HomeMy WebLinkAbout2008-09-08 City Council Agenda Packet
1 09/08/08
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
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CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on the Friday preceding the meeting.
Regular Meeting
Council Chambers
September 08, 2008
7:00 PM
ROLL CALL
STUDY SESSION
1. Study Session on a 35-Unit Affordable Housing Project Located at 488
W. Charleston Road
CMR 358:08 Attachment Map
SPECIAL ORDERS OF THE DAY
2. Proclamation in Celebration of the 50th Anniversary of the Eichler Swim
and Tennis Club
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.
APPROVAL OF MINUTES
June 09, 2008
June 16, 2008
June 23, 2008
July 07, 2008
CONSENT CALENDAR
Items will be voted on in one motion unless removed from the calendar by two Council Members.
09/08/08 2
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
3. Approval of a Storm Drain Enterprise Fund Contract With Casey
Construction Inc. in the Amount Not to Exceed $320,895 for Storm
Drain Rehabilitation and Replacement Project - Phase II, Capital
Improvement Program Project SD-06101
CMR 349:08 Attachment
4. Approval of an Amendment to Contract No. S05110315 With Toter
Incorporated for One Additional Year and to Increase the
Compensation Amount by $75,000 for the Purchase of Additional Carts
for a Total Amount of $2,098,300
CMR 343:08
5. Approval of a Three-Year Contract With All City Management Services
Inc. in the Amount Not to Exceed $319,366 Per Year for Crossing
Guard Services and Authorization for Additional Services Not to Exceed
$31,936 Per Year
CMR 352:08 Attachment
6. Finance Committee Recommendation to Preliminarily Approve 2007-08
Re-Appropriation Requests
CMR 345:08 Attachment
7. Adoption of a Budget Amendment Ordinance for the Fiscal Year
2008-09 to Provide an Additional Appropriation of $751,325 to
Capital Improvement Program (CIP) VR-01001, Municipal
Service Center Fuel Storage Tank Replacement and Approval of a
Contract With American Construction and Environmental Services, Inc.
in the Amount of $702,076 for Construction of the Integrated Fueling
Facility Compressed Natural Gas Fueling Area With a Public Dispenser
CMR 356:08 Attachment
8. Approval of Amendment No. 1 to Refuse Enterprise Fund Contract No.
C06115396 with SCS Field Services in the Amount of $32,500 for a
total amount of $432,192 for Services Related to the Repair of Fire-
Damaged Landfill Gas and Leachate Collection System Components
and for Preventive Measures of Burying Landfill Gas Wellheads to
Prevent Fire Related Damage in the Case of Future Fires
09/08/08 3
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
CMR 348:08 Attachment
9. Adoption of a Budget Amendment Ordinance for the Fiscal Year
2008-09 to Provide an Additional Appropriation of $200,000 to
Vehicle Replacement Fund, Capital Improvement Program
Project, VR-08000, Approval of a Purchase Order With Peterson
Tractor Company in an Amount Not to Exceed $374,720 for the
Purchase of Four Backhoe/Loaders and Approval of a Purchase Order
With Peterson Tractor Company in an Amount Not to Exceed $249,497
for the Purchase of One Waste-Handling Wheel Loader
CMR 357:08 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
10. TEFRA Hearing Regarding Conduit Financing for the Keys Family Day
School Project Located at 3981 El Camino Real and 2890 Middlefield
Road, Palo Alto, and Adoption of a Resolution Approving the Issuance
of Revenue Bonds by the California Municipal Finance Authority in an
Aggregate Principal Amount Not to Exceed $20,000,000 for the
Purpose of Financing and/or Refinancing the Acquisition, Construction,
Improvement and Equipping of Educational Facilities for the Keys
Family Day School
CMR 350:08 Attachment
REPORTS OF OFFICIALS
11. Adoption of an Ordinance Adding Chapter 16.18 of Title 16 of
the Palo Alto Municipal Code Establishing Local Energy
Efficiency Standards for Certain Buildings and Improvements
Covered by the 2005 California Energy Code
CMR 354:08 Attachment
COUNCIL MATTERS
09/08/08 4
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
12. Approval of a City Auditor Employment Agreement With Lynda Flores
Brouchoud
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: 358:08 Page 1 of 3
1
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE: SEPTEMBER 8, 2008 CMR: 358:08
SUBJECT: STUDY SESSION ON A 35-UNIT AFFORDABLE HOUSING PROJECT
LOCATED AT 488 W. CHARLESTON ROAD (TREE HOUSE)
PURPOSE/RECOMMENDATION
The key purpose of this study session is to discuss this affordable housing project proposed by
the Palo Alto Housing Corp, also known as the “Tree House” project, prior to the beginning of
the rezoning process for the site and the Architectural Review Board (ARB) review of the
development. Staff recommends that the City Council receive the presentation from staff and
applicant, and provide comments and input to the project.
DISCUSSION
The proposed project is a 35-unit 100% affordable housing project proposed by the Palo Alto
Housing Corporation (PAHC) to be located at the site currently occupied by Recording for the
Blind and Dyslexic, at 488 W Charleston Road. Two land use entitlements, rezoning and
architectural review, are required for this project. The proposed rezoning will change the
property from the existing Planned Community (PC) zoning designation to a High Density
Multiple-Family Residence District (RM-40). This rezoning will require that an environmental
evaluation be prepared, as discussed in the environmental review section below. Both the
rezoning and environmental review will initially be reviewed by the Planning & Transportation
Commission (PTC) for its recommendation and then by the City Council for a decision. The
architectural review will begin with a preliminary review of the development by the ARB at its
meeting of September 18, 2008, and will include a future application for Major Architectural
Review to the ARB, subsequent to the re-zoning, and a recommendation to the Director of
Planning and Community Environment.
The project description (Attachment A) also includes a discussion of concessions requested for
this project, pursuant to SB 1818 (State housing density law). The applicant is allowed a
maximum of three concessions under State law since greater than 30% of the total units are for
lower income households. The concessions currently requested are the following two:
1. Provision of no covered parking, where one is currently required per dwelling unit
CMR: 358:08 Page 2 of 3
2. Reduction in the required front setback (25 feet) to allow a 5-foot encroachment
These concessions are primarily requested so that the proposed development can be placed on
the site in a way that is sensitive to the many large oak trees to be retained. The reduction in the
number of parking spaces by 40% as described in the applicant’s project description letter as a
concession is allowed by in the Palo Alto Municipal Code (PAMC Section 18.52.050 Table 4).
The applicant, Palo Alto Housing Corp, and the project architect, Pyatok Architects Inc.
(designer of Oak Court Apartments), will provide a preview of the design concept for the project
at the study session and concept plans are attached.
RESOURCE IMPACTS
The City has allocated a total of $2,538,577 to the Palo Alto Housing Corporation (PAHC) for
site acquisition, of which $1,538,577 and $1,000,000 will come from the Community
Development Block Grant (CDBG) and the City Residential Housing Fund, respectively. The
total acquisition cost is estimated to be approximately $3,000,000. PAHC estimates the overall
development cost for the Tree House project to be $13.5 million. PAHC is currently
investigating other sources of financing for site acquisition and development in addition to the
City’s funding, including but not limited to, Low-Income Housing Tax Credits, the State Multi-
Family Housing Program, Proposition 1C Fund and the Santa Clara County Housing Trust Fund.
The PAHC will need to close escrow on the property by March 2009 in order to ensure that the
City meets the Department of Housing and Urban Development’s (HUD) standards for the
timely expenditure of CDBG funds. This March 2009 deadline therefore sets the timeline for the
required entitlements, described above.
POLICY IMPLICATIONS
The proposed project substantially supports housing policies to develop affordable rental housing
and is consistent with the Comprehensive Plan designation for the site.
ENVIRONMENTAL REVIEW
This project is subject to both National Environmental Policy Act (NEPA) and the California
Environmental Quality Act (CEQA) requirements. HUD environmental regulations require for
projects using CDBG money to prepare NEPA document. At present, the City has completed
preparation of the Section 106 Evaluation (Historic Resources Evaluation in compliance with the
National Historic Preservation Act of 1976) for the proposed project, which concluded that the
project would not affect significant historic resources. The findings from that evaluation were
sent to the State Historic Preservation Officer (SHPO); the City has received a letter from SHPO
concurring with the City’s findings. Staff is working with a consultant to prepare the Initial
Study and Environmental Assessment for the project. A completed document is anticipated to be
ready by the end of September and ready for public circulation by October 2008.
STATUS OF 801 ALMA AFFORDABLE HOUSING PROJECT
The Planned Community rezoning application for the Palo Alto Family and Senior Housing, an
affordable housing project with two mixed use buildings proposed at 801, 853, 875 Alma, has
been filed with the City. The applicant met with City’s Development Review Committee on
August 20, 2008 and heard initial feedback from the various departments. The applicant also
received preliminary comments on the design of the project at a preliminary Architectural
CMR: 358:08 Page 3 of 3
Review Board public hearing on September 4, 2008. The City has contracted with David J.
Powers and Associates to prepare an Environmental Impact Report (EIR) to comply with the
California Environmental Quality Act. Staff anticipates that a minimum of six months will be
needed to prepare the EIR for public circulation. An amendment to the City’s pre-development
agreement will be scheduled for Council before the end of September to address pending
schedule and title transfer issues.
PREPARED BY: _____________________________________________
JENNIFER CUTLER
Planner
DEPARTMENT HEAD: _____________________________________________
CURTIS WILLIAMS
Interim Director of Planning and Community Environment
CITY MANAGER APPROVAL: _____________________________________________
JAMES KEENE
City Manager
ATTACHMENTS:
Attachment A: Project Summary
Attachment B: Project Timeline
Attachment C: Project Plans (Council Members only)
CMR:349:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: SEPTEMBER 8, 2008 CMR: 349:08
SUBJECT: APPROVAL OF A STORM DRAIN ENTERPRISE FUND CONTRACT
WITH CASEY CONSTRUCTION INC. IN THE AMOUNT NOT TO
EXCEED $320,895 FOR STORM DRAIN REHABILITATION AND
REPLACEMENT PROJECT - PHASE II, CAPITAL IMPROVEMENT
PROGRAM PROJECT SD-06101
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or his designee to execute the attached contract
with Casey Construction, Inc., in the amount of $320,895 for Storm Drain Rehabilitation
and Replacement Project Phase – II, Capital Improvement Program (CIP) Project SD-
06101.
2. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with Casey Construction, Inc., for related, additional but unforeseen
work which may develop during the project, the total value of which shall not exceed
$32,000
BACKGROUND
In 2005, the property owners of Palo Alto voted to increase their monthly storm drainage fee to
fund a number of storm drain-related capital improvement projects, including an increased
budget for annual storm drain rehabilitation and replacement. This project makes use of the
rehabilitation and replacement funds for FY 2008-09.
DISCUSSION
Project Description
A project location and overview map is shown on Attachment B. The major elements of the
work are the replacement of the existing deteriorated storm drain lines on Vernon Terrace and on
High Street between Forest Avenue and Homer Avenue. Additionally, backflow control devices
will be installed in manholes on Charleston Court at Charleston Road and at the intersection of
Seneca Street and University Avenue in order to prevent localized street flooding at these
locations. Bolt-down lids will be installed on several manholes along Embarcadero Road near
Alma Street to prevent water pressure from the Embarcadero Pump Station from lifting the lids
during severe storms. Localized repairs of damaged storm drain pipe will be made on Lambert
Avenue near Park Boulevard and at the intersection of Middlefield Road and Seale Avenue.
Plastic pipe liners will be inserted into storm drains in the Embarcadero Road / Wildwood Lane /
CMR:349:08 Page 2 of 3
Channing Avenue area in order to rehabilitate the existing deteriorated corrugated metal pipes.
Construction is expected to start in late September and be completed by the end of November
2008.
Project Coordination
The work included in this project has been coordinated with the City’s street maintenance
program and does not directly impact any other utility or street resurfacing project.
Summary of Bid Process
Bid Name/Number Storm Drain Rehabilitation and Replacement Project
Phase II, Capital Improvement Program Project SD-06101
/ IFB #127244
Proposed Length of Project 45 calendar days
Number of Bids Mailed to
Contractors
18
Number of Bids Mailed to
Builder’s Exchanges
10
Total Days to Respond to Bid 26
Pre-Bid Meeting? No
Number of Company Attendees at
Pre-Bid Meeting
N/A
Number of Bids Received: 1
Bid Price Range * One bid was received at a price of $ 320,895
*Bid summary provided in Attachment C. The Certification of Nondiscrimination is
Attachment D.
Staff has reviewed the one bid submitted and recommends that the bid of $320,895 submitted by
Casey Construction, Inc., be accepted and that Casey Construction, Inc., be declared the lowest
responsible bidder. The bid is 34% below the engineer's estimate of $489,705. Casey
Construction was the contractor for the last storm drain rehabilitation project and performed very
well. Multiple inquires made by staff to other plan holders indicated that a high volume of bid
openings on the same day as this project’s bid opening was the primary reason that only one bid
was submitted for the project. The change order amount of $32,000 (which equals 10% of the
total contract) is requested to resolve unforeseen problems and/or conflicts that may arise during
the construction period. Staff confirmed with the Contractor's State License Board that the
contractor has an active license on file.
RESOURCE IMPACT
Funding for the Storm Drain Rehabilitation and Replacement Phase II Project is available in
Storm Drainage Fund Capital Improvement Program Project SD-06101. Project SD-06101 is
funded annually on an ongoing basis in order to finance enhanced maintenance of the City’s
existing storm drain system by replacing or rehabilitating deteriorated components. The project
is funded by the Storm Drainage Fee increase approved by property owners in 2005.
POLICY IMPLICATIONS
This recommendation does not represent any changes to existing City policies.
CMR:349:08 Page 3 of 3
ENVIRONMENTAL REVIEW
This project has been determined to be categorically exempt from the provisions of the
California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines as
repair, maintenance, and/or minor alteration of an existing facility and no further environmental
review is necessary.
ATTACHMENTS
Attachment A: Contract
Attachment B: Project Location Map
Attachment C: Bid Summary
Attachment D: Certification of Nondiscrimination
PREPARED BY: __________________________________
MATTHEW H. BRUNNINGS
Associate Engineer
DEPARTMENT HEAD: __________________________________
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: __________________________________
JAMES KEENE
City Manager
cc: Storm Drain Oversight Committee
Stepheny McGraw
Rod McNall
Susan Rosenberg
John Tarlton
Richard Whaley
CMR:343:08 Page 1 of 2
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: SEPTEMBER 8, 2008 CMR: 343:08
SUBJECT: APPROVAL OF AN AMENDMENT TO CONTRACT NO. S05110315
WITH TOTER INCORPORATED FOR ONE ADDITIONAL YEAR AND
TO INCREASE THE COMPENSATION AMOUNT BY $75,000 FOR THE
PURCHASE OF ADDITIONAL CARTS FOR A TOTAL AMOUNT OF
$2,098,300
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to
amend Contract No. S05110315 with Toter Incorporated for one additional year and to increase
the compensation amount by $75,000 for the purchase of additional garbage carts for a total of
$2,098,300.
BACKGROUND
On May 5, 2005, Council approved Contract S05110315 with Toter Incorporated (Toter)
(CMR:222:05). The work performed under the contract was to purchase, manufacture, assemble
and deliver waste containers to the community starting July 1, 2005, for the implementation of
the new single stream recycling program, collection of yard trimmings in carts and optional
curbside garbage service. The approved contract provided services from May 2005 to May 2006
with an option for two additional years. The original contract was extended twice.
DISCUSSION
Services provided under the three years of the contract met the City’s expectations. The
amendment provides for the purchase of additional carts, with the same specifications including
sizing, color, logo and durability, which are needed to service the community during the Palo
Alto Sanitation Company’s (PASCO) last contract year.
Due to new construction, rising participation in recycling and the increased popularity of the
wheeled carts for garbage, additional small size carts must be reordered to provide service to new
customers. By purchasing the additional carts needed from Toter, the City will be assured of a
product that is identical to the one currently used by customers and a product that is compatible
with the current and future collection equipment.
Under the new waste hauling contract, the new contractor will utilize the existing carts. The
purchase of any new carts will become the obligation of the new contractor.
CMR:343:08 Page 2 of 2
SOLE SOURCE CONTRACT
This contract extension was determined to be exempt from competitive solicitation requirements
under Municipal Code Sections 2.30.360 (b) (impractical, unavailing) and 2.30.360 (d) (sole
source). A competitive solicitation would not have produced any advantage to the City since
Toter will provide the same quality containers with the specifications it has provided previously
under same terms and conditions of the original contract except for an increase in the price per
cart due to increases in plastic resin, freight, and fuel costs since the initial contract was issued in
2005.
RESOURCE IMPACT
Funds for this contract are available in the Refuse Fund Budget.
ENVIRONMENTAL REVIEW
This is not a project under Section 21065 of the California Environmental Quality Act (CEQA).
PREPARED BY: _____________________________________
PAULA BORGES FUJIMOTO
Executive Assistant
DEPARTMENT HEAD: _____________________________________
GLENN ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: ______________________________________
JAMES KEENE
City Manager
CMR:352:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: POLICE
DATE: SEPTEMBER 8, 2008 CMR: 352:08
SUBJECT: APPROVAL OF A THREE-YEAR CONTRACT WITH ALL CITY
MANAGEMENT SERVICES INC. IN THE AMOUNT NOT TO EXCEED
$319,366 PER YEAR FOR ADULT CROSSING GUARD SERVICES AND
AUTHORIZATION FOR ADDITIONAL SERVICES NOT TO EXCEED
$31,936 PER YEAR
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or his designee to execute the attached three-
year contract with All City Management Inc. in the amount of $319,366 per year, for
adult crossing guard services.
2. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with All City Management Services Inc. for additional crossing
guard services which may develop during the project, the total value of which shall not
exceed $31,936 per year.
BACKGROUND
The City is dedicated to ensuring the safety of children traveling to and from school. Prior to
1999, the Police Department was responsible for the hiring, staffing, training, equipping and
supervising the hourly crossing guards. Due to the increase in the number of locations where
crossing guards are required and the amount of staff time required to handle all the associated
responsibilities together with the use of regular employees including police officers as backfills,
the Department has fewer resources to manage the crossing guard program. As a result, in
August 1999 staff received Council approval to contract for adult crossing guard services.
Guidelines were adopted and approved by Council in April 1993 (CMR:175:93). The
assignment of adult crossing guard locations is considered by the City/School Traffic Safety
Committee only for those intersections which meet minimum standards and approved by the
City/School Traffic Safety Committee. These standards (Attachment C) require at least 20
school-age pedestrians utilize the crosswalk location per hour, on the way to or from school. In
addition, other traffic related factors are considered, such as crossing location, traffic volume,
CMR:352:08 Page 2 of 3
applicable Cal Train crossings, availability of bus service, and/or the number of traffic lanes
involved. The current agreement for crossing guard services expires on August 31, 2008. This
report provides the bid and vendor selection process for the new agreement.
DISCUSSION
All City Management Services has been responsible for the management of all crossing guard
program functions during the regular school year and the summer session since August 1999. At
that time, All City Management Services was selected following a request for Proposal (RFP)
process (CMR:326:99). The company has provided adult crossing guard personnel, supervision
and safety equipment, the operation of pedestrian signals, and has assumed responsibility for the
safe crossing of school-aged pedestrians at 29 designated school area crosswalks.
Summary of Bid Process
Bid Name/Number Crossing Guard Services
Proposed Length of Project 36 months
Number of Bids Mailed to
Contractors
Three
Total Days to Respond to Bid 14
Pre-Bid Meeting? Yes – No response
Number of Bids Received: 1
Bid Price Range $320,000
*Bid summary provided in Attachment B.
During the bid process, several agencies were contacted in an attempt to locate various vendors
involved in crossing guard programs. Several of the surrounding agencies and cities use police
or school district personnel; several others employ All City Management Services. Two other
companies that provide security and crossing guard services in the recent past were contacted
and provided with the RFP. Personal telephone contact was made with all three vendors. Two
of the vendors declined to submit a proposal. No phone calls were received during the Pre-
Proposal teleconference held on July 23, 2008. All City Management Services submitted a
proposal which was received by the City’s Purchasing Department on August 5, 2008.
Staff has reviewed the bid submitted and recommends that All City Management Inc. be
approved as the vendor. The bid is one percent below the staff estimate of $324,000 per year.
The change order amount of $31,936 which equals 10 percent of the total contract is requested
over the course of the contract to cover any additional locations that may be added. Factors that
would necessitate the change order include enhanced summer school sessions and/or new
locations being added due to residential redevelopment of previously zoned commercial areas.
CMR:352:08 Page 3 of 3
RESOURCE IMPACT
Funds in the amount of $319,366 are included in the FY 2008-09 Police Department Budget.
POLICY IMPLICATIONS
The provision of adult crossing guards is consistent with City policy and meets the requirements
of Program T-45 of the Comprehensive Plan.
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act (CEQA)
ATTACHMENTS
Attachment A: Contract
Attachment B: Bid Summary
Attachment C: City of Palo Alto Adult Crossing Guard Warrants
PREPARED BY: __________________________________
SANDRA BROWN
Police Lieutenant
DEPARTMENT HEAD: __________________________________
LYNNE JOHNSON
Police Chief
CITY MANAGER APPROVAL: __________________________________
JAMES KEENE
City Manager
CMR:345:08 Page 1 of 2
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE: SEPTEMBER 8, 2008 CMR: 345:08
SUBJECT: APPROVAL OF FINANCE COMMITTEE RECOMMENDATION TO
REQUEST TO PRELIMINARILY APPROVE 2007-08 REAPPROPRIATION
REQUESTS
RECOMMENDATION:
The Finance Committee recommends that the Council preliminarily approve the Fiscal Year 2007-
08 reappropriations (Attachment 1).
COMMITTEE REVIEW AND RECOMMENDATIONS:
The Committee voted unanimously to accept staff’s recommendation.
PREPARED BY:
DALE WONG
Senior Financial Analyst
DEPARTMENT HEAD:
LALO PEREZ
Director, Administrative Services
CMR:345:08 Page 2 of 2
CITY MANAGER APPROVAL:
JAMES KEENE
City Manager
ATTACHMENTS
Attachment 1: CMR 306:08
Attachment 2: Except minutes from the July 15, 2008 Finance Committee Meeting
CMR:356:08 Page 1 of 4
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: SEPTEMBER 8, 2008 CMR: 356:08
SUBJECT: ADOPTION OF A BUDGET AMENDMENT ORDINANCE FOR FISCAL
YEAR 2008-09 TO PROVIDE AN ADDITIONAL APPROPRIATION OF
$751,325 TO CAPITAL IMPROVEMENT PROGRAM PROJECT VR-
01001 MUNICIPAL SERVICE CENTER FUEL STORAGE TANK
REPLACEMENT AND APPROVAL OF A CONTRACT WITH
AMERICAN CONSTRUCTION AND ENVIRONMENTAL SERVICES,
INC. IN THE AMOUNT OF $702,076 FOR CONSTRUCTION OF THE
INTEGRATED FUELING FACILITY COMPRESSED NATURAL GAS
FUELING AREA WITH A PUBLIC DISPENSER
RECOMMENDATION
Staff recommends that Council:
1. Adopt the attached Budget Amendment Ordinance (BAO) in the amount of
$751,325 (Attachment A) to provide an additional appropriation for the Capital
Improvement Program (CIP) Project VR-01001 MSC Fuel Storage Tank
Replacement.
2. Approve and authorize the City Manager or his designee to execute the attached
contract C09124683 with American Construction and Environmental Services,
Inc., (Attachment C) in the amount $702,076 for construction of the Integrated
Fueling Facility Compressed Natural Gas (CNG) facilities.
3. Authorize the City Manager or his designee to negotiate and execute one or more
change orders to the contract with American Construction and Environmental
Services, Inc., for related, additional but unforeseen work which may develop
during the project, the total value of which shall not exceed $84,249.
BACKGROUND
The existing fueling facility at the Municipal Service Center (MSC) provides both conventional
and non-conventional (CNG) fuel for City vehicles and equipment on a 24 hour basis. The
current facility is thirty nine years old and is in need of replacement. In order to reduce
construction costs and to obtain the most qualified contractors, staff recommended bidding the
conventional fuel portion replacement work separately from the CNG replacement work.
CMR:356:08 Page 2 of 4
On September 11, 2006, Council approved a construction contract to build a replacement
conventional fueling facility at the MSC (CMR:342:06). This report addresses the construction
contract for the CNG portion of the replacement project.
DISCUSSION
Project Description
There will be two CNG stations constructed under this contract using previously purchased CNG
equipment. One CNG station located within the gated perimeter of the MSC will serve city
operations and the second located inside the gates of the northernmost employee parking lot will
be available for public use (Attachment B). Owners of private CNG vehicles may purchase
CNG at the dispenser using credit cards via a card reader. Facilities Management will provide
facility access cards to the public upon request.
Approval of this contract and associated BAO is needed due to a number of factors. A $300,000
grant from the Santa Clara Valley Transportation Agency (VTA) was used to purchase the CNG
equipment that will be used in this project. Since the VTA funding has already been expended,
failure to proceed with the project would require reimbursement to the VTA. Further, Capital
Improvement Project PE-08005, Municipal Service Center Resurfacing, has been coordinated to
resurface the impacted area from the CNG project upon its completion.
Funding of the BAO for this phase of construction will come from existing Capital Improvement
Project Funding listed in the table under Resource Impact section.
Bid Process
A notice inviting formal bids for the Municipal Service Center Integrated Fueling Facilities-
CNG was posted at City Hall on July 15, 2008 and sent to twelve potential bidders.
The bidding period was 35 days. Bids were received from three qualified contractors on
August 19, 2008, as listed on the attached bid summary (Attachment D). Base bids ranged from
a total low bid of $702,076 to a total high bid of $992,993 for the base bid.
Summary of Bid Process
Bid Name/Number Integrated Fueling Facility IFB #124683
Proposed Length of Project 3 months
Number of Bids Mailed to
Contractors
12
Number of Bids Mailed to Builder’s
Exchanges
10
Total Days to Respond to Bid 35
Pre-Bid Meeting? Yes
Number of Company Attendees at
Pre-Bid Meeting
9
Number of Bids Received: 3
Bid Price Range * $702,076 to $992,993 for the Base Bid
$1,154,833 to $1,491,288 with the Bid Alternate
(removing existing fueling station).
*Bid summary provided in Attachment D.
CMR:356:08 Page 3 of 4
The project as it was bid included a Base Bid for installation of new CNG dispensers and a Bid
Alternate for the removal of the existing fueling station and nearby former storage area for
above-ground fuel tanks. The existing fueling station is no longer needed since construction has
recently been completed on a new conventional fueling station at the east side of the MSC. The
cost to award a contract for the Base Bid plus the Bid Alternate would be $1,154,833, which is
beyond the funding available for this CIP therefore staff is recommending awarding the base bid
only.
Staff has reviewed all bids submitted and recommends that the base bid of $702,076 submitted
by American Construction and Environmental Services, Inc., be accepted and that American
Construction and Environmental Services, Inc., be declared the lowest responsible bidder. The
bid is less than 1 percent above the engineer's estimate of $700,000.
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.
A contingency amount of 12 percent is requested since testing has determined that some of the
soil at the new fueling station site has been contaminated with oil and gas residue and may need
to be removed. The extent of remediation required by the Santa Clara Valley Water District
cannot be determined until the ground is excavated and the degree that the contamination has
traveled within the soil is evaluated.
An additional $5,000 is requested for CIP VR-01001 to cover the costs of materials testing and
welding inspection that is typically paid for by the City, not the contractor.
RESOURCE IMPACT
The Project has a remaining unused appropriation of $40,000, and an additional appropriation of
$751,325 is needed to provide the necessary funds for the Project. The additional appropriation
of $751,325 will be funded by a transfer from various existing vehicle replacement projects. The
details of the funding sources are as follows:
Description Amount
VR-01002- MSC Equipment Washing
Facility Upgrade
$681,394
VR-05001- Field Service Truck 9,000
VR-06800- MTBE Investigation 12,664
VR-04010-Vehicle Maintenance 48,267
Total $751,325
A Budget Amendment Ordinance of $751,325 is necessary to increase appropriation to
VR-01001, MSC Fuel Storage Tank Replacement CIP Project. VR-01002 is an active project
designated for the replacement of the equipment washing facility at the MSC. This project is
CMR:356:08 Page 4 of 4
still needed; however, the need for a new CNG fueling facility now takes precedence over the
wash facility due to the requirements to implement the VTA grant monies, and project
coordination with the MSC resurfacing. In addition, the existing fueling station and above-
ground tank storage area are still in need of removal. In order to meet these needs and other
significant vehicle related objectives and obligations, Administrative Services and Public Works
staff are working on a revised funding plan for the Vehicle Replacement Fund through possible
revised allocated charges and revenue from the sale of CNG to the public. Once funding is
identified staff will return with capital improvement projects to remove the existing fueling
station and former tank-storage area and construct a new wash facility as part of the FY 2009-
2010 budget.
POLICY IMPLICATIONS
This project furthers Policy N-21 and N-25 of the Comprehensive Plan.
ENVIRONMENTAL REVIEW
This project is exempt under the California Environmental Quality Act (CEQA) Section 15302
because it is a relocation of an existing use. The project has been appropriately conditioned to
address the soil contamination.
ATTACHMENTS
Attachment A: Budget Amendment Ordinance (includes CIP Page as Exhibit A)
Attachment B: Revised Description of CIP VR-01001
Attachment C: Contract
Attachment D: Bid Summary
Attachment E: Certification of Nondiscrimination
PREPARED BY: __________________________________
J. MICHAEL SARTOR
Assistant Director of Public Works
DEPARTMENT HEAD: __________________________________
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: __________________________________
JAMES KEENE
City Manager
CMR:348:08 Page 1 of 2
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: SEPTEMBER 8, 2008 CMR: 348:08
SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO REFUSE ENTERPRISE FUND
CONTRACT NO. C06115396 WITH SCS FIELD SERVICES IN THE
AMOUNT OF $32,500 FOR A TOTAL AMOUNT OF $432,192 FOR
SERVICES RELATED TO THE REPAIR OF FIRE-DAMAGED LANDFILL
GAS AND LEACHATE COLLECTION SYSTEM COMPONENTS AND FOR
PREVENTIVE MEASURES OF BURYING LANDFILL GAS WELLHEADS
TO PREVENT FIRE RELATED DAMAGE IN THE CASE OF FUTURE
FIRES
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to execute
Amendment No. 1 to Contract C06115396 with SCS Field Services (SCS) expanding the scope of
work and increasing the maximum compensation by an amount of $32,500 for a total contract
amount not to exceed $432,192 for the total three year term of this maintenance contract.
BACKGROUND
On Wednesday July 23, 2008 a fire occurred at the Palo Alto Composting Facility (located on top of
a 7.5 acre section of the Palo Alto Landfill). The fire apparently originated in the stockpile of
unprocessed green material that burned throughout the evening as fire crews attempted to extinguish
the fire. The green material fire spread south of the facility aided by 30 mile per hour winds and
caught a section of grass on fire. Before fire crews could extinguish the grass fire, several
components of the above-ground landfill gas and leachate collection systems were severely damaged
including sections of the 8” diameter HDPE header-pipe, several hundred feet of 1” and 4” diameter
HDPE piping and two PVC wellheads as well as related fittings, hoses and other related
components.
The City’s environmental control systems (gas and leachate collection systems) maintenance
contractor is “SCS Field Services (SCS)” based in Modesto. SCS was called the night of the fire and
responded with personnel on the morning of Thursday, July 24, 2008. SCS assessed the damage and
immediately began isolating the damaged gas and leachate system sections. SCS crews worked the
week following the fire to replace the damaged pipelines and other components and to replace the
two above-ground wellheads. SCS removed the damaged materials from the area and had
completely repaired and restored the systems by Wednesday July 30, 2008.
CMR:348:08 Page 2 of 2
In March 2006, Council approved a three-year service agreement with SCS to provide both routine
and non-routine landfill gas and leachate system maintenance, monitoring and reporting for an
amount not to exceed $131,868 for the first and second contract years and the third year increasing
to $135,956.
DISCUSSION
SCS was directed to perform the emergency repairs under the City Manager’s emergency contract
authority. It was necessary to complete these emergency repairs as soon as possible for the City to
stay in compliance with its Title V air permit as well as to close-off potentially explosive methane
gas emissions in the vicinity of the green material fire. This work was accomplished under the
terms, conditions and unit pricing from the SCS Agreement Number C06115396, and totaled
$22,500.
In addition, in order to minimize the potential for fire damage in the future as well as to allow fire
response equipment full access to the perimeter of the facility, staff recommends burying six landfill
gas wells in the vicinity of the composting facility. SCS is recommended for this additional work to
ensure that the buried wells and laterals will integrate properly with the existing system. The cost of
this work will be $10,000.
RESOURCE IMPACT
Funding for this contract amendment is available in the FY 2008-09 Refuse Enterprise Fund.
POLICY IMPLICATIONS
This project does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act (CEQA) review
under Sections 15301 and 15302 (Class 1 and 2 exemptions).
ATTACHMENTS
Attachment A: Amendment No. 1
PREPARED BY: ___________________________________
RON ARP
Manager, Environmental Control Programs
DEPARTMENT HEAD: ___________________________________
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: ___________________________________
JAMES KEENE
City Manager
CMR:357:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: SEPTEMBER 8, 2008 CMR: 357:08
SUBJECT: ADOPTION OF A BUDGET AMENDMENT ORDINANCE FOR THE
FISCAL YEAR 2008-09 TO PROVIDE AN ADDITIONAL
APPROPRIATION OF $200,000 TO VEHICLE REPLACEMENT FUND,
CAPITAL IMPROVEMENT PROGRAM PROJECT, VR-08000,
APPROVAL OF A PURCHASE ORDER WITH PETERSON TRACTOR
COMPANY IN AN AMOUNT NOT TO EXCEED $374,720 FOR THE
PURCHASE OF FOUR BACKHOE/LOADERS AND APPROVAL OF A
PURCHASE ORDER WITH PETERSON TRACTOR COMPANY IN AN
AMOUNT NOT TO EXCEED $249,497 FOR THE PURCHASE OF ONE
WASTE-HANDLING WHEEL LOADER
RECOMMENDATION
Staff recommends that Council:
1. Adopt the attached Budget Amendment Ordinance (BAO) in the amount of $200,000
(Attachment A) to provide an additional appropriation to the Vehicle Replacement Fund,
Capital Improvement Program (CIP) Project, Scheduled Vehicle and Equipment
Replacements, VR-08000, for the purchase of a waste-handling wheel loader.
2. Approve and authorize the City Manager or his designee to execute a purchase order with
Peterson Tractor Company in the amount of $374,720 for the purchase of four
backhoe/loaders.
3. Approve and authorize the City Manager or his designee to execute a purchase order with
Peterson Tractor Company in the amount of $249,497 for the purchase of one waste-
handling wheel loader.
DISCUSSION
Backhoe/Loaders
Vehicle Replacement Fund CIP Projects VR-07800, VR-08000 and VR-09000 authorize the
replacement of four backhoe/loaders. Three of these backhoe/loaders are at the end of their
useful life. The fourth one is scheduled for replacement in 2008-09, however it has not yet
CMR:357:08 Page 2 of 3
accumulated enough operating hours to qualify for replacement. Since the fourth backhoe/loader
is due for replacement later this fiscal year, staff feels it would be cost effective for it to be
replaced early and added to the Municipal Services Center equipment pool. Backhoe/loaders are
used heavily in both Utilities and Public Works field operations; having a spare backhoe/loader
available in the equipment pool will greatly reduce the impact to those operations when assigned
backhoe/loaders are down for service or maintenance. In addition, the availability of a spare
machine will reduce the need for equipment rentals when additional backhoe/loaders are needed
for heavy workloads or special projects.
A Request for Quotation (RFQ) for three backhoe/loaders was sent to four vendors on April 28,
2008. Bids were received from four qualified vendors on May 20, 2008, as listed on the attached
bid summary (Attachment B). Bids ranged from a high of $312,061 to a low bid of $241,339.
The bids received from Papé Equipment and Tractor Equipment Sales did not meet
specifications, so they could not be considered for award.
Staff has reviewed all bids submitted and recommends that the bid submitted by Peterson Tractor
Company be accepted and that Peterson Tractor Company be declared the lowest responsible
bidder.
Waste-Handling Wheel Loader
Vehicle Replacement Fund CIP Project VR-08000 authorizes the replacement of a waste-
handling wheel loader to support the City’s composting program. This machine is used to load
greenwaste into a compost grinder and finished compost into trucks.
Due to the premature failure of a compost screener in August 2007, the funding originally
allocated for the replacement of this wheel loader was used to purchase a new compost screener.
The screener was not scheduled for replacement until fiscal year 2009-10. Staff attempted to
defer the replacement of the wheel loader until fiscal year 2009-10, but it has also failed and is
not cost-effective to repair. A new wheel loader must now be purchased on an emergency basis.
Given that sufficient funding is not available for the purchase of this wheel loader in Vehicle
Replacement Fund CIP Project VR-08000, the purchase will be facilitated by a transfer from the
Refuse Fund Reserve to the Vehicle Replacement Fund CIP in accordance with the attached
BAO (Attachment A).
This is a sole source purchase conducted in accordance with Section 2.30.360(b) of the Palo Alto
Municipal Code. Waste-handling wheel loaders are equipped with protective shielding and other
features that enable safe operation in landfill facilities. Only a few wheel loader manufacturers
offer waste-handling versions. Staff researched the availability of a replacement wheel loader
and determined that Peterson Tractor Company was the only supplier in the area that had a
machine meeting our requirements, and ready for immediate delivery. The machine that
Peterson Tractor intends to supply is of the same make and model (Caterpillar 950 series) as the
machine that is being replaced, so there will be minimal impact to staff from an operation and
maintenance standpoint. In addition, the purchase of the Caterpillar loader will allow staff to
transfer an existing “Tink” brand greenwaste bucket from the existing machine to the new
machine, saving approximately $30,000 on the cost of a new greenwaste bucket.
CMR:357:08 Page 3 of 3
Staff has checked references supplied by the vendor for previous contracts and has found no
significant complaints.
RESOURCE IMPACT
In fiscal years 2006-07, 2007-08 and 2008-09, Council appropriated $3.6 million to CIP Vehicle
Replacement Fund Project VR-07800; $2.5 million to VR-08000, and $2.5 million to VR-09000
to cover the costs of scheduled replacements of vehicles and equipment. Because the funding
originally allocated in VR-08000 for the replacement of a wheel loader was used to purchase a
compost screener, the existing balance of the appropriation in VR-08000 is no longer sufficient
to allow for the purchase of a wheel loader.
A Budget Amendment Ordinance is necessary to transfer $200,000 from the Refuse Fund
Reserve to Vehicle Replacement CIP VR-08000 for the purchase of the waste-handling wheel
loader to be utilized in the composting program. The proposed BAO will reduce the balance of
the Refuse Fund Reserve to $828,000.
POLICY IMPLICATIONS
Authorization of the contract does not represent any change to the City’s existing policy.
ENVIRONMENTAL REVIEW
The equipment being supplied is in conformance with all applicable emissions laws and
regulations, and will emit significantly fewer exhaust emissions than the equipment being
replaced.
ATTACHMENTS
Attachment A: Budget Amendment Ordinance
Attachment B: Bid Summary
Attachment C: Certification of Nondiscrimination
PREPARED BY: ___________________________________
KEITH LAHAIE
Fleet Manager
DEPARTMENT HEAD: ___________________________________
GLENN ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: ___________________________________
JAMES KEENE
City Manager
CMR:350:08 Page 1 of 4
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE: SEPTEMBER 8, 2008 CMR: 350:08
SUBJECT: TEFRA HEARING REGARDING CONDUIT FINANCING FOR THE
KEYS FAMILY DAY SCHOOL PROJECT LOCATED AT 3981 EL
CAMINO REAL AND 2890 MIDDLEFIELD ROAD, PALO ALTO, AND
ADOPTION OF A RESOLUTION APPROVING THE ISSUANCE OF
REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE
AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO
EXCEED $20,000,000 FOR THE PURPOSE OF FINANCING AND/OR
REFINANCING THE ACQUISITION, CONSTRUCTION,
IMPROVEMENT AND EQUIPPING OF EDUCATIONAL FACILITIES
FOR THE KEYS FAMILY DAY SCHOOL
RECOMMENDATION
1) Conduct a public hearing under the requirements of the Tax Equity and Fiscal
Responsibility Act of 1983 (TEFRA) and the Internal Revenue Code of 1986, as
amended (Code); and
2) Adopt a resolution (Attachment A) approving the issuance of the bonds by the California
Municipal Finance Authority (CMFA) for the benefit of Keys Family Day School, Inc.
(Borrower) in financing Keys Family Day School.
BACKGROUND
Keys Family Day School, Inc. (Keys) requested that the CMFA serve as the municipal issuer of
bonds for the Keys Family Day School project in an aggregate principal amount not to exceed
$20,000,000 of tax exempt revenue bonds. Proceeds from the issuance of the bonds will be used:
(i) to fund the demolition of an existing facility and the construction and equipping of one or
more new buildings to be used as educational facilities on property owned by Keys located at
3981 El Camino Real, Palo Alto, California (the "El Camino Campus"), including furniture,
fixtures and equipment and design, architectural, engineering, project management, project
consultants and other similar expenses relating thereto, (ii) to fund certain other capital
expenditures, renovations, equipment and relocation expenditures at the El Camino Campus and
on property owned by Keys located at 2890 Middlefield Road, Palo Alto, California (the
"Middlefield Campus"); (iii) refinance an existing bank loan used to acquire and improve the El
CMR:350:08 Page 2 of 4
Camino Campus; and (iv) pay other expenses related to the issuance of the Bonds, including but
not limited to funding a debt service reserve fund, costs of issuance, and capitalized interest
(collectively, the "Project"). The Project will be owned and operated by Keys.
In order for all or a portion of the bonds to qualify as tax-exempt bonds, the City of Palo Alto
must conduct a public hearing (TEFRA Hearing), providing the members of the community an
opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the
project. Prior to the hearing, reasonable notice must be provided to the members of the
community. Following the close of the TEFRA hearing, an “applicable elected representative” of
the governmental unit hosting the proposed project must provide its approval of the issuance of
the bonds for the financing of the project.
DISCUSSION
Since the facilities to be financed with the proceeds of the CMFA’s debt are located within the
jurisdiction of the City of Palo Alto, the City has been asked to conduct a TEFRA hearing and
adopt a resolution (Attachment A) that approves both the issuance of bonds by the CMFA for the
benefit of Keys.
As cited in the published notice of August 20, 2008, the public hearing is simply an opportunity
for all interested persons to speak or to submit written comments concerning the proposal to
issue the debt and the nature or location of the facility to be financed; however, there is no
formal obligation on the part of the borrower or the Council to respond to any specific comments
made during the hearing or submitted in writing.
The financing includes, but is not limited to finance the acquisition, construction, improvement
and equipping of educational facilities and certain other matters relating thereto located at 3981
El Camino Real and 2890 Middlefield Road, Palo Alto.
The CMFA is a joint exercise of powers authority that the City became a member of on April 14,
2008. The Joint Exercise of Powers Agreement provides that the CMFA is a public entity,
separate and apart from each member executing such agreement. The debts, liabilities and
obligations of the CMFA do not constitute debts, liabilities or obligations of the members
executing such agreement. The bonds to be issued by the CMFA for the project will be the sole
responsibility of the borrower, and the City of Palo Alto will have no financial, legal, moral
obligation, liability or responsibility for the project or the repayment of the bonds for the
financing of the project. All financing documents with respect to the issuance of the bonds will
contain clear disclaimers that the bonds are not obligations of the City of Palo Alto or the State
of California but are to be paid for solely from funds provided by the borrower.
The City is in no way exposed to any financial liability by reason of its membership in the
CMFA. In addition, participation by the City in the CMFA does not impact the City’s
appropriations limits and will not constitute any type of indebtedness by the City. Outside of
holding the TEFRA hearing and adopting the required resolution, no other participation or
activity of the City or the City Council with respect to the issuance of the bonds will be required.
Based on the benefits of the project to the Palo Alto community and the lack of any financial
CMR:350:08 Page 3 of 4
obligations on the part of the City, staff recommends that Council approve the attached
resolution.
RESOURCE IMPACT
As stated, the City will incur no financial obligation from approval of the recommendations.
Keys Family Day School, Inc. is requesting authority to issue up to $20 million in bonds through
the CMFA. The City will receive a fee for its services when the bonds are issued. The City
would receive approximately $8,300 if the par amount of the bonds issued is $20 million.
POLICY IMPLICATIONS
Actions recommended in this report are consistent with Council’s prior actions in supporting
non-profit financings under the TEFRA (e.g., approving tax-exempt financing through the
California Municipal Finance Authority for the Gideon Hausner Jewish Day School projects,
CMR: 184:08).
ENVIRONMENTAL REVIEW
Action on this item does not constitute a project under Section 21065 of the Public Resources
Code.
CMR:350:08 Page 4 of 4
PREPARED BY: _______________________________________________________
JOSEPH SACCIO
Deputy Director, Administrative Services
DEPARTMENT HEAD APPROVAL:_______________________________________
LALO PEREZ
Director, Administrative Services
CITY MANAGER APPROVAL: ___________________________________________
JAMES KEENE
City Manager
ATTACHMENTS
Attachment A: Resolution Approving the Issuance of Revenue Bonds by the California
Municipal Finance Authority for the Purpose of Financing or Refinancing Acquisition,
Construction, Improvement and Equipping of Educational Facilities for the Benefit of Keys
Family Day School, Inc.
CMR: 354:08 Page 1 of 3
15
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE: SEPTEMBER 8, 2008 CMR: 354:08
SUBJECT: ADOPTION OF AN ORDINANCE ADDING A NEW CHAPTER
16.18 TO THE PALO ALTO MUNICIPAL CODE ESTABLISHING
LOCAL ENERGY EFFICIENCY STANDARDS FOR CERTAIN
BUILDINGS AND IMPROVEMENTS COVERED BY THE 2005
CALIFORNIA ENERGY CODE
RECOMMENDATION
Staff recommends that the City Council adopt the attached ordinance adding a new Chapter
16.18 (Local Energy Efficiency Standards for Certain Buildings and Improvements Covered by the
2005 California Energy Code) to the Palo Alto Municipal Code.
BACKGROUND
On June 2, 2008, the Council passed Ordinance No. 5006, adopting mandatory green building
regulations for residential and commercial building projects. Additionally, the Council adopted a
companion Resolution No. 8825, establishing specific green building standards to comply with
the ordinance. The green building ordinance specifies use of the United States Green Building
Council (USGBC) LEED (Leadership in Energy & Environmental Design) rating system for
commercial building projects and the Build it Green GreenPoint Rated system for residential
projects. Both rating systems specify minimum energy efficiency standards for buildings that
exceed the requirements of the current (2005) California Energy Code (Part 6 of Title 24 of the
California Code of Regulations) that the Council adopted on November 26, 2007 by Ordinance
No. 4980. The proposed ordinance is intended to make the energy efficiency requirements of
the locally adopted Energy Code consistent with those of the green building regulations.
DISCUSSION
Although the California Energy Code prescribes minimum energy performance standards for
new buildings, requiring increased energy efficiency at the local level will further reduce energy
costs for building owners, further reduce energy consumption during periods of peak demand
and further reduce greenhouse gas emissions. The proposed ordinance would apply to all new
CMR: 354:08 Page 2 of 3
residential and non-residential construction and would establish increased energy efficiency
standards that are roughly 15% greater than minimum standards in energy current code
requirements.
California Public Resources Code Section 25402.1(h)(2) states that modifications to the
California Energy Efficiency Standards by a local jurisdiction may be done only after a study has
been undertaken and findings made that determine that the proposed modifications are cost
effective. Upon introduction of the ordinance, the study and findings must be presented to the
California Energy Commission (CEC) prior to implementation of the proposed local standards.
After CEC review and approval, which could take up to three months, staff will bring the
ordinance back to Council for final adoption and the ordinance will be effective 30 days
thereafter.
Because locally adopted energy efficiency standards also constitute amendments to the
California Buildings Standards Code, after final adoption by Council, the ordinance
(amendments) must be filed with the California Building Standards Commission (CBSC) and
must include additional findings that demonstrate how the amendments are reasonably necessary
due to unique local climatic, geologic or topographic conditions pursuant to California Health
and Safety Code Section 17958.5. To date, only 11 jurisdictions in the state have amended the
2005 Energy Code to establish increased local energy efficiency standards (see
http://www.energy.ca.gov/title24/2005standards/ordinances_exceeding_2005_building_standard
s.html). Also, this process will be updated when the CEC publishes the next (2008) edition of
the California Energy Code.
A copy of the recently completed study of Palo Alto’s proposed local Energy Code amendments,
“Palo Alto Green Building Ordinance Energy Cost-Effectiveness Study” prepared by Gabel
Associates, LLC, is attached and will be presented more fully to the Council at the September 8th
meeting. The study concludes that the increased energy efficiency standards of the City’s green
building regulations are cost-effective and would justify to the CEC increasing the City’s energy
standards.
The ordinance will be forwarded to the CEC following Council introduction at this meeting. The
ordinance will return for second reading following CEC review.
POLICY IMPLICATIONS
The Energy Code amendments are consistent with and directly support the City’s recently
adopted green building regulations.
RESOURCE IMPACT
Resource impacts from the adoption of the ordinance are limited to staff training costs and
implementation of public outreach efforts. As with the enforcement of the existing Energy Code
standards, these costs are recovered through Building Permit fees.
ENVIRONMENTAL REVIEW
The proposed ordinance preserves and enhances the environment, in that it would set forth
minimum energy efficiency standards within the City of Palo Alto for all new residential and
CMR: 354:08 Page 3 of 3
commercial construction. Thus, staff has determined that this action is exempt from the
California Environmental Quality Act (CEQA) in accordance with Public Resources Code
Section 15061(b)(3), because “it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment.”
PREPARED BY: __________________________________________
LARRY I. PERLIN, PE
Chief Building Official
DEPARTMENT HEAD REVIEW: __________________________________________
CURTIS WILLIAMS
Interim Director of Planning and Community Environment
CITY MANAGER APPROVAL: __________________________________________
JAMES KEENE
City Manager
ATTACHMENTS
1. Ordinance adding a new Chapter 16.18 to the Palo Alto Municipal Code
establishing local energy efficiency standards for certain buildings and
improvements covered by the 2005 California Energy Code.
2. Palo Alto Green Building Ordinance Energy Cost-Effectiveness Study” prepared by
Gabel Associates, LLC.
COURTESY COPIES:
Chamber of Commerce
Stanford – Jean McCown
Home Builders Association
Board of Realtors
League of Woman Voters
Silicon Valley Leadership Group
Santa Clara Valley Chapter AIA