HomeMy WebLinkAbout2008-08-04 City Council Agenda Packet
1 08/04/08
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL DURING NORMAL BUSINESS HOURS.
Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council
Chambers on the Friday preceding the meeting. Regular Meeting
Council Chambers
August 04, 2008
7:00 PM
ROLL CALL
SPECIAL ORDERS OF THE DAY
1. Proclamation for 25th Annual National Night Out
Attachment
2. Proclamation for Palo Alto Relay for Life
Attachment
3. Adoption of a Resolution Expressing Appreciation to Frank Benest on
His Retirement
Attachment
4. Appointment of Two Candidates to the Utilities Advisory Commission
for Two Terms Ending June 30, 2011
Attachment
ORAL COMMUNICATIONS
Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration or Oral Communications period to 30 minutes.
CONSENT CALENDAR
Items will be voted on in one motion unless removed from the calendar by two Council Members.
08/04/08 2
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL DURING NORMAL BUSINESS HOURS.
5. Adoption of an Ordinance Calling a Special Election and Ordering
the Submission of a Proposition Incurring Bonded Debt for the
Purpose of Construction and Completion of a New Mitchell Park
Library and Community Center, Renovation and Expansion of
Main Library, and Renovations to Downtown Library to the
Qualified Voters of the City of Palo Alto at the Special Municipal
Election to be Held on November 4, 2008
(Introduced on July 21, 2008 – passed 7-0 Schmid & Yeh absent)
CMR 340 Attachment
6. Approval of a Contract With Callander Associates Landscape
Architecture, Inc., in the Total Amount Not to Exceed $176,186 for
Landscape and Engineering Design Services for Greer Park Irrigation
System Replacement and Phase IV Improvements – Capital
Improvement Program Project PE-09002
CMR 333 Attachment
7. Adoption of a Budget Amendment Ordinance for the Fiscal Year
2008-09 to Provide an Additional Appropriation of $80,000 to
Vehicle Replacement Fund, Capital Improvement Program
Project VR-07800, and Approval of a Purchase Order With Coast
Counties Truck and Equipment Company in an Amount Not to Exceed
$744,138 for the Purchase of Two 10-12 Yard Dump Trucks, a 3,600-
Gallon Water Truck and a Transfer Dump Truck and Trailer Set
CMR 328 Attachment
8. Adoption of a Budget Amendment Ordinance Amending the
Budget for Fiscal Year 2008-09 to Provide an Additional
Appropriation of $3,436,713 to Capital Improvement Program
Project PF-01002; Civic Center Infrastructure Improvements; and
Approval of Contracts With 1) Nexgen Builders, Inc. in the Amount of
$498,875 for General Interior/Exterior Work Items and Finishes; 2)
Acco Engineered Systems, Inc. in the Amount of $2,627,228 for
Mechanical and Controls; 3) Acco Engineered Systems, Inc. in the
Amount of $1,432,530 for Plumbing, Fire Sprinklers and Fuel Oil
System; and 4) Rosendin Electric in the Amount of $488,590 for
Electrical and Fire Alarm
CMR 334 Attachment
08/04/08 3
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL DURING NORMAL BUSINESS HOURS.
9. Approval of a Contract With Granite Rock Company dba Pavex
Construction Division in the Amount of $798,255 for the Municipal
Services Center Resurfacing Project - Capital Improvement Program
Project PE-08005
CMR 332 Attachment
10. Approval of a Refuse Enterprise Fund Contract With Shaw
Environmental in the Amount of $401,350 to Repair, Replace and
Upgrade the Landfill Gas and Leachate Collection System Within
Byxbee Park/Palo Alto Landfill, Capital Improvement Program Project
RF-09002
CMR 322 Attachment
11. Approval of a Contract With Group 4 Architecture Research + Planning,
Inc. in the Total Amount Not to Exceed $195,400 for Former Los Altos
Treatment Plant Feasibility Study (Including Space Needs and Siting
for a New Animal Services and Recycle Center) Capital Improvement
Program Project PE-09004
CMR 330 Attachment
12. Adoption of Budget Amendment Ordinance for Fiscal Year 2008-
09 to Provide an Additional Fiber Optics Fund Appropriation of
$300,000 for Legal and Technical Consultants to Support the
Ultra-High-Speed Broadband System Negotiations; Authorization
to Contract for Legal Services With the Law Firm of Davis Wright
Tremaine, LLP in the Amount of $100,000 and Authorization to
Contract With the Law Firm of Spiegel & McDiarmid, LLP in the Amount
of $50,000
CMR 336 Attachment
13. Approval of a Loan Agreement and a Regulatory Agreement With
Fabian Way Associates, L. P. to Provide a Development Loan of
Residential Housing Funds in the Amount of $600,000 for a Very Low
Income 56-Unit Senior Rental Housing Project at 3895 Fabian Way
CMR 312 Attachment
14. Approval of a Final Map to Create Six Residential Condominium Units
on a .57 Acre Lot at 433 W. Meadow Drive [08PLN-00149]
(Continued from July 21, 2008)
08/04/08 4
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL DURING NORMAL BUSINESS HOURS.
CMR 310 Attachment
14A. Adoption of an Ordinance Amending Section 2.04.070 (Agenda) of Title
2 (Administrative Code) to Eliminate the Printing of the City Council
Agenda in a Newspaper of General Circulation
Attachment
AGENDA CHANGES, ADDITIONS, AND DELETIONS
HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the
public discussion to make their remarks and put up to three minutes for concluding remarks after other members
of the public have spoken.
OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be
limited to a maximum of five minutes per speaker unless additional time is granted by the presiding officer. The presiding officer may reduce the allowed time to less than five minutes if necessary to accommodate a larger
number of speakers.
PUBLIC HEARINGS
15. Confirm Weed Abatement Report and Adoption of a Resolution
Confirming Weed Abatement Report and Ordering Cost of Abatement
to be a Special Assessment of the Respective Properties Described
Therein
CMR 296 Attachment
REPORTS OF OFFICIALS
16. Authorize Staff to Negotiate an Agreement With Greenwaste of Palo
Alto to Provide Solid Waste, Recycling and Organics Services and, if
Negotiations are Not Satisfactory, Authorize Staff to Alternatively
Negotiate With Norcal Systems of Palo Alto
CMR 329 Attachment
COUNCIL MATTERS
17. This Item Number Has Been Left Blank Intentionally
18. Designation of Voting Delegate and Alternate for 2008 League
Conference
Attachment
08/04/08 5
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 DURING NORMAL BUSINESS HOURS.
19. Approval of Compensation Recommendations for City Manager – Frank
Benest, City Attorney – Gary Baum, and City Clerk – Donna Grider and
Approval of Contract Amendments with City Attorney – Gary Baum,
City Clerk – Donna Grider and new City Manager – James Keene
Attachment
COUNCIL COMMENTS, ANNOUNCEMENTS, AND REPORTS FROM CONFERENCES
Members of the public may not speak to the item(s).
ADJOURNMENT
Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who
would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact
650-329-2550 (Voice) 24 hours in advance.
CMR:340:08 Page 1 of 2
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: CITY MANAGER’S OFFICE
DATE: AUGUST 4, 2008 CMR: 340:08
SUBJECT: ADOPTION OF AN ORDINANCE CALLING A SPECIAL ELECTION
AND ORDERING THE SUBMISSION OF A PROPOSITION INCURRING BONDED
DEBT FOR THE PURPOSE OF CONSTRUCTION AND COMPLETION OF A NEW
MITCHELL PARK LIBRARY AND COMMUNITY CENTER, RENOVATION AND
EXPANSION OF MAIN LIBRARY, AND RENOVATIONS TO DOWNTOWN LIBRARY
TO THE QUALIFIED VOTERS OF THE CITY OF PALO ALTO AT THE SPECIAL
MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2008
RECOMMENDATION
Staff recommends that Council adopt the attached ordinance (Attachment A) calling for a special
municipal election on November 4, 2008 for the purposes of ordering the submission of a
proposition incurring bonded debt to construct and complete a new Mitchell Park Library and
Community Center, renovate and expand Main Library and renovate Downtown Library.
BACKGROUND
On July 21, 2008, the City Council adopted a resolution and introduced this ordinance for the
purposes of placing a measure on the November ballot authorizing issuance of bonded debt to
finance construction of a new Mitchell Park Library and Community Center, renovation and
expansion of Main Library and renovation of Downtown Library (Attachment B, CMR 321:08).
Pursuant to State law, the City Council must introduce and then adopt, at a subsequent meeting,
an ordinance to place the measure on the November 4, 2008 ballot. The ordinance attached was
introduced at the July 21, 2008 Council meeting and reflects staff changes made just prior to that
meeting. Following the Council action this evening, the City Clerk will file the appropriate
paperwork with the County Registrar of Voters before the August 8 deadline for November
ballot measures.
For reference, staff is also including with this report information related to filing arguments
either for or against November ballot measures (Attachment C). The July 21 staff report
(Attachment B) outlined the process for preparing and filing direct and rebuttal arguments on a
measure.
RESOURCE IMPACT
The staff report prepared for the July 21, 2008 City Council meeting (Attachment B) outlined the
resource impacts associated with these projects.
CMR:340:08 Page 2 of 2
POLICY IMPLICATIONS
This report is consistent with existing City policies and with the establishment of the Library
Plan/Public Safety Building as a Top 4 priority for 2008.
ENVIRONMENTAL REVIEW
The environmental review process for these projects was outlined and approved at the July 21,
2008 meeting as outlined in that staff report (Attachment B).
ATTACHMENTS
Attachment A: AN ORDINANCE OF THE COUNCIL OF THE CITY OF PALO
ALTO CALLING A SPECIAL ELECTION AND ORDERING THE
SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT
FOR THE PURPOSE OF CONSTRUCTION AND COMPLETION OF A
NEW MITCHELL PARK LIBRARY AND COMMUNITY CENTER,
RENOVATION AND EXPANSION OF MAIN LIBRARY, AND
RENOVATIONS TO DOWNTOWN LIBRARY TO THE QUALIFIED
VOTERS OF THE CITY OF PALO ALTO AT THE SPECIAL
MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2008
Attachment B: CMR 321:08 from July 21, 2008 City Council meeting
Attachment C: “City of Palo Alto Measure/Ordinances” - information sheet from the City
Clerk regarding measures
PREPARED BY: __________________________________
Kelly Morariu
Interim Deputy City Manager
CITY MANAGER APPROVAL: __________________________________
FRANK BENEST
City Manager
CMR:333:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: AUGUST 4, 2008 CMR: 333:08
SUBJECT: APPROVAL OF A CONTRACT WITH CALLANDER ASSOCIATES
LANDSCAPE ARCHITECTURE, INC., IN THE TOTAL AMOUNT NOT
TO EXCEED $176,186 FOR LANDSCAPE AND ENGINEERING DESIGN
SERVICES FOR GREER PARK IRRIGATION SYSTEM
REPLACEMENT AND PHASE IV IMPROVEMENTS – CAPITAL
IMPROVEMENT PROGRAM PROJECT PE-09002
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to
execute the attached contract with Callander Associates Landscape Architecture, Inc.,
(Attachment A) in the amount of $176,186 for landscape and engineering design services for the
Greer Park Irrigation System Replacement and Phase IV Improvements (PE-09002), including
$160,186 for basic services and $16,000 for additional services.
BACKGROUND
John Lucas Greer Park is a 22-acre neighborhood park located at 1098 Amarillo Avenue. The
existing improvements were constructed in phases during the 1980’s and early 1990’s. A 1.5
acre portion of the park on the corner of Colorado Avenue and West Bayshore Road has
remained undeveloped until now. Funding for improvements to this undeveloped parcel, which
had been identified as Phase IV, was included in the FY 07-08 budget (CIP PE-09002). Staff
decided to postpone implementation until the current fiscal year in order to combine that project
with a more all-encompassing FY 08-09 project (CIP PE-09002) that will include improvements
to the existing irrigation system, the recycled water mixing and pump station, and various other
components of the infrastructure, including the children’s play area, picnic areas, pathways and
benches. Staff concluded that combining the project’s phases would accelerate implementation
of critical improvements to the irrigation pump station and result in more competitive
construction bids while minimizing disruption of public access to the park.
DISCUSSION
The purposes of the Greer Park Irrigation System Replacement and Phase IV Improvements
include: repair or replacement of those parts of the park irrigation system that are no longer
serviceable, including the pump station and recycled water mixing system; development of the
vacant parcel as a “passive” recreational area compatible with the potential for future installation
of tennis courts; replace the children’s play structure and renovation of the surrounding plaza
and picnic areas; and implementation of improvements to other components of existing park
infrastructure as funding allows, including pathways, benches, fencing, backstops, fitness
stations, dog run and peripheral landscaped areas.
CMR:333:08 Page 2 of 3
The consultant will conduct public outreach and prepare design and construction documents to
implement these improvements.
The existing irrigation system and pump station exhibit significant deterioration and are in need
of almost total replacement. Some lateral lines and spray heads may be able to be salvaged
depending on the eventual design, but the pump station, controllers, main line, valves, and most
lateral lines and spray heads will need to be replaced. The children’s play area is also dated and
in need of an upgrade. The undeveloped 1.5 acre parcel has long been the subject of intense
discussion among advocates of various scenarios for its development. On August 7, 2006
Council directed staff to construct a passive recreational area within the 1.5 acre undeveloped
area, the design of which should ultimately accommodate one or two tennis courts in the future if
the City so desired (CMR:311:06). Other components of the existing park infrastructure are also
in need of upgrades, including softball fencing and dugouts, site furniture and the dog run.
These improvements will be included in the renovation design but implemented only as funding
becomes available.
Summary of Solicitation Process
Proposal Description
Name/Number of Proposal
Greer Park Renovation and Pump Station Replacement;
RFP126814
Proposed Length of Project 6 months – design only
Number of Proposals Mailed 21
Total Days to Respond to Proposal 25
Pre-proposal Meeting Date May 13, 2008 at 10:30 a.m.
Number of Company Attendees at Pre-
proposal Meeting
19
Number of Proposals Received: 8
Company Name Location (City, State) Selected for oral
interview?
1. Royston, Hanamoto, Alley & Abey Marin, CA Yes
2. Amphion Environmental Oakland, CA Yes
3. Ripley Design Group Walnut Creek, CA No
4. Chau & Chang Landscape Arch. Albany, CA No
5. Callander Associates San Mateo, CA Yes
6. HMH Landscape Architecture San Jose, CA No
7. Tanaka Design Group San Francisco, CA No
8. Bellinger Foster Steinmetz Monterey, CA Yes
Range of Proposal Amounts
Submitted
$118,000- $166,500
A Request for Proposals (RFP) for the Greer Park Renovation and Pump Station Replacement
design services was posted at the Civic Center and on the City website. An evaluation
committee consisting of staff members from Public Works Engineering and the Community
Services Department reviewed the proposals. Four firms were invited to participate in oral
interviews on July 1, 2008. The committee carefully reviewed each firm's qualifications and
CMR:333:08 Page 3 of 3
submittal in response to the criteria identified in the RFP. The criteria used to select a firm were
project management strengths and qualifications, design aesthetics, technical expertise and price.
Callander Associates Landscape Architects was selected over the other firms interviewed on the
basis of its extensive experience in park planning and design including public outreach, as well
as the superior qualifications of their sub-consultants in the areas of pump station mechanics and
irrigation systems design. In addition, Callander Associates Landscape Architects has worked on
universally accessible play area designs.
RESOURCE IMPACT
Council had appropriated a total of $1,850,000 to PE-09002 Greer Park Irrigation System
Replacement and Phase IV Improvements since the project’s inception in fiscal year 2007-08.
Funding for the Greer Park Renovation and Pump Station Replacement design is available in this
Capital Improvement Project. Staff anticipates that development of the vacant 1.5 acre parcel
may require some reallocation of parks maintenance manpower and resources, and would not
represent an expense greater than the hiring of a seasonal maintenance assistant for
approximately 25% of the maximum allotted work for a total expense of approximately $4,000.
POLICY IMPLICATIONS
This project is consistent with existing City policies, including the recommendations of the Parks
and Recreation Commission and the Finance Committee (CMR 311:06) to proceed with the
completion of Greer Park in 2006.
TIMELINE
The consultant will begin design work shortly after contract approval. Completion of the design
phase is anticipated to be in the winter of 2009.
ENVIRONMENTAL REVIEW
This project is exempt from the California Environmental Quality Act (CEQA) pursuant to the
provisions of Sections 15301 and 15302 of the CEQA guidelines.
ATTACHMENTS
Attachment A: Contract (includes Scope of Services and Certification of Nondiscrimination)
PREPARED BY: _________________________________
CHRIS RAFFERTY
Landscape Architect
DEPARTMENT HEAD: _________________________________
GLENN ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: ________________________________
STEVE EMSLIE/KELLY MORARIU
Deputy City Managers
CMR:328:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: AUGUST 4, 2008 CMR: 328:08
SUBJECT: ADOPTION OF A BUDGET AMENDMENT ORDINANCE FOR THE
FISCAL YEAR 2008-09 TO PROVIDE AN ADDITIONAL
APPROPRIATION OF $80,000 TO VEHICLE REPLACEMENT FUND,
CAPITAL IMPROVEMENT PROGRAM PROJECT VR-07800, AND
APPROVAL OF A PURCHASE ORDER WITH COAST COUNTIES
TRUCK AND EQUIPMENT COMPANY IN AN AMOUNT NOT TO
EXCEED $744,138 FOR THE PURCHASE OF TWO 10-12 YARD DUMP
TRUCKS, A 3,600-GALLON WATER TRUCK AND A TRANSFER DUMP
TRUCK AND TRAILER SET
RECOMMENDATION
Staff recommends that Council:
1. Adopt the attached Budget Amendment Ordinance (BAO) in the amount of $80,000
(Attachment A) to provide an additional appropriation to Vehicle Replacement Fund,
Capital Improvement Program (CIP) Project, Scheduled Vehicle and Equipment
Replacements, VR-07800, for the purchase of a transfer dump truck and trailer set
(transfer dump).
2. Approve and authorize the City Manager or his designee to execute a purchase order with
Coast Counties Truck and Equipment Company in an amount not to exceed $744,138 for
the purchase of two 10-12 yard dump trucks, a 3,600-gallon water truck, and the transfer
dump noted in item 1 above.
DISCUSSION
Vehicle Replacement Fund CIP Project VR-07800 authorizes the replacement of three 10-12
yard dump trucks and a 3,600-gallon water truck. Each of these trucks is at the end of its useful
life, and cannot meet current exhaust emissions standards without a costly emissions retrofit.
Two of the dump trucks and the water truck will be replaced “in-kind”; the third dump truck will
be upgraded to a transfer dump to provide additional load-carrying capacity for the in-house
streets maintenance program. The $80,000 incremental cost of this upgrade will be funded by a
transfer from the Streets Maintenance CIP Project PE-86070 to the Vehicle Replacement Fund
CIP in accordance with the attached BAO.
CMR:328:08 Page 2 of 3
The more expensive transfer dump is needed to accommodate the quantity of pavement spoils
that will be generated by a self-loading asphalt grinding machine that was recently ordered and is
expected to be in service by December 2008. Using a grinder to mill the asphalt is much more
efficient than the current method of breaking up the pavement and loading it in large chunks;
however, because the grinder is more efficient, it will fill the streets crew’s existing 10-12 yard
dump trucks much faster, necessitating many more trips to the dump site. The transfer dump,
with its 30-yard capacity, will accommodate nearly three times the amount of material, which
will significantly reduce the number of trips to the dump site. This will increase labor efficiency,
reduce fuel consumption, and lower carbon emissions. In addition, the truck’s additional
capacity will be very beneficial when material needs to be hauled out of the area subsequent to
the closure of the City’s landfill.
A Request for Quotation (RFQ) for medium duty trucks was sent to eight vendors on May 27,
2008. Bids were received from two qualified vendors on June 17, 2008, as listed on the attached
bid summary (Attachment B). Bids ranged from a high of $744,138 (for all bid items) to a low
bid of $193,953 (for the water truck only). The bid for the water truck submitted by West-Mark
did not meet specifications, so it could not be considered for award. Vendors not responding
indicated that they did not submit a bid because they were to busy too respond.
Staff has reviewed all bids submitted and recommends that the bid submitted by Coast Counties
Truck and Equipment Company be accepted and that Coast Counties Truck and Equipment
Company be declared the lowest responsible bidder.
Staff has checked references supplied by the vendor for previous contracts and has found no
significant complaints.
RESOURCE IMPACT
In fiscal year 2006-07, Council appropriated $3.6 million to CIP Project VR-07800 to cover the
costs of scheduled replacements of vehicles and equipments. In the second quarter of fiscal year
2006-07, Council appropriated an additional $175,000 to this project to provide funding for the
acquisition of a self-loading asphalt grinding machine to be used primarily for the street
maintenance project. The existing balance of the appropriation is not sufficient to cover the
increased cost of a dump truck and trailer set.
A Budget Amendment Ordinance is necessary to move the appropriation of $80,000 from the
Street Maintenance CIP PE-86070 to Vehicle Replacement CIP VR-07800 for the purchase of
the transfer dump to be utilized in the street maintenance program. The proposed BAO has no
impact on any reserve balance.
POLICY IMPLICATIONS
Authorization of the contract does not represent any change to the existing policy.
ENVIRONMENTAL REVIEW
This is not a project as defined in Section 21065 of the California Environmental Quality Act.
The trucks being supplied are in conformance with all applicable emissions laws and regulations,
and will emit significantly fewer exhaust emissions than the vehicles they are replacing.
CMR:328:08 Page 3 of 3
ATTACHMENTS
Attachment A: Budget Amendment Ordinance (includes Exhibit A: CIP page)
Attachment B: Bid Summary
Attachment C: Certification of Nondiscrimination
PREPARED BY: ______________________________________
KEITH LAHAIE
Fleet Manager
DEPARTMENT HEAD: ______________________________________
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: ______________________________________
KELLY MORARIU and STEVE EMSLIE
Deputy City Managers
CMR:334:08 Page 1 of 7
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: AUGUST 4, 2008 CMR: 334:08
SUBJECT: ADOPTION OF A BUDGET AMENDMENT ORDINANCE AMENDING
THE BUDGET FOR FISCAL YEAR 2008-09 TO PROVIDE AN
ADDITIONAL APPROPRIATION OF $3,436,713 TO CAPITAL
IMPROVEMENT PROGRAM PROJECT PF-01002; CIVIC CENTER
INFRASTRUCTURE IMPROVEMENTS; AND APPROVAL OF
CONTRACTS WITH 1) NEXGEN BUILDERS, INC. IN THE AMOUNT
OF $498,875 FOR GENERAL INTERIOR/EXTERIOR WORK ITEMS
AND FINISHES; 2) ACCO ENGINEERED SYSTEMS, INC. IN THE
AMOUNT OF $2,627,228 FOR MECHANICAL AND CONTROLS;
3) ACCO ENGINEERED SYSTEMS, INC. IN THE AMOUNT OF
$1,432,530 FOR PLUMBING, FIRE SPRINKLERS AND FUEL OIL
SYSTEM; AND 4) ROSENDIN ELECTRIC IN THE AMOUNT OF
$488,590 FOR ELECTRICAL AND FIRE ALARM
RECOMMENDATION
Staff recommends that Council:
1. Adopt the attached Budget Amendment Ordinance (BAO) in the amount of $3,436,713
(Attachment A) to provide an additional appropriation for the Civic Center Infrastructure
Upgrades, Capital Improvement Program (CIP) Project PF-01002.
2. Approve and authorize the City Manager or his designee to execute the attached contract
with Nexgen Builders, Inc. in the amount of $498,875 (Attachment B) for Civic Center
Infrastructure Upgrades: General Interior/Exterior Work Items and Finishes - Capital
Improvement Program Project PF-01002.
3. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with Nexgen Builders, Inc. for related, additional but unforeseen
work which may develop during the project, the total value of which shall not exceed
$49,925.
4. Approve and authorize the City Manager or his designee to execute the attached contract
with Acco Engineered Systems, Inc. for base bid services in the amount of $2,440,453
plus allowance #1 in the amount of $86,775 and allowance #2 in the amount of $100,000
for a total amount of $2,627,228 (Attachment C) for Civic Center Infrastructure
Upgrades: Mechanical and Controls - Capital Improvement Program Project PF-01002.
CMR:334:08 Page 2 of 7
5. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with Acco Engineered Systems, Inc. for related, additional but
unforeseen work which may develop during the project, the total value of which shall not
exceed $244,047.
6. Approve and authorize the City Manager or his designee to execute the attached contract
with Acco Engineered Systems, Inc. in the amount of $1,432,530 (Attachment D) for
Civic Center Infrastructure Upgrades: Plumbing, Fire Sprinklers and Fuel Oil System -
Capital Improvement Program Project PF-01002.
7. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with Acco Engineered Systems, Inc. for related, additional but
unforeseen work which may develop during the project, the total value of which shall not
exceed $143,270.
8. Approve and authorize the City Manager or his designee to execute the attached contract
with Rosendin Electric in the amount of $488,590 (Attachment E) for Civic Center
Infrastructure Upgrades: Electrical and Fire Alarm - Capital Improvement Program
Project PF-01002.
9. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with Rosendin Electric for related, additional but unforeseen work
which may develop during the project, the total value of which shall not exceed $48,910.
BACKGROUND
The Civic Center was built in 1969. It houses the majority of the City administrative offices in
86,500 square feet, the police station in 19,000 square feet, and three levels of parking in
250,000 square feet. The building complex has a replacement value approaching $100 million
dollars in today’s market. Industry standards recommend spending a minimum of 2% of the
building value on maintenance and repairs annually, equating to $2 million per year, to preserve
and maintain the building. These expenditures are not for upgrades, improvements or
betterments; rather they serve to preserve and maintain the building in continuing good
functional condition.
Major electrical and mechanical systems such as the boiler, generator, and fan system
components, which are original to the building, are proposed to be replaced or refurbished under
these contracts. These systems have exceeded their useful lives and are in need of replacement
to provide another 30 years of beneficial use of the building. Service interruptions have occurred
and may become more frequent if equipment is not replaced or refurbished as currently
scheduled. Mechanical and electrical systems serving the police wing are excluded from the
project at this time.
As part of the on-going capital infrastructure maintenance program, a complete building system
study of the Civic Center was completed in fiscal year 2002-03. Construction covered under
these contracts is based on recommendations made in the Civic Center Building Infrastructure
Study dated September 5, 2003 (Attachment F). The study may be viewed at the Public Works
Department counter located on the 6th Floor at 250 Hamilton Avenue, Palo Alto, or by contacting
CMR:334:08 Page 3 of 7
the Manager of Facilities Maintenance and Projects at 650-496-6973. An elevator upgrade, the
first major infrastructure work, was completed in 2005. Design services for the remainder of the
work identified in FY 2002/03, which includes electrical system upgrades, generator
replacement, mechanical system upgrades, and exterior sealing and painting were awarded in
2005 (CMR:282:05). A contract for Construction Management Services was awarded on
March 10, 2008 to assist City staff with project management during this phase (CMR:160:08).
Due to the overall cost of the project, construction of the major work has been broken into three
phases and will be bid in three stages. Work awarded in this first phase with these four contracts
will include replacement of the main building generator, boiler, and refurbishment or
replacement of major garage and building mechanical and electrical systems. This phase also
addresses various code-required fire and life safety upgrades. Phases two and three will improve
the remainder of the mechanical and electrical systems, including transformers, panels, etc.; and
will include exterior painting and sealing. These phases are expected to be completed over the
next four to five years.
Funding for this and the remaining phases was spread over a period of six years to relieve the
burden on the Infrastructure Reserve. Funds previously set aside were deferred until the project
was bid, allowing for the funds to be used for other projects, and just in time funding for this
phase. Timing of specific items may shift due to condition assessment and availability of
funding.
DISCUSSION
The work to be completed under this phase will be completed by four multiple prime contractors
responsible for: General Interior/Exterior Work Items and Finishes; Mechanical and Controls;
Plumbing, Fire Sprinklers and Fuel Oil System; and Electrical and Fire Alarm. Use of this
multiple prime delivery method, coupled with a construction management firm, provides reduced
overhead cost for the specialty contractors, increases competition for each contract, and
augments project management services of the limited staffing available in-house.
The scope of work under General Interior/Exterior Work Items and Finishes includes jobsite
trailers, fencing, barricades, and dust abatement measures for the full scope of the project;
complete renovation of the Level “A” Restrooms for accessibility; exterior/interior removal and
replacement of floors, walls, and ceilings as required for installations by other trades; digital
concrete scanning for work by all trades; structural infill of floors, walls, and ceilings;
construction of fire rated shafts; and exterior and interior finishes required such as plaster, paint,
tile, etc.
The scope of work under Mechanical and Controls includes the demolition and re-work of all
heating, ventilation, air conditioning and control work for the building supply and return air fan
systems including fan enclosures, coils, and valves; refurbishment of garage fan systems and CO
sensing and control system; testing, repair and replacement of fire and smoke dampers; repair or
replacement of roof exhaust fans; replacement of the HVAC unit serving the second floor
computer room; and all sheetmetal and ductwork as required for the project. This package
includes two allowances which will be awarded with the base bid services. Allowance #1 is for
the repair and replacement of fire dampers in the main air supply ductwork throughout the
CMR:334:08 Page 4 of 7
building. Allowance #2 is for the replacement of actuator motors in the building’s supply and
return fan systems.
The scope of work under the Plumbing, Fire Sprinkler and Fuel Oil System package includes all
work related to the emergency generator diesel fuel supply lines; boiler replacement with three
modulating boilers; fire sprinkler system modifications; modifications to the chilled and hot
water piping systems; supply and installation of all plumbing fixtures; and all piping, pumps,
valves, etc. required for work under all contracts.
The scope of work for the Electrical and Fire Alarm package includes all low and high voltage
electrical work; fire alarm system modifications; replacement of the building emergency
generator; provision of temporary generator during construction; all motors, starters, drives,
transformers, lighting fixtures, etc. as required by the project; and electrical system wiring and
connections to equipment under all contracts.
Work of all four contractors will be concurrent, with disruptive work scheduled for evenings and
weekends. The construction is scheduled to begin September 2008 with completion in summer
2009.
Bid Process
A notice inviting formal bids for the Civic Center Infrastructure Upgrades project was posted at
City Hall and sent to 40 contractors and 5 builder's exchanges on June 9, 2008. The bidding
period was 36 days. Bids were received from 25 qualified contractors on July 15, 2008, as listed
on the attached bid summary (Attachment F).
General Interior/Exterior Work Items and Finishes bids ranged from a high of $885,000 to a low
bid of $498,875.
Mechanical and Controls bids ranged from a high of $2,511,840 to a low bid of $2,440,453.
Plumbing, Fire Sprinklers and Fuel Oil System bids ranged from a high of $1,789,239 to a low
bid of $1,432,530.
Electrical and Fire Alarm bids ranged from a high of $911,380 to a low bid of $488,590.
Contractors not responding indicated they did not bid due to their workload, the size of the
project, the complexity of working in an occupied building, and unfamiliarity with some of the
building’s systems.
Summary of Bid Process
Bid Name/Number Civic Center Infrastructure Upgrades - IFB
Proposed Length of Project 270 calendar days
Number of Bid Packages Mailed to
Contractors
40
Number of Bid Packages Mailed to
Builder’s Exchanges
5
Total Days to Respond to Bid 36
CMR:334:08 Page 5 of 7
Pre-Bid Meeting June 19, 2008
Number of Company Attendees at
Pre-Bid Meeting
38
Number of Bids Received:
General Interior/Exterior Work
Items and Finishes
6
Bid Price Range $498,875 - $885,000
Number of Bids Received:
Mechanical and Controls
2
Bid Price Range $2,440,453 – $2,511,840
Number of Bids Received:
Plumbing, Fire Sprinklers and Fuel
Oil System
2
Bid Price Range $1,432,530 – $1,789,239
Number of Bids Received:
Electrical And Fire Alarm
3
Bid Price Range $488,590 – $911,380
*Bid summary provided in Attachment G. The Certification of Nondiscrimination forms are
Attachment H.
Staff reviewed all bids submitted for General Interior/Exterior Work Items and Finishes and
recommends that the bid of $498,875 submitted by Nexgen Builders, Inc. be accepted and that
Nexgen Builders, Inc. be declared the lowest responsible bidder. The change order amount of
$49,925 which equals ten percent of the total contract is requested for unforeseen conditions
which may be discovered during construction.
Staff reviewed all bids submitted for Mechanical and Controls and recommends that the bid of
$2,440,453 plus allowances submitted by Acco Engineered Systems, Inc. be accepted and that
Acco Engineered Systems, Inc. be declared the lowest responsible bidder. The change order
amount of $244,047 which equals ten percent of the total contract is requested for unforeseen
conditions which may be discovered during construction.
Staff reviewed all bids submitted for Plumbing, Fire Sprinklers and Fuel Oil System and
recommends that the bid of $1,432,530 submitted by Acco Engineered Systems, Inc. be accepted
and that Acco Engineered Systems, Inc. be declared the lowest responsible bidder. The change
order amount of $143,270 which equals ten percent of the total contract is requested for
unforeseen conditions which may be discovered during construction.
Staff reviewed all bids submitted for Electrical and Fire Alarm and recommends that the bid of
$488,590 submitted by Rosendin Electric be accepted and that Rosendin Electric be declared the
lowest responsible bidder. The change order amount of $48,910 which equals ten percent of the
total contract is requested for unforeseen conditions which may be discovered during
construction.
The engineer’s estimate of $5,911,700 was prepared based on the project award as a whole.
Breakdown was not provided in a way to compare the four individual packages. The total of
$5,047,223, including allowances, for the four contracts is fifteen percent below the engineer’s
CMR:334:08 Page 6 of 7
estimate of $5,911,700. This cost reduction is in large part due to splitting this phase of the
project into four distinct construction contracts.
Staff confirmed with the Contractor's State License Board that contractors have active licenses
on file. Staff checked references supplied by the contractors for previous work performed and
found no significant complaints. Certifications of Nondiscrimination are provided in
Attachment G.
RESOURCE IMPACT
The Civic Center Infrastructure Upgrades Project has had a cumulative appropriation of
$7,494,000 since fiscal year 2000-01. A significant amount of this appropriation paid for the
complete building study in 2002-03, elevator upgrade, design services in 2005, and construction
management awarded in March 2008. The remaining balance of the appropriation of $2,546,662
is not sufficient to pay the costs for this phase of the project. An additional appropriation of
$3,436,713 is needed to fund this phase, which includes mechanical, electrical, accessibility, and
fire/life safety work and other related costs. The proposed funding request for this project will
bring the total appropriation to $10,930,713. Details of the costs are as follows:
Description Amount
Nexgen Builders, Inc. – for general interior/exterior
work items and finishes*
$ 548,800
ACCO Engineered Systems, Inc.- for mechanical and
controls*
$2,871,275
ACCO Engineered Systems, Inc. – for plumbing, fire
sprinklers and fuel oil system*
$1,575,800
Rosendin Electric - for electrical and fire alarm* $ 537,500
Green building consultant $ 200,000
Testing services $ 75,000
Hazardous materials removal $ 125,000
Other miscellaneous expenses $ 50,000
Total Estimated Costs $5,983,375
Existing appropriation balance $2,546,662
Additional appropriation needed $3,436,713
*contract amount includes 10% contingency
The Capital Project Fund Infrastructure Reserve (IR) will provide the necessary funding. A
Budget Amendment Ordinance (Attachment A) in the amount of $3,436,713 is needed to
increase the appropriation to CIP Project PF-01002 (Civic Center Infrastructure Upgrades). The
Capital Project Fund IR has a projected balance of $8,157,287 after funding this Project.
It must be noted that Phase 2 and Phase 3 of the Project discussed in the “Background” section of
this report will require additional funding resources in the future as proposed in the 2008-13 CIP.
The timing for the completion of these phases is dependent on the availability of funding from
the IR.
CMR:334:08 Page 7 of 7
Given the cost of the project and the low balance of the Infrastructure Reserve, an alternate
funding source was considered to supplement the project cost. Staff worked with the California
Energy Commission (CEC) to determine if their loan program would be of benefit to the City.
After review of the project by the CEC, it was determined that the work allowed under their
program would be a small portion of the project. Acceptance of the loan would have triggered a
requirement for prevailing wage, thereby significantly diminishing any gain from the loan
program. Therefore, the CEC loan was not pursued.
POLICY IMPLICATIONS
This recommendation does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act (CEQA) under
Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility, and no
further environmental review is necessary.
ATTACHMENTS
Attachment A: Budget Amendment Ordinance
Attachment B: Contract for General Interior/Exterior Work Items and Finishes
Attachment C: Contract for Mechanical and Controls
Attachment D: Contract for Plumbing, Fire Sprinklers and Fuel Oil System
Attachment E: Contract for Electrical and Fire Alarm
Attachment F: Building Infrastructure Study, dated September 5, 2003
Attachment G: Bid Summary
Attachment H: Certifications of Nondiscrimination (4)
Copies of the attachments to this CMR:334:08 may be viewed on-line at
http://www.cityofpaloalto.org/knowzone/agendas/council.asp; at the Public Works Department
counter located at 250 Hamilton Avenue, 6th Floor, Palo Alto or by contacting Karen Smith at
650-496-6973.
PREPARED BY: _____________________________________
KAREN SMITH
Manager, Facilities Maintenance and Projects
DEPARTMENT HEAD: _____________________________________
GLENN ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: _____________________________________
KELLY MORARIU and STEVE EMSLIE
Deputy City Managers
CMR:332:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: AUGUST 4, 2008 CMR: 332:08
SUBJECT: APPROVAL OF A CONTRACT WITH GRANITE ROCK COMPANY
DBA PAVEX CONSTRUCTION DIVISION IN THE AMOUNT OF
$798,255 FOR THE MUNICIPAL SERVICES CENTER RESURFACING
PROJECT - CAPITAL IMPROVEMENT PROGRAM PROJECT PE-08005
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or his designee to execute the attached contract
in the amount of $798,255 with Granite Rock Company DBA Pavex Construction
Division (Attachment A) for the Municipal Services Center Resurfacing Project -
Capital Improvement Project PE-08005; and
2. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with Granite Rock Company DBA Pavex Construction Division
for related, additional but unforeseen work that may develop during the project, the total
value of which shall not exceed $79,825.
BACKGROUND
The Municipal Services Center (MSC), constructed in 1965, functions as the operational
headquarters for the Public Works and Utilities departments. The MSC houses all in-house
construction crews and equipment, the maintenance facility for the City’s fleet, a fueling station,
and the City’s supply warehouse. Due to the continuous heavy equipment travel on a daily basis,
the MSC pavement has aged and failed, especially along the main travel ways, and has never
been resurfaced. Several minor repairs have occurred over the years using in-house resources to
keep the pavement operational. Extensive repairs of the failed areas are now necessary.
DISCUSSION
Scope of Work
Staff has divided the MSC yard into five (5) segments (A through E) to assure full access to the
yard during construction. The base bid consists of Segments A, B, C, and E and includes
repairing all of the pavement failures and replacing the existing surface with new asphalt
concrete in phases over the duration of the project. The pavement failure areas will be removed
down to six (6) inches in depth and the road base will be re-compacted and repaved with three
(3) inches of asphalt concrete. Then the remaining pavement in Segments A, B, C, and E will be
CMR:332:08 Page 2 of 3
ground down three (3) inches and re-surfaced with three (3) inches of new asphalt concrete.
Segment D, Add Alternate No. 1, will include all work as described in the base bid.
Project Coordination
Staff coordinated the MSC Resurfacing Project with representatives of all parties (departments)
that will be affected by this project. The equipment and storage containers will be temporarily
relocated as necessary by City crews. The Contractor is required to complete the work on each
segment before starting work on another. Public Works Operations will install new striping in
each segment as the work progresses and City crews will return the equipment and storage
containers to the newly paved segments.
Bid Process
A notice inviting formal bids for the MSC Resurfacing Project was posted at City Hall on
June 17, 2008 and sent to 10 builders' exchanges and 12 potential bidders. The bidding period
was 21 days. Bids were received from eight (8) qualified contractors on July 8, 2008 as listed on
the attached bid summary (Attachment B). Bids ranged from a total low bid of $798,255 to a
high of $1,029,173.
The low bid is 31 percent under the engineer’s estimate of $1,150,685. The engineer’s estimate
was based on a standard rate of 3% to 5% inflation increase in costs received on prior street
maintenance project.
Summary of Bid Process
Bid Name/Number Municipal Services Center Resurfacing Project / IFB
#127106
Proposed Length of Project 45 calendar days
Number of Bids Mailed to
Contractors
12
Number of Bids Mailed to Builder’s
Exchanges
11
Total Days to Respond to Bid 21
Pre-Bid Meeting? No
Number of Company Attendees at
Pre-Bid Meeting
N/A
Number of Bids Received: 8
Bid Price Range (including add
alternate 1)
Low bid $798,255 to a high of $1,029,173
The Certification of Nondiscrimination is Attachment C.
Staff recommends that the base bid and add alternate number 1 in the total amount of $798,255
submitted by Granite Rock Company DBA Pavex Construction Division be accepted and that
Granite Rock Company DBA Pavex Construction Division be declared the lowest responsible
bidder. The change order amount of $79,825 (which equals 10% of the total contract) is
requested to resolve unforeseen problems and/or conflicts that may arise during the construction
period. Staff checked references supplied by the contractor for previous work performed and
CMR:332:08 Page 3 of 3
found no significant complaints. Staff also checked with the Contractor's State License Board
and found that the contractor has an active license on file.
RESOURCE IMPACT
Due to the size of this project, City staffing levels are not adequate to accomplish the
construction work in-house. In addition, the City does not own the type of equipment required to
perform this work and staff believes that it is cost effective to have the work performed by
outside contractors.
Funds for this project are available in the Municipal Service Center Resurfacing Project PE-
08005. This CIP was funded based on area of occupancy by City departments and was funded
by the General Fund and Enterprise Funds (Water, Gas, Wastewater and Electric).
POLICY IMPLICATIONS
This recommendation does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
This project has been determined to be categorically exempt from review under the California
Environmental Quality Act (CEQA) as repair and maintenance of existing streets and similar
facilities pursuant to CEQA Guidelines, Section 15301 (c).
ATTACHMENTS
Attachment A: Contract
Attachment B: Bid Summary
Attachment C: Certification of Nondiscrimination
PREPARED BY: ________________________________
ELIZABETH AMES
Senior Engineer
DEPARTMENT HEAD: ________________________________
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: ________________________________
STEVE EMSLIE/KELLY MORARIU
Deputy City Managers
CMR:322:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: AUGUST 4, 2008 CMR: 322:08
SUBJECT: APPROVAL OF A REFUSE ENTERPRISE FUND CONTRACT WITH
SHAW ENVIRONMENTAL IN THE AMOUNT OF $401,350 TO REPAIR,
REPLACE AND UPGRADE THE LANDFILL GAS AND LEACHATE
COLLECTION SYSTEM WITHIN BYXBEE PARK/PALO ALTO
LANDFILL, CAPITAL IMPROVEMENT PROGRAM PROJECT RF-
09002
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or designee to execute the attached contract
with Shaw Environmental in the amount of $401,350 to repair, replace and upgrade the
landfill gas and leachate collection system pursuant to CIP RF-09002.
2. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with Shaw Environmental for related, additional but unforeseen
work which may develop during the project, the total value of which shall not exceed
$40,135.
DISCUSSION
Project Description
Work to be performed under this contract includes repair, replacement and upgrade to the landfill
gas and leachate collection and removal system within Byxbee Park, a 29 acre section of the Palo
Alto Landfill that was closed in 1990. The gas and leachate collection systems have been
experiencing significant problems over the last few years due to settlement and age-deterioration.
That has inhibited collection and removal of gas and leachate from the landfill within Byxbee
Park. Settlement of the buried PVC gas piping in several areas has allowed gas condensate to
collect in low areas of the piping, causing restrictions and preventing optimal vacuum on the gas
collection wells. In addition, older PVC gas piping has cracked (due to settlement) causing leaks
and high oxygen content in wells potentially causing the gas wells to be out of regulatory
compliance. Scaling (the build up of solids inside the piping) has blocked and inhibited the
extraction and flow of leachate, making it difficult to remove leachate from the landfill within
the Byxbee Park area.
Replacing the PVC gas piping with welded HDPE piping will allow the City to stay in
compliance with the Bay Area Air Quality Management District regulations regarding oxygen
CMR:322:08 Page 2 of 3
concentrations and methane surface emissions as well as to continue to provide the Palo Alto
Regional Water Quality Control Plant (RWQCP) with a beneficial supply of landfill gas to help
run its sludge incinerators. New HDPE leachate piping is necessary to alleviate blockage caused
by scaling and to prevent potential leachate leaks in the aged piping (that could result in
regulatory violations). The larger size piping will also help minimize the blockages caused by
scaling.
Generally, work under this contract includes:
• Replacement of all buried LFG PVC piping with HDPE piping;
• Replacement of all buried HDPE undersized piping with large HDPE piping;
• Replacement of six deteriorated gas wells (out of 18 total wells within Byxbee park);
• Replacement of four gas condensate traps and tying them into the leachate extraction
system to meet newer regulatory requirements;
• Installation of two new piezometer wells that will help measure the buildup of leachate
within the landfill; and
• The proper abandonment of all replaced wells, gas condensate traps and other
components.
Full operation of the gas collection system is required by Air District Regulations during the
construction work.
Summary of Bid Process
Bid Name/Number Environmental Control Systems Upgrades – Byxbee
Park/Palo Alto Landfill/IFB Number 127060
Proposed Length of Project 94 days
Number of Bids Mailed to
Contractors
5
Number of Bids Mailed to Builder’s
Exchanges
10
Total Days to Respond to Bid 28
Pre-Bid Meeting? Yes
Number of Company Attendees at
Pre-Bid Meeting
6
Number of Bids Received: 3
Bid Price Range From a low of $401,350 to a high of $488,625
*Bid summary provided in Attachment B.
Staff has reviewed all bids submitted and recommends that the bid of $401,350 submitted by
Shaw Environmental be accepted and that Shaw Environmental be declared the lowest
responsible bidder. The bid is 16 percent below the engineer's estimate of $476,625. The
change order amount of $40,135 which equals 10 percent of the total contract is requested
because of additional or unforeseen work associated with the environmental control systems
upgrades.
Staff confirmed with the Contractor's State License Board that the contractor has an active
license on file. Staff checked references supplied by the contractor for previous work performed
and found no significant complaints.
CMR:322:08 Page 3 of 3
RESOURCE IMPACT
Funds for this project have been appropriated under the FY 2008-2009 Refuse Enterprise Fund.
POLICY IMPLICATIONS
Recommendations of this staff report are consistent with existing City policies.
ENVIRONMENTAL REVIEW
The proposed upgrade and replacement modifications are Categorically Exempt from California
Environmental Quality Act (CEQA) under Section 15301, Class 1 exemptions covering the
replacement and repair of existing facilities.
ATTACHMENTS
Attachment A: Contract
Attachment B: Bid Summary
Attachment C: Certificate of Nondiscrimination
PREPARED BY: __________________________________
CHUCK MUIR
Environmental Specialist
DEPARTMENT HEAD: __________________________________
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: ______________________________________
KELLY MORARIU and STEVE EMSLIE
Deputy City Managers
CMR:330:08 Page 1 of 4
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: AUGUST 4, 2008 CMR: 330:08
SUBJECT: APPROVAL OF A CONTRACT WITH GROUP 4 ARCHITECTURE
RESEARCH + PLANNING, INC. IN THE TOTAL AMOUNT NOT TO
EXCEED $195,400 FOR FORMER LOS ALTOS TREATMENT PLANT
FEASIBILITY STUDY (INCLUDING SPACE NEEDS AND SITING FOR
A NEW ANIMAL SERVICES AND RECYCLE CENTER) CAPITAL
IMPROVEMENT PROGRAM PROJECT PE-09004
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to
execute the attached contract (Attachment A) with Group 4 Architecture Research + Planning,
Inc., in the total amount of $195,400 for the former Los Altos Treatment Plant Feasibility Study.
BACKGROUND
On November 13, 2007, Council approved an agreement with the City of Los Altos (CLA) that
provided for the purchase of the CLA’s one-half interest in a 13.26 acre site at 1237 North San
Antonio Road, commonly known as the Los Altos Treatment Plant (LATP) site. Following the
January 2008 close of escrow on the purchase of the site, staff has worked with the CLA and the
Santa Clara County Local Agency Formation Commission (LAFCO) to complete the annexation
process so that the site will fall within Palo Alto city limits (CMR:409:07).
Staff had been exploring a streamlined procedure for annexing the property, but it now appears
that LAFCO will be the lead agency and that the process will take approximately 6 months.
The LATP site is divided into three areas. The northernmost piece, Area A (4.0 acres), is
undeveloped and currently consists of non-native grasslands on top of fill material and brackish
marsh along the perimeter of a remnant slough channel, separated from Area B by a levee.
Area B (6.64 acres) is the site of the former LATP, which contains a vacant industrial facility,
non-native grassland and six abandoned treatment ponds. Area C (2.62 acres) is adjacent to the
Los Altos metering and lift station and is primarily undeveloped, mostly non-native grassland.
DISCUSSION
With the closing of Palo Alto’s landfill and the recycling center in 2011 and with the potential
relocation of an automobile dealership to the existing Animal Services Center (ASC) at 3281
East Bayshore Road, there is a need to identify new locations for these and other uses. The
Utility Department also uses the front portion of the ASC to store construction material which
would also need to be relocated. Staff from various departments began meeting in April 2008 to
CMR:330:08 Page 2 of 4
discuss the current status of the LAFCO process, environmental review needs and to identify
other potential sites for a future recycling center, ASC and other uses.
Three sites and various uses were identified as meriting inclusion in a LATP Feasibility Study,
which is proposed as a Capital Improvement Program (CIP) Project for Fiscal Year (FY) 2008-
2009. The sites are the LATP; a non-parkland area adjacent to and on the west side of the
Regional Water Quality Control Plant (RWQCP); and the current Palo Alto Sanitation Company
(PASCO) office on Geng Road. The third site, would only be available however, if it is not
needed by a future refuse contractor. The selection of the next refuse contractor is currently
underway.
The uses that would be considered for one or more of these sites are:
• Household Hazardous Waste Facility (HHWF). The HHWF involves the collection,
packaging and short-term storage of household wastes such as paints, pesticides,
motor oil, etc. Presently, a temporary HHWF is operated one day a month in the
guest parking lot of the RWQCP.
• Recycling Center. The space currently occupied by the Recycling Center will be
filled with debris as part of the landfill closure and will need to be relocated.
• Animal Services Center (ASC). The ASC may need to be relocated from its current
site in order that an expanded automobile dealership could be built on the current East
Bayshore Road site. The Utility Department uses the area in front of the ASC for
storage of construction materials and equipment.
• Drying Bins. Drying bins are areas where wet spoils from storm drains or other
maintenance work are deposited until they have dried and can be put into the landfill
(or, in the future, put into a transfer station to await transport to the Sunnyvale
Materials Recovery and Transfer (SMaRT®) Station). Drying bins are currently
located in an area south of the RWQCP that will revert to parkland as part of Byxbee
Park.
• Transfer Stations. Transfer stations are bins where construction debris left over from
daily maintenance activities can be deposited until there is enough of a load to
warrant hauling it to the SMaRT® Station. This debris is currently taken to the Palo
Alto landfill.
• Utility Department Staging Yard. Area C of the LATP site is currently used for
equipment and material storage by the Utility Department. This use may need to be
relocated to other areas of the LATP, space permitting.
• Resource Recovery Station (RRS). As part of the City’s goal of zero waste, a RRS
will be evaluated for placement at one of the potential sites. The RRS is envisioned
as an area where useable construction materials (sinks, doors, lumber, etc.) can be
salvaged from a construction or demolition site and offered for re-use. There is
currently no funding identified for the construction of a facility of this type, nor an
operating policy. The objective of the LATP Feasibility Study is to identify whether
it would be feasible to locate an RRS on the LATP or other site, and if so, to identify
a proposed location, size and approximate construction cost.
CMR:330:08 Page 3 of 4
The contract with Group 4 Architecture Research + Planning, Inc. is for study purposes only and
does not constitute a design contract. The study will balance the various space needs against the
available sites and develop a conceptual site plan showing the possible layout and circulation
patterns for the various uses. This feasibility study together with a further environmental
assessment can then be used by Council to make further decisions regarding appropriate site
uses. Once the uses are approved by Council, detailed design of the various facilities could
commence.
An environmental risk assessment and remediation plan for the former LATP site will be
provided for under a separate agreement with Geosyntec Consultants (CMR:313:08). Previous
studies have revealed relatively minor levels of contamination at the site and cleanup of the site
is required whether or not any development occurs. This remediation plan will include removal
of all existing structures on the site; dewatering and disposal of contaminated water within the
sludge ponds; removal or capping of contaminated soils and soil backfill, sampling and testing
before any new facilities can be located at the site. Any facilities or uses at the former LATP site
will be coordinated so that they do not impact the wetlands area in Area A. In addition, certain
portions of Area B may require approvals from the U.S. Army Corps of Engineers and the State
before site development.
Summary of Solicitation Process
Proposal Description/Number Former Los Altos Treatment Plant Site Feasibility Study
(RFP #127358)
Proposed Length of Project 3 months
Number of Proposals Mailed 7
Total Days to Respond to Proposal 26
Pre-Proposal Meeting? Yes
Number of Companies at Pre-
Proposal Meeting
7
Number of Proposals Received:
1.Group 4 Architecture Research
+ Planning, Inc.
2.Kappe + Du Architects
3.Patri Merker Architects
4.Gutierrez/Associates Architects
4
So.SanFrancisco, CA
San Rafael, CA
San Francisco, CA
Oakland, CA
Range of Proposal Amounts
Submitted
$177,454 to $308,528
An evaluation committee consisting of staff members from the Public Works Operations and
Public Works Engineering reviewed the proposals. The evaluation committee unanimously
selected Group 4 Architecture Research + Planning, Inc. as the top proposer. Group 4
Architecture Research + Planning, Inc. is a large, local design firm with strong experience with
the design of municipal facilities, including storage facilities and animal shelters. They are also
experienced in the design of green buildings.
CMR:330:08 Page 4 of 4
RESOURCE IMPACT
The total contract amount for this study is $195,400. Funding for the Animal Services Center
portion of this study in the amount of $100,000 has been budgeted in Capital Improvement
Program (CIP) Project PE-09004 for fiscal year 2008-2009. Since the project will also address
the needs of the Public Works Operations Division and the Utility Department, $47,700 of the
remaining cost will be paid through CIP RF-07001 (relocation of landfill facilities) and $47,700
through RF-10003 (Drying Beds, Material Storage and Transfer Area).
POLICY IMPLICATIONS
Approval of the contract is consistent with City policies and previous Council direction.
ENVIRONMENTAL REVIEW
This is a planning and feasibility study and therefore not a project subject to environmental
review under Section 15262 of the California Environmental Quality Act (CEQA) Guidelines.
Environmental review will be conducted in connection with the Council’s final approval of uses
at the site.
ATTACHMENTS
Attachment A: Contract
PREPARED BY: __________________________________
KAREN BENGARD
Senior Engineer
DEPARTMENT HEAD: __________________________________
GLENN ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: __________________________________
STEVE EMSLIE/KELLY MORARIU
Deputy City Managers
CMR:336:08 Page 1 of 4
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE: AUGUST 4, 2008 CMR: 336:08
SUBJECT: ADOPTION OF BUDGET AMENDMENT ORDINANCE FOR FISCAL
YEAR 2008-09 TO PROVIDE AN ADDITIONAL FIBER OPTICS FUND
APPROPRIATION OF $300,000 FOR LEGAL AND TECHNICAL
CONSULTANTS TO SUPPORT THE ULTRA-HIGH-SPEED
BROADBAND SYSTEM NEGOTIATIONS; AUTHORIZATION TO
CONTRACT FOR LEGAL SERVICES WITH THE LAW FIRM OF
DAVIS WRIGHT TREMAINE LLP IN THE AMOUNT OF $100,000 AND
AUTHORIZATION TO CONTRACT WITH THE LAW FIRM OF
SPIEGEL & MCDIARMID, LLP IN THE AMOUNT OF $50,000
RECOMMENDATION
Staff recommends that the Council:
1) Adopt the attached Budget Amendment Ordinance (“BAO”) for Fiscal Year 2008-09 in the
amount of $300,000 to provide an additional Fiber Optics Fund appropriation for legal and
telecommunications consultants to support the Ultra-High-Speed Broadband System
negotiations.
2) Authorize entering into a contract for legal services with the law firm of Spiegel &
McDiarmid, LLP in an amount not to exceed $50,000 for services related to Fiber to the
Premises negotiations.
3) Authorize entering into a contract for legal services with the law firm of Davis Wright
Tremaine LLP in an amount not to exceed $100,000 for services related to Fiber to the
Premises negotiations.
BACKGROUND
On July 14, 2008, staff presented the 180 Consortium’s conceptual business plan for a fiber to
the premises network in Palo Alto to the City Council. Based on its business model, the 180
Consortium concluded that there is a sound business case for building an Ultra-High-Speed
Broadband System in the City. The Council directed staff to expedite negotiations with the 180
Consortium by entering into a Letter of Intent (“LOI”) by September 2008 that would lead to the
execution of appropriate contracts, and thereby enable the timely construction and operation of a
citywide, open-access fiber to the premises network as envisioned in the City’s RFP. The
CMR:336:08 Page 2 of 4
Council also directed staff to return on August 4, 2008 with a request for funds necessary to
provide the legal and technical expertise needed for expedited negotiations.
DISCUSSION
In accordance with Council direction, staff will negotiate the key terms and conditions of one or
more contracts that will be embodied in a LOI with the 180 Consortium by September 2008.
Following the Council’s approval of the LOI, it is anticipated that the parties would negotiate
and execute final agreements by October 2008. Staff is proposing that Council approve a BAO
in the amount of $300,000 to provide for the legal and technical telecommunications expertise
necessary to negotiate the LOI and final contracts in an expedited manner.
Staff intends to retain experienced telecommunications legal counsel Tim Lay with the law firm
of Spiegel & McDiarmid (in an amount not to exceed $50,000), and Suzanne Toller, with the law
firm of Davis Wright Tremaine LLP (in an amount not to exceed $100,000), to support contract
negotiations with the 180 Consortium.
Tim Lay is a law partner with Washington, DC-based Spiegel & McDiarmid. He specializes in
representing local governments across the nation in telecommunications, cable television,
franchising, municipal broadband, rights-of-way, tax, property, antitrust and constitutional law
and other federal law matters. He presently represents the Kentucky Municipal Utilities
Association on municipal broadband matters. Mr. Lay graduated from the University of
Tennessee with highest honors; after he graduated magna cum laude from the University of
Michigan Law School, he clerked for the Hon. John Godbold, Chief Judge of the U.S. Court of
Appeals for the Fifth Circuit.
Suzanne Toller is a law partner with San Francisco-based Davis Wright Tremaine LLP and is
also the chair of the firm’s Telecommunications Practice group. She represents communications
clients before the Federal Communications Commission and state Public Utility Commissions on
a broad range of regulatory and legal matters, and develops public policy positions and
legislative strategy on telecommunications issues. She also represents clients in local permitting
actions, transactional matters and in civil litigation, including wireless cell site construction and
breach of contract matters. Ms. Toller graduated from the University of California, San Diego
and the Harvard Law School. Ms. Toller’s regular rate is $470 per hour. We were able to
negotiate a discounted rate (less 8%) of $432 per hour.
In addition, staff will utilize Columbia Telecommunications Corporation (CTC), a
telecommunications engineering firm based in Kensington, Maryland (in the amount of
approximately $25,000). CTC has extensive experience assisting public sector clients
nationwide with community broadband networking, including assessing broadband technical
requirements, network planning and deployment. In the past, CTC has provided technical
consulting services to the City on the development and construction of the Joint Powers’
Institutional Network and the Comcast cable system upgrade.
Staff also will hire a consultant to undertake a Fiber Optics Fund Rate Study for the purpose of
establishing a new bulk fiber rate (in the amount of approximately $25,000) and potentially a
consultant to expedite the work needed for compliance with the requirements of the California
CMR:336:08 Page 3 of 4
Environmental Quality Act (in the amount of approximately $25,000). The remaining funds of
$75,000 will enable staff to obtain additional consulting assistance on an “as-needed” basis to
facilitate expedited LOI and contract negotiations. This level of budgetary authorization
available will avoid delays should staff find additional consulting resources are needed to fast-
track negotiations.
RESOURCE IMPACT
A BAO is necessary to transfer $300,000 from the Fiber Optics Fund Rate Stabilization Reserve
to the Fiber Optics Fund operating budget. The BAO will reduce the Fiber Optics Fund Rate
Stabilization Reserve from $ 3.098 million to $ 2.798 million.
The negotiation of the LOI and final agreements will also require the continued devotion of
significant staff time from the City Attorney’s Office, the Administrative Services Department,
and the Utilities Department and, to a lesser extent time-wise, the Public Works Department and
the Planning and Community Environment Department. Staff plans to return to Council at mid-
year with a BAO to transfer this salary and benefit cost from the General Fund and the Electric
Fund to the Fiber Optics Fund.
POLICY IMPLICATIONS
This report is consistent with Council direction.
EVIRONMENTAL IMPACT
The actions covered by this report do not require review under the California Environmental
Quality Act.
ATTACHMENT
Attachment A: BAO
CMR:336:08 Page 4 of 4
PREPARED BY:
JOSEPH SACCIO
Deputy Director, Administrative Services
DEPARTMENT HEAD APPROVAL:
LALO PEREZ
Director, Administrative Services
CITY MANAGER APPROVAL:
KELLY MORARIU and STEVE EMSLIE
Interim Deputy City Manager
CMR: 312:08 Page 1 of 5
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE: AUGUST 4, 2008 CMR: 312:08
SUBJECT: APPROVAL OF A LOAN AGREEMENT AND A REGULATORY
AGREEMENT WITH FABIAN WAY ASSOCIATES, L. P. TO PROVIDE A
DEVELOPMENT LOAN OF RESIDENTIAL HOUSING FUNDS IN THE
AMOUNT OF $600,000 FOR A VERY LOW INCOME 56-UNIT SENIOR
RENTAL HOUSING PROJECT AT 3895 FABIAN WAY
RECOMMENDATION
Staff recommends that the City Council:
1. Approve the attached Loan Agreement for Fabian Way Senior Housing (Loan Agreement), with
its attached form of promissory note and deed of trust, which authorizes a residual receipts loan
of $600,000 for development costs; and
2. Approve the attached Regulatory Agreement and Declaration of Restrictive Covenants for
Fabian Way Senior Housing (Regulatory Agreement) regulating the use and occupancy of the
Fabian Way senior housing project; and
3. Authorize the City Manager or designee to execute the Loan Agreement and the Regulatory
Agreement in substantially identical form; and
4. Authorize the City Manager or designee to execute all other documents required to implement
the Agreements, including escrow instructions and to approve all necessary subordination
agreements and direct the City Manager or designee to administer the provisions of the
Agreements.
BACKGROUND
The planning entitlements for the Fabian Way senior affordable rental housing project were
approved by the City as part of the private redevelopment of the 12 acres known as 901 San Antonio
CMR: 312:08 Page 2 of 5
Road. The other projects, which are currently under construction, are: the adjoining 103-unit
“Altaire” for-sale townhouses and the Campus for Jewish Life, which includes the 193-unit 899 East
Charleston Road senior congregate care project.
BRIDGE Housing Corporation, an experienced non-profit developer and manager of affordable
housing with numerous projects throughout the Bay Area, is the sponsor and developer for the
Fabian Way rental housing, which will provide 56-units of very low-income, rental apartments for
seniors, including 20 units for extremely low-income, frail elderly with supportive services. Except
for the resident manager’s unit, all of the apartments will be one-bedroom units with parking
provided under easement agreements in the adjoining townhouse project’s garage. On June 2,
Council adopted a resolution (CMR: 260:08) authorizing the issuance of tax-exempt bonds by the
California Municipal Finance Authority (CMFA), which will be used to fund a construction period
loan. BRIDGE expects to begin construction this fall or later in the year and to achieve full
occupancy by the summer of 2010.
DISCUSSION
In order to meet housing needs for seniors with extremely low incomes, BRIDGE needed to secure
deferred loans and equity funds for the entire estimated $22.3 million in project development costs.
BRIDGE applied in two different rounds for HUD 202 funding, but was unsuccessful as the 202
program is extremely competitive. Last August, BRIDGE applied for the State’s Multifamily
Housing Program (MHP) funding and received a commitment of $5.25 million in January. Other
major sources of funding which have been committed include: a projected $5.8 million in equity
from the sale of low income housing tax credits to a limited partner; a $1.5 million deferred loan
from the County of Santa Clara County’s Office of Affordable Housing; and construction period
funding from the Sobrato Fund, the Housing Trust of Santa Clara County and the CMFA bond loan
mentioned above.
The largest single source of funds for this project is the $7.3 million in equity being contributed by
BUILD, the developer of the adjoining 103-unit townhome project. This payment was negotiated
in-lieu of the provision of the normally required 15 percent Below Market Rate (BMR) program
units. BUILD and BRIDGE proposed this alternative approach to satisfying the BMR Program
requirement and the BMR agreement was approved by Council on September 26, 2006 at the time
the planning entitlements were approved. Because BUILD’s BMR in-lieu payment had to be set
prior to its project approval, the City required preparation of an independent economic analysis to
determine the payment amount that would be equivalent to the provision of 16 for-sale BMR units
within the development. The economic analysis determined that $7.3 million was the equivalent of
16 for-sale BMR units in the BUILD project.
BRIDGE also requested a $600,000 development loan from the City to offset a portion of the costs
of the remaining forty units so that the entire project could serve very low-income seniors. These
funds were budgeted as part of the 2008-09 Council-adopted budget. The City loan will accrue
interest up to a maximum of three percent simple interest annually based on the amount of surplus
cash flow from the project’s operations. The State’s MHP regulations specify how any cash flow is
apportioned among the permanent lenders; therefore, other than rather minimal payments of interest,
regular repayment of the City loan is not anticipated, which is standard practice in local financing of
CMR: 312:08 Page 3 of 5
this type of deeply affordable rental housing. In addition, tax credit program rules limit the accrual
of substantial amounts of unpaid interest over time. As a result, the City loan terms specify that
interest will be paid each year up to the maximum three percent simple interest rate, to the extent
that there is sufficient cash flow; however, to the extent any year’s cash flow is insufficient to pay
three percent interest, the unpaid interest will effectively be forgiven and, thus, will not increase the
total amount due on the City loan. The total unpaid principal and interest on the City loan is due
concurrently with the 55-year term of the MHP loan.
Once the project is fully operational, the use and occupancy of the apartments will be controlled by
multiple regulatory agreements from the various funding sources, with the most restrictive being the
MHP program’s 55-year regulatory agreement and the City Regulatory Agreement. The City’s
Regulatory Agreement will be recorded with the Deed of Trust securing the City’s Promissory Note
as soon as possible after Council approval. As the other funding entities provide their financing to
the project, the City will need to subordinate its loans and Regulatory Agreement to the loans and
regulatory agreements of those entities. Staff is requesting that the City Manager or designee be
authorized by Council to review and approve each of these subordination agreements in consultation
with the City Attorneys office, at the appropriate time in order to avoid any delay in the progress of
construction or the closing of the permanent funding after completion.
Rents and Occupancy of the Apartments: In order to succeed in the competition for the State’s MHP
funding, BRIDGE needed to emphasize housing for extremely low-income, senior households and
to serve a substantial number of seniors with special needs. The rent categories and income limits
with current 2008 rents are shown below; actual rents may change somewhat by the time the project
is constructed and ready for occupancy due to changes in the County median income.
Fabian Way Senior Housing – Description of Units and Rental Structure
Occupancy Category &
Rent Formula1 Number of
Units
2008 Gross Rents
One-Bedrooms
2008 1-Person
Income Limits2
Extremely
Low Income 25% of AMI 20 units3 $497 $18,575
Extremely
Low Income 30% of AMI 11 units $597 $22,290
Very Low
Income 40% of AMI 24 units $796 $29,720
Total Restricted Units 55 Plus 1 Unit for a Resident Manager
Total Units 56
Notes:
1) AMI means the Area Median Income for Santa Clara County, which equals $105,500 for a
household of four persons as published on March 25, 2008. Initial rents and income limits are as
published by State HCD for 2008.
2) The income limits shown assume a one-person household in a one-bedroom unit.
CMR: 312:08 Page 4 of 5
3) Supportive Housing (SH) Units must be set aside for households that are extremely low
income (not over 25% of AMI) and eligible for the Multipurpose Senior Services Program
(MSSP). MSSP eligible seniors are frail elderly, 65 years or older, and currently eligible for
Medi-Cal. Supportive services must be provided to these residents.
RESOURCE IMPACT
The funds for the City’s $600,000 loan are budgeted in the Residential Housing Fund in the FY
2008-09 City Budget approved by Council on June 9, 2008. No General Fund monies are being
used for this housing project.
The financing package assembled by BRIDGE for development of the apartments is described
below (figures are rounded, and some figures are still estimates).
Permanent Sources of Funds for Development:
State Housing & Community Development – MHP Loan $5,250,000
Investor equity 4% - Low Income Housing Tax Credits (estimated) $5,801,000
General Partner Equity (Including the $7.3 million BUILD contribution) $7,500,000
Santa Clara County Office of Affordable Housing $1,500,000
(May seek additional funds from County if available, depending on the outcome
of the state tax credit application)
State of California Low Income Housing Tax Credits (estimated; application $1,500,000
Submitted on July 24, 2008)
City of Palo Alto: Residential Fund Loan $600,000
BRIDGE: Deferred Developer Fee $349,000
Total Project Funding $22,500,000
Total Funding per Unit (56 units): $401,786
POLICY IMPLICATIONS
The actions recommended in this report implement adopted City Housing Element policies and
programs supporting the development of very low and low income housing. These 56-units will be
counted towards the City’s housing production goals for the 2007 to 2014 Housing Element period.
ENVIRONMENTAL REVIEW
Council approval of this loan and the related financing and regulatory documents is not subject to
the California Environmental Quality Act. The development of the BRIDGE senior housing was
evaluated in a Final Environmental Impact Report (FEIR) certified by the City Council on
September 26, 2006; the FEIR covered all of the 901 San Antonio Road projects.
ATTACHMENTS
A. Loan Agreement for Fabian Way Senior Housing (Loan Agreement), with its attached form
of promissory note and deed of trust
B. Regulatory Agreement and Declaration of Restrictive Covenants for Fabian Way Senior
Housing
CMR: 312:08 Page 5 of 5
PREPARED BY: _________________________________________
CATHERINE SIEGEL, Advance Planning Manager
REVIEWED BY:
CURTIS WILLIAMS, Interim Director
Planning and Community Environment
CITY MANAGER APPROVAL:
KELLY MORARIU / STEVE EMSLIE
Deputy City Managers
cc: BRIDGE Housing Corporation
CMR: 310:08 Page 1 of 2
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE: JULY 21, 2007 CMR: 310:08
SUBJECT: APPROVAL OF A FINAL MAP TO CREATE SIX RESIDENTIAL
CONDOMINIUM UNITS ON A .57 ACRE LOT AT 433 W MEADOW
DRIVE [08PLN-00149]
RECOMMENDATION
Staff recommends that the City Council approve the proposed Final Map for 433 W Meadow
Drive to create six residential condominium units on an existing .57 acre residential lot.
BACKGROUND
On March 24, 2008, the City Council approved a Tentative Map to create six residential
condominium units on the .57 acre lot. The project includes the demolition of one existing
residential building and two sheds and the construction of six detached buildings, each
containing one condominium unit.
DISCUSSION
The purpose of the final map is to create the six condominium units. The Final Map and the
Record of Land Use Action for the Tentative Map have been provided for the Council’s
information. The Planning Department and the Public Works Department have reviewed the
Final Map and have determined that it is consistent with the approved Tentative Map
(Attachment A). According to the State Subdivision Map Act, the City Council must therefore
approve the Final Map.
The map satisfies all approval conditions for the Tentative Map, including the preparation of a
Subdivision Improvement Agreement and BMR Agreement.
RESOURCE IMPACT
There is no direct impact on City resources associated with the action recommended in this staff
report.
CMR: 310:08 Page 2 of 2
POLICY IMPLICATIONS
No changes in the Comprehensive Plan or Zoning Ordinance are required for this project. The
Final Map complies with the City’s policies set out in the Comprehensive Plan, Zoning
Ordinance Municipal Code, and the Subdivision Map Act.
ENVIRONMENTAL REVIEW
An Initial Study and a Mitigated Negative Declaration were prepared and approved in
conjunction with the Architectural Review of the 0.57 acre site. The Initial Study/Mitigated
Negative Declaration included the condominium map within the project description and analysis.
No further environmental review is required.
PREPARED BY: _____________________________________________
JENNIFER CUTLER
Associate Planner
DEPARTMENT HEAD: _____________________________________________
CURTIS WILLIAMS
Interim Director of Planning and Community Environment
CITY MANAGER APPROVAL: _____________________________________________
STEVE EMSLIE/KELLY MORARIU
Interim Deputy City Managers
ATTACHMENTS
A. Record of Land Use Action of Tentative Map Approval
B. Final Map (Council Members Only)
COURTESY COPIES:
Forrest Mozart, West Meadow Oaks, L.P., Applicant/Owner
CMR 296:08 Page 1 of 2
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: FIRE
DATE: AUGUST 4, 2008 CMR: 296:08
SUBJECT: PUBLIC HEARING TO CONFIRM WEED ABATEMENT
REPORT AND ADOPTION OF A RESOLUTION CONFIRMING
WEED ABATEMENT REPORT AND ORDERING COST OF
ABATEMENT TO BE A SPECIAL ASSESSMENT OF THE
RESPECTIVE PROPERTIES DESCRIBED THEREIN
RECOMMENDATION
Staff recommends Council hear and consider objections from affected property owners of
proposed assessments related to completed weed abatement work and adopt the attached
resolution confirming the report and ordering abatement costs to be a special assessment on the
properties specified in the report.
BACKGROUND
The Weed Abatement Division of Santa Clara County Agriculture and Environmental
Management administers the contract for weed abatement within the City of Palo Alto, in
accordance with an agreement between the City and County.
On December 10, 2007, in accordance with Chapter 8.08 of the Palo Alto Municipal Code, the
City Council declared weeds to be a nuisance and ordered that the nuisance be abated. A public
hearing was held on January 14, 2008, to consider objections to the proposed destruction or
removal of the weeds. No objections were noted. Once the above steps had been taken, the
County Weed Abatement Division instructed its contractor to abate weeds on City and private
properties within Palo Alto. That work has now been completed. Property owners were notified
the first week in December 2007 that weeds were to be abated by March 2, 2008, either by the
owners or by the County. If the property owners chose to have the County abate the weeds, the
abatement charges would be levied against the respective properties as an assessment by the
County Assessor. The County has since informed the property owners of the costs for destroying
and removing the weeds.
The Fire Department has published the required notice of this hearing in the Palo Alto Weekly.
The cost report by the County Weed Abatement Division has been posted on the Downtown
Library bulletin board for ten days prior to this hearing.
CMR 296:08 Page 2 of 2
DISCUSSION
Property owners may object to the charges for weed abatement being levied against their
properties. The charge consists of the contractor's cost plus 150 percent administrative charges,
in accordance with Palo Alto's contract with Santa Clara County (CMR 357:00, September 18,
2000).
A representative from the County Weed Abatement Division will be present at the public hearing
with the records of weed abatements that have taken place. Should there be any modifications in
the proposed assessments as a result of the hearing, changes in the assessment spread will be
made as necessary. After any recalculations are completed, and Council adopts the attached
resolution confirming the abatements and ordering those costs to be imposed as liens on the
abated properties, the assessments will be submitted to the County Assessor for entry on the next
tax roll upon which general City taxes are to be collected.
RESOURCE IMPACT
There is no direct fiscal impact of this action to the City.
POLICY IMPLICATIONS
This procedure is consistent with existing City policies.
ENVIRONMENTAL REVIEW
The Santa Clara County Counsel has determined the Weed Abatement Program to be
Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15308.
ATTACHMENTS
Resolution
2008 Weed Abatement Assessments by the County of Santa Clara
Prepared by: _______________________________
DAN FIRTH
Fire Marshal
Department Head Review: ___________________________
NICHOLAS MARINARO
Fire Chief
City Manager Approval:______________________________________
KELLY MORARIU/STEVE EMSLIE
Deputy City Managers
CMR:329:08 Page 1 of 8
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: AUGUST 4, 2008 CMR:329:08
SUBJECT: AUTHORIZE STAFF TO NEGOTIATE AN AGREEMENT WITH
GREENWASTE OF PALO ALTO TO PROVIDE SOLID WASTE,
RECYCLING AND ORGANICS SERVICES AND, IF NEGOTIATIONS
ARE NOT SATISFACTORY, AUTHORIZE STAFF TO
ALTERNATIVELY NEGOTIATE WITH NORCAL WASTE SYSTEMS
OF PALO ALTO
RECOMMENDATION
Staff recommends that Council authorize staff to negotiate an agreement with GreenWaste of
Palo Alto to provide solid waste, recycling and organics services and, if negotiations are not
satisfactory, authorize staff to alternatively negotiate with Norcal Waste Systems of Palo Alto
(Norcal).
BACKGROUND
The current agreement with PASCO to collect and transport solid waste and recyclables within
the City of Palo Alto will end on June 30, 2009. The procurement process for a new agreement
began in February 2008. The projected schedule for awarding a new contract is September 2008
with new services beginning July 1, 2009.
In July 2007, Council adopted a Code of Conduct relating to the procurement process for the
new waste hauling contract. Resolution 8734 (Attachment A) discourages Council members
from conducting non-public meetings or conversations with potential proposers and requires that
any such non-public meetings be disclosed within 30 days of the meeting. In accordance with
this adopted Council policy and in accordance with purchasing best practices, a series of public
meetings have been conducted to gather Council and community input on this significant
procurement.
At the Council meeting on December 17, 2007 (CMR:459:07, Attachment B), Council approved
a three step process for reviewing the solid waste hauling proposals: 1) selection of programs
based on the cost impacts and estimated diversion results without identifying the proposing
companies; 2) selection of the top proposer for negotiations; and 3) award of contract. This
report covers the second stage of this process.
At the Council meeting on June 23, 2008 (CMR:256:08), Council provided direction on the level
of services to be included in the new agreement based on initial estimated highest cost impacts
CMR:329:08 Page 2 of 8
and projected annual diversion of materials. Based on this direction, the new contract will
include the following services:
• Scenario 1: Baseline services;
• Scenario 2: Zero Waste Services including:
1) Expanding organics materials collection only to the commercial sector (food
waste collection and processing).
2) Expanding single stream materials only for items that have a sustainable
market.
3) Expanding Clean-Up Day collection for reuse and recycling.
4) Enhancing recycling (and organics) through mandatory participation.
Program elements of the mandatory participation program include:
• In the first year, commencing July 1, 2009, the contractor educates
customers on how to comply with mandatory participation and phase-in
schedule requirements;
• In the second year, commencing July 1, 2010, the contractor notifies
customers who fail to separate recyclable and compostable materials from
solid waste with a warning;
• In the third year, commencing July 1, 2011, the contractor assists the City
in enforcing fines or penalties if customers fail to separate recyclable and
compostable materials from solid waste.
5) Increasing construction and demolition diversion (C&D) (a minimum of 70
percent of the materials recovered from each mixed C&D debris load for reuse
and/or recycling and a minimum of 90 percent from each source separated
C&D load).
6) Enhancing commercial recycling (providing recycling to all businesses).
• Scenario 3: Innovative Service:
1) A 10% C&D discount coupon at a local processing facility for self haulers.
DISCUSSION
Request for Proposal Process
Potential service providers were notified of the Request for Proposals (RFP) process starting in
September 2007 through direct letters and electronic mail and were informed to register with
DemandStar’s Online Procurement System (DemandStar) where multiple announcements about
the RFP and projected timeline were made. Staff also placed advertisements for the RFP in
MSW Management, a popular magazine for the municipal solid waste industry, on the website
for the California Resource Recovery Association (CRRA) and on the CRRA electronic list
serve. The RFP was released and posted on DemandStar on February 29, 2008. Below is a
summary of the solicitation.
CMR:329:08 Page 3 of 8
Summary of Solicitation
Proposal description/Number
Solicitation of proposals to provide solid waste,
recyclable, and organic materials services;
RFP124501-0-2007/GP
Proposed length
8 years with ability to be extended, unilaterally by
the City, in increments of one or more years for a
maximum term of 12 years.
Number of bids mailed
RFP was posted on DemandStar. A total of 25
businesses downloaded the RFP from
DemandStar including potential proposers,
consultants, material processors and other
interested organizations.
Total days to respond to proposal 44
Mandatory pre-proposal meeting Yes
Number of companies present at pre-
proposal meeting 8
Number of proposals received 2
Range of initial first year proposal totals
submitted
From $15,077,724 to $16,067,546 for total annual
compensation for the first year
On May 5, 2008, proposals were received from two qualified companies: GreenWaste of Palo
Alto (GreenWaste) and Norcal Waste Systems of Palo Alto (Norcal). Staff checked references
supplied by both companies for previous and current services performed in other municipalities
and found strong references for both GreenWaste and Norcal and no significant complaints for
either company.
Staff contacted all the potential proposers that were present at the proposal conference meeting
or that registered through DemandStar but did not bid on the RFP. The Palo Alto Sanitation
Company (PASCO), the current service provider, did not bid on the contract due to business
reasons of its parent company Waste Management. The remaining potential proposers did not
bid because of: 1) commitments with other RFPs; 2) the capital expenditure needed for the
City’s contract, such as providing an operations yard; and 3) the challenges regarding Zero
Waste implementation.
Proposer Comparisons
GreenWaste and Norcal are both qualified companies and provided competitive proposals.
GreenWaste is a joint venture partnership, privately owned, with headquarters in San Jose. The
partnership has 30 years of experience in the collection industry with current contracts in the
cities of San Jose, Petaluma, Portola Valley, Woodside; Santa Cruz County and South Bayside
Waste Management Authority. Norcal is a corporation with an employee stock ownership plan
with headquarters based in San Francisco. Norcal’s parent company was recently identified as
the nation’s 8th largest recycling and solid waste company and has collection agreements with 43
jurisdictions in Northern California, including San Francisco. Nine of these contracts are with
CMR:329:08 Page 4 of 8
Santa Clara County jurisdictions. Attachment C provides comparison details on the overview of
both companies and proposals including information on: financial strength; litigation; proposed
financing; subcontractors; staffing; facilities and key personnel.
Service Comparisons
GreenWaste and Norcal proposed different approaches to providing the baseline and Zero Waste
services outlined in the City’s RFP. Attachment C (starting on page 4) contains further
comparisons of each proposer in the following key service areas:
• Residential collection methods for solid waste, recycling, yard trimmings, and other
collection services including backyard collection and hard to serve areas;
• Commercial collection methods for solid waste, recycling, organics and food waste
collection from special events;
• Roll-off services;
• City facilities collection;
• Customer service, and
• Diversion and processing.
Proposer Compensation Comparisons
The contractor’s total compensation for the new agreement is structured in two parts. The first
part is a “base compensation” (including baseline and zero waste services) and the second part is
for “extra services” provided on a unit-price basis. The base compensation includes: all labor,
equipment, materials and supplies; cost of capital; payments to processers; payments to
subcontractors; taxes; insurance; bonds; overhead; profit; and all other things necessary to
perform the services required in the agreement. The extra service compensation based on a unit
price basis was created to minimize cost to the City for services that change or have the potential
to change frequently depending on modifications in service levels. The extra services include:
back/side yard solid waste collection from single family residences, collection in hard to service
areas, drop box services and cart purchases. The base compensation and unit pricing of the extra
services for the first two years of the agreement (FY 2009-10 and FY 2010-11) will be set per the
contractor’s proposal. In subsequent years, the base compensation and unit pricing in the extra
services will be adjusted annually, based on the application of specified indices produced by the
U.S. Department of Labor, Bureau of Labor Statistics. The summary chart contained in this
report shows total compensation comparisons. Further cost detail comparisons are shown in
Attachment D.
Best and Final Offer Process
In order to further lower costs and reduce the rate impact to customers, the Steering and
Advisory Committee decided to request a Best and Final Offer (BAFO) from the two proposers
following the June 23 Council meeting. The BAFO request provided the proposers with an
opportunity to further refine and clarify their proposed services and costs.
Below is a summary chart on the total compensation comparisons, including base compensation
(baseline and Zero Waste services) and extra services, based on HF&H Consultants’ analysis of
the two cost proposals (Attachment D).
CMR:329:08 Page 5 of 8
Total Compensation Comparison
GreenWaste Norcal
Variance
(GreenWaste –
Norcal)
FY 2009-10 $13,528,238 $14,802,599 ($1,274,361)
FY 2010-11 $13,664,508 $15,529,280 ($1,864,772)
Total 8-Year Contract Term $115,489,717 $131,815,753 ($16,326,035)
8-Year Term % Difference -14.1%
Total 12-year contract term $181,344,013 $208,166,021 ($26,822,008)
12-Year Term % Difference -14.8%
Evaluation of Proposals
The evaluation review of GreenWaste and Norcal’s proposals was conducted by three separate
committees: a Technical Advisory Committee, an Evaluation Committee, and a Steering &
Advisory Committee. The configuration of each evaluation committee is shown in
Attachment E. The Technical Advisory Committee consisted of departmental staff that reviewed
the proposals focusing on each individual’s specialized technical areas (e.g. Utilities customer
service billing) and provided this information through a summary report to the Evaluation
Committee. The Evaluation Committee consisted of nine evaluators (including Public Works
professionals from three neighboring cities) and was chartered to review and evaluate all
proposals and related materials in detail, interview proposers, score and rank proposals and
provide a recommendation to the Steering & Advisory Committee. The Steering & Advisory
Committee was an executive staff level governance committee with oversight of the project and
of the Evaluation Committee. HF&H Consultants and legal counsel Ray McDevitt from Hanson,
Bridgett, Marcus, Vlahos & Rudy provided technical and legal analysis of proposals to the
committees.
The evaluation scoring was based on the following criteria approved by Council in December
2007 (CMR:459:07) and identified in the RFP:
• Administrative, Financial, and Contractual (maximum 20 points), including such factors as:
1. Solid waste and diversion experience of firm and key staff, municipal agency
references, and regulatory record.
2. Financial ability to perform its obligations under the Agreement including securing
facilities and equipment.
3. The number and significance of exceptions to the draft Agreement.
• Technical and Environmental (maximum 40 points), including such factors as:
1. Reasonableness of transition and operational plan; effectiveness of collection and
processing services and facilities (including marketing of materials); and,
effectiveness of public outreach, education and customer services programs.
2. Adverse environmental impact (including air and traffic) of operations, vehicles and
facilities (including miles traveled and emissions); and, beneficial impacts (diversion
and highest and best use of materials).
CMR:329:08 Page 6 of 8
• Cost (maximum 40 points), including such factors as:
1. Reasonableness and predictability of future costs;
2. Relative competitiveness of costs;
3. Cost effectiveness; and
4. Total cost.
The collective evaluation scores by the Evaluation Committee for both GreenWaste and Norcal’s
proposals are summarized in the following table:
Evaluation Aggregated Final Scores
Evaluation Criteria
Category
Maximum
Score Possible
(9 evaluators)
GreenWaste Norcal
Administrative, Financial,
and Contractual 180 129 161
Technical and Environmental 360 291 274
Cost 360 301 251
Total Score 900 721 686
In summary, out of a total possible aggregate score of 900, GreenWaste received a total score of
721 and Norcal received a score of 686. Six out of the nine evaluators gave GreenWaste a
higher overall score whereas Norcal received the highest score from three of the evaluators.
GreenWaste received a higher score in “Technical and Environmental” and in the “Cost”
category of the evaluation criteria.
Justification for Staff Recommendation
Staff recommends selecting GreenWaste as the top proposer to negotiate a new agreement to
provide services because GreenWaste scored highest in the evaluation process, provided a
stronger operational proposal and is the lowest cost proposer.
GreenWaste’s key strengths include:
• GreenWaste’s costs are $16 million or 14 percent lower than Norcal’s over the 8-year
contract term.
• GreenWaste’s operational approach for single family residential solid waste collection is
preferable to Norcal’s. GreenWaste’s approach is similar to the current PASCO
methodology. GreenWaste will collect solid waste using a two person crew with a single
body semi-automated collection vehicle (versus Norcal’s one person per route with a split
body vehicle). This limits the effect of transition on current residential customers and
minimizes uncertainties associated with a new operational approach.
• The GreenWaste partners also own the processing sites for single stream recyclable
materials, organics and C&D. The processing sites are closer to Palo Alto than Norcal’s
proposed facilities thus reducing fuel costs and overall air emissions.
CMR:329:08 Page 7 of 8
• GreenWaste plans to reduce the number of vehicles collecting solid waste from the
commercial sector as recycling collection increases and becomes mandatory. This
reduces costs and air emissions over the contract term.
Next Steps
Staff plans to negotiate with GreenWaste the terms of a final contract within the parameters set
forth in this report and the maximum compensation projections set forth in CMR 256:08. Staff
will return to Council with a recommendation for approval and execution of the final agreement
in September 2008. New services are scheduled to begin July 1, 2009.
RESOURCE IMPACT
The detailed rate impact comparison conducted by HF&H between GreenWaste and Norcal’s
proposals can be found in Attachment D, Tables B and D. The negotiation phase of the process
has the potential to increase or decrease the proposed cost stated by the proposers, depending on
minor adjustments to service levels and related factors (i.e. use of existing equipment ). Staff
will remain committed to not exceed the maximum compensation parameters tentatively
authorized by Council on June 23, 2008 (CMR 256:08). The rate impact of the new baseline
services and Zero Waste programs based on the recommended GreenWaste proposal is projected
to be approximately 11.9 percent above FY 2008-09 rates, but could be slightly different
depending on the negotiations as discussed above.
SMaRT Station and Kirby Canyon Landfill Cost Offset
The implementation of the Zero Waste services will result in an estimated 21,535 tons of less
waste delivered to the SMaRT Station and to the Kirby Canyon Landfill in FY 2009-10 which
will result in avoided disposal cost and put-or-pay commitments of approximately $1,350,402.
This could reduce the rate impact to an estimated 7 percent annual (instead of the projected 11.9
percent), even after the penalty for not meeting the "put or pay" requirement at Kirby Canyon
Landfill. The following table summarizes the projected rate impact in the first year of the new
contract, FY 2009-10, based on the projected GreenWaste compensation.
Projected Total Rate Impact for
GreenWaste’s Compensation Proposal
FY 2009-10
Estimated rate impact based on total
compensation 11.9 %
Estimated rate net impact of avoided disposal
and put-or-pay commitments at SMaRT
Station/Kirby
(4.9%)
Total Projected Rate 7.0%
POLICY IMPLICATIONS
The recommendation is consistent with existing policies and previous Council direction.
CMR:329:08 Page 8 of 8
ENVIRONMENTAL REVIEW
In February 2008, the City retained HDR Consultants (HDR) to perform an environmental
assessment in connection with the final award of the new contract. HDR is in the process of
completing the environmental assessment which will be presented to the Council for approval in
September 2008 along with the final agreement.
ATTACHMENTS
Attachment A: Resolution 8734
Attachment B: CMR:459:07
Attachment C: Proposer & Service Comparison
Attachment D: HF&H Analysis on Proposals Cost Impacts
Attachment E: Structure of Evaluation Committees
Copies of the attachments to this CMR:329:08 may be viewed on-line at
http://www.cityofpaloalto.org/knowzone/agendas/council.asp; or at the Public Works
Department counter located at 250 Hamilton Avenue, 6th Floor, Palo Alto or by contacting Paula
Borges-Fujimoto at 650-496-5914.
PREPARED BY: ______________________________________
PAULA BORGES FUJIMOTO
Executive Assistant
DEPARTMENT HEAD: ______________________________________
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: ______________________________________
KELLY MORARIU and STEVE EMSLIE
Deputy City Managers