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2017-03-27 City Council Agenda Packet
City Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. March 27, 2017 Special Meeting Council Chambers 4:30 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 10 days preceding the meeting. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Closed Session 4:30-5:15 PM Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property: Terman Apartments, 4230-70 Terman Drive, Palo Alto, CA Agency Negotiators: James Keene, Lalo Perez, Hamid Ghaemmaghami, Hillary Gitelman Negotiating Parties: Terman Associates/G&K Management Co. and City of Palo Alto Under Negotiation: Option to Purchase – Price, AffordabilityRestrictions and Terms of Payment Agenda Changes, Additions and Deletions City Manager Comments 5:15-5:25 PM Oral Communications 5:25-5:40 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. REVISED 2 March 27, 2017 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. Minutes Approval 5:40-5:45 PM 2.Approval of Action Minutes for the March 6, 2017 Council Meeting Consent Calendar 5:45-5:50 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 3.Approval of the Human Services Emerging Needs Fund Policy Providing Oversight of Accepting, Reviewing and Approval of Applications to This Fund 4.Approval of Amendment Number 1 to Contract Number S16164688 toadd $250,000 for a Total Not-to-Exceed Amount of $300,000 With Municipal Resources Group for Professional Human Resources Consulting Services 5.Approval of a Contract With Artist Mary Lucking in the Total Not-to- Exceed Amount of $100,000 for the Design Development, Fabrication and Installation of Artwork Associated With the Highway 101 Bike and Pedestrian Bridge 6.Approval of Five Separate Professional Services Agreements for General Electric and Gas Services Over a Three Year Term With all Subject to an Aggregate Not-to-Exceed Amount of $975,000, With: (1) Navigant Consulting; (2) Flynn Resource Consulting Inc.; (3) PA Consulting Group; (4) Optony Inc.; and (5) NewGen Strategies and Solutions, LLC 7.Adoption of a new Memoranda of Agreement With the Palo Alto Fire Chiefs' Association and a Resolution to Amend Salary Schedule for Managers and Professional Personnel Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 5:50-6:15 PM 10.PUBLIC HEARING. 900 N. California Avenue [15PLN-00155]: Appeal of the Planning and Community Environment Director's Architectural Review Approval of Three new Single-Family Homes, one With a Second Unit. Environmental Review: Categorically Exempt per CEQA Guidelines Section 15303(a) (New Construction or Conversion of Small Structures), Zoning District: R-1 6:15-7:30 PM PUBLIC HEARING: 670 Los Trancos Road [16PLN-00266]: Site and Design Review to Allow the Construction of a new Single FamilyHouse and Guest House With a Total of Approximately 10,960 Square 8. MEMO MEMO MEMO 3 March 27, 2017 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. PUBLIC HEARING: Adoption of two Ordinances to Update the City’s Below Market Rate (BMR) Housing Program as Recommended by the Finance Committee: (1) Repealing Municipal Code Section 16.47 (Non- residential Projects) and 18.14 (Residential Projects); and Adding a new Section 16.65 (Citywide Affordable Housing In-lieu Fees for Residential, Nonresidential, and Mixed Use Developments). The Proposed Ordinances are Exempt From the California Environmental Quality Act (CEQA) per Sections 15378(b)(4), 15305 and 15601(b)(3) of the State CEQA Guidelines (FIRST READING: December 12, 2016 PASSED: 5-3 Kniss, Scharff and Wolbach no) SECOND READING: Continued From January 9, 2017 Inter-Governmental Legislative Affairs Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. 9. Feet of Floor Area. Environmental Assessment: Categorically Exempt From California Environmental Quality Act (CEQA) Pursuant to Guidelines Section 15303 (New Construction or Conversion of Small Structures). Zoning District: OS 7:30-9:00 PM 4 March 27, 2017 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Meetings Sp. Rail Committee Meeting March 22, 2017 Sp. Policy and Services Committee Meeting March 28, 2017 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Human Relations Commission, Library Advisory Commission, Public Art Commission, and Utilities Advisory Commission Recruitment Flyer Public Letters to Council Set 1 CITY OF PALO ALTO OFFICE OF THE CITY CLERK March 27, 2017 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the March 6, 2017 Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: Attachment A: 03-06-17 DRAFT Action Minutes (DOCX) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 11 Special Meeting March 6, 2017 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:10 P.M. Present: DuBois, Filseth arrived at 5:11 P.M., Fine, Holman, Kniss, Kou, Scharff, Tanaka, Wolbach Absent: Study Session 1. Status Report Regarding the Stanford Research Park Transportation Demand Management (TDM) Program and the Palo Alto Transportation Management Association (TMA). Council Member DuBois advised he will not participate in this Agenda Item as it pertains to the Stanford Research Park Transportation Demand Management Program because he has a source of income from Stanford University. He left the meeting at 5:12 P.M. Council Member DuBois returned to the meeting at 5:57 P.M. Council Member DuBois left the meeting at 6:37 P.M. Special Orders of the Day 2. The Mayor’s Green Business Awards Recognizing Palo Alto’s Businesses That Have Earned the Environmental Protection Agency (EPA) Energy Star Certification. Council Member DuBois returned to the meeting at 6:44 P.M. Agenda Changes, Additions and Deletions MOTION: Council Member Wolbach moved, seconded by Council Member Kou to continue Agenda Item 12- PUBLIC HEARING: Adoption of an Ordinance Amending Chapter 18 (Zoning)… to March 7, 2017. MOTION PASSED: 8-0 Kniss not participating DRAFT ACTION MINUTES Page 2 of 11 City Council Meeting Draft Action Minutes: 3/6/17 Consent Calendar MOTION: Council Member Holman moved, seconded by Council Member Kou, third by Council Member Fine to pull Agenda Item Number 9a- Approval of a Contract With SoBi… to be heard on a date uncertain. MOTION: Vice Mayor Kniss moved, seconded by Mayor Scharff to approve Agenda Item Numbers 3-9. 3. Approval of the 2017 Water Integrated Resources Plan Guidelines. 4. Approval of Amendment Number 1 to Design Contract Number C15158029 With Schaaf & Wheeler Consulting Civil Engineers for an Additional Amount of $99,850 for a Total Amount Not-to-exceed $699,850, for Programming of the Program Logic Controllers (PLC) for Fiber Optic Connections to Pump Stations and Creek Monitors as Part of the Storm Drain System Replacement and Rehabilitation Project SD-06101. 5. Approval of an Update to the City's Ten-year Electric Energy Efficiency Goals (2018 to 2027). 6. Approval of Amendment Number 1 to the Promissory Note and Amendment Number 1 to the Agreement Between the City of Palo Alto and Palo Alto Housing Corporation (PAHC) for the Acquisition of the Sheridan Apartments at 360 Sheridan Avenue; and Approval of an Expenditure of Funds Held by PAHC for the Acquisition of a Property Interest in the Sheridan Apartments. The Project is Exempt From the California Environmental Quality Act (CEQA) per Section 15061(b)(3). 7. Approval of a 3-year Contract With SoftwareOne, Inc. for Microsoft Licensing in the Amount of $455,707 Annually. 8. Resolution 9669 Entitled, “Resolution of the Council of the City of Palo Alto Approving a Facility Naming Plan for the Junior Museum & Zoo.” 9. Resolution 9670 Entitled, “Resolution of the Council of the City of Palo Alto Donating a Surplus Fire Truck to our Sister City, Oaxaca, Mexico and Accepting $25,000 From Neighbors Abroad as the Purchase Price of the Fire Truck.” 9a. Approval of a Contract With SoBi for Implementation of a 350-Bicycle Bike Share Program for Five Years With no Ongoing Cost to the City Following an Investment of $1,104,550 in Capital Costs for Bicycles and "Hubs." (Continued from February 27, 2017). DRAFT ACTION MINUTES Page 3 of 11 City Council Meeting Draft Action Minutes: 3/6/17 MOTION PASSED: 9-0 Action Items 10. Resolution 9671 Entitled, “Resolution of the Council of the City of Palo Alto Amending Resolutions 9473 and 9577 to Continue the Downtown Residential Preferential Parking (RPP) Program With Minor Modifications and Finding the Action Exempt From the California Environmental Quality Act (CEQA) (Continued From February 13 and 27, 2017).” Mayor Scharff advised he will not participate in this Agenda Item because he owns real property within the Downtown Residential Preferential Parking (RPP) District. He left the meeting at 7:27 P.M. Council took a break from 7:27 P.M. to 7:30 P.M. MOTION: Council Member Filseth moved, seconded by Council Member DuBois to: A. Adopt a Resolution amending Resolutions 9473 and 9577 to make permanent the Downtown Residential Preferential Parking (RPP) Program and direct Staff to make corresponding changes to the Residential Preferential Parking (RPP) Administrative Guidelines including the following changes: i. Direct Staff to return to Council in one year to: a. Reassess the Employee Parking Permit reduction rate based on the results of the Palo Alto Transportation Management Association programs and other parking management programs; and b. Consider exempting dental and medical service offices from the Employee Parking Permit cap; and B. Allocate 150 permits to community oriented services including: i. 75 permits for dental use; and ii. 75 permits for Channing House employees; and C. Delete reference to 85 percent utilization in the Recitals; and D. Delete “until they are zeroed out;” and DRAFT ACTION MINUTES Page 4 of 11 City Council Meeting Draft Action Minutes: 3/6/17 E. Find the program exempt from review under the California Environmental Quality Act (CEQA). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove Part D of the Motion and add to the Motion, “modify Section 5.C.2.e to include a cap of 1,800 six-month Employee Parking Permits.” (New Part A.i.) AMENDMENT: Council Member DuBois moved, seconded by Council Member Kou to replace in the Motion Part C, “85 percent” with “50 percent.” AMENDMENT FAILED: 4-4 Fine, Kniss, Tanaka, Wolbach no, Scharff not participating AMENDMENT: Council Member DuBois moved, seconded by Council Member Holman to replace in the Motion Part A.i. “1,800 six-month Employee” with “1,500 six-month Employee.” AMENDMENT RESTATED: Council Member DuBois moved, seconded by Council Member Holman to replace in the Motion Part A.i., “1,800 six-month Employee Permits” with “1,400 six-month Employee Permits available plus 100 held in reserve for Zones 9 and 10 for the next year and direct Staff to return in one year with potential changes based on occupancy studies.” AMENDMENT PASSED: 5-3 Fine, Tanaka, Wolbach no, Scharff not participating SUBSTITUTE MOTION: Council Member Tanaka moved, seconded by Council Member Fine to continue the existing RPP program and direct Staff to return with a more comprehensive Downtown parking program. SUBSTITUTE MOTION FAILED: 2-6 Fine, Tanaka yes, Scharff not participating SUBSTITUTE MOTION: Council Member Fine moved, seconded by Council Member Wolbach to: A. Adopt a Resolution amending Resolutions 9473 and 9577 to make permanent the Downtown Residential Preferential Parking (RPP) Program and direct Staff to make corresponding changes to the Residential Preferential Parking (RPP) Administrative Guidelines including the following changes: i. Reduce the number of Employee Permits by 100 permits per year for two years; and DRAFT ACTION MINUTES Page 5 of 11 City Council Meeting Draft Action Minutes: 3/6/17 ii. Reassess this reduction on an annual basis based upon additional parking and transportation options becoming available, and based upon parking occupancy analysis and mode-split analysis; and B. Consider ways to exempt or better serve neighborhood serving medical, dental, and senior care uses; and C. Find the program exempt from review under the California Environmental Quality Act (CEQA). INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Substitute Motion, “direct Staff to explore ways to convert Zones 9 and 10 to residential only permitting over time.” (New Part D) INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Substitute Motion Part B, “medical, dental, and senior care uses” with “businesses such as medical, dental, and senior care.” INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add at the beginning of the Substitute Motion Part A.i., “start with 1,800 Employee Permits in the first year and.” AMENDMENT TO THE SUBSTITUTE MOTION: Council Member Holman moved, seconded by Council Member XX to add to the Substitute Motion Part A.i., “with a minimum reduction per Zone of 10 percent.” AMENDMENT TO THE SUBSTITUTE MOTION RESTATED AND INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Substitute Motion Part A.i., “spread equally across all Zones.” SUBSTITUTE MOTION AS AMENDED RESTATED: Council Member Fine moved, seconded by Council Member Wolbach to: A. Adopt a Resolution amending Resolutions 9473 and 9577 to make permanent the Downtown Residential Preferential Parking (RPP) Program and direct Staff to make corresponding changes to the Residential Preferential Parking (RPP) Administrative Guidelines including the following changes: DRAFT ACTION MINUTES Page 6 of 11 City Council Meeting Draft Action Minutes: 3/6/17 i. Start with 1,800 Employee Permits in the first year and reduce the number of Employee Permits by 100 permits per year for two years, spread equally across all Zones; and ii. Reassess this reduction on an annual basis based upon additional parking and transportation options becoming available, and based upon parking occupancy analysis and mode-split analysis; and B. Consider ways to exempt or better serve neighborhood serving businesses such as medical, dental, and senior care; and C. Find the program exempt from review under the California Environmental Quality Act (CEQA); and D. Direct Staff to explore ways to convert Zones 9 and 10 to residential only permitting over time. SUBSTITUTE MOTION AS AMENDED FAILED: 3-5 Fine, Tanaka, Wolbach yes, Scharff not participating INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove Part B of the Motion and replace in the Motion Part A.ii.b., “consider exempting” with “consider ways to prioritize.” AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to replace Part B of the Motion with, “update reference to 80 percent utilization.” AMENDMENT RESTATED: Council Member Wolbach moved, seconded by Council Member XX to replace Part B of the Motion with, “update reference to 75 percent utilization.” AMENDMENT FAILED DUE TO THE LACK OF SECOND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to restate Part A.ii.b. of the Motion, “in addition to low income employees, consider ways to prioritize or better serve neighborhood serving businesses such as medical, dental, and senior care.” AMENDMENT: Council Member Fine moved, seconded by Council Member Tanaka to replace in the Motion Part A.i., “100” with “200.” AMENDMENT FAILED: 2-6 Fine, Tanaka, Scharff not participating DRAFT ACTION MINUTES Page 7 of 11 City Council Meeting Draft Action Minutes: 3/6/17 CALL THE QUESTION: Council Member DuBois moved, seconded by Council Member XX to call the question. CALL THE QUESTION FAILED DUE TO THE LACK OF A SECOND AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to add to the Motion, “direct Staff to explore ways to transition Zones 9 and 10 to residential parking permits only overtime.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND MOTION AS AMENDED RESTATED: Council Member Filseth moved, seconded by Council Member DuBois to: A. Adopt a Resolution amending Resolutions 9473 and 9577 to make permanent the Downtown Residential Preferential Parking (RPP) Program and direct Staff to make corresponding changes to the Residential Preferential Parking (RPP) Administrative Guidelines including the following changes: i. Modify Section 5.C.2.e to include a cap of 1,400 six-month Employee Permits available plus 100 held in reserve for Zones 9 and 10 for the next year and direct Staff to return in one year with potential changes based on occupancy studies; and ii. Direct Staff to return to Council in one year to: c. Reassess the Employee Parking Permit reduction rate based on the results of the Palo Alto Transportation Management Association programs and other parking management programs; and d. In addition to low income employees, consider ways to prioritize or better serve neighborhood serving businesses such as medical, dental, and senior care; and B. Delete reference to 85 Percent utilization in the Recitals; and C. Find the program exempt from review under the California Environmental Quality Act (CEQA). MOTION AS AMENDED PASSED: 7-1 Tanaka no, Scharff not participating 11. Review and Direction to Staff Regarding Comments on the Preparation of an Environmental Impact Report for Stanford University’s DRAFT ACTION MINUTES Page 8 of 11 City Council Meeting Draft Action Minutes: 3/6/17 Application for a Major Modification to Their General Use Permit (GUP) With Santa Clara County. Council Member DuBois advised he will not participate in this Agenda Item because he has a source of income from Stanford University. He left the meeting at 11:26 P.M. Mayor Scharff returned to the meeting at 11:26 P.M. Vice Mayor Kniss left the meeting at 11:26 P.M. Council took a break from 11:26 P.M. and returned at 11:31 P.M. MOTION: Mayor Scharff moved, seconded by Council Member Fine to direct Staff to transmit a final letter to Santa Clara County with the City’s comments on the scope of the Environmental Impact Report (EIR) being prepared regarding the proposed amendment to Stanford University’s General Use Permit (GUP). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “with the following changes: A. Add to Aesthetics & Cultural Resources, ‘or avoid’ after ‘be identified to minimize.’” AMENDMENT: Council Member Holman moved, seconded by Council Member Filseth to add to the Motion, “add to Air Quality, Green House Gas Emissions, Noise, & Vibration, ‘the DEIR should also provide a numerical analysis of green house gasses created during construction and demolition.” INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Amendment, “including creation of the building materials used.” AMENDMENT AS AMENDED RESTATED: Council Member Holman moved, seconded by Council Member Filseth to add to the Motion, “add to Air Quality, Green House Gas Emissions, Noise, & Vibration, ‘the DEIR should also provide numerical analysis of green house gasses created during construction and demolition, including the creation of the building materials used.” AMENDMENT AS AMENDED FAILED: 3-4 Filseth, Holman, Kou yes, DuBois, Kniss absent DRAFT ACTION MINUTES Page 9 of 11 City Council Meeting Draft Action Minutes: 3/6/17 AMENDMENT: Council Member Holman moved, seconded by Council Member XX to add to the Motion, “add to Population and Housing, ‘create no housing demand outside of GUP boundaries.’” INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Amendment, “create no” with “to quantify.” AMENDMENT AS AMENDED RESTATED: Council Member Holman moved, seconded by Council Member Filseth to add to the Motion, “add to Population and Housing, ‘to quantify housing demand outside of GUP boundaries.’” (New Part B) AMENDMENT AS AMENDED PASSED: 4-3 Fine, Scharff, Tanaka no, DuBois, Kniss absent INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Under Recreation, ask if the proposal incorporated preservation of the Mayfield soccer fields.” (New Part C) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Under Transportation & Circulation, replace in the second Bullet 3 ‘estimate transportation related’ with ‘evaluate transportation related.’” (New Part D) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “Under Transportation & Circulation, replace in the second Bullet 4 ‘pending review of daily vehicle volumes, consider resetting’ with ‘pending review of daily vehicle volumes, reset.’” (New Part E) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “add to Other Issues, ‘Stanford to pay its fair share of College Terrace and Evergreen Park RPP.’” (New Part F) AMENDMENT: Council Member Holman moved, seconded by Council Member Kou to add to the Motion, “add to Other Issues, extend the Foothills protection in perpetuity.” AMENDMENT TO THE AMENDMENT: Mayor Scharff moved, seconded by Council Member XX to replace in the Amendment, “perpetuity” with “25 years.” DRAFT ACTION MINUTES Page 10 of 11 City Council Meeting Draft Action Minutes: 3/6/17 AMENDMENT RESTATED AND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “add to Other Issues, ‘extend the Foothills protection.’” (New Part G) AMENDMENT: Council Member Holman moved, seconded by Council Member XX to add to the Motion, “add to Other Issues, ‘look at alternatives of 750,000 sq. ft., and 1.25 million sq. ft.’” AMENDMENT FAILED DUE TO THE LACK OF A SECOND MOTION AS AMENDED RESTATED: Mayor Scharff moved, seconded by Council Member Fine to direct Staff to transmit a final letter to Santa Clara County with the City’s comments on the scope of the Environmental Impact Report (EIR) being prepared regarding the proposed amendment to Stanford University’s General Use Permit (GUP) with the following changes: A. Add to Aesthetics & Cultural Resources, “or avoid” after “be identified to minimize;” and B. Add to Population and Housing, “to quantify housing demand outside of GUP boundaries;” and C. Under Recreation, ask if the proposal incorporated preservation of the Mayfield soccer fields; and D. Under Transportation & Circulation, replace in the second Bullet 3 “estimate transportation related” with “evaluate transportation related;” and E. Under Transportation & Circulation, replace in the second Bullet 4 “pending review of daily vehicle volumes, consider resetting” with “pending review of daily vehicle volumes, reset;” and F. Add to Other Issues, “Stanford to pay its fair share of College Terrace and Evergreen Park RPP;” and G. Add to Other Issues, “extend the Foothills protection.” MOTION AS AMENDED PASSED: 7-0 DuBois, Kniss absent 12. PUBLIC HEARING: Adoption of an Ordinance Amending Chapter 18 (Zoning) of the Palo Alto Municipal Code to Update Code Sections Regarding Accessory Dwelling Units. The Ordinance is Exempt From the California Environmental Quality Act (CEQA) per Sections 15061(b), 15301, 15303 and 15305 and was Recommended for Approval by the Planning & Transportation Commission on November DRAFT ACTION MINUTES Page 11 of 11 City Council Meeting Draft Action Minutes: 3/6/17 30, 2016 (Continued From February 6, 2017) (Staff Requests This Item be Continued to March 7, 2017). Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements None. Adjournment: The meeting was adjourned at 12:05 A.M. City of Palo Alto (ID # 7802) City Council Staff Report Report Type: Consent Calendar Meeting Date: 3/27/2017 City of Palo Alto Page 1 Summary Title: Human Services Emerging Needs fund Policy Title: Approval of the Human Services Emerging Needs Fund Policy Providing Oversight of Accepting, Reviewing and Approval of Applications to This Fund From: City Manager Lead Department: Community Services Recommendation Staff recommends that Council approve the policy for the Human Services Emerging Needs Fund (Attachment B) which will oversee the process for accepting, reviewing and approving applications to this fund. Executive Summary City Council approved a $50,000 funding allocation for the Human Services Emerging Needs Fund as part of the FY2017 budget process. The intention of the fund was to assist nonprofit agencies with emerging or emergency needs that occur outside of the biennial Human Services Resource Allocation Process (HSRAP) application period. Council directed staff to draft a policy to oversee this new funding program, solicit review by the Human Relations Commission and provide a draft funding policy for final review and approval by Council. Background During the Fiscal Year 2017 budget process, staff requested that Council consider utilizing the existing $50,000 HSRAP reserve fund, if unused after the budget was finalized, for emerging or emergency needs that may arise for human service agencies outside of the HSRAP grant funding process. Council considered this request and left the $50,000 HSRAP reserve fund intact, and approved a new ongoing $50,000 for emergency and emerging needs as part of the approved FY2017 budget (Attachment A- Council Minutes 6/13/16.) These funds were included as a contingency account in the Non-Departmental section of the City’s budget. Discussion Staff drafted a policy (Attachment B – Human Services Emerging Needs Fund Policy) in keeping with the intended uses of fund as approved by Council. Staff researched best City of Palo Alto Page 2 practices of other communities and agencies in setting up the emerging needs fund and drafted the Palo Alto policy based on that research. The policy is intended be thorough but not an overly burdensome application to allow for a timely review and response to the emerging or emergency need. Key elements in the policy include the following: Eligibility: The Emerging Needs Fund assists nonprofit organizations serving Palo Alto residents with short-term urgent funding to address an unforeseen event, a critical and/or emerging human services need. These grants are based on need and an agency may not receive funding more than once in a three year period. Grants can be awarded up to $10,000. All grants are subject to the availability of funds. Funding Categories: The Emerging Needs Fund assists nonprofits with a short-term urgent human service funding needs created by an unforeseen event that has or will significantly interrupt essential services or addresses a critical or emerging need in the community. Emergency Needs: An unforeseen event that has or will significantly interrupt essential services such as a natural disaster, storm damage, theft, equipment failure or similar such occurrence. (all applicants) The request is time sensitive in nature and could not have been predicted. Emerging/Critical Need: An emerging or emergency need that was not evident during the original funding period. (HSRAP grantee) An existing critical need for which planned funding is no longer available and for which a demonstrated human consequence will occur if funding is not obtained. (Non HSRAP grantees) Application Process: Emergency Need: To initiate a request, an agency representative is invited to email the Manager of Human Services and provide a short, one paragraph explanation of the need. If the need meets the criteria of the Emerging Needs Fund, staff will invite the agency to submit an application (Attachment C). The applications are to be no more than two pages in length, with specific information and documentation requested. Emerging/Critical Needs: Applications for an emerging/critical need may be submitted on a quarterly basis on the following dates. (TBD based on when process has been approved.) City of Palo Alto Page 3 Review & Section Process: Applications are reviewed on an as needed basis by staff in the Office of Human Services along with a representative from the Human Relations Commission. The selection process may include follow-up questions, clarification of material submitted, requests for additional information, and/or an interview process or as deemed appropriate by Human Services staff. The final decision will recommended by the Director of the Community Services Department and approved by the City Manager. Once approved by the City Manager, the appropriation for this account or a portion thereof may be assigned to a department or project to cover unanticipated expenditures within that particular fund. When reviewing Emerging Needs Grant applications reviewers will look for: Organizations that have the capacity to respond to the emergency, emerging and/or critical need and present a reasonable plan to address the need along with a sound financial plan. Organizations and programs that meet a documented need of Palo Alto residents. The Human Relations Commission reviewed the draft policy and procedure at their February 9, 2017 and March 9, 2017 meetings and unanimously approved the draft Human Services Emerging Needs Fund Policy (Attachment B.) Staff will review the process the Emerging Need Fund annually and report on grants awarded to Council as as part of the City’s annual budget process. Timeline Upon approval of the policy, staff will promptly communicate the availability of the fund to human services agencies in the community. Resource Impact $50,000 in funding was approved as part of the Fiscal 2017 Adopted Operating budget in the Non-Departmental section of the General Fund. Policy Implications The following areas of the Comprehensive Plan are pertinent to this report: Policy C-7: Actively work with private, nonprofit, and public community service organizations to avoid duplication and to coordinate the delivery of services like child care, senior services, and recreation. Policy C-8: Welcome and encourage corporate citizenship in the provision of community City of Palo Alto Page 4 services. Goal C-3: Improved Quality, Quantity, and Affordability of Social Services, Particularly for Children, Youth, Seniors, and People with Disabilities. Policy C-17: Continue to support provision, funding, and promotion of services and programs for children and youth (e.g., those offered at the teen center) Policy C-18: Support and promote the provision of comprehensive senior services in coordination with senior service providers. Policy C-19: Continue to support provision, funding, or promotion of services for persons with disabilities through the Human Relations Commission, the Parks and Recreation Division, and other City departments. Support rigorous compliance with the Americans with Disabilities Act (ADA). Policy C-20: Support and promote services addressing the needs of the unhoused community. Environmental Review This program is not a project as defined by the California Environmental Quality Act (CEQA) and is not subject to CEQA review Attachments: Attachment A - 06-13-16 Council Action Minutes Attachment C-EmergingNeedsFundApplication Process Attachment B -Emerging needs fund policy-draft2017V-II CITY OF PALO ALTO CITY COUNCIL ACTION MINUTES Page 1 of 9 Regular Meeting June 13, 2016 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:03 P.M. Present: Burt, DuBois, Filseth, Holman, Kniss arrived at 6:30 P.M., Scharff, Schmid, Wolbach Absent: Berman Closed Session 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (James Keene, Molly Stump, Suzanne Mason, Rumi Portillo, Dania Torres Wong, Allyson Hauk) Employee Organizations: Palo Alto Fire Chiefs’ Association (FCA); Management, Professional and Confidential Employees; Utilities Management and Professional Association of Palo Alto (UMPAPA) Authority: Government Code Section 54957.6(a). MOTION: Vice Mayor Scharff moved, seconded by Council Member Wolbach to go into Closed Session. MOTION PASSED: 7-0 Berman, Kniss absent Council went into Closed Session at 6:05 P.M. Council returned from Closed Session at 7:17 P.M. Mayor Burt announced no reportable action. ACTION MINUTES Page 2 of 9 City Council Meeting Action Minutes: 6/13/16 Special Orders of the Day 2. Proclamation to Honor Paula Kirkeby for her Contributions to the Community. Agenda Changes, Additions and Deletions None. Minutes Approval 3. Approval of Action Minutes for the May 23 and 31, 2016 Council Meetings. MOTION: Council Member Kniss moved, seconded by Mayor Burt to approve the Action Minutes for the May 23 and 31, 2016 Council Meetings. MOTION PASSED: 8-0 Berman absent Consent Calendar MOTION: Council Member Wolbach moved, seconded by Council Member Schmid, third by Vice Mayor Scharff to pull Agenda Item Number 7- Approval and Authorization for the City Manager to Sign… to be heard as Agenda Item Number 10a. MOTION: Council Member Kniss moved, seconded by Vice Mayor Scharff to approve Agenda Item Numbers 4-6, and 8. 4. Authorize the City Manager to Execute an Agreement Between the City of Palo Alto and ENGEO Incorporated, for a Hydrologic and Hydraulic Study of Buckeye Creek in an Amount Not-to-Exceed $104,998. 5. Approve and Authorize the City Manager to Execute a Contract With Nova Partners, Inc., in an Amount Not-to-Exceed $4,200,471 to Perform Program Management Services in Support of Nine Infrastructure Plan Projects Including the Public Safety Building. 6. Adoption of Fiscal Year 2017 Investment Policy. ACTION MINUTES Page 3 of 9 City Council Meeting Action Minutes: 6/13/16 7. Approval and Authorization for the City Manager to Sign a Letter Commenting on the City of East Palo Alto's General Plan Update and Draft Environmental Impact Report. 8. Authorize the City Manager or his Designee to Execute an Amended Indemnity Agreement With the Santa Clara Stadium Authority to Allow Provision of Requested Law Enforcement Services to Levi’s Stadium. MOTION PASSED: 8-0 Berman absent Action Items 9. PUBLIC HEARING & PROPOSITION 218 HEARING: Ordinance 5386 Entitled, “Ordinance of the Council of the City of Palo Alto for Fiscal Year (FY) 2017, Including Adoption of Operating & Capital Budgets and Municipal Fee Schedule;” Resolution 9592 Entitled, “Resolution of the Council of the City of Palo Alto Adopting a Dark Fiber Rate Increase of 3.2 Percent and Amending Utility Rate Schedules EDF-1 & EDF-2;” Resolution 9593 Entitled, “Resolution of the Council of the City of Palo Alto Approving the FY 2017 Electric Financial Plan and Amending the Electric Utility Reserves Management Practices;” Resolution 9594 Entitled, “Resolution of the Council of the City of Palo Alto Adopting an Electric Rate Increase of 11 Percent and Amending Utility Rate Schedules E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU, E-14, & E-16 & Repealing Utility Rate Schedules E-18 & E-18-G;” Resolution 9595 Entitled, “Resolution of the Council of the City of Palo Alto Approving the FY 2017 Gas Utility Financial Plan;” Resolution 9596 Entitled, “Resolution of the Council of the City of Palo Alto Adopting a Gas Rate Increase of 8 Percent and Amending Utility Rate Schedules G-1, G-1-G, G-2, G-2-G, G-3, G-3-G, G-10, & G-10-G;” Resolution 9597 Entitled, “Resolution of the Council of the City of Palo Alto Adopting Refuse Rate Changes Including a 7 Percent Decrease and Up to a 9 Percent Increase and Amending Utility Rate Schedule R-1, and Consolidating Utility Rate Schedules R-2 & R-3 Into a new Utility Rate Schedule Designated R-C;” Resolution 9598 Entitled, “Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedule D-1 to Increase Storm Drain Rates 3.2 Percent per Month per Equivalent Residential Unit for FY 2017;” Resolution 9599 Entitled, “Resolution of the Council of the City of Palo Alto Approving the FY 2017 Wastewater Collection Utility Financial Plan;” Resolution 9600 Entitled, “Resolution of the Council of the City of Palo Alto Adopting a Wastewater Collection Fee Increase of 9 Percent & Amending Utility Rate Schedules S-1, S-6, and S-7;” Resolution 9601 Entitled, “Resolution of the Council of the ACTION MINUTES Page 4 of 9 City Council Meeting Action Minutes: 6/13/16 City of Palo Alto Approving the FY 2017 Water Utility Financial Plan;” Resolution 9602 Entitled, “Resolution of the Council of the City of Palo Alto Adopting a Water Rate Increase of 6 Percent and Amending Utility Rate Schedules W-1, W-2, W-3, W-4, & W-7;” Resolution 9603 Entitled, “Resolution of the Council of the City of Palo Alto Amending Salary Schedules for the Utilities Management Professional Association of Palo Alto (UMPAPA), the Service Employees International Union (SEIU), and the International Association of Fire Fighters (IAFF).” Public Hearing opened at 8:02 P.M. Public Hearing closed at 8:17 P.M. Council Member DuBois advised he will not participate in this Agenda Item as it related to Stanford University because he has a source of income from the University. Council Member DuBois left the meeting at 8:20 P.M. MOTON: Vice Mayor Scharff moved, seconded by Council Member Kniss to approve the Police, Fire, Office of Emergency Services and CIP Budgets affecting Stanford University. MOTION PASSED: 7-0 Berman absent, DuBois not participating Council Member DuBois returned to the meeting at 8:29 P.M. MOTION: Vice Mayor Scharff moved, seconded by Council Member Wolbach to adopt an Ordinance approving the Operating and Capital Budgets and Municipal Fee Schedule; and each of the related rate increases, utility financial plans, and salary schedule Resolutions with the following changes: A. An additional $50,000 for an Emerging Needs Fund for Human Services Resource Allocation Process (HSRAP); and B. An additional $750,000 set aside towards the unfunded pension liability (establishment of a Section 115 Trust Fund). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion Part A, “Human Services ACTION MINUTES Page 5 of 9 City Council Meeting Action Minutes: 6/13/16 Resource Allocation Process (HSRAP)” with “Human Services including Human Services Resource Allocation Process (HSRAP) grantees.” AMENDMENT: Council Member Holman moved, seconded by Council Member XX to add to the Motion, “include a change to allow for a 7 year tree pruning cycle.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND AMENDMENT: Council Member DuBois moved, seconded by Council Member XX to replace Part B of the Motion with, “to refer to the Finance Committee options for use of excess Budget Stabilization Reserve (BSR) funds above 18.5 percent towards the Capital Infrastructure Fund and Section 115 Trust Fund.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND AMENDMENT: Council Member Holman moved, seconded by Mayor Burt to add to the Motion, C. Refer to the Policy and Services Committee, to identify options for increasing HSRAP funding in Fiscal Year 2018; and potentially increase HSRAP funding to the $667,000 level which reflects a 2.5 percent cost of living increase annually from Fiscal Year 2002 levels; and D. Explore a low income fee program, specifically with regards to Community Services. AMENDMENT PART C RESTATED AND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “refer to the Policy and Services Committee, whether or not to increase HSRAP funding in Fiscal Year 2018; and potentially increase HSRAP funding to the $667,000 level which reflects a 2.5 percent cost of living increase annually from Fiscal Year 2002 levels.” (New Part C) AMENDMENT PART D RESTATED AND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “refer to the Policy and Services Committee to explore a low income fee program, specifically with regards to Community Services.” (New Part D) ACTION MINUTES Page 6 of 9 City Council Meeting Action Minutes: 6/13/16 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “including actions included in the At Places Memorandum” after “Municipal Fee Schedule.” AMENDMENT: Council Member Filseth moved, seconded by Council Member Holman to add to the Motion, “move to 7 years for tree trimming and reduce the Office of Sustainability contingency to $125,000.” AMENDMENT FAILED: 4-4 Burt, Kniss, Schmid, Wolbach no, Berman absent MOTION RESTATED: Vice Mayor Scharff moved, seconded by Council Member Wolbach to adopt the Operating and Capital Budgets and Municipal Fee Schedule including actions included in the At Places Memorandum; and each of the related rate increases, utility financial plans, and salary schedule Resolutions with the following changes: A. An additional $50,000 for an Emerging Needs Funds for Human Services including Human Services Resource Allocation Process (HSRAP) grantees; and B. An additional $750,000 set aside towards the unfunded pension liability (establishment of a Section 115 Trust Fund); and C. Refer to the Policy and Services Committee, whether or not to increase HSRAP funding in Fiscal Year 2018; and potentially increase HSRAP funding to the $667,000 level which reflects a 2.5 percent cost of living increase annually from Fiscal Year 2002 levels; and D. Refer to the Policy and Services Committee to explore a low income fee program, specifically with regards to Community Services. MOTION AS AMENDED PASSED: 8-0 Berman absent 10. Approval of Funding Agreement With the Palo Alto Transportation Management Association (PATMA) and Silicon Valley Community Foundation in the Amount of $100,000 for Fiscal Year 2017 for Pilot Programs and Discussion of the PATMA Draft Strategic Plan. MOTION: Vice Mayor Scharff moved, seconded by Council Member Kniss to approve and authorize the City Manager or his designee to execute the ACTION MINUTES Page 7 of 9 City Council Meeting Action Minutes: 6/13/16 funding agreement between the City of Palo Alto, the Silicon Valley Community Foundation, and the Palo Alto Transportation Management Association (PATMA). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “establish a Council Liaison to PATMA to be appointed by the Mayor.” (New Part A) AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to add to the Motion, “direct Staff and PATMA to explore outsourcing the operation of the Palo Alto Free Shuttle to PATMA.” AMENDMENT WITHDRAWN BY THE MAKER AMENDMENT: Council Member DuBois moved, seconded by Council Member XX to add to the Motion, “add to Agreement Item Number 6, ‘including mode percent change in Single Occupancy Vehicle (SOV) use’ after ‘quantitative measures.’” AMENDMENT RESTATED: Council Member DuBois moved, seconded by Council Member Schmid to add to the Motion, “direct Staff to include percent change in Single Occupancy Vehicle (SOV) use in future presentations to Council.” (New Part B) AMENDMENT AS AMENDED PASSED: 7-1 Wolbach no, Berman absent MOTION RESTATED: Vice Mayor Scharff moved, seconded by Council Member Kniss to approve and authorize the City Manager or his designee to execute the funding agreement between the City of Palo Alto, the Silicon Valley Community Foundation, and the Palo Alto Transportation Management Association (PATMA); and A. Establish a Council Liaison to PATMA to be appointed by the Mayor; and B. Direct Staff to include percent change in Single Occupancy Vehicle (SOV) use in future presentations to Council. MOTION AS AMENDED PASSED: 8-0 Berman absent Council Member Kniss left the meeting at 11:41 P.M. ACTION MINUTES Page 8 of 9 City Council Meeting Action Minutes: 6/13/16 10a. (Former Agenda Item Number 7) Approval and Authorization for the City Manager to Sign a Letter Commenting on the City of East Palo Alto's General Plan Update and Draft Environmental Impact Report. MOTION: Council Member Wolbach moved, seconded by Council Member XX to authorize the City Manager or his designee to sign a letter commenting on the City of East Palo Alto’s General Plan Update and Draft Environmental Impact Report (DEIR) including the following changes: A. Remove Paragraph 3 on page 4; and B. Remove all references to displacement; and C. Add that Palo Alto does not oppose nor seek delay of consideration of additional housing supply; and D. Add that Palo Alto recognizes that colocation of housing near jobs can have a positive effect on traffic. SUBSTITUTE MOTION: Mayor Burt moved, seconded by Vice Mayor Scharff to authorize the City Manager or his designee to sign a letter commenting on the City of East Palo Alto’s General Plan Update and DEIR, including the following changes: modify the letter to focus more on evaluation of impacts and alternatives including those related to the Newell Bridge; and avoid specific advocacy on amount of housing development and instead focus on impacts. MOTION FAILED DUE TO LACK OF SECOND INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add at the end of the Motion, “pro and con.” INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add at the end of the Motion, “and limit or remove assumptions regarding displacement.” SUBSTITUTE MOTION RESTATED: Mayor Burt moved, seconded by Vice Mayor Scharff to authorize the City Manager or his designee to sign a letter including the following changes: request the City Manager to modify the letter to focus more on evaluation of impacts and alternatives including ACTION MINUTES Page 9 of 9 City Council Meeting Action Minutes: 6/13/16 those related to the Newell Bridge; and avoid specific advocacy on amount of housing development and instead focus on impacts pro and con; and limit or remove assumptions regarding displacement. SUBSTITUE MOTION AS AMENDED PASSED: 7-0 Berman, Kniss absent Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements Vice Mayor Scharff reported that the Cities Association of Santa Clara County voted to support a regional minimum wage. He announced his appointment to the Santa Clara County Airport Land Use Commission. Council Member Wolbach requested an update on the status of updates to the minimum wage in Palo Alto. He reported his attendance during a vigil at the Billy DeFrank LGBT Community Center in remembrance of those killed in Orlando Florida. Council Member DuBois reported his attendance along with Vice Mayor Scharff and Council Member Filseth at the airport community meeting on airplane noise. Approximately 100 people attended, including several members of the Federal Aviation Administration Select Committee on South Bay Airplane Noise (Committee). He announced that the next meeting of the Committee is scheduled for June 15. He reported the participation of Council Members Filseth, Holman, and himself at the Stanford University Commencement this past Sunday. Adjournment: The meeting was adjourned in support of the Orlando, Florida community at 12:10 A.M. City of Palo Alto Human Services Emerging Needs Fund - Application Process The Emerging Needs Fund aims to assists nonprofit organizations serving Palo Alto residents with short- term urgent funding to address an unforeseen emergency need or an emerging/critical human services need. These grants are based on need and an agency may not receive funding more than once in a three year period. Grants can be awarded up to $10,000. Emergency Need: To initiate a request for an emergency or critical need, an agency representative shall email the Manager of Human Services and provide a short, one paragraph explanation of the need. If the need potentially meets the criteria of the Emerging Needs Fund, the agency will be invited to submit an application. Do not submit an application unless your agency is invited to do so. If you are invited to submit an application, please submit application information requested below. Emerging/Critical Needs: Applications for an emerging/critical need may be submitted on a quarterly basis on the following dates. The dates for 2017 are (TBD based on when process has been approved.) Please submit application information requested below. Application: An application consists of a written responses addressing the bulleted items listed below and should be no more than two pages in length TOTAL. Up to four pages of supporting documentation may be attached to the application. Please include the following: 1. Brief history and mission of the organization 2. Indicate whether you are requesting funding in order to address an emerging, critical and/or emergency need 3. The cause of the unanticipated or non-budgeted costs for which there are no other resources 4. Why these needs has risen to the level of an urgent response 5. How many clients are affected and how? 6. What needs to be done to address the need? Describe any services/programs you plan to offer? 7. How will you address these human needs in the future? 8. Why these specific funds will only be needed once? 9. The past sources of the agency’s resources and attempts to exhaust these and other options to cover the funding need and any other funders sought or already committed to addressing this emergency need. Include in-kind and voluntary contributions and collaborative assistance as well as financial support. 10. How City of Palo Alto funds will be used? 11. A budget narrative including a simple itemized expense and income budget for addressing the request. Please indicate the time period covered. Be sure to show how City of Palo Alto funds will be used. Application Submittal Applications may be submitted in any of the following ways: Email: mary.constantino@cityofpaloalto.org Fax: 650-856-8756 Mail: Cubberley Community Center, 4000 Middlefield Rd. #T2, Palo Alto, CA 94303 In person: a map of Cubberley Community Center has been provided with this application Policy - City of Palo Alto Human Services Emerging Needs Fund The City of Palo Alto traditionally allocates human services funding every two years through an application and selection process called the Human Services Resource Allocation Process (HSRAP.) This program funds human services organizations that provide services in a variety of areas as defined by a priority of needs established by staff and the Human Relations Commission. City Council gives final approval of these grant allocation. The Emerging Needs Fund aims to assists nonprofit organizations serving Palo Alto residents with short- term urgent funding to address an unforeseen emergency need or an emerging/critical human services need. These grants are based on need and an agency may not receive funding more than once in a three year period. Grants can be awarded up to $10,000. All grants are subject to the availability of funds. Funding Categories The Emerging Needs Fund assists nonprofits serving Palo Alto residents with a short-term urgent human service funding needs created by new and unforeseen events that has or will significantly interrupt essential services or addresses an emerging/critical need in the community. Emergency Needs: An unforeseen event that has or will significantly interrupt essential services such as a natural disaster, storm damage, theft, equipment failure or similar such occurrence. (All applicants) A request that is time sensitive in nature and could not have been predicted or reasonably planned for. (All applicants) Emerging/Critical need: An emerging or critical need that was not evident during the original funding period. (HSRAP grantee) An existing critical need for which normal funding is no longer available and for which a demonstrated human consequence will occur if funding is not obtained. (Non HSRAP grantees) Current HSRAP grantees please note: this fund cannot be used as a mid-cycle funding source for support of ongoing needs not funded during the regular allocation cycle. Generally, Emerging Needs Grants are not awarded for: Sectarian or religious purposes. Political purposes Supporting ongoing program work Paying expenses that should have been anticipated Application Process Emergency Need: To initiate a request for an emergency or critical need, an agency representative shall email the Manager of Human Services and provide a short, one paragraph explanation of the need. If the need potentially meets the criteria of the Emerging Needs Fund, the agency will be invited to submit an application. Do not submit an application unless your agency is invited to do so. If you are invited to submit an application, please submit application information requested below. Emerging/Critical Needs: Applications for an emerging/critical need may be submitted on a quarterly basis on the following dates. The dates for 2017 are (TBD based on when process has been approved.) Please submit application information requested below. Application: An application consists of a written responses addressing the bulleted items listed below and should be no more than two pages in length TOTAL. Up to four pages of supporting documentation may be attached to the application. Please include the following: 1. Brief history and mission of the organization 2. Indicate whether you are requesting funding in order to address an emerging, critical and/or emergency need 3. The cause of the unanticipated or non-budgeted costs for which there are no other resources 4. Why these needs has risen to the level of an urgent response 5. How many clients are affected and how? 6. What needs to be done to address the need? Describe any services/programs you plan to offer? 7. How will you address these human needs in the future? 8. Why these specific funds will only be needed once? 9. The past sources of the agency’s resources and attempts to exhaust these and other options to cover the funding need and any other funders sought or already committed to addressing this emergency need. Include in-kind and voluntary contributions and collaborative assistance as well as financial support. 10. How City of Palo Alto funds will be used? 11. A budget narrative including a simple itemized expense and income budget for addressing the request. Please indicate the time period covered. Be sure to show how City of Palo Alto funds will be used. Application Submittal Applications may be submitted in any of the following ways: Email: mary.constantino@cityofpaloalto.org Fax: 650-856-8756 Mail: Cubberley Community Center, 4000 Middlefield Rd. #T2, Palo Alto, CA 94303 In person: a map of Cubberley Community Center has been provided with this application Review & Selection process When reviewing Emerging Needs Grant applications we look for: Organizations that have the capacity to respond to the emergency, emerging and/or critical need and present a reasonable plan to address the need along with a sound financial plan Organizations and programs that meet a documented need of Palo Alto residents Applications are reviewed by staff in the Office of Human Services along with a representative from the Human Relations Commission. The selection process may include follow-up questions, clarification of material submitted, requests for additional information, and/or an interview process or as deemed appropriate by Human Services staff. The final decision is made by the Director of the Community Services Department. Grant award & Reporting Requirements All applicants will be informed via email regarding the status of their funding request two weeks of submission. All successful requests will be funded within two weeks after receiving an “invoice” by the organization. Reporting requirements involve the submission of a simple report that describes the following: 1. How the funds were spent. 2. How the clients of the affected program/service were impacted as a result of the grant. 3. Progress on plans to address this need on an ongoing basis (if applicable.) The report will be due one month after the funds have been expended or three months after the Emerging Needs grant is awarded, whichever is earlier. Additional Information If you have any questions about the application or the application process, please contact Minka van der Zwaag, Human Services Manager at 650-463-4953 or minka.vanderzwaag@cityofpaloalto.org Updated March 14, 2017 City of Palo Alto (ID # 7745) City Council Staff Report Report Type: Consent Calendar Meeting Date: 3/27/2017 City of Palo Alto Page 1 Summary Title: Contract Amendment with Muncipal Resources Group Title: Approval of Amendment Number 1 to Contract Number S16164688 to add $250,000 for a Total Amount Not-to-Exceed Amount of $300,000 With Municipal Resources Group for Professional Human Resources Consulting Services From: City Manager Lead Department: Human Resources Recommended Motion Staff recommends that the City Council approve and authorize the City Manager or his designee to execute Amendment 1 to S16164688 (Attachment A) with Municipal Resource Group LLC for professional Human Resources consulting services, increasing the contract limit by $250,000 for a total amount not to exceed $300,000 through July 31, 2019. Background In 2016 the Human Resources Department initiated a contract with Municipal Resource Group to provide professional human resources services to assist with pending employee relations matters, such as, grievances, complaints, numerous meet and confer issues, while the department recruited for key positions in the Employee Relations division. Discussion The Human Resources (HR) Department placed exhaustive efforts to recruit qualified personnel through two different recruitment panels to staff the Employee Relations Division over the last 10 months, and was successful in hiring two experienced external candidates. Although these candidates both have extensive public sector experience, they still require training in Palo Alto processes. In the meantime, employee-related matters have continued to be filed. The HR Department has needed additional expertise to manage the current workload. The best solution was to bring in industry experts to resolve such matters to meet and stay ahead of time bound responses. This additional support has provided some time savings for staff to focus attention on FCA City of Palo Alto Page 2 negotiations, enhancing employee training, workforce recruitment efforts and employee performance management. Through prior contracts, Municipal Resource Group has worked closely with the HR department on other HR related matters. From the knowledge and experience Municipal Resource Group gained through past and present projects, Municipal Resource Group is and was the best vendor to carry out the current work load. Since July 2016, 90 employment related cases have been received and of which 50 have been resolved and with 40 cases currently being worked through. The use of a contracted HR professional has been an efficient mode to resolve employee-related cases and also a cost savings measure. Resource Impact This increase to the Municipal Resource Group LLC contract will not require additional funding. The increased expenses will be funded through realized vacancy savings in Fiscal Year 2017 and anticipated vacancy savings in Fiscal Year 2018. Fiscal will be funded through FY17 Salary Savings of $170,000 and anticipated FY18 Vacancy Savings of $80,000. Environmental Review Approval of this contract is exempt under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Attachments: Attachment 1 1 of 2 Revision July 20, 2016 AMENDMENT NO. 1 TO CONTRACT NO. S16164688 BETWEEN THE CITY OF PALO ALTO AND MUNICIPAL RESOURCE GROUP, LLC This Amendment No. 1 to Contract No. S16164688 (“Contract”) is entered into February 27, 2017, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MUNICIPAL RESOURCE GROUP, LLC, a California Limited Liability Company, located at 675 Hartz Avenue, Suite 300, Danville, CA 94526 ("CONSULTANT"). R E C I T A L S A. The Contract was entered into between the parties for the provision of additional resources for the Human Resource Department. B. City intends to increase the compensation by $250,000.00 from $50,000.00 to $300,000.00 for the continuation of services as specified in Exhibit “A” Scope of Services. C. The parties wish to amend the Contract. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 4 COMPENSATION is hereby amended to read as follows: “SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Three Hundred Thousand Dollars ($300,000.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. 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 at Exhibit “A”.” SECTION 2. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. DocuSign Envelope ID: F5B25428-ACDA-4528-A684-ECFC3E9E8DD8 2 of 2 Revision July 20, 2016 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 APPROVED AS TO FORM: MUNICIPAL RESOURCE GROUP, LLC DocuSign Envelope ID: F5B25428-ACDA-4528-A684-ECFC3E9E8DD8 Partner Mary Egan City of Palo Alto (ID # 7850) City Council Staff Report Report Type: Consent Calendar Meeting Date: 3/27/2017 City of Palo Alto Page 1 Summary Title: Public Art Contract Approval Title: Approval of a Contract With Artist Mary Lucking in the Not-to-Exceed Amount of $100,000 for the Design Development, Fabrication and Installation of Artwork Associated With the Highway 101 Bike and Pedestrian Bridge From: City Manager Lead Department: Community Services Recommendation Staff recommends that Council approve a contract with artist Mary Lucking for the design, fabrication and installation of artwork associated with the Highway 101 Bike and Pedestrian Bridge project (Attachment A). Background The City of Palo Alto’s Public Art Program manages the process for incorporating public art into municipal projects. (Palo Alto Municipal Code section 2.26.070, Public Art for Municipal Projects.) The Highway 101 Bike and Pedestrian Bridge Project is a high visibility public works project, with multiple opportunities to incorporate artwork. Staff initiated the artist selection process in November 2016. After reviewing the qualified artists in the Public Art pre-qualified pool, staff presented the work of twenty three different artists to a selection panel composed of the project Architect Claudia Guadagne, Assistant Director of Community Services Rhyena Halpern who oversees the Arts & Science Division, Public Art Commission (PAC) member Mila Zelkha, Bike Bridge Competition panelist and former ARB member Judith Wasserman, Cubberley Artist Studio Program artist Mel Day, Palo Alto Art Center Curator Selene Foster, Environmental Advocate Jerry Hearn, and former ARB member and cyclist Lee Lippert. From that selection panel, five artists were selected for an interview. Once the interviews were completed, Mary Lucking was selected as the artist for the project. The Public Art Commission approved Mary Lucking as the project artist at its February 16, 2017 meeting. The panel and the PAC selected Lucking because of her artistic excellence and extensive experience integrating artwork into bike and pedestrian bridges, transportation hubs and other high traffic public spaces utilizing durable materials. With nearly twenty years of experience in the field of public art, three of City of Palo Alto Page 2 Lucking’s projects have been recognized for artistic excellence by the Americans for the Arts Public Art Network, and her artworks can be seen across the country. Lucking’s gift for using industrial materials in a manner that feels light and organic made her an ideal candidate for this project adjacent to the Baylands. . . . The Highway 101 Pedestrian Overpass Project at Adobe Creek will replace an existing underpass that is available only half the year (on average) due to seasonal flooding. It would also complement an existing, overpass that is 1.25 miles north. The new overcrossing will also include a 0.13 mile Class I trail connection along an existing Santa Clara Valley Water District maintenance road. In the heart of Silicon Valley, Palo Alto (along with its neighbor to the south, Mountain View) is home to hundreds of technology and research-based companies, including a number of major employers such as Google, Intuit, and Space Systems Loral that have clustered in close proximity to Highway 101 and the Bay Trail. To better link these growing job centers with regional trails and bicycle facilities, and improve access to superb recreation opportunities like the Baylands, Palo Alto has prioritized the funding and construction of a new, year-round bicycle and pedestrian overcrossing over Highway 101 at Adobe Creek near the City’s southern border. The City is under contract with Biggs Cardosa and Associates (BCA) for design of the Bridge. In November 2016, Council approved a preliminary (15%) Bowstring Truss Bridge concept design, with an estimated construction budget of $10 million. The public art allocation will be $100,000. Discussion The public art goals for the project as described in the artist Request For Qualifications will guide the design process. Those goals are: - The original artwork will be well-integrated into the design of the new bridge. - The artwork should serve as a gateway between Palo Alto and the Baylands. - The artwork should activate the bridge and have a strong day and night presence to enhance commuter experience for pedestrians, cyclists and highway commuters. - The artwork should communicate the unique character of the surrounding areas, especially Baylands Nature Preserve. - The artwork may be functional and may incorporate such elements as seating, wayfinding, information communication, or other functional elements. - The artwork should be fabricated using durable materials that require minimal maintenance and upkeep. City of Palo Alto Page 3 The artist will visit Palo Alto in April to meet with the design team to explore potential options for art integration into the bridge, tour the site of the future bridge, and gather all of the materials and community input gathered about the project and site she needs to begin the design process. Lucking will share with staff and the design team some initial concepts for art integration. Once a concept is agreed to by the design team, and the team agrees to how the artwork will be integrated into the bridge construction, the art concept will go to the Public Art Commission at a public meeting for approval. The Council has a longstanding policy, codified in the Municipal Code, of refraining from direct involvement in selection of artists and approval of artwork designs and plans. The Council refers these matters to Public Art staff and the Public Art Commission. (Municipal Code - section 2.26.060.) Once approved by the public art commission, the artwork conceptual design will be integrated into future public meetings for input as the design process moves forward. Detailed design of the bridge and how the artwork is integrated into the construction is developed in close partnership with Public Works and BCA. Timeline Getting the artist integrated with the design team early in the process is essential to have better integration of the public art as well as for identifying opportunities to leverage construction dollars to maximize impact of the artwork. Mary Lucking will likely come to Palo Alto to meet with the design team in late March to early April, and begin her design process during the 35% design. The project construction will begin early 2019 and is scheduled to be completed in 2020. Resource Impact The funds in the amount of $100,000 for the contract will come from the pooled art funds in the Art in Public Spaces CIP (AC-86017). The Public Art for Municipal Projects Ordinance (Ordinance Number 5301, Municipal Code 2.26.070) requires that 1% of the CIP budget for municipal projects is allocated for the commission of public art. The Highway 101 Pedestrian/Bicycle Overpass Project CIP (PE-11011) contributed 1% of the project’s funding to the Art in Public Spaces CIP in order to fund the public art component of this project recommended in this memorandum. Environmental Review Staff plans to integrate the work of the artist into the 35% bridge design for purposes of environmental review. Attachments: ATTACHMENT A: Draft Contract ATTACHMENT A: Mary Lucking Draft Contract CITY OF PALO ALTO CONTRACT NO: S17167868 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ARTIST MARY LUCKING FOR PROFESSIONAL SERVICES (CONCEPT AND DESIGN DEVELOPMENT, FABRICATION AND INSTALLATION) This Agreement is entered into on this 17th of March, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Mary Katherine Lucking, located at 530 E McDowell Rd #107-284, Phoenix, AZ 85004 ("ARTIST"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to place and provide a work of art for the new Adobe Creek / Highway 101 Pedestrian and Bicycle Bridge connecting Palo Alto and the Baylands Nature Preserve (“Art Work”) and desires to engage an ARTIST to provide research, concept and design development, fabrication and installation in connection with the Art Work (the “Services”). B. ARTIST has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Art Work and Services. C. ARTIST was selected by a panel of art professionals and stakeholders from a pool of applicants, as the most qualified to design and fabricate the Art Work. D. The source of funds for the Art Work and Services derives from funds made available from the City of Palo Alto’s CIP funds identified through the Municipal Percent for Art Ordinance #5301. E. CITY in reliance on these representations desires to engage ARTIST to provide the Art Work and Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. F. The Art Work is considered a permanent installation. “Permanent Installation” means a work of art in a public place intended to remain or remaining for one year or more after its completion by ARTIST, and has an expected lifespan for 20 years, provided, however, CITY may remove the Art Work in a accordance with CITY’s De- Accessioning Policy or as described in Section 16 of this Agreement. Should any damage or impairment occur, CITY will attempt to contact ARTIST before taking further action. G. CITY, through City’s Public Art Program will accession the Art Work into the City’s Collection of Public Art and own all right, title and interest in the Art Work. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: DR AFT AGREEMENT SECTION 1. SCOPE OF SERVICES. ARTIST shall perform the Services and provide the Art Work as described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services and provision of the Art Work shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 30, 2020 unless terminated earlier pursuant to Section 23 of this Agreement. DR AFT SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services and provision of the Art Work under this Agreement. ARTIST shall complete the Services and provide the Art Work 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 ARTIST in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the ARTIST. 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 ARTIST. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to ARTIST for performance of the Services and provision of the Art Work described in Exhibit “C”, including both payment for professional services and reimbursable expenses, shall not exceed Ninety Thousand Dollars ($90,000.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall come out of contingency fund and not exceed 10% ($10,000). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. The applicable rates and schedule of payment are set out in Exhibit “C”, entitled “COMPENSATION SCHEDULE”, which is attached to and made a part of this Agreement. DR AFT 1 Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. ARTIST 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 Art Work, but which is not included within the Scope of Services, described in Exhibit “A”. ARTIST acknowledges that CITY desires that the Art Work, including its conceptual design and content be unique. ARTIST agrees to not duplicate the Art Work without the express written consent of CITY. SECTION 5. INVOICES. In order to request payment, ARTIST shall submit invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the ARTIST’s payment schedule (set forth in Exhibit “C-1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in ARTIST’s payment requests shall be subject to verification by CITY. ARTIST 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. DR AFT SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services and the provision of Art Work shall be performed by ARTIST or under ARTIST’s supervision. ARTIST represents that it possesses the professional and technical personnel necessary to perform the Services and provide the Art Work required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. ARTIST represents that it, its employees and subcontractors, 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 and the Art Work to be furnished by ARTIST 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. ARTIST 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 performance of the Services and the provision of Art Work or those engaged to perform Services under this Agreement. ARTIST shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services and provision of the Art Work. SECTION 8. ERRORS/OMISSIONS. ARTIST 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 ARTIST. If ARTIST has prepared plans and specifications or other design documents to construct and install the Art Work, ARTIST shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction and installation of the Art Work. This obligation shall survive termination of the Agreement. SECTION 9. Left blank by agreement of the parties. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement ARTIST, and any person employed by or contracted with ARTIST 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 ARTIST are material considerations for this Agreement. ARTIST shall not assign or transfer any interest in this Agreement nor the performance of any of ARTIST’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 ARTIST shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. ARTIST shall be responsible for directing the work of any sub-CONTRACTORs and for any compensation due to sub-CONTRACTORs. CITY assumes no responsibility whatsoever concerning compensation. ARTIST shall be fully responsible to CITY for all acts and omissions of a sub-CONTRACTOR. ARTIST shall change or add sub-CONTRACTORs only with the prior approval of the city manager or his designee. DR AFT SECTION 13. PROJECT MANAGEMENT. ARTIST will serve as the project manager with supervisory responsibility for the performance, progress, and execution of the Services and provision of the Art Work. If circumstances cause the substitution of key personnel for any reason, the appointment of substitute personnel will be subject to the prior written approval of the CITY’s project manager. ARTIST, 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 Elise DeMarzo, Public Art Program Director, Division of Arts & Sciences, Community Services Department, 1313 Newell Road, Palo Alto, CA 94303, phone: 650-617-3517. The CITY may designate an alternate project manager from time to time. SECTION 14. PROPERTY RIGHTS IN ART WORK; VARA WAIVER. 14.1. CITY commissions ARTIST to design and create a work of art (the “Art Work”) to be displayed at a location in Palo Alto, as determined by CITY, acting in its sole discretion. Subject to the rights granted by ARTIST to CITY, as described below, and in consideration of the substantial compensation that CITY will pay to ARTIST for the Art Work, CITY acquires all right, title an interest in the Art Work, and ARTIST retains all copyrights in the Art Work that ARTIST will deliver to CITY under this Agreement. 14.2. ARTIST grants to CITY a non-exclusive, royalty-free, irrevocable license to do the following with respect to the Art Work, in whatever media, including, without limitation, digital and electronic media, that now or hereafter are known: (A) use and display the Art Work; (B) make and distribute, and authorize the making and distribution of, two-dimensional images and reproductions of the Art Work; (C) use any images and reproductions for City-related purposes, including, without limitation, advertising-, branding-, education-, information-, promotion- and publicity-related materials; and (D) sublicense the rights granted herein to third parties to fulfill the public art purposes of the City’s commissioning of the Art Work. CITY will make reasonable efforts to include ARTIST’s name and the name of the Art Work on all reproductions, including, without limitation, electronic or digital reproduction. 14.3. With respect to the Art Work, ARTIST waives any and all claims, arising at any time against CITY, its elected and appointed officials, officers, employees, agents and representatives, that may be grounded in any federal law, including, without limitation, the Visual Artists Rights Act (17 U.S.C. §106A). California law, including, without limitation, the California Art Preservation Act (Cal. Civil Code §987 et seq.), or local law that may relate to the moral rights of ARTIST or protection of the integrity of the Art Work. SECTION 15. ARTIST’S WARRANTY ARTIST represents and warrants that: 15.1. Prior to transfer of title of the Art Work to the City, ARTIST is the sole and absolute owner of the Art Work, the copyrights pertaining to the Art Work, and all the rights associated or relating to it. DR AFT 15.2. ARTIST has not previously sold, assigned, licensed, granted, encumbered, or utilized the Art Work or any element thereof, in any manner which may affect or impair the rights granted pursuant to this Agreement including without limited to, inhibiting the CITY’s ability to show the work, reproduce the Art Work as defined in Section 22, or maintain/conserve the work into the future. 15.3. All Art Work created by ARTIST under this Agreement, whether created by ARTIST alone or in collaboration with others, is wholly original and does not infringe upon or violate the rights of any third party. 15.4. ARTIST has acquired all rights to any third party software or other component of the Art Work necessary for the operation and display of the Art Work. 15.5. ARTIST has the full power to enter into and perform this Agreement and to grant the rights contained in this Agreement. 15.6. ARTIST warrants that the Art Work is the result of the artistic efforts of ARTIST and that it will be delivered full and clear of any liens, claims and encumbrances of any type. 15.7. These representations and warranties shall survive the termination or other extinction of this Agreement. SECTION 16. FUTURE MODIFICATION OR RELOCATION 16.1. CITY has the right to remove the Art Work from the Site at any time. In addition, in the event that any element of the Art Work constitutes a public safety hazard, CITY has the right to remove the element posing the public safety hazard. 16.2. Except to the extent permitted by subsection A above, CITY agrees not to intentionally modify the Art Work without first obtaining ARTIST’s written consent. 16.3. CITY shall have the right to donate or sell the Art Work at any time. Before exercising this right, CITY, by written notice to ARTIST at ARTIST’s last known address, agrees to give ARTIST the opportunity to purchase the Art Work for the greater of the Total Not to Exceed Compensation in Section 4 above or the amount of any offer which CITY has received for the purchase of the Art Work, plus all costs associated with the removal of the Art Work from the Site, clean-up of the Site and delivery to ARTIST. ARTIST shall have thirty (30) days from the date of CITY’s notice to exercise the option to purchase the Art Work. 16.4. Without limitation of CITY’s rights under Section 16 it is CITY’s practice to notify and consult with the ARTIST before intentionally moving, relocating or removing artwork. If, after the initial discussion, ARTIST and CITY do not reach a mutually agreeable decision regarding relocation or modification of the Art Work, or do not agree upon compensation to ARTIST for providing ARTIST’s input on proposed relocation or modification, CITY may take such actions as CITY deems necessary in management of the Art Work, and no further agreement or compensation is due to ARTIST. 16.5. Notwithstanding the foregoing, whether or not CITY notified or consulted with ARTIST, if CITY removes, relocates, or modifies the Art Work without ARTIST’s prior written consent, CITY shall not be liable to ARTIST for damages. Under such circumstances, if ARTIST objects to the modification or new location, then (i) CITY may restore the Art Work or replace the Art DR AFT Work to its original location, or (ii) if the CITY does not restore the Art Work or to relocate the Art Work to the original location, ARTIST may request that ARTIST’s association with Art Work be severed. In either event, CITY shall have no further obligation or liability to ARTIST. 16.6. If CITY moves the Art Work from its originally installed location without ARTIST’s oversight, ARTIST shall not be held responsible for the structural integrity or safety of the Art Work to the extent that CITY’s action impaired the structural integrity or safety of the Art Work, nor shall ARTIST be held responsible for code compliance of the Art Work in the new location. 16.7. ARTIST’s rights under this Agreement cease with ARTIST’s death and do not extend to ARTIST’s heirs, successors or assigns. SECTION17. MAINTENANCE 17.1. MAINTENANCE, REPAIRS AND RESTORATION As a condition of and prior to final acceptance of the Art Work, ARTIST shall supply CITY with written maintenance instructions. During ARTIST’s lifetime, ARTIST shall supply, at no charge, advice as to problems arising in relation to maintenance of the Art Work. CITY shall have the right to determine, after consultation with ARTIST and a professional conservator, when and if repairs and restorations to the Art Work will be made. It is the policy of CITY to consult with ARTIST regarding repairs and restoration which are undertaken during ARTIST’s lifetime when that is practicable. CITY shall make every reasonable effort to consult with ARTIST and a professional conservator in all matters concerning repairs and restoration of the work. In the event that CITY makes repairs or restoration not approved by ARTIST, ARTIST shall have the right, at ARTIST’s sole option, to have ARTIST’s association with Art Work severed. 17.2. STANDARDS OF REPAIRS AND RESTORATION All repairs and restorations, whether performed by ARTIST, CITY, or by third parties responsible to ARTIST or CITY, shall be made in accordance with professionally recognized principles of conservation of artworks and in accordance with the maintenance instructions provided to CITY by ARTIST. DR AFT SECTION 18. OWNERSHIP OF MATERIALS. Upon delivery, all work products, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. SECTION 19. AUDITS. ARTIST will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, ARTIST’s records pertaining to matters covered by this Agreement. ARTIST further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 20. INDEMNITY. 20.1. To the fullest extent permitted by law, ARTIST 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 ARTIST, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 20.2. Notwithstanding the above, nothing in this Section 20 shall be construed to require ARTIST to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 20.3. The acceptance of ARTIST’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 20 shall survive the expiration or early termination of this Agreement. SECTION 21. 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 22. INSURANCE. 22.1. ARTIST, 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 "D". ARTIST 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. 22.2. 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 ARTIST 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. 22.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the DR AFT 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. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to ARTIST, ARTIST shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the ARTIST’s receipt of such notice. ARTIST 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. 22.4. The procuring of such required policy or policies of insurance will not be construed to limit ARTIST's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, ARTIST 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 23. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 23.1. The City Manager may suspend the performance of the Agreement, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to ARTIST. Upon receipt of such notice, ARTIST will immediately discontinue its performance of the Agreement. 23.2. ARTIST may terminate this Agreement or suspend its performance by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 23.3. Upon such suspension or termination, ARTIST shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by ARTIST or its contractors, if any, or given to ARTIST or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. Except to the extent authorized in writing by ARTIST, CITY shall not fabricate or install a work of art based on ARTIST’s studies, sketches, drawings, computations or other data. 23.4. Upon such suspension or termination by CITY, ARTIST will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by ARTIST, CITY will be obligated to compensate ARTIST only for that portion of ARTIST’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. 23.5. 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 24. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, DR AFT 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 Public Art Program Manager Public Art Program City of Palo Alto 1313 Newell Road Palo Alto, CA 94303 To ARTIST: Attention of the project director at the address of ARTIST recited above SECTION 25. CONFLICT OF INTEREST. 25.1. In accepting this Agreement, ARTIST 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. 25.2. ARTIST further covenants that, in the performance of this Agreement, it will not employ sub-ARTISTs, contractors or persons having such an interest. ARTIST 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. SECTION 26. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, ARTIST 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. ARTIST 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. DR AFT SECTION 27. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. ARTIST shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department, incorporated by reference and may be amended from time to time. ARTIST shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, ARTIST shall comply with the following zero waste requirements: All printed materials provided by ARTIST to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. Goods purchased by ARTIST on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. Reusable/returnable pallets shall be taken back by the ARTIST, at no additional cost to the City, for reuse or recycling. ARTIST shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 28. NON-APPROPRIATION 28.1. 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 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by the laws of the State of California. 29.2. 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. 29.3. 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. 29.4. 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. DR AFT 29.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, ARTIST’s heirs, successors, executors, administrators, and assignees. 29.6. 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. 29.7. 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. 29.8 If, pursuant to this contract with ARTIST, City shares with ARTIST personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), ARTIST shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. ARTIST shall not use Personal Information for direct marketing purposes without City’s express written consent. / / / / / / / / / / / / / / / / / / / / DR AFT 29.10 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. 29.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 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 ____________________________ Purchasing Manager MARY KATHERINE LUCKING By:___________________________ Name:_________________________ Title:__________________________ Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “D”: INSURANCE REQUIREMENTS DR AFT EXHIBIT “A” SCOPE OF SERVICES DR AFT Professional Services Rev. Nov. 1, 2011 BACKGROUND The purpose of this agreement is to outline the scope of work for the design, fabrication, and installation of original artwork(s) integrated into the new Adobe Creek / Highway 101 Pedestrian and Bicycle Bridge connecting Palo Alto and the Baylands Nature Preserve. PROJECT DESCRIPTION The permanent artwork(s) will be well-integrated into the design of the new bridge and should serve as a gateway between Palo Alto and the Baylands. It will activate the bridge and have a strong day and night presence to enhance commuter experience for pedestrians, cyclists and highway commuters. The artwork will communicate the unique character of the surrounding areas, especially Baylands Nature Preserve. The artwork may be stand-alone or functional and should be fabricated using durable materials that require minimal maintenance and upkeep. The lifespan of the artwork is expected to be no less than 20 years. SCOPE OF WORK Artist Mary Lucking will create original artwork(s) for the new Adobe Creek / Highway 101 Pedestrian and Bicycle Bridge connecting Palo Alto and the Baylands Nature Preserve. The permanent artwork(s) will be well-integrated into the design of the new bridge and should serve as a gateway between Palo Alto and the Baylands. It will activate the bridge and have a strong day and night presence to enhance commuter experience for pedestrians, cyclists and highway commuters. The artwork will communicate the unique character of the surrounding areas, especially Baylands Nature Preserve. The artwork may be stand-alone or functional and should be fabricated using durable materials that require minimal maintenance and upkeep. The project will include three phases: concept and design development (I), fabrication (II), and installation on site (III). The Artist will work in collaboration with the City staff and design team through all three phases. Phases II and III will commence only upon the final approval of artwork design and budget by the Public Art Commission. Artist Scope of Work I. Concept Development Phase 1. Begin meetings with City staff and project architects to develop a concept proposal and identify onsite needs to support the artwork installation and continued use. 2. The artist may be asked to work with City staff to plan and conduct a community meeting to gather public input to facilitate concept development. 3. Identify fabrication and installation needs on-site in order to leverage the existing infrastructure and maximize the impact of the identified project budget. Provide final estimates, material samples and revised timeline. 4. Provide Construction Documentation and stamped S.E. drawings to the City Staff. DR AFT Professional Services Rev. Nov. 1, 2011 5. Provide itemized budget for Phases II and III to City staff. 6. Final approval of artwork design by the Public Art Commission and revision of design if needed. II. Fabrication Phase 1. Oversee fabrication process, finishing, and final inspection. 2. Finalize transportation and storage requirements if needed. III. Installation Phase 1. Transportation to site, site preparation, installation and testing on site. 2. Provide digital file & As-Built drawings, maintenance and care instructions for staff. Responsibilities of City of Palo Alto 1. Facilitate meeting arrangements with stakeholder groups, relevant staff and the Public Art Commission. 2. Provide access to construction drawings and plans as necessary for the development of the Public Art design development. 3. Produce and install an identification plaque for the artwork. 4. Provide electrical stubs if artwork requires lighting. DR AFT Professional Services Rev. Nov. 1, 2011 EXHIBIT “B” SCHEDULE OF PERFORMANCE ARTIST shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for ARTIST and CITY so long as all work is completed within the term of the Agreement. ARTIST shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. TIMELINE - TASK : Concept Development Phase March 2017 - Contract signed March 2017 – Contract approved by City Council April 2017 - Artist to travel to Palo Alto to meet with City staff and design team and become better acquainted with the site. - Identify onsite needs to support the artwork installation and continued use in order to leverage the existing infrastructure and maximize the impact of the identified project budget. - If appropriate, participate in a community meeting to gather public input to facilitate concept development. April - July 2017 – Concept development July 2017 – September 2017 - Concept approval through PAC Fabrication Phase September 2017 – December 2017 – Fabrication Installation Phase TBD 2018 – March 2019- Installation on-site Exact timeline for the Design development, Fabrication and Installation is subject to change and to be coordinated with the pedestrian and bicycle bridge construction schedule. DR AFT EXHIBIT “C” COMPENSATION The compensation to be paid to ARTIST under this Agreement for all services described in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed $90,000. ARTIST agrees to complete all Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall come out of contingency fund and not exceed 10% ($10,000). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. BUDGET $90,000 inclusive of all artist fees, and exclusive of 10% contingency. COMPENSATION SCHEDULE: 10% upon signing the contract by the ARTIST and CITY 20% upon final approval of artwork design the Public Art Commission. Fabrication plan and budget are approved by City staff. 60% upon notice to proceed with fabrication 10% upon completion of delivery, installation, submission of documentation and acceptance of artwork by City staff. ADDITIONAL SERVICES ARTIST shall provide additional services only by advanced, written authorization from the CITY. ARTIST, at CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and ARTIST’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by CITY’s project manager and ARTIST prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. DR AFT REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse ARTIST for the following reimbursable expenses at cost. Expenses for which ARTIST shall be reimbursed are: N/A A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $0 shall be approved in advance by the CITY’s project manager. DR AFT EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, 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 CONTRACTOR AND ITS SUBARTISTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) 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. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH 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 WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DR AFT B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS 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 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN 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 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 WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PUBLIC ART PROGRAM CITY OF PALO ALTO 1305 MIDDLEFILED RD PALO ALTO, CA 94303 1 CITY OF PALO ALTO CONTRACT NO: C17167868 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ARTIST MARY LUCKING FOR PROFESSIONAL SERVICES (CONCEPT AND DESIGN DEVELOPMENT, FABRICATION AND INSTALLATION) This Agreement is entered into on this 17th of March, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Mary Katherine Lucking, located at 530 E McDowell Rd #107-284, Phoenix, AZ 85004 ("ARTIST"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to place and provide a work of art for the new Adobe Creek / Highway 101 Pedestrian and Bicycle Bridge connecting Palo Alto and the Baylands Nature Preserve (“Art Work”) and desires to engage an ARTIST to provide research, concept and design development, fabrication and installation in connection with the Art Work (the “Services”). B. ARTIST has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Art Work and Services. C. ARTIST was selected by a panel of art professionals and stakeholders from a pool of applicants, as the most qualified to design and fabricate the Art Work. D. The source of funds for the Art Work and Services derives from funds made available from the City of Palo Alto’s CIP funds identified through the Municipal Percent for Art Ordinance #5301. E. CITY in reliance on these representations desires to engage ARTIST to provide the Art Work and Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. F. The Art Work is considered a permanent installation. “Permanent Installation” means a work of art in a public place intended to remain or remaining for one year or more after its completion by ARTIST, and has an expected lifespan for 20 years, provided, however, CITY may remove the Art Work in a accordance with CITY’s De- Accessioning Policy or as described in Section 16 of this Agreement. Should any damage or impairment occur, CITY will attempt to contact ARTIST before taking further action. G. CITY, through City’s Public Art Program will accession the Art Work into the City’s Collection of Public Art and own all right, title and interest in the Art Work. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 2 AGREEMENT SECTION 1. SCOPE OF SERVICES. ARTIST shall perform the Services and provide the Art Work as described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services and provision of the Art Work shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 30, 2020 unless terminated earlier pursuant to Section 23 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services and provision of the Art Work under this Agreement. ARTIST shall complete the Services and provide the Art Work 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 ARTIST in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the ARTIST. 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 ARTIST. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to ARTIST for performance of the Services and provision of the Art Work described in Exhibit “C”, including both payment for professional services and reimbursable expenses, shall not exceed Ninety Thousand Dollars ($90,000.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall come out of contingency fund and not exceed 10% ($10,000). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. The applicable rates and schedule of payment are set out in Exhibit “C”, entitled “COMPENSATION SCHEDULE”, 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 “C”. ARTIST 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 Art Work, but which is not included within the Scope of Services, described in Exhibit “A”. ARTIST acknowledges that CITY desires that the Art Work, including its conceptual design and content be unique. ARTIST agrees to not duplicate the Art Work without the express written consent of CITY. SECTION 5. INVOICES. In order to request payment, ARTIST shall submit invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the ARTIST’s payment schedule (set forth in Exhibit “C-1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in ARTIST’s payment requests shall be subject to verification by CITY. ARTIST 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. DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 3 SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services and the provision of Art Work shall be performed by ARTIST or under ARTIST’s supervision. ARTIST represents that it possesses the professional and technical personnel necessary to perform the Services and provide the Art Work required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. ARTIST represents that it, its employees and subcontractors, 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 and the Art Work to be furnished by ARTIST 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. ARTIST 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 performance of the Services and the provision of Art Work or those engaged to perform Services under this Agreement. ARTIST shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services and provision of the Art Work. SECTION 8. ERRORS/OMISSIONS. ARTIST 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 ARTIST. If ARTIST has prepared plans and specifications or other design documents to construct and install the Art Work, ARTIST shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction and installation of the Art Work. This obligation shall survive termination of the Agreement. SECTION 9. Left blank by agreement of the parties. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement ARTIST, and any person employed by or contracted with ARTIST 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 ARTIST are material considerations for this Agreement. ARTIST shall not assign or transfer any interest in this Agreement nor the performance of any of ARTIST’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 ARTIST shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. ARTIST shall be responsible for directing the work of any sub-CONTRACTORs and for any compensation due to sub-CONTRACTORs. CITY assumes no responsibility whatsoever concerning compensation. ARTIST shall be fully responsible to CITY for all acts and omissions of a sub-CONTRACTOR. ARTIST shall change or add sub-CONTRACTORs only with the prior approval of the city manager or his designee. DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 4 SECTION 13. PROJECT MANAGEMENT. ARTIST will serve as the project manager with supervisory responsibility for the performance, progress, and execution of the Services and provision of the Art Work. If circumstances cause the substitution of key personnel for any reason, the appointment of substitute personnel will be subject to the prior written approval of the CITY’s project manager. ARTIST, 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 Elise DeMarzo, Public Art Program Director, Division of Arts & Sciences, Community Services Department, 1313 Newell Road, Palo Alto, CA 94303, phone: 650-617-3517. The CITY may designate an alternate project manager from time to time. SECTION 14. PROPERTY RIGHTS IN ART WORK; VARA WAIVER. 14.1. CITY commissions ARTIST to design and create a work of art (the “Art Work”) to be displayed at a location in Palo Alto, as determined by CITY, acting in its sole discretion. Subject to the rights granted by ARTIST to CITY, as described below, and in consideration of the substantial compensation that CITY will pay to ARTIST for the Art Work, CITY acquires all right, title an interest in the Art Work, and ARTIST retains all copyrights in the Art Work that ARTIST will deliver to CITY under this Agreement. 14.2. ARTIST grants to CITY a non-exclusive, royalty-free, irrevocable license to do the following with respect to the Art Work, in whatever media, including, without limitation, digital and electronic media, that now or hereafter are known: (A) use and display the Art Work; (B) make and distribute, and authorize the making and distribution of, two-dimensional images and reproductions of the Art Work; (C) use any images and reproductions for City-related purposes, including, without limitation, advertising-, branding-, education-, information-, promotion- and publicity-related materials; and (D) sublicense the rights granted herein to third parties to fulfill the public art purposes of the City’s commissioning of the Art Work. CITY will make reasonable efforts to include ARTIST’s name and the name of the Art Work on all reproductions, including, without limitation, electronic or digital reproduction. 14.3. With respect to the Art Work, ARTIST waives any and all claims, arising at any time against CITY, its elected and appointed officials, officers, employees, agents and representatives, that may be grounded in any federal law, including, without limitation, the Visual Artists Rights Act (17 U.S.C. §106A). California law, including, without limitation, the California Art Preservation Act (Cal. Civil Code §987 et seq.), or local law that may relate to the moral rights of ARTIST or protection of the integrity of the Art Work. SECTION 15. ARTIST’S WARRANTY ARTIST represents and warrants that: 15.1. Prior to transfer of title of the Art Work to the City, ARTIST is the sole and absolute owner of the Art Work, the copyrights pertaining to the Art Work, and all the rights associated or relating to it. 15.2. ARTIST has not previously sold, assigned, licensed, granted, encumbered, or utilized the Art Work or any element thereof, in any manner which may affect or impair the rights granted DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 5 pursuant to this Agreement including without limited to, inhibiting the CITY’s ability to show the work, reproduce the Art Work as defined in Section 22, or maintain/conserve the work into the future. 15.3. All Art Work created by ARTIST under this Agreement, whether created by ARTIST alone or in collaboration with others, is wholly original and does not infringe upon or violate the rights of any third party. 15.4. ARTIST has acquired all rights to any third party software or other component of the Art Work necessary for the operation and display of the Art Work. 15.5. ARTIST has the full power to enter into and perform this Agreement and to grant the rights contained in this Agreement. 15.6. ARTIST warrants that the Art Work is the result of the artistic efforts of ARTIST and that it will be delivered full and clear of any liens, claims and encumbrances of any type. 15.7. These representations and warranties shall survive the termination or other extinction of this Agreement. SECTION 16. FUTURE MODIFICATION OR RELOCATION 16.1. CITY has the right to remove the Art Work from the Site at any time. In addition, in the event that any element of the Art Work constitutes a public safety hazard, CITY has the right to remove the element posing the public safety hazard. 16.2. Except to the extent permitted by subsection A above, CITY agrees not to intentionally modify the Art Work without first obtaining ARTIST’s written consent. 16.3. CITY shall have the right to donate or sell the Art Work at any time. Before exercising this right, CITY, by written notice to ARTIST at ARTIST’s last known address, agrees to give ARTIST the opportunity to purchase the Art Work for the greater of the Total Not to Exceed Compensation in Section 4 above or the amount of any offer which CITY has received for the purchase of the Art Work, plus all costs associated with the removal of the Art Work from the Site, clean-up of the Site and delivery to ARTIST. ARTIST shall have thirty (30) days from the date of CITY’s notice to exercise the option to purchase the Art Work. 16.4. Without limitation of CITY’s rights under Section 16 it is CITY’s practice to notify and consult with the ARTIST before intentionally moving, relocating or removing artwork. If, after the initial discussion, ARTIST and CITY do not reach a mutually agreeable decision regarding relocation or modification of the Art Work, or do not agree upon compensation to ARTIST for providing ARTIST’s input on proposed relocation or modification, CITY may take such actions as CITY deems necessary in management of the Art Work, and no further agreement or compensation is due to ARTIST. 16.5. Notwithstanding the foregoing, whether or not CITY notified or consulted with ARTIST, if CITY removes, relocates, or modifies the Art Work without ARTIST’s prior written consent, CITY shall not be liable to ARTIST for damages. Under such circumstances, if ARTIST objects to the modification or new location, then (i) CITY may restore the Art Work or replace the Art Work to its original location, or (ii) if the CITY does not restore the Art Work or to relocate the DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 6 Art Work to the original location, ARTIST may request that ARTIST’s association with Art Work be severed. In either event, CITY shall have no further obligation or liability to ARTIST. 16.6. If CITY moves the Art Work from its originally installed location without ARTIST’s oversight, ARTIST shall not be held responsible for the structural integrity or safety of the Art Work to the extent that CITY’s action impaired the structural integrity or safety of the Art Work, nor shall ARTIST be held responsible for code compliance of the Art Work in the new location. 16.7. ARTIST’s rights under this Agreement cease with ARTIST’s death and do not extend to ARTIST’s heirs, successors or assigns. SECTION17. MAINTENANCE 17.1. MAINTENANCE, REPAIRS AND RESTORATION As a condition of and prior to final acceptance of the Art Work, ARTIST shall supply CITY with written maintenance instructions. During ARTIST’s lifetime, ARTIST shall supply, at no charge, advice as to problems arising in relation to maintenance of the Art Work. CITY shall have the right to determine, after consultation with ARTIST and a professional conservator, when and if repairs and restorations to the Art Work will be made. It is the policy of CITY to consult with ARTIST regarding repairs and restoration which are undertaken during ARTIST’s lifetime when that is practicable. CITY shall make every reasonable effort to consult with ARTIST and a professional conservator in all matters concerning repairs and restoration of the work. In the event that CITY makes repairs or restoration not approved by ARTIST, ARTIST shall have the right, at ARTIST’s sole option, to have ARTIST’s association with Art Work severed. 17.2. STANDARDS OF REPAIRS AND RESTORATION All repairs and restorations, whether performed by ARTIST, CITY, or by third parties responsible to ARTIST or CITY, shall be made in accordance with professionally recognized principles of conservation of artworks and in accordance with the maintenance instructions provided to CITY by ARTIST. SECTION 18. OWNERSHIP OF MATERIALS. Upon delivery, all work products, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. SECTION 19. AUDITS. ARTIST will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, ARTIST’s records pertaining to matters covered by this Agreement. ARTIST further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 20. INDEMNITY. 20.1. To the fullest extent permitted by law, ARTIST 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 attorney fees, expert fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 7 to performance or nonperformance by ARTIST, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 20.2. Notwithstanding the above, nothing in this Section 20 shall be construed to require ARTIST to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 20.3. The acceptance of ARTIST’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 20 shall survive the expiration or early termination of this Agreement. SECTION 21. 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 22. INSURANCE. 22.1. ARTIST, 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 "D". ARTIST 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. 22.2. 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 ARTIST 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. 22.3. 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. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to ARTIST, ARTIST shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the ARTIST’s receipt of such notice. ARTIST 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. 22.4. The procuring of such required policy or policies of insurance will not be construed to limit ARTIST's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, ARTIST 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 23. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 8 23.1. The City Manager may suspend the performance of the Agreement, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to ARTIST. Upon receipt of such notice, ARTIST will immediately discontinue its performance of the Agreement. 23.2. ARTIST may terminate this Agreement or suspend its performance by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 23.3. Upon such suspension or termination, ARTIST shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by ARTIST or its contractors, if any, or given to ARTIST or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. Except to the extent authorized in writing by ARTIST, CITY shall not fabricate or install a work of art based on ARTIST’s studies, sketches, drawings, computations or other data. 23.4. Upon such suspension or termination by CITY, ARTIST will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by ARTIST, CITY will be obligated to compensate ARTIST only for that portion of ARTIST’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. 23.5. 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 24. 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 Public Art Program Manager Public Art Program City of Palo Alto 1313 Newell Road Palo Alto, CA 94303 To ARTIST: Attention of the project director at the address of ARTIST recited above DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 9 SECTION 25. CONFLICT OF INTEREST. 25.1. In accepting this Agreement, ARTIST 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. 25.2. ARTIST further covenants that, in the performance of this Agreement, it will not employ sub-ARTISTs, contractors or persons having such an interest. ARTIST 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. SECTION 26. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, ARTIST 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. ARTIST 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. SECTION 27. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. ARTIST shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department, incorporated by reference and may be amended from time to time. ARTIST shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, ARTIST shall comply with the following zero waste requirements: All printed materials provided by ARTIST to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. Goods purchased by ARTIST on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. Reusable/returnable pallets shall be taken back by the ARTIST, at no additional cost to the City, for reuse or recycling. ARTIST shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 28. NON-APPROPRIATION 28.1. 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 DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 10 (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 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by the laws of the State of California. 29.2. 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. 29.3. 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. 29.4. 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. 29.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, ARTIST’s heirs, successors, executors, administrators, and assignees. 29.6. 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. 29.7. 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. 29.8 If, pursuant to this contract with ARTIST, City shares with ARTIST personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), ARTIST shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. ARTIST shall not use Personal Information for direct marketing purposes without City’s express written consent. / / / / / / / / DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 11 29.10 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. 29.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 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 As Approved to Form ___________________________ City Attorney or designee MARY KATHERINE LUCKING By:___________________________ Name:_________________________ Title:__________________________ Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 artist Mary Katharine Lucking 12 EXHIBIT “A” SCOPE OF SERVICES BACKGROUND The purpose of this agreement is to outline the scope of work for the design, fabrication, and installation of original artwork(s) integrated into the new Adobe Creek / Highway 101 Pedestrian and Bicycle Bridge connecting Palo Alto and the Baylands Nature Preserve. PROJECT DESCRIPTION The permanent artwork(s) will be well-integrated into the design of the new bridge and should serve as a gateway between Palo Alto and the Baylands. It will activate the bridge and have a strong day and night presence to enhance commuter experience for pedestrians, cyclists and highway commuters. The artwork will communicate the unique character of the surrounding areas, especially Baylands Nature Preserve. The artwork may be stand-alone or functional and should be fabricated using durable materials that require minimal maintenance and upkeep. The lifespan of the artwork is expected to be no less than 20 years. SCOPE OF WORK Artist Mary Lucking will create original artwork(s) for the new Adobe Creek / Highway 101 Pedestrian and Bicycle Bridge connecting Palo Alto and the Baylands Nature Preserve. The permanent artwork(s) will be well-integrated into the design of the new bridge and should serve as a gateway between Palo Alto and the Baylands. It will activate the bridge and have a strong day and night presence to enhance commuter experience for pedestrians, cyclists and highway commuters. The artwork will communicate the unique character of the surrounding areas, especially Baylands Nature Preserve. The artwork may be stand-alone or functional and should be fabricated using durable materials that require minimal maintenance and upkeep. The project will include three phases: concept and design development (I), fabrication (II), and installation on site (III). The Artist will work in collaboration with the City staff and design team through all three phases. Phases II and III will commence only upon the final approval of artwork design and budget by the Public Art Commission. Artist Scope of Work I. Concept Development Phase 1. Begin meetings with City staff and project architects to develop a concept proposal and identify onsite needs to support the artwork installation and continued use. 2. The artist may be asked to work with City staff to plan and conduct a community meeting to gather public input to facilitate concept development. 3. Identify fabrication and installation needs on-site in order to leverage the existing infrastructure and maximize the impact of the identified project budget. Provide final estimates, material samples and revised timeline. 4. Provide Construction Documentation and stamped S.E. drawings to the City Staff. DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 13 5. Provide itemized budget for Phases II and III to City staff. 6. Final approval of artwork design by the Public Art Commission and revision of design if needed. II. Fabrication Phase 1. Oversee fabrication process, finishing, and final inspection. 2. Finalize transportation and storage requirements if needed. III. Installation Phase 1. Transportation to site, site preparation, installation and testing on site. 2. Provide digital file & As-Built drawings, maintenance and care instructions for staff. Responsibilities of City of Palo Alto 1. Facilitate meeting arrangements with stakeholder groups, relevant staff and the Public Art Commission. 2. Provide access to construction drawings and plans as necessary for the development of the Public Art design development. 3. Produce and install an identification plaque for the artwork. 4. Provide electrical stubs if artwork requires lighting. DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 14 EXHIBIT “B” SCHEDULE OF PERFORMANCE ARTIST shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for ARTIST and CITY so long as all work is completed within the term of the Agreement. ARTIST shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. TIMELINE - TASK: Concept Development Phase March 2017 – Contract signed March 2017 – Contract approved by City Council April 2017 - Artist to travel to Palo Alto to meet with City staff and design team and become better acquainted with the site. - Identify onsite needs to support the artwork installation and continued use in order to leverage the existing infrastructure and maximize the impact of the identified project budget. - If appropriate, participate in a community meeting to gather public input to facilitate concept development. April - July 2017 – Concept development July 2017 – September 2017 – Concept approval through PAC Fabrication Phase September 2017 – December 2017 – Fabrication Installation Phase TBD 2018 – March 2019- Installation on-site Exact timeline for the Design development, Fabrication and Installation is subject to change and to be coordinated with the pedestrian and bicycle bridge construction schedule. DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 15 EXHIBIT “C” COMPENSATION The compensation to be paid to ARTIST under this Agreement for all services described in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed $90,000. ARTIST agrees to complete all Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall come out of contingency fund and not exceed 10% ($10,000). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. BUDGET $90,000 inclusive of all artist fees, and exclusive of 10% contingency. COMPENSATION SCHEDULE: 10% upon signing the contract by the ARTIST and CITY 20% upon final approval of artwork design the Public Art Commission. Fabrication plan and budget are approved by City staff. 60% upon notice to proceed with fabrication 10% upon completion of delivery, installation, submission of documentation and acceptance of artwork by City staff. ADDITIONAL SERVICES ARTIST shall provide additional services only by advanced, written authorization from the CITY. ARTIST, at CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and ARTIST’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by CITY’s project manager and ARTIST prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 16 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse ARTIST for the following reimbursable expenses at cost. Expenses for which ARTIST shall be reimbursed are: N/A A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $0 shall be approved in advance by the CITY’s project manager. DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 17 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, 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 CONTRACTOR AND ITS SUBARTISTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) 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. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH 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 WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 18 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS 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 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN 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 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 WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PUBLIC ART PROGRAM CITY OF PALO ALTO 1305 MIDDLEFILED RD PALO ALTO, CA 94303 DocuSign Envelope ID: 9BBD1514-FBA3-4885-ADC6-E61714DBF537 City of Palo Alto (ID # 7702) City Council Staff Report Report Type: Consent Calendar Meeting Date: 3/27/2017 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Electric and Gas General Consulting Enabling Agreements Title: Approval of Five Separate Professional Services Agreements for General Electric and Gas Services over a Three Year Term with all Subject to an Aggregate Not-to-Exceed Amount of $975,000, with (1) Navigant Consulting; (2) Flynn Resource Consulting Inc.; (3) PA Consulting Group; (4) Optony Inc.; and (5) NewGen Strategies and Solutions, LLC From: City Manager Lead Department: Utilities Recommendation Staff recommends that the City Council approve and authorize the City Manager or his designee to execute the attached five (5) contracts (Attachment A) for electric and gas consulting services with Navigant Consulting Inc. (Navigant), Flynn Resource Consulting Inc. (Flynn RCI), PA Consulting Group (PAConsulting), Optony Inc. (Optony), and NewGen Strategies and Solutions, LLC (NewGen). The five (5) separate consulting contracts are all subject to an aggregate not-to- exceed amount of $975,000 over the three year term of each of the agreements; subject to the annual appropriation of funds. Executive Summary In August 2016, the City issued Request for Proposal (RFP) No. 164725 with the objective to secure one or more consultant(s) to augment staff resources and provide specialized knowledge and analysis in the areas in support of supply analysis and planning for the Electric and Gas Utilities. Thirteen vendors responded to the City’s RFP and five consultants were selected for consideration based on the quality of their proposal, experience, responsiveness and cost to provide consulting support services. The five consultants are Navigant, Flynn RCI, PAConsulting, Optony, and NewGen and staff proposes a three year term with all five contracts subject to an aggregate not-to-exceed amount of $975,000. Award of the five contracts will allow the City to use objective criteria to solicit and select the firm with the most appropriate skills and experience for individual tasks that arise in this area over the three year term of the agreements and the suite of five vendors will ensure that there are options available for the City as projects arise. City of Palo Alto Page 2 Background For more than two decades the City of Palo Alto (City) has retained consultants to (1) assist staff with developing positions and advocating in federal and state legislative and regulatory proceedings and (2) to provide technical support in various aspects related to meeting the requirements of delivering energy in California. Maintaining multiple on-call consulting contracts gives staff flexibility to address technical issues requiring outside assistance as they arise, without delay and with multiple options and prices to consider. The City’s most recent electric consultants provided technical assistance and intervention in the area of regulatory and Bay Area transmission planning proceedings at the California Public Utilities Commission (CPUC), the California Independent System Operator (CAISO), the California Energy Commission (CEC), the California Air Resources Board (CARB), and the Transmission Agency of Northern California (TANC) and the Federal Energy Regulatory Commission (FERC). Further, the electric consultants provided technical support in the development of the Council-approved Carbon Neutral Plan and implementation of the City’s Renewable Portfolio Standard. In the past, the City’s gas consultant provided assistance in regulatory proceedings at the CPUC and with Pacific Gas and Electric (PG&E) settlement processes and negotiations. Although, more recently staff has undertaken these activities in-house and therefore relies less on consultant support. The City advocates for long-term solutions to improve the reliability, safety and sustainable acquisition of gas and electricity supply (energy) in a cost effective and equitable manner. The City also works closely with other municipal utilities and consumer groups on planning and advocating for local control to ensure the community’s interest are best met. Consultant assistance is needed to supplement staff resources in conducting technical and economic studies in support of Council approved initiatives and legislative and regulatory mandates for both the electric and gas utilities. Additionally, meeting the community’s interest in achieving aggressive GHG emission reductions through electric grid level solutions, expansion of rooftop photovoltaics offerings, electrification of transportation and natural gas appliance usage and the development and implementation of energy carbon neutral policies requires both staffing resources and specific expertise, which may be beyond current staff’s knowledge. The use of expert and experienced consultants can be a cost effective manner in which to achieve the community’s objectives. Electric Consulting Services During the next three years, electric legislative and regulatory proceedings that will affect the City and its customers will continue in several major areas at both the state and federal levels. Issues include the ongoing updates and changes to the California transmission and capacity markets, regional expansion of the CAISO, long-term transmission grid planning and investment, anti-market manipulation legislation and regulations, transmission access charge settlement and implementation, transmission grid reliability standards with increasing City of Palo Alto Page 3 regulatory filing requirements for the City as a distribution service provider, and increasing legislative and regulatory compliance and reporting requirements related to energy efficiency, demand reduction, renewable energy supply, and environmental initiatives such as greenhouse gas (GHG) emissions reductions. Gas Consulting Services Historically, the City has used consultants to advocate on the City’s behalf in natural gas proceeds at the CPUC on issues related to safety, transmission access and rates, and cost allocation issues. Due to a lack of consultants without a stated conflict of interest (many regulatory consultants represent Pacific Gas and Electric in rate hearings); City staff no longer relies on outside consultants to intervene at CPUC proceedings on behalf of the City. Consultant assistance may be needed to supplement staff resources in developing programs and projects related to cap and trade and the development of policies and/or programs to reduce the carbon intensity associated with the natural gas utility. Discussion Staff anticipates that the five consultants identified in this staff report can assist the City with a broad array of electric and gas consulting services. The City’s August 2016 Request for Proposal (RFP) was published and distributed to consulting firms known to offer relevant services. The RFP allowed consultants to respond to one or more of the following major sections of the scope of work: Natural Gas Utility Technical Support and Analysis Natural Gas Utility Management, Policy and Program Development Electric Utility Technical Support and Analysis Electric Utility Management, Policy and Program Development- Electric Utility Legislative and Regulatory Services Electric Utility Transmission and Congestion Management Support- Other services for the Electric Utility as required The RFP also stated that more than one consulting firm may be retained to perform the tasks outlined in the scope of work and that award of a contract would not guarantee that the consultant would be awarded any specific tasks. Thirteen firms submitted proposals responding to all or parts of the scope of work. Staff reviewed each firm's qualifications and submittals in response to the RFP relative to the criteria outlined in the RFP. Major evaluation criteria included proposal quality and responsiveness, the overall firm’s experience, experience of individuals to be assigned to potential tasks, cost, recent dealing with relevant agencies, and the quality and completeness of the proposal. City of Palo Alto Page 4 The selected five consultants ranked in the top five based on the evaluation criteria. All of the selected vendors demonstrated an in-depth knowledge of the industry and ability to provide flexibility in responding to most all of the City’s energy planning needs over the next three years. However, Flynn RCI’s work will often leverage similar work performed by the consultant for the Bay Area Municipal Transmission group, of which City is a member and therefore is expected to be relied on more often for electric transmission related issues. Task Orders Council approval of the consulting agreements will enable staff to utilize the agreements for various projects and/or tasks however does not guarantee any work will be carried out with any of the consultants over the term of the agreements. The contracts set each consultant’s rates and the general type of work they may be engaged in upon City request and selection. When staff has a specific project or task that requires consulting services, City staff will solicit proposals from amongst the five vendors, evaluate the responses using objective criteria and make a selection amongst the five vendors for the project. Upon selection, a task order with a scope, timeline, and budget will be established with the selected vendor. Resource Impact Staff anticipates spending no more than the $975,000 not-to-exceed amount in aggregate over the three years for all task orders, but this amount may vary and is subject to the annual appropriation of funds. The agreements expressly do not guarantee any work to vendors during the term of the contracts, but merely sets each consultant’s rates and the general type of work they may engage in upon City request, solicitation and selection using individual Task Orders. When work is performed under a City task order, staff will ensure that the aggregate total compensation to all five consultants does not exceed the aggregate $975,000 limit. No funds will be encumbered until an individual task budget has been established. In FY 2017, $100,000 is budgeted for these types of contract services in the Electric Fund, and $25,000 in the Gas Fund. No additional funds are necessary for FY 2017. Beyond FY 2017, it is anticipated that requests for additional funding beyond this initial $125,000 already identified in FY 2017 will be brought forward as part of the City’s annual budget process. Policy Impacts This recommendation sets no new Council policy and is consistent with the Council-approved Utilities Strategic Plan. Environmental Review Approval of the five consultant contracts does not meet the definition of a project, pursuant to Section 21065 of the California Environmental Quality Act, thus no environmental review is required. Attachments: City of Palo Alto Page 5 Attachment A: Electric and Gas Professional Services Agreements Professional Services Rev. January 31, 2017 1 CITY OF PALO ALTO CONTRACT NO. C17167692 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND NAVIGANT CONSULTING, INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this 27th day of March, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and NAVIGANT CONSULTING, INC., a Delaware corporation, located at 1 Market Street, Spear Tower #1200, San Francisco, CA 94105 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to participate in wholesale energy (electric and gas) strategic planning, technical, transmission, distributed energy planning in the regulatory and legislative fields (“Project(s)”) and desires to engage a consultant to assist the CITY with specialized knowledge and analysis related to such Projects (“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, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at 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. ☒ Optional On-Call Provision (This provision only applies if checked and only applies to on- call agreements.) Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 ATTACHMENT A Professional Services Rev. January 31, 2017 2 forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through March 27, 2020 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” (“Basic Services”), and Reimbursable Expenses, shall not exceed Nine Hundred and Seventy-Five Thousand Dollars ($975,000) over the Term across a total of five (5) consultant agreements C17164725 (Flynn), C17167690 (Optony), C17167691 (PA Consulting), C17167692 (Navigant), and C17167693 (NewGen), of which this is one. CONSULTANT agrees to complete all Basic Services, including Reimbursable Expenses, within this amount. The five (5) contracts will be administered by the CITY UTILITIES DEPARTMENT to ensure the total aggregate of compensation for all five (5) contracts does not exceed the amounts set forth in this section. CONSULTANT acknowledges and agrees CITY has entered into five (5) consultant contracts, including this Agreement with CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants will not exceed the amounts set forth in this section. The applicable rates and schedule of payment are set out in Exhibit “C”, entitled “COMPENSATION”, and/or the applicable Task Order issued by CITY for the Services both of which are, or will be attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services are not contemplated as part of this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 3 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 performed 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 represents that it, its employees and subconsultants, 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 manner 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 is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. 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 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 DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 4 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. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any 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 Amul Sathe, Director, 1 Market Street, Spear Tower, Suite 1200, San Francisco, CA 94105, Telephone (415) 399-2180, as the Project Supervisor to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT 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. CITY’s project manager is Monica Padilla, Senior Resource Planner, Utilities Department, Resource Management Division, 250 Hamilton Avenue, Palo Alto, CA 94301, Telephone (650) 329-2592. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement 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 work 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. All services provided by CONSULTANT shall be for use solely for the CITY’s business purposes, including for presentation at public meetings or for distribution to the public, and the purpose set forth in this Agreement and not for any other purpose. CONSULTANT will retain DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 5 sole and exclusive ownership of all rights, title and interest in CONSULTANT’s work papers, proprietary information, processes, methodologies, know-how and software, including such information as existed prior to the delivery of CONSULTANT’s services and, to the extent such information is of general application, anything that CONSULTANT may discover, create or develop during CONSULTANT’s provision of services hereunder (“CONSULTANT Property”). To the extent CONSULTANT’s reports or other documents delivered to the CITY contain CONSULTANT Property, CONSULTANT grants the CITY a non-exclusive, non-assignable, royalty-free license to use it in connection with the purpose of this engagement. 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 (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 reasonable 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 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 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 "D". 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 DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 6 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. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 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 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 or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. 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 studies, sketches, drawings, computations, and other data, 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. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 7 services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, 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. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 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. 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, CONSULTANT 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, DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 8 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. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CCONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. 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. DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 9 This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. 26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any contract for public works construction, alteration, demolition, repair or maintenance. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. 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. 27.3. 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. 27.4. 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. 27.5. 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. 27.6. 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. 27.7. 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. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 10 of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 All unchecked boxes do not apply to this agreement. 27.11 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. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 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 or designee APPROVED AS TO FORM: City Attorney or designee NAVIGANT CONSULTING INC. By: ____________________________ Name: Title: By: _____________________________ Name: Title: Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” FORM OF PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Amul Sathe Director Karin Corfee Managing Director Professional Services Rev. January 31, 2017 11 EXHIBIT “A” SCOPE OF SERVICES The Consultant may be asked to perform Services on an on-call basis, using the form included as Exhibit “A-1”, in one or more of the following areas: ELECTRIC UTILITY 1)Technical Support - Provide City with technical support related to electric planning issues including: a)Analysis of energy efficiency programs and potential; b)Assessment of local solar economic and market potential; c)Evaluation of supply resource alternatives; d) Assessment of energy storage potential; and e)Development of supply cost modeling and uncertainties. f)Evaluation of distribution grid impacts of high penetration of distributed energy resources 2)Utility Management - Assist City in the development and/or implementation of policies, plans and strategies related to: a) Implementation of electrification initiatives in Palo Alto; b) Development of long-term energy plans, integrated resource plans; c)Development of local generation, energy efficiency, demand resources and distributed energy resource plans and strategies; and d)Development of local solar initiatives such as a community solar program or a program to facilitate solar adoption on non-profits; e)Evaluation of carbon neutral resource opportunities including evaluation of large hydroelectric resources; f)Greenhouse gas regulations including cap and trade and other environmental initiatives; g)Assessment of CFTC and Dodd-Frank Act implications; h) Development of alternatives for scheduling and settling resources into the CAISO; and i)Evaluation of involvement in Joint Powers Authority opportunities for investment in generation and transmission of electricity and delivery services. 3)Congestion Management, Legislative and Regulatory Services: a)Monitor and analyze ISO, CPUC, CEC, FERC, PG&E (Grid Planning) regional transmission planning groups and other related agencies activities, and, based on discussion with Staff, represent the City’s interests in proceedings. b)Assess congestion cost related to existing and potential resources and recommend strategies to manage congestion cost c)Monitor, analyze and, represent the City’s interest in the activities of the CAISO, CPUC, CEC, FERC, PG&E (Grid Planning) and other agencies as related to CAISO tariff amendments, grid management charges, congestion charges, transmission access charges, neutrality and other charges and protect the City’s interests. d) Recommend regulatory strategies for the City and positions in proceedings before the DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 12 FERC, CEC, CPUC, CAISO and other agencies as appropriate. e)Monitor the developing California electricity market design and energy markets, and State and Federal involvement in the electricity industry as they relate to serving electric load in the San Francisco Greater Bay Area (Bay Area). f)Identify the Bay Area specific risks for the City from locational marginal pricing, local capacity requirements, transmission constraints, and State imposed measures for deliverability, outage coordination, maintenance standards and the use of muni– owned transmission lines and local generation g)Establish regulatory and legislative objectives, goals and priorities h) Maintain an ongoing presence at the CAISO to represent the City’s interest effectively. 4)Transmission and Congestion Management - Assist City with analysis, improvement and expansion of transmission, generation, congestion and reliability issues. a)Identifying, developing and promoting cost-effective and long-term solutions for reliability and economic transmission needs, transmission for renewable resources, local generation, and non-wires solutions; b) Upgrade City’s transmission interconnection to the grid; c)Recommend economic transmission expansion or other alternatives for the Bay Area; d) Perform power flow, short circuit and feasibility studies for electric transmission, substation and generation conceptual plans as directed by City staff; e)Provide technical support to the City in coordination with PG&E, CAISO, the Western Area Power Administration, or other agencies as required concerning these plans; f)Identify and recommend strategies for managing congestion risk associated with the City’s various long-term renewable resources; g)Assess transmission value and opportunities in California and recommend strategies related to the City’s ownership in the California Oregon Transmission Project; and h)Maintain routine and sufficient access to key policymakers and staff at the CAISO to facilitate, upon City authorization, effective and efficient representation of the City’s viewpoints and concerns on Bay Area transmission and system operation issues. NATURAL GAS UTILITY 1)Technical Support – Assist the City with the following analysis: a) Determine natural gas energy efficiency potential; b) Propose strategies for reducing GHG emissions c) Assessment of electrification and fuel switching opportunities; d)Assessment of electrification potential and cost-effectiveness and physical and financial implications associated with large scale reductions of natural gas usage to the distribution system. 2)Utility Management – Assist the City with municipal utility issues including but not limited to: a)Investigate and report on potential jurisdictional issues b) Identify opportunities for use of Tax Exempt Bonds c)Explore Voluntary Green Tariff Program DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 13 d)Development or refinement of renewable Natural Gas policies e)Implementation of GHG regulations, including cap and trade and other environmental initiatives. OTHER TASKS 1)Consultant may assist the City in meeting: a)Requirements for registration and compliance with NERC and WECC grid reliability standards; b) Responding to the rapidly developing energy industry in California; and c)Coordinating efforts with other municipal utilities, including the Bay Area Municipal Transmission Group (BAMx), NCPA and TANC on various issues such as described above. d)Other tasks related to the Electric or Natural Gas Utility as needed and requested using a Task Order by City. DELIVERABLES Consultant’s deliverables will be determined on a task -by -task basis, as specified on a form substantially in the form of Exhibit “A-1”. Deliverables may include one-time written reports, periodic written reports and updates, oral presentations, recommendations and analysis. As specified more clearly on the applicable Task Order (in form of Exhibit “A-1”), all reports and written material must be provided to and approved by Resource Management Division (RM) staff prior to delivery to outside agencies. DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 14 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER (“TASK ORDER”) CONSULTANT hereby agrees: 1. This is a Task Order pursuant to the Professional Services Agreement between the City of Palo Alto (“CITY”), and PA Consulting (“CONSULTANT”), dated ____________, (“Agreement”). 2.The Confirmation is subject to the terms and conditions of Agreement, except as expressly provided in this Confirmation. All capitalized terms have the meaning given to them in the Agreement. 3.The City of Palo Alto agrees to pay CONSULTANT for services as described below and in the not to exceed amounts specified in this Confirmation, and in accordance with the provisions of the Agreement. 4.CONSULTANT hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement. 5.All exhibits referenced below are incorporated in the Agreement by this reference. 6.CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by the confirmation as described below. Task Order Specific Details: A. TASK ORDER NO. ____ OF ____ B. PROJECT DESCRIPTION: C. SCOPE OF SERVICES (See attached) MUST INCLUDE: ▪ WORK TO BE PERFORMED ▪ SCHEDULE OF WORK ▪ BASIS FOR PAYMENT & FEE SCHEDULE ▪ DELIVERABLES▪ REIMBURSEABLES (identified, but not included within “not to exceed” amount) D. PERIOD OF PERFORMANCE: ESTIMATED START: _________ ESTIMATED COMPLETION: _________ E. TOTAL TASK ORDDER PRICE: NOT TO EXCEED $ ________________ F. ATTACHMENTS: I. Scope of Services II. ___________________________________________ I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO NAVIGANT CONSULTING INC. BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services in accordance with the timelines and deadlines specified in the applicable Task Order from CITY. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. If specified in the applicable Task Order, CONSULTANT shall provide the CITY with a detailed schedule of work. DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 16 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in an applicable Task Order. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1, or on a lump sum basis as specified in the applicable Task Order, up to the not to exceed amount as set forth on the applicable Task Order. Additional Services are not authorized under the Agreement. In order to receive compensation, CONSULTANT’S performance must satisfy all requirements set forth in the agreement, Exhibit “A” and the applicable Task Order. CONSULTANT’S compensation under this Agreement, for all Basic Services and Reimbursable Expenses set forth on an individual ask Order or in the aggregate, are subject to the specific “not to exceed” requirements and limits set forth in Section 4 of the Agreement. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are as specified on applicable Task Order. A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any single expense anticipated to be more than $500 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES Additional Services are not authorized under this Agreement. However, CONSULTANT may provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 17 in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement EXHIBIT “C-1” SCHEDULE OF RATES Consulting Level 2016 Billing Rate* ($/hour) Managing Director $420 Director $360 Associate Director $312 Managing Consultant $260 Senior Consultant $224 Consultant $172 Sr. Analyst $164 Analyst $152 Admin Support $140 * Annual escalation of billing rates is 3% effective the beginning of each calendar year EXHIBIT “D” DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 18 INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, 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 CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) 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. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II.CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III.ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A.PRIMARY COVERAGE WITH 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 WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. January 31, 2017 19 THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS 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 1.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: C7715D81-4E95-4285-BC75-FEBFF7FB6B35 Professional Services Rev. April 27, 2016 1 CITY OF PALO ALTO CONTRACT NO. C17164725 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND FLYNN RESOURCE CONSULTANTS INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this 27th day of March, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and FLYNN RESOURCE CONSULTANTS INC., a California corporation, located at 5440 Edgeview Drive, Discovery Bay, CA 94505 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to participate in wholesale energy (electric and gas) strategic planning, technical, transmission, distributed energy planning in the regulatory and legislative fields (“Project(s)”) and desires to engage a consultant to assist the CITY with specialized knowledge and analysis related to such Projects (“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, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at 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. Optional On-Call Provision (This provision only applies if checked and only applies to on- call agreements.) Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 2 forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through March 27, 2020 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” (“Basic Services”), and Reimbursable Expenses, shall not exceed Nine Hundred and Seventy-Five Thousand Dollars ($975,000) over the Term across a total of five (5) consultant agreements (C17164725 (Flynn), C17167690 (Optony), C17167691 (PA Consulting), C17167692 (Navigant), and C17167693 (NewGen)), of which this is one. CONSULTANT agrees to complete all Basic Services, including Reimbursable Expenses, within this amount. The five (5) contracts will be administered by the CITY’s UTILITIES DEPARTMENT to ensure the total aggregate of compensation for all five (5) contracts does not exceed the amounts set forth in this section. Consultant acknowledges and agrees that the CITY has entered into five (5) consultant contracts, including this Agreement with CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants will not exceed the amounts set forth in this section. The applicable rates and schedule of payment are set out in Exhibit “C”, entitled “COMPENSATION”, and/or the applicable Task Order issued by City for the Services both of which are, or will be attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services are not contemplated as part of this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 3 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 performed 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 represents that it, its employees and subconsultants, 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 manner 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 is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. 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 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 DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 4 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. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any 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 Doug Boccignone as the Project Supervisor to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT 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. CITY’s project manager is Monica Padilla, Senior Resource Planner, Utilities Department, Resource Management Division, 250 Hamilton Avenue Palo Alto, CA 94303, Telephone: (650) 329-2592. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Consultant will retain sole and exclusive ownership of all right, title and interest in its work papers, proprietary information, processes, methodologies, know-how and software and any patent, copyright, trademark, trade secret and other intellectual property rights which existed prior to the delivery of Consultant’s services (“Consultant Property”). To the extent that any work product delivered to the City contains Consultant Property, Consultant grants the City a non-exclusive, non-assignable, royalty-free license to use such work product, including in preparation for or during public meetings, in connection with the subject of the engagement or related topics. This Section 14 shall survive termination of the Agreement. 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 DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 5 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 (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”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of 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 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 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 "D". 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 DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 6 insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 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 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 or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. 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 studies, sketches, drawings, computations, and other data, 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. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, 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. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 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. DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 7 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. 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, CONSULTANT 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. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 8 reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CCONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. 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 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 9 26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any contract for public works construction, alteration, demolition, repair or maintenance. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. 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. 27.3. 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. 27.4. 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. 27.5. 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. 27.6. 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. 27.7. 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. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 10 security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 All unchecked boxes do not apply to this agreement. 27.11 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. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 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 or designee APPROVED AS TO FORM: City Attorney or designee FLYNN RESOURCE CONSULTANTS INC. By: Name: Barry R. Flynn Title: President By: Name: Douglas A. Boccignone Title: Chief Financial Officer Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” FORM OF PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 11 EXHIBIT “A” SCOPE OF SERVICES The Consultant may be asked to perform Services on an on-call basis, using the form included as Exhibit “A-1”, in one or more of the following areas: 1)Electric Technical Support - Provide City with technical support related to electric planning issues including: a) Analysis of energy efficiency programs and potential; b)Assessment of local solar economic and market potential; c)Evaluation of supply resource alternatives; d)Assessment of energy storage potential; and e)Development of supply cost modeling and uncertainties. 2)Electric Utility Management - Assist City in the development and/or implementation of policies, plans and strategies related to: a)Implementation of electrification initiatives in Palo Alto; b) Development of long-term energy plans, integrated resource plans; c)Development of local generation, energy efficiency, demand resources and distributed energy resource plans and strategies; and d)Development of local solar initiatives such as a community solar program or a program to facilitate solar adoption on non-profits; e)Evaluation of carbon neutral resource opportunities including evaluation of large hydroelectric resources; f)Greenhouse gas regulations including cap and trade and other environmental initiatives; g)Assessment of CFTC and Dodd-Frank Act implications; h) Development of alternatives for scheduling and settling resources into the CAISO; and i)Evaluation of involvement in Joint Powers Authority opportunities for investment in generation and transmission of electricity and delivery services. 3)Congestion Management, Legislative and Regulatory Services: a)Monitor and analyze ISO, CPUC, CEC, FERC, PG&E (Grid Planning), and other related agencies activities, and, based on discussion with Staff, represent the City’s interests in proceedings. b) Assess congestion cost related to existing and potential resources and recommend strategies to manage congestion cost c)Monitor, analyze and, represent the City’s interest in the activities of the CAISO, CPUC, CEC, FERC, PG&E (Grid Planning) and other agencies as related to CAISO tariff amendments, grid management charges, congestion charges, transmission access charges, neutrality and other charges and protect the City’s interests. d) Recommend regulatory strategies for the City and positions in proceedings before the FERC, CEC, CPUC, CAISO and other agencies as appropriate. e)Monitor the developing California electricity market design and energy markets, and State and Federal involvement in the electricity industry as they relate to serving DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 12 electric load in the San Francisco Greater Bay Area (Bay Area). f)Identify the Bay Area specific risks for the City from locational marginal pricing, local capacity requirements, transmission constraints, and State imposed measures for deliverability, outage coordination, maintenance standards and the use of muni– owned transmission lines and local generation g)Establish regulatory and legislative objectives, goals and priorities h)Maintain an ongoing presence at the ISO to represent the City’s interest effectively. 4)Transmission and Congestion Management - Assist City with analysis, improvement and expansion of transmission, generation, congestion and reliability issues. a)Identifying, developing and promoting cost-effective and long-term solutions for reliability and economic transmission needs, transmission for renewable resources, local generation, and non-wires solutions; b) Upgrade City’s transmission interconnection to the grid; c)Recommend economic transmission expansion or other alternatives for the Bay Area; d) Perform power flow, short circuit and feasibility studies for electric transmission, substation and generation conceptual plans as directed by City staff; e)Provide technical support to the City in coordination with PG&E, CAISO, the Western Area Power Administration, or other agencies as required concerning these plans; f)Identify and recommend strategies for managing congestion risk associated with the City’s various long-term renewable resources; g)Assess transmission value and opportunities in California and recommend strategies related to the City’s ownership in the California Oregon Transmission Project; and h) Maintain routine and sufficient access to key policymakers and staff at the CAISO to facilitate, upon City authorization, effective and efficient representation of the City’s viewpoints and concerns on Bay Area transmission and system operation issues. 5)Other: Consultant may assist the City in meeting: a)Requirements for registration and compliance with NERC and WECC grid reliability standards; b) Responding to the rapidly developing energy industry in California; and c)Coordinating efforts with other municipal utilities, including the Bay Area Municipal Transmission Group (BAMx), NCPA and TANC on various issues such as described above. DELIVERABLES Consultant’s deliverables will be determined on a task -by -task basis, as specified on a form substantially in the form of Exhibit “A-1”. Deliverables may include one-time written reports, periodic written reports and updates, oral presentations, recommendations and analysis. As specified more clearly on the applicable Task Order (in form of Exhibit “A-1”), all reports and written material must be provided to and approved by Resource Management Division (RM) staff prior to delivery to outside agencies. DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 13 EXHIBIT “A-1” FORM OF PROFESSIONAL SERVICES TASK ORDER PROFESSIONAL SERVICES TASK ORDER (“TASK ORDER”) Consultant hereby agrees: 1.This is a Task Order pursuant to the Professional Services Agreement between the City of Palo Alto and Consultant ___________________________ dated ___________________ (“Agreement”). 2.The Confirmation is subject to the terms and conditions of Agreement, except as expressly provided in this Confirmation. All capitalized terms have the meaning given to them in the Agreement. 3.The City of Palo Alto agrees to pay Consultant for the services as described below and in the not to exceed amounts specified in this Confirmation and in accordance with the provisions of the Agreement. 4.Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement. 5.All exhibits referenced below are incorporated into the Agreement by this reference. 6.The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Confirmation as described below. Task Order Specific Details: A. TASK ORDER NO. ____ of _____. B. PROJECT DESCRIPTION: C. SCOPE OF SERVICES (see attached) MUST INCLUDE: WORK TO BE PERFORMED SCHEDULE OF WORK BASIS FOR PAYMENT & FEE SCHEDULE DELIVERABLES REIMBURSABLES (identified, but included within “not to exceed” amount) D. PERIOD OF PERFORMANCE: ESTIMATED START: ESTIMATED COMPLETION: E. TOTAL TASK ORDER PRICE: NOT TO EXCEED $__________________. BALANCE REMAINING IN AGREEMENT: ________________________. F. ATTACHMENTS: I: Scope of Services II: __________________________________ ----------------------------------------------------------------------------------------------------------------------------------- I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: ______________________ BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 14 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services in accordance with the timelines and deadlines specified in the applicable Task Order from City. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. If specified in the applicable Task Order, CONSULTANT shall provide the City with a detailed schedule of work. DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 15 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in an applicable Task Order. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1, or on a lump sum basis as specified in the applicable Task Order, up to the not to exceed the amount for set forth as a not-to-exceed amount on the applicable Task Order. Additional Services are not authorized under this Agreement. In order to receive compensation, Consultant’s performance must satisfy all requirements set forth in the Agreement, Exhibit “A” and the applicable Task Order. Consultant’s compensation under this Agreement, for all Basic Services and Reimbursable Expenses set forth on an individual Task Order or in the aggregate, are subject to the specific not-to-exceed requirements and limits set forth in section 4 of this Agreement. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: as specified on applicable Task Order. A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $500 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES Additional Services are not authorized under this Agreement. However, the CONSULTANT may provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C- DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 16 1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 17 EXHIBIT “C-1” SCHEDULE OF RATES Rates for Services – FY 2016-17 Labor Category Hourly Rate Principal $300 per hour Managing Consultant $280 per hour Senior Consultant-Power Engineer $270 per hour Senior Consultant $245 per hour Consultant $210 per hour Associate Consultant $190 per hour Analyst $135 per hour Support Services $65 per hour Each year, effective July 1, the applicable hourly rates for each labor category shall increase by 3%, rounded to the nearest $5. For any month in which specialized modeling software is used to perform services under this agreement, the following charges shall apply: Power flow modeling - $270/month Short circuit modeling – $800/month OASIS Data - $1,200/month Market modeling - $4,000/month Each year, effective July 1, the specialized modeling software costs shall increase by 3%, rounded to the nearest $5. Specialized software costs that exceed the above amounts may be billed with the prior written approval of the City. DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 18 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, 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 CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) 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. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II.CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III.ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A.PRIMARY COVERAGE WITH 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 WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 19 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS 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 1.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: 404F683C-526F-42F6-9364-E9B3E1C04FD6 Professional Services Rev. April 27, 2016 1 CITY OF PALO ALTO CONTRACT NO. C17167691 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND PALO ALTO CONSULTING GROUP, INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this 27th day of March, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PA CONSULTING GROUP, INC., a New Jersey corporation, located at 1700 Lincoln Street, Suite 1550, Denver, Colorado 80203 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to participate in wholesale energy (electric and gas) strategic planning, technical, transmission, distributed energy planning in the regulatory and legislative fields (“Project(s)”) and desires to engage a consultant to assist the CITY with specialized knowledge and analysis related to such Projects (“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, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at 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. Optional On-Call Provision Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 2 work up to the maximum compensation amount set forth in Section 4. For purposes of clarity, CONSULTANT shall not be obligated to provide any Services described in a Task Order until it accepts the Task Order in writing. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through March 27, 2020 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 the 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” (“Basic Services”), and Reimbursable Expenses, shall not exceed Nine Hundred and Seventy-Five Thousand Dollars ($975,000) over the Term across a total of five (5) consultant agreements (C17164725 (Flynn), C17167690 (Optony), C17167691 (PA Consulting), C17167692 (Navigant), and C17167693 (NewGen), of which this is one. CONSULTANT agrees to complete all Basic Services, including Reimbursable Expenses, within this amount. The five (5) contracts will be administered by the CITY UTILITIES DEPARTMENT to ensure the total aggregate of compensation for all five (5) contracts does not exceed the amounts set forth in this section. CONSULTANT acknowledges and agrees CITY has entered into five (5) consultant contracts, including this Agreement with CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants will not exceed the amounts set forth in this section. The applicable rates and schedule of payment are set out in Exhibit “C”, entitled “COMPENSATION”, and/or the applicable Task Order issued by CITY for the Services both of which are, or will be attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services are not contemplated as part of this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 3 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 performed 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 represents that it, its employees and subconsultants, 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 manner 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 is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. 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 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 DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 4 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. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any 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 Charles Janecek, Principal Consultant, 1700 Lincoln Street, Suite 1550 | Denver, CO 80203, Telephone (720) 834-9532, as the Project Supervisor to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT 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. CITY’s project manager is Monica Padilla, Senior Resource Planner, Utilities Department, Resource Management Division, 250 Hamilton Avenue, Palo Alto, CA 94301, Telephone (650) 329-2592. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Intellectual Property (“IP”) means all forms of intellectual property, including, without limitation, property in and rights under copyright, patents, conceptual solutions, public performance rights, design rights, designs, database rights, trade names, trademarks, methodologies, ideas, processes, methods, tools and know-how and entitlement to make application for formal (or otherwise enhanced) rights of any such nature. IP and rights to IP owned by either party on the date of the Agreement or created outside the terms of this Agreement as well as all modifications thereto and derivative versions thereof created during the Services ("Background IP”) shall remain the property of that Party. Unless otherwise stated specifically in a Task Order and subject to Consultant’s ownership of its Background IP, upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement (“Foreground IP”) shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that, and all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 5 CITY. If Consultant’s Background IP is included in any Foreground IP, Consultant hereby grants the City an nonexclusive, royalty-free, world-wide right and license to use Consultant’s Background IP as part of the Foreground IP, for the purposes set out in this Agreement, including the Task Order, 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 (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 reasonable attorney 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 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 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 "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 6 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, except for the professional indemnity policy and the workers compensation policy, 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. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 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 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 or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. 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 studies, sketches, drawings, computations, and other data, 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. DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 7 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services, as well as any Reimbursable Expenses incurred, on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, 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. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 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. 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, CONSULTANT certifies that in the performance of this Agreement, it shall not DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 8 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. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CCONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. 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. DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 9 This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. 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. 27.3. 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. 27.4. 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. 27.5. 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. 27.6. 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. 27.7. 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. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 10 CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 All unchecked boxes do not apply to this agreement. 27.11 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. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 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 or designee APPROVED AS TO FORM: City Attorney or designee PA CONSULTING GROUP, INC. By: ___________________________ Name: Matt Mooren Title: Member of PA’s Management Group By: ___________________________ Name: Mark Repsher Title: Member of PA’s Management Group Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” FORM OF PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 11 EXHIBIT “A” SCOPE OF SERVICES The Consultant may be asked to perform Services on an on-call basis, using the form included as Exhibit “A-1”, in one or more of the following areas: ELECTRIC UTILITY 1)Technical Support - Provide City with technical support related to electric planning issues including: a) Analysis of energy efficiency programs and potential; b)Assessment of local solar economic and market potential; c)Evaluation of supply resource alternatives; d)Assessment of energy storage potential; and e)Development of supply cost modeling and uncertainties. f)Evaluation of distribution grid impacts of high penetration of distributed energy resources 2)Utility Management - Assist City in the development and/or implementation of policies, plans and strategies related to: a) Implementation of electrification initiatives in Palo Alto; b) Development of long-term energy plans, integrated resource plans; c)Development of local generation, energy efficiency, demand resources and distributed energy resource plans and strategies; and d)Development of local solar initiatives such as a community solar program or a program to facilitate solar adoption on non-profits; e)Evaluation of carbon neutral resource opportunities including evaluation of large hydroelectric resources; f)Greenhouse gas regulations including cap and trade and other environmental initiatives; g)Assessment of CFTC and Dodd-Frank Act implications; h)Development of alternatives for scheduling and settling resources into the CAISO; and i)Evaluation of involvement in Joint Powers Authority opportunities for investment in generation and transmission of electricity and delivery services. 3)Congestion Management, Legislative and Regulatory Services: a)Monitor and analyze ISO, CPUC, CEC, FERC, PG&E (Grid Planning) regional transmission planning groups and other related agencies activities, and, based on discussion with Staff, represent the City’s interests in proceedings. b)Assess congestion cost related to existing and potential resources and recommend strategies to manage congestion cost c)Monitor, analyze and, represent the City’s interest in the activities of the CAISO, CPUC, CEC, FERC, PG&E (Grid Planning) and other agencies as related to CAISO tariff amendments, grid management charges, congestion charges, transmission access charges, neutrality and other charges and protect the City’s interests. d)Recommend regulatory strategies for the City and positions in proceedings before the FERC, CEC, CPUC, CAISO and other agencies as appropriate. e) Monitor the developing California electricity market design and energy markets, and State and Federal involvement in the electricity industry as they relate to serving electric load in the San Francisco Greater Bay Area (Bay Area). f)Identify the Bay Area specific risks for the City from locational marginal pricing, local DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 12 capacity requirements, transmission constraints, and State imposed measures for deliverability, outage coordination, maintenance standards and the use of muni– owned transmission lines and local generation g) Establish regulatory and legislative objectives, goals and priorities h) Maintain an ongoing presence at the CAISO to represent the City’s interest effectively. 4) Transmission and Congestion Management - Assist City with analysis, improvement and expansion of transmission, generation, congestion and reliability issues. a) Identifying, developing and promoting cost-effective and long-term solutions for reliability and economic transmission needs, transmission for renewable resources, local generation, and non-wires solutions; b) Upgrade City’s transmission interconnection to the grid; c) Recommend economic transmission expansion or other alternatives for the Bay Area; d) Perform power flow, short circuit and feasibility studies for electric transmission, substation and generation conceptual plans as directed by City staff; e) Provide technical support to the City in coordination with PG&E, CAISO, the Western Area Power Administration, or other agencies as required concerning these plans; f) Identify and recommend strategies for managing congestion risk associated with the City’s various long-term renewable resources; g) Assess transmission value and opportunities in California and recommend strategies related to the City’s ownership in the California Oregon Transmission Project; and h) Maintain routine and sufficient access to key policymakers and staff at the CAISO to facilitate, upon City authorization, effective and efficient representation of the City’s viewpoints and concerns on Bay Area transmission and system operation issues. NATURAL GAS UTILITY 1) Technical Support – Assist the City with the following analysis: a) Determine natural gas energy efficiency potential; b) Propose strategies for reducing GHG emissions c) Assessment of electrification and fuel switching opportunities; d) Assessment of electrification potential and cost-effectiveness and physical and financial implications associated with large scale reductions of natural gas usage to the distribution system. 2) Utility Management – Assist the City with municipal utility issues including but not limited to: a) Investigate and report on potential jurisdictional issues b) Identify opportunities for use of Tax Exempt Bonds c) Explore Voluntary Green Tariff Program d) Development or refinement of renewable Natural Gas policies e) Implementation of GHG regulations, including cap and trade and other environmental initiatives. OTHER TASKS 1) Consultant may assist the City in meeting: a) Requirements for registration and compliance with NERC and WECC grid reliability standards; b) Responding to the rapidly developing energy industry in California; and c) Coordinating efforts with other municipal utilities, including the Bay Area Municipal DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 13 Transmission Group (BAMx), NCPA and TANC on various issues such as described above. d) Other tasks related to the Electric or Natural Gas Utility as needed and requested using a Task Order by City. DELIVERABLES Consultant’s deliverables will be determined on a task -by -task basis, as specified on a form substantially in the form of Exhibit “A-1”. Deliverables may include one-time written reports, periodic written reports and updates, oral presentations, recommendations and analysis. As specified more clearly on the applicable Task Order (in form of Exhibit “A-1”), all reports and written material must be provided to and approved by Resource Management Division (RM) staff prior to delivery to outside agencies. DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 14 EXHIBIT “A-1” FORM OF PROFESSIONAL SERVICES TASK ORDER PROFESSIONAL SERVICES TASK ORDER (“TASK ORDER”) CONSULTANT hereby agrees: 1. This is a Task Order pursuant to the Professional Services Agreement between the City of Palo Alto (“CITY”), and PA Consulting (“CONSULTANT”), dated ____________, (“Agreement”). 2. The Confirmation is subject to the terms and conditions of Agreement, except as expressly provided in this Confirmation. All capitalized terms have the meaning given to them in the Agreement. 3. The City of Palo Alto agrees to pay CONSULTANT for services as described below and in the not to exceed amounts specified in this Confirmation, and in accordance with the provisions of the Agreement. 4. CONSULTANT hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement. 5. All exhibits referenced below are incorporated in the Agreement by this reference. 6. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by the confirmation as described below. Task Order Specific Details: A. TASK ORDER NO. ____ OF ____ B. PROJECT DESCRIPTION: C. SCOPE OF SERVICES (See attached) MUST INCLUDE: ▪ WORK TO BE PERFORMED ▪ SCHEDULE OF WORK ▪ BASIS FOR PAYMENT & FEE SCHEDULE ▪ DELIVERABLES ▪ REIMBURSEABLES (identified, but not included within “not to exceed” amount) D. PERIOD OF PERFORMANCE: ESTIMATED START: _________ ESTIMATED COMPLETION: _________ E. TOTAL TASK ORDDER PRICE: NOT TO EXCEED $ ________________ F. ATTACHMENTS: I. Scope of Services II. ____________________________________________ I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO PA CONSULTING GROUP, INC. BY:__________________________________ BY:_________ ___________________________ Name ________________________________ Name __Matt Mooren______________________ Title_________________________________ Title _Member of PA’s Management Group_____ Date _________________________________ Date __March 27, 2017_____________________ DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services in accordance with the timelines and deadlines specified in the applicable Task Order from CITY. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. If specified in the applicable Task Order, CONSULTANT shall provide the CITY with a detailed schedule of work. DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 16 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in an applicable Task Order. Compensation shall be calculated based on the hourly rate schedule attached as Exhibit C-1, or on a lump sum basis as specified in the applicable Task Order, up to the not to exceed amount as set forth on the applicable Task Order. Additional Services are not authorized under the Agreement. In order to receive compensation, CONSULTANT’S performance must satisfy all requirements set forth in the Agreement, Exhibit “A” and the applicable Task Order. CONSULTANT’S compensation under this Agreement, for all Basic Services and Reimbursable Expenses set forth on an individual ask Order or in the aggregate, are subject to the specific “not to exceed” requirements and limits set forth in Section 4 of the Agreement. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are as specified on applicable Task Order. A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any single expense anticipated to be more than $ $500shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES Additional Services are not authorized under this Agreement. However, CONSULTANT may provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 17 expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 18 EXHIBIT “C-1” SCHEDULE OF RATES Firm and Subcontractor’s Title Rates Partner $400 Director $400 Managing Consultant $375 Principal Consultant $325 Consultant $250 Consultant Analyst $210 Analyst $195 Subcontractor $275 DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 19 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, 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 CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. [RESERVED]. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $500,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH 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 WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. April 27, 2016 20 THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS 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 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: CA62D47D-0F24-434C-8EE2-742338CAD0C9 Professional Services Rev. January 31, 2017 1 CITY OF PALO ALTO CONTRACT NO. C17167690 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND OPTONY INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this 27th day of March, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and OPTONY INC., a California corporation, located at 2855 Kifer Road., Suite 201, Santa Clara, CA 95051 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to participate in wholesale energy (electric and gas) strategic planning, technical, transmission, distributed energy planning in the regulatory and legislative fields (“Project(s)”) and desires to engage a consultant to assist the CITY with specialized knowledge and analysis related to such Projects (“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, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at 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. Optional On-Call Provision (This provision only applies if checked and only applies to on- call agreements.) Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 2 forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through March 27, 2020, 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” (“Basic Services”), and Reimbursable Expenses, shall not exceed Nine Hundred and Seventy-Five Thousand Dollars ($975,000) over the Term across a total of five (5) consultant agreements (C17164725 (Flynn), C17167690 (Optony), C17167691 (PA Consulting), C17167692 (Navigant), and C17167693 (NewGen),, of which this is one. CONSULTANT agrees to complete all Basic Services, including Reimbursable Expenses, within this amount. The five (5) contracts will be administered by the CITY UTILITIES DEPARTMENT to ensure the total aggregate of compensation for all five (5) contracts does not exceed the amounts set forth in this section. CONSULTANT acknowledges and agrees CITY has entered into five (5) consultant contracts, including this Agreement with CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants will not exceed the amounts set forth in this section. The applicable rates and schedule of payment are set out in Exhibit “C”, entitled “COMPENSATION”, and/or the applicable Task Order issued by CITY for the Services both of which are, or will be attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services are not contemplated as part of this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 3 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 performed 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 represents that it, its employees and subconsultants, 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 manner 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 is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. 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 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 DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 4 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: Strategic Energy Innovations, San Rafael, CA CONSULTANT shall be responsible for directing the work of any 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 Byron Pakter as the Program Development Manager to have supervisory responsibility for the performance, progress, and execution of the Services and Thomas Yurysta as the Senior Project Manager to represent CONSULTANT 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. CITY’s project manager is Monica Padilla Senior Resource Planner, Utilities Department, Resource Management Division, 250 Hamilton Avenue, Palo Alto, CA 94301, Telephone:(650) 329-2592. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests newly developed under this Agreement 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 work 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 DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 5 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 (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 attorney 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 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 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 "D". 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 DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 6 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. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 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 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 or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. 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 studies, sketches, drawings, computations, and other data, whether or not completed, newly 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. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, 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. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 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. DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 7 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. 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, CONSULTANT 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. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 8 with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CCONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. 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 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 9 maintenance (collectively, ‘improvement’) project of more than $15,000. 26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any contract for public works construction, alteration, demolition, repair or maintenance. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. 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. 27.3. 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. 27.4. 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. 27.5. 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. 27.6. 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. 27.7. 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. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 10 direct marketing purposes without City’s express written consent. 27.10 All unchecked boxes do not apply to this agreement. 27.11 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. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 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 or designee APPROVED AS TO FORM: City Attorney or designee OPTONY INC. By: _____________________________ Name: Jonathan Whelan Title: Director of Operations By: _____________________________ Name: Lili Cheng Title: Director of Administrative Operations Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” FORM OF PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 11 EXHIBIT “A” SCOPE OF SERVICES The Consultant may be asked to perform Services on an on-call basis, using the form included as Exhibit “A-1”, in one or more of the following areas: ELECTRIC UTILITY 1) Technical Support - Provide City with technical support related to electric planning issues including: a) Analysis of energy efficiency programs and potential; b) Assessment of local solar economic and market potential; c) Evaluation of supply resource alternatives; d) Assessment of energy storage potential; and e) Development of supply cost modeling and uncertainties. f) Evaluation of distribution grid impacts of high penetration of distributed energy resources 2) Utility Management - Assist City in the development and/or implementation of policies, plans and strategies related to: a) Implementation of electrification initiatives in Palo Alto; b) Development of long-term energy plans, integrated resource plans; c) Development of local generation, energy efficiency, demand resources and distributed energy resource plans and strategies; and d) Development of local solar initiatives such as a community solar program or a program to facilitate solar adoption on non-profits; e) Evaluation of carbon neutral resource opportunities including evaluation of large hydroelectric resources; f) Greenhouse gas regulations including cap and trade and other environmental initiatives; g) Assessment of CFTC and Dodd-Frank Act implications; h) Development of alternatives for scheduling and settling resources into the CAISO; and i) Evaluation of involvement in Joint Powers Authority opportunities for investment in generation and transmission of electricity and delivery services. 3) Congestion Management, Legislative and Regulatory Services: a) Monitor and analyze ISO, CPUC, CEC, FERC, PG&E (Grid Planning) regional transmission planning groups and other related agencies activities, and, based on discussion with Staff, represent the City’s interests in proceedings. b) Assess congestion cost related to existing and potential resources and recommend strategies to manage congestion cost c) Monitor, analyze and, represent the City’s interest in the activities of the CAISO, CPUC, CEC, FERC, PG&E (Grid Planning) and other agencies as related to CAISO tariff amendments, grid management charges, congestion charges, transmission access charges, neutrality and other charges and protect the City’s interests. d) Recommend regulatory strategies for the City and positions in proceedings before the DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 12 FERC, CEC, CPUC, CAISO and other agencies as appropriate. e) Monitor the developing California electricity market design and energy markets, and State and Federal involvement in the electricity industry as they relate to serving electric load in the San Francisco Greater Bay Area (Bay Area). f) Identify the Bay Area specific risks for the City from locational marginal pricing, local capacity requirements, transmission constraints, and State imposed measures for deliverability, outage coordination, maintenance standards and the use of muni– owned transmission lines and local generation g) Establish regulatory and legislative objectives, goals and priorities h) Maintain an ongoing presence at the CAISO to represent the City’s interest effectively. 4) Transmission and Congestion Management - Assist City with analysis, improvement and expansion of transmission, generation, congestion and reliability issues. a) Identifying, developing and promoting cost-effective and long-term solutions for reliability and economic transmission needs, transmission for renewable resources, local generation, and non-wires solutions; b) Upgrade City’s transmission interconnection to the grid; c) Recommend economic transmission expansion or other alternatives for the Bay Area; d) Perform power flow, short circuit and feasibility studies for electric transmission, substation and generation conceptual plans as directed by City staff; e) Provide technical support to the City in coordination with PG&E, CAISO, the Western Area Power Administration, or other agencies as required concerning these plans; f) Identify and recommend strategies for managing congestion risk associated with the City’s various long-term renewable resources; g) Assess transmission value and opportunities in California and recommend strategies related to the City’s ownership in the California Oregon Transmission Project; and h) Maintain routine and sufficient access to key policymakers and staff at the CAISO to facilitate, upon City authorization, effective and efficient representation of the City’s viewpoints and concerns on Bay Area transmission and system operation issues. NATURAL GAS UTILITY 1) Technical Support – Assist the City with the following analysis: a) Determine natural gas energy efficiency potential; b) Propose strategies for reducing GHG emissions c) Assessment of electrification and fuel switching opportunities; d) Assessment of electrification potential and cost-effectiveness and physical and financial implications associated with large scale reductions of natural gas usage to the distribution system. 2) Utility Management – Assist the City with municipal utility issues including but not limited to: a) Investigate and report on potential jurisdictional issues b) Identify opportunities for use of Tax Exempt Bonds c) Explore Voluntary Green Tariff Program d) Development or refinement of renewable Natural Gas policies DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 13 e) Implementation of GHG regulations, including cap and trade and other environmental initiatives. OTHER TASKS 1) Consultant may assist the City in meeting: a) Requirements for registration and compliance with NERC and WECC grid reliability standards; b) Responding to the rapidly developing energy industry in California; and c) Coordinating efforts with other municipal utilities, including the Bay Area Municipal Transmission Group (BAMx), NCPA and TANC on various issues such as described above. d) Other tasks related to the Electric or Natural Gas Utility as needed and requested using a Task Order by City. DELIVERABLES Consultant’s deliverables will be determined on a task -by -task basis, as specified on a form substantially in the form of Exhibit “A-1”. Deliverables may include one-time written reports, periodic written reports and updates, oral presentations, recommendations and analysis. As specified more clearly on the applicable Task Order (in form of Exhibit “A-1”), all reports and written material must be provided to and approved by Resource Management Division (RM) staff prior to delivery to outside agencies. DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 14 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER (“TASK ORDER”) CONSULTANT hereby agrees: 1. This is a Task Order pursuant to the Professional Services Agreement between the City of Palo Alto (“CITY”), and PA Consulting (“CONSULTANT”), dated ____________, (“Agreement”). 2. The Confirmation is subject to the terms and conditions of Agreement, except as expressly provided in this Confirmation. All capitalized terms have the meaning given to them in the Agreement. 3. The City of Palo Alto agrees to pay CONSULTANT for services as described below and in the not to exceed amounts specified in this Confirmation, and in accordance with the provisions of the Agreement. 4. CONSULTANT hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement. 5. All exhibits referenced below are incorporated in the Agreement by this reference. 6. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by the confirmation as described below. Task Order Specific Details: A. TASK ORDER NO. ____ OF ____ B. PROJECT DESCRIPTION: C. SCOPE OF SERVICES (See attached) MUST INCLUDE: ▪ WORK TO BE PERFORMED ▪ SCHEDULE OF WORK ▪ BASIS FOR PAYMENT & FEE SCHEDULE ▪ DELIVERABLES ▪ REIMBURSEABLES (identified, but not included within “not to exceed” amount) D. PERIOD OF PERFORMANCE: ESTIMATED START: _________ ESTIMATED COMPLETION: _________ E. TOTAL TASK ORDDER PRICE: NOT TO EXCEED $ ________________ F. ATTACHMENTS: I. Scope of Services II. ___________________________________________ I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO OPTONY INC. BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services in accordance with the timelines and deadlines specified in the applicable Task Order from CITY. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. If specified in the applicable Task Order, CONSULTANT shall provide the CITY with a detailed schedule of work DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 16 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in an applicable Task Order. Compensation shall be calculated based on the hourly rate schedule attached as Exhibit C-1, or on a lump sum basis as specified in the applicable Task Order. Additional Services are not authorized under the Agreement. In order to receive compensation, CONSULTANT’S performance must satisfy all requirements set forth in the agreement, Exhibit “A” and the applicable Task Order. CONSULTANT’S compensation under this Agreement, for all Basic Services and Reimbursable Expenses set forth on an individual ask Order or in the aggregate, are subject to the specific “not to exceed” requirements and limits set forth in Section 4 of the Agreement. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are as specified on applicable Task Order. A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any single expense anticipated to be more than $500 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES Additional Services are not authorized under this Agreement. However, CONSULTANT may provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 17 expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement EXHIBIT “C-1” SCHEDULE OF RATES For Time & Materials contracts, hourly rates are shown below by personnel category: Position Hourly Rate* Director of Operations $ 198.00 Program Manager $ 165.00 Senior Project Manager $ 185.00 Project Manager $ 156.00 Associate Project Manager $ 98.00 Administrative $ 75.00 * Hourly rates exclude reimbursable expenses DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 18 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, 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 CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) 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. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH 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 WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 19 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS 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 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: E96AAAFB-31F6-4C40-84DF-89F2E7CE40E8 Professional Services Rev. January 31, 2017 1 CITY OF PALO ALTO CONTRACT NO. C17167693 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND NEWGEN STRATEGIES & SOLUTIONS, LLC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this 27th day of March, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and NEWGEN STRATEGIES AND SOLUTIONS, LLC, a limited liability company, located at 225 Union Boulevard, Suite 305, Lakewood, CO 80228 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to participate in wholesale energy (electric and gas) strategic planning, technical, transmission, distributed energy planning in the regulatory and legislative fields (“Project(s)”) and desires to engage a consultant to assist the CITY with specialized knowledge and analysis related to such Projects (“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, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at 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. Optional On-Call Provision (This provision only applies if checked and only applies to on- call agreements.) Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 2 work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through March 21, 2020 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” (“Basic Services”), and Reimbursable Expenses, shall not exceed Nine Hundred and Seventy-Five Thousand Dollars ($975,000) over the Term across a total of five (5) consultant agreements ( C17164725 (Flynn), C17167690 (Optony), C17167691 (PA Consulting), C17167692 (Navigant), and C17167693 (NewGen) , of which this is one. CONSULTANT agrees to complete all Basic Services, including Reimbursable Expenses, within this amount. The five (5) contracts will be administered by the CITY UTILITIES DEPARTMENT to ensure the total aggregate of compensation for all five (5) contracts does not exceed the amounts set forth in this section. CONSULTANT acknowledges and agrees CITY has entered into five (5) consultant contracts, including this Agreement with CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants will not exceed the amounts set forth in this section. The applicable rates and schedule of payment are set out in Exhibit “C”, entitled “COMPENSATION”, and/or the applicable Task Order issued by CITY for the Services both of which are, or will be attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services are not contemplated as part of this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 3 reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. 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 performed 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 represents that it, its employees and subconsultants, 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 manner 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 is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. 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 CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 4 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: • K.R. Saline and Associates, PLC CONSULTANT shall be responsible for directing the work of any 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 Fred Wellington as the Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and Andy Reger as the Assistant Project Manager to represent CONSULTANT 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. CITY’s project manager is Monica Padilla, Senior Resource Planner, Utilities Department, Resource Management Division, 250 Hamilton Avenue, Palo Alto, CA 94301, Telephone(650) 329-2592. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement 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 work 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. DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 5 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 (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 attorney 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 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 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 "D". 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 DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 6 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. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 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 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 or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. 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 studies, sketches, drawings, computations, and other data, 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. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, 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. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 7 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. 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, CONSULTANT 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. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 8 incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CCONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. 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 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 9 $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. 26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any contract for public works construction, alteration, demolition, repair or maintenance. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. 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. 27.3. 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. 27.4. 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. 27.5. 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. 27.6. 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. 27.7. 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. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 10 27.10 All unchecked boxes do not apply to this agreement. 27.11 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. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 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 or designee APPROVED AS TO FORM: City Attorney or designee NEWGEN STRATEGIES AND SOLUTIONS, LLC By: ___________________________ Name: Title: By: ___________________________ Name: Title: Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” FORM OF PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Joe Mancinelli General Manager Director Tony Georgis Professional Services Rev. January 31, 2017 11 EXHIBIT “A” SCOPE OF SERVICES The Consultant may be asked to perform Services on an on-call basis, using the form included as Exhibit “A-1”, in one or more of the following areas: ELECTRIC UTILITY 1) Technical Support - Provide City with technical support related to electric planning issues including: a) Analysis of energy efficiency programs and potential; b) Assessment of local solar economic and market potential; c) Evaluation of supply resource alternatives; d) Assessment of energy storage potential; and e) Development of supply cost modeling and uncertainties. f) Evaluation of distribution grid impacts of high penetration of distributed energy resources 2) Utility Management - Assist City in the development and/or implementation of policies, plans and strategies related to: a) Implementation of electrification initiatives in Palo Alto; b) Development of long-term energy plans, integrated resource plans; c) Development of local generation, energy efficiency, demand resources and distributed energy resource plans and strategies; and d) Development of local solar initiatives such as a community solar program or a program to facilitate solar adoption on non-profits; e) Evaluation of carbon neutral resource opportunities including evaluation of large hydroelectric resources; f) Greenhouse gas regulations including cap and trade and other environmental initiatives; g) Assessment of CFTC and Dodd-Frank Act implications; h) Development of alternatives for scheduling and settling resources into the CAISO; and i) Evaluation of involvement in Joint Powers Authority opportunities for investment in generation and transmission of electricity and delivery services. 3) Congestion Management, Legislative and Regulatory Services: a) Monitor and analyze ISO, CPUC, CEC, FERC, PG&E (Grid Planning) regional transmission planning groups and other related agencies activities, and, based on discussion with Staff, represent the City’s interests in proceedings. b) Assess congestion cost related to existing and potential resources and recommend strategies to manage congestion cost c) Monitor, analyze and, represent the City’s interest in the activities of the CAISO, CPUC, CEC, FERC, PG&E (Grid Planning) and other agencies as related to CAISO tariff amendments, grid management charges, congestion charges, transmission access charges, neutrality and other charges and protect the City’s interests. DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 12 d) Recommend regulatory strategies for the City and positions in proceedings before the FERC, CEC, CPUC, CAISO and other agencies as appropriate. e) Monitor the developing California electricity market design and energy markets, and State and Federal involvement in the electricity industry as they relate to serving electric load in the San Francisco Greater Bay Area (Bay Area). f) Identify the Bay Area specific risks for the City from locational marginal pricing, local capacity requirements, transmission constraints, and State imposed measures for deliverability, outage coordination, maintenance standards and the use of muni– owned transmission lines and local generation g) Establish regulatory and legislative objectives, goals and priorities h) Maintain an ongoing presence at the CAISO to represent the City’s interest effectively. 4) Transmission and Congestion Management - Assist City with analysis, improvement and expansion of transmission, generation, congestion and reliability issues. a) Identifying, developing and promoting cost-effective and long-term solutions for reliability and economic transmission needs, transmission for renewable resources, local generation, and non-wires solutions; b) Upgrade City’s transmission interconnection to the grid; c) Recommend economic transmission expansion or other alternatives for the Bay Area; d) Perform power flow, short circuit and feasibility studies for electric transmission, substation and generation conceptual plans as directed by City staff; e) Provide technical support to the City in coordination with PG&E, CAISO, the Western Area Power Administration, or other agencies as required concerning these plans; f) Identify and recommend strategies for managing congestion risk associated with the City’s various long-term renewable resources; g) Assess transmission value and opportunities in California and recommend strategies related to the City’s ownership in the California Oregon Transmission Project; and h) Maintain routine and sufficient access to key policymakers and staff at the CAISO to facilitate, upon City authorization, effective and efficient representation of the City’s viewpoints and concerns on Bay Area transmission and system operation issues. NATURAL GAS UTILITY 1) Technical Support – Assist the City with the following analysis: a) Determine natural gas energy efficiency potential; b) Propose strategies for reducing GHG emissions c) Assessment of electrification and fuel switching opportunities; d) Assessment of electrification potential and cost-effectiveness and physical and financial implications associated with large scale reductions of natural gas usage to the distribution system. 2) Utility Management – Assist the City with municipal utility issues including but not limited to: a) Investigate and report on potential jurisdictional issues DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 13 b) Identify opportunities for use of Tax Exempt Bonds c) Explore Voluntary Green Tariff Program d) Development or refinement of renewable Natural Gas policies e) Implementation of GHG regulations, including cap and trade and other environmental initiatives. OTHER TASKS 1) Consultant may assist the City in meeting: a) Requirements for registration and compliance with NERC and WECC grid reliability standards; b) Responding to the rapidly developing energy industry in California; and c) Coordinating efforts with other municipal utilities, including the Bay Area Municipal Transmission Group (BAMx), NCPA and TANC on various issues such as described above. d) Other tasks related to the Electric or Natural Gas Utility as needed and requested using a Task Order by City. DELIVERABLES Consultant’s deliverables will be determined on a task -by -task basis, as specified on a form substantially in the form of Exhibit “A-1”. Deliverables may include one-time written reports, periodic written reports and updates, oral presentations, recommendations and analysis. As specified more clearly on the applicable Task Order (in form of Exhibit “A-1”), all reports and written material must be provided to and approved by Resource Management Division (RM) staff prior to delivery to outside agencies. DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 14 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER (“TASK ORDER”) CONSULTANT hereby agrees: 1. This is a Task Order pursuant to the Professional Services Agreement between the City of Palo Alto (“CITY”), and PA Consulting (“CONSULTANT”), dated ____________, (“Agreement”). 2. The Confirmation is subject to the terms and conditions of Agreement, except as expressly provided in this Confirmation. All capitalized terms have the meaning given to them in the Agreement. 3. The City of Palo Alto agrees to pay CONSULTANT for services as described below and in the not to exceed amounts specified in this Confirmation, and in accordance with the provisions of the Agreement. 4. CONSULTANT hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement. 5. All exhibits referenced below are incorporated in the Agreement by this reference. 6. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by the confirmation as described below. Task Order Specific Details: A. TASK ORDER NO. ____ OF ____ B. PROJECT DESCRIPTION: C. SCOPE OF SERVICES (See attached) MUST INCLUDE: ▪ WORK TO BE PERFORMED ▪ SCHEDULE OF WORK ▪ BASIS FOR PAYMENT & FEE SCHEDULE ▪ DELIVERABLES ▪ REIMBURSEABLES (identified, but not included within “not to exceed” amount) D. PERIOD OF PERFORMANCE: ESTIMATED START: _________ ESTIMATED COMPLETION: _________ E. TOTAL TASK ORDDER PRICE: NOT TO EXCEED $ ________________ F. ATTACHMENTS: I. Scope of Services II. ___________________________________________ I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO NEWGEN STRATEGIES AND SOLUTIONS, LLC BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services in accordance with the timelines and deadlines specified in the applicable Task Order from CITY. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. If specified in the applicable Task Order, CONSULTANT shall provide the CITY with a detailed schedule of work. DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 16 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in an applicable Task Order. Compensation shall be calculated based on the hourly rate schedule attached as Exhibit C-1, or on a lump sum basis as specified in the applicable Task Order, up to the not to exceed amount as set forth on the applicable Task Order. Additional Services are not authorized under the Agreement. In order to receive compensation, CONSULTANT’S performance must satisfy all requirements set forth in the agreement, Exhibit “A” and the applicable Task Order. CONSULTANT’S compensation under this Agreement, for all Basic Services and Reimbursable Expenses set forth on an individual ask Order or in the aggregate, are subject to the specific “not to exceed” requirements and limits set forth in Section 4 of the Agreement. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed areas specified on applicable Task Order. A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $500 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES Additional Services are not authorized under this Agreement. However, CONSULTANT may provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 17 services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement EXHIBIT “C-1” SCHEDULE OF RATES Consultant (NewGen Strategies and Solutions) 2016 Billing Rates Position Billing Rate Director/Executive Consultant/Vice President $210 - $295 Senior Consultant $160 - $210 Staff Consultant $140 - $160 Analyst $120 - $140 Administrative Assistant $85 . Subcontractor (K.R. Saline and Associates, PLC) 2016 Billing Rates Position Billing Rate Senior Professional Engineer $240 Professional Engineer $180 Engineering/GIS Technician $90 Engineering Technician $100 * 3% rate adder applicable annually DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 18 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, 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 CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) 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. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH 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 WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Professional Services Rev. January 31, 2017 19 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS 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 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: 0F83992F-FD38-46A4-84C2-E2795466DA96 Certificate Of Completion Envelope Id: 0F83992FFD3846A484C2E2795466DA96 Status: Completed Subject: Please DocuSign: 20170308 NewGen CSA (FINAL).pdf Source Envelope: Document Pages: 19 Signatures: 2 Envelope Originator: Supplemental Document Pages: 0 Initials: 0 Carolynn Bissett Certificate Pages: 2 AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Payments: 0 250 Hamilton Ave Palo Alto , CA 94301 carolynn.bissett@cityofpaloalto.org IP Address: 12.220.157.20 Record Tracking Status: Original 3/9/2017 1:30:19 PM Holder: Carolynn Bissett carolynn.bissett@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp Joe Mancinelli jmancinelli@newgenstrategies.net General Manager Security Level: Email, Account Authentication (None)Using IP Address: 96.90.164.125 Sent: 3/13/2017 10:04:01 AM Resent: 3/14/2017 7:37:23 AM Viewed: 3/13/2017 12:32:27 PM Signed: 3/14/2017 7:50:16 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Tony Georgis tgeorgis@newgenstrategies.net Director Security Level: Email, Account Authentication (None)Using IP Address: 208.180.216.100 Sent: 3/14/2017 7:50:16 AM Resent: 3/14/2017 10:10:34 AM Viewed: 3/14/2017 12:57:16 PM Signed: 3/14/2017 12:59:16 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Monica Padilla monica.padilla@cityofpaloalto.org Security Level: Email, Account Authentication (None) Sent: 3/14/2017 12:59:17 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Notary Events Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 3/14/2017 12:59:17 PM Certified Delivered Security Checked 3/14/2017 12:59:17 PM Signing Complete Security Checked 3/14/2017 12:59:17 PM Completed Security Checked 3/14/2017 12:59:17 PM Payment Events Status Timestamps City of Palo Alto (ID # 7840) City Council Staff Report Report Type: Consent Calendar Meeting Date: 3/27/2017 City of Palo Alto Page 1 Summary Title: Adoption of MOA for FCA Title: Adoption of a new Memorandum of Agreement With the Palo Alto Fire Chiefs' Association and a Resolution to Amend Salary Schedule for Managers and Professional Personnel From: City Manager Lead Department: Human Resources Recommended Motion Staff recommends that Council approve and adopt new Memorandum of Agreement (Attachment B) and Salary Schedule (Attachment C) for Palo Alto Fire Chiefs’ Association. Staff further recommends that the Council approve and adopt the attached amendment to the Management and Professional group’s salary schedule (Attachment D). Overview As a local public agency, the City of Palo Alto is required under California State law to meet and confer in good faith with its recognized labor organizations in an effort to reach agreements regarding wages, hours and other terms and conditions of employment1. The City’s negotiating teams comprised of outside counsel, Human Resources staff and City management representatives, met with labor representatives for many months of meetings until tentative agreements were reached. A summary of the agreement and a copy of the proposed Memorandum of Agreement (MOA) is attached for the Palo Alto Fire Chiefs’ Association. Background The Fire Chiefs’ Association (FCA) contract expired in 06/30/2014. Ideally, an objective of the bargaining process is for the parties to reach agreement prior to the expiration of the MOA, to 1 The Meyers-Milias Brown Act (MMBA), adopted in 1968 as Government Code 3500, establishes the legal framework under which the public agency and labor organizations are required to meet and confer in good faith. City of Palo Alto Page 2 avoid a lapse in coverage of the contract. However as the International Association of Firefighters Union Local 1319 (IAFF) bargaining process extended over 22 months, negotiating with the FCA was put on hold until a successor MOA was in place. As IAFF’s MOA ratified in April 2016, the City started the bargaining process with the FCA in May of 2016. Due to gaps in market position and the cost of bringing salaries to market levels, the discussions regarding the comparable market salaries and timing of adjustments were extensive and required compromise from both the City and FCA. Objectives in the bargaining process included a need to contain rising health and pension costs, while balancing the need to provide a competitive wage and benefits package for recruitment and retention. Cost containment was reached in the bargaining process through a multi-pronged approach, including: Further Pension Cost-Sharing: FCA employees accepted a greater share of pension costs. Capped Medical Costs: The City FCA group agreed to a fixed cap on medical premiums with the goal of sharing future increases, rather than continuing to split the premiums according to a percent of cost. Given the escalation of medical premiums in recent years, this was viewed as a significant cost-containment objective for the City. Operational Improvements: In addition to the economic proposals, a number of operational issues, such as a new shift schedule for FCA, staffing, and assignments were addressed in the bargaining process and included in the agreement. Discussion In accordance with FCA’s bylaws, the tentative agreements have been ratified by the represented employees. A copy of the MOA (including tracked red-line changes is attached. The following is a high-level summary of the significant economic changes in the agreements: Pension Contributions: In addition to the bargained employee contributions currently contributed by the employees in the FCA group, this contract increases the employee contributions by 6.9%. This increase aligns employee contributions with the CalPERS employee’s mandatory share as well as an additional 3% to the current employer’s share for a total contribution rate of 12% over the term of the agreement. This is consistent with the increased contributions agreed to by all other safety bargaining groups. “General Salary Adjustments” are applied across-the-board and the agreed-upon percentages are based upon the Consumer Price Index (CPI) and other factors that reflect inflation and regional increases in the cost of living. A “Classification transfer” was agreed upon to move the non-Sworn Emergency Medical Services Director out from the Palo Alto Fire Chiefs’ Association and more appropriately placed into the Management and Professional Employees Group. City of Palo Alto Page 3 “Market adjustments” are based on salary surveys in comparable agencies. The City’s goal was to set compensation at the median of the comparable market. A pilot shift schedule change to the 48/96 work schedule was negotiated to mirror the terms of the IAFF agreement, necessary for these Fire Managers to supervise Fire operations. Additional pay will be provided to the Battalion Chief only as determined by the Fire Chief or designee as operationally necessary for shift work performed on a day that they are not regularly scheduled to work for a duration of 8 hours or more at straight time. This additional compensation will not be pensionable. Effective Dates: The tentative agreements for all FCA negotiated terms are the pay period following Council’s approval to adopt the new MOA. Summary of Salary Adjustments Included in the Agreements Palo Alto Fire Chiefs’ Association (FCA Term: July 1, 2014 through June 30, 2018 (4 years) a)General Salary Adjustments: 6.22% effective 04/16/2017, 6.28% upon adoption of the agreement; 3% effective the pay period including July 1, 2017; b)Market Adjustments: Up to 2.5% January 1, 2018 if behind median of the comparable market Summary of Medical Benefit Changes In the new agreements FCA has agreed to move from 90/10% share of the medical premiums to a fixed cap on the City’s health contributions beginning the first pay period following MOA adoption. A one-time irrevocable opt-in to a retiree health plan offered under State Code 22893 as offered to all City employee groups. This opt-in provides an alternative method of calculating a retiree’s health contribution, as defined by State Code. Resource Impact The Fiscal Year 2017 Adopted Budget presumed suffecient budgetary levels for the terms of this agreement. The terms of this agreement will be factored into the development of the Fiscal Year 2018 annual budget and subsequent budget processes as appropriate. Out of County Strike Team costs will continue to be addressed separately through either year-end adjustments or mid-year adjustments, based on actual activity levels. Policy Implications City of Palo Alto Page 4 The proposed MOA is consistent with and will further many of the goals identified by the City Council in the City’s Labor Guiding Principles. Environmental Review (If Applicable) Not Applicable Attachments: Attachment A - FCA MOA (Redlined) Attachment B - Ratified FCA MOA Attachment C - FCA Salary Schedule Attachment D - M&P Updated Salary Schedule 1 MEMORANDUM OF AGREEMENT CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION March 5, 2012 through June 30, 2014 Upon adoption through June 30, 2018 PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief 56-hour workweek, and Battalion Chief 40-hour workweek and Emergency Medical Services Chief, and Emergency Medical Services Coordinator who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, handicap, disability, sex, national origin, sexual orientation, political or religious affiliation or any other basis recognized by federal, state or local law under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or nonmembership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Association membership dues and other mutually agreed upon payroll deductions from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the Association and the City. The City shall remit the deducted dues to the Association as soon as possible after deduction. All Union members on payroll deduction for payment of Union dues as of 5:00 p.m. on the tenth day following signing of this Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Agreement, or so long as they remain members of the representation unit. Union members who establish dues payroll deduction during the term of the Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Agreement, or so long as they remain Attachment A - FCA MOA (Redlined) 2 members of the representation unit. Union members on dues payroll deduction may declare their intention to terminate such payroll deduction following expiration of this Memorandum of Agreement during the thirty-day period between sixty and ninety days prior to expiration of the Memorandum of Agreement. Section 2. Agency Shop. Pursuant to legislation enacted by SB 739 and amendment to the Meyers-Milias- Brown Act, the City and the Union agree to abide by the following provisions as they relate to an agency shop and an agency shop election. a) Agency Shop as defined under Meyers-Milias Brown means “an arrangement that requires an employee, as a condition of continued employment, either to join the recognized employee organization, or to pay the organization a service fee in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization.” The City and the Union agree that an agency shop arrangement between the City and the Union shall be placed in effect upon ratification of this agreement. b) Any employee who is a member of a bona fide religion, body, or sect that has historically held conscientious objections to joining or financially supporting public employee organizations shall not be required to join or financially support any public employee organization as a condition of employment. The employee may be required, in lieu of periodic dues, initiation fees, or agency fees, to pay sums equal to the dues, initiation fees, or agency fees to a nonreligious, no labor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, chosen by the employee from a list of at least three organizations, or if the memorandum of understanding between the City and the Union fails to designate the funds, then to any such fund chosen by the employee. Proof of the payments shall be made on a monthly basis to the City as a condition of continued exemption from the requirement of financial support to the Union. c)Covered employees shall execute written authorization for either Union dues deductions, the agency fee, or, if eligible, the charitable contribution. In the absence of a written authorization the City shall deduct the agency fee from the employee’s paycheck. d) If implemented, an agency shop provision may be rescinded by a majority vote of all the employees in the unit covered by the Memorandum of Understanding pursuant to the Meyers-Milias-Brown Act. e)The Union shall keep an adequate itemized record of its financial transactions and shall make available annually, to the City and to the employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report thereof in the form of a balance sheet and an opening statement, certified as to accuracy by its president and treasurer or corresponding principal officer, or a certified public accountant. f)The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to the City’s compliance with the agency shop obligation. The Union shall comply with all statutory and legal requirements with respect to Agency Shop. 3 ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. a) For the duration of this Agreement, the control points and range minimums for classifications covered by the bargaining unit will remain unchanged. a. The base wage rates of the bargaining unit classifications will be set forth in Appendix XX of this MOA. b) Effective retroactive to and including January 1, 2011, for payments that would have otherwise been paid in calendar year 2011 the City’s Variable Management Compensation policy shall cease to apply to members of the bargaining unit. b.Per parties agreement a 6.22% general salary increase was applied to the salary ranges of all Safety classifications effective June 25, 2016. c) The Parties acknowledge that the City is considering reorganization, redistribution, or augmentation (or a combination thereof) of functions currently performed by the incumbent in the Emergency Medical Services Coordinator classification. The Parties further anticipate that the City’s decisions with respect to that subject will most likely occur by no later than June 30, 2012. At the conclusion of that study, if the duties are restructured in a manner that substantially alters the existing Emergency Medical Services Coordinator, by revision of the existing classification description or the creation of a new classification(s), the City will notify the Union in writing of any changes in the above-described structure of duties (and classification, if applicable) and of the tentative salary range minimum and control point in light of the change(s). Within ten(10) days after receipt of the notice by the Union, City and Union will commence the meet and confer process over the salary range minimum and control point that will apply. c.Effective the first full pay period following City Council approval of this successor MOA, the EMS director classification shall be moved to the Management Group and initial salary placement shall be at $148,990.00. The EMS director shall no longer be a classification in this unit nor entitled to any increases provided in this MOA. All other compensation and 4 benefits including contributions towards pension shall be consistent with the management compensation plan related to miscellaneous classifications. d.Effective the first full pay period following City Council approval of this successor MOA all Safety only members in safety classification in this unit shall pay the remaining 3.9% of the Employee share of Pension Retirement for a total of 9.0%. e.Effective the first full pay period following City Council approval of this successor MOA, a 6.28% general salary increase increase for safety classifications increase will be applied to the salary ranges for all classifications in this unit. f.As soon as administratively possible, a market adjustment of 3.0% for all classifications in this unit will be conferred contingent upon all unit members agreeing to pay an additional 3.0% of the Employer’s share of CalPERs Pension Retirement through a 20516 CalPERs Contract Amendment. g. Total Compensation Market Study. The City will conduct a total compensation survey by November 2017 using the criteria listed below (Total Compensation and Survey Database). Data shall include the contributions in effect up until the November 2017 period. If the City’s survey shows that the Fire Fighter Battalion Chief benchmark based on the median is under the market median, the City shall confer a market adjustment to place the benchmark to the median of market, up to a cap of two and a half percent (2.5%), effective the last pay period in December 2017. Total Compensation and Survey Database Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. h.Total Compensation and Survey Database: Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid 5 benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. Section 2. Compression between Captain and Battalion Chief. During the term of this agreement a 16% differential will be maintained between E-step Captain and Battalion Chief 56-hour workweek control point. Section 3. EMT Differential. Employees in represented classifications who maintain EMT certification will receive a three percent (3%) differential in addition to their base salary. The former EMT differential of 3.0% was rolled into base pay. This one time conversion to base pay, shall constitute the City’s incentive payment for EMT skills. This conversion was cost neutral to the City. Section 4. 40-hour Work Week Assignment Differential. Employees assigned to a 40-hour workweek schedule will be paid a differential of five percent (5%) of base salary in-lieu of holiday pay differential which 56-hour shift Battalion Chiefs receive. Section 5. Out of County Strike Team Pay. The City will pay an employee sent on out of County strike team duty a flat dollar wage payment beyond the employee’s normal salary for twenty-four (24) hour shift of such duty per non-regular work hours if the City receives reimbursement from the state or federal government for the labor costs incurred by the City for such expenses. Payment for partial shifts on such duty shall be prorated. For 40-hour Battalion Chief, payment for non-regular work hours will be prorated. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner that reflects that percentage of the employee’s straight time hourly rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). For example, if the employee’s straight time hourly rate is fifty dollars ($50) per hour and the State reimburses the City for fifty percent (50%) of its labor costs incurred for such expenses the City will pay the employee twenty-five dollars ($25) per hour or six hundred dollars ($600) for the twenty-four (24) hour shift. If the State reimburses the City for seventy-five percent (75%) of its labor costs, the City will pay the employee nine hundred dollars ($900) for the twenty-four (24) hour shift. If the City is not reimbursed, no payment is due, as stated above. A Battalion Chief sent on out of County strike team duty will receive the following compensation only if the City is reimbursed from the state or federal government for the labor costs incurred by the City. Compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). A Battalion Chief on their regular duty shift deployed on an out of County strike team will be eligible for compensation at their normal hourly rate (1.0 hourly rate), assuming a regular 56 hour schedule. 6 A Battalion Chief on non-regular duty shift days deployed on an out of County strike team will be eligible for compensation at a rate of 1.5 of their normal hourly rate. For 40 hour Battalion Chiefs deployed on an out of County strike team, any out of County strike team compensation will be calculated at a 56 hour Battalion Chief Schedule hourly rate. Payment for out of county strike team duty will be calculated based on the number of twenty-four hour shifts worked and prorated for any partial shifts. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner described above. If the City is not reimbursed, no payment is due to the employee. If the City is reimbursed in part, a prorated payment will be calculated based on the reimbursement rate. As outlined above, compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity. ARTICLE VI – HOLIDAYS Section 1. Named Holidays. The following holidays are recognized as municipal holidays for pay purposes and non-shift employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veteran’s Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24 or December 31 as provided below First Monday in September Second Monday in October Section 2. 56-Hour Work Week Assignments. One hundred forty nine and one half (149.5) hours is the total amount of holiday hours paid annually to an employee divided by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in biweekly amount of 5.75 holiday hours. Holiday hours are prorated and accrued based on hours actually worked. If employees elect to be paid for these holiday hours at any time before the scheduled payoff they must have sufficient hours in their holiday account and must complete the Cash-out Request Form. Accrued holiday balances of shift employees will be automatically paid off in the months of June and December. Section 3. 40-Hour Work Week Assignments. Employees assigned to a 40-hour workweek schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. The Emergency Medical Services Coordinator who works a schedule where a holiday falls on a regular day off, may, with supervisory approval, take another day off within the pay period or the following pay period. 7 ARTICLE VII - VACATION ACCRUAL Section 1. Vacation will be accrued when an employee is in a pay status and will be credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates are by work week assignments as indicated in Section 1 and Section 2 below. Section 2. 56-Hour Workweek Assignments. Employees assigned to a 56-hour workweek schedule (24- hour shift) will accrue vacation at the following rate for continuous service performed in a pay status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be five (5) duty shifts per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be eight (8) duty shifts per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be ten (10) duty shifts per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be eleven (11) duty shifts per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be twelve (12) duty shifts per year. Section 3. 40-Hour Workweek Assignments. Personnel assigned to a 40-hour workweek schedule will accrue vacation at the following rate for continuous service performed in a pay status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be eighty (80) hours per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be one-hundred twenty (120) hours per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be one-hundred sixty (160) hours per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be one-hundred eighty (180) hours vacation leave per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be two- hundred (200) hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT 8 Section 1. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 2. Cash out Option. a) Employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. b)Employee must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation year, employees will make their election for vacation hours to cash out no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. c)The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre-designates on the election form. d)Employees who do not elect a cash-out amount by November of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. e)Employees who elect cash-out amount may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out form upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash- out is not available at the time of cash-out, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of year, Payroll will automatically cash-out the elected amount in a paycheck issued on or after the payroll date including November 1. ARTICLE IX - MANAGEMENT ANNUAL LEAVE Section 1. Forty (40) hour and fifty-six (56) hour workweek employees not eligible for overtime shall be credited at the beginning of each fiscal calendar year with eighty (80) hours of annual leave which may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal calendar year. Unused balances as of the end of the fiscal calendar year will be paid in cash, unless a different option as indicated above is elected by the employee. The Management Annual Leave accrual will be changed to an annual accrual rather than fiscal year. Effective July 1, 2012, employees will be credited with forty (40) hours of management annual leave to be used by December 31, 2012 or automatically will be cashed out. 9 Effective January 1, 2012, and every January 1 thereafter, employees will be credited with eighty (80) hours of management annual leave to be used by December 31st or automatically will be cashed out. ARTICLE X - OTHER PAID LEAVES Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift for 56-hour shift employees with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother-in-law, father-in-law, step-father, step-mother, step- sister, step-brother, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, niece, nephew, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Employees assigned to a 40-hour work week are eligible for leave of absence granted by the Chief with pay for three days in the event of death in the employee’s immediate family which is defined above. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. Section 6. Subpoenas. Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XI - OTHER LEAVE PROVISIONS Section 1. Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physician's verification including diagnosis and medical work restriction. 10 Section 2. Other Unpaid Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM Section 1. The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide FCA employees the opportunity to donate their accrued vacation time to assist fellow members of FCA either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. Section 2. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). 11 Section 3. A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: a)Voluntary b) Irrevocable c)Confidential, unless disclosure is required by law d) In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). e)The employee shall be required to exhaust all other types of leave to request donated leave f)It is understood that employees seeking or receiving leave under this program will apply for long- term disability benefits for which they may be eligible g)Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverage through the City h) If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required i)The maximum donated time a donee may receive is 12 months (if available). j)Applications to donate leave or receive leave under this Program are made to the Human Resources Department k)This is a pilot program and is subject to cancellation by either party k. The tax treatment of donation or receipt of vacation under this section is governed by the IRS and not the City. Section 4. FCA members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). Section 5. The City reserves the right to modify or terminate this program at any time. Section 6. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non-occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. 12 ARTICLE XIII - OVERTIME ADDITIONAL COMPENSATION FOR BATTALION CHIEF CLASSIFICATIONS Section 1. Employees in FLSA exempt positions as determined by the City in accordance with the FLSA, including but not limited to Battalion chiefs, are salaried employees and are not eligible for overtime pay. Non-FLSA exempt personnel shall receive overtime compensation at the rate of one and one-half (1½) times the employee’s regular hourly rate of pay for all hours worked in excess of forty (40) hours in a workweek. All overtime hours must be pre-authorized by the Fire Chief or designee. Section 2. Effective July 1, 2008 a An individual Battalion Chief shall not in any fiscal year be required to work more than four (4) shifts to fill a shift vacancy (arising due to another Battalion Chief’s absence or termination) that would have been compensated with overtime under the overtime provisions in effect prior to July 1, 2008. However, this limitation shall not apply in the event of a major emergency (e.g. earthquake, major conflagration, weather disaster, etc.), nor shall it apply to required attendance of staff meetings, strike team meetings, training, or other such incidental non-shift activities. Section 3. Assignment. The City may, at its discretion, assign and work a Fire Captain as a Battalion Chief to temporarily fill a vacant Battalion Chief position or to backfill behind an incumbent Battalion Chief on leave, or to perform duties that would otherwise involve a call-back of a Battalion Chief. POTENTIAL BATTALION CHIEF EXTRA SHIFT COVERAGE Battalion Chiefs who back fill for an operations shift (or shifts) for a 56-hour work week Battalion Chief in will be provided additional compensation for the extra shift coverage, provided that the extra shift requires working hours beyond regularly scheduled hours. Extra Shift Coverage Eligibility Extra shift coverage pay applies to the level of Battalion Chief only and is not intended as compensation for Battalion Chiefs to backfill a lower classification. A minimum of eight (8) continuous hours of the extra shift coverage must be worked to be eligible for compensation. After the minimum of eight (8) continuous hours is met, the Battalion Chief will be paid for the entire shift worked. Extra Shift Coverage Pay Rate Compensation for the extra shift coverage by a 56-hour or 40-hour Battalion Chief will be paid at the 56-hour straight-time rate of the Battalion Chief performing the back fill. First Rights of Refusal Battalion Chiefs shall be provided first rights of refusal for the extra shift coverage. If no Battalion Chiefs are available to back fill the extra coverage shift, the shift will be assigned to fire personnel at a lower classification in accordance with the standard protocols of the department. 13 Extra Shift Coverage Pay Not PERSable All pay under this extra shift coverage provision will be reported to CALPERS by the City of Palo Alto in a manner that excludes such pay from PERSable income. As such, the extra shift coverage pay is not subject to CALPERS contributions by the employer or employee and is not included as a factor in the employee’s final compensation for pension purposes. Fire Chief Discretion In accordance with management rights provisions, the Fire Chief maintains discretion to approve, modify or disapprove extra shift coverage assignments. FLSA Exempt Status Nothing in the extra shift coverage provision is intended to impact the FLSA-exempt status of Battalion Chiefs. Battalion Chiefs remain FLSA-exempt and are therefore not eligible for overtime pay or compensatory time. ARTICLE XIV - PROFESSIONAL DEVELOPMENT- REIMBURSEMENT Effective July 1, 2012 the terms of this Article XIV are in their entirety null and void, and will have no meaning, function or effect. ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT Section 1. The benefit provided by this Article is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as specified in applicable federal law. b)Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the limits specified in applicable federal law. 1) Dependent care expenses not reimbursed under this section may be eligible for reimbursement under the City Voluntary Dependent Care Assistance Plan FSA program(DCAP). However, the maximum amount reimbursed under DCAP the Voluntary Dependent Care FSA program will be reduced by any amount reimbursed under the Excess Benefit Plan. 14 c) Professional Development Employees may use these funds for professional development purposes on a taxable basis to the extent such expenses (e.g., job-related training and education, seminars, training manuals, etc.) are not paid or reimbursed under any other plan of the City. d) Deferred Compensation. Provides a one-time contribution to the employee’s City-sponsored I.R.C. § 457 Deferred Compensation plan with either ICMA-RE or the Hartford Mass Mutual, subject to the contribution limitations of applicable law. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use –it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part- time or who are in FCA a management or professional pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro-rated upon separation of employment. ARTICLE XV - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order. ARTICLE XVI - BENEFIT PROGRAMS Section 1. Health Plan. Benefits will be provided in accordance with provisions of the California Public Employees Retirement System (CalPERS) PEMHCA Health Plans. If CalPERS changes the plans it offers, the City and the Union will meet and confer over the City continuing to provide an equivalent benefit at an equivalent cost. Effective the pay period following adoption of this MOA [expected to be March 10, 2012] the City and employees in the bargaining unit will share medical premium costs as shown in the tables below, with the City paying ninety percent (90%) of the monthly medical premium for the employee selected PEMCHA optional plan, not to exceed a total of ninety percent (90%) of the monthly premium for the second most expensive plan among the existing array of plans. If an employee selects the most expensive plan, the City will pay up to ninety percent (90%) of the second most expensive plan premium and the employee will pay the difference. Section 1. Health Plan - ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: 15 Eligible Active Employees Number of Parties Covered Monthly Employee Contribution Monthly City Contribution Employee Only 10% of monthly premium for plan selected by employee 90% of monthly premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium Employee Plus One 10% of monthly premium for plan selected by employee 90% of the monthly premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium Employee Plus Two or More 10% of monthly premium for plan selected by employee 90% of monthly premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium Medical Premium Category PEMHCA contribution* Up to a Total Maximum City Contribution Effective January 1, 2016 Up to a Total Maximum City Contribution Effective January 1, 2017 as soon as administratively possible Up to a Total Maximum City Contribution Effective January 1, 2018 Employee only $128.00 90% of monthly premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium $773.00 $804.00 Employee plus one $128.00 90% of monthly premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium $1,544.00 $1,606.00 Employee Family $128.00 90% of monthly premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium $2,008.00 $2,088.00 Formatted Table Formatted: Font: (Default) Arial, 9 pt, Bold,No underline, Strikethrough Formatted: Underline Formatted: Underline Formatted: Underline 16 The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. *PEMHCA minimum changes per statutory determination as of 2016 2017. Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the “Total Maximum City Contribution” columns above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. Active employee domestic partners whose domestic partnership is registered with the State of California will be eligible for medical benefits under this section. Active employee domestic partners whose domestic partnership is not registered with the state but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed ninety percent (90%) of the second highest plan. Evidence of premium payment will be required with request for reimbursement. b. a. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. Section 2. Alternate Medical Benefit. If a regular employee and/or the employee’s dependent(s) are eligible for medical insurance through another employer-sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives his/her right to the City of Palo Alto’s medical insurance coverage for same individuals. Employees electing alternative coverage and no City coverage will receive cash payments of approximately half of Formatted: Underline 17 the “averaged monthly premiums” for their medical insurance coverage. “Averaged monthly premiums” are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums for the employee’s City medical coverage available through CalPERS. The Alternative Medical Benefit Program rates for subsequent years covered by this agreement will be determined when CalPERS formally announces the health plan rates applicable for the year in which they are to apply. The rates for 2012 are as follows: One Party: $284.36 Two Party: $568.71 Family: $739.32 Section 2. Alternate Medical Benefit Program. For calendar year 2016, if a regular employee and/or the employee’s dependent(s) are enrolled in medical insurance through another employer- sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives his/her right to the City of Palo Alto’s medical insurance coverage for same individuals. Employees electing alternative coverage and no City coverage will receive cash payments of approximately half of the “averaged monthly City contribution toward premiums” for their medical insurance coverage. “Averaged monthly premiums” are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums for the employee’s City medical coverage available through the Public Employee Retirement System (PERS). The monthly rates for 2016 are as follows: One party: $340.51 Two party: $681.02 Family: $885.33 Effective with the first pay period including January 1, 2017, if a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any non- City of Palo Alto sponsored or association medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical insurance coverage and receive cash payments in the amount of two hundred and eighty four dollars ($284) for each month City coverage is waived. Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284) per month. To participate in the Formatted: Not Highlight 18 program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in status. Section 3 Section 2. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. Section 3. Dental Benefits a) The City shall pay covered plan charges on behalf of all eligible employees and dependents. DDomestic partners are considered dependents, as defined in this article. Benefits for regular part-time employees will be prorated as follows: Employees who will work less than full time, will receive prorated premium costs for dental benefits in accordance with his/her percentage of a full-time work schedule. Part time employees currently receiving full benefits will not be impacted. b)The City’s Dental Plan provides the following: maximum benefits per calendar year shall be two thousand $2000 for representation unit employees and their dependents; fifty percent (50%) of reasonable charges, two thousand dollar ($2000) lifetime maximum orthodontic benefit Basic Benefits (All other covered services) First Calendar Year of Eligibility 70% UCR* Second Calendar Year of Eligibility 80% UCR* Third Calendar Year of Eligibility 90% UCR* Fourth Calendar Year of Eligibility 100% UCR* *Usual, Customary, and Reasonable **Not included in annual dental maximum If the employee and eligible dependents have used the Plan at least once during the preceding calendar year, the percentage reimbursed by the Plan increases to 80%, 90% or 100% respectively during the second, third and subsequent calendar years of eligibility for basic 19 benefits. If the employee and eligible dependents lose eligibility, basic benefits will be reinstated at 70 percent if you again become eligible for the Plan. Section 4 Section 3 Dental Benefits a. Level of Benefits. The City will maintain the present level of benefits on the City-sponsored dental program. Maximum benefits per calendar year shall be $2,000. b.Premiums. The City shall pay all premium payments or equivalent self-insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XVII Section 3. c.Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. Section 4. Vision Care a) The City shall provide vision care coverage for employee and dependents. Coverage is equivalent to the $20 deductible Vision Services Plan A. b) Dependents will include domestic partners, as defined under Article XVII, Section 1 (active employee domestic partners). Section 5 Section 4. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XVII Section 3 Section 1. Section 5. Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. ARTICLE XVII – RETIREMENT MEDICAL PLAN Section 1. Retiree Medical coverage for Unit Employees Hired Before January 1, 2004. Monthly City- paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees’ Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 the City will pay up to the monthly medical premium for the 2nd most expensive plan among the existing array of plans during the contract term. However, the City contribution for an employee hired before January 1, 2004 who retires on or after May 1, 2012 shall be the same contribution amount it makes for active City employees. Any employee who retires before May 1, 2012 will not be required to pay any premium contribution effective March 20 10, 2012, excluding any required dependent contribution described below. For the 2012 calendar year, the City’s contribution toward dependent coverage is ninety-five percent (95%) of the difference between the applicable “Employee and One Dependent” or “Family” maximum employer contribution for “Employee Only” coverage. This contribution for dependents will increase annual by 5% of the difference between the single party premium and the two-party or family premium, until such time as the premium of the affected dependent(s) is fully covered. For the 2013 calendar year, the City’s contribution toward dependent coverage will be 100%. Section 2. Twenty Year Vesting for Retiree medical Coverage for Unit Employees Hired Afer January 1, 2004. Retiree Medical coverage for Unit employees hired after January 1, 2004 shall be as follows: a. Twenty (20) year vesting in CalPERS system for the full retiree medical benefit specified in the preceding paragraph including a minimum of five (5) years with the City of Palo Alto. b.Eligible employees will receive Fifty (50%) percent of City-paid benefit after ten (10) years; each additional service credit year after ten (10) years will increase employer credit by five percent (5%) until twenty (20) years is reached at which time employee is eligible for one hundred percent (100%) and ninety percent (90%) of the City-paid benefit for dependents. Notwithstanding any other term of this section, the City of Palo Alto’s health premium contribution for eligible post January 1, 2004 hires shall be not be less than the minimum contribution set by PERS under Government Code Section 22893 based on a weighted average of available health plan premiums. Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to FCA employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations Human Resources Ddepartment of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After 21 January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XIII – BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual basice compensation (rounded to the next highest $1,000). ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. ARTICLE XX– LONG TERM DISABILITY INSURANCE In lieu of providing long-term disability insurance program to eligible employees, the City shall add $40.00 per month to the base salary of eligible employees. This $40.00 per month shall not be calculated into the labor market salary comparison. ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. ARTICLE XXII- WORKERS’ COMPENSATION Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status and ability to return to full or restricted work status. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. 22 ARTICLE XXIII- RETIREMENT PENSION PLANS Section 1. Miscellaneous Member Pension Formula. For employees hired before the City adopted the 2% at 60 formula effective July 17, 2010, the City will continue to contract with the California Public Employees’ Retirement System (CalPERS) for the 2.7% at 55 formula for Miscellaneous members with the single highest year final compensation basis for pension calculation as provided by Government Code Section 20042. Future Miscellaneous members hired on or after the date this M.O.A. takes effect will be placed in the second pension tier with the 2% at 60 formula with single highest year final compensation as provided by Government Code Section 20042. The three year final compensation basis for pension calculation, as provided by Government Code section 20037, will apply to Miscellaneous members hired on or after August 1, 2013. Section 2. Safety Member Pension Formula. For Safety members hired before the City adopts the 3%@55 formula as provided below the City will contract with the California Public Employees' Retirement System (CalPERS) to provide the "3% at 50" full formula (Government Code Section 21362.2) with the single highest year final compensation basis for pension calculation as provided by Government Code Section 20042. The City will contract with CalPERS for the 3%@55 formula with the three years final compensation basis for pension calculation as provided by Government Code section 20037 for Safety members hired on or after the date such contract is adopted by the City. The City will enter into the contract with CalPERS for the second pension tier as soon as administratively possible. Section 3. Employee Share of PERS Contribution. Effective May 1, 1984, the City agreed to pay the 7% employee contribution to CalPERS on behalf of Miscellaneous CalPERS Plan members. Effective with the pay period inclusive of 1/6/07, the City contribution was increased to cover the cost of the 2.7% @ 55 retirement formula. The City thereafter paid six percent (6%) and the employee paid two percent (2%) of the 8% CalPERS employee contribution for the 2.7% @ 55 retirement benefit formula. For sworn fire management employees the City has paid the nine percent (9%) of the employee's Safety CalPERS Plan contribution. Effective on the first day of the pay period following adoption of this M.O.A. by the City Council, which is expected to be March 10, 2012, Miscellaneous and Sworn members shall pay the entirety of the applicable CalPERS employee contribution. Depending upon the formula the employee participates in, the amounts are as follows: Miscellaneous with 2.7%@55 is 8%, Miscellaneous with 2%@60 is 7% and 9% for Sworn members. Beginning on the first day of the first pay period that is one year after the employees begin paying their full CalPERS employee retirement contribution the employee contribution will drop to five and one tenth percent (5.10%). The City will pay the remainder of the required PERS employee contribution. Notwithstanding the above provisions of this Section and pursuant to Section 20692, upon filing a notice of retirement by an employee in this unit the City-paid portion of the CalPERS employee contribution will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the final compensation period which is defined as the highest average compensation earnable (salary) during the year immediately preceding retirement or any other designated consecutive year. The employee shall simultaneously assume 23 paying the City-paid portion of the employee CalPERS contribution. However, future hires into this Unit after adoption of the second pension tier will not receive the conversion in the final year. The benefit known as EPMC (Employer Paid Member Contribution), Section 20692, will not be part of the second pension tier. Employee CalPERS contributions shall be made on a tax deferred basis, in accordance with Section 414(h) (2) of the Internal Revenue Code. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations. Section 2 Section 1. Safety PERS Retirement Formula. a. Safety Pension Group A: 3%@50 Safety Retirement: The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at Section 2. 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). b.Safety Pension Group B: 3%@55 Safety Retirement: Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (after referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). c.Safety Pension Group C: 2.7% at Age 57 Safety Retirement: Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. d.Safety PERS Member Contribution. 1.Effective the first full pay period after Union ratification and City Council adoption of this successor MOA, employees in all classifications in Pension Groups A and B described above shall pay an additional 3.9% for a total of 9% towards the PERS member contributions by payroll deduction. 24 2.Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. 3.When employees pay their PERS Member Contribution pursuant to section 2a and 2b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). e.Additional Employee PERS contributions: In addition to the PERS member contribution as required under section 2d 1, 2 and 3 above, all employees in pension groups a, b and c shall contribute the additional following contributions: 1. Consistent with the Salary Provisions stated in Article V Section 1 (f), effective as soon as administrative possible, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 3% towards the Employer share of Pension regardless of pension formula through a CalPERS 20516 contract amendment. Section 5. Status Determination. An employee’s membership in and designation as Safety or Miscellaneous for CalPERS pension plan purposes shall be determined based on applicable California law. ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES Section 1. Station House Fund. The Station House Fund per year per shift employee shall be $48.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with the following non-food house fund items: TV purchase and repair, the San Jose Mercury News, and the San Francisco Chronicle to be selected on an annual basis. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the Station House Fund. Section 3. Per Diem Travel Expenses For City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. 25 Section 4. Parking. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot subject to availability of space at the Civic Center garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXV– RESIDENCY For purposes of emergency response availability, represented employees shall live within 90 miles travel distance of the city limits of Palo Alto. ARTICLE XXVI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Severability. If any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. Section 5. Merit System Rules and Regulations During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XXVII - DURATION This Memorandum of Agreement shall become effective upon signing by the parties hereto, except that those provisions herein that have specific effective dates shall take effect on those dates regardless of signing date, once this Memorandum of Agreement is signed by the parties hereto. This Memorandum of Agreement shall expire June 30, 2014 2018. 26 ARTICLE XXVIII- 4896 PILOT PROGRAM The City of Palo Alto (City) and the International Association of Fire Fighters, Local 1319 (Union) Fire Chiefs’ Association agree to have the City evaluate changing the Palo Alto Fire Department’s work schedule for 56-hour personnel from its current schedule to a “48/96” work schedule with the goal of implementing a pilot schedule change in January 2017 as soon as administratively possible, if the parties are in agreement and required administrative and technology changes can be implemented by this date. Upon ratification of a new Memorandum of Agreement, a Labor Management Committee (LMC), including representatives from the Union, Fire Management, the City Manager’s Office, Human Resources, and the Administrative Services Department, will meet to design and evaluate the possible implementation of a “48/96” work schedule that is FLSA compliant, cost neutral, meets the needs of the City and does not compromise the effectiveness of fire services. The goal will be for the Committee to complete preparation for the evaluation by October 1, 2016 as soon as administratively possible. If a schedule can be designed that is FLSA compliant, cost neutral and does not compromise service to the community, the parties agree to move forward with a pilot work schedule change. The City will begin making required administrative and technology changes in order to implement the pilot “48/96” work schedule by January 1, 2017 as soon as administratively possible. The actual date of implementation will be dependent upon the City’s ability to modify payroll, staff scheduling and any other related systems to support the new schedule. The initial “Pilot Program” is planned to run for the term of the MOA, but may be terminated at any time if is determined to have a negative impact on costs or workforce effectiveness. The Pilot will conclude at the end of the MOA unless the parties mutually agree to extend the Pilot as the standard 56-hour work schedule. 27 Signed this day of __________. FOR THE PALO ALTO FIRE CHIEFS’ FOR THE CITY OF PALO ALTO: ASSOCIATION: By___________________________________ By____________________________________ Ryan Stoddard, Chief SpokespersonPresident James R. Keene, City Manager By___________________________________ By____________________________________ Kevin McNally, Battalion Chief Rumi Portillo, HR Director/ Chief People Officer By___________________________________ By______________________________________ Sunny Johnson Gutter, Firefighter Paramedic Geoffrey Blackshire, Deputy Fire Chief IAFF Secretary Frank Lee, Sr. Management Analyst By___________________________________ By____________________________________ Dennis Wallach, Chief Spokesperson Frank Lee, Sr. Management Analyst Mastagni Law Firm By ______________________________________ Dania Torres- Wong, Chief Spokesperson RSHSenee Sloan Formatted: Underline, Font color: Red Formatted: Underline, Font color: Red Formatted: Underline, Font color: Red Formatted: Underline, Font color: Red Formatted: Font color: Red Formatted: Font color: Red Memorandum of Agreement City of Palo Alto and Palo Alto Fire Chiefs’ Association July 1, 2014 – June 30, 2018 DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB Attachment B - Ratified FCA MOA 1 MEMORANDUM OF AGREEMENT Table of Contents PREAMBLE .............................................................................................................................................. 2 ARTICLE I - RECOGNITION ............................................................................................................... 2 ARTICLE II - NO DISCRIMINATION................................................................................................. 2 ARTICLE III - PAYROLL DEDUCTIONS .......................................................................................... 2 ARTICLE IV - NO STRIKES ................................................................................................................. 4 ARTICLE V - SALARY PROVISIONS ................................................................................................. 4 ARTICLE VI – HOLIDAYS ................................................................................................................... 6 ARTICLE VII - VACATION ACCRUAL ............................................................................................. 6 ARTICLE VIII - VACATION CASH OUT ........................................................................................... 7 ARTICLE IX - MANAGEMENT ANNUAL LEAVE .......................................................................... 8 ARTICLE X - OTHER PAID LEAVES ................................................................................................. 8 ARTICLE XI - OTHER LEAVE PROVISIONS .................................................................................. 9 ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM ..................................... 10 ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS ................... 11 ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT ............................................................. 12 ARTICLE XV - PHYSICAL EXAMS .................................................................................................. 13 ARTICLE XVI - BENEFIT PROGRAMS ........................................................................................... 14 ARTICLE XVII – RETIREMENT MEDICAL PLAN ....................................................................... 15 ARTICLE XIII – BASIC LIFE INSURANCE .................................................................................... 16 ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE ................................................................. 16 ARTICLE XX– LONG TERM DISABILITY INSURANCE ............................................................ 16 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES .. 16 ARTICLE XXII- WORKERS’ COMPENSATION ......................................................................... 17 ARTICLE XXIII- RETIREMENT PENSION PLANS ...................................................................... 17 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES ..................... 18 ARTICLE XXV– RESIDENCY ............................................................................................................ 19 ARTICLE XXVI - FULL UNDERSTANDING ................................................................................... 19 ARTICLE XXVII - DURATION .......................................................................................................... 19 ARTICLE XXVIII- 4896 PILOT PROGRAM .................................................................................... 19 DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 2 CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief 56-hour workweek, and Battalion Chief 40-hour workweek who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation or any other basis recognized by federal, state or local law under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or nonmembership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Association membership dues and other mutually agreed upon payroll deductions from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the Association and the City. The City shall remit the deducted dues to the Association as soon as possible after deduction. All Union members on payroll deduction for payment of Union dues as of 5:00 p.m. on the tenth day following signing of this Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Agreement, or so long as they remain members of the representation unit. Union members who establish dues payroll deduction during the term of the Memorandum of Agreement must DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 3 remain on payroll deduction for the life of the Memorandum of Agreement, or so long as they remain members of the representation unit. Union members on dues payroll deduction may declare their intention to terminate such payroll deduction following expiration of this Memorandum of Agreement during the thirty-day period between sixty and ninety days prior to expiration of the Memorandum of Agreement. Section 2. Agency Shop. Pursuant to legislation enacted by SB 739 and amendment to the Meyers-Milias- Brown Act, the City and the Union agree to abide by the following provisions as they relate to an agency shop and an agency shop election. a) Agency Shop as defined under Meyers-Milias Brown means “an arrangement that requires an employee, as a condition of continued employment, either to join the recognized employee organization, or to pay the organization a service fee in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization.” The City and the Union agree that an agency shop arrangement between the City and the Union shall be placed in effect upon ratification of this agreement. b) Any employee who is a member of a bona fide religion, body, or sect that has historically held conscientious objections to joining or financially supporting public employee organizations shall not be required to join or financially support any public employee organization as a condition of employment. The employee may be required, in lieu of periodic dues, initiation fees, or agency fees, to pay sums equal to the dues, initiation fees, or agency fees to a nonreligious, no labor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, chosen by the employee from a list of at least three organizations, or if the memorandum of understanding between the City and the Union fails to designate the funds, then to any such fund chosen by the employee. Proof of the payments shall be made on a monthly basis to the City as a condition of continued exemption from the requirement of financial support to the Union. c) Covered employees shall execute written authorization for either Union dues deductions, the agency fee, or, if eligible, the charitable contribution. In the absence of a written authorization the City shall deduct the agency fee from the employee’s paycheck. d) If implemented, an agency shop provision may be rescinded by a majority vote of all the employees in the unit covered by the Memorandum of Understanding pursuant to the Meyers-Milias-Brown Act. e) The Union shall keep an adequate itemized record of its financial transactions and shall make available annually, to the City and to the employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report thereof in the form of a balance sheet and an opening statement, certified as to accuracy by its president and treasurer or corresponding principal officer, or a certified public accountant. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 4 f) The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to the City’s compliance with the agency shop obligation. The Union shall comply with all statutory and legal requirements with respect to Agency Shop. ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. a. The base wage rates of the bargaining unit classifications will be set forth in Appendix XX of this MOA. b. Per parties agreement a 6.22% general salary increase was applied to the salary ranges of all Safety classifications effective June 25, 2016. c. Effective the first full pay period following City Council approval of this successor MOA, the EMS director classification shall be moved to the Management Group and initial salary placement shall be at $148,990.00. The EMS director shall no longer be a classification in this unit nor entitled to any increases provided in this MOA. All other compensation and benefits including contributions towards pension shall be consistent with the management compensation plan related to miscellaneous classifications. d. Effective the first full pay period following City Council approval of this successor MOA, a 6.28% general salary increase for safety classifications will be applied to the salary ranges for all classifications in this unit. e. Effective the pay period including July 1, 2017 a market adjustment of 3% salary increase will be applied to the salary ranges for all classifications in this unit. f. Total Compensation Market Study. The City will conduct a total compensation survey by November 2017 using the criteria listed below (Total Compensation and Survey Database). Data shall include the contributions in effect up until the November 2017 period. If the City’s survey shows that the Battalion Chief benchmark based on the median is under the market median, the City shall confer a DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 5 market adjustment to place the benchmark to the median of market, up to a cap of two and a half percent (2.5%), effective the last pay period in December 2017. g.Total Compensation and Survey Database: Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. Section 2. EMT Differential. The former EMT differential of 3.0% was rolled into base pay. This one time conversion to base pay, shall constitute the City’s incentive payment for EMT skills. This conversion was cost neutral to the City. Section 3. 40-hour Work Week Assignment Differential. Employees assigned to a 40-hour workweek schedule will be paid a differential of five percent (5%) of base salary in-lieu of holiday pay differential which 56-hour shift Battalion Chiefs receive. Section 4. Out of County Strike Team Pay. A Battalion Chief sent on out of County strike team duty will receive the following compensation only if the City is reimbursed from the state or federal government for the labor costs incurred by the City. Compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). A Battalion Chief on their regular duty shift deployed on an out of County strike team will be eligible for compensation at their normal hourly rate (1.0 hourly rate), assuming a regular 56 hour schedule. A Battalion Chief on non-regular duty shift days deployed on an out of County strike team will be eligible for compensation at a rate of 1.5 of their normal hourly rate. For 40 hour Battalion Chiefs deployed on an out of County strike team, any out of County strike team compensation will be calculated at a 56 hour Battalion Chief Schedule hourly rate. Payment for out of county strike team duty will be calculated based on the number of twenty-four hour shifts worked and prorated for any partial shifts. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner described above. If the City is not reimbursed, no payment is DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 6 due to the employee. If the City is reimbursed in part, a prorated payment will be calculated based on the reimbursement rate. As outlined above, compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity. ARTICLE VI – HOLIDAYS Section 1. Named Holidays. The following holidays are recognized as municipal holidays for pay purposes and non-shift employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veteran’s Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24 or December 31 as provided below First Monday in September Second Monday in October Section 2. 56-Hour Work Week Assignments. One hundred forty nine and one half (149.5) hours is the total amount of holiday hours paid annually to an employee divided by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in biweekly amount of 5.75 holiday hours. Holiday hours are prorated and accrued based on hours actually worked. If employees elect to be paid for these holiday hours at any time before the scheduled payoff they must have sufficient hours in their holiday account and must complete the Cash-out Request Form. Accrued holiday balances of shift employees will be automatically paid off in the months of June and December. Section 3. 40-Hour Work Week Assignments. Employees assigned to a 40-hour workweek schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. ARTICLE VII - VACATION ACCRUAL Section 1. Vacation will be accrued when an employee is in a pay status and will be credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates are by work week assignments as indicated in Section 1 and Section 2 below. Section 2. 56-Hour Workweek Assignments. Employees assigned to a 56-hour workweek schedule (24- hour shift) will accrue vacation at the following rate for continuous service performed in a pay status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be five (5) duty shifts per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be eight (8) duty shifts per year. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 7 c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be ten (10) duty shifts per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be eleven (11) duty shifts per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be twelve (12) duty shifts per year. Section 3. 40-Hour Workweek Assignments. Personnel assigned to a 40-hour workweek schedule will accrue vacation at the following rate for continuous service performed in a pay status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be eighty (80) hours per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be one-hundred twenty (120) hours per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be one-hundred sixty (160) hours per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be one-hundred eighty (180) hours vacation leave per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be two- hundred (200) hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT Section 1. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 2. Cash out Option. a) Employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. b) Employee must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation year, employees will make their election for vacation hours to cash out no later than November 1, 2012. The election DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 8 will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. c) The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre-designates on the election form. d) Employees who do not elect a cash-out amount by November of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. e) Employees who elect cash-out amount may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out form upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of year, Payroll will automatically cash- out the elected amount in a paycheck issued on or after the payroll date including November 1. ARTICLE IX - MANAGEMENT ANNUAL LEAVE Section 1. Forty (40) hour and fifty-six (56) hour workweek employees not eligible for overtime shall be credited at the beginning of each calendar year with eighty (80) hours of annual leave which may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the calendar year. Unused balances as of the end of the calendar year will be paid in cash, unless a different option as indicated above is elected by the employee. The Management Annual Leave accrual will be changed to an annual accrual rather than fiscal year. Effective July 1, 2012, employees will be credited with forty (40) hours of management annual leave to be used by December 31, 2012 or automatically will be cashed out. Effective January 1, 2012, and every January 1 thereafter, employees will be credited with eighty (80) hours of management annual leave to be used by December 31st or automatically will be cashed out. ARTICLE X - OTHER PAID LEAVES Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 9 Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift for 56-hour shift employees with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother-in-law, father-in-law, step-father, step-mother, step- sister, step-brother, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, niece, nephew, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Employees assigned to a 40-hour work week are eligible for leave of absence granted by the Chief with pay for three days in the event of death in the employee’s immediate family which is defined above. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. Section 6. Subpoenas. Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XI - OTHER LEAVE PROVISIONS Section 1. Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physician's verification including diagnosis and medical work restriction. Section 2. Other Unpaid Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 10 Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM Section 1. The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide FCA employees the opportunity to donate their accrued vacation time to assist fellow members of FCA either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. Section 2. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). Section 3. A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: a) Voluntary b) Irrevocable c) Confidential, unless disclosure is required by law d) In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). e) The employee shall be required to exhaust all other types of leave to request donated leave DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 11 f) It is understood that employees seeking or receiving leave under this program will apply for long- term disability benefits for which they may be eligible g) Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverage through the City h) If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required i) The maximum donated time a donee may receive is 12 months (if available). j) Applications to donate leave or receive leave under this Program are made to the Human Resources Department k) The tax treatment of donation or receipt of vacation under this section is governed by the IRS and not the City. Section 4. FCA members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). Section 5. The City reserves the right to modify or terminate this program at any time. Section 6. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non-occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS POTENTIAL BATTALION CHIEF EXTRA SHIFT COVERAGE Battalion Chiefs who back fill for an operations shift (or shifts) for a 56-hour work week Battalion Chief will be provided additional compensation for the extra shift coverage, provided that the extra shift requires working hours beyond regularly scheduled hours. Extra Shift Coverage Eligibility DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 12 • Extra shift coverage pay applies to the level of Battalion Chief only and is not intended as compensation for Battalion Chiefs to backfill a lower classification. • A minimum of eight (8) continuous hours of the extra shift coverage must be worked to be eligible for compensation. After the minimum of eight (8) continuous hours is met, the Battalion Chief will be paid for the entire shift worked. Extra Shift Coverage Pay Rate • Compensation for the extra shift coverage by a 56-hour or 40-hour Battalion Chief will be paid at the 56-hour straight-time rate of the Battalion Chief performing the back fill. First Rights of Refusal • Battalion Chiefs shall be provided first rights of refusal for the extra shift coverage. If no Battalion Chiefs are available to back fill the extra coverage shift, the shift will be assigned to fire personnel at a lower classification in accordance with the standard protocols of the department. Extra Shift Coverage Pay Not PERSable • All pay under this extra shift coverage provision will be reported to CALPERS by the City of Palo Alto in a manner that excludes such pay from PERSable income. As such, the extra shift coverage pay is not subject to CALPERS contributions by the employer or employee and is not included as a factor in the employee’s final compensation for pension purposes. Fire Chief Discretion • In accordance with management rights provisions, the Fire Chief maintains discretion to approve, modify or disapprove extra shift coverage assignments. FLSA Exempt Status • Nothing in the extra shift coverage provision is intended to impact the FLSA-exempt status of Battalion Chiefs. Battalion Chiefs remain FLSA-exempt and are therefore not eligible for overtime pay or compensatory time. ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT Section 1. The benefit provided by this Article is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as specified in applicable federal law. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 13 b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the limits specified in applicable federal law. 1) Dependent care expenses not reimbursed under this section may be eligible for reimbursement under the City Voluntary Dependent Care FSA program. However, the maximum amount reimbursed under the Voluntary Dependent Care FSA program will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Professional Development Employees may use these funds for professional development purposes on a taxable basis to the extent such expenses (e.g., job-related training and education, seminars, training manuals, etc.) are not paid or reimbursed under any other plan of the City. d) Deferred Compensation. Provides a one-time contribution to the employee’s City-sponsored I.R.C. § 457 Deferred Compensation plan with either ICMA-RE or Mass Mutual, subject to the contribution limitations of applicable law. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use –it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part-time or who are in FCA pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro-rated upon separation of employment. ARTICLE XV - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 14 ARTICLE XVI - BENEFIT PROGRAMS Section 1. Health Plan - ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Medical Premium Category PEMHCA contribution* Up to a Total Maximum City Contribution Effective January 1, 2017 as soon as administratively possible Up to a Total Maximum City Contribution Effective January 1, 2018 Employee only $128.00 $773.00 $804.00 Employee plus one $128.00 $1,544.00 $1,606.00 Employee Family $128.00 $2,008.00 $2,088.00 The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. *PEMHCA minimum changes per statutory determination as of 2017. Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the “Total Maximum City Contribution” columns above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. a.Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 15 eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. Section 2. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. Section 3 Dental Benefits a. Level of Benefits. The City will maintain the present level of benefits on the City-sponsored dental program. Maximum benefits per calendar year shall be $2,000. b. Premiums. The City shall pay all premium payments or equivalent self-insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XVII Section 3. c. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. Section 4. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XVII Section 1. Section 5. Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. ARTICLE XVII – RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to FCA employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 16 inform the Human Resources Department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XIII – BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual base compensation (rounded to the next highest $1,000). ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. ARTICLE XX– LONG TERM DISABILITY INSURANCE In lieu of providing long-term disability insurance program to eligible employees, the City shall add $40.00 per month to the base salary of eligible employees. This $40.00 per month shall not be calculated into the labor market salary comparison. ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 17 ARTICLE XXII- WORKERS’ COMPENSATION Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status and ability to return to full or restricted work status. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXIII- RETIREMENT PENSION PLANS Section 1. Safety PERS Retirement Formula. a. Safety Pension Group A: 3%@50 Safety Retirement: The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at Section 2. 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). b. Safety Pension Group B: 3%@55 Safety Retirement: Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (after referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). c. Safety Pension Group C: 2.7% at Age 57 Safety Retirement: Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. d. Safety PERS Member Contribution. 1. Effective the first full pay period after Union ratification and City Council adoption of this successor MOA, employees in all classifications in Pension Groups A and B described above shall pay an additional 3.9% for a total of 9% towards the PERS member contributions by payroll deduction. 2. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 18 3. When employees pay their PERS Member Contribution pursuant to section 2a and 2b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). e. Additional Employee PERS contributions: In addition to the PERS member contribution as required under section 2d 1, 2 and 3 above, all employees in pension groups a, b and c shall contribute the additional following contributions: 1. Effective as soon as administrative possible but no sooner than July 1, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, shall pay an additional 3% towards the Employer share of Pension regardless of pension formula through a CalPERS 20516 contract amendment. Section 2. Status Determination. An employee’s membership in and designation as Safety for CalPERS pension plan purposes shall be determined based on applicable California law. ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES Section 1. Station House Fund. The Station House Fund per year per shift employee shall be $48.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with the following non-food house fund items: TV purchase and repair, the San Jose Mercury News, and the San Francisco Chronicle to be selected on an annual basis. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the Station House Fund. Section 3. Per Diem Travel Expenses For City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. Section 4. Parking. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot subject to availability of space at the Civic Center garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 19 ARTICLE XXV– RESIDENCY For purposes of emergency response availability, represented employees shall live within 90 miles travel distance of the city limits of Palo Alto. ARTICLE XXVI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Severability. If any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. Section 5. Merit System Rules and Regulations During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XXVII - DURATION This Memorandum of Agreement shall become effective upon signing by the parties hereto, except that those provisions herein that have specific effective dates shall take effect on those dates regardless of signing date, once this Memorandum of Agreement is signed by the parties hereto. This Memorandum of Agreement shall expire June 30, 2018. ARTICLE XXVIII- 4896 PILOT PROGRAM The City of Palo Alto (City) and the Fire Chiefs’ Association agree to have the City evaluate changing the Palo Alto Fire Department’s work schedule for 56-hour personnel from its current schedule to a “48/96” work schedule with the goal of implementing a pilot schedule change as soon as administratively possible, if the parties are in agreement and required administrative and technology changes can be implemented by this date. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 20 Upon ratification of a new Memorandum of Agreement, a Labor Management Committee (LMC), including representatives from the Union, Fire Management, the City Manager’s Office, Human Resources, and the Administrative Services Department, will meet to design and evaluate the possible implementation of a “48/96” work schedule that is FLSA compliant, cost neutral, meets the needs of the City and does not compromise the effectiveness of fire services. The goal will be for the Committee to complete preparation for the evaluation as soon as administratively possible. If a schedule can be designed that is FLSA compliant, cost neutral and does not compromise service to the community, the parties agree to move forward with a pilot work schedule change. The City will begin making required administrative and technology changes in order to implement the pilot “48/96” work schedule as soon as administratively possible. The actual date of implementation will be dependent upon the City’s ability to modify payroll, staff scheduling and any other related systems to support the new schedule. The initial “Pilot Program” is planned to run for the term of the MOA, but may be terminated at any time if is determined to have a negative impact on costs or workforce effectiveness. The Pilot will conclude at the end of the MOA unless the parties mutually agree to extend the Pilot as the standard 56-hour work schedule. DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB 21 Signed this day of __________. FOR THE PALO ALTO FIRE CHIEFS’ FOR THE CITY OF PALO ALTO: ASSOCIATION: By___________________________________ By____________________________________ Ryan Stoddard, President James R. Keene, City Manager By___________________________________ By____________________________________ Kevin McNally, Battalion Chief Rumi Portillo, HR Director/ Chief People Officer By___________________________________ By______________________________________ Kimberly Roderick, EMS Director Geoffrey Blackshire, Deputy Fire Chief By___________________________________ By____________________________________ Dennis Wallach, Chief Spokesperson Frank Lee, Sr. Management Analyst Mastagni Law Firm By ______________________________________ Dania Wong, Chief Spokesperson RSHS DocuSign Envelope ID: 375A95FC-C198-4F59-B046-FED2BCEFE3EB Palo Alto Fire Chiefs' Association Salary Schedule Non-Shift Job Code Classifications Grade Codes Hourly Rate Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour workweek 28 $77.92 $82.82 $14,355 $172,266 015 Battalion Chief EMT 40-hour workweek 28E $80.04 $85.07 $14,745 $176,946 066 Emergency Medical Svc Chief 28 $73.35 $12,715 $152,577 017 Emergency Medical Svc Chief-EMT 28E $75.35 $13,061 $156,730 698 Emergency Medical Services Director 39 $65.87 $11,417 $137,010 2019 Battalion Chief EMT, Training 40-hour workweek 28E $80.04 $85.07 $14,745 $176,946 Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour workweek 28 $53.01 $56.34 $13,672 $164,062 016 Battalion Chief EMT 56-hour workweek 28E $54.46 $57.89 $14,048 $168,576 Non-Shift Job Code Classifications Grade Codes Hourly Rate Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour workweek 28 $82.82 $85.31 $14,787 $177,445 015 Battalion Chief EMT 40-hour workweek 28E $85.07 $87.63 $15,189 $182,270 2019 Battalion Chief EMT, Training 40-hour workweek 28E $85.07 $87.63 $15,189 $182,270 Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour workweek 28 $56.34 $58.04 $14,084 $169,012 016 Battalion Chief EMT 56-hour workweek 28E $57.89 $59.63 $14,470 $173,643 Effective 04/01/2017 (6.28% Increase) Effective 04/01/2017 (6.28% Increase) Effecitve 06/24/2017 (3% Increase) Effecitve 06/24/2017 (3% Increase) Attachment C - FCA Salary Schedule Effective 7/1/2018 (2.5% Increase) Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx. Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate 190 Non-Exempt Accountant 690P $32.89 $41.11 $49.34 $7,125.73 $85,508.80 $33.72 $42.14 $50.57 $34.56 $43.20 $51.84 76 Exempt Administrative Assistant 750P $28.37 $35.46 $42.56 $6,146.40 $73,756.80 $29.08 $36.35 $43.62 $29.81 $37.26 $44.72 115 Exempt Assistant Chief Building Official 405M $46.08 $57.60 $69.12 $9,984.00 $119,808.00 $47.24 $59.04 $70.85 $48.42 $60.52 $72.63 132 Exempt Assistant Chief of Police 100A $75.43 $94.28 $113.14 $16,341.87 $196,102.40 $77.32 $96.64 $115.97 $79.25 $99.06 $118.88 108 Exempt Assistant City Attorney 165A $63.94 $79.92 $95.91 $13,852.80 $166,233.60 $65.54 $81.92 $98.31 $67.18 $83.97 $100.77 109 Exempt Assistant City Clerk 630M $37.21 $46.51 $55.82 $8,061.73 $96,740.80 $38.15 $47.68 $57.22 $39.11 $48.88 $58.66 107 Exempt Assistant City Manager 20E $78.36 $97.94 $117.53 $16,976.27 $203,715.20 $80.32 $100.39 $120.47 $82.32 $102.90 $123.48 2026 Exempt Assistant City Manager / Utilities General Manager 10E $98.47 $123.08 $147.70 $21,333.87 $256,006.40 $100.93 $126.16 $151.40 $103.46 $129.32 $155.19 73 Exempt Assistant Director Administrative Services 120A $64.47 $80.58 $96.70 $13,967.20 $167,606.40 $66.08 $82.60 $99.12 $67.74 $84.67 $101.61 126 Exempt Assistant Director Community Services 150A $61.72 $77.14 $92.57 $13,370.93 $160,451.20 $63.26 $79.07 $94.89 $64.84 $81.05 $97.26 1007 Exempt Assistant Director Human Resources 155A $59.65 $74.56 $89.48 $12,923.73 $155,084.80 $61.15 $76.43 $91.72 $62.68 $78.35 $94.02 2001 Exempt Assistant Director Library Services 160A $59.03 $73.78 $88.54 $12,788.53 $153,462.40 $60.51 $75.63 $90.76 $62.03 $77.53 $93.04 10 Exempt Assistant Director Planning & Community Environment 130A $63.23 $79.03 $94.84 $13,698.53 $164,382.40 $64.81 $81.01 $97.22 $66.44 $83.04 $99.65 143 Exempt Assistant Director Public Works 140A $62.49 $78.11 $93.74 $13,539.07 $162,468.80 $64.06 $80.07 $96.09 $65.67 $82.08 $98.50 168 Exempt Assistant Fleet Manager 585M $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 102 Exempt Assistant Manager WQCP 240D $50.52 $63.14 $75.77 $10,944.27 $131,331.20 $51.78 $64.72 $77.67 $53.08 $66.34 $79.61 30 Exempt Assistant to the City Manager 390M $48.82 $61.02 $73.23 $10,576.80 $126,921.60 $50.04 $62.55 $75.06 $51.30 $64.12 $76.95 118 Exempt Chief Building Official 290M $59.99 $74.98 $89.98 $12,996.53 $155,958.40 $61.49 $76.86 $92.24 $63.04 $78.79 $94.55 2008 Exempt Chief Communications Officer 135A $62.89 $78.61 $94.34 $13,625.73 $163,508.80 $64.47 $80.58 $96.70 $66.08 $82.60 $99.12 112 Exempt Chief Planning Official 220D $53.61 $67.01 $80.42 $11,615.07 $139,380.80 $54.96 $68.69 $82.43 $56.33 $70.41 $84.50 95 Exempt Chief Procurement Officer 235D $50.72 $63.39 $76.07 $10,987.60 $131,851.20 $51.99 $64.98 $77.98 $53.29 $66.61 $79.94 2010 Exempt Chief Sustainability Officer 435M $54.75 $68.43 $82.12 $11,861.20 $142,334.40 $56.12 $70.15 $84.18 $57.53 $71.91 $86.30 82 Exempt Chief Transportation Official 204D $56.40 $70.50 $84.60 $12,220.00 $146,640.00 $57.82 $72.27 $86.73 $59.27 $74.08 $88.90 96 Exempt Claims Investigator 660P $34.56 $43.19 $51.83 $7,486.27 $89,835.20 $35.42 $44.27 $53.13 $36.31 $45.38 $54.46 24 Exempt Communication Specialist 615M $37.43 $46.78 $56.14 $8,108.53 $97,302.40 $38.36 $47.95 $57.54 $39.32 $49.15 $58.98 89 Exempt Contracts Administrator 585P $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 186 Non-Exempt Coordinator Library Circulation 675M $32.95 $41.18 $49.42 $7,137.87 $85,654.40 $33.77 $42.21 $50.66 $34.62 $43.27 $51.93 191 Exempt Deputy Chief/Fire Marshall 125A $63.71 $79.63 $95.56 $13,802.53 $165,630.40 $65.31 $81.63 $97.96 $66.95 $83.68 $100.42 9 Exempt Deputy City Attorney 480P $45.34 $56.67 $68.01 $9,822.80 $117,873.60 $46.48 $58.09 $69.71 $47.64 $59.55 $71.46 71 Exempt Deputy City Clerk 720M $29.80 $37.25 $44.70 $6,456.67 $77,480.00 $30.56 $38.19 $45.83 $31.32 $39.15 $46.98 55 Exempt Deputy City Manager 115A $65.31 $81.63 $97.96 $14,149.20 $169,790.40 $66.95 $83.68 $100.42 $68.63 $85.78 $102.94 195 Exempt Deputy Director Technical Services Division 200D $63.52 $79.39 $95.27 $13,760.93 $165,131.20 $65.11 $81.38 $97.66 $66.74 $83.42 $100.11 20 Exempt Deputy Fire Chief 110A $66.38 $82.97 $99.57 $14,381.47 $172,577.60 $68.04 $85.05 $102.06 $69.75 $87.18 $104.62 81 Exempt Director Administrative Services/Chief Financial Officer 50E $75.11 $93.88 $112.66 $16,272.53 $195,270.40 $76.99 $96.23 $115.48 $78.92 $98.64 $118.37 72 Exempt Director Community Services 45E $75.68 $94.60 $113.52 $16,397.33 $196,768.00 $77.58 $96.97 $116.37 $79.52 $99.40 $119.28 1012 Exempt Director Development Services 145A $66.45 $83.06 $99.68 $14,397.07 $172,764.80 $68.12 $85.14 $102.17 $69.82 $87.27 $104.73 133 Exempt Director Human Resources/Chief People Officer 55E $71.58 $89.47 $107.37 $15,508.13 $186,097.60 $73.37 $91.71 $110.06 $75.21 $94.01 $112.82 128 Exempt Director Information Technology/Chief Information Officer 25E $78.21 $97.76 $117.32 $16,945.07 $203,340.80 $80.17 $100.21 $120.26 $82.18 $102.72 $123.27 131 Exempt Director Libraries 60E $70.84 $88.54 $106.25 $15,346.93 $184,163.20 $72.61 $90.76 $108.92 $74.43 $93.03 $111.64 TBD Exempt Director of Emergency Medical Services 215D $55.58 $69.47 $83.37 $12,041.47 $144,497.60 $56.97 $71.21 $85.46 $58.40 $73.00 $87.60 2005 Exempt Director Office of Emergency Services 215D $55.58 $69.47 $83.37 $12,041.47 $144,497.60 $56.97 $71.21 $85.46 $58.40 $73.00 $87.60 49 Exempt Director Office of Management and Budget 120A $64.47 $80.58 $96.70 $13,967.20 $167,606.40 $66.08 $82.60 $99.12 $67.74 $84.67 $101.61 134 Exempt Director Planning & Community Environment 40E $75.86 $94.82 $113.79 $16,435.47 $197,225.60 $77.76 $97.20 $116.64 $79.71 $99.63 $119.56 135 Exempt Director Public Works/City Engineer 30E $76.84 $96.04 $115.25 $16,646.93 $199,763.20 $78.76 $98.45 $118.14 $80.74 $100.92 $121.11 121 Exempt Director Utilities 10E $98.47 $123.08 $147.70 $21,333.87 $256,006.40 $100.93 $126.16 $151.40 $103.46 $129.32 $155.19 2002 Exempt Division Head Library Services 260D $46.36 $57.95 $69.54 $10,044.67 $120,536.00 $47.52 $59.40 $71.28 $48.72 $60.89 $73.07 172 Exempt Division Manager Open Space, Parks & Golf 245D $49.84 $62.29 $74.75 $10,796.93 $129,563.20 $51.08 $63.85 $76.62 $52.36 $65.45 $78.54 City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 7/1/2016 (2.5% Increase)Effective 7/1/2017 (2.5% Increase) Page 1 Attachment D - M&P Updated Salary Schedule Effective 7/1/2018 (2.5% Increase) Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx. Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Effective 7/1/2016 (2.5% Increase)Effective 7/1/2017 (2.5% Increase) 1005 Exempt Executive Assistant to the City Manager 705M $32.09 $40.11 $48.14 $6,952.40 $83,428.80 $32.90 $41.12 $49.35 $33.72 $42.15 $50.58 139 Exempt Fire Chief 35E $76.41 $95.51 $114.62 $16,555.07 $198,660.80 $78.32 $97.90 $117.48 $80.28 $100.35 $120.42 163 Exempt Hearing Officer 480M $45.34 $56.67 $68.01 $9,822.80 $117,873.60 $46.48 $58.09 $69.71 $47.64 $59.55 $71.46 101 Exempt Human Resources Representative 735P $29.08 $36.34 $43.61 $6,298.93 $75,587.20 $29.80 $37.25 $44.70 $30.56 $38.19 $45.83 90 Exempt Landscape Architect Park Planner 510M $43.16 $53.94 $64.73 $9,349.60 $112,195.20 $44.24 $55.29 $66.35 $45.35 $56.68 $68.02 2015 Exempt Legal Fellow 755P $37.11 $46.38 $55.66 $8,039.20 $96,470.40 $38.04 $47.54 $57.05 $38.99 $48.73 $58.48 171 Exempt Management Analyst 585M $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 79 Exempt Manager Accounting 235D $50.72 $63.39 $76.07 $10,987.60 $131,851.20 $51.99 $64.98 $77.98 $53.29 $66.61 $79.94 2007 Exempt Manager Airport 210D $55.59 $69.48 $83.38 $12,043.20 $144,518.40 $56.98 $71.22 $85.47 $58.41 $73.01 $87.62 2023 Exempt Manager Budget 360M $53.84 $67.29 $80.75 $11,663.60 $139,963.20 $55.19 $68.98 $82.78 $56.57 $70.71 $84.86 38 Exempt Manager Communications 525M $42.11 $52.63 $63.16 $9,122.53 $109,470.40 $43.16 $53.95 $64.74 $44.24 $55.30 $66.36 154 Exempt Manager Community Services 630M $37.21 $46.51 $55.82 $8,061.73 $96,740.80 $38.15 $47.68 $57.22 $39.11 $48.88 $58.66 169 Exempt Manager Community Services Sr Program 585M $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 1013 Exempt Manager Development Center 495M $44.24 $55.29 $66.35 $9,583.60 $115,003.20 $45.35 $56.68 $68.02 $46.48 $58.10 $69.72 63 Exempt Manager Economic Development 220D $53.61 $67.01 $80.42 $11,615.07 $139,380.80 $54.96 $68.69 $82.43 $56.33 $70.41 $84.50 44 Exempt Manager Employee Benefits 450M $45.81 $57.26 $68.72 $9,925.07 $119,100.80 $46.96 $58.70 $70.44 $48.14 $60.17 $72.21 45 Exempt Manager Employee Relations & Training 235D $50.72 $63.39 $76.07 $10,987.60 $131,851.20 $51.99 $64.98 $77.98 $53.29 $66.61 $79.94 93 Exempt Manager Environmental Control Program 419M $46.91 $58.63 $70.36 $10,162.53 $121,950.40 $48.08 $60.10 $72.12 $49.29 $61.61 $73.94 1116 Exempt Manager Facilities 445M $46.50 $58.12 $69.75 $10,074.13 $120,889.60 $47.67 $59.58 $71.50 $48.86 $61.07 $73.29 127 Exempt Manager Fleet 255D $46.97 $58.71 $70.46 $10,176.40 $122,116.80 $48.15 $60.18 $72.22 $49.36 $61.69 $74.03 2018 Exempt Manager Human Services 540M $41.08 $51.35 $61.62 $8,900.67 $106,808.00 $42.12 $52.64 $63.17 $43.17 $53.96 $64.76 32 Exempt Manager Information Technology 230D $51.85 $64.81 $77.78 $11,233.73 $134,804.80 $53.16 $66.44 $79.73 $54.49 $68.11 $81.74 2006 Exempt Manager Information Technology Security 230D $51.85 $64.81 $77.78 $11,233.73 $134,804.80 $53.16 $66.44 $79.73 $54.49 $68.11 $81.74 158 Exempt Manager Laboratory Services 495M $44.24 $55.29 $66.35 $9,583.60 $115,003.20 $45.35 $56.68 $68.02 $46.48 $58.10 $69.72 78 Exempt Manager Library Services 565M $38.61 $48.26 $57.92 $8,365.07 $100,380.80 $39.58 $49.47 $59.37 $40.57 $50.71 $60.86 92 Exempt Manager Maintenance Operations 469M $43.33 $54.16 $65.00 $9,387.73 $112,652.80 $44.42 $55.52 $66.63 $45.53 $56.91 $68.30 26 Exempt Manager Transportation Planning 345M $50.71 $63.38 $76.06 $10,985.87 $131,830.40 $51.98 $64.97 $77.97 $53.28 $66.60 $79.92 51 Exempt Manager Planning 415M $46.96 $58.70 $70.44 $10,174.67 $122,096.00 $48.14 $60.17 $72.21 $49.35 $61.68 $74.02 103 Exempt Manager Real Property 235D $50.72 $63.39 $76.07 $10,987.60 $131,851.20 $51.99 $64.98 $77.98 $53.29 $66.61 $79.94 2011 Exempt Manager Revenue Collections 250D $47.64 $59.55 $71.46 $10,322.00 $123,864.00 $48.84 $61.04 $73.25 $50.06 $62.57 $75.09 160 Exempt Manager Solid Waste 330M $51.30 $64.12 $76.95 $11,114.13 $133,369.60 $52.59 $65.73 $78.88 $53.91 $67.38 $80.86 57 Exempt Manager Treasury, Debt & Investments 235D $50.72 $63.39 $76.07 $10,987.60 $131,851.20 $51.99 $64.98 $77.98 $53.29 $66.61 $79.94 86 Exempt Manager Urban Forestry 436M $45.50 $56.87 $68.25 $9,857.47 $118,289.60 $46.64 $58.30 $69.96 $47.81 $59.76 $71.72 178 Exempt Manager Water Quality Control Plant 205D $57.08 $71.34 $85.61 $12,365.60 $148,387.20 $58.51 $73.13 $87.76 $59.97 $74.96 $89.96 39 Exempt Manager Watershed Protection 330M $51.30 $64.12 $76.95 $11,114.13 $133,369.60 $52.59 $65.73 $78.88 $53.91 $67.38 $80.86 1008 Exempt Office of Emergency Services Coordinator 525M $42.11 $52.63 $63.16 $9,122.53 $109,470.40 $43.16 $53.95 $64.74 $44.24 $55.30 $66.36 2024 Exempt Performance Auditor I 750P $28.37 $35.46 $42.56 $6,146.40 $73,756.80 $29.08 $36.35 $43.62 $29.81 $37.26 $44.72 100 Exempt Performance Auditor II 585M $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 148 Exempt Police Chief 15E $84.96 $106.19 $127.43 $18,406.27 $220,875.20 $87.08 $108.85 $130.62 $89.27 $111.58 $133.90 2021 Exempt Principal Attorney 101A $77.36 $96.70 $116.04 $16,761.33 $201,136.00 $79.30 $99.12 $118.95 $81.28 $101.60 $121.92 2016 Exempt Principal Business Analyst 310M $54.06 $67.57 $81.09 $11,712.13 $140,545.60 $55.41 $69.26 $83.12 $56.80 $71.00 $85.20 2003 Exempt Principal Management Analyst 360M $53.84 $67.29 $80.75 $11,663.60 $139,963.20 $55.19 $68.98 $82.78 $56.57 $70.71 $84.86 2009 Exempt Project Manager 570M $39.36 $49.20 $59.04 $8,528.00 $102,336.00 $40.35 $50.43 $60.52 $41.36 $51.70 $62.04 2012 Exempt Public Safety Communications Manager 495M $44.24 $55.29 $66.35 $9,583.60 $115,003.20 $45.35 $56.68 $68.02 $46.48 $58.10 $69.72 166 Exempt Public Safety Program Manager 585M $39.11 $48.88 $58.66 $8,472.53 $101,670.40 $40.09 $50.11 $60.14 $41.10 $51.37 $61.65 117 Exempt Senior Accountant 555M $40.08 $50.10 $60.12 $8,684.00 $104,208.00 $41.09 $51.36 $61.64 $42.12 $52.65 $63.18 152 Exempt Senior Assistant City Attorney 105A $70.33 $87.91 $105.50 $15,237.73 $182,852.80 $72.09 $90.11 $108.14 $73.90 $92.37 $110.85 2013 Exempt Senior Business Analyst - M 420M $47.01 $58.76 $70.52 $10,185.07 $122,220.80 $48.19 $60.23 $72.28 $49.40 $61.74 $74.09 11 Exempt Senior Deputy City Attorney 375M $50.04 $62.55 $75.06 $10,842.00 $130,104.00 $51.30 $64.12 $76.95 $52.59 $65.73 $78.88 187 Exempt Senior Engineer 300M $53.90 $67.37 $80.85 $11,677.47 $140,129.60 $55.25 $69.06 $82.88 $56.64 $70.79 $84.95 Page 2 Effective 7/1/2018 (2.5% Increase) Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx. Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Effective 7/1/2016 (2.5% Increase)Effective 7/1/2017 (2.5% Increase) 106 Exempt Senior Executive Assistant 450M $45.81 $57.26 $68.72 $9,925.07 $119,100.80 $46.96 $58.70 $70.44 $48.14 $60.17 $72.21 157 Exempt Senior Human Resources Administrator 545M $39.93 $49.91 $59.90 $8,651.07 $103,812.80 $40.93 $51.16 $61.40 $41.96 $52.44 $62.93 14 Exempt Senior Management Analyst 465M $45.77 $57.21 $68.66 $9,916.40 $118,996.80 $46.92 $58.65 $70.38 $48.10 $60.12 $72.15 130 Exempt Senior Performance Auditor 510M $43.16 $53.94 $64.73 $9,349.60 $112,195.20 $44.24 $55.29 $66.35 $45.35 $56.68 $68.02 53 Exempt Senior Project Manager 300M $53.90 $67.37 $80.85 $11,677.47 $140,129.60 $55.25 $69.06 $82.88 $56.64 $70.79 $84.95 33 Exempt Senior Technologist 420M $47.01 $58.76 $70.52 $10,185.07 $122,220.80 $48.19 $60.23 $72.28 $49.40 $61.74 $74.09 155 Exempt Superintendent Animal Services 540M $41.08 $51.35 $61.62 $8,900.67 $106,808.00 $42.12 $52.64 $63.17 $43.17 $53.96 $64.76 83 Exempt Superintendent Community Services 480M $45.34 $56.67 $68.01 $9,822.80 $117,873.60 $46.48 $58.09 $69.71 $47.64 $59.55 $71.46 1117 Exempt Superintendent Recreation 480M $45.34 $56.67 $68.01 $9,822.80 $117,873.60 $46.48 $58.09 $69.71 $47.64 $59.55 $71.46 2022 Exempt Supervising Librarian 675M $33.07 $41.33 $49.60 $7,163.87 $85,966.40 $33.90 $42.37 $50.85 $34.75 $43.43 $52.12 161 Exempt Supervisor Facilities Management 600M $38.24 $47.79 $57.35 $8,283.60 $99,403.20 $39.20 $48.99 $58.79 $40.18 $50.22 $60.27 113 Exempt Supervisor Inspection and Surveying 540M $41.08 $51.35 $61.62 $8,900.67 $106,808.00 $42.12 $52.64 $63.17 $43.17 $53.96 $64.76 146 Exempt Supervisor Warehouse 660M $34.56 $43.19 $51.83 $7,486.27 $89,835.20 $35.42 $44.27 $53.13 $36.31 $45.38 $54.46 181 Exempt Supervisor Water Quality Control Operations 525M $42.11 $52.63 $63.16 $9,122.53 $109,470.40 $43.16 $53.95 $64.74 $44.24 $55.30 $66.36 2027 Exempt Utilities Chief Operating Officer 60E $70.84 $88.54 $106.25 $15,346.93 $184,163.20 $72.61 $90.76 $108.92 $74.43 $93.03 $111.64 184 Exempt Veterinarian 555M $40.08 $50.10 $60.12 $8,684.00 $104,208.00 $41.09 $51.36 $61.64 $42.12 $52.65 $63.18 Confidential Classifications Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx. Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate 905 Non-Exempt Human Resources Technician 830C $25.08 $31.34 $37.61 $5,432.27 $65,187.20 $25.71 $32.13 $38.56 $26.36 $32.94 $39.53 903 Non-Exempt Legal Secretary-Confidential 820C $25.70 $32.12 $38.55 $5,567.47 $66,809.60 $26.35 $32.93 $39.52 $27.01 $33.76 $40.52 67 Exempt Secretary to City Attorney 800C $30.55 $38.18 $45.82 $6,617.87 $79,414.40 $31.32 $39.14 $46.97 $32.10 $40.12 $48.15 1004 Non-Exempt Senior Legal Secretary - Confidential 810C $28.37 $35.46 $42.56 $6,146.40 $73,756.80 $29.08 $36.35 $43.62 $29.81 $37.26 $44.72 Page 3 City of Palo Alto (ID # 7878) City Council Staff Report Report Type: Action Items Meeting Date: 3/27/2017 City of Palo Alto Page 1 Summary Title: PUBLIC HEARING: 670 Los Trancos Title: PUBLIC HEARING: 670 Los Trancos Road [16PLN-00266]: Site and Design Review to Allow the Construction of a new Single Family House and Guest House With a Total of approximately 10,960 Square Feet of Floor Area. Environmental Assessment: Categorically Exempt From CEQA Pursuant to Guidelines Section 15303 (New Construction or Conversion of Small Structures). Zoning District: OS From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the Council approve a Record of Land Use Action for a Site and Design application to allow the construction of a new two-story single family residence, detached guest house, and associated site improvements on the property at 670 Los Trancos Road. (Attachment A) Background The Municipal Code requires that the City Council review Major Site and Design Review applications for new development in the Open Space zoning district, and provides for Council Consent Calendar review of new single family homes. Planning and Transportation Commission Review: The current application was reviewed by the Planning and Transportation Commission (PTC) on January 11, 2017, and the PTC recommended that the staff prepare a draft Record of Land Use Action for approval. A link to the full PTC staff report in included here: http://www.cityofpaloalto.org/civicax/filebank/documents/55399, and a copy of the staff report without attachments is included in Attachment D. The minutes of the PTC hearing are included in Attachment G. The video recording of the meeting is available at: https://youtu.be/cUMEzJcq9O8?t=1113. City of Palo Alto Page 2 Following the PTC hearing the application was placed on the Council Consent Calendar for the meeting on February 27, 2017. The application was pulled from the Consent Calendar and subsequently scheduled for a public hearing on March 27, 2017. Discussion The applicant proposes to construct a two-story single family residence, detached guest house, and associated site improvements on the undeveloped property located at 670 Los Trancos Road. The site is located in the Open Space (OS) zoning district, which permits limited housing development. The proposed house is 9,363 square feet, not including approximately 2,100 square feet of exempt basement area, and the proposed detached guest house is 1,508 square feet. The site is a 5.42 acre parcel in a residential subdivision known as the Hewlett Tract. As with the nine other home sites in the subdivision, the subject parcel was approved in August 1980 with a site area less than the 10 acre minimum for the Open Space district in order to provide a clustered subdivision plan with two large common open space areas. The site is situated on a hill overlooking the Arastradero Preserve, and the topography slopes downhill to the north from the top of the knoll along Los Trancos Road. The proposed main house would be situated on a sloped portion of the site below the highest point of the ridge, and portions of the house would be tucked into the hillside. Approximately 1,915 square feet of the gross first floor area of the house, including the garage, will have green roofing systems that support native vegetation and will be integrated with the post-grading contours of the site. This design feature would create the appearance that these portions of the house are subterranean from certain vantage points. The guest house would be situated in an existing clearing adjacent to the oak and buckeye grove, with access to the house from a secondary branch of the driveway connecting the site to Los Trancos Road. Summary of Key Issues Tree Protection: The site contains a large grove of oak and buckeye trees in the northwestern portions of the site. One protected valley oak on the edge of the grove is proposed for removal due to the tree’s decayed condition, which was assessed in the applicant’s tree protection report. The City’s Planning Arborist has approved the tree removal with a replacement ratio of 10:1, with either blue oak or valley oak trees to be planted with a minimum 6 foot crown diameter at the time of planting. Offsite Views: Story poles were erected on the site to simulate the building envelopes of the structures prior to the PTC hearing, and staff received a letter from a hiker at the Arastradero City of Palo Alto Page 3 Preserve which expressed concerns regarding the visual impact of the house. The residence would be located on a hill overlooking the preserve, and existing tree cover is confined to either side of the lot. As a result, the home would be visible from certain vantage points in the Preserve, including from the Meadowlark Trail. The applicant has proposed ten new blue or valley oak trees as mitigation for the loss of one decayed oak, and these mitigation trees would provide a degree of screening for the home at maturity. A follow up arborist and landscape report would be required at two and five years from the time of permit submittal to ensure continued conformance with the approved landscape plans. Guest House: One member of the public spoke on the application at the PTC hearing, and raised a question about whether the proposed guest house should be considered an accessory dwelling unit, which currently, would be permitted only on Open Space (OS) sites greater than 10 acres. The Council’s recent direction on Accessory Dwelling Units (ADUs) would prevent the establishment of an ADU on this site. The ordinance being contemplated by the City Council allows ADUs on any residential property; however, the OS district is not considered a residential property pursuant to the municipal code. Therefore, the site remains subject to the 10-acre size limitation for ADUs in this district. Moreover, the property owner would not be able to convert floor area in the residence or the proposed accessory structure for use as an ADU due to a provision that prohibits such conversions in residences permitted after January 1, 2017. The municipal code currently defines an a dwelling unit (including an accessory dwelling unit) as a room or group of rooms including living, sleeping, eating, cooking, and sanitation/bathing facilities, constituting a separate and independent housekeeping unit, occupied or intended for occupancy on a non-transient basis and having not more than one kitchen. The code further defines a kitchen as a room designed, intended or used for cooking and the preparation of food and dishwashing. Kitchen facilities include the presence of major appliances or utility connections and the ability to store, prepare, cook, and cleanup of food and food preparation. As the application before the PTC did not include a kitchen with major appliances or utility connections, staff recommended that the guest house not be considered an accessory dwelling unit. After the application was removed from the February 27, 2017 Council Consent Calendar the applicant removed the kitchenette entirely from the floor plan of the guest house, and reduced the size of the guest house to 1,508 square feet from 1,596 square feet. This amended plan is included in Attachment H. Open Space Development Criteria and Site and Design Review Objectives Section 18.28.070 of the Municipal Code requires the Planning and Transportation Commission and City Council to evaluate the proposed project in the context of the Open Space City of Palo Alto Page 4 Development Criteria and Site and Design Review objectives. These criteria and objectives constitute the findings for approval of the project, and an analysis of the project’s conformance with each specific criterion and objective are included in the Draft Record of Land Use Action (Attachment A). One criterion in particular states that the proposed development should not be visually intrusive from public roadways and public parklands. As much as possible, development should be sited so it is hidden from view. While the development is screened from the public roadways, it would be visible from some views in the public parkland. The development is not required to be fully screened from view, so long as it is not visually intrusive. The applicant has provided landscape renderings that are included with this report showing views of the house from the parkland and different stages of tree planting growth. Planning and Transportation Commission Review The PTC reviewed the project on January 11, 2017 and recommended approval of the project 5- 1. While there was no dissenting remarks offered after the motion, the dissenting commissioner expressed a perspective that the accessory structure as proposed before the PTC functionally served as a accessory dwelling unit, which would be in conflict with the municipal code (see discussion above). Additionally, the commissioner expressed concerns about the visibility of the house from the Preserve and interest in reducing the amount of driveway paving needed to access the accessory structure and main residence. Commissioners supporting the project noted the house was thoughtfully designed, adequately addressed screening the house from views, cited the environmental design attributes, and the project’s compliance with applicable zoning regulations. The PTC minutes are attached to this report. Policy Implications As set forth in the Draft Record of Land Use Action (RLUA), staff has concluded that the proposed project is consistent with the Comprehensive Plan, substantially complies with the Open Space Development Criteria and the objectives of Site and Design Review. The application has been analyzed for consistency with the applicable provisions of the Zoning Ordinance, and a summary table in included in Attachment B of this report. Environmental Review: The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is categorically exempt per Section 15303 of the CEQA Guidelines, which includes but is not limited to the development of one single family residence, or a second dwelling unit in a residential zone, as well as accessory or appurtenant structures including garages, carports, patios, swimming pools, and fences. Staff finds that the development of a single family house and guest house in a residential use in the Open Space District, which permits single family use, is substantially similar to the examples included in Section 15303 of the CEQA Guidelines. City of Palo Alto Page 5 Attachments: Attachment A: Draft Record of Land Use Action (DOCX) Attachment B: Zoning Comparison Table (DOCX) Attachment C: Location Map (PDF) Attachment D: January 11, 2017 PTC Staff Report (PDF) Attachment E: Applicant Response to PTC Hearing (PDF) Attachment F: Public Correspondance (PDF) Attachment G: January 11, 2017 PTC Excerpted Hearing Minutes (PDF) Attachment H: Project Plans (DOCX) Attachment A Page 1 of 26 Draft ACTION NO. 2017-03 RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 670 LOS TRANCOS ROAD: SITE AND DESIGN REVIEW (16PLN-00266) On March 27, 2017, the Council of the City of Palo Alto approved the Site and Design Review application for construction of a two-story single-family residence with detached guest house, landscaping and other site improvements in the Open Space Zoning District, making the following findings, determination and declarations: SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows: A. Michael Anglisano of McClean Design, on behalf of the property owners Noa Grant and Guy Gecht, has requested the City’s approval to allow construction of a two-story house, a detached guest house, and associated site improvements that include the installation a new driveway and landscaping. (“The Project”) B. The project site is a 5.42 acre parcel (APN 182-56-001) in the Palo Alto Foothills. The site is designated on the Comprehensive Plan Land Use Map as Open Space/Controlled Development and is located within Open Space (OS) zoning district. The project includes construction of a new, approximately, 9,363 square foot house (excluding basement areas), with a 1,508 square foot guest house and swimming pool. The main driveway would be constructed of pervious pavers and decomposed granite. As conditioned, the total impervious area would be a maximum of 15,050 square feet. The house would contain stone, wood, and plaster cladding materials with muted colors, and the rear of the main house would contain glass curtain walls. The roof would be a dark brown standing seam metal, while some portions would contain a green roofing system covered with native vegetation. C. The Planning and Transportation Commission (Commission) reviewed and recommended approval of the Project on January 11, 2017. The Commission’s recommendations are contained in CMR #7451 and the associated attachments. SECTION 2. Environmental Review. The proposed project has been determined to be Categorically Exempt per section 15303 of the California Environmental Quality Act. This exemption includes the construction and location of limited numbers of new, small facilities or structures and includes one single-family residence, or a second dwelling unit in a residential zone. SECTION 3. Site and Design Review Findings 1. The use will be constructed and operated in a manner that will be orderly, harmonious, and compatible with existing or potential uses of adjoining or nearby sites. The project is located in a residential subdivision containing other houses. The project has been designed to minimize the visual impacts of the new house from the Arastradero Preserve by dropping portions of the house below grade, and keeping the top of the main house below the elevation of the knoll on the site. The Attachment A Page 2 of 26 project will have minimal visual impacts on adjacent residential sites due to site topography, the physical separation between the site and the surrounding sites, and the mature tree cover. Furthermore, the materials, colors and landscaping selection have been designed to blend in with the natural environment to the greatest extent feasible. 2. The project is consistent with the goal of ensuring the desirability of investment, or the conduct of business, research, or educational activities, or other authorized occupations, in the same or adjacent areas. The project represents a substantial investment in a residential subdivision for the purpose of constructing a residence. As designed and conditioned, the proposed design and use of the site are consistent with the Open Space zoning and land use classification and is compatible with the existing adjacent residential uses. The construction of all improvements would be governed by the regulations of the Zoning Ordinance, the Uniform Building Code, and other applicable codes to assure safety and a high quality of development. 3. Sound principles of environmental design and ecological balance are observed in the project. The project has been designed to respect the environmental setting and existing vegetation. Although grading is proposed to cut the house and drive court into the hillside, the project will retain the general form of the top of the knoll present on the site. Over 91% of the site will remain undisturbed or will be restored with native vegetation. 4. The use will be in accord with the Palo Alto Comprehensive Plan. The project proposal complies with the policies of the Land Use and Community Design, and the Natural Environment elements of the Comprehensive Plan, including: Policy L-1: The Comprehensive Plan encourages the preservation of undeveloped land west of the Foothill Expressway and Junipero Serra as open space, with allowances made for very low-intensity development consistent with the open space character of the area. The Palo Alto Comprehensive Plan land use designation for the project site is Open Space/Controlled Development. Single-family residential uses are permitted within this district, and the site was subdivided in 1980 for the purpose of constructing a house. The structures would retain the open space character of the area through the use of materials and colors that are compatible with the environment, and through the restoration of native vegetation in areas proposed for grading. Policy L-5: The Comprehensive Plan states to maintain the scale and character of the City. Avoid land uses that are overwhelming and unacceptable due to their size and scale. Although the house would be larger than others currently located in the Hewlett Tract subdivision, the house has been designed to limit the scale by dropping substantial portions of the mass below-grade, and by re-grading portions of the slope to visually integrate the land with the structures. Policy L-69: Preserve the scenic qualities of Palo Alto’s roads and trails for motorists, cyclists, pedestrians, and equestrians. Due to the topography and grassland vegetative cover in the center of the property, the project would be visible from certain locations within the Arastradero Preserve. However, oak and buckeye groves on both sides of the property limit the extent of the visual impact to areas of the Preserve immediately north and northeast of the site. The project would be less visible from Los Trancos Road due to the hilltop knoll present on the site. Attachment A Page 3 of 26 Policy N-7: All development in the foothill portion of the Planning Area should be consistent with the City of Palo Alto Open Space development Criteria. Conformance with the Open Space Development Criteria is discussed below. SECTION 4. Open Space Review Criteria The project proposal meets the following Open Space Review Criteria and the intent of the Comprehensive Plan regarding development in designated open space areas. 1. The development should not be visually intrusive from public roadways and public parklands. As much as possible, development should be sited so it is hidden from view. The proposed house would not be visually intrusive from public roadways and will be screened to some degree from a number of the trails in the Arastradero Preserve; however, portions of the house will be visible from the Arastradero Preserve, including the Meadowlark Trail. While visible, the proposed structure will not be visually intrusive due to existing oak and buckeye groves on either side of the property, as well as ten proposed blue oaks that would limit the views from the surrounding properties and from more oblique locations in the Preserve. Substantial portions of the home have been dropped below grade to help minimize the overall scale of the development. Native vegetation and existing mature trees will be maintained and the added landscaping will restore the native vegetation lost with the construction. The use of earth tone colors and natural building materials would also minimize the visual impact of the development. 2. Development should be located away from hilltops and designed to not extend above the nearest ridgeline. While the site is fully situated on a hill, the highest point of main residence’s roof will be below the adjacent 879.9 foot-high knoll. The guest house would be located on a level portion of the top of the hillside, and would extend 2.5 feet above the height of the adjacent knoll. However, the guest house is surrounded on three sides by an oak grove, and this structure would not be visible from the Preserve and minimally visible from Los Trancos Road. 3. Site and structure design should take into consideration impacts on privacy and views of neighboring properties. The topography and oak groves of the site will limit views of the proposed structures from adjacent properties. Additionally, the physical distance between the site and the adjacent houses greatly limits the potential for privacy impacts. 4. Development should be clustered, or closely grouped, in relation to the area surrounding it to make it less conspicuous, minimize access roads, and reduce fragmentation of natural habitats. The plan of the subdivision containing the site follows a clustered design, and the house and guest house would be located relatively close to two other homes in the vicinity. the mass of the home is set into and along the natural contours of the site. The guest house is situated away from the main residence, which minimizes the apparent scale of the development, and allows the guest house to take advantage of the natural screening provided by the adjacent oak and buckeye grove. The width and design of the driveway would minimize grading and reduce impacts on existing trees. Attachment A Page 4 of 26 5. Built forms and landscape forms should mimic the natural topography. Building lines should follow the lines of the terrain, and trees and bushes should appear natural from a distance. The building footprint and driveway areas generally follow the natural topography, while also cutting into the hillside in order to drop the mass of the house beneath the top of the knoll on the site. The main house presents a horizontal, modern design with a mixture of glass and natural cladding materials. Portions of the first floor elements of the house would appear subterranean due to the green roofing system, which would integrate native vegetation. 6. Existing trees with a circumference of 37.5 inches, measured 4.5 feet above the ground level, should be preserved and integrated into the site design. Existing vegetation should be retained as much as possible. The project includes the removal of one protected Valley Oak 22.8 inches in diameter at breast height (DBH) due to severe decay and a large open cavity. The Urban Forestry division has reviewed and supports this proposed removal with a replacement ratio of 10:1. The Arborist Report submitted with the project and construction plans have been evaluated by the Urban Forestry Planning Arborist, who has agreed that sufficient tree protection measures have been included in the project. 7. Cut is encouraged when it is necessary for geotechnical stability and to enable the development to blend into the natural topography. Fill is generally discouraged and should never be distributed within the driplines of existing trees. Locate development to minimize the need for grading. The site topography and project design require cutting into the hillside, and new grading will integrate the contours of the land with the roof level of most of the one-story elements of the house. On balance, relatively little fill is proposed, and no construction activity of any sort is proposed within the Tree Protection Zone as outlined in the Arborist Report. 8. To reduce the need for cut and fill and to reduce potential runoff, large, flat expanses of impervious surfaces should be avoided. Impervious surfaces have been limited primarily to the building footprints and rear patio areas. The driveway and car court would be constructed of a combination of pervious pavers and decomposed granite to reduce runoff. 9. Buildings should use natural materials and earthtone or subdued colors. The home would be cladded with stone, plaster and wood materials with muted colors, which would blend with the hillside surroundings. Additionally, the dark brown standing seam metal roof, as well as the green roofing system used to integrate the one-story elements of the house with the finished grade, would be consistent with the setting. 10. Landscaping should be native species that require little or no irrigation. Immediately adjacent to structures, fire retardant plants should be used as a fire prevention technique. The landscape plan was designed primarily to restore the post-grading site with native vegetative covers. The landscaping plan describes various irrigation and planting zones, with the vast majority of the restored areas requiring only temporary irrigation. 11. Exterior lighting should be low-intensity and shielded from view so it is not directly visible from of-site. Exterior lighting fixtures and a site photometric plan will be required Attachment A Page 5 of 26 with the building permit plans, and will be required to demonstrate low intensity site lighting to minimize glare. 12. Access roads should be of a rural rather than urban character. (Standard curb, gutter, and concrete sidewalk are usually inconsistent with the foothills environment). The primary 12 foot-wide driveway will be constructed of pervious pavers and decomposed granite to reflect the rural character of the area. The secondary driveway serving the guest house will be constructed with a Hollywood strip, with vegetation planted between the concrete tracks. Urban-style improvements, such as curb, gutter, and sidewalks, are not proposed. 13. For development in unincorporated areas, ground coverage should be in general conformance with Palo Alto's Open Space District regulations. The project is within the City limits and, as proposed and conditioned, meets the O-S (Open Space) District zoning regulations. SECTION 5. Site and Design Approvals Granted. Site and Design Approval is granted by the City Council under Palo Alto Municipal Code Section 18.82.070 for application 16PLN-00266, subject to the conditions of approval in Section 6 of the Record. SECTION 6. Conditions of Approval. Planning Division 1. The plans submitted for a Building Permit shall be in substantial conformance with plans last revised on March 13, 2017 and the materials board on file with the Planning Department, except as modified to incorporate the following conditions of approval and any additional conditions placed on the project by the Planning Commission or City Council. 2. BUILDING PERMIT. Apply for a building permit and meet any and all conditions of the Planning, Fire, Public Works, and Building Departments. 3. BUILDING PERMIT PLAN SET. The following conditions of approval shall be printed on the second sheet of the plan set submitted with the Building Permit application. 4. Project plans submitted for Building permits shall incorporate the following changes: a. The plans shall be revised to reflect a maximum impervious cover for the site not to exceed 15,050 square feet as approved with Variance 86-V-22. The water surface of the swimming pool may be excluded from the impervious area calculation. b. The Pervious Surface Tabulation on Sheet A001 shall be amended to indicate the percentage of permeability for each surface material based on the proposed design and installation. All paved surfaces shall be classified as 100%, 75%, 50%, or 25% Attachment A Page 6 of 26 impervious. This final impervious coverage calculation shall be subject to approval by the Planning Director, not to exceed the maximum permitted by Variance 86-V-22. c. A photometric plan with footcandle readings shall be submitted and shall demonstrate that exterior lighting is low-intensity and that light emitted from skylights shall be minimal during the night hours. All exterior lighting shall be directed down to avoid any impact upon surrounding property and open space lands. d. Unless otherwise permitted by state law or local ordinance, the guest house shall not be considered or used as a separate dwelling unit, and shall not provide a kitchen with permanent cooking facilities. e. As a requirement of receiving bonus FAR, the property owner shall enter into a covenant that is recorded with the property and would apply to all future property owners assuring that the designated “undisturbed” and “restored” vegetation areas will remain in the approved vegetative condition; enforcement provisions acceptable to the City Attorney will be outlined in the covenant. To remove the landscape restrictions related to the bonus FAR, the site development shall be modified to reduce the FAR to meet the standard requirements. These modifications are subject to site and design review. f. As a requirement of receiving bonus FAR the property owner shall be required to submit a follow-up landscape-arborist report verifying the site is in compliance with the approved plans, five years after the project’s sign-off, as outlined in PAMC 18.28.070(d). 5. The approved building materials and color scheme shall be shown on the building permit drawings for all buildings, structures, and other features. 6. A landscaping plan shall be included with the plans submitted for the building permit. The plan shall include species type, size and quantities to be planted. The irrigation plan shall be included showing any mechanical irrigation systems. 7. The existing natural vegetation and land formations shall remain in a natural state unless modification is found to be necessary for a specific use allowed in the Open Space zone district through the site and design approval procedure. Reduction or elimination of fire hazards will be required where heavy concentrations of flammable vegetation occur. 8. A follow-up arborist and/or landscape report shall be required two and five years after the final sign-off of the project completion. This report shall evaluate the health of trees and significant Attachment A Page 7 of 26 landscape that were required for screen/mitigation planting and/or were designated as protected plantings on the approved plans and renderings for the project. Any subsequent owner(s) shall also be obligated to replace any trees that die with trees of the same size and species stated on the approved planning and building permit plans. Additional trees may be required at the discretion of the Director if the planting does not achieve the desired screening at the time of the follow-up arborist and/or landscape report. The property owner shall be required to pay for all costs associated with this review and, if required, additional planting. 9. All new windows and glass doors shall be of a glass type that minimizes reflectivity from off- site views. 10. If during grading and construction activities, any archeological or human remains are encountered, construction shall cease and a qualified archaeologist shall visit the site to address the find. The Santa Clara County Medical Examiner's office shall be notified to provide proper direction on how to proceed. If any Native American resources are encountered during construction, construction shall cease immediately until a Native American descendent, appointed by the Native American Heritage Commission of the State of California, is able to evaluate the site and make further recommendations and be involved in mitigation planning. 11. Indemnity: To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. 12. Judicial Review. This matter is subject to the California Code of Civil Procedures (CCP) Section 1094.5; the time by which judicial review must be sought is governed by CCP Section 1094.6. 13. Impact Fees. Development Impact fees (including Parkland Dedication, Community Facilities, Library, Housing, and Citywide Transportation Impact Area fees) with an estimated total of $32,297 must be paid prior to building permit issuance. This is an estimate and the final total may change based on date of building permit submittal. 14. 90-day Protest Period: California Government Code Section 66020 provides that a project applicant who desires to protest the fees, dedications, reservations, or other exactions imposed on a development project must initiate the protest at the time the development project is approved or conditionally approved or within ninety (90) days after the date that fees, Attachment A Page 8 of 26 dedications, reservations or exactions are imposed on the Project. Additionally, procedural requirements for protesting these development fees, dedications, reservations and exactions are set forth in Government Code Section 66020. IF YOU FAIL TO INITIATE A PROTEST WITHIN THE 90-DAY PERIOD OR FOLLOW THE PROTEST PROCEDURES DESCRIBED IN GOVERNMENT CODE SECTION 66020, YOU WILL BE BARRED FROM CHALLENGING THE VALIDITY OR REASONABLENESS OF THE FEES, DEDICATIONS, RESERVATIONS, AND EXACTIONS. 15. If these requirements constitute fees, taxes, assessments, dedications, reservations, or other exactions as specified in Government Code Sections 66020(a) or 66021, this is to provide notification that, as of the date of this notice, the 90-day period has begun in which you may protest these requirements. Public Works Engineering 16. SIDEWALK, CURB & GUTTER: As part of this project, the applicant must replace those portions of the existing sidewalks, curbs, gutters or driveway approaches in the public right-of- way along the frontage(s) of the property that are broken, badly cracked, displaced, or non- standard, and must remove any unpermitted pavement in the planter strip. Contact Public Works’ inspector at 650-496-6929 to arrange a site visit so the inspector can determine the extent of replacement work. The site plan submitted with the building permit plan set must show the extent of the replacement work or include a note that Public Works’ inspector has determined no work is required. The plan must note that any work in the right-of-way must be done per Public Works’ standards by a licensed contractor who must first obtain a Street Work Permit from Public Works at the Development Center. 17. BASEMENT DRAINAGE: A drainage system is required for all exterior basement-level spaces, such as lightwells, patios or stairwells. This system consists of a sump, a sump pump, a backflow preventer, and a closed pipe from the pump to a dissipation device onsite at least 10 feet from the property line, such as a bubbler box in a landscaped area, so that water can percolate into the soil and/or sheet flow across the site. The device must not allow stagnant water that could become mosquito habitat. Additionally, the plans must show that exterior basement-level spaces are at least 7-3/4” below any adjacent windowsills or doorsills to minimize the potential for flooding the basement. Public Works recommends a waterproofing consultant be retained to design and inspect the vapor barrier and waterproofing systems for the basement. 18. BASEMENT SHORING: Shoring for the basement excavation, including tiebacks, must not extend onto adjacent private property or into the City right-of-way without having first Attachment A Page 9 of 26 obtained written permission from the private property owners and/or an encroachment permit from Public Works. 19. DEWATERING: Basement excavations may require dewatering during construction. Public Works only allows groundwater drawdown well dewatering. Open pit groundwater dewatering is disallowed. Dewatering is only allowed from April through October due to inadequate capacity in our storm drain system. The geotechnical report for this site must list the highest anticipated groundwater level. We recommend a piezometer to be installed in the soil boring. The contractor must determine the depth to groundwater immediately prior to excavation by using the piezometer or by drilling an exploratory hole if the deepest excavation will be within 3 feet of the highest anticipated groundwater level. If groundwater is found within 2 feet of the deepest excavation, a drawdown well dewatering system must be used, or alternatively, the contractor can excavate for the basement and hope not to hit groundwater, but if he does, he must immediately stop all work and install a drawdown well system before he continues to excavate. Public Works may require the water to be tested for contaminants prior to initial discharge and at intervals during dewatering. If testing is required, the contractor must retain an independent testing firm to test the discharge water for the contaminants Public Works specifies and submit the results to Public Works. Applicant shall install a water station for the reuse of dewatering water. This water station shall be constructed next to the right-of-way and shall be accessible 24 hours a day for the filling of water carrying vehicles (i.e. street sweepers, etc.). The water station shall also be sued for onsite dust control. Applicant shall meet with Public Works to coordinate the design details. 20. Public Works reviews and approves dewatering plans as part of a Street Work Permit. The applicant can include a dewatering plan in the building permit plan set in order to obtain approval of the plan during the building permit review, but the contractor will still be required to obtain a street work permit prior to dewatering. Alternatively, the applicant must include the above dewatering requirements in a note on the site plan. Public Works has a sample dewatering plan sheet and dewatering guidelines available at the Development Center and on our website. 21. WATER FILLING STATION: Due to the California drought, applicant shall install a water station for the non-potable reuse of the dewatering water. This water station shall be constructed within private property, next to the right-of-way, (typically, behind the sidewalk). The station shall be accessible 24 hours a day for the filling of water carrying vehicles (i.e. street sweepers, etc.). The water station may also be used for onsite dust control. Before a discharge permit can be issued, the water supply station shall be installed, ready for operational and inspected by Public Works. The groundwater will also need to be tested for contaminants and chemical properties for the non-potable use. The discharge permit cannot be issued until Attachment A Page 10 of 26 the test results are received. Additional information regarding the station will be made available on the City’s website under Public Works. 22. GRADING & DRAINAGE PLAN: The plan set must include a grading & drainage plan prepared by a licensed professional that includes existing and proposed spot elevations and drainage flow arrows to demonstrate proper drainage of the site. Adjacent grades must slope away from the house a minimum of 2%. Downspouts and splashblocks should be shown on this plan, as well as any site drainage features such as swales. Grading will not be allowed that increases drainage onto, or blocks existing drainage from, neighboring properties. Public Works generally does not allow rainwater to be collected and discharged into the street gutter, but encourages the developer to keep rainwater onsite as much as feasible by directing runoff to landscaped and other pervious areas of the site. See the Grading & Drainage Plan Guidelines for New Single Family Residences: http://www.cityofpaloalto.org/civicax/filebank/documents/2717 23. The site drainage system that collects runoff from downspouts and/or landscape area shall be a separated from the pump system that discharges runoff from light wells. Plot and clearly label the two separate systems and including the separate outfalls for each system. 24. GRADING & EXCAVATION PERMIT: The site plan must include an earthworks table showing cut and fill volumes. If the total is more than 100 cubic yards, a grading permit will be required. An application and plans for a grading permit are submitted to Public Works separately from the building permit plan set. The application and guidelines are available at the Development Center and on our website. 25. STORM WATER POLLUTION PREVENTION: The City's full-sized "Pollution Prevention - It's Part of the Plan" sheet must be included in the plan set. The sheet is available here: http://www.cityofpaloalto.org/civicax/filebank/documents/2732 26. STREET TREES: Show all existing street trees in the public right-of-way. Any removal, relocation or planting of street trees; or excavation, trenching or pavement within 10 feet of street trees must be approved by Public Works' arborist (phone: 650-496-5953). This approval shall appear on the plans. Show construction protection of the trees per City requirements. 27. PAVEMENT: Applicant and Contractor shall meet with Public Works to discuss the extent of pavement restoration along Los Trancos Road. If any utility trenching is done into the street, full street width resurfacing may be required prior to building permit final. At minimum contractor shall be responsible for resurfacing the pavement along the project frontage. The site plan submitted shall include full pavement width restoration of the along the project frontage. Attachment A Page 11 of 26 28. Provide the following note on the Site Plan and Grading and Drainage Plan: “Contractor shall not stage, store, or stockpile any material or equipment within the public road right-of-way or easement.” Construction phasing shall be coordinate to keep materials and equipment onsite. 29. WORK IN THE RIGHT-OF-WAY: The plans must clearly indicate any work that is proposed in the public right-of-way, such as sidewalk replacement, driveway approach, or utility laterals. The plans must include notes that the work must be done per City standards and that the contractor performing this work must first obtain a Street Work Permit from Public Works at the Development Center. If a new driveway is in a different location than the existing driveway, then the sidewalk associated with the new driveway must be replaced with a thickened (6” thick instead of the standard 4” thick) section. Additionally, curb cuts and driveway approaches for abandoned driveways must be replaced with new curb, gutter and planter strip. 30. IMPERVIOUS SURFACE AREA: The project will be creating or replacing 500 square feet or more of impervious surface. Accordingly, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application. The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. 31. RESIDENTIAL STORM WATER TREATMENT: This project may trigger the California Regional Water Quality Control Board’s revised provision C.3 for storm water regulations (incorporated into the Palo Alto Municipal Code, Section 16.11) that apply to residential land development projects that create or replace between 2,500 and 10,000 square feet of impervious surface area. The applicant must implement one or more of the following site design measures: • Direct roof runoff into cisterns or rain barrels for reuse. • Direct roof runoff onto vegetated areas. • Direct runoff from sidewalks, walkways, and/or patios onto vegetated areas. • Direct runoff from driveways and/or uncovered parking lots onto vegetated areas. • Construct sidewalks, walkways, and/or patios with permeable surfaces. • Construct driveways, and/or uncovered parking lots with permeable surfaces. 32. LOGISTICS PLAN: The contractor must submit a logistics plan to the Public Works Department prior to commencing work that addresses all impacts to the City’s right-of-way, including, but not limited to: pedestrian control, traffic control, truck routes, material deliveries, contractor’s parking, concrete pours, crane lifts, work hours, noise control, dust Attachment A Page 12 of 26 control, storm water pollution prevention, erosion control, contractor’s contact, noticing of affected businesses, and schedule of work. Public Works - Urban Forestry PRIOR TO DEMOLITION, BUILDING OR GRADING PERMIT ISSUANCE 33. TREE REMOVAL—REPLACEMENT TREES. Building permit plans shall reflect: Ten new replacement trees shall be planted, watered and maintained to offset the removal of native valley oak # 4. Pursuant to the Tree Technical Manual, Section 2.20, Tree Canopy Replacement Standard, the commensurate replacement of 10 new trees shall include a mix of black oak, blue oak or valley oak (minimum 24-inch box size) installed in key locations relative to keeping the top of the knoll visible. 34. TOP SOIL. The grading and excavation plans shall include topsoil preservation. Specify steps and location to stockpile of the upper horizon or native soil for collection, retention and properly reapplying, coordinated with the landscape architect. Indicate dedicated areas, protection, erosion control and reuse areas. 35. SOIL DISTURBANCE. Plans submitted for building permit shall include a detailed landscape plan that includes vegetation control of disturbed areas of the site, including construction and access areas. The landscape plan shall identify all disturbed, exposed, compacted soil and slope areas for invasive thistle removal and revegetation. Specifying soil scarifying, preparation and seeding using Palo Alto Hydroseeding Specification for the Los Trancos Watershed Area. 36. SLOPE VEGETATION. All graded slopes shall be scarified to a 6" minimum. All graded areas shall be covered with a layer of jute netting, laid over irrigation lines where installed for native plants. Hydroseed shall overlap any graded area by 20’. Hydroseed shall be applied only after all planting/irrigation/jute netting is in place, October to November 27 preceding winter rains. 37. PLANTING & IRRIGATION. All drip irrigation shall be carefully located and pinned upslope of plant material. Trees shall have at least two concentric irrigation rings for root growth. Project arborist shall verify in Monthly Activity Report that tree planting area is loosened 2x diameter of root ball prior to planting. Irrigation system shall be adjusted yearly for three years for function by a qualified technician. 38. BUILDING PERMIT SUBMITTAL- PROJECT ARBORIST CERTIFICATION LETTER REQUIRED. Prior to submittal for staff review, attach a Project Arborist Certification Letter Attachment A Page 13 of 26 that he/she has; (a) reviewed the entire building permit plan set submittal and, (b) verified all his/her updated TPR mitigation measures and changes are incorporated in the plan set, (c) affirm that ongoing Contractor/Project Arborist site monitoring inspections and reporting have been arranged with the contractor or owner (see Sheet T-1) and, (d) understands that design revisions (site or plan changes) within a TPZ will be routed to Project Arborist/Contractor for review prior to approval from City. 39. The Building Permit submittal must be accompanied by the project site arborist’s certification letter. a. Provide a project arborist’s Updated Tree Protection Report (TPR) with building permit level mitigation measures, (e.g., resolve grading proximity issues with Public trees; exact TPZ scaled in feet). Provide plan revision directions to minimize root cutting conflicts that are obvious in the civil, basement, sidewalk improvement sheets. See TPR below. b. Verify the Plan design changes are incorporated and consistent with the Palo Alto Tree Technical Manual Construction Standards, Section 2.00 and PAMC 8.10.080. 40. PLAN SET REQUIREMENTS. The final Plans submitted for building permit shall include the following information and notes on relevant plan sheets: a. SHEET T-1, BUILDING PERMIT. The building permit plan set will include the City’s full-sized, Sheet T-1 (Tree Protection-it's Part of the Plan!), available on the Development Center website at http://www.cityofpaloalto.org/civicax/filebank/documents/31783. The Applicant shall complete and sign the Tree Disclosure Statement and recognize the Project Arborist Tree Activity Inspection Schedule. Monthly reporting to Urban Forestry/Contractor is mandatory. (Insp. #1: applies to all projects; with tree preservation report: Insp. #1-7 applies) b. The Tree Preservation Report (TPR). All sheets of the Applicant’s construction level TPR approved by the City for full implementation by Contractor, arborist to be identified, shall be printed on numbered Sheet T-1 (T-2, T-3, etc) and added to the sheet index. c. Plans to show protective tree fencing. The Plan Set (esp. site, demolition, grading & drainage, foundation, irrigation, tree disposition, utility sheets, etc.) must delineate/show the correct configuration of Type I, Type III fencing around each Regulated Tree, using a bold dashed line enclosing the Tree Protection Zone (Standard Attachment A Page 14 of 26 Dwg. #605, Sheet T-1; City Tree Technical Manual, Section 6.35-Site Plans); or by using the Project Arborist’s unique diagram for each Tree Protection Zone enclosure. 41. SITE PLAN REQUIREMENTS: In addition to showing TPZ fencing, slope vegetation, planting & irrigation above, add the following Notes on the specified Plan Sheets. a. Note #1. Apply to the site plan stating, "All tree protection and inspection schedule measures, design recommendations, watering and construction scheduling shall be implemented in full by owner and contractor, as stated on Sheet T-1, in the Tree Protection Report and the approved plans”. b. Note #2. All civil plans, grading plans, irrigation plans, site plans and utility plans and relevant sheets shall add a note applying to the trees to be protected, including neighboring trees stating: "Regulated Tree--before working in this area contact the Project Site Arborist at: to be identified "; c. Note #3. Utility (sanitary sewer/gas/water/backflow/electric/storm drain) plan sheets shall include the following note: “Utility trenching shall not occur within the TPZ of the protected tree. Contractor shall be responsible for ensuring that no trenching occurs within the TPZ of the protected tree by contractors, City crews or final landscape workers. See sheet T-1 for instructions.” d. Note #4. “Basement or foundation plan. Soils Report and Excavation for basement construction within the TPZ of a protected tree shall specify a vertical cut (stitch piers may be necessary) in order to avoid over-excavating into the tree root zone. Any variance from this procedure requires Urban Forestry approval, please call (650) 496- 5953.” 42. LANDSCAPE PLANS a. Include all changes recommended from civil engineer, architect and staff, including planting and special irrigation specifications for hillside planting, as detailed by the project arborist, b. Provide a detailed landscape and irrigation plan. A licensed landscape architect and qualified irrigation consultant will prepare these plans, to include: i. All existing trees identified both to be retained and removed including street trees. ii. Complete plant list indicating tree and plant species, quantity, size, and locations. Attachment A Page 15 of 26 iii. Irrigation schedule and plan. iv. Landscape Plan shall ensure the backflow device is adequately obscured with the appropriate screening to minimize visibility (planted shrubbery is preferred, painted dark green, decorative boulder covering acceptable; wire cages are discouraged). v. Landscape plan shall include planting preparation details for trees specifying digging the soil to at least 30-inches deep, backfilled with a quality topsoil and dressing with 2-inches of wood or bark mulch on top of the root ball keeping clear of the trunk by 1-inch. vi. Automatic irrigation shall be provided to all trees. For trees not fitted with dual circles of drip tubing, then Standard Dwg. #513 shall be included on the irrigation plans and show two bubbler heads mounted on flexible tubing placed at the edge of the root ball. Bubblers shall not be mounted inside an aeration tube. The tree irrigation system shall be connected to a separate valve from other shrubbery and ground cover, pursuant to the City's Landscape Water Efficiency Standards. c. Include a detail for retaining walls near tree trunks. d. Include a detail for slope planting, including water berm, cut, drainage provision and erosion control. e. Include planting detail provision for (a) rodent control (root protections) and (b) deer control (twig & bark browsing protection). 43. GRASSLAND HYDROSEED MIX. All disturbed areas (20’ overlap) of the site shall be applied with CPA approved Hydroseed mix by November 27 preceding winter season rains. Unless otherwise specified, CPA Hydroseed Mix Specifications for Los Trancos Watershed shall be utilized from Planning Department Staff. 44. Add note to L Sheets: “Mandatory Landscape Architect (LA) Inspections and Verification to the City. The LA shall verify the performance measurements are achieved with a letter of verification to City Planning staff, in addition to owner’s representative for the following: a. All the above landscape plan and tree requirements are in the Building Permit set of plans. b. Percolation & drainage checks have been performed and are acceptable. Attachment A Page 16 of 26 c. Fine grading inspection of all plantable areas has been personally inspected for tilling depth, rubble removal, soil test amendments are mixed and irrigation trenching will not cut through any tree roots. d. Tree and Shrub Planting Specifications, including delivered stock, meets Standards in the CPA Tree Technical Manual, Section 3.30-3.50. Girdling roots and previously topped trees are subject to rejection. DURING CONSTRUCTION 45. TREE PROTECTION VERIFICATION. Prior to any site work a written verification from the contractor that the required protective fencing is in place shall be submitted to the Urban Forestry Section (derek.sproat@cityofpaloalto.org). The fencing shall contain required warning sign and remain in place until final inspection of the project. 46. SUDDEN OAK DEATH (Best Management Practices). To deter the potential spread of sudden oak death disease in Palo Alto, the City requires that all contractor activities and delivery vehicles perform the work according to the county quarantine restrictions in the attached Sudden Oak Death Best Management Practices. Violation is subject to penalty and/or prosecution. http://www.cityofpaloalto.org/environment/default.asp 47. EXCAVATION RESTRICTIONS APPLY (TTM, Sec. 2.20 C & D). Any approved grading, digging or trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans to be implemented by Contractor. 48. PLAN CHANGES. Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the (a) project site arborist, _to be confirmed__, or (b) landscape architect with written letter of acceptance before submitting the revision to the Building Department for review by Planning, PW or Urban Forestry. 49. CONDITIONS. All Planning Department conditions of approval for the project shall be printed on the plans submitted for building permit. 50. TREE PROTECTION COMPLIANCE. The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR & Sheet T-1, and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and Attachment A Page 17 of 26 documented in the monthly activity report sent to the City. The mandatory Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City (pwps@cityofpaloalto.org) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. 51. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to TTM, Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25. 52. GENERAL. The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. PRIOR TO OCCUPANCY 53. LANDSCAPE CERTIFICATION LETTER. The Planning Department shall be in receipt of a verification letter that the Landscape Architect has inspected all trees, shrubs, planting and irrigation and that they are installed and functioning as specified in the approved plans. 54. PROJECT ARBORIST CERTIFICATION LETTER. Prior to written request for temporary or final occupancy, the contractor shall provide to the Planning Department and property owner a final inspection letter by the Project Arborist. The inspection shall evaluate the success or needs of Regulated tree protection, including new landscape trees, as indicated on the approved plans. The written acceptance of successful tree preservation shall include a photograph record and/or recommendations for the health, welfare, mitigation remedies for injuries (if any). The final report may be used to navigate any outstanding issues, concerns or security guarantee return process, when applicable. 55. PLANNING INSPECTION. Prior to final sign off, contractor or owner shall contact the city planner (650-329-2441) to inspect and verify Special Conditions relating to the conditions for structures, fixtures, colors and site plan accessories. POST CONSTRUCTION 56. MAINTENANCE. All landscape and trees shall be maintained, watered, fertilized, and pruned according to Best Management Practices-Pruning (ANSI A300-2008 or current version) and the City Tree Technical Manual, Section 5.00. Any vegetation that dies shall be replaced or failed automatic irrigation repaired by the current property owner within 30 days of discovery. Attachment A Page 18 of 26 57. FINAL REPORT. Because of the importance of visual screening represented by the trees proposed with this project, the property owner shall ensure the survival of the tree plantings for a period of five years. The owner shall install any necessary replacement trees or irrigation and monitor for their survival. A certified arborist shall prepare a report at the end of five years photo documenting the prognosis of the trees and forward said report to the Department of Planning and Community Environment. Any subsequent owner(s) shall also be obligated to replace any trees that die with trees of the same size and species stated on the approved building permit plans. Fire Department 58. Fire Department access driveway shall be a min 12 ft wide and 13 ft 6 in vertical clearance with an all weather surface. 59. This property is located in the High Hazard Fire Area as defined in the Palo Alto Municipal code. 60. Install a NFPA 13-D fire sprinkler system in all structures. Protection shall extend to all rooms, closets, bathrooms and attic spaces. Provide a 4 head calc in main house and a 2 head calc in the accessory structure. 61. Building construction shall comply with the California Residential Code and California Building Code Chapter 7A. Green Building 62. CALGreen Checklist: If the project is a new construction residential building, then the project must meet the California Green Building Code mandatory requirements outlined in Chapter 4, (with local amendments) plus Tier 2 minimum pre-requisites and electives outlined in Appendix A4* (with local amendments). The project must hire a Green Building Special Inspector for a pre-permit third-party design review and a third-party green building inspection process. The project must provide a preliminary GB-1 sheet for planning entitlement approval. Submittal requirements are outlined on the Development Services Green Building webpage. http://www.cityofpaloalto.org/gov/depts/ds/green_building/default.asp PAMC 16.14.080 (Ord. 5324 § 1 (part), 2015) Attachment A Page 19 of 26 63. *Note: Projects subject to Tier 1 or Tier 2 shall not be required to fulfill any requirements outlined in Appendix A4.2 Energy Efficiency. All energy efficiency measures are found in the 2013 California Energy Code and the Palo Alto Energy Reach Code PAMC 16.17 & 16.18. 64. EVSE Transformer Location: If the project triggers the EVSE requirements in Part B of these comments, then applicant must identify transformer requirements associated with EVSE mentioned and show the appropriate transformer location and size on the Planning Application. The applicant must contact the Electric Engineering Department within Utilities to confirm the any transformer requirements associated with the proposed EVSE. For questions, contact the Electric Engineering mainline at 650-566-4500. 65. Energy Efficiency: If the project includes new construction, then the project triggers the Local Energy Efficiency Reach Code. For all new single-family residential, multi-family residential, and non-residential construction, the performance approach specified within the 2013 California Energy Code shall be used to demonstrate that the TDV Energy of the proposed building is at least 15% less than the TDV Energy of the Standard Design. (Ord. 5324 § 1 (part), 2015) 66. CALGreen Checklist: If the project is a new construction residential building, then the project must meet the California Green Building Code mandatory requirements outlined in Chapter 4, (with local amendments) plus Tier 2 minimum pre-requisites and electives outlined in Appendix A4* (with local amendments). The project must hire a Green Building Special Inspector for a pre-permit third-party design review and a third-party green building inspection process. The project must select a Green Building Special Inspector from the City’s list of approved inspectors. http://www.cityofpaloalto.org/gov/depts/ds/green_building/default.asp PAMC 16.14.080 (Ord. 5324 § 1 (part), 2015) Note: Projects subject to Tier 1 or Tier 2 shall not be required to fulfill any requirements outlined in Appendix A4.2 Energy Efficiency. All energy efficiency measures are found in the 2013 California Energy Code and the Palo Alto Energy Reach Code PAMC 16.17 & 16.18. 67. EVSE: If the project is a new detached single-family dwelling, then the project shall comply with the following requirements for electric vehicle supply equipment (EVSE) as shown in : a) The property owner shall provide as minimum a panel capable to accommodate a dedicated branch circuit and service capacity to install at least a 208/240V, 50 amperes grounded AC outlet (Level 2 EVSE). The raceway shall terminate in close proximity to the proposed location of the charging system into a listed cabinet, box, enclosure, or receptacle. The raceway shall be installed so that minimal removal of materials is necessary to complete the final installation. The raceway shall have capacity to accommodate a 100-ampere circuit. Attachment A Page 20 of 26 b) Design. The proposed location of a charging station may be internal or external to the dwelling, and shall be in close proximity to an on-site parking space. The proposed design must comply with all applicable design guidelines, setbacks and other code requirements. PAMC 16.14.420 (Ord. 5263 § 2, 2014 68. EVSE Transformer Location: If the project triggers the EVSE requirements in Part B of these comments, then applicant must identify transformer requirements associated with EVSE mentioned and show the appropriate transformer location and size on the Permit Plans. The applicant must contact the Electric Engineering Department within Utilities to confirm the any transformer requirements associated with the proposed EVSE. For questions, contact the Electric Engineering mainline at 650-566-4500. Utilities – Water, Gas, Waste Water PRIOR TO ISSUANCE OF DEMOLITION PERMIT 69. Prior to demolition, the applicant shall submit the existing water/wastewater fixture unit loads (and building as-built plans to verify the existing loads) to determine the capacity fee credit for the existing load. If the applicant does not submit loads and plans they may not receive credit for the existing water/wastewater fixtures. 70. The applicant shall submit a request to disconnect all utility services and/or meters including a signed affidavit of vacancy. Utilities will be disconnected or removed within 10 working days after receipt of request. The demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed. FOR PLANNING PERMIT 71. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations and any other required utilities. Plans for new wastewater laterals and mains need to include new wastewater pipe profiles showing existing potentially conflicting utilities especially storm drain pipes, electric and communication duct banks. Existing duct banks need to be daylighted by potholing to the bottom of the ductbank to verify cross section prior to plan approval and starting lateral installation. Plans for new storm drain mains and laterals need to include profiles showing existing potential conflicts with sewer, water and gas. FOR BUILDING PERMIT 72. The applicant shall submit a completed water-gas-wastewater service connection application - load sheet for City of Palo Alto Utilities. The applicant must provide all the information Attachment A Page 21 of 26 requested for utility service demands (water in fixture units and g.p.m., gas in b.t.u.p.h, and sewer in fixture units). 73. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations and any other required utilities. 74. The applicant must show on the site plan the existence of any water well, or auxiliary water supply. 75. The applicant shall be responsible for installing and upgrading the existing utility mains and/or services as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services. 76. Sewer drainage piping serving fixtures located below the next upstream sewer main manhole cover shall be protected by an approved backwater valve per California Plumbing Code 710.0. The upstream sewer main manhole rim elevation shall be shown on the plans. 77. The applicant's engineer shall submit flow calculations and system capacity study showing that the on-site and off-site water and sanitary sewer mains and services will provide the domestic, irrigation, fire flows, and wastewater capacity needed to service the development and adjacent properties during anticipated peak flow demands. Field testing may be required to determined current flows and water pressures on existing water main. Calculations must be signed and stamped by a registered civil engineer. The applicant is required to perform, at his/her expense, a flow monitoring study of the existing sewer main to determine the remaining capacity. The report must include existing peak flows or depth of flow based on a minimum monitoring period of seven continuous days or as determined by the senior wastewater engineer. The study shall meet the requirements and the approval of the WGW engineering section. No downstream overloading of existing sewer main will be permitted. 78. The City will not provide gas service in this area. 79. The applicant shall pay the capacity fees and connection fees associated with the installation of the new water and wastewater utility service/s to be installed by the City of Palo Alto Utilities. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation. 80. Each parcel shall have its own water service and sewer lateral connection shown on the plans. Attachment A Page 22 of 26 81. A new water service line installation for domestic usage is required. Show the location of the new water service and meter on the plans. 82. An approved reduce pressure principle assembly (RPPA backflow preventer device) shall be installed for the new domestic water connection from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly behind the water meter. Show the location of the RPPA on the plans. Inspection by the utilities cross connection inspector is required for the supply pipe between the meter and the assembly. 83. A new sewer lateral installation required. Show the location of the new sewer lateral on the plans. 84. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas & wastewater. Utilities – Electrical Engineering Below are the specific comments for this project. 85. Service Voltage shall be 120/240V. 86. 24" min between Gas and Electric trench. 87. Customer will be responsible for new transformer pad, conduit and conductor between transformer location, to be determined, and service box, PB-1628. 88. Customer will be responsible for a new easement around new transformer and conduit between new transformer and PB-1628. 89. The applicant shall comply with all the Electric Utility Engineering Department service requirements noted during plan review. 90. The applicant shall be responsible for identification and location of all utilities, both public and private, within the work area. Prior to any excavation work at the site, the applicant shall contact Underground Service Alert (USA) at 1-800-227-2600, at least 48 hours prior to beginning work. 91. Only one electric service lateral is permitted per parcel. Utilities Rule & Regulation #18. Attachment A Page 23 of 26 92. If this project requires padmount transformers, the location of the transformers shall be shown on the site plan and approved by the Utilities Department and the Architectural Review Board. Utilities Rule & Regulations #3 & #16 (see detail comments below). 93. The developer/owner shall provide space for installing padmount equipment (i.e. transformers, switches, and interrupters) and associated substructure as required by the City. 94. The location of the electric panel/switchboard shall be shown on the site plan and approved by the Architectural Review Board and Utilities Department. 95. The customer shall install all electrical substructures (conduits, boxes and pads) required from the service point to the customer's switchgear. The design and installation shall be according to the City standards and shown on plans. Utilities Rule & Regulations #16 & #18. 96. The customer is responsible for sizing the service conductors and other required equipment according to the California Electric Code requirements and City standards. 97. If the customer's total load exceeds 2500 kVA, service shall be provided at the primary voltage of 12,470 volts and the customer shall provide the high voltage switchgear and transformers. 98. For primary services, the standard service protection is a padmount fault interrupter owned and maintained by the City, installed at the customer's expense. The customer must provide and install the pad and associated substructure required for the fault interrupter. 99. Any additional facilities and services requested by the Applicant that are beyond what the utility deems standard facilities will be subject to Special Facilities charges. The Special Facilities charges include the cost of installing the additional facilities as well as the cost of ownership. Utilities Rule & Regulation #20. 100. Projects that require the extension of high voltage primary distribution lines or reinforcement of offsite electric facilities will be at the customer's expense and must be coordinated with the Electric Utility. 101. The applicant shall secure a Public Utilities Easement for facilities installed on private property for City use. 102. Industrial and large commercial customers must allow sufficient lead-time for Electric Utility Engineering and Operations (typically 8-12 weeks after advance engineering fees have been paid) to design and construct the electric service requested. Attachment A Page 24 of 26 103. A completed Utility Service Application and a full set of plans must be included with all applications involving electrical work. The Application must be included with the preliminary submittal. 104. The applicant shall submit a request to disconnect all existing utility services and/or meters including a signed affidavit of vacancy, on the form provided by the Building Inspection Division. Utilities will be disconnected or removed within 10 working days after receipt of request. The demolition permit will be issued after all utility services and/or meters have been disconnected and removed. 105. All utility meters, lines, transformers, backflow preventers, and any other required equipment shall be shown on the landscape and irrigation plans and shall show that no conflict will occur between the utilities and landscape materials. In addition, all aboveground equipment shall be screened in a manner that is consistent with the building design and setback requirements. 106. Contractors and developers shall obtain permit from the Department of Public Works before digging in the street right-of-way. This includes sidewalks, driveways and planter strips. 107. At least 48 hours prior to starting any excavation, the customer must call Underground Service Alert (USA) at 1-800-227-2600 to have existing underground utilities located and marked. The areas to be checked for underground facility marking shall be delineated with white paint. All USA markings shall be removed by the customer or contractor when construction is complete. 108. The customer is responsible for installing all on-site substructures (conduits, boxes and pads) required for the electric service. No more than 270 degrees of bends are allowed in a secondary conduit run. All conduits must be sized according to California Electric Code requirements and no 1/2-inch size conduits are permitted. All off-site substructure work will be constructed by the City at the customer's expense. Where mutually agreed upon by the City and the Applicant, all or part of the off-site substructure work may be constructed by the Applicant. 109. All primary electric conduits shall be concrete encased with the top of the encasement at the depth of 30 inches. No more than 180 degrees of bends are allowed in a primary conduit run. Conduit runs over SOD feet in length require additional pull boxes. 110. All new underground conduits and substructures shall be installed per City standards and shall be inspected by the Electrical Underground Inspector before backfilling. Attachment A Page 25 of 26 111. For services larger than 1600 amps, a transition cabinet as the interconnection point between the utility's padmount transformer and the customer's main switchgear may be required. See City of Palo Alto Utilities Standard Drawing SR-XF-E-1020. The cabinet design drawings must be submitted to the Electric Utility Engineering Division for review and approval. 112. For underground services, no more than four (4) 750 MCM conductors per phase can be connected to the transformer secondary terminals; otherwise, bus duct or x-flex cable must be used for connections to padmount transformers. If customer installs a bus duct directly between the transformer secondary terminals and the main switchgear, the installation of a transition cabinet will not be required. 113. The customer is responsible for installing all underground electric service conductors, bus duct, transition cabinets, and other required equipment. The installation shall meet the California Electric Code and the City Standards. 114. Meter and switchboard requirements shall be in accordance with Electric Utility Service Equipment Requirements Committee (EUSERC) drawings accepted by Utility and CPA standards for meter installations. 115. Shop/factory drawings for switchboards (400A and greater) and associated hardware must be submitted for review and approval prior to installing the switchgear to: Gopal Jagannath, P.E. Supervising Electric Project Engineer Utilities Engineering (Electrical) 1007 Elwell Court Palo Alto, CA 94303 116. All new underground electric services shall be inspected and approved by both the Building Inspection Division and the Electrical Underground Inspector before energizing. 117. The customer shall provide as-built drawings showing the location of all switchboards, conduits (number and size), conductors (number and size), splice boxes, vaults and switch/transformer pads. 118. The follow must be completed before Utilities will make the connection to the utility system and energize the service: a. All fees must be paid. b. All required inspections have been completed and approved by both the Building Inspection Division and the Electrical Underground Inspector. c. All Special Facilities contracts or other agreements need to be signed by the City and applicant. Attachment A Page 26 of 26 d. Easement documents must be completed. SECTION 7. Term of Approval. Site and Design Approval. In the event actual construction of the project is not commenced within two years of the date of council approval, the approval shall expire and be of no further force or effect, pursuant to Palo Alto Municipal Code Section 18.30(G).080. PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Director of Planning and Community Environment APPROVED AS TO FORM: ___________________________ Senior Asst. City Attorney ATTACHMENT B ZONING COMPARISON TABLE 670 Los Trancos Road 16PLN-00266 Table 1a: COMPARISON WITH CHAPTER 18.28 (OS DISTRICT) OS Residential Development Standards Regulation Required Existing Proposed Minimum Site Area, Width and Depth Area: 10 acres Width: No standard Depth: No standard Area: 5.42 acres Width: 288 feet Depth: 628 feet No change to existing Front Yard 30 feet N/A 130 feet for main house, 62 feet for guest house Street Side Yard 30 feet N/A N/A Rear Yard 30 feet N/A 224 feet for main house, 340 feet for guest house Interior Side Yard 30 feet N/A R: 58 feet, L: 176 for main house; R: 288 feet, L: 85 feet for guest house Max. Building Height 25 feet average height of the highest gable N/A 25 feet average for the highest gable Maximum Impervious Coverage 15,050 sq. ft. (Per Variance 86-V-22) N/A 13,608 sq. ft. Max. Total Floor Area Ratio 4% (9,444 sq. ft.) for a 5.42 acre site, or 5% (11,804 sq. ft) with FAR bonus N/A 4.6% (10,871 sq. ft.) with FAR bonus Native Vegetation Retained or Restored (for FAR bonus) ≥ 90% of site area 91.4% of site area Table 1b: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) for Single Family Residential Uses (Tandem Parking Allowed) Type Required Existing Proposed Vehicle Parking 4 spaces, of which one must be covered N/A 4 covered spaces Hewlett Station 120.1' 67.8' 88.2' 67.8' 104.7' 445.0' 47.4' 217.8' 446.6' 235.2' 353.5' 473.1' 120.1' 104.7' 47.4' 182.0' 19.8' 119.7' 446.6' 235.2' 353.5' 291.7' 88.2' 217.9' 301.7' 58.6' 463.1' 77.7' 174.2' 222.5' 68.7' 156.6' 337.5' 291.7' 71.1'9.7'254.5'18.2'98.1'3.9' 591.6' 66.0' 212.4' 222.5' 19.1' 165.2' 150.0' 585.0' 304.0' 123.2' .9' 591.6' 95.7' 24.1' 57.3' 79.6' 58.4'39.8' 50.0' 733.2' 585.0' 150.0' 279.6' 100.8' 39.8'21.7' 58.6' 301.7' 217.9' 733.2' 36.7' 82.0' 57.3'24.1' 94.4 183.4' 432.3' 463.1' 165.2' 279.6' 100.8' 39.8'21.7'36.7'82.0' 57.3'24.1' 94.4' 95.7' 24.1' 57.3' 79.6' 58.4'39.8' 50.0' 183.4' 432.3' 77.7' 174.2' 222.5' 68.7' 156.6' 19.3' 182.0'19.8'19.1' 222.5' 212.4' 304.0' 240.6' 194.0194.0 240.6' 123.2' .9'3.9'98.1'18.2'254.5'9.7'71.1' 473.1' This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend abc Known Structures Zone Districts abc Zone District Notes abc Dimensions (AP) 670 Los Trancos Road abc Zone District Labels 40 ft Contour Line 0' 200' 670 Los Trancos Road CITY O F PALO A L TO IN C O R P O RATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto gowen, 2016-12-21 16:47:35 (\\cc-maps\gis$\gis\admin\Personal\Planning.mdb) Planning & Transportation Commission Staff Report (ID # 7451) Report Type: Action Items Meeting Date: 1/11/2017 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: 670 Los Trancos: New Single Family Residence Title: PUBLIC HEARING / QUASI-JUDICIAL MATTER. 670 Los Trancos Road [16PLN-00266]: Site and Design Review to Allow the Construction of a Single Family House and Guest House With a Total of 10,959 Square Feet. Environmental Assessment: Categorically Exempt From the California Environmental Quality Act (CEQA) Pursuant to Guidelines Section 15303 (New Construction or Conversion of Small Structures). Zoning District: OS From: Hillary Gitelman Recommendation It is recommended that the Planning and Transportation Commission (PTC) take the following action(s): 1. Continue the project to a date uncertain with guidance to the applicant regarding strategies to better comply with applicable findings. Report Summary The applicant proposes to construct a two-story single family house, detached guest house, and associated site improvements on the undeveloped property located at 670 Los Trancos Road. The site is located in the Open Space (OS) zoning district, which permits limited housing development. The proposed house is 9,363 square feet, not including approximately 2,100 square feet of exempt basement area, and the proposed detached guest house is 1,596 square feet. Development in excess of 1,000 square feet and requires PTC review of the Site and Design Review application. The Commission’s recommendation will be forwarded to the City Council. Attachment A provides four objectives included in Palo Alto Municipal Code (PAMC) Section 18.30(G).060 for Site and Design Review approval for the Planning and Transportation Commission to review and apply toward the project. City of Palo Alto Planning & Community Environment Department Page 2 In addition to these Site and Design Review objectives, PAMC Section 18.28.070 (p) codifies twelve Open Space Development Review Criteria that are applicable to the project. These criteria are also included in Attachment A. While the project does incorporate a variety of measures to be compatible with environmental and ecological objectives of the open space district, staff is concerned that the residence could be perceived as visually intrusive from public roadways and public parklands. Background Project Information Owners: Noa Grant and Guy Gecht Architect: Michael Anglisano; McClean Design Representative: N/A Legal Counsel: N/A Property Information Address: 670 Los Trancos Road Neighborhood: Palo Alto Hills Lot Dimensions & Area: 5.42 acres (235,898 sf) Housing Inventory Site: No Located w/in a Plume: No Protected/Heritage Trees: Yes, protected live and valley oaks are present across the property Historic Resource(s): No Existing Improvement(s): Vacant lot Existing Land Use(s): Vacant lot Adjacent Land Uses & Zoning: North: Arastradero Preserve, Public Facilities (Site and Design Combining) District West: Single Family Residence, Open Space District East: Vacant, Open Space District South: Single Family Residence, Open Space District Special Setbacks: Not applicable Aerial View of Property: City of Palo Alto Planning & Community Environment Department Page 3 Aerial Photograph Source: Google Maps Land Use Designation & Applicable Plans/Guidelines Zoning Designation: Open Space District (OS) Comp. Plan Designation: Open Space / Controlled Development Open Space Development Review Criteria Yes Context-Based Design: Not applicable Downtown Urban Design: Not applicable SOFA II CAP: Not applicable Baylands Master Plan: Not applicable ECR Guidelines ('76 / '02): Not applicable Proximity to Residential Uses or Districts (150'): Not applicable Located w/in AIA (Airport Influence Area): Not applicable City of Palo Alto Planning & Community Environment Department Page 4 Prior City Reviews & Action City Council: Variance 86-V-22, which provides a maximum impervious cover of 15,050 square feet on the subject site PTC: None HRB: None ARB: None Site and Project Description The subject site encompasses 5.42 acres (235,898 square feet) of vacant land currently covered by native grasses and oak forest. The topography varies greatly across the site, with a knoll rising near the southern front property line near the Los Trancos Road frontage. From the top of this knoll, the elevation drops over 100 feet towards the northern rear property line bordering the Arastradero Preserve. The top of knoll and most of the higher areas of the property are covered with grasses, while two large groves of live and valley oaks are located on either side of the property and in the northern, lower elevations. The site is located in the Hewlett Tract, a subdivision encompassing ten building sites of which five have thus far been developed. According to Santa Clara County records, the houses in the subdivision range from 3,344 to 8,911 square feet in floor area, and four of the five houses contain two stories. The applicant proposes to construct a 9,363 square foot two-story residence with a basement, as well as a 1,596 square foot detached guest house. Access to the main residence and guest house would be from a single entrance on Los Trancos Road. The main residence would be situated on the downslope, and would, to some extent, be tucked up against the hillside. The garage and two other single-floor elements totaling approximately 1,915 square feet of the gross floor area of the main residence contain green roofing systems that will support native vegetation, allowing these elements to be integrated with the post-grading contours of the hillside and lending the appearance of a subterranean structure from some vantage points. The guest house will be situated to the western side of the lot, and connected to the main residence by a dirt trail. For zoning purposes, the guest house is considered an accessory structure and use rather than a second dwelling unit due to the absence of a full kitchen with cooking facilities. As of the writing of this report, accessory dwelling units are only permitted in the Open Space District on properties in excess of 10 acres. However, it is understood that minimum lot sizes for accessory dwelling units may be subject to change in the future. The exterior siding materials include stone, plaster, and wood siding with muted colors, and the main elements of the roof would be a black standing seam metal. Development Standards The property is one of ten residential building sites which, in addition to two Common Areas, encompass a subdivision known as the “Hewlett Tract” (“Tract”). At the time that the Hewlett Tract tentative subdivision map was approved by City Council on August 18, 1980, the Open Space District restricted residential density to one dwelling unit for every ten acres, and City of Palo Alto Planning & Community Environment Department Page 5 required a corresponding ten-acre minimum lot size. However, due to the slope constraints present on the land encompassing the 129-acre Tract, the allowable density of the original parcel was transferred to ten clustered building sites ranging from 3.9 to 6.0 acres. The remaining areas of the Tract were then recorded as dedicated common open space areas (owned in common by the owners of the building sites), and another portion of the Tract was dedicated to the City of Palo Alto for parkland. The current code no longer has an explicit maximum residential density in the Open Space District, but does retain the ten acre minimum lot size requirement. When the Hewlett Tract subdivision was approved by the City Council in 1980, the most limiting development standard was a maximum impervious and building coverage standard of 3.5% of site area. As remains the case to the present, this impervious area standard included building coverage, retaining walls, patios, and other impervious areas. To incentivize the clustering concept of the Hewlett Tract, the impervious area allotments from Common Area A and the parkland dedication area were transferred to Common Area B (for a tennis court) and to the building sites. In effect, each of the ten building sites was treated as a 10 acre site for the purpose of applying the maximum allowable coverage, which was 15,246 square feet. Ordinance #3345, passed by the City Council in 1982, amended this standard to require the transfer of impervious coverage from open space-restricted areas of a “subdivision with clustered lots less than 10 acres in size” to the building sites in a proportional manner based on lot size. This code change increased the maximum impervious coverage on the subject site to 17,401 square feet. However, the original design intent with the Hewlett Subdivision had been to allocate equivalent impervious coverage across the ten building sites, and a variance was granted in 1986 to relieve the Hewlett Tract building sites from the proportional impervious requirement in favor of the equivalent impervious allocations that were originally intended. This variance thus provided the subject site with a maximum impervious coverage of 15,050 square feet, subject to revision through Site and Design Review. In 2009, Ordinance #5062 added a maximum Floor Area Ratio (FAR) standard for single family houses proposed in the Open Space District, allowing for a floor area bonus if the majority of native vegetation on the site is retained or replaced. Gross floor area for houses in the Open Space District is calculated using the same inclusion and exclusion methods for single family residential development in the R-1 Zoning Districts. Requested Entitlements, Findings and Purview: The following discretionary applications are being requested and subject to PTC purview: Site and Design: The process for evaluating this type of application is set forth in PAMC 18.30(G). Site and design is intended to provide a review process for development in environmentally and ecologically sensitive areas, including established community areas which may be sensitive to negative aesthetic factors, excessive noise, increased traffic or other disruptions, in order to assure that use and development will be harmonious with other uses in the general vicinity, will be compatible with environmental and ecological objectives, and will be in accord with the Palo Alto Comprehensive Plan. If recommended for approval, the project is forwarded to the City Council for final action City of Palo Alto Planning & Community Environment Department Page 6 of all requested entitlements. Site and design applications are evaluated to specific findings. All findings must be made in the affirmative to approve the project. The findings to approve a site and design application are provided in Attachment A. Analysis1 Views, Neighborhood Setting, and Character The subject property is constrained by the down-sloping grade, which affords views of the Santa Clara Valley while also revealing some direct views of the site from the Arastradero Preserve, including from Meadowlark Trail. The degree of the visibility is somewhat muted by the placement of the main residence below the top of the knoll. However, story poles erected to simulate the building envelopes indicate that the main residence would be silhouetted against the sky from the perspective of the trail below. Additionally, some portions of the second story of the main house would also be visible from Los Trancos Road despite the siting of the house on the north side of the knoll. The project design has taken into account the slope constraints and utilized many strategies for minimizing the potential visual impact by presenting a horizontal orientation to the house, tucking portions of the house into the hillside, and hiding the guest house from the northern perspective. However, the absence of tree cover in the immediate vicinity of the main house leaves it more conspicuous than others in the Hewlett Tract, which contain oak forests along the northern face of the hill that screen the houses along the ridge. This relatively barren landscape on the subject site also limits the efficacy of limiting the total house height to that of the top of the knoll, as the house appears to protrude above the ridge when viewed from below. Commissioners are encouraged to review Attachment A, which contains the findings required to recommend approval of the project to Council. Tree Protection An arborist’s report was prepared with the application, and provides a survey of the species, diameter, and health of the trees in the vicinity of the construction. There are twenty-eight protected live and valley oaks on the property that would form the perimeter of an extended Tree Protection Zone, which would separate the construction activities from the oak and buckeye groves. One valley oak in the center of the site is proposed for removal due to decay and its precarious location near a portion of the home. As mitigation for the removal of the valley oak, ten blue oak trees are proposed to be planted on the perimeter of the property, including six downslope from the main residence. Each of the trees is required to be 6 feet in crown diameter at the time of planting. 1 The information provided in this section is based on analysis prepared by the report author prior to the public hearing. Planning and Transportation Commission in its review of the administrative record and based on public testimony may reach a different conclusion from that presented in this report and may choose to take an alternative action from the recommended action. City of Palo Alto Planning & Community Environment Department Page 7 Zoning Compliance2 A detailed review of the proposed project’s consistency with applicable zoning standards has been performed. A summary table is provided in Attachment B. As proposed, the project complies with all applicable codes, or is seeking through the requested permits permission to deviate from certain code standards, in a manner that is consistent with the Zoning Ordinance. The impervious cover area of 15,089 square feet shown in the project plans would exceed the amount permitted subject to Variance 86-V-22, which provides a maximum of 15,050 square feet for the site. However, it appears as though the water surface of the swimming pool has been included in the impervious calculation unnecessarily (PAMC 18.28.070(m)(6)), and therefore the project is compliant with the maximum impervious cover standard as designed. Consistency with the Comprehensive Plan, Site and Design Findings, and Open Space Development Criteria3 The Comprehensive Plan contains Goals, Policies, and Programs for the Open Space areas of the City. The applicable Comprehensive Plan sections, including the Open Space Development Criteria, are included in Attachment A. The story poles described on the previous page indicate that the house would be visible from certain points in the Arastradero Preserve, and accordingly, staff is concerned with the project’s consistency with the first Development Criterion, which seeks to minimize visual impacts. Additionally, while the project has been designed not to extend above the top of the knoll as suggested by the second Development Criterion, the second story of the house would be silhouetted against the sky when viewed from some locations in the Arastradero Preserve. These two criteria are related to the first Site and Design Review finding regarding the compatibility of uses of adjoining or nearby sites. Images of the site from various perspectives are provided in Attachment F. Additionally, it is anticipated that the applicant will provide a presentation showing the development in context to the surroundings. Environmental Review The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is categorically exempt per Section 15303 of the CEQA Guidelines, which includes but is not limited to the development of one single family residence, or a second dwelling unit in a residential zone, as well as accessory or appurtenant structures including garages, carports, patios, swimming pools, and fences. Staff finds that the development of a single family house and guest house in a residential subdivision in the Open Space, which permits single family use, is substantially similar to the examples included in Section 15303 of the CEQA Guidelines. 2 The Palo Alto Zoning Code is available online: http://www.amlegal.com/codes/client/palo-alto_ca 3 The Palo Alto Comprehensive Plan is available online: http://www.cityofpaloalto.org/gov/topics/projects/landuse/compplan.asp City of Palo Alto Planning & Community Environment Department Page 8 Public Notification, Outreach & Comments The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Palo Alto Weekly on December 23, 2016, which is 19 days in advance of the meeting. Postcard mailing occurred on December 20, 2016, which is 22 days in advance of the meeting. Public Comments As of the writing of this report, three project-related public comments were received and are included with Attachment D. Two comments expressed support for the project. A third comment expressed concerns about the impacts of the house on the views from the Arastradero Preserve from the Acorn Trail, which is situated to the northeast of the site. Alternative Actions In addition to the recommended action, the Planning and Transportation Commission may: 1. Direct staff to prepare a draft Record of Land Use Action recommending approval of the project based on findings that the project is consistent with the Site and Design Objectives and Open Space Development Criteria; 2. Direct staff to prepare a draft Record of Land Use Action recommending denial of the project based on findings that the project is inconsistent with the Site and Design Objectives and Open Space Development Criteria. Report Author & Contact Information PTC4 Liaison & Contact Information Graham Owen, Associate Planner Jonathan Lait, AICP, Assistant Director (650) 329-2552 (650) 329-2679 graham.owen@cityofpaloalto.org jonathan.lait@cityofpaloalto.org 4 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org February 8, 2017 RE: 670 Los Trancos Road, Palo Alto Greetings Jon and Graham, We are pleased with the PTC decision to recommend approval of our home project and are looking forward to presenting our proposed project to the city council. As we listened to the members of the committee deliberate our project, we realized we can improve our project further to address the concerns that were raised in deliberation. We continue to strive to minimize our impact and to do what is right for the environment and our community. Here are the actions we took after the PTC hearing to address these concerns: Concern: Accessory structure appears as a second dwelling unit, to which we are not entitled ➢We never intended for this structure to serve as a second dwelling unit, but rather as a yoga retreat and to host the occasional guest. For that purpose, such structure does not require a kitchen, and therefore we eliminated the ‘kitchenette’ and replaced it with a simple wet bar at the west part of the common space. Concern: Viewshed from the preserve in the short term ➢To expedite the screening effect, we decided to pre-plant the mitigation trees. This would result in the trees being 50% taller 5 years after construction, significantly accelerating the screening effect, as per attached rendering and growth analysis. ➢Because Valley Oaks are faster growing and eventually become larger in scale (see comparison attached) we would select them over the slower growing and smaller overall blue oaks we were considering (blue oaks are still considered in high priority for the south side of the property, in the road cut area where the soil is poor and the screening requirements are lower). ➢We prepared a rendering that shows the screening provided over time, see attached, as voiced by a couple of the commissioners. ➢We intend to reduce the size of the second story area by at least 10% from 2724 to below 2450 sf. In addition, while the level of grading wasn’t brought up as a concern, we are working to reduce it. We intend to submit a new basement plan cutting the basement area by half (dront the current 2200sf), and are considering alternatives that will allow us to raise the building pad by a couple feet. Any changes we propose will, of course, comply with all the rules and regulations and will not further the impact on the adjacent open space. Let us know if there’s any additional information we can provide. Sincerely, Noa Grant and Guy Gecht City of Palo Alto | City Clerk's Office | 3/15/2017 7:48 AM 1 Carnahan, David From:Jean Higgins <jwhiggins27@gmail.com> Sent:Tuesday, March 14, 2017 8:59 PM To:Council, City Cc:Planning Commission Subject:proposed house at 670 Los Trancos Hello We bought our house in Palo Alto 30 years ago, in part because of the wonderful parks and open spaces available to us here. We frequently hike at Foothills Park and the Arastradero Open Space Preserve. We treasure the unobstructed views of the hills as we hike -- the wildflowers, the wildlife, the gorgeous hillsides, the tranquility. The parks help us maintain balance and perspective in our busy lives. I am writing today about a proposed house at 670 Los Trancos. I don't believe that the City of Palo Alto should allow this house to be constructed at this location. There are municipal codes that were written to protect parklands from huge houses like this one. (Actually, I believe that we are talking about two large structures, not just one.) Thousands of times in a year, Palo Alto taxpayers lace up their hiking boots and set off from the parking lot in an attempt to "get away from it all" for a bit. This will become hard for us if the City caves in to this sort of development. Many of our friends and family will be watching to see what you decide to do about the proposed house at 670 Los Trancos. Sincerely, Jean Higgins City of Palo Alto | City Clerk's Office | 3/15/2017 12:48 PM 1 Carnahan, David From:Kim Atkinson <atkinsonkim@pacbell.net> Sent:Wednesday, March 15, 2017 8:48 AM To:Council, City Subject:670 Los Trancos Road Palo Alto Attachments:P1130974.JPG; P1130973.JPG; P1130977.JPG; P1130982.JPG; P1130981.JPG; P1130978.JPG; P1130980.JPG; P1130979.JPG; P1120298.JPG TothePaloAltoCityCouncil,March15,2017 Thankyoufortakingthetimetoreadthissecondletterfrommeconcerningtheproposed developmentat670LosTrancosRoadinPaloAlto.IfirstwrotetothePlanningCommission aboutthisinearlyDecember(withphotos)whenIdiscoveredtheprojectwhilehikingat ArastraderoOpenSpacePreserve.Newinformationhassincecometolight. Thepublichasnothadmuchchancetoseethisprojectastrailsleadinguptothatpartofthe parkhavebeenmuddyandclosedformonths,startinginDecember.Nowthetrailsaredry andfinallyopenagain.Theoriginalredflagsmarkingtheprojecthavefadedtowhite,andare barelyvisibleagainstabrightsky.Fortheseandotherreasons,mostofthepublicisnot awareofthisprojectwith,asIunderstandit,aplannedhouseofover9000squarefeet,plusa 2080squarefootbasement,plusanearly1600squarefootguesthouselabeledan“accessory” building.Thisisagainstcodeonalotunder6acres,andmuchofitisinviewofourpark. Attemptingtoscreenthisdevelopmentwithtreeswillnotwork.Theprojectishuge,buta buildingofanysizecanbeseenthroughtreeswhichtakeyearstomatureandcanbequietly prunedorremovedinthefuture.Treesandshrubsdonothidebuildingsonprominenthilltops. Thisproject,landscapedornot,willcreateablightonthescenicnaturalhilltopofthepark. City of Palo Alto | City Clerk's Office | 3/15/2017 12:48 PM 2 ThisprojectisspecificallyprohibitedbyPaloAltoMunicipalCode18.28.070parts1and2 whichstatethatdevelopmentshouldnotbevisuallyintrusivefromparklands,andmustbe hiddenfromviewandawayfromhilltopsandridgelines.HikerswhoIhavespokenwithabout thisprojectupatArastraderoarepuzzledastowhythecityisentertainingapprovingthisatall. Alotofeyebrowshavebeenraised. Thephotosattachedhere,takenonMarch14,showthevisualimpactthisstructurewill haveonthepark.Thefirstthreephotosweretakenonthehikegoinguptowardstheproposed project,toshowyouthebucolicbeautyofthepark.AsoneapproachesthetopofAcorntrail, thepolesandflagscomeintosight(seephotoswithwhiteflags)andarevisiblefromtrailsall overthetopofthepark.Thefinalphoto,withredflags,isoneIsentyouinDecember.It illustrateshowthecoloroftheflagshasfadedfromredtowhite,andarenowlessvisible. TheproposedprojectwilldonothingtoalleviatethehousingshortageinPaloAlto.Itwill serveasinglefamily,whowouldenjoyararefiedlifestyleofunsurpassedviewsandparkland justouttheirdoor,attheexpenseofthemanymembersofthepublicwhousethispark.If neighborsofthispropertyhavewrittenintosupporttheproject,Iwouldsuggestthattheir motivationsmaynotbeinthepublicinterest.Theresidentsuptherealreadyenjoyinstant accesstothisparkthatwetaxpayersfund. Hundredsofpeoplefromthegeneralpublicenterthisparknearlyeveryday.Theyhike,jog, walktheirdogs,bicycle,horsebackride,fish,watchforbirds,anddophotography.Mostofall, peoplegouptheretorelaxandenjoynatureandgetoutoftownforabit.Peopledonotwant City of Palo Alto | City Clerk's Office | 3/15/2017 12:48 PM 3 tocomefaceͲtoͲfaceatthetopofahillwithabuilding,whentodaythereareonlyskyviews andnaturalgreenhillstolookat. ThereissomethinguniquelybeautifulabouttheopenspaceparkatArastradero,which bordersourequallybeautifulFoothillsPark,thatthecityhadtheforesighttocreateand protectdecadesago.Arastraderoishometoawidevarietyofanimalsinarelativelysmall space,withawildlifedensitynoteasilyseenelsewhere.Additionally,sunlightreflectsthrough thetreebranchesofthispark,radiatingoffthehillsides,inawaysimilartothatofYosemite Valley(seephotos).Thisisnotordinaryopenspaceofmeregrassandtrees.Itisspecialand shouldbeprotected. TheCityCounciliscalledupontopleaserespectthewiselycraftedbuildingcodesofPalo Alto,thatweredesignedtoprotectthewellͲbeingofthecitizenry,withvisionforourfuture andourchildren,andtoupholdwhatisrightforthegoodofthepublic.Thisparkcannotbea privateplaygroundforaluckyfew.Itwouldbeverywrongtoallowabuildingonthishilltop. Anydevelopmentonthisparcelshouldbekeptcompletelyoutofsightoftheparkanditstrails. Now,morethanever,weneedtobeabletocountonourgovernmenttomaketheright decisionsonbehalfofthepeople.Weneedourcitygovernmenttoupholditswiselyconceived guidelinesandcodesthatwerecreatedforthegoodofallresidents.Thankyouforvotingfor whatisright,onbehalfofyourconstituents. KimAtkinson MiddlefieldRoadPaloAlto City of Palo Alto | City Clerk's Office | 3/15/2017 12:49 PM 1 Carnahan, David From:H. Grousbeck <grous@stanford.edu> Sent:Wednesday, March 15, 2017 9:38 AM To:Council, City Cc:Lait, Jonathan; Gitelman, Hillary; Owen, Graham Subject:Fwd: Latest development Dear Members of the Palo Alto City Council: As residents of Palo Alto abutting Arastradero Preserve for the last 30 years, we have been strong advocates of Bay Area open space. For many years I (Susanne) was a member of the POST board of directors. It is against this background that we are writing in support of the Gechts' proposed development at 670 Los Trancos. We will be neighbors 2 lots away when (hopefully) their proposed house is completed. Noa and Guy Gecht have engaged our entire neighborhood in their design process from the very beginning. It is clear that they were determined to spend the time and resources to come up with an organic design that minimizes the impact to the Preserve as well as to the neighborhood. We are very impressed with their thoughtfulness: most of the house is tucked into the knoll, and they placed as much of the construction as possible behind trees. As a result, the facade will be partially visible only from very small sections of the trail paths. We respectfully encourage you to approve this responsible and considerate des ign. Susanne and H. Irving Grousbeck 706 Los Trancos Road From:Jason Hou To:Planning Commission Date:Monday, March 13, 2017 11:38:55 PM Hi- Do you enjoy the open space at Arastradero Preserve As the bay area gets more crowded, preserving open space becomes even more important. Address of property, at top of hill: 670 Los Trancos Palo Alto This house will hurt our hiking views at Arastradero on Meadowlark trail -- The proposed house will unlawfully impede views from our public park -- It is against city code for houses to be built on hilltops in view of parks. -- Property is under 6 acres, and yet illegally plans an additional 2nd house, too ! I oppose 1) Any exemption to Municipal Code to allow building on top of a hill 2) Any exemption to allow an extra dwelling at this site (zoned for a single house) Pei Liu From:Robyn Preising To:Planning Commission; Council, City Subject:670 Los Trancos Date:Monday, March 13, 2017 2:04:37 PM Hello, I am wondering why the City of Palo Alto would even consider permitting this development, which impedes views from Arastradero Park trails. It is clearly against city code for houses tobe built on hilltops in view of parks. Also, an illegal second home is being planned on the property (labeled a garage, but really a house).Please do not approve of this development, which would also set a dangerous precedent. Thank you, Robyn Preising 1142 Byron StPalo Alto 94301 1 Owen, Graham From:Lait, Jonathan Sent:Friday, March 10, 2017 8:38 AM To:Owen, Graham Subject:FW: development near Arastradero Preserve From: Amy Santullo Sent: Thursday, March 09, 2017 3:22 PM To: Planning Commission <Planning.Commission@cityofpaloalto.org> Cc: Council, City <city.council@cityofpaloalto.org> Subject: development near Arastradero Preserve Dear City Leaders, It has recently come to my attention that there is a proposed development plan for 670 Los Trancos Road in Palo Alto that might violate the Palo Alto Municipal Code against building homes in view of public parklands. I am a longtime Palo Alto resident and a regular user of Palo Alto parks and open spaces. I urge all of you to resist any exceptions to the Palo Alto Code and to use conservative interpretations where appropriate in order to preserve the amazing resources that our community has in its parks. There is regularly more and new research coming out about the importance of connecting with nature in green spaces free of disruptions for mental and physical health, especially for those who live in high stress communities like those throughout Silicon Valley. The abundance of green space here is one of the features that makes it possible to achieve a balanced life style. Please don’t jeopardize that for the whole community for the sake of one family. Thank you for your consideration. Amy Santullo 850 Hamilton Ave Palo Alto 1 Owen, Graham From:Lait, Jonathan Sent:Monday, February 27, 2017 2:08 PM To:Gerhardt, Jodie; Owen, Graham Subject:FW: February 27, 2017, Couincil Meeting, Item #8 From: herb Sent: Sunday, February 26, 2017 5:55 PM To: Council, City <city.council@cityofpaloalto.org>; Clerk, City <city.clerk@cityofpaloalto.org> Subject: February 27, 2017, Couincil Meeting, Item #8 Herb Borock P. O. Box 632 Palo Alto, CA 94302 February 26, 2017 Palo Alto City Council 250 Hamilton Avenue Palo Alto, CA 94301 FEBRUARY 27, 2017, CITY COUNCIL MEETING, AGENDA ITEM #8 670 LOS TRANCOS ROAD: SITE AND DESIGN REVIEW Dear City Council: I urge you to reject the Record of Land Use Approval for this Site and Design Application unless the plans delete the second dwelling unit that is prohibited by the site development regulations of the Palo Alto Municipal Code (PAMC). The PAMC has different definitions for "Dwelling Unit", "Dwelling Unit, Second" and "Kitchen". 18.04.030 Definitions (a) Throughout this title the following words and phrases shall have the meanings ascribed in this section. (46) “Dwelling unit” means a room or group of rooms including living, sleeping, eating, cooking, and sanitation/bathing facilities, constituting a separate and independent housekeeping unit, occupied or intended for occupancy on a nontransient basis and having not more than one kitchen. (46.5) “Dwelling unit, second” means a separate and complete dwelling unit, other than and subordinate to the main dwelling unit, whether a part of the same structure or detached, on the same residential lot. 2 (75) “Kitchen” means a room designed, intended or used for cooking and the preparation of food and dishwashing. Kitchen facilities include the presence of major appliances or utility connections and the ability to store, prepare, cook, and cleanup of food and food preparation. If the PAMC definition for Dwelling Unit was supposed to refer to the definition of "Kitchen", it would have included the word "kitchen" instead of the words "eating, cooking". A second dwelling unit in the Open Space District requires a 10-acre site, and is limited to 900 square feet, a floor area limit that must include at least one covered parking space. The project site is only 5.42 acres, has a unit that is 1,596 square feet, without a covered parking space. Sincerely, Herb Borock 1 Owen, Graham From: Sent: To: Cc: Subject: Crawford, Sue Monday, January 09, 2017 6:03 PM Planning Commission Owen, Graham New construction 670 Los Trancos Road Dear Palo Alto Planning Commission, We are writing to express our support for the new home at 670 Los Trancos Road. We have reviewed the plans and are very pleased with the approach being taken. The Gechts have made a tremendous effort to fit the home to the site and follow the Open Space Building Guidelines. They have involved the neighborhood from the beginning and we look forward to having them as neighbors. We encourage the commission to approve the plans. Best regards, Craig Dauchy and Sue Crawford 714 Los Trancos Road Sent from my iPad The information in this electronic mail message is the sender's confidential business and may be legally privileged. It is intended solely for the addressee(s). Access to this internet electronic mail message by anyone else is unauthorized. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it is prohibited and may be unlawful. The sender believes that this E‐mail and any attachments were free of any virus, worm, Trojan horse, and/or malicious code when sent. This message and its attachments could have been infected during transmission. By reading the message and opening any attachments, the recipient accepts full responsibility for taking protective and remedial action about viruses and other defects. The sender's company is not liable for any loss or damage arising in any way from this message or its attachments. Nothing in this email shall be deemed to create a binding contract to purchase/sell real estate. The sender of this email does not have the authority to bind a buyer or seller to a contract via written or verbal communications including, but not limited to, email communications. 1 Owen, Graham From: Sent: To: Subject: Karen Gregory Monday, January 09, 2017 3:54 PM Owen, Graham Strong Support for the Gecht Building Plans at 670 Los Trancos Road Dear Graham Owen and all Palo Alto Planning Commissioners: We are reaching out to you with our strong support of the Gecht family home building plans at 670 Los Trancos Road along the western boundary of Arastradero Preserve. We live at 701 Los Trancos Road, directly across the street from this property. We moved to our home, located between Arastradero Preserve and Foothill Park, in 1993 specifically for the privilege of living in the open space environment with the incredible and abundant wildlife and views of undeveloped land. We love our parks and preserves and support them with our time, energy and advocacy, devoted to keeping them preserved and accessible for the community. All five of our family members are frequent and passionate trail hikers/equestrians who thrive as outdoor enthusiasts. Specifically, Karen is a current Equestrian Patrol Volunteer for SCC and SMC Parks and MROSD, David volunteered for POST and our children have run/hiked regularly each week growing up here. We treasure the gift of open space and all that it entails. As passionate advocates for open space, we are grateful for and pleased with the consideration the Gecht Family gave to our neighborhood and the surrounding community, including visitors to our lovely Arastradero Preserve, in designing and building their new home. Preserve visitors (including our family) enjoy “the view” as part of their park experience, and there is, understandably, regret for any level of development. We believe the Gecht’s intended home design, with their priority for minimizing the impact of their development on wildlife and the natural beauty of the area, will be relatively low profile and respectfully discreet from the park, especially given what could have been built on that pristine and precious site. It is clear that the beauty of this natural area is what drew them to this lot, and they have taken great pains to honor, preserve and prioritize as much as possible the grandeur and natural feel of the land in their home design plans. It is our hope that you will approve the Gecht’s plans for their house. We look forward to having them as our next door neighbors. Sincerely, Karen and David Gregory 701 Los Trancos Road 1 Owen, Graham From: Sent: To: Cc: Subject: Annette Siegel Monday, January 09, 2017 8:23 AM Planning Commission; Owen, Graham Noa; Guy Gecht; Mark Siegel In support of the building at 670 Los Trancos Dear Palo Alto Planning Commission, My husband and I are writing in enthusiastic support of the building project proposed at 670 Los Trancos Rd. by Guy Gecht and Noa Grant. We have been a part of this neighborhood for over 10 years, and love it because of the careful stewardship of the parks provided by the Palo Alto Planning Commission. We are active hikers, and are thankful for the protected parks and wildlife in our area. In this light, we have been nothing but impressed by the careful planning that has taken place on the 670 Los Trancos project. Guy and Noa have very thoughtfully sought to minimize the impact of the proposed house on both the neighborhood and park. Having walked the story poles, it is clear that the house will blend beautifully into its natural surroundings, and the impact on park views will be minimal. We feel that they have really done the best job possible in keeping our natural surroundings beautiful, and would very much like to see such environmentally engaged family become a part of our community. Thanks you for your consideration, Annette and Mark Siegel 720 Los Trancos Rd. From:Allan Alcorn To:Owen, Graham Subject:670 Los Trancos Rd project Date:Thursday, December 29, 2016 2:53:49 PM Dear Sirs and Madam, I am writing this in support of the proposed new home at 670 Los Trancos Rd. I live at 660 Los Trancos Rd directly adjacent to the proposed new home and welcome their project. The lot has beenvacant as long as we have been there and we knew that some day there would be a home built on thatsite. We have examined the plans and are pleased that such a beautiful home is going to be built there. It is clear that significant effort was spent in making the home have as little impact as possible and will fit into the natural environment. I am a frequent visitor to Arastradero Open Space; I walk the trails about once a week and I am very familiar with the views. Compared to the existing structures on the ridge, mine included, that can only be seen from the Martin’s trail I think this building will be less visible and blend in well. Much of thestructure will be hidden by trees and some of it is underground. I support this proposal and look forward to its approval. Sincerely, Allan Alcorn 660 Los Trancos Rd. Portola Valley, CA 94028 From:H. Grousbeck To:Planning Commission; Owen, Graham Subject:Fwd: Happy Holidays! Date:Wednesday, December 28, 2016 12:12:00 PM ---------- Forwarded message ----------From: H. Grousbeck Date: Wed, Dec 28, 2016 at 10:01 AM Subject: Fwd: Happy Holidays!To: "H. Grousbeck" ---------- Forwarded message ----------From: H. Grousbeck Date: Wed, Dec 28, 2016 at 9:59 AM Subject: Fwd: Happy Holidays!To: "H. Grousbeck" ---------- Forwarded message ----------From: H. Grousbeck Date: Wed, Dec 28, 2016 at 9:56 AM Subject: Fwd: Happy Holidays!To: "H. Grousbeck" Dear Palo Alto Planning Commissioners: As residents of Palo Alto abutting Arastradero Preserve for the last 30 years , w e havebeen strong advocates of Bay Area open space . For many years I (Susanne) was a member of the POST board of directors. It is against this background that we are writing in support of the Gechts' proposeddevelopment at 670 Los Trancos. We will be neighbors 2 lots away when (hopefully) theirproposed house is completed. Noa and Guy Gecht have engaged our entire neighborhood in their design process from the very beginning. It is clear that t hey were determined to spend the time and r esources to come up with an organicdesign that minimizes the impact to the Preserve as well as to the neighborhood.We are very impressed with their thoughtfulness: most of the house is tucked intothe knoll, and they placed as much of the construction as possible behind the trees.As a result the facade will be partially visible only from very small sections of thetrail paths. We respectfully encourage you to approve this responsible and considerate design. Kind regards, Susanne and H. Irving Grousbeck 706 Los Trancos Road From:Planning Commission To:Owen, Graham Subject:FW: Please do not allow new construction above Arastradero Preserve Date:Tuesday, December 20, 2016 10:27:04 AM Yolanda M. Cervantes Planning & Community EnvironmentCity of Palo Alto Yolanda.cervantes@cityofpaloalto.org650.329.2404 From: Kim Atkinson Sent: Thursday, December 15, 2016 5:05 PMTo: Planning CommissionCc: Dunn, CurtSubject: Please do not allow new construction above Arastradero Preserve Hello Palo Alto Planning Commission, I am a lifelong resident of Palo Alto, a homeowner, taxpayer, and we have raised our children here. We have supported the public schools, have led a Girl Scout troop, volunteered, and have been good community members. Ie, we have a long-term stake in this place, and hopefully may have a voice ! We are frequent hikers at Arastradero Preserve (as well as at Foothill Park). Recently at Arastradero, while hiking west towards the top of the hill, near a trail junction at the top of Acorn Trail, I noticed red construction marker flags higher up in the direction towards Foothill Park. Apparently a home is planned for construction there. Please see attached photos, taken from the top of Acorn Trail. As I understand it, this planned new house construction is in the 700 block of Los Trancos Road. I would like to oppose this new house construction. It will affect the view of the hills and of the skyline at Arastradero Preserve, when one is hiking uphill and west. A new building there will make the preserve feel more closed in, or hemmed in, whereas now it feels fairly open and natural, with a great sky view above the highest hills. There are a few existing houses in this area, but we are used to them being tucked in low among the trees and don't notice them. They are not very visible the way this new one will be. The preserve is already encircled by a golf course, existing homes, and has an occasionally-audible pump in it near the lake. When we hike up there, it is our chance to "get away" from urban stressors and traffic, and to enjoy nature and wildlife and sky views. If you allow that house to be constructed directly in our sight-line as we climb west up that hill, the natural feel of this wilderness preserve will be spoiled. This house will serve a very priviledged few, at the expense of many people who go up there to enjoy nature. Re Palo Alto's housing shortage-- this single family dwelling will not put a dent in the problem, but will affect many park users. Please do not allow this construction to go forward. Thank you for your time and attention to this letter, Kim Atkinson 1753 Middlefield Road Palo Alto 94301 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Planning & 1 Transportation Commission Action 2 Meeting Agenda: 3 January 11, 2017 4 Council 5 Chambers 250 6 Hamilton Avenue 7 6:00 PM 8 9 10 11 Call to Order / Roll Call: 6:08pm 12 13 Chair Alcheck: Ok, I’d like to call to order the first Planning and Transportation Commission (PTC) 14 of the 2017 year. Why don’t we start with roll call? 15 16 Yolanda Cervantes, Administrative Assistant: Chair Alcheck, Commissioner Gardias, Commissioner 17 Lauing, Commissioner Rosenblum, Commissioner Summa, Vice-Chair Waldfogel. All present. 18 19 Chair Alcheck: Before I open any Oral Communications I want to welcome the newest additions to 20 the PTC. We are, we have everybody is here tonight that is on our Commission, but Ed and Doria 21 welcome. We're still awaiting one more appointment, but we're really happy to have you and 22 both Ed and Doria have a lot of experience working with our City and I think they're going to make 23 great additions to the team. 24 25 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. I also want to acknowledge our amazing Assistant Attorney’s departure, Cara Silver, I just want to 1 say and I think I speak for all of us when I say this; it's really a delight to work with you. You've 2 helped us understand really complex issues and you're literally the most delightful person to 3 engage with and I think your presence will be sorely missed; certainly by us. And your note today 4 was really quite wonderful and very thoughtful and I think we all appreciated what you said. So 5 good luck onward and forward and yes you're still a resident so please come to our meetings since 6 you know how much we love to have guests. 7 8 Oral Communications 9 The public may speak to any item not on the agenda. Three (3) minutes per speaker.1,2 10 11 Chair Alcheck: Ok, with that I'm going to open up Oral Communications. Are there any individuals 12 who would like to speak? We have David Carnahan he’d like to speak for Oral Communications. 13 You have three minutes. 14 15 David Carnahan, Deputy City Clerk: Good evening, Commissioners; David Carnahan, Deputy City 16 Clerk. I'm here tonight for two topics. One of which those of you on the Commission can guess is 17 board and commission recruitment. The City is currently looking to fill one vacant term on the 18 Planning and Transportation Commission (PTC), three terms on the Historic Resources Board 19 (HRB) and a total of five terms on the Parks and Recreation Commission (P&RC). The City is 20 accepting applications with a deadline of 4:30 p.m. on January 27th. Applications can be 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. downloaded from the City's website or we also accept them electronically via DocuSign. I'm going 1 to have a few flyers with this information in the back and Yolanda is going to give you each a flyer. 2 The reason the Clerk's Office comes to board and commission meetings regarding recruitments is 3 because you are community members that have a much greater depth of knowledge of members 4 of the public that would be fantastic people to join you and we have members of the public both 5 here watching and at home. So again looking for folks for the HRB, the P&RC, and the PTC with 6 applications due on January 27th; questions can be directed to the City Clerk's Office 650-329-7 2571. 8 9 And the second order of business I am here to recognize and share the Council's appreciation for 10 the four of you that were not able to make it to the Board and Commission recognition event. So 11 we have the proclamations which I promise I will not read to you right now since I only have 3 12 minutes not 20, but I would just want to recognize and thank Commissioners Alcheck, Lauing, 13 Rosenblum, and Waldfogel. Everyone else’s appreciation and service was appreciated by the 14 Council. So if you give me just one moment I'll grab your gifts and proclamations. Thank you. 15 16 Agenda Changes, Additions, and Deletions 17 The Chair or Commission majority may modify the agenda order to improve meeting management. 18 19 Chair Alcheck: Ok why don't we... are there, staff are there any agenda additions or deletions you 20 want to address at this time? 21 22 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Jonathan Lait, Assistant Director: No. 1 2 City Official Reports 3 4 1. Assistant Director's Report, Meeting Schedule and Assignments 5 6 Chair Alcheck: Ok. Do you want to begin with the Assistant Director’s Report? 7 8 Jonathan Lait, Assistant Director: Sure, just a couple of announcements. First, welcome to the 9 new Commissioners. It’s great to have you on board and joining the Planning and Transportation 10 Commission (PTC). I also wanted to let the Commission know that the City Council will be taking 11 up on January 23rd two item, transportation related items that the prior Commission had 12 reviewed and commented on. It's the Middlefield Road North pilot project and the Evergreen 13 Park/Mayfield Residential Preferential Parking (RPP) program. Those two items will go to the City 14 Council on January 23rd. On January 30th the City Council will also take up the Housing Impact 15 Fee that the Planning Commission had considered. That was pulled off of the Consent Calendar 16 on Monday and has been scheduled for hearing. 17 18 I also wanted to just spend a quick second to say thank you to Cara Silver for her years of service 19 here with the City of Palo Alto. Actually Cara was one of the main reasons why I made the 20 decision to come from Southern California to Northern California knowing that she was here and 21 that I had worked with her in the past and she really gave me some great information about the 22 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. City and the people that we work with and the community and it all sounded wonderful and darn 1 you for leaving now, but it's been a pleasure working with you. And certainly look forward to 2 seeing you in your post city employment. And while saying goodbye to Cara I want to say hello to 3 Albert Yang. He is the Senior Deputy City Attorney with the City Attorney's Office and he'll be 4 joining us indefinitely until there is a another plan or maybe this is the future, we don't know. So 5 Albert’s going to join us and help us out with our reports and he'll be supporting the PTC in the 6 interim. So thank you Cara and thank you Albert. 7 8 Chair Alcheck: So you mentioned the two meetings that are coming up where they're discussing 9 topics we reviewed. 10 11 Mr. Lait: January 23rd, yes. 12 13 Chair Alcheck: Do you anticipate that it would be helpful if we had a Commissioner present? 14 15 Mr. Lait: So I’ve given that some thought. I'd, I think that with the representation on the City 16 Council you probably do have some representation. Of course if there were individual 17 Commissioners that wanted to go and speak on behalf of the Commission that certainly could be 18 an opportunity to do so. I thought with Council Members Fine and Tanaka they might be able to 19 represent the PTC thoughts or at least the dialogue that took place. 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: Yeah. That's probably very accurate. OK well I'll just piggy back on this. I'll take an 1 opportunity to say how about if, if you're looking at the City Official Reports page here you'll see 2 that we have all the months laid out for the year and typically what we do is we assign a 3 Commissioner a month and that Commissioner is responsible to attend the Council meeting, the 4 Council meetings that take place during that month when they're reviewing topics that we 5 reviewed as well so that during those agendized items you can provide some opportunity if they 6 want to ask a question. So why don’t by the it's Wednesday what I'm hoping is that by Friday you 7 guys can email me and let me know which months you would prefer. Give me your top three and 8 if I don't hear from you I'll just assign them to you. So one, two, three like if you really wanted 9 January, February, and March let me know. And for the new Commissioners why don’t you plan 10 on March being the earliest month because the stuff in January and February you wouldn't have 11 participated in. Ok, alright, are we prepared to begin item number two? 12 13 Mr. Lait: Sure just one final announcement. At the moment we don't have anything lined up for 14 your January 25th meeting, that’s your next meeting. The Comprehensive Plan update is 15 something that we would just do it at a regular meeting, your next meeting. The Downtown 16 Parking Management Study is being pushed off. We need to do a bit more work on that. So as it 17 stands right now we're not seeing a need for a meeting, but I'll have a continued conversation 18 with you to see if we want to cancel that meeting. 19 20 Chair Alcheck: Yeah, let's see what happens tonight with Item Number Three. If it's, let's see what 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. happens tonight and see if there's any… if we can't pack an agenda for that date we’ll cancel that 1 meeting. Ok. 2 3 Study Session 4 Public Comment is Permitted. Five (5) minutes per speaker.1,3 5 6 Action Items 7 Public Comment is Permitted. Applicants/Appellant Teams: Fifteen (15) minutes, plus three (3) minutes rebuttal. 8 All others: Five (5) minutes per speaker.1,3 9 10 2. PUBLIC HEARING / QUASI-JUDICIAL MATTER. 670 Los Trancos Road [16PLN-00266]: 11 Site and Design Review to Allow the Construction of a Single Family House and Guest 12 House With a Total of 10,959 Square Feet. Environmental Assessment: Categorically 13 Exempt From the California Environmental Quality Act (CEQA) Pursuant to Guidelines 14 Section 15303 (New Construction or Conversion of Small Structures). Zoning District: 15 OS 16 17 Chair Alcheck: Aright, let's start with Item Number 2 then. Do you want to do disclosures before 18 the staff report or after? Ok if any Member of the Commission has had you know 19 communications with the applicant, I guess the applicant for Item Number 2 would you disclose 20 those at this time? 21 22 Cara Silver, Senior Assistant City Attorney: Actually it's the applicant or any neighbor or other 23 public member. 24 25 Chair Alcheck: Ok. Any disclosure related to this item? Please. 26 27 Commissioner Gardias: So we exchange, I exchange emails with the applicant and received the 28 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. pictures and the presentation that I forwarded to Yolanda and she forwarded to all of you. 1 2 Vice-Chair Waldfogel: Yeah, excuse me, I toured the site to see the story poles and met with the 3 applicant. 4 5 Commissioner Rosenblum: I also had email exchanges and got a presentation also with additional 6 pictures and drawings of the plan. 7 8 Chair Alcheck: Ok, staff do you want to kick it off? 9 10 Graham Owen, Planner: Sure, thank you very much. My name is Graham Owen, I'm a Planner 11 with the City and I've been working with the applicants on the project that is before you today at 12 670 Los Trancos Road. So this is an application for site and design review for a new two-story 13 single family house with a detached guest house and associated site improvements and it would 14 be on the property at 670 Los Trancos Road which is an undeveloped parcel in the Hewlett tract, 15 which is a subdivision that's located between Foothills Park and the Arastradero Preserve. 16 17 So just a little bit about the project in general we're going to be going through or have been going 18 through the site and design review process. And that's a requirement that you have for any sort 19 of development in the open space zoning district for any sort of proposal that proposes more than 20 a 1,000 square feet (sf) of impervious cover or a 1,000 sf of floor area. The site and design review 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. application is taken in by staff and is reviewed by the Planning Commission, Planning and 1 Transportation Commission (PTC) for ultimate recommendation to the City Council. So this 2 application is for a single family house. The main house would be 9,363 sf of gross floor area. 3 That does not include a 2,100 sf of basement area which is excluded. It also includes 1,500, 1,596 4 sf for the guest house which is detached. 5 6 So with the site and design review process the purposes of the site and design review process is to 7 provide a process for evaluating development in environmental or ecologically sensitive areas of 8 the City. The open space zoning district requires it for any sort of residential application as I’ve 9 mentioned. So the Planning Commission's purview is basically to review the site plan and the 10 drawings that are included with the proposal and evaluate whether or not it complies with the 11 site and design review objectives. And there are four site and design review objectives and those 12 are contained in the staff report and they are also included here in the presentation. In addition 13 since site and design review is used throughout the City in specific areas it's a combining district, 14 but in addition to the four site and design review objectives in the site in the open space district 15 you also have 13 open space review criteria and these are essentially the findings that you have to 16 make for site and design review in the open space. Most of these findings have to do with view 17 sheds. They also encourage cutting when it's necessary to fit a proposal in with the natural 18 topography of the land and that also includes provisions for natural building materials so that any 19 sort of development does blend in to the degree possible with the existing surroundings. 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. So here is the site and this is a just an aerial photograph, but the Hewlett tract essentially runs 1 from this site right here to the east along Los Trancos Road and I've included the entire tract here, 2 but this is a it gives you a description of what's going on on the site. This area is high and while 3 the Arastradero Preserve to the north is low. There's about a 100 foot drop from the top of the 4 road to the Arastradero Preserve below. So it is surrounded by other open space zoning as well as 5 residential development. And here's the basic outline of the site. It's a 5.4 acre parcel. The other 6 parcels in the Hewlett tract which encompasses ten building sites range in acreage from about 3.9 7 to about 6 acres. This was done intentionally in 1980 when the subdivision was created. It was 8 originally Bill Hewlett’s land constituted about 100 acres and so at the time you had a 9 development standard that required as as we do today a 10 acre minimum lot size. The idea with 10 the Hewlett tract though was instead of doing a 10 acres across each building site to instead 11 cluster the homes in such a fashion that you could preserve the areas that have higher slopes and 12 are a little bit more environmentally sensitive. So those areas are included mostly in that larger 13 tree canopy over on the to the right of the project that have a higher slope. So those as a result 14 the density for the entire subdivision was transferred to these 10 smaller building sites. 15 16 So here is the site in question. So you have as my arrow is pointing out Los Trancos Road and 17 access to the site would be off of a single driveway. The guest house would have a Hollywood 18 strip that would take you to the site where the guest house is located. Most of the house would 19 be located about midway down the hill and would constitute as I described about 9,300 sf of gross 20 floor area. The guest house would have about 1,500 sf of floor area and it would be surrounded 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. on three sides by an oak forest. The area where the main house is situated is mostly a rolling 1 grassy hillside although there are a couple of other additional value oaks and live oaks there that 2 are present in the vicinity. 3 4 And so here are some drawings that show the elevations of the house. This would be from the I 5 believe the west, the west elevation right here so you could see the garage, it’s a four car garage, 6 as well as the first and second story. One of the interesting things about this proposal is that a 7 good amount of the gross floor area is actually tucked into the hillside. About 1,900 sf or so is 8 tucked into the hillside in a sense that you have the natural topography and with the grading 9 that's proposed for the site the grade would go up to the roof level for the garage and about I 10 think 800 sf of the main house. And that gives the impression that it's subterranean although it 11 does have a green roofing system it's not just grade, it's going to have its own roofing system that 12 has the capacity to have natural vegetation. This would be the northern elevation so the view 13 that you would see from the Arastradero Preserve if you're able to see the entire site. And here 14 the elevations for the guest house which is smaller of course. 15 16 So there are a couple of key issues that we wanted to focus on in our staff reports the most 17 important is the impacts or the potential impacts, views from the Arastradero Preserve which is 18 directly to the north. There are some trails that are in the immediate vicinity and we've taken 19 some photographs of the story poles that were installed on the site to simulate the view of the of 20 the building envelope. The other key issues and this is kind of part and parcel with both the with 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. the views and with the impervious cover that's proposed is the landscaping. In order to have a 1 Floor Area Ratio (FAR) of five percent which is what is proposed on this site the applicant has 2 proposed to restore or maintain 90 percent of the landscaping either by restoring it or excuse me 3 by retaining it in its in its current configuration in the downslope areas and also in the areas that 4 have trees, but then and also in the areas that have been regraded to restore those with natural 5 vegetation. Impervious cover that used to be the more limiting development standard in the 6 open space district, but in I believe 2006 the FAR standard was included as well. And so that's it's 7 important for ecological purposes, environmental purposes, controlling runoff and what we have 8 is about 15,000 sf of impervious cover across the entire site. So we are recommending 9 continuance of this application for the purpose of evaluating the views and we wanted to seek the 10 PTC’s input on the views and with that I'll take any questions that you might have. 11 12 Chair Alcheck: Staff will you remind us after you're finished we're going to allow the applicant to 13 do their presentation and then there will be an opportunity for public comment. We don't have 14 any cards from members of the public who want to comment on this item. Are you guys 15 comfortable with us taking questions after the applicant’s presentation? Ok. Why don’t we do 16 the applicant’s presentation and then that way we can have questions addressed to staff that 17 might be released by the presentation. 18 19 Guy Gecht: Good evening Commissioners. Ok, I got a... 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: Ok. Yeah, you guys have 15 minutes to present. 1 2 Mr. Gecht: Sure, I’ll speak fast. Good evening, Commissioners. Thank you very much for the 3 opportunity to present our project. We’re very passionate about that and so we can talk about it 4 for more than 15 minutes, but we can limit it to 15 minutes. I'm going to talk about just a bit of 5 the background of the project then I’m going to introduce my hardworking team and we're going 6 to present landscape and an architectural. This is a unique project when the landscape actually 7 determined the architecture so we go in kind of reverse order. And then I'm going to spend the 8 rest of the time and really have the topic that they brought up the view from the areas in the 9 preserves that you can see the house. 10 11 In general as you can probably detective fairly tiny accent. My wife and I came from Israel, but 12 our kids were born here in Palo Alto. We've been raising them here. We lived here 25 years and 13 we've very excited about the area. We're passionate about two things: technology and nature 14 and this place is really reflecting that. We’re very excited about can't wait to start to work and 15 move there. It's probably our last house we're going to hopefully grow old there, not too fast, and 16 we have grandkids and we like to do a lot of fundraising so hopefully we'll be [unintelligible] to 17 show people the great view and what we're doing fundraising. The story is that and I see that 18 unfortunately it’s not full scale. Hopefully you can see the rest of it. The story is that as 19 [unintelligible] mentioned this is Bill Hewlett the founder of Palo, the founder of H.P. land and in 20 1980 he entered into an agreement with the, with Palo Alto and California where he donate about 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. one third I think of 150 fifty acres to the parks and then one third became common area to create 1 additional buffer from the parks and then the rest of it the other one third was divided between 2 10 residential properties. Each property got a good view, but still with the buffers from the park. 3 And so Bill was loved nature and worked both the residential nature into this. 4 5 This is the Hewlett tract. As you can see that's not the only residential on the park. We’ll show 6 you I think we worked really hard to make sure that one, ours would be one of the least view from 7 the park. There's no way to have zero visibility of the house from zero percent of the park, but we 8 got pretty close. 9 10 So I'm not going to go too much into this for interest of time. I just want to say that this is more 11 than 18 month’s journey for us. We took we started actually to talk to the City before we bought 12 the property. We took a very serious approach to the code to the 14 design criteria. We worked 13 very closely… we evaluate over 50 different models and types to try to solve the criteria, the 14 neighborhood, the landscape, and our own preference for our house and you can see we actually 15 did hard models for most of those fifties to try to figure out how it works. It was fascinating and 16 we're very happy that we have an opportunity to show you the conclusion of this journey. We 17 also are very thankful to the City, Graham, Dave Dockter, and many other people worked very 18 closely with us again from before we bought it we had many meetings including on the site before 19 we submitted plants. Graham you can feel free to correct me later if you want, but I believe we 20 implemented 100 percent of the City comments so far and tried to move that along so we can get 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. to this opportunity. 1 2 So let me introduce the design team and you can see that we tried to put a team together that 3 will accomplish the ideas that we have. So we have here Paul McClean from McClean Design and 4 Paul has fabulous designs, but one of his… the main reason we picked him is that he does a lot of 5 hillside houses. And in often time we need to take into consideration public viewing. And so 6 actually we hired him after we visit his house that he built a couple of years ago that is facing a 7 preserve on the downhill where he worked the same thing and you can see I think Paul and his 8 team did a great job on this. 9 10 Landscape is really important. It's part of our mitigation, it’s part of the preserve. David Dockter 11 was very passionate about trying to restore to native. The most of the grass today is not native 12 there. And so the Number 1 goal if you go research some of you probably heard the names Paul 13 Kephart give a lot of presentation, presentation on restoration. We brought Paul and Paul will 14 talk in a little bit about all the things we do for restoration. And then we hired and arborist that 15 worked with Palo Alto quite a few times and he did a fabulous job. 16 17 I'm not going to go over all the points here. Just really take away that we tried to do, we put big 18 portion of the house below the ground. Now that's beyond the basement. We're not actually… 19 we counted [this in] FAR. It doesn't consider basement in Palo Alto, but it's below ground. And 20 then we took the rest of the building, a big portion of what's left and put it beyond trees. 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Unfortunately we don't have as many trees right now so the part that's left [unintelligible] we 1 worked really hard to create new trees around the blue [ox or box?] and with the grading to mask 2 as much as possible and you will see that. So let me turn it over to Paul Kephart on the landscape, 3 I'll come back to talk about the view angles in a minute. 4 5 Paul Kephart, Rana Creek Design: Thank you. Good evening, I'm Paul Kephart, I'm a restoration 6 ecologist and landscape architect and our focus here is on working with nature and integrating the 7 site and structure. I'll share with you some of those goals. We've had about 30 years’ experience 8 in this area. I have done grassland restoration on Windy Hill Preserve. We've done view shed 9 analysis and mitigation planting trees on a nearby ridge. We’ve specialized in habitat restoration, 10 sustainable landscapes, and urban ecology. 11 12 Some of these landscape goals that Guy referred to are a reflection of their values. The living roof 13 that integrates the site and structure we're going to use natural materials, focus on impervious 14 surfaces. We have an aggressive tree mitigation program and planting plan for screening the 15 house in the critical view areas. Rana Creek also specializes in in the production of trees and 16 specimen trees and native plants. We have a 30 acre nursery. You've probably seen some of our 17 vegetation recently on the Facebook living roof. 18 19 One of the key design issues for Rana Creek is the water and just how precious potable water is 20 and we're going to employ a strategy of storm water harvesting from the roof scuppers and 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. combined with drought tolerant and native vegetation we're going to take that water store it 1 underground and then deploy it in the summer months when we don't have available water. And 2 this will potentially decrease the potable water needs by 60 percent. And now I'm going to turn it 3 over to Paul McClean and he's going to describe the methodology that was utilized for constraint 4 analysis on the way in which the house was placed and how we came about. 5 6 Paul McClean, McClean Design: Thank you very much. My name is Paul MacLean. I’m the 7 architect for the project. I have Michael Anglisano with me tonight as the project manager. And 8 first of all and thank you all for your time and also thank you for the energy and time you put into 9 your community. 10 11 I'm just going to take you through this diagram here which kind of changes as I click the slides, but 12 as you can see right now we're seeing the whole lot and as we do have five and a half acres I 13 thought it would be useful to spend some time and explain where we located the house and why 14 we had to locate it where we did. So if we move to the next slide this is the setbacks which the 15 City requires which is pretty self-explanatory, but now we're introducing the trees that need to be 16 protected and you can see how that limits the areas we have to work on the site. This blue area is 17 the ridge, ridge line and we're required to be below the ridge line with our structure so that 18 becomes a critical maximum height for anything we do. This area in purple is the very steep part 19 of the lot leading down towards the preserve which is too steep for us to build on in terms of 20 gaining access. And this area in light blue is the area between the street and where we can 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. actually build. We have to utilize a 10 percent driveway slope per the Fire Department so by 1 locating the house essentially to 25 feet building envelope has to be below the ridge line we have 2 to work our way down to that area. And then finally this area in orange is a problem in terms of 3 its steepness, but also its adjacency to the neighbors and potential impact on privacy. 4 5 So it leaves us with three basic areas that we can work with and as you'll see in the design and 6 what you’re presented we’ve utilized those. The one to the left, out to the bottom towards the 7 street we've tucked the guest house in between the trees and then we bridged between the two 8 other areas to locate the house where we can. And our goal with this house is to create a house 9 that's sustainable, but also use a palette of materials that's natural and reflects the palette that 10 you see in the adjacent and landscape. This particular slide is of the single-story part of the home 11 which is in the critical view shed area. We chose to try and locate that in the critical view shed 12 area so that we would minimize the impact from the preserve below. So we were able to take 13 what we're describing is a two-story section further to the left behind the tree where it's not 14 visible from below. And interestingly that's actually the two-story section there as you walk 15 across the top of the garage so it's a bit of a misnomer to call it a two-story structure. It's really 16 integrated as it steps down the hill. 17 18 Apart from the palette of materials using natural materials we want to utilize we tried to make 19 that section of the home that was visible as transparent as possible. If it's transparent on both 20 sides it will become minimal in its impact. And I think I will leave it at that for now and hand it 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. back to Guy to talk about those impacts and the critical view shed a little more. Thank you. 1 2 Mr. Gecht: Thank you both. So I want to talk about the view from the [unintelligible] and just 3 going to give the highlights. We did a lot of research in the last 18 months, but essentially if you 4 look at that because way below the ridge there’s a big portion of the trails is not going to see the 5 house and Foothill Preserve is most of it. So I'm not going to get into this. 6 7 I'm actually going to focus on the area where the some part of the house can be seen. And that’s 8 0.36 miles which is 1.2 percent. So essentially 99 percent of the trails in the parks cannot see any 9 of the house. In that area some parts can see some part of the house and you can see those 10 dotted this is the area where the house is kind of disappearing, part of the house disappearing not 11 just showing because of the mitigation trees that’s already in the park. So that part you can see, 12 the single story part of the house. And we provided you with the way we look at the experience 13 of where you go and how we got to this number of 1654 total yards in the trails as you can see it 14 and we thought about the expenses. 15 16 So to be honest it's not showing a lot of photos where the house has not been seen; I'm going to 17 focus on where it's the most critical part today, where we had to do the most mitigation. So you 18 can see that’s a low mitigation area. You see a small part of the house with the trees we’ll be 19 adding the 10 oak trees and we will be able to mitigate. That's not my concern. This is the really 20 the area where the most we spend the most time because that's the vertical part this is 500 feet 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. where you walk toward the house [unintelligible]. And that's the toughest one to be honest. We 1 spent a lot of time on this and we… wonderful work by Rana Creek and Paul and then with some 2 cuts mitigation I think we really were able to maximize the [shining] and I’ll show you that in the 3 second. I just want to be complete with the neighborhood because that was also very important 4 to us to make sure that we're not infringing on anybody’s privacy. You don't see it that high from 5 people’s houses and I think we're very successful with this; all the neighbors very supportive of 6 this. We kept them in and I think that all told us they saw, they sent you letters in support. 7 8 So back to this notion if you see the trees we’re proposing I can't say where we got to 100 percent 9 invisible house, but this is a rendering from the worst [unintelligible] on this one percent where 10 it’s visible. And that's what the worst situation would be and I think we, we're very happy [at this] 11 and hopefully you will share it with us that we got to really mitigate as much as possible and when 12 the code asked us to minimize we did a lot on minimize in the 18 months of work. 13 14 So this is other houses that we took photos when we were going to preserve our goal was always 15 to be one of the least seen house and also it's important how what percentage of the trails you 16 see it. Obviously we lot of those been seen for much more than one percent. We were clearly 17 out and I think we're very successful at this to be a lot better than the average house in the 18 preserve. So we have what we call the Ten Commandments actually 14 commandments the 19 guideline we achieved all of that, we did not ask for any variance, we accomplished we 20 accommodate every one of the City requests so far and we very appreciate the work that 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. everybody put so far and we’re eager to move forward. We have the window of April to October 1 where you are allowed to do the grading and that's the first thing we have to do here so we 2 hoping we can move forward and do it this year, not delay everything to 2018. Thanks a lot. 3 4 Chair Alcheck: Ok, we have one comment card for Agenda Item 2. Do we want take that now? 5 Yeah, let's take that now. Herb Borock you have three minutes. 6 7 Herb Borock: Thank you and good evening. The project indicates it has a second residential unit 8 called a guest house of over 1,500 sf and I don't see anything in the analysis in the staff report 9 comparing that to the site development regulations. I know that in other zones that are 10 essentially a single family residence which is what this is there is a limit on the size of the second 11 residential unit. As I recall in I guess R-1 and RE it’s 900 sf. And I would think that in the site 12 development regulations for the OS zone that there would also be a size limit, but I don't recall 13 since I don't see anything in the table of conformance or compliance with that to indicate what it 14 is. Instead it’s just adding up the structures the way it would if it was a garage or a barn or a silo 15 rather than a residence unit which may have a separate allowable floor area in it. 16 17 The one thing they noticed as I recall and that when this site was, when the subdivision was 18 created we had the same rules that we have now which is that subdivisions of four or more lots 19 are required to cluster them and that's why we've got this, this arrangement in terms of the 20 transfer of development potential from the common open space area. And I see that the 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. recommendation is to continue it and I think it would be helpful to do that so that you could 1 actually see site views from high points in trails. It's unclear from what's provided in the staff 2 report it looks to be taken from roads and doesn't indicate you have viewpoints from the trails 3 within the Arastradero Preserve there are some places even Foothills Park such as… there's a high 4 point off of one of the trails like a little ridge line to that also could look down, but I think it's 5 mainly from the Arastradero Preserve. Thank you. 6 7 Chair Alcheck: Ok, staff do you want to quickly respond to the any of those assertions before we 8 get started? 9 10 Mr. Owen: Yes I would. So the guest house is not considered an Accessory Dwelling Unit (ADU). 11 The reason for that is that it doesn't have a kitchen with an oven. So it's not considered an ADU, 12 dwelling unit is living, sleeping, and eating and that requires the kitchen. 13 14 Chair Alcheck: Great. Ok. 15 16 Mr. Owen: And it does conform to the code. We don't have a specification in the code saying that 17 you can't have a guest house in the open space. It's actually quite common. 18 19 Chair Alcheck: Ok. Ok, what I'd like to do now Commissioners is sort of combine our question and 20 comments. Why don't we start on this side and we’ll just go down and if we need to go two 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. rounds we can. 1 2 Commissioner Rosenblum: Yeah, I’m going to be pretty lightweight because I think that the 3 applicant and team have done a really nice job in working with their neighbors being very 4 systematic about matching each of their efforts against each of the requirements, the 14 5 commandments so to speak. I want to ask the City are there any outstanding concerns 6 whatsoever? I didn't see anything highlighted in the staff report around things that remain to be 7 done from the City's recommendations, but I want to give you a chance to bring up anything that 8 is remaining. 9 10 Mr. Owen: When we developed the staff report we were the real reason for the continuance was 11 the views, the impact from the Arastradero Preserve. I went out with another staff member took 12 photos and I have some of the photos here today from the Arastradero Preserve if you’d like to 13 see them. And when we went to the Meadowlark Trail in particular we noticed that it's a visible, 14 it's a visible site. The story poles indicated that it would be silhouetted against the sky. Obviously 15 one of the things that you can't see now is the trees that we would be planted. I believe that 16 they're proposing 10 trees to mitigate the loss of 1 that's going to be cut and it's dying and 17 diseased. We have an arborist report for that. And so that's one of the things that we weren't 18 100 percent on is what is the impact going to be once the trees are there because it's as it is it's a 19 grassy knoll. It doesn't have the benefit that some of the other sites in the Hewlett tract have 20 which is established [unintelligible] basically. 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Rosenblum: Yeah so I'm, I appreciate that comment because I think as a PTC body 2 the reason that you have us have to look over these things is that the subjectivity I think is largely 3 in how you perceive the view and how disruptive it is and how mitigated it is. And other things I 4 think are more... it's an easier standard to measure whether or not they preserve trees of certain 5 diameter or whether or not they adhered to the recommendations of the arborist, whether or not 6 the water use requirement is excessive, etcetera. But this is the one, is it a disruptive view? And 7 based on the report and based on all of our enjoyment of the open space it seems like the 8 applicant has done a very good job and if the views represented in the presentation are 9 representative of what you would get in the worst case on the Meadowlark Trail then as a hiker 10 myself I would be comfortable with that especially given the existing houses, but I wanted to ask. 11 So it seems like the City spent their time mostly on the view and view mitigation so I appreciate 12 that. I have no further questions. 13 14 Commissioner Summa: Hi, well I wanted to thank everyone for the presentation and it looks like 15 you put a lot of thought into restoration, retention of landscape, and also this specific sighting of 16 the structures on the house. That being said I did appreciate that staff still had some reservations 17 about the views so I just want to make that comment. I'm kind of confused about the second 18 unit. It says in the staff report on packet Page 10 that a second unit is only permitted in the open 19 space district on properties in excess of 10 acres. So I don't think… well how big is the 20 kitchenette? So it looked like it was like fourteen by maybe six or seven or eight feet. Because I 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. mean I don't think the oven is a significant issue that would mitigate whether or not it's meeting 1 that requirement. So and I'm not sure how staff would recommend dealing with that. 2 3 I also had a question about the changes the ordinance and variance changes since the subdivision 4 was made and I'd like staff’s advice on this. Would a new subdivision have to be submitted and 5 approved because of the two ordinance changes 3345 and 5062 I think and the one variance 6 which was just I think two years after the subdivision. So that's something I'd like advice on. That 7 being said I mean since we do allow buildings here I understand that may not be 100 percent 8 possible to mitigate the view and I really appreciate the outreach of the neighbors; however, it's 9 not the neighbors I'm as concerned about it's people who don't have the benefit of living in an 10 open, beautiful open space area like that who live in a more urban area and need to use the park. 11 I think a lot of people in Palo Alto appreciate that we have stricter requirements than some of the 12 neighboring communities to preserve views. So I wouldn't mind being more convinced that the 13 views were being, weren't going to be impacted too much. 14 15 So oh the other thing I wanted to say I wanted to make sure that the tree that was being removed 16 I think it's a valley oak or white oak so it wasn't susceptible to Sudden Oak Death (SOD), but I just 17 wanted to make sure that that's accurate and that any tree material that was infested with that 18 would not be removed from the site. So that was just a comment I wanted to make and let me 19 see... did you, do you have the exact dimensions of the kitchenette by any chance? 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Jonathan Lait, Assistant Director: Looks like it’s 19 by 9 feet the kitchenette? 1 2 Mr. Owen: Correct, yeah it's 13 by 9. It's 13 by 9 so… 3 4 Commissioner Summa: Ok, so I guess I would still need to be convinced that an oven was really 5 going to change that, but from being a full kitchen. 6 7 Mr. Lait: So if I may Chair? One of the… one of things that we use for our guidance on whether we 8 would classify this as a second dwelling unit is the definition of a dwelling unit in the zoning code 9 and the I'll just restate or I’ll state what the definition says. It's in [Chapter 1804030 number 46], 10 dwelling unit means a room or group of rooms including living, sleeping, eating, cooking, and 11 sanitation/bathing facilities constituting a separate and independent housekeeping unit occupied 12 or intended for occupancy on a non-transient basis and having not more than one kitchen. So 13 when we look at the floor plan for the second, for the accessory structure it checks I would say 14 most of those boxes, but the one that it doesn't check is the ability to have independent cooking 15 without the range or without the stove that's a function of the cooking part of it. So in the past 16 what we've done consistently is you can have a kitchenette, you can have a wet bar and a sink, 17 you might even have a microwave in there, but if it doesn't have an oven or a stove component 18 we've not considered that a dwelling unit. And so the Commission may have some thoughts 19 about that, but that's what went into our and has gone into our thought process previously. 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: Ok, thank you staff. You know an interesting side point you can't get a mortgage if 1 there isn't a range and like a stove. You need a construction loan. So I'm satisfied with that 2 definition. So I won't I’m just going to cut to the chase; would you mind putting the slide up with 3 the criteria that we need to review? That's number three on the staff presentation. 4 5 While you're doing that I'll just say that I think that this satisfies all 4 of the criteria and all 13 of 6 the open space review criteria. To my fellow Commissioners the objective is not invisibility it's to 7 minimize visibility. And that's a really tough balancing act. It's almost laughable that slide that 8 shows all the different complexities of the property and the three spots that you guys can build 9 on. It's almost like it's almost funny if it wasn't potentially so costly. I think some of the things we 10 heard tonight are sound very cutting edge and I think it's worth sort of recognizing that those the 11 implementation of let's say the water recycling process. I mean these are things that only the 12 most fortunate of homeowners get to really implement and they stand as sort of as a guideline for 13 people all over the country when they have an opportunity to develop something and how can 14 they make it more friendly to the environment your average homeowner will never expend the 15 funds necessary to recapture water the way that you're considering. And I want to applaud you in 16 that effort for doing that because it's not entirely clear how much of that you would be required 17 to do. 18 19 So again I'll just say that I found that the four criteria were satisfied. I will, I'm prepared to 20 support a Motion that recommends that we that this project be approved with basically standard 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. development conditions that we typically incorporate into… I know that we don't have in this 1 packet those standard development conditions, but they're pretty straightforward and they get 2 incorporated into most of our open space reviews. It's worth noting that as a Commission we 3 typically don't review this. We don't frequently review projects like this maybe once a year, 4 maybe once every two years we get a project in the open space. So it's not something that we do 5 very often, but the development conditions are typically pretty standard and even though we 6 don't have them here tonight I'm comfortable moving this forward with the incorporation of 7 standard conditions without having to bring it back to the Commission. But I'll let my other 8 Commissioners sort of opine on whether or not they feel that the criteria up on the on the board 9 is needs greater mitigation. 10 11 And then I'll just say that I interpreted the staff report as just being a little gun shy. I feel like 12 everything's there and you want a little bit more time to say yes. And I'm guessing the applicant 13 wants to get started in April because they probably have from April to October to do their grading 14 before they probably can't grade based on the grading limitations in the City. And so their 15 timeline is I'm guessing, but you can let me know if that's true. Yeah. So considering that they've 16 been in this process for a long time I'm hoping that we can make this, we can be efficient with our 17 time. Ok, Asher would you like continue? 18 19 Vice-Chair Waldfogel: Yeah, just a couple of quick comments. I also want to thank the applicant 20 and the team for a careful, thoughtful, analytical process. I do actually want to thank staff for 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. bringing this forward in this way because there is a judgment call here and I'm glad that you raised 1 the judgment call and brought it to us. I am in agreement with my several of my colleagues in 2 supporting this moving it forward with standard conditions. I would like projects like this to come 3 to us sooner in the process in the future if that's possible, but I won't stand in the way of this one 4 kind of given where it is in the process. 5 6 Commissioner Lauing: Ok, thank you. This definitely did not come to this Commission half-baked. 7 It was very well baked and very well prepared. It is a very large structure so what comes to mind 8 is if this were continued and you were asked to do something a little bit different to make it even 9 better in conformance if there are contingency plans as to what would happen. I mean the 10 obvious thing would be to make it smaller than almost 15,000 fifteen thousand sf of living space 11 including the basement. Another thing that obviously comes to mind is that we could say you 12 have to put up big trees not small trees because it takes a long time for trees to grow. So there 13 should be, could be some specification on that one. 14 15 The question maybe to the staff in general is do we think that we would might want some more 16 public comment on this? Would this be a reason to continue it? I don't see a lot of cards tonight, 17 right? 18 19 Mr. Lait: Yeah I would say to that point we don't typically get a lot of public comment on open 20 space homes in the hillside. It's 600 foot radius and that usually encompasses only a few 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. properties in the area. We did provide notice to Portola Valley as there might be some trucking 1 routes through that City. We've advised them. We did the standard mailing. We posted on the 2 website and posted it on paper. It's not the lack of public participation which at least from our 3 perspective would be the reason to push the item forward. It's more of the Commission's 4 deliberation and whether or not you would feel like you would need some more information 5 because we believe that we've got it adequately noticed. We certainly have done it in compliance 6 with the code and then some. 7 8 Commissioner Lauing: Ok. I think of all the criteria the one in the Comprehensive Plan that is 9 going to be a gray area or subjective area as you said is this issue of is it low intensity 10 development enough. But that's a sliding scale that's not put together with 14 criteria. So that's 11 where the whole size of the project is the question that comes to mind and the size of the 12 landscaping to obscure some of that. I do want to just underscore what one other Commissioner 13 said which is that is the citizens even more so than the neighbors and there's only so much open 14 space granting that there are other houses there. So it's not like it's an empty canvas that you're 15 putting the first structure in place. 16 17 The… and I just I do think that the particularly the mitigation plan on tree protection is very well 18 done. So I'm cautious on these kinds of things because it's huge. So it's kind of borderline to me 19 in terms of what you think might be the right thing to do, but if it's just to get our opinion as 20 opposed to the public opinion then I could be persuaded to support moving forward. 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Lait: And just if I can just clarify that point? We certainly value and welcome the public's 2 opinion. There is an opportunity and a forum for that and you just had it with your when you 3 open up the public hearing you heard from Herb Borock and some of the comment letters that 4 have come in. So it's not that we're just interested in it's the Commission that makes that gives 5 the recommendations that would that's what we move on, but obviously there is the public input 6 that is valuable to the Commission and its deliberation. 7 8 Commissioner Lauing: And just a follow up on one of my own questions; is it would be possible to 9 specify the size of the landscaping when it went in? 10 11 Mr. Lait: That is within the Commission's discretion. We would probably want to and maybe you 12 already understand what size options are available. 13 14 Mr. Owen: In terms of the amount that needs to be restored and/or to remain in order to have 15 the FAR that they're requesting they need to restore or retain in its natural state 90 percent of the 16 lot. And so what they've proposed in the landscaping plans conforms to that requirement. 17 18 Mr. Lait: What about size trees? 19 20 Mr. Owen: The size of the trees we do have standard conditions of approval for mitigating the loss 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. of a tree. We have a replacement ratio that adheres to a tree technical manual that is City policy. 1 I believe that the current (interrupted) 2 3 Commissioner Lauing: It's very minimal. I think it's very minimal, the master plan, Forest Master 4 Plan. 5 6 Mr. Owen: Ok, so and that was what I was going to get to is that I believe that the mitigation 7 requirement that Dave Dockter had recommended is above and beyond what is standard 8 [foresee] for the replacement for the one tree that's being removed. 9 10 Commissioner Lauing: I see. Ok, thanks. 11 12 Mr. Lait: And again Dave Dockter is the City is one of a is a member of the City's Urban Forestry 13 Division and if the Commission felt that additional because the findings that you need to make if 14 additional landscaping were warranted or larger specimen trees if available could be established 15 that's within your discretion. 16 17 Chair Alcheck: Excuse me. Just to be clear is Dave Dockter’s above and beyond recommendation 18 incorporated into the plan as is? 19 20 Mr. Owen: Yes it is. 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Chair Alcheck: Ok, Commissioner Gardias. 2 3 Commissioner Gardias: Thank you. So I'd like to have this conversation more… I mean between 4 this different parties I will have different questions so, but let me start with this, right? We talk 5 about this in the past and before I just get to it, Cara we’ll truly miss you, right? So if you just 6 want to come into another session we’ll accommodate you and I don't know how we can move 7 forward without you. I mean probably we should shut down for one year or maybe you're going 8 to consider another position so. 9 10 But just remind me we had this conversation when we reviewed prior Los Trancos development 11 and I asked this question if this goes to Architectural Review Board (ARB) and I believe it does not, 12 right? There reasons that I'm saying this and I'm just bringing this again I think that with the 13 whole respect to the seniority of my colleagues on this Commission I think that the process is 14 broken because this Commission is not equipped with the knowledge and with the process of 15 looking into the projects like this. So my recommendation is that we need to change the 16 municipal code to either have additional review by ARB to address some other items that are out 17 of our purview or just remove it totally out of our hands. Currently it's a mixture of the because 18 there is a traffic impact, but you have also visibility, some privacy, aesthetics so it's just not a disco 19 mission. It's and it's a purview of the other Commissions. So I think we need to add it to our 20 omnibus or some other items that would allow us to correct this process. 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 So with saying this let me just get to the, to this project. So as I said I have a couple of questions 2 that are to staff and to the applicant and before I get them thank you very much to the applicant 3 for just preparing a presentation and just making this additional effort to provide us with 4 additional pictures of the site, of the stakeout from the trails. I appreciate this. Thank you. 5 6 So now let's get to some detailed questions and they will be coming from random items, from 7 random areas. So the Number 1 is that there is a portion of the building that's underground that's 8 beyond the roof parameter. Does this area count toward impervious area square footage? 9 10 Mr. Owen: Which area in particular are you referencing? Because the garage does count towards 11 the gross floor area and the portion (interrupted) 12 13 Commissioner Gardias: I’m not talking about the, not talking about the gross floor area, I'm talking 14 about the impervious area. There is a portion underground portion of the building so that is 15 beyond that parameter of the story that's above it. I don't know what is that because the plans 16 are not maybe labeled readably or at least I couldn't read them, but (interrupted) 17 18 Mr. Owen: Can you tell us the page number that you’re on? 19 20 Chair Alcheck: I haven't closed the public hearing. Does it make sense to invite the applicant up 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. and help bring clarity to this? 1 2 Mr. Lait: Absolutely. That's you’re certainly welcome to do that. 3 4 Chair Alcheck: Ok. Do you guys want to sort of approach the podium and provide clarity on any of 5 Commissioner Gardias’ questions? 6 7 Mr. Owen: Are you referring to the garage that is buried? 8 9 Commissioner Gardias: Yes, there is a portion of the building that's underground and my 10 apologies I should have marked this on the plan, but I recognize that there is a clear portion of the 11 building that is beyond the walls of this structure super… that's on top of this. It just goes beyond 12 that the parameter. 13 14 Mr. Kephart: Yeah, I think I can address that. That's the area above the garage and that has two 15 to two and a half feet of soil on top of it and it's blended into the natural landscape and it's 16 completely pervious in its nature. 17 18 Commissioner Gardias: So it doesn't count to the impervious… I understand because you have the 19 management of the water, right, and so this is living roof from your perspective so, but it doesn't 20 count toward the impervious area because of this fact. 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Kephart: Correct. 2 3 Mr. Lait: So staff has I think a different take on it. 4 5 Mr. Owen: My understanding was that the garage area did count towards the impervious, oh 6 excuse me, pervious. I'm sorry. Sometimes I get them mixed up. 7 8 Commissioner Gardias: Ok, so pervious. So yeah, so there is a limitation of the impervious area. 9 So I’m asking about impervious area not the pervious area. 10 11 Mr. Owen: So the garage area and the other below grade area that have soil on them would be 12 pervious. 13 14 Commissioner Gardias: Would be pervious, ok. So doesn't count toward the impervious area. 15 And where does the water drain from that area? 16 17 Mr. Kephart: That living roof the growing media will attenuate 60 percent of all rainfall during 18 peak flows and then the rest of the water will be collected in the below ground cistern so they'll 19 be a zero runoff condition. 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Gardias: Ok, but from that portion of the garage that’s buried where does the 1 water drain to? 2 3 Mr. Kephart: Into the cistern. 4 5 Commissioner Gardias: So there are some drains, area drains that collect the water from 6 (interrupted) 7 8 Mr. Kephart: Absolutely, yeah. 9 10 Commissioner Gardias: Ok. 11 12 Mr. Kephart: But 60 percent of all the rainfall that falls on that site will be adsorbed into the 13 growing media during peak flows and then the remainder will go into our cistern for reuse. 14 15 Commissioner Gardias: So you collect 40 percent. So let's talk about water for a moment, right? 16 So you collect 40 percent you retain 40 percent on the site. You allow runoff along the existing 17 run off areas of 60 percent of that water. How does this when you work on this you must of asked 18 yourself a question how this compares with the natural soil saturation and the runoff. How much 19 this site retains currently when you compare it to your residence, to your project, sorry. 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Kephart: Well we don't have a baseline as yet, but the idea is to create topography and 1 topographic relief, use best management practices such as bio swells and rock line channels. 2 We’ll want to infiltrate as much of the water as we can. We've also matched the contours and 3 drain lines, natural drainage patterns on the site so that we're going to minimize runoff 4 completely on the site. 5 6 Commissioner Gardias: I understand. The reason why I asked this question is because not like the 7 flat area of Palo Alto where we can where we would have a propensity to retain the water 8 because this is the water that belongs to that lot here you have a natural run off. So somebody 9 may raise an argument that this is not your water, right? You retain portion of it, but the question 10 is does the portion of the water that you retain would be same or similar to the portion retained 11 naturally? 12 13 Mr. Kephart: Absolutely and it's retained during short duration high frequency events. 14 15 Commissioner Gardias: And then what the water is used for landscaping? 16 17 Mr. Kephart: Reused in the landscape or returned to the natural topography and allowed to run 18 off. 19 20 Commissioner Gardias: I see. Ok, thank you very much. If you don't mind I have since you’re 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. there, right, I have a question about the spreader. I think that this is your design. 1 2 Mr. Kephart: About which? 3 4 Commissioner Gardias: I can tell you which spreader I’m looking for this is the one that’s on the 5 northern portion of the lot where the [feel/fill?] occurs and this is on Page… this is on Page [a C 6 2.0]. 7 8 Mr. Kephart: Ok let me reference it. I'll have to take a look. 9 10 Commissioner Gardias: Ok, so yeah so please take a look at this. [C.2] you have two spreaders 11 that are on the north end of the field. 12 13 Mr. Kephart: [Unintelligible – off microphone] 14 15 Commissioner Gardias: So when you have a front when you have a most northern part of the 16 building, of the residence, that extends with the I think that it extends with the flat area or just or 17 some area that extends with a field and at the bottom of the field there are two spreaders as they 18 should have been there. And then my question is about is I couldn't (interrupted). These two, 19 this one and these two. Ok? So my question relates to the water run off management. I didn't 20 see on the landscape drawings any swales or any landscaping that would work in tandem with the 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. spreader. 1 2 Mr. Kephart: I understand what you’re saying, yeah. Those will be infiltration or slope 3 interrupters and that water will go down into a swale and then vegetation will be planted within 4 those areas. 5 6 Commissioner Gardias: Ok. So I couldn't observe it on the drawing so maybe it will be there or 7 just or maybe I missed it so. 8 9 Mr. Kephart: As our landscape plans are developed all those details will be developed as well. 10 11 Commissioner Gardias: Ok, so they're not there yet, but I have your word that they will be there? 12 13 Mr. Kephart: Oh yeah, absolutely. 14 15 Commissioner Gardias: Very good. Thank you very much. And then just a comment, right, but it's 16 please don't take it personally. It's just about the quality. When we look at the plans like this 17 we… the plans are more finished. Some of the drawings here they look like they are still work in 18 progress. And then when I was looking at the civil drawings some information about the water 19 run off that the slopes and the treatment of the water specifically that the drains of the access 20 road it's not information it's not there. So because to fulfill our mandate we need to have this 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. information to make sure that this is done properly because sometimes the design is not up to the 1 standards, but I'm just raising this question because I know that staff is noting this and I hope that 2 they will look after those civil drawings to make sure that water management is done properly. 3 4 Mr. Kephart: Ok, I'll talk to the civil engineer about those specific requests. 5 6 Commissioner Gardias: Thank you. And another question is about the soil management. I don't 7 know who can answer this. What's the soil (interrupted) 8 9 Mr. Kephart: Oh soil. Sure, erosion controls and (interrupted) 10 11 Commissioner Gardias: No, no. This is about the soil management. So you’ve had to get to build 12 this beautiful structure you excavate and then you fill. How much of the soil that's on this lot will 13 go to the waste, how much would be retained on the site? 14 15 Mr. Kephart: I don't have the, do you have it? Ok. But our strategy is to harvest the top six inches 16 of the topsoil of course and retain that to put back on the site because that's where most of the 17 seed bank is and the fertility. That's part of the soil management plan and I believe the 18 calculations are on the drawings for the cut and fill balance. 19 20 Commissioner Gardias: Ok. So just a quick question; so how much soil would be taken away from 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. the site? 1 2 Mr. Kephart: Like I said the cut and fill calculations are on the drawings. 3 4 Commissioner Gardias: Oh, they are there? Just the number please, yeah. One number. 5 6 Mr. Gecht: So the natural thing of the cutting they allow for the mitigation and be below the 7 range, it’s probably going to be somewhere in the 12,000 to 14,000 cubic foot. We’re still trying 8 to work it down because it’s expensive to get it out, but that's what you need to do in order to 9 bring the entire house below the ridge which is the what the 14 commandments of the open 10 space. 11 12 If I may just 10 seconds there was a question about public notice which was very important 13 question. The code that requires the two weeks of story [boarding] we actually did six and for a 14 variety of reasons. And so I think it's also speak to the fact that six weeks it's out there and if it 15 was too big a problem you probably would have heard much more. 16 17 Commissioner Gardias: Ok, thank you. Let me see if I have any other questions. 18 19 Chair Alcheck: While you're thinking I just want to reiterate something and staff, correct me if I'm 20 wrong, but in this site and design review stage the applicant hasn't submitted any of their plans to 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. the Building Department yet. And so I think it's important for us to just all be aware that the next 1 step for them once they're completed with this process is to prepare their themselves for that 2 submittal and bringing themselves into compliance with all the requirements of the Building 3 Department; for example, with respect to grading and some of the drainage questions that you're 4 discussing right now. So for example, whether I don't know that you have a civil engineer yet, but 5 they have a civil engineer. The next step will be to prepare civil engineering plans that not only 6 the Building Department will review, but they have to approve and sometimes there's a back and 7 forth. 8 9 So elements of the current plan that you're reviewing that may seem unfinished are 10 understandably unfinished because they have to get through this process before they can prepare 11 those finalized plans. And preparing finalize plans at this stage would potentially be redundant if 12 for example you felt that the site was located in a place that didn't satisfy our requirements and 13 then they had to move it then they would be essentially creating a second set of finalized plans. 14 So anything that you see unfinished doesn't necessarily suggest that it won’t comply with the 15 code as it's written it just hasn't, they haven't taken it to that stage yet. And they will still be 16 subject to all the requirements of our current building process. I just want to make sure that 17 we’re all aware of that. Ok. 18 19 Commissioner Gardias: Alright just for the record I want to disagree with this comment because if 20 there is information not provided to us we just cannot relate to it. So it's not about not having 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. trust in the process, but we need to receive the information like we would receive on another 1 project. So that's I think it's a normal submittal and review process and that's the only thing I was 2 looking to this because the projects come to us at a different quality levels. Sometimes they are 3 better. Sometimes they are not up to the code. I just I said clearly that I entrust staff just to 4 follow on this process, but I just wanted to make the architect and designer aware as they may 5 come back to us another time. But also staff may be in the position to enforce the quality of the 6 submittals. 7 8 So I have another question may I? So in terms of the now it's to staff so we have new regulations 9 about the basement dewatering. Does those regulations apply to the in the to this Los Trancos 10 area? And will there be any dewatering for this site? 11 12 Mr. Owen: I don't know the answer to that question. I would (interrupted) 13 14 Mr. Lait: So yeah, if there was dewatering required it would be subject to the City’s dewatering 15 requirements. I’d be very surprised if dewatering was required as part of this development. 16 17 Commissioner Gardias: There will be no dewatering? Can you confirm this? 18 19 Chair Alcheck: No I don't think he can confirm it. I think what he's suggesting is that he would be 20 very surprised and the reason why is because it’s at the top of the hill. And so typically the 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. dewatering regulations apply if for example their grading consultant or there earth soils 1 consultant determines that there’s water at a level that their structure would potentially I think 2 it's what is it, seven feet with? I don't know what the criteria is, but they dig and if the water table 3 exists at a height where they will reach then they'll have to create a dewatering plan. And correct 4 me if I’m wrong that would only be determined at the time that they submit their plans to the 5 Building Department or how would that work? 6 7 Mr. Lait: We typically discover that during this phase. We do send the plans to other departments 8 for review and comment that we would probably get back from Public Works is A) you’re near the 9 flood zone or you're in the flood zone or you're near the flood plain and dewatering it would be 10 anticipated and there are these regulations that apply. 11 12 Chair Alcheck: Right. 13 14 Mr. Lait: I’ll look to Graham. I don't we don't have any of those comments in the record from our 15 Public Works Department for this property 670 Los Trancos. 16 17 Chair Alcheck: Ok. 18 19 Mr. Owen: With the standard conditions of approval for any sort of residential development with 20 a basement you'll have a standard condition of a dewatering plan just in case there is ground 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. water that's penetrated when you get to the basement. 1 2 Chair Alcheck: Ok. So there's a failsafe. 3 4 Commissioner Gardias: Otherwise thank you very much. 5 6 Chair Alcheck: Ok, I have a light from, sorry hold on a second, from Commissioner Rosenblum. Go 7 ahead. 8 9 Commissioner Rosenblum: Yeah just briefly because we've had a long discussion. I appreciate 10 Commissioner Gardias doing the due diligence on this, but I would argue that a lot of the 11 questions are outside of what our purview is which is pretty clearly stated. And I think it's useful 12 to link each area of our concern to a specific area that's called out in our PTC purview. And so this 13 is with regards to the quality of design I think it's important to look at what stage things are 14 coming to us. Commissioner or Vice-Chair Waldfogel made the point that he'd like to see this 15 coming even earlier. 16 17 So this is much earlier than many other things that come before the PTC. It's a much different 18 kind of project. It gets captured and brought before us because of its situation in the open space 19 and therefore we're seeing it at such an early stage to basically make sure that this that the sight 20 lines for the users of the parks are not disturbed. And I think that's almost the main purpose for 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. us as an advocate for the residents of Palo Alto to make sure their enjoyment of the open space is 1 not disturbed. And so to the extent that they meet the other statutory requirements around the 2 cuts and fills, around the replacement of trees, etcetera, things that are easier for the City to 3 measure I think that our role I just want this on the record is around our role as stewards for the 4 open space for the citizens of Palo Alto. And that has to do with the sightlines. That's my opinion, 5 but I also think that is reflected in how they defined our purview. So while I appreciate your 6 comments on the architectural drawings and understanding every aspect I would argue this is a 7 different kind of project than many that get put in front of us. 8 9 Commissioner Gardias: I understand and appreciate this comment, but when I read a paragraph of 10 Municipal Code 18.30.G it says that in order to assure that use and development will be 11 harmonious with other uses in the general vicinity will be compatible with environmental and 12 ecological objectives and those clearly pretty much address questions that I asked. But then as I 13 said at the beginning I’d rather just pass my mandate onto ARB because I think that there are 14 better equipped. 15 16 Chair Alcheck: Ok, alright Commissioner [Note-Vice-Chair] Waldfogel. 17 18 Vice-Chair Waldfogel: I may need some help on this because I'd like to propose a Motion and 19 given what we have in the packet can I propose a Motion to recommend approval of the standard 20 conditions or do I have to, does the Motion need to be to bring it back to us with standard 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. conditions? Which of those two is available to me? 1 2 Mr. Lait: If you just give us one second on it? Ok, so (interrupted) 3 4 Chair Alcheck: Before you respond I'm going to take this opportunity to close the public comment 5 portion of this hearing and let that be noted. 6 7 Mr. Lait: So thank you. We just wanted to make sure we were giving you the right guidance on 8 this. So we do believe that you could take an action on the item this evening to forward a 9 recommendation to the City Council it sounds like approving the project or at least that sounds 10 where the Motion is going. And we don't really have a whole lot of standard conditions, but we 11 do have and this is nuance, we have typical conditions that we apply to projects and it’s the type 12 of stuff that we get for from every department about applying the standard issues that we see in 13 the code. We don't have any, do not anticipate any special conditions that we would apply; if the 14 Commission were interested in a special condition regarding trees that would be a special 15 condition. So yes, I guess the short answer is you could draft a you can make a Motion and if 16 there's a second and support for it, it could go forward to the Council. And there's going to be a 17 public hearing at the City Council as well so if there is anybody who was aggrieved or concerned 18 about our typical conditions there would be a forum for a dialogue about that at that time. 19 20 Chair Alcheck: Ok, why don’t before you make the Motion I'd love to follow the same sort of 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. program we've been utilizing the last two sessions which is that you make a standard Motion and 1 then we can treat let's say any additional conditions as Unfriendly Amendments that would 2 essentially get a up or down vote by the Commission and to determine whether or not they’re 3 incorporated into the Motion. Ok? So. 4 5 MOTION 6 7 Vice-Chair Waldfogel: Ok, so I'd like to recommend approval with typical conditions. 8 9 SECOND 10 11 Chair Alcheck: Ok and a second? I'll second that Motion. Before I let you speak to it are there any 12 proposed amendments? 13 14 Commissioner Summa: Ok, I'd like to make some amendments. 15 16 Chair Alcheck: Let’s do them one by one. 17 18 Commissioner Summa: One by one? Ok. One is is that I cannot be comfortable with the second 19 unit status it is not analyzed in any depth in the staff report and it seems to rely on that sometime 20 in the future there may be a change in the law about second units. The law clearly states to have 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. a second unit here you have to have 10 acres and I don't find the oven issue to be rigorous or 1 compelling enough. So I would like that to be examined further. So I'd like to take that off for 2 now until that is resolved. And I would like also to mention with regards to making the Finding 3 Number 4 that the use will be in accord with the Palo Alto Comprehensive Plan, the 4 Comprehensive Plan requires that projects be legal with regards to their consistency with the 5 municipal code. 6 7 And one thing I'm embarrassed that we did, not embarrassed, that I'm not happy with one of the 8 13 criteria for the open space is that building should use materials and earth tones or subdued 9 colors. They also I understand should be reflective. We haven't seen I had asked staff and I 10 thought we would have a materials board. Oh. Well we didn't see it. 11 12 And I would also ask that some consideration be given by the applicant and the applicant’s team 13 to further reducing the views from the preserve. And I wonder I don't think we've got too much 14 specificity with all the trees that are screening it will they be deciduous or non-deciduous trees? 15 And I think one of my colleagues brought up the fact that there could, could there be bigger trees 16 and would it work even a little better? With that being said I wish we could resolve these issues 17 for you very quickly so you can move ahead on schedule with starting in April when you would be 18 allowed to. Those are my main concerns and I also I had a slight concern about the access road to 19 the guest house and somebody had a term for it I forget if it was staff or the applicant. It was a 20 holiday something? 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Owen: Hollywood strip. 2 3 Commissioner Summa: Hollywood, thank you. I wasn't familiar with that term. So Criteria 4 Number 4 says developments should be clustered or closely grouped, blah, blah, blah. Make it 5 less conspicuous and minimize access roads. I had a slight concern that that was a pretty big road 6 on the site and I didn't know if that had been explained fully. Am I right in thinking it's two 18 inch 7 tracks that are paved and the rest is native plants? So I don't know if any other colleagues are 8 interested in that, I just wanted to get on the record. But I feel that the particularly the other 9 issues I mentioned have not been resolved. 10 11 Chair Alcheck: Ok let me just get some clarity here. Let's assume for a minute there was 12 consensus that the kitchenette created some problem. Is that within our purview? Could we 13 create a condition that suggested eliminating the kitchenette from the guest house? 14 15 Ms. Silver: So you obviously need to make a finding that this is consistent with the zoning code 16 requirements. So to the extent you find that the second unit does not meet the zoning code 17 requirements for an accessory unit then that certainly is within your purview. 18 19 Chair Alcheck: So just to be clear if we were going to make a finding like that what happens if it's… 20 let's say that contradicts the staffs, let's say that contradicts the interpretation by our Building 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Department. Like how do we, how would that be resolved? 1 2 Ms. Silver: Right. So you know I don't know that it's necessarily a finding it's a recommendation to 3 Council that this does not comply with the zoning code is one way to frame it. Another way to 4 frame it is perhaps as a condition that the accessory unit is you recommend approval of it, but 5 that it be built in a way to meet the definition of an accessory unit i.e. it shall not have any kitchen 6 facilities. 7 8 Chair Alcheck: Ok. 9 10 Ms. Silver: So two options. 11 12 Chair Alcheck: Ok so what I’m going to do is I'm going to go to Ed and do you have an amendment 13 to the current Motion? 14 15 Commissioner Lauing: Yes it might have been commented on. 16 17 Mr. Lait: So just [unintelligible] there I don't know that the Motion has been seconded. 18 19 Chair Alcheck: I seconded it. 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Lait: Did you second it? 1 2 Chair Alcheck: Yeah. 3 4 Mr. Lait: Ok, thank you. 5 6 Chair Alcheck: And I'm looking for a specific amendment. So essentially for example if you wanted 7 to suggest that a specific condition be added (interrupted) 8 9 Commissioner Lauing: That's what I was going to do, but I don't know if you put a Unfriendly 10 Amendment on the table or you were just making comments? 11 12 Chair Alcheck: I heard comments, but if you want to make a specific… 13 14 Commissioner Summa: I’d like to clarify; I'd like to help the applicant get their guest house they 15 want by having staff come back to us with a way that I can understand that it's legal. And I don't 16 know what the process would be, but I'd like… that's what I'd like to see because I, they want to 17 have a guest house. So… 18 19 Chair Alcheck: Yes. 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Vice-Chair Waldfogel: What is your concern relative to the lot size? 1 2 Commissioner Summa: That it's not legal to have that guest house unless the lot is 10 acres and 3 that other people in these situations are expected to applicants are expected to follow the code. 4 That's all. 5 6 Vice-Chair Waldfogel: Right, but the so maybe staff could clarify this; the total parcel is 10 acres 7 including the share of the common land and do we count that in this case or not? I mean I 8 noticed some notes on Page 1 of the plans that there is some disagreement here and could you 9 clarify that? 10 11 Mr. Owen: The site is 5.2 acres I believe. It's either 5.2 or 5.4; 5.4 acres. So that would be the 12 area that we consider to be for zoning purposes the site area. I believe that the property owners 13 also have a 1/10th ownership in the common areas, but for the purpose of applying development 14 standards we would use that 5.4 acres for FAR, for impervious cover (interrupted) 15 16 Vice-Chair Waldfogel: That’s not what we do in the Research Park. 17 18 Mr. Owen: But that Stanford owns the entire parcel. 19 20 Vice-Chair Waldfogel: Right, but I mean I just want some clarity here because there's ownership 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. on these other 4.52 acres. 1 2 Mr. Lait: Right. 3 4 Vice-Chair Waldfogel: And I'm just unclear on whether that's whether that's germane or not. 5 6 Mr. Lait: So the subdivision for this property clearly delineates the property with property lines 7 and that's been recorded with the map and that's the 5.4 acre site. In the Research Park there’s, 8 there aren't the property lines that you see on this condition, it's lease lines. And there is a 9 another property or properties that are held in common ownership and that is a separate law and 10 would not be considered part of the square footage for this parcel. 11 12 Chair Alcheck: Ok… 13 14 Commissioner Lauing: But did we clarify that this ADU does not, is ok? 15 16 Chair Alcheck: So right now what's… if I could sort of summarize the current situation the staff's 17 interpretation of this the City's interpretation of this application is that this is not a second 18 dwelling unit because it doesn't have all the requirements that we require. And just to be really 19 clear you can't build a home in this City without a range and an oven. Even if you, if they had 20 come with just one structure and it didn't have an oven and a range that would be problematic 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. because it wouldn't have a kitchen according to our definition. So right now what we're dealing 1 with is I believe Commissioner Summa’s sort of un-comfort with that being the only reason why 2 the guest house isn't deemed a second unit, but so that's where we're at with that. I, my read is 3 that she's not prepared to support the Motion because she's not comfortable with that, but I 4 don't have a specific amendment so I want to move on and see if I can get an amendment and the 5 objective here is to see if we have a majority of individuals to support a Motion so. 6 7 Commissioner Lauing: My amendment would be on the tree size. 8 9 Chair Alcheck: Go ahead. 10 11 Commissioner Lauing: And not being an arborist I'm not quite sure how to phrase this, but if we 12 could specify that the mitigated mitigation trees and trees in general would obscure the building 13 in five years or something along those lines. So it would specify kind of the size of the trees that 14 would go in at this point hence they wouldn’t be five gallon trees, they would be large ones 15 requiring heavy digging. 16 17 Mr. Owen: Just to clarify the mitigation trees that have been proposed for the loss of the one are 18 currently proposed at six feet in diameter at the time of, of the crown diameter at the time of 19 planting. So it's just a baseline. 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Lauing: Are these the ones that would be going in front of the high elevation that 1 would be viewable from Arastradero trails? 2 3 Mr. Owen: Yes. Yes they are. 4 5 Commissioner Lauing: Ok and do we know how long that would take to pretty much obscure the 6 house? 7 8 Mr. Lait: Yeah. We're talking oaks and these are slow majestic trees and it would take some time 9 to obscure. And part of the challenge the applicant I think has a landscape person here obviously 10 that could speak. We don't have the City's arborist here. That could be something we bring back 11 to the next meeting if this is something that is needing to be (interrupted) 12 13 UNFRIENDLY AMENDMENT #1 14 15 Commissioner Lauing: Right that’s why I don't know exactly how to specify the Motion, but you 16 understand the intent of obscuring that most almost all of that building over time in a reasonable 17 time not two decades. 18 19 Chair Alcheck: Ok I'm going to treat that as an Unfriendly Amendment for the purposes of this 20 process. Do I have a second for that Amendment? 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 SECOND 2 3 Commissioner Summa: I'll second it. 4 5 Chair Alcheck: Ok, great. So we don't really have a specific Amendment, but the idea is essentially 6 to create a condition that would there's one tree that's being removed? 7 8 Mr. Owen: Correct. 9 10 Mr. Lait: If I may? 11 12 Chair Alcheck: Yeah. 13 14 Mr. Lait: My concern is that's going to write… I would like for maybe the based on the comments I 15 heard from Commissioner Summa and Commissioner Lauing I know there's an interest in wanting 16 to move the project forward. We can be back at the next Planning Commission meeting in two 17 weeks on the 25th with some specific information that addresses what size tree should be planted 18 and where if that's the Commission's interest. I feel a little uncomfortable just kind of winging it 19 at this point trying to say within two decades we want to see it screened. I just don't know what 20 that translates to or how feasible that might be. 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Chair Alcheck: I can appreciate that. 2 3 Mr. Lait: And I can also (interrupted) 4 5 Commissioner Lauing: So can I. 6 7 Mr. Lait: Provide some written responses to some of the inquiries that have come up. 8 9 Chair Alcheck: I guess what I would like to know and I really am opposed to straw polls, but let me 10 put it this way from my perspective Mr. Dockter’s above and beyond tree assessment satisfies my 11 sensibilities here. And so if for example this amendment even in its vagueness didn't have enough 12 support then in theory I could move this Motion on with it's typical conditions without having to 13 come back. And so what I would like to avoid is having to reschedule another meeting here to 14 discuss the idea of planting a slightly larger tree if there isn't sort of enough support for that 15 particular thing. So aside from the two Commissioners that are currently supporting this 16 amendment will you guys just chime in real quick and let me know if you're, if that's, if this tree 17 issue is something you feel like you'd like to address at the follow up hearing. 18 19 Commissioner Gardias: May I just? Sorry, I was trying to I'm not one of those that proposed this 20 amendment, but may I? 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Chair Alcheck: Yeah, I just want to understand if this is a concern you have about this particular 2 (interrupted) 3 4 Commissioner Gardias: It's in the same topic, right? Because the commonly done trick in terms of 5 the property screening is pretty much that you plan low growing trees, slow growing I’m sorry, 6 slow growing trees and then next to it you plant [weed/wheat?] trees that pretty much obscure. 7 They grow very quickly and they obscure the view very quickly, but then they could be removed. 8 So my question would be to the staff or to the arborist is are there any trees in that area that can 9 be planted that would do the requirements and then they could be removed after certain sizes 10 which (interrupted) 11 12 Mr. Kephart: Yeah, you have the process down correctly. 13 14 Mr. Lait: Sorry, so Chair if you wanted (interrupted) 15 16 Chair Alcheck: [Unintelligible] sorry, I closed the public hearing. So at this time we really can't 17 take comments from you. 18 19 Mr. Owen: If I may speak to the record for that? So as a part of the site and design review process 20 in the open space district one of the requirements is that you have a mitigation basically or 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. landscape monitoring program and you check in basically every five years on the screening 1 capacity and the landscape that was installed in the area that was disturbed. So that's a standard 2 part of the open space site and design review process. 3 4 Mr. Lait: And as far as any quick growing trees I mean we would want something that was native 5 to the area and natural as opposed to something that may do well, but not native to the area. 6 And just also to speak to Dave Dockter’s review or the City's Urban Forestry review I believe that 7 review is more about a replacement mitigation. If you remove a tree you plant 10 more, 8 whatever the standard is and that's different than a view shed analysis of impacts from trails. So 9 I'll just add that to the Commission's dialogue as well. Right. 10 11 Chair Alcheck: Right. Ok, so let me reiterate my question. Is there enough interest among the 12 Commissioners to discuss a planting plan that would further screen this home at a future date? I 13 mean go ahead. 14 15 Commissioner Rosenblum: Yeah. I'm for me the answer would be no and specifically again I think 16 this is within our purview. I don't think we're to play arborist from the dais. I think that the 17 arborist’s recommendations there are standards, they are working with the City's approved 18 arborist, and I think that as again fellow Palo Alto residents interested in preserving views in the 19 open space… taking into account the recommendation and views of our arborist with all of the 20 site photos and pictures of the story of the story poles I don't personally feel comfortable that I 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. can override or recommend a better arboreal plan than our City's arborist. 1 2 Chair Alcheck: Ok, why don't we do this, why don’t we do this so that this is just a textbook 3 version of this process. We can treat your amendment as a Substitute Motion if you’d like which 4 would essentially be the following: you would like a Substitute Motion that would delay this to 5 our next meeting where we would have an opportunity to review a staff prepared planting plan 6 that would further screen the house. You can see if someone will second that Motion and then 7 we can vote on that Motion immediately. If that Motion fails to gain a majority then the original 8 Motion that's on the floor will be back up and we can have a vote on that Motion assuming there 9 are no other specific amendments to the current Motion. Because I agree with staff that your 10 Motion is a little vague; we don't really know what you want to add to this Motion and so it would 11 not be practical to move forward a Motion without sort of more precision. So are you 12 comfortable sort of changing it to a Substitute Motion? 13 14 Commissioner Lauing: Yes I am. All I’m saying is that the only thing that we have to show and I'm 15 speaking to Eric what you said is that this is all about the views. And the only thing we have is a 16 rendering right now in some year as to the maximum and just trying to figure out how long that’s 17 going to take. 18 19 Chair Alcheck: Yeah. So why (interrupted) 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. UNFRIENDLY AMENDMENT #1 WITHDRAWN, SUBSTITUTE MOTION #1 1 2 Commissioner Lauing: I would make that Motion. 3 4 Chair Alcheck: Ok, so (interrupted) 5 6 Mr. Lait: And before you vote that would be a continuation to the January 25th meeting. 7 8 SECOND, VOTE 9 10 Chair Alcheck: So there's a Substitute Motion currently on the table to come back to this body to 11 review a staff prepared planting plan that would further obscure the home. And are you 12 comfortable seconding Motion? Ok. Can we have a second to the Motion? Ok, let's quickly take 13 a vote. All those in favor of that Motion? Ok that's two. All those opposed to that Motion? 14 That's three. All those abstaining? Ok. That Motion fails. The previous Motion is on table. I’m 15 going to give anybody else an opportunity to suggest an amendment to the current Motion as it 16 stands. Go ahead. 17 18 SUBSTITUTE MOTION #1 FAILED (2-3-1, Commissioner Gardias abstained) 19 20 SUBSTITUTE MOTION #2 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Summa: So I probably wasn't very clear and I apologize for that, but I wanted to 2 continue it for, I want to amend the Motion to continue it to resolve the issue and I would like 3 staff to come back with a way to provide the second unit, the guest unit, that has the appearance 4 of being more reliably consistent with the code. 5 6 Chair Alcheck: I'm going to treat that also as a Substitute Motion. 7 8 Commissioner Summa: That's fine. 9 10 Chair Alcheck: Is there a second on this issue of the guest house? 11 12 SECOND 13 14 Commissioner Rosenblum: I’ll second that. 15 16 Chair Alcheck: Ok there's a second. I’ll treat that Substitute Motion as the Motion on the floor. 17 All those in favor of that Motion? 18 19 Commissioner Rosenblum: Can I speak to that? 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: Yes. 1 2 Commissioner Rosenblum: So I actually think Commissioner Summa I disagreed originally when 3 you were making this, but then went back and read their report along with the additional 4 comments. I had thought that the Hewlett tract had taken 10 acre plots, but in accordance with 5 the City's wishes had concentrated the plots and made common ownership of a greater area so 6 that the average ownership size would still be 10 acres and therefore be compliant. However, if 7 you are only using the 5.42 acre as a definition for zoning compliance then Commissioner Summa 8 is right. Is it is if this were an ADU it’s not technically compliant. So then the question is: is it an 9 ADU or not? And it certainly looks a lot like an ADU. And so it's hard for me to say in good faith 10 that this isn't if I built this thing in my backyard that looked exactly like this it would look and feel 11 and act a lot awful like an ADU. 12 13 At the same time I think it's a little absurd. I do think the spirit of this whole thing was to 14 concentrate the houses, have a shared open space, and to penalize the families for that action is 15 what the effect of this is, is a little bit absurd. But I think that this is technically correct that if the 16 zoning rules apply to 5.42 acres and therefore they would not be eligible for an ADU and this looks 17 like an ADU. I understand Commissioner Summa’s concern and I agree with it. 18 19 Chair Alcheck: Ok. All those in favor of this (interrupted) 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Lauing: Well wait, is it… can I ask, I thought we had talked about that and the 1 opinion was that it is legal because in open space that's ok. So I thought we already got the view 2 that that was legal because my question was is it legal and I thought you guys more or less said 3 yes. 4 5 Mr. Owen: Our position is that with the lack of an oven then the kitchenette is not a kitchen and 6 so therefore you don't have the ability to have cooking facilities which is our code definition. One 7 of the code definitions (interrupted) 8 9 Commissioner Lauing: Which makes it legal even in the five point something acreage? 10 11 Mr. Owen: Correct, right. 12 13 Commissioner Lauing: And that's consistent with how that is applied across any area. So it seems 14 like it's legal. 15 16 Chair Alcheck: Yeah ok. I don't disagree with you. I think there's (interrupted) 17 18 Commissioner Lauing: I just wanted to get clear on that answer. 19 20 Chair Alcheck: Yeah. Just to be clear what is your definition for a kitchenette? I mean are we 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. talking about a sink and a garbage disposal? If you don't have any cooking appliances what can 1 you do? 2 3 Mr. Owen: So typically and this is you see this more often in the R-1 neighborhoods where you 4 have like a wet bar down in a basement for example. You can have a microwave, but once you 5 have a gas hookup. You know a range for example that's a red flag. That's usually our trigger for 6 considering something to be an actual second unit. 7 8 Chair Alcheck: Ok. So I think we're on the same page here, but I'm going to process this Motion. 9 10 Commissioner Gardias: Just to if one moment if I just may ask about the clarification not about 11 what would be the action item after this amendment, what is the proposed action item? 12 13 Chair Alcheck: I think the current (interrupted) 14 15 Commissioner Gardias: [Unintelligible] Commissioner Summa could speak to it and just advise 16 what she's asking the staff. 17 18 Commissioner Summa: Well once again I am sorry if I'm not being clear. I was asking for a way to 19 really help this applicant get what they want which is a guest house and have it be consistent with 20 the code. It's as simple as that. And I don't think the code can rest on whether there's an oven. 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. People you know ADUs now where they're legal like in RMD and R-2 second units typically have 1 kitchens or kitchenettes and are still called second dwelling units. So I just I guess if staff could 2 convince me tonight I will let it go, but I would like the at least to recommend that Council 3 consider that and be aware of it. And I also think it gives the applicant an opportunity come back 4 very quickly and having resolved all my concerns. 5 6 Chair Alcheck: Ok. 7 8 Mr. Lait: Just for the Commission’s consideration? 9 10 Chair Alcheck: Sure. 11 12 Mr. Lait: We do have a definition of kitchen if you’d like hear it. 13 14 Chair Alcheck: Yeah, go ahead. 15 16 Mr. Lait: Also in [1804030 Number 75] kitchen means a room designed, intended or used for 17 cooking and the preparation of food and dishwashing. Kitchen facilities include the presence of 18 major appliances or utility connections and the ability to store, prepare, cook and clean up of food 19 or food preparation. So that major appliances and utility connections are areas that we have in 20 this case and in previous cases seeing that they’re not there and therefore not a kitchen and 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. therefore without a kitchen not a dwelling unit. 1 2 Chair Alcheck: Ok and can I just ask you one more point of clarification? Assuming we didn't weed 3 into these details the Building Department would be all over this because they in theory would 4 flag any utility hook ups in that accessory unit. 5 6 Mr. Lait: So it's a combination of the Planning Department and the Building Department and 7 Utilities. It's a review process. 8 9 Chair Alcheck: Right. 10 11 Mr. Lait: And so if this didn't come to the Commission we would still be having this conversation 12 at a staff level. 13 14 Chair Alcheck: Yeah. Ok, alright. So we have a Substitute Motion. 15 16 Ms. Silver: I'm sorry if I could just chime in on one more issue. You know I think if there is a 17 consensus that you do want to move this forward tonight one way to address this issue to help 18 Council is just to recommend a special condition that very clearly says no kitchen facilities will be 19 permitted and that second unit. 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. VOTE 1 2 Chair Alcheck: Yeah, no I understand that. I don't particularly feel… I want to just get a sense of 3 whether there's any support for this at all. I'm not entirely sure how staff would come back and 4 make their case at the next meeting, but we have a Substitute Motion on the floor and I want to 5 sort of give it its process. So all those in favor of this Substitute Motion to have staff come back to 6 us regarding the legality of the current layout of the guest house please say aye, but raise your 7 hand. That's three. All those opposed? That's three. Ok that Motion fails for lack of a majority. 8 We have still the current Motion on the floor which is essentially to move forward this application 9 with typical conditions. Are there any other amendments? 10 11 SUBSTITUTE MOTION #2 FAILED (3-3, Chair Alcheck, Vice-Chair Waldfogel, and Commissioner 12 Lauing against) 13 14 Commissioner Lauing: An amendment could come forth along the lines of what Council [Note-15 Staff?] just recommended. 16 17 Chair Alcheck: Like what? 18 19 Commissioner Lauing: To the main Motion that a recommendation to make sure that there aren’t 20 any kitchen facilities in the particular house. 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Chair Alcheck: Are you suggesting that the applicant couldn’t have a wet bar or that they 2 shouldn’t have a range or oven? 3 4 Commissioner Lauing: However specific it needs to be to address the... 5 6 Chair Alcheck: Are you interested in making that amendment or are you just suggesting it? 7 8 Commissioner Lauing: I was suggesting it to the original maker of the other Motion. 9 10 Chair Alcheck: Ok. 11 12 Commissioner Lauing: Commissioner Summa. 13 14 Commissioner Summa: I don't think that achieves what my goal was and my goal was to have it 15 not be a controversial issue that they have the guest house they want and that there be a legal 16 way to do it. And I was looking for staff to come back with so I don't think, I don't think I need to 17 do that. 18 19 Chair Alcheck: Ok. I'm going to put this to a vote. So we have a Motion on the (interrupted) 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Gardias: I was going to follow up on your question about amendments. 1 2 Chair Alcheck: You have an amendment to the current Motion? 3 4 Commissioner Gardias: Yes. I would like to suggest an amendment to my colleague that proposed 5 amendment before that failed. If you consider making amendment along the same idea that you 6 made initially about proposing a screening yet as opposed to providing this plan to us would you 7 consider amendment that would entrust the screening, accelerated screening and then just allow 8 this project to move forward tonight. 9 10 Vice-Chair Waldfogel: Accelerated screening from the applicant? Is that what you’re saying? 11 12 Commissioner Gardias: No as opposed to just having the trees that are six feet in diameter to 13 request the applicant to provide screening that would reach the screening objectives much faster. 14 And how this would be done it would be done it would be up to the arborist’s discretion and 15 negotiation with the applicant. 16 17 Vice-Chair Waldfogel: That sounds to me like the same as what we previously discussed. So I think 18 we’d rather leave it at a sense of the Commission of we'd like as much screen as fast as possible 19 then to try to legislate it. 20 21 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: Ok here's what I'd like to do. I'd like to have a vote on the current Motion unless 1 someone has an amendment they want to make themselves. Barring that I really appreciate the 2 effort to encourage our new Commissioners to make amendments, I do, but let's do this. We 3 have a current Motion on the table to move this forward with typical conditions of development. 4 All those in favor of this Motion please say aye and raise your hand. Ok. Five in favor. All 5 opposed? One. The Motion passes. I want to take a five minute break and then we'll pick up on 6 Agenda Item Number 3. Thank you. 7 8 MOTION PASSED (5-1, Commissioner Summa opposed) 9 10 Commission Action: 11 Motion: Recommend approval of the project to the City Council, subject to typical conditions of 12 approval. Motion made by Vice Chair Waldfogel, seconded by Chair Alcheck; motion PASSES 5-1, 13 Commissioner Summa against. 14 15 Substitute Motion: Continue the project to January 25, 2017. Motion made by Commissioner 16 Lauing, seconded by Commissioner Summa; motion FAILED 2-3-1, Chair Alcheck, Vice Chair 17 Waldfogel, and Commissioner Rosenblum against, Commissioner Gardias abstaining. 18 19 Substitute Motion: Continue the project to allow staff time to demonstrate the legality of the 20 legality of the accessory structure. Motion made by Commissioner Summa, seconded by 21 Commissioner Rosenblum; motion FAILED 3-3, Chair Alcheck, Vice Chair Waldfogel, and 22 Commissioner Lauing against accessory structure. 23 24 The Commission took a break 25 26 3. Recommendation to the City Council for the Adoption of an Ordinance Making 27 Permanent Interim Urgency Ordinance 5330 (Limiting the Conversion of Ground 28 Floor Retail and Retail Like Uses), With Some Modifications; Extending the Ground 29 Floor Combining District to Certain Properties Located Downtown and in the South of 30 Forest Avenue Coordinated Area Plan; Modifying the Definition of Retail; Adding 31 Attachment H Project Plans Hardcopies of project plans are provided to City Council Members. These plans are available to the public by visiting the Planning and Community Environmental Department on the 5th floor of City Hall at 250 Hamilton Avenue. Directions to review Project plans online: 1. Go to: https://paloalto.buildingeye.com/planning 2. Search for “670 Los Trancos” and open record by clicking on the green dot 3. Review the record details and open the “more details” option 4. Use the “Records Info” drop down menu and select “Attachments” 5. Open the attachment named “3/13/2017 Project Plans” TO: HONORABLE CITY COUNCIL FROM: HILLARY GITELMAN, DIRECTOR, PLANNING AND COMMUNITY ENVIRONMENT DATE: MARCH 27, 2017 SUBJECT: AGENDA ITEM NUMBER 8: PUBLIC HEARING: 670 Los Trancos Road [16PLN- 00266]: Site and Design Review to Allow the Construction of a new Single Family House and Guest House With a Total of Approximately 10,960 Square Feet of Floor Area. Environmental Assessment: Categorically Exempt From CEQA Pursuant to Guidelines Section 15303 (New Construction or Conversion of Small Structures). Zoning District: OS The above referenced agenda item is for the proposed construction of a new two-story residence, guest house, and associated site improvements on the vacant property at 670 Los Trancos Road. Some members of the public have provided written comments on the application, with a few expressing concerns that the project is not compliant with the Municipal Code due to the proposed accessory structure/guest house and the visibility of the house from the Arastradero Preserve. The purpose of this memorandum is to respond to some of the key points identified in the public comment letters. • Residence Visible from Parkland A point was raised that the project is not consistent with Open Space Development Review Criterion #1, which states: “The development should not be visually intrusive from public roadways and public parklands. As much as possible, development should be sited so it is hidden from view.” While the proposed project is clearly subject to this criterion, there is some subjectivity in evaluating the project for compliance. The code states the development “should not be visually intrusive” and “as much as possible, development should be sited so it is hidden from view” [Emphasis added]. This language is distinguished from other more objective code language, such as compliance with a height limit. 8 The subject property is located at a clearing on a hill, and contains less tree cover than many of the nearby homes in the Hewlett Tract. There are other property features that limit the placement of the residence of the lot including the property slope, setbacks, among others. The applicant has taken steps to mitigate the visibility of the project by dropping portions of the home below grade and adding landscaping, including ten blue oaks, to screen the house, but the home will be visible from the Arastradero Preserve. In its review, The Planning and Transportation Commission found that while the home will be visible, the project would not be visually intrusive and the applicant's efforts to minimize the impact were sufficient. With this action item, the City Council will evaluate the project to determine whether this issue is sufficiently addressed or if the project requires further refinement or conditions to comply with this criterion. • Residence Relationship to the Hilltop Ridgeline Comments have also expressed concerns that the project is not consistent with Open Space Development Review Criterion #2, which states: "Development should be located away from hilltops and designed to not extend above the nearest ridgeline." The subject parcel is located on a hilltop. In the past, conformance with this standard was determined based on whether the roofline of a proposed structure was below the highest portion of the ridgeline when viewed at elevation. The subject project has been designed consistent with that approach. To achieve compliance, the applicant is locating the house away from the ridgeline and dropping portions of the home below grade. From the commenters' perspectives, downslope on the hiking path, the structure does appear to extend above the ridgeline. The Planning and Transportation Commission considered the proposed home with respect to this criterion and explored the possibility of requiring additional trees. However, the Commission ultimately found that further project modifications were unwarranted and that the project complied with this criterion. The Council in its review of the project will consider the project's compliance with this code provision. • Concern Regarding the Accessory Structure Being Used as an Accessory Dwelling Unit (ADU) Several letters have expressed the opinion that the proposed accessory structure is an ADU, which would not be permitted on the site given the existing provisions of the Municipal Code. This issue has been evaluated in the staff report. The proposed accessory structure complies with applicable zoning regulations and the project plans have been revised to remove the kitchenette which was previously proposed. Neither 2 of3 the current ADU regulations nor the planned ordinance would permit an ADU on this property. Further details on this structure are provided in the Council staff report for the project. ~. Director Planning and Community Environment 3of3 City of Palo Alto (ID # 7661) City Council Staff Report Report Type: Action Items Meeting Date: 3/27/2017 City of Palo Alto Page 1 Summary Title: Public Hearing: Housing Impact Fee Ordinance Title: PUBLIC HEARING: Adoption of Two Ordinances to Update the City’s Below Market Rate (BMR) Housing Program as Recommended by the Finance Committee: (1) Repealing Municipal Code Section 16.47 (Non-residential Projects) and 18.14 (Residential Projects) and Adding a new Section 16.65 (Citywide Affordable Housing In-lieu Fees for Residential, Nonresidential, and Mixed Use Developments. The Proposed Ordinances are Exempt From the California Environmental Quality Act (CEQA) per Sections 15378(b)(4), 15305 and 15601(b)(3) of the State CEQA Guidelines (FIRST READING: December 12, 2016 PASSED: 5-3 Kniss, Scharff and Wolbach no) Continued from January 9, 2017 From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council conduct a second reading and adopt the attached ordinances to amend the City’s Below Market Housing Program and update the housing impact and in-lieu fees (Attachments A and B). If Council wishes to make adjustments to one or both of the ordinances, staff recommends this evening’s hearing be considered another first reading, and that the revised ordinances again be placed on the Council’s consent agenda for a second reading. Possible adjustments include changes to the fees listed in the second ordinance (Attachment B), and the addition of a provision in the first ordinance (Attachment A) that would allow payment of in lieu fees rather than provision of units for residential ownership projects with City Council authorization. Executive Summary The proposed ordinance included as Attachment A would rescind and replace sections of the City’s Municipal Code governing inclusionary housing as well as the collection of the affordable City of Palo Alto Page 2 housing impact fees charged to commercial development and the housing in lieu fees charged to residential development. If adopted, the proposed ordinance and the associated fee ordinance included in Attachment B would: increase fees charged to new office/R&D development from $20.37 to $60 per square foot; increase fees charged to new hotel development from $20.37 to $30 per square foot; maintain fees charged to retail/other commercial development at $20.37 per square foot; institute an impact fee for new market rate rental housing of $20 per square foot; modify the in lieu fee for new market rate for-sale housing so that it is no longer calculated at the time of sale (7.5% of the sale price), and is instead collected at the time of building permit issuance, similar to an impact fee ($50 per square foot); and modify the in lieu housing requirement for new market rate for-sale housing so that it is triggered when a development includes three or more dwellings, rather than five or more dwellings and so that there is clarity about when fees can be paid instead of providing units on- or off-site. The proposed fees are based on the two “nexus” studies which examined the relationship between new commercial and residential development and the increased demand for affordable housing. The Finance Committee of the City Council, the Planning and Transportation Commission and City Council reviewed these nexus studies and each voted to recommend slightly different fee amounts from those recommended by the consultant, as shown in Tables 1 and 2, below. (The ordinance included as Attachment B would implement the City Council’s recommendations.) Table 1. Existing and Proposed Commercial Fees City of Palo Alto Page 3 1The PTC recommended a phase-in of fees over a five-year period. 2Retail/Restaurant/Other was not studied as part of this nexus study and the staff’s recommendation is to maintain the current fee of $20.37/new net square footage for this prototype based on the prior nexus study. The fee was updated as part of the City’s budget process from $19.85/sf to $20.37/sf effective May 8, 2016. Sources: Vernazza Wolfe Associates, Inc. & Strategic Economics, 2015 and City of Palo Alto Planning and Community Environment, January 2017 Table 2. Existing and Proposed Residential Fees Existing Fees1 February 2016 Proposal Finance Committee Recommended Fees PTC Recommended Fees City Council Recommended Fees Market Rate Single Family Detached 7.5 to 10% of sales price $95/sf $50/sf $95/sf2 $50/sf Market Rate Single Family Attached 7.5 to 10% of sales price $50/sf $50/sf $50/sf $50/sf Market Rate Condo 7.5 to 10% of sales price $50/sf $50/sf $50/sf $50/sf Market Rate Rental Housing None $50/sf $50/sf $10-$20/sf3 $20/sf 1Market rate ownership housing projects are currently subject to City’s Affordable housing in-lieu fees. Market rate rental projects are exempt from this requirement. 2The PTC recommended setting a fee more commensurate with the cost of providing a unit. 3The PTC recommended setting the fee based on a comparison to nearby jurisdictions. Sources: Vernazza Wolfe Associates, Inc. & Strategic Economics, 2015 and City of Palo Alto Planning and Community Environment, January 2016 All fees would be adjusted by CPI on an annual basis. Further, all of the fees collected as a result of the ordinance would be used for the preservation, rehabilitation, and development of affordable housing, consistent with the City’s Affordable Housing Fund Guidelines available at http://www.cityofpaloalto.org/gov/depts/pln/bmrhousing.asp. City of Palo Alto Page 4 Background In April of 2014, the City entered into a contract with Strategic Economics and Vernazza Wolfe Associates, Inc., (the Consultants) to develop two nexus studies for commercial and residential housing impact fees to mitigate the impact of new development on the demand for affordable housing. This effort was partially motivated by the City’s need to address a series of court decisions preventing the City from imposing inclusionary housing requirements on new rental housing developments making it difficult for the City to impose rental housing fees without economic justification. In addition, City policy requires that impact fees be periodically reviewed to determine whether they are set at appropriate levels. The City’s updated Housing Element (adopted November 2014) referenced these updated nexus studies in several implementation programs and final drafts of the two studies were provided to City staff in late November 2015. An impact fee is a monetary exaction that is charged by a local governmental agency to an applicant in connection with approval of a development project for the purpose of mitigating impacts of the project. There must be a “nexus” or connection between the fee and the actual impacts of the project. In general the fee must be “roughly proportional” to the impact the project is creating. In order to establish a reasonable relationship between the development project and the fee it is charged, cities typically commission “nexus studies.” If a city has already established an impact fee through a nexus study, it is typical for a municipality to periodically commission a new study to determine whether the fee level is appropriately set. City staff presented the results of the two nexus studies to the City Council Finance Committee on February 16, 2016 and June 21, 2016. Staff reports for these meetings are available at: http://www.cityofpaloalto.org/civicax/filebank/documents/50935 and http://www.cityofpaloalto.org/civicax/filebank/documents/52827 respectively. On June 21, 2016, The Committee voted 3-1 to direct staff to prepare an ordinance and a fee schedule. In addition, a motion was made for staff and the PTC to explore options which would allow Office, R&D and Hotels to proportionally reduce their impact fee payment by providing Below Market Rate housing onsite or offsite or by deed restricting existing units as affordable. Staff presented the Finance Committee’s recommendation along with the BMR Ordinance to the PTC at meetings held on July 27, 2016, August 31, 2016 and November 30, 2016. Staff reports for each of the three meetings are available at: http://www.cityofpaloalto.org/civicax/filebank/documents/53215 http://www.cityofpaloalto.org/civicax/filebank/documents/53624 and City of Palo Alto Page 5 http://www.cityofpaloalto.org/civicax/filebank/documents/54901. Minutes from these PTC meetings are available at: http://www.cityofpaloalto.org/civicax/filebank/documents/53622 http://www.cityofpaloalto.org/civicax/filebank/documents/54546 and http://www.cityofpaloalto.org/civicax/filebank/documents/55402. On December 12, 2016, the City Council reviewed and adopted (on first reading) two draft ordinances updating the City’s Below Market Rate (BMR) Housing Program and establishing housing impact fees and housing in-lieu fees for residential, nonresidential and mixed use developments. The staff report from December 12th is available at: http://www.cityofpaloalto.org/civicax/filebank/documents/55042. Action minutes from this meeting are available at: http://www.cityofpaloalto.org/civicax/filebank/documents/55464 The ordinance establishing housing impact fees and housing in-lieu fees (Attachment B) has been modified to incorporate the Council’s amendment, which changed the Impact Fee proposed per Square Foot of Net New Residential Floor Area for Apartments from $50 to $20 in the table on p. 5. Discussion If the City Council is interested in revising their December 12, 2016 decision and modifying one or more of the attached ordinances, the information provided in Tables 3, 4, and 5 below may be of value. Table 3 shows impact fees charged to non-residential development in nearby jurisdictions; Table 4 shows impact and in lieu fees charged to residential projects in nearby jurisdictions; and Table 5 compares the cost of the residential in lieu fees proposed with the City’s current fees; and Table 6 compares the cost of the residential in lieu fees proposed with the cost of providing affordable units on site. Also, if the Council is interested in addressing public comments expressing concerns regarding the availability of funds for construction of new affordable housing, it may wish to consider adding a new section to the ordinance in Attachment A making it easier for the City Council to accept in lieu fees rather than inclusionary units in special situations. Staff’s recommended language is provided below: City of Palo Alto Page 6 Finally, if the Council is interested in addressing public comments (and PTC recommendations) about phasing-in some of the fees, staff would recommend a single re-evaluation point sometime in the next several years. Phasing-in fees over multiple years would take staff and Council/PTC time away from other matters, pose something of an administrative burden, and reduce predictabiliy for projects in the pipeline. Table 3. Impact Fees on Non-Residential Development: Comparison with Other Jurisdictions City Hotel Fee Office/R&D/ Medical Fee Date Adopted/ Updated Cupertino $10 $20 2015 Mountain View1 $2.50 $25 2015 Oakland2 N/A $5.44 2015 Redwood City3 $5 $20 2015 San Francisco4 $18 $16-$24 2015 Sunnyvale $7.50 $155 2015 Menlo Park6 $8.45 $15.57 2015 Notes: 1New gross floor area under 25,000 SF pays 50 percent of full fee. 2Oakland’s fee applies to office and warehouse/distribution development over 25,000 SF 3The fee applies to projects adding more than 5,000 SF of new commercial space. The fee is reduced by 25% if all construction workers are paid prevailing wages. 4The fee for R&D is $16.01 and the fee for office is $24.03. The fee for a small enterprise is $18.89. 5The fee on the first 25,000 SF is discounted by 50 percent. 6The linkage fees are applied to commercial developments of 10,000 SF or more that do not include on-site Section 16.65.080(B)(3): Notwithstanding Section 16.65.080 (A) (5), the City Council may accept fees in lieu of the alternatives in paragraph 1 provided it makes a finding that special circumstances justify payment of fees over provision of ownership units, such as a finding that the fees generated would result in more affordable units than those required to be provided on site or that funds are needed to finance a pending affordable housing project. City of Palo Alto Page 7 affordable units. Sources: City staff and websites; Nonprofit Housing Association of Northern California, 2015; Vernazza Wolfe Associates, Inc. & Strategic Economics, May 2016 Table 4. Impact Fees on Market Rate Rental Housing: Comparison with Other Jurisdictions Single Family Detached Single Family Attached Condominiums Apartments Date Adopted/ Updated Berkeley N/A N/A N/A $31/SF (a) 2016 Cupertino $15/SF $16.50/SF (b) $20/SF $25/SF 2015 Daly City $14/SF $18/SF (c) $22/SF $25/SF 2014 East Palo Alto $22/SF $22/SF $22-$44/SF (d) $22/SF 2014 Emeryville N/A N/A N/A $33/SF (e) 2015 Mountain View N/A N/A N/A $17/SF 2015 Oakland (f) $8,000- $23,000 $8,000-$20,000 $12,000-$22,000 $12,000-$22,000 2016 (proposed) Redwood City (g) $25/SF $25/SF $20/SF $20/SF 2015 San Carlos (h) $23.54- $43.54/SF $20.59- $42.20/SF $20.59- $42.20/SF $23.54-$43.54/SF 2010 San Jose N/A N/A N/A $17/SF (i) 2014 Sunnyvale N/A N/A N/A $17/SF (j) 2015 Notes: (a) Berkeley's affordable housing impact fee is $28,000 per unit. The per square foot fee is estimated based on the prototype unit size. (b) This fee applies to small lot single family and townhomes. (c) This fee applies to townhomes. (d) Fee ranges from $22 per square foot for for-sale housing without structured parking to $44 per square foot for housing with structured parking. (e) Emeryville's affordable housing impact fee is $28,000 per unit. The per square foot fee is estimated based on the prototype unit size. (f) Oakland's affordable housing impact fee for residential development are proposed only, with implementation beginning in 2018. (g) The fee applies to projects over 4 units, and is reduced by 25% if all construction workers are paid at prevailing wage. (h) Fees shown as ranges. Actual fees charged depend on project size. (i) Fee goes into effect in 2016. Developments approved before July 2016 are exempt with a longer exemption for downtown development. (j) Smaller projects with between 4 and 7 units pay 50 percent of this fee. City of Palo Alto Page 8 Sources: City staff and websites; Nonprofit Housing Association of Northern California, 2015; Vernazza Wolfe Associates, Inc. & Strategic Economics, May 2016 Table 5. Comparison of Proposed Residential In Lieu Fees to the City’s Existing Fees on Ownership Housing (16 Unit Single Family Detached Project) Proposed In Lieu Housing Fees* # Units Avg SF/Unit Est Total SF Fee/SF Fee/Unit Total Fees Fees per Staff & PTC 16 4,205 67,280 $95 $399,475 $6.39M Fees per Council & Finance Committee 16 4,205 67,280 $50 $210,250 $3.36M *Includes basements in the calculation per the proposed ordinance. Existing In Lieu Housing Fees # Units Estimated Sales Price % of Sale Price Fee/Unit Total Fees 16 $3,500,000 7.5% $262,500 $4.20M Source: Palo Alto Planning & Community Environment, January 2017 Timeline If the City Council chooses to adopt new housing impact fees on second reading this evening, the ordinances and the fees would become effective in 60 days. If the City Council chooses to make changes to one or both of the attached ordinances, tonight’s hearing would be considered another first reading, and the ordinances would be placed on the Council’s consent agenda for a second reading. The fees would become effective 60 days after that second reading. As currently drafted, the ordinances would apply the new fees to all pending and future projects that have not obtained building permits prior to the effective date of the ordinance. Environmental Review The proposed ordinance is exempt from the California Environmental Quality Act (CEQA) per Sections 15378(b)(4), 15305 and 15601(b)(3) of the State CEQA Guidelines. The new ordinances are not expected to increase or decrease the number of newly constructed housing units, but instead will regulate the unit’s affordability levels. City of Palo Alto Page 9 City of Palo Alto Page 10 Table 6. Comparison of Proposed Residential In Lieu Fees to the Estimated Cost of Providing Affordable Ownership Units on Site Single-Family Detached Single-Family Attached Condominium Prototype Description Number of Units in Prototype 20 10 35 Estimated Sales Price Market-Rate Unit $3,043,000 $1,666,000 $1,390,000 Average Unit Size (square feet) 3,000 2,100 2,100 Inclusionary Requirement Percentage Inclusionary Requirement 15% 15% 15% Number of Market-Rate Units 17 8 30 Number of Inclusionary Units Required 3.00 1.50 5.25 Number of Affordable Units Required (rounded) 3 2 5 Fractional Units1 - - 0.25 Cost to Developer if Existing In-Lieu Fees are Paid Total In-Lieu Fees $4,564,500 $1,249,500 $3,648,750 In-Lieu Fee Revenues per Market-Rate Unit $228,225 $124,950 $104,250 Cost to Developer if Units Provided on Site Estimated Sales Price for Affordable Units2 $436,929 $436,929 $436,929 Foregone Revenue per Affordable Unit3 $2,606,071 $1,229,071 $953,071 Total Foregone Revenues $7,818,213 $2,458,142 $4,765,355 Total In-Lieu Fees for Fractional Units $0 $0 $26,063 Foregone and In Lieu Fee Revenues per Market-Rate Unit $459,895 $307,268 $159,714 Cost to Developer if Proposed Housing Fees are Paid Maximum Fee per Market-Rate Unit (Maximum Justified Fee per Nexus Study) $333,501 ($111/sf) $189,037 ($90/sf) $158,519 ($75/sf) Recommended Fee per Market-Rate Unit (Council & Finance Committee Recommendation) $150,000 ($50/sf) $105,000 ($50/sf) $105,000 ($50/sf) Recommended Fee per Market-Rate Unit (PTC Recommendation) $285,000 ($95/sf) $105,000 ($50/sf) $105,000 ($50/sf) NOTES: 1 If the BMR percentage results in a fractional unit, the developer has the option of paying the in-lieu fee on the fractional unit. 2 The affordable unit price is assumed to be affordable to a 5-person household at 110% Area Median Income in Santa Clara County. 3 The foregone revenue per unit calculation is calculated as the difference between the market-rate sales price and the affordable sales price. City of Palo Alto Page 11 Sources: City of Palo Alto, November 2016; Vernazza Wolfe Associates, Inc. and Strategic Economics, 2016. Attachments: Attachment A: Below Market Rate Housing Ordinance (PDF) Attachment B: Fee Ordinance (PDF) Attachment C: Public Comments (PDF) Not Yet Approved 161122 jb 0131520 1 December 20, 2016 Ordinance No. _____ Ordinance of the City of Palo Alto Repealing Chapter 16.47 (Approval of Projects with Impacts on Housing) and Chapter 18.14 (Below Market Rate Housing Program) of the Palo Alto Municipal Code and Replacing Them with a New Chapter 16.65 (Citywide Affordable Housing Requirements) The City Council of the City of Palo Alto hereby finds and declares as follows: A. Under California Government Code Section 65580(d) all cities have a responsibility to use the powers vested in them to facilitate the improvement and development of housing and to make adequate provision for the housing needs of all economic segments of the community. B. The provision of safe and stable housing for households at all income levels is essential for the public welfare of the city. Housing in Palo Alto has become steadily more expensive and housing costs have gone up faster than incomes. Federal and state government programs do not provide enough affordable housing to satisfy the needs of very low, low, or moderate income households. As a result, there is a severe shortage of adequate, affordable housing for extremely low, very low and moderate income households, as evidenced by the following findings in the City's 2015-2023 Housing Element: 1. Despite a high median income in Palo Alto, nearly 30 percent of all households overpaid for their housing (more than 30 percent of their income) in 2010; 2. It is estimated that 63 percent of extremely low income renter households and 75 percent of extremely low income owner households overpaid for housing in 2010. Of the estimated 1,520 low income households, 75 percent of renter households and 44 percent of homeowner households paid more than 30 percent of their income for housing. 3. Extremely low, very low and low income households in Palo Alto have almost no affordable housing options without substantial subsidies. For moderate income households, adequately sized and affordable rental housing options are very limited as well. 4. Homeownership is largely beyond the reach of most lower and moderate income households in Palo Alto and low and very low income households have difficulty finding rental properties in Palo Alto. C. As stated in the City of Palo Alto's Housing Element, it is the City's policy to encourage, foster, and preserve diverse housing opportunities for very low, low, and moderate income households. The City can achieve its goals of providing more affordable housing and achieving an economically balanced community only if part of the new housing built in the City is affordable to households with limited incomes. D. In order to meet the needs of moderate households, dwelling units will need to house a variety of household types, incomes, and age groups. E. The affordable housing ordinance codified in this chapter will substantially advance the City's legitimate interest in providing additional housing affordable to all income levels and dispersed Not Yet Approved 161122 jb 0131520 2 December 20, 2016 throughout the City by requiring construction of below-market rate housing and providing funds for housing affordable to very low, low, and moderate income households. F. New market-rate housing creates a demand for affordable housing, because new residents of that housing purchase goods and utilize services in the community, increasing local employment and attracting employees, of whom a quantifiable number will have very low, low, or moderate incomes and cannot afford market-rate housing, as demonstrated in the Residential Impact Fee Nexus Study dated October 2015, prepared by Strategic Economics and Vernazza Wolfe Associates, Inc. G. Because nonresidential projects also attracts employees, of whom a quantifiable number will have very low, low, or moderate incomes, new nonresidential projects similarly increase the demand for and exacerbate the shortage of housing available for people at these income levels, as demonstrated in the Commercial Linkage Fee Nexus Study dated November 2015, prepared by Strategic Economics and Vernazza Wolfe Associates, Inc. H. Construction of market-rate housing and nonresidential projects that do not include affordable units also aggravates the existing shortage of affordable housing by absorbing the supply of available land. I. Based on the findings above, the City desires to further the public health, safety and welfare by requiring residential and nonresidential projects in the City to mitigate their impact on the need for affordable housing in the City. J. This ordinance implements Housing Element Program H3.1.2. In particular, this ordinance: 1. Implements the inclusionary requirements, standards, and price limits contained in Programs H3.1.2(a) and (b); 2. Contains standards for determining the feasibility of on-site BMR units, contains BMR program priorities, and provides standards for alternatives, fractional units, and payment of in-lieu fees as contained in Programs H3.1.2(c), (d), and (e), and after consideration of the possible policy contained in Program H3.1.2(h); 3. Contains provisions for reviewing developer requests that the requirements in the ordinance constitute a taking, consistent with Program H3.1.2(f); 4. Permits smaller or duplex BMR units in new single family residential subdivisions after consideration of the possible policy contained in Program H3.1.2(g); 5. Evaluated and determined not to adopt the policy contained in Program H3.1.2(i); and 6. Completed a nexus study to identify the impact of market rate housing on the need for affordable housing, and developed policies for rental housing based on the results of the study, consistent with Program H3.1.2(j). The nexus study also ensured that commercial developments contribute to affordable housing through the payment of fees (Program H3.1.6). Not Yet Approved 161122 jb 0131520 3 December 20, 2016 Based on the above, the City Council further finds that this ordinance is consistent with the Housing Element and that any minor modifications in specific procedures are intended to better implement the Housing Element’s purpose to “encourage, foster, and preserve diverse housing opportunities for very low, low, and moderate income households.” NOW, THEREFORE, the City Council of the City of Palo Alto, California, hereby ordains as follows: SECTION 1: Chapter 16.47 (Approval of Projects with Impacts on Housing) of the Palo Alto Municipal Code is hereby repealed. SECTION 2: Chapter 18.14 (Below Market Rate Housing Program) of the Palo Alto Municipal Code is hereby repealed. SECTION 3: New Chapter 16.65 (Citywide Affordable Housing Requirements) is hereby added to the Palo Alto Municipal Code to read in full as follows: Chapter 16.65 CITYWIDE AFFORDABLE HOUSING REQUIREMENTS Sections: 16.65.010 Purpose 16.65.020 Definitions 16.65.025 Exemptions 16.65.030 Basic Affordable Housing Requirements – Residential Ownership Projects 16.65.040 Basic Affordable Housing Requirements – Mixed-Use, Nonresidential and Residential Rental Projects 16.65.060 Housing Impact Fee and In-Lieu Fee 16.65.070 Requirements for Residential Projects Containing Ownership and Rental Units and for Mixed Use Projects 16.65.075 Provision of Affordable Units 16.65.080 Alternative Means of Compliance 16.65.090 Application and Review Procedures 16.65.100 Affordable Housing Funds 16.65.110 Administrative Relief 16.65.120 Enforcement Not Yet Approved 161122 jb 0131520 4 December 20, 2016 16.65.010 Purpose. The purposes of this chapter are to: A. Enhance the public welfare by establishing policies to provide affordable housing, meet the City's regional share of housing needs, and implement the goals and objectives of the comprehensive plan and housing element. B. Mitigate the impacts of residential rental and nonresidential projects on the need for affordable housing by imposing a housing impact fee whereby developers of residential rental and nonresidential projects will contribute to the supply of housing for households with very low, low, and moderate incomes. C. Increase funds available to support the preservation and production of new affordable housing in the City of Palo Alto. D. Ensure that developers of new nonresidential square footage provide funding to mitigate the impacts of new employment on the demand for affordable housing. E. Ensure that developers of new market-rate rental housing provide funding to mitigate the impacts of new residents on local employment and the resultant increased demand for affordable housing. F. To create incentives for developers to build new affordable units on- or off-site instead of paying impact fees or in lieu fees. G. To provide affordable housing that serves qualifying Palo Alto residents and those who work in the City. 16.65.020 Definitions. The definitions set forth in this section shall govern the application and interpretation of this chapter. Words and phrases not defined in this section shall be interpreted so as to give this chapter its most reasonable application. A. "Affordable housing agreement" means an agreement in conformance with Section 16.65.090(B) between the City and an applicant, governing how the applicant shall comply with this chapter. B. "Affordable housing guidelines" means the requirements for implementation and administration of this chapter adopted by the planning and community environment director in accordance with Section 16.65.090(D). C. "Affordable housing plan" means a plan containing all of the information specified in and submitted in conformance with Section 16.65.090(A) specifying the manner in which affordable units will be provided in conformance with this chapter and the affordable housing guidelines. D. "Affordable rent" means the total monthly housing expenses for a rental affordable unit not exceeding the rents specified by Section 50053 of the California Health and Safety Code and California Code of Regulations Title 25, Sections 6910-6924. As used in this Chapter, "affordable rent" shall include the total of monthly payments by the tenant for Not Yet Approved 161122 jb 0131520 5 December 20, 2016 all of the following: (1) use and occupancy of the affordable unit and land and all facilities associated with the affordable unit, including but not limited to parking, bicycle storage, storage lockers, and use of all common areas; (2) any additional separately charged fees or service charges assessed by the owner, other than security deposits; (3) an allowance for utilities paid by the tenant as established by the City, including garbage collection, sewer, water, electricity, gas, and other heating, cooking, and refrigeration fuel, but not telephone service or cable TV; and (4) any other interest, taxes, fees or charges for use of the land or affordable unit or associated facilities and assessed by a public or private entity other than the owner, and paid by the tenant. E. "Affordable sales price" means the maximum purchase price that will be affordable to the specified household at the specified income level, calculated in accordance with California Health and Safety Code Section 50052.5. The affordable sales price shall include a reasonable down payment, and monthly housing payments (including interest, principal, mortgage insurance, property taxes, homeowners insurance, homeowners association dues, property maintenance and repairs, and a reasonable allowance for utilities), all as determined by the City. F. "Affordable unit" means a dwelling unit affordable to very low, low, or moderate income households. G. "Applicant" or "developer" means a person, persons, or entity that applies for a residential or nonresidential project and also includes the owner or owners of the property if the applicant does not own the property on which development is proposed. H. "Area median income" or "AMI" means the annual median income for Santa Clara County, adjusted for household size, as published periodically in the California Code of Regulations, Title 25, Section 6932, or its successor provision, or as established by the City of Palo Alto in the event that such median income figures are no longer published periodically in the California Code of Regulations. I. "Building permit" includes full structural building permits as well as partial permits such as foundation-only permits. J. "Common ownership or control" refers to property owned or controlled by the same person, persons, or entity, or by separate entities in which any shareholder, partner, member, or family member of an investor of the entity owns ten percent (10%) or more of the interest in the property. K. "Commercial housing fund" means a fund or account designated by the City to maintain and account for all monies received from nonresidential project applicants pursuant to this chapter. L. "Decision-making body" means the City staff person or body authorized to approve or deny an application for a planning or building permit for a residential, mixed use or nonresidential project. Not Yet Approved 161122 jb 0131520 6 December 20, 2016 M. "Density bonus units" means dwelling units approved in a residential project pursuant to California Government Code Section 65915 that are in excess of the maximum allowable residential density otherwise permitted by the City of Palo Alto. N. "First approval" means the first of the following approvals to occur with respect to a residential project: planning permit or building permit. O. "Housing impact fee" or "housing fee" means the fee paid by developers of residential and nonresidential projects to mitigate the impacts that such developments have on the demand for affordable housing in the City. P. "Low income households" are those households whose income does not exceed the low income limits applicable to Santa Clara County as defined in California Health and Safety Code Section 50079.5 and published annually pursuant to Title 25 of the California Code of Regulations, Section 6932 (or its successor provision) by the California Department of Housing and Community Development, generally households with incomes between fifty percent (50%) and eighty percent (80%) of area median income. Q. "Market rate unit" means a new dwelling unit in a residential project that is not an affordable unit. R. “Mixed use project” means an application for a planning permit or building permit that includes the creation of one or more new dwelling units and the construction of net new gross square footage of non-residential space or the conversion of a residential use to a nonresidential use. S. "Moderate income households" are those households whose income does not exceed the moderate income limits applicable to Santa Clara County as defined in California Health and Safety Code Section 50093 and published annually pursuant to Title 25 of the California Code of Regulations, Section 6932 (or its successor provision) by the California Department of Housing and Community Development, generally households with incomes between eighty percent (80%) and one hundred twenty percent (120%) of area median income. T. "Nonresidential project" means an application for a planning permit or building permit that includes the new construction of net new gross square feet of nonresidential space, the conversion of a residential use to a nonresidential use, or the conversion of exempt space (as provided in Section 16.65.025) to non-exempt space. U. "Planning permit" means any discretionary approval of a residential project, including but not limited to a comprehensive or specific plan adoption or amendment, rezoning, tentative map, parcel map, conditional use permit, variances, or architectural review. V. "Residential housing fund" means a fund or account designated by the City to maintain and account for all monies received from residential project applicants pursuant to this chapter. Not Yet Approved 161122 jb 0131520 7 December 20, 2016 W. "Residential ownership project" means any residential project that includes the creation of one or more new dwelling units that may lawfully be sold individually. A residential ownership project also includes the conversion of a residential rental project to a residential ownership project. X. "Residential project" means any development for which a planning permit or building permit is required that includes the creation of one or more new dwelling units, conversion of nonresidential uses to dwelling units, or the conversion of a use from a residential rental project to a residential ownership project. Y. "Residential rental project" means any residential project on property under common ownership and control that creates one or more net new dwelling units that cannot be lawfully sold individually. Z. "Very low income households" are those households whose income does not exceed the very low income limits applicable to Santa Clara County as defined in California Health and Safety Code Section 50105 and published annually pursuant to Title 25 of the California Code of Regulations, Section 6932 (or its successor provision) by the California Department of Housing and Community Development, generally households with incomes less than fifty percent (50%) of area median income. 16.65.025. Exemptions. The following development projects are exempt from the provisions of this chapter: A. Residential projects consisting of the construction of one or two units, unless included in a mixed use project. B. Accessory dwelling units. C. Junior accessory dwelling units. D. Places of worship; E. Colleges and universities F. Commercial recreation; G. Hospitals and convalescent facilities; H. Private clubs, lodges, and fraternal organizations; I. Private education facilities; J. Public Facilities; K. Retail service, eating and drinking service, personal service, or automotive service when the total additional service related square footage is 1,500 square feet or less. This exemption shall apply only when the additional square footage of new development does not exceed 1,500 square feet. Not Yet Approved 161122 jb 0131520 8 December 20, 2016 New development that is larger than 1,500 square feet shall pay a fee or otherwise comply with this Chapter for all square footage, including the first 1,500 square feet; L. New gross square footage used for (1) an on-site cafeteria, recreational facility, or day care facility provided for employees or their children and not open to the public; or (2) a hazardous materials storage facility; M. Projects that have established a vested right not to be subject to this chapter; and N. Any nonresidential project otherwise determined to be exempt pursuant to City Council resolution. If a development project is exempt from this Chapter at initial construction, but later converts to a use subject to this Chapter, the converted square footage will be deemed net new square footage or dwelling units, as applicable, subject to the requirements of this Chapter. 16.65.030 Basic Affordable Housing Requirement – Residential Ownership Projects. The provisions of this section shall apply to all residential ownership projects, including the residential ownership portion of any mixed use project containing three or more units, except for any residential ownership project exempt under Section 16.65.025. A. Unless an alternative is approved as described in Section 16.65.080, residential ownership projects shall provide the following: a. For projects on sites of less than five acres, fifteen percent (15%) of the dwelling units in the project shall be made available at affordable sales price to very low, low, and moderate income households; b. For projects on sites of five acres or more, twenty percent (20%) of the dwelling units in the project shall be made available at affordable sales price to very low, low, and moderate income households; and c. For projects that convert existing rental housing to condominiums, other residential ownership or nonresidential space or that remove existing rental housing, twenty-five percent (25%) of the dwelling units in the project shall be made available at affordable sales price to very low, low, and moderate income households. d. Calculations of the number of affordable units required by this Section shall be based on the number of dwelling units in the residential project, excluding any density bonus units. Projects shall not receive a credit for any existing dwelling units demolished as part of the project. B. The affordable units shall be made available at the following affordable sales prices: 1. For projects subject to subsections 16.65.030(A)(1) and (2), at least two-thirds of the required affordable units must be made available at affordable sales price to households earning eighty percent (80%) to one-hundred percent (100%) of the area median income, and one-third may be made available at affordable Not Yet Approved 161122 jb 0131520 9 December 20, 2016 sales prices to households earning between one-hundred percent (100%) and one-hundred twenty percent (120%) of the area median income. 2. For projects subject to subsection 16.65.030(A)(3), at least four-fifths of the required affordable units must be made available at affordable sales price to households earning eighty percent (80%) to one-hundred percent (100%) of the area median income, and one-fifth may be made available at affordable sales prices to households earning between one-hundred percent (100%) and one- hundred twenty percent (120%) of the area median income. C. When the affordable housing requirements described in this Section result in a fractional unit, an in-lieu payment as specified in Section 16.65.060 may be made for the fractional unit instead of providing an affordable unit, except that, if the project contains thirty (30) or more units, an additional affordable unit shall be provided for each fractional unit of 0.50 or more. The in-lieu fee for a fractional unit shall be calculated as described in the city’s affordable housing guidelines. 16.65.040 Basic Requirement – Mixed Use, Nonresidential and Residential Rental Projects. Unless the mixed use, nonresidential or residential rental project is exempt under Section 16.65.025 or an alternative is approved as described in Section 16.65.080, all mixed use, nonresidential and residential rental projects shall pay housing impact fees as specified in Section 16.65.060 to mitigate the projects’ impacts on the need for affordable housing; except that the residential ownership portion of a mixed use project containing three or more units shall comply with Section 16.65.030. 16.65.060 Housing Impact Fee and In-Lieu Fee. A. Fees. The amount of any housing impact fees and in-lieu fees shall be established from time to time by ordinance or resolution of the City Council. Housing impact fees shall not exceed the cost of mitigating the impact of mixed-use, nonresidential and residential rental projects on the need for affordable housing in the City. B. Fee Payment. Housing impact fees and in-lieu fees, if required, shall be paid prior to issuance of any building permit for a development project subject to this chapter or at a time otherwise specified by City Council ordinance or resolution. 16.65.070 Requirements for Residential Projects Containing Ownership and Rental Units and for Mixed Use Projects A. Residential Projects Containing Ownership and Rental Units. When a residential project includes both ownership and rental dwelling units, the provisions of this chapter that apply to ownership residential projects shall apply to that portion of the development that consists of ownership dwelling units, while the provisions of this chapter that apply to rental residential project shall apply to that portion of the development that consists of rental dwelling units. B. Mixed Use Projects Containing Residential Units. When a mixed use project contains three or more dwelling units, either residential rental or residential ownership, the Not Yet Approved 161122 jb 0131520 10 December 20, 2016 provisions of this chapter that apply to residential ownership and residential rental projects shall apply to those portions of the development that consist of residential ownership or residential rental units, as applicable, while the provisions of this chapter that apply to non-residential projects shall apply to that portion of the development that consists of non-residential uses. When a mixed use project contains fewer than three dwelling units, impact fees shall apply to those units. 16.65.075 Provision of Affordable Units. A. Standards for Affordable Units. 1. Affordable units shall be comparable in exterior appearance and overall quality of construction to market-rate units in the same housing development. Interior finishes and amenities must equal those provided in the base model market- rate units. 2. The number of bedrooms and the size of the affordable units shall be comparable to the average number of bedrooms in the market-rate units, except that in a single-family detached development, the decision-making body may allow smaller affordable units or duplex affordable units, if permitted in the zoning district, when this furthers the provision of on-site affordable units. The affordable units shall be reasonably dispersed within the residential project, with unit locations comparable to those of the market-rate units, or, subject to the approval of the Planning and Community Environment director, may be clustered within the residential project when this furthers affordable housing opportunities. 3. The affordable units shall have the same amenities as the market rate units, including the same access to and enjoyment of common open space, parking, storage, and other facilities in the residential project. B. Timing of Construction. The affordable units shall be constructed in proportion to construction of the market-rate units. No building permit shall be issued for any market-rate unit unless a proportional number of building permits have been issued for affordable units, and no certificates of occupancy or final inspections shall be issued for any market-rate units unless a proportional number of certificates of occupancy or final inspections have been issued for affordable units. An alternative phasing plan may be approved as part of the approval of the affordable housing plan described in Section 16.65.090. C. Continued Affordability. 1. All affordable units provided under Section 16.65.030 or Section 16.65.080 shall be subject to a resale restriction, deed of trust, and/or regulatory agreement recorded against the property for execution by the city manager, in a form approved by the city attorney, to ensure the continued affordability of the affordable units. Not Yet Approved 161122 jb 0131520 11 December 20, 2016 2. Notwithstanding Section 18.15.040, to be considered as affordable units under this chapter, all affordable units shall remain affordable to the targeted income group for 99 years, except in the case of affordable housing developments provided as an alternate means of compliance pursuant to Section 16.65.080, the City may authorize a 55 year affordability restriction if required to maintain eligibility for tax credit financing. 3. Any household that occupies an affordable unit must occupy that unit as its principal residence, unless otherwise approved in writing for rental to a third party for a limited period of time due to household hardship, as determined by the City. 4. No household may begin occupancy of an affordable unit until the household has been determined to be eligible to occupy that unit by the City or designee. 16.65.080 Alternative Means of Compliance. The developer of a mixed use, residential or nonresidential project may request an alternate means of compliance, as described in this section, as a component of the affordable housing plan required by Section 16.65.090. A. Provisions Applicable to All Alternatives. The following provisions apply to all alternative means of compliance described in this Section 16.65.080. 1. The applicant shall bear the burden of presenting substantial evidence to support a finding of infeasibility under Section 16.65.080(B) and to support the feasibility of any proposed alternative. The applicant shall set forth in detail the factual and legal basis for any request under this section. 2. Any request under this section shall be submitted to the Planning and Community Environment Director together with an economic analysis, if required, or other supporting documentation and shall be acted upon by the City Council. 3. When the affordable housing alternative results in a fractional unit, fees shall be paid as specified in the affordable housing guidelines for any fractional units. 4. All affordable units shall conform with the provisions of Section 16.65.075. 5. The city council may approve or conditionally approve any alternative set forth in this section if it makes all of the following findings and any additional findings required for the selected alternative: (a) The number of affordable units provided by the alternative equals or exceeds that provided by on-site units or by the payment of impact fees, as applicable to the project; (b) The level of affordability provided by the alternative is the same or lower as provided by on-site units or by the payment of impact fees, as applicable to the project; and Not Yet Approved 161122 jb 0131520 12 December 20, 2016 (c) The alternative is consistent with the comprehensive plan and housing element and the provisions of this chapter. B. Residential Ownership Projects. 1. If the provision of affordable ownership units under Section 16.65.030 is infeasible, an applicant for a residential ownership project may request, in order of priority, to: (a) provide on-site affordable rental units as provided in subsection C below; (b) provide off-site affordable units as provided in subsection D below; (c) dedicate land for affordable housing as provided in subsection D below; (d) rehabilitate and convert existing residences to affordable housing, or preserve existing affordable housing, as provided in subsection E below; or (e) pay the in-lieu fee adopted as described in Section 16.65.060. The applicant must demonstrate that each of the higher priority options is infeasible before the City will consider a lower priority option. 2. For the purposes of this section, "infeasible" means either that: (a) the affordable sales price would be less than the cost of constructing the affordable unit, including financing but excluding all other costs, including land, marketing, improvements, and profit; or (b) provision of the units would produce a confiscatory or unconstitutional result. C. Affordable Rental Units in a Residential Ownership Project or a Residential Rental Project. 1. An applicant for a residential ownership project or a residential rental project may elect to make available dwelling units in the residential project at affordable rent rather than provide on-site for-sale affordable units or pay housing impact fees, as applicable. The city council may by ordinance or resolution specify the percentage and affordability level of rental affordable units that are equivalent to provision of on-site for-sale affordable units or payment of housing impact fees, as applicable. 2. To ensure compliance with the Costa-Hawkins Act (Chapter 2.7 of Title 5 of Part 4 of Division 3 of the Civil Code), the City may approve such a proposal only if the applicant agrees in a rent regulatory agreement with the City to limit rents in consideration for a direct financial contribution or a form of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code. 3. Any rent regulatory agreement for rental units in a residential ownership project shall include provisions for sale of the affordable units and relocation benefits for tenants of the affordable units if the owner of the residential ownership project later determines to offer the affordable units in the residential project for sale to moderate income households at an affordable sales price. D. Dedication of Land and Off-Site Construction of Affordable Units. Not Yet Approved 161122 jb 0131520 13 December 20, 2016 1. The applicant may submit an affordable housing plan that proposes either to dedicate vacant land suitable for affordable housing or to construct affordable units on another site. Two or more applicants may also jointly propose the provision of vacant land suitable for affordable housing or the construction of off-site affordable units on a single site. 2. Construction of the off-site affordable units may not commence prior to the first approval of the residential project, and construction of the off-site units must occur concurrently with construction of the market-rate units in the residential project as described in Section 16.65.075. 3. The city council may approve or conditionally approve the dedication of land or off-site construction if it makes all of the following findings in addition to making the findings in subsection (A)(5) above: (a) Financing or a viable financing plan, which may include public funding, is in place for the off-site affordable units; and (b) The off-site location is suitable for the proposed affordable housing, consistent with any affordable housing guidelines and the Housing Element, and will not tend to cause residential segregation. 4. No building permit shall be issued for any units in the residential project until committed funding is available for the off-site units, or units to be constructed on land to be dedicated. 5. Off-site construction of affordable units does not qualify the residential project for a density bonus or other regulatory incentives allowed by Government Code Section 65915 unless the off-site development includes the dedication of land conforming to the provisions of Section 65915(g). No off-site alternative may be approved by the City if a density bonus or other regulatory incentive is requested for the site on which the affordable housing is to be built. Any off- site alternative must comply with the density, intensity and other development standards that are permitted under the zone for the site. E. Rehabilitation and Conversion of Existing Market-Rate Housing. 1. The applicant may submit an affordable housing plan that proposes the rehabilitation and conversion of existing market-rate housing to affordable housing, or the preservation of existing affordable housing that is not deed restricted as affordable. 2. The market-rate units to be converted to affordable units shall be located in a residential project that is not subject to any existing affordability covenants except covenants restricting other units in the development. 3. The affordable housing plan shall include a plan for long-term financial sustainability of the market-rate units to be converted to affordable units, which Not Yet Approved 161122 jb 0131520 14 December 20, 2016 incorporate, among other things, provisions to accommodate increases in homeowners’ association fees, special assessments and maintenance costs. 4. Any existing tenants in the market-rate units to be converted to affordable units shall be eligible to remain in the units; or the applicant shall provide relocation assistance pursuant to Cal. Gov’t Code §§ 7260 et seq. 5. The city council may approve or conditionally approve the proposal if it makes all of the following findings in addition to making the findings in subsection (A)(5) above: (a) The proposal includes substantial rehabilitation of the existing housing equal to at least 25 percent of the after-rehabilitation value of the property, inclusive of land value, and the units shall be in decent, safe and sanitary condition and in compliance with all codes; (b) Financing or a viable financing plan is in place for the units to be converted to affordable units; and (c) The off-site location is suitable for the proposed affordable housing, consistent with any affordable housing guidelines and the Housing Element, and will not tend to cause residential segregation. 6. No building permit shall be issued for any units in the residential project until regulatory agreements approved by the city have been recorded for the existing units to be converted to affordable housing. F. Mixed Use Projects. An applicant for a mixed use development may submit an affordable housing plan that proposes to mitigate the affordable housing impacts of the non-residential and residential rental portions of the development through any of the options listed above or through on-site provision of affordable units conforming with applicable provisions of Section 16.65.075. In addition to making the findings in subsection (A)(3) above, the city council may approve or conditionally approve such an alternative if it determines, based on substantial evidence, that such alternative will provide equal or greater public benefit than would payment of the housing impact fee. G. Nonresidential Projects. An applicant for a nonresidential development may submit an affordable housing plan that proposes to mitigate the affordable housing impacts of the development through any of the options listed above or through on-site provision of affordable units conforming with applicable provisions of Section 16.65.075. In addition to making the findings in subsection (A)(5) above, the city council may approve or conditionally approve such an alternative if it determines, based on substantial evidence, that such alternative will provide equal or greater public benefit than would payment of the housing impact fee. 16.65.090 Application and Review Procedures. A. Affordable Housing Plan. Not Yet Approved 161122 jb 0131520 15 December 20, 2016 1. All residential ownership projects and any mixed use, residential rental or nonresidential project proposing to provide affordable units under the provisions of Section 16.65.080 shall submit an affordable housing plan concurrently with the application for the first approval of the project. The city shall provide an application form specifying the contents of the affordable housing plan. If an affordable housing plan is required, no application for a first approval the project may be deemed complete until a complete affordable housing plan is submitted. The cost of reviewing any proposed alternative, including but not limited to the cost to the City of hiring a consultant to review the application, shall be borne by the applicant. 2. No affordable housing plan is required for a mixed use, residential rental project or a nonresidential project if the applicant proposes to pay housing impact fees, or if the project is exempt under Section 16.65.025. 3. Any affordable housing plan shall be processed concurrently with all other permits required for the development project. Before approving the affordable housing plan, the decision-making body shall find that the affordable housing plan conforms to this chapter. A condition shall be attached to require recordation of an affordable housing agreement, as described in subsection B of this section below, prior to the approval of any final or parcel map or building permit for the development project. 4. The approved affordable housing plan may be amended prior to issuance of any building permit for the development project. A request for a minor modification of an approved affordable housing plan may be granted by the Planning and Community Environment Director if the modification is substantially in compliance with the original affordable housing plan and conditions of approval. Other modifications to the affordable housing plan shall be processed in the same manner as the original plan. B. Affordable Housing Agreement. 1. Affordable housing agreements acceptable to the city manager or designee and approved as to form by the city attorney shall be recorded against the residential or nonresidential project prior to approval of any final or parcel map, or issuance of any building permit, whichever occurs first, unless the project is required only to pay impact fees. 2. The affordable housing agreement shall specify the number, type, location, size, and phasing of all affordable units, provisions for income certification and screening of potential purchasers or renters of units, and resale control mechanisms, including the financing of ongoing administrative and monitoring costs, consistent with the approved affordable housing plan and any affordable housing guidelines, as determined by the city manager or designee. C. The City Council, by resolution, may establish fees for the ongoing administration and monitoring of the affordable units, which fees may be updated periodically, as required. Not Yet Approved 161122 jb 0131520 16 December 20, 2016 D. The Planning and Community Environment Director may adopt affordable housing guidelines to implement this chapter, and may update those guidelines periodically as required. 16.65.100 Affordable Housing Funds. A. All housing impact fees or other funds collected under this chapter shall be deposited into the City’s Commercial and Residential Housing Funds. B. The monies in the Commercial and Residential Housing Funds and all earnings from investment of the moneys in the Funds shall be expended exclusively to provide housing affordable to very low income, lower income, and moderate income households in the City, consistent with the goals and policies contained in the City’s Housing Element and for administration and compliance monitoring of the affordable housing program. 16.65.110 Administrative Relief. A. As part of an application for the first approval of a residential or nonresidential project, a developer may request that the requirements of this chapter be waived or modified by the city council, based upon a showing that applying the requirements of this chapter would result in an unconstitutional taking of property or would result in any other unconstitutional result. B. The request for a waiver or modification shall set forth in detail the factual and legal basis for the claim. C. Any request for a waiver or modification shall be reviewed and considered at the same time as the project application or any affordable housing plan. D. The waiver or modification may be approved only to the extent necessary to avoid an unconstitutional result, based upon legal advice provided by or at the behest of the City Attorney, after adoption of written findings, based on legal analysis and substantial evidence. If a waiver or modification is granted, any change in the project shall invalidate the waiver or modification, and a new application shall be required for a waiver or modification under this section. 16.65.120 Enforcement. A. Penalties. Persons employed in the following designated employee positions are authorized to exercise the authority provided in the California Penal Code Section 836.5 and are authorized to issue citation for violations of this chapter: development services director, director of planning and community environment and their designees. Not Yet Approved 161122 jb 0131520 17 December 20, 2016 B. The city attorney shall be authorized to enforce the provisions of this chapter and all affordable housing agreements, regulatory agreements, and all other covenants or restrictions placed on affordable units, by civil action and any other proceeding or method permitted by law. C. Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any developer or owner from the requirements of this chapter. No permit, license, map, or other approval or entitlement for a residential project shall be issued, including without limitation a final inspection or certificate of occupancy, until all applicable requirements of this chapter have been satisfied. D. The remedies provided for in this section shall be cumulative and not exclusive and shall not preclude the city from any other remedy or relief to which it otherwise would be entitled under law or equity. SECTION 4. Severability. If any section, subsection, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and adopted this Ordinance, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. SECTION 5: CEQA. This ordinance is exempt from the California Environmental Quality Act (CEQA) under State CEQA Guidelines Section which 15061(b)(3) providing an exemption for administrative actions that do not result in physical changes to the environment; Section 15378(b)(4) providing an exemption for government funding mechanisms which do not involve a commitment to any specific project and Section 15305 (Minor Alterations in Land Use Limitations), a categorical exemption that applies to code amendments that will not have any significant environmental effects. / / / / / / / / / / / / / / / / Not Yet Approved 161122 jb 0131520 18 December 20, 2016 SECTION 6: Public Notice and Effective Date. This Ordinance shall take effect 31 days after its adoption by the City Council or concurrent with Ordinance ___, whichever occurs later. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ _____________________________ Senior Asst. City Attorney City Manager _____________________________ Director of Planning and Community Environment Not Yet Approved Ordinance No. Ordinance of the Council of the City of Palo Alto Establishing Housing Impact Fees and Housing In‐Lieu Fees for Residential, Nonresidential, and Mixed Use Developments The Council of the City of Palo Alto ORDAINS as follows: A. On November 10, 2014 the City Council of the City of Palo Alto adopted its 2015‐ 2023 Housing Element which includes the policy of encouraging, fostering, and preserving diverse housing opportunities and which contemplates, among other things, an amendment of the City's below market rate program to promote this policy and to be consistent with case law related to inclusionary rental housing; and B. To implement the affordable housing goals, policies and programs of the City's 2015‐2023 Housing Element, the City Council has considered and introduced on this same date Ordinance No. repealing Chapters 18.14 and 16.47 of the Palo Alto Municipal Code and adding a new chapter 16.65, Citywide Affordable Housing Requirements (the "Affordable Housing Ordinance"), which provides, among other things, that the City Council shall establish, from time to time, housing impact fees that may be applicable to residential rental projects, mixed use projects, and nonresidential projects and housing in‐lieu fees that may be applicable to residential ownership projects. The Affordable Housing Ordinance further provides that the City Council may specify the percentage and affordability level of rental affordable units that are equivalent to provision of on‐site for‐sale affordable units or payment of housing impact fees. C. To ensure that future development projects mitigate their impact on the need for affordable housing in Palo Alto, and to ensure that any adopted housing impact fees or in‐ lieu fees do not exceed the actual affordable housing impacts attributable to the development projects to which the fees relate, the City Council has received and considered two reports from Strategic Economics and Vernazza Wolfe Associates dated October and November 2015 and entitled "Residential Impact Fee Nexus Study" and "Commercial Linkage Fee Nexus Study", respectively (collectively, the "Nexus Studies"), and the findings of the Nexus Studies are incorporated into this Ordinance by this reference. D. The Nexus Studies use widely used, appropriate methodology to determine the maximum amount needed to fully mitigate the burdens created by residential, nonresidential and mixed‐use development on the need for affordable housing and establish that there is a reasonable relationship between the need for affordable housing and impacts of development for which a fee is charged, and that there is also a reasonable relationship between the impact fee’s use and the type of development for which the fee is charged. E. To ensure that development projects remain economically feasible, the recommended housing impact fees and in‐lieu fees as shown in the attached Exhibit A are 161122 jb 0131543 1 Nov. 28, 2016 2161122 jb 0131543 Nov.28,2016 lower than the maximum amount needed to fully mitigate the burdens created by new development on the need for affordable housing as determined by the Nexus Studies. F. The City Council now desires to adopt housing impact fees and in‐lieu fees for certain residential, nonresidential, and mixed‐use development projects as authorized by the Affordable Housing Ordinance, which fees do not exceed the justified fees needed to mitigate the actual affordable housing impacts attributable to the development projects to which the fees relate, as determined by the Nexus Studies; and further desires to specify the percentage and affordability level of rental affordable units that are equivalent to provision of on‐site for‐ sale affordable units or payment of housing impact fees. The City Council further finds that the housing impact fees for retail, restaurant and other non‐residential uses (excluding hotels, office, medical office and research and development uses) analyzed in the May 2002 Nexus Study and set forth in the 2016‐17 Municipal Fee Schedule are sufficient to mitigate the actual affordable housing impacts attributable to the development projects to which the fees relate. G. The housing in‐lieu fees adopted by this ordinance provide an alternative method for calculating the in‐lieu fees described by Program H3.1.2 of the City's 2015‐2023 Housing Element which, as described in the record, will in most instances provide equivalent or greater total revenue to the Residential Housing Fund. H. In compliance with the Affordable Housing Ordinance, all in‐lieu fees and impact fees collected shall be deposited into the City’s Commercial and Residential Housing Funds to be used only for those purposes included in the Affordable Housing Ordinance. I. At least ten days prior to the date this ordinance is being heard, data was made available to the public indicating the amount of cost, or estimated cost, required to provide the service for which the fee or service charge is levied and the revenue sources anticipated to provide the service, including general fund revenues, in accordance with Government Code Section 66019. J. At least fourteen days prior to the date this ordinance is being heard, notice was provided to any persons or organizations who had requested notice, in accordance with Government Code Sections 66004 and 66019. K. Notice of the hearing on the proposed fees was published twice in the manner set forth in Government Code Section 6062a as required by Government Code Sections 66004 and 66018. L. The City Council has reviewed the information contained in this Ordinance and the accompanying staff report and all written and oral testimony at a meeting held on , 2016. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: 3161122 jb 0131543 Nov.28,2016 SECTION 1. The foregoing recitals are true and correct and incorporated by this reference. SECTION 2. The City Council hereby repeals the housing impact and housing in lieu fees contained in the 2016‐2017 Municipal Fee Schedule as adopted by City Council Ordinance 5386. SECTION 3. The City Council hereby amends the Municipal Fee Schedule by adopting housing impact fees and in‐lieu fees for residential ownership development projects, for residential rental development projects, residences in mixed‐use projects, and nonresidential development, as shown on Exhibit "A", attached hereto and incorporated by this reference. SECTION 4. The City Council may review housing impact and in‐lieu fees from time to time. For any annual period during which the City Council does not review the housing impact and in‐lieu fees, fee amounts shall be adjusted in accordance with Chapter 16.64. SECTION 5. As provided in Section 16.65.080(C)(1) of the Affordable Housing Ordinance, the City Council hereby determines that the following percentages of rental affordable units that are equivalent to provision of on‐site for‐sale affordable units or payment of housing impact fees: Required Affordable Rental Units (Where rental alternative requested under 16.65.080(C)) Rental Alternative to For‐Sale Units (Sites Less than 5 Acres)* Rental Residential (no condo map) Income Category Very Low Income Low Income 15% Moderate Income 15% TOTAL 15%15% *Rental alternative equivalents for projects over 5 acres will be subject to Council approval on a case by case basis. SECTION 6. The City has determined that the housing mitigation fees should be adopted and administered consistent with the requirements applicable to fees for public facilities in California Government Code Section 66000 et seq., commonly referred to as the Mitigation Fee Act, without determining that it is required to do so. 4161122 jb 0131543 Nov.28,2016 SECTION 7. Adoption of this ordinance is exempt from the California Environmental Quality Act because the proposed fee increase is not a project, in that it is a government funding mechanism which does not involve any commitment to any specific project (CEQA Guidelines Section 15378(b)(4)). SECTION 8. Severability. If any section, subsection, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and adopted this Ordinance, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. SECTION 9. This Ordinance shall be effective upon the sixtieth (60th) day after its passage and adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: City Manager Director of Planning and Community Environment Director of Administrative Services 5161122 jb 0131543 Nov.28,2016 Not Yet Approved EXHIBIT A Housing Impact Fees and In‐Lieu Fees Residential Projects: " Residential Floor Area" for Single‐Family Detached and Attached Homes includes all horizontal areas of the several floors of such buildings measured from the exterior faces of exterior walls or from the center line of party walls separating two (2) buildings, minus the horizontal areas of such buildings used exclusively for parking. Basements shall be included in this measurement when they include livable area. "Residential Floor Area" for Apartments and Condominiums includes all horizontal areas of the several floors of such buildings measured from the exterior faces of exterior walls or from the center line of party walls separating two (2) buildings, minus the horizontal areas of such buildings used exclusively for covered porches, patios, or other outdoor space, amenities and common space, parking, elevators, stairwells or stairs between floors, hallways, and between‐ unit circulation. “Net New Residential Floor Area” for Rental Projects (Apartments) means the Residential Floor Area for the net new units. Residential Ownership Projects and Residential Ownership Units in Mixed Use Projects * (For fractional units & where in‐lieu fee approved under 16.65.080(B)) In‐Lieu Fee per Square Foot of Residential Floor Area Single‐Family Detached Home $50 Single‐Family Attached Home $50 Condominiums $50 Residential Rental Projects and Residential Rental Units in Mixed Use Projects* Impact Fee per Square Foot of Net New Residential Floor Area Apartments $5020 *The residential ownership portion of a mixed use project containing three or more units shall comply with Section 16.65.030 unless an alternative means of compliance is authorized under Section 16.65.080(F). The residential rental portion of a mixed use project containing three or more units shall comply with Section 16.65.040 unless an alternative means of compliance is authorized under Section 16.65.080(F). The residential component of mixed use projects containing fewer than three dwelling units shall be subject to the housing impact fees shown in this table. 6161122 jb 0131543 Nov.28,2016 Residential projects may be exempt from payment of housing impact and housing in‐lieu fees as provided in Section 16.65.025. Nonresidential Projects and Nonresidential Square Footage in Mixed‐Use Projects “Nonresidential Floor Area” includes all horizontal areas of the several floors of such buildings measured from the exterior faces of exterior walls or from the center line of party walls separating two (2) buildings, minus the horizontal areas of such buildings used exclusively for parking. If no non‐residential use existed on the site within one year prior to the issuance of a building permit for the project, the Housing Impact Fee is calculated by multiplying the Nonresidential Floor Area contained in the project by the relevant Housing Impact Fee. Where another non‐residential use existed on the site within one year prior to the issuance of a building permit for the project, the Housing Impact Fee is calculated by: 1. Multiplying the Nonresidential Floor Area contained in the project by the relevant Housing Impact Fee; 2. Multiplying the Nonresidential Floor Area of the former use by the relevant Housing Impact Fee shown in this table; and 3. Subtracting the amount calculated in Step 2 from the amount calculated in Step 1. Nonresidential Use Housing Impact Fee per Square Foot of Nonresidential Floor Area Hotel $30 Retail, Restaurants and Other Non‐ Residential* Uses $20.37** Office, Medical Office and Research and Development $60 *Hotels and Office, medical office and research and development uses are not included in “other non‐residential uses.” **This rate is carried over from the 2016‐17 Municipal Fee Schedule as analyzed in the May 2002 Nexus Study and adjusted for inflation. Nonresidential projects may be exempt from payment of housing impact fees as provided in Section 16.65.025. 1 Murillo-Garcia, Eloiza From:Gitelman, Hillary Sent:Monday, January 09, 2017 7:57 AM To:Murillo-Garcia, Eloiza; Silver, Cara Subject:FW: Consent Calendar Item 14 - January 9, 2017, Regular Meeting Attachments:LWVPA LTR 2017Council Housing Fees.docx FYI Hillary Gitelman | Planning Director | P&CE Department 250 Hamilton Avenue | Palo Alto, CA 94301 T: 650.329.2321 |E: hillary.gitelman@cityofpaloalto.org Please think of the environment before printing this email – Thank you! From: LWV of Palo Alto [mailto:lwvpaoffice@gmail.com] Sent: Saturday, January 07, 2017 2:26 PM To: Council, City Subject: Consent Calendar Item 14 - January 9, 2017, Regular Meeting Dear City Council, Attached please find a letter from the League of Women Voters of Palo Alto requesting that Item No. 14 be removed from the Consent Calendar for the January 9, 2017, City Council regular meeting. Thank you. Bonnie Packer President -- League of Women Voters of Palo Alto 3921 E. Bayshore Road, Suite 209 Palo Alto, CA 94303 (650) 903-0600 January 7, 2017 Greg Scharff, Mayor, and City Council Members 250 Hamilton Ave Palo Alto, CA 94301 Re: January 9, 2017, Consent Calendar Item No. 14: Housing Impact Fee Ordinance - Second Reading Dear Mayor Scharff and City Council Members, The League of Women Voters of Palo Alto (LWVPA) requests that Consent Calendar Item No. 14, Housing Impact Fee Ordinance - Second Reading, be removed from the Consent Calendar to give the Council an opportunity to further consider the recommendations of the Planning and Transportation Commission (P&TC). While the Council did accept one of the P&TC recommendations regarding the impact fee for new rental housing, LWVPA urges the Council to consider the other recommendations of the P&TC for the reasons in LWVPA’s December 7, 2016, letter to the Council on these ordinances as set forth below. The League of Women Voters of Palo Alto (LWVPA) applauds the City’s continuing efforts to provide mechanisms for the provision of housing for those with very low, low and moderate incomes. LWVPA has historically supported both Palo Alto's inclusionary housing program and the assessment of housing impact fees on non-residential development for the Affordable Housing Fund. These programs have provided many below market rate (BMR) rental and for-purchase homes and have been a valuable source of funding for very low, low and moderate income housing developments in Palo Alto. For this reason, LWVPA supports the proposed Citywide Affordable Housing Requirements Ordinance and the housing impact fees recommended by the Planning and Transportation Commission (P&TC). In our comments to the P&TC on this ordinance, LWVPA noted the difficulty in balancing the desire to ensure there is a robust Affordable Housing Fund to support development of multi-unit housing for those with very low, low and moderate incomes versus the desire to have a certain amount of below market rate housing units sprinkled throughout the City. The Commissioners’ thoughtful discussions on this and other important policy issues were the basis for their fee recommendations regarding the ordinance and the associated fee schedule. LWVPA supports the P&TC impact fee recommendations that differ from the staff recommendation for the following reasons: • An impact fee on new rental housing that is comparable to neighboring cities – between $10-20 per square foot – would alleviate the negative impact to renters who are already struggling to pay the current exceedingly high rental rates. • An impact fee of $95 per square foot on new detached market rate housing would help maintain a robust Affordable Housing Fund. LWVPA realizes that the effect on the City’s affordable housing policies and goals of the fee schedule is unknown; therefore, we support the P&TC proposals that the impact fees for the non-residential developments be phased in over five years and that all the impact fees be reviewed annually by the P&TC. THE LEAGUE OF WOMEN VOTERS OF PALO ALTO 3921 E. BAYSHORE RD., SUITE 209 • PALO ALTO, CALIFORNIA 94303 • 650-903-0600 • www.lwvpaloalto.org While LWVPA supports the proposed Citywide Affordable Housing Requirements Ordinance, we still have concerns that the thrust of the ordinance is to favor on-site below market rate units as opposed to the payment of fees. We noted in our letter to the P&TC: While LWVPA supports policies that allow for the provision of units for those with moderate incomes where it is feasible for a developer to do so, LWVPA notes that this ordinance may have the consequence of producing much less cash for the Affordable Housing Fund. Today, cash from this Fund can be leveraged to obtain other sources of funding (for example through the federal Tax Credit program) for the development of many more units for those with very low and low incomes, than can otherwise be produced when a developer provides units on or off site rather than housing impact fees. Thank you for considering our comments. Very truly yours, Bonnie Packer President League of Women Voters of Palo Alto 1 Murillo-Garcia, Eloiza From:Gitelman, Hillary Sent:Monday, January 09, 2017 7:56 AM To:Murillo-Garcia, Eloiza; Silver, Cara Subject:FW: Consent item 14 impact fees FYI Hillary Gitelman | Planning Director | P&CE Department 250 Hamilton Avenue | Palo Alto, CA 94301 T: 650.329.2321 |E: hillary.gitelman@cityofpaloalto.org Please think of the environment before printing this email – Thank you! ‐‐‐‐‐Original Message‐‐‐‐‐ From: Steve Levy [mailto:slevy@ccsce.com] Sent: Sunday, January 08, 2017 10:04 AM To: Council, City Subject: Consent item 14 impact fees I support removing the item from the consent calendar and scheduling a later hearing to review the previous decisions. As Chair of the League of Women Voters Housing and Transportation committee, I strongly support the letter(s) sent to you on this issue by Bonnie Packer. I believe two principles established by council in the minimum wage discussion are useful guides for reviewing impact fee decisions: 1‐‐comparability with neighboring jurisdictions and 2‐‐phasing These issues have been raised by council members, PTC members and the League. I know that the fees are designated for housing assistance for low income resident and I know also that the past five years have been so strong in job growth that it seemed that any level of fess would not deter the desire to build in Palo Alto. But I also know professionally that job growth is entering a period of dramatic slowdown regionally and will become much more competitive. Finally I know that many council members have mentioned fiscal stability and sustainability as important goals. 2 As the year proceeds I encourage the council to 1) revisit the city economic development policy statement of January 2013 and consider the economic and fiscal implications of decisions on fees and other policies. Stephen Levy 365 Forest 5A Palo Alto CA 94301 City of Palo Alto (ID # 7705) City Council Staff Report Report Type: Action Items Meeting Date: 3/27/2017 City of Palo Alto Page 1 Summary Title: PUBLIC HEARING: 900 N. California Avenue Appeal Title: PUBLIC HEARING. 900 N. California Avenue [15PLN-00155]: Appeal of the Planning and Community Environment Director's Architectural Review Approval of Three new Single-Family Homes, one With a Second Unit. Environmental Review: Categorically Exempt per CEQA Guidelines Section 15303(a) (New Construction or Conversion of Small Structures), Zoning District: R-1 From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council adopt the Record of Land Use Action in Attachment N, thereby denying the appeal, upholding the Director’s approval of an Architectural Review application based on a modified design removing two of the three previously proposed basements, and finding the proposed project exempt from review under the California Environmental Quality Act. Background This report relies upon and transmits previously prepared staff reports and other information related to the project and the requested appeal. The project, in summary, is a request to construct three new homes at the subject address. One of the residences includes an accessory dwelling unit. The parcel is one large lot with three existing homes. Applicant has received approval to subdivide the parcel into three lots. A separate architectural review application was reviewed by the Architectural Review Board (ARB) and approved by the director. This decision was ultimately appealed. The appellant’s reasons for the appeal are included with this report (Attachment B). City of Palo Alto Page 2 Pursuant to city procedures, the appeal was considered on consent, first on January 9th and again on January 23rd. Public testimony provided on the 23rd encouraged the Council to hold a public hearing on the project based on two primary concerns 1) related to de-watering for three proposed basements, and 2) a lack of neighborhood awareness of the Architectural Review Board (ARB) hearing held on September 15, 2016. Following the Council’s decision to consider the appeal, the applicant has reported meeting with neighbors and has modified the project to remove the basement from two of the three proposed homes. The applicant has submitted revised drawings to reflect this change (Attachment M). The plans show minor changes to the first floor, however, no changes have been made to the second floor. A condition of approval memorializing this change has been included in the Record of Land Use Action (RLUA) (Condition #2 in Section 5 of Attachment A). More recently, on March 7, 2017, the City Council adopted new standards and protective measures for testing and monitoring temporary construction-related dewatering. The RLUA has been updated to include a condition requiring compliance with this ordinance and other policies related to dewatering (Condition #3 in Section 5 of Attachment N). While there may be other neighborhood-related concerns associated with the project, the principal concern regarding dewatering appears to be mitigated based on the revised plans and recent council action on dewatering policies. The RLUA also includes other conditions related to tree preservation, approval of a construction logistics plan, and a variety of other standard conditions. Staff received correspondence from the appellant on March 12, 2017, indicating that they are pleased the applicant is volunteering to eliminate two of the three planned basements. The appellant continued, stating that “throughout the neighborhood the overwhelming consensus is that development of this property is welcomed, as long as it does not involve broad area dewatering.” Attachment P contains the draft project plans without basements. Based on the foregoing, staff recommends the City Council approve the project based on the revised plans and accompanying RLUA. Environmental Review The proposed project is categorically exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15303(a) (New Construction or Conversion of Small Structures). Attachments: Attachment A: Location Map (PDF) Attachment B: Appeal Letter (PDF) City of Palo Alto Page 3 Attachment C: Excerpt Minutes of September 15, 2016 ARB Hearing (DOC) Attachment D: Tentative Approval Letter with Findings and Conditions (PDF) Attachment E: ARB Hearing Notice (PDF) Attachment F: Director's Decision Notice (PDF) Attachment G: On-site Project Signage (DOCX) Attachment H: Palo Alto Weekly Publication September 2, 2016 (PDF) Attachment I: Project Details (DOCX) Attachment J: Project Plans (DOCX) Attachment K: Excerpt Action Minutes of November 14, 2016 Council Hearing (DOCX) Attachment L: Signed Record of Land Use for Parcel Map (PDF) Attachment M: Council Questions & Responses (PDF) Attachment N: Draft Record of Land Use Action (DOCX) Attachment O: January 9th, 2017 Staff Report (DOCX) Attachment P: Draft Project Plans - No Basements (PDF) City of Palo Alto Page 1 Excerpt Minutes of September 15, 2016 1 Architectural Review Board 2 3 4 5 6 7 8 9 900 N California Ave [15PLN-00155]: Request by Kohler Associates Architects, on behalf of Greg Xiong, 10 for Architectural Review of three single-family homes to replace three existing homes. Environmental 11 Review: Categorically Exempt per CEQA Guidelines Section 15303(a) (New Construction or Conversion 12 of Small Structures). Zoning District: Single Family Residential District (R-1). For more information 13 contact the planner, Adam Petersen, at APetersen@m-group.us. 14 15 Adam Petersen reviewed details of the proposed project. Staff found the project to be consistent with the 16 Comprehensive Plan, the Individual Review guidelines for single-family homes and the Zoning Code 17 Development Standards. Staff recommended the Architectural Review Board recommend the Director find the 18 project exempt from the California Evaluation Quality Act and recommend approval subject to the conditions 19 and findings of approval. 20 21 Roger Kohler, Kohler Associates Architects, noted the project had been subjected to the Individual Review 22 process. Jeff Kuo described the neighborhood context, the design concept, and details of the three houses. 23 24 Board Member Baltay requested staff provide the history of review of this project. Ms. Gerhardt clarified that 25 the City's IR architect had reviewed the project and provided comments. Board Member Baltay inquired 26 whether the Board could assume that the IR process would approve the project or if the Board should make 27 that determination. Ms. Gerhardt explained that the same guidelines applied to an Individual Review as an 28 Architectural Review. 29 30 Board Member Kim requested an explanation for Condition of Approval 3A. Ms. Gerhardt referred to an 31 interpretation of the allowed basement under the footprint of buildings. An applicant was allowed to complete 32 the square in two areas where those were under an entry porch or a back porch. In this floor plan, there 33 wasn't a sliding glass door or something to that extent to make it an entry. Board Member Kim reiterated that a 34 door was being required so that it was an entry. 35 36 Board Member Furth inquired regarding the minimum lot size. Ms. Gerhardt indicate the minimum lot size was 37 6,000 square feet and the maximum was 9,999 square feet. 38 39 Vice Chair Lew requested the logic for the placement of the garage and the guest house on Lot 3. Mr. Kohler 40 indicated that combining them resulted in a fairly large building. Two separate buildings allowed plantings and 41 trees, and the home had more of a backyard feel. Vice Chair Lew added that one building would be large and 42 low to meet daylight plane requirements. Mr. Kohler noted the maximum allowed height was 12 feet. Vice 43 Chair Lew inquired regarding a minimum separation between accessory buildings. Ms. Gerhardt advised of a 44 minimum separation for accessory structures of 3 feet. The minimum separation for a second dwelling unit was 45 12 feet from the main dwelling. 46 47 Board Member Kim asked if there was a reason the secondary dwelling unit was not built to 900 square feet. 48 Mr. Kohler indicated floor area limits prevented a larger building. Board Member Kim added that increasing the 49 size of the secondary dwelling unit would not exceed the total floor area. Mr. Kohler asked if Board Member 50 Kim was encouraging him to build to the maximum size. Board Member Kim was encouraging secondary 51 dwelling units that would serve a second family as best as possible. Mr. Kuo clarified that the allowable floor 52 area was 4,777 square feet. Board Member Kim was mistakenly looking at lot coverage only. 53 City of Palo Alto Page 2 1 Board Member Baltay inquired regarding the width of the driveway easement on Lot 3. Mr. Kuo responded 10 2 feet 10 inches. 3 4 Greg Xiong stated the existing structures were not a good use of those sites. He proposed living in one of the 5 homes and selling the other two. 6 7 Board Member Kim indicated the IR process addressed most issues. Some sheets for Lot 1 had the wrong 8 address. On Sheet A5, part of the roof plane was shown incorrectly. He felt the project would dramatically 9 change the intersection. He was interested in seeing 3D site perspectives showing the three homes in relation 10 to neighboring single-story homes. Considering the size of the homes, he did not like the garage placement on 11 Lot 2 with the side entry. The proposed homes were large; yet, Lots 1 and 2 had only single-car garages. The 12 garage and guest house on Lot 3 needed more thought. 13 14 Vice Chair Lew liked the design of project. The porches were very desirable and would make the neighborhood 15 look better. Blending the two-story mass with one-story hipped roofs helped tie the house into the 16 neighborhood. His only issue was the Lot 3 guest house. There was little privacy from the adjacent house as 17 the structure was located only 6 feet from the property line. He suggested adding a buffer or moving the 18 building back for landscaping or a taller fence. Ms. Gerhardt reported staff had not received any comments 19 from neighbors. 20 21 Board Member Furth agreed the project would be quite a transformation of the corner. She could not find 22 "guest house" in the City's glossary. Ms. Gerhardt indicated the proper term was second dwelling unit. Board 23 Member Furth suggested marking those as second dwelling units so the Board could understand which 24 standards to apply. The relationship between Lot 3 and 920 California Avenue was problematic. The proposed 25 structures would surround a small, low-key house on two sides. She could not make the finding that it 26 adequately addressed the neighboring issue. Lot 3 would require significant screening/landscaping on the north 27 side, which would require widening the driveway. The same applied to the accessory dwelling unit. She 28 inquired whether one of the covered spaces was required for the accessory dwelling unit. Mr. Petersen advised 29 that the Code required one parking space in the garage and one outside the garage. Board Member Furth felt a 30 garage shared by two separate uses should be a divided space. She would not want to approve the project 31 without a bifurcated garage. She expressed some concern that the design of the house made it look bigger 32 than the square footage needed to look. Replacement houses along California Avenue were set back and low 33 key. The three proposed homes were not differentiated, but appeared to be built as a set of three. 34 35 Board Member Baltay shared Vice Chair Lew's sentiment that the homes were handsome and fit into the fabric 36 of the community. He liked the wrap-around corner porch on Lot 2 as well as the plaster finish with curved 37 eave detailing. That provided a notable corner. He did not share the sentiment that the three homes were 38 sufficiently different. They were clearly individually designed for individual circumstances. He could support the 39 project overall. The driveway space on Lot 3 was too narrow and needed a minimum of 12 feet for landscaping 40 between the driveway and the neighboring home. The driveway needed more space to be usable. Perhaps the 41 applicant could narrow the house a bit. The guest house and garage were not thought out. He would prefer to 42 move the project forward subject to some small changes. 43 44 Vice Chair Lew inquired whether the Board could approve the project and have changes return on the consent 45 calendar or to the subcommittee for review. The Board discussed modifications to the design and whether 46 those modifications could be submitted to staff, the subcommittee or the Board on the consent calendar. 47 48 Chair Gooyer viewed a five-bedroom house with a one-car garage as an invitation for cars to park everywhere; 49 however, the Code allowed that. The proposed homes were large, but most newer homes in the area were 50 similar. 51 52 MOTION: 53 City of Palo Alto Page 3 1 Board Member Baltay moved, seconded by Vice Chair Lew, that the Architectural Review Board make the 2 findings in the Staff Report and approve the project with an additional finding that (1) the house on Lot 3 be 3 shifted so that there is a minimum of 12 feet between the property line and the house; (2) a landscape buffer 4 be installed on the left-hand side of the driveway; and (3) the design of the guest house and garage return to 5 the Architectural Review Board subcommittee for final review. 6 7 Board Member Furth offered an amendment that the garage have two separate spaces. Board Member Baltay 8 felt that had not been required previously. 9 10 MOTION PASSED: 3-2 11 ATTACHMENT G ONSITE SIGNAGE 900 North California Avenue / File No. 15PLN-00155 The sign was first posted onsite in April 2015, it was damaged and fell on the ground sometimes after the winter season. The applicant fixed the sign and updated the plans and put on the site again in early September this year. The photos below were taken on December 19, 2016: ATTACHMENT I PROJECT DETAILS 900 North California Avenue / File No. 15PLN-00155 Lot 1 - A two-story house with an attached one-car garage on an 8,033 sf lot. The proposed structure would have a total of 3,157 sf of floor area, excluding the basement but including the garage. Of this area, 1,148 sf of floor area (36%) is proposed on the second floor. One street tree has been added to the frontage per the City Arborist’s request. Five screening trees have been added along the side interior lot lines in the rear yard area. Lot 2 - A two-story house with an attached one-car garage on a 9,379 sf corner lot. The proposed structure would have a total of 3,563 sf of floor area, excluding the basement but including the garage. Of this area, 1,269 sf of floor (36%) is proposed on the second floor, including any second floor equivalency area. One street tree on the Louis Road the frontage would be replaced. The existing street tree on the North California Avenue frontage would remain. Most other landscape, including small trees would be removed except for some existing trees along the right side setback line at the rear yard, located on Lot 3. No other new trees are proposed. Lot 3 – The proposed lot is ‘L’ shaped with the base of the ‘L’ wrapping behind the adjacent lot to the left at 920 N. California Avenue. The project proposes a two-story house with a detached two-car garage and detached guesthouse on a 13,425 sf lot. The proposed structures would have a total of 4,775 sf of floor area, including the garage and guest house, but excluding the basement. The main house is 3,978 sf, and the second unit is 597 sf excluding the garage and guest house. The second floor of the main house is 1,424 sf of floor area (36%), including any second floor equivalency area. One existing street tree will remain along with two trees at the left side lot line in the front yard and a few trees along the rear lot line and distant left side lot line adjacent the proposed cottage. Several new screening trees have been added along both side interior lot lines and the rear lot line. Table 1 Project Summary Lot 1 Lot 2 Lot 3 Address 2205 Louis Road 900 N. California Ave 912 N. California Ave Lot Area 8,032.90 sf 9,378.70 sf 13,425 sf First Floor Area 1,789.60 sf 2,071.47 sf 2,313.44 sf Second Floor Area 1,148 sf 1,269 sf 1,423 sf Garage 219.54 sf 222.45 sf 441 sf 2nd Dwelling Unit -- -- 597.12 sf Total FAR 3,157.21 sf 3,563.02 sf 34,775.19 sf Basement (Non- FAR) 1,896.27 sf 2,274.73 sf 2,417 sf Attachment J Project Plans Hardcopies of project plans are provided to City Council Members. These plans are available to the public by visiting the Planning and Community Environmental Department on the 5th floor of City Hall at 250 Hamilton Avenue. Directions to review Project plans online: 1. Go to: https://paloalto.buildingeye.com/planning 2. Search for “900 California Avenue” and open record by clicking on the green dot 3. Review the record details and open the “more details” option 4. Use the “Records Info” drop down menu and select “Attachments” 5. Open the attachment named “06.08.16_900N.California redux.pdf” dated 01/04/2017 CITY OF PALO ALTO CITY COUNCIL EXCERPT MINUTES Page 1 of 3 Special Meeting November 14, 2016 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:30 P.M. Present: Burt, DuBois, Filseth, Holman arrived at 5:33 P.M., Scharff, Schmid arrived at 5:33 P.M., Wolbach Absent: Berman, Kniss Action Items 16. PUBLIC HEARING: 900 N. California Ave. [14PLN-00233]: Recommendation for Approval of a Preliminary Parcel Map, With Exceptions, to Subdivide an Existing 30,837 Square Foot Parcel Into Three Parcels. The Parcel Map Exception is to Allow one of the Parcels to Exceed the Maximum Lot Area. Environmental Assessment: Exemption Pursuant to CEQA Guidelines Section 15061 (b)(3). Zoning District: Single-Family Residential District (R-1) **QUASI JUDICIAL. Public Hearing opened at 8:24 P.M. Public Hearing closed at 8:38 P.M. MOTION: Vice Mayor Scharff moved, seconded by Council Member DuBois to: A. Find the Project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3); and B. Approve the Record of Land Use Action for the proposed preliminary parcel map application. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “including the addition of a requirement that a second unit be built on Lot 3.” (New Part B.i.) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “increase the setbacks to 8 ACTION MINUTES Page 2 of 3 City Council Meeting Action Minutes: 11/14/16 feet on all sides of the garage and accessory buildings on Lot 3.” (New Part B.ii.) AMENDENT: Mayor Burt moved, seconded by Council Member XX to add to the Motion, “direct Staff to determine and certify that the aggregate de-watering of the three basements not be deleterious to the surrounding properties or vegetation.” AMENDMENT RESTATED: Mayor Burt moved, seconded by Council Member XX to add to the Motion, “direct Staff to review the third party dewatering review statement to assure that the aggregate impact is evaluated and not simply the individual dewatering impact of each lot.” AMENDENT2: Mayor Burt moved, seconded by Council Member XX to add to the Motion, “add the requirement that this development be subject to whatever new dewatering requirements the Council adopts before the next dewatering season.” AMENDENT2 RESTATED AND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “add the requirement that this development be subject to whatever dewatering requirements are in effect before the next dewatering season.” (New Part C) AMENDMENT RESTATED: Mayor Burt moved, seconded by Council Member XX to add to the Motion, “direct Staff to review the third party review statement to assure that any aggregate impact presented by the construction schedule is evaluated and not simply the individual dewatering impact of each lot.” AMENDMENT RESTATED AND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct Staff to review the third party geo-technical report to assure that any aggregate impact presented by the construction schedule is evaluated and not simply the individual dewatering impact of construction on each lot.” (New Part D) MOTION AS AMENDED RESTATED: Vice Mayor Scharff moved, seconded by Council Member DuBois to: A. Find the Project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3); and B. Approve the Record of Land Use Action for the proposed preliminary parcel map application: ACTION MINUTES Page 3 of 3 City Council Meeting Action Minutes: 11/14/16 i. Including the addition of a requirement that a second unit be built on Lot 3; and ii. Increase the setbacks to 8 feet on all sides of the garage and accessory buildings on Lot 3; and C. Add the requirement that this development be subject to whatever dewatering requirements are in effect before the next dewatering season; and D. Direct Staff to review the third party geo-technical report to assure that any aggregate impact presented by the construction schedule is evaluated and not simply the individual dewatering impact of construction on each lot. MOTION AS AMENDED PASSED: 7-0 Berman, Kniss absent Adjournment: The meeting was adjourned at 9:57 P.M. 1 161202 jb 0131566 1 APPROVAL NO. 2016-05 RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 900 N. CALIFORNIA AVENUE: PRELIMINARY PARCEL MAP APPLICATION [14PLN-00233] On November 14, 2016, the City Council of the City of Palo Alto considered and approved the Preliminary Parcel Map for the development of a three lot subdivision project with exceptions, making the following findings, determinations and declarations: SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows: A. On June 25, 2014, Kohler Associates Architects on behalf of Greg Xiong applied for a Preliminary Parcel Map with exceptions for the development of a 0.70 acre parcel (“The Project”). B. The project site is comprised of one lot (APN No. 137-51-021) of approximately 0.70-acres. The site contains three residential structures. Single-family residential land uses are located adjacent to the lot to the north, south, east and west. C. Following staff review, the Planning and Transportation Commission reviewed the project and recommended approval on October 20, 2016 subject to the conditions of approval below. SECTION 2. Environmental Review. The City as the lead agency for the Project has determined that the project is subject to environmental review under provisions of the California Environmental Quality Act (CEQA). The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is exempt from CEQA pursuant to Section 15061(b)(3). SECTION 3. Preliminary Parcel Map Findings. A legislative body of a city shall deny approval of a Parcel Map, if it makes any of the following findings (California Government Code Section 66474): 1.That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451: The site does not lie within a specific plan area and is consistent with the provisions of the Comprehensive Plan. 2.That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans: The map is consistent with the following Comprehensive Plan policies: DocuSign Envelope ID: 82D14D40-AE25-48E7-8107-632D5EFCD785 2 161202 jb 0131566 2 a.Policy L-4: Maintain Palo Alto’s varied residential neighborhoods while sustaining the vitality of its commercial areas and public facilities. Use the Zoning Ordinance as a tool to enhance Palo Alto’s desirable qualities. b.Policy L-10: Maintain a citywide structure of Residential Neighborhoods, Centers, and Employment Districts. Integrate these areas with the City’s and the region’s transit and street system. c.Policy L-12: Preserve the character residential neighborhoods by encouraging new or remodeled structures to be compatible with the neighborhood and adjacent structures. 3.That the site is not physically suitable for the type of development: The site is well suited for the proposed three single family homes and one secondary dwelling unit. The proposed homes would replace three existing single-family homes, which complies with allowed uses of the R-1 zoning district. 4.That the site is not physically suitable for the proposed density of development: The proposal for the site is consistent with all zoning regulations, with the proposed exceptions, including lot width, depth, and area. 5.That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat: The minor subdivision will not cause environmental damage or injure fish, wildlife, or their habitat. The project site has been fully urbanized and developed and is centrally located within a developed residential area. There is no recognized sensitive wildlife or habitat in the project vicinity. 6.That the design of the subdivision or type of improvements is likely to cause serious public health problems: The creation three parcels for three single-family residential units and one secondary dwelling unit will not cause serious public health problems, because the site is designated for single family development. 7.That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no DocuSign Envelope ID: 82D14D40-AE25-48E7-8107-632D5EFCD785 3 161202 jb 0131566 3 authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision. The proposed preliminary parcel map will not conflict with easements of any type, in that the map would create three parcels on the property, and would not affect any of the existing or proposed easements on or adjacent to the project site. SECTION 4. Exception Findings. The project proposes exceptions to the zoning standards for lot size for the following and depicted on Preliminary Parcel Map: • Lot Size (greater than 9,999 square feet): Lot 3. 1. There are special circumstances or conditions affecting the property. The subject property is substantially larger in area than allowed by the zoning code. The site also includes three single family residences on one legal parcel, representing another noncompliant condition. The applicant’s request for a preliminary parcel map with exceptions results in a more compliant condition within the project boundary and new development that will be more consistent with and compatible to the surrounding properties. It is not possible to subdivide the parcel into three or four fully compliant lots. The exception allows one of the three lots to be slightly larger in area than allowed by the code. 2. The exception is necessary for the preservation and enjoyment of a substantial property right of the petitioner. The property owner is eligible to subdivide the existing parcel. The existing one parcel with three housing units does not conform to the maximum lot area for the R1 District. With the subdivision exception, the owner is able to create individual legal parcels for three residences, however, one the lots would remain non-conforming as to lot area. It is not possible to adjust the lot area of the other parcels or create a fourth parcel in order to achieve complete conformance with the city’s property development standards. Subdividing the existing parcel into code compliant lots is not possible with the exception and approving the exception results in three lots that are more consistent and more compatible to properties in the general vicinity. 3. The granting of the exception will not be detrimental to the public welfare or injurious to other property in the territory in which the property is situated. For the reasons cited above, the exception actually results in a housing development design that is more consistent with the pattern of single family development in the area and renders an existing nonconforming parcel into two conforming lots and one lot that is slightly larger than the maximum lot area authorized in the district. The lot area maximum exists to ensure future subdivisions meet a desired scale and proportionality to other lots in the area. The existing 26,669 lot is inconsistent with that objective and the exceptions renders the parcel more compatible. Such action is neither detrimental to the public welfare nor injurious to other DocuSign Envelope ID: 82D14D40-AE25-48E7-8107-632D5EFCD785 4 161202 jb 0131566 4 property in the area. 4. The granting of the exception will not violate the requirements, goals, policies, or spirit of the law. The granting of the exception will further the requirements, goals, policies and spirit of the law by creating two legal parcels and a third, slightly nonconforming lot, from one lot that is significantly larger than required by the city’s zoning code. From a neighborhood compatibility perspective, and consistency with the spirit of the law, the requested exception represents an improvement to the existing conditions found at the site and further advances the objectives of the code. The provision of an Accessory Dwelling Unit on Lot 3 shall ensure compatible scale with the neighborhood and advance policies in the Housing Element. SECTION 5. Preliminary Parcel Map Approval Granted. Preliminary Tentative Map approval is granted by the City Council under PAMC Sections 21.12 and 21.20 and the California Government Code Section 66474, subject to the conditions of approval in Section 7 of this Record. SECTION 6. Tentative Map Approval. The Final Map submitted for review and approval by the City Council shall be in substantial conformance with the Preliminary Parcel Map prepared by WEC and Associates “Preliminary Parcel Map 900 N. California Avenue”, consisting of three lots, dated August 19, 2014, except as modified to incorporate the conditions of approval in Section 7. A copy of this plan is on file in the Department of Planning and Community Environment, Current Planning Division. Within two years of the approval date of the Preliminary Parcel Map, the subdivider shall cause the subdivision or any part thereof to be surveyed, and a Parcel Map, as specified in Chapter 21.08, to be prepared in conformance with the Preliminary Parcel Map as conditionally approved, and in compliance with the provisions of the Subdivision Map Act and PAMC Section 21.16 and submitted to the City Engineer (PAMC Section 21.16.010[a]). SECTION 7. Conditions of Approval. Department of Planning and Community Environment Planning Division 1. The applicant shall confirm the location all existing features of the site, including protected and non-protected trees, wells, structures, utilities, and easements to the satisfaction of Public Works, the Planning Division, and any other agency that would have an interest in those features. 2. The owner or designee prior to issuance of any building permit shall pay the applicable Development Impact fees. 3. The owner or designee prior to building permit issuance shall submit for review and approval a construction traffic plan and construction phasing plan for development to the City. DocuSign Envelope ID: 82D14D40-AE25-48E7-8107-632D5EFCD785 5 161202 jb 0131566 5 4. Development Impact Fees: The proposed project will replace three homes, create three new parcels and add a secondary dwelling unit, therefore the estimated impact fee is $50,793.08. 5. California Government Code Section 66020 provides that a project applicant who desires to protest the fees, dedications, reservations, or other exactions imposed on a development project must initiate the protest at the time the development project is approved or conditionally approved or within ninety (90) days after the date that fees, dedications, reservations or exactions are imposed on the Project. Additionally, procedural requirements for protesting these development fees, dedications, reservations and exactions are set forth in Government Code Section 66020. IF YOU FAIL TO INITIATE A PROTEST WITHIN THE 90-DAY PERIOD OR FOLLOW THE PROTEST PROCEDURES DESCRIBED IN GOVERNMENT CODE SECTION 66020, YOU WILL BE BARRED FROM CHALLENGING THE VALIDITY OR REASONABLENESS OF THE FEES, DEDICATIONS, RESERVATIONS, AND EXACTIONS. If these requirements constitute fees, taxes, assessments, dedications, reservations, or other exactions as specified in Government Code Sections 66020(a) or 66021, this is to provide notification that, as of the date of this notice, the 90-day period has begun in which you may protest these requirements. 6. The applicant is hereby notified, as required by Government Code § 66020, that the approved plans, these conditions of approval, and the adopted City fee schedule set forth in Program H3.1.2 of the City of Palo Alto Comprehensive Plan constitute written notice of the description of the dedications, reservations, amount of fees and other exactions related to the project. As of the date of project approval, the 90 day period has begun in which the applicant may protest any dedications, reservations, fees or other exactions imposed by the City. Failure to file a protest in compliance with all of the requirements of Government Code § 66020 will result in a legal bar to challenging the dedications, reservations, fees or other exactions. 7. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion and at Applicant’s expense, elect to defend any such action with attorneys of its own choice. 8. Accessory Dwelling Unit: An accessory dwelling unit shall be built on Lot 3. 9. Lot 3 Setback: The project shall setback the proposed accessory dwelling unit and garage on Lot 3 eight-feet (8’) from all property lines. 10. Dewatering Requirements. The applicant shall comply with the City of Palo Alto Guidelines for Dewatering During Basement Or Below Ground Garage Construction dated February 2016. The applicant shall demonstrate to the satisfaction of the Planning and Community Environment Director that the proposed dewatering plan is not deleterious to vegetation. The third party evaluation of the proposed dewatering shall take into account the aggregate and simultaneous dewatering of all three lots and the proposed development shall be subject to the City’s standards in effect at the time of the report. DocuSign Envelope ID: 82D14D40-AE25-48E7-8107-632D5EFCD785 6 161202 jb 0131566 6 Building Division 11. The existing buildings within the project area shall be demolished prior to recording the map. A separate permit shall be required for the removal of the building. 12. New addresses will be assigned to each lot with the subdivision, following recordation of the map. The applicant shall file and “Address request Form” and pay the required fee, to the Palo Alto Development Center. Public Works Engineering Department PRIOR TO PARCEL MAP SUBMITTAL 13. Provide a current Preliminary Title Report, printed less than 3 month from Parcel Map submittal date. PRIOR TO PARCEL MAP RECORDATION 14. The City of Palo Alto does not currently have a City Surveyor we have retained the services of Siegfried Engineering to review and provide approval on behalf of the City. Siegfried will be reviewing, signing and stamping the Parcel Map associated with your project. In effort to employ the services of Siegfried Engineering, and as part of the City’s cost recovery measures, the applicant is required to provide payment to cover the cost of Siegfried Engineering’s review. Our intent is to forward your Parcel Map to Siegfriend for an initial preliminary review of the documents. Siegfriend will then provide a review cost amount based on the complexity of the project and the information shown on the document. We will share this information with you once we receive it and ask that you return a copy acknowledging the amount. You may then provide a check for this amount as payment for the review cost. The City must receive payment prior to beginning the final review process. 15. Once the Parcel Map is approved by the City, submit wet signed and stamped mylar copy of the Parcel Map to the Public Works for signature. Map shall be signed by Owner, Notary and Surveyor prior to formal submittal. PRIOR TO ISSUANCE OF A BUILDING PERMIT OR GRADING AND EXCAVATION PERMIT 16. Parcel Map shall be recorded with County Recorder. 17. Off-site improvements such as curb and gutter, sidewalk replacement, street tree replacement and/or new street trees, utility upgrades or street resurfacing are typically required with subdivisions. As part of the proposed of subdivision, applicant(s) shall be aware that off-site DocuSign Envelope ID: 82D14D40-AE25-48E7-8107-632D5EFCD785 7 161202 jb 0131566 7 improvements such as those listed above will be required. At a minimum, plans for the building permits shall show curb, gutter and sidewalk along the project frontages to be removed and replaced, full-street width resurfacing (mill and overlay) will be required. The curb ramps at the intersection may also need to be upgrade as part of this project to comply to accessibility standards. Plans shall include existing and proposed striping plan. Applicant shall meet with Urban Forestry to evaluate if a new street tree can be planted along the project frontages. 18.If the existing buildings are to be demolished, applicant shall contact Urban Forestry at (650)496-5953 prior to demolition to verify tree protection measures are in place. 19.LOGISTICS PLAN: The applicant and contractor shall submit a construction logistics plan to the Public Works Department that addresses all impacts to the City’s right-of-way, including, but not limited to: pedestrian control, traffic control, truck routes, material deliveries, contractor’s parking, on-site staging and storage areas, concrete pours, crane lifts, work hours, noise control, dust control, storm water pollution prevention, contractor’s contact. The plan shall be prepared and submitted along the Rough Grading and Excavation Permit. Plot the construction fence, entrances, shoring, limits of over excavation, construction workers parking area, staging and storage areas within the private site for equipment and material. It shall include notes as indicated on the approved Truck Route Map for construction traffic to and from the site. Plan shall also indicate if the bus stop will need to be relocated and show how the bike lane will remain accessible during construction. The logistics plan will provide controls that minimize the disruption to neighbors and provides parking and staging on-site to the extent feasible. Utilities Electrical Engineering 20.Applicant shall grant easement to all electric equipment including transformers, switches, electric pull boxes and vaults, electric conduit. 21.All equipment shall be pad mounted, NO underground equipment is allowed. 22.All the weather head shall follow CPAU standard (lower than 18') 23.Applicant shall install, owned and maintain the streetlight system on the private street. These street lights shall be fed through a meter pedestal. 24.Only one electric service lateral is permitted per parcel. 25.The developer/owner shall provide space for installing padmount equipment (i.e. transformers, switches, and interrupters) and associated substructure as required by the City. In addition, the owner shall grant a Public Utilities Easement for facilities installed within the subdivision as required by the City. 26.The civil drawings must show all existing and proposed electric facilities (i.e. conduits, boxes, pads, services, and streetlights) as well as other utilities. DocuSign Envelope ID: 82D14D40-AE25-48E7-8107-632D5EFCD785 8 161202 jb 0131566 8 27.The developer/owner is responsible for all substructure installations (conduits, boxes, pads, streetlights system, etc.) on the subdivision parcel map. The design and installation shall be according to the City standards and all work must be inspected and approved by the Electrical Underground Inspector. 28.The developer/owner is responsible for all underground services (conduits and conductors) to single- family homes within the subdivision. All work requires inspection and approval from both the Building Department and the Electrical Underground Inspector. 29.The tentative parcel map shall show all required easements as requested by the City. Utilities Water Gas Wastewater Department 30.The applicant shall submit a request to disconnect all utility services and/or meters to theexisting building including a signed affidavit of vacancy. Utilities will be disconnected orremoved within 10 working days after receipt of request. The demolition permit will be issuedby the Building Inspection Division after all utility services and/or meters have beendisconnected and removed. 31.The applicant shall submit a completed water-gas wastewater service connection application- load sheets for City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands. 32.The applicant shall be responsible for installing and upgrading the existing services as necessaryto handle anticipated peak loads. This responsibility includes all cost associated with design andconstruction for the installation/upgrade of the utility services. 33.Each parcel shall have its own water service, gas service and sewer lateral connection shown onthe plans. 34.All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas, & wastewater. / / / / / / / / / / / / DocuSign Envelope ID: 82D14D40-AE25-48E7-8107-632D5EFCD785 9 161202 jb 0131566 9 SECTION 8. Term of Approval. 1. Preliminary Parcel Map. All conditions of approval of the Preliminary Parcel Map shall be fulfilledprior to map recordation (PAMC Section 21.16.010[c]). Unless a Tentative Map is filed, and allconditions of approval are fulfilled within a two- year period from the date of PreliminaryTentative Map approval, or such extension as may be granted, the Preliminary Tentative Mapshall expire and all proceedings shall terminate. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO CONTENT: APPROVED AS TO FORM: __________________________________ Director of Planning and Community Environment Senior Asst. City Attorney PLANS AND DRAWINGS REFERENCED: Those plans prepared by WEC and Associates titled “Preliminary Parcel Map”, consisting of five page, dated August 19, 2014. November 14, 2016 DocuSign Envelope ID: 82D14D40-AE25-48E7-8107-632D5EFCD785 Certificate Of Completion Envelope Id: 82D14D40AE2548E78107632D5EFCD785 Status: Completed Subject: Please DocuSign: RLUA 900 California Ave.pdf Source Envelope: Document Pages: 9 Signatures: 4 Envelope Originator: Certificate Pages: 5 Initials: 0 Janet Billups AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 janet.billups@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 12/13/2016 11:22:50 AM Holder: Janet Billups janet.billups@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp Cara Silver cara.silver@cityofpaloalto.org Senior Assistant City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Using IP Address: 199.33.32.254 Sent: 12/13/2016 11:36:41 AM Viewed: 12/13/2016 11:37:21 AM Signed: 12/13/2016 11:37:41 AM Electronic Record and Signature Disclosure: Accepted: 7/15/2015 5:07:16 PM ID: 11910ed1-61d1-4ff3-9cf9-f4eb5a0768e2 Hillary Gitelman hillary.gitelman@cityofpaloalto.org Security Level: Email, Account Authentication (None) Using IP Address: 199.33.32.254 Sent: 12/13/2016 11:37:43 AM Viewed: 12/13/2016 1:17:30 PM Signed: 12/13/2016 1:17:46 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Patrick Burt Patrick.Burt@cityofpaloalto.org Mayor City of Palo Alto Security Level: Email, Account Authentication (None) Using IP Address: 70.213.11.19 Signed using mobile Sent: 12/13/2016 1:17:47 PM Viewed: 12/13/2016 11:47:30 PM Signed: 12/13/2016 11:48:00 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Beth Minor beth.minor@cityofpaloalto.org City Clerk City of Palo Alto Security Level: Email, Account Authentication (None) Using IP Address: 199.33.32.254 Sent: 12/13/2016 11:48:00 PM Viewed: 12/14/2016 9:05:13 AM Signed: 12/14/2016 9:06:02 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Alicia Spotwood Alicia.Spotwood@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 12/14/2016 9:06:03 AM Viewed: 12/14/2016 9:08:02 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Kim Lunt Kim.Lunt@cityofpaloalto.org Security Level: Email, Account Authentication (None) Sent: 12/14/2016 9:06:03 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Notary Events Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 12/14/2016 9:06:03 AM Certified Delivered Security Checked 12/14/2016 9:06:03 AM Signing Complete Security Checked 12/14/2016 9:06:03 AM Completed Security Checked 12/14/2016 9:06:03 AM Electronic Record and Signature Disclosure CONSUMER DISCLOSURE From time to time, City of Palo Alto (we, us or Company) may be required by law to provide to you certain written notices or disclosures. 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By checking the 'I Agree' box, I confirm that: • I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC CONSUMER DISCLOSURES document; and • I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and • Until or unless I notify City of Palo Alto as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by City of Palo Alto during the course of my relationship with you. Attachment M On January 9, 2017, PCE staff received the following questions regarding the ARB appeal of three new homes at 900 California Avenue; responses follow: Councilmember Request: Request for a copy of the November 14, 2017 minutes related to the Parcel Map application reviewed by the City Council. Response: Now included in the report as Attachment K. The minutes state that the City Council directed the following action related to the parcel map application: A. Found the project exempt from CEQA. This was addressed in the Record of Land Use Action, Section 2 (Attachment L) B. Approved the Record of Land Use Action i. Affirmed that the proposed second unit would be provided on Lot 3 This was addressed in the Record of Land Use Action (Attachment L), Condition #8. ii. Increased the setbacks for the garage and accessory buildings be set back eight (8) feet from all property lines. This was addressed in the Record of Land Use Action (Attachment L), condition # 9 and addressed in revised plans previously transmitted to the City Council and available online at as detailed in Attachment J. C. Added a requirement that the development be subject to dewatering requirements in effect before the next dewatering season. This was addressed in the Record of Land Use Action (Attachment L), Condition 10. D. Directed staff to review the third party geotechnical report to assure that any aggregate impact presented by the construction schedule is evaluated and not simply the individual dewater impact of construction on each lot. This was addressed in the Record of Land Use Action E. Attachment L), Condition 10. Note that current provisions stipulated by the city requires a geotechnical report, the cumulative impact analysis is the unique provision incorporated into the condition. Conditions included in the Record of Land Use Action for the parcel map will be reviewed and implemented as part of the building permit review process associated with the proposed homes and do not need to be repeated in the architectural review conditions of approval. Councilmember Question: Dewatering. The appellant's concerns seem to be about the cumulative effect / impact of dewatering. I do not see this addressed in the Condition #53 as the staff report seems to indicate. Response: The City Council reviewed the parcel map application to subdivide the subject property on November 14, 2016 pursuant to current application review procedures. During that public hearing, the City Council heard testimony from nearby residents expressing concern about dewatering. In response, the City Council required the project be subject to whatever dewatering requirements are in effect before the next dewatering season. Accordingly, staff incorporated the following condition of approval to the parcel map record of land use action (see Attachment L, Condition #10): Dewatering Requirements. The applicant shall comply with the City of Palo Alto Guidelines for Dewater During Basement Or Below Ground Garage Construction dated February 2016. The applicant shall demonstrate to the satisfaction of the Planning and Community Environment Director that the proposed dewatering plan is not deleterious to vegetation. The third party evaluation of the proposed dewatering shall take into account the aggregate and simultaneous dewatering of all three lots and the proposed development shall be subject to the City’s standards in effect at the time of the report. (Emphasis Added) This condition is associated with the parcel map and would apply to the future construction of the three proposed homes and second dwelling unit; it would be implemented as part of the building permit review process. This condition is not incorporated into the Architectural Review conditions of approval because that action preceded the City Council’s review of the parcel map. The Council may recall that the appeal period for the Architectural Review approval ended the day after the Council acted on the parcel map. Condition #53 referenced above partially addresses the dewatering issue, but is also more focused on the requirement for a geotechnical study. Staff’s review of the conditions of approval applicable to this project, in consultation with the City Attorney’s office, concludes that the city has sufficient authority to require a geotechnical report and dewatering analysis during the building permit review process that addresses the cumulative impact of all three properties being constructed at one time and will evaluate the report based on the standards applicable in place at the time the report is prepared. Councilmember Question: Condition 39 states that the applicant shall file for a Minor Subdivision Application for creating four (4) lots. This was not addressed during the CC review of the subdivision and it appears that creation of a 4th lot would create a flag lot which is not allowed per City code. Can staff please explain why this is included in the Conditions? Response. There is an error in this condition, which has been corrected in the Director’s letter (Attachment D). The City Council approved a three lot subdivision; no flag lots were created. A corrected Director’s letter was prepared on January 10th and mailed to the applicant. Councilmember Question: Condition #59: will plans be proactively be provided to neighbors for comment prior to finalizing? Response. Condition #59 requires the preparation of a logistics plan. While this is a public document, it is one typically reviewed by professional staff. There is no current mechanism for noticing the public, but members of the public may request a copy of all submittal materials. 900 N. California Avenue (15PLN-00155) Page 1 ACTION NO. 2017-_ RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 900 NORTH CALIFORNIA AVENUE: MAJOR ARCHITECTURAL REVIEW APPEAL 15PLN-000155 (KOHLER ARCHITECTS, APPLICANT) On March 27, 2017, the City Council of the City of Palo Alto considered and denied the appeal of a Major Architectural Review application approving for the construction of three new single family homes and one accessory dwelling unit at 900 North California Avenue (APN 003-51-021), thereby affirming the approval of the Planning and Community Environment Director making the following findings, determinations and declarations: SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows: A. On April 21, 2015, Kohler Architects applied for a Major Architectural Review for the construction of three single family homes at 900 N. California Avenue. (“The Project”). B. The project site is comprised of one lot (APN No. 003-51-021) of approximately 30,837 square-feet. The site contains three existing single family homes ranging in size for 746 square- feet to 2,376 square-feet. Single-family residential land uses are located adjacent to the lot to the north, south, east and west. C. Following staff review, the Architectural Review Board (ARB) reviewed the project on September 15, 2016 and recommended approval to the Director of Planning and Community Environment, incorporating conditions that the home on Lot 3 be setback from the left side property line and that the detached garage and guest house return to the ARB subcommittee for further evaluation, among other conditions. D. On November 1, 2016, the Director of Planning and Community Environment approved the Project. E. On November 14, 2016, the City Council approved a tentative parcel, with exceptions, to subdivide the subject property into three lots, with one lot for each home. The approval was conditioned upon additional setbacks for the guest house and garage, and the applicant complying with the most up-to-date standards for site dewatering, among other conditions. F. On November 15, 2016, a timely appeal of the Director’s determination on the Architectural Review application was filed. G. On January 9, 2017, the City Council considered the appeal, which was placed on the Council’s consent calendar consistent with city regulations. The Council made a motion to continue the matter on consent until January 23, 2017 follow public comments received at the meeting. H. On January 23, 2017, the City Council pulled the item from the consent calendar and scheduled the appeal for a noticed public hearing; the hearing was held on March 27, 2017. I. On February 28, 2017, the applicant submitted revised plans that removed the basements from the homes on Lot 1 and Lot 3. 900 N. California Avenue (15PLN-00155) Page 2 SECTION 2. Environmental Review. The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is exempt from CEQA pursuant to Section 15303(a) (New Construction or Conversion of Small Structures). The project includes a proposal to construct three new single family homes. The proposed homes are located in an urbanized area on a site used continuously for residential purposes by three existing single-family homes. The proposed exemption allows for the construction of up to three homes in an urbanized area. Therefore, the project is consistent with the subject exemption. SECTION 3. Architectural Review Findings. Palo Alto Municipal Code 18.76.020(d) states that neither the director, nor the city council on appeal, shall grant architectural review approval, unless it is found that each of the following applicable findings is met: The design and architecture of the proposed improvements, as conditioned, complies with the Findings for Architectural Review as required in Chapter 18.76 of the PAMC. Comprehensive Plan and Purpose of ARB: Finding #1: The design is consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan. Finding #16: The design is consistent and compatible with the purpose of architectural review, which is to: Promote orderly and harmonious development in the city; Enhance the desirability of residence or investment in the city; Encourage the attainment of the most desirable use of land and improvements; Enhance the desirability of living conditions upon the immediate site or in adjacent areas; and Promote visual environments which are of high aesthetic quality and variety and which, at the same time, are considerate of each other. The project is consistent with Findings #1 and #16 because: The Comprehensive Plan (Plan) land use designation for the project site is Single Family Residential. Single family homes are permitted uses in this designation. The net density in single family areas will range from 1 to 7 units per acre, but may rise to a maximum of 14 units in areas where second units or duplexes are allowed. The proposed three new homes meet the intent of the Comprehensive Plan. The project effectively provides approximately 4 dwelling units per acre. Therefore, the project is consistent with the density prescribed by the Comprehensive Plan. The project is consistent with policies contained in the Comprehensive Plan. The project is consistent with Policy L-1, which continues current City policies of limiting future urban development to currently developed lands. The project site redevelops a currently developed site with three new homes in an urban environment. Further, the project is consistent with Policy L-12. The proposed homes preserve the character of the neighborhood by incorporating common setbacks, scale and massing. Additionally, the project is consistent with the Individual Review Guidelines for single-family homes. This 900 N. California Avenue (15PLN-00155) Page 3 consistency ensures the project’s compatibility with the neighborhood and adjacent structures. Therefore, the project is consistent with the City’s prescribed density and policies of the Comprehensive Plan and will promote orderly and harmonious development. Compatibility and Character: Finding #2: The design is compatible with the immediate environment of the site. Finding #4: In areas considered by the board as having a unified design character or historical character, the design is compatible with such character. Finding #5: The design promotes harmonious transitions in scale and character in areas between different designated land uses. Finding #6: The design is compatible with approved improvements both on and off the site. The project is consistent with Findings #2, #4, #5 and #6 because: The project proposes three single family homes on three separate lots. The immediate environment surrounding the project site consists of other single family homes that are a mixture of one and two- stories. The project is consistent with this immediate environment by proposing three single-family homes. The homes minimize their two story appearance by pulling in the upper stories from the sides, using street facing gables, and roof hips. These features are found throughout the homes in the project site. The project is subject to a 24-foot yard setback along Louis Road. Homes with frontages along Louis Road are setback 24-feet, achieving consistency and compatibility with the development pattern along Louis Road. Further, the site planning for each home responds to contextual cues of the neighborhood by subordinating the garage and driveway, managing the upper floor location with respect to the street corners, and allows for landscaped space between adjacent homes. These features of the project achieve a unified design character that is compatible with the neighborhood and improvements both on and off the site. Functionality and Open Space: Finding #3: The design is appropriate to the function of the project. Finding #7: The planning and siting of the building on the site creates an internal sense of order and provides a desirable environment for occupants, visitors and the general community. Finding #8: The amount and arrangement of open space are appropriate to the design and the function of the structures. The project is consistent with Findings #3, #7, and #8 because: The project is consistent with each finding because the site planning for the single family homes is appropriate; the project creates a sense of order; and the amount of open space is appropriate for the function of the homes. Overall, site planning responds to contextual cues, subordinates the garage and driveway, and allows for landscaped open space between adjacent homes. This is achieved through adherence to the minimum setback criteria for the front, side and rear yards, daylight plane standards, and parking standards. Observance of these siting standards also creates an internal sense of order. The homes are positioned and landscaped to promote privacy but also use of the yard spaces. Further, the open space is functional because it can be used by residents and visitors, and the front and side 900 N. California Avenue (15PLN-00155) Page 4 yard porches and landscaping provide a desirable environment for the community. Therefore, the project is consistent with findings #3, #7 and #8. Circulation and Traffic: Finding #9: Sufficient ancillary functions are provided to support the main functions of the project and the same are compatible with the project’s design concept. Finding #10: Access to the property and circulation thereon are safe and convenient for pedestrians, cyclists and vehicles. The project is consistent with Findings #9, and #10 because: The project includes sufficient ancillary functions, in the form of garages, to support the main function of the project, and these ancillary functions are compatible with the project’s design. The garages are properly screened from adjacent uses. Garages are subordinated to the houses, setback from the street, and adhere to daylight plane standards, which emphasizes their ancillary nature. Further garages are compatible with the homes because each garage would use a similar style door with a design that is consistent with the homes. These features would blend well with the house form to be integrated with the overall house. Access to the lots is similar to the existing access patterns currently on the property. The driveways provide adequate width for vehicles to maneuver, and there are spaces onsite for vehicles to safely exit the property. The project would preserve the sidewalks along Louis Road and N California Avenue, ensuring safe and convenient circulation for pedestrians and cyclists. Further, the driveways and walkways from the sidewalks provide ingress and egress to the homes for pedestrians and bicyclists. Landscaping and Plant Materials: Finding #11: Natural features are appropriately preserved and integrated with the project. Finding #12: The materials, textures and colors and details of construction and plant material are an appropriate expression to the design and function and compatible with the adjacent and neighboring structures, landscape elements and functions. Finding #13: The landscape design concept for the site, as shown by the relationship of plant masses, open space, scale, plant forms and foliage textures and colors create a desirable and functional environment on the site and the landscape concept depicts an appropriate unit with the various buildings on the site. Finding #14: Plant material is suitable and adaptable to the site, capable of being properly maintained on the site, and is of a variety that would tend to be drought-resistant and to reduce consumption of water in its installation and maintenance. The project is consistent with Findings #11, #12, #13, and #14 because: The site is relatively level and will remain in relatively the same topography. Therefore the project will preserve natural features. There are no known protected trees. The project will remove one street tree, per the City Arborist’s direction and will plant one new 24-inch box Cimarron ash in its place. The project will retain other trees on the site, but will also remove some trees as well. While the project does not propose a complete landscape plan for the entire lots, it does include a tree planting plan. 900 N. California Avenue (15PLN-00155) Page 5 The proposed trees are an appropriate use for their proposed location because they will serve as a screen between lots. Further, front, side and rear yard space has been preserved for future homeowners to individually craft the landscaping for their homes. Sustainability: Finding #15: The design is energy efficient and incorporates renewable energy design elements including, but not limited to: a. Careful building orientation to optimize daylight to interiors b. High performance, low-emissivity glazing c. Cool roof and roof insulation beyond Code minimum d. Solar ready roof e. Use of energy efficient LED lighting f. Low-flow plumbing and shower fixtures g. Below grade parking to allow for increased landscape and stormwater treatment areas The project is consistent with Findings #11, #12, #13, and #14 because: The project would comply with the City’s green building ordinance. The building would incorporate recycled building materials and energy efficient LED lighting. The project would provide onsite storm water management measures through landscaping. SECTION 4. Architectural Review Findings. Revised Architectural Review Findings were adopted by ordinance of the City Council on November 14, 2016 (second reading on December 12, 2016) and became effective on January 12, 2017. The Council finds that the project as modified is consistent with these findings. Finding #1: The design is consistent with applicable provisions of the Palo Alto Comprehensive Plan, Zoning Code, coordinated area plans (including compatibility requirements), and any relevant design guides. The project is consistent with Finding #1 because: The proposed project, as modified by the conditions of approval, is generally consistent with the Palo Alto Comprehensive Plan, including the following goals and policies: The Comprehensive Plan (Plan) land use designation for the project site is Single Family Residential. Single family homes are permitted uses in this designation. The net density in single family areas will range from 1 to 7 units per acre, but may rise to a maximum of 14 units in areas where second units or duplexes are allowed. The proposed three new homes meet the intent of the Comprehensive Plan. The project effectively provides approximately 4 dwelling units per acre. Therefore, the project is consistent with the density prescribed by the Comprehensive Plan. The project is consistent with policies contained in the Comprehensive Plan. The project is consistent with Policy L-1, which continues current City policies of limiting future urban development to currently developed lands. The project site redevelops a currently developed site with three new homes in an urban environment. Further, the project is consistent with Policy L-12. The proposed homes preserve 900 N. California Avenue (15PLN-00155) Page 6 the character of the neighborhood by incorporating common setbacks, scale and massing. Additionally, the project is consistent with the Individual Review Guidelines for single-family homes. This consistency ensures the project’s compatibility with the neighborhood and adjacent structures. Therefore, the project is consistent with the City’s prescribed density and policies of the Comprehensive Plan and will promote orderly and harmonious development. Finding #2: The project has a unified and coherent design, that: a. creates an internal sense of order and desirable environment for occupants, visitors, and the general community, b. preserves, respects and integrates existing natural features that contribute positively to the site and the historic character including historic resources of the area when relevant, c. is consistent with the context-based design criteria of the applicable zone district, d. provides harmonious transitions in scale, mass and character to adjacent land uses and land use designations, e. enhances living conditions on the site (if it includes residential uses) and in adjacent residential areas. The project is consistent with Finding #2 because: The project creates an internal sense of order and desirable environment because it enhances the living conditions on the site and in the adjacent residential areas. The environment surrounding the project site consists of single family homes that are a mixture of one and two-stories, and the project site consists of a dated single family home and mixture of accessory structures. The project creates an internal sense of order and a desirable environment for occupants, visitors and the general community because the homes provide well thought out living space, parking for the residents and visitors, and open space for occupants and visitors. Overall, site planning responds to contextual cues, subordinates the garage and driveway, and allows for landscaped open space between adjacent homes. This is achieved through adherence to the minimum setback criteria for the front, side and rear yards, daylight plane standards, and parking standards. Observance of these siting standards also creates an internal sense of order. The homes are positioned and landscaped to promote privacy but also use of the yard spaces. Further, the open space is functional because it can be used by residents and visitors, and the front and side yard porches and landscaping provide a desirable environment for the community. The project creates a desirable environment for the community through compliance with multiple conditions of approval. The environment of the community is further preserved through implementing condition of approval number four requiring ARB subcommittee review of the detached garage and accessory dwelling unit; condition of approval number seven requiring obscure glazing of windows to preserve privacy; condition of approval number 19 minimizing noise generated during project construction; and conditions of approval 45 ensuring proper demolition of existing structures; 47 and 54 requiring a geotechnical report to analyze and minimize dewatering of the site; condition 52 to reduce the amount of drainage; condition 53 for basement shoring; and condition 60 for a construction logistics plan to ensure safe and accessible circulation during project construction. Further, the project enhances the living conditions onsite and in the adjacent residential area by providing newly constructed single family homes that improve the quality of the residential housing stock. These homes 900 N. California Avenue (15PLN-00155) Page 7 have been reviewed and approved by the City, where the existing home and structures were not evaluated for consistency with the City’s architectural review requirements. The project preserves, respects, and integrates existing natural features by retaining all but one street tree, at the City Arborist’s direction. The site is relatively level and will remain in relatively the same topography. Therefore the project will preserve natural features. Because the area has not been recognized as having a unified design or historic character, the finding for historic character is not applicable. The project site and area is not located in area subject to context-based design criteria. Therefore this finding is not applicable. However, the project was reviewed and found to be consistent with the Individual Review Guidelines. The homes provide harmonious transitions in scale, mass and character to adjacent land uses. The homes minimize their two story appearance by pulling in the upper stories from the sides, using street facing gables, and roof hips. These features are found throughout the homes in the project site. The project is subject to a 24-foot yard setback along Louis Road. Homes with frontages along Louis Road are setback 24-feet, achieving consistency and compatibility with the development pattern along Louis Road. Further, the site planning for each home responds to contextual cues of the neighborhood by subordinating the garage and driveway, managing the upper floor location with respect to the street corners, and allows for landscaped space between adjacent homes. These features of the project achieve a unified design character that is compatible with the neighborhood and improvements both on and off the site. Finding #3: The design is of high aesthetic quality, using high quality, integrated materials and appropriate construction techniques, and incorporating textures, colors, and other details that are compatible with and enhance the surrounding area. The project is consistent with Finding #3 because: The project has a high aesthetic quality, materials, construction techniques, textures, colors and other details that are compatible with and enhance the surrounding area. The buildings surrounding the site are comprised of wood framed houses with stucco, stone, glass and brick and range in height from single-story to two-story structures. The proposed homes are comprised of high quality stucco, wood shingles, and wood siding with glass windows, which are similar and representative of the materials found in the surrounding environment. Further, the materials, textures, and attention to detail in the homes are consistent throughout each elevation which represents a high quality aesthetic design. Lastly, the project, will have high quality materials, textures, colors and finishes because it is conditioned to return to the Architectural Review Board for review and recommendation to the Director of Planning and Community Environment for the detached garage and accessory dwelling unit. Therefore, the project is consistent with Finding #3 because it consists of a high quality aesthetic design with integrated materials, textures, colors and other details that are compatible with the surrounding environment. 900 N. California Avenue (15PLN-00155) Page 8 Finding #4: The design is functional, allowing for ease and safety of pedestrian and bicycle traffic and providing for elements that support the building’s necessary operations (e.g. convenient vehicle access to property and utilities, appropriate arrangement and amount of open space and integrated signage, if applicable, etc.). The project is consistent with Finding #4 because: The project includes sufficient ancillary functions, in the form of garages, to support the main function of the project, and these ancillary functions are compatible with the project’s design. The garages are properly screened from adjacent uses. Garages are subordinated to the houses, setback from the street, and adhere to daylight plane standards, which emphasizes their ancillary nature. Further garages are compatible with the homes because each garage would use a similar style door with a design that is consistent with the homes. These features would blend well with the house form to be integrated with the overall house. Access to the lots is similar to the existing access patterns currently on the property. The driveways provide adequate width for vehicles to maneuver, and there are spaces onsite for vehicles to safely exit the property. The project would preserve the sidewalks along Louis Road and N California Avenue, ensuring safe and convenient circulation for pedestrians and cyclists. Further, the driveways and walkways from the sidewalks provide ingress and egress to the homes for pedestrians and bicyclists. Lastly, the project is required to prepare a construction logistics plan, as described in condition of approval number 60. The logistics plan will ensure that safe and convenient vehicle, cyclist, and pedestrian circulation occur on sidewalks and streets while the project is constructed. Therefore, the project is consistent with Finding #4. Finding #5: The landscape design complements and enhances the building design and its surroundings, is appropriate to the site’s functions, and utilizes to the extent practical, regional indigenous drought resistant plant material capable of providing desirable habitat that can be appropriately maintained. The project is consistent with Finding #5 because: While the project does not propose a complete landscape plan for the entire lots, it does include a tree planting plan. The proposed trees are an appropriate use for their proposed location because they will serve as a screen between lots. Further, front, side and rear yard space has been preserved for future homeowners to individually craft the landscaping for their homes. Finding #6: The project incorporates design principles that achieve sustainability in areas related to energy efficiency, water conservation, building materials, landscaping, and site planning. The project is consistent with Finding #6 because: In accordance with the City’s Green Building Regulations, the building will satisfy the requirements for CALGreen Mandatory + Tier 2. 900 N. California Avenue (15PLN-00155) Page 9 SECTION 5. Conditions of Approval. Planning Division 1. The plans submitted for Building Permit shall be in substantial conformance with plans received and date stamped August 19, 2016, except as modified to incorporate these conditions of approval. 2. The applicant has requested removal of basement construction and subterranean building area from the single family home designs on Lots 1 and 3 and submitted revised plans documenting this change. Any future request to construct a basement under these homes shall require an amendment to this approval and a noticed public hearing before the Architectural Review Board pursuant to the procedures set forth in Palo Alto Municipal Code Section 18.77.070 (Architectural Review Process). 3. Construction of the proposed project shall comply with the City’s most recent policies and ordinances related to site dewatering, including compliance with the City Council ordinance adopted on March 7, 2017, regarding the Testing, Monitoring and Protective Measures for Temporary Construction-related Dewatering. This condition shall have precedence over any other basement or dewatering condition contained herein. 4. ARB Subcommittee: Prior to the issuance of building permits, the applicant shall return to the ARB subcommittee for approval of the following items, to the satisfaction of the Director of Planning and Community Environment: a. On lot 3, 912 N. California Avenue, revise the exterior wall and roof materials to better reflect the chosen forms and to create more architectural unity and clarity to the design. The preferred materials given the forms would be cedar shingles for wall cladding and composition shingles, cedar shingles/shakes or metal shingles for roofing. i. The applicant shall provide a 12-foot wide driveway on Lot 3 with a landscape buffer between the driveway and the adjacent property. ii. This approval does not include the propose guest house and garage. The proposed guest house and garage shall be reviewed by a subcommittee of the Architectural Review Board for a recommendation. 5. BUILDING PERMIT PLAN SET. A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit. Project plans submitted for Building permits shall incorporate the following changes: a. Show fencing on all lots to be built with the project for further review and approval Planning Staff at time of building permit submittal. b. Use obscure glazing at the side-facing window of the master bedroom on Lot 2 (900 N. California Avenue) to limit privacy impacts on the house on Lot 1 (2205 Luis Road). c. Use sills at 5-feet height or obscure glazing at 912 N. California’s left side wall at bedroom 2 and bath 2, or provide a planting strip along the interior lot line with tall 900 N. California Avenue (15PLN-00155) Page 10 screening shrubs or narrow trees between these windows and the windows of the neighbor at 920 N. California Avenue. Show the neighbor’s windows on the site plan. 6. Any exterior changes to the building such as size, location, materials or signage are subject to architectural review and approval, and for substantive changes, may require ARB review prior to installation. 7. OBSCURED GLAZING. Use obscure glazing at the side-facing window of the master bedroom on the lot 2 (900 N. California Avenue) to limit privacy impacts on the house on lot 1 (2205 Louis Road). All obscure glazing shall be permanent in nature and shall remain for the life of the structure. Obscure glazing is either decorative glazing that does not allow views through placed into the window frame or acid etched or similar permanent alteration of the glass. Films or like additions to clear glass are not permitted where obscure glazing is shown. Obscure glazing shall not be altered in the future and shall be replaced with like materials if damaged. 8. REQUIRED PARKING: All single family homes shall be provided with a minimum of one covered parking space (10 foot by 20 foot interior dimensions) and one uncovered parking space (8.5 feet by 17.5 feet). 9. UTILITY LOCATIONS: In no case shall utilities be placed in a location that requires equipment and/or bollards to encroach into a required parking space. 10. BAY WINDOWS: Bay windows if at least 18 inches above the interior floor, projecting no more than two feet, and with more than 50% window surface shall not be counted towards the homes floor area ratio (FAR). Any changes to proposed bay windows must first be reviewed and approved by the Director of Planning and Community Environment. 11. DAYLIGHT PLANE: The daylight plane must clear the point where the wall plane intersects the top of the roof material. 12. IMPERVIOUS SURFACE: A minimum of 60 % of the required front yard shall have a permeable surface that permits water absorption directly into the soil (Section 18.12.040 (h)). The building permit plan set shall include a diagram demonstrating compliance. 13. FENCES. Show fencing on all lots to be built with the project for further review and approval by Planning Staff at the time of building permit submittal. Fences and walls shall comply with the applicable provisions of Chapter 16.24, Fences, of the Palo Alto Municipal Code (PAMC). Heights of all new and existing fencing must be shown on the Building Permit plans. 14. LIGHT WELLS. Railings around light wells shall be screened from street view. Screening may consist of plant material or fencing. 15. PLANNING FINAL INSPECTION. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning, including but not limited 900 N. California Avenue (15PLN-00155) Page 11 to; materials, fenestration and hard surface locations. Contact your Project Planner at the number below to schedule this inspection. 16. INDEMNITY: To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. 17. Development Impact Fees. The proposed project would replace one single-family home and two secondary units on one parcel with three new single family homes on three parcels, therefore the estimated impact fees are $49,509.40 18. 90-day Protest Period. California Government Code Section 66020 provides that a project applicant who desires to protest the fees, dedications, reservations, or other exactions imposed on a development project must initiate the protest at the time the development project is approved or conditionally approved or within ninety (90) days after the date that fees, dedications, reservations or exactions are imposed on the Project. Additionally, procedural requirements for protesting these development fees, dedications, reservations and exactions are set forth in Government Code Section 66020. IF YOU FAIL TO INITIATE A PROTEST WITHIN THE 90-DAY PERIOD OR FOLLOW THE PROTEST PROCEDURES DESCRIBED IN GOVERNMENT CODE SECTION 66020, YOU WILL BE BARRED FROM CHALLENGING THE VALIDITY OR REASONABLENESS OF THE FEES, DEDICATIONS, RESERVATIONS, AND EXACTIONS. 19. NOISE PRODUCING EQUIPMENT: All noise producing equipment shall be located outside of required setbacks, except they may project 6 feet into the required street side setbacks. In accordance with Section 9.10.030, No person shall produce, suffer or allow to be produced by any machine, animal or device, or any combination of same, on residential property, a noise level more than six dB above the local ambient at any point outside of the property plane. 20. Noise. All noise producing equipment shall not exceed the allowances specified in Section 9.10 Noise of the Palo Alto Municipal Code, including the following: A. Construction hours shall be limited to 8:00am to 6:00pm Monday through Friday and 9:00am to 6:00pm on Saturdays. No construction is allowed on Sundays or Holidays as specified in Title 9 of the Municipal Code. B. No individual piece of equipment shall produce a noise level exceeding one hundred ten (110) dBA at a distance of twenty-five feet. C. The noise level at any point outside of the property plane of the project shall not exceed ninety (90) dBA. 900 N. California Avenue (15PLN-00155) Page 12 D. Rules and regulation pertaining to all construction activities and limitations identified in this permit, along with the name and telephone number of a developer appointed disturbance coordinator, shall be posted in a prominent location at the entrance to the job site. Public Works-Urban Forestry PRIOR TO DEMOLITION, BUILDING OR GRADING PERMIT ISSUANCE 20. Urban Forestry conditions apply to all three lots #1, 2 and 3. Responsible parties of Individual Review shall transfer each applicable condition to plan sheets for each lot to be considered approvable. 21. Lot 3 Designated Tree(s). In addition to public or protected trees (Regulated by Tree Ordinance), the applicant has designated four additional trees to be retained and protected per the tree protection plan. Thus, the Director has designated the following tree(s) #2-11”, 3-12” (Holly Oaks) and a 6” olive and 7” plum (unnumbered) of the tree report/site plan to be shown as retained, protected and permanently preserved as condition of this discretionary review process (Single Family Individual Review or other). This tree designation is for the following reasons: privacy, substantial visual character or other stated provisions of PAMC 18.76.020(d). The project arborist supervision and monthly monitoring inspections from [Kielty Arborist Services-650-515-9783] are required. The Building Permit Site Plan shall clearly indicate this note in addition to any other Regulated tree on or adjacent to the property. 22. BUILDING PERMIT SUBMITTAL- PROJECT ARBORIST CERTIFICATION LETTER. Prior to submittal for staff review, attach a Project Arborist Certification Letter that he/she has; (a) reviewed the entire building permit plan set submittal and, (b)* verified all his/her updated TPR mitigation measures and changes are incorporated in the plan set, (c) affirm that ongoing Contractor/Project Arborist site monitoring inspections and reporting have been arranged with the contractor or owner (see Sheet T-1) and, (d) understands that design revisions (site or plan changes) within a TPZ will be routed to Project Arborist/Contractor for review prior to approval from City. * Other changes. The certification letter will verify that incorporated design changes and are consistent with City Tree Technical Manual Standards, Regulations and information: a. Provide a project arborist’s Updated Tree Protection Report (TPR) with building permit level mitigation measures, (e.g., resolve grading proximity issues with Public trees, neighbor trees; exact TPZ scaled in feet). Provide plan revision directions to minimize root cutting conflicts that are obvious in the civil, basement, sidewalk improvement sheets. On lot #3, the updated TPR will issue location ID #’s and specific controls for adequate root preservation of trees 1, 2, 3 and unnumbered olive and plum. Updated TPR shall include oversight of two new street trees to be installed on Lot 1 and 2. b. Palo Alto Tree Technical Manual Construction Standards, Section 2.00 and PAMC 8.10.080. 23. Provide a written agreement with the neighboring property owner that the project arborist will inspect, monitor, protect, and provide needed maintenance for any protected status oak trees as 900 N. California Avenue (15PLN-00155) Page 13 described in the tree protection report. A copy of the agreement shall be provided to the Urban Forestry Section with the Certification Letter at the time of building permit submittal. Landscaping must be compatible with the health and vitality of native oaks, including prohibiting any turf grass within 25 feet of the main trunk. Landscaping and irrigation recommendations and cautions shall be added to the tree protection report on sheet T-2. 24. PLAN SET REQUIREMENTS. The final Plans submitted for building permit shall include the following information and notes on relevant plan sheets: a. SHEET T-1, BUILDING PERMIT. The building permit plan set will include the City’s full-sized, Sheet T-1 (Tree Protection-it's Part of the Plan!), available on the Development Center website at http://www.cityofpaloalto.org/civicax/filebank/documents/31783. The Applicant shall complete and sign the Tree Disclosure Statement and recognize the Project Arborist Tree Activity Inspection Schedule. Monthly reporting to Urban Forestry/Contractor is mandatory. (Insp. #1: applies to all projects; with tree preservation report: Insp. #1-7 applies) b. The Tree Preservation Report (TPR). All sheets of the Applicant’s TPR approved by the City for full implementation by Contractor, Kielty Arborist Services-650-515-9783, Updated version of December 21, 2014 TPR, shall be printed on numbered Sheet T-1 (T-2, T-3, etc) and added to the sheet index. c. Plans to show protective tree fencing. The Plan Set (esp. site, demolition, grading & drainage, foundation, irrigation, tree disposition, utility sheets, etc.) must delineate/show the correct configuration of Type I, Type II or Type III fencing around each Regulated Tree, (#1, 2, 3, 4, 5 including private olive & plum) using a bold dashed line enclosing the Tree Protection Zone (Standard Dwg. #605, Sheet T-1; City Tree Technical Manual, Section 6.35-Site Plans); or by using the Project Arborist’s unique diagram for each Tree Protection Zone enclosure. 25. SPECIAL PLAN NOTES: In addition to showing TPZ fencing, add the following Notes on the specified Plan Sheets. a. Note #1. Apply to the site plan stating, "All tree protection and inspection schedule measures, design recommendations, watering and construction scheduling shall be implemented in full by owner and contractor, as stated on Sheet T-1, in the Tree Protection Report and the approved plans”. b. Note #2. All civil plans, grading plans, irrigation plans, site plans and utility plans and relevant sheets shall add a note applying to the trees to be protected, including neighboring trees stating: "Regulated Tree--before working in this area contact the Project Site Arborist at Kielty Arborist Services-650-515-9783"; c. Note #3. Utility (sanitary sewer/gas/water/backflow/electric/storm drain) plan sheets shall include the following note: “Utility trenching shall not occur within the TPZ of the protected tree. Contractor shall be responsible for ensuring that no trenching occurs within the TPZ of the protected tree by contractors, City crews or final landscape workers. See sheet T-1 for instructions.” 900 N. California Avenue (15PLN-00155) Page 14 d. Note #4. “Basement or foundation plan. Soils Report and Excavation for basement construction within the TPZ of a protected tree shall specify a vertical cut (stitch piers may be necessary) in order to avoid over-excavating into the tree root zone. Any variance from this procedure requires Urban Forestry approval, please call (650) 496-5953.” e. Note #5. “Pruning Restrictions. No pruning or clearance cutting of branches is permitted on City trees. Contractor shall obtain a Public Tree Permit from Urban Forestry (650-496-5953) for any work on Public Trees” 26. TREE REMOVAL OR PLANTING—PROTECTED & RIGHT-OF-WAY TREES. One Publicly-owned tree #6 (28” Modesto ash) is approved for removal, as shown accurately located on all site plans, require authorization by a Urban Forestry Tree Care Permit prior to issuance of any building, demolition or grading permit. This will also be referenced in a separate Street Work Permit from Public Works Engineering. Complete the applicant information portion, and sign the Public Tree Care Permit for planting of a new street tree. Submit via email or over the counter at the Development Center with an 8 ½” x 11” copy of the site plan for our records – this may be completed at building permit stage. Find the application here: http://cityofpaloalto.org/gov/depts/pwd/trees/. a. Add plan note for each tree to be removed or planted that states, “Tree Removal. Contractor shall obtain a completed Urban Forestry Tree Care Permit separate from the Building or Street Work Permit. Permit notice hanger and conditions apply. Contact (650-496-5953).” 27. NEW RIGHT-OF-WAY TREES—PERFORMANCE MEASURES. Two new public trees shall be installed on the Louis Road frontage on Lot 1 and lot 2, and shall be shown on all relevant plans: site, utility, irrigation, landscape, etc. in a location 10’ clear radius from any (new or existing) underground utility or curb cut. a. Add note on the Planting Plan that states, “Tree Planting. Prior to in-ground installation, Urban Forestry inspection/approval required for tree stock, planting conditions and irrigation adequacy. Contact (650-496-5953).” b. Landscape Plan tree planting shall state the Urban Forestry approved species, 24” box, Fraxinus p. ‘Cimzamm’, Cimarron Ashe and using Standard Planting Dwg. # #604, and shall note the tree pit dug at least twice the diameter of the root ball. Wooden cross-brace is prohibited. c. Add note on the Planting & Irrigation Plan that states, “Irrigation and tree planting in the right- of-way requires a street work permit per CPA Public Works standards.” d. Landscape plan shall include planting preparation details for trees specifying digging the soil to at least 30-inches deep, backfilled with a quality topsoil and dressing with 2-inches of wood or bark mulch on top of the root ball keeping clear of the trunk by 1-inch. e. Automatic irrigation bubblers shall be provided for each tree. Standard Dwg. #513 shall be included on the irrigation plans and show two bubbler heads mounted on flexible tubing placed 900 N. California Avenue (15PLN-00155) Page 15 at the edge of the root ball. The tree irrigation system shall be connected to a separate valve from other shrubbery and ground cover, pursuant to the City's Landscape Water Efficiency Standards. Bubblers mounted inside an aeration tube are prohibited. 28. LANDSCAPE PLANS a. Include all changes recommended from civil engineer, architect and staff, including planting specifications if called for by the project arborist. b. Provide a detailed landscape and irrigation plan encompassing on-and off-site plantable areas out to the curb as approved by the Architectural Review Board. A Landscape Water Use statement, water use calculations and a statement of design intent shall be submitted for the project. A licensed landscape architect and qualified irrigation consultant will prepare these plans, to include: All existing trees identified both to be retained and removed including street trees. Complete plant list indicating tree and plant species, quantity, size, and locations. Irrigation schedule and plan. Fence locations. Lighting plan with photometric data. Landscape Plan shall ensure the backflow device is adequately obscured with the appropriate screening to minimize visibility (planted shrubbery is preferred, painted dark green, decorative boulder covering acceptable; wire cages are discouraged). All new trees planted within the public right-of-way shall be installed per Public Works (PW) Standard Planting Diagram #603 or 604 (include on plans), and shall have a tree pit dug at least twice the diameter of the root ball. Landscape plan shall include planting preparation details for trees specifying digging the soil to at least 30-inches deep, backfilled with a quality topsoil and dressing with 2-inches of wood or bark mulch on top of the root ball keeping clear of the trunk by 1-inch. Automatic irrigation shall be provided to all trees. For trees, Standard Dwg. #513 shall be included on the irrigation plans and show two bubbler heads mounted on flexible tubing placed at the edge of the root ball. Bubblers shall not be mounted inside an aeration tube. The tree irrigation system shall be connected to a separate valve from other shrubbery and ground cover, pursuant to the City's Landscape Water Efficiency Standards. Irrigation in the right-of-way requires a street work permit per CPA Public Works standards. c. Landscape notes shall be added to include the following mandatory criteria: “Prior to any planting, all plantable areas shall be tilled to 12” depth, and all construction rubble and stones over 1” or larger shall be removed from the site.” “A turf-free zone around trees 36” diameter (18” radius) required for best tree performance.” “Percolation & drainage checks will be performed and adequately corrected.” “Fine grading inspection of all plantable areas will be personally inspected for tilling depth, rubble removal, soil test amendments are mixed and irrigation trenching will not cut through any tree roots.” 900 N. California Avenue (15PLN-00155) Page 16 “Tree and Shrub Planting Specifications, including delivered stock, meets Standards in the CPA Tree Technical Manual, Section 3.30-3.50. Girdling roots and previously topped trees are subject to rejection.” DURING CONSTRUCTION 29. TREE PROTECTION VERIFICATION. Prior to any site work a written verification from the contractor that the required protective fencing is in place shall be submitted to the Urban Forestry Section (derek.sproat@cityofpaloalto.org). The fencing shall contain required warning sign and remain in place until final inspection of the project. 30. EXCAVATION RESTRICTIONS APPLY (TTM, Sec. 2.20 C & D). Any approved grading, digging or trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans to be implemented by Contractor. 31. PLAN CHANGES. Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the (a) project site arborist, Kielty Arborist Services-650-515-9783 with written letter of acceptance before submitting the revision to the Building Department for review by Planning, PW or Urban Forestry. 32. CONDITIONS. All Planning Department conditions of approval for the project shall be printed on the plans submitted for building permit. 33. TREE PROTECTION COMPLIANCE. The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR & Sheet T-1, and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City. The mandatory Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City (pwps@cityofpaloalto.org) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. 34. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to TTM, Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25. 35. GENERAL. The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. 900 N. California Avenue (15PLN-00155) Page 17 PRIOR TO OCCUPANCY 36. URBAN FORESTRY DIGITAL FILE & INSPECTION. The applicant or architect shall provide a digital file of the landscape plan, including new off-site trees in the publicly owned right-of-way. A USB Flash Drive, with CAD or other files that show species, size and exact scaled location of each tree on public property, shall be delivered to Urban Forestry at a tree and landscape inspection scheduled by Urban Forestry (650-496-5953). 37. PROJECT ARBORIST CERTIFICATION LETTER. Prior to written request for temporary or final occupancy, the contractor shall provide to the Planning Department and property owner a final inspection letter by the Project Arborist. The inspection shall evaluate the success or needs of Regulated tree protection, including new landscape trees, as indicated on the approved plans. The written acceptance of successful tree preservation shall include a photograph record and/or recommendations for the health, welfare, mitigation remedies for injuries (if any). The final report may be used to navigate any outstanding issues, concerns or security guarantee return process, when applicable. 38. PLANNING INSPECTION. Prior to final sign off, contractor or owner shall contact the city planner (650-329-2441) to inspect and verify Special Conditions relating to the conditions for structures, fixtures, colors and site plan accessories. POST CONSTRUCTION 39. MAINTENANCE. All landscape and trees shall be maintained, watered, fertilized, and pruned according to Best Management Practices-Pruning (ANSI A300-2008 or current version) and the City Tree Technical Manual, Section 5.00. Any vegetation that dies shall be replaced or failed automatic irrigation repaired by the current property owner within 30 days of discovery. Public Works Engineering Division The following comments are provided as a courtesy and shall be addressed prior to any other permit application submittal. This includes Building Permit, Excavation and Grading Permit, Certificate of Compliance, Street Work Permit and Encroachment Permit but after the Planning entitlement approval. 40. MAPPING: Applicant shall file for a Minor Subdivision Application with the Planning Department for creating three (3) or lots. Public Works’ Tentative Maps and Preliminary Parcel Maps checklist must accompany the completed application. All existing and proposed dedications and easements must be shown on the submitted map. The map would trigger further requirements from Public Works, see Palo Alto Municipal Code section 21.12 for Preliminary Parcel Map requirements and section 21.16 for Parcel Map requirements. The Parcel Map shall be recorded prior to issuance of building permit or grading and excavation permit. A digital copy of the Parcel Map, in AutoCAD format, shall be submitted to Public Works Engineering and shall conform to North American Datum 1983 State Plane Zone 3 for horizontal survey controls and NGVD88 for vertical survey controls. 900 N. California Avenue (15PLN-00155) Page 18 41. Provide the following as a note on the Parcel Map: C.3 MAINTENANCE STATEMENT LOTS CREATED SHALL COMPLY WITH MUNICIPAL REGIONAL STORM WATER PERMIT (MPR) C.3 PROVISIONS. THE STORMWATER TREATMENT MEASURES CONSTRUCTED ON EACH LOT SHALL BE MAINTAINED AND REPAIRED IN PERPETUITY BY THE PROPERTY OWNER. FUTURE DEVELOPER/PROPERTY OWNERS SHALL ENTER INTO ONE OR SEPARATE AGREEMENTS WITH THE CITY TO MAINTAIN TREATMENT MEASURES ON A FORM APPROVED BY THE CITY ATTORNEY. THIS CONDITION SHALL BE BINDING ON SUBDIVER AN ANY SUCCESSORS IN INTEREST. 42. SUBDIVISION IMPROVEMENT AGREEMENT: Subdivision Improvement Agreement is required to secure compliance with condition of approval and security of the offsite improvements per PAMC Section 21.16.220. 43. COST ESTIMATE: Provide a construction cost estimate for the proposed off-site improvements. PRIOR TO ISSUANCE OF AN EXCAVATION AND GRADING PERMIT AND/OR BUILDING PERMIT. 44. Parcel Map shall be recorded with the County Recorder. 45. DEMOLITION PLAN: Place the following note adjacent to an affected tree on the Site Plan and Demolition Plan: “Excavation activities associated with the proposed scope of work shall occur no closer than 10-feet from the existing street tree, or as approved by the Urban Forestry Division contact 650-496-5953. Any changes shall be approved by the same”. 46. GRADING PERMIT: An Excavation and Grading Permit is required for grading activities on private property that fill, excavate, store or dispose of 100 cubic yards or more based on PAMC Section 16.28.060. Applicant shall prepare and submit an excavation and grading permit to Public Works separately from the building permit set. The permit application and instructions are available at the Development Center and on our website. http://www.cityofpaloalto.org/gov/depts/pwd/forms_and_permits.asp 47. GEOTECHNICAL REPORT: Shall clearly identify the highest projected groundwater level to be encountered in the area of the proposed basement in the future will be ______ feet below existing grade. Provide the following note on the Rough Grading and Final Grading Plans. “In my professional judgement, the highest projected groundwater level to be encountered in the area of the proposed basement in the future will be ______ feet below existing grade. As a result, the proposed drainage system for the basement retaining wall will not encounter and pump groundwater during the life of this wall.” 48. GRADING & DRAINAGE PLAN: The plan set must include a grading & drainage plan prepared by a licensed professional that includes existing and proposed spot elevations, earthwork volumes, finished floor elevations, area drain and bubbler locations, drainage flow arrows to demonstrate proper drainage of the site. Adjacent grades must slope away from the house a minimum of 2% or 5% for 10-feet per 2013 CBC section 1804.3. Downspouts and splashblocks should be shown on 900 N. California Avenue (15PLN-00155) Page 19 this plan, as well as any site drainage features such as swales, area drains, bubblers, etc. Grading that increases drainage onto, or blocks existing drainage from neighboring properties, will not be allowed. Public Works generally does not allow rainwater to be collected and discharged into the street gutter, but encourages the developer to keep rainwater onsite as much as feasible by directing runoff to landscaped and other pervious areas of the site. See the Grading & Drainage Plan Guidelines for New Single Family Residences on the City’s website. http://www.cityofpaloalto.org/civicax/filebank/documents/2717 The bioretention areas shall not be closer than 10-feet from the front property line and 3-feet from the side property line. Provide these dimensions directly on the plans. Also the bioretention areas should only treat the impervious areas. As shown the bioretention areas appear to treat both the pervious and impervious areas. Either increase the size of these to treat both the pervious and impervious areas or direct the only the impervious areas (roof, deck, patio, etc) only to these through piped system. Plans provide don’t indicate if a permeable pavement system is proposed. If a permeable pavement system is proposed provide the combined and the individual lot square footage areas. Provide the following as a note on the plans “Pervious paving systems of 3,000 SF or more requires installation inspection.” 49. Provide the following note on the Grading and Drainage Plan and/or Site Plan: “Contractor shall contact Public Works Engineering (PWE) Inspectors to inspect and approve the storm drain system (pipes, area drains, inlets, bubblers, dry wells, etc.) associated with the project prior to backfill. Contractor shall schedule an inspection, at a minimum 48-hours in advance by calling (650)496- 6929”. 50. UTILITY PLAN: shall be provided with the Building Permit and demonstrate if project’s storm drain utility will drain by gravity or if a pump is required. Public Works generally does not allow downspout rainwater to be collected, piped and discharged into the street gutter or connect directly to the City’s infrastructure. The utility plan shall indicate downspouts will be disconnected, daylight at grade, directed to landscaped and other pervious areas of the site. Downspouts shall daylight away from the foundation. If pumps are required plot and label where the pumps will be located, storm water runoff from pumped system shall daylight to the onsite landscaped areas allowed to infiltrate and flow by gravity to the public storm drain line. Storm water runoff that is pumped shall not be directly piped into the public storm drain line. Bioretention swales shall be designed to use the full swale length for treatment, place the bubbler (outlet) and catch basin (inlet) at the ends of the swale. For example swales near building two appear to have inlet at the midway point instead of the ends. 51. The site drainage system that collects runoff from downspouts and landscape area shall be a separated from the pump system that discharges runoff from light wells. Plot and clearly label the two separate systems and including the separate outfalls for each system. 900 N. California Avenue (15PLN-00155) Page 20 52. BASEMENT DRAINAGE: Due to high groundwater throughout much of the City and Public Works prohibiting the pumping and discharging of groundwater, perforated pipe drainage systems at the exterior of the basement walls or under the slab are not allowed for this site. A drainage system is, however, required for all exterior basement-level spaces, such as lightwells, patios or stairwells. This system consists of a sump, a sump pump, a backflow preventer, and a closed pipe from the pump to a dissipation device onsite at least 10-feet from the property line and 3-feet from side a rear property lines, such as a bubbler box in a landscaped area, so that water can percolate into the soil and/or sheet flow across the site. Include these dimensions on the plan. The device must not allow stagnant water that could become mosquito habitat. Additionally, the plans must show that exterior basement-level spaces are at least 7-3/4” below any adjacent windowsills or doorsills to minimize the potential for flooding the basement. Public Works recommends a waterproofing consultant be retained to design and inspect the vapor barrier and waterproofing systems for the basement. 53. BASEMENT SHORING: Shoring Plans prepared by a licensed professional are required for the Basement Excavation and shall be submitted with the Grading and Excavation Permit. Shoring for the basement excavation, including tiebacks, must not extend onto adjacent private property or into the City right-of-way without having first obtained written permission from the private property owners and/or an encroachment permit from Public Works. 54. DEWATERING: Excavation may require dewatering during construction. Public Works only allows groundwater drawdown well dewatering. Open pit groundwater dewatering is not allowed. Dewatering is only allowed from April through October due to inadequate capacity in our storm drain system. The geotechnical report for this site must list the highest anticipated groundwater level. We recommend that a piezometer be installed in the soil boring. The contractor shall determine the depth to groundwater immediately prior to excavation by using a piezometer or by drilling and exploratory hole. Based on the determined groundwater depth and season the contractor may be required to dewater the site or stop all grading and excavation work. In addition Public Works may require that all groundwater be tested for contaminants prior to initial discharge and at intervals during dewatering. If testing is required, the contractor must retain an independent testing firm to test the discharge water for contaminants Public Works specifies and submit the results to Public Works. Public Works reviews and approves dewatering plans as part of a Street Work Permit. The applicant can include a dewatering plan in the building permit plan set in order to obtain approval of the plan during the building permit review, but the contractor will still be required to obtain a street work permit prior to dewatering. Alternatively, the applicant must include the above dewatering requirements in a note on the site plan. Public Works has a sample dewatering plan sheet and dewatering guidelines available at the Development Center and on our website. http://www.cityofpaloalto.org/gov/depts/pwd/forms_and_permits.asp The following links are included to assist the applicant with dewatering requirements. http://www.cityofpaloalto.org/civicax/filebank/documents/30978 http://www.cityofpaloalto.org/civicax/filebank/documents/51366 http://www.cityofpaloalto.org/civicax/filebank/documents/47388 900 N. California Avenue (15PLN-00155) Page 21 55. WATER FILLING STATION: Due to the California drought, applicant shall install a water station for the non-potable reuse of the dewatering water. This water station shall be constructed within private property, next to the right-of-way, (typically, behind the sidewalk). The station shall be accessible 24 hours a day for the filling of water carrying vehicles (i.e. street sweepers, etc.). The water station may also be used for onsite dust control. Before a discharge permit can be issued, the water supply station shall be installed, ready for operational and inspected by Public Works. The groundwater will also need to be tested for contaminants and chemical properties for the non- potable use. The discharge permit cannot be issued until the test results are received. Additional information regarding the station will be made available on the City’s website under Public Works. 56. GROUNDWATER USE PLAN: A Groundwater Use Plan (GWUP) shall be submitted for review for any project which requires dewatering. The GWUP, a narrative that shall be included in or accompany the Dewatering Plan, must demonstrate the highest beneficial use practicable of the pumped groundwater. The GWUP shall also state that all onsite, non-potable water needs such as dust control shall be met by using the pumped groundwater. Delays in submitting the GWUP can result in delays in the issuance of your discharge permit as Public Works requires sufficient review time which shall be expected by the applicant. 57. STORM WATER TREATMENT: This project shall comply with the storm water regulations contained in provision C.3 of the NPDES municipal storm water discharge permit issued by the San Francisco Bay Regional Water Quality Control Board (and incorporated into Palo Alto Municipal Code Chapter 16.11). These regulations apply to land development projects that create or replace 10,000 square feet or more of impervious surface. In order to address the potential permanent impacts of the project on storm water quality, the applicant shall incorporate into the project a set of permanent site design measures, source controls, and treatment controls that serve to protect storm water quality, subject to the approval of the Public Works Department. The applicant shall identify, size, design and incorporate permanent storm water pollution prevention measures (preferably landscape-based treatment controls such as bioswales, filter strips, and permeable pavement rather than mechanical devices that require long-term maintenance) to treat the runoff from a “water quality storm” specified in PAMC Chapter 16.11 prior to discharge to the municipal storm drain system. Effective January 1, 2016, regulated projects, must contract with a qualified third- party reviewer during the Building permit review process to certify that the proposed permanent storm water pollution prevention measures comply with the requirements of Palo Alto Municipal Code Chapter 16.11. The certification form, 2 copies of approved storm water treatment plan, and a description of Maintenance Task and Schedule must be received by the City from the third-party reviewer prior to approval of the building permit by the Public Works department. 58. STORM WATER TREATMENT: Provide the following as note on the plans: “At the time of installation of the required storm water treatment measures and prior to the issuance of any occupancy permit, a third-party reviewer shall also submit to the City a certification for approval that the project’s permanent measures were constructed and installed in accordance to the approved permit drawings. “ 900 N. California Avenue (15PLN-00155) Page 22 59. STORM WATER POLLUTION PREVENTION: The City's full-sized "Pollution Prevention - It's Part of the Plan" sheet must be included in the plan set. Copies are available from Public Works on our website http://www.cityofpaloalto.org/civicax/filebank/documents/2732 60. LOGISTICS PLAN: The applicant and contractor shall submit a construction logistics plan to the Public Works Department that addresses all impacts to the City’s right-of-way, including, but not limited to: pedestrian control, traffic control, truck routes, material deliveries, contractor’s parking, on-site staging and storage areas, concrete pours, crane lifts, work hours, noise control, dust control, storm water pollution prevention, contractor’s contact. The plan shall be prepared and submitted along the Rough Grading and Excavation Permit. Plot the construction fence, entrances, shoring, limits of over excavation, construction workers parking area, staging and storage areas within the private site for equipment and material. It shall include notes as indicated on the approved Truck Route Map for construction traffic to and from the site. Plan shall also indicate if the bus stop will need to be relocated. Show how the bike lane will remain accessible during construction. 61. WORK IN THE RIGHT-OF-WAY: The plans must clearly indicate any work that is proposed in the public right-of-way, such as sidewalk replacement, driveway approach, or utility laterals. The plans must include notes that the work must be done per City standards and that the contractor performing this work must first obtain a Street Work Permit from Public Works at the Development Center. If a new driveway is in a different location than the existing driveway, then the sidewalk associated with the new driveway must be replaced with a thickened (6” thick instead of the standard 4” thick) section. Additionally, curb cuts and driveway approaches for abandoned driveways must be replaced with new curb, gutter and planter strip. 62. OFFSITE IMPROVEMENT PLANS: Provide an off-site improvement plan that shows the proposed improvements (replacement of curb and gutter, sidewalk, driveways, pavement restoration), street trees (if any). The rolled curb and gutter along the frontage shall be replaced in kind. The existing ramp at the corner shall be replaced with two directional ramps that comply with the accessibility requirements. The sidewalk section along the new driveway locations shall be replaced with a thicker section per City standards. Any of the existing striping that is affected with the replacement of the concrete or asphalt work, shall also be replaced with thermoplastic material. The off-site plans shall include the striping. Plans shall include all of the existing laterals that are designated to remain or abandoned and all new laterals that are required to serve the project. New hydrant upgrades may also require new lateral for that hydrant. Plot and clearly label the upgrades on the plans. 63. RESURFACING: Provide the following as a note on the plans “The applicant and contractor will be responsible for resurfacing (grind and overlay) portions of Louis Road and North California Avenue based on the roadway surface condition after project completion and limits of trench work. At a minimum full with of pavement resurfacing along the project along the project frontages may be required.” Plot the limits of resurfacing on the plans. 64. SIDEWALK, CURB & GUTTER: As part of this project, the applicant must replace existing sidewalks, curbs, gutters or driveway approaches in the public right-of-way along the frontage(s) of the 900 N. California Avenue (15PLN-00155) Page 23 property. Project shall also replace the three of the existing ramps at the intersection of Louis Road and North California Avenue with new accessibly compliant ramps. The site plan and grading and drainage plan submitted with the building permit plan set must show the extent of the replacement work. The plan must note that any work in the right-of-way must be done per Public Works’ standards by a licensed contractor who must first obtain a Street Work Permit from Public Works at the Development Center. 65. Provide the following note on the Site Plan and adjacent to the work within the Public road right- of-way. “Any construction within the city’s public road right-of-way shall have an approved Permit for Construction in the Public Street prior to commencement of this work. THE PERFORMANCE OF THIS WORK IS NOT AUTHORIZED BY THE BUILDING PERMIT ISSUANCE BUT SHOWN ON THE BUILDING PERMIT FOR INFORMATION ONLY.” 66. Add the following note on the Site Plan and Grading and Drainage Plan “Excavation activities shall not occur closer than 10 feet from the existing street tree, as approved by the Urban Forestry Division. Any changes shall be approved by the same, contact urban forestry at 650-496-5953.” 67. Provide the following note on the Site Plan and Grading and Drainage Plan: “Contractor shall not stage, store, or stockpile any material or equipment within the public road right-of-way.” Construction phasing shall be coordinate to keep materials and equipment onsite. 68. UTILITIES: Note that all above ground utilities, such as transformer, backflow preventer, gas meters, etc., shall be located within project site but accessible from the street. 69. IMPERVIOUS SURFACE AREA: The project will be creating or replacing 500 square feet or more of impervious surface. Accordingly, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application. The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. 70. STREET TREES: The applicant may be required to replace existing and/or add new street trees in the public right-of-way along the property’s frontage(s). Call the Public Works’ arborist at 650-496- 5953 to arrange a site visit so he can determine what street tree work, if any, will be required for this project. The site plan submitted with the building permit plan set must show the street tree work that the arborist has determined, including the tree species, size, location, staking and irrigation requirements, or include a note that Public Works’ arborist has determined no street tree work is required. The plan must note that in order to do street tree work, the applicant must first obtain a Permit for Street Tree Work in the Public Right-of-Way from Public Works’ arborist (650- 496-5953). 71. ADJACENT NEIGHBORS: For any improvements that extend beyond the property lines such as tie- backs for the basement, provide signed copies of the original agreements with the adjacent property owners. The agreements shall indicate that the adjacent property owners have reviewed and approved the proposed improvements (such as soldier beams, tiebacks) that extend into their respective properties 900 N. California Avenue (15PLN-00155) Page 24 PRIOR TO BUILDING PERMIT FINAL 72. STORMWATER MAINTENANCE AGREEMENT: The applicant shall designate a party to maintain the control measures for the life of the improvements and must enter into a maintenance agreement with the City to guarantee the ongoing maintenance of the permanent C.3 storm water discharge compliance measures. The maintenance agreement shall be executed prior to the first building occupancy sign-off. The City will inspect the treatment measures yearly and charge an inspection fee. There is currently a $381 C.3 (2015FY) plan check fee that will be collected upon submittal for a grading or building permit. The following comments are provided as a courtesy and must be complied with at the Building Permit phase of this project (after the Planning entitlement approval): NOTE: Please be advised that the Palo Alto City Council has approved a new energy and green building ordinance as of April 20th with the final administrative approval on May 11th. State filing requirements are currently underway. The following requirements reflect the criteria from the new ordinance. Due to the nature and typical schedule of this this project type, it is assumed that this application will submit for a building permit after the new requirements are adopted, which is targeted for June 20th, 2015. To review the upcoming changes, view the press release which contains a link to the approved language. You may also email Melanie Jacobson at Melanie.Jacobson@CityofPaloAlto.org for specific questions about your project. Local Energy Reach Code for Residential Projects 73. The project includes new construction and therefore triggers the Local Energy Efficiency Reach Code. For all new single-family residential, multi-family residential, and non-residential construction: The performance approach specified within the 2013 California Energy Code shall be used to demonstrate that the TDV Energy of the proposed building is at least 15% less than the TDV Energy of the Standard Design. (Ord. 5324 § 1 (part), 2015) Green Building Requirements for Residential Projects 74. The project is a new construction residential building and therefore must meet the California Green Building Code mandatory requirements outlined in Chapter 4, (with local amendments) plus Tier 2 minimum pre-requisites and electives outlined in Appendix A4* (with local amendments). The project must hire a Green Building Special Inspector for a pre-permit third-party design review and a third-party green building inspection process. The project must select a Green Building Special Inspector from the City’s list of approved inspectors. This list will be available in early June. The project has provided a preliminary GB-1 sheet in the planning package. Requirement met. OR The project must provide a preliminary GB-1 sheet for planning entitlement. Submittal requirements are outlined on the Development Services Green Building webpage. http://www.cityofpaloalto.org/gov/depts/ds/green_building/default.asp PAMC 16.14.080 (Ord. 5324 § 1 (part), 2015) *Note: Projects subject to Tier 1 or Tier 2 shall not be required to fulfill any requirements outlined 900 N. California Avenue (15PLN-00155) Page 25 in Appendix A4.2 Energy Efficiency. All energy efficiency measures are found in the 2013 California Energy Code and the Palo Alto Energy Reach Code PAMC 16.17 & 16.18. 75. The project is a residential construction project of any size and therefore must meet the enhanced construction waste reduction at tier 2 (75% construction waste reduction). PAMC 16.14.160 (Ord. 5324 § 1 (part), 2013) 76. The project is a new detached single-family dwelling and therefore shall comply with the following requirements for electric vehicle supply equipment (EVSE) as shown in : a) The property owner shall provide as minimum a panel capable to accommodate a dedicated branch circuit and service capacity to install at least a 208/240V, 50 amperes grounded AC outlet (Level 2 EVSE). The raceway shall terminate in close proximity to the proposed location of the charging system into a listed cabinet, box, enclosure, or receptacle. The raceway shall be installed so that minimal removal of materials is necessary to complete the final installation. The raceway shall have capacity to accommodate a 100-ampere circuit. b) Design. The proposed location of a charging station may be internal or external to the dwelling, and shall be in close proximity to an on-site parking space. The proposed design must comply with all applicable design guidelines, setbacks and other code requirements. PAMC 16.14.420 (Ord. 5263 § 2, 2014) Utilities Water-Gas-Wastewater Engineering PRIOR TO ISSUANCE OF DEMOLITION PERMIT 77. Prior to demolition, the applicant shall submit the existing water/wastewater fixture unit loads (and building as-built plans to verify the existing loads) to determine the capacity fee credit for the existing load. If the applicant does not submit loads and plans they may not receive credit for the existing water/wastewater fixtures. 78. The applicant shall submit a request to disconnect all utility services and/or meters including a signed affidavit of vacancy. Utilities will be disconnected or removed within 10 working days after receipt of request. The demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed. FOR BUILDING PERMIT 79. The applicant shall submit a completed water-gas-wastewater service connection application - load sheet for City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.p.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain). 80. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way 900 N. California Avenue (15PLN-00155) Page 26 including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations and any other required utilities. 81. The applicant must show on the site plan the existence of any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc). 82. The applicant shall be responsible for installing and upgrading the existing utility mains and/or services as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services. 83. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA’s for domestic service shall be lead free. Show the location of the RPPA on the plans. 84. An approved reduced pressure detector assembly is required for the existing or new water connection for the fire system to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive (a double detector assembly may be allowed for existing fire sprinkler systems upon the CPAU’s approval). Reduced pressure detector assemblies shall be installed on the owner's property adjacent to the property line, within 5’ of the property line. Show the location of the reduced pressure detector assembly on the plans. 85. All backflow preventer devices shall be approved by the WGW engineering division. Inspection by the utilities cross connection inspector is required for the supply pipe between the meter and the assembly. 86. Existing wastewater laterals that are not plastic (ABS, PVC, or PE) shall be replaced at the applicant’s expense. 87. Existing water services that are not a currently standard material shall be replaced at the applicant’s expense. 88. The applicant shall pay the capacity fees and connection fees associated with new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation. 89. Each unit or place of business shall have its own water and gas meter shown on the plans. Each parcel shall have its own water service, gas service and sewer lateral connection shown on the plans. 90. A new water service line installation for domestic usage is required. For service connections of 4- inch through 8-inch sizes, the applicant's contractor must provide and install a concrete vault with meter reading lid covers for water meter and other required control equipment in accordance with the utilities standard detail. Show the location of the new water service and meter on the plans. 900 N. California Avenue (15PLN-00155) Page 27 91. A new gas service line installation is required. Show the new gas meter location on the plans. The gas meter location must conform with utilities standard details. 92. A new sewer lateral installation per lot is required. Show the location of the new sewer lateral on the plans 93. Where public mains are installed in private streets/PUEs for condominium and town home projects the CC&Rs and final map shall include the statement: “Public Utility Easements: If the City’s reasonable use of the Public Utility Easements, which are shown as P.U.E on the Map, results in any damage to the Common Area, then it shall be the responsibility of the Association, and not of the City, to Restore the affected portion(s) of the Common Area. This Section may not be amended without the prior written consent of the City”. 94. All existing water and wastewater services that will not be reused shall be abandoned at the main per WGW utilities procedures. 95. Utility vaults, transformers, utility cabinets, concrete bases, or other structures can not be placed over existing water, gas or wastewater mains/services. Maintain 1’ horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. Trees may not be planted within 10 feet of existing water, gas or wastewater mains/services or meters. New water, gas or wastewater services/meters may not be installed within 10’ or existing trees. Maintain 10’ between new trees and new water, gas and wastewater services/mains/meters. 96. To install new gas service by directional boring, the applicant is required to have a sewer cleanout at the front of the building. This cleanout is required so the sewer lateral can be videoed for verification of no damage after the gas service is installed by directional boring. 97. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas & wastewater. PASSED: AYES: NOES: ABSENT: ABSTENTIONS: 900 N. California Avenue (15PLN-00155) Page 28 ATTEST: APPROVED: City Clerk Director of Planning and Community Environment APPROVED AS TO FORM: Senior Asst. City Attorney PLANS AND DRAWINGS REFERENCED: Those plans prepared by Kohler and Associates Architects titled “900 N. California Avenue”, consisting of 49 pages, dated August 19, 2016. Recommendation Staff recommends that the City Council uphold the Director’s approval of an Architectural Review application, thereby denying the appeal. Executive Summary The applicant received approval last year to subdivide a large R-1 zoned property into three lots. The applicant proposes to demolish three existing homes on that property, which would be replaced by three new homes; one of the new homes would have a second dwelling unit. Typically, new home development is reviewed by city staff. However, when an application to construct three or more new homes is filed, the Code requires additional review by the Architectural Review Board (ARB), which forwards a recommendation to the Director. Following ARB review, the Director approved the proposed homes in November. This decision was appealed necessitating review before the City Council. The appellant’s reason for the appeal is provided in Attachment B and summarized as: The appellant states that not one of the neighbors within 600 feet of the project site received notice of the ARB Public Hearing. The appellant believes that residents have not had an opportunity to comment on issues related to: o Management of heavy commuter and school/bicycle traffic twice daily and construction worker parking. o The impact of dewatering three units simultaneously. o Ongoing monitoring and contact personnel for ad hoc communications from residents. o Remedy the current inadequate on site signage that needs to be expanded for notifying the general neighborhood of the construction on site. o Shared driveway between Site 2 and Site 3. The City Council may accept this report and adopt the staff recommendation on Consent, thereby denying the appeal and accepting the Director’s decision based on the information contained herein. Alternatively, if three or more City Councilmembers request, the matter can be pulled from the Consent calendar and scheduled for a future noticed public hearing (approximately 6-8 weeks from this Council date). Included with this report are all relevant records, including the Director’s determination letter (Attachment D) and an excerpt of the verbatim transcript of the ARB meeting (Attachment C). Background The proposed project is an Architectural Review of three single family homes. Typically, single family homes are reviewed by City staff for conformance with the Individual Review Guidelines (PAMC 18.12.110) and processed in accordance with the Low-Density Residential Review Process (PAMC 18.77.075). However, three or more single family homes proposed at one time require review by the City’s Architectural Review Board (PAMC 18.76.020(b)(2)(c)) and an ultimate decision by the Director of Planning and Community Environment. The Directors decision can be appealed to the City Council. The project site contains three existing homes on one lot with three different addresses. The project would demolish these homes and construct one new single family home on each parcel. The largest of the three parcels would be developed with a second dwelling unit. The proposed homes are all two-stories with basements. Each home contains below grade patios and light wells to allow light into the basements. Houses range in size from approximately 3,100 square feet to almost 4,000 square feet (sf). The homes are generally a traditional architectural style with contemporary Colonial Revival architectural elements. Louis Road provides access to Lot 1; Lots 2 and 3 are accessed from California Avenue. A detailed description of the proposed project is included in Attachment I. The City’s Architectural Review Board reviewed and recommended approval to the Director of Planning and Community Environment on September 15, 2016. Their motion included a condition to return to the ARB subcommittee with revisions as described below. The Director signed the determination letter on November 1, 2016. The Palo Alto Municipal Code provides 14 days to file an appeal, and a timely appeal was filed on November 15, 2016. A discussion of the September 15, 2016 hearing is provided below. Accompanying the request for Architectural Review was a parcel map to subdivide the property into three lots for each of the single family homes. This parcel map requested an exception to the PAMC for one of the lots to exceed the minimum lot size. This project was reviewed by the City’s Planning and Transportation Commission on October 26, 2016, which unanimously recommended conditional approval to the City Council. The City Council reviewed the proposed parcel map on November 14, 2016. The Council added conditions to the parcel map which required the accessory dwelling unit and garage to be setback eight-feet from all property lines and that the applicant submit a geotechnical report that considered the simultaneous dewatering of site for the proposed homes. With these conditions, the Council voted to approve the project at the November 14, 2016 hearing. ARB Review and Recommendation The ARB reviewed the project plans and oral testimony from the applicant at a public hearing on September 15, 2016. Members of the public did not attend the meeting to provide comments. The ARB discussed the aesthetic quality of the project, access width of the driveway on lot 3 and the location and architectural style of the homes, garage and accessory dwelling unit on lot 3. The ARB requested that the applicant return to a subcommittee of the ARB to review the driveway width on lot 3 and the style and positioning of the detached garage and accessory dwelling unit. The ARB transcript of the meeting is provided in Attachment C. The applicant has recently modified the project plans in response to the Board’s direction and those plans are the ones included in this report. Specifically changes from the director approved plans and the plans included in this packet include the following: The home on lot 3 is setback 12 feet from the property line at 920 N. California Ave. This space affords a landscape buffer and 11 foot driveway. In response to the Council’s direction, the accessory dwelling unit and garage are setback eight feet from all property lines. The accessory dwelling unit has a window header height of six-foot nine-inches, which is less than the seven-foot tall fence along the property lines. The applicant also incorporated landscape screening between the fence and homes to enhance the level of privacy. The accessory dwelling unit and detached garage incorporated similar design elements as the main residence on lot 3. Discussion The appellants are Beatrix Cashmore, the property owner of 928 N. California Avenue and Nicholas Kaposhilin of 936 N. California Avenue. Below is a summary of key appeal statements and information about the issues raised in the appeal, followed by initial staff comments. If the appeal is granted and the Council elects to schedule this item for a noticed public hearing, the Council would conduct a “de novo” hearing, which means it may consider any of the issues raised by appellants or any other issue related to architectural review. Appeal Comment 1: The appellant suggests improper public noticing of the ARB hearing on September 15, 2016. Staff Response: The proposed project is subject to the City’s public noticing requirements. The Palo Alto Municipal Code requires notice of a public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Mailed notice was sent on September 2, 2015, 13 days prior to the hearing. Notice of the hearing was published in the September 2, 2016 edition of the Palo Alto Weekly, 13 days in advance of the hearing. The hearing agenda was also available online on the city’s website and posted at the information kiosk at city hall. Attachments E and F contain an excerpt from the city’s mailing list and includes the appellant’s information. An affidavit attesting to proper noticing is also included in this attachment. Based on the foregoing, staff has concluded the project met and exceeded the standard noticing requirements. Staff is unable to attest as to whether the appellant actually received the notice, which is subject to other variables beyond the city’s control, including proper postal delivery and what an individual or family member does with the notice and the amount of attention paid to the notice when received. Appeal Comment 2: The appellant suggests input from local residents is required regarding management of potentially disruptive or unsafe effects on the neighborhood and should be addressed in collaboration with project planners. Staff Response: This is an understandable comment since the appellant reports not being informed about the project. In most instances, local residents would become informed of the project through site posting and mailed notices, which provides an opportunity for interested persons to offer comments about the project and to express concerns about potential impacts. The city also uses an online service to sign up for email notification of planning projects in their neighborhood (https://paloalto.buildingeye.com/planning). While the appellant’s concerns were not expressed prior to the determination letter, the city routinely evaluates projects from a multi-disciplinary perspective receiving comments from the city’s planning, building, public works, utilities, fire, urban forestry, and legal departments. This particular project was approved based on a number of standard conditions intended to minimize the disruptive impacts of construction. Additionally, a few special conditions were added to this approval determination to address the unique nature of three sites being developed at one time. Some of these special and standard conditions are provided below that related to this issue: Condition #59: The applicant and contractor shall submit a construction logistics plan to the Public Works Department that addresses all impacts to the City’s right-of-way, including, but not limited to: o Pedestrian control o Traffic control o Truck routes o Material deliveries o Contractor’s parking o On-site staging and storage areas o Concrete pours o Crane lifts o Work hours o Noise control o Dust control o Storm water pollution prevention o Contractor’s contact. This plan is required to be prepared and submitted for review by the City along the Rough Grading and Excavation Permit. Plot the construction fence, entrances, shoring, limits of over excavation, construction workers parking area, staging and storage areas within the private site for equipment and material. The plan is also required to include notes as indicated on the approved Truck Route Map for construction traffic to and from the site, and how the bike lane will remain accessible during construction Condition # 64: Provide the following note on the Site Plan and adjacent to the work within the Public road right-of-way. “Any construction within the city’s public road right- of-way shall have an approved Permit for Construction in the Public Street prior to commencement of this work. THE PERFORMANCE OF THIS WORK IS NOT AUTHORIZED BY THE BUILDING PERMIT ISSUANCE BUT SHOWN ON THE BUILDING PERMIT FOR INFORMATION ONLY.” Condition # 66: Contractor shall not stage, store, or stockpile any material or equipment within the public road right-of-way.” Construction phasing shall be coordinate to keep materials and equipment onsite. Further, the parcel map approved by the City Council includes conditions to setback the accessory dwelling unit and perform geotechnical assessment of the simultaneous effects of dewatering. These conditions also include the logistics plan previously mentioned. Appeal Comment 3: Management of heavy commuter and school/bicycle traffic twice daily at the construction site plus parking for construction workers Staff Response: This is related to the above comment. This specific issue will be addressed by the construction logistics plan that will be reviewed by the public works and transportation departments. Transportation’s review in particular will address operational constraints related to safe routes to school, pedestrian and bicycle safety as well as use of flag persons, parking management and other requirements. The construction logistics plan will also be reviewed by City and School Traffic Safety Committee for their expertise in creating a plan that ensures safe school routes. Appeal Comment 4: A new geotechnical study to assess the aggregate impact of dewatering three units simultaneously Staff Response: There has been increased community interest on the impacts of dewatering associated with the construction of basements in the city’s residential neighborhoods. In response, the city’s public works department has established certain reporting and analysis requirements for projects involving dewatering. The city’s Policy and Services Committee recently held a community meeting on this topic and some additional measures and requirements are being explored. As noted earlier, the public works department has reviewed the proposed project. The project includes a specific condition that requires a geotechnical report. Specifically, the condition requires the following: Condition of Approval 53 – Dewatering: o Public Works only allows groundwater drawdown well dewatering. Open pit groundwater dewatering is not allowed. Dewatering is only allowed from April through October due to inadequate capacity in our storm drain system. o The geotechnical report for this site must list the highest anticipated groundwater level. o Based on the determined groundwater depth and season the contractor may be required to dewater the site or stop all grading and excavation work. In addition Public Works may require that all groundwater be tested for contaminants prior to initial discharge and at intervals during dewatering. o Public Works reviews and approves dewatering plans as part of a Street Work Permit. The applicant can include a dewatering plan in the building permit plan set in order to obtain approval of the plan during the building permit review, but the contractor will still be required to obtain a street work permit prior to dewatering. Alternatively, the applicant must include the above dewatering requirements in a note on the site plan. Public Works has a sample dewatering plan sheet and dewatering guidelines available at the Development Center and on the City’s website at. http://www.cityofpaloalto.org/gov/depts/pwd/forms_and_permits.asp The following links are included to assist the applicant with dewatering requirements. http://www.cityofpaloalto.org/civicax/filebank/documents/30978 http://www.cityofpaloalto.org/civicax/filebank/documents/51366 http://www.cityofpaloalto.org/civicax/filebank/documents/47388 It is anticipated that this review combined with standard practices and the department’s evolving policies on this topic will ensure that dewatering impacts will be minimized. Appeal Comment 5: Remedying the inadequate onsite signage notifying residents of the proposed project Staff Response: As noted and as included in Attachment G, the project site contains onsite signage as required by the municipal code. In addition, the PAMC requires notice of the hearing to be given at least 10 days prior to the hearing by publication in a local newspaper, by posting in a public place, and by mailing to the applicant, the hearing requestor, if applicable, and all residents and owners of property within 600 feet of the project. The notice is required to include the address of the property, a brief description of the proposed project, and the date and time of the hearing. While there could be an argument for evaluating the city’s noticing procedures, including on-site posting requirements, staff believes the project complied with the applicable noticing requirements. Appeal Comment 6: Discussion regarding shared driveway for lots 2 and 3 to increase the permeable surface. Staff Response: The proposed driveways for the project utilize the existing driveway locations already on the subject property. This proposal minimizes the amount of earthwork, grading and site alterations to City streets and sidewalks. The existing driveways consist of impermeable surfaces. The project proposes that the driveway on Lot 3 will be a permeable driveway. Therefore, the project increases the permeability of the existing driveways onsite. Further, sharing a driveway presents potential conflicts between neighbors and would require a reciprocal access agreement. In addition, our Code disfavors flag lots in residential areas in part to minimize future neighbor disputes. Ultimately, the proposal conforms to the Zoning Code requirement of 60% permeable surface in the front setback (18.12.040(h)) and improves the existing condition by increasing permeability on the site. Environmental Review The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is exempt from CEQA pursuant to Section 15303(a) (New Construction or Conversion of Small Structures). The project includes a proposal to construct three new single family homes. The proposed homes are located in an urbanized area on a site used continuously for residential purposes by three existing single- family homes. The proposed exemption allows for the construction of up to three homes in an urbanized area. Therefore, the project is consistent with the subject exemption. Public Comments As of the writing of this report, no project-related, public comments were received beyond the appeal letter. Alternative Actions In addition to the recommended action, the City Council may: 1. Remove the project from consent and continue the hearing to March 13, 2017. A/C A/C 12'open'g LIVING ROOM BEDROOM 1 ENTRY BATH 1 GARAGE FAMILY ROOM NOOK KITCHEN DINING ROOM POWD. PANTRY SINK DW 48" REF. 2'4" 2'6"2'6" COVERED PORCH SECOND FLOOR ABOVE 7' o p e n ' g ℄ 48"RANGE 3'6" ℄ ℄ 30" OVEN GARAGE DOOR 8' x 8' 2'8" 4'-0" 11'-5"x14'-0" 16'-8" x12'-0"12'-4" x11'-2" 12'-6" x10'-6" 13'-9"x17'-8" STUDY 2'8" ℄ 3' ROYALITE 2'x3'6" ROYALITE 2'x3'6" SECOND UNCOVERED PARKING SPACE 9'x 18' ℄ ℄ ℄ A8 A A8 A A8B A8B 10'-21 2" 20 ' - 2 " 24X24 W 24X24 D LAUNDRY 2'6" 2'6" 2'4" 2'8"2'8" 2'4" FUR. 6'-41 2" 51'-8" 3'-8"16'-51 2"21'-01 2"10'-6" 6' - 5 1 2" 13 ' - 8 " 4'- 1 " 5' - 0 " 3'- 1 1 " 41'-2"6"10'-0" 52'-4" 46 ' - 0 " 14 ' - 9 1 2" 31 ' - 2 1 2" 47 ' - 4 1 2" 0 1 5 10 A3 1/4"=1'-0" FI R S T F L O O R P L A N NE W R E S I D E N C E O F : GR E G X I O N G 22 0 5 L O U I S R O A D PA L O A L T O , C A L I F O R N I A 04.20.15 1/4"=1'-0" FIRST FLOOR PLAN revisions by drawn checked date scale job no. sheet of sheets U.D. ROGER K.KOHLER #-C7334 REN: APRIL.2017 S T A T E OF CA L I O R N IA L IC E N S E D A RCH I T E C T F 2205 LOUIS RD LOT1 03.02.16 06.10.16 08.18.16 02.28.17 2'4" 2'6" 2'8" M.BATH WALK-IN-CLOSET BEDROOM 2 BATH 2 BEDROOM 3 HALL 2 2'6"2'6" ℄ 5 FT. HIGH WING WALL 2'8" R & S R & S R & S 2'8" 2'6" 2'4" MAKE UP 1'10" MASTER BEDROOM 15'-4" x 15'-9"13'-10" x 11'-0" 13'-6" x 6'-4" 10'-6" x 11'-10" 10'-10" x 5'-2" 10'-6" x 11'-10" 5' opening BAY WINDOW 18" ABOVE FLOOR 38'-41 2" 5'-2"2'-1"16'-1"3'-2"3'-51 2"7'-6" 11" 39 ' - 5 1 2" 18 ' - 8 " 8' - 0 " 12 ' - 9 1 2" 2'- 2 1 2" 16 ' - 2 1 2" 8'- 3 1 2" 12 ' - 9 1 2" 1' - 0 " 39 ' - 5 1 2" 38'-41 2" 13'-9"10'-101 2"13'-9" 2 x 6 2 x 6 2 x 6 A8 A A8 A A8B A8B BALCONY 5'- 6 " 0 1 5 10 A4 1/4"=1'-0" SE C O N D F L O O R P L A N 04.20.15 revisions by drawn checked date scale job no. sheet of sheets U.D. ROGER K.KOHLER #-C7334 REN: APRIL.2017 S T A T E OF CA L I O R N IA L IC E N S E D A RCH I T E C T F NE W R E S I D E N C E O F : GR E G X I O N G 22 0 5 L O U I S R O A D PA L O A L T O , C A L I F O R N I A 1/4"=1'-0" SECOND FLOOR PLAN 03.02.16 2205 LOUIS RD LOT1 06.10.16 08.18.16 02.28.17 A8A A8A MECH. ROOM A8 B UPGYM FURN. FURN. WINE ROOM L.W. STORAGE LAUNDRY W D BEDROOM 1 2'6"2'6" HALL 3 2' 4 " 2'8" 2'6" A8 B FIRST FLOOR OUTLINE FIRST FLOOR OUTLINE 2'6" 2'6" 2'6"2'6" 2'8" BATH 57'-4" 53'-4"4'-0" 3' - 1 1 " 53 ' - 9 " 5' - 6 " 25 ' - 1 0 1 2" 22 ' - 4 1 2" 57'-4" 2'-9"3'-11"21'-71 2"25'-01 2"4'-0" 53 ' - 9 " 3' - 1 1 " 26 ' - 8 " 16 ' - 3 " 10 ' - 1 0 " 9'-6"18'-6" 7'- 9 " 4' - 6 " 2'8" 2' 3'OPENING 3'6" OPENING 2'8" 3' 14 ' - 0 " 501 10 N 1/4"=1'-0" BA S E M E N T P L A N 04.20.15 revisions by drawn checked date scale job no. sheet of sheets ROGER K.KOHLER #-C7334 REN: APRIL.2017 S T A T E OF CA L I O R N IA L IC E N S E D A RCH I T E C F T U.D. BASEMENT PLAN 1/4"=1'-0" NE W R E S I D E N C E O F : GR E G X I O N G 90 0 N . C A I L F O R N I A A V E N U E PA L O A L T O , C A L I F O R N I A A2 900 N. CALIFORNIA LOT2 03.02.16 06.10.16 08.18.16 02.28.17 A8A A8A NOOK POWDER ROOM DINING ROOM A8 B FAMILY ROOM KITCHEN BEDROOM 2 BEDROOM 1 BELOW GRAD PATIO. 2'6" ENTRY 3' COVERED PORCH 11'-4" x 14'-10" UP DN GARAGE 2'6" 2'6" 2'8" 2'8" OVEN REF. COFFEE W SI N K DW 12" W A L L 12" W A L L HALL 1 SECOND FLOOR OUTLINE BATH 1 13'-1" x 16'-7" 13'-1" x 11'-10" LIVING ROOM 14'-10" x 10'-6" 4'-0"9'-6" 12 ' - 5 " 16'-9" x 14'-8" 19'-0" x 15'-7" 16'-9" x 7'-5" 53 ' - 9 " 4' - 9 " 5' - 6 " 50'-8"6'-8" 16 ' - 1 0 1 2" 53 ' - 9 " 17'-8" 38 ' - 2 " 19'-6" 5'- 6 " 13 ' - 5 1 2" 57'-4" 10 ' - 1 0 " 20'-61 2" 57'-4" 20'-61 2"12'-3"4'-0" A8 B CL TO DOOR BELOW AC AC L.W. COVERED PORCH COVERED PORCH 6'-8" 10" 12'-21 2"10"3'-2"10" 8' - 1 " 10 " 7' - 1 1 2" 10 " 4'- 6 " 1'-6" 5' - 1 0 1 2" 6'- 5 " 2'8" PANTRY 2'8"2'8" 2'8" 2'8" 2'4" 2'2' 2'2' 14 ' - 8 " 4'- 0 " 6'-10" 9' - 0 1 2" PANTRY 2'6" 3' - 6 " 3'-6" 3'-61 2" 3' - 6 " N 501 10 A3 1/4"=1'-0" FI R S T F L O O R P L A N 04.20.15 revisions by drawn checked date scale job no. sheet of sheets ROGER K.KOHLER #-C7334 REN: APRIL.2017 S T A T E OF CA L I O R N IA L IC E N S E D A RCH I T E C F T U.D. FIRST FLOOR PLAN 1/4"=1'-0" NE W R E S I D E N C E O F : GR E G X I O N G 90 0 N . C A L I F O R N I A A V E N U E PA L O A L T O , C A L I F O R N I A 900 N. CALIFORNIA LOT2 03.02.16 06.10.16 08.18.16 02.28.17 A8A A8A MASTER BEDROOM WALK-IN BEDROOM 4 BATH 3 BALCONY A8 B 2'8" 2'8" DN BATH 2 2'8" 2'8" 11'-4" x 12'-1" 11'-9" x 11'-6" BEDROOM 3 2' 8 " 2'6" 2'6" HALL 2 ℄ 1'10" 2'6" 2'6" 2'6"2'4"MASTER BATH 2'4" MAKE UP 2'6" 8'-71 2" 12'-3"6'-111 2" 12 ' - 1 " 15'-11 2" 1' - 5 " 5' - 6 1 2" 4'-41 2"4'-41 2"7'-10" 46'-6" 14 ' - 1 1 " 40 ' - 0 " 6'-2" 11 ' - 1 1 2" 11" 46'-6" 8' - 2 " 4'-21 2" 4' - 4 1 2" 7'-8"14'-6" 40 ' - 0 " 2' - 6 " 1'- 6 " 2' - 5 " 12 ' - 5 " 7'- 6 1 2" A8 B 17'-0" x 14'-5" 501 10 N A4 1/4"=1'-0" SE C O N D F L O O R P L A N 04.20.15 900 N. CALIFORNIA SECOND FLOOR PLAN 1/4"=1'-0" NE W R E S I D E N C E O F : GR E G X I O N G 90 0 N . C A L I F O R N I A A V E N U E PA L O A L T O , C A L I F O R N I A revisions by drawn checked date scale job no. sheet of sheets ROGER K.KOHLER #-C7334 REN: APRIL.2017 S T A T E OF CA L I O R N IA L IC E N S E D A RCH I T E C F T U.D. LOT2 03.02.16 06.10.16 08.18.16 02.28.17 A/C A/C 12'open'g LIVING ROOM BEDROOM 1 ENTRY BATH 1 GARAGE FAMILY ROOM NOOK KITCHEN DINING ROOM POWD. PANTRY SINK DW 48" REF. 2'4" 2'6"2'6" COVERED PORCH SECOND FLOOR ABOVE 7' o p e n ' g ℄ 48"RANGE 3'6" ℄ ℄ 30" OVEN GARAGE DOOR 8' x 8' 2'8" 4'-0" 11'-5"x13'-6" 16'-8" x12'-0"12'-4" x11'-2" 12'-6" x10'-6" 13'-9"x17'-8" STUDY 2'8" ℄ 3' ROYALITE 2'x3'6" ROYALITE 2'x3'6" SECOND UNCOVERED PARKING SPACE 9'x 18' ℄ ℄ ℄ A8 A A8 A A8B A8B 10'-31 2" 20 ' - 2 " 24X24 W 24X24 D LAUNDRY 2'6" 2'6" 2'4" 2'8"2'8" 2'4" FUR. 6'-41 2" 52'-4" 3'-111 2"24'-71 2"13'-2"10'-7" 46 ' - 0 " 6' - 5 1 2" 1' - 3 " 1' - 3 1 2" 20 ' - 9 " 9' - 9 " 4'- 1 " 5' - 0 " 3'- 1 1 " 1'-21 2"2'-31 2"37'-8"6"10'-8" 52'-4" 46 ' - 0 " 14 ' - 9 1 2" 19 ' - 8 1 2" 5' - 1 1 2" 6'- 4 1 2" 0 1 5 10 A3 1/4"=1'-0" FI R S T F L O O R P L A N NE W R E S I D E N C E O F : GR E G X I O N G 22 0 5 L O U I S R O A D PA L O A L T O , C A L I F O R N I A 04.20.15 1/4"=1'-0" FIRST FLOOR PLAN revisions by drawn checked date scale job no. sheet of sheets U.D. ROGER K.KOHLER #-C7334 REN: APRIL.2017 S T A T E OF CA L I O R N IA L IC E N S E D A RCH I T E C T F 2205 LOUIS RD LOT1 03.02.16 06.10.16 08.18.16 02.28.17 MASTER BEDROOM M.BATH BEDROOM 3 2'6" 2'4" BALCONY 2'6"2'6" 14'-6" x 17'-8" 10'-11" x 12'-0" BATH 2 HALL 2 A8 A A8 A A8B A8B 2'8" 2'8" 2'8" 2'8" 2'6" 2'6" BEDROOM 2 10'-9" x 14'-11" 4'-4"1'-6"15'-1"3'-9"8'-0"4'-21 2" 4'-5" 1'- 8 " 31'-9" 18'-6" 2'4" LOUNGE W.I.C. 7'-6" x 6'-5" W.I.C. 12'-0" x 6-6" 2'6" 55 ' - 9 1 2" 2'- 8 " 3' - 1 1 " 2' - 0 " 18 ' - 4 1 2" 10 ' - 4 " 10 ' - 4 " 9' - 3 " 5' - 6 " 2' - 0 " 6" 24 ' - 1 1 " 5'- 1 0 " 19 ' - 0 1 2" 3' - 6 " 2'- 3 " 55 ' - 9 1 2" 4' - 2 " 4' - 9 " 8"11'-01 2"11'-101 2"5'-7"2'-7" 5'-91 2"31'-9"2'-11" 5'-0"5'-41 2" BATH 3 8" 10'-5" 2'6" 2'6"BALCONY 0 1 5 10 A4 1/4"=1'-0" SE C O N D F L O O R P L A N 04.20.15 NE W R E S I D E N C E O F : GR E G X I O N G 91 2 N . C A L I F O R N I A A V E N U E PA L O A L T O , C A L I F O R N I A 1/4"=1'-0" SECOND FLOOR PLAN revisions by drawn checked date scale job no. sheet of sheets ROGER K.KOHLER #-C7334 REN: APRIL.2017 S T A T E OF CA L I O R N IA L IC E N S E D A RCH I T E C F T U.D. 912 N. CALIFORNIA LOT 3 03.02.16 06.10.16 02.28.17 LIVING ROOM FAMILY ROOM NOOK KITCHEN COVERED PORCH LIBRARY BEDROOM 1 BATH 1 9'-10" x 13'-0" 12'-6" x 12'-0"16'-2" x 16'-8"5' O P E N I N G COVERED PORCH A/C A/C SECOND FLOOR OUTLINE DINING ROOM A8 A A8 A A8B A8B 5' O P E N I N G POWDER 3'6" 4'-4" DN UP 2'0" 2'4" 2'6" 2'8" 48" REF. 30" OVEN 24" MW. 1'- 6 " 17 ' - 5 1 2" 17 ' - 5 " 6'- 5 1 2" 4'- 6 " 6'- 5 1 2" 42'-0" 13'-5"10'-0"17'-1" 1'-6" 4'-4" 4' - 5 1 2" 2'- 0 " 2' - 2 " 11'-0"1'-61 2"1'-6"1'-6"1'-61 2" 2'- 0 " 1'- 8 " 6"6" Ø8'-0" 19'-7" Ø8' - 0 " W D 2'6" 2'6" 2'4" 2'4" 2'6"2'6"2'8" 2'0" 2'4" FURN. WINE LAUNDRY PANTRY 16 ' - 4 " 14'-2" 20 ' - 6 " 12'-10" x 17'-7" 27 ' - 6 1 2" 64 ' - 5 " 6' - 2 " 38 ' - 9 1 2" 16 ' - 9 1 2" 64 ' - 5 " 24'-01 2"13'-71 2" 42'-0" 0 1 5 10 A3 1/4"=1'-0" 912 N. CALIFORNIA FI R S T F L O O R P L A N NE W R E S I D E N C E O F : GR E G X I O N G 91 2 N . C A L I F O R N I S PA L O A L T O , C A L I F O R N I A 04.20.15 1/4"=1'-0" FIRST FLOOR PLAN revisions by drawn checked date scale job no. sheet of sheets ROGER K.KOHLER #-C7334 REN: APRIL.2017 S T A T E OF CA L I O R N IA L IC E N S E D A RCH I T E C F T U.D. LOT 3 03.02.16 06.10.16 08.18.16 02.28.17 CITY OF PALO ALTO OFFICE OF THE CITY CLERK March 27, 2017 The Honorable City Council Palo Alto, California Human Relations Commission, Library Advisory Commission, Public Art Commission, and Utilities Advisory Commission Recruitment Flyer ATTACHMENTS: Attachment A: Recruitment Flyer (DOC) Department Head: Beth Minor, City Clerk Page 2 http://bit.ly/bcapplications Influence the Future of Your Community We are currently recruiting for: Human Relations Commission 2 terms ending May 31, 2020 Library Advisory Commission 3 terms ending May 31, 2020 Public Art Commission 4 terms ending May 31, 2020 Utilities Advisory Commission 2 terms ending May 31, 2020 Deadline: April 4, 2017 at 4:30pm APPLICATIONS AVAILABLE ONLINE: http://bit.ly/bcapplications Questions? Contact the City Clerk’s Office at (650) 329‐2571 or David.Carnahan@CityofPaloAlto.org