HomeMy WebLinkAbout2009-11-02 City Council Agenda Packet
1 11/02/09
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on the Friday preceding the meeting.
Regular Meeting
Council Chambers
November 02, 2009
7:00 PM
ROLL CALL
SPECIAL ORDERS OF THE DAY
1. Proclamation Welcoming Honorable Mayor Nakagawa and Mr. Aoyama
from Tsuchiura City, Japan
ATTACHMENT
CITY MANAGER COMMENTS
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
October 05, 2009
CONSENT CALENDAR
Items will be voted on in one motion unless removed from the calendar by two Council Members.
2. Approval of Changes to the Compliance Procedures for Private
Intrusion Alarm
CMR 340:09 & ATTACHMENT
3. 2nd Reading Adoption of an Ordinance Repealing Chapter 16.17 of
the Palo Alto Municipal Code and Amending Title 16 to Adopt a
New Chapter 16.17, California Energy Code, 2008 Edition
(First reading October 19, 2009, Passed 8-0 Barton absent)
11/02/09 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.
4. Annual Public Review of Compliance of Development Agreement with
Stanford University for the Sand Hill Road Corridor Projects
CMR 417:09 & ATTACHMENT
5. Acceptance of California Office of Traffic Safety Grant in the Amount of
$46,465 for Selective Traffic Enforcement Program
CMR 416:09 & ATTACHMENT
6. Acceptance of Transmittal of Police Auditor’s Final Report for 2008
CMR 415:09 & ATTACHMENT
7. Finance Committee Recommendation to Accept the Auditor’s Office
Review of Telephone Rates and Charges
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
three minutes per speaker.
UNFINISHED BUSINESS
8. Colleagues Memo from Council Members Espinosa, Kishimoto, and
Schmid Directing Staff to Take Actions to Permit Early Opening of
Portion of Byxbee Park (Continued by Council Motion on October 19, 2009)
ATTACHMENT
9. Policy & Services Committee Recommendation to Continue the Open
City Hall Online Forum (Continued by Council Motion on October 5, 2009)
ATTACHMENT
10. Policy & Services Committee Recommendation to Adopt a Resolution
Amending City Council Procedures to Add an Ad Hoc Committee Policy
(Continued by Council Motion on September 21, 2009)
ATTACHMENT
11/02/09 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.
ACTION ITEMS
Include: Public Hearings, Reports of Committees/Commissions, Ordinances and Resolutions, Reports of Officials, and Council Matters
11. Approval of the Extension of the Agreement Between San Mateo
County Convention and Visitors Bureau and the City of Palo Alto for
the Provision of Destination Palo Alto Visitorship Services in the
Amount of $240,000 for Fiscal Year 2009-10
CMR 386:09 & ATTACHMENT
12. Colleagues Memo from Mayor Drekmeier, Council Members Burt,
Kishimoto, and Yeh Request for the Council to Adopt a Resolution to
Accept an Invitation to Participate in the United States-China Low-
Carbon Cities, Communities, and Regions Program
ATTACHMENT
COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS
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.
CITY OF PALO ALTO
PROCLAMATION
WELCOMING HONORABLE MAYOR NAKAGAWA
AND MR. AOYAMA FROM TSUCHIURA CITY, JAPAN
WHEREAS, cultural exchange resulting from people–to-people communication is the
foundation of the Sister City Program, which attempts to further international understanding; and
WHEREAS, the City of Tsuchiura is Palo Alto’s Sister City in Japan and has honored Palo
Alto by sending its Mayor to visit this city; and
WHEREAS, the City of Palo Alto recognizes and welcomes the presence of the Honorable
Kiyoshi Nakagawa, Mayor of Tsuchiura City and Mr. Kazuo Aoyama, Manager, Lifelong
Learning Section, Board of Education, Tsuchiura City; and
WHEREAS, participation in this cultural exchange exemplifies the mutual objectives of the
two cities, namely, to promote, encourage and cultivate understanding between the people of
Tsuchiura and Palo Alto; and
WHEREAS, the opportunity to send Palo Alto students to Tsuchiura, Japan and to host
Tsuchiura students here, has proven to be mutually beneficial.
NOW, THEREFORE, I, PETER DREKMEIER, Mayor of the City of Palo Alto, on behalf
of the City Council, do hereby express our heartfelt welcome and appreciation to Mayor
Nakagawa and Mr. Aoyama for their significant contribution to the Sister City Program.
Presented: November 2, 2009
______________________________
Peter Drekmeier
Mayor
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: NOVEMBER 2, 2009
TYPE OF REPORT: CONSENT
DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
CMR: 417:09
SUBJECT: ANNUAL PUBLIC REVIEW OF COMPLIANCE OF
DEVELOPMENT AGREEMENT WITH STANFORD UNIVERSITY
FOR THE SAND HILL ROAD CORRIDOR PROJECTS
EXECUTIVE SUMMARY
The Development Agreement with Stanford University for the Sand Hill Road Corridor Projects
adopted in 1997 requires City Council review of Stanford's compliance with the agreement on an
annual basis. This report covers activities during the period from 2007 -2009.
RECOMMENDATION
Staff recommends that the City Council:
1. Find that Stanford University has complied in good faith with the terms and conditions of
the development agreement for the 2007-2009 reporting period.
2. Direct staff to issue a Certificate of Compliance to the University, according to the
provision of Section 1 O( a) of the Agreement, stating that:
a. The Agreement remains in effect, and
b. Stanford University is not in default.
BACKGROUND
In June 1997, the City Council approved Comprehensive Plan amendments, zoning changes and
design applications for the Sand Hill Road Corridor Projects (Projects). The Projects include the
Stanford West Apartments (Apartments), Senior Housing, Shopping Center modifications and a
set of roadway modifications, including the widening of Sand Hill Road to four lanes from Santa
Cruz Avenue to Arboretum Road and a two-lane extension from Arboretum Road to EI Camino
Real. A development agreement vesting these approvals was entered into between Stanford and
the City and was effective on August 14, 1997. The development agreement requires annual
City Council review of Stanford's compliance. This report covers Stanford's 2007-2009
activities.
CMR:417:09 Page 1 of3
DISCUSSION
The attached September 9, 2009 memo (Attachment A) from Stanford Management Company
describes Stanford's 2007-09 activities related to implementation of the development agreement.
Construction related to the Sand Hill Road Corridor Projects was completed during earlier
reporting periods. Post-construction activities include:
• Stanford West Apartments are now in their eight year of occupancy and the number of Below
Market Rate (BMR) units remains at 105 units in accordance with the Agreement. The on-
site retail store and the Children's Creative Learning Center, a child care center at the
Stanford West Apartments, also continues operations with Stanford continuing to subsidize
the store to offset the on-going loss from operations.
• The Classic Residence Senior Housing by Hyatt is now operating on its fourth year with
independent living units occupancy stabilized at 990/0. The Health Care Center, with 38
assisted living units, 24 memory support units and 4 skilled nursing units, is also operating at
high occupancy levels. The community recently received a Canopy award for outstanding
landscape management practices and continues to work with the City of Palo Alto to reduce
its utilization of nonrenewable resources.
• The Roads phase of the Sand Hill Road Project is now completed. Stanford continues to
maintain private street improvements and landscaping within portions of Sand Hill Road, El
Camino Real, Quarry Road, and Arboretum Road consistent with the Agreement.
Simon Property Group, the lessee and operator of the Stanford Shopping Center, withdrew their
application to expand the Stanford Shopping Center on April 2009. The expansion would have
required amending the Sand Hill Road Corridor Projects Development Agreement.
The terms of the Sand Hill Road Corridor Proj ects Development Agreement shall continue
through August 14, 2012 or until earlier terminated by mutual consent of the parties involved in
the Agreement.
RESOURCE IMPACT
There are no impacts from the development agreement compliance program that affects the
General Fund.
POLICY IMPLICATIONS
This report does not represent any changes to existing City policies.
ENVIRONMENTAL REVIEW
Issuance of the Certificate of Compliance and consent to an Assignment and Assumption
Agreement are not projects under the California Environmental Quality Act, and no
environmental assessment is required.
CMR:417:09 Page 2 of3
PREPARED BY: RO~~C-~
Senior Planner .
DEPARTMENT HEAD: ~Lk~£lL---tA~v!l~, ~~~
CURTIS WILLIAMS
Director of Planning and Community Environment
CITY MANAGER APPROVAL:
ATTACHMENT
Attachment A: September 9, 2009 memo from Jim Inglis
cc: Stanford Management Company (Jim Inglis)
Stanford Management Company (Bill Phillips)
Stanford Management Company (Jean Snider)
Stanford University (Larry Horton)
City of Menlo Park (Arlinda Heineck)
County of Santa Clara (Jody Hall Esser)
County of San Mateo (Lisa Grote)
CMR:417:09 Page 3 of3
Attachment A
STANFORD UNIVERSITY
September 9, 2009
Roland Rivera
City of Palo Alto
Department of Planning and Community Environment
250 Hamilton Avenue
P.O. Box 10350
, Palo Alto, CA 94303
RE: Sand Hill Road Corridor Projects Annual Report -August 2007-July 2009
Dear Roland:
P~suant to your request of August 10, 2009, and consistent with the 1997 Development
Agreement between the City of Palo Alto and Stanford' University for the Sand Hill Road
Corridor Project, this report is submitted to the City as part of the City's annual review of the
project. This report covers the two year period, August 1, 2007 to July 31, 2009.
Stanford continues to be in compliance with the terms of the 1997 Development Agreement.
CONSTRUCTION
Construction relating to the Sand Hill Road Corridor Project, including the Stanford Shopping
Center, Senior Housing, Stanford West Apartments and the Roadway ,portion of the Project,
was completed during earlier reporting periods.
POST-CONSTRUCTION
Stanford Shopping Center
· The Stanford Shopping Center ("SSC") was sold to Simon Properties Group ("SPO")
in' 2003. On November 17, 2003, the City Council approved the Assignment and
Assumption Agreement transferring SSC performance responsibilities under the 1997
Development Agreement from Stanford to SPO Center, LLC.
Roadway Project
• Stanford continues to maintain the Project's private street improvements consistent
with the Agreement. Stanford also continues to maintain the landscaping within
portions of the Sand Hill Road, EI Camino Real, Quarry Road and Arboretum Road
public rights of way consistent with the Agreement.
S TAN FOR D REAL ESTATE OFFICE
2755 Sand Hill Road, Suite 100 • Menlo Park, CA 94025 • T: 650.926.0300 • F: 650.854.9268
Mr. Roland Rivera
Page 2of2
Stanford West Apartments
September 9, 2009
.' The Stanford West Apartments completed their eighth year of operation and entered
their ninth year during the reporting period.
• In accordance with the terms of the Development Agreement, the Below Market Rate
("BMR") units remain at 1 05 units. A detailed BMR report is submitted to the Palo
Alto Housing Corporation each year consiste~t with the Agreement.
• The on-site retail store remained open during the reporting period. The store is located
adjacent to the Community Building and is open seven days a week; weekdays 7 am to
7 pm; weekends lOam to 5 pm. The store first opened June 2, 2002. Stanford
continues to subsidize the store to offset the on-going losses from store operations.
• The Children's Creative Learning Center ("CCLC") operates a child care center at
Stanford West on a site located between the Village Green and Governor's Lane.
Consistent with the Development Agreement, the CCLC's annual rent is $1 per year.
Senior Housing (Classic Residence by Hyatt in Palo Alto)
• Classic Residence by Hyatt ~n. Palo Alto celebrated its third and fourth anniversaries
during the reporting period. The community is comprised of 388 independent living
units and a Health Care Center with 38 assisted living units, 24 memory support units
and 4 skilled nursing units. The 'average age of the residents is 81. Occupancy of the
independent living units has stabilized at 99%. Health Care Center occupancy has
increased and is currently 97% in assisted living, 71 % in memory support and 70% in
skilled nursing.
• The community recently . received a Canopy award for outstanding landscape
management practices.
• Classic Residence by Hyatt's staff is working with the City of Palo Alto to reduce its
utilization of nonrenewable resources.
• Utility poles in the Village Green area of the community were recently removed.
Services provided by those above-ground utilities were relocated underground. Other
utilities in the community had been placed underground previously.
Enclosed is a check (No. 1051490; September 3, 2009) in the amount of $2,000.00, as
payment for costs incurred by the City as part of its annual review of the Agreement.
Sincerely,
i -JJ A -~-' ~ /--~~~f Design and Construction
TO:
FROM:
DATE:
REPORT TYPE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER
NOVEMBER 2, 2009
CONSENT
DEPARTMENT: POLICE
CMR:416:09
Acceptance of California Office of Traffic Safety Grant in the Amount of
$46,465 for Selective Traffic Enforcement Program
RECOMMENDATION
Staff recommends that the City Council accept funds from the State of California Office of Traffic
Safety in the amount of $46,465 for a selective traffic enforcement program.
BACKGROUND
The Palo Alto Police Department received a Selective Traffic Enforcement Program (STEP) grant
to increase enforcement of driving under the influence (DUI), red light running, excessive speed,
seat belt and driving on suspended license violations. Additionally, enforcement operations will be
directed to intersections with disproportionate numbers of traffic crashes.
The program will also include a "Hot Sheet" program where traffic officers will perform a court
sting operation focusing on DUI offenders with suspended or revoked driver's licenses who get
behind the wheel after leaving court.
These strategies are designed to earn media attention thus enhancing the overall deterrent effect.
The grant includes personnel costs to include 100% of the overtime salary for police officers who
work DUI saturation patrols, DUI checkpoints, red light enforcement, speed enforcement, seat belt
enforcement and suspended license campaigns.
This is a one year grant. The term of the grant will be October 1, 2009 through September 30, 2010.
DISCUSSION
Staff has been notified that the California Office of Traffic Safety has approved its grant proposal
for the entire amount requested -$46,465.
CMR:416:09 Page I of 3
The goals of this program include:
1. To reduce the number of persons killed in traffic collisions.
2. To reduce the number of person injured in traffic collisions.
3. To reduce the number of persons killed in alcohol-involved collisions.
4. To reduce the number of persons injured in alcohol-involved collisions.
5. To reduce hit & run fatal collisions.
6. To reduce hit & run injury collisions.
7. To reduce nighttime (2100 -0259 hours) fatal collisions.
8. To reduce nighttime (2100 -0259 hours) injury collisions.
9. To reduce fatal collisions at intersections.
10. To reduce injury collisions at intersections.
11. To reduce fatal collisions involving red light runners.
12. To reduce injury collisions involving red light runners.
13. To reduce fatal collisions where unsafe speed was the primary collision factor.
14. To reduce injury collisions where unsafe speed was the primary collision factor.
15. To increase seat belt Lise.
In order to accomplish the listed goals, Palo Alto Police Officers, working on an overtime basis,
will conduct two DUI saturation patrols by September 30, 2010. They will conduct one special
enforcement operation targeting red light running enforcement by September 30, 2010. They will
conduct one special enforcement operation at or near intersections with a disproportionate number
of traffic collisions by September 30, 2010. They will conduct one special enforcement operation
targeting drivers exhibiting excessive speed by September 30, 2010. They will increase total
department-wide seat belt citations as a percent of total hazardous or moving citations issued by
twenty-five percentage points from the FFY 2008 base year rate (October 1, 2007 -September 30,
2008) of0. % to ~ % by September 30, 2010. They will develop a "Hot Sheet" program to notify
patrol and traffic officers to be on the lookout for identified repeat DUI offenders with a suspended
or revoked license as a result of DUI convictions by December 31, 2009. Updated Hot Sheets will
be distributed to patrol and traffic officers every three to four weeks. They will conduct one "Court
Sting" operation to cite individuals driving from court after having their license suspended or
revoked by September 30, 2010. They will increase the total department-wide number of vehicles
impounded (30 day holds) by 5 % from the FFY 2008 base year total (October 1, 2007 -September
30, 2008) of 570 to 599 by September 30, 2010. And they will increase the Department's
enforcement index twenty-five points from the FFY 2008 base year rate (October 1, 2007 -
September 30,2008) of 5,509 to 6,886 by September 30,2010.
The Palo Alto Police Department will work to create media opportunities throughout the grant
period to call attention to the innovative program strategies and outcomes.
CMR:416:09 Page 2 of 3
RESOURCE IMPACT
Palo Alto's $46,465 allocation of funds will be received to offset supplies, travel and overtime
expenditures from OTS as reimbursements. Revenue and expenses of $46,465 will be budgeted as
part of the mid-year repoli.
No additional officer positions will be added to the police depaJiment's approved staffing
allocation; the program will be implemented with existing staff, reimbursed on an oveliime basis.
The program will be reevaluated at the conclusion of the grant to detennine the success of the
program.
POLICY IMPLICATIONS
The grant acceptance is consistent with City policy.
ENVIRONMENTAL REVIEW
This is not a project subject to the Califomia Environmental Quality Act (CEQA) requirements.
ATT ACHMENTS
Copy of grant contract with the State of California Office of Traffic Safety.
PREP ARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
CMR:416:09
MIKE DENSON ~
Police Lieutenant
1Jn'l/~ ~
DENNIS BURNS
Police Chief
~~£.. y:=
J . S KEENE
. Manager
Page 3 of 3
~'t4/ State of California -~~~ .... 1 jl-I:.-.~'!J GRANT NUMBER ~
_ ,,'!J
r:' t
-j~ r;' OFFICE OF TRAFFIC SAFETY PT1042 "~I:.-·JP ~:~t; ... GRANT AGREEMENT
PAGE 1
1. GRAl'lT TITLE
SELECTIVE TRAFFIC ENFORCEMENT PROGRAM (STEP)
2. NAME OF APPLICA1'lT AGENCY 4. GRANT PERIOD
CITY OF PALO ALTO Month -Day -Year
3. AGENCY UNIT TO HANDLE GRANT From: 10/1/09
PALO ALTO POLICE DEPARTMENT To: 9/30/10
S. GRANT DESCRIPTION
To reduce the persons killed and injured in crashes involving alcohol, speed, red light running, and other
primary collision factors. "Best practice" strategies will be conducted on an overtime basis. The funded
enforcement strategies include DUIIDriver's License checkpoints and DUl saturation patrols. This program will
also develop a "Hot Sheet" program. Court "stings" operations that will focus on DUl offenders with a
suspended or revoked driver license who get behind the wheel after leaving court. This program will also
concentrate on speed, aggressive driving and seat belt enforcement. Additionally, enforcement operations will
be directed to intersections with disproportionate numbers of traffic crashes. These strategies are designed to
earn media attention thus enhancing the overall deterrent effect.
6. FEDERAL FUNDS ALLOCATED UNDER THIS AGREEMENT SHALL NOT EXCEED: $ 46,465.00
7. ApPROVAL SIGNATURES
A. GRANT DIRECTOR B. AUTHORIZING OFFICIAL OF ApPLICANT AGENCY
NAME: Mike Denson PHONE: 650-743-9931 NAME: Dennis Burns PHONE: 650-329-2556
TITLE: Lieutenant FAX: 650-617-3120 TITLE: Interium Police Chief FAX: 650-617-3120
ADDRESS: City of Palo Alto Police ADDRESS: City of Palo Alto Police
275 Forest Avenue 275 Forest Avenue
Palo Alto. CA 94301 Palo Alto. CA 94301
E-MAIL: mike.denson@cityofpaloalto.org E-MAIL: dennis.burns@cityofpaloalto.org
~~~~" '\r'LI·Lo0'1 ~~ r/~f (Signature) (Date) (Signature) (, ate)
C. FISCAL OR ACCOUNTING OFFICIAL D. OFFICE AUTHORIZED To RECEIVE PAYMENTS
NAME: Peter Hazarian PHONE: 650-329-2346 NAME: Administrative Services
TITLE: Sr. Administrator FAX: 650-617-3120
ADDRESS: City of Palo Alto Police ADDRESS: 250 Hamilton Avenue
275 Forest Avenue Palo Alto, CA 94301
Palo Alto, CA 94301
E-MAIL: pete.hazarian@cityofpaloalto.org
17d:~,) 7-2.1. Z,o-'1
(Date)
OTS-38 (Rev. 6/06)
Page 2 (Office of Traffic Safety Use Only)
EFFECTIVE DATE OF AGREEMENT: 10/1/2009 GRANTEE CITY OF PALO ALTO GRANT NO. PT1042
8. Action No. 1 Date: 9/20/2009 10. TYPE OF AGREEMENT Initial XI Revision I Cont. I
FUND I PROGRAM TASK NO. F.Y.
Revision No. Date: 402 10-PT 2 2010
9. Action Taken 11. FUNDING DISPOSITION & STATUS
Fiscal Year Amount
Initial approval of 2010 HSP funds obligated.
2009-10 46,465.00
Total 46,465.00
Obligated This Action 46,465.00
Previously Obligated 0.00
Total Amount Obligated 46,465.00
Amount Suspended 0.00
State FY 2009-1 0
2700-1 01 -0890 (1/09) TOTAL FUNDS PROGRAMMED 46,465.00
Catalog Federal Domestic Assistance No. 20.600
12. BUDGET SUMMARY (From Schedule B Detail) -FISCAL YEAR GRANT PERIOD ENDING: 9/30/2010
2010 2009-10 TOTAL GRANT
COST CATEGORY GRANT PERIOD PRIOR GRANT TOTAL GRANT BUDGET ESTIMATE
A. Personnel Costs 43,765.00 0.00 43,765.00 43,765.00
B. Travel Expenses 2,200.00 0.00 2,200.00 2,200.00
C. Contractual Services 0.00 0.00 0.00 0.00
D. Equipment 0.00 0.00 0.00 0.00
E. Other Direct Costs 500.00 0.00 500.00 500.00
F. Indirect Costs 0.00 0.00 0.00 0.00
TOTAL FEDERAL FUNDS 46,465.00 0.00 46,465.00 46,465.00
13. GRANT APPROVAL & AUTHORIZATION TO EXPEND OBLIGATED FUNDS
A. APPROVAL RECOMMENDED BY B. AGREEMENT & FUNDING AUTHORIZED BY
NAME: DONNA BLACK NAME: CHRISTOPHER J. MURPHY
TITLE: Regional Coordinator TITLE: Director
PHONE: (916) 509-3015
E-MAIL: dblack@ots.ca.gov
Office of Traffic Safety Office 01 Tral~ 2208 Kausen Drive, Suite 300 2208 Kausen Drive, Suo e 300
Elk Grove, CA 95758-7115 E~0?r:r~ 95758 1 5 -·:f~~,· ..... ,-._-..... .. ~ .\ .. '
Signature .' \ .-~., \ l . , ,,\( Signature • \1 ,\, \., ~, ':" 'I \ ..... ') \11 -...: ... -\ ,....--,.-.
... -'-'--, I
OTS-38a* (Rev 2/07)
GRANTS MADE EASY -STEP
Overtime
SCHEDULE A
GRANT No: PT1042
GRANT DESCRIPTION
GRANT TITLE: SELECTIVE TRAFFIC ENFORCEMENT PROGRAM (STEP)
AGENCY: PALO ALTO POLICE DEPARTMENT
PROPOSED BEGINNING DATE: 1011109 PROPOSED ENDING DATE: 9130110
PROBLEM STATEMENT:
Using local data (not OTS Rankings or SWITRS) complete the table below.
Collision Type 2005 2006 2007
Collisions Victims Collisions Victims Collisions
Fatal 3 3 3 3 0
Injury 424 530 376 465 373
Page 1
Victims
0
480
Fatal Injury Killed Injured Fatal Injury Killed Injured Fatal Injury Killed Injured
Alcohol Involved 1 40 1 15 1 11 1 15 0 10 0 12
Hit & Run 1 20 1 21 1 20 1 25 0 14 0 17
Nighttime 0 28 0 36 1 23 1 32 0 27 0 36
(2100-0259 hours)
Please provide detailed answers to the following questions as part of the Problem Statement:
1. How many sobriety checkpoints did your department conduct between October 1,2007 and
September 30, 2008? (Include checkpoints from all funding sources, i.e. OTS grants or mini-grants,
and department funded)
OTS Grant #: nla; # of Checkpoints: ~(Not A YOID)
OTS Grant #: nla; # of Checkpoints: Q (Not A YOID)
Mini-Grant #: nla; # of Checkpoints: Q
# of A VOID Supported Checkpoints: .1 (In Your Jurisdiction)
# of Department Funded Checkpoints: unknown (Not OTS Funded)
Additional Information:
2. What is the average number of DUI arrests and vehicles impounded per checkpoint?
2
3. Does your agency participate in an A VOID program? yes
• A VOID the.u DUl Campaign in Santa Clara County
4. What percent of your total DUI arrests between October 1,2007 and September 30, 2008 were made
as a result of a collision?
15 %
OTS-38b GME STEP Overtime
(Rev. 10/08)
GRANTS MADE EASY -STEP
Overtime
SCHEDULE A
GRANT No: PT1042
GRANT DESCRIPTION
S. What percent of your total fatal and injury collisions October 1, 2007 and September 30, 2008
occurred at intersections?
35%
6. Describe the problem caused by red light running in your city.
During FY 07/08, 46 reported collisions resulted from running red lights in Palo Alto. We issued 444
citations for red light violations
Page 2
7. Is illegal street racing a problem in your city? If illegal street racing is a problem in your city, has
your department received training through San Diego Police Department's "DragNet" program on
how to conduct inspections of vehicles suspected of being equipped with illegal street equipment?
Street Racing is not a problem in Palo Alto.
8. What are your primary collision factors?
VC 22350 VC 22107 VC 22106
9. Seat belt citations make up what percent of all hazardous citations issued?
6%
10. What is your current administrative recovery fee for vehicles impounded for up to 30 days and how
much of the fee goes to the General Fund vs. a special Traffic Offender account? How is it used?
Recovery fee is $125.00 per vehicle. The fees go to the general fund that funds police department activities.
There is no special traffic offender account.
PERFORMANCE MEASURES:
Goals:
1. To reduce the number of persons killed in traffic collisions.
2. To reduce the number of person injured in traffic collisions.
3. To reduce the number of persons killed in alcohol-involved collisions.
4. To reduce the number of persons injured in alcohol-involved collisions.
5. To reduce hit & run fatal collisions.
6. To reduce hit & run injury collisions.
7. To reduce nighttime (2100 -0259 hours) fatal collisions.
OTS-38b GME STEP Overtime
(Rev. 10/08)
GRAl~TS MADE EASY -STEP
Overtime
SCHEDULE A
GRANT No: PTI042
GRANT DESCRIPTION
8. To reduce nighttime (2100 -0259 hours) injury collisions.
9. To reduce fatal collisions at intersections.
10. To reduce injury collisions at intersections.
11. To reduce fatal collisions involving red light runners.
12. To reduce injury collisions involving red light runners.
13. To reduce fatal collisions where unsafe speed was the primary collision factor.
14. To reduce injury collisions where unsafe speed was the primary collision factor.
15. To increase seat belt use.
Objectives:
Page 3
1. To issue a press release announcing the kick-off of the grant by November 15,2009. The press releases
and media advisories, alerts, and materials must be forwarded to the OTS Public Infonnation Officer at
pio@ots.ca.gov and copy the OTS Coordinator for approval 14 days prior to the issuance date of the
release.
2. To use the following standard language in all press, media, and printed materials: "Funding for this
program was provided by a grant from the California Office of Traffic Safety, through the National
Highway Traffic Safety Administration."
3. To email a draft of all grant-related media releases, media advisories, alerts and materials to the OTS
Public Infonnation Officer at pio@ots.ca.gov and copied to your OTS Coordinator for approval 14-days
prior to the issuance date of the release (media communications reporting the results of grant activities
such as checkpoints and saturation patrols are exempt from this requirement).
4. To submit applications for the California Law Enforcement Challenge
(http://www.chp.ca.gov/features/ciec.html) by the deadlines of March 26,2010 to OTS and:
California Law Enforcement Challenge
P.O. Box 942898
Sacramento, CA 94298-0001
Attention: Special Projects Section (052)
OTS-38b GME STEP Overtime
(Rev. 10/08)
GRANTS MADE EASY -STEP
Overtime
SCHEDULE A
GRANT No: PT1042
GRANT DESCRIPTION Page 4
5. To conduct seat belt usage surveys during September 20 I O. (A pre-agreement survey will be required to
determine the base year seat belt use rate. Go to http://www.ots.ca.gov/Grants/files/pd£lseatbeltlbelt.pdf
for survey methodology and forms.)
6. To conduct Standardized Field Sobriety Testing (SFST) training for 20 officers by March 31, 20 I O.
7. To conduct.f. DUIIDL checkpoints by September 30,2010.
Note: For combination DUIIDL checkpoints, departments must issue press releases that mention DL's
will be checked at the DUIIDL checkpoint. Also, according to the Attorney General's Office all
DUIIDL checkpoint operations must have signs reading "DUIlDriver's License Checkpoint Ahead."
To maximize effectiveness, it may be necessary to conduct a checkpoint operation at more than one
location on any given day/ night. Each checkpoint should be highly publicized and visible. No
occupant restraint citations will be issued at the checkpoints. OTS does not fund or support
independent DL checkpoints. Only on an exception basis and with OTS pre-approval, will OTS
fund checkpoint operations that begin prior to 1800 hours.
8. To conduct .f. DUI saturation patrols by September 30, 2010.
9. To conduct 1 special enforcement operations targeting red light running enforcement by September 30,
2010.
10. To conduct 1 special enforcement operations at or near intersections with a disproportionate number of
traffic collisions by September 30, 2010.
11. To conduct 1 special enforcement operations targeting drivers exhibiting excessive speed by September
30,2010.
12. To increase total department-wide seat belt citations as a percent of total hazardous or moving citations
issued by 25 percentage points from the FFY 2008 base year rate (October 1, 2007 -September 30,
2008) of Q % to .a % by September 30, 2010.
13. To develop a "Hot Sheet" program to notify patrol and traffic officers to be on the lookout for identified
repeat DUI offenders with a suspended or revoked license as a result of DUI convictions by December
31, 2009. Updated Hot Sheets will be distributed to patrol and traffic officers every three to four weeks.
14. To conduct 1 "Court Sting" operation to cite individuals driving from court after having their license
suspended or revoked by September 30,2010.
OTS-38b GME STEP Overtime
(Rev. 10/08)
GRANTS MADE EASY -STEP
Overtime
SCHEDULE A
GRANT No: PTI042
GRANT DESCRIPTION Page 5
15. To increase the total department-wide number of vehicles impounded by 2. % from the FFY 2008 base
year total (October 1, 2007 -September 30, 2008) of 570 t0599 by September 30, 2010.
16. To increase the Department's enforcement index 25 points from the FFY 2008 base year rate (October
1, 2007 -September 30, 2008) of 5509 to 6886 by September 30, 2010.
Note: To determine your department's appropriate hazardous citation level analyze your traffic
enforcement index (total hazardous citations divided by fatal and injury collisions). Northwestern
University teaches that a minimum traffic enforcement index of 25 is required to reach the citation
threshold of effectiveness in reducing traffic collisions. If your city has a large number of out-of-town
drivers, a traffic enforcement index in the 25-35 range may be more desirable. Out-of-town drivers are
generally not reached through education and voluntary compliance programs. The recommended traffic
enforcement index is a guide and not necessarily a rule.
NOTE: Nothing in this "agreement" shall be interpreted as a requirement, formal or informal, that a
particular police officer issue a specified or predetermined number of citations in pursuance of the
goals and objectives hereunder.
METHOD OF PROCEDURE:
Phase I: Program Preparation, Training, and Implementation (October 1,2009 -December 31,2009)
• The police department will develop operational plans to implement the "best practice" strategies
outlined in the objectives section.
• A draft news release will be submitted to OTS to announce the grant program.
• If necessary, an ordinance or resolution will be submitted to allow for the establishment of the "Vehicle
Impound Program" administrative tow fee.
• All training needed to implement the program will be conducted this quarter.
• All grant related purchases needed to implement the program will be made this quarter.
• In order to develop the "Hot Sheets", research will be conducted to identify the "worst of the worst"
repeat DUI offenders with a suspended or revoked license as a result of a DUI conviction. The Hot
Sheets may include the driver's name, last known address, DOB, description, current license status, and
the number of times suspended or revoked for DUI. Hot Sheets will be updated and distributed to traffic
and patrol officers every three to four weeks.
• The police department will meet with appropriate court personnel to help develop an operational plan to
conduct court stings.
• Implementation of the STEP program will be accomplished by deploying on an overtime basis personnel
at high collision locations. DUIlDriver's License checkpoint site locations will have a history of
significant alcohol involved collisions and/or DUI arrests.
OTS-38b GME STEP Overtime
(Rev. 10/08)
GRANTS MADE EASY -STEP
Overtime
SCHEDULE A
GRANT No: PTI042
GRANT DESCRIPTION
Phase II: Community Awareness (Throughout Grant Period)
• The police department will work to create media opportunities throughout the grant period to call
attention to the innovative program strategies and outcomes.
Phase III: Data Gathering and Analysis (Throughout Grant Period)
Page 6
• The police department will submit a Quarterly Performance Report (QPR) and Quarterly Evaluation
Data Form, Schedule C, within 30 days following each calendar quarter.
• The final QPR, Schedule C, and Executive Sununary are due to OTS by October 31, 2010.
• Reports shall be completed in accordance with OTS requirements specified in the Grant Program
Manual, Chapter 7, and submitted in compliance with the signed Acceptance of Conditions and
Certifications (OTS-33) included within this agreement.
METHOD OF EVALUATION:
The Office of Traffic Safety will use the QPR data to determine whether the grant was successful. OTS
will also select grants for monitoring reviews to ensure the accuracy of claimed costs. For example, OTS
will review claimed costs to ensure they are supported by time sheets, vouchers, invoices, purchases, etc.
ADMINISTRATIVE SUPPORT:
This program has full support of the City of Palo Alto Police Department and every effort will be made to
continue the activities after the grant conclusion. The Palo Alto City Council has endorsed this grant by
resolution.
OTS-38b GME STEP Overtime
(Rev. 10108)
COST CATEGORY
A. PERSONNEL COSTS
Overtime
DUUDL Checkpoints
DUI Saturation Patrols
Special Enforcement Operations
Court Stings
Overtime Benefits @ 2.45%
GRANTS MADE EASY· STEP
Overtime
SCHEDULE B· PAGE 1
DETAILED BUDGET ESTIMATE
GRANT NO. PTI042
FISCAL YEAR ESTIMATES
FFY -1
10/1/2009
Thru
9/30/2010
$20,000.00
7,600.00
11,443.00
3,675.00
1,047.00
Category Sub-Total $43,765.00
B. TRAVEL EXPENSE
In State
Category Sub-Total
C. CONTRACTUAL SERVICES
NONE
Category Sub-Total
OTS-38d GME STEP Overtime
(Rev. 11107)
$2,200.00
$2,200.00
$0.00
$0.00
TOTAL COST
TO GRANT
$20,000.00
7,600.00
11,443.00
3,675.00
1,047.00
$43,765.00
$2,200.00
$2,200.00
$0.00
$0.00
GRANTS MADE EASY -STEP
Overtime
SCHEDULE B -PAGE 2
DETAILED BUDGET ESTIMATE
GRANT NO PTI042
FISCAL YEAR ESTIMATES
COST CATEGORY FFY -1
D. EQUIPMENT
None
Category Sub-Total
E. OTHER DIRECT COSTS
Printing/Duplication
Category Sub-Total
F. INDIRECT COSTS
NONE
Category Sub-Total
GRANT TOTAL
OTS-38e GME STEP Overtime
(Rev. 10108)
10/1/2009
Thru
9/30/2010
$0.00
$500.00
$500.00
$0.00
$0.00
$46,465.00
TOTAL COST
TO GRANT
$0.00
$0.00
$500.00
$500.00
$0.00
$0.00
$46,465.00
PERSONNEL COSTS:
Overtime
GRANTS MADE EASY -STEP
Overtime
SCHEDULE B-1
GRANT No. PT1042
BUDGET NARRATIVE Page 1
Budgeted grant activities will be conducted by agency personnel on an overtime basis. Grant funded
operations may be conducted by personnel such as an Officer, Lieutenant, Sergeant, Corporal, Deputy,
Community Services Officer, Dispatcher etc., depending on the titles used by the agency. Personnel will be
deployed as needed to accomplish the grant goals and objectives.
Costs are estimated based on an overtime hourly rate range of $72.00/hr to $87.44/hr.
Overtime reimbursement (OT hourly rate and benefit) will reflect actual costs of the personnel conducting
the appropriate operation up to the maximum range specified.
Maximum Overtime Benefit Rate
Unemployment Insurance 0%
Social Security/FICA (OASDI) 0%
Workers Compensation 0%
Medicare l.45<Y<
State Disability/SDI 1.0%
Total Benefit Rate 2.45%
TRA VEL EXPENSE:
In-State
Costs are included for appropriate staffto attend conferences and training events supporting the grant goals,
objectives and/or traffic safety. Funds may be used to attend OTS approved training. Anticipated travel and
events include local mileage for grant activities and meetings, OTS Grantee Operational Training and the
Vehicle Homicide Seminar. All conferences, seminars or training not specifically identified in the SCH B 1
budget, must be approved by ors All travel claimed would be at the agency approved rate. Per diem may
not be claimed for meals provided at conferences when registration fees are paid with ors grant funds.
Note: To be eligible to attend the Vehicular Homicide Conference the grantee must have successfully
completed the POST DWI Detection and SFST course along with completion of the Accident Scene
Investigation course. The officer/detective selected to attend the Vehicle Homicide conference should
be currently assigned to work on DUI fatal collisions for their agency.
CONTRACTUAL SERVICES:
None
OTS-38f GME STEP Overtime
(Rev. 10108)
EQUIPMENT:
None
OTHER DIRECT COSTS:
GRANTS MADE EASY -STEP
Overtime
SCHEDULE B-1
GRANT No. PT1042
BIlDGET NARRATIVE Page 2
Printing/Duplication-Costs include the purchases of paper, production, printing and/or duplication of
materials associated with daily grant operations.
INDIRECT COSTS:
None
PROGRAM INCOME:
There will be no program income generated from this grant.
OTS-38fGME STEP Overtime
(Rev. 10/08)
'~ii~~#-::-PT1D42 t)l~~--:-,",. t·.' "'--~2£G8iFED~Al~~EAR.
Palo Alto Police Department10-01-.~.r;. ;"RJ -01.-08,. Q4-01 ~0~~7~01 ~O~ . : '(EAR " .,::...QTJ:L1:.::G~ ~:j'.c,q:l'!:q "" .,;..:.Q!R§... ,.. _w9TR ~ . QTR 4 TO . ,
GME STEP-OT 12-31-07 03-31-08 06-30-08 09-30-08
. , .. ~,." ·"\.'·':C""·Go:AC.'iDATAPOINTS'<
Total Traffic Fatalities -Victims 1 0
Total Traffic Injuries -Victims
Alcohol Involved Fatalities -Victims
88 70 75 92 325 0 0 0 0 \. '~,6 ::.'T
o 0 0 0 0 0 0 0 0 " '-:0'
Alcohol Involved Injuries -Victims 2 3 6 14 0 0 0 0 P :>~J)~~ 0 0 0 0
Hit and Run Fatal Collisions 0 0 0 0 0 0 o 0 0 0 0 0 ,'.0\'; .
Hit and Run Injury Collisions
Nighttime (2100 -0259 HRS) Fatal Collisions
Nighttime (2100 -0259 HRS) Injury Collisions
Intersection Fatal Collisions
Intersection Injury Collisions
Red Light Running Fatal Collisions -CVC
21453(a)
Red Light Running Injury Collisions -CVC
21453(a)
3
o
5
o
27
o
6
5 5
0 0
4 3
0 0
20 24
0 0
6 7
Speed as the PCF in Fatal Collisions 0 0 0
Speed as the PCF in Injury Collisions 31 24 29
7 20
0 0
9 21
1 1
24 95
0 0
6 25
o o
25 109
Seat Belt Use Survey Rate (from Observational :' ..': ' ...•.... ".~.,
Surveys) Grantee must complete a Pre-survey o·c:tEN"rER··pR'E~6prRA.J1QNAl.'
before operations commence and a Post-4 "' j : .. ";'S1JRVEY,RE$UtT$~": 0%
survey after operations conclude. CANNOT ... ." ~<:".'l~<i ·· ',' .~.
USE ClOT SURVEYS " .. . .: -1'
OBJECTIVE DATA POINTS I ~~~~~~~==~~ Offi~ers Trained in Standardized Field Sobriety I,'" 0 ..... l·i .... O:····;.·I~,;, 0 ':0 . ~:Q
TesttnQ (SFST) . ,.-.:.,,' '" J" ":
DUllDriver's License Checkpoints Conducted
(Grant Funded Enforcement Activity)
Vehicles Through Checkpoints
Drivers Screened at CheckQoints
Field Sobriety Tests Administered at
Checkpoints
DUI Arrests from CheckpOints
Vehicles ImQQunded at Checkpoints
Criminal (in custody) Arrests at Checkpoints
DruQ Arrests at CheckQoints
Suspended/Revoked Driver's Licenses
Unlicensed Drivers (CVC 1200....@2l
'():':~·l"";·,~·;;!~ti . 0
O. '·1 :"0 '0
0 ·10' o
'0:10
n "', I Q ,IJ) ° ·:~I ·;O '" 1"0 ° I ·O ~· ,1 ;:,'0
. '. I" ... .. 0 "':.; ,Q '." ,0
I· ..... c· '0 .. ··O:·J o
~\I .. i~g ···:
(:Y'''~''h ~',(l
0 ::<"\";:':.0 :
0 ' <::0
0": .. 1"7,':ij ,
... (j .~"?:'6
Q ,,1-. ,0 ,
" d 'l ~\'o ,
o· "~I" ··~O ,
I
0 0 0 0 i1..··.
0 0 0 0 'Q
0 0 0 0 .0 ' .
0 0 0 0 '0:·
0 0 0 0 .~)O)
0 0 0 0 o'>Q
0 0 0 0 ... r();
0 0 0 0 -;0:.:
0 0 0 0 (f
-
'E~T~R-POST~QRE~TI~NAL "" I 01
c' ~'" SURVEY RESULTS> 0 10 • .-'h.>_
"
·:;·>gNTER~fAt~ANP$EEA%fE;'l?yq!-1Agt§f{$ ., •. >;~:
0 0 0 0 0
0 0 0 0 > 0
0 0 0 0 ,0'·
0 0 0 0 ~ij
0 0 0 0 ,0
0 0 0 0 b
0 0 0 0 .. n'
0 0 0 0 '0
0 0 0 0 O.
0 0 0 0 O~
0
ReC0vered S~blen ·:\/c;·;;,::;ies '':oj_
All Other Arrests/Citations
DUI Saturation Patrols Conducted
(Grant Funded Enforcement Activity)
Vehicle Stoes
Field Sobriety Tests Administered
DUI Arrests Resulting from DUI Saturation
Patrols
Criminal (in custody) Arrests from DUI
Saturation Patrols
Vehicle Impounds Resulting from DUI
Saturation Patrols
Drug Arrests Resulting from DUI Saturation
Patrols
Recovered Stolen Vehicles
All Other Arrests/Citations
Total Departmentwide DUI arrests
Enforcement Operations Conducted Targeting
Red Light Running Violations
Enforcement Operations Conducted Targeting
Other PCF Violations at or Near Intersections
(Grant Funded Enforcement Activity)
Citations Issued (excluding citations for red
liaht runnina violations
Enforcement Operations Conducted Targeting
Drivers Exibiting Excessive Speed (Grant
Funded Enforcement Activity)
Citations Issued
Court Sting Operations Conducted
(Grant Funded Enforcement Activity)
Arrests from Court Stina Oeerations
Total Departmentwide Seatbelt Citations
Seat Belt Citations as a Percent of Total
Hazardous Citations Issued
~[~?f1:Q:~~~.~:~lZTI;~~i·.:tQ(: .: .. ,1!;:;:i~~~7~~;i~B-~i~~~~,~~:11~~,~~:-:.~ ~~~~1 '.-0
~~I~I~i~~~~:~~]~7;~~~}Q~r~~i~~~' 0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
o
o
o
o
o
0 . \ .. H:::I:~ .. }\ @~.~ "1,::" -_. ;·0-', .. ·.
0 0 0
0 0 0
J 0 0 0
I 0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0 'i~k~i;:
o o o -: ." ':~~O,;;:,)
"":d::.'::<' 'I
-"':oi'
o o o
o o o
o o o
o o o
o o o
. j~ff!M~;n~8J¥!'9~~1::;#QIY/Pl':
"~iIT(.;i.:.!D,¢jJd;tnlentwide Veh1d"b;pDUnds ,:·'t e:·,::·
(includes impounds from Checkpoints, Special I 114
Enforcement Operations and Patrols)
Departmentwide Enforcement Index
Total Departmentwide Hazardous Citations
Issued
Total Departmentwide Fatal and Injury
Collisions 88
125 156 175
70 75 93
;~1 --, ~. ~
;::·I-"!t (.:~.
o o 0
~1terglq·f;I .. ~~I~~{)Y:li~~qJ~/~;~;:I·c~
o o o
o o o o
STA TE OF CALIFORNIA. OFFICE OF TRAFFIC SAFETY
ACCEPTANCE OF CONDITIONS AND CERTIFICATIONS
OTS-33 (Rev. 09/08)
ApPLICANT AGENCY OTS GRANT NUMBER
Ci of Palo Alto Police De artment AL1042
The following attachments are included herein and constitute a part of this Grant Agreement:
1. OTS-38 -Page 1 5. Schedule C -Quarterly Evaluation Data (when required)
2. Schedule A -Grant Description 6. OTS-33 -Acceptance of Conditions and Celtifications
3. Schedule B -Detailed Budget 7. General Terms, Conditions, and Celtifications
Estimate for Grant Costs (OTS Grant Program Manual (GPM), Exhibit 6A.
4. Schedule B-1 -Budget GPM available on-line at www.ots.ca.gov)
Narrative
TERMS AND CONDITIONS
It is understood and agreed by the Grantee that grant funds received as a result ofthis Agreement are
subject to all applicable federal and state regulations governing grants and to the following applicable
controls, terms and consideration expressed in the OTS Grant Program Manual which includes but is not
limited to :
REpORTS/ CLAIMS FOR REIMBURSEMENT
1. Quarterly Performance RepOits and Reimbursement Claims must be submitted by the Grantee to
the Office of Traffic Safety (OTS) by January 30, April 30, July 30, and October 30, during each
year of grant operation. The failure to timely submit complete and correct claims within sixty (60)
days of their due dates may constitute Grantees irrevocable waiver of any right to thereafter recover
from Grantor any part of those waived grant sums which may thereafter be reallocated or reverted
by Grantor.
2. OTS will withhold or disallow grant payments, reduce or terminate grant funds, and/or deny future
grant funding anytime a Grantee fails to comply with any applicable term or condition of this Grant
Agreement or program guidelines (GPM, Chapter 3.11). This may include, but is not limited to,
the following:
• Failure to submit acceptable and timely reimbursements claims;
• Failure to submit acceptable and timely quarterly performance reports;
• Failure to submit an acceptable and timely Schedule C, Quarterly Evaluation Data (OTS-38g,
applies only when a Schedule C has been required);
• Failure to comply with requirement of the Single Audit Act (GPM, Chapter 4.11); and
3. By October 30, "continuing" grants must submit a September 30 claim and a written justification to
support carrying forward the remaining grant year unexpended funds. September 30 claims and
written justifications, supporting the carrying forward of these prior year unexpended funds
submitted after November 30 may not be processed and the prior claim (i.e., June 30) will be
considered the year-end claim in order to close out the federal fiscal year ending September 30. In
addition, these unexpended funds will be de-obligated and allocated to new grants.
SUB-CONTRACTS
Grantee may enter into subcontract(s) to perform applicable provisions of this Grant Agreement. The
Grantee is responsible for ensuring that all activities delegated to subcontractors are in support of this
Grant Agreement.
A. Grantee is the responsible party and shall remain liable for the performance of the terms,
conditions, assurances, and certifications of this Grant Agreement, without recourse to
the State, regarding the settlement and satisfaction of all contractual and administrative
issues arising out of subcontract agreement(s) entered into in support of this Grant
Agreement, including disputes, claims, or other matters of a contractual nature as well as
civil liability arising out of negligence or intentional misconduct of the subcontractor(s).
B. Nothing contained in this Grant Agreement shall create any contractual relation between
the State and any subcontractors, and no subcontract shall relieve the Grantee of its
responsibilities and obligations hereunder. Grantee agrees to be as fully responsible to
the State for the acts and omissions of its subcontractors and of persons either directly or
indirectly employed by any of them as it is for the acts and omissions of persons directly
employed by the Grantee. The Grantee's obligation to pay its subcontractors is an
independent obligation from the State's obligation to make payments to the Grantee. As
a result, the State shall have no obligation to payor to enforce the payment of any
moneys to any subcontractor.
4. Consultants and/or sub-contractors shall be selected in accordance with the grantee agency
procurement policies and procedures in order to comply with the terms of this agreement and in
accordance with OTS GPM Chapter 6 Procurement & Contract Administration and Exhibit 6-A
General Terms, Conditions, and Certifications.
The Grantee, consultant, contractor and/or sub-contractor are subject to all applicable terms and
conditions and are bound by the applicable certifications of the Grant Agreement and 49 CFR Part
18, and/or CFR Part 19 whichever is applicable.
Grantor is not obligated to make any payment under any agreement prior to final execution or
outside the terms of the sub-contract period. Contractor/Grantee Agency expenditures incurred
prior to final sub-contract execution are taken at the risk of that Contractor/Grantee Agency and will
be considered unallowable if that agreement/sub-contract is not executed.
A V AIL ABILITY OF FUNDS
5. If, during the term of the Grant award, federal funds become reduced or eliminated, OTS may
immediately terminate or reduce the Grant award sum for allowable and uncancelable grant costs
incurred following receipt of Grantor's written notice to the Grantee.
6. Funds Awarded under Catalog of Federal Domestic Assistance (CFDA) Number 20.600.
REVISIONS
7. Grant Agreement revisions are allowed in accordance with the guidelines detailed in the OTS GPM,
2
Chapter 3.9 and confonning to the revision examples provided in Chapter 3.8. All appropriate
documentation required to request a grant revision requiring Grantor's approval (i.e. budget
category increases, etc.) must be timely submitted to Grantor.
8. No alteration or variation of the tenns of this Agreement shall be valid unless made in writing and
signed by the parties hereto, and no oral understanding or agreement not incorporated herein shall
be binding on any of the parties hereto.
9. Those additional applicable tenns and conditions identified in the OTS GPM, Chapter 6, General
Terms, Conditions, and Certifications (Exhibit 6-A), are incorporated herein by reference and
made a part of this Agreement.
TRAFFIC ENFORCEMENT AGENCIES ONL v:
10. Full time Grantee traffic enforcement personnel and any equipment funded under this Grant shall
be dedicated solely to Grant supported enforcement tasks unless a criminal offense is committed in
the officer's presence and response to an officer in distress is initiated, and a riot requires that all
available enforcement personnel be committed in response.
11. By signing this document the Grantee certifies that it is not suspended or debaned from doing
business with the Federal Government.
We, the officials named below, hereby swear that we are duly authorized to legally bind the Grant
recipient to the above desctibed Grant tenns and conditions. Executed on the date and in the county
named below and made under penalty of perjury under the laws of the State of California.
GRANT DIRECTOR'S NAME
v\\\o(c \)~NSCN
GRANT DIRECTOR'S SIGNATURE ~ \v-.. ~'AS~
TITLE
~0U u[ L~ ~u )~roJA(\jT
TITLE
3
EXECUTED IN THE COUNTY OF
DA TE EXECUTED
11. -2-\-'2.00(:\
EXECUTED IN THE COUNTY OF
~J/7fI m {'kYtt
7
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: POLICE
DATE: NOVEMBER 2, 2009 CMR:415:09
REPORT TYPE: CONSENT
SUBJECT: Acceptance of Transmitta] of Police Auditor's Fina] Report For 2008
RECOMMENDATIONS
Staff is transmitting the attached the final report for 2008 provided by the Police Auditor for Council
acceptance.
DISCUSSION
On September 10,2007, the City Council voted to extend the agreement with Michael 1. Gennaco and
Robert Miller of the OIR Group to serve as the City's Police Auditor. A requirement of the contract is
for the Auditors to provide two reports per year summarizing their findings and reporting on each
investigation and disposition. Attached is the second report for 2008 (April-December 2008).
RESOURCE IMPACT
Between April and December 2008, $12,930 has been expended.
POLICY IMPLICATIONS
This report is consistent with City policies.
ATT ACHMENTS
2008 Police Auditor Final Report
CMR:41S:09 Page 1 of 2
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
CMR:415:09
Delmis Burns, Police Chief
DENNIS BURNS
Police Chief
Page 2 of2
POLICE AU-DITOR'S FINAL
REPOR T
Presented to the Honorable City Council
Ci ty of Palo Alto
April 13, 2009
Prepared by Michael Gennaco
& Robert Miller
orR Group
323-890-5425
www.laoir.colll
Palo Alto Independent Police Allditor
Fil1al Report for 2008
1. The Second Year
This report is the second of two reports covering the second year of the
Independent Police Auditor's work with the Palo Alto Police Department. It reports on
investigations initiated and complaints that have been considered since the publication or
the second year Interim Report and provides upclated information regarding
investigations tbat bad not yet been fully resolved at the time the Interim Report was
released . Additionally this Report updates the work the Auditor and the Police
Department have engaged in with regard to systemic issues.
This report also covers the Auditor's review of all applications of the Taser by
PAPD personnel in the course of detention and arrest of suspects. This complies with the
mandate of the Palo Alto City Council that the lPA expand its purvic'vv to include Taser-
relatecl incidents.
II. Taser Incidents
Since the introduction of the Taser as standard cquipment for all Palo Alto PD
patrol officers in late 2007, Department members have applied the Taser in the field to
tbree persons in separate incidents. "Ve reviewed the first incident in OLlr previous report.
We review the second and third incidents below.
To date we find the documentation ofTaser incic1ents by the Department to be
tborough. Additionally, the Taser-cam video and, where practical, the MA V video have
proven to be invaluable aids to the Auditor's monitoring of these incidents.
1
Taser Use of Force #2 -Incident 08-1777
Responding to a resident's complnillt, three officers went to check on a parked
van in which someone appeared [0 be living. The occupant of the van would not open <l
door or window to talk to the officers so one of the orncers pretended to call for a tow
truck. This ruse worked and the man in tbe van came out for a few seconds then ran back
into the van. He did not shut the door however and continued to converse with the
officers. During this conversation he showed signs of erratic behavior and possible
intravenous drug use. The officers ordered him out ofthc van and attempted to handcuff
him lo determine if he was limier the illilliellce. Thc mall strugglcd when an oCficer
grabbed his arms to handcuff him anc! lwisted away I'rom the ol'ficer. At this point, thc
officer stepped back, drew his Taser and shot it at the man. At least one of the two Taser
barbs missed the man entirely. Consequently, the Taser had no effect on the man except
to enrage him. He charged toward the officers swinging his arms in a windmill fashion
and kicking. He strllck one of the of/lcers in the face with a fist. The brief struggle with
the three officers ended when one ofthell1 lIsec1 (\ second Taser in drive stun mode twice
against the suspect's torso. The suspect said that he would give up and submitted to
handcuffing. The sllspect and the officers sustained minor cuts and scrapes.
The documentation of the incident was thorough. The Taser-cam video, MAY
videos and audio tapes were personally reviewed by the IPA and comported with the
account of the incident documented in the written reports. This Taser application
appeared to comply with Department policy. As a result of this incident, thc District
Attorney filed a felony count of resisting arrest against the van occupant. At the ensuing
preliminary hearing, thejuc!ge ruled that the ruse that caused the suspect to come out of'
his van was an improper violation of the suspect's rights and dismissed the case. The
IPA has reviewed the Court transcript and is satisfied that the ruling did not relate to th e
officer's use of the Taser or the asserti on that the Taser video evidence bad been
tampered with. The ruling docs, however presenl a challenge to PAPD officers facing
similar calls for service in the Cuture. Accordingly, we recommend that, in order to avoid
the risk of an ambiguous legal interpretation in the future, officers avoid usin g ruses in
this type of situation until they have investigated the matter sufficiently to determine
2
whether there is a basis for concluding that a crime has occurred. We recommend that
PAPD brief its officers on this approach to avoid similar unfavorable court rulings .
Arrestee's Complnint. During the pendency orthe criminal case, the man from
the van complained that the PAPD officers had used the Taser on him in violation oflhe
PAPD policy on Taser use ane! that the video evidence fl'O\11 the case had been tamperecl
with. The auditor viewed these as significant issues independent of tile criminal case (Ind
evaluated them in light of all of the evidence relating to the arrest. At thisjul1cture, vve
continue to conclude that the LIse of the Taser by both officers complied with the
Department's Taser policy. Each time a Taser was used, whether in projectile mode or
drive stun mode, the suspect appeared to meet or surpass the "active resistance"
threshold. The complainant's concern about videotape t<lmpering concerned "gaps"
present in the Taser video tapes. We consulted independent experts as well as
Department experts and their conclusion is not that the Taser tapes had been tampered
with but that the "gaps" in the tape were consistent with the activation and deactivation of
the Taser during normal use or while switching modes. Furthermore, there was little
relevant information lost, as olher continllolls videotape retrieved from the in-car video
record ings recorded the same actions.
Finally, after reviewing the tapes, we pointed out that one of the ofJIcers
needlessly used foul language toward the suspect. The ChiefofPolice agreed with this
observation and directed tbe officer's supervisors to counsel him regarding the
discou rtesy issue.
We are aware that there is potcntial civil litigation regarding this event bl'Ought by
the man who was Tasered. Wc will follow that litigation to learn whether additional
information produced during that litigation should cause us to revisit our conclusions
regarding this incident.
Tnser Use of Force #3 -I Ilciclell t 08-8631
Officers, called to the scene ora man acting suspiciously near a car, observed <I
man alone in a parked car smoking rock cocaine 1'1'0111 Ci glass pipe. They knocked on th e
closed windows of the car anci ordered the inan to get Ollt. He locked the doors,
continued to smoke the glass pipe, refused to get out, and appeared to search for
3
something in and under the car seats. The officers broke a vvinelow and usee! a Taser to
extract the man. We have reviewed the case materials and Taser video, but have not
concluded our discussions with PAPD mnnagers regarding this matter. Accordingly, we
will report our conclusions regarding the Taser use in this case in our next report.
III. Complaints, Cases llnd Issues
1. Complaint of Improper Request for Identification #C 2007-011
Synopsis: An officer pulled a motorist over for a traffic violation. During the
stop, after requesting the usual documentation from the driver, the officer asked the
driver's passenger for identification. The passenger latel' complainecl to the Department
that this was an unlawful intrusion into his privacy and was unsupported by the law.
Recommendation: Current C,lse I<IW indicates that so long as there is a
legitimate basis to stop the motorist in the first place, peace officers may briefly detain
passengers as well and request their identification. It was also clear from the
investigation, that the complainant felt harassed by Palo Alto police officers who he felt
stopped him frequently becallse of his clothing <md appearance. We commend the
Department for going beyond the narrow legal question presenled hcre ancl renching out
to the complainant to try to address his othcr concerns.
Resolution/Corrective Action: The internal affairs unit commander followed up
with the complainant to explain the legal basis for the 10 check as well as to ask about
the complainant's perception of harassment. The complainant stated that he understood
to some degree why his physical appearance coule! attracl police attention.
2. Complaint of Harassment #C 2007-015
Synopsis: A woman complained that an officer issued her and her husband fOllr
separate parking or traffic violation tickets during a five month period and was interfering
with their missionary work. The complainant failed to show up for an appointment with
the investigating supervisor who subsequently tried to reach her on several occasions
without success.
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Recommendation: The Auditor agrees with the clecision to suspend the
complaint investigation.
Resolution/Corrective Action: The cOlllplain<lI1t was notified of the case status
by letler.
3. Sexual Harassment #IA 2008-003
Synopsis: Two days prior to his retirement, an employee surprised a feillale
officer by kissing her on the lips . He did the sallle thing to another feillale officer thal
day while grabbing her head anc! forcing the physical contact. He macie remarks to the
effect that he was beyond discipline because of his impending retirement. During the
course of the internal affairs investigation, a previous incident of sexually offensive
remarks directed at a thire! feillale officer was unearthecl and investigated.
Recommendation: The Auditor agreed ,vith the Department's founded
conclusion based on the evicicilce. The Department's clisciplinary Ol)tions were limited
due to the subsequent retirement of the subject employee. Nevertheless, the Department
acted ,1S forcefully and quick Iy as it could. The subject was put on administrative leave at
the outset of tile investigation, which was completed swiftly. This was especially
important given the subordinate rank of ' the victims and sent an unequivocal message to
all members of the Department.
Resolution/Corrective Action: The Department sustained llnclings on a variety
of sexual harassment-related aclministr;ltive charges. As ,1 result of the incicients, the
Chief also decided to exercise her discretion to deny the subject a permit to carry a
concealed weapon subsequent to his retirement.
4. Complaint of Discourtesy, Hrlrassmcnt and Prohibited Use of E-mail #IA
2008-004
Synopsis: An officer discovered that someone had accessed his Department e-
mail account and sent a message out to various members of the Department that
purported to be from the officer revealing highly personal information. A supervisor
came forward and admitted that he had played the prank.
5
Recommendation: The e-m8iling stunt 8ppeared to be a poor attempt 8t humor
without serious malicious intent. Nevertheless, the supervisor displ8yed a profound lack
ofleaclership and violated 8 host ofPAPD policies, from discourtesy to making
ll1isle8ding statements to improperly 8ccessing the e-mail of8nother to violating the 8nti-
h8rassment policy. Most import8nt 01',111, the supervisor used language that could easily
have sent a message ofdiscril1lin8tion ancl disrespect throughout the Department. For
these re8sons, the Auditor was pleasecl to see the Department take this violation seriously
8l1d clo a quick and effective investigation. The Auditor 8greed with the Department's
findings 8nd the discipline imposed.
Resolution/Corrective Actiol1: All policy violations were sustained resulting in
a suspension imposed on the subject supervisor.
5. Complaint of Inadequate Service and Discourtesy #C 2008-005
Synopsis: A resident requesteci service because a large commercial truck was
unl08cling next door and blocking his vehicle. The dispatcher misunderstood the location
which caused a brief delay in the police response. The resident felt he had been treated
rudely by the dispatcher and was unh,lpPY with the PAPD declining to put tighter controls
on commercial vehicle loaciing in the area.
Recommendatioll: The Auditor reviewed the tape of the dispatch conversation
and concluded that the Department's elTort to follow up on the complaint was adequate
<md that the dispatcher was not ciiscourteous uncleI' the circul1lst8nces. We recommencled
th8t Department supervisors implement 8 qU81ity control progr8m of random monitoring
of desk response to citizen compl8ints. The Department is considering this
recommendation.
Resolu lion/Correctivc Action: A supervisor fol lowed up with the complainant
and offered to refer the matter to traffic services but the complainant hung up during the
conversation.
6. Complaint of Discourtesy anel Threatcning Improper Action #C 2008-006
Synopsis: A cat was struck by a motorist. A woman driving nearby saw the
accident and pulled over, as did the motorist. An officer saw the two cars pulled over and
6
stopped to offer assistance. The woman pointed out the severely injut'ed cat. The officer
confirmed that animal control was on the way and suggested to the woman that she might
prefer to leave. Shortly after tl](lt, the officer observed that the cat appeared to be dead.
He assured the woman that animal control was on the way and left the scene. The
woman believed that the officer's unemotional demeanor and his suggestion that she
might want to leave meant that he intended to execute the cat with his gun. She later
complained to I) APD .
Recommendation: The Auditor agreed with the investigating supervisor's
conclusion that the complainant misunderstood the otlicer's 'v\fords and intentions.
Shooting the cat under these circLlmstances woulel have been an unnecessary and bizarre
departure frolll logic and Del)altment policy guidelines. The Auditor also agreed that
cautioning the officer about taking time to explain his actions to community members in
the field is a positive precaulionary measure.
Resolu tion/Corrective Action: The complainant was informed of the
Department's findings. The olTicer was reminded to explain his actions and intentions
more plainly in the field to comlllunity members.
7. Complaint of I mpropcr Arrc~it #C 2008-008
Synopsis: Two officet·s initiated a vehicle stop 011 a vehicle with no fmnt licen se
plate. The vehicle contained one adult passenger. The other three occupants were
juveniles. The odors of alcohol and marijuana were evident to the officers. The adult
was very drunk by his own admission. The juvenile driver showed some signs of
possible alcohol impairment. As the olTicers attempteci to get the driver to exit the
vehicle in order to determine whether he was under the inOuence of alcohol , the adult
passenger loudly told the dl'ivct' not to cooperate and insulted and thre<1tened the officers.
When the driver refused to exit the vellicle, the officers pulled the adult passenger out of
his seat, handcuffed him anc! arrested him for being cirunk in public and delaying and
interfering with an investigation. The adult later filed a complaint with PAPD that the
LIse of force was excessive ancl the arrest unjustified.
Recommendation: The Auditor reviewed the investigation reports aile! the MA V
video and concluded that the arrest ancluse of force in pulling the adult passenger Ollt of
7
the car was within the PAPD use of force policy ancl (hat there was a good basis for the
administrative finding oful1lounded on the complaint. We recolllmended that the
responding officers be bl'iefed about the tactical disadval1tages and officer safety issues
that are present when oflicers reach into vehicles to extract individuals,
Resolution/Corrective Action: Tile results orthe Department's investigation
were conveyed to the complainant by letter.
8. Complaint of Inadeqllate Service #C 2008-010
Synopsis: Two pmscs were stolen ['rom a family group inside a restaurant late 011
a weekend night. One 0 f the victims callecl PAPD to report the theft and was asked to
file a report using the Department's automated on-line or telephone reporting systems.
The caller asked that the Department send an officer. The dispatcher alerted an officer in
the area who \vas then flaggecl down by the victims. The officer spoke to the victims for
fifteen minutes and, since there was no suspect information, encouraged them to file a
report on-line or at the Police Department desk 011 a weekclay. The officer later indicated
that he had not taken a report because he was monitoring the large late night crowd
outside the restaurant.
The investigation of the complaint unearthecl a relatively recent department-wide
memo acknowledging that some members of the community were dissatisfied when told
to fi Ie a report using the automated system. It strongly suggested that officers who have
already gone to a location or been nagged down should go ahead and take a report in
person. The memo acknowleclged that busy situations in the field could make tbis
impractical. Nevertheless, the Department investig,llion concluded that the officer in this
case had complied with Dep,lrtment policy.
Recommendation: The Auditor agreed that the officer's actions complied with
the letter ofPAPD policy but conclucled th<lt, had the omcer taken a brief report of the
theft, he would have servecl the sp iri t 0 f Departmen t po I icy llluch better.
Resolu lion/Corrective Action: The auditor l'ccommended that the Department
reissue the 2007 memo to the Department as a training bulletin clarifying this aspect of
cllstomer service and that the officer's unit commander specifically brief him on the
contents of the memo. The Departmellt has accepted these recommendations.
8
9. Complaint of Improper Arrest #C 2008-011
Synopsis: An officer stopped (] motorist for erratic driving in the early morning
folloyving New Year's Eve. Arter smelling the odor of alcohol, the officer administered ,1
full battery offield sobriety tests. The officer also did a preliminary test of the motorist's
blood alcohol level with a portable device which showed a reading of a few hundredths
below the presumptive impairment limit. The motorist also st8ted th8t he had taken a
prescription medication which made him drowsy. He was taken to the station and
booked for driving under the influence. The District Altol'lley decided not to file charges
in this case. Six months 18ter, the motorist wrote a letter ofcompl8int to PAPD aSSerlil1g
that there had been inadequate probable cause to arrest him and that he was denied the
opportunity to give 8 breath sample instead ofa blood sample. The blood sample showed
an alcohol level below the presumptive legal limit.
Recommendatioll: The Auditor agreed with the Department's conclusion that
the officer had 110t exceeded his authority ill arresting the sllspect and arranging for a
blood sample to be taken in view of the 8dmission regarding prescription medication. It
is 8 best practice in DUI investigations for the investigating officer to eV81uate the sLlspect
based on the tot81ity of the circumstances rnther th8n rely on any single indicator. The
driving p8ttern, the perform8nce on the field sobriety tests, the admissions about
prescription medication 8nd the preliminary blood 81cohol test collectively provided
probable calise to believe that the suspect's driving was impaired. Blood alcohol level is
not the only b8sis for making a probable calise determination of il1lpaimlent. It can also
be appropriatel y based on all of the other indicators observed and tested by the officer
who appeared 10 follow the Department's elaborate DUI protocol to the letter.
Resolution/Corrective Actioll: The investigation of this complaint was thorough
and revealed no apparent issLles regarding the Departmen t's our investigation
methodology.
10. Complaint of Jnadeqllate Service #C 2008-013
Synopsis: PAPD Detectives investigating a series of daytime burglaries spotted
two burglary sllspects moving household goods from a home into their vehicle. As the
9
suspects drove off, the detectives called in marked patrol cars to detain the suspect
vehicle. Police vehicles pursued the suspects briefly but then desisted when the pursuit
became more hazardous than Department policy ,ll1ows for non-violent felony sLlspects.
The homeowner, who came home as the burglars were fleeing, complained to the PAPD
that she felt that the officers sllOuld have tried harcJer to catch the burglars and pursued
them longer. About 35 minutes later the suspect vehicle crashed and rolled over for
unknown reasons, but the suspects fled when the Fire Department arrived. The sLlspects
were later apprehended, convicted and tied to a series of burglaries.
Recommendation: The Auditor concluded that PAPD personnel had performed
their duty in making an earnest effort to apprehend the burglars, but had called off the
pursuit in order to comply with Department policy. Upon review or the policy, the
Auditor also believes that it stl'ikes an ,lppropriate balance between the importance of
apprehending criminal suspects at the earliest possible opportunity ancl the need to
minimize the danger to the community posed by car chases. The policy is in keeping
with the best practices of progl'essive police agencies and state law regarding vehicle
pursuits of non-violent felons.
Resolution/Corrective Action: A Department Capt8in offered to meet with lhe
homeowner to explain the pursuit policy and the competing factors that underlie it but the
complainant diclnot desire this.
11. Complaint of Improper Arrest #C 2008-014
Synopsis: Officers responded to a 911 call reponing a loud physical fight
between a lllan and a woman. When they arrived at the residence the woman ned the
scene and the man rel11C1 i ned. [-Ie exp la i ned that the woman vvas his gi 1'1 friend and tha t
they lived together at the resicience. Tiley had argueci about recent social plans and she
had tried to leave the apartment. The man had blocked her egress and pushed her to
prevent her frol11 leaving the apartment. She retaliated by scratching him with her nails
and made her escape. After the fight, she had no visible marks and he had a small scratch
on his chest. The man provided the officers with the woman's cell phone number and
they found her and took her st()tement which was consistent with these facts. Based on
the statements of both panies, the officers arrestecl the man for misdemeanor domestic
10
battery. The \\oman filed a complaint that day contenciing that the police had had no
basis to arrest her boyfriend. The case was ultimately rejected for filing by the District
Attorney.
During the course of the Intern,d AfTairs investigation, the supervisor
investigating the complaint eXIJlained to the complainant that the arrest of her boyfrienci
was for a domestic battery rather than the more serious charge of willful injury of spouse,
which can be filed as a felony or a misllemeanor. When the complain,1l1t read the penal
code section, she indicated that she no 10llger wished to pursue the Lnternal Affairs
complaint of all improper arrest. The complaint investigation was nevertheless
completed, resulting in a finding of unfounded
Recommendation: The Auditor concurred with the Department's conclusion
that this was an appropriate arrest of the boyfriend and that the complaint should be
unfounded. Furthermore, the arrest was in keeping with the policy of a county-wide
protocol that emphasizes concern for lile safety or the domestic violence victim and
prevention of fllrther violence between the involved parties. We also reviewed the audio
tape of the interview with the complainant and observed that the Internal Affairs
investigator's patience, demeanor and knowledge while interviewing the complainant
was exemplary. We also found the Department's decision to complete the complaint
investigation, despite the apparent change of heart by the complainant to be the
appropriate decision. That said, we helVe recommended to the Internal Affairs unit thaL
in future instances when a complainani decides, during the course of a formal
i nvesti gation, to wi thd ra w the comp la i 11 t based on in [ormation provided by the
inves tigator, that sincere desire to withdraw should be confirmed by the head of IA in a
follow up contact. This will avoid even the appearance of subtle coercion or advocacy by
IA investigators, whose primary mission is fact gathering.
Resolution/Corrective Action: We agree with the Department's finding. Tht:
Department has accepted our recommendation to have the Internal Affairs unit
commander follow up with the complainant when he or sh e expresses a desire to
withdraw the complainant.
12. Complaint of Improper and Discourteolls Search of Person #C 2008-018
1 1
Synopsis: An officer pulled a vehicle over for expired registration. The officer
discovered that, among the four occupants of the vehicle, the driver had an outstanding
telony drug walTant, passenger A had current drug charges pending, and passenger B \vas
on probation for a drug conviction anci was subject to search as a condition of her
probation. The officer searcllcd the whick: and fOLind I"Ock cocaine anci two cocaine
pipes. In the course of the seal'ch, another passenger told an officer that passenger B was
hiding drugs on her person. Thereafter, a male officer conducted a field search of
passenger B outside her clothing and in th e presence of another officer. He did not find
any contrabancl. He called a fema le ollicer to the scene to conduct a more thorough field
search. The female officer dicl not find any contTClband either. Passenger B was arrestecl
and charged with possession of drug p;lrapllen18lid. Passenger B complained to the
Department that it was inappropriate lor a male officer to search her in this \-\'ay. She did
not object to the basis for the search, simply the method.
Recommendation: The investigation of the complaint was commenced
immecliately alld the investigator interviewed all of the I'elevant witnesses, including a
brief'telephone interview of the compl:linant, but the investigator was unable to persumle
the complainant to respo nci lor a follo\\ up intcrview ciespite repeateci appointments <llhl
phone calls. The investigator also reviewed the MA V vicieo and audio tapes, but the
searches occurred outside the video frame. Based on the initial complaint, there were no
disputed facts as to the method of the search. The central question was whether a male
officer should have conducted the initial search of the female passenger's person. PAPD
policy and training allows a male officer to field search a female suspect outside her
clothing with the officer's lingers held together to minimize intrusion. The policy
recommends that when a search is conducted by an officer of the opposite sex, another
witness officer should be present. The evidence indicatecl that the officer complied with
these guidelines. The Auditor agreed that the allegation of exceeding lawful police
powers was un founded. The Auditor further understands that, while it is generally
preferable to li se a female officer in this circuIllstance, such is not always practical. Such
searches can easily calise offense or IlllsLlllderstanding, howeve r, and it is important to
document them as well as all other searches scrupulously. We recommend that the
Department remind field officers that they will be expected to optimize the
12
documentation of field searches by utilizing the MAY system when the opportunity
presen ts itself.
Resolu tion/Corrective Action: PAPD has sent a response letter to the
Complainant. The Department has agreed to the Auditor's training recommendation.
13. Complaint of Discourteous Treatment #C 2008-022
Synopsis: An officer initiatecl ~l vehicle stop on a vehicle because the registration
was expired. He questioned the driver ,mel found that his license was suspended. There
were also problems with the registration of the vehicle. The officer counseled the fami Iy
members in the vehicle to clear up the documentation and required that the man's wife,
who had a valid license, though not in her possession, take the wheel for the rest of the
trip. The officer did not issue a citatioll.
Three men standing across the street had just lert a municipal meeting on the topic
of racially biased policing. They noticed the officer conducting a traffic stop, though
they had not seen the initial stop. They stopped to observe the officers actions and talked
about I'acial profiling. After completing the traffic investigation, the officer saw the men
and shined his spotlight on them for t\Vo to four seconds before turning the light off. He
recognized one of the men, w(lved anci drove off. The men contacted PAPD immediately
and a supervisor came out to illtel'vie\V them. They complained that the omcer had been
intentionally rude and had "as saulted '-them with the spotlight. They (llso believed that
the traffic stop might have been an example of racial profi ling.
Recommendation: The Auditor reviewed the interviews and MA V video of this
incident and determined that the officer was extremely courteous and professional
towards the motorist that he pulled over, as well as the occupants of the vehicle. A
review of this video evidence ,tiso docs not i mlicate allY c1pparent COl1cern on behalf 0 r
the vehicle occupants regarding the actions of the police officer. In fact, as noted above,
the ofJicer could well have cited and/or arrested the driver of the vehicle for driving with
a suspended license and the lack of CI valid registration but instead used his discretion to
resolve the issue without any formal action.
As for the officer's behavior toward the bystanclers across the street, there is litt Ie
dispute over thc facts. The cOl11plainClllts interpreted the officer's brief llse of the
13
spotlight by the officer as rude and provocative. The officer indicated that he lIsed his
spotlight on the occupants for officer safety reasons in order to learn more about the
identity and intent of the onlookers, a common police practice.
Based on all of tile information, in particular the video evidence, there is no bnsis
whatsoever to cstablish improper actions by the officer and no basis for the allegation that
the stop consisted of racial profiling. Accordingly, the ALiciitor agreed with the
Depmlment's linding of exonerated for these alleg<1tions . This finding signifies that the
alleged action did take place but that it diclnot violate Department policy.
Resolution/Corrective Actioll: The Department has sent a response letter to the
complninants.
IV. Cases Pellding frOI11 Interim Report
14. Complaint of Mistaken Forfeiture orCaI' #C -2007-010
Synopsis: A car was stolen and used in a crime. While PAPD conducted the
initial arrest of the suspect, the vehicle was eventually transferred to the custody of the
police departmcnt in a neighboring jurisdiction where the crime had occurred. When the
owner tried to claim the car, she found that it had been sold as abandoned property in a
lien sale. The complainant alleged that she was not provided sufficient notice regarding
the selling of her vehicle.
Recommendation: PAPD conducted all investigation of this matter and the
Police Chiefhas come to an appropriate conclusion. While both the other police agency
and the complainant shared some responsibility for the failure to care for the
complainant's property, the complain,lllt was, after all, all innocent victim of the original
car theft. Because PAPD bears partial responsibility for lhe loss, corrective action
shoulcl be takell.
ResoIu tion/Corrective Action: The Police Cbiel' has agreecito ask the city to
contact the complainant to discuss compensation.
15. Complaint of Excessive Force and Unprofessional Conduct #C 2008-009
14
Synopsis: PAPD officers assisted a police agency from another city in executing
an arrcst warrant and a search warrant at a house in Palo Alto. They arrested a suspect
staying as a guest in the house. He was wanted for a murder and an attempted murder
with <1 handgun which had occurred two cI<1Ys prior. PAPD offIcers were aware that the
gun was still outstanding and the suspect might be armed. Members of the family that
lived in the house complained that they were treated roughly and discourteously by
PAPD officers, that two of them were pushed to the ground, that they were forced to lie
on their front yard in handcu ffs for an excessive period or time, that guns were pointed
and profanities shouted at them, that the officers wore no name tags and would not
identify themselves, and that they were kept out of their home and confined on their
porch or front yard for an excessive period of timc.
Recommendatioll: While not the originating agency of the search or arrest
warrants, PAPD played a significant role in their execution. The Auditor recommended
that the Department review the incident for possible discourtesy, excessive force,
excessivedetelltion and failure to identifyoneselfin viol,ltion ofPAPD policies. The
Depmtment agl'eed to investigate this matter, met with the family to confirm the
complaint, interviewed family members and other witnesses as well as involved officers.
The Department determined that the complaints of excessive force and prolonged
detention were unfounded. The Department found that it could not determine whether or
not complainants had been treated in a discourteous or disrespectful manner, so that
complaint was deemed "unsustained." The Depmtment did sust<1in an allegation of
unreasonable conduct relating to an ol'licer slicing Ihl'Ough an outdoor canvas tarp in the
course of the search. The Dep<lrtment did not address the complaint that officers refused
to i d en ti fy themseJ ves.
The Auditor reviewecl the case file, including photographic and video evidence.
The Auditor asked for additional compan1tive analysis of the MAY videotapes and the
computerized radio traffic to determine the accuracy orthe MAY time clocks. PAPD
technical staff were able to pl'Ovide this.
The search and arrest arose from a criminal case of the most serious and urgent
nature. Forceful language and fast, even abrupt action to secure the location and clear the
individuals was justifiable under these cirCUJ11stallces. The evidence did not support the
IS
claim that the force used was excessive under the circuillstances. The Auditor conferred
with internal Affairs during the course of the investigation of these complaints and
emphasized the significance of the excessive detention complaint. While a search
warrant pursuant to a murder investigation is a high risk activity, the interests of members
of the public \-vho are not targets of the investigation 111 LiSt be respected as l11L1ch as
possible. Being handcuffed face clown on your front lawn during daylight hours in the
presence ofyoLir neighbors is ,I highly intrusive ,md porelltially humiliating experience.
The Auditor was aware that I) APD was not responsible for choosing the time of day for
the execution of the warrant nor did they plan to encounter family members on the front
porch and lawn. That is simply where the family was when the search warrant team
arrived. Nevertheless, the Auditor was troubled by the complainant's contention that
they were detained for over an hour while handcuffed and lying prone on the lawn. The
radio traffic and video evidence however makes it clem tllat the household members were
detained on the front lawn for less than fifteen minutes. This period, does not appear to
be excessive llnder the circumstances. The Auditor did however conclude that the
Department had failed to address the complainants' contention that the officers at the
scene had failed to provide their names to the householders during the incident. We
recommend tlult the Department revie\v its proceclures for providing identification to
COllllllun i ty members cluri ng I <trge po I ice operations. We a Iso recommended that plans
for futme operations of this nature include an oflicer assigned to videotape the crucial
stages of the event. The Department has agreed to do this.
Resolution/Corrective Action: The Department sent the complainants a letter
with the results of the investigation. Department executives also met with the family to
explain the department's reasoning. The Department has replaced the damaged tarp. The
Auditor commcnds the Department for meeting face-to-f,lce with the family members
after cOlllpletion of the investigation. Even before the conclusion of this internal
investigation, Department executives instituted procedural reforms arising from this
incident. Department trai ni ng sta ff was gi ven the fo Ilowi ng instruct ion for upcomi ng
training:
"[RJeinlorce the importance of providing clear, explicit commands
that anyone can follow during an arrest situation. There is no room
16
for offensive language in our profession .... arrest cOlllmands should
not include vulgarities."
Upcoming training \vill also inclucle instruction to insure that the MA V
system or other video devices are used to accurately record incidents wherever
practicable. Additionally, the Acting Police Chief has also laid out a written plan
focused on better serving the needs of householdlllembers for information and
assistance following incidents that may have"siglli ftcantly impacted the residCI1ts
of the house or the neighborhood." The plan instructs watch commanders where
appropriate to send an uninvolved supervisor to the scene to:
"Provide the citizens ,vith as much information about the legal authority
and procedures that we followed that allowed our agency to take the actions that
they took, (taking into account the public's right to know, the integrity of the
investigation and the ckfendanl's right to privacy)."
"Assist the citizens wherever possible, including how to file a claim
should we have damaged any pl'Operty in our operation."
"Ensure that all uses of force or claims of injury were ciocumented and
investigated. "
"Assist the citizen by accepting any citizen complaint."
"Provide the citizen with contact information ... to increase their
underst,lllcling of the incident."
"Assist thel~1l11ily in obtaining a copy oftllC police report should they seek
it and it is feasible to rel ease it."
"Assess whether a community meeting might be appropriate to explain
police actions or neighborhood safety."
16. Complaint of False Slntemellts and Omissiolls in Arrest Report #C-2006-0 I 0
Synopsis: A civil litigant was charged with felony vandalism against the
opposing party when PAPD investigators concluded that he had scratched the other
party's car with a metal object after losing in civil comt. The prosecution of the
vandalism case has been delayed by procedural writs that continue to work their way up
17
to higher courts of appeal. The vandalism defendant has complained to the Department
that the officer who investigated the vandalism made biased statements and omitted
evidence in his report.
Recommendation: The Auditor recoml11endecl that the department hold any
investigation ofthe complaint until after the resolution orthe criminal case. Any other
course of action would be disruptive to the court proceedings. The Department agreed.
Resolu (ion: The Department is monitori ng the status of the criminal case and has
prepared to commence the complaint investigation as soon as the criminal case is
resolved.
EJ'J'atllm: In the IPA Interill/ Report jor 200712008, the IPA described a citizen's
cOli/plaint concerning the adequacy ojpolice action dllring ([ police standby while a
jellwle spouse reilloved some clothes {{lid property frOIl/ the house tliot she alld her
husbolld shored. The IPA report synopsis illdico/ed thot the Hiife had requested the
police stalldby/or this process. This was Oil error. Injoct, the husb({lId hod requested
the police stondby. We upologizejor the lIIisclwracteriza/ioll ojthe standby request.
This[actual error, however, would hove 110 Sllbstolltive iii/pact on our conclusions or
recOllll7lendation.
Table of Complaint and Internal Affairs Investigations
Reviewed by the Auditor
April 2008 through January 2009
Case No. Casell nvestigation Allegation Results of Resolution
Type Investigation
C-2007-Citizen Complaint Improper Unfounded Results and
011 request for legal basis
identification explained to
complainant
C-2007-Citizen Complaint Harassment Investigation Complainant
015 suspended informed of
status
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IA-2008-Internal Affairs Sexual Founded Offic er retired
003 In vestigation Harassment
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IA-2008-Internal Affairs Discourtesy, Founded Suspension
004 Investigation Harassment
C-2008-Citizen Complaint Inadequate Unfounded Offer to refer
005 service and matter to traffic
discourtesy I services
I rej ected
C-2008-Citizen Complaint Threatening Unfounded Complainant I
006 improper informed of
action results; offic er
cautioned
C-2008-Citizen Complaint Improper arrest Unfounded Complainant
008 informed of
results
C-2008-Citizen Complaint Inadequate Unfounded Training bulletin
010 service and briefing
C-2008-Citizen Complaint Improper arrest Unfounded Complainant
011 for DUI informed of
results
C-2008-Citizen Complaint Inadequate Unfounded Department
013 attempt to captain offered
apprehend to meet with
burglars complainant to
explain pursuit
policy.
Complainant
informed of
results.
C-2008-Citizen Complaint Improper Unfounded Department
014 domestic policy explained
violence arrest to complainant;
procedural
change for
complaint
investiQations
C-2008-Citizen Complaint Discourteous Unfounded Complainant
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018 search of informed of I
person of results;
opposite sex department will
train on
utilization of
MAV system
C-2008-Citizen Complaint Discourteous Unfounded Complainants
022 treatment with informed of
spot light; results
possible racial
profilinq
Cases Pending from Previolls Reports
C-2007-Citizen Mistaken Founded Complainant to
010 Complaint forfeiture of car be contacted re
compensation
C-2008-Citizen Excessive force, Unfounded Complainant met
009 Co mplaint excessive for excessive with
detention and force & complainants to
unprofessional detention; discuss results;
conduct Unsustained Procedure
for changes and
discourtesy; training
Founded for
inappropriate I
destruction of
I property
C-2006-Citizen Folse Investigation None I 010 Complaint statements and pending
I
omissions in resolution of
arrest report criminal case
V. Conclusion
20
The Palo Alto Police Department has undergone a significant transition over the past
year, including the recent retirement of the Chief of Police. We take this opportunity to
note that Chief Johnson alw<lys worked with the Auditor in a spirit of mutual respect.
Civilian oversight with full ,1ccess is still an unsettling 110velty for many law enforcement
executives, but Chief.lohnson acceptccl the IPA with all attitude of progress and always
provided us with the 8ccess, dialogue, and receptivity that we requirecl to fulfill our
m8nd8te from the City. We have continueci to build offoftl18t initial t·elationship with
Department leaders during this current tr8llsitional ph8se.
21
Honorable City Council
Palo Alto, California
CITY OF PALO ALTO
OFFICE OF THE CITY AUDITOR
November 2, 2009
Finance Committee Recommendation to Accept the Auditor's Office
Review of Telephone Rates and Charges
The Auditor's Office reported the results of its Review of Telephone Rates and Charges to the
Finance Committee on September 8, 2009. The Finance Committee voted to accept the report and
forward it to Council with an agreed upon workplan from the City Manager.
The audit report found that the City could save approximately $235,000 each year if it had more
competitive rates for land line telephone service and telecommunication lines and improved
oversight of its land line telephone service. The report made three recommendations: 1)
Administrative Services Department (ASD) should obtain a phone service contract with competitive
billing rates; 2) ASD should obtain consolidated billing from the selected provider and develop a
process to review bill payments for accuracy and appropriateness; and 3) ASD should review the
current telephone oversight policies and procedures and ensure that employees are provided with
accurate information when they reimburse the City for personal calls.
ASD and the City Manager's Office reported back to the Finance Committee on October 20, 2009
with an update and workplan to implement the audit recommendations. ASD reported they had
contacted AT&T, the City's telephone service provider, to discuss options for reducing the City's
telephone charges. AT&T responded by reducing the City's long-distance rates resulting in an
immediate savings of $2,000 per month and made the rates retroactive to August 2009 resulting in a
credit to the City of $10,814. In addition, ASD staff reported that they have implemented a new
oversight structure of the telephone system, initiated an inventory of the City's telephone lines to
eliminate unused or unneeded telephone lines, and initiated the CalNet 2 contract process. ASD
staff reported that the CalNet 2 contract is anticipated to achieve the $235,000 in annual savings
identified in the audit report. The Finance Committee voted to recommend to Council that staff
pursue a Cal Net 2 contract for telephone services and return to Council for approval of the contract.
Respectfully submitted,
Lynda Flores Brouchoud
City Auditor
Attachment 1 -Auditor's Office Review of Telephone Rates and Charges
Attachment 2 -Finance Committee Minutes of September 8,2009 pgs 1-16
Attachment 3 -CMR: 404:09: Update on the Telephone Audit and Direction to Pursue the Cal Net
Contract for Telephone Service
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.-__________________________________________ ATTACHMENTI
Honorable City Council
Attn: Finance Committee
Palo Alto. California
CITY OF PALO ALTO
OFFICE OF THE CITY AUDITOR
September 8, 2009
Auditor's Office Review of City Telephone Rates and Charges
Executive Summary
We estimate the City could save approximately $235,000 each year if it had more competitive rates
for landline telephone service and telecommunication lines and improved oversight of its landline
telephone service. A number of issues with the Cay's current oversight were identified, including:
the lack of a contract with its service provider; a cumbersome billing process; potentially
inappropriate and unnecessary charges; and an inaccurate and incomplete internal call accounting
system for seeking employee reimbursement of personal calls.
, Introduction
We initiated this review in accordance with Article IV, Section 12 of the City Charter and added it to
the fiscal year 2009 work plan through our quarterly reporting process. We conducted this review in
accordance with generally accepted government auditing standards. These standards require that
we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable
basis for our findings and conclusions based on our audit objectives. We believe that the evidence
obtained provides a reasonable basis for our findings and conclusions based on our audit
objectives.
Background
In fiscal year 2009, the City paid AT&T approximately $545,000 for landline telephone service and
associated telecommunication lines. According to Administrative Services Department (ASD) staff,
the City's telephone system consists of a combination of 1) City-owned telephone lines and 2) lines
owned by the City's service provider, AT&T. The telephone system is structured as a private branch
exchange (PBX) with some off-premise extensions and business lines. According to information
provided by ASD staff, the City telephone system has approximately 1 ,400 telephone extensions
and 550 business lines. The City's Information Technology Services Division, part of ASD, manages
the telephone system.
Objective, Scope and Methodology
The objective of this review was to assess the overall cost effectiveness of the City's land line
telephone rates and charges. This review does not include cellular telephone rates and charges.
The scope of our review covered local and long distance billing and call accounting data for the
period of January through April 2009. We also reviewed telephone charges for fiscal years 2004-
Review of Telephone Rate and Charges Page 1 September 8, 2009
2009 to evaluate historical trends in telephone charges. We selected a sample of telephone calls
from the City's internal call accounting system and compared those calls to the City's actual bills to
ensure the call accounting system reports were appropriately generated.
To evaluate the appropriateness of the City's telephone rates, we compared the City's local and
long-distance rates to the rates of other local jurisdictions, including Redwood City, the cities of San
Jose, Milpitas, San Mateo, Santa Clara and Berkeley, as well as the counties of Santa Cruz and
Santa Clara.
Finding 1: The City should seek more competitive telephone rates
Based on our review, the City could save approximately $19,600 each month or $235,000 a year by
obtaining a more competitive rate structure for its telephone service. The City's telephone bills
currently detail rates based on monthly service charges, per minute usage rates, and additional
miscellaneous charges. The City pays approximately 3 cents per minute for local calls,
approximately 18 cents per minute for in-state long-distance, and approximately 32 cents per
minute for out-of-state long distance calls. These rates are more than 2 to 13 times higher than
rates paid by other jurisdictions we reviewed. The following example is a comparison of the City's
average per minute rates comp~red to the rates of jurisdictions we contacted.
Exhibit 1: Per Minute Rate Comparison
Average rate for surveyed Palo Alto's
jurisdictions (per minute) average rate (per minute)
Local Calls $.011 $.028
In-state Long Distance $.022 $.182
State-to-state Long $.024 $.321
Distance .. .. Source: Phone bills and information obtained from surveyed JUrisdictions
We estimate that if the City obtained similar per minute rates it could save more than $80,000 per
year. Most of the jurisdictions we s.urveyed participate in the statewide CALNET
telecommunications contract which provides government entities in the state with significant cost
savings on telecommunications service. For example, the City pays monthly service charges that
are more than two times higher than the monthly service rates offered by the CALNET contract. If
the City obtained monthly rates similar to those offered under the CALNET contract, it could also
save an estimated $155,000 a year.
According to ASD staff, the City does not have a contract with its provider. The lack of a contract for
phone service may weaken provider accountability and protection for the City against future rate
increases. If the City were able to utilize the CALNET contract or obtain similar contract terms, the
City would have additional protection against rate increases. In response to our findings, ASD staff
reported they are currently evaluating options to secure a competitive contract and rate structure for
telecommunications service.
Review of Telephone Rate and Charges Page 2 September 8, 2009
Finding 2: The City should enhance its oversight of telephone charges
and use
In our opinion, the current telephone billing process is inefficient and prevents a thorough review of
phone charges. Although the City provides some limited oversight of land line telephone charges, it
does not monitor several key aspects of the service and should take steps to enhance its oversight.
The City should consolidate its telephone billing
Our review found that the City's telephone bills are disaggregated, labor-intensive, and difficult to
reconcile. The City paid an average of 97 telephone bills each month during the period we
reviewed. The City receives separate bills for local and long-distance calling, resulting in multiple
bills each month for many phone lines. In addition, some extensions are billed under different billing
account numbers for local and long-distance calling, making reconciliation difficult.
The City should review telephone bills to prevent inappropriate and unnecessary
charges
Our review of the City's telephone bills identified a number of potentially inappropriate or
unnecessary charges. For instance, we identified more than 200 extensions without usage charges
during the April billing period. While some of these extensions serve legitimate purposes, such as
fire alarms or receiving in-bound calls, our analysis found that the oversight of these lines could be
improved.
We also identified additional charges that could be reduced or prevented through better oversight.
For instance, the City paid more than $100 each month in directory assistance calls during the
period we reviewed, even though there are several free directory assistance services available. In
addition, the City repeatedly paid minimum long distance charges of $20.95 per month on several
extensions even though long distance services were used infrequently on these lines. We also
identified a telephone number on the City's bill that appears to belong to a private residence. ASO
staff was not able to identify a legitimate business use for this number.
The City's internal call accounting system should be improved
The City uses an internal call accounting system, called TeleMate, to document employee calls for
the purpose of requesting reimbursement from employees for their personal calls. However, we
found this system is configured with an inaccurate rate structure and does not capture all of the
City's phone calls. As a result, the City may not be able to effectively oversee telephone use.
Although the City's policy requires employees to reimburse the City for personal calls 1, according to
ASO staff, because of technical issues with the system; it has been about two years since the City
last produced the TeleMate report to request reimbursement from employees for personal calls. In
May 2009, ASO sent the report to City departments covering calls made between January and
March 2009. If an employee reimbursed the City based on the data provided to them by the call
accounting system in May 2009, they may have overpaid the City for the three month period. The
1 The City's Telephone Use Policy, issued in 1996, requires employees to reimburse the City for personal
calls that were not authorized for communicating work schedules, emergency situations, or other work-
related information.
Review of Telephone Rate and Charges Page 3 September 8, 2009
following examples are a comparison ofthe City's actual rates compared to the rates reported in the
internal call accounting system.
Exhibit 2: Comparison of City's Actual Rates and
City's Internal Call Accounting System Rates
Type of Call Actual Average Rate Internal Call Accounting
(per minute) System (per minute)
International $2.14 $11.59
International $1.20 $3.82
State-to-state long-distance $.321 $1.39
In-state long-distance $.182 $.30
Source: Phone bills and TeleMate data for January through Apnl 2009.
Thirteen reimbursements have been filed during the period we reviewed2• However, employees
submitting telephone reimbursements would have paid the incorrect rates in the TeleMate report.
For example, one employee reimbursed the City $39.60 for personal calls made between January
and March, although the actual cost for those calls was only $22.44.
In conclusion, we recommend the following:
Recommendation 1: ASD should obtain a phone service contract with competitive billing rates.
Recommendation 2: ASD should obtain consolidated billing from the selected provider and
develop a process to review bill payments for accuracy and appropriateness.
Recommendation 3: ASD should review the current telephone oversight policies and procedures
and ensure that employees are provided with accurate information when they reimburse the City for
personal calls.
The City Auditor's Office would like to thank the staff of the Administrative Services Department and
Information Technology Services Division for their cooperation and assistance during our review
Respectfully submitted,
Lynda Flores Brouchoud
City Auditor
Audit staff: Ian Hagerman, Senior Auditor
Attachment: City Manager Response
2 The City's documentation did not specify if any of these reimbursements were for cellular phone use.
Review of Telephone Rate and Charges Page 4 September 8, 2009
Memorandum
Date: September 8, 2009
From: James Keene, City Manager t)l-
Prepared by: Lalo Perez, Administrative Services Director
Subject: City Manager Response to the Audit of City Telephone Rates
Background:
Over the past 4 months, the City Auditor's Office perfonned an audit of City Telephone
Rates. The Auditor began a review of the telephone charges when Infonnation Technology
reinitiated sending phone statements to departments. The City Manager raised simultaneous
concerns after seeing some of the statements and supported the Auditor's review. The
objective of this review was to assess the overall cost effectiveness of the City's landline
telephone rates. This review only addressed local and long-distance rates for landline
telephone service and does not include cellular or international rates and charges. It is
acknowledged there was not sufficient oversight for telecommunication services. This was
due to staff reductions, including a frozen IT Manager position, and oversight responsibilities
were not reassigned. The Infonnation Technology Division is now taking measures to
remedy the situation as detailed below. Information Technology would like to thank the
Auditor's Office for identifying areas where improvements can be made.
Overview:
The City of Palo Alto receives various telecommunication services from AT&T. The City's
telephone system is structured as a private branch exchange (PBX) with some off-premise
extensions and business lines. It should also be noted that many staff utilize cell phones in
lieu of landline telephones. The following are an example of some of the landline telephone
services and features that AT&T provides:
T)pc ~ QlIantit~ Comments
Business Access Lines (1MB, 550 These lines are used for:
IML) faxes, alann systems, credit
card machines, and
sprinkler systems. Call
details are provided in
AT&T billing.
ExtensionslPBX Trunks: AT&T provides the trunk
Direct Inward Dialing (DID) 1400 line, the City provides the
Blocks extension. A flat rate is
charged for the trunk and
usage is billed on top of
that. Call details are not
provided by AT&T;
instead, must use internal
call accounting system.
These lines bill to a 0318 or
2311 line.
Long Distance 180 hours This includes both In State
and Out of State.
Additionally, AT&T provides communication services (not reviewed in this audit) such as:
All of the above services are billed to the City by AT&T through numerous bills that totaled
approximately $540,000 for the 08/09 fiscal year.
Recommendation 1: ASD should obtain a phone service contract with competitive billing
rates.
Staff agrees with this recommendation.
To address the need for obtaining more competitive billing rates, staff is researching the
ability to utilize a State contract, "CALNET 2." This contract has aggressively negotiated
rates that went through a competitive bid process and extends to other Public Sector entities.
The contract was awarded in January 2007 and is a 5 year contract with (2) two (1) year
extensions. The Palo Alto Municipal Code stipulates, in Section 2.30.360, J, 2, in order to
utilize the CALNET 2 contract, the contract must have been awarded within twelve months
of the date the city contracts for the goods and/or services. However, staff is currently
working with the Attorney's office and Purchasing Division to execute the contract as the
original intent of the contract was for all public agencies to utilize regardless of the time
frame. Staff expects to have the CALNET 2 contract on the Council agenda by October
2009.
Recommendation 2: ASD should obtain consolidated billingfrom the selected provider and
develop a process to review bill paymentsfor accuracy and appropriateness.
Staff agrees with this recommendation.
Staff is working with AT&T to develop an appropriate billing structure for the multiple
services in the State CALNET 2 contract. To identify an appropriate billing structure, staff
will first inventory all services that AT&T provides. This includes identifying each line,
2
what it is used for, and by whom. Once the inventory is complete, staff will then group all
like services for billing. Billing groups might consist of the following:
• All business access lines (1MB, IML)
• All communication lines (T I Circuits)
• All Long Distance Charges .
By grouping services, fewer bills will need to be processed and infonnation.will be properly
organized. This will also result in easier bill ~view and less administrative processing.
Recommendation 3: ASD should review the current telephone oversight policies and
procedures and ensure that employees are provided with accurate iriformation when they
reimburse the City for personal calls.
Staff agrees with this recommendation.
Once the CAL NET 2 contract is executed, the new rates will be entered into the Internal Call
Accounting system. This will then allow IT to disperse monthly call details to departments,
with accurate rates, and will allow departments to review call details for appropriate use and
reimbursements. Staff is also revi~g the existing Telephone Use Policy and updating if
needed. For any previous reimbursements, staff is following up with individuals to
determine if appropriate amounts were reimbursed and resolving any inaccuracies.
In addition to the Auditor's Recommendations, IT is also implementing:
• New Management Oversight of the Billing
IT will distribute call details and charges monthly to departments for departmental scrutiny
of telephone usage. The expectation is that employees will review their phone bills and
. reimburse the City for any non work-related phone calls. Managers will also review for any
non work-related usage. Additionally, IT has assigned an IT Manager along with a Sr.
Technologist to provide more oversight over the telecommunications billing.
• Telecommunication Contract
IT will ensure a Contract is executed and maintained for all telecommunication services to ensure rates are always competitive and negotiated. This includes communicating with the
State to ensure the City of Palo Alto participates with any future State contracts as economies
of scale yield more competitive rates.
• Telecom Assessment RFP
IT is in the process of executing a contract that will address evaluating the current state of the
telecommunication system, perfonning a needs assessment, recommendations on
3
technologies to use, and approximate budget requirements necessary to implement. This
assessment is expected to begin November 2009.
• Cellular Phones
Cellular phones are currently under contract and rates are reviewed annually. In Apri12009,
IT staff performed an audit and usage review that resulted in rate plan changes and the
elimination of any unused devices.
4
FINANCE COMMITTEE
ATTACHMENT 2
Special l"1eeting
September 8, 2009
Chairperson Burt called the meeting to order at 7:03 p.m. in the Council
Conference Room, 250 Hamilton Avenue, Palo Alto, California.
present: Burt (chair), Klein, Morton, Schmid
1. Oral Communications
None
2. Auditor's Office Review of City Telephone Rates and Charges.
City Auditor, Lynda Brouchoud stated that the City Auditor's Office requests
that the Finance Committee review the City Telephone Rates and Charges
report and recommend the City Council accept it. The Audit was initiated in
May of 2009 when a telephone report went out to all City Departments.
Based on that report the City Auditor Staff became concerned that the City
might be paying higher rates than needed. Staff reviewed the charges for
January through April, 2009, as well as FY 08-09. Staff reviewed calls on
the internal call accounting system, called TeleMate. Staff also surveyed
Redwood City, San Mateo, San Jose, Milpitas, Santa Clara, Berkeley as well
as Santa· Clara and Santa Cruz Counties for the months of January through
April 2009. In Fiscal Year 2009 the City paid AT&T $545,000 for landline
telephone services including information lines. The City telephone system
has both City-owned lines and lines that are owned by our service provider,
AT&T. Together there are 2000 telephone lines and extensions serving the
City. The City could have annual savings of about $235,000 with a more
competitive service. Palo Alto is paying an average of $.028 cents for local
calls per-minute, versus other jurisdictions which are paying an average of
$.011. For in-state, long-distance, Palo Alto is paying $.182, and other
jurisdictions are paying $.022. For State-to-State, long-distance, Palo Alto is
paying $.321, versus other cities paying $.024. Most other jurisdictions are
participating in the state wide CALNET program which provides local
governments with cost savings for telecommunication services. In response
to our findings, ASD reported they are evaluating options to secure a
competitive contract. The second finding was about oversight with the
FIN: 090908 FIN
FINANCE COMMITTEE
phone bills. The billing detail is labor intensive, hindering the ability to have
adequate oversight. The report details some issues, such as extensions that
have been difficult to determine if they are still in use. Staff discussed these
extensions with departments and they identified legitimate uses in some
cases. Staff needs to make sure the City is paying only for the lines that are
needed to run the business. The report also details some areas where the
City could conserve money. For example, the City paid more than $100 per
month for Directory Assistance calls. Education for the Staff on various free
directory assistance services might be able to bring that dollar amount
down. There is also one example where the City is being billed for what
appears to be a private residence, not associated with the City.
Consolidated billing, in an easier format would help assure all those charges
are needed. Finally, improvements can be made to the internal call
accounting system, TeleMate. The City uses TelelVlate to identify all calls
made on each telephone line. A report is produced periodically for the
employees to use so they can determine if they made any calls that were
personal. They are asked to reimburse the City for these calls. When Staff
reviewed these reports it was discovered that they use a rate structure that
is not reflective of the actual rates the City is paying for those calls. The
City Auditor's Office recommends improvements in that report to
synchronize it with the actual rates. To recap, Staff has. three
recommendations, 1) ASD should obtain a new contract with competitive
rates, 2) the contract should provide for consolidated billing, and 3)
reimbursements from employees should be more accurate.
City Manager, James Keene said this Audit is very important and requires
immediate action. He noticed there were problems at the same time Ms.
Brouchoud did, when he received his bill. He agrees with the
recommendations. He also believes there are some larger issues to be dealt
with but for now, the City needs to get on the right contract. The hardware
is outdated and Staff has already identified that as a problem. He said the
City should rethink how they are deploying the technology.
Council Member Klein said this is a great example of why Palo Alto has an
independent Auditor. He asked for clarification of the private phone line
detailed in the report. He wanted to understand how long it had been being
billed to the City.
IVls. Brouchoud said that they looked at four months worth of billing detail
and only one month had those charges. It appeared to be a private
residence, and Staff is looking for a reason. She reiterated that the bills are
FIN: 090908 FIN 2
FINANCE COMMITTEE
difficult to sift through. In the case of this private residence, they found the
long distance calls, totaling $9.00 in charges, but Staff was not able to
confirm the billing status for local calls.
Council Member Klein asked if the person involved was a City Employee.
Ms. Brouchoud said that Staff compared the phone number to Employee
numbers and City Vendor phone numbers, and were not able to find a
match.
Council Member Klein asked if this can be stopped immediately.
Administrative Services Director, Lalo Perez apologized to the Committee for
this problem, and thanked the Auditor's Office for the report. He said that
they have not been able to locate any contracts from when they had a
manager on Staff that dealt with these issues. Staff has not renegotiated
since that manager left. AT&T did contact the IT group in 2008 offering to
renegotiate the contract. But there was a misunderstanding with Staff and
the offer was not taken. Since this problem was discovered ASD has
contacted AT&T as well as the City Attorney's Office to see what can be done
at this point. AT&T thinks there may be a way Palo Alto can be part of
CALI\lET. If so, Staff will come to the Finance Committee in October with a
letter to join. Staff will request that AT&T issue some credit to the City for
this, but he was not hopeful that request would be fulfilled. Staff has
structured oversight and management of the program utilizing an IT
Manager and Senior Technologist. If Palo Alto joins CALNET existing
conditions will need to be abided by, without the option to negotiate. Staff
will bring back this information at the October meeting.
Council Member Klein felt that if the City doesn't have a current contract
they should be able to renegotiate tomorrow morning as an interim measure
to stop the bleeding now. Then the City can discuss CALI\lET as needed for
the long term answer.
Council Member Morton said that often there are automatic renewals with
this type of contract, and wondered if that is the type of contract the City
has.
Mr. Perez said there is no contract.
FIN: 090908 FIN 3
FINANCE COMMITTEE
Mr. Keene agreed that Council Member Klein's suggestion for an interim
solution is valid.
Chair Burt asked if the figures for the cities used in the study were non-
CALNET rates.
Ms. Brouchoud said that most of the cities they surveyed are CALNET cities.
Chair Burt said that it will be difficult to judge interim rates when there isn't
a clear comparison of CALNET versus not CALNET in the study.
Council Member Schmid asked what triggered the Audit.
Ms. Brouchoud said that the TeleMate report triggered it. The rates on the
report seemed high, so ASD was asked to review the information.
Council Member Schmid asked how many oversight areas are in the City. He
wanted to know how the City Council knows there aren't others. He wanted
to understand the systematic way of finding them.
Ms. Brouchoud said there could be a number of other areas in need of
oversight,
Council Member Schmid pOinted out that in the last year and a half one
other unique situation· has been stumbled upon. Now this issue with
telephones has been stumbled upon. He asked how the Council can be
assured there aren't issues that haven't been stumbled upon yet.
Ms. Brouchoud said that she doesn't know if there can be assurances with so
many programs in the City. If a significant issue comes to Staff's attention a
review is initiated. Staff also has the Audit Workplan and a Citywide Risk
Assessment coming up. The City Auditor's Office serves a review role in a
variety of areas within the City.
Council Member Schmid said that three months ago the Finance Committee
reviewed . each City Department, reviewing efficiencies in an effort to
determine where there were ways to save money. He asked how this was
missed.
Mr. Keene said the problem became clear when Staff saw the May bills, and
the investigation started immediately. In any large organization there are
FIN: 090908 FIN 4
FINANCE COMMITTEE
lots of practices that add up to cost. The City Auditor looks at risk
assessment, factoring scale and breadth of the programs to be reviewed.
The City does not have a comprehensive process to identify every possible
situation. Programs that have the largest return have to be considered.
Ms. Brouchoud said that the City Auditor's Office independently evaluates
specific programs or departments, but those Audits are only one piece. The
City Council, the City Manager, and the individual departments are also
pieces. If the City Auditor's Office, as one compon,ent, is aware of a problem
it is reviewed.
Council Member Schmid said there should be a systematic way to take a
broader look at City programs. The Police Department Cash In Audit
reported items under $100. Yet, there is this telephone problem that would
have had a much bigger return.
Ms. Brouchoud clarified that Council Member Schmid was referring to the
Police Department Investigative Fund Audit.
Chair Burt asked what prompted the Telephone Rates and Charges Audit.
IYls. Brouchoud said that the TeleMate report showed significant potential
issues. The Auditor's Office determined that they could handle the capacity
of a limited review and proceeded.
Chair Burt agreed with Council Member Schmid that resource distribution
may need to be reviewed. Staff reviewed the Police Department Cash
Handling, and didnit find much. It was more work than payoff. How
priorities are set should be looked at. It is easy to get consumed with things
that hit unexpectedly and the regular tasks, it can be hard to look at
priorities. He asked what thoughts have been given regarding lessons
learned in this situation. He asked how priorities can be reconsidered.
Ms. Brouchoud said that she agreed with Council Member Burt regarding the
Police Investigative Funds Audit. That Audit was required even though it
was limited in scope. She said that her Staff recommended to the Finance
Committee that the requirement for that Audit be removed from the
workplan going forward.
Mr. Keene said that having an independent auditor is important as it
provides for checks and balances, but a high performing organization can
FIN: 090908 FIN 5
FINANCE COMMITTEE
not be created from audits. There needs to be a culture of responsibility
distributed across the front lines so the people dOing the work can determine
what work is a good value and then work on self-benchmarking. He
recognized that there are benchmarking processes now, where problems get
fixed. A lot of time problems aren't as cut and dry as this issue is.
Sometimes things are more fragmented and if there was a way to quantify
that they might have bigger returns as well.
Council Member Morton said that this is not unique to Palo Alto as the
utilities code does not require periodic review, allowing AT&T to continue
with whatever rate they are charging. One of the findings might include the
vendor relationship being reviewed every few years. It should be a contract
that has to go out to bid every few years.
Mr. Keene said that the City does have a lot of policies in place to assure
competitive quotes. Some vendors have complained that even though they
are the only vendor in the market Palo Alto still puts them through that
regular review. One of the take-a-ways from the phone bill problem is that
Staff is now questioning how much business is being done without contracts.
Some of the systems we have out there are triggered by the contract cycle
and if we don't have a contract we don't have a trigger.
Council Member Morton said that would create a vendor relationship issue.
Mr. Perez said that perhaps Staff can tie purchase orders to a contract to
help match data.
Council Member Schmid asked about the group of cities that were contacted
in the Audit comparison .. He stated that the public sector is the last place in
the world where traditional margins hold. He asked why Staff doesn't
include private or non-profit businesses in their comparisons.
Ms. Brouchoud said that for this review Staff was trying to find a relevant
comparison that the City would be able to achieve.
Council Member Schmid asked if the City couldn't achieve what a private
business does.
Ms. Brouchoud said that it's possible. She said that it's an ongoing debate
about what is relevant for these comparisons. Public sector records are
FI N : 090908 FI N 6
FINANCE COMMITTEE
accessible. Private organizations don't necessarily allow access to their
records.
Council Member Schmid said that landlines are landlines. He said that any
customer would be happy to share data.
Council Member Klein agreed. there was a problem. There has to be
accountability. He asked how long this has been going on. When Staff says
that they thought it was against procurement rules to look at a new contract
they should have spoken with the City Attorney. He then asked how Staff
can be sure the City has an efficient cell phone contract.
Mr. Perez said that the City switched to Verizon in 2006 and pays $167,000
for cell phones. Before switching, the bill was over $200,000. A lot of
employees use their personal cell phones just because it's easier, and that
has helped drop the bill.
Herb Borock, Palo Alto spoke regarding the non-business related phone
number listed on the Audit. He said that the City should invest the labor to
look at all the bills, not just a few months. He then appealed to the
Committee to remember, while searching for a "triage" solution, that a
competitive price isn't the same as competition. He stated that he believes
taking advantage of the CALNET contract is against City Code. He stated
that the current RFP (129375) on the Telecommunications Current State and
Future Needs Analysis response date was 12/9/08. That w.ould have been a
3 month study. Staff now says that the contract was first being done in
November. When the bidders asked if the City was on the CALNET contract,
the response was that the City will provide that information on the study
results. He said that in recent years there has been an increase in the
threshold that gets the City Council involved with a contract, and additional
categories of contracts mean certain contracts never get to Council
regardless of size. He recommended the Finance Committee revisit that. At
some pOint there might have been a contract for the phones but due some
change the Council could no longer look at these contracts. When the City
was asked if a formal assessment has ever been done to determine if the
current infrastructure will support voice over internet solutions, the response
was they have not.
Chair Burt asked for clarification about the time frame of the bills that were
reviewed.
FIN: 090908 FIN 7
FINANCE COMMITTEE
Ms. Brouchoud said it was all bills from January through April 2009.
Mr. Perez said that the State reviewed a competitive process for the CALNET
Program. It met Palo Alto's criteria so Staff believes the City can piggy back
onto the contract.
Chair Burt asked if the comparison cities were on CALNET.
Ms. Brouchoud said that most of the cities surveyed were on CALNET, but
several of them didn't confirm one way or the other.
Chair Burt said he would like to know how the CALNET rates compared with
the non-CALNET rates. He said the report referred to 1400 telephone
extensions and SSO business lines. He asked how that compares to the
number of employees that have phones, or are at desks and require
landlines.
Mr. Perez said that the City has 550 Business Access Lines which are used
for faxes, alarms, and sprinklers. He said that ~ more thorough review
needs to be done to determine if the 1400 lines used for telephones are
necessary.
Chair Burt said the Audit report referred to the over-reimbursement from
City Employees. Thirteen reimbursements were submitted from employees
during the period reviewed, he asked how many should have been
submitted.
Mr. Perez explained that more people are using their personal cell phones,
which could account for the limited number of reimbursements.
Chair Burt asked how many landlines had reimbursable charges.
Ms. Brouchoud said it was difficult to give an exact number because the
detail was not on the bills. Another factor was that some departments
submitted reimbursements from individual employees, and one department
rolled them all into one reimbursement.
Chair Burt confirmed that all of the reimbursements were overpaid but there
is no indication of what should have been paid.
FIN: 090908 FIN 8
FINANCE COMMITTEE
Mr. Perez said this process is just coming back in use and it will take time for
Staff to get back on board. The goal was not to have people standing in the
lobby to pay a 48 cent phone bill, rather to let it accumulate a few months.
So it's a skewed number since it was stopped and started so abruptly
Chair Burt said that at some point a threshold will have to be determined
otherwise it may cost more to get a reimbursement than to pay the charge.
Mr. Perez agreed that employee time, and the processing costs should be
considered.
Chair Burt said there is a reference in the report about a combination of the
lines that Palo Alto owns and lines that AT&T owns.
Chief Information Officer, Glen Loo said that Palo Alto leases some lines from
AT&T to extend the number of extensions.
Chair Burt asked if Staff has reviewed whether the lease agreement is a
good deal.
Mr. Loo said the Staff has not yet reviewed that lease.
Chair Burt said Staff should review the lease.
Mr. Perez said that is another component to reviewing the CALNET contract.
It will have to be determined if Palo Alto would get abetter deal with
CALNET or without, because whatever the State accepted as the general
terms would be what the City would have to accept.
MOTION: Council Member Morton moved, seconded by Council Member
Schmid, . that the Finance Committee recommends that the City Council
receive the Audit of the City Telephone Rates and Charges.
Council Member Morton said he appreciates the Audit and corrective action
will be taken.
Council Member Klein said the Committee doesn't have to accept standard
reports. The Auditor has three recommendations listed and those need to be
discussed. It is premature to vote on them. He said the Committee should
retain this item in Committee and request that Staff report back to the
Committee on action taken. After that the complete package, the Audit
FIN: 090908 FIN 9
FINANCE COMMITTEE
Report and Actions Taken, can be brought to the full Council. These items
deserve more attention and the Committee will want to see in more depth
how they work out. It is not appropriate to just pass on to the Council.
Council Member Morton said the Council can not instruct the Auditor to tell
the Manager what to do. The Committee should accept the Audit, pass it on
to the City Council and then direct Staff to make a response in a second
report. He said that is the normal process for Audits in government and non
profit organizations.
Mr. Keene asked if there is a time requirement between when the Finance
Committee accepts the Audit, when it goes to Council, and when Staff comes
back with a second report. He said it might be confusing to bring it to
Council without that second report from Staff. He suggested the report
might be accepted on the condition it will only go to Council when Staff
comes back with a second report.
Council Member Morton says the Finance Committee can't accept the report
at all; they can only recommend it to Council, and then direct Staff to take
actions on the Auditor's findings.
Council Member Klein said that Staff doesn't need direction as the City
Manager has already said he's going to respond to these three
recommendations.
Council Member Morton said the Committee still has to recommend the
report to the City Council.
Chair Burt suggested making it part of the Motion to accept the Auditor's
report and that the Committee holds forwarding it to Council until October
pending an action plan update from Staff.
Council Member Klein agreed the Motion could be changed to reflect Chair
BurtIs suggestion, and agreed that a complete package should be submitted
to the City Council.
Chair Burt asked if the Committee feels this should be an Amendment to the
Motion.
Council Member Klein agreed it should be an Amendment.
FIN: 090908 FIN 10
FINANCE COMMITTEE
Chair Burt asked if an Amendment would be accepted by the Maker.
Council Member Morton said that he would not accept an Amendment. He
said that it is not appropriate to intentionally withhold an Audit from the
Council.
Chair Burt said they were not intentionally withholding an Audit from the
Council. The Committee is requiring actions to be taken as immediately as
possible. Those actions would be presented to the Council at the same time
as the Auditor's Report
Council Member Klein said they are attempting to improve efficiency in
presenting a complete .package.
Council Member Schmid asked if Staff agrees with each recommendation.
He also asked if all actions would be able to be completed by October or if
they would be setting interim goals in October.
Mr. Perez said Staff would take as much action as they have authority to.
They won't, however, bring a contract to Council until it is reviewed by the
Finance Committee.
Chair Burt asked if they would get a report in October detailing concrete
actions that were accomplished as well as an Action Plan.
Ms. Brouchoud recalled that in the Ambulance Billing Audit the Committee
also had some directions for Staff. Using that Audit as an example, the
Committee should accept this Audit as it stands alone, and then direct Staff
to take action.
Chair Burt said that it would clarify what the intention of the Amendment is.
He asked if Council Member Klein would like to restate his Amendment.
Council Member Klein said he didn't know what it meant to accept the
report. The Committee is taking the Auditor's recommendations and telling
Staff we need more specifics and directing them to act on it immediately.
His goal was to accept the recommendations and forward them to Council
when they are complete.
FIN: 090908 FIN 11
FINANCE COMMITTEE
SUBSTITUTE MOTION: Council Member Klein moved, seconded by Chair
Burt to accept the recommendations made in the Audit Report and forward
them to the Council at a later date, with a complete response from Staff.
Mr. Keene asked if there was an Auditor protocol so l"1s. Brouchoud can
discharge her responsibility in relation to this Audit, allowing the requested
functions to move from the Auditor's responsibility to that of Staff.
Ms. Brouchoud said that the Auditor's Office would request the Finance
Committee accept the report and agendize it on the Council Consent
Calendar. The recommendations will still be followed up on by the Auditor's
Office and can be reported to the Committee.
Chair Burt said that Staff has given a partial response to the Audit
recommendations. The Committee is saying this issue is serious enough to
require a more complete response and a more concrete plan when the Audit
goes before Council. He said it is not intended to be a full hand off right now
from Auditor to Staff. The Committee would expect the full hand off in
October after Staff's response.
Council Member Morton said that this action would compromise the
independence of the Auditor. Her report can not be dependent on what Staff
does. She reports to the Council. The Committee should make a
recommendation to Council to accept the Audit as it was prepared.
Council Member Schmid asked if they could break it up into two parts and
accept the report, and then direct Staff to come back to Finance Committee
Chair Burt asked if that meant the report goes forward to Council absent of
adequate and concrete response from Staff.
,
Council Member Schmid said that could be added to the second part of the
Motion.
Council Member Burt agreed that was what Council Member Klein wanted.
Council Member Morton said that the there are often Audit recommendations
that take years to fulfill and setting a precedent that holds the Audit reports
until the actions have been implemented is a bad one.
FII\I: 090908 FIN 12
FINANCE COMMITTEE
Chair Burt said this is not a request to hold the report for full
implementation, rather to hear back in October, a more concrete
implementation plan, along with actions that will have been taken by that
time.
Council Member Klein said that an implementation plan wouldn't compromise
the Auditor's professional integrity when she isn't responsible for the
implementation.
Council Member Schmid said the Substitute Motion states that the Finance
Committee will accept the Audit report and refer it to Council.
Council Member Burt said that it will include actions that have been taken by
that time.
Mr. Keene said that it will at least identify a path to take.
Council Member Morton said the Substitute Motion makes the Auditor's
report accepted based on Staff performance. The Auditor's role is to define
the problem, get Staffs comment and report to Council. It is not to manage
implementation.
Council Member Schmid said he thought they were accepting the report
along with the Staff action.
Council Member Morton said tying the Auditor's report to Staff action is not
appropriate. .
Ms. Brouchoud said that the Auditor's report is considered complete.
Auditing standards require that they seek a response but it is considered
complete.
Chair Burt said there is no request in the Motion for the Auditor to add to the
report after the Staff takes action. It only concerns when the Finance
Committee forwards the report to Council.
Council Member Klein said that it comes back to the Committee again.
Mr. Keene asked if the Auditor's goal was to get the report to the Council or
was it to have the Council accept the report.
FIN: 090908 FIN 13
FINANCE COMMITTEE
Ms. Brouchoud said typically the report is accepted in its totality. She said
she understood that the Finance Committees intent is for Staff to hold off
bringing the report to Council.
Council Member Klein said his goal is to have an efficient process.
Council Member Burt said that it would prevent the full Council from going
through this same discussion only to forward it back to the Finance
Committee.
Council Member Morton said the Finance Committee doesn't have the legal
authority to withhold an Audit. They don't have the authority to approve it.
The Council approves it. Through Audit courtesy it comes through the
Finance Committee, but the full Council approves. This is a bad precedent
because .it means the Auditor can't issue her reports until conditions are tied
to them. The whole importance of independence is that she issues reports
and then Staff acts independently. If the Committee has the votes to do
this, then it will be done. But it is illegal and not within our powers. And if
there aren't enough votes it's split and it goes to Council anyway.
IVir. Keene said that he thinks the City Auditor could have the discretion to
choose what she would do on her own.
Council Member IViorton said she wouldn't have a choice; she would have to
send it to Council.
Mr. Keene said the intent isn't to undermine the Auditor's independence but
trying to accommodate both things without compromising her independence
is harmless.
Chair Burt said he doesn't see the difference. This is an agenda item being
carried to October. The agenda item is being extended into two Finance
Committee meetings. At this point a Motion that accepts the Audit and
action to hold off presenting it to Council until it has a more meaningful
response from Staff is being made. He said the action is not illegal.
Council Member Schmid asked if the workplan comes back to the Finance
Committee, and is discussed, does that end up modifying the changes· and
extending this process.
FIN: 090908 FIN 14
FINANCE COMMITTEE
Chair Burt said the Committee will make a decision in the workplan to move
the Audit to Council after the October meeting. If there are disagreements
the Committee will vote on them. This Motion says that the Committee will
make a decision on the workplan and move the Audit forward to Council
after the October meeting with whatever workplan is agreed upon.
Council Member Schmid asked if it was part of the Motion that the
Committee will forward it in October.
Council Member Klein said he would add it.
Chair Burt clarified that as part of the Motion.
SUBSTITUTE MOTION RESTATED: Council Member Klein moved,
seconded by Chair Burt to accept the audit and forward the audit report to
the Council after the October Finance Committee meeting, with an agreed
upon workplan from the City Manager.
Mr. Keene said that Staff won't have a complete plan in October. He said
the real issue is getting a better price as soon as possible. The ancillary
issues are secondary. This whole conversation started with trying to
determine how' quickly improvements can be made.. He reminded the
Committee that Mr. Perez reported that Staff could get the CALNET option to
Council in October. The Committee also asked for other competitive
possibilities.
Chair Burt said the Committee is not looking for Staff to complete the
implementation of the workplan at this pOint. The Committee will be looking
for a more complete workplan, along with any actions Staff will have
completed by that time. '
SUBSTITUTE MOTION PASSED: 3-1 Morton no
Council Member Morton said he was voting \'no" with all due respect to the
position it puts the City Auditor in.
Chair Burt said the City Manager was hired to reform and create a cultural
change within City Administration, a change the City Council thought was
required. This report reaffirms that things need to change. He felt progress
was being made in the right direction. He acknowledged change can be
painful, but problems don't get solved until they are discovered, admitted to,
FIN: 090908 FIN 15
FINANCE COMMITTEE
and then acted on. When a task can't get covered it must be brought into
the open. During budget review, issues like this were discussed in an effort
to plan for them. If Staff determines they will no longer be able to
accomplish tasks such· as oversight of phone bills, it must come before
Council. Council must determine if the cost of giving up a priority is worth
it. For example, Staff is saying that there will now be oversight with the
phone bills, but they haven't said what it's going to cost. Council should
know what priorities Staff is going to set aside in order to find time to review
the phone bills. Council should know how many hours this oversight will
cost· Staff. If it is only five hours a month then the priority should never
have been given up in the first place. If it's going to be hundreds of hours
we need to work to find a solution. He stated that he also wants Staff to
work with AT&T to get a retroactive credit for these charges.
Council Member Klein agreed that the City Manager inherited some
problems. He didn't agree about the trade offs with Staff production. He
said the problems were not caused by one person retiring. He said it was
difficult to understand why rates have gone up after this person left. He
agreed that Staff must negotiate with AT&T. It's a delicate balance between
maintaining loyal customers and profiting. They may have had a legal
obligation to provide for us better than they did.
3. Review of Preliminary FY 2009 Revenue Analysis.
Deputy Director Administrative Services, Joe Saccio said that the Finance
Committee requested early information on year-end revenue performance.
The Revenue Tax Sales, Transient Occupancy Tax (TOT), Documentary
Transfer Tax, were very close to projected budget. Other non-tax sources
were below projected budget such as Fines and Permits. The variances in
revenue for 2008-2009 were below those in 2007-2008. For example, sales
tax was 2.5 million below the prior year. TOT was $900,000 below and
Documentary Transfer Tax was $2.3 million below last years actual returns.
Attachment A has variances from the Adjusted to the Actual Budget. The
variances in the last two columns are what we received. in 2008-2009
compared to 2007-2008. All of these areas that were short are all
economically sensitive areas where issues such as the credit crisis and the
drop in portfolio prices affect them. Palo Alto's neighbors are experiencing
the same down turns. Mountain View's sales tax is 6.5 percent below
budget and prior year TOT was 25 percent below. In Sunnyvale they were
on target with sales tax for this year, but they are 14 percent below last
year and TOT was 22 percent below. Staff is cautious about 2009-2010.
FIN: 090908 FIN 16
TO: HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM: CITY MANAGER
DATE: OCTOBER 20, 2009
ATTACHMENT 3
DEPARTMENT: ADMINISTRATIVE
SERVICES
CMR: 404:09
SUBJECT: Update on the Telephone Audit and Direction to Pursue the CalNet Contract
for Telephone Services
RECOMMENDATION
Staff recommends that the Finance Committee recommend to Council to direct. staff to pursue a
CaINet 2 contract for telephone services and return to Council for approval of the contract.
BACKGROUND
At the September 8 Finance Committee meeting the City Auditor presented a report on the
review of City Telephone Rates and Charges (Attachment A). The key finding in the report was
that the City could save approximately $235,000 each year if it had more competitive rates for
landline telephone service. Several other findings were identified that were the result of a lack of
oversight by the Information Technology Division of the Adti.1inistrative Services Department
(ASD). The report's findings were grouped in three recommendations: 1) ASD should obtain a.
phone service contract with competitive billing rates; 2) ASD should obtain consolidated billing
from the selected provider and develop a process to review' bill payments for accuracy and·
appropriateness; and 3) ASD should review the current telephone oversight policies and
procedures and ensure that employees are provided with accurate information when they
reimburse the City for personal calls.
,
The City Manager's response is included in this report as Attachment A. The Administrative
Services Department assisted in preparing the response and agrees with the Auditor's
recommendations. This report includes a recommenqation that would direct staff to pursue a
CalNet contract for telephones services that would address the Auditor's recommendation
number one.
The Finance Committee directed staff to follow-up on a number of issues. This report also
provides a status report on the Finance Committee's direction.
CMR:404:09 Page 1 ofS
DISCUSSION
As directed by the Finance Committee on September 8, staff immediately contacted AT&T to
discuss possible options for reducing the City's telephone charges. AT&T responded by
immediately reducing long-distance rates from an average of $0.26 per minute to $0.06 per
minute. The City averages 178 hours of long distance per month or $2,792 under the old rates
and $644 under the new rates. Reducing the long-distance rates will result in a savings for the
City of approximately $2,000 a month, however the majority of costs the City incurs is for local
telephone service. In addition, AT&T made the rates effective retroactive to August 2009
resulting in a credit to the City of $10:,814. The new long distance rates will be in place until the
CalNet rates for long distance take effect once such a contract is in place, pending Council
direction and approval.
The majority of the City's telephone charges are for local calling. In this area AT&T was not
willing to immediately adjust rates and they did not-provide a credit. AT&T claimed that it was
not within the company's ability to immediately adjust rates due to inflexibility within the
regulatory system. A new contract must be in place for new rates to take effect. AT&T claimed
'that new rates take up to three months to put in place. Staff is exploring administrative action
against AT&T that would result in the filing of a claim with the California Public Utilities
Commission to obtain -further credit for these overpayments.
In order to get a contract in place, the City immediately began to pursue a CaiNet contract.
Pending Council direction staff would expect to return to the Council with a CalNet contract for
approval by mid November.
One of the questions raised by the Finance Committee was what other local jurisdictions utilized
the CalNet contract for telephone services. A list of other local jurisdictions on CalNet is below:
Town of Atherton
City of Burlingame
City of Campbell
City of Cupertino
City of East Palo Alto
City of Los Altos
City of Milpitas
City of Mountain View
Redwood City
City of San Jose
City of San Mateo
City of Saratoga
City of Sunnyvale
State-wide there are 303 cities and an estimated 1,800 agencies in total utilizing the CalNet
contract.
Another follow-up -step that staff completed was the identification and termination of a
residential line. The total amount of long distance charges to this line, as confirmed by AT&T,
was approximately $100 over eight years. The line was terminated in October.
Another follow-up step involved confirming that all the City's lines are indeed in use and needed
in the future. This inventory has been started. It is anticipated that when this review is
completed within three months and the City will be able to eliminate a number of lines that are
CMR:404:09 Page 2 of5
currently not in use. In most cases these will be lines that were used by modems or fax machines
that are no longer in use due to technology advancements.
As stated in the City Manager's response (Attachment B) ASD staff will implement
organizational changes to ensure proper oversight of telephone services going forward. These
include the assignment of telephone service monitoring to a staff person and oversight of all
telephone services and contracts to a manager. Specific oversight steps include.:
• Ensuring that bills are distributed to departments monthly for their review
• Holding biennial meetings with AT&T to ensure that the contract is current
• Ensure continuing competitiveness of rates and review of other vendors
• Reviewing telephone line inventory annually to identify any unused lines
• Review requests for addition lines
Below is an action plan and timeline for accomplishing the objectives of new rates and greater
oversight of the City's telephone services. Some of these steps have been completed, many are
in progress and others will be completed in 2010 once a new contract is fully implemented. A
status report on the results of completing the action plan will occur in mid 2010.
Task Date Status
Implement new oversight 8/09 Staff implemented a new oversight structure
structure for telephone charges that includes staff and supervisor oversight.
Immediately achieve reduced 9110/09 Completed for long-distance rates. Reduced
rates without a new contract rates for local service will be completed with a
new contract.
Confirm CaINet cities 9116/09 Complete.
Research available alternatives 1015/09 Staff contacted two major telephone services
·toAT&T providers and they cannot fulfill the City's
needs. Staff is awaiting a response from one
company.
Researched and canceled 10/9/09 Complete.
residential line
Meet with AT&T and discuss 10/13/09 Staff met with AT&T on three occasions. Staff
credit and contract options is awaiting a final response from AT&T
regarding a possible credit for local service and
to confinn the timeline for implementing a
CaINet 2 contract.
Initiate CaIN et 2 contract 10/13/09 Staff has initiated the preparation phase of the
process CalNet 2 contract process. Pending Council
direction staff is prepared to complete the
process and provide Council with a contract for
approval in November.
Revise policies 11110/09 Staff is in the process of revising the telephone
reimbursement policy, the telephone usage
policy and the new line and service policy.
CMR:404:09 Page 3 of 5
Staff expects to complete this task in
November.
Implement CaIN et 2 contract 12/1109 Pending Council approval in November staff
(pending Council approval) (target) would expect to implement the CalNet 2
contract in December.
Complete inventory of existing 1/4/09 Staff expects to complete the inventory of lines
lines and cancel unused lines (target)' and the cancellation of unused. lines by
December.
Start realizing new rates for 3/1109 Once the CalNet 2 contract is in place it will
local service under the CaiNet 2 (target) take AT&T approximately three months to
contract implement the new rates into the City's
charges.
Implement bill consolidation 411/09 After the inventory of lines and the transition
(target) to CalNet is complete bill consolidation can be
initiated.
Status report 6/09 After several months on the CaINet 2 contract
staff will evaluate the new rates and other
changes to ensure expectations have been met.
Ongoing oversight Ongoing Under the new oversight structlU'e staff will
closely monitor telephone services to ensure
compliance with the new rates and policy
changes .
. RESOURCE IMPACT
Immediate savings on long-distance charges will be realized by reduced rateS that are now in
effect. The estimated monthly savings is $2,000. A one-time credit of$10,814 has been realized
by the City. Ooing forward, the City expects to save approximately $235,000 annually once a
new CalNet contract is imple~ented with AT&T, pending Council approval.
POLICY IMPLICATIONS
Approval of this contract is consistent with existing City policies.
ENVIRONMENTAL REVIEW
This is not a project under CEQA.
ATTACHMENTS
Attachment A: Auditor's report
Attachment B: City Manager's response
CMR:404:09 Page 4 ofS
PREPARED BY:
. D~:JMBERci~
Assistant Director, Administrative Services
DEPARTMENT HEAD APPROVAL:
inistrative Services
CITY MANAGER APPROVAL:
CMR:404:09 Page 5 of5
Honorable City Council
Attn: Finance Committee
Palo Alto, California
ATTACHMENT A
CITY OF PALO ALTO
OFFICE OF THE CITY AUDITOR
September 8, 2009
Auditor's Office Review of City Telephone Rates and Charges
Executive Summary
We estimate the City could save approximately $235,000 each year if it had more competitive rates
for landllne telephone service and telecommunication lines and Improved oversight of its landline
telephone service. A number of Issues with the City's current oversight were identified, including:
the lack of a contract with Its servlc~ provider; a cumbersome billing process; potentially
inappropriate and unnecessary charges: and an inaccurate and incomplete internal call accounting
system for seeking employee reimbursement of personal calls.
Introduction
We initiated this review In accordance with ArtIcle IV, Section 12 of the City Charter and added It to
the fiscal year 2009 work plan through our quarterly reporting process. We conducted this review In
accordance with generally accepted government auditing standards. These standards require that
we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable
basis for our findings and conclusions based on our audit objectives. We believe that the evidence
obtained provides a reasonable basis for our findings and conclusions based on our audit
objectives.
Background
In fiscal year 2009, the City paid AT&T approximately $545,000 for land line telephone service and
associated telecommunication lines. According to Administrative Services Department (ASO) staff,
the City's telephone system consists of a combination of 1) City-owned telephone lines and 2) lines
owned by the City's service provider. AT&T. The telephone system Is structured as a private branch
exchange (PBX) with some off-premise extensions and business lines; According to Information
provided by ASO staff, the City telephone system has approximately 1,400 telephone extensions
and 550 bUsiness lines. The City's Information Technology Services Division, part of ASO, manages
the telephone system.
ObJective, Scope and Methodology
The objective of this review was to assess the overall cost effectiveness of the City's landline
telephone rates and charges. This review does not include cellular telephone rates and charges.
The scope of our review covered local and long distance billing and call accounting data for the
period of January through April 2009. We also reviewed telephone charges for fiscal years 2004-
Review efTelephene Rate and Charges Page 1 September 8. 2009
2009 to evaluate historical trends In telephone charges. We selected a sample of telephone calls
from the City's internal call accounting system and compared those calls to the City's actual bills to
ensure the call accounting system reports were appropriately generated.
To evaluate the appropriateness of the City's telephone rates, we compared the City's local and
long-distance rates to the rates of other local Jurisdictions, including Redwood City, the cities of San
Jose, Milpitas, San Mateo, Santa Clara and Berkeley, as well as the counties of Santa Cruz and
Santa Clara.
Fln~ing 1: The City should seek more competitive telephone rates
.' Based on our review, the City could save approximately $19.600 each month or $235,000 a year by
obtaining a more competitive rate structure .for Its telephone service. The City's telephone bills
currently detail rates based on monthly service charges, per minute usage rates, and additional
miscellaneous charges. The City pays approximately 3 cents per minute for local calls,
approximately 18 cents per minute tor In-state long-distance. and approximately 32 cents per
minute for out-ot-statelong distance calls. These rates are more than 2 to 13 times higher than
rates paid by other Jurisdictions we reviewed. The following example is a comparison ofthe City's
average per minute rates compared to the rates of jurisdictions we contacted.
Exhibit 1: Per Minute Rate Comparison
Average rate for surveyed Palo Alto's
Jurisdictions (per minute) average rate (per minute)
Local Calls $.011 $.028
In-atate Long Distance $.022 $.182
State-to-state Long $.024 $.321
Distance
Source: Phone bIlls and Information obtained from surveyed Jurisdictions
We estimate that it the City obtained similar per minute rates it could save more than $80,000·p.er
year. Most of the jurisdictions we surveyed participate in the statewide CALNET
telecommunications contract which provides government entities in the state with significant cost
savings on telecommunications service. For example, the City pays monthly service charges that
are more than two times higher than the monthly service rates offered by the CALNET contract. If
the City obtained monthly rates similar to those offered under the CALNET contract, it could also
save an estimated $155,000 a year.
According to ASO staff, the City does not have a contract with its provider. The lack of a contract for
phone service may weaken provider acCountability and protection for the City against future rate
increases. If the City were able to utlllze the CALNET contract or obtain similar contract terms, the
City would have additional protection against rate increases. In response to our findings, ASO staff
reported they are currently evaluating options to secure a competitive contract and rate structure for
telecommunications service. .
Review of Telephone Rate and Charges Page 2 September 8, 2009
Finding 2: The City should enhance its 'oversight of telephone charges
and use
In our opinion, the current telephone billing process is inefficient and prevents a thorough review of
phone charges. Although the City provides some limited oversight of landline telephone charges, it
does not monitor several key aspects ofthe service and should take steps to enhance its oversight.
The City should consolidate Its telephone billing
Our review found that the City's telephone bills are disaggregated, labor-intensive, and difficult to
reconcile. The City paid an average of 97 telephone bills each month during the period we
reviewed. The City receives separate bills for local and long-distance calling, resulting in multiple
bills each month for many phone lines. In addition, some extensions are billed under different billing
account numbers for local and long-distance calling, making reconciliation difficult.
The City should review telephone bills to prevent inappropriate and unnecessary
charges
Our review of the City's telephone bills Identified a number of potentially inappropriate or
unnecessary charges. For Instance, we identified more than 200 extensions without usage charges
during the April billing period. While some ofthese extensions serve legitimate purposes, such as
fire alarms or receiving in-bound calis, our analysis found that the oversight ofthese lines could be
improved.
We also identified additional charges that could be reduced or prevented through better oversight.
For instance, the City paid more than $100 each month in directory assistance calls during the
period we reviewed, even though there are several free directory assistance services available. In
addition, the City repeatedly paid minimum long distance charges of $20.95 per month on several
extensions even though long distance services were used infrequently on these lines. We also
Identified a te.lephone number on the City's bill that appears to belong to a private residence. ASO
staff was not able to identify a legitimate business use for this number.
The City's internal call accounting system should be improved
The City uses an internal call accounting system, called TeleMate, to document employee calls for
the purpose of requesting reimbursement from employees for their personal calls. However, we
found this system is configured with an Inaccurate rate structure and does not capture all of the
City's phone calls. As a result, the City may not be able to effectively oversee telephone use.
Although the City's policy requires employees to reimburse the City for personal calls 1, according'to
ASO staff, because of technical Issues with the system, it has been about two years since the City
last produced the TeleMate report to request reimbursement from employees for personal calls. In
May 2009, ASO sent the report to City departments covering calls made between January and
March 2009. If an employee reimbursed the City based on the data provided to them by the call
accounting system In May 2009, they may have overpaid the City for the three month period. The
1 The City's Telephone Use Policy, issued in 1996, requires employees to reimburse the City for personal
calls that were not authorized for communicating work schedules, emergency situations, or other work-
related information.
Review of Telephone Rate and Charges Page 3 September 8. 2009
following examples are a comparison ofthe City's actual rates compared to the rates reported in the
Internal call accounting system.
Exhibit 2: Comparison of City's Actual Rates and
City's Internal Call Accounting System Rates
. Type of Call Actual Average Rate Internal Call Accounting
(per minute) System (per minute)
International $2.14 $11.59
International $1.20 $3.82
State"to-state long-distance $.321 $1.39
In-state long-distance $.182 $.30
Source: Phone bills and TeleMate data for January through April 2009.
Thirteen reimbursements have been filed during the period we reviewed2• However, employees
submitting telephone reimbursements would have paid the Incorrect rates in the TeleMate report.
For example, one employee reimbursed the City $39.60 for personal calls made between January
and March, although the actual cost for those calls was only $22.44.
In conclusion, we recommend the following:
Recommendation 1 = ASD should obtain a phone service contract with competitive billing rates.
Recommendation 2: ASD should obtain consolidated billing from the selected provider and
develop a process to review bill payments for accuracy and appropriateness.
Recommendation 3: ASD should review the current telephone oversight policies and procedures
and ensure that employees are provided with accurate Information when they reimburse the City for
personal calls.
The City Auditor's Office would like to thank the staff of the Administrative Services Department and
Inform~tion Technology Services Division for their cooperation and assistance during our review
Respectfully submitted,
Lynda Flores Brouchoud
City Auditor
Audit staff: Ian Hagerman, Senior Auditor
Attachment: City Manager Response
2 The City's documentation did not specify If any of these reimbursements were for cellular phone use.
Review of Telephone Rate and Charges Page 4 September 8, 2009
ATTACHMENT B
Memorandum
Date: September 8, 2009
From: James Keene, City Manager t?l-
Prepared by: Lalo Perez> Administrative Services Director
Subject: City Manager Response to the Audit of City Telephone Rates
Background:
Over the past 4 months, the City Auditor's Office perfotmed an audit of City Telephone
Rates. The Auditor began a review of the telephone cbarges when Infonnation Technology
reinitiated sending phone statements to departments. The City Manager raised simultaneous
concerns after seeing some of the statements and supported the Auditor's review. The
objective· of this review was to assess the overaU cost effectiveness, of the Oty's 1andIine
.telephone rates .. This review only addressed local and long-distance rates for lan.dline
telephone service and does not include cellular or international rates and charges. It is
acknowledged there was not sufficient oversight for' teleconununication services. This was
due to staff reductions, including a frozen IT Manager position, and oversight responsibilities .
were not reassigned. The Information Technology Division is now taking measures to
remedy the situation as detailed below. Infonnation Teclmology would like to thank· the
Auditor's Office for identifYing areas where improvements can be made.
Overview:
The City of Palo Alto receiVes various telecommunication services from AT&T. The Oty's
telephone system is sttuctured as a private branch exchange (PBX) with some off-premise
extensions and business lines. It should also be noted that many staff utilize cell phones in
lieu of landline telephones. The follow4tg are an example of some of the landline telephone
services and features that AT&T provides:
'I'ypc ~ QUHnWy ( 'nmnH'Il(S
Business AcceSs Lines (1MB, 5S0 These lines are used for:
1M[.) taxes, alarm systems, credit
card machines, and
sprinkler systems. Call
details are provided in
AT&T billing.
ExtensionslPBX Trunks: AT&T provides the trunk
Direct Inward Dialing (DID) 1400 line, the City provides the
Blocks extension. A flat rate is
charged for the trunk and
usage is billed on top of
Attachment
that. Call details are not
provided by AT&T;
instead, must use internal
call accounting system.
These lines biU to a 0318 or
2311 line.
Long Distance 180 hours This includes both In State
and Out of State.
Additionally, AT&T provides communication services (not reviewed in this audit) such as:
All of the above services are billed to the City by AT&T through numerous bills that totaled
approximately $540,000 for the 08/09 fiscal year.
Recommendation 1: ASD should obtain a phone service contract with competltive billing
rates ..
Staff agrees with this reoommelldation.
To address the need for obtaining more competitive billing rates, staff is researching the
ability to utilize a State contraot, "CALNET 2." This contract has aggressively negotiated
rates that went through a competitive bid process and extends to other Public Sector entities.
The contract was awarded in January 2007 and is a S year contract with (2) two (1) year
extensions. The Palo Alto Munioipal Code stipulates, in Section 2.30.360, J, 2, in order to
utilize the CALNBT 2 contract) the contract must have been awarded within twelve months
of the date the oity contracts for the goods and/or services. However, staff is currently
working with the AUomeyts office and Purchasing DivisiOn to execute the contract as the
original intent of the contract was for all public agencies to utilize. regardless of the time
frame. Staff expects to have the CALNET 2 contract on the Council agenda by October
2009.
Recommendation 2: ASD should obtain consolidated billingfrom the selected provider and
develop a process to review bill payment,$ for accuracy and appropriateness.
Staff agrees with this recommendation. . .
Staff is working with AT&T to develop an appropriate billing structure for the multiple
services in the State CALNET 2 contract To identify an appropriate billing structure, staff
will first inventory all services that AT&T provides. This includes identifYing each line,
2
Attacbmel'l
what it is used for, and by whom. Once the inventory is complete, staff win then group all
like services for billing. BiDing groups might consist of the following:
.' All business access lines (lMS, lMI.)
• All conununication lines (fl Circuits)
• All Long Distance Charges
By grouping services, fewer bills will need to be processed and information will be properly
organized. This wi1l also result in easier bill review and less administrative processing.
Recommendation 3: ASD should review the current telephone oversight policies and
procedut:es and ensure that employees are provided with accurate lriformation when they
rei111burse the City for personal calls.
Staff agrees with this recommendation.
Once the CALNET 2 contract is executed, the new rates will be entered futo the Internal Call
Accounting system. This will then allow IT to disperse monthly call details to departments,
with accurate rates, and wHl allow departments to review call details for appropriate use and
reimbursements. Staff is also re~e,.wing the existing Telephone Use Policy and updating if
needed. For any previous reimbursements, staff is following up with individuals to
detennine if appropriate amounts were reimbursed and resolving any inaccuracies.'
In addition to the AuditOr's Recommendations, IT is also implementing:
• New Management Oversight of the Billing
IT will distribute call details and charges monthly to departments for departmental scrutiny
of telephone usage. The expectation is that employees will review their phone bills and
. reimburse the City for any non work-related phone calls. Managets will also review for any
non WOrIN-elated usage. Additionally, IT has assigned an IT Manager along with a Sr.
Technologist to provide more oversight over the telecommunications bilJing.
• Telecommunication Contract
IT will ensure a Contract is executed and maintained for all telecommunication services to
ensure rates are always competitive and negotiated. This includes communicating with the
State to ensure the City of Palo Alto participates with any future State contracts as economies
of scale yield more competitive rates.
• Telecom Assessment RFP
IT is in the proc~ of executing a contract that will address evaluating the current state oftha
telecommunication system, performing a needs assessment, recommendations on
3
AttachMent
technologies to use, ana approximate budget requirements necessary to implement. 'This
assessment is expected to begin November 2009.
• Cellular Phones
Cellular pbones are currently under contract and rates are reviewed annually. In April 2009,
IT staff perfonued an audit and usage review that resulted in rate plan changes and the
elimination of any unused devices.
4
Attachrner.
CITY OF PALO ALTO
Memorandum
TO: CITY COUNCILMEMBERS
FROM: CITY MANAGER DEPARTMENT: CITY MANAGER'S OFFICE
DATE: NOVEMBER 2, 2009
SUBJECT: Recommendation from Policy & Services Committee to Continue the Open
City Hall Online Forum
The attached staff report was continued from the October 5, 2009 City Council meeting and is
being included again in the packet for the November 2 meeting.
KELL Y MORARIU
Assistant to the City Manager
r I
Page 1 of 1
· .. ---.-....:.-,.-'--.--,-"-----......:.--"-.. :. -.-" .... ,----~-.-'--,----'-.-'-~'--<""' ..
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: CITY MANAGER'S OFFICE
DATE: SEPTEMBER 21, 2009 CMR: 385:09
REPORT TYPE: REPORTS OF COMMITTEES/COMMISSIONS
SUBmCT: Recommendation from Policy & Services Committee to Continue the Open
City Hall Online Forum
RECOMMENDATION
Staff and the Policy & Services Committee recommend that the City continue utilizing the Open
City Hall online discussion forum at a cost of $200 per month.
COMMITTEE REVIEW AND RECOMMENDATION
On June 29,2009, the Policy & Services Committee reviewed the results of the pilot program for
the Open City Hall online discussion forum and recommended on a 2-1 vote (Yeh absent) that
the Council continue the forum at a cost of $200 per month. Attaclunent A provides a copy of
the staff report to the Committee and Attaclunent B contains the minutes from that meeting.
During the meeting, City staff and staff from Peak Democracy presented an overview of the
outcomes from the pilot program, including a synopsis of user statistics and satisfaction.
Additionally, staff discussed mechanisms for enhancing participation in the forum should the
Council vote to continue the program. The Committee discussed many elements of the program
before recommending that the Council continue the program. There was a general sentiment that
the intent behind the program was good and that, for the cost, it seemed reasonable to continue
utilizing this forum as another avenue for civic participation.
As part of the motion, the Committee requested several additional items. First, the Committee
wanted to see a more timely delivery of the comments to Council, which would entail emailing
the comments to the Council earlier on Monday afternoon. The Committee also asked staff to
expand outreach and explore the use of social networking sites in conjunction with the forum.
The Committee recommended that the City explore utilizing -the forum for some longer term
projects th~t are unrelated to the Council agendas and that use of the forum be expanded to
Boards and Commissions, if so desired by these groups. Finally, the Committee recommended
that the Open City Hall forum be embedded on the City's website. Currently, visitors access the
forum through a link on the City's website. In anticipation of this report to Council, staff
attended the Website Committee meeting on September 2 to review a mock up of the Open City
Hall forum on the City's website. The Committee was supportive of the concept and design of
CMR:38S;09 Page lof2
I
this new webpage and encouraged staff to explore other ways to promote the forum in other
areas of the City's website.
If the Council approves the continuation of the Open City Hall forum, staff would prepare an
agreement to be executed by the City Manager. This agreement would not need to be approved
by the Council as the annual cost of the forum falls within the City Manager's contracting
authority.
RESOURCE IMPACT
The City has been participating in the Open City Hall pilot program for the past six months. The
set up cost for the program was $5,000 and there is a monthly subscription fee of $200. The total
cost of the pilot program is $6,200. Peak Democracy staff have indicated that they would
continue to charge the City $200 per month to continue hosting the Open City Hall forum. This
monthly cost would be absorbed within the City Manager's Office budget.
POLICY IMPLICATIONS
The recommendations in this report are consistent with City policies and previous Council
direction. The Open City Hall forum also supports one of the Council's top priorities for this
year, Civic Engagement for the Common Good.
ENVIRONMENTAL REVIEW
This report is not a project requiring review under the California Environmental Quality Act
(CEQA).
ATTACHMENTS
Attachment A: June 29,2009 City Manager's Report to Policy & Services Committee
Attachment B: Minutes from June 29, 2009 Policy & Services Committee Meeting
PREPARED BY:
CITY MANAGER APPROVAL:
r ,
CMR:385:09
~MO~U
Assistant to the City Manager
Page 2 of2
Attachment A
TO: HONORABLE CITY COUNCIL
ATTENTION: POLICY & SERVICES COMMITTEE
FROM: CITY MANAGER DEPARTMENT: CITY MANAGER'S OFFICE
DATE: JUNE 29, 2009 CMR: 299:09
SUBJECT: Review of Open City HaD Pilot Program and Recommendation to the City
Council Regarding Continuation of the Program
RECOMMENDATION
Staff recommends that the City continue utilizing the Open City Hall online discussion forum at
a cost of $200 per month and that the Policy & Services Committee review. the results of the
Open City Hall pilot program. Additionally, staff would like to receive feedback from the
Committee regarding general satisfaction around the forum, ways to enhance its effectiveness for
the Council, and additional ways to promote participation in the forum.
BACKGROUND
"Open City Hall" is a dedicated online forum that allows citizen participation. It was created by
Peak Democracy. The forum allows Palo Alto residents to participate in the public comment
process on City Council agendas but on their oWn time and schedule. Open City Hall is also
specially structured to be both (I) a civil, on-topic public forum and (2) First Amendment
freedom~of-speech compliant -two attributes that are important for the City's public hearing
process, but not commonly supported on the Internet (especially in comparison to private, ad~
supported blogs). The City has been participating in .the forum as part of a pilot 'program since
December 20Q8 as a result of Council direction in the fall of 2008. Each week, several Council
agenda items are posted on the forum along with a question about whether the Council should
approve a particular action related to those agenda items. Members of the public can then post
their position (on "yes, no" issues) and provide their comments. Staff then presents a tally of the
positions and a formatted report of these comments to the Council for the Monday evening
Council meetings.
On May. 19, 2008, the City Council discussed a Colleagues' Memo requesting support for a pilot
progra.r.h involving the online "Open City Hall" forum. At the meeting, the Council passed-a
motion (7-2) to refer the item to . the Policy & Services Committee to identify and clarify any
policy or implementation issues. The Policy & Services Conunittee considered the item on
September 9, 2008 and made a recommendation that the City Council approve a six-month pilot
program of the service. On October 6, 2008, the City Council approved the recommendation
from the Policy & Services Committee to implement the Open City Hall "online service" pilot
CMR:299:09 Page 1 of4
-" ---':-0. ~' ....... ,",--;~ __ -~'::".--.:.....; ,
program for a period of six months. The key elements of the pilot program included the
following:
l) Cost: $6,200 for 6-month pilot program ($5~000 set up fee + $200/month)
2) Forum to be hosted on www.OpenCityHall.com
3) Agenda topics: staff selected 1·3 key Council agenda items to use as discussion
topics each week during the pilot program
4) Peak Democracy staff monitors the forum
5) Evaluation to be conducted at the end of the pilot program
DISCUSSION
Staff identified several key areas to examine during the evaluation of the pilot program. These
were: 1) participation -number of forum participants; 2) discussion items -how many each
week and how many comments received; and 3) resources -overall benefits of the pl'Ogram
relative to the cost of implementation. As an overall comment, the program has been successful
for the cost and staff resources required to implement it. The discussion below reviews some of
the key elements of the evaluation. Additionally ~ representatives from Peak Democracy/Open
City Hall will be present at the Policy & Services Committee meeting to further discuss
satisfaction with the program and suggestions for further enhancements. Staff would also like to
receive feedback from the Committee regarding general satisfaction around the forum, ways to
enhance its effectiveness for the Council, and additional ways to promote participation in the
forum.
Participation/Discussion Items
The online forum launched in January 2009 with the composting topic discussed by the Council
at the January .12 meeting. Attachment A provides a synopsis of the topics posted on the forum
since January as well as the nwnber of participants for each item. The City has posted 19 topics
over 13 meetings. For most meetings, there was only one topic available. There were also two
ongoing topics (High Speed Rail and Long Range Financial Forecast) that allowed people to post
more general overall comments related to these topics. On average, approximately 24 people
participated in each forum -a:Qd that's equivalent to over 1 hour of public hearings (at 3 minutes
per person). Attachment A also identifies the total nwnber of visitors (1614), participants (250)
and users who have subscribed to receive announcements (200). Also, all the comments were
civil and on-topic as well as generally articulate and substantive.
AttachmentB provides responses from a user satisfaction survey. This survey is offered to each
new user the first time they post to the forum. Overall, there was a very positive response to the
Open City Hall forum with 164 people indicatfng that they like using the forum and 24 indicating
that they did not like using the forum. Many of the "no" comments focused on technical issues
surrounding the forum, including the registration process. The staff from Peak Democracy were
able to follow up on and address many of the technical concerns and questions. There were also
some concerns about the anonymity of the forum and whether people's comments were actually
considered as part of the Council deliberation process.
r
AlthougIl some topics p.ad very high participation rates (Alma Plaza, High Speed Rail and the
Business License Tax) and users were generally satisfied with the forum, there is clearly an
opportunity to increase participation if the program continues. Staff have been discussing
additional methods for pUblicizing the forum and increasing participation. These might include
further outreach to the neighborhood associations, developing a City database of resident email
CMR:299:09 Page 2 of 4
addresses, or incorporating additional copies of the forum directly onto the City1s and/or
newspapers' websites. Staff are also looking at ways to identify Open City Hall items directly
on the published agenda.
Resources
The forum has been relatively easy to manage from the City staff perspective. Each week, staff
prepares a question for the forum along with a summary of the item. Staff sends this item to the
Peak Democracy staff along with a link to the agenda item and it is posted to the forum. On
Monday, the City Clerk's Office is able to access the forum and download the comments from
each topic so the staff can then print them for the Council meeting. Following the Council
meeting, the staff then draft up a statement summarizing the Council action on the topic, which
Peak Democracy sends to participants. Overall, the whole process probably takes 1-3 hours of
City staff time depending on the number of forum topics. This is a relatively small investment of
staff time that enables the public another avenue for participation in Council agenda topics.
Additional Feedback
In addition to receiving feedback from the Committee regarding general satisfaction around the
forum, staff would also like to hear suggestions regarding ways to enhance its effectiveness for
the Council and additional ways to promote participation in the forum. Currently, between 1-3
items are posted to the forum for each Council meeting. Should the forum be opened up to allow
for Board/Commission items to be posted as well? Does the Committee have any other
suggested mechanisms for increasing participation in the forum?
RESOURCE IMPACT
The City has been participating in the Open City HalJ pilot program for the past six months. The
set up cost for the program was $5,000 and there is a monthly subscription fee of $200. The total
cost of the pilot program is $6,200. Peak. Democracy staff have indicated that they would
continue to charge the City $200 per month to continue hosting the Open City Hall forum. This
monthly cqst would be absorbed within the City Manager's Office budget.
POLICY IMPLICATIONS
The recommendations in this report are consistent with City policies and previous Council
direction. The Open City Han forum also supports one of the Council's top priorities for this
year, Civic Engagement for the Common Good.
ENVIRONMENTAL REVIEW
This report is not a project requiring review under the California E;nvironmental Quality Act
(CEQA).
A TTACH1vIENTS
Attachment-A: Synopsis of Topics Posted on Open City Hall during PiJotProgram
Attachment B: Open City Hall User Satisfaction Survey Results
CMR:299:09 Page 3 of4
PREPARED BY:
CITY MANAGER APPROVAL:
r
}
CMR:299:09
..
KELLY MORARIU
Assistant to the City Manager
Page 4 of4
460
400
360
300
250
200
150
100
50
0
0 ~ . ~ i i m
i' f
g' .~t i I r. i :I'
Attachment A
Open City Hall Usage
as of June 23, 2009
Unique Visitors: 1614
Participants: 250
Subscribers: 200
Topics: 19
Statements: 457
Equivalent Public Comment Hours 23
@ 3minlstatement:
f II :r: Jl fI ::l I§ ~ III ro ;, i i :r:
'I I ~ I B ~ w t gj'
i i ~ 2f II) m. :::J !£l
Usage by Topic
As of June 23,2009
~ I i 0 0 ~ (j)
ff 0-m 2. ~ 3 ~ '! f f 3
!if !l
;3 ~ 8
~ p ~. ~ I ;:; 0" ~ i ~ ~ i
if i i ,
I
g .... :!! ....
\I -8 g
It
~ l
I
i en III ~
'.
• Participants
.Vlsltora
1 . ~
a,atlsfactlon Survey
DId you Ifke 1II.lng this Open City Hall forum?
Why or why not?
(See following pages)
r
I
Attachment B
.. m<, ~, 1
,
Response
Yes
Yes
Yes
Yes
Yes
No
No
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Comment ,
Easy to use and I'm able to express my thoughts and views.
Central location for a complex issue. Nice to have all the supporting
materials in one space. Simple and clear navigation was great.
Date
06122/09
06/22/09
it's easy and goes to the immediate readership 06/22/09
do not always have time to keep up on city news, regulations, etc. 06/22/09
Hopefully this will help me be a better infonned resident/taxpayer. It is also
easier to contribute an opinion in this forum for someone who is not used to
voicing their 'opinions in a public speaking forum.
it is easy and efficient and it strikes me as being a good option for
participating in the' democratic process
06/20/09
I've used it plenty of times but without my name. However,.1 think it is a' 06120/09
waste of money. It could be done more efficiently by using a blog on the
Palo Alto Weekly Town Square which thousands of people read and many
use.On a tiny fraction of residents even bother to use this.
Don't know, because I don't know who reads it. 06/19/09
I appreciate the opportunity to express my views and it was easy to use the 06/19/09
s~ ,
Hope to be heard, and reach a wider audience.
Hopefully, this is not another wasted exercise to make our local
government look good by using the latest "government speak" buzz word:
civic engagement. Remember the fate of Props lA-l B? Your next
extravagant bond proposal may have the same fate if the taxpayers lose
faith.
06/19/09
05131109
Pretty straightforward and simple to use. 05/31/09
No maybe"?? I will see how it plays. But the site works very well! Kudos on 05128109
that! Not an easy task.
I'd rather deal with my City's government or a local citizen's group. 05/16/09
Itls an easy to use share .. point. '05/16/09
It appears to be an easy way to communicate. It'is unknown whether or not 05/01109
it will be an effective means. '
. Good idea, letls see ifanyone in City HalJ pays any attention. 04/27/09
Civic engagement leads to better and more responsive government, and a 04/27/09
more interesting community ,
It is a way for Palo Alto residents to post their opinions, and also to read 04/27/09
others' opinions.
It's a convenient way to express views without writing a fonna11etter to 04127/09
elected officials or staff.
This is great! I'm excited to have the chance to give my input.
Still too soon to tell, this was my first time.
I hope this will be carefully evaluated by our elected City Council
Representatives, and used by Palo Alto residents to give comments and
suggestions to the Council
04/25/09
04/25/09
04/17/09
I would have felt more comfortable if I had known about a way to register 04/10/09
( fl1'8t and then comment, rather than commenting first and then being forced
to register at the end. '
Yes
Yes
Yes
It's easy to partiCipate and it looks like it works. 04/09/09
Easy way to give one's opinion , 03/30/09
As long as my comments ,are considered on a timely basis, i am in favor of 03/30/09
this system. Thanks.
Yes Easy to use, see oomments of others. 03/29/09
Yes Easy to use and understand. 03127109
Yes Hopefully we can temper 'the stupid actions of the city council. But I fear it 03116/09
will have no effect ..
Yes ... makes me believe that someone may be listening! :-) Doesn't take much 03/13/09
of my time or (hopefuHy) your time, but achieves some communication,
Yes ,Why does the window say "We'll add your city when you sign inlt and then 03113/09
not allow you to proceed until you've checked the add-my-city box?
Yes Over time, credible users of Open City Hall will grow. 03113/09 '
Yes It was very easy to navigate. And this particular topic is very important to 03/05/09
~A. . .
No I'd like to be able to make comments, but I don't like that its so public. This 03/02/09
doesn't feel safe to me', Also. I wasn't aware that this was a recognized city
council forum until today -I felt pressured to get this posted here in order
for my consideration to be heard.
Yes I like the managed fonnat and feel it increases the likelihood of my opinion 03/01/09
being heard.
No I don't like the ToS, 03/01/09
Yes It provides a much better oppotunity to participate in cominunity issues. 03/01/09
Yes If someone with actual authority reads the comments, maybe a change to 02128109
the HSR plan can actually happen! '
Yes Seems like a good tool for busy residents to remain in contact with the City 02128/09
Council and City staff, even if other c;:ommitments often prevent me from
attending evening community meetings. '
Yes This is democracy in action. People cannot always make it to City Council 02128/09
meetings, but would like input in the process
Yes Yes, I feel I can voice my opinon to City Council without the hassle of 02128/09
sitting through an entire city council meeting for my 2 minutes of time.
Yes Simple, well-designed web app. 02/28/09
Yes Oreat way to communicate ideas. 02/27/09
Yes I have been enrolled in this Open City Hall for a while now. This is my first 02126/09
comment. I hope that the Council appreciates that this is the first time in
years that ilve been able to give my opinion, and without the trouble of
going downtown. And i hope they also appreciate that when i have no
opinion on a subject they won't get a message from me. Nevertheless, i
really like being asked. :) Thank you. .
Yes Forum is essential to democracy. This makes it fairly practical. 02111/09
No To soon to tell. Ask me later. 02106/09
Yes We need to gather as many ideas as possible to solve the massive budget 02/06/09
shortfall. This is an easy and quick way to post one's opinion.
Yes easy to use 02/05/09
Yes What choice do I have? I think the data entry portion of this site could be 01131109
enormously improved by providing something like a word processor
interface with formatting choices, copylpaste, insert external text, etc.
No One way dialog. One item only. Not as participatory as PA Weekly Town 01130/09
Square
Yes However, I'm not certain that I like the anonymity feature. This creates the 01127/09
possibility for manipulation of results. At the very least, there ought to be
some verifiability'for the Palo Alto residency.
Yes Itls incredibly user friendly. Love it! 01126/09
Yes Quick way to communicate about issues affecting us. 01125/09
Yes Convenience. 01125/09
Yes It's an efficient way to communicate with city hall 01125/09
Yes Great idea for those of us who are interested but can't make it to meetings 01/25/09
(small children at horrie, in my case). Seems easier than trying to figure out
what council memb.ers to email, and more likely to be effective since
council members can see an organized snapshot o.fvotes, rather than
wading through their inboxes trying to get a tally.
No The links that explain some of the features should open a new window, so 01/25/09
the user doesnlt have to go back, and re-enter information. Thanks! .
Yes Easy way for my voice to be heard. Site is simple &' usable. Thanks! Dave 01125/09
Yes It's a great way to be informed, and a great way to get input from the 01125109
public.
Yes It's another conduit for communication. I hope there is evidence that it is 01/25/09
effective, both in use by city officials as well as civic, civil discourse by the
constituents. ,
Yes It is a very efficient way for me to be able to participate in the government 01125109
& issues of relevance to me as a citizen of Palo Alto. I appreciate the
opportunity, and hope that our government actually is able to make use of
the input on this site to learn there is consensus, when it exists, and to
understand more about different perspectives and their relative "weights"
throughout the City.
Yes itls quick and efficient 01125/09
No cumbersome registration process 01125/09
Yes I don't really know yet because I just registered. Seems fine right know, and 01125/09
everything was very clear except for how you insert your name and city
when writing a responce for thoughts about issues.
Yes I seems to be well done, protecting against those that might just wish to be 01125/09
negative trouble makers. '
No Yes, I think it is important to be informed about the city I live in, 01/25/09
Yes Very convenient way for me to communicate with my elected officials 01/25109
about 'particular issues up for consideration.
Yes Weill see. Just because we have a place to add comments doesn't mean 01125/09
anyone is paying attention. There are real problems in Palo Alto and this
city council has spent lots oftime doing silly things like naming the City
Hall for Martin Luther King. So, we'll see. .
Yes Quick and easy way to have at least a voice without long drawn out 01/25/09
meetings.
Yes It was a very Interesting and quite easy way to express my opinion on an 0"1/25/09
issue before the City Council.
Yes Able to participate and register opinion easily from home. 01125/09
Yes great opportunity to express my ideas .. look forward to hearing from others. 01/25/09
Yes I love it because 1 can give my opinion without getting into my car. 01125109
Yes Because it gives the Public a voice.. . 01125/09
No You have an INCREDIBLY long legal aggreement. I felt like I was buying 01125/09
a bouse or signing a business contract. The fact that you read every
submission before posting it is quite disturbing. And, then it takes 24 hours
Yes
Yes
·No
Yes
Yes
Yes
No
Yes
Yes
No
Yes
Yes
No
Yes
to have comments posted.
It allows those who canlt or won't write letters or speak before Council to 01/25/09
voice their opinions.
·nic.e way to collaborate 0 1125/09
I do not believe in blogs without someone's name. If the city wants to try 01/25/09
this, it should allow comments on evemy public hearing item.
It seems easier to give your opinion VB writing a formal letter to the city 0 I 125/09
oounoil.
reasonably straightforward --but I don't think democracy is best served by 01/24/09
anonymous notes
Easy way to communicate! 01124/09
Not at aU sure-how it fits in withe lithe City of Palo Alto." Or exactly what 0 1124/09
its purpose is.
Liked it this time. Stumbled on first attempt to use it to send a message 0 1/24/09
about municipal composting.
I appreciate the screening of the submissions by the forum. However, after 01124/09
1 submitted my vote and comment this first time, I was surprised to see that
there would be a 24-hour or longer delay before my comment was posted to
the forum. 1 think that 24 hours is too long a delay to get one's comment
posted. 1 would like to see other posters' comments sooner than that. Many
of us get a heads up about the topic of this forum from an e-mail list, and so
we probably visit the forum on the same day, within a few hours of each
other. When 1 visit the forum, 1 would like to be able to see all of the
comments that have been submitted, not just the comments that were
submitted more than 24 hours prior to my visit to the forum. The City
Council usually meets on Monday night, and many of the postings will be
made on the weekend. Will ~e comments submitted during the weekend
not be posted unitil Monday? .
Not a computer person. It wasn't clear that you had to sign in to list your 01124/09
opinion. Had to re-do statement. This should be easier for older people to
use and many In Palo Alto are getting older and not used to computers.
It would be great if city council reads or pays attention ... if not it is a waste 01124/09
of time II III
Clean and easy way to stay actively involved in my city. 01/24/09
We keep hearing how desperate the city needs money -if someone wants to 01124/09
get involved there are lots of ways. This is just another Uhype program" that
costs money to seem that we are so high tech and open. Democr~cy takes
effort and if someone doesn't want to put out the effort, their loss -lets use
the money were it counts. This also goes for the $35,000 to find the color
or Palo Alto. Any kid knows that if you mix lots of colors together one gets
a shade of brown. I am sure a 3rd grader would be happy to give you this
answer with a big grin and feel so smart afterwards and it wouldn't cost
$35,000. The people who would paint their house the "color of Palo Alto"
really need approval for what they do. How sad.
;1 am trying it out to see if it is a resposible forum for public discussion. I 01124/09
will like it if it is, but will not use it further if the participants cannot keep
the exchanges at a civil level with respect for facts and analysis. Requiring
people to sign their names may be necessary to move in this direction. It is
my experience that blind postings open the door to unoivil exchanges, and I
Yes
will not waste my time with that.
It allows me to voice my opinion to the "powers that be" in City Hall. I
crumot get to meetings due to my disability.
01124/09
Yes convenience 01/24/09
Yes some simple ability to see issue ~verviews and make my opinion easily 01/24109
known' --much easier than Googling, reading large documents, writing
emails or letters.
Yes But if it turns out to be a forum where anonymous posters vent venom like 01123/09
on Town Hall then it will fail.
Yes Web site was simple to work. I was able to get involved without a major 01/23/09
investment in time.
Yes . I really is an excellent fit with our 2009 City Council priorities. Is it 01/12/09
possible to distribute the topics for comment, perhaps via the Palo Alto
, Weekly or Palo Alto Online dialy news? I ~o NOT like to have depend on
my memory to check other websites for updates. Also, instead of just
Itimmediatley" or "every 2 weeks at most", could you provide a weekly
option? Thanks for doing this. Trish
Yes This is great vehicle to encour~ge Palo Alto residents to voice their 01111/09
opinions on issues affecting our community
. No Why Not? It may become another way for the City Council to make 01110/09
decisions based on which interest group screams the loudest. The survey I
just completed on 'compo sting is completely unscientific and in no way
should be read as representing the voice of the community. It represents a
few voices, most of whom have a major agenda, which is already reflected
on the council. It's nonsense unless it can be shown to actually increase
citizen participation beyond a small number of activists. I'm not an activist
and I took the survey, so my participation can be counted in the column of
increasing citizen input.
Yes I'm too lazy to go to the City Hall for council meetings. This provides a 01110/09
quicker way to read other ideas and comments and then give a current
opinion. Thanks for making this great new option available. Kay Schauer
Yes Either the people submitting were reared properly or someone does a good, 01/09/09
job of culling through the submissions and weeding out the comments that
don't stick to the issue. Great way to hear from the public.
No It's just one more thing for those of us who do go to city hall to have to do 01/09/09
to keep up with those who don't go to city hall or keep up with issues.
Yes I write anyway when I'm aware of when certain issues are to be considered. 01109/09
However, 1 don't always know when that is, and the Forum should help on
that. Walt
Yes It is another way to speak to those we elected. But I am not sure it should 01109/09
be anonymous~ I do not want it to take the place of writing or talking to
council members. Also, I am a little worried about censorship. We will see
how it goes.
Yes It is too early to tell how this really works. Ask again in a few months. I 01109/09
(think that any comments must have the commenter's name posted after the
comment, just like they do in the newspaper. Anonymity on-line invites
flaming and less responsible comments. See the postings on Paloalto on-
line an example of this. David
No haven't used it enough to know. 01109/09
"
No Registering does not seem to be necessary 01/08/09
Yes If the offJ.cials read it, its a way to keep in touch with the public. However 01/08/09'
the "verification" process is flimsy; anyone with a free email account can
CLAIM to be a PA resident. And bulletin boards tend to become dominated
by trolls and others with little else to do in their spare time but blast their
opinions, so I wonder how representative what shows up here will really be
of the PA community. .
. Yes Easy and great way to voice my opinion. 01/08/09
Yes I can have input without attending the meeting. Very convenient. 01108/09
Yes I think it's great to be able to voice my opinion and to read what others 01/08/09
think. This feels like real Democracy in action! Hooray!
Yes I think this is a very good alternative method for citi~ens/residents to use to 01/08/09
provide the City with opinions/suggestions on important issues a.nd topics
that are happening within the city. Short of having to provide hardcopy
letters, emails, or even having to attend Council meetings just to state your
opinions and concerns,· this method gives you the opportunity to voice them
anywhere and at anytime and still know that your thoughts·are being
received by the powers that be. I think this is greatl
Yes Gives me hope that my ideas about Palo Alto issues may actually come to 01108/09
the attention of city officials. To date I am not sure Council and. other staff
really care. Moreover, this is an opportunity for Council to offer a way to
become "engaged" as they promised us a year ago. So thank you for this
opportunity. Richard C. Placone
Yes City information comes too lat to evaluate before Council meetings. This 01/08/09
will help. It is unlikely though that the City will pay much attention to these
opinions. views. .
Yes I like the opportunity to post this because I hope that it will become a 01/08/09
widely used forum for exchange of information that is important for the
ci~ ,
Yes My real concern is I signed a LONG statement that I did not read. 01108/09
Hopefully this will not be a problem.
Yes It's a good way to communicate from home, without having to attend a 01107/09
meeting.
Yes It allows for reasonable civic participation. 01107/09
72 of the survey respondents did not submit a comment.
r ;
Attachment B
IVlr. Keene said that taking into consideration the concerns expressed by the
Committee, Staff would revisit this sooner rather than later. The goal would be
to get back to the Policy and Services Committee some time in the next couple
of months, and Council by the end of this fiscal year. He also said that to be
fair,it could be a year from now.
Chair Espinosa confirmed that Staff would come back to the Committee with
the study criteria within a couple of months and then within a year with final
results. He hopes that when it does come back it will clearly address the
concerns raised regarding price and quality of service, as well as the pay and
for any sort of package that takes care of workers and how that's weighed.
MOTION PASSED 3-0 Yeh Absent
3. Review of Open City Hall Pilot Program and Recommendation to the City
Council Regarding Continuation of the Program
Assistant to the City IVlanager, Kelly Morariu, said that Council approved a six
month pilot of Open City Hall in 2008. The City launched the forum in 2009 with
the first topic being composting. One to three topics for each agenda are
posted each week and there have two on-going topics: High Speed Rail and
Long Range Forecast. Each Thursday prior to a Council Meeting, staff posts a
question and people are allowed to post comments until Monday at noon when
the topic is closed. Comments are printed and left at places for Council on
Monday. It's a small window of time for comments, but that is the way the
agenda process is structured. The cost is fairly l11inimal. The City paid a $5000
set up fee, and pays $200 a month for ongoing maintenance, for unlimited
topics. There is a 24 hour holding period where Peak Democracy staff review
the comments, and no statements have been held so far. Regarding average
usage, the site has had 137 visitors and an average of 24 statements per topic.
If compared to the 3 minutes of public commentary time at Council meetings,
that equates to about 1.2 hours public commentary that has been transferred
to the Open City Hall Program, and is equal to .4 statements per thousand
residents. Each time a new user signed up, they were asked to complete a user
survey. Eighty seven users like the forum and left a number of comments
about why they liked it. A few complaints were about technical issues, most of
which were resolved fairly quickly.
Robert Vogel, Peak Democracy, said that Open City Hall is an online forum that
is both Civil and free speech compliant. Palo Alto is getting an average of 24
statements per topic, which is equivalent to 1.2 hours of Public Comment orally
presented but being in writing it's easier to review. He spoke regarding the
usage of Open City Hall in context with the five other Cities that have used it in
P&S: 090629 PS FINAL 6
the last six months. Palo Alto Is the only City using it exclusively for Council
Agenda items. Decatur GA, State College PA, and Lake Oswego OR, are using
it for Council agenda items, as well as some more general items. Montgomery
OH is using it exclusively for more general items. He stressed that he wanted
to share these examples to give a sense of what they are doing to bring people
to the forum and to publicize it. If the City wants to increase the number of
users there are opportunities to do so. To identify them, he did a comparison of
the type of usage from all five cities. Palo Alto has .4 statements per topic per
1000 residents; other cities are seeing a broad range of participation from .3 to
2.1. That range of participation rates is easily understood when you look at
how other cities are publicizing their forum. Decatur and Lake Oswego are
announcing each new topic via email using City email lists. Montgomery
announces their topics in a monthly newsletter that goes to every household.
Palo Alto and State College have no similar program and are only seeing a
participation rate about 20 -30 percent of the others. Another opportunity to
increase participation is related to a development recently put into the
software. Open City Hall can now run clones on other websites. The City can
add it to the City of Palo Alto website. Sacramento is using the Open Town Hall
program where the Mayor chooses issues and updates them in a form that he
controls, and the form is embedded in the Sacramento Bee as well as in Capital
Public Radio Website. Media outlets carry the forum to be consistent to their
mission and to bring readers to their website. The City can invite the local
newspapers to embed a copy of the forum on their websites, as well as embed
it on the City's website, at no extra charge.
Ms. Morariu said that Staff recommends continuing the Open City Hall program
at the same $200 a month service fee. Staff's time to manage the forum is 1-3
hours a week when there are topiCS. Staff has been exploring ways to increase
participation. The City can work with the local media outlets to get it on their
websites, as well as putting it on the City's website. The pilot was on the Open
City Hall website to insure the public recognizes the program's independence
from the City, but at this point adding it to the City website would give it some
legitimacy. Staff also wants to reach out to the neighborhood associations, in
lieu of a comprehensive email list like Decatur and Lake Oswego has. Staff also
wants to look at how to incorporate the Open City Hall logo on the printed
agendas to identify the. topics that are on the forum. Lastly, staff is looking at
increasing the number of issues on the forum, as a response from various
Boards and Commissions as well as other Council Committees.
City Manager James Keene concurred with Ms. Morariu and added that he
doesn't ;'think that the pilot really hit it out of the park, but it did get
participation and civil commentary with a high level of discourse taking place.
P&S: 090629 PS FINAL 7
Staff is working on the area of social networking/ such as establishing the City's
own Facebook page and Twitter Account. Tweet notices can be sent in the
absence of email list.
Chair Espinosa shared three points that Council Member Yeh shared with him
earlier: 1) Peak Democracy should continue, 2) Distributing it At Places doesn't
work because there isnt enough time to influence decision making/ which ties
into the bigger issue of Council not getting the staff reports early enough/ and
3) the need for more publicity is paramount to the success of the program.
Council Member Kishimoto recognized that Peak Democracy first contacted her
two years ago, so it is nice to see it going. She agreed with Council Member
Yeh/s comment regarding the timeliness of the reports, agreeing that At Places
isn't useful. She asked Staff if the Council can get the comments real time.
Ms. Morariu said that it would be possible for Council Members to view
comments on the forum as often as they would like or Staff could. distribute
comments via email on Monday at noon instead of waiting until the end of day.
Council Member -Kishimoto said that those options would be better than the
current process of putting the comments At Places. She agreed that the value
of this program is uneven. She was disappointed that there is no longer a one
page view containing one line from all the comments. It is less dynamic now.
She would like the City to take advantage of the knowledge and analysis our
residents have and dOl getting them to add their hard earned information to
Peak Democracy is her goal.
Mr. Vogel explained that the previous look of the website that Council Member
Kishimoto was referring to was a prototype that was much more labor
intensive. The one line comments were hand selected and edited. It would
require work to do it.
Council Member Kishimoto suggested showing just the first one or two lines
from the most recent comments. Only seeing the numbers of yes and nols is
not as compelling for the public to read further and add their own comments.
She asked if there is a way for people to sign up for email notifications.
Mr. Vogel said that the original press release attracted 200 or so people to sign
up and receive additional announcements as topics are added. This is less than
the several thousand subscribers other cities have/ but they started with a
mass email distribution, Palo Alto did not.
Ms. Morariu added that if it were embedded in the City website/ staff would be
able to use the Gov Delivery service so that people can subscribe through that.
P&S: 090629 PS FINAL 8
Council Member Kishimoto asked if High Speed Rail is a perpetual topic.
Mr. Keene said it might be best to put the comments on the City's website so
we can keep a rolling history of commentary and perhaps even a database.
High Speed Rail has a set of deepening, evolving opinions, data and grass roots
strategies. Then it would start to become part of a body of work and it might
be more compelling to participants.
Mr. Vogel agreed with Mr. Keene about having some editorial process to have
the most relevant topics at the top.
Council Member Barton agreed that the trial wasn't perfect but believes it
'should be continued. It's not expensive enough for the financing to be
prohibitive. The timing of when Council gets the comments doesn't work.
What does work is the way Staff sends out the answers to Council Member's
questions that come out around 2:00 -3:00. If Open City Hall came out at that
time he stated that he would have' time to read it. He is concerned about the
idea of editing the comments; the City shouldn't be making the decision about
what's best. The pOint is to have something to engage people. He would like
to see it-embedded with randomly selected comments that come up and change
frequently. The current structure is to put the most recent comments on top,
unedited.
Mr. Vogel said that it is important to make sure the users can't edit their
comments in order to have them move back to the top. Open City Hall is set
up so that it is sorted by creation date, not updated date. It is also critical that
if the 'City does edit or filter comments, that there is no political agenda behind
it.
Council Member Barton said that because Palo Alto's daytime population is so
much bigger than the night time population, there is value to a' passive
communication system. An email communication would miss a lot of the
daytime residentsl even though they do have a stake in the decisions made by
the Council, such as with business license taxes. He also said that he likes the
agenda pages the way they are currently posted on the website. Users are able
to click on a link that leads them to a PDF of the agenda item. It would be
helpful if we could put an Open City Hall logo next to that link, so that-users can
click on it and get to the Open City Hall page. He then asked if there is a way to
find out where the users came from.
Mr. Vogel said that they do know where the users are coming from and they do
have the ability to share that information with the City.
P&S: 090629 PS FINAL 9
Council l'v1ember Barton said the Media Center partnering would be interesting
because they could reflect the item back to their video post back to the
discussion and there might be some value. He asked if it can be embedded in
Facebook.
Mr. Vogel said Open City Hall can be embedded in sites like Facebook, and
asked if the City has a presence on Facebook.
Mr. Keene said that the Staff is currently working on it.
Council Member Barton reiterated that Facebook is another opportunity to get
Open City Hall some passive exposure. He also stated that embedding it in the
City website makes sense. Overall, he found the program valuable. He tries to
reflect on the public comments, but it is difficult to do right before the Council
meetin"gs. There has been occasion where he has seen that the tally on Open
City Hall is different than what he hears from other sources. It gives him a
fresh perspective. It is consistently on topic. Palo Alto Online is an intriguing
idea but it is too scattered and unpleasant to be useful to him as a policy
maker.
Mr. Vogel said if we embed it in a local newspaper the format will be exactly the
same as it is now on Open City Hall. There should be no· change in the quality
of comments, and this was indeed the outcome of the experience in
Sacramento.
Council Member Barton asked how Open City Hall fits in to the FPPC fairness
rules. If a newspaper hosts a Mayor's page during elections, it would be an
endorsement. He then asked if they would be able to host similar pages for
other candidates.
Mr. Vogel said that the forum is open to all elected officials now,and when an
election comes up, it would open to all candidates.
Chair Espinosa asked Staff to speak to the cost impacts of the program and
whether adding additional items from Committee Members or Boards and
Commissions, increasing outreach, email communications or increasing the
number of items discussed increase the cost of the program.
Ms. Morariu said that, originally, there was a per-item cost, but was changed
during the pilot. The City pays a $200 per month flat fee for an unlimited
amount(of topiCS. Having the Boards and Commissions add items would not
increase the cost. She stated that there might be an increased Staff cost, due
to a possible increased need for coordination. Increasing the public's
P&S: 090629 PS FINAL 10
participation, managing email lists and embedding in the website would be a
Staff resource issue more than a cost issue.
Chair Espinosa asked if Staff worked with the Website Committee on this.
Ms. Morariu said that at this early stage they did not.
Mr. Keene added that there has been some general discussion, but not on a
detailed level.
Chair Espinosa asked if Staff would state the value added beyond the email
packets they get.
Mr. Vogel said that if people come to Council meetings and spoke alone with
Council, and then when they are done the next person comes in there is no
transparency, like there is if everyone comes in at the same time. That's the
difference between a forum and a sequence of emails. If the emails are
published unedited, you have to be careful of content as some may be
inappropriate. Open City Hall deals with that for the City. It allows for civil
statements while still being a process that does not violate freedom of speech.
Chair Espinosa stated his appreciation for any business that is involved with
transparency and civil discourse. He did vote against it the first time. He still
believes that this is a waste of money .. The information is received too late.
The number of comments per topic is absurd at 24 to 60,000. He believes the
feature could be added to the City Website in a much more immediate and
transparent form. The cost may be minimal but we are not adding any value to
the decision making process at all. He reiterated that he respects the efforts
and agrees with the spirit of the project, and he applauds the companies that
do this type of work. He will continue to discourage the use of Open City Hall.
MOTION: Council Member Kishimoto moved, seconded by Council Member
Barton, that the Policy and Services Committee recommend to the City Council
to continue utilizing the Open City Hall online discussion forum at the cost of
$200 a month, and direct Staff to ensure a more timely delivery of comments,
expand outreach, include occasional long term projects, embed Open City Hall
onto the City's website, expand use to Boards and Commissions, and include
Social Networking sites.
Ms. Morariu asked if Council Member Kishimoto only intends to open it up to the
Planning and Transportation Commission.
Council Member Kishimoto said she would be open to including all Boards and
-Commissions. She also expressed her appreciation at Chair Espinosa's honest
P&S: 090629 PS FINAL 11
comments about the program. She feels that expanding the outreach will
address a lot of his concerns. She also hopes to attract more in-depth
comments. Palo Alto residents do a lot of research on the topics that affect the
City; it's great to have a forum for them to share all of that. However, three
days isn't enough time for them to do all that work, and then to respond with
in-depth answers, so longer term topics would be useful. It is also valuable to
see real time data.
Council Member Barton agreed in part with Chair Espinosa's comments, but
believes the start up money has been spent and should now be leveraged. He
added that if this conversation is still happening in a year or two, then it might
be time to stop the project.
Chair Espinosa said that if the City must continue to use the program, it should
include other Boards and Commissions as they deal with some hot topics that
should be included.
Council Member Kishimoto agreed to include Planning and Transportation
Commission and other Boards and Commissions as Staff sees fit.
MOTION PASSED 2-1 Espinosa no, Yeh absent
3. Discussion for Future Meeting Schedules and Agendas
Assistant to the City Manager Kelly Morariu said that the next regular scheduled
meeting is July 14th. The currently scheduled agenda is the Legislative Program.
The Committee had asked Staff to bring an expert in to discuss this. Dan
Carrigg from the League of CA Cities is willing to come speak, but won't be able
to come until September. While no expert will be there, Staff and the
Committee can still have a more general discussion.
City Manager James Keene added that he wanted to have a general
conversation with the Committee regarding their scope of work, and how Staff
identifies the stream of issues that is coming to the Policy and Services
Committee.
Chair Espinosa said that he had raised that issue as well. He felt this is a good
time to discuss the Committee's role and make sure the agenda is broad and
comprehensive. He then asked what would be involved with a general
conversation regarding the legislative program. r i
Ms. Morariu said that a general conversation might include the City Manager
speaking about effectiveness of the lobbying efforts and ways to incorporate the
P&S: 090629 PS FINAL 12
THE HONORABLE CITY COUNCIL
Palo Alto, California
FROM CITY ATTORNEY
Council Date: November 2, 2009
October 26, 2009
RE: Policy and Services Committee Recommendation to Adopt Resolution Amending
City Council Procedures to Add an Ad Hoc Committee Policy
Dear Members of the Council:
The Policy and Services Committee reviewed a proposed policy on Ad Hoc Committees
on July 15, 2009. An excerpt from the minutes from the Policy and Services Committee meeting
covering this issue is attached as-"Attachment A." -The Policy and Services Committee
unanimously recommended the adoption of an amended version of the proposed policy and
voted affirmative with one Committee member absent.
The Ad Hoc Committee policy sets forth the definition, requirements, duration,
appointment, and termination of Ad Hoc Committees, and clarifies the differences between
Standing and Ad Hoc Committees. For a detailed discussion of how Ad Hoc Committees are
created and distinctions between Ad Hoc and Standing Committees, refer to the City Attorney
Report previously sent to the Policy and Services Committee ("Attachment B"). Finally, a
Resolution approving the revised City Council Procedures is attached as "Attachment C" for
Council adoption.
The changes made at the request of Policy and Services Committee are listed below:
Section 3: "Appointment" was amended to reflect the concern raised by the Policy and
Services Committee about the staff time commitment required to assist Ad Hoc
Committees.
Section 6: "Reporting" was added to set forth the reporting procedures of Ad Hoc
Committees to the City Council and the timelines for such reporting.
Section 7: "Termination by Council Majority" was added to create the option of
termination of Ad Hoc Committees by a majority vote of the Council members.
SI;!'ction 8: "Conclusion" was added to specify a requirement for announcement of
termination of Ad Hoc Committees.
091023 sh 0111317
THE HONORABLE CITY COUNCIL
October 26, 2009
Page 2
RE: Policy and Services Committee Recommendation to Adopt Resolution Amending
City Council Procedures to Add an Ad Hoc Committee Policy
Two additional changes were made at the suggestion of Council Members. The first is a
clarification of paragraph B. 6. to: "6. Reporting. Ad Hoc Committees shall report their
recommendations to the Council no less than once per quarter in writing or orally." The change
was suggested by Council Member Schmid and helps to clarify both that the Ad Hoc Committee
can only provide recommendations and that those recommendations should be forwarded to the
City Council.
The second change was done to correct an error noted by Council Member Burt. The
prior legal analysis provided to the Policy and Services Committee described a six month rule for
Ad Hoc Committees. The Attorney General has not established the bright line test of six month
duration for Ad Hoc Committees, only opining that six months was acceptable. Thus, the legally
permissible duration is a matter of interpretation and not a requirement as I stated in the
Conclusion portion of the prior memo. We consulted with attorneys for other cities and learned
that while some City Attorneys use six months, others have policies that allow Ad Hoc
Committees to continue for a longer duration. The Ad Hoc Procedure was amended to delete
any durational reference with exception' of the end of the calendar year, when all Ad Hoc
Committees dissolve and can be reappointed by the new Mayor.
The City Council Procedures do not have the force of law. They reflect mutually agreed
upon rules of procedure for the City Council to follow. Our former law clerk Bahareh Samsami
assisted in the preparation of this Procedure.
GMB:sh
Attachments
cc: James Keene, City Manager
Donna Grider, City Clerk
Steve Emslie, Deputy City Manager
Kelly Morariu, Assistant to the City Manager
I' ,
091023 sh 0111317
, ..
Respectfully submitted,
~A,~
FoARYM. BAUM
City Attorney
,'-
i
ATTACHMENT "A"
P&S COMMITTEE
Regular Meeting
July 15, 2009
Chairperson Espinosa called the meeting to order at 7: 18 p.m. in the
Council Conference Room, 250 Hamilton Ave, Palo Alto, California.
Present:
Absent:
Espinosa (Chair), Kishimoto, Yeh
Barton
1. Oral Communications
None.
2. Report from City Attorney: Recommendation Regarding
Addition of Ad Hoc Committee Policy to City Council Procedures.
Law Clerk Bahareh Samsami said that the Council directed the City
Attorney to consider a policy on Ad Hoc Committees. Any Ad Hoc
Committee should consist of Council Members only; members of the
public may not serve on an Ad Hoc Committee. No more than four
Council Members may be on an Ad Hoc Committee. There can not be
a Motion setting the meeting schedule by the Council. An Ad Hoc
Committee' can not have continuing subject matter; its purpose must
be specific and finite, and it should dissolve after its purpose is met.
No Ad Hoc Committee should be in existence for more than six
months, after that it should dissolve or it should, at the direction of the
Council, become a Standing Committee subject to the Brown Act.
Either the Mayor or the Council can create an Ad Hoc Committee. The
Mayor should make a public announcement stating the purpose of any
newly formed Ad Hoc Committee. Standing Committees are subject to
the Brown Act and can have a fixed meeting schedule, they can be in
existence for longer than six months, and they can have on-going
subject matters. The policy that Staff has drafted reflects all of these
requirements. The P&S Committee can decide whether to recommend
the' policy to the Council, amend it or, decline to recommend it.
Herb Borock, PO Box 632 spoke regarding the status of the Stanford
Liaison Committee as it was subject to the Brown Act, and should have
P&S: 090715PS 1
been a Standing Committee. He said according to the Municipal Code
appointments of the Mayor are required to have approval of the
Council. This is the first time he has seen an explanation saying these
procedural rules don't have the force of law.
Chair Espinosa pOinted out the list of items regarding the Stanford
issue was prepared by Staff not by the Committee and that the Ad Hoc
Committee had been announced publicly. .
Council Member Yeh asked about reportable actions. He questioned
whether there should be formal documentation going to Council when
there is a formal decision coming from the Ad Hoc Committees.
City Attorney Gary Baum stated that issue was not covered in the
policy, but it could be. He offered to make suggestions, but suggested
that it would be more appropriate for the Committee to do so. There
is nothing in the law on reporting structure. The point of an Ad Hoc
Committee being created is to advise the Council so looking for
direction from them would be ?lPpropriate.
Council Member Yeh asked about potential issues with staffing for Ad
Hoc Committees. Planned staffing for Ad Hoc Committees would
create resource and time issues, but he could see value in having that
documentation from the Ad Hoc Committee for the Council to review.
Mr. Baum said that he didn't know if, other than in our culture, formal
reports are needed, as long as there is an oral report.
Mr. Keene said that the purpose of an Ad Hoc-Committee was to study
city business in greater depth. It's reasonable to add language that
requires a report from the City Manager on the scope of impact on the
budget. If there were suddenly 10 Ad Hoc Committees it would
become a staffing issue to keep Council notified. He asked if Staff
wasn't available, could three members of the Council meet to talk
about anything at any time.
Mr. Baum said that three members of the Council would be able to
gather.
Mr. Keene stated that if there was a formal reason for Council to want
to have a study done it would be to benefit the whole Council. This I' would almost always involve Staff work. It would be good to give the
Committee an estimate of the scope of work. Staffing helps with
transparency also, Brown Act or not. It could be a· situation that
affects adopted Council priorities and the Council should be aware of
P&S: 090715PS 2
that. It may have an impact on something if there is no feedback.
The Stanford project and Fiber to Premises has taken some work, but
not a lot. For Stanford we would have been doing that work anyway.
Fiber was responding to a Council initiative. Staff was putting new
work in that project anyway. He stated that either he or the City
Attorney could come with a sentence or two to report to the Mayor or
Council reporting what the estimated impact would be so that
everyone is clear.
Council Mem,ber Kishimoto asked if every Ad Hoc Committee would
have to have minutes.
Mr. Baum said no, they would not be expected to have minutes.
Chair Espinosa reminded the Committee that this was brought about
by a Council Member that had concerns about these issues. He stated
that the first question would be how to put this policy together, and
secondly what would be the parameters of an Ad Hoc Committee. As
the Committee works through that process, they will address whether
or not there is a different type of meeting that sometimes needs to
happen, such as for short term issues, and what the reasons for that
would be. They will need to address the differences, between a
Standing Committee and an Ad Hoc Committee. Then the concern
would be that when groups of Council Members are meeting there
should be a level of transparency in terms of the expectations, the
amount of time it's taking, the issues to be covered, and that instead
of decisions being made, only recommendations to Council will be
made, and during this process the Committee will need to determine
how to build in guarantees of transparency via reports to Council. He
stated that this staff report takes great steps in getting there. There
may be steps to build in for transparency to make sure there is no
perception of acting behind a curtain. Building a policy that includes
that transparency may be the discussion to have with the Council.
Mr. Keene said that the value of Ad Hoc Committees he's worked on in
the past has been studying an issue in greater depth. One of the great
benefits for Staff is that they get a sense of the reaction from elected
officials. Even though it's not a majority of the Council it's still
different than Staff proceeding on their own creating efficiency from
Staff's point of view. As City Manager, he said, if he's casually talking
to ~hree members of the Council the others might not appreciate that.
But if there is a process, as with an Ad Hoc Committee, there is
validity there and community feedback from the perspective of the
elected officials. He then asked if the Committee should address the
balance of Ad Hoc Committee aSSignments.
P&S: 090715PS 3
Mr. Baum said that the policy could be made to address the issue of
spreading the Ad Hoc Committee assignments through out the Council,
but with every layer we add we are narrowing Mayor's powers and
more importantly. reducing efficiency. If we seat three Council
members on an Ad Hoc Committee only because they aren't on
another one, they may not have the expertise that it needs.
Council Member Kishimoto asked if only Council Members can be a
part of an Ad Hoc Committee or can the Council invite other
community members join?
Mr. Baum stated that other community members may join, but then it
becomes Standing Committee subject to the Brown Act.
Ms. Samsami agreed that the Brown Act is very clear in stating that if
there are any non-Council Members on an Ad Hoc Committee, it then
becomes a Standing Committee and must abide by the Brown Act
rules.
Mr. Baum stated that we could contrast that with advisors to the Ad
Hoc Committee.
Chair Espinosa wondered if Staff wanted to work through some of
those issues, and come back with a revised policy. He would also want
to see reporting either oral or formal included in a revised policy.
Mr. Baum has drafted some language that addresses the concerns for
reportingl stating that the Ad Hoc Committees must report their
results no less than once per quarter and the City Manager shall
prepare a report to the Council addressing the time commitment for
Staff in supporting the Ad Hoc Committee.
Chair Espinosa asked for the City Attorney's thoughts regarding
Council voting on the l\!layor's selections for Ad Hoc Committees.
Mr. Baum said that this is designed so that an Ad Hoc Committee may
be created by either the Mayor or the Council.
Chair Espinosa asked if there would be an issue with the Mayor
assig)1ing Ad Hoc's without Council voting.
)
Mr. Baum said that is typically how Ad Hoc Committees are formed,
differentiating them from Standing Committees. The Council may
adjust that component in the policy if they choose.
P&S: 090715PS 4
Mr. Keene said that the Mayor would be announcing to Council what
has been appointed, and the City Manager would submit a report on
the scope and impact of work. The Council would then be able to
agendize an item for further discussion. He then reiterated that there
is that protection with the check and balance system. He also stated
that it's good for the Mayor to have some discretion.
Chair Espinosa said that he agrees with that approach. He recognized
that Palo Alto doesn't have the rough politics other towns have, but
the question needed to be explored. Adding extra voting layers adds a
level of bureaucracy that hasn't been necessary, but may need to be
thought about as we create a policy.
Mr. Baum asked if Staff should add verbiage indicating that any
Council Member may agendize the membership of an Ad Hoc
Committee.
Council Member Kishimoto reminded the Committee that this question
was raised with the Composting Committee. At that time it was
decided ultimately to interview and vote.
Mr. Baum noted that the Composting Committee was different, as it
was a Standing Committee.
Council Member Kishimoto asked if it was a Standing Committee
because it was more than six months.
Mr. Baum stated that it was a Standing Committee because it had
non-Council Members.
Council Member Kishimoto asked if these decisions are up to the Chair
unless a majority of Council challenges it.
Mr. Baum sajd that Staff can add language stating that "subject to the
majority of Council they can terminate a committee".
Council Member Kishimoto questioned if the majority rule applies to
everything, she said she thought the Council procedures stated that
the Chair has powers over the majority.
!'
Mr: Baum stated that both Roberts Rules of Order and Palo Alto's
procedures say that everything is subject to the majority of the
Council.
P&S: 090715PS 5
Council Member Kishimoto asked if that applies to an Ad Hoc
Committee.
Mr. Baum said that the majority rule does apply to Ad Hoc
Committees.
Council Member Kishimoto stated that it would not be a matter of
order.
Mr. Baum said that it would have to be placed on the agenda should
Council wish to vote on the Mayor's Ad Hoc Committee appointments.
Chair Espinosa thought that adding some wording to this affect would
be helpful.
Mr. Keene said that with some of the other committees there is
language saying that the Committee will dissolve in six months. He
asked if the Committee would like to make that more formal.
Chair Espinosa said he didn't know if it would hurt to have that
language in the policy. . ,
Council Member Kishimoto said the Mayor's announcement of a newly
formed.Ad Hoc Committee should be included in the minutes.
Mr. Baum said a public announcement should be made at the
conclusion of each Ad Hoc meeting. He then asked if Staff should add
these revisions or if the Committee would rather go to Council as is.
Chair Espinosa said that he thought they had covered everything, by
establishing quarterly reports, as well as discussing the differences
between Standing Committees and Ad Hoc Committees.
MOTION: Council Member Yeh moved, seconded by Council Member
Kishimoto, that 1) the P&S Committee recommends that the City
Council adopt the Ad Hoc Committee policy allowing Ad Hoc
Committees to be used on a limited basis to study City business in
greater depth than possible in the time allotted for Council and
Standing Committee meetings, and 2) Ad Hoc Committees will report
to Council quarterly.
r
MOTION PASSED: 3-0 Barton absent
3. Recommendation for Council Approval of the City's Legislative
Program and Structure.
P&S: 090715PS 6
,~ ATTACHMENT "B"
FROM CITY ATTORNEY
Policy and Services Committee: Julv 15.2009
THE HONORABLE CITY COUNCIL
Palo Alto, California
Attention: Policy and Services Committee
July 8, 2009
RE: Ad Hoc Committee Policy for City Council Procedures
Dear Members of the Council:
The City Council directed the Policy and Services Committee to consider a policy on
guidelines for Ad Hoc Committees. In response, the City Attorney drafted the attached policy
(Exhibit "1 "). The Policy and Services Committee can ultimately decide to recommend adoption
of the policy, make changes to ,the policy or decline to recommend adoption of the policy. This
report explains how Ad Hoc Committees are created, and the distinctions between Ad Hoc and"
Standing Committees.
1. Background: Legislative Bodies Are Subject to the Brown Act
Ad Hoc Committees do not constitute legislative bodies, and are thus exempt from
requirements of the Broum Act. The Brown Act applies to legislative bodies of local agencies.
Any commission, board, or other body of a local agency, created by charter, ordinance,
resolution, or formal action of a legislative body, is a legislative body. This is the case regardless
of whether the body is permanent or temporary, decision-making or advisory. There is an
exemption to this general rule for advisory committees (also called Ad Hoc Committees) that are
comprised solely of less than a quorum of the members of the legislative body that created the
advisory conu:i:littee. Cal. Gov. Code § 54952 (b).
2. Definition of Ad Hoc Committee
Ad:Hoc Committees have three distinct characteristics: (1) they are composed solely of
the memb,ers of the legislative body that are less than a quorum of the legislative body, (2) are
not subje~t to the Brown Act, and (3) do not have a continuing subject matter jurisdiction or a
meeting schedule fixed by charter, ordinance, resolution, or formal action of a legislative body.
§ 54952 (b).
7
THE HONORABLE CITY COUNCIL
July 8,2009
Page 2
RE: Ad Hoc Committee Policy for City Council Procedures
First, since the City of Palo Alto has nine council members, an Ad Hoc Committee must
have four or less Council members. Furthermore, any Ad Hoc Committee must consist only of
the Council members and not any members of other bodies such as Planning &Transportation
Commission, etc. If the Council designates less than a quorum of its members to meet with
representatives of another legislative body to perform a task, such as the making of a
recommendation, that joint group would be considered a Standing Committee subject to open
meeting and notice provisions of the Brown Act. Joinder v. City of Sebastopol, 125 Cal. App. 3d
799, 805 (1981) .
. Second, an Ad Hoc Committee shall not have a schedule fixed by charter, ordinance,
resolution or any other formal action of the City Council. For example, if the Council specifies
that a committee of less than a quorum is to meet every Tuesday, that committee will be subject
to the requirements of the Brown Act.
Third, an Ad Hoc Committee shollld not have a continuing subject matter jurisdiction.
For example, if the Council appoints four or less members to make recommendations about a
certain project in the City, and the committee dissolves when the project is over within a short
period of time, it will constitute an Ad Hoc Committee. When establishing Ad Hoc Committees,
function over form governs. For example, if the City Council issues a statement instructing that
an Ad Hoc Committee shall not exercise continuing subject matter jurisdiction or does not have a
fixed schedule, the committee may be deemed Standing rather than Ad Hoc if the purpose for
which it is established does not end.
3. Duration of Ad Hoc Committees
Although the Brown Act does not specify a time limit for Ad Hoc Committees, a long
existence may indicate continuing subject matter jurisdiction appropriate to a Standing
Committee rather than an Ad Hoc Committee. The office of Attorney General has found that a
public water district subcommittee in existence for several years was not an Ad Hoc Committee
and was subject to the Brown Act. 79 Ops. Cal. Att'y Gen. 69 (1996). However, the opinion did
not base its conclusion on the time of existence of the Committee but on the rationale that the
Committee had "continuing subject matter jurisdiction." For Council Ad Hoc Committees, we
are recommending a time limit of six months. The Planning Commission has a policy on Ad
Hoc Committees, and provides that the Ad Hoc Committees shall be formed for a specified
period oftime not to exceed six months. The Attorney General specifically stated an example of
six months as an acceptable time period for an Ad Hoc Committee in their booklet "The Brown r . Act" J •
4. Conclusion
Under the Brown Act, a committee of less than a quorum of the Council members, which
does not have a continuing subject matter jurisdiction or a meeting schedule fixed by charter,
ordinance, resolution or any other formal action of the Council, is an Ad Hoc Committee that
THE HONORABLE CITY COUNCIL
July 8) 2009
Page 3
RE: Ad Hoc Committee Policy for Citv Council Procedures
does not need to comply with requirements of the Brown Act. Even though the Brown Act does
not specify a certain time limit for Ad Hoc Committees, the Attorney Genera1 has opined that a
Council committee that lasts longer than six months is no longer an Ad Hoc Committee, but has
been transformed into a Standing Committee. Thus the draft Ad Hoc Committee policy requires
that any Ad Hoc Committee be disbanded after six months in order to prevent the determination
that they have acquired a continuing subject matter jurisdiction. In the alternative the City
Council can designate them as a Standing Committee.
The City Council Procedures do not have the force of law. They reflect mutually agreed
upon rules of procedure for the City Council to follow. Following review by the Policy &
Services Committee, the City Attorney will prepare a resolution reflecting their recommendation
for City Council changes (if any) to the City Council Procedures. This report was prepared with'
the assistance of our law clerk Bahareh Samsami.
GMB:mb
Attachment: Draft Policy Ad Hoc Committees -Exhibit" 1"
cc: James Keene, City Manager
Donna Grider, City Clerk
Steve Emslie, Deputy City Manager
Kelly Morariu, Assistant to the City Manager
.'
Respectfully submitted,
~.~ rY /.~~
GA: :Y M. BAUM
&yAttomey
Exhibit 1
Draft Ad Hoc Committee Policy Statement
I. Ad Hoc Committees
A. Policy. The Council may use Ad Hoc Committees on a limited basis where
necessary to study City business in greater depth than what is possible in the time
allotted for Council and Standing Committee meetings.
1. Purpose. These rules are intended to clarify the distinctions between
Standing and Ad Hoc Committees, and to set up guidelines for creation of
Ad Hoc Committees.
B. General Requirements. Council Ad Hoc Committees shall be subject to the
following procedural rules.
r ,
1. Definition of Ad Hoc Committee. An Ad Hoc Conunittee is an advisory
committee composed solely of less than a quorum of members of the
Council. The work of an Ad Hoc Committee is limited to a single finite
purpose. By contrast, a Standing Committee has continuing subject matter
jurisdiction extending beyond a six month period and/or a meeting schedule
fixed by charter, ordinance, resolution, or fOffilal action ofthe Council.
2. Brown Act. Ad Hoc Committees do not constitute legislative bodies and
are not subj ect to the requirements of the Bwwn Act.
3. Appointment. The Mayor or the City Council may appoint four or less
members of the Council to serve on an Ad Hoc Committee. In contrast, only
the Council and not the Mayor alone can create a Standing Committee. The
Mayor will publicly announce any Ad Hoc Committee created by him or
her, its membership and stated purpose.
4. Duration. Ad Hoc Committees are created for a finite period oftime not
to exceed six months. ·If an Ad Hoc Committee does not complete its task
within six months, it shall dissolve if the Council does not make it a Standing
Committee subject to the requirements of the Brown Act.
5. Members. Ad Hoc Committees shall consist of less than a quorum of
Council members only, and shall not include any other persons such as
members of other legislative bodies.
** OLD COpy -SEE EXHIBIT "A'
TO RESOLUTION **
090706 rob 0111198
,r ATTACHMENT "C" i
NOT YET APPROVED
Resolution No.
Resolution of the Council of the City of Palo Alto
Amending City Council Procedures to Add an
Ad Hoc Committee Policy
WHEREAS, Palo Alto Municipal Code section 2.04.100 requires the
Council to establish a handbook of procedural rules governing any aspect of the conduct
of meetings and hearings for the Council and its standing committees, including but not
limited to agenda requirements, the order of business, rules of order, rules of evidence,
closed session procedures and rules for public participation in meetings; and
WHEREAS, the Council wishes to set up guidelines for creation of Ad Hoc
Committees and to clarify the distinctions between Standing and Ad Hoc Committees;
NOW, THEREFORE, the Council of the City of Palo Alto does hereby
RESOLVE as follows:
SECTION 1. An amendment to the City Council Procedures to add a
. policy on Ad Hoc Committees, attached as Exhibit "A" to this Resolution, is hereby
adopted.
SECTION 2. The City Clerk is hereby directed to make copies of the
Council Procedures available to the public and to post the rules at an accessible location
in the Council Chambers, on the City'S website and to make copies available to all City
libraries other than the Children's Library. The form of the publication may be modified
if necessary or desirable.
II
II
II
II
II
II
II r
II
II
090828 sh 0111242 1
NOT YET APPROVED
SECTION 3. The Council finds that there is no possibility that the
prOVISions of the City Council Procedures will have a significant effect on the
environment and upon that basis finds the project exempt from the provisions of the
California Environmental Quality Act.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
City Attorney
(
090828 sh 0111242 2
"Exhibit A"
Draft Ad Hoc Committee Policy
I. Ad Hoc Committees
r I
A. Policy. The Council may use Ad Hoc Committees on a limited basis where
necessary to study City business in greater depth than what is possible in the time
allotted for Council and Standing Committee meetings.
1. Purpose. These rules are intended to clarify the distinctions between
Standing and Ad Hoc Committees, and to set up guidelines for creation of
Ad Hoc Committees.
B. General Requirements. Council Ad Hoc Committees shall be subject to the
following procedural rules.
1. Definition of Ad Hoc Committee. An Ad Hoc Committee is an advisory
committee composed solely of less than a quorum of members of the
Council. The work of an Ad Hoc Committee is limited to a single finite
purpose. By contrast, a Standing Committee has continuing subject matter
jurisdiction extending' for a lengthy time period and/or a meeting schedule
fixed by charter, ordinance, resolution, or formal action of the Council.
2. Brown Act. Ad Hoc Committees do not constitute legislative bodies and
are not subject to the requirements of the Brown Act.
3. Appointment. The Mayor or the City Council may appoint four or less
members of the Council to serve on an Ad Hoc Committee. In contrast, only
the Council and not the Mayor alone can create a Standing Committee. The
Mayor will publicly. announce any Ad Hoc Committee created by him or
her, its membership and stated purpose. The City Manager shall prepare a
report to Council about the anticipated time commitment required for staff to
assist the Ad Hoc Committee.
4. Duration. Ad Hoc Committees are created for a finite period of time. If
an Ad Hoc Committee does not complete its task by the end of the calendar
year, it shall dissolve subject to being appointed by the new Mayor in the
following year.
5. Members. Ad Hoc Committees shall consist of less than a quorum of
Council members only, and shall not include any other persons such as
members of other legislative bodies.
6. Reporting. Ad Hoc Committees shall report their recommendations to
the Council no less than once per quarter in writing or orally.
091023 sh 0111318
r ,
091023 sh 0111318
"Exhibit A"
Draft Ad Hoc Committee Policy
7. Tennination of Ad Hoc Committee by Majority of CotUlcil. A majority
of the CotUlcil may vote to tenninate any Ad Hoc Committee following
placement of the issue on an agenda.
8. Conclusion. A public announcement shall be made any time the Ad Hoc
Committee has concluded its work and/or upon dissolution.
City of Palo Alto
City Manager's Report
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: NOVEMBER 2, 2009
REPORT TYPE: REPORT OF OFFICIALS
DEPARTMENT:PLANNING AND
COMMUNITY ENVIRONMENT
CMR: 386:09
SUBJECT: Approval of the Extension of the Agreement Between San Mateo
County Convention and Visitors Bureau and the City of Palo Alto for
the Provision of Destination Palo Alto Visitorship Services in the
Amount of $240,000 for Fiscal Year 2009-10
RECOMMENDATION
Staff recommends that the City Council approve the extension of the agreement with the San
Mateo County/Silicon Valley Convention and Visitors Bureau (SMC/SVCVB) for the provision
of visitorship services for the second year of the contract for the 2009-10 fiscal year.
BACKGROUND
In October 2005, the City Council, through a Colleague's Memo authored by former Vice Mayor
Kleinberg and Council Members Beecham and Mossar, approved a motion to direct staff to
agendize a Council discussion that would explore enhancing Palo Alto's economy by improving
visitor outreach. The motion was approved unanimously.
In February 2006, staff returned to City Council and was directed to convene a committee of
stakeholders for a Palo Alto visitorship effort. The committee, Destination Palo Alto, was
chaired by the City Manager and held its first meeting on March 15, 2006. Stakeholders
included: the Palo Alto Chamber of Commerce, Stanford Athletics, Palo Alto Business
Improvement District, Palo Alto Weekly, Stanford Visitor's Center, Palo Alto Online, California
Avenue Area Development Association (CAADA), Stanford Shopping Center, Stanford
University, Town and Country Shopping Center, Palo Alto Arts Center and business
representatives from the hotel, retail and hospitality industries.
The goals of Destination Palo Alto included the development of a specific, actionable and
achievable plan that would strengthen visitorship in Palo Alto. Three key objectives included:
1. Getting more visitors to come to Palo Alto
2. Promoting return visitorship to Palo Alto
3. Getting visitors to stay longer, use additional amenities and spend more money
locally
CMR: 386:09 10f6
On April 14,2008 City Council directed staff to issue an RFP for visitorship services through
Destination Palo Alto to enhance the Palo Alto economy and authorized staff to describe and link
the Destination Palo Alto website to the City of Palo Alto website. In addition, staff was
directed to include $240,000 for the Destination Palo Alto program in the FY 2009 proposed
budget and $240,000 in the FY 2010 proposed budget.
Based on an input from the Administrative Services Department, a formula was identified for
estimating the City's return on its investment for Destination Palo Alto. Based on a 5% increase
in the occupied days for the five largest hotels in Palo Alto, the growth in revenue was calculated
to be approximately $240,000 yearly. This amount was proposed for two years as a part of the
FY 2009 and FY 2010 budgets.
DISCUSSION
On October 6, 2008, City Council authorized the City Manager or his designee to execute the
agreement with the San Mateo County/Silicon Valley Convention and Visitors Bureau
(SMC/SVCVB) in an amount not to exceed $455,000 for visitorship services for the fiscal year
2009 and fiscal year 2010.
In the first year of the contract, $215,000 was awarded to the SMC/SVCVB. $25,000 was
awarded to the Palo Alto Weekly for an upgrade of the Destination Palo Alto website ($15,000)
and for the provision of two visitor guides ($10,000). The two contracts totaled $240,000.
In the second year of the contract, the full amount of $240,000 is allocated for the provision of
visitorship services by the SMC/SVCVB.
Although in October 2008 City Council authorized the City Manager to extend the
agreement for a second year, considering the City's current economic situation and, in an
abundance of caution, staff is returning to City Council to confirm that the extension of this
contract still conforms to the wishes of City Council.
Staff has provided quarterly Destination Palo Alto updates to City Council which provide
information on:
1. Number ofleads generated
2. 'Potential room nights in leads
3. Total number of room nights booked
4. Percentage of non peak/target dates booked
For clarification, each lead is defined as one potential piece of business or one potential meeting
or conference. The number of room nights varies from lead to lead. These can vary from one
room night to many per lead. Definite room nights are rooms that are actually on the hotels'
books, or with contracts in place. In addition, the report identifies the number of promotional
packages created, familiarization tours hosted and other important milestones. The most recent
quarterly update for 3rd quarter 2009 is included as Attachment D to this report.
Because of the prospective nature of hotel bookings and event planning, staffhas received
information on all leads generated by the visitor's bureau up to this point. Since these events and
CMR: 386:09 20f6
hotel room bookings are often planned months and even years in advance, metrics often lag
outreach efforts. Beginning with the contract for FY 2010, numbers will be reported specifically
for Palo Alto going forward to assist the City in quantifying the impacts of outreach efforts. In
addition, specific metrics will be developed to quantify the increase in Palo Alto hotel occupancy
and transient occupancy tax. This will include a comparison in the increase of occupancy and
revenue that takes into consideration fluctuations in the economy. For example, when measuring
transient occupancy tax increases, a model will be crafted by the SMC/SVCVB and City staff
that benchmarks the City of Palo Alto's occupancy against that of similar cities to effectively
measure program effectiveness.
Staff and the SMC/SVCVB has compiled the following list of examples to highlight the value
added by the Destination Palo Alto effort to the local economy in the past year:
• 9,194 definite group meeting nights and tour and travel room nights were booked through
the leads/site visits from Destination Palo Alto with an approximate economic impact of
$2,666,260. Economic impact includes the hotel room revenue as well as secondary
impacts which include restaurant and retail sales in Palo Alto. (Non-hotel banquet
bookings and Senior Games bookings not included.).
• Occupancy appears to be improving, as of May, compared to national statistics.
According to Smith Travel Research * , the average decrease in occupancy in San
Jose/Santa Cruz area was 16.8%, but Palo Alto's decline was only 13.8% comparing
yearly totals from 2008 to 2009 (through August 2009). This increase is due in part to the
Senior Games. Palo Alto's occupancy level has been climbing back slowly since
February of 2009. (TheSFO/ San Mateo County area, where the impact of the
Convention and Visitors Bureau has been underway for a longer period of time, was one
of only five major areas nationwide with only single digit decreases in occupancy. *)
• Meetings and events booked in Palo Alto included:
o the 1 st U.S. and second-ever US-China Green Energy Forum
o a neuroplasticity meeting
o a U.S. travel show
o an Autism conference
o a cancer biology conference
o a new American Bar Association meeting
o a Morgan Stanley conference
o a Recorder Society conference
o multiple tour group blocks and additional non-room events such as weddings and
banquets.
(For competitiveness reasons not all exact group names are not listed here)
'Quote for Smith Travel Research report: "Among the Top 25 Markets, Washington, D.C., reported the smallest decreases in all three
key metrics: Occupancy fell 0.6 percent to 65.5 percent. ..
Four markets besides Washington, D.C., posted occupancy decreases of less than 5 percent: Boston, Massachusetts (-4.2 percent to 74.1
percent); San Francisco/San Mateo, California (-3.3 percent to 84.7 percent); Oahu Island, Hawaii (-2.6 percent to 78.3 percent); and
Tampa-St. Petersburg, Florida (-1.1 percent to 48.2 percent).
CMR: 386:09 30f6
• In the booking of events such as the US-China Green Energy Forum, Palo Alto has
demonstrated an emerging competitiveness to bid for meetings and events that without
the SMC/SVCVB would not occur. In this particular case, several cities aggressively bid
on this forum, with Palo Alto securing the event. As Palo Alto continues to develop as a
Green Tech/Clean Tech hub, competitiveness such as this will be criticaL
• In March, a sports familiarization trip brought numerous major sporting event planners to
the area for the first time. Among the events for which the Palo Alto/Stanford area is
now in the running: The National Kidney Transplant Games (7,000 potential room nights
for 2012). Individual sports planner site visits conducted in September and October,
2009, were completed which included planners ready to accept responses to requests for
proposals. These have the potential to provide bookings of709 to 2,700 room nights
each.
• Although not involved in the earliest (2007) bookings of Palo Alto hotel rooms for the
Senior games in 2009, Anthony Travel (the company with whom the Senior Games
contracted to provide room bookings) was included on the SMC/SVCVB's
familiarization tour in March of this year and, consequently, were able to secure
additional rooms/ blocks in Palo Alto for the games. 403 additional rooms and an
additional economic impact (beyond other bookings) of $116,870 (calculated at $290 per
room) is estimated. This does not include additional room nights booked by attendees in
response to the Extend Your Stay piece that went to them with their registration
information. In addition, a conservative estimate is that DP A representatives at the
Senior Games information booth convinced an average of25 people a day to stay in Palo
Alto while they went to see other parts of Northern California, such as Pebble Beach,
Muir Woods, Napa, etc. (Twenty people over 14 days is a minimum of350 room nights
kept in Palo Alto, rather than lost to areas outside. The approximate economic impact of
these was over $100,000.)
A number of site visits and familiarization ("fam") tours have been completed with specific
focus on Palo Alto hotels and other venues. These fam tours have been with both national and
international planners and have included film makers, as well.
The Destination Palo Alto website has grown exponentially since its launch. The link to
Destination Palo Alto on the City's website is live. The most recent quarterly report, for the
period through June 2009, has shown huge strides in user numbers. As noted in the second
quarter report, visitors to the website· have grown from 472 in January 2009 to 1963 in June
2009. Page views have grown from 791 to 7727 for the same period. Numbers for the third
quarter (July I-September 30, 2009) were not available at the time of the preparation of this
report. The Chamber of Commerce has been host to the Palo Alto Visitors Center since
November 2008. Visitors to Palo Alto are served at the Chamber and by phone each day.
As event planning, marketing of the Palo Alto area, hotels, venues and businesses continues,
quantifiable measures will ensure that Palo Alto specific data is reported on and measured. The
research by Godbe Research will quantify average spending by tourists to Palo Alto and estimate
the economic impact of increased business to Palo Alto venues.
CMR: 386:09 40f6
It is the recommendation of staff that the Destination Palo Alto agreement be extended for the
second year, as approved by City Council on October 6,2008. Six months prior to the expiration
of the two year pilot program, a recommendation will be formulated and presented to City
Council for the provision of ongoing Destination Palo Alto efforts for their review and action.
RESOURCE IMPACT
The first year of Destination Palo Alto Visitor Program was funded through an allocation of the
City's General Fund for FY 2009. The amount of the funding allocated for the program was
based on the expected growth in hotel occupancy that results from implementation of the
program. The expected growth in occupancy was estimated to be 5 percent, which translates into
$240,000. Because of the lag time between the booking of events and the actual event itself, the
time frame for the collection of quantifiable data is affected. For this reason, data is expected
next year that will quantify results and assist in evaluating program effectiveness. Staff does
believe however, that the City's hotel stays have benefited by the efforts ofthe Destination Palo
Alto program. Metrics to evaluate this impact will be a part of the reporting for Destination Palo
Alto for fiscal year 2010. The Destination Palo Alto program is a two-year pilot with $240,000
for the second year allocated as a part of the 2009-11 budget.
ENVIRONMENTAL REVIEW
This action by the City Council is not considered a project pursuant to Section 21065 of the
California Environmental Quality Act.
PREPARED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
CMR: 386:09
USAN BARNES, Manager
conomic Develop entlRedevelopment
CURTIS WILLIAMS, Director
Planning and Community Environment
50f6
ATTACHMENTS
Attachment A:
Attachment B:
Attachment C:
Attachment D:
Attachment E:
CMR: 386:09
Letter extending contract to November 1,2009
CMR 335:08: Approval of an Agreement Between San Mateo County
Convention and Visitors Bureau and the City of Palo Alto for the
Provision of Destination Palo Alto Visitorship Services
Agreement between San Mateo County Convention and Visitors' Bureau
and the City of Palo Alto
Destination Palo Alto 3rd Quarter Report
Letters of Support
6of6
October 15, 2009
Anne Le Clair
San Mateo County/Silicon Valley
Convention and Visitors Bureau
111 Anza Boulevard, Suite 410
Burlingame, CA 94010
Dear Anne,
ATTACHMENT A
This Will amend the extension agreed upon by both parties on September 14, 2009.
This confirms that the the City of Palo Alto (City) and the San Mateo County/Silicon Valley
Convention and Visitor's Bureau
(CVB) waive the 30 day notice period provided in Paragraph 2 of the contract for Destination Palo
Alto services (City of Palo·Arto Contract No S09126967) and that the City e.an extend the contract
for up to one year .by providing written notice to the Consultant any time prior to Novernber6,
2.009.
Th.is letter shall serve as official notification by both parties that the first year contract will be
extended through November 6, 2009 in order to give the City the necessary time to exercise its
option for an additional one year term. It also serves as written aS$urance from the City of Palo
Alto that (pro-rated) payment will be made by the City to the CVB through November 6, and that
all other contractual reqUirements will remain in force through that. date.
Should the City of Palo Alto elect not to extend the agreement for a second year, it shall provide
written notice to CV8 and tt:le Contract shall continue for 60 daysfo!lowing such written notice.
During this 60 day period, the City will pay CVBa pro-rated portion of the contract amount and
CVB will continue to perform the work described in the Contract.
Very truly yours,
James Keene
City Manager,
City of Palo Alto
250 Hamilton Avenue
. Palo Alto, CA 94301
ATTACHMENTB
City of Pal,o Alto
City Manager~s Report
-<-'-~-----""'-.---"-~~---'''---'-"~--------,~-~------,-""""-""",,,,-.-----_ ..... " ..
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: OCTOBER 6, 2008
DEPARTMENT: CITY
MANAGER'S OFFICE
CMR: 335:08
SUBJECT: Approval Of An Agreement Between San Mateo County Convention
And Visitors Bureau And The City Of Palo Alto For The Provision Of
Destination Palo Alto Visitorship Services In The Amount Of
$215,000 For Fiscal Year 2008-09 And $240,000 For Fiscal Year 2009-
10 And Approval Of An Agreement Between The Palo Alto Weekly
And The City Of Palo Alto For The Provision Of The Destination Palo
Alto Website Update And Revision, Visitor Guide And Associated
Services In The Amount Of $25,000 For Fiscal Year 2008-09
RECOMMENDATION
Staff recommends that Council:
1. Authorize the City Manager or his designee to execute the attached
agreement with San Mateo County Convention and Visitors Bureau (Attachment
A) in an amount not to exceed $455,000 for visitorship services for fiscal year
. 2008-09 and fiscal year 2009-10.
2. Authorize the City Manager or his designee to execute. the attached
. agreement with the Palo Alto Weekly (Attachment B) in an amountnot to exceed
$25,000 for fiscal year 2008-09 for Destination Palo· Alto website update and
revision, visitor guide and assoCiated services.
BACKGROUND
In October 2005, the City Council, through a Colleague's Memo authored by then Vice
Mayor Kleinberg and Council Members Beecham and Mossar, directed staff to agendize
a Council discussion that would explore enhancing Palo Alto's economy by improving
visitor outreach. The motion was approved unanimously. /.
In February 2006, staff returned to City Council and was directed to convene a committee
of stakeholders for a Palo Alto visitorship effort. The committee, Destination Palo Alto,
CMR: 335:08 10f5
was chaired by the City Manager and held its first meeting on March 15, 2006.
Stakeholders included: the Palo Alto Chamber of Commerce, Stanford Athletics, Palo
Alto Business Improvement District, Palo Alto Weekly, Stanford Visitor's Center, Palo
Alto Online, California A venue Area Development Association (CAADA), Stanford
Shopping Center, Stanford University, Town and Country Shopping Center, Palo Alto
Arts Center and business representatives from the hotel, retail and hospitality industries.
The goals of Destination Palo Alto included the development of a specific, actionable and
achievable plan that would strengthen visitorship in Palo Alto. Three key objectives
included:
1. Increasing visitors to Palo Alto
2. Promoting return visitorship to Palo Alto
3. Increasing visitors stay, using additional amenities and spending more locally.
On April 14,2008, City Council directed staff to issue a Request For Proposal (RFP) for
visitorship services through Destination Palo Alto to enhance the Palo Alto economy and
authorized staff to describe and link the Destination Palo Alto website to the City of Palo
Alto website. In addition, staff was directed to include $240,000 for the Destination Palo
'Alto program in the 2008-09 proposed budget and $240,000 in the 2009-10 proposed
budget.
Based on an estimate by the Administrative Services Department, a formula was
identified for estimating the City's return on its investment for Destination Palo Alto.
Based on a 5% increase in the transient occupancy tax for the five largest hotels in Palo
Alto, the growth in revenue was calculated to be approximately $240,000 yearly. This
amount is proposed for two years as a part of the 2008-09 and 2009-10 budgets.
DISCUSSION
Solicitation Process
The Destination Palo Alto Request for Proposal's (RFP) was issued May 12, 2008 with
proposals due on June 10, 2008. Four proposals were received from the following
groups:
• The Placemaking Group
• Rabuck/Stranger
• Alison Williams
• San Mateo County Convention and Visitors Bureau and Palo Alto Weekly (with
Palo Alto. Chamber of Commerce as a designated sub consultant)
Copies of each proposal were distributed to an evaluation panel comprised of the
following members:
Dan Fenton, CEO of Team San Jose, San Jose Convention and Visitors' Bureau
Jim Rebosio, Palo Alto Sheraton and Westin hotels
Bob Carruesco, Stanford Athletics
Lalo Perez, Director, Administrative Services Department
Erik Jacobsen, Three Story Studio
CMR: 335:08 20f5
Kbashayar Alaee, Community Services Department
Susan Barnes, Economic Development Manager
Interviews with the evaluation panel were set for July 3, 2008. Prior to the interview,
Rabuck/Stranger withdrew from the process.
On July 3, interviews were held with The Placemaking Group and San Mateo Convention
and Visitors Bureau, Palo Alto Chamber of Commerce, and Palo Alto Weekly.
As a result of the interview with San Mateo Convention and Visitors Bureau, Palo Alto
Chamber of Commerce, and Palo Alto Weekly (SMCCVB, PAW, PACC), the evaluation
panel requested that a second interview be scheduled with this group for July 17. In
addition, Alison Williams who was unable to participate in the interview on. July 3,was
scheduled for an interview on July 17th.
On July 1 ih, Alison Williams was interviewed in person by the evaluation panel. The
evaluation team also conducted a second interview with the San Mateo Convention and
Visitors Bureau, Palo Alto Chamber of Commerce, and Palo Alto Weekly. Proposals
. were evaluated according to the following criteria:
• Quality and completeness of proposal
• Quality and effectiveness of the solution or services provided by the proposer
• Proposers' track record in delivering visitor services and evaluation of the
effectiveness of services, including the experience of staff to be assigned to the
project, and the engagement of similar scope and complexity to the City of Palo
Alto
• Cost to the City of Palo Alto
• Proposer's financial stability
• Proposer's ability to perform the work within the time specified
As a result of the RFP evaluation process, the evaluation team evaluated the proposers,
providing an aggregate score as follows:
Proposer
San Mateo CCV, PAW, PACC
The Placemaking Group
Alison Williams
Aggregate Score
590
459
332
The San Mateo County Convention and Visitors Bureau (SMCCVB, PAW, PACC)
proposal was the top-ranked proposal. The proposer's combination of national and
international expertise, combined with local experience, was determined to be the best fit
for the provision of a targeted vision and implementation plan for Destination Palo Alto.
The SMCCVB, PAW, PACC proposal will address the provision of visitorship services
for Palo Alto from a local, regional, international and media perspective. The SMCCVB,
CMR: 335:08 30f5
in a subcontracting relationship with the Palo Alto Chamber of Commerce will establish
a local visitor center, open seven days a week. In addition to the local marketing effort,
the SMCCVB has a strong track record of providing national and international marketing
to tour providers and the tourism industry, in general. The Palo Alto Weekly will modify
the Destination Palo Alto website and calendars to reflect current market research and
develop a new, glossy restaurant guide and revised rack brochure. The SMCCVB will
also integrate Palo Alto into its efforts, renaming the visitors bureau the Silicon
Valley/San Mateo Convention and Visitors Bureau.
In addition, the SMCCVB will initiate a contract with Godbe Research to create a fonnal
research plan and conduct surveys to evaluate Palo Alto visitors' perception of the area
and what factors draw them to Palo Alto. Based on this research, SMCCVB will design a
"branding" campaign and outreach plan to entice visitors to visit and stay longer in Palo
Alto.
RESOURCE IMPACT
The first year of the Destination Palo Alto Visitor Program will be funded through an
allocation from the City's General Fund for FY 08-09. The amount of funding allocated
for the program is based· on the expected growth in hotel occupancy that results from
. implementation of the program. The expected growth in occupancy is estimated to be 5
percent, which translates into $240,000. $240,000 is included in the 2008-09 Adopted
Budget for the Destination Palo Alto Visitor Program. Staff intends for the program to be
a two-year pilot with $240,000 for the second year being proposed as part of the 2009-10
budget.
POLICY IMPLICATIONS
Staff will provide City Council with annual reports and a recommendation for further
funding options prior to the end of the two year contract period.
ENVIRONMENTAL REVIEW
This action by the City Council is not considered a project pursuant to Section 21065 of
the California Environmental Quality Act.
ATTACHMENTS
Attachment A:
Attachment B:
CMR: 335:08
. Agreement between San Mateo County Convention and Visitors'
Bureau and the City of Palo Alto
Agreement between Palo Alto Weekly and the City of Palo Alto
40f5
Prepared By:
anager
Economic Development/ Redevelopment
Department Head:· _Q~. ~~~~~\NL--~-Y-=--!I!!:.' ~!.JL--__ _
CURTIS WILLIAMS, Interim Director
Planning and Community Environment
City Manager Approval: ~ -:> /f. f V
JAM ENE
City ager
CMR: 335:08 50f5
I ,
AGREElVIENT FOR PROFESSIONAL SERVICES
CITY OF PALO ALTO CONTRACT NO. S09126967 Attachment A
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND
SAN MATEO COUNTY CONVENTION & VISITORS BUREAU
FOR PROFESSIONAL SERVICES
(DESTINATION PALO ALTO)
This AGREEMENT is entered into October 6, 2008 by and between the CITY OF PALO
ALTO, a charter city and a municipal corporationofthe State of California ("CITY"),
and, SAN MATEO COUNTY CONVENTION & VISITORS BUREAU, a California
Corporation, located at 111 Anza Blvd., Burlingame, California ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to hire a consultant for Visitor Promotion ("Project") and desires to
engage a consultant to assist in connection with the Project ("Services").
B. CONSULTANT has represented that it has the necessary professional expertise,
qualifications, and capability, and all required licenses and/or certifications to provide the
Services.
C. CITY in relianc~ on these representations desires to engage CONSULTANT to
provide the Services as more fully described in Exhibit "A", attached to and made a part
of this Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, .
this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services
described in Exhibit "A" in accordance with the terms and conditions contained in this
Agreement. The perfomlance of all Services shall be to the reasonable satisfaction of
CITY.
final 1
SECTION 2. TERIVI. The teIDl of this Agreement will commence on October 20, 2008
and shall continue for a period not to exceed one year teIDlinating on October 19, 2009.
The City has the right to extend the tenn of this Agreement for one additional one year
period, based upon the same conditions of the initial teIDl. The City shall notify
CONSULTANT in writing of its exercise of its option for an additional one year teIDl not
less than thirty days prior to the end of the then current tenn. The obligation of
CONTRACTOR to perfoIDl the Services will commence in accordance with the time
schedule set forth in Exhibit "A" unless temlinated earlier pursuant to Section 19 of this
Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the
perfoIDlance of Services under this Agreement. CONSULT ANT shall complete the
Services within the teIDl of this Agreement and in accordance with the schedule set forth
in Exhibit "B", attached to and made a part of this Agreement. Any Services for which
times for perfoIDlance are not specified in this Agreement shall be commenced and
completed by CONSULTANT in a reasonably prompt and timely manner based upon the
circumstances and direction communicated to the CONSULTANT. CITY's agreement to
extend the teIDl or the schedule for perfoIDlance shall not preclude recovery of damages
for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for perfonnance of the Services described in Exhibit "A", including
both payment for professional services and reimbursable expenses, shall not exceed Four
Hundred Fifty Five Thousand Dollars ($455,000). The applicable rates and schedule of
payment are set out in Exhibit "B", entitled "SCHEDULE OF
PERFORMANCE/COMPENSATION," which is attached to and made a part of this
Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the
provisions of Exhibit "B". CONSULTANT shall not receive any compensation for
Additional Services perfoIDled without the prior written authorization of CITY.
Additional Services shall mean any work that is deteIDlined by CITY to be necessary for
the proper completion of the Project, but which is not included within the Scope of
Services described in Exhibit "A".
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit
invoices to the CITY consistent with the deliverables and schedule of events as
delineated in Exhibit "B' describing the services performed and the applicable charges.
The information in CONSULTANT's payment requests shall be subject to verification by
CITY. CONSULTANT shall send all invoices to the City's project manager at the
address specified in Section 13 below. The City will generally process and pay invoices
within thirty (30) days of receipt.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall
be perfoIDled by CONSULTANT or under CONSULTANT's superviSIOn.
CONSULT ANT represents that it possesses the professional and technical personnel
final 2
necessary to perform the Services required by this Agreement and that the personnel have
sufficient skill and experience to perfonn the Services assigned to them. CONSULTANT
represents that it, its employees and sub consultants, if permitted, have and shall maintain
during the term of this Agreement all licenses, permits, qualifications, insurance and
approvals of whatever nature that are legally required to perfonn the Services.
All of the services to be furnished by CONSULTANT under this agreement shall meet
the professional standard. and quality that prevail among professionals in the same
discipline and of similar knowledge and skill engaged in related work throughout
California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself
informed of and in compliance with all federal, state and local laws, ordinances,
regulations, and orders that may affect in any manner the Project or the perfonnance of
the Services or those engaged to perform Services under this· Agreement.
CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give
all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to
CITY, any and all errors, omissions, or ambiguities in the work product submitted to
CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared
plans and specifications or other design documents to construct the Project,
CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities
discovered prior to and during the course of construction of the Project. This obligation
shall survive termihation of the Agreement.
SECTION 9; [Intentionally Deleted.]
SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in
performing the Services under this Agreement CONSULTANT, and any person
employed by or contracted with ,CONSULTANT to furnish labor and/or materials under
. this Agreement, shall act as and be an independent contractor and not an agent or
employee of the CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall
not assign or transfer any interest in this Agreement nor the performance of any of
CONSULTANT's obligations hereunder without the prior written consent of the city
manager. Consent to one assignment will not be deemed to be consent to any subsequent
assignment. Any assignment made without the approval of the city manager will be void.
SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY
agrees that subconsultants may be used to complete the Services. The subconsultants
authorized by CITY to perform work on this Project are:
1. Palo Alto Chamber of Commerce
final 3
CONSULTANT shall be responsible for directing the work of its subconsultants and for
any compensation due to subconsultants. CITY assumes no responsibility whatsoever
concemingcompensation. CONSULT ANT shall be fully responsible to CITY for all acts
and omissions of a subconsultant. CONSULTANT shall change or add subconsultants
only with the prior approval of the city manager or his designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will aSSIgn Anne
LeClair as the project director to have supervisory responsibility for the perfonnance,
progress, and execution of the Services and to represent CONSULT ANT during the day-
to-day work on the Project. If circumstances cause the substitution of the project director,
project coordinator, or any other key personnel for any reason, the appointment of a
substitute project director and the assignment of any key new or replacement personnel
will be subject to the prior written approval of the CITY's project manager.
CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds
do not perfonn the Services in an acceptable manner, are uncooperative, or present a
threat to the adequate or timely completion of the Project or a threat to the safety of
persons or property.
The City's project manager is Susan Barnes, Economic Development Manager, Palo
Alto, CA 94303, Telephone:(650)-329-2604. The project manager will be
CONSULTANT's point of contact with respect to perfonnance, progress and execution
ofthe Services. The CITY may designate an alternate project manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without
limitation, all writings, drawings, plans, reports, specifications, calculations, documents,
other materials and copyright interests created in the performance of the Services "nd
intended to be delivered to the CITY under this Agreement (the Deliverables) shall be
and remain the exclusive property of CITY without restriction or limitation upon their
use. CONSULTANT agrees that all copyrights which arise from creation of the
Deliverables pursuant to this Agreement shall be vested in CITY, and CONSULTANT
waives and relinquishes all claims to copyright or other intellectual property rights in·
favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of
such materials available to any individual or organization without the prior written
approval of the City Manager or designee. CONSULTANT makes no representation of
the suitability of the work product for use in or application to circumstances not
contemplated by the scope of work.
SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable
time during the term of this Agreement and for three (3) years thereafter, .
CONSULTANT's records pertaining to matters covered by this Agreement.
CONSULTANT further agrees to maintain and retain such records for at least three (3)
years after the expiration or earlier termination of this Agreement.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify,
defend and hold harmless CITY, its Council members, officers, employees and agents
final 4
(each an "Indemnifi ed Party") from and against any and all demands, claims, or liability
of any nature, including death or injury to any person, property damage or any other loss,
including all costs and expenses of whatever nature including attorneys fees, experts fees,
court costs and disbursements ("Claims") resulting from, arising out of or in any manner
related to performance or nonperformance by CONSULTANT, its officers, employees,
agents or contractors under this Agreement, regardless of whether or not it is caused in
part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require
CONSULTANT to indemnify an Indemnified Party from Claims arising from the active
negligence, sale negligence or willful misconduct of an Indemnified Party.
16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate
as a waiverof the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any
covenant, term, condition or provision of this Agreement, or of the provisions of any
ordinance or law, will not be deemed to be a waiver of any other term, covenant,
condition, provisions, ordinance or law, or of any subsequent breach or violation of the
same or of any other term, covenant, condition, provision, ordinance or law.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sale cost and expense, shall obtain and maintain, in full
force and effect during the term ofthis Agreement, the insurance coverage described in .
Exhibit liD". CONSULTANT and its contractors, if any, shall obtain a policy
endorsement naming CITY as an additional insured under any general liability or
automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers with
AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all
contractors of CONSULT ANT retained to perforn1 Services under this Agreement will
obtain and maintain, in full force and effect during the term of this Agreement, identical
insurance coverage, naming CITY as· an additional insured under such policies as
required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with
the execution of this Agreement. The certificates will be subject to the approval of
CITY's Risk Manager and will contain an endorsement stating that the insurance is
primary coverage and will not be canceled, or materially reduced in coverage or limits,
by the insurer except after filing with the Purchasing Manager thirty (30) days' prior
written notice of the cancellation or modification, CONSULT ANT shall be responsible
for ensuring that current certificates evidencing the insurance are provided to CITY's
Purchasing Manager during the entire term of this Agreement.
final 5
18.4. The procuring of such required policy or policies of insurance will not be construed
to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions
of this Agreement. Notwithstanding the policy or policies of insurance, CONSULT ANT
will be obligated for the full and total amount of any damage, injury, or loss caused by or
directly arising as a result of the Services performed under this Agreement, including
such damage, injury, or loss arising after the Agreement is terminated or the term has
expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR
SERVICES.
19.1. The city manager may suspend the performance of the Services, in whole or in
part, or terminate this Agreement, with cause, by giving sixty (60) days prior written
notice thereof to CONSULTANT. For puposes of this provision, cause to terminate shall
consist of: (1) material breach of this Agreement or (2) commission of fraudulent
practices., Upon receipt of such notice, CONSULTANT will immediately discontinue its
performance of the Services.
,
19.2 . CONSULTANT may terminate this Agreement or suspend its performance of the
Services by giving thirty (30) days prior written notice thereof to CITY, but only in the
event of a substantial failure of perfortnance by CITY.
19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City
Manager immediately any and all copies of Deliverables, whether or not completed,
prepared by CONSULTANT or its contractors, if any, or given to CONSULT ANT or its
contractors, if any, in connection with this Agreement. Such materials will become the
property of CITY.
19.4. If this Agreement is suspended or terminated on account of a default by
CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that
portion of CONSULTANT's services which are of direct and immediate benefit to CITY
as such determination may be made by the City Manager acting in the reasonable
exercise of hislher discretion
19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will
. operate as a waiver on the part of CITY of any of its rights under this Agreement.
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified
mail, addressed as follows:
final
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
6
To CONSULTANT: Attention of the project director
at the address of CONSULTANT recited above
SECTION 21. CONFLICT OF INTEREST.
21.1. In accepting this Agreement, CONSULT ANT covenants that it presently has no
interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the perfonnance of the Services.
21.2. CONSULTANT further covenants that, in the perfonnance of this Agreement, it
will not employ subconsultants, contractors or persons having such an interest.
CONSULT ANT certifies that no person who has or will have any financial interest under
this Agreement is an officer or employee of CITY; this provision will be interpreted in
accordance with the applicable provisions of the Palo Alto Municipal Code and the
Government Code of the State of California.
21.3. If the Project Manager detennines that CONSULT ANT is a "Consultant" as that
term is defined by the Regulations of the Fair Political Practices Commission,
CONSULTANT shall be required and . agrees to file the appropriate financial disclosure
documents required by the Palo Alto Municipal Code and the Political Refonn Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code
section 2.30.510, CONSULTANT certifies that in the perfonnance of this Agreement, it
shall not discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation, housing
status, marital status, familial status, weight or height of such person. CONSULTANT
acknowledges that it has read and understands the provisions of Section 2.30.510 of the
Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties
for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
to nondiscrimination in employment, including completing the fonn furnished by CITY
and set forth in Exhibit " .
SECTION 23. MISCELLANEOUS PROVISIONS.
23.1. This Agreement will be governed by the laws of the State of California.
23.2. In the event that an action is brought, the parties agree that trial of such action will
be vested exclusively in the state courts of California in the County of Santa Clara, State
of California.
23.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys' fees expended in connection
with that action. The prevailing party shall be entitled to recover an amount equal to the
fair market value of legal services provided by attorneys employed by it as well as any
attorneys' fees paid to third parties.
final 7
23.4. This document represents the entire and integrated agreement between the parties
and supersedes all prior negotiations, representations, and contracts, either written or oral.
This document may be amended only by a written· instrument, which is signed by the
parties.
23.5. The covenants, terms, conditions and provisions of this Agreement will apply to,
and will bind, the heirs, successors, executors, administrators, assignees, and consultants
of the parties.
23.6. If a court of competent jurisdiction finds or rules that any prOVIsIOn of this
Agreement or any amendment thereto is void or unenforceable, the unaffected provisions
of this Agreement and any amendments thereto will remain in full force and effect.
23.7. All exhibits referred to in this Agreement and any addenda, appendices,
attachments, and schedules to this Agreement which, from time to time, may be referred
to in any duly executed amendment hereto are by such reference incorporated in this
Agreement and will be deemed to be a part of this Agreement.
23.8. This Agreement is subject to the fiscal provisions of the Charter of the City of
Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any
penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the
following fiscal year, or (b) at any time within a fiscal year in the event that funds are
only appropriated for a portion of the fiscal year and funds for this Agreement are no
longer available. This Section 23.8 shall take precedence in the event of a conflict with
. any other covenant, term, condition, or provision of-this Agreement.
23.9. The individuals executing this Agreement represent and warrant that they have the
legal capacity and authority to do so on behalf oftheir respective legal entities.
final 8
IN WITNESS WHEREOF, the parties hereto have by their duly
authorized representatives executed this Agreement on the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED:
Director of Administrative
Services
AttacIunents:
EXHIBIT "A": SCOPE OF WORK
[CONSULTANT]
By: {)/vt.-£ 91 'il()Pa~'A
Name: Ct "'-!At b\. L'i Oa.,iv
Title:4>rs:si Otcl::-4" GtO
EXHIBIT "B":
EXHIBIT "C":
SCHEDULE OF PERFORMANCE/COMPENSATION
INSURANCE REQUIREMENTS
EXHIBIT "D": CERTIFICATION OF NONDISCRIMINATION
final 9
Exhibit A
Destination Palo Alto
FY 2008-09 and FY 2009-10
Scope of Services
Milestones and Timeline:
Quarterly reports will be provided to the City of Palo Alto. These will
include (but are not limited to):
• Number of leads identified, generated
• ' Total potential economic impact of leads generated
• Total number of room nights booked
• Targets reached for non-peak nights
• Events booked
• Packages created
• PACE Report with comparison to prior year
• Hotel occupancy comparison with TOT comparison (by month, year)
• Number of visitors, inquiries to Visitor Center
• Number of visitors to DPA website
• Report on average daily spending by overnight visitors to Palo Alto
• Number of fam* tours and fam tour attendees (including descriptions
of size of potential accounts)
• Media updates (including list of articles/online pieces, broadcasts
generated)
• International fam tour updates
• Advertising reports including publications of advertisements about
Palo Alto that have been featured and audience size reached
Activities to achieve Milestones
Year One
Quarterly Reports will include a report on milestones and activities
achieved each quarter.
Activities for Quarter One
• Begin dissemination of meeting leads to Palo Alto properties
• Go to all Palo Alto hotels and motels for "need dates" to be included in
bimonthly planner blast
• Hold initial meeting of Destination Palo Alto Advisory Committee and
begin building local visitor database for future email special and calendar
updates. Determine information they would like to see collected in survey
• Set up a visitor center within the Palo Alto Chamber office, including
signage, Destination Palo Alto phone line, personnel to staff, and signage
1
• Contract with Godbe Research, create formal research plan and surveys
to get feel for Palo Alto visitors' perception of the area, what will draw
them there, etc, and begin research
• Secure buy-in of key Paio Alto properties wiliing io participate in Godbe
Research surveying and begin formal research
• Initiate meetings with Stanford Public Affairs representatives to determine
how best Destination PA may get the word out about events, drive room
nights and drive other locals and area visitors to special events
• Initiate one-on-one meetings/discussions with Stanford Athletic Dept
heads to determine possible target events w/room nights, gather specs for
individual fields and sports facilities at Stanford, and determine how .
Destination Palo Alto and SMCCVB may best promote upcoming sporting
events, including packaging with hotel room nights
• Add all key Palo Alto players /groups to list solicited for upcoming events
by SMCCVB and begin inclusion of PA events in published and online
calendars
• . Gather Palo Alto property information and incorporate all Palo Alto
properties into meeting planner guide, visitor guide and include on
SMCCVB website
• Issue press release to all major meeting planner publications, announcing
coverage of Palo Alto, highlighting key selling points of area
• Contact all meeting planners in SMCCVB data base, orienting them to
Palo Alto and invite them out for site visits
• Contact all meeting planners who have not considered the Bay Area due
to airport area concerns and explain that we have a great non-airport area
for them to see
• Conduct training for Palo Alto hotel sales managers on how best to work
with SMCCVB-generated leads, etc, and instruct all Palo Alto hotels on
how to participate in the broad,national "hot dates" program paid for by
the CVB, in which they may go online themselves and add hot dates/rates
to a site aimed at planners seeking last minute bookings;·
• M~ke site visits (SMCCVB sales team) to all Palo Alto properties with
meeting space to become familiar with group booking opportunities
• Complete site visits to all Palo Alto properties without meeting space
(InternationalfTourism Development Director, Film Commissioner and
Publications Manager/media outreach person) to become familiar, take
photographs
• Contact all internal customers, local customers and key groups (e,g., Palo
Alto Downtown, Stanford) notifying them of new Visitor Center
• Solicit Palo Alto properties' input for key trade shows of interest to their
markets
2
• Inform Palo Alto properties of upcoming shows for possible partnering; to
determine level of interest in tour groups, particular!y inbound international
• Label all outgoing correspondence to meeting planners to generate
meeting planner inquiries on the Palo Alto and its properties
• Personally invite all past fam attendees back to see Palo Alto properties
(Sales Team)
• Feature Palo Alto venues ranging from unique Stanford University spots to
downtown buildings and squares in emails to producers and filming scouts
by the SMCCVB's film commissioner, touting them as fresh, undiscovered
filming locations
• Find Palo Alto angle in all media lead responses (e.g. "romance
packages", green places to stay
• . Update all existing editorial used for outreach to include Palo Alto angle
• Include Palo Alto special events and special hotel and mote! promotions
in SMCCVB's monthly email update to database of thousands of .
prospective visitors interested in visiting the Bay Area
• Issue a special update to our CTTC/SFCVB representatives overseas,
notifying them of the change and describing Palo Alto and its properties in
detail. Likewise, cne will be informed that Palo Alto is a key new area of
promotion
• Prepare and submit report of Destination PAISMCCVB activities to City of
Palo Alto as specified in agreement
Activities for Qua rter Two
• Continue research through Godbe Research, collecting sufficient data to
be used in "branding"/outreach of Palo Alto area to entice more visitors
into the area
• Conduct Destination Palo Alto Advisory Committee meeting to update
group, determine progress, next steps. .
• Feature Palo Alto properties in fam tour for incentive meeting planners
and fam for Jet Airways' top travel agents from India
• Add new activities to workplan
• Continue operation of visitor center, other actiVities initiated in priorquarter
• Convene meetings with Stanford Medical Department chairs, soliciting info
on medical research underway, recent breakthroughs, prospective groups
to recruit; availability of expert speakers in particular areas of expertise for
use in recruiting conferences
• Restructure layout of SMCCVB/Silicon Valley visitor guide to break area
into geographic sections and begin to address drivers of visits, as outlined
in preliminary research results
• Meet with representatives of Stanford Alumni and Development offices to
. determine whether additional reunions/functions might be added with
rooms assistance from SMCCVB
• Feature Palo Alto properties in fam tour for incentive meeting planners
3
• Meet with The Cribbs Group and representatives of Anthony Travel to
discuss targeting of additional events by SMCCVB sales team
• Continue dissemination of meeting leads to Palo Alto properties
• Update PA area and properties in domestic and international meeting
planner fam tours
• Continue promoting Paio Alto in all appropriate editorial outreach and
responses
• Continue promoting individual Palo Alto locations to production companies
and filming scouts
• Prepare and submit report of Destination PA/SMCCVB activities to City of
Palo Alto as specified in agreement
Activities for Quarter Three
• Release results of phase one of formal research to City of Palo Alto and
hold meeting of Destination Palo Alto Advisory Committee with Chamber
to discuss how best to capitalize on research results, determine progress
made, additional activities needed
• Add new activities to work plan
• Continue operation of visitor center, other activities initiated in prior
quarters
• Bring travel media fam (national travel writer lly-ins) to Palo Alto
• Conduct at least one additional fam tour that incorporates key Palo Alto
properties and Palo Alto area
• Provide special flyer/information to Stanford summer camp reps for
distribution to parents of summer camp enrollees, promoting stays while
the children are attending the camps .
• Broaden photo contest to include Palo Alto shots
• Initiate meetings with Stanford academic department chairs to determine
individual accomplishments, interests, events, possible
conferences/symposia that could be targeted for the area and begin
targeting those meetings· .
• Continue dissemination of meeting leads to Palo Alto properties
• Continue meeting planner site visits to Palo Alto properties
• Continue inclusion of PA area and properties in domestic meeting planner
fam tours, fam tours for international travel agents, and all appropriate
editorial outreach and responses
• . Continue promoting individual Palo Alto locations to production companies
and filming scouts
• Highlight Palo Alto at out of town reception for meeting planners (Midwest)
• Prepare and submit report of Destination PA/SMCCV8 activities to City of
Palo Alto as specified in agreement
Activities for Quarter Four
4
• Conduct additional research with Palo Alto Visitors (Godbe. second phase
summer snapshot
• Hold meeting of Destination Palo Alto Advisory Committee to determine
progress made, additional activities needed
• Add new activities to work plan
• Continue operation of visitor center, other activities initiated in prior
quarters
• Feature and make Palo Alto hotel stops on fam tour for Sacramento, East
Coast and Midwestern meeting planners
• Conduct informal surveying of Senior Games attendees to determine per
diem spending while at the games
• Continue dissemination of meeting leads to Palo Alto properties
• . Continue inclusion of PA area and properties in domestic and international
travel agent meeting planner fam tours
• Continue promoting Palo Alto in all appropriate editorial outreach and
responses
• Continue promoting individual Palo Alto locations to production companies
and filming scouts
• Highlight Palo Alto at out of town reception for meeting planners (East
Coast)
• Prepare and submit report of Destination PNSMCCVB activities to City of
Palo Alto as specified in agreement (this will include Quarterly and Annual
Report with Milestones reported)
Year Two
Activities for First Quarter
• Release phase two results from Godbe Research to City of Palo Alto and
Destination Palo Alto Committee
• Conduct meeting of Destination Palo Alto Advisory Committee and use
Phase two information to finalize branding of Palo Alto for visitors, review
Phase 2 research information, determine and initiate next steps, additional
. activities
• Add new activities to work plan
• Submit marketing plan and benchmarks for Year Two, Quarters two, three
and four to City of Palo Alto.
• Continue operation of visitor center, other activities initiated in prior
quarters
• Continue dissemination of meeting leads to Palo Alto properties
• Continue inclusion of PA area and properties in domestic and international
travel agent and meeting planner fam tours .
• Continue promoting Palo Alto in all appropriate editorial outreach and
responses
5
• Continue promoting individual Palo Alto locations to production companies
and "filming scouts
• Prepare and submit report of Destination PA/SMCCV8 activities to City of
Palo Alto as specified in agreement
Activities for Second Quarter
• Continue dissemination of meeting leads to Palo Alto properties
• Continue inclusion of PA area and properties in domestic meeting planner
fam tours
• Additional benchmarks to be reported on, based on marketing plan
submitted Quarter One, Year Two
• .Conduct meeting of Destination Palo Alto Advisory committee to ensure
that all projects are on task
• Add new activities to work plan
• Continue operation of visitor center, other activities initiated in prior
quarters
• Continue inclusion of PA properties on fam tours for international travel
agents
• Continue promoting Palo Alto in new editorial content and in all
appropriate editorial outreach and responses
• Continue promoting individual Palo Alto locations to production companies
a nd filming scouts
• Modify SMCCVB and Destination Palo Alto website in keeping with the
research
• Additional benchmarks to be reported on, based on marketing plan
submitted Quarter One, Year Two
• Prepare and submit report of Destination PAISMCCVB activities to City of
Palo Alto as specified in agreement
Activities for Third Quarter
• Modify Destination Palo Alto website and calendars as needed, based
upon final research
• Hold meeting of Destination Palo Alto Advisory committee to ensure that
all projects are on task
• Conduct Destination Palo Alto Committee meeting to reflect on progress
to date and next steps
• Add new activities to work pia n
• Continue operation of visitor center, other activities initiated in prior
quarters .
• Continue dissemination of meeting leads to Palo Alto properties
• Continue inclusion of PA area and properties in domestic meeting planner
fam tours
6
• Continue inclusion of PA properties on fam tours for international travel
agents
• Continue promoting Palo Alto in all appropriate editorial outreach and
responses
• Continue promoting individual Palo Alto locations to production companies
and filming scouts
• Prepare and submit report of Destination PAISMCCVB activities to City of
Palo Alto as specified in agreement
Activities for Fourth Quarter
• Conduct Destination Palo Alto Committee meeting to reflect on progress
to date and next steps
• Assist in crafting recommendations for ongoing Destination Palo Alto
operations
• Add new activities to work plan
• Continue operation of visitor center, other activities initiated in prior
quarters
• Continue dissemination of meeting leads to Palo Alto properties
• Continue inclusion of PA area and properties in domestic meeting planner
fam tours
• Continue inclusion of PA properties on fam tours for international travel
agents
• Continue promoting Palo Alto in all appropriate editorial outreach and
responses
• Continue promoting individual Palo Alto locations to production companies
a'ndfilming scouts
• Prepare and submit report of Destination PAISMCCVB activities to City of
Palo Alto as specified in agreement (this will include Quarterly and Annual
Report with Milestones reported) .
• Prepare final report with recommendations for Destination Palo Alto efforts
going, forward including information from DPA committee, stakeholders
and others
7
Exhibit B
Destination Palo Alto
Payment Schedule
FY 2008-2010
Payments will be made according to the following schedule:
Payment 1
Payment 2
Payment 3
Payment 4
Payment 5
Total Payments
To SMCCVB
Payment 1
Payment 2
Payment 3
Payment 4
Total Payments
$30,000
$50,000
$45,000
$45,000
$45,000
Within 30 days of contract signing
Completion of First quarter
Following submission/approval of quarterly report
Completion of Second quarter
Following submission/approval of quarterly report
Completion of Third quarter
Following submission/approval of quarterly report
Completion of Fourth quarter
Following submission/approval of quarterly
report and acceptance of annual report on
milestones
$215,000 Year One FY 2008-09
$60,000
'. $60,000
$60,000
-$60,000
Completion of First quarter
Following submission/approval of quarterly report
. Completion of Second quarter
Following submission/approval of quarterly report
Completion of Third quarter
Following submission/approval of quarterly report
Completion of Fourth quarter
Following submission/approval of quarterly report
and acceptance of annual report on milestones
including recommendations for Destination Pa 10
Alto
. $240,000 Year Two FY2009-10
EXHIBITC
INSURANCE REQIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY). AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF TIfE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFfED BELOW,
AFFORDED BY COMPANIES WlTH A BEST'S KEY RATING OF A-:Vn, OR H1GHER, LICENSED OR AUTHOruZED TO
TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNlA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUJREMENTS, AS SPECIFIED, BELOW:
MINIlvIUM LIMITS I I
REQUIRED I TYPE OF COVERAGE REQUIREMENT EACH
OCCURRENCE AGGREGATE
YES WORKER'S COMPENSATION STATUTORY
YES AUTOMOBILE LIABILITY STATUTORY
BODILY INJURY $1,000,000 $1,000,000
YES COMPREHENSIVE GENERAL
LIABILITY, INCLUDING PERSONAL PROPERTY DAMAGE $1,000,000 $1,000,000 .
INnJRY, BROAD FORM PROPERTY
DAMAGE BLANKET CONTRACTUAL, I BODILY INnJRY & PROPERTY DAMAGE $1,000,000 $1,000,000 •
AND FIRE LEGAL LIABILITY COlVlBINED.
BODIL Y INJURY $1,000,000 $1,000,000 . EACH PERSON $1,000,000 $1,000,000
COMPREHENSIVE AUTOMOBILE . EACH OCCURRENCE $1,000,000 $1,000,000
YES LIABILITY, INCWDING, OWNED.
HIRED, NON·OWNED PROPERTY DAMAGE $1,000,000 $1,000,000
BODlL Y INnJRY AND PROPERTY DAMAGE, $1,000,000 $1,000,000
COMBINED
NO PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
i ALL DAMAGES PERFORMANCE $1,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: PROPOSER, AT ITS SOLE COST AND EXPENSE,
:' SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT
AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY PROPOSER AND ITS
SUBCONSULTANS, IF ANY, BUT ALSO,WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY
AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSURES CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS,
AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
II.
A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE
OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY .:... SEE SAMPLE AGREEMENT FOR SERVICES.
SUBMJT CERTIFICA TE(S) OF INSURANCE EVIDENCING REQUIRED COVE~GE, OR COMPLETE THIS SECTION
AND IV THROUGH V, BELOW, ~ \ s. $ 't f 0...,. ti~c ~ t d ;j h.~,£"\ .
A. NAME AND ADDRESS OF COMPANY AFFORDING COVERAGE (NOT AGENT OR BROKER):
B. NAME, ADDRESS, AND PHONE NUMBER OF YOUR INSURANCE AGENTIBROKER:
-_ .. _--------------------------------
C. POLICY NUMBER(S):
D. DEDUCTIBLE AMOlJNT(S) (DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRlOR
APPROVAL):
III. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AND PROPOSER'S
SUBMITTAL OF CERTIFICATES OF INSURANCE EVIDENCING COMPLIANCE WITH THE REQUIREMENTS
SPECIFIED HEREIN.
IV. ENDORSEMENT PROVISIONS, W1TH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSURES"
A. PRlt-.1i\RY COVERAGE
W1TH RESPECT TO CLAIMS ARlSING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRlMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRlED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSURES.
B. CROSS LIAJ3ILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSURES UNDER THE
POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RlGHTS OF THE INSURED
AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL
NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OHIER
THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT
LEAST A IHlRTY (30) DAY WRlTTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF
PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRlTTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
V. PROPOSER CERTIFIES THAT PROPOSER'S INSURANCE COVERAGE MEETS THE ABOVE REQUIREMENTS:
THE INFORM A nON HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. SIGNATURE(S) MUST BE
SAME SIGNA TURE(S) AS APPEAR(S) ON SECTION n, ATTACHMENT A, PROPOSER'S INFORMATION FORM.
Finn:
Signature:
Name:
Signature:
Name:
NOTICES SHALL BE MAILED TO:
A. Workers Compensation: Employers Compensation Insurance Co.
255 California Street. Suite 300
San Francisco, CA 94111-4904
Property, General Liability, Auto: Great American Insurance Group
580 Walnut Street
Cincinnati, OH 45202
B. Johndrow, Leveroni, Vreeburg
845 Marshall Street
Redwood City, CA 94063
(650) 369-2921
C. Workers Compensation: FN 0322324 OS
Property, General Liability, Auto: PAC 346-00-86
D. No deductibles on anything but property which has a deductible of $500.
EXHIBIT D
Certification of Nondiscrimination
As suppliers of goods or services to the City of Palo Alto, the firm and individuals
listed below certify that they do not discriminate in employment of any person
because of race, skin color, gender, age, religion, disability, national origin,
ancestry, sexual orientation, housing status, marital status, familial status, weight
or height of such person; that they are in compliance with all Federal, State and
local directives and executive orders regarding nondiscrimination in employment.
1. If Proposer is INDIVIDUAL, sign here:
Date: ------
Proposer's Signature
Proposer's typed name and title
2. If Proposer is PARTNERSHIP or JOINT VENTURE, at least (2)
Partners or each of the Joint Venturers shall sign here:
Partnership or Joint Venture Name (type or print)
Date: _____ _
Date: -------
Member' of the Partnership or Joint Venture
signature
Member of the Partnership or Joint Venture
signature
3. If Proposer is a CORPORATION, the duly authorized officer(s) shall
sign as follows:
The undersigned certify that they are respectively:
----.I--!-:!z~?c~~!d~~. ~i~;~~r;~! -C6-0 -' _and
Title
Of the corporation named below; that they are designated to sign the
Proposal Cost Form by resolution (attach a certified copy, with corporate seal,
if applicable, notarized as to its authenticity or Secretary's certificate of
authorization) for and on behalf of the below named CORPORATION, and
that they are authorized to execute same for and on behalf of said
CORPORATION.
Title:Jrt.$1·6~"'" ¢ erf)
~ ~)J/7/1 . ~ /lP~a..vt Date:
By: G!\~ ~l~ cgr., ~ '/'JA/I)j
Date:
San Mateo County Convention & Visitors Bureau
Board of Directors Meeting Minutes
Hiller Aviation Museum
June 16, 2005
LeClair presented the benefits to the entire county and Palo Alto of including Palo l\Jto in
the San Mateo County BID. Following her presentation, Lewin noted that it was a good
idea and made a motion to move forward with the action steps presented; seconded by .
Moore and approved by all.
San Mateo County Convention & Visitors Bureau
Board of Directors Meeting Minutes
Westin Hotel, Millbrae .
August 18, 2005
The Executive Committee recommends that we proceed by offering the services to all
properties in Palo Alto. Motion by Carlton to move forward with the Executive
Committee recommendation, second by Lewin, approved by all.
ATTACHMENT B
AGREE1VIENT FOR PROFESSIONAL SERVICES
CITY OF PALO ALTO CONTRACT NO.s09129386
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND
EMBARCADERO PUBLISHING COMPANY
FOR PROFESSIONAL SERVICES
(DESTINATION PALO ALTO)
This AGREEMENT is entered into October 6, 2008 by and between the CITY OF PALO
ALTO, a charter city and a municipal corporation of the State of California ("CITY"),
and, EMBARCADERO PUBLISHING COMPANY, a California Corporation, 703 High
Street., Palo Alto, California ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to hire a consultant for Visitor Promotion ("Project") and desires to
engage a consultant to assist in connection with the Project ("Services").
B. CONSULTANT has represented that it has the necessary professional expertise,
qualifications, and capability, and all required licenses and/or certifications to provide the
Services.
C. CITY in reliance on these representations desires to engage CONSULT ANT to
provide the Services as more fully described in Exhibit "A", attached to and made a part
of this Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions,
this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services
described in Exhibit "A" in accordance with the terms and conditions contained in this
Agreement. The performance of all Services shall be to the reasonable satisfaction of
CITY.
SECTION 2. TERM. The term of this Agreement will commence on October 20, 2008
and shall continue for a period not to exceed one year terminating on October 19, 2009.
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SECTION 2. TER.;vI. The term of this Agreement will commence on October 20, 2008
and shall continue for a period not to exceed one year terminating on October 19, 2009.
The City has the right to extend the tem1 of this Agreement for one additional ene year
period, based upon the same conditions of the initial term. The City shall notify
CONSULTA:-JT in writing of its exercise of its option for an additional one year term not
less than thiny days prior to the end of the then current terrn. The obligation of
CONTRA.CTOR to perform the Services will commence in accordance with the time
schedule set forth in Exhibit "A" unless terminated earlier pursuant to Section 19 of this
Agreement.
SECTION 3. SCHEDULE OF PERFORtvIANCE. Time is of the essence in the
performance of Services under this Agreement. CONSULTANT shall complete the
Services within the terrn of this Agreement and in accordance with the schedule set forth
in Exhibit "A", attached to and made a part of this Agreement. Any Services for which
times for performance are not specified in this Agreement shall be commenced and
completed by CONSULTANT in a reasonably prompt and timely manner based upon the
circumstances and direction communicated to the CONSULT ANT. CITY's agreement to
extend the term or the schedule for perforrnance shall not preclude recovery of damages
for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit "A", including
both payment for professional services and reimbursable expenses, shall not exceed
Twenty-Five Thousand Dollars ($25,000). The applicable rates and schedule of payment
are set out in Exhibit "A", which is attached to and made a part of this Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the
provisions of Exhibit "A". CONSULT ANT shall not receive any compensation for
Additional Services perfOlmed without the prior written authorization of CITY.
Additional Services shall mean any work that is determined by CITY to be necessary for
the proper completion of the Project, but which is not included within the Scope of
Services described in Exhibit "A".
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit
invoices to the CITY consistent with the deliverables and schedule of events as
delineated in Exhibit "A' describing the services performed and the applicable charges.
The inforrnation in CONSULTANT's payment requests shall be subject to verification by
CITY. CONSULTANT shall send all invoices to the City'S project manager at the
address specified in Section 13 below. The City will generally process and pay invoices
within thirty (30) days of receipt.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall
be perfOlmed by CONSULTANT or under CONSULTANT's supervISIOn.
CONSULTANT represents that it possesses the professional and technical personnel
necessary to perform the Services required by this Agreement and that the personnel have
sufficient skill and experience to perform the Services assigned to them. CONSULTANT
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represents that it, its employees and subconsultants, if permitted, have and shall maintain
during the tenn of this Agreement all licenses, pennits, qualifications, insurance and
approvals of whatever nature that are legally required to perfonn the Services.
All of the services to be furnished by CONSULTANT under this agreement shall meet
the professional standard and quality that prevail among professionals in the same
discipline and of similar knowledge and skill engaged in related work throughout
California under the same or similar circumstances.
SECTION 7. COMPLIANCE 'WITH LAWS. CONSULTANT shall keep itself
informed of and in compliance with all federal, state and local laws, ordinances,
regulations, and orders that may affect in any maIIDer the Project or the perfonnance of
the Services or those engaged to perform Services under this Agreement.
CONSULTANT shall procure all pennits and licenses, pay all charges and fees, and give
all notices required by law in the perfonnance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, ilt no cost to
CITY, any and all errors, omissions, or ambiguities in the work product submitted to
CITY, provided CITY gives notice to CONSULTANT. If CONSULTANT has prepared
plans and specifications or other design documents to construct the Project,
CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities
discovered prior to and during the course of construction of the Project. This obligation
shall survive termination of the Agreement.
SECTION 9. [Intentionally Deleted.]
SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreedthatin
performing the Services under this Agreement CONSULT ANT, and any person
employed by or contracted with CONSULTANT to furnish labor and/or materials under
this Agreement, shall act as and be an independent contractor and not an agent or
employee of the CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall
not assign or transfer any interest in this Agreement nor the perfonnance of any of
CONSULTANT's obligations hereunder without the prior written consentofthe city
manager. Consent to one assignment will not be deemed to be consent to any subsequent
assignment. Any assignment made without the approval of the city manager will be void.
SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY
agrees that subconsultants may be used to complete the Services. The subconsultants
authorized by CITY to perform work on this Project are:
1. Palo Alto Chamber of Commerce
CONSULT ANT shall be responsible for directing the work of its subconsultants and for
any compensation due to subconsultants. CITY assumes no responsibility whatsoever
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concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of a subconsultant. CONSULTANT shall change or add subconsultants
only \vith the prior approval of the city manager or his designee.
SECTION 13. PROJECT MANAGElVIENT. CONSULTANT \vill assign Bill
Jolln50n as the project director to have supervisory responsibiiity for the performance,
progress, and execution of the Services and to represent CONSULT ANT during the day-
to-day work on the Project. If circumstances cause the substitution of the project director,
project coordinator, or any other key personnel for any reason, the appointment of a
substitute project director and the assignment of any key new or replacement personnel
will be subject to the prior written approval of the CITY's project manager.
CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds
do not perform the Services in an acceptable maMer, are uncooperative, or present a
threat to the adequate or timely completion of the Project or a threat to the safety of
persons or property.
The City'S project manager is Susan Barnes, Economic Development Manager, Palo
Alto, CA 94303, Telephone:(650)-329-2604. The project manager will be
CONSULTANT's point of contact with respect to performance, progress and execution
of the Services. The CITY may designate an alternate project manager from time to time.
SECTION 14. Intentionally deleted
SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable
time during the term of this Agreement and for three (3) years thereafter,
CONSULTANT's records pertaining to matters covered by this Agreement.
CONSULTANT fmiher agrees to maintain and retain such records for at least three (3)
years after the expiration or earlier termination of this Agreement.
§ECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify,
defend and hold harmless CITY, its Council members, officers, employees and agents
(each an "Indemnified Party") from and against any and all demands, claims, or liability
of any nature, including death or injury to any person, property damage or any other loss,
including all costs and expenses of whatever nature including attorneys fees, experts fees,
court costs and disbursements ("Claims") resulting from, arising out of or in any manner
related to performance or nonperformance by CONSULTANT, its officers, employees,
agents or contractors under this Agreement, regardless of whether or not it is caused in
part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require
CONSULTANT to indemnify an Indemnified Party from Claims arising from the active
negligence, sole negligence or willful misconduct of an Indemnified Party.
final 4
16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate
as a waiver of the right of mdemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
SECTION 17. \VAJVERS. The waiver by either party of any breach or violation of any
covenant, tenn, condition or provision of this Agreement, or of the provisions of any
ordinance or law, will not be deemed to be a waiver of any other tenTI, covenant,
condition, provisions, ordinance or law, or of any subsequent breach or violation of the
same or of any other term,covenant, condition, provision, ordinance or law.
SECTION 18. INSURt\.NCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full
force and effect durjng the term ofthis Agreement, the insurance coverage described in
Exhibit "D". CONSULT ANT and its contractors, if any, shall obtain a policy
endorsement naming CITY as an additional insured under any general liability or
automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers wi th
AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all
contractors of CONSULTANT retained to perform Services under this Agreement will
obtain and maintain, in full force and effect during the term of this Agreement, identical
Insurance coverage, naming CITY as an additional insured under such policies as
required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with
the execution. of this Agreement. The certificates will be subject to the approval of
CITY's Risk Manager and will contain an endorsement stating that the insurance is·
primary coverage and will not be canceled, or materially reduced in coverage or limits,
by the insurer except after filing with the Purchasing Manager thiliy (30) days' prior
written notice of the cancellation or modification, CONSULTANT sha11 be responsible
for ensuring that current certifIcates evidencing the insurance are provided to CITY's
Purchasing Manager during the entire tenn of this Agreement.
18.4. The procuring of stich required policy or policies of insurance will not be construed
to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions
of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT
will be obligated for the full and total amount of any damage, injury, or loss caused by or
directly arising as a result of the Services performed under this Agreement, including
such damage, injury, or loss arising after the Agreement is terminated or the term has
expired.
SECTION 19. TERlvlINATION OR SUSPENSION OF AGREEMENT OR
SERVICES.
final 5
19.1. The city manager may suspend the performance of the Services, in whole or in
part, or terminate this Agreement, with cause, by giving sixty (60) days prior written
notice thereof to CONSULTANT. For puposes of this provision, cause to terminate shall
consist of: (1) material breach ofthis Agreement or (2) commission of fraudulent
practices. Upon receipt of such notice, CONSCL TANT will immediately discontinue its
perfomlance of the Services.
19.2. CONSULTANT may terminate this Agreement or suspend its performance of the
Services by giving thirty (30) days prior written notice thereof to CITY, but only in the
event of a substantial fai lure of performance by CITY.
19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City
Manager immediately any and all copies of Deliverables, whether or not completed,
prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its
contractors, if any, in connection with this Agreement. Such materials will become the
property of CITY.
19.4. If this Agreement is suspended or terminated on account of a default by
CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that
portion of CONSULTANT's services which are of direct and immediate benefit to CITY
as such determination may be made by the City Manager acting in the reasonable
exercise of his/her discretion
19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will
operate as a waiver on the part of CITY of any of its rights under this Agreement.
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified
mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the project director
at the address of CONSULTANT recited above
SECTION 21. COl'l'FLICT OF INTEREST.
21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no
interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any maimer or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement, it
will not employ subconsultants, contractors or persons having such an interest.
final 6
CONSULTANT certifies that no person who has or will have any financial interest under
this Agreement is an officer or employee of CITY; this provision will be interpreted in
accordance with the applicable provisions of the Palo Alto :Y1unicipal Code and the
Government Code of the State of California.
21.3. If the Project lVfanager determines that CONSULTANT is a "Consultant" as that
term is defined by the Regulations of the Fair Political Practices Commission,
CONSULTANT shall be required and agrees to file the approprIate financial disclosure
documents required by the Palo Alto Municipal Code and the Political Refonn Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code
section 2.30.510, CONSULT Al'\fT certifies that in the performance of this Agreement, it
shall not discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation, housing
status, marital status, familial status, weight or height of such person. CONSULTANT
acknowledges that it has read and understands the provisions of Section 2.30.510 ofthe
Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties
for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
. to nondiscrimination in employment, including completing the form furnished by CITY
and set forth in Exhibit "E."
SECTION 23. MISCELLANEOUS PROVISIONS.
23.1. This Agreement will be governed by the laws of the State of California.
23.2. In the event that an action is brought, the parties agree that trial of such action will
be vested exclusively in lhe state courts of California in the County of Santa Clara, Slate
of California.
23.3. The prevailing patty in any action brought to enforce the provisions ofthis
Agreement may recover its reasonable costs and attorneys' fees expended in connection
with that action. The prevailing party shall be entitled to recover an amount equal to the
fair market value of legal services provided by attorneys employed by it as well as any
attorneys' fees paid to third parties.
23.4. This document represents the entire and integrated agreement between the parties
and supersedes all prior negotiations, representations, and contracts, either written or oral.
This document may be amended only by a written instrument, which is signed by the
parties.
23.5. The covenants, tenns, conditions and provisions of this Agreement will apply to,
and will bind, the heirs, successors, executors, administrators, assignees, and consultants
of the parties.
23.6. If a court of competent jurisdiction finds or rules that any provISIOn of this
Agreement or any amendment thereto is void or unenforceable, the unaffected provisions
of this Agreement and any amendments thereto will remain in full force and effect.
final 7
23.7. All exhibits refelTed to in this Agreement and any addenda, appendices,
attachments, and schedules to this Agreement which, from time to time, may be referred
to in any duly executed amendment hereto are by such reference incorporated in this
Agreement and will be deemed to be a part of this Agreement.
23.8. This Agreement is subject to the fiscal provisions of the Charter of the City of
Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any
penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the
following fiscal year, or (b) at any time within a fiscal year in the event that funds are
only appropriated for a portion of the fiscal year and funds for this Agreement are no
longer available. This Section 23.8 shall take precedence in the event of a conflict with
any other covenant, term, condition, or provision of this Agreement.
23.9. The individuals executing this Agreement represent and walTant that they have the
legal capacity and authority to do so on behalf of their respective legal entities.
final 8
IN WITNESS 'WHEREOF, the parties hereto have by their duly
authorized representatives executed this Agreement on the date first above written.
-, I CITY OF P ALO ALTO [CONSlJLTAN 1
BY.~·
City Manager
Name: /Lilla/At JJ/~1I":t---
APPROVED AS TO FORM: Title: f?4f'j~ £11 bp.·ltU6,'A P-4It./4':.;4
Senior Asst. City Attorney
APPROVED:
Director of Administrative
Services
Attachments:
EXHIBIT "A":
EXHIBIT "B":
EXHIBIT "e":
EXHIBIT "D":
final
SCOPE OF WORK/COMPENSATION
INTENTIONALLY OMITTED
INSURANCE REQUIREMENTS
CERTIFICATION OF NONDISCRIMINATION
9
Exhibit A
Destination Palo Alto
FY 2008-09 and FY 2009-10
Scope of Services: Embaicadero Publishing Co.
(Palo Alto Weekly & Palo Alto Online)
Coordinate and collaborate with the other Destination Palo Alto partners
(San Mateo Convention & Visitors Bureau and Palo Alto Chamber of
Commerce) to develop information resources in print and online aimed
at visitors to the Palo Alto area, including:
.. Redesign, update and maintain the Destination Palo Alto Web site
(http://www.destinationpaloalto.com) and enhance its local event
information offerings (First quarter of contract)
• Develop and produce an updated "rack" brochure promoting the City
of Palo Alto and containing map(s) to the retail centers of the city
(Second quarter of contract)
• Publish Visitors Guide twice a year and enhance its effectiveness
through newly developed content and upgraded printing quality
(Third quarter of contract)
Payment schedule:
$15,000 upon completion of website changes
$ 5,000 upon completion of updated rack brochure
$ 5,000 upon completion of Visitors Guide
1
EXHIBIT C
INSURCANCE REQIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERIv[ OF THE
CONTRACT OBTAIN ,-\ND MAI0ITAIN fNSURA;-';CE IN THE :\lvlOCNTS FOR THE COVER.".GE SPECIFIED BELOW,
AFFORDED BY COMPANIES WITH A BEST'S KEY RATING OF A-:VI1, OR HIGHER, LICENSED OR AUTHORIZED TO
TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFOR.'IIA.
A WARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW:
I
I
I --. ... _ ..
MINIMUM LI1v!ITS
REQUIRED TYPE OF COVERAGE REQUIREMENT EACH
OCCURRENCE AGGREGATE
YES WORKER'S COMPENSA nON STATUTORY
YES AUTOMOBILE LIABILITY STATUTORY
BODILY INJURY $ i ,000,000 I $1,000,000
YES COMPREHENSIVE GENERAL
LIABILITY, INCLUDING PERSONAL PROPERTY DAMAGE $1 ,000,000 • $1.000,000
INJURY, BROAD FORNI PROPERTY
DAMAGE BLANKET CONTRACTUAL, BODILY INJURY & PROPERTY DAMAGE $1,000,000 I $1,000,000
AND FIRE LEGAL LLA.BILITY COMBINED,
BODIL Y INJURY $1,000,000 $1,000,000
EACH PERSON $1,000,000 $1,000,000
COMPREHENSIVE AUTOMOBILE . EACH OCCURRENCE $J,OOO,OOO $1,000,000
YES LIABILITY, INCLUDING, OWNED,
HIRED, NON-O WNED PROPERTY DAMAGE $1,000,000 $1,000,000
BODILY INJURY AND PROPERTY DAMAGE, $1,000,000 $1,000,000
COMBINED
YES!\(1 PROFESSIONAL LIABILITY,
THD INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WI-lEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE ALL DAMAGES $1,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: PROPOSER. AT ITS SOLE COST AND EXPENSE.
SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT
AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY PROPOSER AND ITS
SUBCONSUL TANS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY
AND PROFESSIONAL INSURANCE. NAMING AS ADDITIONAL INSURES CITY. ITS COUNCIL MEMBERS, OFFICERS, AGENTS.
AND EMPLOYEES.
1. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE
OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY -SEE SECTION TBD, SAMPLE AGREEMENT FOR
SERVICES,
I!. SUBMIT CERTIFICATE(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE, OR COMPLETE THIS SECTION
AND IV THROUGH V, BELOW.
A. NAME AND ADDRESS OF COMPANY AFFORDING COVERAGE (NOT AGENT OR BROKER):
B. NAME, ADDRESS, AND PHONE NUMBER OF YOUR INSURANCE AGENTlBROKER:
C. POLlCY NL1vlBER(S):
D. DEDUCTiBLE A:VIOUNT(S) (DEDUCTiBLE AMOl'NTS IN EXCESS OF 55,000 REQUIRE CiTY'S PRIOR
APPROVAL):
III. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AND PROPOSER'S
SUBMITTAL OF CERTIFICATES OF INSURANCE EVIDENCING COMPLIANCE WITH THE REQUIREMENTS
SPECIFIED HEREIN. .
IV. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSURES"
A. ~lUMARY CQVEP~<\GE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRltvlARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSURES.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSURES UNDER THE
POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED
AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL
NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
I. IF THE POLlCY IS CANCELED BEFORE JTS EXPIRATION DATE FOR ANY REASON OTHER
THAN THE NON-PA YMENT OF PREMIUM, THE ISSUING COMP ANY SHALL PROVIDE CITY AT
LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCEL LA TION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PA YivlENT OF
PREMIUM, THE ISSUING COMPANY SHALL PROV1DE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CA NCELLA TION.
V. PROPOSER CERTIFIES THAT PROPOSER'S INSURANCE COVERAGE MEETS THE ABOVE REQUIREMENTS:
THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. SIGNATURE(S) MUST BE
SAME SIGNATURE(S) AS APPEAR(S) ON SECTION II, ATTACHMENT A, PROPOSER'S INFORMATION FORM.
Firm:
Signature:
Name:
(Print or type name)
Signature:
Name:
NOTICES SIULL BE MAILED TO:
PURCHASING AND
CONTR-\CT ADMINISTR-\TION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, C-\. 943GJ.
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EXHIBIT D
Certification of Nondiscrimination
As suppliers of goods or services to the City of Palo Alto, the firm and individuals
listed below certify that they do not discriminate in employment of any person
because of race, skin color, gender, age, religion, disability, national origin,
ancestry, sexual orientation, housing status, marital status, familial status, weight
or height of such person; that they are in compliance with all Federal, State and
local directives and executive orders regarding nondiscrimination in employment.
1. If Proposer is INDIVIDUAL, sign here:
Oate: ______ _
Proposer's Signature
Proposer's typed name and title
2. If Proposer is PARTNERSHIP or JOINT VENTURE, at least (2)
Partners or each of the Joint Venturers shall sign here:
Partnership or Joint Venture Name (type or print)
Oate: ______ _
Date: -------
Member of the Partnership or Joint Venture
signature
of the Partnership or Joint Venture
signature
3. If Proposer is a CORPORATION, the duly authorized officer(s) shall
sign as follows:
y lhat they are respectively:
--~~~~~~~--~----------and
Title
Of the corporation named below; that they are designated to sign the
Proposal Cost Form by resolution (attach a certified copy, with corporate seal,
if applicable, notarized as to its authenticity or Secretary's certificate of
authorization) for and on behalf of the below named CORPORATION, and
that they are authorized to execute same for and on behalf of said
CORPORATION.
Corporation Name (type or print)
Date:
Title: ________ ,------__________ _
Date:
Title:_,------________________ _
ATTACHMENT C
~.' ~ ~ I
AGREEMENT FOR PROFESSIONAL SERVICES
CITY OF PALO ALTO CONTRACT NO. S09126967
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND
SAN MATEO COUNTY CONVENTION & VISITORS BUREAU
FOR PROFESSIONAL SERVICES
(DESTINA TION PALO ALTO)
This AGREEMENT is entered into October 6, 2008 by and between the CITY OF PALO
ALTO, a charter city and a municipal corporation of the State of California ("CITY"),
and, SAN MATEO COUNTY CONVENTION & VISITORS BUREAU, a California
Corporation, located at 111 Anza Blvd., Burlingame, California ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to hire a consultant for Visitor Promotion ("Project") and desires to
engage a consultant to assist in connection with the Project ("Services").
B. CONSULTANT has represented that it has the necessary professional expertise,
qualifications, and capability, and all required licenses and/or certifications to provide the
Services.
C. CITY in reliance on these representations desires to engage CONSULTANT to
provide the Services as more fully described in Exhibit "A", attached to and made a part
of this Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions,
this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services
described in Exhibit "A" in accordance with the tem1S and conditions contained in this
Agreement. The perfollnance of all Services shall be to the reasonable satisfaction of
CITY.
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SECTION 2. TERM. The term of this Agreement will commence on October 20, 2008
and shall continue for a period not to exceed one year terminating on October 19, 2009.
The City has the right to extend the term of this Agreement for one additional one year
period, based upon the same conditions of the initial term. The City shall notify
. CONSULTANT in writing of its exercise of its option for an additional one year term not
less than thirty days prior to the end of the then current term. The obligation of
CONTRACTOR to perform the Services will commence in accordance with the time
schedule set forth in Exhibit "A" unless terminated earlier pursuant to Section 19 of this
Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the
performance of Services under this Agreement. CONSULTANT shall complete the
Services within the term of this Agreement and in accordance with the schedule set forth
in Exhibit "B", attached to and made a part of this Agreement. Any Services for which
times for performance are not specified in this Agreement shall be commenced and
completed by CONSULTANT in a reasonably prompt and timely manner based upon the
circumstances and direction communicated to the CONSULTANT. CITY's agreement to
extend the term or the schedule for performance shall not preclude recovery of damages
for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit "A", including
both payment for professional services and reimbursable expenses, shall not exceed Four
Hundred Fifty Five Thousand Dollars ($455,000). The applicable rates and schedule of
payment are set out in Exhibit "B", entitled "SCHEDULE OF
PERFORMANCE/COMPENSATION," which is attached to and made a part of this
Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the
provisions of Exhibit "B". CONSULTANT shall not receive any compensation for
Additional Services performed without the prior written authorization of CITY.
Additional Services shall mean any work that is determined by CITY to be necessary for
the proper completion of the Project, but which is not included within the Scope of
Services described in Exhibit "A".
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit
invoices to the CITY consistent with the deliverables and schedule of events as
delineated in Exhibit "B' describing the services performed and the applicable charges.
The information in CONSULTANT's payment requests shall be subject to verification by
CITY. CONSULTANT shall send all invoices to the City'S project manager at the
address specified in Section 13 below. The City will generally process and pay invoices
within thirty (30) days of receipt.
SECTION 6. OUALIFICA TIONS/ST ANDARD OF CARE. All of the Services shall
be performed by CONSULTANT or under CONSULTANT's supervIsIOn.
CONSULTANT represents that it possesses the professional and technical personnel
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necessary to perform the Services required by this Agreement and that the personnel have
sufficient skill and experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and sub consultants, if permitted, have and shall maintain
during the term of this Agreement all licenses, permits, qualifications, insurance and
approvals of whatever nature that are legally required to perform the Services.
All of the services to be furnished by CONSULTANT under this agreement shall meet
the professional standard and quality that prevail among professionals in the same
discipline and of similar knowledge and skill engaged in related work throughout
California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself
informed of and in compliance with all federal, state and local laws, ordinances,
regulations, and orders that may affect in any maImer the Project or the performance of
the Services or those engaged to perform Services. under this Agreement.
CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give
all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to
CITY, any and all errors, omissions, or ambiguities in the work product submitted to
CITY, provided CITY gives notice to CONSULT ANT. If CONSULT ANT has prepared
plans and specifications or other design documents to construct the Project,
CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities
discovered prior to and during the course of construction ofthe Project. This obligation
shall survive termination ofthe Agreement.
SECTION 9. [Intentionally Deleted.]
SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in
performing the Services under this Agreement CONSULTANT, and any person
employed by or contracted with CONSULTANT to furnish labor and/or materials under
this Agreement, shall act as and be an independent contractor and not an agent or
employee of the CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall
not assign or transfer any interest in this Agreement nor the performance of any of
CONSULTANT's obligations hereunder without the prior written consent of the city
manager. Consent to one assignment will not be deemed to be consent to any subsequent
assignment. Any assignment made without the approval of the city manager will be void.
SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY
agrees that subconsultants may be used to complete the Services. The subconsultants
authorized by CITY to perform work on this Project are:
I. Palo Alto Chamber of Commerce
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CONSULTANT shall be responsible for directing the work of its subconsultants and for
any compensation due to subconsultants. CITY assumes no responsibility whatsoever
concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of a subconsultant. CONSULTANT shall change or add subconsultants
only with the prior approval of the city manager or his designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assIgn Anne
LeClair as the project director to have supervisory responsibility for the performance,
progress, and execution of the Services and to represent CONSULT ANT during the day-
to-day work on the Project. If circumstances cause the substitution of the project director,
project coordinator, or any other key personnel for any reason, the appointment of a
substitute project director and the assignment of any key new or replacement personnel
will be subject to the prior written approval of the CITY's project manager.
CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds
do not perform the Services in an acceptable manner, are uncooperative, or present a
threat to the adequate or timely completion of the Project or a threat to the safety of
persons or property.
The City's project manager is Susan Barnes, Economic Development Manager, Palo
Alto, CA 94303, Telephone:(650)-329-2604. The project manager will be
CONSULTANT's point of contact with respect to performance, progress and execution
of the Services. The CITY may designate an alternate project manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without
limitation, all writings, drawings, plans, reports, specifications, calculations, documents,
other materials and copyright interests created in the performance of the Services and
intended to be delivered to the CITY under this Agreement (the Deliverables) shall be
and remain the exclusive property of CITY without restriction or limitation upon their
use. CONSULT ANT agrees that all copyrights which arise from creation of the
Deliverables pursuant to this Agreement shall be vested in CITY, and CONSULT ANT
waives and relinquishes all claims to copyright or other intellectual property rights in
favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of
such materials available to any individual or organization without the prior written
approval of the City Manager or designee. CONSULTANT makes no representation of
the suitability of the work product for use in or application to circumstances not
contemplated by the scope of work.
SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable
time during the term of this Agreement and for three (3) years thereafter,
CONSULTANT's records pertaining to matters covered by this Agreement.
CONSULTANT further agrees to maintain and retain such records for at least three (3)
years after the expiration or earlier termination of this Agreement.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law , CONSULTANT shan protect, indemnify,
defend and hold hamlless CITY, its Council members, officers, employees and agents
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(each an "Indemnified Party") from and against any and all demands, claims, or liability
of any nature, including death or injury to any person, property damage or any other loss,
including all costs and expenses of whatever nature including attorneys fees, experts fees,
court costs and disbursements ("Claims") resulting from, arising out of or in any manner
related to performance or nonperformance by CONSULTANT, its officers, employees,
agents or contractors under this Agreement, regardless of whether or not it is caused in
part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require
CONSULTANT to indemnify an Indemnified Party from Claims arising from the active
negligence, sole negligence or willful misconduct of an Indemnified Party.
16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate
as a waiver of the right of indemni fication. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any
covenant, term, condition or provision of this Agreement, or of the provisions .of any
ordinance or law, will not be deemed to be a waiver of any other term, covenant,
condition, provisions, ordinance or law, or of any subsequent breach or violation of the
same or of any other term, covenant, condition, provision, ordinance or law.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full
force and effect during the term of this Agreement, the insurance coverage described in
Exhibit liD". CONSULTANT and its contractors, if any, shall obtain a policy
endorsement naming CITY as an additional insured under any general liability or
automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers with
AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all
contractors of CONSULTANT retained to perform Services under this Agreement will
obtain and maintain, in full force and effect during the term of this Agreement, identical
insurance coverage, naming CITY as an additional insured under such policies as
required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with
the execution of this Agreement. The certificates will be subject to the approval of
CITY's Risk Manager and will contain an endorsement stating that the insurance is
primary coverage and will not be canceled, or materially reduced in coverage or limits,
by the insurer except after filing with the Purchasing Manager thirty (30) days' prior
written notice of the cancellation or modification, CONSULTANT shall be responsible
for ensuring that current certificates evidencing the insurance are provided to CITY's
Purchasing Manager during the entire term of this Agreement.
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18.4. The procuring of such required policy or policies of insurance will not be construed
to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions
of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT
will be obligated for the full and total amount of any damage, injury, or loss caused by or
directly arising as a result of the Services perfomled under this Agreement, including
such damage, injury, or loss arising after the Agreement is terminated or the term has
expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEIVIENT OR
SERVICES.
19.1. The city manager may suspend the performance of the Services, in whole or in
part, or terminate this Agreement, with cause, by giving sixty (60) days prior written
notice thereof to CONSULT ANT. For puposes of this provision, cause to terminate shall
consist of: (1) material breach of this Agreement or (2) commission of fraudulent
practices. Upon receipt of such notice, CONSULTANT will immediately discontinue its
performance of the Services. .
19.2. CONSULTANT may terminate this Agreement or suspend its performance of the
Services by giving thirty (30) days prior written notice thereof to CITY, but only in the
event of a substantial failure of performance by CITY.
19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City
Manager immediately any and all copies of Deliverables, whether or not completed,
prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its
contractors, if any, in connection with this Agreement. Such materials will become the
property of CITY.
19.4. If this Agreement is suspended or terminated on account of a default by
CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that
portion of CONSULTANT's services which are of direct and immediate benefit to CITY
as such determination may be made by the City Manager acting in the reasonable
exercise ofhislher discretion
19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will
operate as a waiver on the part of CITY of any of its rights under this Agreement.
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified
mail, addressed as follows:
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To CITY: Office ofthe City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
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To CONSULTANT: Attention of the project director
at the address of CONSULTANT recited above
SECTION 21. CONFLICT OF INTEREST.
21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no
interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement, it
will not employ subconsultants, contractors or persons having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under
this Agreement is an officer or employee of CITY; this provision will be interpreted in
accordance with the applicable provisions of the Palo Alto Municipal Code and the
Government Code of the State of California.
21.3. If the Project Manager determines that CONSULTANT is a "Consultant" as that
term is defined by the Regulations of the Fair Political Practices Commission,
CONSULTANT shall be required and agrees to file the appropriate financial disclosure
documents required by the Palo Alto Municipal Code and the Political Reform Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code
section 2.30.510, CONSULT ANT certifies that in the performance of this Agreement, it
shall not discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation, housing
status, marital status, familial status, weight or height of such person. CONSULTANT
acknowledges that it. has read and understands the provisions of Section 2.30.510 of the
Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties
for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
to nondiscrimination in employment, including completing the form furnished by CITY
and set forth in Exhibit "E."
SECTION 23. MISCELLANEOUS PROVISIONS.
23.1. This Agreement will be governed by the laws of the State of California.
23.2. In the event that an action is brought, the parties agree that tria] of such action will
be vested exclusively in the state courts of California in the County of Santa Clara, State
of California.
23.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys' fees expended in connection
with that action. The prevailing party shall be entitled to recover an amount equal to the
fair market value of legal services provided by attorneys employed by it as well as any
attorneys' fees paid to third parties.
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23.4. This document represents the entire and integrated agreement between the parties
and supersedes all prior negotiations, representations, and contracts, either written or oral.
This document may be amended only by a written instrument, which is signed by the
parties.
23.5. The covenants, terms, conditions and provisions of this Agreement will apply to,
and will bind, the heirs, successors, executors, administrators, assignees, and consultants
of the parties.
23.6 .. If a court of competent jurisdiction finds or rules that any prOVIsIOn of this
Agreement or any amendment thereto is void or unenforceable, the unaffected provisions
of this Agreement and any amendments thereto will remain in full force and effect.
23.7. All exhibits referred to in this Agreement and any addenda, appendices,
attachments, and schedules to this Agreement which, from time to time, may be referred
to in any duly executed amendment hereto are by such reference incorporated in. this
Agreement and will be deemed to be a part of this Agreement.
23.8. This Agreement is subject to the fiscal provisions of the Charter of the City of
Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any
penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the
following fiscal year, or (b) at any time within a fiscal year in the event that funds are
only appropriated for a portion of the fiscal year and funds for this Agreement are no
longer available. This Section 23.8 shall take precedence in the event of a conflict with
any other covenant, term, condition, or provision of this Agreement.
23.9. The individuals executing this Agreement represent and warrant that they have the
legal capacity and authority to do so on behalf of their respective legal entities.
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IN WITNESS WHEREOF, the pal1ies hereto have by their duly
authorized representatives executed this Agreement on the date first above written.
CITY OF PALO ALTO [CONSULT ANT]
Attachments:
EXHIBIT "A":
EXHIBIT "B":
EXHIBIT "C":
EXHIBIT "D":
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SCOPE OF WORK
SCHEDULE OF PERFORMANCE/COMPENSATION
INSURANCE REQUIREMENTS
CERTIFICATION OF NONDISCRIMINATION
9
Exhibit A
Destination Palo Alto
FY 2008-09 and FY 2009-10
Scope of Services
Milestones and Timeline:
Quarterly reports will be provided to the City of Palo Alto. These will
include (but are not limited to):
• Number of leads identified, generated
• Total potential economic impact of leads generated
• Total number of room nights booked
• Targets reached for non-peak nights
• Events booked
• Packages created
• PACE Report with comparison to prior year
• Hotel occupancy comparison with TOT comparison (by month, year)
• Number of visitors, inquiries to Visitor Center
• Number of visitors to DPA website
• Report on average daily spending by overnight visitors to Palo Alto
• Number of fam* tours and fam tour attendees (including descriptions
of size of potential accounts)
• Media updates (including list of articles/online pieces, broadcasts
generated)
• International fam tour updates
• Advertising reports including publications of advertisements about
Palo Alto that have been featured and audience size reached
Activities to achieve Milestones
Year One
Quarterly Reports will include a report on milestones and activities
achieved each quarter.
Activities for Quarter One
• Begin dissemination of meeting leads to Palo Alto properties
• Go to all Palo Alto hotels and motels for "need dates" to be included in
bimonthly planner blast
• Hold initial meeting of Destination Palo Alto Advisory Committee and
begin building local visitor database for future email special and calendar
updates. Determine information they would like to see collected in survey
• Set up a visitor center within the Palo Alto Chamber office, including
signage, Destination Palo Alto phone line, personnel to staff, and sign age
1
• Contract with Godbe Research, create formal research plan and surveys
to get feel for Palo Alto visitors' perception of the area, what will draw
. them there, etc. and begin research
III Secure buy-in of key Palo Alto properties willing to participate in Godbe
Research surveying and begin formal research
• Initiate meetings with Stanford Public Affairs representatives to determine
how best Destination PA may get the word out about events, drive room
nights and drive other locals and area visitors to special events
• . Initiate one-on-one meetings/discussions with Stanford Athletic Dept.
heads to determine possible target events w/room nights, gather specs for
individual fields and sports facilities at Stanford, and determine how
Destination Palo Alto and SMCCVB may best promote upcoming sporting
events, including packaging with hotel room nights
• Add all key Palo Alto players /groups to list solicited for upcoming events
by SMCCVB and begin inclusion of PA events in published and online
calendars·
• Gather Palo Alto property information and incorporate all Palo Alto
properties into meeting planner guide, visitor guide and include on
SMCCVB website
• Issue press release to all major meeting planner publications, announcing
coverage of Palo Alto, highlighting key selling points of area
• Contact all meeting planners in SMCCVB data base, orienting them to
Pato Alto and invite them out for site visits
• Contact all meeting planners who have not considered the Bay Area due
to airport area concerns and explain that we have a great non-airport area
for them to see
• Conduct training for Palo Alto hotel sales managers on how best to work
with SMCCVB-generated leads, etc. and instruct all Palo Alto hotels on
how to participate in the broad, national "hot dates" program paid for by
the CVB, in which they may go online themselves and add hot dates/rates
to a site aimed at planners seeking last minute bookings;
• M(ilke site visits (SMCCVB sales team) to all Palo Alto properties with
meeting space to become familiar with group booking opportunities
• Complete site visits to all Palo Alto properties without meeting space
(Internationalrrourism Development Director, Film Commissioner and
Publications Manager/media outreach person) to become familiar, take
photographs
• Contact all internal customers, local customers and key groups (e.g., Palo
Alto Downtown, Stanford) notifying them of new Visitor Center
• Solicit Palo Alto properties' input for key trade shows of interest to their
markets
2
• Inform Palo Alto properties of upcoming shows for possible partnering; to
determine level of interest in tour groups, particularly inbound international
• Label all outgoing correspondence to meeting planners to generate
meeting planner inquiries on the Palo Alto and its properties
• Personally invite all past fam attendees back to see Palo Alto properties
(Sales Team)
• Feature Palo Alto venues ranging from unique Stanford University spots to
downtown buildings and squares in emails to producers and filming scouts
by the SMCCVB'sfilm commissioner, touting them as fresh, undiscovered
filming locations
• Find Palo Alto angle in all media lead responses (e.g. "romance
packages", green places to stay
• Update all existing editorial used for outreach to include Palo Alto angle
• !nclude Palo Alto special events and special hotel and motel promotions
in SMCCVB's monthly email update to database of thousands of .
prospective visitors interested in visiting the Bay Area
• Issue a special update to our CTTC/SFCVB representatives overseas,
notifying them of the change and describing Palo Alto and its properties in
detail. Likewise, CTTC will be informed that Palo Alto is a key new area of
promotion
• Prepare and submit report of Destination PAISMCCVB activities to City of
Palo Alto as specified in agreement
Activities for Quarter Two
• Continue research through Godbe Research, collecting sufficient data to
be used in "branding"loutreach of Palo Alto area to entice more visitors
into the area
• Conduct Destination Palo Alto Advisory Committee meeting to update
group, determine progress, next steps
• Feature Palo Alto properties in fam tour for incentive meeting planners
and fam for Jet Airways' top travel agents from India
• Add new activities to work plan
• Continue operation of visitor center, other activities initiated in prior quarter
• Convene meetings with Stanford Medical Department chairs, soliciting info
on medical research underway, recent breakthroughs, prospective groups
to recruit; availability of expert speakers in particular areas of expertise for
use in recruiting conferences
• Restructure layout of SMCCVB/Silicon Valley visitor guide to break area
into geographic sections and begin to address drivers of visits, as outlined
in preliminary research results
• Meet with representatives of Stanford Alumni and Development offices to
determine whether additional reunions/functions might be added with
rooms assistance from SMCCVB
• Feature Palo Alto' properties in fam tour for incentive meeting planners
3
• Meet with The Cribbs Group and representatives of Anthony Travel to
discuss targeting of additional events by SMCCVB sales team
• Continue dissemination of meeting leads to Palo Alto properties
• Update PA area and properties in domestic and international meeting
planner fam tours
• Continue promoting Palo Alto in all appropriate editorial outreach and
responses
• Continue promoting individual Palo Alto locations to production companies
and filming scouts
• Prepare and submit report of Destination PNSMCCVB activities to City of
Palo Alto as specified in agreement
Activities for Quarter Three
• Release results of phase one Of formal research to City of Palo Alto and
hold meeting of Destination Palo Alto Advisory Committee with Chamber
to discuss how best to capitalize on research results, determine progress
made, additional activities needed
• Add new activities to work plan
• Continue operation of visitor center, other activities initiated in prior
quarters
• Bring travel media fam (national travel writer fly-ins) to Palo Alto
• Conduct at least one additional fam tour that incorporates key Palo Alto
properties and Palo Alto area
• Provide special flyer/information to Stanford summer camp reps for
distribution to parents of summer camp enrollees, promoting stays while
the children are attending the camps .
• Broaden photo contest to include Palo Alto shots
• Initiate meetings with Stanford academic department chairs to determine
individual accomplishments, interests, events, possible
conferences/symposia that could be targeted for the area and begin
targeting those meetings
• Continue dissemination of meeting leads to Palo Alto properties
• Continue meeting planner site visits to Palo Alto properties
• Continue inclusion of PA area and properties in domestic meeting planner
fam tours, fam tours for international travel agents, and all appropriate
editorial outreach and responses
• Continue promoting individual Palo Alto locations to production companies
and filming scouts
• Highlight Palo Alto at out of town reception for meeting planners (Midwest)
• Prepare and submit report of Destination PNSMCCVB activities to City of
Palo Alto as specified in agreement
Activities for Quarter Four
4
• Conduct additional research with Palo Alto Visitors (Godbe, second phase
summer snapshot
• Hold meeting of Destination Palo Alto Advisory Committee to determine
progress made, additional activities needed
• Add new activities to work plan
• Continue operation of visitor center, other activities initiated in prior
quarters
• Feature and make Palo Alto hotel stops on fam tour for Sacramento, East
Coast and Midwestern meeting planners
• Conduct informal surveying of Senior Games attendees to determine per
diem spending while at the games
• Continue dissemination of meeting leads to Palo Alto properties
• Continue inclusion of PA area and properties in domestic and international
travel agent meeting planner fam tours
• Continue promoting Palo Alto in all appropriate editorial outreach and
responses
• Continue promoting individual Palo Alto locations to production companies
and .filming scouts
• Highlight Palo Alto at out of town reception for meetingplanners (East
Coast)
• Prepare and submit report of Destination PA/SMCCVB activities to City of
Palo Alto as specified in agreement (this will include Quarterly and Annual
Report with Milestones reported)
Year Two
Activities for First Quarter
• Release phase two results from Godbe Research to City of Palo Alto and
Destination Palo Alto Committee
• Conduct meeting of Destination Palo Alto Advisory Committee and use
Phase two information to finalize branding of Palo Alto for visitors, review
Phase 2 research information, determine and initiate next steps, additional
activities
• Add new activities to work plan
• Submit marketing plan and benchmarks for Year Two, Quarters two, three
and four to City of Palo Alto.
• Continue operation of visitor center, other activities initiated in prior
quarters
• Continue dissemination of meeting leads to Palo Alto properties
• Continue inclusion of PA area and properties in domestic and international
travel agent and meeting planner fam tours. .
• Continue promoting Palo Alto in all appropriate editorial outreach and
responses
5
• Continue promoting individual Palo Alto locations to production companies
and filming scouts .
• Prepare and submit report of Destination PNSMCCVB activities to City of
Palo Alto as specified in agreement
Activities for Second Quarter
• Continue dissemination of meeting leads to Palo Alto properties
• Continue inclusion of PA area and properties in domestic meeting planner
fam tours
• Additional benchmarks to be reported on, based on marketing plan
submitted Quarter One, Year Two
• Conduct meeting of Destination Palo Alto Advisory committee to ensure
that all projects are on task
• Add new activities to work plan
• Continue operation of visitor center, other activities initiated in prior
quarters
• Continue inclusion of PA properties on fam tours for international travel
agents
• Continue promoting Palo Alto in new editorial content and in all
. appropriate editorial outreach and responses
• Continue promoting individual Palo Alto locations to production companies
and filming scouts
• Modify SMCCVB and Destination Palo Alto website in keeping with the
research
• Additional benchmarks to be reported on, based on marketing plan
submitted Quarter One, Year Two
• Prepare and submit report of Destination PNSMCCVB activities to City of
Palo Alto as specified in agreement
Activities for Third Quarter
• Modify Destination Palo Alto website and calendars as needed, based
upon final research
• Hold meeting of Destination Palo Alto Advisory committee to ensure that
all projects are on task
• Conduct Destination Palo Alto Committee meeting to reflect on progress
to date and next steps
• Add new activities to work plan
" Continue operation of visitor center, other activities initiated in prior
quarters
• Continue dissemination of meeting leads to Palo Alto properties
• Continue inclusion of PA area and properties in domestic meeting planner
fam tours
6
• Continue inclusion of PA properties on fam tours for international travel
agents
• Continue promoting Palo Alto in all appropriate editorial outreach and
responses
• Continue promoting individual Palo Alto locations to production companies
and filming scouts
• Prepare and submit report of Destination PAISMCCVB activities to City of
Palo Alto as specified in agreement
Activities for Fourth Quarter
• Conduct Destination Palo Alto Committee meeting to reflect on progress
to date and next steps
• Assist in crafting recommendations for ongoing Destination Palo Alto
operations
• Add new activities to work plan
• Continue operation of visitor center, other activities initiated in prior
quarters
• Continue dissemination of meeting leads to Palo Alto properties
• Continue inclusion of PA area and properties in domestic meeting planner
fam tours
• Continue inclusion of PA properties on fam tours for international travel
agents
• Continue promoting Palo Alto in all appropriate editorial outreach and
responses
• Continue promoting individual Palo Alto locations to production companies
and filming scouts
• Prepare and submit report of Destination PAISMCCVB activities to City of
Palo Alto as specified in agreement (this will include Quarterly and Annual
Report with Milestones reported)
• Prepare final report with recommendations for Destination Palo Alto efforts
going, forward including information from DPA committee, stakeholders
and others
7
Exhibit B
Destination Palo Alto
Payment Schedule
FY 2008-2010
Payments will be made according to the following schedule:
Payment 1
Payment 2
Payment 3
Payment 4
Payment 5
Total Payments
To SMCCVB
Payment 1
Payment 2
Payment 3
Payment 4
Total Payments
$30,000
$50,000
$45,000
$45,000
$45,000
Within 30 days of contract signing
Completion of First quarter
Following submission/approval of quarterly report
Completion of Second quarter
Following submission/approval of quarterly report
Completion of Third quarter
Following submission/approval of quarterly report
Completion of Fourth quarter
Following submission/approval of quarterly
report and acceptance of annual report on
milestones
$215,000 Year One FY 2008-09
$60,000
$60,000
$60,000
$60,000
Completion of First quarter
Following submission/approval of quarterly report
Completion of Second quarter
Following submission/approval of quarterly report
Completion of Third quarter
Following submission/approval of quarterly report
Completion of Fourth quarter
Following submission/approval of quarterly report
and acceptance of annual report on milestones
including recommendations for Destination Palo
Alto
$240,000 Year Two FY 2009-10
EXHIBITC
INSURANCE REQIREMENTS
CONTRACTORS TO TIIE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR TIIE TERM OF TIlE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR TIIE COVERAGE SPECIFIED BELOW,
AFFORDED BY COMPANIES WITH A BEST'S KEY RATING OF A-:Vn, OR HIGHER, LICENSED OR AUTHORIZED TO
TRANSACf INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW:
MINIMUM LIMITS
REQUIRED TYPE OF COVERAGE REQUIREMENT EACH
OCCURRENCE AGGREGATE
YES WORKER'S COMPENSATION STATUTORY
YES AUTOMOBILE LIABILITY STATUTORY
BODILY INJURY $1,000,000 $1,000,000
YES COMPREHENSIVE GENERAL
LIABILITY, INCLUDING PERSONAL PROPERTY DAMAGE SI,OOO,OOO SI,OOO,OOO
INJURY, BROAD FORM PROPERTY
DAMAGE BLANKET CONTRACTUAL, BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000
AND FIRE LEGAL LIABILITY COMBINED.
BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000
COMPREHENSIVE AUTOMOBILE . EACH OCCURRENCE Sl,OOO,OOO $1,000,000
YES LIABILITY, INCLUDING, OWNED,
HIRED, NON-OWNED PROPERTY DAMAGE SI,ooO,OOO $1,000,000
BODILY INJURY AND PROPERTY DAMAGE, $1,000,000 $1,000,000
COMBINED
NO PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE ALL DAMAGES $1000000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: PROPOSER, AT ITS SOLE COST AND EXPENSE,
,~ SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT
AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY PROPOSER AND ITS
SUBCONSULTANS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY
AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSURES CITY, ITS COUNCil MEMBERS, OFFICERS. AGENTS,
AND EMPLOYEES.
1. INSURANCE COVERAGE MUST INCLUDE:
II.
A. A PROVISION FOR A WRITfEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE
OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY -SEE SAMPLE AGREEMENT FOR SERVICES.
SUBMIT CERTIFICATE(S) OF INSURANCE EVIDEN?NG REQUtIRED C.OVE~GE, OR C0MP.LETE THIS SECTION
AND IV THROUGH V, BELOW. ?\s. S 1:1' ,~J,~c t~,f.~ ~~.S~.
A. NAME AND ADDRESS OF COMPANY AFFORDING COVERAGE (NOT AGENT OR BROKER):
B. NAME, ADDRESS, AND PHONE NUMBER OF YOUR INSURANCE AGENTIBROKER:
C. POLICY NUMBER(S):
D. DEDUCTIBLE AMOUNT(S) (DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR
APPROVAL):
III. AWARD IS CONTINGENT ON COMPLIANCE Willi CITY'S INSURANCE REQUIREMENTS, AND PROPOSER'S
SUBMITTAL OF CERTIFICATES OF INSURANCE EVIDENCING COMPLIANCE Willi TIffi REQUIREMENTS
SPECIFIED HEREIN.
IV. ENDORSEMENT PROVISIONS, Willi RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSURES"
A. PRIMARY COVERAGE
WIlli RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING Willi ANY OTHER INSURANCE CARRIED BY OR FOR TIffi BENEFIT OF TIffi
ADDITIONAL INSURES.
B. CROSS LIABILITY
THE NAMING OF MORE mAN ONE PERSON, FIRM, OR CORPORATION AS INSURES UNDER THE
POLICY SHALL NOT, FOR TIIAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED
AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND TIffi NAMING OF MULTIPLE INSUREDS, SHALL
NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER TIllS POLICY.
C. NOTICE OF CANCELLATION
l. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER
mAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT
LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
2. IF TIIE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR TIffi NON-PAYMENT OF
PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE .EFFECTIVE DATE OF CANCELLA nON.
V. PROPOSER CERTIFIES TIIA T PROPOSER'S INSURANCE COVERAGE MEETS TIffi ABOVE REQUIREMENTS:
THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. SIGNA TURE(S) MUST BE
SAME SIGNA TURE(S) AS APPEAR(S) ON SECTION II, ATTACHMENT A, PROPOSER'S INFORMATION FORM.
Finn:
Signature:
Name:
(Print or type name)
Signature:
Name:
(Print or type name)
NOTICES SI-IALL BE MAILED TO:
1
A. Workers Compensation: Employers Compensation Insurance Co.
255 California Street. Suite 300
San Francisco, CA 94111-4904
Property, General Liability, Auto: Great American Insurance Group
580 Walnut Street
Cincinnati, OH 45202
B. Johndrow, Leveroni, Vreeburg
845 Marshall Street
Redwood City, CA 94063
(650) 369-2921
C. Workers Compensation: FN 032232405
Property, General Liability, Auto: PAC 346-00-86
D. No deductibles on anything but property which has a deductible of $500.
EXHIBIT 0
Certification of Nondiscrimination
As suppliers of goods or services to the City of Palo Alto, the firm and individuals
listed below certify that they do not discriminate in employment of any person
because of race, skin color, gender, age, religion, disability, national origin,
ancestry, sexual orientation, housing status, marital status, familial status, weight
or height of such person; that they are in compliance with all Federal, State and
local directives and executive orders regarding nondiscrimination in employment.
1. If Proposer is INDIVIDUAL, sign here:
Date: ------
Proposer's Signature
Proposer's typed name and title
2. If Proposer is PARTNERSHIP or JOINT VENTURE, at least (2)
Partners or each of the Joint Venturers shall sign here:
Partnership or Joint Venture Name (type or print)
Pate: _____ _
Date: _____ _
Member of the Partnership or Joint Venture
signature
Member of the Partnership or Joint Venture
signature
3. If Proposer is a CORPORATION, the duly authorized officer(s) shall
sign as follows:
The undersigned certify that they are respectively:
Of the corporation named below; that they are designated to sign the
Proposal Cost Form by resolution (attach a certified copy, with corporate seal,
if applicable, notarized as to its authenticity or Secretary's certificate of
authorization) for and on behalf of the below named CORPORATION, and
that they are authorized to execute same for and on behalf of said
CORPORATION.
Corporation Name (type or print)
~"IAd't Date:
Date:
San Mateo County Convention & Visitors Bureau
Board of Directors Meeting Minutes
Hiller Aviation Museum
June16,2005
LeClair presented the benefits to the entire county and Palo Alto of including Palo Alto in
the San Mateo County BID. Following her presentation, Lewin noted that it was a good
idea and made a motion to move forward with the action steps presented; seconded by
Moore and approved by all.
San Mateo County Convention & Visitors Bureau
Board of Directors Meeting Minutes
Westin Hotel, Millbrae
August 18, 2005
The Executive Committee recommends that we proceed by offering the services to all
properties in Palo Alto. Motion by Carlton to move forward with the Executive
Committee recommendation, second by Levvin, approved by all.
I
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I
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ATTACHMENTD
111 Anza Boulevard, Suite 410, Burlingame, CA 94010
650-348-7600 • 1-800-288-4748
Fax 650-348-7687
info@sanmateocountycvb.com • www.visitsanmateocounty.com
Destination Palo Alto
Third Quarter Report
Submitted to the City of Palo Alto by
The San Mateo County/Silicon Valley Convention & Visitors Bureau
July 10, 2009
Meeting leads generated (April-June): 93, with a total of 43,800 potential room nights and a
potential economic impact of$13,624,131.
Definite meetings/events booked: 46, for a total of 61,655 room nights and an economic impact
of $30,518,870.
Of particular note with regard to booked events was the securing of the first U.S. (and second
ever) China-US Green Energy Forum which will be held in October at the Crowne Cabana
Hotel. This event will not only bring business to Palo Alto, but will showcase Palo Alto and its
green efforts and successes worldwide. The Mayor will speak at the event and City departments
will also be incorporated into the forum.
Familiarization tours (Tours of the area with meeting planners and others to familiarize them
with the area, its hotels and things to do.)
The CVB hosted meeting planners from Washington, DC and the Midwest on a FAM trip of the
area in May. The planners' meetings range from legal to medical to religious meetings and range
in size from 10 people to 250. All book multiple meetings every year. Using conservative
estimates, the potential economic impact of their meetings, alone, could be as great as
$2,266,176. (Additional meeting planner fams taking place July, August and September.)
In April, the Bureau hosted our annual media fly-in familiarization tour for travel writers.
Among the pUblications/websites for which they writelbroadcast: US Airways and Alaska
Airlines magazines; Frommer's California; Up! Magazine; Entrepreneur Magazine travel
guides; Restaurant, Food and Travel Show; The Travel Planners Show; Travel'n On Radio;
Around the World Travel; Let's Travel Radio; about.com, SwissMade Magazine;
www.52perfectdays.com;divorce360.comandTheAntiTourist.This year's focus was arts and
culture and included trips to Cantor Center for the Arts and The Gamble Gardens. Their media
kits all included multiple pieces of editorial which included things to do and see in Palo Alto.
All responses to media requests and proactive pitches of stories to the media have included Palo
Alto.
Packages created
Special "Extend your stay" pdfs were created for the majorevents corning to town, including the
Senior Garnes, Grad Weekend and Admit Weekend. These pdfs go out in advance of events to
attendees in order to entice them to book a longer stay in advance. These have also been shared
with the Stanford Visitor Center.
In June, a request was sent for, and responding Palo Alto properties included in special
packages/discounts for the military. These packages will be sent by the end of July to military
travel sites and publications, including one done by a syndicated military newspaper columnist
with readership of over half a million. (She has launched a new website and requested these
packages.)
In May, Palo Alto properties were asked for special offers for distribution to our CITC
(California Travel and Tourism Commission) office in Germany for inclusion in WetteLcom
promo in Germany, Austria and Switzerland. Wetter. corn is one of the largest weather forecast
websites in Germany with an average of 4.2 million unique users per month (as of Apr-June,
2009). The editorial ideas we sent in will be used by CITC as part of their promotion of
California vacations.
Number of visitors to DPA website
The new Destination Palo Alto web site has seen an exponential increase in the number of hits
and page views since its redesign. The new Destination Palo site statistics are below:
DESTINATION PALO ALTO
WEB STATISTICS
Jan-Feb-Mar-Apr-May-Jun-
09 09 09 09 09 09
Unique
Visitors 472 485 363 n/a 1532 1963
Page
Views 791 648 477 n/a 5870 7727
Note: April stats unavailable due to transition to new website.
Palo Alto Media Coverage
April-June
Advertisements featuring Palo Alto (Readership in parentheses): Meetings West magazine and web
site (47,600 meeting planners), Smart Meetings (42,166 meeting planners), Group Tour Magazine
(15,000 tour operators), ASAE Associations Now (46,000), RCM (7,500 religious meeting planners),
Small Market Meetings (9,000 meeting planners), NT A-Courier (30,000 tour operators), and the MPI-
Kansas City Annual Membership Directory (19,000).
Editorial featuring Palo Alto:
• "Northern California Coastal", Meetings West ~Magazine June 2009 edition, Marlene Goldman
(Readership: 26,000 meeting planners) Special Note: An interview was just conducted for a
feature on the City of Palo Alto in an upcoming issue.
• "Destination Guide: San Francisco Bay Area" Smart Meetings, April 2009
http://smartmeetings.comldestinationslmeetin-on-the-dock-ofthe-bay (42,166 meeting
planners)
• "Exciting Things to See and Do in San Mateo and Palo Alto, CA," Jason Rich Travel blog, April
27, 2009, http://iasonrichtravel.blogspot.coml2009/04/things-to-see-and-do-in-san-mateo-
palo.html.
In June, the San Mateo County Film Commission assisted a film maker who wanted to organize
shooting an Interchannel piece for the "Disney Channel", called "United Frontlt
• He successfully
shot at Stanford University, working with the athletic department and the Junior Water Polo
Association.
International fam tour updates: A group of top travel agents from Mexico were given a
whirlwind tour of the area and information on Palo Alto. Additional international fams will
occur over the next three months. At the international tour operator show, POWWOW, in May,
we had a tremendous response to advance appointment requests with tour operators. This was
due, in large part, to promotion of our' representation of the Palo Also area. As a result, we were
able to introduce Palo Alto and Stanford University to tour operators and media for the first time
there.
Report on average daily spending by overnight visitors to Palo Alto: Because research
surveys are coming in extremely slowly from the participating Palo Alto area hotels and Visitor
Center, no true picture can be given at this point about average daily spending by visitors to Palo
Alto. Survey collection has been extended and Senior Games participants will be surveyed
following that August event, so we should have a fairly accurate figure on visitor spending by
the next report. The Destination Palo Alto Committee continues to brainstorm ways to improve
the rate of survey collection.
Miscellaneous Activities for Quarter Three:
• Highlighted Palo Alto at event we hosted for meeting planners in Chicago in June;
• The operation of the visitor center was continued and number of visitors is growing.
Currently, the center assists approximately 30 walk-in visitors per week, plus several
others by phone each day. (When the signage is installed in mid-July, those numbers are
expected to grow considerably.) One of those "stop-ins" resulted in the booking of Palo
Alto hotel rooms for a religious conference;
• Staffed a Destination Palo Alto table during Admit Weekend, disseminating coupons for
local establishments and assisting visitors with their needs;
• Provided special pdf to camp operators, encouraging parents to stay in the area while the
kids are at camp;
• Broadened annual photo contest, specifically requesting shots of Palo Alto in our desired
shots;
• Began contacting Stanford department chairs to determine individual possible
conferences/symposia that could be targeted for the area and began targeting those
meetings;
• Continued dissemination of meeting leads to Palo Alto properties;
• Continued meeting planner site visits to Palo Alto properties;
• Continued promoting individual Palo Alto locations to production companies and filming
scouts;
• Continued our regular "hot rates/dates" eblast! which includes Palo Alto properties, to
planners as well as the listing of these hot dates on our website. (Palo Alto properties are
also able to list on cvbhotrates.com, thanks to our paid participation.)
• Continued Quarterly Destination Palo Alto meetings and Hospitality Committee meetings
to ensure all key groups are working together to promote major events and disseminate
information.
Overall
The City of Palo Alto has continued to benefit from broad exposure to meeting planners,
individual travelers and the media in the recent (third) quarter. Definite bookings are beginning
to materialize from the first months of participation.
While outreach to meeting planners and tour operators continued, strong efforts were made to
ramp up the Shop Palo Alto efforts aimed at groups. Over 75 discounts have been gathered from
stores and restaurants for groups coming to Palo Alto.
The new Destination Palo Alto brochure was published in time for distribution at Admit
Weekend. (Visitor Center team members stuffed the bags for Admit Weekend with the
discounts and new Destination Palo Alto brochures and were on campus offering help
throughout the days of the event.)
The discounts were also given to, and used by, the Stanford Alumni team for their use during
grad weekend and the dining portion of the discounts was distributed by Stanford for its alumni
events. (PartiCipating businesses were given decals to post in their windows
With regard to the Senior Games, three booths-two information booths and a City of Palo Alto
booth-will be staffed by Visitor Center and San Mateo County/Silicon Valley CVB employees
for the entire 16 days. Local discounts and new, customized Destination Palo Alto brochures
will be distributed and attendees assisted on site.
As mentioned above, the only challenge we have had is in the research area. We have had a very
low number of responses from hotel guests.
Please Note: City Staff has been provided with:
• (Booking) Pace Report with comparison to prior year (T = Tentative lead; D =
Definite booking); and
• Hotel occupancy comparison with TOT comparison (by month, year)
Attachment: Activities for Quarter Three-Benchmarks
Confidential
• Four of the meetings booked between April and June were booked by Palo Alto
properties, for a total of 4433 rooms. As mentioned previously, the lead time between
dissemination of a lead and the actual booking can be months or even a year or more.
• PACE Report with comparison to prior year
• Hotel occupancy comparison with TOT comparison (by month, year)
September 17, 2009
Palo Alto City Council
Palo Alto City Hall
250 Hamilton Ave.
Palo Alto, CA 94301
Dear Mayor Drekmeier and Council Members:
ATTACHMENTE
As Chair of the Palo Alto Chamber and an active member of the Midtown Merchants'
Association, I'd like to go on record in support of your continuation into year two of the
Destination Palo Alto contract with the San Mateo County/Silicon Valley Convention &
Visitors Bureau.
I have seen the benefits of the program through collection and dissemination of restaurant
and merchant discounts, assistance with visitors within the Palo Alto Chamber of
Commerce, sharing ofinfonnation among groups at Destination Palo Alto's regular
meetings, and the excellent new DP A website and visitor collateraL Groups are now
coordinating with each other, communicating with each other and working to put Palo
Alto "on the map".
As part of the Destination Palo Alto Committee, I have heard first-hand of the write-ups
Palo Alto has received and the exposure our city has been given with media and meeting
planners. I encourage you to stick with the plan and help all of our businesses in Palo
Alto through promoting our city.
As always, thank you for considering the Chamber's views and my own.
Sincerely,
Carla Cumpston
CC: Paula Sandas
Bill Johnson
Anne LeClair
Susan Barnes
September 17,2009
Palo Alto City Council
250 Hamilton Ave.
Palo Alto, CA 94301
Dear Mayor Drekmeier and Members of the Council:
Page 2 of2
Our Chamber, one of the three partners in the Destination Palo Alto contract, heartily supports
continuation of year two of the agreement. We have seen great success with the new Destination Palo
Alto web site and collateral, discount programs, visitor services within our office and on campus, as
needed. Multiple business, merchant, hotel, university, and city representatives regularly attend the
meetings ofthe newly revitalized Destination Palo Alto group and all have learned to share information
and promote each other's events.
Most importantly, our area has been shown to key meeting planners and sporting event planners, as well
as travel writers and travel agents-all great exposure for our area. We have been given some great
"ink" in travel publications as a result of the program, as well.
I have watched the visitor center team here work long and hard to persevere in securing restaurant and
merchant discounts and the results have been excellent. Groups now have discounts to make them feel
welcome and participating merchants and restaurants have a decal to show their participation in the
program.
The one-on-one assistance provided at the Senior Games by the DPA team definitely kept people in our
area, maximizing their time and spending in Palo Alto. Their advance piece encouraging the athletes to
extend their stays was another key part of this.
Our chamber urges you to vote to continue the program, as planned. Thank you.
Sincerely,
Paula Sandas
CC: Carla Cumpston
Bill Johnson
Anne LeClair
Susan Barnes
Paula Sandas
CEQ/President
Palo Alto Chamber o/Commerce
122 Hamilton Avenue
Palo Alto, CA 94301
650-324-3/21 ext. /25
Fax: 650-324-1215
www.paloaltochamber.com
10/28/2009
September 15, 2009
Palo Alto City Council
Palo Alto City Hall
250 Hamilton Ave.
Palo Alto, CA 94301
V!NCC! HOTELES
Dear Mayor Drekmeier and Members of the City Council:
DC; <:~-:J I 7 01:1 Iii: I a -'., '~", i I 1,1 "." J
I am writing you to urge your continuation of the second year of the Destination
Palo Alto contract with the San Mateo County/Silicon Valley Convention &
Visitors Bureau. During today's tough times, Palo Alto's hotel community needs
the program more than ever.
The Garden Court has benefited from exposure to meeting planners on fam tours
and from articles in meeting publications. We have also had representation at
approximately 50 trade shows around the U.S. that we would not have had. In
addition, we have had international travel and booking agents here from all over
the world, exponentially increasing the number of people who know about Palo
Alto.
As an active member of the downtown PAd/BID, I am also very pleased with the
boost our downtown businesses have been given by Destination PA. Through
the discounts program and coordinated calendar of events and write-ups in travel
and meeting planner publications, the story of our downtown is being told and
told well.
I hope we may count on you to authorize the program's second year. Thank you.
Sincerely,
~fmv-
Barbara Gross
General Manager
520 COWPER STREET. DOWNTOWN PALO ALTO, CALlFOR"JlA 94301. TEL 650.322.9000 / 800.824.9028 • FAX 650.324.3609 • WWW.GARDENCOURT.COM
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ELIZABETH
A M B L E
GARDEN
September 16,2009
Palo Alto City Council
City Hall
250 Hamilton Ave.
Palo Alto, CA 94301
Dear City Council:
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\"'; i f '.~
ClfY CL
09 SEP 2! RU 9,1.8" \',i I • t.f
As someone intimately involved with Elizabeth Gamble Garden, I want to tell you
what a difference the Destination Palo Alto contract has made in our marketing
efforts. Within a week or two ofthe contract signing last October, we had a
meeting with the San Mateo County/Silicon Valley Convention & Visitors Bureau
in their role as part of Destination Palo Alto.
We received enthusiastic support of Gamble Garden, tremendous outreach for our
annual garden tour through the Bureau's calendar of events, Destination Palo
Alto's calendar of events and communication from Destination PA Committee
members to their constituents, guests and customers. Our tour information was
promoted in both the Palo Alto Visitor Center and the Bureau office, and the
event touted in e-bulletins to prospective visitors and area residents.
In addition, the Bureau built its annual travel media fly-in dates around ourApnl
garden tour weekend, to allow us to show key writers what we have to 9ffer:It
was a big success. From a personal standpoint, I also saw the Bureau ~4P~o
Alto Visitor Center staff working hard to promote things to do and see ihbut1lfea
while working info -booths at the recent Senior Games. """ "
I urge you to authorize the second year of the Destination Palo Alto contract.
Thank you for your time and consideration.
Sincerely,
:::~ck
Co-Chair 2009, GG Spring Garden Tour
Cc: Anne LeClair
Palo Alto Economic Developllumt Department
1431 WAVERLEY STREET PALO ALTO CA 94301-3949
650-329-1356 FAX 650-329-I688 www_gamblegarde[!.org
Sheraton Palo Alto Hotel
625 EI Camino Real
Palo Alto, California 94301
September 14, 2009
Palo Alto City Council
City of Palo Alto
250 Hamilton Ave.
Palo Alto, CA 94301
Dear Mayor Drekmeier and Members of the Council:
Received
SEP 23 2009
Department of Planning
& Community Environment
In my role overseeing the Westin Palo Alto and Sheraton Palo Alto, I would like to go on
record expressing our strong support of authorization of year two of the two-year
Destination Palo Alto contract with the San Mateo County/Silicon Valley Convention &
Visitors Bureau. The Bureau has given our properties and others here a reach we would
never have had without their services.
These have ranged from bringing in mUltiple familiarization tours to securing stories in
the group meetings media to supplying meeting and tour and travel leads we would never
have received. We have also had the opportunity to send out our "hot rates" and need
dates to numerous meeting planners, and have been able to bid on crew room nights for
various film productions.
In addition, we have been very pleased with the local DestinationPalo Alto angle, from
coordination with the Palo Alto Weekly and the Chamber to holding regular meetings of
the local hospitality community. .
We urge you to renew the contract for its second year. Thank you for considering my
views.
Cc: Susan Barnes
Anne LeClair
T 6503282800
F 6so 32 7 7362
sheratoncom/paloalto
/
-·---OCT. 15.2009-1 :39PM-PREMIER PROPERTIES
FAX COVER SHEET
T<:>: Susan Barnes, City of Palo Alto Economic Development
FAX: 650-325-5025
From: Lisa Van Dusen
Re: Oestlnation Palo Alto -letter for City Council
Date: 10.15.09
Susan:
NO. 427 P. 1
I am attaching a letter addressed to Ma'yor.Drekmeier and the City Council in
support of Destination Palo Alto which.1 am hoping you can distribute as
appropriate. I understand that the Council is reviewing DPA at an upcoming
Council meeting.
Please let me know if you have any questions or concerns at 650-799-8883 or
Ivandusen@4kelley.com.
Many thanks and I send my best regards,
Lisa
_ .• --. ·OCT. 15. 2009-1: 39PM-PREMI ER PROPERTl ES
October 15, 2009
Lisa C. Van Dusen
1111 Greenwood Avenue
Palo Alto, CA 94301
650-7,99-3883
NO. 427 P. 2
The Honorable Peter Drekmeier aOd members of the Palo Alto City Council
The City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Dear Mayor Drekmeler and City Council members:
As you review the past year's performance of Destination Palo Alto, I offer a few
thoughts to consider as you look forward to the next year of the program. While I
was directly involved in the developmel'"lt of Destination Palo Alto, as director of
Palo Alto Online through 2008, my current perspective is that of a resident and
someone who works downtown in an organi~ation not specifically related to DPA.
1. Destination Palo Alto Is consistent with the City Council's stated
goals of=
-Economic Health of the City: Destination Palo Alto seeks to generate
visitors who will contribute In a variety of ways to the economic Vitality
of the city.
-Civic Engagement for the Commol' Good: DPA Involves a wide
variety of citizens, busihf)SSeS, non-local events and more.
I
-Environmental Protection: Palo Altb Is hosting a major green tech
event In October (U.S-China Green Energy Conference) secured by
DPA/Convention and San Mateo Co~nty/Silicon Valley Convention and
Visitors Bureau.
2. The metrics/activity trends are up: I
I -Room nights booked are up (The uppamlng US-China Green Energy
Conference was booked through DPf' and an example of increasing
room nights while aligning with the qity'S goal of being a center of
Clean Tech). I ,
-Traffic on the new and Improved website Is up
Events in the pipeline are up (Le. th~ Convention and Vlsftors Bureau
has hosted numerous "famlliarlzatior tours" for events In Palo Alto that
I i I
I ,
i
OCT. 15.2009-1 :40PM PREMIER PROPERTIES ./
I I
I
NO. 427 P. 3
would result in bookings 'and the rel~te~ spending in the area (the
average spent per person per day is $290 with an average split of
50%/50% lodging/non-lodging. More t~an 9100 room nights have .
. already been booked through Destination Palo Alto.
I
3. The personal focus make a difference:
-Having a person in the Chamber offrice and, when there are big events
such as the Senior Games, on site, makes a real difference in keeping
visitors within Palo Alto during their stay. A trained professional with a
focus on directing visitors to options (dining, entertainment etc.) within
Palo Alto can have a significant Impact on dollar$ spent In Palo Alto vs.
in neighboring communities.
In summary, I urge you to support the renewal of Destination Palo Alto contract
with the San Mateo County/sillcon Valley Convention and Visitors Bureau. They
are professional, focused and on a positive traje~tory.
Sincerely,
nn-~~~
Lisa Van Dusan
STANFORD
TERRACE
III III INN III III
September 28, 2009
Palo Alto City Council
City of Palo Alto
c/o Susan Barnes
250 Hamilton Ave.
Palo Alto, CA 94301
Dear Mayor Drekmeier and City Council IVlembers:
Since your approval of the Destination Palo Alto contract a year ago, I
have watched the promotional activities of Destination Palo Alto and
the San Mateo County/Silicon Valley Convention & Visitors Bureau with
great interest. I have attended the Destination PA Committee
meetings and watched the communication greatly improve among
groups in Palo Alto. The new web site and calendar of events have
taken shape and now include all.
In addition, our property has received multiple meeting, tour and
travel and film leads from the Bureau and we have made some
bookings as a result. We would like to see the program continue and
urge you to support the hospitality industry by voting in favor of
continuing the second year of the Destination PA contract.
Thank you for your consideration.
i~re'~t9 ___
Bruce Pressman
Director of Sales
Stanford Terrace Inn
Cc: Anne LeClair
53 I Stanford Avenue
Palo Alto, CA 94306
650 857-0 333
stanfordterraceinn.com
From: sherry bijan [mailto:sherry.bidmanagement@gmail.com]
sent: Monday, October 26,2009 1:24 PM
To: Council, City; Clerk, City
Subject: Destination Palo Alto
October 26, 2009
Palo Alto City Council
Palo Alto City Hall
250 Hamilton Ave.
Palo Alto, CA 94301
Dear Mayor Drekmeier and Council Members:
As the President of the Palo Alto Downtown Business and Professional Association, I'd like to go on
record in support of your continuation into year two of the Destination Palo Alto contract with the San
Mateo County/Silicon Valley Convention & Visitors Bureau.
We need the services provided by Destination Palo Alto more than ever in these difficult times. The
creation of downtown restaurant and store discount lists has been very well received. Having visitors
directed downtown by the visitor center staff within the Palo Alto Chamber is very helpful, as is getting
event information out through the Destination Palo Alto Committee and the new DPAwebsite. The
hotel guests (and fam tour participants) brought to the area definitely help our businesses weather these
times.
Our city and downtown are being given great exposure with travel media and meeting planners, to the
benefit of all.
I encourage you to continue with the two-year contract to help all of our businesses in Palo Alto by
promoting our city.
Thank you for your consideration.
Sincerely,
Sherry Bijan
President
PAd Business & Professional Assoc.
BID Management
www·lWIQa,ltodowntown.com
721 Emerson Street, PAlto, CA 94301
650-223-4334
sh~.BIDmanagement@gmail.com
CC: Paula Sandas
Anne LeClair
Susan Barnes
DATE: November 2, 2009
TO: City Council Colleagues
FROM: Mayor Drekmeier, Council Members Burt, Kishimoto, and Yeh
SUB .. IECT: Request for the Council to Adopt a Resolution to Accept an
Invitation to Participate in the United States-China Low-Carbon
Cities, Communities, and Regions Program
Recommendation
We suggest that the City Council pass a Resolution accepting an invitation to
participate in the United States China Low-Carbon Cities, Communities, and
Regions Program.
BACKGROUND
On September 2, 2009, Council Member Yeh received an invitation to meet with
Professor C.S. Kiang, Chairman of the Beijing University Environment Fund, to
discuss the City of Palo Alto's participation in the "US China Long Term
Cooperation on Low Carbon Cities, Communities, and Regions Initiative". This
initiative is one of "five programs, coordinated through one of China's top research
universities, included in a major U.S.-China climate initiative called U.S. China
Cooperation on Energy and Climate.
The purpose of the Low-Carbon Cities program is to demonstrate successful
strategies for addressing the challenges of climate change in ways that save
money, produce sustainable business and community development, and
generate substantial economic and employment growth.
The Low-Carbon Cities program will include six U.S. and six Chinese
cities/communities regions. The proposed U.S. participants are: 1) Palo Alto,'
CA; 2) Metropolitan Atlanta, GA; 3) Research Triangle Park, NC; 4) San Antonio,
TX; 5) Greensburg, KS; and 6) Oakland/Berkeley/East Bay Green Corridor, CA.
The Low-Carbon Cities program will establish a process (including online
systems, conference calls, and occasional meetings) for sharing information,
ideas, data, and best practices among the participants in the program to
encourage each city to learn from and contribute to the accomplishments of all
the other cities and communities. r
I
Participants in the Low-Carbon Cities program will be able to work with a team of
globally respected experts in climate action and sustainable economic
development to obtain assistance in:
12
• Establishing 2020 greenhouse gas reduction targets of their choice (if they
have not already done so).
• Tracking their greenhouse gas emissions.
• Implementing greenhouse gas reduction plans (by, for example, making
buildings more energy efficient, generating more energy from clean
renewable energy sources, improving transportation options, and reducing
waste and industrial pollution).
In addition, the Low-Carbon Cities team will work with participants to develop
Climate Prosperity Strategies to strengthen their local economies through:
• Green Savings -encouraging businesses, government agencies, and
households to save money through energy and water conservation, waste
reduction, and resource efficiency.
• Green Opportunities -assisting Green and Clean Tech businesses to
locate, grow, and thrive in their areas.
• Green Talent -providing the education and training to develop the
entrepreneurial and employment skills needed to contribute to and
succeed in the economy.
Eventually, the U.S. and China will scale up this initiative by including many more
cities, communities, and regions in the U.S. and China, as well as in other
countries throughout the world.
Reasons for participating in the Low-Carbon Cities program include:
• Opportunity to share best practices in carbon reduction and sustainable
economic development with other cities and to learn about best practices
from around the world.
• Engagement with a team of globally respected experts who will assist
participants with their carbon reduction and Climate Prosperity strategies.
• Encouragement of the Green and Clean Teach businesses located in the
U.S. cities to initiate or expand markets in China and encouragement of
Chinese businesses to locate in participating U.S. cities.
• Consideration for public and/or private investment in the Green and Clean
Tech·businesses of participants.
• Participation in creation of a system for encouraging a very large number
of cities around the world to become Low-Carbon Cities.
• Opportunity for publicity, in the U.S., China, and around the world, for the
, accomplishments of the participating cities.
The f6rmal announcement of the Low-Carbon Cities program will be made in
Beijing in November 2009 during the summit between U.S. President Barack
Obama and Chinese President Hu Jintao.
CONCLUSION
Energy and global climate change are now common challenges for many cities
and communities, and we believe the United States and China as the world's two
largest carbon emitters should find a way to work together. The Low-Carbon
Cities program focuses on creating relationships at this early stage when carbon
management and reduction strategies are being crafted and first implemented.
We believe that the City of Palo Alto has implemented aggressive environmental
policies such as the Climate Protection Plan, Zero Waste Plan, and Green
Building Ordinance that will benefit from both sharing with and review by other
local governments and communities. Where other local governments have
begun to integrate economic development strategies with environmental policy
goals, the City of Palo Alto stands to benefit from these best and emerging
practices to continue developing a clear strategy to encourage economic
development and support existing green and clean tech businesses in our
community.
As a model of working from the bottom-up, and in the context of domestic and
international policy formulation occurring top-down from the federal and state
levels, the Low-Carbon Cities program will develop relationships at the local level
across states and countries. In turn, we hope these relationships will provide a
foundation to promote actions to maintain the City of Palo Alto's position as a
major environmental and economic engine in Silicon Valley.
With regard to City of Palo Alto staff resources needed to support the City's
participation in the Low-Carbon Cities program, the attached resolution makes
clear that the policies, programs, and reports that will be shared with the program
organizers will consist of documents that already exist (e.g., Climate Protection
Plan, Zero Waste Plan, Green Building Ordinance) and are prepared for the
City's use (e.g., data currently collected to measure carbon emission levels,
annual carbon level reports per the Climate Protection Plan, etc.). Additional
staff resources will be needed in addressing economic development
opportunities for green and clean tech business strategies.
The City Council, City of Palo Alto staff, residents, and businesses have
positioned Palo Alto at the frontier of transforming our City and community to a
low carbon city. The co-authors of this memo believe that in participating in the
Low-Carbon Cities program, a local government-focused initiative that brings
together international perspectives on the global challenge of managing carbon
emissions, we will build on our green tradition and position ourselves to remain
on thEt cutting edge of the global challenge of achieving low-carbon levels.
I
NOT YET APPROVED
Resolution Accepting an Invitation to Participate in the United
States China Low-Carbon Cities, Communities, and Regions
Program
WHEREAS~ Low Carbon Cities~ Communities~ and Regions (Low Carbon Cities) is
one of 5 programs included in a major U.S'/China climate initiative called U.S. China
Cooperation on Energy and Climate; and
WHEREAS~ the purpose of the Low Carbon Cities program is to demonstrate
successful strategies for addressing the challenges of climate change in ways that save money,
produce sustainable business and community development, and generate substantial economic
and employment growth; and
WHEREAS, the Low-Carbon Cities program will include 6 U.S. and 6 Chinese
cities/communities regions. The propose~ U.S. participants are; 1) Palo Alto, CA; Metropolitan
Atlanta~ GA; 2) Research Triangle Park~ NC; 3) San Antonio~ TX; 4) Greensburg, KS; and 5)
OaklandlBerkeley/East Bay Green Corridor~ CA; and
WHEREAS, the Low-Carbon Cities program will establish a process for sharing
information, ideas, and best practices among the participants in the program to encourage each
city to learn from and contribute to the accomplishments of all the other cities; and
WHEREAS, participants in the Low-Carbon Cities program will be able to work
with a team of globally respected experts in climate action and sustainable economic
development to obtain assistance in establishing 2020 greenhouse gas reduction targets of their
choice (if they have not already done so)~ tracking their greenhouse gas emissions, and
implementing greenhouse gas reduction plans; and
WHEREAS, the Low Carbon Cities team will work with participants to develop
Climate Prosperity Strategies to strengthen their local economies; and
WHEREAS, eventually the U.S. and China will scale up this initiative by including
many more cities~ communities, and regions in the U.S. and China, as well as in other countries
throughout the world; and
WHEREAS~ this is an opportunity to share best practices in carbon reduction and
sustainable economic development with other cities and to learn about best practices from
around. the world, to engage with a team of globally respected experts who will assist participants
with their carbon reduction and Climate Prosperity strategies; and
1
091029 syn 6050998
WHEREAS, impact on City of Palo Alto staff by participating in the Low-Carbon
Cities program will be limited by sharing with program organizers the City's policies, programs,
and reports that already exist (e.g., Climate Protection Pbl~s".Zef()_Waste Plan, Green Building
Ordinance) and are prepared for the City's own use (e.g., data currentlycolleded to measure
carbon emission levels, annual carbon level reports per the Climate Protection Plan, etc.) and
additional staff resources will be needed in addressing economic development opportunities for
green andc1ean tech business strategies; and
WHER..EAS, this program will encourage Green and Clean Tech businesses located
in the U.S. cities to initiate or expand markets in China and encourage Chinese businesses to
locate in participating U.S. cities and will provide opportunity for publicity, in the U.s., China,
and around the world, for the accomplishments of the participating cities; and
WHEREAS, the formal announcement oLthe Low-Carbon Cities program Will be
made in Beijing in November, 2009 during the summit between U.S. President Barack Obama
and Chinese President Hu Jintao; now, therefore, be it
NOW, THEREFORE the Council of the City of Palo Alto hereby RESOLVES to
accept an invitation to participate in the United States China Low-Carbon Cities, Communities,
and Regions Program.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Manager
I ,
091029 syn 6050998
~P;ROVEI):
':,,'",.,'
Mayor
City Attomey
2