue was destroying the comfort and livability of the neighborhood. He asked for the Council’s help in resolving the problem. Alice Winderhall said her car was damaged numerous times due to Professorville’s parking problems and harassed by those parking in front of her home. Victoria Curtis said the parking problem in front of her Professorville home came about when the City enforced a 2-hour limit parking two-blocks away. She said her family had no on-street parking except on Sundays. She said downtown employees need to park downtown where they belong. Kevin Curry said the Professorville parking problem could be resolved through better use of the existing downtown parking and by applying permanent resident fees and time limits on parking. He said the correction could be revenue positive for the City and through public-private efforts could be completed in months and not years. Carole Weber said Bryant Street in Professorville was designated as a bicycle boulevard and raised concerns of a fatality happening due to the aggressive nature of downtown employees parking and trying to get to work on time. Ken Alsman said he would provide a photo essay to the City Clerk to show what the Professorville neighborhood looked like during a holiday and the following day, and the empty government and general City parking structures. He said the Professorville community wanted to get involved in whatever the City would be doing to help resolved the parking problem. Mayor Espinosa announced it was a violation of state law for the Council to discuss issues raised during Oral Communications. These issues were not agendized. 9 03/14/2011 City Manager, James Keene said he would work with the Professorville community to address the parking issue. APPROVAL OF MINUTES MOTION: Vice Mayor Yeh moved, seconded by Council Member Price to approve the Minutes of February 14, 2011. MOTION PASSED: 9-0 CONSENT CALENDAR 4. The Parks and Recreation Commission and Staff recommend that Council approve the revised Park and Open Space Rules and Regulations. MOTION: Council Member Holman moved, seconded by Vice Mayor Yeh to approve Agenda Item Number 4. MOTION PASSED: 9-0 ACTION ITEMS 5. Recommendations and Direction for Modifying Historic Review of Contributing Structures Proposed for Demolition in the Professorville Historic District. Chief Planning and Transportation Official, Julie Caporgno said the item stemmed from a demolition request for a structure located at 405 Lincoln Avenue. The proposal was reviewed by the Council in late October 2010. The structure was listed as a contributing structure in the Professorville National Register Historic District. The presentation focused on the material outlined in Staff Report ID# 1346. Natalie Louikianoff said she was Vice-chair of the Historic Resources Board and speaking as an individual. She disagreed with the first recommendation for an individual Environmental Impact Report (EIR). She said the National Park Service defined a district as being “a district possessing a significant concentration linkage or continuity of sites, building structures, or objects united historically or aesthetically by plan or physical development. A district derives its importance from being a unified entity even though it is often composed of a wide variety of resources” and said that was the exact description of Professorville. There were 191 structures on the 10 03/14/2011 Professorville’s historic inventory and 115 were considered contributing structures. She felt the recommendations lead towards the potential takedown of each structure in the district leaving less than one-half of the existing district to comprise Professorville. She asked that Staff not continue to look at the structures as individual units and to view Professorville as a whole. She urged the Council and Staff to use the National Trust for Historic Preservation, the California Preservation Foundation, and Historic Resources Board (HRB). She said they were good resources and had the expertise to create ordinances and policies in moving through the process to protect Professorville. Beth Bunnenburg, HRB Member said she was speaking as an individual. She said Staff Report ID#1346 did not provide a clear statement of what the character defining features were for Professorville. She said the Garavaglia firm was provided in the documents for 405 Lincoln Avenue and should be included in the study. She said Study Sessions provided community forum and outreach and should be scheduled early with the HRB when demolition was about to be proposed. She urged the Council to review recommendations from Professorville residents who have lived there for many years and who had spent money to maintain the integrity of their houses. Scott Smithwick said he did not object to Staff’s recommendations but objected to the basic principle and background provided in the Staff Report. He felt Staff did not adequately study or address the items and made reference to the allowance for demolition on contributing structures in the district. He said the Environmental Review (ER) was limited to the 405 Lincoln Avenue and the Juana Briones House. The California Environmental Quality Act (CEQA) applied to all historic resources whether they were contributing, significant, or independent. The integrity of the district would be lost if contributing structures were demolished on a single case-by-case basis. He felt the compatibility criteria based on the Secretary of Standards for Rehabilitation of Existing Structures for one project was an error and the guidelines needed to be reviewed from a district-wide approach. He said the $15,000 consultant’s fee was inadequate and should be increased to $30,000. He encouraged City Staff to use the National Trust for Historic Preservation, the California Preservation Foundation and local resources for references. Martin Bernstein said he was speaking as an individual and not as a member of any Board. He said he supported Staff’s proposal. He said an EIR was not required for renovations, remodel, upgrades, or additions to listed or 11 03/14/2011 contributing properties that met the Secretary of Standards. He was in favor of a no fee HRB Study Session and should be made mandatory on historic districts. He did not have a problem in demolishing a non-contributing structure in Professorville if the replacement met the Secretary of Standards. He said the compatibility criteria referred to massing and scale proportions and not style. The Council had seven HRB members who were fair judges to determine design compatibility which was critical for the process to be successful. Council Member Klein raised concerns of not getting input from anyone who might be in the same situation as the applicant, Mr. Akins, and asked if consideration had been given to any other potential applicant. Mr. Williams said he was not aware of anyone in the same situation. Staff had discussions with Mr. Akins regarding concepts that would have helped him, but the discussions took place late in the process and after Council’s direction. Council Member Klein asked if Mr. Akins had commented on what was being proposed this evening. Mr. Williams said Mr. Akins did not comment on the Staff Report but was supportive of the concepts in moving forward. He felt the strongest point for Mr. Akins was to have an early hearing to determine historic significance and to identify the need for a mitigated negative declaration as opposed to an EIR. Council Member Klein said the conflict at 405 Lincoln Avenue was between an applicant wanting to demolish a structure and people thinking that no structure should be demolished in Professorville. He raised concerns regarding the length of processing time. Ms. Caporgno said the timeframe would have been reduced if an initial study had taken place versus the EIR. Council Member Klein said the applicant had spent a great deal of time with the City’s hired consultant and asked if the problem had been resolved. Mr. Williams said a set of guidelines would have been helpful. He said guidelines had been developed by the consultant but were incomplete. Staff’s thought was to take the guidelines and seek guidance from the HRB regarding the project’s issues prior to the HRB reviewing the project. 12 03/14/2011 Council Member Klein said comments made by Ms. Louikianoff and Ms. Bunnenburg had implications that demolition should not be allowed in Professorville. He suggested to include a mechanism in the guidelines where HRB members who opposed demolition in Professorville not participate in the process. Acting City Attorney, Don Larkin said bias conflicts could be raised by the applicant and would need to be reviewed. The 405 Lincoln Avenue complication was that the CEQA judge said the demolition delay was a discretionary act and CEQA had to be completed before it was brought to the HRB. Demolition was not discretionary and the ability to demolish was not an issue that could be prohibited under the City’s code. Council Member Holman asked who was notified of this item. Ms. Caporgno said Professorville residents were notified and invited to have conversations with Staff and a notification was published in the newspaper. She said the card notification process would have been required if there was a change in an Ordinance or an adoption of guidelines. She said Staff was proposing a set of guidelines and needed the Council’s direction. Council Member Holman said defining a district was a situation where the whole was greater than the sum of the parts. She asked if Staff had comments regarding the public’s concerns that Professorville would erode to the point of losing a district if properties were reviewed on an individual basis. Ms. Caporgno said 405 Lincoln Avenue had been looked at as a property itself and in the context of the district. The historic analysis concluded that the structure was not significant nor was its loss going to impact the district. The EIR was already in process when the report came back indicating a mitigated negative declaration could have been done. She said the report provided to the Council did not indicate that every contributing structure would be considered less than significant and would be a loss to the district. She clarified that Staff would look at a contributing structure to determine whether it was significant or not. A structure would require an EIR if it was determined to be significant to the district. Council Member Holman said she was not speaking on behalf of the HRB or members of the public. She said through her experience, and in talking with Staff and members in the community, there were both non-contributing 13 03/14/2011 buildings and buildings that had lost their integrity in Professorville. The intent was not to say there would never be a demolition in Professorville. She asked Staff if that was a correct statement. Ms. Caporgno said that was correct. She said a building with no historic significance could go through the appropriate process and could be demolished. Council Member Holman asked Staff if Dames & Moore Consulting Group had completed an inventory on Professorville. Ms. Caporgno said that was correct. Council Member Holman asked if the survey identified buildings that were contributors and non-contributors in the district. Ms. Caporgno said yes. Council Member Holman asked if the Staff proposal intended that for CEQA purposes all properties registered in the National California Register would address the concerns of eroding the district on an individual basis. Ms. Caporgno said the Council could change the criteria used for CEQA purposes. She said the current criteria stated that a building would be considered significant if it was registered or eligible for the National California Register or listed in the local inventory. Contributing structures would need to be reviewed to determine significance. Staff could say contributing buildings in Professorville were considered significant if the criteria were changed. Council Member Holman needed clarification on Staff’s statement regarding reviewing the buildings as individual buildings in the National Register District to determine the impact demolition would have on the district. Ms. Caporgno clarified that Staff looked at the buildings on an individual basis to determine its significance within Professorville. Council Member Holman said Staff would be looking at the process with a cohesive approach if the criteria were changed to include contributing structures as thresholds for CEQA purposes. 14 03/14/2011 Mr. Larkin said a contributing structure was not automatically considered as an individual historic resource. Council had the discretion to declare it as an historic resource and which would require the Council’s action to change the definition. Council Member Holman said when the zoning ordinance was updated a followup was not done on the Comprehensive Plan that stated the City recognized neighborhoods as having individual character. She said there was a process that allowed neighborhoods to apply for single-story overlays and that the Council was to provide the process for individual neighborhoods wanting a conservation district. She asked if that had been considered for Professorville. Mr. Williams said that was discussed. Staff was looking at what to come back with in addressing 405 Lincoln Avenue in an expeditious way and still be fair and balanced in the process. Staff did not want to make it appear as though they were trying to overhaul or establish an extensive process for conservation districts. Council Member Holman said there was a single-story overlay process that could be put in place if Professorville wanted to develop criteria for an overlay. Professorville could do it on their own and at their own expense. She asked if it was feasible for Staff to use the single-story overlay ordinance as a model and said it could be done with minimal effort from Staff. Mr. Williams said it would be an extensive process and would engender a lot of discussion and concerns from the neighborhood. He said it could be a worthwhile endeavor, but would not be an easy process. Council Member Shepherd said there were two other historic districts in Palo Alto and asked what was the difference between Professorville and the other two districts and if the same process would apply. Ms. Caporgno said Professorville was a National Historic District and listed on the City’s inventory. Green Gables and Greenmeadow were National Historic Districts but not on the City’s inventory. Professorville was on the inventory which meant that every single property that had a planning change would be required to go through the HRB. Council Member Shepherd asked if structures in Green Gables and Greenmeadow would need to go through CEQA process. 15 03/14/2011 Ms. Caporgno said they would not be affected with the Professorville process. There could be properties in the two districts that were significant Eichler representatives and would require an EIR process if structural changes were to be made. Council Member Shepherd said she looked forward to having the process move quickly to the HRB and to have the structure either rehabilitated or replaced. Council Member Schmid raised concerns regarding the compatibility criteria and heard Mr. Bernstein state that it would be subjective. He asked if Staff was asking the Council to vote on a reform of the process to allow early signals of compatibility prior to moving into the subjective step, and that a consultant would be working with Staff and Professorville residents to find compatibility criteria. Ms. Caporgno said that was correct. The process would insure that development was consistent with the Secretary of Standards and approved by the HRB or by the Council. Council Member Schmid raised concerns regarding the process. He said the HRB came to a conclusion regarding the process and a few weeks later the Council and Staff took a different position. He asked if everyone was working towards a goal of understanding each other. Mr. Williams said yes. The parameters would help narrow down a new design. Council Member Schmid needed confirmation that Staff was asking the Council to vote on a reform of the process that would start immediately and to prepare criteria that would come back to the Council for approval. Mr. Williams said that was correct. Council Member Burt asked what the reason was for including the $15,000 consultant’s fee in the 2011-2012 fiscal year budget and would it cause a longer delay in starting the process. Mr. Williams said if Council desired to move forward sooner, Staff and the HRB could begin to define the consultant’s role and move forward with the consultant and use department funds for the time being. 16 03/14/2011 Council Member Burt asked what the timeline would be for completion if the consultant were hired sooner. Ms. Caporgno said the consultant would need to be onboard towards the end of the project to confirm that the work that had been done met the National Registry standards. If Staff had a 3- to 4-month period to work with HRB and the community, the consultant could come onboard at that time. It would be the same in terms of getting the funding. Council Member Scharff asked for clarification on Staff’s recommendations. Mr. Williams said for 405 Lincoln Avenue, the contributing structure could have been individually analyzed in the historic report. If the report showed there was not a significant impact and the structure was not significant on its own, it could have proceeded with a mitigated negative declaration or a negative declaration as opposed to an EIR. An EIR would be required for demolition if the structure was found to be a significant historic structure on its own. Council Member Scharff asked if the guidelines discussed at this evening’s meeting were being developed or was Staff going to work with the HRB to develop a plan to prohibit demolition on contributing structure. Mr. Williams said Staff would move forward immediately with the first two Staff recommendations and provide the information to HRB for adjustments. The HRB would review the design and be involved in developing the compatibility criteria. Council Member Scharff asked if the third recommendation required working with HRB and the Professorville community in preparing the compatibility criteria. Mr. Williams said yes. Council Member Scharff said the Staff Report stated that it could include criteria to restrict the development of specific styles to insure retention of a more traditional look for Professorville. Mr. Williams said Staff would try to get a sense from everyone involved regarding that criteria. 17 03/14/2011 Council Member Scharff said it would entail a good amount of outreach. Mr. Williams said yes. Council Member Scharff asked if the process would be delayed if the $15,000 consultant fee was allocated in the 2011-12 fiscal year Mr. Williams said that would not be a problem. Staff could work around the issue to prevent delays in starting with the consultant. MOTION: Council Member Scharff moved, seconded by Council Member Klein to direct Staff to work with the Historic Resources Board and residents of Professorville to develop: 1) a written process for review of any future proposed demolitions of Contributing Structures in Professorville, including the CEQA process requirements; 2) early review of the design by the Historic Resources Board and the public; and 3) preparation of compatibility criteria for new construction in Professorville. Council Member Scharff said he did not want to see a replay of what happened to 405 Lincoln Avenue. He felt Staff had put a lot of thought and effort into the process, had provided significant community outreach on the design guidelines, and had streamlined the process to not have unnecessary EIRs. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add in Number 1 of the Motion, in the second line after “Professorville”: “and other interested members of the public, representing a variety of views”. Council Member Klein said the Motion would prevent future applicants from having to experience the process Mr. Akins had to endure. Council Member Price supported the Motion. The Staff Report stated that approved guidelines would be available to anyone interested in filing and would provide a clear understanding of the process and criteria review. She asked if the preliminary review was open to applicant’s post-filing or to initiate conversation with Staff in using the design criteria. Mr. Williams said it would be available either way and people interested in going through the process were encouraged to do so as early as possible. 18 03/14/2011 AMENDMENT: Council Member Holman moved, seconded by Vice Mayor Yeh to investigate with the Historic Resources Board the establishment of CEQA criteria of significance to include significant contributors to the district. Council Member Holman reinforced the notion that a district is greater than the whole of the sum of its parts and voiced concerns about how properties were looked at on an individual basis. Vice Mayor Yeh said the process should allow varying opinions from the community and an opportunity to vet the solutions. Council Member Burt asked the Maker to restate the Amendment and explain how it differed from Staff recommendation No.1 Council Member Holman said the Amendment was to investigate establishing CEQA criteria of significance to include contributors in the district. She said it differed from Recommendation No.1 had been discussed during this evening’s meeting. In the event the issue should reoccur, the City will look at the property on an individual basis to determine if the loss of a contributing structure would be an impact on the district. A district was made up of individual historical significant properties and contributors. Council Member Burt said Recommendation No.1 had indicated to review the future process of a proposed demolition with contributing structures including CEQA requirements. He said he wanted a clearer understanding regarding the difference between the Amendment and what he had stated. Mr. Larkin clarified that any review could involve an EIR if a structure was automatically significant and the Statement of Overriding Considerations would apply due to its significance. Demolition would then occur to a significant resource. Council Member Holman asked if she understood the City Attorney’s comment correctly that the protection of a Historic District was the satisfaction of the Secretary of Standards and an EIR or an initial study would not be required. Mr. Larkin said that was not entirely correct and clarified that an EIR would be triggered if it was a remodel that met the Secretary of Standards. A demolition that was considered to be an absolute loss and had been declared a significant resource would require an EIR and the Statement of Overriding Considerations would apply. 19 03/14/2011 Council Member Burt said he was still trying to understand the Amendment versus Staff Recommendation No.1. Mr. Williams said the word “investigate” referred to discussions with the community to determine whether there was a desire to establish CEQA criteria of significance which would include contributors to the district. He said it would establish a presumption that every contributing structure was a significant historic resource and the demolition of that structure automatically triggered an EIR. He said there were some contributing structures that a historic analysis determined not to be significant historic resources which could be demolished without an EIR. Council Member Klein said the issue was very clear and the argument about 405 Lincoln Avenue went to the heart of what Staff was proposing. Staff was proposing that if there was a future 405 Lincoln Avenue, it would be an easy process to get out of. There would not be any easy way out if the Amendment was adopted. The applicant would be required to go through the full CEQA process. Council Member Scharff said 405 Lincoln Avenue would need to go through the EIR process under the Amendment. He said the Amendment was to have people who had a contributing structure without historical significant go through an EIR process. Council Member Price said she would support the original Motion and did not feel the Amendment improved the process. The original Motion was clearer and had direction for HRB and stakeholders to be engaged and was sufficient in addressing the current issue. Council Member Holman said part of the challenge was not having a clear understanding of a Historic District. She said there was a belief that if HRB members were opposed to demolishing contributors in the district that they were not carrying out their charge. She suggested the opposite and said if HRB Members were in favor of demolishing contributors in a historic district they were carrying out their charge because their role was to help reinforce, protect, and preserve historic properties, providing for appropriate replacements when applicable. She said the Amendment provided better clarity to Staff on what to explore going forward. Vice Mayor Yeh said he commended Staff for wanting to reach out to residents as well as the HRB on this issue. He said the HRB had a particular 20 03/14/2011 perspective and he was curious to know what the residents thoughts were on the issue. Council Member Schmid addressed the Staff Recommendation No.2 and said issues noted by the HRB should be made public early in the process and preferable to have an EIR on contributing structures. AMENDMENT FAILED: 2-7 Holman, Yeh yes Council Member Holman said there had been discussions in the community about wanting to investigate an overlay process. She asked if Staff could have that discussion with the public without a Motion. Mr. Williams said it was something that may come up as part of the discussions but currently was not part of the work program. Staff was not planning on returning to the bigger issue of conservation overlays. AMENDMENT: Council Member Holman moved, seconded by Vice Mayor Yeh to direct Staff to investigate an overlay process with the Historic Resources Board, the public, and property owners for the Professorville district. Council Member Holman said the neighbors with all their property investments should be in charge of their community’s future and determine its destiny. AMENDMENT FAILED: 2-7 Holman, Yeh yes INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to change the beginning verbiage in Number 3 of the Motion to “preparation of design guidelines including compatibility criteria”. Mayor Espinosa said he supported the Motion. MOTION PASSED: 9-0 Council Member Holman spoke regarding Julie Caporgno’s retirement at the end of March 2011. 6. Update Regarding Sustainable Communities Strategy (SCS) and Regional Housing Needs Allocation. 21 03/14/2011 City Manager, James Keene said the supplemental memo and attached information were provided to the Council to help expand the presentation in providing updates. Director of Planning and Community Environment, Curtis Williams said the Staff Report provided an update on the Regional Housing Needs Allocation (RHNA) planning efforts and included information regarding: 1) the RHNA Housing Methodology Committee, 2) Council Members meeting with the (Association of Bay Area Governments) ABAG Executive Director, 3) the status of preparing a subregional housing allocation, and 4) the anticipated release of the Initial Vision Scenario by the regional agencies. He provided a presentation as outlined in Staff Report ID#1348. Mr. Keene reflected on the meeting with ABAG. The RHNA Housing process was housing driven by job growth on a jurisdictional basis. Points made by Palo Alto regarding the methodology for predicting job growth were acknowledged and understood that changes needed to be made. He said since the Sustainable Communities Strategy (SCS) involved both the Metropolitan Transportation Commission (MTC) and ABAG there could be issues with the MTC saying that road network environment was constrained in accommodating the population and that applications needed to be made along transit corridors and certain locations to make the process work. He said discussions needed to take place since there were implications from Palo Alto and this was the first time for the two regional agencies to help coordinate the process. Robert Moss said the projected figures in the table were unrealistic. He said the census that was released in the past week reflected a population increase of 6.6 percent in the last 10 years in Santa Clara County. The table projected a population increase of over 16 percent every decade for the next 2.5 decades. Santa Clara County lost 75,000 jobs since the year 2000. The job prediction for Palo Alto for the next 25 years was fewer than in 2005. He said Palo Alto was the fourth most expensive city in the Country for housing. Land ranged from $3 to $4 million per acre. He said it would cost $700 million to purchase the land for the additional 12,000 units with a budget in the negative by $45 million per year. He said finance, land, land use, and impacts needed to be taken into account for the process. Mayor Espinosa raised concerns regarding the figures and needed clarity on the steps in moving forward. He said Palo Alto along with the Bay Area would grow between now and 2035 and the idea of 12,000 new households being accommodated in the community was unacceptable. He said the 22 03/14/2011 abundance of jobs and the transit corridor was leading to a certain methodology and wanted to be clear where in the process would non- compliance, legal action, and a challenging methodology fit into the discussions in moving forward. Mr. Williams said the numbers just came out and he could not provide a complete answer at this time. He said there was a need to get a sense from fellow communities if there were opportunities to create informational and non-political responses. He did not think a legal response would be appropriate until something was adopted. Staff needed to know when the meetings would take place and to begin working on a strategy on how to respond to the proposal. Mr. Keene asked the Council to direct Staff to look at the details in the methodology that resulted in the application. Council Member Klein said he did not understand what the methodology was on something that was unconstrained by reality. The housing numbers were illogical. He asked where in the community 12,000 additional units could be built, and for financial details. He raised concerns regarding the limitation of jobs to 5,000 in the area. He did not want the report be a starting point for discussion and advised deleting the figures and starting over. Council Member Schmid said the numbers were not extrapolated and had no connection to reality. The census data for the past 10 years showed that Palo Alto’s population grew by 9.9 percent and was actively engaged in the ABAG process. He questioned why Palo Alto was growing twice as fast as the coastal and neighboring counties throughout California. He concurred with Council Member Klein to review the Housing Element and to respond by inputting the appropriate numbers provided by the census for the past decade. Council Member Shepherd raised concerns when SB375 addressed bringing in more housing into Palo Alto. She said Palo Alto had a rail corridor that could quickly, easily, and efficiently reduce greenhouse gases while bringing workers to Palo Alto. She wanted to know what ABAG’s thinking was on this issue and if they viewed Palo Alto as having extra space and the capability to reduce acreage. She asked what approach would be taken to input housing data for a city with a rail corridor that had best practices to not impact traffic and streets when bringing workers into the area. She wanted to know how this would be addressed in RHNA and ABAG numbers. 23 03/14/2011 Mr. Williams said that was a key question. He said the numbers were unrealistic and he needed to get a better understanding of how the numbers connected. He felt the SCS process used a formulated approach to the numbers on the housing side and did not look at the employment side. He hoped to get away from the formula and identify job centers in the Bay Area for housing. He said there plans for high-density housing near train stations in the area that were affordable and could accommodate people with jobs in Palo Alto. Council Member Shepherd concurred with Council Member Klein’s comment about establishing the City’s own methodology. She said there would be no reason to have High Speed Rail (HSR) here with these housing numbers. Mr. Keene said he was in favor of pursuing the City’s own path. Vice Mayor Yeh said this was an intellectual exercise. It was the first time MTC and ABAG were working together to figure out what systems and analysis they can do together. He did not think an intellectual exercise lent itself to understanding the local impacts if it was formula driven. He addressed the financial viability and concerns about the public transportation systems. He advised taking a constructive approach in letting MTC know there were long-term commitments in constrained cities through 2035 and to look at taking advantage of housing combined with transportation at the regional level. It would have potential for long-term visionary thinking. Council Member Burt said ABAG Executive Director Rapport indicated they would be revising their methodology and was going to advocate a revision to the demographic projection. However, ABAG was not in a position to stipulate revisions to the board or MTC. He asked if the demographic projections reflected the new lower revisions or if they were the original data. Mr. Williams said it reflected a reduction of 750,000 jobs from in 2007. Council Member Burt said the report not only indicated a higher growth rate in the last decade, but there was no conversation about the three decades prior to the last 10 years. He felt there was a trend of less percentage growth per decade since the 1950’s and a sudden radical reversal was projected. He asked how it would influence the RHNA allocation. 24 03/14/2011 Mr. Williams said the influence was undetermined. He discussed developing a formula to determine the number of units the Housing Element should cover. Council Member Burt said the SCS plan projected the primary growth in the California Avenue, University Avenue, and El Camino Corridors. It would not benefit Palo Alto to continually say it was victimization of North Palo Alto against South Palo Alto. The housing pattern in the south end of Palo Alto during the last decade was a reversal of the prior decade and the prior decade had the same comments regarding housing in the north end. It was a Palo Alto concern as a whole and not a matter of the North versus the South. Council Member Scharff said he felt the projection was based on the location of transit corridors. He recalled Mr. Rapport stating that the placement of jobs next to transit corridors was a great way to reduce greenhouse gases and was something he would advocate. Council Member Burt said another issue to focus on politically was that the plan was using greenhouse gas emissions as the primary driver for the initiative. ABAG needed to give communities the latitude to achieve the objective and not have them prescribe the methodology on how to do it. Council Member Price said the subregional approach was critical. She asked what options would be used in addressing the issues if the report was to be redone and the resources used for a more defensible methodology. She wanted to know if the debate could be made peninsula-wide through 2035 and asked if the Housing Element was updated every 7 years. Mr. Williams said it was 7 years through 2014 and every 8 years thereafter to coordinate with the transportation plan. Council Member Holman said she found that several goals and conclusions stated in the report were confusing. She said there was no evidence in Palo Alto that more housing would reduce the housing cost for low-income households. She said the goal for the initiative was to reduce greenhouse gases and did not know how ABAG developed the conclusion that “new residents ride transit, walked, or biked more than existing residents and greenhouse gases per capita in vehicle miles of travel (VMT) per capita go down, but they still drive and the results total VMT goes up which increased collision and auto emissions.” She said the scenario addressed increasing transit capacity but there was no statement regarding state budget. 25 03/14/2011 Vice Mayor Yeh said in terms of the next steps, the Staff Report noted outreach to cities and asked whether that included hosting meetings in communities. He said it would be beneficial for ABAG and MTC members to see the population during the daylight hours and suggested they take commuter rail into Palo Alto to see the level of participation. Mr. Keene said the City had several projects in the mix that needed coordination even without the SB375 proposal, such as the climate action plan, the corridor study, and the California Avenue plan. He did not know what that would mean on the Staff’s side, but these were sustainability issues. Mayor Espinosa stated he recognized the tight timeline. Staff heard the concerns and several ideas would be coming back to engage in a conversation with a proposal in moving forward. No action taken by Council. COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS Council Member Shepherd spoke on attending the Santa Clara Valley Transportation Authority Policy Advisory Committee. The discussion centered around new concepts for bus/rail transit from Palo Alto to the HP Pavilion in San Jose along El Camino Real. Council Member Klein reported on his trip to Washington, D.C. where he met with Congress lobby members to discuss High Speed Rail. Council Member Scharff acknowledged that today is National Pi Day (3.14159) and wanted Council to recognize the day as it falls inline with Council’s Priority on Youth Well-Being. Vice Mayor Yeh reported on several meetings that occurred this past weekend that were related to the City’s low carbon measures and strategies. Council Member Burt spoke regarding the low carbon cities collaboration. He asked Staff to return with a report on the VTA bus rapid transit program. Council Member Shepherd stated that there is a high likelihood that VTA will be reducing the lanes along El Camino Real, but the final plan has not been 26 03/14/2011 decided upon. She stated that VTA representatives will be having meetings in Palo Alto to discuss this with the public. Mayor Espinosa thanked everyone for their hard work at the Eleanor Pardee Park tree planting this past weekend, and spoke on the opening of the new Elks Lodge. ADJOURNMENT: The meeting was adjourned in honor of National Pi Day at 12:17 a.m. -----Original Message----- From: Allen Akin [mailto:akin@arden.org] Sent: Monday, August 29, 2016 9:12 PM To: Council, City Subject: Comments on the Proposed Professorville Design Guidelines Hello, all. I've prepared my comments as a PDF file, attached, so that they could be more clearly illustrated. Best Regards, Allen Akin Background This August marks the 9th year I've studied the Professorville Historic District and the rules for building there. This is the third set of design guidelines for the District in which I've participated in some way. I paid for the first, helped research and write the second, and now I'm offering advice on the third. The design guidelines projects were motivated in part by the experience with my house at 405 Lincoln Avenue during 2007-2010. Mayor Burt, Vice Mayor Scharff, Council Member Holman, and Council Member Schmid will remember it. A court decision against the City in the Juana Briones House case, the lack of a City process for CEQA review of single-family houses, and conflicts between the City's reviewers wound up costing me over $500K and requiring 3.5 years. In the interim the property was in limbo – unusable and unsellable. For the history of the project, see allenakin.com/405lincoln.html . Part of that time and expense went into the development of the first set of design guidelines by Garavaglia Architecture, the City's historical architecture consultant on the project. These guidelines were abandoned during EIR development when it became clear that they failed to capture the defining features of the District accurately enough to be used for a CEQA review. In 2011, Julie Caporgno, Steve Turner, and Dennis Backlund of Planning responded to Council's direction by taking measures to fix the problems faced during my project. One of their actions was to create the Professorville Design Guidelines Committee to produce the second set of guidelines. Julie recruited eight Committee members from the HRB, from Palo Alto Stanford Heritage, and from Professorville's residents. She asked me to participate because of what I had learned concerning preservation policies and related law during my project. The group in Planning decided to combine design review for Professorville with the existing Single Family Individual Review (IR) process. This had two major advantages. First, it made review enforceable. (Compliance with HRB review is voluntary, but compliance with IR is mandatory. IR is discretionary, so CEQA review is triggered when necessary.) Second, it consolidated the two existing reviews into a single action. (Julie had seen on my project that a great deal of delay, expense, and mis- design resulted from multiple uncoordinated reviews.) The Committee was charged with listing the defining characteristics of Professorville and using them to propose Professorville-specific requirements for the Individual Review guidelines. To understand why this is a problem without a simple solution, see What Is Professorville? For three years the Committee held open hearings, researched the defining characteristics of the District, considered the review process, and discussed the balance between preservation and property rights, among other things. In 2013 it produced a set of minimalist guidelines and recommendations for small changes to the ordinance for IR. You can find my explanation of the Committee's work and recommendations here: arden.org/professorville/index.html . The final draft of the Committee's additions to IR can be found at DraftIrGuidelinesBooklet.Professorville.pdf . It's about ten pages long. Julie and Dennis retired, Steve moved on to Redwood City, and as a consequence the Committee's 1 of 13 proposal was left in limbo. In 2015 Matt Weintraub of Planning started a new guidelines project from scratch. I learned about it by chance from an item on the Consent Calendar. There was no attempt to contact the Committee to discuss its rationale or what it had learned from the community during its effort. Contrary to what you may read in the new Guidelines, the entire Committee proposal, including the enforcement mechanism chosen by Planning itself in 2011, was discarded. It's not surprising that the names of the Committee members don't even appear on the new acknowledgements page. A few “workshops” with “interactive activities” were held by Planning as part of this new project. While these were fun (I attended all of them), they were pro-forma and sparsely attended. Only the first took place before the new Guidelines had been drafted, and even that one occurred after Page & Turnbull had already completed most of its field research. Although I raised many substantive issues in letters to Matt and at the workshops and at an HRB hearing, only a few were addressed. Several disclaimers were added, and some of the simple factual errors were corrected, but the approach and outcome were foregone conclusions. Evaluating the Proposed Guidelines Design review involves interpreting rules that are in part subjective. There will never be universal agreement about them. See The Craftsman Style Is Bad Taste and Waste However, I believe we can agree on some objective goals. Review should incorporate the applicant's needs; be based on the real, measurable District; be legally defensible; be fairly applied; and be efficient. The newest Guidelines don't do well in those respects. I've provided some explanation in Comments on the Proposed Guidelines In brief: The proposed Guidelines do nothing to resolve the lack of a defensible definition for the District, but add to the confusion by erasing the legally-important distinction between contributing houses and non-contributors. They do nothing to simplify multiple conflicting review processes, and even add complexity to them. They do nothing to close a legal loophole that subverts historic preservation and imposes burdens on residents inconsistently. They provide a false sense of security to residents who are concerned about preservation, because although they may appear to be requirements, they are actually voluntary and unenforceable. And they discard the already-existing proposal from Planning and the Committee that would have made progress on most of those issues. For those of you who were on the Council in 2011: If it was your intent for Planning to clarify and simplify the design review process, as Planning apparently understood at the time, then these proposed Guidelines are not the solution you were looking for. What We Should Do In the short term, the right thing to do is table these Guidelines because they don't fix the problems that actually need fixing. A cynic would say that they're a perfect example of the Palo Alto Process: Adding 2 of 13 more than a hundred pages of inconclusive criteria to a process that's already too slow and complicated. In the long term, Council could direct Planning to start fixing the fundamental problems. (Perhaps for the second time, if Planning recently misinterpreted what Council intended in 2011.) We've spent five years on this already, so clearly it's not urgent; we can take the time to do things well. •Compatibility with “the District” is not well-defined. We should strive for compatibility over neighborhoods or block faces; areas that are neither too large nor too small, but are self- consistent. Compatibility within the Professorville core could be stronger. •Focus on the Secretary of the Interior's Standards. Existing City policy and the CEQA Guidelines require these as the basis for determining whether a project is acceptable. •Fix the lack of documentation for the houses in the District. This can be done a little at a time to help manage the expense. •Determine objective standards that can be used to assess significance and compatibility. Many of these already exist, but are not being applied consistently or cannot be applied because of lack of documentation. •Using those, choose a definition and boundaries for the District that are legally defensible. •Eliminate the known legal loopholes. •Consolidate design review processes so that there is one enforceable review. This is necessary for both efficiency and fairness. The proposed new Guidelines are not without value, and once this improved process is in place, we may find them useful. The final result would strengthen the preservation of genuinely historic houses and neighborhoods while leaving owners throughout the District with enough flexibility to adapt to changes in their own lives and in the environment. As we anticipate construction of taller buildings nearby, reduced water supply, increased traffic, increased noise from rail, and so on, we will need it. Thank you for your patience in working through a long letter on an esoteric subject (that has absorbed far more of my life during the past nine years than I ever expected). Best Regards, Allen Akin 405 Lincoln Ave 3 of 13 What Is Professorville? Professorville has a “core” where the vast majority of the early professors lived, nearly every house is built in one of just a few architectural styles, most of the individually-significant houses are concentrated, and about 80% of the houses were built in the two decades between 1891 and 1911. The stone markers for Professorville were placed inside it in 1969. It's essentially the portion of the National Register Historic District west of Waverley Street, shown in red here: This is the area with the features most people have in mind when they imagine Professorville. But the Local Historic District we have today is the result of expansions over the years to include areas that are not so closely related. Often they were added for superficial reasons (we have good documentation for this). Today's Local District lacks strong unifying architectural and historical principles like the core has. Only about a quarter of the houses have a connection to the early Stanford professors. Depending on how you count them, some 15 architectural styles (including Eichlers!) are represented, and even within a given style there is major variation in overall design, detail, and size. Today Professorville contains areas that are no longer distinct from nearby parts of University South or even Community Center and Crescent Park slightly farther away. 4 of 13 Professorville west of Waverley Street is a collection of historic houses built in consistent architectural styles with intrusions of non-historic houses in other styles. Professorville east of Waverley is a collection of less- or non-historic structures (houses and others) built in more recent architectural styles wrapped around a modest number of historic houses in a variety of styles. I doubt it's appropriate or even workable to apply a single set of detailed guidelines to both sections. The Dames and Moore study of Palo Alto historic resources in 1999 observed that the Professorville National Register District defined in 1979 wouldn't meet modern standards: The documentation "does not include the kind of information and the amount of detail that is required today and that is needed in regulating a historic district, whether as a NRHP [National Register of Historic Places] district, or a city district." It went on to note specific problems in defining significance, characterizing architecture, applying the National Register Criteria, defining the period of significance, establishing a defensible boundary, assessing integrity, documenting individual buildings, and completing original research. This has practical implications in the real world. My project met its legal requirements in part because the property had none of the defining characteristics listed for the National Register District. The Local District of today has even less strength than the National Register District. In January, 2014, Dennis Backlund explained: "...while the National Register sector of the district was professionally designated, this was not the case with the 1993 extended Professorville. In 1993 there was no historic CEQA review process in the City and no historically trained staff members in the Planning Department. In a nutshell, the extended District sector was an unprofessional and improper designation (due to nearly 50% non- contributors in the extended sector at the time of designation) that is often problematical due to today's historic CEQA review. In 1993 all historic review in the City whether discretionary or not was entirely voluntary compliance (due to the absence of the mandatory historic CEQA review which was not practiced by the City until 1994 --triggered by the 1994-95 Varsity Theater-Borders project where the concerned public uncovered in consultation with the State Preservation Office the requirement for historic CEQA review in the Planning Department). The extended District did not raise issues at first because historic review was then harmless to property rights--nothing was actually required of historic properties except zoning and the Building Code. The solution to the extended Professorville problem would be a formal evaluation of the extended District which would definitely require a professional reconfiguration of the extended District boundaries so as to include a significant majority of contributors." We have a pretty good idea of what needs to be done to put the definition of the District on a sound foundation. The Dames and Moore study laid out the key requirements more than 15 years ago. 5 of 13 The Craftsman Style Is Bad Taste and Waste A lesson in how there will never be universal agreement about design, using one of the defining styles in Professorville. 6 of 13 Comments on the Proposed Guidelines Applicant's Needs When most people consider a building project, they begin with a functional need, and then ask what they're allowed to do. For instance, “I want another bedroom so my parents can stay with us. Can I expand my second floor?” Or “I suffer from seasonal affective disorder. Can I add skylights to bring in more natural light?” The proposed Guidelines are essentially about art; they have a lot to say about aesthetics without considering the applicant's needs for function. They're disingenuous about their authority, as well; aside from some half-hearted disclaimers they express their recommendations as if they were requirements. Applicants should be forgiven for not understanding what is permitted and what isn't! Under current law, a project is acceptable if it's consistent with the Secretary of the Interior's Standards for Rehabilitation. Those Standards are more permissive than the proposed Guidelines. Interpreting the Standards for each particular case, and including the needs of the applicant, is the essential purpose of a review. The best way to meet an applicant's needs, therefore, is to make a professional-quality review by architects easier, faster, and more conclusive, not to elaborate the existing process with more than a hundred pages of non-binding advice. 7 of 13 Real-World Basis To avoid overwhelming you with details, I'll cite just a few examples where the Guidelines get into specifics that fail to respect the ground truth. I sent others to Planning a few months ago. •On page 9 it's mentioned that Professorville is “distinguished by...its consistent streetscape patterns...”. In fact, measurements show that Professorville is less consistent than the nearby neighborhoods of Crescent Park and Community Center. This would be expected from the way properties were subdivided. Good places to appreciate this are the 300 blocks of Lincoln, Kingsley, and Melville (where the lots are large and irregularly-sized) and the 1000 and 1100 blocks of Bryant and Ramona nearby (where the lots are small and regularly-sized). Enforcing a new consistency where it didn't exist historically would be a change to the character of the District. •Page 34 states “Early residences are set back from the street between 25’-40’...” A scale map of Professorville plotted by the City's GIS suggests that very few of the small properties have setbacks this large, and perhaps a little more than half of the large properties do. So this may be incorrect. In practice, it's likely irrelevant and doesn't need to be in the Guidelines. Zoning requirements (particularly the contextual setback) are going to override it, so it can't serve as guidance to accept or reject a project. •On page 123, “early homes in the neighborhood were typically constructed with detached garages at the backs of lots.” Originally this read “all early homes in the neighborhood were constructed with detached garages” [emphasis added], which was corrected after I pointed out exceptions. But how common are other garage designs? Would you reject an application for a new attached garage if only 5% of Professorville houses had them? How about 20%? What if the percentages differed for houses on alleys as opposed to houses elsewhere? An historical architecture consultant once told me that assertions about house features in historic districts always need to be quantified, or you can't be sure how true they really are. The last item above is one example of the ways the proposed Guidelines misrepresent the district by oversimplifying and overgeneralizing it. Professorville includes traditional styles and Eichlers, cottages and mansions. This variety is undeniably one of the defining characteristics of the District. As a result the Guidelines' sweeping statements about particular features can be wrong for a good percentage of the houses in the District. As was the case with the first set of Guidelines many years ago, this tends to make the new Guidelines unhelpful for design reviews and for resolving CEQA questions, because you can always find counterexamples to support a particular position. 8 of 13 Here's one of the four Category 1 (most significant) houses in the District: It violates the new Guidelines in at least four areas: window design, main entrance placement, streetscape patterns, and landscaping. And it's not alone. Other individually-significant houses in the District violate one or more of the Guidelines, as do many non-significant houses. If the proposed Guidelines don't accurately capture what's already in the District, how can you use them to decide whether a new project is compatible with the District? Keep in mind that the Secretary's Standards are already so restrictive that had they been in force from the beginning, Professorville as we know it today could not have been built. This house is a good example. Today we recognize it as one of the most significant in the City, but when it was built it was incompatible with the core Professorville houses in massing and materials. That would have violated the Standards. It might be ideal to have definitive requirements, but for a District that doesn't have consistent architecture or history, laundry-lists of guidelines are not the best substitute. The Committee's recommendations depended on the review process to balance compatibility and change. 9 of 13 Another way the proposed Guidelines overgeneralize is by misleading readers about the amount of similarity in the District. There's a good illustration of this on page 38: A map of the District where areas are colored by architectural style. I think that most people, seeing this, would get the impression that large areas of Professorville are very similar architecturally. But is this true in reality? Here are two houses that are both colored dark green on the map: 10 of 13 Here are two more, this time from the light-green areas: If you built an addition to one house of each pair using the style of the other, would it be compatible? Is it misleading to imply that they're the same style by portraying them the same way in the map? The Guidelines supposedly describe the defining features of Professorville. Are they complete enough to explain why a given house is appropriate for the District, and a neighbor across the District boundary isn't? Here are two houses, adjacent to one another in the middle of their block. One is inside the District and the other isn't: Architecturally, neither one seems very different from other houses in the District, so it's not obvious why they aren't both in the District. Perhaps one is “historic,” and the other isn't? But just down the street, you'll find this house, which is also next to the District boundary but wasn't included in the District: 11 of 13 In fact, most houses in the District aren't significant individually, and plenty of nearby houses that are significant individually are not in the District. Many houses in the District are not obviously different from houses outside it. Again, if the Guidelines aren't strong enough to show why existing houses belong or don't belong in the District, how are they valid for showing why a new house or an addition belongs or doesn't belong in the District? Legal Defensibility The new Guidelines have no legal force, so I doubt they have to be defensible per se. However, they do nothing to help resolve the essential CEQA question of whether a project in Professorville presents significant unmitigatable impacts on the historic resource that comprises the District. If the City cites them among its reasons to block a project, it might be challenged on the basis of issues like those described in this letter. Age alone is not enough to confer significance; anything that simply survives eventually becomes old, whether or not it's individually valuable or a meaningful part of a larger whole. That's why the Department of the Interior requires historic districts to have unifying principles in addition to age. The decision of the new Guidelines not to differentiate between contributing and non-contributing houses in the District, and to use age alone, is a fundamental error. I wouldn't be surprised to learn that it offers another path to a legal challenge, perhaps to the District itself. 12 of 13 Fairness The new Guidelines fail to address a major loophole: Today you can freely demolish an historic house and build a one-story replacement of your choice. HRB recommendations are non-binding. Individual Review doesn't apply to one-story houses, so there's no discretionary action involved, and CEQA doesn't apply. Therefore the constraints are significantly more severe for two-story houses than one- story houses. This loophole has been used; 225 Lincoln (a one-story spec house constructed in 2013; ironically, pictured as a positive example in the new Guidelines) exists because a Category 3 historic house was demolished in order to build it. The Committee's recommendations, on the other hand, would have modified Individual Review to apply it to single-story houses in Professorville and thus treated one- and two-story houses fairly. Dennis Backlund documented that many of the properties added in the 1993 expansion don't contribute to the District. The Guidelines before you impose the same constraints on those properties that they do on the contributors. This is clearly unfair (and perhaps challengeable). Efficiency The new Guidelines offer no improvement in this respect. All the conflicts between City reviewers that I dealt with in my project are still possible, and likely to happen again for someone else. The Committee's approach would have consolidated multiple reviews, reducing the potential for inconsistency, and streamlined the process. An HRB member once told me that Guidelines should be brief and general. The more non-binding specifics that are added, the greater the chance they will be misunderstood or misused. The proposed new Guidelines definitely fail that test. Sometimes less is more. 13 of 13 From:Allen Akin To:Gitelman, Hillary Cc:Council, City; Weintraub, Matthew; French, Amy; Silver, Cara; Michelle Arden Subject:Re: Comments on the Proposed Professorville Design Guidelines Date:Wednesday, August 31, 2016 10:01:13 AM On Tue, Aug 30, 2016 at 08:41:10PM +0000, Gitelman, Hillary wrote:| Thanks for these detailed comments and for participating in this| long-running project. Staff will review your comments and prepare| a response to the issues you have raised in advance of the City| Council's meeting on September 12th. Thanks for your followup! I should emphasize that these issues aren't last-minute surprises. Iraised all of them (and others) in my emails to Planning over the pastyear, in discussions at the Design Guidelines Workshops, or at the firstHRB hearing for the Guidelines. Some are more than 15 years old. Given that there's already been plenty of time and opportunity to takethe issues into account, I don't expect Planning to make any substantivechanges in the proposed Guidelines at this point. Clearly the directionfor the project was set in stone at least a year ago. If Planning is working on new initiatives that aren't generally known,like a significant change in Individual Review or Historical Review, itwould be wonderful to hear about them. However, it wouldn't change myrequest that Council table the proposed Guidelines until we understandexactly how an improved review process would work and how any set ofGuidelines would be used in it. For example, I wouldn't want Council toapprove them only to learn a year from now that these voluntaryGuidelines with all their shortcomings suddenly will become mandatory. | I really appreciate your attention to this issue, just as I| appreciate Matt Weintraub's efforts to bring a complex project| that he inherited to a conclusion. The way you've phrased that puts the problem in a nutshell. The goalwasn't to bring a "project" to a "conclusion". The goal was to fix someof the fundamental issues with design review in Professorville. Atleast that's apparently how Planning understood it in 2011. Councilmight be able to clarify its intent. For me, the touchstone is usually "Would this have prevented theproblems on my project?" With respect to the proposed Guidelines theanswer is pretty clearly "no". My first house design was based onrecommendations from Planning, but the City's historical architectureconsultant threw it out. (Recall that this was the same architect whosestaff developed the first Professorville Design Guidelines.) The housewas redesigned over the course of a year during which he had veto powerover everything, from the site plan to the paint. But after the designwas complete and the EIR had been drafted, he decided he wanted morechanges. When it was time for IR, the City's IR consultant alsodemanded redesign of significant parts of the house. When it was timefor historic review, the HRB was upset that Planning didn't give themthe opportunity to redesign it as well. We had reached the point wherethe changes made by some reviewers were the motivation for changes byother reviewers. An illustrated list of common features in Professorville is not a fix for that situation. A better-organized review process might be. Best Regards,Allen From:Allen Akin To:Gitelman, Hillary Cc:Council, City; Weintraub, Matthew; French, Amy; Silver, Cara Subject:Re: Comments on the Proposed Professorville Design Guidelines Date:Saturday, September 10, 2016 1:53:14 PM Director Gitelman: Thanks for your memo responding to my comments submitted to Council. As for continuity: None of the conceptual approach (specified byPlanning in 2011), the text, or the illustrations from the Committee'sfinal draft survive in the current Guidelines. It certainly appearsthat the new Guidelines started from scratch. You mentioned that the Committee effort "did not reach a successfulconclusion." The Committee completed its final draft and held its finalpublic review. To the best of my knowledge, Staff never submitted it tothe HRB for approval. As I noted in my email to Council, those of us onthe Committee understood that to be due to departures of key personnel,not to a deficiency in the draft. I mentioned learning about the project from the Consent Calendar becausethat indicates the project strategy was set before there was any attemptto contact the previous participants. The item would have been placedon the Calendar only after Staff had decided to hire a consultant todevelop a new set of Guidelines. The Committee members had not beennotified that such a decision was being contemplated. I did ask for a one-on-one with Mr. Weintraub after the notice appeared,but he deflected that request by stating that the public would haveopportunities for input. He also wrote (email of August 17, 2015): "AsHillary said, none of the previous work will be lost, and there will beopportunities for property owners and community members to provide inputthroughout the process. In addition, we will ask the advisory committeeto regroup and help lead us through the effort." This turned out notto be the case, but the choice to define the strategy without talkingto the Committee first was of more concern. The activities in the workshops, and the criteria and examples usedto discuss the District, were not chosen by the participants.Those were designed by the consultants before the workshopstook place. For example, see the first workshop materials here:http://www.cityofpaloalto.org/civicax/filebank/documents/51405 . I'm not aware of any issues raised during free discussion in the firstworkshop that materially affected the draft Guidelines. (Some issuesbecame disclaimers in sidebars and FAQ entries.) By the time the secondworkshop was held the draft was already completed. Regarding what the Guidelines are, and are not: This paragraphillustrates several of the problems that concern me. At first, theGuidelines are described as just an educational tool; but by the end ofthe paragraph they're being described as a part of reviews based on theSecretary's Standards (e.g. CEQA reviews) and a possible foundation forMunicipal Code changes. Were they expressing general principles, orbased on a defensible definition of the District, I'd be less worried.But they're not. They're highly specific, based on a concept thatdoesn't distinguish between contributors and non-contributors, and a period of significance that isn't backed up by research. As the Damesand Moore report noted, even the National Register District lacks defensible definitions for those things. This had a direct impact on myproject, so I have a great deal of respect for the problem! The LocalDistrict is even worse, containing older houses that were determined tobe ineligible by the HRB, but were added anyway as part of boundaryregularization or extension to include individually-significant houses.The proposed Guidelines aren't a solid foundation, because they weren'tbased on the houses that contribute according to a principled definitionof a district. Re contributors, from page 23 of the proposed Guidelines: "The guidelinesare meant to apply equally to all properties in the district; therefore,they do not include radically different treatments for contributors andnon-contributors." They should, though. Contributor status is probablythe single most important factor in determining whether demolition ispossible. Glossing over that fact is equivalent to ignoring an importantlegal distinction and surreptitiously eliminating a property right. I defer to Council on the question of its intent when directing Planningin 2011. At the time, Planning obviously felt that changes in the reviewprocess and in the code were within its charter, and so they instructedthe Committee. Your memo mentioned that the Committee's Guidelines included minimaldesign advice. That was intentional. The acceptability of a projectis always determined by a review, not by the Guidelines. Therefore,the Committee chose to encourage early, free, and frequent consultationwith the HRB rather than produce a laundry list of characteristics thatcould be misinterpreted or misused. I watched the HRB members at thesecond workshop carefully; based on how they approached the assignments,it's clear that even with the proposed new Guidelines, you'll still wantearly, free, and frequent consultation with the HRB. The Committee's Guidelines followed Planning's direction to extend theIR Guidelines. As part of that, they proposed broadening theapplicability of IR in Professorville to include single-story houses,houses that were moved on their lots by more than a certain amount, andhouses that were expanded by more than a certain amount on any floor(not just the second). All of these suggestions were prompted by actualprojects in Professorville that had negative consequences forpreservation but avoided a binding review. Note that there areinteractions between IR issues and preservation issues; for example,privacy requirements interact with the preservation of historic patternsof fenestration. I appreciate that the proposed Guidelines are consistent with theSecretary's Standards. However, it's those Standards, not theGuidelines, that ultimately determine whether a project is acceptableaccording to local and state policy. The Secretary's Standards are lessprescriptive than most people realize, and permit more than the proposednew Guidelines imply. Concerning district characteristics: The original house on my property(which is inside the National Register District boundary) had none of thedefining characteristics listed on the National Register nomination form.Other houses in the District also have few or none. On the other hand, there are houses outside the district boundary that meet most or allof them. As the Dames and Moore report observed, the district characteris not well-defined and the boundary is not defensible. You can't work forward from a set of characteristics to determine the boundary,and you can't work backward from the boundary to infer the defining characteristics. The Local District is weaker still. Of course you can specify areas where the character is well-defined andthe boundaries defensible; they simply don't cover the whole District.I would support developing Guidelines on that basis, but that's not howthe proposed Guidelines work. Best Regards,Allen Akin -----Original Message----- From: Nancy Huber [mailto:njh451@comcast.net] Sent: Friday, September 09, 2016 5:00 PM To: Council, City Cc: cityclerk@cityofpaloalto.org Subject: Professorville Historic Design Guidelines September 9, 2016 To the Palo Alto City Council, I am writing in regards to the Professorville Guidelines. I have had difficulty composing this letter due to the fact that the premise has seemed wrong from the beginning. Instead of spending these years deciding on the best way to build new houses in a historic district, it seemed best to developed new rules and zoning to protect our historic district from taking houses down that fall within the historic time period. If we don't consider this issue soon, we could easily lose our National designation. That being said, the staff and community committee came up with some very good recommendations in many areas of the guidelines along with some that should be changed. There is a statement in the second paragraph of the introduction (pg. 9) that states, "...alterations may be desired in order to adapt the neighborhoods early homes to contemporary tastes and lifestyles." This is a very scary statement for any historic district, and in our District, these rules or guidelines only apply to the exterior. The interiors can be changed as the owners wish. One section on page 99 that really seems inappropriate is 6.1.3. The first bullet point. Many large lots were subdivided years ago, with a few more recently in the ending decades of the 20th century. Today most of the large lots left have a beautiful home sitting squarely in the middle of the lot. To recommend subdividing lots in Professorville to then be able to build a new home seems contrary to the concept of the historic district. When a newer house is to be built to replace one that is not historic, I believe review should be mandatory for every new home in the district. I am not sure there is a review for all new home in the guidelines. I apologize for my meandering thoughts, but I am sincere in the hope that the main goal of our city should be to honor and protect this precious resource of our past. Sincerely, Nancy Huber 451 Lincoln Avenue Palo Alto, CA 94301 Sent from my iPhone -----Original Message----- From: Brandon Corey [mailto:bcorey@acm.org] Sent: Monday, September 12, 2016 9:06 AM To: Council, City Cc: Jennifer Rhoades Subject: Professorville Historic District Design Guidelines City Council: My wife and I are unfortunately unable to attend the meeting on Monday the 12th, but we wanted to provide my feedback on the proposed Professorville Historic District Design Guidelines. We are residents of the Professorville district, and own a historic home here. We were involved in some of the early meetings and discussions on the topic, and while we are behind having a set of standards or guidelines for renovating historic homes, we are *not* supportive of the proposal in it’s current form. We have had a lot of what I believe to be unnecessary teardowns and guttings of historic homes in the neighborhood over the past several years. As such, I am very concerned when we put out guidelines, and I want to make sure we have a good document for people to refer to. In my mind, the purpose of having these guidelines, should be to direct people who would like to renovate historic homes with direction and reflection on what we would like to preserve. Unfortunately, much of the wording is vague, and leaves concepts open to interpretation. If we were looking at a proposal for a standard, I would be much more amenable to having vagueness in the text, as it allows for flexibility under various circumstances. However, when working on guidelines, which are non-binding, it leaving an open invitation for homeowners and builders to get around historic preservation rules. I would prefer to have *no* guidelines, rather than have guidelines that allow builders “a way out” of preserving the integrity of the architecture. Some examples: Page 15, bullet 3: “A historic building should not be demolished unless it’s rehabilitation is infeasible due to its poor physical condition. If removal of an existing historic building is necessary, then new construction should strive to retain the existing property’s character defining features…” I own many properties and have done lots of building and renovation work in the past. Contractors need to be more specialized in order to do quality rehabilitation work, versus just rebuilding, so most contractors will always be in favor of replacement. Any contractor can declare a building rehabilitation infeasible. The current wording leaves it open, and is something home owners or contractors can quote in order to help push through a teardown. Page 55, bullet 1: “Avoid covering character-defining cladding with vinyl, aluminum, or other synthetic siding materials” If you have a house built in 1900, having vinyl *anywhere* on the structure would make it look out of place. Indicating that it’s character defining allows people an easy way out, if it isn’t integral to a piece of facade that anyone can declare or not declare character-defining. Page 55, bullet 5: “Match the replacement wood siding to the historic siding as closely as possible...” Why as closely as possible? Does someone believe that we are incapable of producing the type of materials that we were able to produce in 1900? Page 57, 3.1.2, bullet 1: “Maintain existing wood shingle and clay tile roofing materials where feasible…" Wood shingles and clay roofing are freely available from any roofer. How would using the same material not be feasible? There are many more examples like that throughout the document. Strangely enough, an early revision I read was much more specific, and it looks like it’s been watered down through all of the revisions. I am also concerned that there are very few references to the Secretary of the Interior’s Standards for Rehabilitation. It’s almost a footnote in a 150 page document. For these reasons, I would recommend that you reject this proposal in it’s current form. I think with some additional work, which I’d be happy to contribute on, this could be a useful document, but in it’s current form, it’s worse than having no guidelines at all. Thank you, Brandon Corey 308 Lincoln Ave From: Margaret Feuer [mailto:portulaca24@gmail.com] Sent: Monday, September 12, 2016 1:23 PM To: Council, City Subject: Professorville Guidelines Dear Mayor Burt and Members of the Council, Please do not approve the Professorville Guidelines as presented to you this evening. They are vague and inconsistent and do not clarify the issues of preservration and homeowners' rights. They make an already confusing situation more so. The National Register Standards currently used by architects and the HRB do a far better job at setting standards. The Professorville Guidelines need to be sent back to staff and to citizens for more stringent review. Sincerely, Margaret R. Feuer past President of PAST City of Palo Alto Page 1 Call to Order/Roll Call Present: Chair Martin Bernstein; Vice Chair Margaret Wimmer; Board Members Beth Bunnenberg, Patricia Di Cicco, Roger Kohler Absent: Board Members David Bower and Michael Makinen Oral Communications None. Agenda Changes, Additions and Deletions None. City Official Reports 1.Meeting Schedule and Attendance Matthew Weintraub reported no items were scheduled for the August 11, 2016 meeting and one item was scheduled for the August 25, 2016 meeting. Action Items 2.Draft Professorville Historic District Design Guidelines - Informational Presentation to the Historic Resources Board. Board members and the public may provide comments on the draft guidelines. Final guidelines will be proposed for adoption at a future hearing. For additional information contact the planner, matthew.weintraub@cityofpaloalto.org. Mr. Weintraub advised that staff and the consultant team incorporated comments from the HRB, staff and the public into the Guidelines. Jonathan Rusch, Page and Turnbull, reviewed objectives for revising the Guidelines. Generally revisions expressed preferences while acknowledging the need for flexibility on a case-by-case basis. Mr. Rusch provided the rationale for changes to text and illustrations. Mr. Weintraub remarked regarding comments that were received but not necessarily addressed in the Guidelines. Board Member Bunnenberg requested Staff discuss cumulative effects and exemptions from CEQA. Mr. Weintraub clarified that the Guidelines were recommendations to the property owner, architect, the Board and staff on how to achieve compliance with Standards. Any project could comply with Standards and still have a minimal effect or change. Tracking potential cumulative effects was beyond the scope of the Guidelines. Board Member Bunnenberg inquired whether the Board could request monitoring of projects. Mr. Weintraub replied yes. The Board could recommend conditions of approval that would HISTORIC RESOURCES BOARD MEETING APPROVED MINUTES: July 28, 2016 City Hall/City Council Chambers 250 Hamilton Avenue 8:30 A.M. City of Palo Alto Page 2 involve monitoring. Board Member Bunnenberg commented that the Board's determination whether moving a structure within a lot was needed or wanted was subjective. Mr. Weintraub noted the Guidelines provided parameters for moving or lifting buildings as appropriate. Board Member Di Cicco felt the Guidelines provided direction as well as flexibility for projects. Vice Chair Wimmer suggested creating a companion document that highlighted salient points of the Guidelines. Mr. Weintraub explained that an index was added to the Guidelines to address this issue. The scope of the project did not include development of another document. Board Member Kohler noted the index was quite good in listing individual components and topics. Chair Bernstein inquired whether a City ordinance required approval of plans for new construction prior to demolition of an existing structure (Guidelines page 89, paragraph 6.1.3). Mr. Weintraub reported a Development Center policy stated building permits for demolition should not be issued prior to approval of new development plans. Rob Steinberg felt the Guidelines were sensitive to Professorville, yet provided direction and flexibility. A companion document was not necessary. He suggested Appendix B include explanations of categories and the Guidelines discuss placing new ancillary buildings at locations other than the rear of the property. Council Member Holman commented regarding paragraphs 7.1.5, 6.1 and 4.1.1; the drawing on page 91; and the omission of incentives. Mr. Weintraub explained that the Guidelines could not cover every possible situation with certainty. The City's Codes did not prohibit demolition. The Guidelines were designed as recommendations to the individuals making decisions. The Guidelines were not intended to promote preservation incentives. Mr. Steinberg suggested the Board give additional thought to the impact of raising houses. He preferred the Guidelines clearly state expectations for projects. Board Member Bunnenberg believed the Guidelines would be helpful to the public. A handout regarding historic fabric would be valuable for architects and construction workers. Board Member Di Cicco remarked that prohibitions could require revisions to the Municipal Code, which could be complicated. Chair Bernstein questioned whether "subordination" or "subordinate" was used in the Guidelines. Mr. Weintraub answered yes. Chair Bernstein suggested including a photograph of more substantial landscaping on page 13. The selection of specialty glass was probably a subjective decision of the applicant and HRB. Additions to the rear of historic buildings could be approved if done sensitively. Chair Bernstein concurred with including definitions of historic categories. Mr. Weintraub advised a discussion of historic designations was contained at the beginning of the document. The Guidelines did not distinguish between category buildings and non-category buildings. The categories were not the point of the Guidelines. The Board discussed raising historic structures, reasons for doing so, and prohibitions. Board Members generally felt the Guidelines implied raising a historic structure was acceptable and discussed revisions to the language of paragraph 4.4.1. Mr. Weintraub noted the Council was scheduled to consider approval of the Guidelines on September 12, 2016. The Guidelines needed to be completed and adopted by September 30, 2016 in order to receive federal funding. The Board, staff and Council Member Holman discussed the effects on the timeline should the Board and/or the Council make revisions to the Guidelines. Mr. Weintraub reviewed recommendations to (1) explain or define historic categories; (2) address vehicular access, parking and equipment at the front of lots; (3) add language regarding demolition for City of Palo Alto Page 3 redevelopment; (4) replace the photo of landscaping; (5) add page numbers to the index; (6) modify paragraph 4.4.1; and (7) enlarge the type font used in the document. MOTION: Chair Bernstein moved, seconded by Board Member Bunnenberg, that the Historic Resources Board recommend adoption of the proposed Professorville Historic Design Guidelines including the modifications to which the Board agreed. MOTION PASSED: 5-0, Bower and Makinen absent Mr. Weintraub reported the Board potentially could review and comment on the proposed revisions at the August 11 or 25, 2016 meeting. Study Session None. Approval of Minutes July 14, 2016 MOTION: Board Member Kohler moved, seconded by Board Member Bunnenberg, to approve the Minutes of July 14, 2016. MOTION PASSED: 4-0 Di Cicco abstaining, Bower and Makinen absent Subcommittee Items None. Board Member Questions, Comments and Announcements None. Adjournment TO: CITY OF PALO ALTO HONORABLE CITY COUNCIL 10 FROM: HILLARY GITELMAN, DIRECTOR, PLANNING AND COMMUNITY DEVELOPMENT DATE: SUBJECT: OCTOBER 24, 2016 Adoption of a Resolution Adopting the Professorville Historic District Design Guidelines Councilmember Holman requested that staff provide a copy of the attached matrix of proposed revisions, which was discussed during the Council's initial review of the Professorville Historic District Guidelines on September 12, 2016. As described in the staff report for October 24th, the c.ouncil directed staff to revise the attached matrix to focus on only those revisions constituting corrections and clarifications. This revised list is included as Attachment Bin your packet. r Plan ng and Community Environment 1of1 Professorville Historic District Design Guidelines Proposed Text Changes Chapter/S~ction I Existing Text Proposed Revised Text Table of I "Later Periods of Development (1930s- Contents, Present)" "Later Periods of Development (1940s- Present)" Chapter 5, etc. Secretary of the I [no change to text] Interior's [no change to text] Standards for Rehabilitation, p.23 FAQ, p. 24 4.1.1, 2"d bullet 4.1.1, 4th bullet 9/8/16 " ... the guidelines may be used by the I " ... the guidelines will be used by the HRB ... " HRB ... " " ... the HRB may use the guidelines as a " ... the HRB will use the guidelines as a reference document when making non-reference document when making binding recommendations to recommendations to homeowners." homeowners." "If a side addition is desired, design the addition so that it is set back clearly from the primary volume of the residence." "Constructing new attached garages on historic homes is strongly discouraged in Professorville, as attached garages convey a later development pattern in the neighborhood (see 7.3:2). If an attached garage is deemed necessary, make every attempt to place it to the rear of the primary volume of a residence in order to minimize its visual "If a side addition is proposed, design the addition so that it is set back clearly from the primary volume of the residence." "New garages for historic homes should be detached and placed at the rear of the lot, in keeping with the neighborhood's historic development pattern. Do not construct new attached garages on historic homes in Professorville, as attached garages convey a later development pattern (see Notes Clarifies that the later period of development in the district begins in the 1940s (not the 1930s}, consistent with the description in the text. Moved forward to the first section in the document. Add introductory paragraph explaining the background of the Standards and relationship to the Guidelines. Changed "may" to "will" for stronger emphasis and clarity. Removed second instance of "non-binding" for clarity. Changed "desired" to "proposed" for clarity. Rephrased for stronger emphasis and clarity. Page 1of6 Chapter/Section 4.1.2, 2"d bullet 4.1.2 4.5 4.5.1, including bullets 9/8/16 Professorville Historic District Design Guidelines Proposed Text Changes Existing Text Proposed Revised Text impact as seen from the street." 7.3.2}." "If a taller addition is necessary to meet "If a taller addition is proposed, such as the needs of current occupants, such as in the case of an existing one-story in the case of an existing one-story cottage, explore strategies to minimize cottage, explore strategies to minimize the visual and physical impacts of the the visual and physical impacts of the addition." addition." "An effort should be made to "An addition should be differentiated differentiate an addition from the from the original building in its details." original building." "Demolition of Historic Features and "Do Not Remove Characteristic Features Volumes on an Early Residence Should or Volumes In Order to Facilitate New Be Avoided. Construction. "Selective demolition in order to "New work should be planned carefully accommodate new additions should be to avoid significant impacts to the planned carefully to avoid significant building's historic integrity. Whenever impacts to the building's historic possible, make alterations and additions integrity. Whenever possible, elect in areas where change has already instead to make alterations in areas occurred (see 4.1.3)." where change has already occurred (see 4.1.3}." "Selectively demolishing character-"Preserve and maintain the existing defining features and volumes primary architectural elevations of early diminishes the overall historic homes. character of a home and should be Do not remove or demolish historic • avoided. features located on the front and • Avoid demolishing historic those that can be seen from the features that define the character street. Notes Changed "is necessary to meet the needs of current occupants" to "is proposed" for clarity. Removed "An effort should be made" for stronger emphasis, and added "in its details" for clarity. Rephrased for stronger emphasis and clarity. Rephrased for stronger emphasis and clarity. Page 2 ofG Chapter/Section 4.5.2, 1st bullet 4.5.2, 2nd bullet 5.2.1, 3rd bullet 9/8/16 Professorville Historic District Design Guidelines Proposed Text Changes Existing Text Proposed Revised Text of a residence, in particular those • Carefully consider the located on the front and those appropriateness of selectively that can be seen from the street. removing features and materials • Demolishing features located at from non-primary architectural the rear of a residence is generally elevations, such as rear elevations less impactful, and therefore a or side elevations not visible from more acceptable option, than the street, in order to demolition at the front or sides, accommodate new work." which are typically visible from the pubtic right-of-way." "Whenever possible, avoid demolishing "Do not remove or alter changes to early additions that date to the residences that occurred during the neighborhood's historic period, as they neighborhood's early period of can provide a physical record of historic development, and which are significant development patterns in the architecturally or as a physical record of neighborhood." historic development." "Not every older addition or alteration "Early in the design process, evaluate is character-defining. Consult with and understand the relative importance preservation professionals regarding of historic additions and alterations to the relative importance of any early residences. If necessary, consult particular historic addition or alteration with preservation professionals." to an original residence." "If planning to build an attached garage "New garages for later homes should be space, consider the overall visual detached and placed at the rear of the impact. Avoid a new attached garage lot whenever possible, in keeping with that is visible at the front of a the neighborhood's historic residence, which would not be in development pattern. If a new attached keeping with Professorville's historic garage addition is proposed for a later pattern of detached garages located at home, it should be set behind the the backs of lots. An attached garage primary volume of the house so that it is Notes Rephrased for stronger emphasis and clarity. Changed to 2nd bullet. Rephrased for stronger emphasis and clarity. Changed to 1st bullet. Rephrased for stronger emphasis and clarity. Page 3 of6 Chapter/Section 6.1.2, 1st bullet 6.1.2, 2nd bullet 6.1.3 6.1.3, 1st bullet 7.3 9/8/16 Professorville Historic District Design Guidelines Proposed Text Changes Existing Text Proposed Revised Text would preferably be side-facing and set not visible at the front of the residence behind the primary volume of the (see 7.3.2)." house." "Be cognizant of how existing later "Be cognizant of how existing later residences fit into and reinforce historic residences fit into and reinforce historic development. patterns, and retain development patterns, and avoid wherever feasible." removal of properties that are complementary." "Later residences that are not "Later residences that are not compatible with the character of the compatible with the character of the district may be candidates for district may be candidates for demolition and replacement, provided · demolition and replacement, provided that the new construction is that the new construction is compatible compatible with the district." with the district. {See 6.2-6.5 for design compatibility recommendations.)" "Attempt to construct new residences "Construct new residences without without removing existing residences." removing existing historic residences." "Seek out opportunities to subdivide "If an existing building is located on a existing large lots into new developable large parcel, investigate the possibility of lots." subdividing in order to preserve the existing home and create a new developable lot{s). If subdivision is proposed, avoid disrupting the setting and environment of existing buildings." "The Rehabilitation and Construction of "The Rehabilitation and Construction of Garages and Other Accessory Buildings Secondary Structures Should Enhance Should Be Planned in Order to Enhance the Historic Character of Professorville." the Historic Character of Notes Rephrased for stronger emphasis and clarity. Added "{See 6.2-6.5 for design compatibility recommendations.)" Removed "Attempt to" and added "historrc" for stronger emphasis. Rephrased for stronger emphasis and clarity. Rephrased for stronger emphasis and clarity. Page 4 of 6 Chapter /Section 7.3.1, including bullets 7.3.2, 2"ct bullet 9/8/16 Professorville Historic District Design Guidelines Proposed Text Changes Existing Text Proposed Revised Text Pr.ofessorville." "Historic accessory buildings such as "Historic accessory buildings such as garages and carriage houses are garages and carriage houses are important components of early important components of early properties and should be preserved properties and should be preserved. whenever possible. • Retain historic accessory buildings • Always make an effort to retain and rehabilitate them sensitively if historic accessory buildings and to a new use is desired. · rehabilitate them sensitively if a • When a rehabilitation project is new use is desired. pursued, retain the building's • When a rehabilitation project is original form, materials, and pursued, retain the building's character-defining features. (Refer original form, materials, and to Chapter 3 for appropriate character-defining features to the guidance on treating the features highest degree feasible. These and materials of a historic historic elements will help relate accessory building.)" the building to its associated residence. (Refer to Chapter 3 for appropriate guidance on treating the features and materials of a historic accessory building.)" "New garages should be detached and "On historic homes, new garages should placed at the rear of the lot whenever be detached and located at the backs of possible. This is an important lots in keeping with the historic pattern development pattern and defining in the neighborhood. Historic homes characteristic of Professorville, as early should not have attached garages. On homes in the neighborhood were later homes or new homes, new garages typically constructed with detached should be detached and placed at the garages at the backs of lots. (If a new rear of the lot whenever possible. If a attached garage is considered new attached garage is proposed for a Notes Rephrased for stronger emphasis and clarity. Rephrased for stronger emphasis and clarity. Page 5 of 6 Chapter /Section 9/8/16 Professorville Historic District Design Guidelines Proposed Text Changes Existing Text Proposed Revised Text necessary, see 4.1.1 and 5.2.1 for later home or new home, see 5.2.1 for appropriate guidance on the placement guidance on appropriate placement." of new attached garages on early and later homes, respectively.)" Notes Page 6 of 6 City of Palo Alto (ID # 7394) City Council Staff Report Report Type: Action Items Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Personal Cultivation of Marijuana Title: Adoption of an Emergency Ordinance of the Council of the City of Palo Alto Adding Chapter 9.17 (Personal Cultivation of Marijuana) to Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal Code to Prohibit Outdoor Cultivation of Marijuana and Informational Update on Proposition 64 and Finding the Amendment Exempt from Review Under the California Environmental Quality Act (CEQA) Pursuant to State CEQA Guidelines Section 15061(b)(3) From: City Manager Lead Department: City Attorney Recommendation Staff recommends that Council consider whether to adopt the attached emergency ordinance (Attachment A) adding Chapter 9.17 (Personal Cultivation of Marijuana) to Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal Code to prohibit outdoor marijuana cultivation in Palo Alto, effective immediately, and finding the amendment necessary exempt from review under the California Environmental Quality Act. This action is consistent with prior Council policy. Executive Summary The proposed emergency ordinance is consistent with the City’s existing land use policy adopted on June 9, 1997, as an uncodified urgency Ordinance No. 4422, prohibiting the establishment and operation of medical marijuana dispensaries under the City’s zoning ordinance (Attachment B). The proposed ordinance would expressly prohibit outdoor marijuana cultivation, effective immediately. Proposition 64 (Attachment C), titled the Control, Regulate, and Tax Adult Use of Marijuana (“AUMA”), is before California voters for approval on November 8, 2016. If approved, the AUMA will authorize nonmedical use of marijuana by individuals age 21 and older, and create a state licensing and regulatory system for commercial cultivation, testing, manufacture and distribution of nonmedical marijuana and marijuana products. City of Palo Alto Page 2 Under the AUMA, cities will retain the ability to regulate, and in most cases ban, activities legalized by the AUMA. Commercial activities will not be authorized until state licenses are issued. State licenses will likely not be issued until January 2018, giving cities ample time to study potential effects and enact any appropriate local regulations. Personal cultivation of marijuana, however, would become immediately lawful upon passage of the AUMA. While cities will retain the ability to regulate cultivation any time after adoption of the AUMA, cities that are concerned about the potential effects of personal cultivation may wish to ban certain activities, particularly outdoor cultivation, before the AUMA is approved by voters, pending further study and potential amendment of regulations at a later date. Doing so will maintain the status quo and avoid confusion in the community, pending further study and consideration of all of the issues. The attached emergency ordinance would expressly prohibit outdoor marijuana cultivation, effective immediately. The ordinance requires 8 votes for approval, and is effective until repealed or amended. Council retains the authority to amend or repeal the ordinance at any time. Background On November 8, 2016 the AUMA will come before voters, and, if passed, will legalize the use, sale, and consumption of nonmedical marijuana by persons 21 years of age and older. Effective upon passage, the AUMA will make it legal for adults to: (1) smoke or ingest marijuana or marijuana products; (2) possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older, without any compensation, 28.5 grams of marijuana, or 8 grams of concentrated marijuana, including as contained in marijuana products; and (3) possess, plant, cultivate, harvest, dry or process up to six living marijuana plants for personal use. Where previous legislation related to medical marijuana created a dual state and local licensing scheme, the AUMA gives the state sole responsibility for regulating nonmedical marijuana businesses. The state will have until January 1, 2018 to begin issuing licenses and permits to those businesses recognized by the AUMA. Even so, a state license cannot be issued to an applicant whose operations would violate the provisions of any local ordinance or regulation. It will be the state’s onus to ensure an applicant is compliant with local law. Local governments retain the authority regulate personal cultivation of nonmedical marijuana. The AUMA provides that local governments can reasonably regulate, but cannot ban personal indoor cultivation of up to six living marijuana plants within the person’s private residence. In contrast, local governments are allowed to regulate or ban personal outdoor cultivation operations. Such a ban cannot inhibit residents from growing the maximum number of plants in a locked and enclosed greenhouse, however. In the absence of a local regulation or ban, the AUMA does not limit the number of plants that may be grown outside. City of Palo Alto Page 3 While the AUMA does not require cities to enact a regulatory scheme or ban by a certain date, it is assumed that should the legislation pass and a city does not have a ban or regulatory scheme governing personal cultivation by November 9, 2016, a person will be able to cultivate marijuana for personal use without limitation, except those listed in the AUMA. A detailed explanation of the AUMA and local regulatory authority has been prepared by the California League of Cities, and is attached to this staff report. (Attachment D) Discussion On June 9, 1997, the Council adopted uncodified urgency Ordinance No. 4422, prohibiting the establishment and operation of medical marijuana dispensaries under the City’s zoning ordinance (Attachment B). This urgency ordinance was drafted to address medical marijuana dispensaries, and does not include an express prohibition against marijuana cultivation or nonmedical marijuana activities, generally. While under principles of permissive zoning, marijuana cultivation is presumptively prohibited in Palo Alto because it is not listed as a permitted activity in the City’s zoning code, the AUMA does not contain the same protective language as prior medical marijuana legislation with respect to permissive zoning. Moreover, the statute’s language seems to anticipate that cities will adopt ordinances prohibiting the activities they wish to keep out. To avoid confusion and preserve local control, staff recommends adding an express prohibition of all outdoor marijuana cultivation. As an emergency ordinance, pursuant to Palo Alto Municipal Code 2.04.270(d), the proposed ordinance prohibiting outdoor cultivation will require 8 of 9 City Council votes to pass. Timeline If passed by voters, the AUMA will allow personal cultivation of marijuana as early as November 9, 2016. To maintain the status quo and avoid confusion pending further consideration of the issues, staff recommends that the City Council adopt the proposed emergency ordinance prohibiting outdoor marijuana cultivation. The attached ordinance is an emergency ordinance that takes effect immediately upon adoption. It requires 8 votes for adoption. Further, under the AUMA, marijuana businesses can only commence operations after receiving a state license that confirms the proposed business is in compliance with the relevant local laws. It is likely that the State will not begin issuing marijuana commercial business licenses until January 1, 2018. Accordingly, staff recommends that any zoning code amendments or regulatory laws related to commercial marijuana businesses be developed and adopted at a later date, but prior to January 1, 2018. City of Palo Alto Page 4 Resource Impact The staff does not anticipate a resource impact associated with this Ordinance. Any future efforts to develop an alternate approach to regulating commercial marijuana businesses or personal cultivation would require staff time and could result in zoning or licensing provisions requiring additional staff resources. Environmental Review This proposed ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this proposed ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment in that this proposed ordinance simply codifies an existing prohibition. Attachments: Attachment A - Emergency Ordinance of the Council of the City of Palo Alto Adding Chapter 9.17 (Personal Cultivation of Marijuana) to Title 9 of the Palo Alto Municipal Code (PDF) Attachment B – Ordinance No. 4422 (PDF) Attachment C – Text of Proposition 64 (PDF) Attachment D – League of California Cities Memorandum Re: Proposition 64 (PDF) NOT YET APPROVED 1 161011 sh Subject Matter File/Marijuana/ORD - Personal Marijuana Cultivation Ordinance No. ____ Emergency Ordinance of the Council of the City of Palo Alto Adding Chapter 9.17 (Personal Cultivation of Marijuana) to Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal Code to Prohibit Outdoor Cultivation of Marijuana The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Recitals. The Council of the City of Palo Alto finds and declares as follows: A. Following passage of Proposition 215, entitled the “Compassionate Use Act of 1996,” California courts have held that there is a limited exception from criminal liability for seriously ill persons who are in need of medical marijuana for specified medical purposes and who obtain and use medical marijuana under limited, specified circumstances. B. On June 9, 1997, the Palo Alto City Council adopted uncodified urgency Ordinance No. 4422 declaring the establishment and operation of medical marijuana dispensaries to be prohibited use under the City’s zoning ordinance. C. On November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) will come before California voters as Proposition 64. If passed, the AUMA will legalize the use, sale, and consumption of nonmedical marijuana by persons 21 years of age and older. D. In addition, the AUMA will create a state regulatory and licensing system governing commercialization of nonmedical marijuana, but will preserve local governments’ authority to regulate personal cultivation. Specifically, local governments may prohibit personal outdoor cultivation and reasonably regulate personal indoor cultivation of nonmedical marijuana. E. Neither medical nor nonmedical marijuana cultivation are listed in the City’s zoning code as permitted or conditionally-permitted land uses and are, therefore, prohibited under the principles of permissive zoning provisions. (City of Corona v. Naulls (2008) 166 Cal.App.4th 418, 431-433). Nevertheless, the AUMA does not expressly recognize the application of permissive zoning principles like previous medical marijuana legislation. F. In order to protect the public health, safety, and welfare, the City Council desires to add Palo Alto Municipal Code Chapter 9.17 to prohibit, in express terms, all outdoor cultivation of medical and nonmedical marijuana. G. This Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment in that this Ordinance simply clarified existing local regulations. NOT YET APPROVED 2 161011 sh Subject Matter File/Marijuana/ORD - Personal Marijuana Cultivation SECTION 2. Chapter 9.17 (Personal Cultivation of Marijuana) is hereby added to Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal Code to read as follows: Chapter 9.17 PERSONAL CULTIVATION OF MARIJUANA 9.17.010 Definitions. (a) “Marijuana” means all parts of the plant Cannabis sativa L., Cannabis indica, or Cannabis ruderalis whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. (b) “Marijuana cultivation” shall have the same meaning as “cultivation” set forth in California Business and Professions Code Section 19300.5(k) as that section may be amended from time to time. 9.17.020 Prohibition. Outdoor marijuana cultivation is prohibited in the City of Palo Alto. 9.17.030 Enforcement. The City may enforce this section in any manner permitted by law. The violation of this Chapter shall be and is hereby declared to be a public nuisance and shall, at the discretion of the City, create a cause of action for injunctive relief. SECTION 3. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this ordinance are hereby declared to be severable. SECTION 4. CEQA. The City Council finds and determines that this Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment in that this Ordinance simply clarifies existing local regulations. // // // NOT YET APPROVED 3 161011 sh Subject Matter File/Marijuana/ORD - Personal Marijuana Cultivation SECTION 5. Effective Date. The City Council finds and declares that, for the reasons provided in Section 1, this Ordinance is necessary as an emergency measure for preserving the public peace, health, or safety. Pursuant to Palo Alto Municipal Code section 2.04.270(d), this Ordinance shall take full force and effect immediately upon adoption by a vote of four-fifths of the council members present. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Principal Attorney City Manager ... ---------------------------.~~-~ • • E. It is necessary for the preservation of the public peace, health and safety to enact as an urgency measure an ordinance, declaratory of existing law, prohibiting the establishment and operation of medical marijuana dispensaries. The reasons for the urgency are as follows: 1. The City has in recent weeks received inquiries about establishment of a medical marijuana dispensary in the City. 2. Such inquiries should be taken seriously, inasmuch as nearby communities have also received such requests and experienced high interest by persons wishing to establish such facilities. The City of San Jose, for example, has recently obtained a court order requiring closure of an illegal medical marijuana dispensary, and is processing permit requests for two other facilities for which applicatiuns were filed under a recently -enacted ordinance regulating medical marijuana dispensaries. 3. While the City's zoning ordinan.ce (Title 18, Palo Alto Municipal Code~ allows various kinds of medical and related uses as perm~tted or conditional uses in specified zoning districts, it does net provide for the medicinal distribution of marijuana. Because cultivat.ion and possession of marijuana in California was illegal until passage of Proposition 215, facilities dispensing medical marijuana are not an enumerated use under the zoning ordinance. 4. Experience in other communkCles suggests th~t a ntunber of regulat.ory issues should be carefully considered prior to allowing establishment of medical marijuana dispensaries in order to prevent crime and ensure compatibility with other uses, including resident ial uses and schools. These issues include security requirements I appropriate zoning designations and development standards, and monitoring and reporting requirements. Study of these issues and development of recommendations will require prioritization with other projects currently being undertaken by the Police Department and the Department of Planning and Community Environment. 5. Because dispensation of medical marijuana is not an activity currently addressed in the MUnicipal Code, the City can expect to experience enfurcement problems if persons attemp~ to dispense medical ~arijuana in Palo Altol in the absence of regulations specifically governing such uses. In light of the expressed interest in establishing a medical marijuana dispensary in Palo Alto, and the time required to study and develop appropriate regulations, an urgency ordinance is necessary to provide a clear statement of existing law and to protect the public peace, health and safety. SECTION 2 . Def initions . F(;r the purposes of this Ordinance, the following definition shall apply: 2 970603bck: OOBOS20 178 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 63 CONTINuED of California or the Supreme Court of the United States. The reasonable fees and costs of defending the action shall be a charge on funds appropriated to the Department of Justice, which shall be satisfied promptly. PROPOSITION 64 This initiative measure is submitted to the people in accordance with the provisions of Section 8 of Article II of the California Constitution. This initiative measure amends, repeals, and adds sections to the Business and Professions Code, the Food and Agricultural Code, the Health and Safety Code, the Labor Code, the Revenue and Taxation Code, and the Water Code; therefore, existing provisions proposed to be deleted are printed in strikeout type and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Title. This measure shall be known and may be cited as the Control, Regulate and Tax Adult Use of Marijuana Act (“the Adult Use of Marijuana Act”). SEC. 2. Findings and Declarations. A. Currently in California, nonmedical marijuana use is unregulated, untaxed, and occurs without any consumer or environmental protections. The Control, Regulate and Tax Adult Use of Marijuana Act will legalize marijuana for those over 21 years old, protect children, and establish laws to regulate marijuana cultivation, distribution, sale and use, and will protect Californians and the environment from potential dangers. It establishes the Bureau of Marijuana Control within the Department of Consumer Affairs to regulate and license the marijuana industry. B. Marijuana is currently legal in our state for medical use and illegal for nonmedical use. Abuse of the medical marijuana system in California has long been widespread, but recent bipartisan legislation signed by Governor Jerry Brown is establishing a comprehensive regulatory scheme for medical marijuana. The Control, Regulate and Tax Adult Use of Marijuana Act (hereafter called the Adult Use of Marijuana Act) will consolidate and streamline regulation and taxation for both nonmedical and medical marijuana. C. Currently, marijuana growth and sale is not being taxed by the State of California, which means our state is missing out on hundreds of millions of dollars in potential tax revenue every year. The Adult Use of Marijuana Act will tax both the growth and sale of marijuana to generate hundreds of millions of dollars annually. The revenues will cover the cost of administering the new law and will provide funds to: invest in public health programs that educate youth to prevent and treat serious substance abuse; train local law enforcement to enforce the new law with a focus on DUI enforcement; invest in communities to reduce the illicit market and create job opportunities; and provide for environmental cleanup and restoration of public lands damaged by illegal marijuana cultivation. D. Currently, children under the age of 18 can just as easily purchase marijuana on the black market as adults can. By legalizing marijuana, the Adult Use of Marijuana Act will incapacitate the black market, and move marijuana purchases into a legal structure with strict safeguards against children accessing it. The Adult Use of Marijuana Act prohibits the sale of nonmedical marijuana to those exceeding one thousand dollars ($1,000), or by both that imprisonment and fine. The court, on forms prescribed by the Department of Justice, shall notify the department of persons subject to this section. However, the prohibition in this section may be reduced, eliminated, or conditioned as provided in Section 29855 or 29860. SEC. 12. Interim Standards. Notwithstanding the Administrative Procedure Act (APA), and in order to facilitate the prompt implementation of the Safety for All Act of 2016, the California Department of Justice may adopt interim standards without compliance with the procedures set forth in the APA. The interim standards shall remain in effect for no more than two years, and may be earlier superseded by regulations adopted pursuant to the APA. “Interim standards” means temporary standards that perform the same function as “emergency regulations” under the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), except that in order to provide greater opportunity for public comment on permanent regulations, the interim standards may remain in force for two years rather than 180 days. SEC. 13. Amending the Measure. This Act shall be broadly construed to accomplish its purposes. The provisions of this measure may be amended by a vote of 55 percent of the members of each house of the Legislature and signed by the Governor so long as such amendments are consistent with and further the intent of this Act. SEC. 14. Conflicting Measures. (a) In the event that this measure and another measure on the same subject matter, including but not limited to the regulation of the sale or possession of firearms or ammunition, shall appear on the same statewide ballot, the provisions of the other measure or measures shall be deemed to be in conflict with this measure. In the event that this measure receives a greater number of affirmative votes than a measure deemed to be in conflict with it, the provisions of this measure shall prevail in their entirety, and the other measure or measures shall be null and void. (b) If this measure is approved by voters but superseded by law by any other conflicting measure approved by voters at the same election, and the conflicting ballot measure is later held invalid, this measure shall be self-executing and given full force and effect. SEC. 15. Severability. If any provision of this measure, or part of this measure, or the application of any provision or part to any person or circumstance, is for any reason held to be invalid or unconstitutional, the remaining provisions, or applications of provisions, shall not be affected, but shall remain in full force and effect, and to this end the provisions of this measure are severable. SEC. 16. Proponent Standing. Notwithstanding any other provision of law, if the State, government agency, or any of its officials fail to defend the constitutionality of this Act, following its approval by the voters, any other government employer, the proponent, or in their absence, any citizen of this State shall have the authority to intervene in any court action challenging the constitutionality of this Act for the purpose of defending its constitutionality, whether such action is in trial court, on appeal, or on discretionary review by the Supreme Court 63 64 Text of Proposed Laws | 179 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED cultivation licenses for the first five years. The Adult Use of Marijuana Act also protects consumers and small businesses by imposing strict anti-monopoly restrictions for businesses that participate in the nonmedical marijuana industry. SEC. 3. Purpose and Intent. The purpose of the Adult Use of Marijuana Act is to establish a comprehensive system to legalize, control and regulate the cultivation, processing, manufacture, distribution, testing, and sale of nonmedical marijuana, including marijuana products, for use by adults 21 years and older, and to tax the commercial growth and retail sale of marijuana. It is the intent of the people in enacting this act to accomplish the following: (a) Take nonmedical marijuana production and sales out of the hands of the illegal market and bring them under a regulatory structure that prevents access by minors and protects public safety, public health, and the environment. (b) Strictly control the cultivation, processing, manufacture, distribution, testing and sale of nonmedical marijuana through a system of state licensing, regulation, and enforcement. (c) Allow local governments to enforce state laws and regulations for nonmedical marijuana businesses and enact additional local requirements for nonmedical marijuana businesses, but not require that they do so for a nonmedical marijuana business to be issued a state license and be legal under state law. (d) Allow local governments to ban nonmedical marijuana businesses as set forth in this act. (e) Require track and trace management procedures to track nonmedical marijuana from cultivation to sale. (f) Require nonmedical marijuana to be comprehensively tested by independent testing services for the presence of contaminants, including mold and pesticides, before it can be sold by licensed businesses. (g) Require nonmedical marijuana sold by licensed businesses to be packaged in child-resistant containers and be labeled so that consumers are fully informed about potency and the effects of ingesting nonmedical marijuana. (h) Require licensed nonmedical marijuana businesses to follow strict environmental and product safety standards as a condition of maintaining their license. (i) Prohibit the sale of nonmedical marijuana by businesses that also sell alcohol or tobacco. (j) Prohibit the marketing and advertising of nonmedical marijuana to persons younger than 21 years old or near schools or other places where children are present. (k) Strengthen the state’s existing medical marijuana system by requiring patients to obtain by January 1, 2018, a new recommendation from their physician that meets the strict standards signed into law by the Governor in 2015, and by providing new privacy protections for patients who obtain medical marijuana identification cards as set forth in this act. (l) Permit adults 21 years and older to use, possess, purchase and grow nonmedical marijuana within defined limits for use by adults 21 years and older as set forth in this act. (m) Allow local governments to reasonably regulate the cultivation of nonmedical marijuana for personal use by adults 21 years and older through zoning and other local under 21 years old, and provides new resources to educate youth against drug abuse and train local law enforcement to enforce the new law. It bars marijuana businesses from being located within 600 feet of schools and other areas where children congregate. It establishes mandatory and strict packaging and labeling requirements for marijuana and marijuana products. And it mandates that marijuana and marijuana products cannot be advertised or marketed towards children. E. There are currently no laws governing adult use marijuana businesses to ensure that they operate in accordance with existing California laws. Adult use of marijuana may only be accessed from the unregulated illicit market. The Adult Use of Marijuana Act sets up a comprehensive system governing marijuana businesses at the state level and safeguards local control, allowing local governments to regulate marijuana-related activities, to subject marijuana businesses to zoning and permitting requirements, and to ban marijuana businesses by a vote of the people within a locality. F. Currently, illegal marijuana growers steal or divert millions of gallons of water without any accountability. The Adult Use of Marijuana Act will create strict environmental regulations to ensure that the marijuana is grown efficiently and legally, to regulate the use of pesticides, to prevent wasting water, and to minimize water usage. The Adult Use of Marijuana Act will crack down on the illegal use of water and punish bad actors, while providing funds to restore lands that have been damaged by illegal marijuana grows. If a business does not demonstrate they are in full compliance with the applicable water usage and environmental laws, they will have their license revoked. G. Currently, the courts are clogged with cases of non-violent drug offenses. By legalizing marijuana, the Adult Use of Marijuana Act will alleviate pressure on the courts, but continue to allow prosecutors to charge the most serious marijuana-related offenses as felonies, while reducing the penalties for minor marijuana-related offenses as set forth in the act. H. By bringing marijuana into a regulated and legitimate market, the Adult Use of Marijuana Act creates a transparent and accountable system. This will help police crackdown on the underground black market that currently benefits violent drug cartels and transnational gangs, which are making billions from marijuana trafficking and jeopardizing public safety. I. The Adult Use of Marijuana Act creates a comprehensive regulatory structure in which every marijuana business is overseen by a specialized agency with relevant expertise. The Bureau of Marijuana Control, housed in the Department of Consumer Affairs, will oversee the whole system and ensure a smooth transition to the legal market, with licenses issued beginning in 2018. The Department of Consumer Affairs will also license and oversee marijuana retailers, distributors, and microbusinesses. The Department of Food and Agriculture will license and oversee marijuana cultivation, ensuring it is environmentally safe. The State Department of Public Health will license and oversee manufacturing and testing, ensuring consumers receive a safe product. The State Board of Equalization will collect the special marijuana taxes, and the Controller will allocate the revenue to administer the new law and provide the funds to critical investments. J. The Adult Use of Marijuana Act ensures the nonmedical marijuana industry in California will be built around small and medium sized businesses by prohibiting large-scale 64 180 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (b) The weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other product. SEC. 4.2. Section 11018.1 is added to the Health and Safety Code, to read: 11018.1. Marijuana Products. “Marijuana products” means marijuana that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing marijuana or concentrated cannabis and other ingredients. SEC. 4.3. Section 11018.2 is added to the Health and Safety Code, to read: 11018.2. Marijuana Accessories. “Marijuana accessories” means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana or marijuana products into the human body. SEC. 4.4. Section 11362.1 is added to the Health and Safety Code, to read: 11362.1. (a) Subject to Sections 11362.2, 11362.3, 11362.4, and 11362.45, but notwithstanding any other provision of law, it shall be lawful under state and local law, and shall not be a violation of state or local law, for persons 21 years of age or older to: (1) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than 28.5 grams of marijuana not in the form of concentrated cannabis; (2) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than eight grams of marijuana in the form of concentrated cannabis, including as contained in marijuana products; (3) Possess, plant, cultivate, harvest, dry, or process not more than six living marijuana plants and possess the marijuana produced by the plants; (4) Smoke or ingest marijuana or marijuana products; and (5) Possess, transport, purchase, obtain, use, manufacture, or give away marijuana accessories to persons 21 years of age or older without any compensation whatsoever. (b) Paragraph (5) of subdivision (a) is intended to meet the requirements of subsection (f) of Section 863 of Title 21 of the United States Code (21 U.S.C. Sec. 863(f)) by authorizing, under state law, any person in compliance with this section to manufacture, possess, or distribute marijuana accessories. (c) Marijuana and marijuana products involved in any way with conduct deemed lawful by this section are not contraband nor subject to seizure, and no conduct deemed lawful by this section shall constitute the basis for detention, search, or arrest. SEC. 4.5. Section 11362.2 is added to the Health and Safety Code, to read: laws, and only to ban outdoor cultivation as set forth in this act. (n) Deny access to marijuana by persons younger than 21 years old who are not medical marijuana patients. (o) Prohibit the consumption of marijuana in a public place unlicensed for such use, including near K–12 schools and other areas where children are present. (p) Maintain existing laws making it unlawful to operate a car or other vehicle used for transportation while impaired by marijuana. (q) Prohibit the cultivation of marijuana on public lands or while trespassing on private lands. (r) Allow public and private employers to enact and enforce workplace policies pertaining to marijuana. (s) Tax the growth and sale of marijuana in a way that drives out the illicit market for marijuana and discourages use by minors, and abuse by adults. (t) Generate hundreds of millions of dollars in new state revenue annually for restoring and repairing the environment, youth treatment and prevention, community investment, and law enforcement. (u) Prevent illegal production or distribution of marijuana. (v) Prevent the illegal diversion of marijuana from California to other states or countries or to the illegal market. (w) Preserve scarce law enforcement resources to prevent and prosecute violent crime. (x) Reduce barriers to entry into the legal, regulated market. (y) Require minors who commit marijuana-related offenses to complete drug prevention education or counseling and community service. (z) Authorize courts to resentence persons who are currently serving a sentence for offenses for which the penalty is reduced by the act, so long as the person does not pose a risk to public safety, and to redesignate or dismiss such offenses from the criminal records of persons who have completed their sentences as set forth in this act. (aa) Allow industrial hemp to be grown as an agricultural product, and for agricultural or academic research, and regulated separately from the strains of cannabis with higher delta-9 tetrahydrocannabinol concentrations. SEC. 4. Personal Use. SEC. 4.1. Section 11018 of the Health and Safety Code is amended to read: 11018. Marijuana. “Marijuana” means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination: (a) Industrial hemp, as defined in Section 11018.5; or 64 Text of Proposed Laws | 181 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (4) Possess an open container or open package of marijuana or marijuana products while driving, operating, or riding in the passenger seat or compartment of a motor vehicle, boat, vessel, aircraft, or other vehicle used for transportation. (5) Possess, smoke or ingest marijuana or marijuana products in or upon the grounds of a school, day care center, or youth center while children are present. (6) Manufacture concentrated cannabis using a volatile solvent, unless done in accordance with a license under Chapter 3.5 (commencing with Section 19300) of Division 8 of, or Division 10 of, the Business and Professions Code. (7) Smoke or ingest marijuana or marijuana products while driving, operating a motor vehicle, boat, vessel, aircraft, or other vehicle used for transportation. (8) Smoke or ingest marijuana or marijuana products while riding in the passenger seat or compartment of a motor vehicle, boat, vessel, aircraft, or other vehicle used for transportation except as permitted on a motor vehicle, boat, vessel, aircraft, or other vehicle used for transportation that is operated in accordance with Section 26200 of the Business and Professions Code and while no persons under the age of 21 years are present. (b) For purposes of this section, “day care center” has the same meaning as in Section 1596.76. (c) For purposes of this section, “smoke” means to inhale, exhale, burn, or carry any lighted or heated device or pipe, or any other lighted or heated marijuana or marijuana product intended for inhalation, whether natural or synthetic, in any manner or in any form. “Smoke” includes the use of an electronic smoking device that creates an aerosol or vapor, in any manner or in any form, or the use of any oral smoking device for the purpose of circumventing the prohibition of smoking in a place. (d) For purposes of this section, “volatile solvent” means volatile organic compounds, including: (1) explosive gases, such as Butane, Propane, Xylene, Styrene, Gasoline, Kerosene, 02 or H2; and (2) dangerous poisons, toxins, or carcinogens, such as Methanol, Iso-propyl Alcohol, Methylene Chloride, Acetone, Benzene, Toluene, and Tri-chloro-ethylene. (e) For purposes of this section, “youth center” has the same meaning as in Section 11353.1. (f) Nothing in this section shall be construed or interpreted to amend, repeal, affect, restrict, or preempt laws pertaining to the Compassionate Use Act of 1996. SEC. 4.7. Section 11362.4 is added to the Health and Safety Code, to read: 11362.4. (a) A person who engages in the conduct described in paragraph (1) of subdivision (a) of Section 11362.3 is guilty of an infraction punishable by no more than a one hundred dollar ($100) fine; provided, however, that persons under the age of 18 shall instead be required to complete four hours of a drug education program or counseling, and up to 10 hours of community service, over a period not to exceed 60 days once the drug education program or counseling and community service opportunity are made available to the person. (b) A person who engages in the conduct described in paragraphs (2) through (4) of subdivision (a) of Section 11362.3 shall be guilty of an infraction punishable by no more than a two-hundred-fifty-dollar ($250) fine, 11362.2. (a) Personal cultivation of marijuana under paragraph (3) of subdivision (a) of Section 11362.1 is subject to the following restrictions: (1) A person shall plant, cultivate, harvest, dry, or process plants in accordance with local ordinances, if any, adopted in accordance with subdivision (b). (2) The living plants and any marijuana produced by the plants in excess of 28.5 grams are kept within the person’s private residence, or upon the grounds of that private residence (e.g., in an outdoor garden area), are in a locked space, and are not visible by normal unaided vision from a public place. (3) Not more than six living plants may be planted, cultivated, harvested, dried, or processed within a single private residence, or upon the grounds of that private residence, at one time. (b) (1) A city, county, or city and county may enact and enforce reasonable regulations to reasonably regulate the actions and conduct in paragraph (3) of subdivision (a) of Section 11362.1. (2) Notwithstanding paragraph (1), no city, county, or city and county may completely prohibit persons engaging in the actions and conduct under paragraph (3) of subdivision (a) of Section 11362.1 inside a private residence, or inside an accessory structure to a private residence located upon the grounds of a private residence that is fully enclosed and secure. (3) Notwithstanding paragraph (3) of subdivision (a) of Section 11362.1, a city, county, or city and county may completely prohibit persons from engaging in actions and conduct under paragraph (3) of subdivision (a) of Section 11362.1 outdoors upon the grounds of a private residence. (4) Paragraph (3) shall become inoperative upon a determination by the California Attorney General that nonmedical use of marijuana is lawful in the State of California under federal law, and an act taken by a city, county, or city and county under paragraph (3) shall be deemed repealed upon the date of such determination by the Attorney General. (5) For purposes of this section, “private residence” means a house, an apartment unit, a mobile home, or other similar dwelling. SEC. 4.6. Section 11362.3 is added to the Health and Safety Code, to read: 11362.3. (a) Nothing in Section 11362.1 shall be construed to permit any person to: (1) Smoke or ingest marijuana or marijuana products in any public place, except in accordance with Section 26200 of the Business and Professions Code. (2) Smoke marijuana or marijuana products in a location where smoking tobacco is prohibited. (3) Smoke marijuana or marijuana products within 1,000 feet of a school, day care center, or youth center while children are present at such a school, day care center, or youth center, except in or upon the grounds of a private residence or in accordance with Section 26200 of, or Chapter 3.5 (commencing with Section 19300) of Division 8 of, the Business and Professions Code and only if such smoking is not detectable by others on the grounds of such a school, day care center, or youth center while children are present. 64 182 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (e) Laws providing that it would constitute negligence or professional malpractice to undertake any task while impaired from smoking or ingesting marijuana or marijuana products. (f) The rights and obligations of public and private employers to maintain a drug and alcohol free workplace or require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or growth of marijuana in the workplace, or affect the ability of employers to have policies prohibiting the use of marijuana by employees and prospective employees, or prevent employers from complying with state or federal law. (g) The ability of a state or local government agency to prohibit or restrict any of the actions or conduct otherwise permitted under Section 11362.1 within a building owned, leased, or occupied by the state or local government agency. (h) The ability of an individual or private entity to prohibit or restrict any of the actions or conduct otherwise permitted under Section 11362.1 on the individual’s or entity’s privately owned property. (i) Laws pertaining to the Compassionate Use Act of 1996. SEC. 5. Use of Marijuana for Medical Purposes. SEC. 5.1. Section 11362.712 is added to the Health and Safety Code, to read: 11362.712. (a) Commencing on January 1, 2018, a qualified patient must possess a physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code. Failure to comply with this requirement shall not, however, affect any of the protections provided to patients or their primary caregivers by Section 11362.5. (b) A county health department or the county’s designee shall develop protocols to ensure that, commencing upon January 1, 2018, all identification cards issued pursuant to Section 11362.71 are supported by a physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code. SEC. 5.2. Section 11362.713 is added to the Health and Safety Code, to read: 11362.713. (a) Information identifying the names, addresses, or social security numbers of patients, their medical conditions, or the names of their primary caregivers, received and contained in the records of the State Department of Public Health and by any county public health department are hereby deemed “medical information” within the meaning of the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1 of the Civil Code) and shall not be disclosed by the department or by any county public health department except in accordance with the restrictions on disclosure of individually identifiable information under the Confidentiality of Medical Information Act. (b) Within 24 hours of receiving any request to disclose the name, address, or social security number of a patient, their medical condition, or the name of their primary caregiver, the State Department of Public Health or any county public health agency shall contact the patient and inform the patient of the request and if the request was made in writing, a copy of the request. unless such activity is otherwise permitted by state and local law; provided, however, that persons under the age of 18 shall instead be required to complete four hours of drug education or counseling, and up to 20 hours of community service, over a period not to exceed 90 days once the drug education program or counseling and community service opportunity are made available to the person. (c) A person who engages in the conduct described in paragraph (5) of subdivision (a) of Section 11362.3 shall be subject to the same punishment as provided under subdivision (c) or (d) of Section 11357. (d) A person who engages in the conduct described in paragraph (6) of subdivision (a) of Section 11362.3 shall be subject to punishment under Section 11379.6. (e) A person who violates the restrictions in subdivision (a) of Section 11362.2 is guilty of an infraction punishable by no more than a two-hundred-fifty-dollar ($250) fine. (f) Notwithstanding subdivision (e), a person under the age of 18 who violates the restrictions in subdivision (a) of Section 11362.2 shall be punished under subdivision (a) of Section 11358. (g) (1) The drug education program or counseling hours required by this section shall be mandatory unless the court makes a finding that such a program or counseling is unnecessary for the person or that a drug education program or counseling is unavailable. (2) The drug education program required by this section for persons under the age of 18 must be free to participants and provide at least four hours of group discussion or instruction based on science and evidence-based principles and practices specific to the use and abuse of marijuana and other controlled substances. (h) Upon a finding of good cause, the court may extend the time for a person to complete the drug education or counseling, and community service required under this section. SEC. 4.8. Section 11362.45 is added to the Health and Safety Code, to read: 11362.45. Nothing in Section 11362.1 shall be construed or interpreted to amend, repeal, affect, restrict, or preempt: (a) Laws making it unlawful to drive or operate a vehicle, boat, vessel, or aircraft, while smoking, ingesting, or impaired by, marijuana or marijuana products, including, but not limited to, subdivision (e) of Section 23152 of the Vehicle Code, or the penalties prescribed for violating those laws. (b) Laws prohibiting the sale, administering, furnishing, or giving away of marijuana, marijuana products, or marijuana accessories, or the offering to sell, administer, furnish, or give away marijuana, marijuana products, or marijuana accessories to a person younger than 21 years of age. (c) Laws prohibiting a person younger than 21 years of age from engaging in any of the actions or conduct otherwise permitted under Section 11362.1. (d) Laws pertaining to smoking or ingesting marijuana or marijuana products on the grounds of, or within, any facility or institution under the jurisdiction of the Department of Corrections and Rehabilitation or the Division of Juvenile Justice, or on the grounds of, or within, any other facility or institution referenced in Section 4573 of the Penal Code. 64 Text of Proposed Laws | 183 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED SEC. 5.5. Section 11362.85 is added to the Health and Safety Code, to read: 11362.85. Upon a determination by the California Attorney General that the federal schedule of controlled substances has been amended to reclassify or declassify marijuana, the Legislature may amend or repeal the provisions of the Health and Safety Code, as necessary, to conform state law to such changes in federal law. SEC. 6. Marijuana Regulation and Safety. SEC. 6.1. Division 10 (commencing with Section 26000) is added to the Business and Professions Code, to read: DIVISION 10. MARIJUANA Chapter 1. General provisions and definitions 26000. (a) The purpose and intent of this division is to establish a comprehensive system to control and regulate the cultivation, distribution, transport, storage, manufacturing, processing, and sale of nonmedical marijuana and marijuana products for adults 21 years of age and over. (b) In the furtherance of subdivision (a), this division expands the power and duties of the existing state agencies responsible for controlling and regulating the medical cannabis industry under Chapter 3.5 (commencing with Section 19300) of Division 8 to include the power and duty to control and regulate the commercial nonmedical marijuana industry. (c) The Legislature may, by majority vote, enact laws to implement this division, provided such laws are consistent with the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act. 26001. For purposes of this division, the following definitions shall apply: (a) “Applicant” means the following: (1) The owner or owners of a proposed licensee. “Owner” means all persons having (A) an aggregate ownership interest (other than a security interest, lien, or encumbrance) of 20 percent or more in the licensee and (B) the power to direct or cause to be directed, the management or control of the licensee. (2) If the applicant is a publicly traded company, “owner” includes the chief executive officer and any member of the board of directors and any person or entity with an aggregate ownership interest in the company of 20 percent or more. If the applicant is a nonprofit entity, “owner” means both the chief executive officer and any member of the board of directors. (b) “Bureau” means the Bureau of Marijuana Control within the Department of Consumer Affairs. (c) “Child resistant” means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly. (d) “Commercial marijuana activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transportation, distribution, delivery or sale of marijuana and marijuana products as provided for in this division. (e) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana. (c) Notwithstanding Section 56.10 of the Civil Code, neither the State Department of Public Health, nor any county public health agency, shall disclose, nor shall they be ordered by agency or court to disclose, the names, addresses, or social security numbers of patients, their medical conditions, or the names of their primary caregivers, sooner than the 10th day after which the patient whose records are sought to be disclosed has been contacted. (d) No identification card application system or database used or maintained by the State Department of Public Health or by any county department of public health or the county’s designee as provided in Section 11362.71 shall contain any personal information of any qualified patient, including, but not limited to, the patient’s name, address, social security number, medical conditions, or the names of their primary caregivers. Such an application system or database may only contain a unique user identification number, and when that number is entered, the only information that may be provided is whether the card is valid or invalid. SEC. 5.3. Section 11362.755 of the Health and Safety Code is amended to read: 11362.755. (a) The department shall establish application and renewal fees for persons seeking to obtain or renew identification cards that are sufficient to cover the expenses incurred by the department, including the startup cost, the cost of reduced fees for Medi-Cal beneficiaries in accordance with subdivision (b), the cost of identifying and developing a cost-effective Internet Web-based system, and the cost of maintaining the 24-hour toll-free telephone number. Each county health department or the county’s designee may charge an additional a fee for all costs incurred by the county or the county’s designee for administering the program pursuant to this article. (b) In no event shall the amount of the fee charged by a county health department exceed one hundred dollars ($100) per application or renewal. (b) (c) Upon satisfactory proof of participation and eligibility in the Medi-Cal program, a Medi-Cal beneficiary shall receive a 50 percent reduction in the fees established pursuant to this section. (d) Upon satisfactory proof that a qualified patient, or the legal guardian of a qualified patient under the age of 18, is a medically indigent adult who is eligible for and participates in the County Medical Services Program, the fee established pursuant to this section shall be waived. (e) In the event the fees charged and collected by a county health department are not sufficient to pay for the administrative costs incurred in discharging the county health department’s duties with respect to the mandatory identification card system, the Legislature, upon request by the county health department, shall reimburse the county health department for those reasonable administrative costs in excess of the fees charged and collected by the county health department. SEC. 5.4. Section 11362.84 is added to the Health and Safety Code, to read: 11362.84. The status and conduct of a qualified patient who acts in accordance with the Compassionate Use Act shall not, by itself, be used to restrict or abridge custodial or parental rights to minor children in any action or proceeding under the jurisdiction of family or juvenile court. 64 184 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (w) “Operation” means any act for which licensure is required under the provisions of this division, or any commercial transfer of marijuana or marijuana products. (x) “Package” means any container or receptacle used for holding marijuana or marijuana products. (y) “Person” includes any individual, firm, copartnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. (z) “Purchaser” means the customer who is engaged in a transaction with a licensee for purposes of obtaining marijuana or marijuana products. (aa) “Sell,” “sale,” and “to sell” include any transaction whereby, for any consideration, title to marijuana is transferred from one person to another, and includes the delivery of marijuana or marijuana products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of marijuana or marijuana products by a licensee to the licensee from whom such marijuana or marijuana product was purchased. (bb) “Testing service” means a laboratory, facility, or entity in the state, that offers or performs tests of marijuana or marijuana products, including the equipment provided by such laboratory, facility, or entity, and that is both of the following: (1) Accredited by an accrediting body that is independent from all other persons involved in commercial marijuana activity in the state. (2) Registered with the State Department of Public Health. (cc) “Unique identifier” means an alphanumeric code or designation used for reference to a specific plant on a licensed premises. (dd) “Unreasonably impracticable” means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset, that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent business person. (ee) “Youth center” shall have the same meaning as in Section 11353.1 of the Health and Safety Code. Chapter 2. administration 26010. (a) The Bureau of Medical Marijuana Regulation established in Section 19302 is hereby renamed the Bureau of Marijuana Control. The director shall administer and enforce the provisions of this division in addition to the provisions of Chapter 3.5 (commencing with Section 19300) of Division 8. The director shall have the same power and authority as provided by subdivisions (b) and (c) of Section 19302.1 for purposes of this division. (b) The bureau and the director shall succeed to and are vested with all the duties, powers, purposes, responsibilities, and jurisdiction vested in the Bureau of Medical Marijuana Regulation under Chapter 3.5 (commencing with Section 19300) of Division 8. (c) In addition to the powers, duties, purposes, responsibilities, and jurisdiction referenced in subdivision (b), the bureau shall heretofore have the power, duty, purpose, responsibility, and jurisdiction to regulate commercial marijuana activity as provided in this division. (f) “Customer” means a natural person 21 years of age or over. (g) “Day care center” shall have the same meaning as in Section 1596.76 of the Health and Safety Code. (h) “Delivery” means the commercial transfer of marijuana or marijuana products to a customer. “Delivery” also includes the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed under this division, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of marijuana or marijuana products. (i) “Director” means the Director of the Department of Consumer Affairs. (j) “Distribution” means the procurement, sale, and transport of marijuana and marijuana products between entities licensed pursuant to this division. (k) “Fund” means the Marijuana Control Fund established pursuant to Section 26210. (l) “Kind” means applicable type or designation regarding a particular marijuana variant or marijuana product type, including, but not limited to, strain name or other grower trademark, or growing area designation. (m) “License” means a state license issued under this division. (n) “Licensee” means any person or entity holding a license under this division. (o) “Licensing authority” means the state agency responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee. (p) “Local jurisdiction” means a city, county, or city and county. (q) “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a marijuana product. (r) “Manufacturer” means a person that conducts the production, preparation, propagation, or compounding of marijuana or marijuana products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages marijuana or marijuana products or labels or re-labels its container, that holds a state license pursuant to this division. (s) “Marijuana” has the same meaning as in Section 11018 of the Health and Safety Code, except that it does not include marijuana that is cultivated, processed, transported, distributed, or sold for medical purposes under Chapter 3.5 (commencing with Section 19300) of Division 8. (t) “Marijuana accessories” has the same meaning as in Section 11018.2 of the Health and Safety Code. (u) “Marijuana products” has the same meaning as in Section 11018.1 of the Health and Safety Code, except that it does not include marijuana products manufactured, processed, transported, distributed, or sold for medical purposes under Chapter 3.5 (commencing with Section 19300) of Division 8. (v) “Nursery” means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of marijuana. 64 Text of Proposed Laws | 185 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare. (c) Regulations issued under this division shall be necessary to achieve the purposes of this division, based on best available evidence, and shall mandate only commercially feasible procedures, technology, or other requirements, and shall not unreasonably restrain or inhibit the development of alternative procedures or technology to achieve the same substantive requirements, nor shall such regulations make compliance unreasonably impracticable. 26014. (a) The bureau shall convene an advisory committee to advise the bureau and licensing authorities on the development of standards and regulations pursuant to this division, including best practices and guidelines that protect public health and safety while ensuring a regulated environment for commercial marijuana activity that does not impose such unreasonably impracticable barriers so as to perpetuate, rather than reduce and eliminate, the illicit market for marijuana. (b) The advisory committee members shall include, but not be limited to, representatives of the marijuana industry, representatives of labor organizations, appropriate state and local agencies, public health experts, and other subject matter experts, including representatives from the Department of Alcoholic Beverage Control, with expertise in regulating commercial activity for adult-use intoxicating substances. The advisory committee members shall be determined by the director. (c) Commencing on January 1, 2019, the advisory committee shall publish an annual public report describing its activities including, but not limited to, the recommendations the advisory committee made to the bureau and licensing authorities during the immediately preceding calendar year and whether those recommendations were implemented by the bureau or licensing authorities. 26015. A licensing authority may make or cause to be made such investigation as it deems necessary to carry out its duties under this division. 26016. For any hearing held pursuant to this division, except a hearing held under Chapter 4 (commencing with Section 26040), a licensing authority may delegate the power to hear and decide to an administrative law judge. Any hearing before an administrative law judge shall be pursuant to the procedures, rules, and limitations prescribed in Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. 26017. In any hearing before a licensing authority pursuant to this division, the licensing authority may pay any person appearing as a witness at the hearing at the request of the licensing authority pursuant to a subpoena, his or her actual, necessary, and reasonable travel, food, and lodging expenses, not to exceed the amount authorized for state employees. 26018. A licensing authority may on its own motion at any time before a penalty assessment is placed into effect, and without any further proceedings, review the penalty, but such review shall be limited to its reduction. (d) Upon the effective date of this section, whenever “Bureau of Medical Marijuana Regulation” appears in any statute, regulation, or contract, or in any other code, it shall be construed to refer to the bureau. 26011. Neither the chief of the bureau nor any member of the Marijuana Control Appeals Panel established under Section 26040 shall do any of the following: (a) Receive any commission or profit whatsoever, directly or indirectly, from any person applying for or receiving any license or permit under this division or Chapter 3.5 (commencing with Section 19300) of Division 8. (b) Engage or have any interest in the sale or any insurance covering a licensee’s business or premises. (c) Engage or have any interest in the sale of equipment for use upon the premises of a licensee engaged in commercial marijuana activity. (d) Knowingly solicit any licensee for the purchase of tickets for benefits or contributions for benefits. (e) Knowingly request any licensee to donate or receive money, or any other thing of value, for the benefit of any person whatsoever. 26012. (a) It being a matter of statewide concern, except as otherwise authorized in this division: (1) The Department of Consumer Affairs shall have the exclusive authority to create, issue, renew, discipline, suspend, or revoke licenses for the transportation, storage unrelated to manufacturing activities, distribution, and sale of marijuana within the state. (2) The Department of Food and Agriculture shall administer the provisions of this division related to and associated with the cultivation of marijuana. The Department of Food and Agriculture shall have the authority to create, issue, and suspend or revoke cultivation licenses for violations of this division. (3) The State Department of Public Health shall administer the provisions of this division related to and associated with the manufacturing and testing of marijuana. The State Department of Public Health shall have the authority to create, issue, and suspend or revoke manufacturing and testing licenses for violations of this division. (b) The licensing authorities and the bureau shall have the authority to collect fees in connection with activities they regulate concerning marijuana. The bureau may create licenses in addition to those identified in this division that the bureau deems necessary to effectuate its duties under this division. (c) Licensing authorities shall begin issuing licenses under this division by January 1, 2018. 26013. (a) Licensing authorities shall make and prescribe reasonable rules and regulations as may be necessary to implement, administer and enforce their respective duties under this division in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. Such rules and regulations shall be consistent with the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act. (b) Licensing authorities may prescribe, adopt, and enforce any emergency regulations as necessary to implement, administer and enforce their respective duties under this division. Any emergency regulation prescribed, adopted or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing 64 186 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law. (b) The actions of a person who, in good faith, allows his or her property to be used by a licensee, its employees, and its agents, as permitted pursuant to a state license and any applicable local ordinances, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law. 26038. (a) A person engaging in commercial marijuana activity without a license required by this division shall be subject to civil penalties of up to three times the amount of the license fee for each violation, and the court may order the destruction of marijuana associated with that violation in accordance with Section 11479 of the Health and Safety Code. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section by a licensing authority shall be deposited into the General Fund except as provided in subdivision (b). (b) If an action for civil penalties is brought against a licensee pursuant to this division by the Attorney General on behalf of the people, the penalty collected shall be deposited into the General Fund. If the action is brought by a district attorney or county counsel, the penalty shall first be used to reimburse the district attorney or county counsel for the costs of bringing the action for civil penalties, with the remainder, if any, to be deposited into the General Fund. If the action is brought by a city attorney or city prosecutor, the penalty collected shall first be used to reimburse the city attorney or city prosecutor for the costs of bringing the action for civil penalties, with the remainder, if any, to be deposited into the General Fund. (c) Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person engaging in commercial marijuana activity in violation of this division. Chapter 4. appeals 26040. (a) There is established in state government a Marijuana Control Appeals Panel which shall consist of three members appointed by the Governor and subject to confirmation by a majority vote of all of the members elected to the Senate. Each member, at the time of his or her initial appointment, shall be a resident of a different county from the one in which either of the other members resides. Members of the panel shall receive an annual salary as provided for by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2 of the Government Code. (b) The members of the panel may be removed from office by the Governor, and the Legislature shall have the power, by a majority vote of all members elected to each house, to remove any member from office for dereliction of duty, corruption or incompetency. (c) A concurrent resolution for the removal of any member of the panel may be introduced in the Legislature only if 5 Members of the Senate, or 10 Members of the Assembly, join as authors. 26041. All personnel of the panel shall be appointed, employed, directed, and controlled by the panel consistent with state civil service requirements. The director shall furnish the equipment, supplies, and housing necessary for the authorized activities of the panel and shall perform Chapter 3. enforCement 26030. Grounds for disciplinary action include: (a) Failure to comply with the provisions of this division or any rule or regulation adopted pursuant to this division. (b) Conduct that constitutes grounds for denial of licensure pursuant to Chapter 3 (commencing with Section 490) of Division 1.5. (c) Any other grounds contained in regulations adopted by a licensing authority pursuant to this division. (d) Failure to comply with any state law including, but not limited to, the payment of taxes as required under the Revenue and Taxation Code, except as provided for in this division or other California law. (e) Knowing violations of any state or local law, ordinance, or regulation conferring worker protections or legal rights on the employees of a licensee. (f) Failure to comply with the requirement of a local ordinance regulating commercial marijuana activity. (g) The intentional and knowing sale of marijuana or marijuana products by a licensee to a person under the legal age to purchase or possess. 26031. Each licensing authority may suspend or revoke licenses, after proper notice and hearing to the licensee, if the licensee is found to have committed any of the acts or omissions constituting grounds for disciplinary action. The disciplinary proceedings under this chapter shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director of each licensing authority shall have all the powers granted therein. 26032. Each licensing authority may take disciplinary action against a licensee for any violation of this division when the violation was committed by the licensee’s agent or employee while acting on behalf of the licensee or engaged in commercial marijuana activity. 26033. Upon suspension or revocation of a license, the licensing authority shall inform the bureau. The bureau shall then inform all other licensing authorities. 26034. Accusations against licensees under this division shall be filed within the same time limits as specified in Section 19314 or as otherwise provided by law. 26035. The director shall designate the persons employed by the Department of Consumer Affairs for purposes of the administration and enforcement of this division. The director shall ensure that a sufficient number of employees are qualified peace officers for purposes of enforcing this division. 26036. Nothing in this division shall be interpreted to supersede or limit state agencies from exercising their existing enforcement authority, including, but not limited to, under the Fish and Game Code, the Food and Agricultural Code, the Government Code, the Health and Safety Code, the Public Resources Code, the Water Code, or the application of those laws. 26037. (a) The actions of a licensee, its employees, and its agents that are (1) permitted under a license issued under this division and any applicable local ordinances and (2) conducted in accordance with the requirements of this division and regulations adopted pursuant to this division, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction 64 Text of Proposed Laws | 187 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (8) Type 3A—Cultivation; Indoor; Medium. (9) Type 3B—Cultivation; Mixed-light; Medium. (10) Type 4—Cultivation; Nursery. (11) Type 5—Cultivation; Outdoor; Large. (12) Type 5A—Cultivation; Indoor; Large. (13) Type 5B—Cultivation; Mixed-light; Large. (14) Type 6—Manufacturer 1. (15) Type 7—Manufacturer 2. (16) Type 8—Testing. (17) Type 10—Retailer. (18) Type 11—Distributor. (19) Type 12—Microbusiness. (b) All licenses issued under this division shall bear a clear designation indicating that the license is for commercial marijuana activity as distinct from commercial medical cannabis activity licensed under Chapter 3.5 (commencing with Section 19300) of Division 8. Examples of such a designation include, but are not limited to, “Type 1—Nonmedical,” or “Type 1NM.” (c) A license issued pursuant to this division shall be valid for 12 months from the date of issuance. The license may be renewed annually. (d) Each licensing authority shall establish procedures for the issuance and renewal of licenses. (e) Notwithstanding subdivision (c), a licensing authority may issue a temporary license for a period of less than 12 months. This subdivision shall cease to be operative on January 1, 2019. 26051. (a) In determining whether to grant, deny, or renew a license authorized under this division, a licensing authority shall consider factors reasonably related to the determination, including, but not limited to, whether it is reasonably foreseeable that issuance, denial, or renewal of the license could: (1) Allow unreasonable restraints on competition by creation or maintenance of unlawful monopoly power; (2) Perpetuate the presence of an illegal market for marijuana or marijuana products in the state or out of the state; (3) Encourage underage use or adult abuse of marijuana or marijuana products, or illegal diversion of marijuana or marijuana products out of the state; (4) Result in an excessive concentration of licensees in a given city, county, or both; (5) Present an unreasonable risk of minors being exposed to marijuana or marijuana products; or (6) Result in violations of any environmental protection laws. (b) A licensing authority may deny a license or renewal of a license based upon the considerations in subdivision (a). (c) For purposes of this section, “excessive concentration” means when the premises for a retail license, microbusiness license, or a license issued under Section 26070.5 is located in an area where either of the following conditions exist: (1) The ratio of a licensee to population in the census tract or census division in which the applicant premises are located exceeds the ratio of licensees to population in such other mechanics of administration as the panel and the director may agree upon. 26042. The panel shall adopt procedures for appeals similar to the procedures used in Article 3 (commencing with Section 23075) and Article 4 (commencing with Section 23080) of Chapter 1.5 of Division 9 of the Business and Professions Code. Such procedures shall be adopted in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). 26043. (a) When any person aggrieved thereby appeals from a decision of the bureau or any licensing authority ordering any penalty assessment, issuing, denying, transferring, conditioning, suspending or revoking any license provided for under this division, the panel shall review the decision subject to such limitations as may be imposed by the Legislature. In such cases, the panel shall not receive evidence in addition to that considered by the bureau or the licensing authority. (b) Review by the panel of a decision of the bureau or a licensing authority shall be limited to the following questions: (1) Whether the bureau or any licensing authority has proceeded without or in excess of its jurisdiction. (2) Whether the bureau or any licensing authority has proceeded in the manner required by law. (3) Whether the decision is supported by the findings. (4) Whether the findings are supported by substantial evidence in the light of the whole record. 26044. (a) In appeals where the panel finds that there is relevant evidence which, in the exercise of reasonable diligence, could not have been produced or which was improperly excluded at the hearing before the bureau or licensing authority, it may enter an order remanding the matter to the bureau or licensing authority for reconsideration in the light of such evidence. (b) Except as provided in subdivision (a), in all appeals, the panel shall enter an order either affirming or reversing the decision of the bureau or licensing authority. When the order reverses the decision of the bureau or licensing authority, the board may direct the reconsideration of the matter in the light of its order and may direct the bureau or licensing authority to take such further action as is specially enjoined upon it by law, but the order shall not limit or control in any way the discretion vested by law in the bureau or licensing authority. 26045. Orders of the panel shall be subject to judicial review under Section 1094.5 of the Code of Civil Procedure upon petition by the bureau or licensing authority or any party aggrieved by such order. Chapter 5. liCensinG 26050. (a) The license classification pursuant to this division shall, at a minimum, be as follows: (1) Type 1—Cultivation; Specialty outdoor; Small. (2) Type 1A—Cultivation; Specialty indoor; Small. (3) Type 1B—Cultivation; Specialty mixed-light; Small. (4) Type 2—Cultivation; Outdoor; Small. (5) Type 2A—Cultivation; Indoor; Small. (6) Type 2B—Cultivation; Mixed-light; Small. (7) Type 3—Cultivation; Outdoor; Medium. 64 188 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (c) Except as provided in subdivision (b), a person or entity may apply for and be issued more than one license under this division. 26054. (a) A licensee shall not also be licensed as a retailer of alcoholic beverages under Division 9 (commencing with Section 23000) or of tobacco products. (b) No licensee under this division shall be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued, unless a licensing authority or a local jurisdiction specifies a different radius. The distance specified in this section shall be measured in the same manner as provided in subdivision (c) of Section 11362.768 of the Health and Safety Code unless otherwise provided by law. (c) It shall be lawful under state and local law, and shall not be a violation of state or local law, for a business engaged in the manufacture of marijuana accessories to possess, transport, purchase or otherwise obtain small amounts of marijuana or marijuana products as necessary to conduct research and development related to such marijuana accessories, provided such marijuana and marijuana products are obtained from a person or entity licensed under this division or Chapter 3.5 (commencing with Section 19300) of Division 8 permitted to provide or deliver such marijuana or marijuana products. 26054.1. (a) No licensing authority shall issue or renew a license to any person that cannot demonstrate continuous California residency from or before January 1, 2015. In the case of an applicant or licensee that is an entity, the entity shall not be considered a resident if any person controlling the entity cannot demonstrate continuous California residency from and before January 1, 2015. (b) Subdivision (a) shall cease to be operative on December 31, 2019, unless reenacted prior thereto by the Legislature. 26054.2. (a) A licensing authority shall give priority in issuing licenses under this division to applicants that can demonstrate to the authority’s satisfaction that the applicant operated in compliance with the Compassionate Use Act and its implementing laws before September 1, 2016, or currently operates in compliance with Chapter 3.5 (commencing with Section 19300) of Division 8. (b) The bureau shall request that local jurisdictions identify for the bureau potential applicants for licensure based on the applicants’ prior operation in the local jurisdiction in compliance with state law, including the Compassionate Use Act and its implementing laws, and any applicable local laws. The bureau shall make the requested information available to licensing authorities. (c) In addition to or in lieu of the information described in subdivision (b), an applicant may furnish other evidence to demonstrate operation in compliance with the Compassionate Use Act or Chapter 3.5 (commencing with Section 19300) of Division 8. The bureau and licensing authorities may accept such evidence to demonstrate eligibility for the priority provided for in subdivision (a). (d) This section shall cease to be operative on December 31, 2019, unless otherwise provided by law. 26055. (a) Licensing authorities may issue state licenses only to qualified applicants. (b) Revocation of a state license issued under this division shall terminate the ability of the licensee to operate within the county in which the applicant premises are located, unless denial of the application would unduly limit the development of the legal market so as to perpetuate the illegal market for marijuana or marijuana products. (2) The ratio of retail licenses, microbusiness licenses, or licenses under Section 26070.5 to population in the census tract, division or jurisdiction exceeds that allowable by local ordinance adopted under Section 26200. 26052. (a) No licensee shall perform any of the following acts, or permit any such acts to be performed by any employee, agent, or contractor of such licensee: (1) Make any contract in restraint of trade in violation of Section 16600; (2) Form a trust or other prohibited organization in restraint of trade in violation of Section 16720; (3) Make a sale or contract for the sale of marijuana or marijuana products, or to fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement or understanding that the consumer or purchaser thereof shall not use or deal in the goods, merchandise, machinery, supplies, commodities, or services of a competitor or competitors of such seller, where the effect of such sale, contract, condition, agreement or understanding may be to substantially lessen competition or tend to create a monopoly in any line of trade or commerce; (4) Sell any marijuana or marijuana products at less than cost for the purpose of injuring competitors, destroying competition, or misleading or deceiving purchasers or prospective purchasers; (5) Discriminate between different sections, communities, or cities or portions thereof, or between different locations in such sections, communities, cities or portions thereof in this state, by selling or furnishing marijuana or marijuana products at a lower price in one section, community, or city or any portion thereof, or in one location in such section, community, or city or any portion thereof, than in another, for the purpose of injuring competitors or destroying competition; or (6) Sell any marijuana or marijuana products at less than the cost thereof to such vendor, or to give away any article or product for the purpose of injuring competitors or destroying competition. (b) Any person who, either as director, officer or agent of any firm or corporation, or as agent of any person, violates the provisions of this chapter, assists or aids, directly or indirectly, in such violation is responsible therefor equally with the person, firm or corporation for which such person acts. (c) A licensing authority may enforce this section by appropriate regulation. (d) Any person or trade association may bring an action to enjoin and restrain any violation of this section for the recovery of damages. 26053. (a) The bureau and licensing authorities may issue licenses under this division to persons or entities that hold licenses under Chapter 3.5 (commencing with Section 19300) of Division 8. (b) Notwithstanding subdivision (a), a person or entity that holds a state testing license under this division or Chapter 3.5 (commencing with Section 19300) of Division 8 is prohibited from licensure for any other activity, except testing, as authorized under this division. 64 Text of Proposed Laws | 189 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED individual square footage of separate cultivation areas, if any. 26056.5. The bureau shall devise protocols that each licensing authority shall implement to ensure compliance with state laws and regulations related to environmental impacts, natural resource protection, water quality, water supply, hazardous materials, and pesticide use in accordance with regulations, including but not limited to, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), lake or streambed alteration agreements (Chapter 6 (commencing with Section 1600) of Division 2 of the Fish and Game Code), the Clean Water Act (33 U.S.C. Sec. 1251 et seq.), the Porter-Cologne Water Quality Control Act (Division 7 (commencing with Section 13000) of the Water Code), timber production zones, wastewater discharge requirements, and any permit or right necessary to divert water. 26057. (a) The licensing authority shall deny an application if either the applicant, or the premises for which a state license is applied, do not qualify for licensure under this division. (b) The licensing authority may deny the application for licensure or renewal of a state license if any of the following conditions apply: (1) Failure to comply with the provisions of this division, any rule or regulation adopted pursuant to this division, or any requirement imposed to protect natural resources, including, but not limited to, protections for instream flow and water quality. (2) Conduct that constitutes grounds for denial of licensure under Chapter 2 (commencing with Section 480) of Division 1.5, except as otherwise specified in this section and Section 26059. (3) Failure to provide information required by the licensing authority. (4) The applicant or licensee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the licensing authority determines that the applicant or licensee is otherwise suitable to be issued a license, and granting the license would not compromise public safety, the licensing authority shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant or licensee to be issued a license based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the licensing authority shall include, but not be limited to, the following: (A) A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code. (B) A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the Penal Code. (C) A felony conviction involving fraud, deceit, or embezzlement. (D) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to California until the licensing authority reinstates or reissues the state license. (c) Separate licenses shall be issued for each of the premises of any licensee having more than one location, except as otherwise authorized by law or regulation. (d) After issuance or transfer of a license, no licensee shall change or alter the premises in a manner which materially or substantially alters the premises, the usage of the premises, or the mode or character of business operation conducted from the premises, from the plan contained in the diagram on file with the application, unless and until prior written assent of the licensing authority or bureau has been obtained. For purposes of this section, material or substantial physical changes of the premises, or in the usage of the premises, shall include, but not be limited to, a substantial increase or decrease in the total area of the licensed premises previously diagrammed, or any other physical modification resulting in substantial change in the mode or character of business operation. (e) Licensing authorities shall not approve an application for a state license under this division if approval of the state license will violate the provisions of any local ordinance or regulation adopted in accordance with Section 26200. 26056. An applicant for any type of state license issued pursuant to this division shall comply with the same requirements as set forth in Section 19322 unless otherwise provided by law, including electronic submission of fingerprint images, and any other requirements imposed by law or a licensing authority, except as follows: (a) Notwithstanding paragraph (2) of subdivision (a) of Section 19322, an applicant need not provide documentation that the applicant has obtained a license, permit or other authorization to operate from the local jurisdiction in which the applicant seeks to operate; (b) An application for a license under this division shall include evidence that the proposed location meets the restriction in subdivision (b) of Section 26054; and (c) For applicants seeking licensure to cultivate, distribute, or manufacture nonmedical marijuana or marijuana products, the application shall also include a detailed description of the applicant’s operating procedures for all of the following, as required by the licensing authority: (1) Cultivation. (2) Extraction and infusion methods. (3) The transportation process. (4) The inventory process. (5) Quality control procedures. (6) The source or sources of water the applicant will use for the licensed activities, including a certification that the applicant may use that water legally under state law. (d) The applicant shall provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy including aggregate square footage and 64 190 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED Board to ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability, and to otherwise protect fish, wildlife, fish and wildlife habitat, and water quality. (d) The regulations promulgated by the Department of Food and Agriculture under this division shall, at a minimum, address in relation to commercial marijuana activity, the same matters described in subdivision (e) of Section 19332. (e) The Department of Pesticide Regulation, in consultation with the State Water Resources Control Board, shall promulgate regulations that require that the application of pesticides or other pest control in connection with the indoor, outdoor, or mixed light cultivation of marijuana meets standards equivalent to Division 6 (commencing with Section 11401) of the Food and Agricultural Code and its implementing regulations. 26061. (a) The state cultivator license types to be issued by the Department of Food and Agriculture under this division shall include Type 1, Type 1A, Type 1B, Type 2, Type 2A, Type 2B, Type 3, Type 3A, Type 3B, Type 4, and Type 5, Type 5A, and Type 5B unless otherwise provided by law. (b) Except as otherwise provided by law, Type 1, Type 1A, Type 1B, Type 2, Type 2A, Type 2B, Type 3, Type 3A, Type 3B and Type 4 licenses shall provide for the cultivation of marijuana in the same amount as the equivalent license type for cultivation of medical cannabis as specified in subdivision (g) of Section 19332. (c) Except as otherwise provided by law: (1) Type 5, or “outdoor,” means for outdoor cultivation using no artificial lighting greater than one acre, inclusive, of total canopy size on one premises. (2) Type 5A, or “indoor,” means for indoor cultivation using exclusively artificial lighting greater than 22,000 square feet, inclusive, of total canopy size on one premises. (3) Type 5B, or “mixed-light,” means for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, greater than 22,000 square feet, inclusive, of total canopy size on one premises. (d) No Type 5, Type 5A, or Type 5B cultivation licenses may be issued before January 1, 2023. (e) Commencing on January 1, 2023, a Type 5, Type 5A, or Type 5B licensee may apply for and hold a Type 6 or Type 7 license and apply for and hold a Type 10 license. A Type 5, Type 5A, or Type 5B licensee shall not be eligible to apply for or hold a Type 8, Type 11, or Type 12 license. 26062. The Department of Food and Agriculture, in conjunction with the bureau, shall establish a certified organic designation and organic certification program for marijuana and marijuana products in the same manner as provided in Section 19332.5. 26063. (a) The bureau shall establish standards for recognition of a particular appellation of origin applicable to marijuana grown or cultivated in a certain geographical area in California. (b) Marijuana shall not be marketed, labeled, or sold as grown in a California county when the marijuana was not grown in that county. furnish, administering, or giving any controlled substance to a minor. (E) A felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8. (5) Except as provided in subparagraphs (D) and (E) of paragraph (4) and notwithstanding Chapter 2 (commencing with Section 480) of Division 1.5, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is not considered substantially related, and shall not be the sole ground for denial of a license. Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a license or denial of the renewal of a license. (6) The applicant, or any of its officers, directors, or owners, has been subject to fines or penalties for cultivation or production of a controlled substance on public or private lands pursuant to Section 12025 or 12025.1 of the Fish and Game Code. (7) The applicant, or any of its officers, directors, or owners, has been sanctioned by a licensing authority or a city, county, or city and county for unauthorized commercial marijuana activities or commercial medical cannabis activities, has had a license revoked under this division or Chapter 3.5 (commencing with Section 19300) of Division 8 in the three years immediately preceding the date the application is filed with the licensing authority, or has been sanctioned under Section 12025 or 12025.1 of the Fish and Game Code. (8) Failure to obtain and maintain a valid seller’s permit required pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. (9) Any other condition specified in law. 26058. Upon the denial of any application for a license, the licensing authority shall notify the applicant in writing. 26059. An applicant shall not be denied a state license if the denial is based solely on any of the following: (a) A conviction or act that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made for which the applicant or licensee has obtained a certificate of rehabilitation pursuant to Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code. (b) A conviction that was subsequently dismissed pursuant to Section 1203.4, 1203.4a, or 1203.41 of the Penal Code or any other provision allowing for dismissal of a conviction. Chapter 6. liCensed Cultivation sites 26060. (a) Regulations issued by the Department of Food and Agriculture governing the licensing of indoor, outdoor, and mixed-light cultivation sites shall apply to licensed cultivators under this division. (b) Standards developed by the Department of Pesticide Regulation, in consultation with the Department of Food and Agriculture, for the use of pesticides in cultivation, and maximum tolerances for pesticides and other foreign object residue in harvested cannabis shall apply to licensed cultivators under this division. (c) The Department of Food and Agriculture shall include conditions in each license requested by the Department of Fish and Wildlife and the State Water Resources Control 64 Text of Proposed Laws | 191 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (B) Information associated with the assigned unique identifier and licensee shall be included in the trace and track program specified in Section 26170. (C) The department may charge a fee to cover the reasonable costs of issuing the unique identifier and monitoring, tracking, and inspecting each marijuana plant. (D) The department may promulgate regulations to implement this section. (3) The department shall take adequate steps to establish protections against fraudulent unique identifiers and limit illegal diversion of unique identifiers to unlicensed persons. (d) Unique identifiers and associated identifying information administered by local jurisdictions shall adhere to the requirements set by the department and be the equivalent to those administered by the department. (e) (1) This section does not apply to the cultivation of marijuana in accordance with Section 11362.1 of the Health and Safety Code or the Compassionate Use Act. (2) Subdivision (b) does not apply to persons or entities licensed under either paragraph (3) of subdivision (a) of Section 26070 or subdivision (b) of Section 26070.5. (f) “Department” for purposes of this section means the Department of Food and Agriculture. Chapter 7. retailers and distributors 26070. Retailers and Distributors. (a) State licenses to be issued by the Department of Consumer Affairs are as follows: (1) “Retailer,” for the retail sale and delivery of marijuana or marijuana products to customers. (2) “Distributor,” for the distribution of marijuana and marijuana products. A distributor licensee shall be bonded and insured at a minimum level established by the licensing authority. (3) “Microbusiness,” for the cultivation of marijuana on an area less than 10,000 square feet and to act as a licensed distributor, Level 1 manufacturer, and retailer under this division, provided such licensee complies with all requirements imposed by this division on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the licensee engages in such activities. Microbusiness licenses that authorize cultivation of marijuana shall include conditions requested by the Department of Fish and Wildlife and the State Water Resources Control Board to ensure that individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flow needed to maintain flow variability, and otherwise protect fish, wildlife, fish and wildlife habitat, and water quality. (b) The bureau shall establish minimum security and transportation safety requirements for the commercial distribution and delivery of marijuana and marijuana products. The transportation safety standards established by the bureau shall include, but not be limited to, minimum standards governing the types of vehicles in which marijuana and marijuana products may be distributed and delivered and minimum qualifications for persons eligible to operate such vehicles. (c) Licensed retailers and microbusinesses, and licensed nonprofits under Section 26070.5, shall implement security measures reasonably designed to prevent (c) The name of a California county shall not be used in the labeling, marketing, or packaging of marijuana products unless the marijuana contained in the product was grown in that county. 26064. Each licensed cultivator shall ensure that the licensed premises do not pose an unreasonable risk of fire or combustion. Each cultivator shall ensure that all lighting, wiring, electrical and mechanical devices, or other relevant property is carefully maintained to avoid unreasonable or dangerous risk to the property or others. 26065. An employee engaged in the cultivation of marijuana under this division shall be subject to Wage Order No. 4-2001 of the Industrial Welfare Commission. 26066. Indoor and outdoor marijuana cultivation by persons and entities licensed under this division shall be conducted in accordance with state and local laws related to land conversion, grading, electricity usage, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matters. State agencies, including, but not limited to, the State Board of Forestry and Fire Protection, the Department of Fish and Wildlife, the State Water Resources Control Board, the California regional water quality control boards, and traditional state law enforcement agencies, shall address environmental impacts of marijuana cultivation and shall coordinate when appropriate with cities and counties and their law enforcement agencies in enforcement efforts. 26067. (a) The Department of Food and Agriculture shall establish a Marijuana Cultivation Program to be administered by the Secretary of Food and Agriculture. The secretary shall administer this section as it pertains to the cultivation of marijuana. For purposes of this division, marijuana is an agricultural product. (b) A person or entity shall not cultivate marijuana without first obtaining a state license issued by the department pursuant to this section. (c) (1) The department, in consultation with, but not limited to, the bureau, the State Water Resources Control Board, and the Department of Fish and Wildlife, shall implement a unique identification program for marijuana. In implementing the program, the department shall consider issues including, but not limited to, water use and environmental impacts. In implementing the program, the department shall ensure that: (A) Individual and cumulative effects of water diversion and discharge associated with cultivation do not affect the instream flows needed for fish spawning, migration, and rearing, and the flows needed to maintain natural flow variability. If a watershed cannot support additional cultivation, no new plant identifiers will be issued for that watershed. (B) Cultivation will not negatively impact springs, riparian wetlands and aquatic habitats. (2) The department shall establish a program for the identification of permitted marijuana plants at a cultivation site during the cultivation period. A unique identifier shall be issued for each marijuana plant. The department shall ensure that unique identifiers are issued as quickly as possible to ensure the implementation of this division. The unique identifier shall be attached at the base of each plant or as otherwise required by law or regulation. (A) Unique identifiers will only be issued to those persons appropriately licensed by this section. 64 192 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED division is not feasible, or if the bureau determines such licenses are feasible, after the date a licensing agency commences issuing state nonprofit licenses. (2) If the bureau determines such licenses are feasible, no temporary license issued under subdivision (b) shall be renewed or extended after the date on which a licensing agency commences issuing state nonprofit licenses. (3) If the bureau determines that creation of nonprofit licenses under this division is not feasible, the bureau shall provide notice of this determination to all local jurisdictions that have issued temporary licenses under subdivision (b). The bureau may, in its discretion, permit any such local jurisdiction to renew or extend on an annual basis any temporary license previously issued under subdivision (b). Chapter 8. distribution and transport 26080. (a) This division shall not be construed to authorize or permit a licensee to transport or distribute, or cause to be transported or distributed, marijuana or marijuana products outside the state, unless authorized by federal law. (b) A local jurisdiction shall not prevent transportation of marijuana or marijuana products on public roads by a licensee transporting marijuana or marijuana products in compliance with this division. Chapter 9. delivery 26090. (a) Deliveries, as defined in this division, may only be made by a licensed retailer or microbusiness, or a licensed nonprofit under Section 26070.5. (b) A customer requesting delivery shall maintain a physical or electronic copy of the delivery request and shall make it available upon request by the licensing authority and law enforcement officers. (c) A local jurisdiction shall not prevent delivery of marijuana or marijuana products on public roads by a licensee acting in compliance with this division and local law as adopted under Section 26200. Chapter 10. manufaCturers and testinG laboratories 26100. The State Department of Public Health shall promulgate regulations governing the licensing of marijuana manufacturers and testing laboratories. Licenses to be issued are as follows: (a) “Manufacturing Level 1,” for sites that manufacture marijuana products using nonvolatile solvents, or no solvents. (b) “Manufacturing Level 2,” for sites that manufacture marijuana products using volatile solvents. (c) “Testing,” for testing of marijuana and marijuana products. Testing licensees shall have their facilities or devices licensed according to regulations set forth by the department. A testing licensee shall not hold a license in another license category of this division and shall not own or have ownership interest in a non-testing facility licensed pursuant to this division. (d) For purposes of this section, “volatile solvents” shall have the same meaning as in subdivision (d) of Section 11362.3 of the Health and Safety Code unless otherwise provided by law or regulation. 26101. (a) Except as otherwise provided by law, no marijuana or marijuana products may be sold pursuant to a license provided for under this division unless a representative sample of such marijuana or marijuana unauthorized entrance into areas containing marijuana or marijuana products and theft of marijuana or marijuana products from the premises. These security measures shall include, but not be limited to, all of the following: (1) Prohibiting individuals from remaining on the licensee’s premises if they are not engaging in activity expressly related to the operations of the dispensary. (2) Establishing limited access areas accessible only to authorized personnel. (3) Other than limited amounts of marijuana used for display purposes, samples, or immediate sale, storing all finished marijuana and marijuana products in a secured and locked room, safe, or vault, and in a manner reasonably designed to prevent diversion, theft, and loss. 26070.5. (a) The bureau shall, by January 1, 2018, investigate the feasibility of creating one or more classifications of nonprofit licenses under this section. The feasibility determination shall be made in consultation with the relevant licensing agencies and representatives of local jurisdictions which issue temporary licenses pursuant to subdivision (b). The bureau shall consider factors including, but not limited to, the following: (1) Should nonprofit licensees be exempted from any or all state taxes, licensing fees and regulatory provisions applicable to other licenses in this division? (2) Should funding incentives be created to encourage others licensed under this division to provide professional services at reduced or no cost to nonprofit licensees? (3) Should nonprofit licenses be limited to, or prioritize those, entities previously operating on a not-for-profit basis primarily providing whole-plant marijuana and marijuana products and a diversity of marijuana strains and seed stock to low-income persons? (b) Any local jurisdiction may issue temporary local licenses to nonprofit entities primarily providing whole-plant marijuana and marijuana products and a diversity of marijuana strains and seed stock to low-income persons so long as the local jurisdiction: (1) Confirms the license applicant’s status as a nonprofit entity registered with the California Attorney General’s Registry of Charitable Trusts and that the applicant is in good standing with all state requirements governing nonprofit entities; (2) Licenses and regulates any such entity to protect public health and safety, and so as to require compliance with all environmental requirements in this division; (3) Provides notice to the bureau of any such local licenses issued, including the name and location of any such licensed entity and all local regulations governing the licensed entity’s operation, and; (4) Certifies to the bureau that any such licensed entity will not generate annual gross revenues in excess of two million dollars ($2,000,000). (c) Temporary local licenses authorized under subdivision (b) shall expire after 12 months unless renewed by the local jurisdiction. (d) The bureau may impose reasonable additional requirements on the local licenses authorized under subdivision (b). (e) (1) No new temporary local licenses shall be issued pursuant to this section after the date the bureau determines that creation of nonprofit licenses under this 64 Text of Proposed Laws | 193 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (b) The State Department of Public Health shall develop procedures to: (1) Ensure that testing of marijuana and marijuana products occurs prior to distribution to retailers, microbusinesses, or nonprofits licensed under Section 26070.5; (2) Specify how often licensees shall test marijuana and marijuana products, and that the cost of testing marijuana shall be borne by the licensed cultivators and the cost of testing marijuana products shall be borne by the licensed manufacturer, and that the costs of testing marijuana and marijuana products shall be borne by a nonprofit licensed under Section 26070.5; and (3) Require destruction of harvested batches whose testing samples indicate noncompliance with health and safety standards promulgated by the State Department of Public Health, unless remedial measures can bring the marijuana or marijuana products into compliance with quality assurance standards as promulgated by the State Department of Public Health. 26105. Manufacturing Level 2 licensees shall enact sufficient methods or procedures to capture or otherwise limit risk of explosion, combustion, or any other unreasonably dangerous risk to public safety created by volatile solvents. The State Department of Public Health shall establish minimum standards concerning such methods and procedures for Level 2 licensees. 26106. Standards for the production and labeling of all marijuana products developed by the State Department of Public Health shall apply to licensed manufacturers and microbusinesses, and nonprofits licensed under Section 26070.5 unless otherwise specified by the State Department of Public Health. Chapter 11. Quality assuranCe, inspeCtion, and testinG 26110. (a) All marijuana and marijuana products shall be subject to quality assurance, inspection, and testing. (b) All marijuana and marijuana products shall undergo quality assurance, inspection, and testing in the same manner as provided in Section 19326, except as otherwise provided in this division or by law. Chapter 12. paCKaGinG and labelinG 26120. (a) Prior to delivery or sale at a retailer, marijuana and marijuana products shall be labeled and placed in a resealable, child resistant package. (b) Packages and labels shall not be made to be attractive to children. (c) All marijuana and marijuana product labels and inserts shall include the following information prominently displayed in a clear and legible fashion in accordance with the requirements, including font size, prescribed by the bureau or the State Department of Public Health: (1) Manufacture date and source. (2) The following statements, in bold print: (A) For marijuana: “GOVERNMENT WARNING: THIS PACKAGE CONTAINS MARIJUANA, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. MARIJUANA MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. MARIJUANA USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF MARIJUANA IMPAIRS YOUR ABILITY product has been tested by a certified testing service to determine: (1) Whether the chemical profile of the sample conforms to the labeled content of compounds, including, but not limited to, all of the following: (A) Tetrahydrocannabinol (THC). (B) Tetrahydrocannabinolic Acid (THCA). (C) Cannabidiol (CBD). (D) Cannabidiolic Acid (CBDA). (E) The terpenes described in the most current version of the cannabis inflorescence monograph published by the American Herbal Pharmacopoeia. (F) Cannabigerol (CBG). (G) Cannabinol (CBN). (2) That the presence of contaminants does not exceed the levels in the most current version of the American Herbal Pharmacopoeia monograph. For purposes of this paragraph, contaminants includes, but is not limited to, all of the following: (A) Residual solvent or processing chemicals, including explosive gases, such as Butane, propane, 02 or H2, and poisons, toxins, or carcinogens, such as Methanol, Iso-propyl Alcohol, Methylene Chloride, Acetone, Benzene, Toluene, and Tri-chloro-ethylene. (B) Foreign material, including, but not limited to, hair, insects, or similar or related adulterant. (C) Microbiological impurity, including total aerobic microbial count, total yeast mold count, P. aeruginosa, aspergillus spp., s. aureus, aflatoxin B1, B2, G1, or G2, or ochratoxin A. (b) Residual levels of volatile organic compounds shall satisfy standards of the cannabis inflorescence monograph set by the United States Pharmacopeia (U.S.P. Chapter 467). (c) The testing required by paragraph (a) shall be performed in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling, using standard methods established by the International Organization for Standardization, specifically ISO/IEC 17020 and ISO/IEC 17025 to test marijuana and marijuana products that are approved by an accrediting body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Agreement. (d) Any pre-sale inspection, testing transfer, or transportation of marijuana products pursuant to this section shall conform to a specified chain of custody protocol and any other requirements imposed under this division. 26102. A licensed testing service shall not handle, test, or analyze marijuana or marijuana products unless the licensed testing laboratory meets the requirements of Section 19343 or unless otherwise provided by law. 26103. A licensed testing service shall issue a certificate of analysis for each lot, with supporting data, to report the same information required in Section 19344 or unless otherwise provided by law. 26104. (a) A licensed testing service shall, in performing activities concerning marijuana and marijuana products, comply with the requirements and restrictions set forth in applicable law and regulations. 64 194 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (4) Homogenized to ensure uniform disbursement of cannabinoids throughout the product. (5) Manufactured and sold under sanitation standards established by the State Department of Public Health, in consultation with the bureau, for preparation, storage, handling and sale of food products. (6) Provided to customers with sufficient information to enable the informed consumption of such product, including the potential effects of the marijuana product and directions as to how to consume the marijuana product, as necessary. (b) Marijuana, including concentrated cannabis, included in a marijuana product manufactured in compliance with law is not considered an adulterant under state law. Chapter 14. proteCtion of minors 26140. (a) No licensee shall: (1) Sell marijuana or marijuana products to persons under 21 years of age. (2) Allow any person under 21 years of age on its premises. (3) Employ or retain persons under 21 years of age. (4) Sell or transfer marijuana or marijuana products unless the person to whom the marijuana or marijuana product is to be sold first presents documentation which reasonably appears to be a valid government-issued identification card showing that the person is 21 years of age or older. (b) Persons under 21 years of age may be used by peace officers in the enforcement of this division and to apprehend licensees, or employees or agents of licensees, or other persons who sell or furnish marijuana to minors. Notwithstanding any provision of law, any person under 21 years of age who purchases or attempts to purchase any marijuana while under the direction of a peace officer is immune from prosecution for that purchase or attempt to purchase marijuana. Guidelines with respect to the use of persons under 21 years of age as decoys shall be adopted and published by the bureau in accordance with the rulemaking portion of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (c) Notwithstanding subdivision (a), a licensee that is also a dispensary licensed under Chapter 3.5 (commencing with Section 19300) of Division 8 may: (1) Allow on the premises any person 18 years of age or older who possesses a valid identification card under Section 11362.71 of the Health and Safety Code and a valid government-issued identification card; (2) Sell marijuana, marijuana products, and marijuana accessories to a person 18 years of age or older who possesses a valid identification card under Section 11362.71 of the Health and Safety Code and a valid government-issued identification card. Chapter 15. advertisinG and marKetinG restriCtions 26150. For purposes of this chapter: (a) “Advertise” means the publication or dissemination of an advertisement. (b) “Advertisement” includes any written or verbal statement, illustration, or depiction which is calculated to induce sales of marijuana or marijuana products, including any written, printed, graphic, or other material, billboard, sign, or other outdoor display, public transit card, other periodical literature, publication, or in a radio or television TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” (B) For marijuana products: “GOVERNMENT WARNING: THIS PRODUCT CONTAINS MARIJUANA, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. MARIJUANA PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF MARIJUANA PRODUCTS MAY BE DELAYED UP TO TWO HOURS. MARIJUANA USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF MARIJUANA PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” (3) For packages containing only dried flower, the net weight of marijuana in the package. (4) Identification of the source and date of cultivation, the type of marijuana or marijuana product and the date of manufacturing and packaging. (5) The appellation of origin, if any. (6) List of pharmacologically active ingredients, including, but not limited to, tetrahydrocannabinol (THC), cannabidiol (CBD), and other cannabinoid content, the THC and other cannabinoid amount in milligrams per serving, servings per package, and the THC and other cannabinoid amount in milligrams for the package total, and the potency of the marijuana or marijuana product by reference to the amount of tetrahydrocannabinol and cannabidiol in each serving. (7) For marijuana products, a list of all ingredients and disclosure of nutritional information in the same manner as the federal nutritional labeling requirements in Section 101.9 of Title 21 of the Code of Federal Regulations. (8) A list of any solvents, nonorganic pesticides, herbicides, and fertilizers that were used in the cultivation, production, and manufacture of such marijuana or marijuana product. (9) A warning if nuts or other known allergens are used. (10) Information associated with the unique identifier issued by the Department of Food and Agriculture. (11) Any other requirement set by the bureau or the State Department of Public Health. (d) Only generic food names may be used to describe the ingredients in edible marijuana products. (e) In the event the bureau determines that marijuana is no longer a schedule I controlled substance under federal law, the label prescribed in subdivision (c) shall no longer require a statement that marijuana is a schedule I controlled substance. Chapter 13. marijuana produCts 26130. (a) Marijuana products shall be: (1) Not designed to be appealing to children or easily confused with commercially sold candy or foods that do not contain marijuana. (2) Produced and sold with a standardized dosage of cannabinoids not to exceed ten (10) milligrams tetrahydrocannabinol (THC) per serving. (3) Delineated or scored into standardized serving sizes if the marijuana product contains more than one serving and is an edible marijuana product in solid form. 64 Text of Proposed Laws | 195 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED of the advertised product bears an appellation of origin, and such appellation of origin appears in the advertisement; (d) Advertise or market on a billboard or similar advertising device located on an Interstate Highway or State Highway which crosses the border of any other state; (e) Advertise or market marijuana or marijuana products in a manner intended to encourage persons under the age of 21 years to consume marijuana or marijuana products; (f) Publish or disseminate advertising or marketing containing symbols, language, music, gestures, cartoon characters or other content elements known to appeal primarily to persons below the legal age of consumption; or (g) Advertise or market marijuana or marijuana products on an advertising sign within 1,000 feet of a day care center, school providing instruction in kindergarten or any grades 1 through 12, playground, or youth center. 26153. No licensee shall give away any amount of marijuana or marijuana products, or any marijuana accessories, as part of a business promotion or other commercial activity. 26154. No licensee shall publish or disseminate advertising or marketing containing any health-related statement that is untrue in any particular manner or tends to create a misleading impression as to the effects on health of marijuana consumption. 26155. (a) The provisions of subdivision (g) of Section 26152 shall not apply to the placement of advertising signs inside a licensed premises and which are not visible by normal unaided vision from a public place, provided that such advertising signs do not advertise marijuana or marijuana products in a manner intended to encourage persons under the age of 21 years to consume marijuana or marijuana products. (b) This chapter does not apply to any noncommercial speech. Chapter 16. reCords 26160. (a) A licensee shall keep accurate records of commercial marijuana activity. (b) All records related to commercial marijuana activity as defined by the licensing authorities shall be maintained for a minimum of seven years. (c) The bureau may examine the books and records of a licensee and inspect the premises of a licensee as the licensing authority, or a state or local agency, deems necessary to perform its duties under this division. All inspections shall be conducted during standard business hours of the licensed facility or at any other reasonable time. (d) Licensees shall keep records identified by the licensing authorities on the premises of the location licensed. The licensing authorities may make any examination of the records of any licensee. Licensees shall also provide and deliver copies of documents to the licensing agency upon request. (e) A licensee, or its agent or employee, that refuses, impedes, obstructs, or interferes with an inspection of the premises or records of the licensee pursuant to this section, has engaged in a violation of this division. (f) If a licensee, or an agent or employee of a licensee, fails to maintain or provide the records required pursuant to this section, the licensee shall be subject to a citation broadcast, or in any other media; except that such term shall not include: (1) Any label affixed to any marijuana or marijuana products, or any individual covering, carton, or other wrapper of such container that constitutes a part of the labeling under provisions of this division. (2) Any editorial or other reading material (e.g., news release) in any periodical or publication or newspaper for the publication of which no money or valuable consideration is paid or promised, directly or indirectly, by any licensee, and which is not written by or at the direction of the licensee. (c) “Advertising sign” is any sign, poster, display, billboard, or any other stationary or permanently affixed advertisement promoting the sale of marijuana or marijuana products which are not cultivated, manufactured, distributed, or sold on the same lot. (d) “Health-related statement” means any statement related to health, and includes statements of a curative or therapeutic nature that, expressly or by implication, suggest a relationship between the consumption of marijuana or marijuana products and health benefits, or effects on health. (e) “Market” or “Marketing” means any act or process of promoting or selling marijuana or marijuana products, including, but not limited to, sponsorship of sporting events, point-of-sale advertising, and development of products specifically designed to appeal to certain demographics. 26151. (a) All advertisements and marketing shall accurately and legibly identify the licensee responsible for its content. (b) Any advertising or marketing placed in broadcast, cable, radio, print and digital communications shall only be displayed where at least 71.6 percent of the audience is reasonably expected to be 21 years of age or older, as determined by reliable, up-to-date audience composition data. (c) Any advertising or marketing involving direct, individualized communication or dialogue controlled by the licensee shall utilize a method of age affirmation to verify that the recipient is 21 years of age or older prior to engaging in such communication or dialogue controlled by the licensee. For purposes of this section, such method of age affirmation may include user confirmation, birth date disclosure, or other similar registration method. (d) All advertising shall be truthful and appropriately substantiated. 26152. No licensee shall: (a) Advertise or market in a manner that is false or untrue in any material particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific or technical matter, tends to create a misleading impression; (b) Publish or disseminate advertising or marketing containing any statement concerning a brand or product that is inconsistent with any statement on the labeling thereof; (c) Publish or disseminate advertising or marketing containing any statement, design, device, or representation which tends to create the impression that the marijuana originated in a particular place or region, unless the label 64 196 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED updates to third-party applications. The system should provide a test environment for third-party applications to access that mirrors the production environment. Chapter 18. liCense fees 26180. Each licensing authority shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this division, as follows: (a) Each licensing authority shall charge each licensee a licensure and renewal fee, as applicable. The licensure and renewal fee shall be calculated to cover the costs of administering this division. The licensure fee may vary depending upon the varying costs associated with administering the various regulatory requirements of this division as they relate to the nature and scope of the different licensure activities, including, but not limited to, the track and trace program required pursuant to Section 26170, but shall not exceed the reasonable regulatory costs to the licensing authority. (b) The total fees assessed pursuant to this division shall be set at an amount that will fairly and proportionately generate sufficient total revenue to fully cover the total costs of administering this division. (c) All license fees shall be set on a scaled basis by the licensing authority, dependent on the size of the business. (d) The licensing authority shall deposit all fees collected in a fee account specific to that licensing authority, to be established in the Marijuana Control Fund. Moneys in the licensing authority fee accounts shall be used, upon appropriation by the Legislature, by the designated licensing authority for the administration of this division. 26181. The State Water Resources Control Board, the Department of Fish and Wildlife, and other agencies may establish fees to cover the costs of their marijuana regulatory programs. Chapter 19. annual reports; performanCe audit 26190. Beginning on March 1, 2020, and on or before March 1 of each year thereafter, each licensing authority shall prepare and submit to the Legislature an annual report on the authority’s activities concerning commercial marijuana activities and post the report on the authority’s Internet Web site. The report shall include, but not be limited to, the same type of information specified in Section 19353, and a detailed list of the petitions for regulatory relief or rulemaking changes received by the office from licensees requesting modifications of the enforcement of rules under this division. 26191. (a) Commencing January 1, 2019, and by January 1 of each year thereafter, the California State Auditor’s Office shall conduct a performance audit of the bureau’s activities under this division, and shall report its findings to the bureau and the Legislature by July 1 of that same year. The report shall include, but not be limited to, the following: (1) The actual costs of the program. (2) The overall effectiveness of enforcement programs. (3) Any report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code. (b) The Legislature shall provide sufficient funds to the California State Auditor’s Office to conduct the annual audit required by this section. and fine of up to thirty thousand dollars ($30,000) per individual violation. 26161. (a) Every sale or transport of marijuana or marijuana products from one licensee to another licensee must be recorded on a sales invoice or receipt. Sales invoices and receipts may be maintained electronically and must be filed in such manner as to be readily accessible for examination by employees of the bureau or Board of Equalization and shall not be commingled with invoices covering other commodities. (b) Each sales invoice required by subdivision (a) shall include the name and address of the seller and shall include the following information: (1) Name and address of the purchaser. (2) Date of sale and invoice number. (3) Kind, quantity, size, and capacity of packages of marijuana or marijuana products sold. (4) The cost to the purchaser, together with any discount applied to the price as shown on the invoice. (5) The place from which transport of the marijuana or marijuana product was made unless transport was made from the premises of the licensee. (6) Any other information specified by the bureau or the licensing authority. Chapter 17. traCK and traCe system 26170. (a) The Department of Food and Agriculture, in consultation with the bureau and the State Board of Equalization, shall expand the track and trace program provided for under Article 7.5 (commencing with Section 19335) of Chapter 3.5 of Division 8 to include the reporting of the movement of marijuana and marijuana products throughout the distribution chain and provide, at a minimum, the same level of information for marijuana and marijuana products as required to be reported for medical cannabis and medical cannabis products, and in addition, the amount of the cultivation tax due pursuant to Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code. The expanded track and trace program shall include an electronic seed to sale software tracking system with data points for the different stages of commercial activity including, but not limited to, cultivation, harvest, processing, distribution, inventory, and sale. (b) The department, in consultation with the bureau, shall ensure that licensees under this division are allowed to use third-party applications, programs and information technology systems to comply with the requirements of the expanded track and trace program described in subdivision (a) to report the movement of marijuana and marijuana products throughout the distribution chain and communicate such information to licensing agencies as required by law. (c) Any software, database or other information technology system utilized by the department to implement the expanded track and trace program shall support interoperability with third-party cannabis business software applications and allow all licensee-facing system activities to be performed through a secure application programming interface (API) or comparable technology which is well documented, bi-directional, and accessible to any third-party application that has been validated and has appropriate credentials. The API or comparable technology shall have version control and provide adequate notice of 64 Text of Proposed Laws | 197 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED 26211. (a) Funds for the initial establishment and support of the regulatory activities under this division, including the public information program described in subdivision (c), and for the activities of the Board of Equalization under Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code until July 1, 2017, or until the 2017 Budget Act is enacted, whichever occurs later, shall be advanced from the General Fund and shall be repaid by the initial proceeds from fees collected pursuant to this division, any rule or regulation adopted pursuant to this division, or revenues collected from the tax imposed by Sections 34011 and 34012 of the Revenue and Taxation Code, by January 1, 2025. (1) Funds advanced pursuant to this subdivision shall be appropriated to the bureau, which shall distribute the moneys to the appropriate licensing authorities, as necessary to implement the provisions of this division, and to the Board of Equalization, as necessary, to implement the provisions of Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code. (2) Within 45 days of this section becoming operative: (A) The Director of Finance shall determine an amount of the initial advance from the General Fund to the Marijuana Control Fund that does not exceed thirty million dollars ($30,000,000); and (B) There shall be advanced a sum of five million dollars ($5,000,000) from the General Fund to the State Department of Health Care Services to provide for the public information program described in subdivision (c). (b) Notwithstanding subdivision (a), the Legislature shall provide sufficient funds to the Marijuana Control Fund to support the activities of the bureau, state licensing authorities under this division, and the Board of Equalization to support its activities under Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code. It is anticipated that this funding will be provided annually beginning on July 1, 2017. (c) The State Department of Health Care Services shall establish and implement a public information program no later than September 1, 2017. This public information program shall, at a minimum, describe the provisions of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016, the scientific basis for restricting access of marijuana and marijuana products to persons under the age of 21 years, describe the penalties for providing access to marijuana and marijuana products to persons under the age of 21 years, provide information regarding the dangers of driving a motor vehicle, boat, vessel, aircraft, or other vehicle used for transportation while impaired from marijuana use, the potential harms of using marijuana while pregnant or breastfeeding, and the potential harms of overusing marijuana or marijuana products. SEC. 6.2. Section 147.6 is added to the Labor Code, to read: 147.6. (a) By March 1, 2018, the Division of Occupational Safety and Health shall convene an advisory committee to evaluate whether there is a need to develop industry-specific regulations related to the activities of licensees under Division 10 (commencing with Section 26000) of the Business and Professions Code, including but not limited to, whether specific requirements are needed to address exposure to second-hand marijuana smoke by employees at facilities where on-site consumption Chapter 20. loCal Control 26200. (a) Nothing in this division shall be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate businesses licensed under this division, including, but not limited to, local zoning and land use requirements, business license requirements, and requirements related to reducing exposure to secondhand smoke, or to completely prohibit the establishment or operation of one or more types of businesses licensed under this division within the local jurisdiction. (b) Nothing in this division shall be interpreted to require a licensing authority to undertake local law enforcement responsibilities, enforce local zoning requirements, or enforce local licensing requirements. (c) A local jurisdiction shall notify the bureau upon revocation of any local license, permit, or authorization for a licensee to engage in commercial marijuana activity within the local jurisdiction. Within 10 days of notification, the bureau shall inform the relevant licensing authorities. Within 10 days of being so informed by the bureau, the relevant licensing authorities shall commence proceedings under Chapter 3 (commencing with Section 26030) to determine whether a license issued to the licensee should be suspended or revoked. (d) Notwithstanding paragraph (1) of subdivision (a) of Section 11362.3 of the Health and Safety Code, a local jurisdiction may allow for the smoking, vaporizing, and ingesting of marijuana or marijuana products on the premises of a retailer or microbusiness licensed under this division if: (1) Access to the area where marijuana consumption is allowed is restricted to persons 21 years of age and older; (2) Marijuana consumption is not visible from any public place or non-age restricted area; and (3) Sale or consumption of alcohol or tobacco is not allowed on the premises. 26201. Any standards, requirements, and regulations regarding health and safety, environmental protection, testing, security, food safety, and worker protections established by the state shall be the minimum standards for all licensees under this division statewide. A local jurisdiction may establish additional standards, requirements, and regulations. 26202. (a) A local jurisdiction may enforce this division and the regulations promulgated by the bureau or any licensing authority if delegated the power to do so by the bureau or a licensing authority. (b) The bureau or any licensing authority shall implement the delegation of enforcement authority in subdivision (a) through a memorandum of understanding between the bureau or licensing authority and the local jurisdiction to which enforcement authority is to be delegated. Chapter 21. fundinG 26210. (a) The Medical Cannabis Regulation and Safety Act Fund established in Section 19351 is hereby renamed the Marijuana Control Fund. (b) Upon the effective date of this section, whenever “Medical Cannabis Regulation and Safety Act Fund” appears in any statute, regulation, or contract, or in any other code, it shall be construed to refer to the Marijuana Control Fund. 64 198 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (d) “Marijuana” shall have the same meaning as set forth in Section 11018 of the Health and Safety Code and shall also mean medical cannabis. (e) “Marijuana products” shall have the same meaning as set forth in Section 11018.1 of the Health and Safety Code and shall also mean medical concentrates and medical cannabis products. (f) “Marijuana flowers” shall mean the dried flowers of the marijuana plant as defined by the board. (g) “Marijuana leaves” shall mean all parts of the marijuana plant other than marijuana flowers that are sold or consumed. (h) “Gross receipts” shall have the same meaning as set forth in Section 6012. (i) “Retail sale” shall have the same meaning as set forth in Section 6007. (j) “Person” shall have the same meaning as set forth in Section 6005. (k) “Microbusiness” shall have the same meaning as set forth in paragraph (3) of subdivision (a) of Section 26070 of the Business and Professions Code. (l) “Nonprofit” shall have the same meaning as set forth in Section 26070.5 of the Business and Professions Code. 34011. (a) Effective January 1, 2018, a marijuana excise tax shall be imposed upon purchasers of marijuana or marijuana products sold in this state at the rate of 15 percent of the gross receipts of any retail sale by a dispensary or other person required to be licensed pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code or a retailer, microbusiness, nonprofit, or other person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code to sell marijuana and marijuana products directly to a purchaser. (b) Except as otherwise provided by regulation, the tax levied under this section shall apply to the full price, if nonitemized, of any transaction involving both marijuana or marijuana products and any other otherwise distinct and identifiable goods or services, and the price of any goods or services, if a reduction in the price of marijuana or marijuana products is contingent on purchase of those goods or services. (c) A dispensary or other person required to be licensed pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code or a retailer, microbusiness, nonprofit, or other person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code shall be responsible for collecting this tax and remitting it to the board in accordance with rules and procedures established under law and any regulations adopted by the board. (d) The excise tax imposed by this section shall be in addition to the sales and use tax imposed by the state and local governments. (e) Gross receipts from the sale of marijuana or marijuana products for purposes of assessing the sales and use tax under Part 1 of this division shall include the tax levied pursuant to this section. (f) No marijuana or marijuana products may be sold to a purchaser unless the excise tax required by law has been paid by the purchaser at the time of sale. of marijuana is permitted under subdivision (d) of Section 26200 of the Business and Professions Code, and whether specific requirements are needed to address the potential risks of combustion, inhalation, armed robberies or repetitive strain injuries. (b) By October 1, 2018, the advisory committee shall present to the board its findings and recommendations for consideration by the board. By October 1, 2018, the board shall render a decision regarding the adoption of industry-specific regulations pursuant to this section. SEC. 6.3. Section 13276 of the Water Code is amended to read: 13276. (a) The multiagency task force, the Department of Fish and Wildlife and State Water Resources Control Board pilot project to address the Environmental Impacts of Cannabis Cultivation, assigned to respond to the damages caused by marijuana cultivation on public and private lands in California, shall continue its enforcement efforts on a permanent basis and expand them to a statewide level to ensure the reduction of adverse impacts of marijuana cultivation on water quality and on fish and wildlife throughout the state. (b) Each regional board shall, and the State Water Resources Control Board may, address discharges of waste resulting from medical marijuana cultivation and commercial marijuana cultivation under Division 10 of the Business and Professions Code and associated activities, including by adopting a general permit, establishing waste discharge requirements, or taking action pursuant to Section 13269. In addressing these discharges, each regional board shall include conditions to address items that include, but are not limited to, all of the following: (1) Site development and maintenance, erosion control, and drainage features. (2) Stream crossing installation and maintenance. (3) Riparian and wetland protection and management. (4) Soil disposal. (5) Water storage and use. (6) Irrigation runoff. (7) Fertilizers and soil. (8) Pesticides and herbicides. (9) Petroleum products and other chemicals. (10) Cultivation-related waste. (11) Refuse and human waste. (12) Cleanup, restoration, and mitigation. SEC. 7. Marijuana Tax. SEC. 7.1. Part 14.5 (commencing with Section 34010) is added to Division 2 of the Revenue and Taxation Code, to read: PART 14.5. MARIJUANA TAX 34010. For purposes of this part: (a) “Board” shall mean the Board of Equalization or its successor agency. (b) “Bureau” shall mean the Bureau of Marijuana Control within the Department of Consumer Affairs. (c) “Tax Fund” means the California Marijuana Tax Fund created by Section 34018. 64 Text of Proposed Laws | 199 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (j) The tax imposed by this section shall be imposed on all marijuana cultivated in the state pursuant to rules and regulations promulgated by the board, but shall not apply to marijuana cultivated for personal use under Section 11362.1 of the Health and Safety Code or cultivated by a qualified patient or primary caregiver in accordance with the Compassionate Use Act. (k) Beginning January 1, 2020, the rates set forth in subdivisions (a), (b), and (c) shall be adjusted by the board annually thereafter for inflation. 34013. (a) The board shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2). For purposes of this part, the references in the Fee Collection Procedures Law to “fee” shall include the tax imposed by this part, and references to “feepayer” shall include a person required to pay or collect the tax imposed by this part. (b) The board may prescribe, adopt, and enforce regulations relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals. (c) The board shall adopt necessary rules and regulations to administer the taxes in this part. Such rules and regulations may include methods or procedures to tag marijuana or marijuana products, or the packages thereof, to designate prior tax payment. (d) The board may prescribe, adopt, and enforce any emergency regulations as necessary to implement, administer and enforce its duties under this division. Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare. Notwithstanding any other provision of law, the emergency regulations adopted by the board may remain in effect for two years from adoption. (e) Any person who fails to pay the taxes imposed under this part shall, in addition to owing the taxes not paid, be subject to a penalty of at least one-half the amount of the taxes not paid, and shall be subject to having its license revoked pursuant to Section 26031 of the Business and Professions Code or pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code. (f) The board may bring such legal actions as are necessary to collect any deficiency in the tax required to be paid, and, upon the board’s request, the Attorney General shall bring the actions. 34014. (a) All persons required to be licensed involved in the cultivation and retail sale of marijuana or marijuana products must obtain a separate permit from the board pursuant to regulations adopted by the board. No fee shall be charged to any person for issuance of the permit. Any person required to obtain a permit who engages in business as a cultivator, dispensary, retailer, microbusiness or nonprofit pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 or Division 10 (commencing with Section 26000) of the Business and Professions Code without a permit or after a permit has been canceled, (g) The sales and use tax imposed by Part 1 (commencing with Section 6001) shall not apply to retail sales of medical cannabis, medical cannabis concentrate, edible medical cannabis products or topical cannabis as those terms are defined in Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code when a qualified patient or primary caregiver for a qualified patient provides his or her card issued under Section 11362.71 of the Health and Safety Code and a valid government-issued identification card. 34012. (a) Effective January 1, 2018, there is hereby imposed a cultivation tax on all harvested marijuana that enters the commercial market upon all persons required to be licensed to cultivate marijuana pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code or Division 10 (commencing with Section 26000) of the Business and Professions Code. The tax shall be due after the marijuana is harvested. (1) The tax for marijuana flowers shall be nine dollars and twenty-five cents ($9.25) per dry-weight ounce. (2) The tax for marijuana leaves shall be set at two dollars and seventy-five cents ($2.75) per dry-weight ounce. (b) The board may adjust the tax rate for marijuana leaves annually to reflect fluctuations in the relative price of marijuana flowers to marijuana leaves. (c) The board may from time to time establish other categories of harvested marijuana, categories for unprocessed or frozen marijuana or immature plants, or marijuana that is shipped directly to manufacturers. These categories shall be taxed at their relative value compared with marijuana flowers. (d) The board may prescribe by regulation a method and manner for payment of the cultivation tax that utilizes tax stamps or state-issued product bags that indicate that all required tax has been paid on the product to which the tax stamp is affixed or in which the marijuana is packaged. (e) The tax stamps and product bags shall be of the designs, specifications and denominations as may be prescribed by the board and may be purchased by any licensee under Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code or under Division 10 (commencing with Section 26000) of the Business and Professions Code. (f) Subsequent to the establishment of a tax stamp program, the board may by regulation provide that no marijuana may be removed from a licensed cultivation facility or transported on a public highway unless in a state-issued product bag bearing a tax stamp in the proper denomination. (g) The tax stamps and product bags shall be capable of being read by a scanning or similar device and must be traceable utilizing the track and trace system pursuant to Section 26170 of the Business and Professions Code. (h) Persons required to be licensed to cultivate marijuana pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code or Division 10 (commencing with Section 26000) of the Business and Professions Code shall be responsible for payment of the tax pursuant to regulations adopted by the board. No marijuana may be sold unless the tax has been paid as provided in this part. (i) All marijuana removed from a cultivator’s premises, except for plant waste, shall be presumed to be sold and thereby taxable under this section. 64 200 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (2) Inspections may be at any place at which marijuana or marijuana products are sold to purchasers, cultivated, or stored, or at any site where evidence of activities involving evasion of tax may be discovered. (3) Inspections shall be requested or conducted no more than once in a 24-hour period. (b) Any person who fails or refuses to allow an inspection shall be guilty of a misdemeanor. Each offense shall be punished by a fine not to exceed five thousand dollars ($5,000), or imprisonment not exceeding one year in a county jail, or both the fine and imprisonment. The court shall order any fines assessed be deposited in the California Marijuana Tax Fund. (c) Upon discovery by the board or a law enforcement agency that a licensee or any other person possesses, stores, owns, or has made a retail sale of marijuana or marijuana products, without evidence of tax payment or not contained in secure packaging, the board or the law enforcement agency shall be authorized to seize the marijuana or marijuana products. Any marijuana or marijuana products seized by a law enforcement agency or the board shall within seven days be deemed forfeited and the board shall comply with the procedures set forth in Sections 30436 through 30449, inclusive. (d) Any person who renders a false or fraudulent report is guilty of a misdemeanor and subject to a fine not to exceed one thousand dollars ($1,000) for each offense. (e) Any violation of any provisions of this part, except as otherwise provided, is a misdemeanor and is punishable as such. (f) All moneys remitted to the board under this part shall be credited to the California Marijuana Tax Fund. 34017. The Legislative Analyst’s Office shall submit a report to the Legislature by January 1, 2020, with recommendations to the Legislature for adjustments to the tax rate to achieve the goals of undercutting illicit market prices and discouraging use by persons younger than 21 years of age while ensuring sufficient revenues are generated for the programs identified in Section 34019. 34018. (a) The California Marijuana Tax Fund is hereby created in the State Treasury. The Tax Fund shall consist of all taxes, interest, penalties, and other amounts collected and paid to the board pursuant to this part, less payment of refunds. (b) Notwithstanding any other law, the California Marijuana Tax Fund is a special trust fund established solely to carry out the purposes of the Control, Regulate and Tax Adult Use of Marijuana Act and all revenues deposited into the Tax Fund, together with interest or dividends earned by the fund, are hereby continuously appropriated for the purposes of the Control, Regulate and Tax Adult Use of Marijuana Act without regard to fiscal year and shall be expended only in accordance with the provisions of this part and its purposes. (c) Notwithstanding any other law, the taxes imposed by this part and the revenue derived therefrom, including investment interest, shall not be considered to be part of the General Fund, as that term is used in Chapter 1 (commencing with Section 16300) of Part 2 of Division 4 of the Government Code, shall not be considered General Fund revenue for purposes of Section 8 of Article XVI of the California Constitution and its implementing statutes, and shall not be considered “moneys” for purposes of suspended, or revoked, and each officer of any corporation which so engages in business, is guilty of a misdemeanor. (b) The board may require every licensed dispensary, cultivator, microbusiness, nonprofit, or other person required to be licensed, to provide security to cover the liability for taxes imposed by state law on marijuana produced or received by the cultivator, microbusiness, nonprofit, or other person required to be licensed in accordance with procedures to be established by the board. Notwithstanding anything herein to the contrary, the board may waive any security requirement it imposes for good cause, as determined by the board. “Good cause” includes, but is not limited to, the inability of a cultivator, microbusiness, nonprofit, or other person required to be licensed to obtain security due to a lack of service providers or the policies of service providers that prohibit service to a marijuana business. A person may not commence or continue any business or operation relating to marijuana cultivation until any surety required by the board with respect to the business or operation has been properly prepared, executed and submitted under this part. (c) In fixing the amount of any security required by the board, the board shall give consideration to the financial hardship that may be imposed on licensees as a result of any shortage of available surety providers. 34015. (a) The marijuana excise tax and cultivation tax imposed by this part is due and payable to the board quarterly on or before the last day of the month following each quarterly period of three months. On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the board by each person required to be licensed for cultivation or retail sale under Chapter 3.5 (commencing with Section 19300) of Division 8 or Division 10 (commencing with Section 26000) of the Business and Professions Code using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the board. If the cultivation tax is paid by stamp pursuant to subdivision (d) of Section 34012 the board may by regulation determine when and how the tax shall be paid. (b) The board may require every person engaged in the cultivation, distribution or retail sale of marijuana and marijuana products required to be licensed pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 or Division 10 (commencing with Section 26000) of the Business and Professions Code to file, on or before the 25th day of each month, a report using electronic media respecting the person’s inventory, purchases, and sales during the preceding month and any other information as the board may require to carry out the purposes of this part. Reports shall be authenticated in a form or pursuant to methods as may be prescribed by the board. 34016. (a) Any peace officer or board employee granted limited peace officer status pursuant to paragraph (6) of subdivision (a) of Section 830.11 of the Penal Code, upon presenting appropriate credentials, is authorized to enter any place as described in paragraph (3) and to conduct inspections in accordance with the following paragraphs, inclusive. (1) Inspections shall be performed in a reasonable manner and at times that are reasonable under the circumstances, taking into consideration the normal business hours of the place to be entered. 64 Text of Proposed Laws | 201 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED findings at a minimum of every two years and shall make the reports available to the public. The bureau shall select the universities to be funded. The research funded pursuant to this subdivision shall include but not necessarily be limited to: (1) Impacts on public health, including health costs associated with marijuana use, as well as whether marijuana use is associated with an increase or decrease in use of alcohol or other drugs. (2) The impact of treatment for maladaptive marijuana use and the effectiveness of different treatment programs. (3) Public safety issues related to marijuana use, including studying the effectiveness of the packaging and labeling requirements and advertising and marketing restrictions contained in the act at preventing underage access to and use of marijuana and marijuana products, and studying the health-related effects among users of varying potency levels of marijuana and marijuana products. (4) Marijuana use rates, maladaptive use rates for adults and youth, and diagnosis rates of marijuana-related substance use disorders. (5) Marijuana market prices, illicit market prices, tax structures and rates, including an evaluation of how to best tax marijuana based on potency, and the structure and function of licensed marijuana businesses. (6) Whether additional protections are needed to prevent unlawful monopolies or anti-competitive behavior from occurring in the nonmedical marijuana industry and, if so, recommendations as to the most effective measures for preventing such behavior. (7) The economic impacts in the private and public sectors, including, but not necessarily limited to, job creation, workplace safety, revenues, taxes generated for state and local budgets, and criminal justice impacts, including, but not necessarily limited to, impacts on law enforcement and public resources, short and long term consequences of involvement in the criminal justice system, and state and local government agency administrative costs and revenue. (8) Whether the regulatory agencies tasked with implementing and enforcing the Control, Regulate and Tax Adult Use of Marijuana Act are doing so consistent with the purposes of the act, and whether different agencies might do so more effectively. (9) Environmental issues related to marijuana production and the criminal prohibition of marijuana production. (10) The geographic location, structure, and function of licensed marijuana businesses, and demographic data, including race, ethnicity, and gender, of license holders. (11) The outcomes achieved by the changes in criminal penalties made under the Control, Regulate and Tax Adult Use of Marijuana Act for marijuana-related offenses, and the outcomes of the juvenile justice system, in particular, probation-based treatments and the frequency of up-charging illegal possession of marijuana or marijuana products to a more serious offense. (c) The Controller shall next disburse the sum of three million dollars ($3,000,000) annually to the Department of the California Highway Patrol beginning fiscal year 2018–2019 until fiscal year 2022–2023 to establish and adopt protocols to determine whether a driver is operating a vehicle while impaired, including impairment by the use of marijuana or marijuana products, and to establish and subdivisions (a) and (b) of Section 8 of Article XVI of the California Constitution and its implementing statutes. 34019. (a) Beginning with fiscal year 2017–2018 the Department of Finance shall estimate revenues to be received pursuant to Sections 34011 and 34012 and provide those estimates to the Controller no later than June 15 of each year. The Controller shall use these estimates when disbursing funds pursuant to this section. Before any funds are disbursed pursuant to subdivisions (b), (c), (d), and (e) of this section, the Controller shall disburse from the Tax Fund to the appropriate account, without regard to fiscal year, the following: (1) Reasonable costs incurred by the board for administering and collecting the taxes imposed by this part; provided, however, such costs shall not exceed 4 percent of tax revenues received. (2) Reasonable costs incurred by the bureau, the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health for implementing, administering, and enforcing Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code and Division 10 (commencing with Section 26000) of the Business and Professions Code to the extent those costs are not reimbursed pursuant to Section 26180 of the Business and Professions Code or pursuant to Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code. This paragraph shall remain operative through fiscal year 2022–2023. (3) Reasonable costs incurred by the Department of Fish and Wildlife, the State Water Resources Control Board, and the Department of Pesticide Regulation for carrying out their respective duties under Chapter 3.5 (commencing with Section 19300) of Division 8 or Division 10 (commencing with Section 26000) of the Business and Professions Code to the extent those costs are not otherwise reimbursed. (4) Reasonable costs incurred by the Controller for performing duties imposed by the Control, Regulate and Tax Adult Use of Marijuana Act, including the audit required by Section 34020. (5) Reasonable costs incurred by the State Auditor for conducting the performance audit pursuant to Section 26191 of the Business and Professions Code. (6) Reasonable costs incurred by the Legislative Analyst’s Office for performing duties imposed by Section 34017. (7) Sufficient funds to reimburse the Division of Labor Standards Enforcement and the Division of Occupational Safety and Health within the Department of Industrial Relations and the Employment Development Department for the costs of applying and enforcing state labor laws to licensees under Chapter 3.5 (commencing with Section 19300) of Division 8 and Division 10 (commencing with Section 26000) of the Business and Professions Code. (b) The Controller shall next disburse the sum of ten million dollars ($10,000,000) to a public university or universities in California annually beginning with fiscal year 2018–2019 until fiscal year 2028–2029 to research and evaluate the implementation and effect of the Control, Regulate and Tax Adult Use of Marijuana Act, and shall, if appropriate, make recommendations to the Legislature and Governor regarding possible amendments to the Control, Regulate and Tax Adult Use of Marijuana Act. The recipients of these funds shall publish reports on their 64 202 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED care providers, juvenile and family courts, and others to recognize and reduce risks related to substance use, and the early signs of problematic use and of substance use disorders. (B) Grants to schools to develop and support student assistance programs, or other similar programs, designed to prevent and reduce substance use, and improve school retention and performance, by supporting students who are at risk of dropping out of school and promoting alternatives to suspension or expulsion that focus on school retention, remediation, and professional care. Schools with higher than average dropout rates should be prioritized for grants. (C) Grants to programs for outreach, education and treatment for homeless youth and out-of-school youth with substance use disorders. (D) Access and linkage to care provided by county behavioral health programs for youth, and their families and caregivers, who have a substance use disorder or who are at risk for developing a substance use disorder. (E) Youth-focused substance use disorder treatment programs that are culturally and gender competent, trauma-informed, evidence-based and provide a continuum of care that includes screening and assessment (substance use disorder as well as mental health), early intervention, active treatment, family involvement, case management, overdose prevention, prevention of communicable diseases related to substance use, relapse management for substance use and other co-occurring behavioral health disorders, vocational services, literacy services, parenting classes, family therapy and counseling services, medication-assisted treatments, psychiatric medication and psychotherapy. When indicated, referrals must be made to other providers. (F) To the extent permitted by law and where indicated, interventions shall utilize a two-generation approach to addressing substance use disorders with the capacity to treat youth and adults together. This would include supporting the development of family-based interventions that address substance use disorders and related problems within the context of families, including parents, foster parents, caregivers and all their children. (G) Programs to assist individuals, as well as families and friends of drug using young people, to reduce the stigma associated with substance use including being diagnosed with a substance use disorder or seeking substance use disorder services. This includes peer-run outreach and education to reduce stigma, anti-stigma campaigns, and community recovery networks. (H) Workforce training and wage structures that increase the hiring pool of behavioral health staff with substance use disorder prevention and treatment expertise. Provide ongoing education and coaching that increases substance use treatment providers’ core competencies and trains providers on promising and evidenced-based practices. (I) Construction of community-based youth treatment facilities. (J) The departments may contract with each county behavioral health program for the provision of services. (K) Funds shall be allocated to counties based on demonstrated need, including the number of youth in the county, the prevalence of substance use disorders among adults, and confirmed through statistical data, validated adopt protocols setting forth best practices to assist law enforcement agencies. The department may hire personnel to establish the protocols specified in this subdivision. In addition, the department may make grants to public and private research institutions for the purpose of developing technology for determining when a driver is operating a vehicle while impaired, including impairment by the use of marijuana or marijuana products. (d) The Controller shall next disburse the sum of ten million dollars ($10,000,000) beginning fiscal year 2018–2019 and increasing ten million dollars ($10,000,000) each fiscal year thereafter until fiscal year 2022–2023, at which time the disbursement shall be fifty million dollars ($50,000,000) each year thereafter, to the Governor’s Office of Business and Economic Development, in consultation with the Labor and Workforce Development Agency and the State Department of Social Services, to administer a community reinvestments grants program to local health departments and at least 50 percent to qualified community-based nonprofit organizations to support job placement, mental health treatment, substance use disorder treatment, system navigation services, legal services to address barriers to reentry, and linkages to medical care for communities disproportionately affected by past federal and state drug policies. The office shall solicit input from community-based job skills, job placement, and legal service providers with relevant expertise as to the administration of the grants program. In addition, the office shall periodically evaluate the programs it is funding to determine the effectiveness of the programs, shall not spend more than 4 percent for administrative costs related to implementation, evaluation and oversight of the programs, and shall award grants annually, beginning no later than January 1, 2020. (e) The Controller shall next disburse the sum of two million dollars ($2,000,000) annually to the University of California San Diego Center for Medicinal Cannabis Research to further the objectives of the center including the enhanced understanding of the efficacy and adverse effects of marijuana as a pharmacological agent. (f) By July 15 of each fiscal year beginning in fiscal year 2018–2019, the Controller shall, after disbursing funds pursuant to subdivisions (a), (b), (c), (d), and (e), disburse funds deposited in the Tax Fund during the prior fiscal year into sub-trust accounts, which are hereby created, as follows: (1) Sixty percent shall be deposited in the Youth Education, Prevention, Early Intervention and Treatment Account, and disbursed by the Controller to the State Department of Health Care Services for programs for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance use. The State Department of Health Care Services shall enter into interagency agreements with the State Department of Public Health and the State Department of Education to implement and administer these programs. The programs shall emphasize accurate education, effective prevention, early intervention, school retention, and timely treatment services for youth, their families and caregivers. The programs may include, but are not limited to, the following components: (A) Prevention and early intervention services including outreach, risk survey and education to youth, families, caregivers, schools, primary care health providers, behavioral health and substance use disorder service providers, community and faith-based organizations, foster 64 Text of Proposed Laws | 203 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED General Fund appropriations to the Department of Fish and Wildlife and the Department of Parks and Recreation shall not be reduced below the levels provided in the Budget Act of 2014 (Chapter 25 of the Statutes of 2014). (3) Twenty percent shall be deposited into the State and Local Government Law Enforcement Account and disbursed by the Controller as follows: (A) To the Department of the California Highway Patrol for conducting training programs for detecting, testing and enforcing laws against driving under the influence of alcohol and other drugs, including driving under the influence of marijuana. The department may hire personnel to conduct the training programs specified in this subparagraph. (B) To the Department of the California Highway Patrol to fund internal California Highway Patrol programs and grants to qualified nonprofit organizations and local governments for education, prevention and enforcement of laws related to driving under the influence of alcohol and other drugs, including marijuana; programs that help enforce traffic laws, educate the public in traffic safety, provide varied and effective means of reducing fatalities, injuries and economic losses from collisions; and for the purchase of equipment related to enforcement of laws related to driving under the influence of alcohol and other drugs, including marijuana. (C) To the Board of State and Community Corrections for making grants to local governments to assist with law enforcement, fire protection, or other local programs addressing public health and safety associated with the implementation of the Control, Regulate and Tax Adult Use of Marijuana Act. The board shall not make any grants to local governments which have banned the cultivation, including personal cultivation under paragraph (3) of subdivision (b) of Section 11362.2 of the Health and Safety Code, or retail sale of marijuana or marijuana products pursuant to Section 26200 of the Business and Professions Code or as otherwise provided by law. (D) For purposes of this paragraph, the Department of Finance shall determine the allocation of revenues between the agencies; provided, however, beginning in fiscal year 2022–2023 the amount allocated pursuant to subparagraph (A) shall not be less than ten million dollars ($10,000,000) annually and the amount allocated pursuant to subparagraph (B) shall not be less than forty million dollars ($40,000,000) annually. In determining the amount to be allocated before fiscal year 2022–2023 pursuant to this paragraph, the Department of Finance shall give initial priority to subparagraph (A). (g) Funds allocated pursuant to subdivision (f) shall be used to increase the funding of programs and purposes identified and shall not be used to replace allocation of other funding for these purposes. (h) Effective July 1, 2028, the Legislature may amend this section by majority vote to further the purposes of the Control, Regulate and Tax Adult Use of Marijuana Act, including allocating funds to programs other than those specified in subdivisions (d) and (f). Any revisions pursuant to this subdivision shall not result in a reduction of funds to accounts established pursuant to subdivisions (d) and (f) in any subsequent year from the amount allocated to each account in fiscal year 2027–2028. Prior to July 1, 2028, the Legislature may not change the allocations to programs specified in subdivisions (d) and (f). assessments or submitted reports prepared by the applicable county to demonstrate and validate need. (L) The departments shall periodically evaluate the programs they are funding to determine the effectiveness of the programs. (M) The departments may use up to 4 percent of the moneys allocated to the Youth Education, Prevention, Early Intervention and Treatment Account for administrative costs related to implementation, evaluation and oversight of the programs. (N) If the Department of Finance ever determines that funding pursuant to marijuana taxation exceeds demand for youth prevention and treatment services in the state, the departments shall provide a plan to the Department of Finance to provide treatment services to adults as well as youth using these funds. (O) The departments shall solicit input from volunteer health organizations, physicians who treat addiction, treatment researchers, family therapy and counseling providers, and professional education associations with relevant expertise as to the administration of any grants made pursuant to this paragraph. (2) Twenty percent shall be deposited in the Environmental Restoration and Protection Account, and disbursed by the Controller as follows: (A) To the Department of Fish and Wildlife and the Department of Parks and Recreation for the cleanup, remediation, and restoration of environmental damage in watersheds affected by marijuana cultivation and related activities including, but not limited to, damage that occurred prior to enactment of this part, and to support local partnerships for this purpose. The Department of Fish and Wildlife and the Department of Parks and Recreation may distribute a portion of the funds they receive from the Environmental Restoration and Protection Account through grants for purposes specified in this paragraph. (B) To the Department of Fish and Wildlife and the Department of Parks and Recreation for the stewardship and operation of state-owned wildlife habitat areas and state park units in a manner that discourages and prevents the illegal cultivation, production, sale and use of marijuana and marijuana products on public lands, and to facilitate the investigation, enforcement and prosecution of illegal cultivation, production, sale, and use of marijuana or marijuana products on public lands. (C) To the Department of Fish and Wildlife to assist in funding the watershed enforcement program and multiagency taskforce established pursuant to subdivisions (b) and (c) of Section 12029 of the Fish and Game Code to facilitate the investigation, enforcement, and prosecution of these offenses and to ensure the reduction of adverse impacts of marijuana cultivation, production, sale, and use on fish and wildlife habitats throughout the state. (D) For purposes of this paragraph, the Secretary of the Natural Resources Agency shall determine the allocation of revenues between the departments. During the first five years of implementation, first consideration should be given to funding purposes specified in subparagraph (A). (E) Funds allocated pursuant to this paragraph shall be used to increase and enhance activities described in subparagraphs (A), (B), and (C), and not replace allocation of other funding for these purposes. Accordingly, annual 64 204 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED convictions for an offense specified in clause (iv) of subparagraph (C) of paragraph (2) of subdivision (e) of Section 667 of the Penal Code or for an offense requiring registration pursuant to subdivision (c) of Section 290 of the Penal Code. (b) (a) Except as authorized by law, every person who possesses possession of not more than 28.5 grams of marijuana, other than or not more than four grams of concentrated cannabis, is guilty of an infraction punishable by a fine of not more than one hundred dollars ($100). or both, shall be punished or adjudicated as follows: (1) Persons under the age of 18 shall be guilty of an infraction and shall be required to: (A) Upon a finding that a first offense has been committed, complete four hours of drug education or counseling and up to 10 hours of community service over a period not to exceed 60 days. (B) Upon a finding that a second offense or subsequent offense has been committed, complete six hours of drug education or counseling and up to 20 hours of community service over a period not to exceed 90 days. (2) Persons at least 18 years of age but less than 21 years of age shall be guilty of an infraction and punishable by a fine of not more than one hundred dollars ($100). (c) (b) Except as authorized by law, every person who possesses possession of more than 28.5 grams of marijuana, or more than four grams of other than concentrated cannabis, shall be punished as follows: (1) Persons under the age of 18 who possess more than 28.5 grams of marijuana or more than four grams of concentrated cannabis, or both, shall be guilty of an infraction and shall be required to: (A) Upon a finding that a first offense has been committed, complete eight hours of drug education or counseling and up to 40 hours of community service over a period not to exceed 90 days. (B) Upon a finding that a second or subsequent offense has been committed, complete 10 hours of drug education or counseling and up to 60 hours of community service over a period not to exceed 120 days. (2) Persons 18 years of age or over who possess more than 28.5 grams of marijuana, or more than four grams of concentrated cannabis, or both, shall be punished by imprisonment in a county jail for a period of not more than six months or by a fine of not more than five hundred dollars ($500), or by both such fine and imprisonment. (d) (c) Except as authorized by law, every person 18 years of age or over who possesses not more than 28.5 grams of marijuana, or not more than four grams of other than concentrated cannabis, upon the grounds of, or within, any school providing instruction in kindergarten or any of grades 1 through 12 during hours the school is open for classes or school-related programs is guilty of a misdemeanor and shall be punished by a as follows: (1) A fine of not more than two hundred fifty dollars ($250), upon a finding that a first offense has been committed. (2) A fine of not more than five hundred dollars ($500), or by imprisonment in a county jail for a period of not more than 10 days, or both, upon a finding that a second or subsequent offense has been committed. (e) (d) Except as authorized by law, every person under the age of 18 who possesses not more than 28.5 grams of 34020. The Controller shall periodically audit the Tax Fund to ensure that those funds are used and accounted for in a manner consistent with this part and as otherwise required by law. 34021. The taxes imposed by this part shall be in addition to any other tax imposed by a city, county, or city and county. 34021.5. (a) (1) A county may impose a tax on the privilege of cultivating, manufacturing, producing, processing, preparing, storing, providing, donating, selling, or distributing marijuana or marijuana products by a licensee operating under Chapter 3.5 (commencing with Section 19300) of Division 8 or Division 10 (commencing with Section 26000) of the Business and Professions Code. (2) The board of supervisors shall specify in the ordinance proposing the tax the activities subject to the tax, the applicable rate or rates, the method of apportionment, if necessary, and the manner of collection of the tax. The tax may be imposed for general governmental purposes or for purposes specified in the ordinance by the board of supervisors. (3) In addition to any other method of collection authorized by law, the board of supervisors may provide for the collection of the tax imposed pursuant to this section in the same manner, and subject to the same penalties and priority of lien, as other charges and taxes fixed and collected by the county. A tax imposed pursuant to this section is a tax and not a fee or special assessment. The board of supervisors shall specify whether the tax applies throughout the entire county or within the unincorporated area of the county. (4) The tax authorized by this section may be imposed upon any or all of the activities set forth in paragraph (1), as specified in the ordinance, regardless of whether the activity is undertaken individually, collectively, or cooperatively, and regardless of whether the activity is for compensation or gratuitous, as determined by the board of supervisors. (b) A tax imposed pursuant to this section shall be subject to applicable voter approval requirements imposed by law. (c) This section is declaratory of existing law and does not limit or prohibit the levy or collection of any other fee, charge, or tax, or a license or service fee or charge upon, or related to, the activities set forth in subdivision (a) as otherwise provided by law. This section shall not be construed as a limitation upon the taxing authority of a county as provided by law. (d) This section shall not be construed to authorize a county to impose a sales or use tax in addition to the sales and use tax imposed under an ordinance conforming to the provisions of Sections 7202 and 7203 of the Revenue and Taxation Code. SEC. 8. Criminal Offenses, Records, and Resentencing. SEC. 8.1. Section 11357 of the Health and Safety Code is amended to read: 11357. Possession. (a) Except as authorized by law, every person who possesses any concentrated cannabis shall be punished by imprisonment in the county jail for a period of not more than one year or by a fine of not more than five hundred dollars ($500), or by both such fine and imprisonment, except that such person may instead be punished pursuant to subdivision (h) of Section 1170 of the Penal Code if that person has one or more prior 64 Text of Proposed Laws | 205 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (E) Violation of Section 374.8 of the Penal Code relating to hazardous substances or Section 25189.5, 25189.6, or 25189.7 of the Health and Safety Code relating to hazardous waste; (F) Violation of Section 2080 of the Fish and Game Code relating to endangered and threatened species or Section 3513 of the Fish and Game Code relating to the Migratory Bird Treaty Act; or (G) Intentionally or with gross negligence causing substantial environmental harm to public lands or other public resources. SEC. 8.3. Section 11359 of the Health and Safety Code is amended to read: 11359. Possession for Sale. Every person who possesses for sale any marijuana, except as otherwise provided by law, shall be punished as follows: (a) Every person under the age of 18 who possesses marijuana for sale shall be punished in the same manner provided in paragraph (1) of subdivision (b) of Section 11357. (b) Every person 18 years of age or over who possesses marijuana for sale shall be punished by imprisonment in a county jail for a period of not more than six months or by a fine of not more than five hundred dollars ($500), or by both such fine and imprisonment. (c) Notwithstanding subdivision (b), a person 18 years of age or over who possesses marijuana for sale may be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code if: (1) The person has one or more prior convictions for an offense specified in clause (iv) of subparagraph (C) of paragraph (2) of subdivision (e) of Section 667 of the Penal Code or for an offense requiring registration pursuant to subdivision (c) of Section 290 of the Penal Code; (2) The person has two or more prior convictions under subdivision (b); or (3) The offense occurred in connection with the knowing sale or attempted sale of marijuana to a person under the age of 18 years. (d) Notwithstanding subdivision (b), a person 21 years of age or over who possesses marijuana for sale may be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code if the offense involves knowingly hiring, employing, or using a person 20 years of age or younger in unlawfully cultivating, transporting, carrying, selling, offering to sell, giving away, preparing for sale, or peddling any marijuana. SEC. 8.4. Section 11360 of the Health and Safety Code is amended to read: 11360. Unlawful Transportation, Importation, Sale, or Gift. (a) Except as otherwise provided by this section or as authorized by law, every person who transports, imports into this state, sells, furnishes, administers, or gives away, or offers to transport, import into this state, sell, furnish, administer, or give away, or attempts to import into this state or transport any marijuana shall be punished as follows: (1) Persons under the age of 18 years shall be punished in the same manner as provided in paragraph (1) of subdivision (b) of Section 11357. marijuana, or not more than four grams of other than concentrated cannabis, upon the grounds of, or within, any school providing instruction in kindergarten or any of grades 1 through 12 during hours the school is open for classes or school-related programs is guilty of a misdemeanor an infraction and shall be punished in the same manner provided in paragraph (1) of subdivision (b). subject to the following dispositions: (1) A fine of not more than two hundred fifty dollars ($250), upon a finding that a first offense has been committed. (2) A fine of not more than five hundred dollars ($500), or commitment to a juvenile hall, ranch, camp, forestry camp, or secure juvenile home for a period of not more than 10 days, or both, upon a finding that a second or subsequent offense has been committed. SEC. 8.2. Section 11358 of the Health and Safety Code is amended to read: 11358. Planting, Harvesting, or Processing. Every person who plants, cultivates, harvests, dries, or processes any marijuana plants, or any part thereof, except as otherwise provided by law, shall be punished as follows: (a) Every person under the age of 18 who plants, cultivates, harvests, dries, or processes any marijuana plants shall be punished in the same manner provided in paragraph (1) of subdivision (b) of Section 11357. (b) Every person at least 18 years of age but less than 21 years of age who plants, cultivates, harvests, dries, or processes not more than six living marijuana plants shall be guilty of an infraction and a fine of not more than one hundred dollars ($100). (c) Every person 18 years of age or over who plants, cultivates, harvests, dries, or processes more than six living marijuana plants shall be punished by imprisonment in a county jail for a period of not more than six months or by a fine of not more than five hundred dollars ($500), or by both such fine and imprisonment. (d) Notwithstanding subdivision (c), a person 18 years of age or over who plants, cultivates, harvests, dries, or processes more than six living marijuana plants, or any part thereof, except as otherwise provided by law, shall may be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code if: (1) The person has one or more prior convictions for an offense specified in clause (iv) of subparagraph (C) of paragraph (2) of subdivision (e) of Section 667 of the Penal Code or for an offense requiring registration pursuant to subdivision (c) of Section 290 of the Penal Code; (2) The person has two or more prior convictions under subdivision (c); or (3) The offense resulted in any of the following: (A) Violation of Section 1052 of the Water Code relating to illegal diversion of water; (B) Violation of Section 13260, 13264, 13272, or 13387 of the Water Code relating to discharge of waste; (C) Violation of Fish and Game Code Section 5650 or Section 5652 of the Fish and Game Code relating to waters of the state; (D) Violation of Section 1602 of the Fish and Game Code relating to rivers, streams and lakes; 64 206 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED (a) Records of any court of this state, any public or private agency that provides services upon referral under Section 1000.2 of the Penal Code, or of any state agency pertaining to the arrest or conviction of any person for a violation of subdivision (b), (c), (d), or (e) of Section 11357 or subdivision (b) of Section 11360, or pertaining to the arrest or conviction of any person under the age of 18 for a violation of any provision of this article except Section 11357.5, shall not be kept beyond two years from the date of the conviction, or from the date of the arrest if there was no conviction, except with respect to a violation of subdivision (e) (d) of Section 11357, or any other violation by a person under the age of 18 occurring upon the grounds of, or within, any school providing instruction in kindergarten or any of grades 1 through 12 during hours the school is open for classes or school-related programs, the records shall be retained until the offender attains the age of 18 years at which time the records shall be destroyed as provided in this section. Any court or agency having custody of the records, including the statewide criminal databases, shall provide for the timely destruction of the records in accordance with subdivision (c), and such records must also be purged from the statewide criminal databases. As used in this subdivision, “records pertaining to the arrest or conviction” shall include records of arrests resulting in the criminal proceeding and records relating to other offenses charged in the accusatory pleading, whether defendant was acquitted or charges were dismissed. The two-year period beyond which records shall not be kept pursuant to this subdivision shall not apply to any person who is, at the time at which this subdivision would otherwise require record destruction, incarcerated for an offense subject to this subdivision. For such persons, the two-year period shall begin to run from the date the person is released from custody. The requirements of this subdivision do not apply to records of any conviction occurring prior to January 1, 1976, or records of any arrest not followed by a conviction occurring prior to that date, or records of any arrest for an offense specified in subdivision (c) of Section 1192.7, or subdivision (c) of Section 667.5 of the Penal Code. (b) This subdivision applies only to records of convictions and arrests not followed by conviction occurring prior to January 1, 1976, for any of the following offenses: (1) Any violation of Section 11357 or a statutory predecessor thereof. (2) Unlawful possession of a device, contrivance, instrument, or paraphernalia used for unlawfully smoking marijuana, in violation of Section 11364, as it existed prior to January 1, 1976, or a statutory predecessor thereof. (3) Unlawful visitation or presence in a room or place in which marijuana is being unlawfully smoked or used, in violation of Section 11365, as it existed prior to January 1, 1976, or a statutory predecessor thereof. (4) Unlawfully using or being under the influence of marijuana, in violation of Section 11550, as it existed prior to January 1, 1976, or a statutory predecessor thereof. Any person subject to an arrest or conviction for those offenses may apply to the Department of Justice for destruction of records pertaining to the arrest or conviction if two or more years have elapsed since the date of the conviction, or since the date of the arrest if not followed by a conviction. The application shall be submitted upon a form supplied by the Department of Justice and shall be (2) Persons 18 years of age or over shall be punished by imprisonment in a county jail for a period of not more than six months or by a fine of not more than five hundred dollars ($500), or by both such fine and imprisonment. (3) Notwithstanding paragraph (2), a person 18 years of age or over may be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of two, three or four years if: (A) The person has one or more prior convictions for an offense specified in clause (iv) of subparagraph (C) of paragraph (2) of subdivision (e) of Section 667 of the Penal Code or for an offense requiring registration pursuant to subdivision (c) of Section 290 of the Penal Code; (B) The person has two or more prior convictions under paragraph (2); (C) The offense involved the knowing sale, attempted sale, or the knowing offer to sell, furnish, administer or give away marijuana to a person under the age of 18 years; or (D) The offense involved the import, offer to import, or attempted import into this state, or the transport for sale, offer to transport for sale, or attempted transport for sale out of this state, of more than 28.5 grams of marijuana or more than four grams of concentrated cannabis. (b) Except as authorized by law, every person who gives away, offers to give away, transports, offers to transport, or attempts to transport not more than 28.5 grams of marijuana, other than concentrated cannabis, is guilty of an infraction misdemeanor and shall be punished by a fine of not more than one hundred dollars ($100). In any case in which a person is arrested for a violation of this subdivision and does not demand to be taken before a magistrate, such person shall be released by the arresting officer upon presentation of satisfactory evidence of identity and giving his or her written promise to appear in court, as provided in Section 853.6 of the Penal Code, and shall not be subjected to booking. (c) For purposes of this section, “transport” means to transport for sale. (d) This section does not preclude or limit prosecution for any aiding and abetting or conspiracy offenses. SEC. 8.5. Section 11361.1 is added to the Health and Safety Code, to read: 11361.1. (a) The drug education and counseling requirements under Sections 11357, 11358, 11359, and 11360 shall be: (1) Mandatory, unless the court finds that such drug education or counseling is unnecessary for the person, or that a drug education or counseling program is unavailable; (2) Free to participants, and the drug education provides at least four hours of group discussion or instruction based on science and evidence-based principles and practices specific to the use and abuse of marijuana and other controlled substances. (b) For good cause, the court may grant an extension of time not to exceed 30 days for a person to complete the drug education and counseling required under Sections 11357, 11358, 11359, and 11360. SEC. 8.6. Section 11361.5 of the Health and Safety Code is amended to read: 11361.5. Destruction of Arrest and Conviction Records; Procedure; Exceptions. 64 Text of Proposed Laws | 207 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED than two years have elapsed from the date of the conviction or arrest without conviction. SEC. 8.7. Section 11361.8 is added to the Health and Safety Code, to read: 11361.8. (a) A person currently serving a sentence for a conviction, whether by trial or by open or negotiated plea, who would not have been guilty of an offense, or who would have been guilty of a lesser offense under the Control, Regulate and Tax Adult Use of Marijuana Act had that act been in effect at the time of the offense may petition for a recall or dismissal of sentence before the trial court that entered the judgment of conviction in his or her case to request resentencing or dismissal in accordance with Sections 11357, 11358, 11359, 11360, 11362.1, 11362.2, 11362.3, and 11362.4 as those sections have been amended or added by that act. (b) Upon receiving a petition under subdivision (a), the court shall presume the petitioner satisfies the criteria in subdivision (a) unless the party opposing the petition proves by clear and convincing evidence that the petitioner does not satisfy the criteria. If the petitioner satisfies the criteria in subdivision (a), the court shall grant the petition to recall the sentence or dismiss the sentence because it is legally invalid unless the court determines that granting the petition would pose an unreasonable risk of danger to public safety. (1) In exercising its discretion, the court may consider, but shall not be limited to evidence provided for in subdivision (b) of Section 1170.18 of the Penal Code. (2) As used in this section, “unreasonable risk of danger to public safety” has the same meaning as provided in subdivision (c) of Section 1170.18 of the Penal Code. (c) A person who is serving a sentence and is resentenced pursuant to subdivision (b) shall be given credit for any time already served and shall be subject to supervision for one year following completion of his or her time in custody or shall be subject to whatever supervision time he or she would have otherwise been subject to after release, whichever is shorter, unless the court, in its discretion, as part of its resentencing order, releases the person from supervision. Such person is subject to parole supervision under Section 3000.08 of the Penal Code or post-release community supervision under subdivision (a) of Section 3451 of the Penal Code by the designated agency and the jurisdiction of the court in the county in which the offender is released or resides, or in which an alleged violation of supervision has occurred, for the purpose of hearing petitions to revoke supervision and impose a term of custody. (d) Under no circumstances may resentencing under this section result in the imposition of a term longer than the original sentence, or the reinstatement of charges dismissed pursuant to a negotiated plea agreement. (e) A person who has completed his or her sentence for a conviction under Sections 11357, 11358, 11359, and 11360, whether by trial or open or negotiated plea, who would not have been guilty of an offense or who would have been guilty of a lesser offense under the Control, Regulate and Tax Adult Use of Marijuana Act had that act been in effect at the time of the offense, may file an application before the trial court that entered the judgment of conviction in his or her case to have the conviction dismissed and sealed because the prior conviction is now legally invalid or redesignated as a misdemeanor or infraction in accordance with Sections 11357, 11358, accompanied by a fee, which shall be established by the department in an amount which will defray the cost of administering this subdivision and costs incurred by the state under subdivision (c), but which shall not exceed thirty-seven dollars and fifty cents ($37.50). The application form may be made available at every local police or sheriff’s department and from the Department of Justice and may require that information which the department determines is necessary for purposes of identification. The department may request, but not require, the applicant to include a self-administered fingerprint upon the application. If the department is unable to sufficiently identify the applicant for purposes of this subdivision without the fingerprint or without additional fingerprints, it shall so notify the applicant and shall request the applicant to submit any fingerprints which may be required to effect identification, including a complete set if necessary, or, alternatively, to abandon the application and request a refund of all or a portion of the fee submitted with the application, as provided in this section. If the applicant fails or refuses to submit fingerprints in accordance with the department’s request within a reasonable time which shall be established by the department, or if the applicant requests a refund of the fee, the department shall promptly mail a refund to the applicant at the address specified in the application or at any other address which may be specified by the applicant. However, if the department has notified the applicant that election to abandon the application will result in forfeiture of a specified amount which is a portion of the fee, the department may retain a portion of the fee which the department determines will defray the actual costs of processing the application, provided the amount of the portion retained shall not exceed ten dollars ($10). Upon receipt of a sufficient application, the Department of Justice shall destroy records of the department, if any, pertaining to the arrest or conviction in the manner prescribed by subdivision (c) and shall notify the Federal Bureau of Investigation, the law enforcement agency which arrested the applicant, and, if the applicant was convicted, the probation department which investigated the applicant and the Department of Motor Vehicles, of the application. (c) Destruction of records of arrest or conviction pursuant to subdivision (a) or (b) shall be accomplished by permanent obliteration of all entries or notations upon the records pertaining to the arrest or conviction, and the record shall be prepared again so that it appears that the arrest or conviction never occurred. However, where (1) the only entries upon the record pertain to the arrest or conviction and (2) the record can be destroyed without necessarily effecting the destruction of other records, then the document constituting the record shall be physically destroyed. (d) Notwithstanding subdivision (a) or (b), written transcriptions of oral testimony in court proceedings and published judicial appellate reports are not subject to this section. Additionally, no records shall be destroyed pursuant to subdivision (a) if the defendant or a codefendant has filed a civil action against the peace officers or law enforcement jurisdiction which made the arrest or instituted the prosecution and if the agency which is the custodian of those records has received a certified copy of the complaint in the civil action, until the civil action has finally been resolved. Immediately following the final resolution of the civil action, records subject to subdivision (a) shall be destroyed pursuant to subdivision (c) if more 64 208 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED stalks, except the resin or flowering tops extracted produced therefrom, fiber, oil, or cake, or the sterilized seed, or any component of the seed, of the plant that is incapable of germination. (b) The possession, use, purchase, sale, cultivation, processing, manufacture, packaging, labeling, transporting, storage, distribution, use and transfer of industrial hemp shall not be subject to the provisions of this division or of Division 10 (commencing with Section 26000) of the Business and Professions Code, but instead shall be regulated by the Department of Food and Agriculture in accordance with the provisions of Division 24 (commencing with Section 81000) of the Food and Agricultural Code, inclusive. SEC. 9.2. Section 81000 of the Food and Agricultural Code is amended to read: 81000. Definitions. For purposes of this division, the following terms have the following meanings: (a) “Board” means the Industrial Hemp Advisory Board. (b) “Commissioner” means the county agricultural commissioner. (c) “Established agricultural research institution” means a public or private institution or organization that maintains land for agricultural research, including colleges, universities, agricultural research centers, and conservation research centers. any institution that is either: (1) A public or private institution or organization that maintains land or facilities for agricultural research, including colleges, universities, agricultural research centers, and conservation research centers; or (2) An institution of higher education (as defined in Section 1001 of the Higher Education Act of 1965 (20 U.S.C. 1001)) that grows, cultivates or manufactures industrial hemp for purposes of research conducted under an agricultural pilot program or other agricultural or academic research. (d) “Industrial hemp” has the same meaning as that term is defined in Section 11018.5 of the Health and Safety Code. (e) “Secretary” means the Secretary of Food and Agriculture. (f) “Seed breeder” means an individual or public or private institution or organization that is registered with the commissioner to develop seed cultivars intended for sale or research. (g) “Seed cultivar” means a variety of industrial hemp. (h) “Seed development plan” means a strategy devised by a seed breeder, or applicant seed breeder, detailing his or her planned approach to growing and developing a new seed cultivar for industrial hemp. SEC. 9.3. Section 81006 of the Food and Agricultural Code is amended to read: 81006. Industrial Hemp Growth Limitations; Prohibitions; Imports; Laboratory Testing. (a) (1) Except when grown by an established agricultural research institution or a registered seed breeder, industrial hemp shall be grown only as a densely planted fiber or oilseed crop, or both, in acreages of not less than five acres one-tenth of an acre at the same time and no portion of an 11359, 11360, 11362.1, 11362.2, 11362.3, and 11362.4 as those sections have been amended or added by that act. (f) The court shall presume the petitioner satisfies the criteria in subdivision (e) unless the party opposing the application proves by clear and convincing evidence that the petitioner does not satisfy the criteria in subdivision (e). Once the applicant satisfies the criteria in subdivision (e), the court shall redesignate the conviction as a misdemeanor or infraction or dismiss and seal the conviction as legally invalid as now established under the Control, Regulate and Tax Adult Use of Marijuana Act. (g) Unless requested by the applicant, no hearing is necessary to grant or deny an application filed under subdivision (e). (h) Any felony conviction that is recalled and resentenced under subdivision (b) or designated as a misdemeanor or infraction under subdivision (f) shall be considered a misdemeanor or infraction for all purposes. Any misdemeanor conviction that is recalled and resentenced under subdivision (b) or designated as an infraction under subdivision (f) shall be considered an infraction for all purposes. (i) If the court that originally sentenced the petitioner is not available, the presiding judge shall designate another judge to rule on the petition or application. (j) Nothing in this section is intended to diminish or abrogate any rights or remedies otherwise available to the petitioner or applicant. (k) Nothing in this and related sections is intended to diminish or abrogate the finality of judgments in any case not falling within the purview of the Control, Regulate and Tax Adult Use of Marijuana Act. (l) A resentencing hearing ordered under the Control, Regulate and Tax Adult Use of Marijuana Act shall constitute a “post-conviction release proceeding” under paragraph (7) of subdivision (b) of Section 28 of Article I of the California Constitution (Marsy’s Law). (m) The provisions of this section shall apply equally to juvenile delinquency adjudications and dispositions under Section 602 of the Welfare and Institutions Code if the juvenile would not have been guilty of an offense or would have been guilty of a lesser offense under the Control, Regulate and Tax Adult Use of Marijuana Act. (n) The Judicial Council shall promulgate and make available all necessary forms to enable the filing of the petitions and applications provided in this section. SEC. 9. Industrial Hemp. SEC. 9.1. Section 11018.5 of the Health and Safety Code is amended to read: 11018.5. Industrial Hemp. (a) “Industrial hemp” means a fiber or oilseed crop, or both, that is limited to nonpsychoactive types of the plant Cannabis sativa L. and the seed produced therefrom, having no more than three-tenths of 1 percent tetrahydrocannabinol (THC) contained in the dried flowering tops, whether growing or not; and that is cultivated and processed exclusively for the purpose of producing the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant;, the resin extracted from any part of the plant; and or any other every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or mature 64 Text of Proposed Laws | 209 TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED shall indicate the date and location of samples taken, and shall state the Global Positioning System coordinates and total acreage of the crop. If the laboratory test report indicates a percentage content of THC that is equal to or less than three-tenths of 1 percent, the words “PASSED AS CALIFORNIA INDUSTRIAL HEMP” shall appear at or near the top of the laboratory test report. If the laboratory test report indicates a percentage content of THC that is greater than three-tenths of 1 percent, the words “FAILED AS CALIFORNIA INDUSTRIAL HEMP” shall appear at or near the top of the laboratory test report. (5) If the laboratory test report indicates a percentage content of THC that is equal to or less than three-tenths of 1 percent, the laboratory shall provide the person who requested the testing not less than 10 original copies signed by an employee authorized by the laboratory and shall retain one or more original copies of the laboratory test report for a minimum of two years from its date of sampling. (6) If the laboratory test report indicates a percentage content of THC that is greater than three-tenths of 1 percent and does not exceed 1 percent, the registrant that grows industrial hemp shall submit additional samples for testing of the industrial hemp grown. (7) A registrant that grows industrial hemp shall destroy the industrial hemp grown upon receipt of a first laboratory test report indicating a percentage content of THC that exceeds 1 percent or a second laboratory test report pursuant to paragraph (6) indicating a percentage content of THC that exceeds three-tenths of 1 percent but is less than 1 percent. If the percentage content of THC exceeds 1 percent, the destruction shall take place within 48 hours after receipt of the laboratory test report. If the percentage content of THC in the second laboratory test report exceeds three-tenths of 1 percent but is less than 1 percent, the destruction shall take place as soon as practicable, but no later than 45 days after receipt of the second test report. (8) A registrant that intends to grow industrial hemp and who complies with this section shall not be prosecuted for the cultivation or possession of marijuana as a result of a laboratory test report that indicates a percentage content of THC that is greater than three-tenths of 1 percent but does not exceed 1 percent. (9) Established agricultural research institutions shall be permitted to cultivate or possess industrial hemp with a laboratory test report that indicates a percentage content of THC that is greater than three-tenths of 1 percent if that cultivation or possession contributes to the development of types of industrial hemp that will comply with the three-tenths of 1 percent THC limit established in this division. (10) Except for an established agricultural research institution, a registrant that grows industrial hemp shall retain an original signed copy of the laboratory test report for two years from its date of sampling, make an original signed copy of the laboratory test report available to the department, the commissioner, or law enforcement officials or their designees upon request, and shall provide an original copy of the laboratory test report to each person purchasing, transporting, or otherwise obtaining from the registrant that grows industrial hemp the fiber, oil, cake, or seed, or any component of the seed, of the plant. (g) If, in the Attorney General’s opinion issued pursuant to Section 8 of the act that added this division, it is determined that the provisions of this section are not sufficient to comply with federal law, the department, in acreage of industrial hemp shall include plots of less than one contiguous acre. (2) Registered seed breeders, for purposes of seed production, shall only grow industrial hemp as a densely planted crop in acreages of not less than one-tenth of an two acres at the same time and no portion of the acreage of industrial hemp shall include plots of less than one contiguous acre. (3) Registered seed breeders, for purposes of developing a new California seed cultivar, shall grow industrial hemp as densely as possible in dedicated acreage of not less than one-tenth of an acre and in accordance with the seed development plan. The entire area of the dedicated acreage is not required to be used for the cultivation of the particular seed cultivar. (b) Ornamental and clandestine cultivation of industrial hemp is prohibited. All plots shall have adequate signage indicating they are industrial hemp. (c) Pruning and tending of individual industrial hemp plants is prohibited, except when grown by an established agricultural research institution or when the action is necessary to perform the tetrahydrocannabinol (THC) testing described in this section. (d) Culling of industrial hemp is prohibited, except when grown by an established agricultural research institution, when the action is necessary to perform the THC testing described in this section, or for purposes of seed production and development by a registered seed breeder. (e) Industrial hemp shall include products imported under the Harmonized Tariff Schedule of the United States (2013) of the United States International Trade Commission, including, but not limited to, hemp seed, per subheading 1207.99.03, hemp oil, per subheading 1515.90.80, oilcake, per subheading 2306.90.01, true hemp, per heading 5302, true hemp yarn, per subheading 5308.20.00, and woven fabrics of true hemp fibers, per subheading 5311.00.40. (f) Except when industrial hemp is grown by an established agricultural research institution, a registrant that grows industrial hemp under this section shall, before the harvest of each crop and as provided below, obtain a laboratory test report indicating the THC levels of a random sampling of the dried flowering tops of the industrial hemp grown. (1) Sampling shall occur as soon as practicable when the THC content of the leaves surrounding the seeds is at its peak and shall commence as the seeds begin to mature, when the first seeds of approximately 50 percent of the plants are resistant to compression. (2) The entire fruit-bearing part of the plant including the seeds shall be used as a sample. The sample cut shall be made directly underneath the inflorescence found in the top one-third of the plant. (3) The sample collected for THC testing shall be accompanied by the following documentation: (A) The registrant’s proof of registration. (B) Seed certification documentation for the seed cultivar used. (C) The THC testing report for each certified seed cultivar used. (4) The laboratory test report shall be issued by a laboratory registered with the federal Drug Enforcement Administration, shall state the percentage content of THC, 64 210 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 64 CONTINuED that are in addition to the protections provided for in this act or that otherwise expand the legal rights of such employees or workers of licensees under Sections 6 to 6.3, inclusive, of this act shall be deemed to be consistent with and further the purposes and intent of this act. The Legislature may by majority vote amend, add, or repeal any provisions to further reduce the penalties for any of the offenses addressed by this act. Except as otherwise provided, the provisions of the act may be amended by a two-thirds vote of the Legislature to further the purposes and intent of the act. SEC. 11. Construction and Intepretation. The provisions of this act shall be liberally construed to effectuate the purposes and intent of the Control, Regulate and Tax the Adult Use of Marijuana Act; provided, however, no provision or provisions of this act shall be interpreted or construed in a manner to create a positive conflict with federal law, including the federal Controlled Substances Act, such that the provision or provisions of this act and federal law cannot consistently stand together. SEC. 12. Severability. If any provision in this act, or part thereof, or the application of any provision or part to any person or circumstance is held for any reason to be invalid or unconstitutional, the remaining provisions and parts shall not be affected, but shall remain in full force and effect, and to this end the provisions of this act are severable. SEC. 13. Conflicting Initiatives. In the event that this measure and another measure or measures concerning the control, regulation, and taxation of marijuana, medical marijuana, or industrial hemp appear on the same statewide election ballot, the provisions of the other measure or measures shall be deemed to be in conflict with this measure. In the event that this measure receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions of the other measure shall be null and void. PROPOSITION 65 This initiative measure is submitted to the people in accordance with the provisions of Section 8 of Article II of the California Constitution. This initiative measure adds sections to the Public Resources Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SECTION 1. Title. This act shall be known and may be cited as the Environmental Fee Protection Act. SEC. 2. Findings and Declarations. The people of the State of California find and declare as follows: (a) In 2014, the California State Legislature enacted a ban on plastic carryout bags after lobbying by special interests including the California Grocers Association. (b) The law further mandated that stores sell every paper or reusable carryout bag they provide to consumers for a minimum of 10 cents. Stores can charge even more if they so choose, and the grocers and retailers are specifically consultation with the board, shall establish procedures for this section that meet the requirements of federal law. SEC. 9.4. Section 81007 of the Food and Agricultural Code is repealed. 81007. (a) Except as provided in subdivision (b) or as necessary to perform testing pursuant to subdivision (f) of Section 81006, the possession, outside of a field of lawful cultivation, of resin, flowering tops, or leaves that have been removed from the hemp plant is prohibited. (b) The presence of a de minimis amount, or insignificant number, of hemp leaves or flowering tops in hemp bales that result from the normal and appropriate processing of industrial hemp shall not constitute possession of marijuana. SEC. 9.5. Section 81008 of the Food and Agricultural Code is amended to read: 81008. Attorney General Reports; Requirements. (a) Not later than January 1, 2019, or five years after the provisions of this division are authorized under federal law, whichever is later, the Attorney General shall report to the Assembly and Senate Committees on Agriculture and the Assembly and Senate Committees on Public Safety the reported incidents, if any, of the following: (1) A field of industrial hemp being used to disguise marijuana cultivation. (2) Claims in a court hearing by persons other than those exempted in subdivision (f) of Section 81006 that marijuana is industrial hemp. (b) A report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code. (c) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2023, or four years after the date that the report is due, whichever is later. SEC. 9.6. Section 81010 of the Food and Agricultural Code is amended to read: 81010. Operation of Division. (a) This division, and Section 221 shall not become operative unless authorized under federal law on January 1, 2017. (b) The possession, use, purchase, sale, production, manufacture, packaging, labeling, transporting, storage, distribution, use, and transfer of industrial hemp shall be regulated in accordance with this division. The Bureau of Marijuana Control has authority to regulate and control plants and products that fit within the definition of industrial hemp but that are produced, processed, manufactured, tested, delivered, or otherwise handled pursuant to a license issued under Division 10 (commencing with Section 26000) of the Business and Professions Code. SEC. 10. Amendment. This act shall be broadly construed to accomplish its purposes and intent as stated in Section 3. The Legislature may by majority vote amend the provisions of this act contained in Sections 5 to 5.5, inclusive, and Sections 6 to 6.3, inclusive, to implement the substantive provisions of those sections, provided that such amendments are consistent with and further the purposes and intent of this act as stated in Section 3. Amendments to this act that enact protections for employees and other workers of licensees under Sections 6 to 6.3, inclusive, of this act 64 65 1 MEMORANDUM1 To: League of California Cities’ City Managers Department League of California Cities’ City Attorneys Department From: League Staff Date: September 26, 2016 Re: The Control, Regulate and Tax Adult Use of Marijuana Act On November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA” or “Act”) will come before California voters as Proposition 64. If passed, the AUMA will legalize the nonmedical use of marijuana by persons 21 years of age and over, and the personal cultivation of up to six marijuana plants. In addition, the AUMA will create a state regulatory and licensing system governing the commercial cultivation, testing, and distribution of nonmedical marijuana, and the manufacturing of nonmedical marijuana products. The regulatory system governing these commercial marijuana activities largely mirrors the Medical Marijuana Regulation and Safety Act (“MMRSA”), but there are key differences. This memorandum will provide an overview of the AUMA, highlight the ways in which the AUMA differs from the MMRSA, and identify the issues that cities will need to take action on if the AUMA passes. I. Overview of the AUMA A. Personal Nonmedical Marijuana Use The AUMA makes it legal for persons 21 years of age or older to: (1) smoke or ingest marijuana or marijuana products; (2) possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older, without any compensation, 28.5 grams of marijuana, or 8 grams of concentrated marijuana, including as contained in marijuana products; and (3) possess, plant, cultivate, harvest, dry or process up to six living marijuana plants for personal use.2 The AUMA requires that marijuana in excess of 28.5 grams that is produced by plants kept pursuant to the personal cultivation provision of the Act be kept in a locked space on the grounds of a private residence that is not visible from a public place.3 Although persons 21 years of age or older may use and possess nonmedical marijuana under the Act, their ability to engage in these activities is not unfettered. The AUMA prohibits the smoking 1 DISCLAIMER: These materials are not offered as or intended to be legal advice. Readers should seek the advice of an attorney when confronted with legal issues. Attorneys should perform an independent evaluation of the issues raised in these materials. 2 Health & Saf. Code § 11362.2(a). 3 Health & Saf. Code § 11362.2(a)(2). 1400 K Street, Suite 400 Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org 2 of marijuana: (1) in any public place, except where a local jurisdiction has authorized use on the premises of a retailer or microbusiness in accordance with Business and Professions Code section 26200; (2) where smoking tobacco is prohibited; (3) within 1,000 feet of a school, day care center, or youth center while children are present; and (3) while driving, or riding in the passenger seat of, any vehicle used for transportation.4 Moreover, individuals cannot possess marijuana on school grounds, in day care centers, or in youth centers while children are present, or possess an open container of marijuana or marijuana products while driving, operating, or riding in any vehicle used for transportation.5 The AUMA further provides that cities may prohibit possession and smoking in buildings owned, leased, or occupied by the city, and that employers, including cities, may maintain a drug and alcohol free workplace by prohibiting the use, consumption, possession, transfer, transportation, sale, display or growth of marijuana in the workplace.6 1. Personal Cultivation The AUMA provides that local governments can reasonably regulate, but cannot ban, personal indoor cultivation of up to six living marijuana plants within the person’s private residence.7 The Act defines private residence as “a house, an apartment unit, a mobile home, or other similar dwelling unit.”8 This includes cultivation in a greenhouse on the same property as the residence that is not physically part of the home, as long as it is fully enclosed, secure, and not visible from a public space.9 The AUMA completely protects the ability of local governments to regulate, and to ban, personal outdoor cultivation operations.10 However, it purports to repeal any ordinance that bans outdoor cultivation upon the California Attorney General’s determination that nonmedical use of marijuana is lawful under federal law.11 B. Commercial Nonmedical Marijuana Activity Under the AUMA, California will have a comprehensive state regulatory system for nonmedical marijuana that governs the industry from “seed to sale.” The Bureau of Marijuana Control, currently the Bureau of Medical Cannabis Regulation, which is within the Department of Consumer Affairs, will have primary responsibility for administering and enforcing the AUMA.12 The AUMA divides state licensing and enforcement responsibilities among three agencies: (1) the Department of Consumer Affairs, which will issue licenses for marijuana the transportation, 4 Health & Saf. Code § 11362.3(7)-(8). 5 Health & Saf. Code §§ 11362.3(3), 11362.3(4). 6 Health & Saf. Code § 11362.45 (f)-(g). 7 Health & Saf. Code §§ 11362.1(a)(3), 11362.2. 8 Health & Saf. Code § 11362.2(5). 9 Health & Saf. Code § 11362.2(a)(2). 10 Health & Saf. Code § 11362.2(b)(3). 11 Health & Saf. Code § 11362.2(b)(4). 12 Bus. & Prof. Code § 26010. 3 storage, distribution, and sale of marijuana;13 (2) the Department of Food and Agriculture will issue marijuana cultivation licenses, which will administer the provisions of the AUMA related to the cultivation of marijuana;14 and (3) the Department of Public Health, which will issue licenses for marijuana manufacturers and testing laboratories.15 Each of these state licensing authorities is responsible for creating regulations governing their respective areas of responsibility, and must begin issuing licenses by January 1, 2018.16 A state marijuana license will be valid for one year.17 A separate state license is required for each commercial marijuana business location.18 With the exception of testing facilities, any person or entity licensed under the AUMA may apply for and be issued more than one type of state license.19 1. Local Control All nonmedical marijuana businesses must have a state license.20 A state license cannot issue to an applicant whose operations would violate the provisions of any local ordinance or regulation.21 However a state applicant need not provide documentation that the applicant has a local license or permit. The AUMA does not limit the authority of a local jurisdiction to adopt and enforce local ordinances regulating or completely prohibiting state-licensed marijuana businesses.22 Local jurisdictions may establish “standards, requirements, and regulations regarding health and safety, environmental protection, testing, security, food safety, and worker protections that exceed state standards.”23 2. Local Enforcement Like the MMRSA, the AUMA establishes a dual enforcement scheme for commercial marijuana activities that violate either state or local laws. The state licensing authorities will enforce state statutes and regulations. State authorities can suspend or revoke state licenses,24 pursue civil penalties against violating businesses in an amount equal to three times the applicable licensing fee per violation,25 or may prosecute violators criminally.26 Local authorities will be responsible 13 Bus. & Prof. Code § 26012(a)(1). 14 Bus. & Prof. Code § 26012(a)(2). 15 Bus. & Prof. Code § 26012(3). 16 Bus. & Prof. Code §§ 26012(c), 26013 (a). 17 Bus. & Prof. Code § 26050(c). 18 Bus. & Prof. Code § 26055(c). 19 Bus. & Prof. Code § 26053. 20 Bus. & Prof. Code § 26038.) 21 Bus. & Prof. Code § 26055(e). 22 Bus. & Prof. Code § 26200(a). But see, Bus. & Prof. Code §§ 19340(f), 26080(b), 26090(c) [prohibiting cities from preventing the use of public roads to lawfully transport or deliver nonmedical marijuana]. 23 Bus. & Prof. Code § 26201. 24 Bus. & Prof. Code § 2603. 25 Bus. & Prof. Code § 26038(a) 26 Bus. & Prof. Code § 26038(c). 4 for enforcing local ordinances and regulations.27 For state-licensed facilities operating within a city, a city may have authority to enforce state law and regulations “if delegated the power to do so by the [B]ureau [of Marijuana Control] or a licensing authority.”28 II. Key Differences Between the AUMA and MMRSA A. Licensing The MMRSA established dual licensing of medical marijuana businesses, requiring both local approval and a state license in order for a business to operate legally.29 Specifically, the MMRSA requires applicants to provide the relevant state licensing entity with documentation proving their compliance with local ordinances and regulations.30 The AUMA does not require an applicant to provide evidence of local permission prior to being issued a state license.31 Instead, the AUMA prohibits state licensing entities from approving licenses for activities that would violate local ordinances.32 Thus, state licensing officials bear the onus of evaluating local regulatory compliance. Under this system, the AUMA allows a nonmedical marijuana business licensed by the state to operate within city limits unless the city’s municipal code prohibits the use. Cities that wish to regulate or prohibit nonmedical marijuana businesses will need to do so before the State begins issuing licenses, either by enacting a nonmedical marijuana ordinance/regulation or by amending an existing medical marijuana ordinance/regulation to include nonmedical marijuana within its scope. B. License Revocation Under the MMRSA, revocation of a local license or permit unilaterally terminates the ability of the medical marijuana business to operate in the jurisdiction issuing the permit, until such time as the local permitting entity reinstates it.33 Under the AUMA, if a local jurisdiction revokes a local license, permit, or authorization for a licensee to engage in commercial marijuana activity within the local jurisdiction, the Bureau of Marijuana Control must initiate proceedings to determine whether the state license issued should be suspended or revoked within ten days of being notified by the local jurisdiction of the local revocation.34 Note, however, that, even if the state license is not suspended or revoked immediately, the business cannot operate within the local jurisdiction once local revocation occurs. 27 Bus. & Prof. Code § 26200 (b). 28 Bus. & Prof. Code § 23202(a). 29 Bus. & Prof. Code § 19320(b). 30 Bus. & Prof. Code § 19322(a). 31 Bus. & Prof. Code § 26056. 32 Bus. & Prof. Code § 26055(e). 33 Bus. & Prof. Code § 19320(d). 34 Bus. & Prof. Code § 26200(c). 5 C. Personal, Indoor Cultivation Under the MMRSA, local governments possess the power to regulate and completely ban personal, indoor cultivation.35 Under the AUMA local governments can “reasonably regulate” indoor cultivation of up to six marijuana plants for personal use, but cannot ban it.36 D. Personal Outdoor Cultivation Under the MMRSA local governments can prohibit all outdoor cultivation. Under the AUMA local governments can prohibit all outdoor cultivation, until such time as the Attorney General determines that the use of nonmedical marijuana is lawful in the State of California under federal law.37 Upon such determination, the AUMA purports to repeal all local bans on outdoor cultivation.38 E. Amendment Any portion of the MMRSA can be amended at any time, if there is sufficient political support within the Legislature for making substantive changes to the regulatory structure. Under some circumstances, an amendment to the MMRSA by the Legislature might arguably violate The Compassionate Use Act of 1996 (adopted by the voters as Proposition 215), which decriminalized the personal use of medical marijuana.39 Under the AUMA, the Legislature may amend Sections 5 (relating to the use of medical marijuana for medical purposes) and 6 (relating to state licensing) and the provisions relating to penalties by majority vote. The Legislature may amend any other provision of the Act by a 2/3 vote. Any amendment must further the purposes and intent of the AUMA. The purpose and intent of the Act include allowing local governments to ban nonmedical marijuana businesses. F. Taxation The AUMA imposes new state taxes on medical and nonmedical marijuana in the following manner: Effective January 1, 2018, the AUMA imposes an excise tax at the rate of 15% of gross retail sales receipts.40 o This tax will be in addition to existing state and local sales tax.41 Given that state and local sales taxes can range from 7-10%, the combined excise tax + sales tax at the retail level could approach 25%; 35 Health & Saf. Code § 11362.777(g); Maral v. City of Live Oak (2013) 221 Cal.App.4th 975, 984; Kirby v. County of Fresno (2015) 242 Cal.App.4th 940, 969-970. 36 Bus. & Prof. Code § 11362.2(b)(1). 37 Bus. & Prof. Code § 11362.2(b)(4). 38 Bus. & Prof. Code § 11362.2(b)(4). 39 Health & Saf. Code § 11362.5. 40 Rev. & Tax Code § 34011(a). 6 Effective January 1, 2018, the AUMA imposes a separate cultivation tax on all harvested marijuana as follows:42 o $9.25 per dry-weight ounce on all marijuana flowers; o $2.75 per dry-weight ounce on all marijuana leaves; The AUMA prohibits imposition of state and local sales taxes on medical marijuana.43 The AUMA exempts marijuana cultivated for personal use from taxation.44 The AUMA does not pre-empt local taxation.45 However, the AUMA’s estimated cumulative tax rate of nearly 35% on the purchase of nonmedical marijuana has potentially troubling implications for local governments. A high state tax rate by itself may depress sales and stimulate the black market. Any local taxation of marijuana should be governed by an awareness that a high retail sales tax rate, imposed on an industry that, until recently, has not been regulated at all, might stimulate black market activity and compromise the anticipated yield of revenue. In order to avoid such a result, cities might consider imposing an excise tax on discrete commercial nonmedical marijuana activities rather than on retail sales. New taxes on marijuana require compliance with Proposition 218. 1. Allocation of State Tax Revenues After repaying certain state agencies for marijuana regulatory costs not covered by license fees, and making certain grants to universities for research and development and the Governor’s Office of Business and Economic Development, the AUMA distributes the remaining tax revenue as follows: 60% for youth programs, substance abuse education, prevention and treatment; 20% for environmental cleanup and remediation; and 20% for state and local programs that reduce DUI and grant programs designed to reduce negative health impacts resulting from marijuana legalization G. Deliveries Under the MMRSA, medical marijuana deliveries can only be made from a state-licensed dispensary in a city, county, or city and county that does not explicitly prohibit it by local ordinance.46 A delivery person must carry a copy of the dispensary’s state-issued license, a government ID, and a copy of the delivery request.47 The patient or caregiver requesting the delivery must also maintain a copy of the delivery request.48 Dispensaries and delivery people who comply with MMRSA are immune from prosecution for marijuana transportation.49 41 Rev. & Tax Code § 34011(d). 42 Rev. & Tax Code § 34012. 43 Rev. & Tax Code § 34011(g). 44 Rev. & Tax Code § 34012(j). 45 Rev. & Tax Code § 34021. 46 Bus. & Prof. Code § 19340(a). 47 Bus. & Prof. Code §§ 19340(b)(2), 19340(d). 48 Bus. & Prof. Code § 19340(e). 49 Bus. & Prof. Code § 19317(f). 7 Under the AUMA, deliveries can be made by a state-licensed retailer, microbusiness, or nonprofit unless they are prohibited by local ordinance.50 Although the AUMA does require a customer requesting delivery to maintain a copy of the delivery request, there is no express requirement that delivery people carry or maintain any records.51 Moreover, unlike the MMRSA, the AUMA does not require that deliveries come from a dispensary. Instead, it states that “Deliveries, as defined in this division, may only be made by a licensed retailer or microbusiness, or a licensed nonprofit under Section 26070.5.”52 Thus, there is at least some question regarding whether deliveries may be made from non-retail locations by retail employees. Under both the MMRSA and the AUMA, local jurisdictions can ban or regulate deliveries within their borders.53 However, local jurisdictions cannot prevent a delivery service from using public roads to simply pass through its jurisdiction from a licensed dispensary to a delivery location outside of its boundaries.54 III. Local Regulatory Options55 The AUMA preserves the authority of a city to adopt business regulations and land use regulations for nonmedical marijuana activities.56 A. Personal Marijuana Cultivation Under the AUMA local governments can regulate or ban all personal, outdoor cultivation, until such time as the Attorney General determines that the use of nonmedical marijuana is lawful in the State of California under federal law. In addition, local governments can “reasonably regulate,” but cannot ban, personal, indoor cultivation. Nothing in the AUMA requires a city to enact an ordinance or regulation by a certain date. However, assuming that the AUMA passes, if a city does not have a ban or regulatory scheme governing personal, outdoor cultivation or a regulatory scheme governing personal, indoor cultivation in place before November 9, 2016, a person may legally engage in personal cultivation of up to six marijuana plants at his or her private residence. 50 Bus. & Prof. Code §26090(a). 51 Bus. & Prof. Code §26090(b). 52 Bus. & Prof. Code § 26090(a). 53 Bus. & Prof. Code §§ 19340(a), 19316(a), 26200. 54 Bus. & Prof. Code §§ 19340(f), 26080(b), 26090(c). 55 For a thorough discussion of the various marijuana regulatory options that a city may consider, see McEwen, Medical Marijuana-Revisited After New State Laws (Spring 2016) <http://www.cacities.org/Resources- Documents/Member-Engagement/Professional-Departments/City-Attorneys/Library/2016/Spring-2016/5-2016- Spring-Medical-Marijuana-%E2%80%93-Revisited-After>. In addition, sample ordinances may be found on the League’s website, at: http://www.cacities.org/Policy-Advocacy/Hot-Issues/Medical-Marijuana. But note: the regulatory schemes discussed in the McEwen paper and posted on the League’s website pertain to medical marijuana businesses under the MMRSA and may need to be modified to comply with the requirements of the AUMA. 56 Health & Saf. Code § 11362.2; Bus. & Prof. Code §§ 26201, 26200(a). 8 B. Nonmedical Marijuana Businesses The AUMA recognizes a range of businesses, including dispensaries, cultivators, manufacturers, distributors, transporters, and testing laboratories. Cities may expressly ban, adopt business regulations, or adopt land use regulations pertaining to any or all of these businesses. Again, the AUMA does not require a city to enact a regulatory scheme or ban by a certain date. However, assuming that the AUMA passes in November, if a city wishes to regulate or ban marijuana businesses before marijuana businesses may legally operate within the city, the regulations or ban will need to take effect before the state begins issuing nonmedical marijuana business licenses. The League anticipates that cities have until January 1, 2018 to enact bans or regulations relating to nonmedical marijuana businesses, because: (1) nonmedical marijuana businesses cannot operate in any city without a state license;57 (2) the state licensing agencies in charge of implementing the AUMA have stated that they anticipate that they will not begin issuing licenses under the MMRSA until January 2018, and it is unlikely that said agencies will be able to begin issuing licenses under the AUMA before they begin issuing licenses under the MMRSA; and (3) the AUMA does not require state agencies to issue licenses until January 1, 2018.58 It is not the League’s position that state licensing agencies cannot issue licenses before January 1, 2018, just that it is unlikely that they will do so. C. Caution Against Use of Permissive Zoning Under a permissive zoning code, any use not enumerated in the code is presumptively prohibited, unless an authorized city official finds that the proposed use is substantially the same in character and intensity as those land uses listed in the code.59 Although the MMRSA upheld a city’s authority to rely on permissive zoning to prohibit medical marijuana land uses, it is unlikely that cities will succeed in arguing that nonmedical marijuana land uses are prohibited by permissive zoning under the AUMA. This is so because: (1) the statutory language in the AUMA regarding local control seems to anticipate that a city will adopt an ordinance explicitly prohibiting and/or regulating nonmedical marijuana businesses (rather than relying on the silence of its Code to argue for a prohibited use);60 (2) the AUMA does not contain the same protective language as the 57 Bus. & Prof. Code § 26038. 58 Bus. & Prof. Code § 26012 (c). 59 See City of Corona v. Naulls (2008) 166 Cal.App.4th 418, 433-436. See also County of Los Angeles v. Hill (2011) 192 Cal.App.4th 861, 871 [holding that “medical marijuana dispensaries and pharmacies are not ‘similarly situated’ for public health and safety purposes”]; City of Monterey v. Carrnshimba (2013) 215 Cal.App.4th 1068, 1091 [holding that a medical marijuana dispensary was not substantially similar to the listed commercial use classifications for personal services, retail sales, pharmacies and medical supplies]; County of Tulare v. Nunes (2013) 215 Cal.App.4th 1188, 1205 [holding that a medical marijuana collective did not qualify as an “agricultural” land use because “marijuana is a controlled substance and is not treated as a mere crop or horticultural product under the law”]. 60 Bus. & Prof Code § 26200 [“Nothing in this division shall be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate businesses licensed under this division, including, but not limited to, local zoning and land use requirements, business license requirements, and requirements related 9 MMRSA with respect to permissive zoning;61 and (3) the AUMA explicitly designates nonmedical marijuana as an agricultural product—thus if a city’s permissive zoning code authorizes agricultural uses, the city may be precluded from arguing that marijuana is prohibited.62 Therefore, cities that wish to ban all or some nonmedical marijuana activities should adopt express prohibitions, even if they operate under a permissive zoning code. IV. What actions need to be taken? At this time city officials should: (1) review the city’s municipal code; (2) consider whether they wish to regulate the personal cultivation of nonmedical marijuana indoors; (3) consider whether they wish to regulate or ban the personal cultivation of nonmedical marijuana outdoors; (4) consider whether they wish to enact business regulations of nonmedical marijuana businesses; (5) consider whether they wish to enact land use regulations of nonmedical marijuana businesses; (6) consider whether they wish to enact local taxes on marijuana; and (7) comply with Proposition 218 if they decide to enact local taxes on marijuana. Cities should prioritize considering or enacting ordinances regulating personal nonmedical marijuana cultivation, because it will be legal under state law on November 9, 2016 if the AUMA passes, whereas nonmedical marijuana businesses will not be able to operate lawfully until the state licensing system becomes operational (likely in late 2017). Although cultivation for personal use will be legal as of November 9, 2016 if the AUMA is approved by voters, local governments will not lose any regulatory authority if they do not have an ordinance in place addressing personal cultivation before the election. Locals will retain the ability to regulate personal cultivation and to enact related ordinances at any time after the election. The only change the AUMA will make in this area is to prohibit local bans of indoor cultivation for personal use. No ordinance enacted prior to the election can prevent this change in the law. to reducing exposure to second hand smoke, or to completely prohibit the establishment or operation of one or more types of businesses licensed under this division within the local jurisdiction.”] (emphasis added). 61 Compare Health & Saf. Code § 11362.777(b)(3) [a “person or entity shall not submit an application for a state license . . . if the proposed cultivation of marijuana will violate the provisions of any local ordinance or regulation, or if medical marijuana is prohibited by the city, county, or city and county in which the cultivation is proposed to occur, either expressly or otherwise under principles of permissive zoning”] with Bus. & Prof Code § 26205(e) [“Licensing authorities shall not approve an application for a state license under this division if approval of the state license will violate the provisions of any local ordinance or regulation adopted in accordance with Section 26200.”]. 62 Bus. & Prof. Code § 26067(a). City of Palo Alto (ID # 7421) City Council Staff Report Report Type: Action Items Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Personal Cultivation of Marijuana Title: Adoption of an Ordinance of the Council of the City of Palo Alto Adding Chapter 9.17 (Personal Cultivation of Marijuana) to Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal Code to Prohibit Outdoor Cultivation of Marijuana and Informational Update on Proposition 64 and Finding the Amendment Exempt from Review Under the California Environmental Quality Act (CEQA) Pursuant to State CEQA Guidelines Section 15061(b)(3) From: City Manager Lead Department: City Attorney Recommendation Staff recommends the Council consider whether to adopt the attached ordinance (Attachment A) adding Chapter 9.17 (Personal Cultivation of Marijuana) to Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal Code to prohibit outdoor marijuana cultivation in Palo Alto, and finding the amendment exempt from review under the California Environmental Quality Act. This action is consistent with prior Council policy. Executive Summary The proposed ordinance is consistent with the City’s existing land use policy adopted on June 9, 1997, as an uncodified urgency Ordinance No. 4422, prohibiting the establishment and operation of medical marijuana dispensaries under the City’s zoning ordinance (See Attachment B to Agenda Item 11). The proposed ordinance would expressly prohibit outdoor marijuana cultivation in Palo Alto effective December 8, 2016. The proposed ordinance is offered as an alternative to the proposed emergency ordinance that is also on the Council’s agenda as Item 11, and is substantively identical to it. In contrast to the proposed emergency ordinance (which requires a supermajority of 8 Council votes to pass and would be effective immediately), the regular ordinance attached hereto requires a simple majority to pass and becomes effective 30 days after a second reading. Except for the procedural differences between an emergency and traditional ordinance, the balance of this staff report is identical to the staff report for Agenda Item 11. 12 City of Palo Alto Page 2 Proposition 64 (See Attachment C to Agenda Item 11), titled the Control, Regulate, and Tax Adult Use of Marijuana (“AUMA”), is before California voters for approval on November 8, 2016. If approved, the AUMA will authorize nonmedical use of marijuana by individuals age 21 and older, and create a state licensing and regulatory system for commercial cultivation, testing, manufacture and distribution of nonmedical marijuana and marijuana products. Under the AUMA, cities will retain the ability to regulate, and in most cases ban, activities legalized by the AUMA. Commercial activities will not be authorized until state licenses are issued. State licenses will likely not be issued until January 2018, giving cities ample time to study potential effects and enact any appropriate local regulations. Personal cultivation of marijuana, however, would become immediately lawful upon passage of the AUMA. While cities will retain the ability to regulate cultivation any time after adoption of the AUMA, cities that are concerned about the potential effects of personal cultivation may wish to ban certain activities, particularly outdoor cultivation, as soon as possible if the AUMA is approved by voters, pending further study and potential amendment of regulations at a later date. Background On November 8, 2016 the AUMA will come before voters, and, if passed, will legalize the use, sale, and consumption of nonmedical marijuana by persons 21 years of age and older. Upon its passage, the AUMA will make it legal for adults to: (1) smoke or ingest marijuana or marijuana products; (2) possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older, without any compensation, 28.5 grams of marijuana, or 8 grams of concentrated marijuana, including as contained in marijuana products; and (3) possess, plant, cultivate, harvest, dry or process up to six living marijuana plants for personal use. Where previous legislation related to medical marijuana created a dual state and local licensing scheme, the AUMA gives the state sole responsibility for regulating nonmedical marijuana businesses. The state will have until January 1, 2018 to begin issuing licenses and permits to those businesses recognized by the AUMA. Even so, a state license cannot be issued to an applicant whose operations would violate the provisions of any local ordinance or regulation. It will be the state’s onus to ensure an applicant is compliant with local law. Local governments retain the authority regulate personal cultivation of nonmedical marijuana. The AUMA provides that local governments can reasonably regulate, but cannot ban personal indoor cultivation of up to six living marijuana plants within the person’s private residence. In contrast, local governments are allowed to regulate or ban personal outdoor cultivation operations. Such a ban cannot inhibit residents from growing the maximum number of plants in a locked and enclosed greenhouse, however. In the absence of a local regulation or ban, the AUMA does not limit the number of plants that may be grown outside. City of Palo Alto Page 3 While the AUMA does not require cities to enact a regulatory scheme or ban by a certain date, it is assumed that should the legislation pass and a city does not have a ban or regulatory scheme governing personal cultivation by November 9, 2016, a person will be able to cultivate marijuana for personal use without limitation, except those listed in the AUMA. A detailed explanation of the AUMA and local regulatory authority has been prepared by the California League of Cities, and is attached to this staff report. (See Attachment D to Agenda Item 11) Discussion On June 9, 1997, the Council adopted uncodified urgency Ordinance No. 4422, prohibiting the establishment and operation of medical marijuana dispensaries under the City’s zoning ordinance (Attachment B to Item 11). This urgency ordinance was drafted to address medical marijuana dispensaries, and does not include an express prohibition against marijuana cultivation or nonmedical marijuana activities, generally. While under principles of permissive zoning marijuana cultivation is presumptively prohibited in Palo Alto because it is not listed as a permitted activity in the City’s zoning code, the AUMA does not contain the same protective language as prior medical marijuana legislation with respect to permissive zoning. Moreover, the statute’s language seems to anticipate that cities will adopt ordinances prohibiting the activities they wish to keep out. To avoid confusion and preserve local control, staff recommends adding an express prohibition of all outdoor marijuana cultivation. Timeline Personal Outdoor Cultivation If passed by voters, the AUMA will allow personal cultivation of marijuana as early as November 9, 2016. If the Council desires to limit the outdoor cultivation of marijuana, it has the opportunity to consider whether to adopt the emergency ordinance, which would take effect immediately or whether to limit cultivation through the traditional legislative process. Should the Council adopt this proposed ordinance prohibiting personal outdoor cultivation through the traditional legislative process, the following timeline would apply: October 24, 2016 – first reading November 7, 2016 – second reading December 8, 2016 – ordinance takes effect Commercial Marijuana Businesses Further, under the AUMA, commercial marijuana businesses can only commence operations after receiving a state license that confirms the proposed business is in compliance with the City of Palo Alto Page 4 relevant local laws. It is likely that the State will not begin issuing marijuana commercial business licenses until January 1, 2018. Accordingly, staff recommends that any zoning code amendments or regulatory laws related to commercial marijuana businesses be developed and adopted at a later date, but prior to January 1, 2018. Resource Impact The staff does not anticipate a resource impact associated with this Ordinance. Any future efforts to develop an alternate approach to regulating commercial marijuana businesses or personal cultivation would require staff time and could result in zoning or licensing provisions requiring additional staff resources. Environmental Review This proposed ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this proposed ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment in that this proposed ordinance simply codifies an existing prohibition. Attachments: Attachment A: Ordinance Adding Chapter 9.17 Personal Cultivation (DOCX) NOT YET APPROVED 1 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Adding Chapter 9.17 (Personal Cultivation of Marijuana) to Title 9 of the Palo Alto Municipal Code (Public Peace, Morals and Safety) to Prohibit Outdoor Cultivation of Marijuana The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Recitals. The Council of the City of Palo Alto finds and declares as follows: A. Following passage of Proposition 215, entitled the “Compassionate Use Act of 1996,” California courts have held that there is a limited exception from criminal liability for seriously ill persons who are in need of medical marijuana for specified medical purposes and who obtain and use medical marijuana under limited, specified circumstances. B. On June 9, 1997, the Palo Alto City Council adopted uncodified urgency Ordinance No. 4422 declaring the establishment and operation of medical marijuana dispensaries to be prohibited use under the City’s zoning ordinance. C. On November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) will come before California voters as Proposition 64. If passed, the AUMA will legalize the use, sale, and consumption of nonmedical marijuana by persons 21 years of age and older. D. In addition, the AUMA will create a state regulatory and licensing system governing commercialization of nonmedical marijuana, but will preserve local governments’ authority to regulate personal cultivation. Specifically, local governments may prohibit personal outdoor cultivation and reasonably regulate personal indoor cultivation of nonmedical marijuana. E. Neither medical nor nonmedical marijuana cultivation are listed in the City’s zoning code as permitted or conditionally-permitted land uses and are, therefore, prohibited under the principles of permissive zoning provisions. (City of Corona v. Naulls (2008) 166 Cal.App.4th 418, 431-433). Nevertheless, the AUMA does not expressly recognize the application of permissive zoning principles like previous medical marijuana legislation. F. In order to protect the public health, safety, and welfare, the City Council desires to add Palo Alto Municipal Code Chapter 9.17 to prohibit, in express terms, all outdoor cultivation of medical and nonmedical marijuana. G. This Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment in that this Ordinance simply clarified existing local regulations. SECTION 2. Chapter 9.17 is hereby added to Title 9 of the Palo Alto Municipal Code to read as follows: NOT YET APPROVED 2 9.17.010 Definitions. (1) “Marijuana” means all parts of the plant Cannabis sativa L., Cannabis indica, or Cannabis ruderalis whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. (2) “Marijuana cultivation” shall have the same meaning as “cultivation” set forth in California Business and Professions Code Section 19300.5(k) as that section may be amended from time to time. 9.17.020 Prohibition. Outdoor marijuana cultivation is prohibited in the City of Palo Alto. 9.17.030 Enforcement. The City may enforce this section in any manner permitted by law. The violation of this Chapter shall be and is hereby declared to be a public nuisance and shall, at the discretion of the City, create a cause of action for injunctive relief. SECTION 3. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this ordinance are hereby declared to be severable. SECTION 4. CEQA The City Council finds and determines that this Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment in that this Ordinance simply clarifies existing local regulations. SECTION 5. Effective Date. This ordinance shall be effective upon the thirty-first day after its passage and adoption. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ______________________________ ____________________________ City Clerk Mayor NOT YET APPROVED 3 APPROVED AS TO FORM: ____________________________ City Manager ______________________________ Principal City Attorney City of Palo Alto (ID # 7343) City Council Staff Report Report Type: Action Items Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Stakeholder Formation Process Title: Review and Direction on Formation of a Stakeholder Committee to Advise the Council Regarding a Potential Local Tax to Raise Funds for Transportation Programs and Projects From: City Manager Lead Department: City Manager Recommendation: Staff recommends that the City Council review and provide direction regarding the structure, process and potential membership of a stakeholder advisory committee to advise the Council regarding a potential future ballot measure seeking voter approval of a general tax on businesses that would raise funds that the City could use to fund transportation programs and projects. Once appointed, the stakeholder advisory committee would explore transportation needs, identify funding requirements and assist staff with development of a timeline for a potential future ballot measure. Executive Summary: Last spring, the City Council considered the options and timelines of placing a potential local business tax measure on the ballot to raise funds that the City could use to fund needed transportation projects with a special emphasis on TDM measures (Transportation Demand Management). At their last meeting before the summer break on June 27, 2016 Council voted to direct staff to bring back at a future meeting a timeline with activities to plan for a potential ballot measure in either 2017 or 2018. This also included options to structure a stakeholder committee to explore priority transportation needs, identify funding, requirements and develop a funding plan. The formation of the Infrastructure Blue Ribbon Commission followed a similar charter, and the Council identified the IBRC as a potential model to follow for a future transportation tax stakeholder committee. In addition to the IBRC, there have been a number of other stakeholder groups assembled recently including the Citizen Advisory Committee for the Comprehensive Plan Update, the Cubberley Community Advisory Committee, Storm Drain, and the Library Bond Stakeholders Committee. The formation process, membership and structure of all of these are summarized in this staff report. City of Palo Alto Page 2 Background: At its meeting on June 27, 2016, the City Council reviewed the results from a second round of polling conducted by Fairbank, Maslin, Maullin, Metz & Associates (FM3) to inform Council’s decision about whether to place a local business tax on the ballot for November 2016 or an alternate election timeframe. Based on the second polling results and feedback from outreach efforts, outreach consultant TBWB outlined three paths forward for Council to consider in terms of timing for a potential tax measure that included (1) placing a general tax measure on the November 2016 ballot; (2) consideration of a special tax requiring two-thirds approval in 2017 or (3) placing a general tax measure requiring a simple majority on the November 2018 ballot. The Council’s Local Transportation Ad Hoc Committee had directed staff to bring these options, as well as a series of framing issues, for the full Council to consider at its June 27th meeting. The framework of major points for discussion included: Formation of an oversight committee Sunset of tax or not Estimated revenue generated by measure Structure and form of tax Relationship among timeframe for election, implementation and collection of revenues Potential projects that could be funded by tax proceeds Enforcement and other administrative elements and costs Impact on traffic congestion of no action/putting measure in place Regardless of the type and timing of a potential local tax to fund transportation projects, the Ad Hoc Committee was unanimous in its recommendation to the full Council on both the need for a stakeholder committee, as well as having representation from both the business and residential communities. As part of the motion passed by Council on June 27th, they directed staff to: A) Consider placing a special tax measure requiring a two-thirds vote on a special election ballot in 2017 and utilize the additional time to refine the proposal, build consensus and address potential concerns about a tax; and B) If necessary, consider placing a general tax measure requiring a simple majority vote on the November 2018 ballot and utilize the additional time to refine the proposal and build consensus and address potential concerns about a tax; and C) Create a stakeholder committee to explore priority transportation needs, identify funding requirements and explore various funding options and develop a funding plan. Committee members would include a balance of business and resident interests, ideally include but not be limited to Stanford, the Transportation Management Association, Palo Alto Unified School District, residents, Stanford Research Park, Transportation Demand Management Working Group; and D) Direct staff to return with a timeline with activities to plan for a ballot measure and options for structure of the stakeholder committee. City of Palo Alto Page 3 In their discussion, Council highlighted the work of the Infrastructure Blue Ribbon Committee (IBRC) as a model process for forming a stakeholder committee to consider a local transportation funding tax measure. This report is focused on the process used to form the IBRC, as well as other stakeholder groups, how members were selected, and the purpose and charter of such groups in order to outline for Council the options to structure a stakeholder committee. A determination of activities and timeline for any potential tax measure will need to be addressed subsequent to deciding on the makeup and charter of the stakeholder group. Discussion: As part of the City Council’s discussion about the timing, structure and options for placing a tax to raise funds that can be used for transportation projects on the ballot, the City Council directed staff to return with potential options to from a stakeholder advisory committee. Recent advisory committees have ranged in size from 11 to 28 members with membership criteria including neighborhood representation, subject matter expertise, members of existing Boards and Commissions, school district reps, businesses, and community partner affiliation. There have been a mixture of City Manager and Council-appointed committees, and with the exception of the Comprehensive Plan Update Citizen Advisory Committee, most have completed their work within about a year. In addition, if the November 8, 2016 County-wide transportation sales tax passes, the City’s local process will come at the same time as the Valley Transportation Authority (VTA) is developing guidelines for the use of the sales tax revenues. City staff understands that VTA will prepare draft guidelines for each program area covered by the sales tax measure, including complete streets, transit operations, grade separations, expressways, etc. In each case, the VTA Technical Advisory Committee (TAC), made up of staff, will review and make a recommendation to the VTA Board, which will adopt the guidelines. Palo Alto has representatives on the TAC and the PAC. Infrastructure Blue Ribbon Commission (IBRC) In 2010, the City was faced with a backlog of approximately $500 million of infrastructure projects (based on an estimate from an earlier study). The back log summary showed a five- year backlog of approximately $153 million and a longer horizon 20-year backlog of approximately $302 million. The backlog included all existing infrastructure maintained using General Fund resources. The future needs were major infrastructure projects that were currently unfunded. In March 2010, the City Council considered a Colleagues Memo from then Vice Mayor Sid Espinosa and Councilmembers Larry Klein, Greg Scharff and Greg Schmid that referred the issue of formation of an Infrastructure Blue Ribbon Commission (IBRC) to the Policy & Services Committee for review and recommendation. In addition, the City engaged the International City/County Management Association (ICMA) to analyze and recommend community engagement strategies around the City’s infrastructure City of Palo Alto Page 4 challenge. The recommendations were provided to the Commission as a way to help the design of an outreach process around the City’s infrastructure needs. In September 2010, the Council appointed IBRC members that included four Board and Commission members and 15 other members of the community (no alternates). One third of the applicants had been interviewed by each of three separate three-member Council subcommittees during the summer break. The 15 community members chosen were those who received the most Council votes. Ultimately two of the 15 did not participate on the IBRC, resulting in the total 17-member committee. The formation of the IBRC required a significant allocation of staff resources and support, routinely requiring 3-6 staff members at every IBRC meeting, in addition to others involved in follow-up work and research outside of the Commission meetings. Past experiences with similar task forces showed that the time to complete their work varied widely, and initially, the Council felt the IBRC would need 9 to 10 months to complete its work. In addition, staff resources identified to support the IBRC were also involved in preparing the operating budget, working on the Library Bond Program, and other priorities. To meet the timeframe set forth by the Council, staff reprioritized some existing workloads, and put together a cross-departmental team with staff from the City Manager’s Office, Public Works and Administrative Services leading the effort. The Commission began its work in November 2010, charged “to provide a recommendation to the City Council on infrastructure needs, priorities, projects and associated funding mechanisms to address the infrastructure backlog and future needs.” Seven guiding questions accompanied this charge. The IBRC process included 31 public Commission meetings, two study sessions with the Council, a session with the Planning and Transportation Commission and another with the Council Finance Committee, and well over 200 other meetings of the IBRC sub-committees and working groups, as well as meetings with other cities, between commissioners and staff, and with individuals who provided assistance. To address the sprawling challenges of Palo Alto’s infrastructure problems, IBRC initially created three sub-committees: Finance, Surface (streets, sidewalks, parks, etc.), and Buildings. These committees did basic research and analysis into the scope and detail of these three domains. Subsequently, the Commission redeployed into five working groups to study specific aspects of the City’s infrastructure that merited deeper analysis. These working groups (1) confirmed the need for and studied the development of an Infrastructure Management System, (2) analyzed current City data to determine Palo Alto’s existing catch-up and keep-up needs; (3) researched the needs of the City’s public safety facilities, (4) explored the opportunity represented by the Municipal Services Center and the Embarcadero East corridor, (5) worked out the financial considerations, and (6) considered opportunities for the future. Members of the City staff offered significant support throughout its efforts, responding to commissioners’ questions and City of Palo Alto Page 5 providing the basic information on which its understanding and consideration of options depended. The IBRC completed its work with a final report and recommendations that went to the City Council in December 2011. Cubberley Community Advisory Committee A process of discussing the Cubberley site began in November 2011. The process involved the formation of several groups. The Cubberley Policy Advisory Committee (PAC) consisted of two Palo Alto Unified School District members appointed by the School Board President and three City Council members appointed by the Mayor. The PAC was the primary advisor to the Council and the School Board on issues related to the lease and possible re-use or joint use of the Cubberley campus. The Cubberley Community Advisory Committee (CAC) was jointly appointed by the City Manager and School Superintendent and consisted of seven neighborhood representatives, one commercial retail representative, four Parent Teacher Association (PTA) representatives, four Cubberley tenant representatives, one community arts & services representative, one Parks & Recreation Commission representative, one Planning & Transportation Commission (PTC) representative, one Acterra representative, one Palo Alto Bicycle Advisory Committee (PABAC) representative, one City/School Traffic Safety Committee (CSTSC) representative, one recreation and sports league representative, and five at-large and other community member representative. The CAC reviewed Cubberley background and history and provided the PAC with community input including the possible re-use scenarios, alternative lease arrangements, site plan configurations, possible funding plans, identification of joint use opportunities and compatible standards. Members of the public were invited to all of the meetings, and the CAC was tasked with developing a final report. The PAC and CAC meetings were audio-recorded with minutes completed for the PAC with the cost shared by the City and PAUSD. A set of Guiding Principles was developed for use by both the PAC and the CAC that were intended to reflect community values of transparency and public collaboration. The CAC produced a comprehensive four-volume report in March 2013 with a series of recommendations for Cubberley. Significant staff support across several departments was required for this effort. Citizens Advisory Committee for Comprehensive Plan Update City of Palo Alto Page 6 The Citizens Advisory Committee (CAC) was created by the City Council in May of 2015 to provide community input to the ongoing Comprehensive Plan update. The CAC is charged with advising the City Council on suggested changes to the existing Comprehensive Plan’s programs and policies after the Council has set the structure of the goals. The CAC is made up of 22 community members to represent a diversity of interests, as well as three ex officio (non-voting) members representing the Planning & Transportation Commission, the Palo Alto Unified School District, and Stanford University. The initial 17 members were appointed by the City Manager based on stakeholder categories approved by the City Council, who later appointed five additional members to the committee. The charter or purpose of the CAC was developed in similar fashion to prior successful planning efforts such as the 2014 Housing Element Community Panel. The City developed an application submittal process that was broadly distributed. In appointing community members, the City Manager and the City Council sought a mix of members in terms of their familiarity with the City’s planning processes, a mix of ages and cultural backgrounds, and a mix of long-time residents and more recent arrivals. While neighborhood representatives were appointed “at large” to represent the interests of the entire City, residents were sought from a variety of Palo Alto neighborhoods. Renters and the business community were also sought out for representation, as well as interest/expertise in topics related to affordable housing, natural resource conservation, community health, environmental sustainability, real estate development, transportation and mobility, architecture and urban design and business and economics. The Committee is a Brown Act committee with meeting agendas and public notices of meetings. The CAC reviews Comprehensive Plan sections, recommendations of the Planning & Transportation Commission, and public input received during and in advance of the meetings. The CAC is also assisting staff with the evaluation of “open sourced” public input via an online tool and with synthesizing all materials and inputs as they review plan language (policies/programs) and proposed revisions. Members of the CAC are asked to review materials provided in advance of meetings, and are primarily engaged in reviewing and commenting on (rather than writing) draft plan language. The CAC meets on a monthly basis, and has formed a number of smaller subcommittees who work on more detailed recommendations on particular elements that are brought back to the larger group for discussion. In addition, the CAC has met with the City Council, and as the CAC works through each element, their recommendations are brought to City Council for discussion and direction. The CAC process has proven labor intensive for all involved, with CAC members, staff, and consultants devoting significant time to meetings and review/preparation of written materials between meetings. The subcommittee process has been particularly resource-intensive, with multiple subcommittee meetings occurring each month in addition to meetings of the full CAC. Each meeting entails preparation of a staff report, draft materials for (sub)committee review, City of Palo Alto Page 7 and supporting materials. While originally anticipated to extend from July 2015 to December 2016, it now appears the CAC’s work will extend through the spring of 2017. Storm Drain Committee City Manager Keene appointed an 11-member Blue Ribbon Committee in 2016 to advise the City Council on the future of the City’s Storm Drain Program. The Committee consisted of residents from throughout the community with varying interests and areas of expertise who met regularly with staff from February through mid-April to review the current status of the Storm Drain Program, study and prioritize future needs, and recommend a set of storm drain capital projects and programs for the coming years along with a funding plan. The Committee’s recommendations were forwarded to the City Council in late spring 2016 for formal consideration. The City’s Storm Drain Program is funded through user fees collected on monthly utility bills and deposited into the Storm Drainage Fund, an enterprise fund independent of the City’s General Fund. Program elements include ongoing storm drain system maintenance, storm water quality protection, and implementation of storm drain capital improvements. Storm drain fees are subject to the provisions of Proposition 218, which requires that new or increased property-related fees be approved by local property owners. The current storm drain rate structure was established in 2005 through a ballot-by-mail measure approved by a majority of property owners. Under the terms of the ballot measure, the current fees are set to sunset in June 2017 to their pre-2005 level unless a new ballot measure is approved. Enhanced funding for the Storm Drain Program will continue to be needed in future years due to ongoing and new needs. The Storm Drain Blue Ribbon Committee worked cooperatively with staff to review and prioritize current and future needs, develop a strategy for how to fund the highest-priority programs and projects, and make recommendations to the City Council for a funding ballot measure that will be presented to property owners for approval later in 2016. Library Bond Stakeholders Committee The Library Bond Stakeholders Committee was formed in 2009 and included representatives from a variety of boards and commissions with the charter to provide communication and feedback with their parent organization or board, and to provide access to architects, public works, library and community services to hear what was going on and communicate to the community. They initially met monthly, but once all of the library projects were underway, they moved to quarterly meetings. City department heads collaborated and asked existing City boards and commissions, well as the Palo Alto Library Foundation and Friends of Palo Alto Library to assign representatives to the committee. There was also a representative from the YMCA, schools, a City Councilmembers and several others. The City Council assigned the members of Library Bond Oversight Committee, which had the responsibility for ensuring the City of Palo Alto Page 8 bond funds were spent appropriately. They met quarterly under open meeting procedures, and was staffed by the City Manager’s Office. Resource Impact: This transportation initiative will require substantial City staff time and resources to support the work of the stakeholder committee, as well as Council input, time and attention. City of Palo Alto (ID # 7403) City Council Staff Report Report Type: Action Items Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: Ordinance Revising AR Findings Title: PUBLIC HEARING: Adoption of an Ordinance Approving Revisions to the Architectural Review Findings in Palo Alto Municipal Code Chapter 18.76 and Approval of an Exemption Under Sections 15061 and 15305 of the California Environmental Quality Act (CEQA) Guidelines. The Planning and Transportation Commission Recommended Council Approval of the Ordinance (Continued from September 12, 2016) STAFF REQUESTS THIS ITEM BE CONTINUED TO A DATE UNCERTAIN From: City Manager Lead Department: Planning and Community Environment Attachments: Attachment14.a: Attachment A: 10-24-2016 Memo (PDF) 14 Packet Pg. 770 CITY OF PALO ALTO TO: FROM: CITY OF PALO ALTO MEMORANDUM HONORABLE CITY COUNCIL PLANNING AND COMMUNITY ENVIRONMENT AGENDA DATE: October 24, 2016 ID#: 7313 SUBJECT: PUBLIC HEARING: Adoption of an Ordinance Approving Revisions to the Review Findings in Palo Alto Municipal Code Chapter 18.76 and Approval of an Exemption Under Sections 15061 and 15305 of the California Environmental Quality Act (CEQA) Guidelines. The Planning and Transportation Commission Recommended Council Approval of the Ordinance (Continued from September 12, 2016) Staff requests this item be continued to a date uncertain and will return to a future Council Agenda as scheduling permits. 14.a Packet Pg. 771 At t a c h m e n t 1 4 . a : A t t a c h m e n t A : 1 0 - 2 4 - 2 0 1 6 M e m o ( 7 4 0 3 : O r d i n a n c e R e v i s i n g A R F i n d i n g s ) City of Palo Alto (ID # 7397) City Council Staff Report Report Type: Informational Report Meeting Date: 10/24/2016 City of Palo Alto Page 1 Summary Title: UNAFF Proclamation Title: Proclamation Honoring the 19th Annual United Nations Association Film Festival (UNAFF) From: City Manager Lead Department: City Clerk Attachments: Attachment A: Proclamation Honoring the 19th Annual United Nations Association Film Festival (UNAFF) (DOCX) Proclamation 18th ANNUAL UNITED NATIONS ASSOCIATION FILM FESTIVAL (UNAFF) WHEREAS, October 20, 2016 marks the 19th anniversary of the United Nations Association Film Festival (UNAFF), which was originally created to celebrate the 50th anniversary of the signing of the Universal Declaration of Human Rights; and WHEREAS, UNAFF was founded by Stanford educator and film critic Jasmina Bojic with the participation of the Stanford Film Society and the UNA Mid-peninsula Chapter, a community based nonprofit organization in Palo Alto; and WHEREAS, UNAFF gives six awards: UNAFF Grand Jury Award for Best Documentary, UNAFF Grand Jury Award for Best Short Documentary, UNAFF/Stanford Video Award for Best Cinematography, UNAFF/Stanford Video Award for Best Editing, UNAFF Youth Vision Award and the Visionary Award; and WHEREAS, UNAFF has previously screened some of the most honored and talked about documentaries including seven that went on to win Academy Awards and thirty that were nominated; and WHEREAS, UNAFF celebrates the power of films dealing with human rights, environment, women’s issues, homelessness, racism, disease control, universal education, war and peace with the theme this year of “COMPASS FOR A BETTER WORLD”; and WHEREAS, the UNAFF jury selected 60 films for this year’s festival dealing with topics from countries around the world; and WHEREAS, UNAFF will be held October 20 to October 30, 2016 at the Aquarius Theatre in Palo Alto, at Stanford University, in East Palo Alto and in San Francisco; and WHEREAS, UNAFF hosts academics and international filmmakers to discuss the topics in the films with members of the audience, who are often separated by geography, ethnicity and economic status. NOW, THEREFORE, I, PATRICK BURT, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim October 20-30, 2016 as United Nations Association Film Festival Days, and encourage the citizens of our community to attend UNAFF screenings and panels during the eleven days festival. Presented: November 7, 2016 ______________________________ Patrick Burt Mayor