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HomeMy WebLinkAbout2020-08-24 City Council Agenda PacketCity 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. Monday, August 24, 2020 Special Meeting 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 11 days preceding the meeting. ****BY VIRTUAL TELECONFERENCE ONLY*** https://zoom.us/join Meeting ID: 362 027 238 Phone:1(669)900-6833 Pursuant to the provisions of California Governor’s Executive Order N-29-20, issued on March 17, 2020, to prevent the spread of Covid-19, this meeting will be held by virtual teleconference only, with no physical location. The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and Midpen Media Center at https://midpenmedia.org. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. To ensure participation in a particular item, we suggest calling in or connecting online 15 minutes before the item you wish to speak on. 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. 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 Agenda Changes, Additions and Deletions Oral Communications 5:00-5:30 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. Minutes Approval 5:30-5:35 PM 1.Approval of Action Minutes for the August 10, 2020 City Council Meeting REVISED 2 August 24, 2020 Consent Calendar 5:35-5:40 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 2.Approval of Contract Number C21179389 With Teichert Construction in the Amount of $1,904,325 for the Page Mill Road Safety Improvements Project (HSIPL-5100(029), Capital Improvement Program Street Maintenance Project (PE-86070) 3.SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Chapters 18.52 and 18.54 Adjusting Parking Requirements to Facilitate EVSE Installation, Compliance With Accessibility Laws, Parking Substitutions, and Parking Lot Re-striping and Maintenance. Environmental Assessment: This Project is Exempt From the California Environmental Quality Act (CEQA) in Accordance With CEQA Guidelines Section 15301, 15302, 15303, and 15061(b)(3) (FIRST READING: August 10, 2020 PASSED: 7-0) City Manager Comments Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 5:40-6:30 PM 3A. Staff and Utilities Advisory Commission Recommend the City Council Adopt a Resolution Amending the City’s Electric Supply Portfolio Carbon Neutral Plan and Electric Utility Reserves Management Practices (Continued from August 17, 2020) 6:30-8:30 PM4.Recommendation to Accept the Human Relations Commission Report on Their Review of 8 Can’t Wait Policies in Relation to Current Palo Alto Police Department (PAPD) Policies, and Direction to the City Manager Regarding Revisions to Police Policies 8:30-10:00 PM 5.Update and Potential Direction on City of Palo Alto's Race and Equity Work 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. Presentation Presentation Presentation Public Comment Public Comment Public Comment MEMO 3 August 24, 2020 Additional Information Informational Report Informational Report Regarding Race and Equity Data Transmitted to the City Council Ad Hoc Committees Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Public Letters to Council August 24, 2020 Set 1 August 31, 2020 Set 1 4 August 24, 2020 Public Comment Instructions Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. A. You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. B. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. D. When called, please limit your remarks to the time limit allotted. E. A timer will be shown on the computer to help keep track of your comments. 3. Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. https://zoom.us/join Meeting ID: 362 027 238 Phone:1(669)900-6833 CITY OF PALO ALTO OFFICE OF THE CITY CLERK August 24, 2020 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the August 10, 2020 City Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: • Attachment A: 08-10-20 DRAFT Action Minutes (DOCX) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting August 10, 2020 The City Council of the City of Palo Alto met on this date in Virtual Teleconference at 5:03 P.M. Participating Remotely: Cormack, DuBois, Filseth, Fine, Kniss, Kou, Tanaka Absent: Agenda Changes, Additions and Deletions MOTION: Mayor Fine moved, seconded by Council Member Kou to move Agenda Item Number 8, “PUBLIC HEARING / QUASI-JUDICIAL. 2353 Webster Street [18PLN00339]:…” to be heard before Agenda Item Number 7. MOTION PASSED: 7-0 Consent Calendar Council Member Kou registered a no vote on Agenda Item Number 5. Council Member Tanaka registered a no vote on Agenda Item Number 2. MOTION: Vice Mayor DuBois moved, seconded by Council Member Kniss to approve Agenda Item Numbers 1-5. 1. Resolution 9910 Entitled, “Resolution of the Council of the City of Palo Alto Establishing Fiscal Year (FY) 2021 Secured and Unsecured Property Tax Levy for the City of Palo Alto’s General Obligation Bond Indebtedness (Measure N).” 2. Approval and Authorization for the City Manager or Designee to Execute a Blanket Purchase Order With the Okonite Company for Underground Cable for the Utility's Electric Underground System in an Annual Amount of $350,000 for a Total Not-to-Exceed Amount of $1,750,000 Over the Next Five Years. 3. Approval and Authorization for the City Manager to Execute Necessary Agreements Subordinating the City's Interests in the Palo Alto Gardens Multiple Family Residential Property at 648 San Antonio Road to Facilitate Refinancing of the Affordable Housing Development. DRAFT ACTION MINUTES Page 2 of 6 City Council Meeting Draft Action Minutes: 08/10/2020 4. Policy and Services Committee Recommends the City Council Accept the Status Updates of the Parking Funds Audit. 5. QUASI-JUDICIAL. 2585 E Bayshore Road: Approval of the Planning and Development Services Director's Determination to Authorize a Waiver From the Retail Preservation Ordinance. Environmental Assessment: Exempt in Accordance With the California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3). MOTION PASSED FOR AGENDA ITEM NUMBERS 1, 3, 4: 7-0 MOTION PASSED FOR AGENDA ITEM NUMBER 2: 6-1 Tanaka no MOTION PASSED FOR AGENDA ITEM NUMBER 5: 6-1 Kou no Action Items 5A. Selection of Applicants to Interview for one Position on the Human Relations Commission and two Positions on the Public Art Commission (Continued From August 3, 2020). MOTION: Council Member Cormack moved, seconded by Council Member Kniss to schedule interviews with the following candidates: A. Human Relations Commission: i. Nilofer Chollampat ii. Sunita de Tourreil iii. Sofia Fojas iv. Curt Kinsky v. David Villaseca Morales vi. Paula Rugg vii. Lestina Trainor B. Public Art Commission: i. Marilyn Gottlieb-Robert ii. Hsinya Shen (Incumbent) iii. Harriet Stern DRAFT ACTION MINUTES Page 3 of 6 City Council Meeting Draft Action Minutes: 08/10/2020 iv. Nia Taylor (Incumbent) SUBSTITUTE MOTION: Council Member Kou moved, seconded by Vice Mayor DuBois to interview all applicants for the Human Relations Commission and Public Art Commission. SUBSTITUTE MOTION FAILED: 2-5 Cormack, Filseth, Fine, Kniss, Tanaka no MOTION PASSED: 5-1 Kou no 5B. Update and Discussion on Plan Bay Area 2050 Draft Blueprint and the Regional Housing Needs Allocation Process; and Direction to Staff to Prepare Comment Letters on These Regional Efforts (Continued From August 3, 2020). MOTION: Vice Mayor DuBois moved, seconded by Council Member Filseth to direct Staff to: A. Incorporate the new concepts from the Council alternate letter into their comment letter to ABAG’s/MTC’s Housing Methodology Committee, with some stronger wording and asking that there is an evaluation of a new scenario that focuses on job spread through the Bay Area and recognizes cities efforts to limit job growth; B. Return to Council with some scenario planning based on anticipated allocations; and C. Return to Council with strategic options for us to influence RHNA allocations and respond effectively throughout the process. SUBSTITUTE MOTION: Council Member Kniss moved, seconded by Council Member Cormack to: A. Direct Staff to continuing work on two regional planning efforts, which are Plan Bay Area 2050 and the Regional Housing Needs Allocation (RHNA) process, and return to Council with scenarios in anticipation of preparing the new Housing Element; and B. Direct Staff to submit a comment letter to ABAG/MTC’s Housing Methodology Committee reflecting City Council initial comments regarding the Regional Housing Needs Allocation (RHNA) methodology options that are under consideration. SUBSTITUTE MOTION PASSED: 4-3 DuBois, Filseth, Kou no DRAFT ACTION MINUTES Page 4 of 6 City Council Meeting Draft Action Minutes: 08/10/2020 Council took a break at 7:46 P.M. and returned at 8:00 P.M. 6. Accept an Update on the Summer Streets Program; Adopt Resolution 9911 Entitled, “Resolution of the Council of the City of Palo Alto Amending Resolution Number 9909 to Extend the Temporary Street Closures of California Avenue, University Avenue and Adjacent Downtown Blocks to December 31, 2020; Extend the University Avenue Closure to High Street; Extend the Expiration Date of Resolution Number 9909 Including the Temporary Parklet Program to September 7, 2021; and Clarify Allowed Activities.” MOTION: Council Member Kniss moved, seconded by Mayor Fine to adopt a Resolution Amending Resolution Number 9909 to: A. Extend the temporary street closures of California Avenue, University Avenue and other downtown blocks to December 31, 2020; B. Extend the temporary street closure of University Avenue to include the block between Emerson Street and High Street; C. Extend the expiration date of Resolution Number 9909, including the duration of the temporary Parklet Program to September 7, 2021; and D. Allow activities in addition to outdoor dining and retail to occur on temporarily closed streets. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to direct Staff to return with options for a COVID percentage surcharge for local businesses (New Part E); and direct Staff to return with a retail support plan focused on vacancies, expanded permitted uses, and currently existing retail (New Part F). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct Staff to consider options for utility relief.” (New Part G). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to amend Motion, Part G to state, “direct Staff to return to Council with options for utility relief for closed retail businesses.” MOTION AS AMENDED RESTATED: Council Member Kniss moved, seconded by Mayor Fine to adopt a Resolution Amending Resolution Number 9909 to: A. Extend the temporary street closures of California Avenue, University Avenue and other downtown blocks to December 31, 2020; DRAFT ACTION MINUTES Page 5 of 6 City Council Meeting Draft Action Minutes: 08/10/2020 B. Extend the temporary street closure of University Avenue to include the block between Emerson Street and High Street; C. Extend the expiration date of Resolution Number 9909, including the duration of the temporary Parklet Program to September 7, 2021; D. Allow activities in addition to outdoor dining and retail to occur on temporarily closed streets; E. Direct Staff to return with options for a COVID percentage surcharge for local businesses; F. Direct Staff to return with a retail support plan focused on vacancies, expanded permitted uses, and currently existing retail; and G. Direct Staff to return to Council with options for utility relief for closed retail businesses. MOTION AS AMENDED PASSED: 7-0 Council took a break at 10:24 P.M. and returned at 10:31 P.M. MOTION: Vice Mayor DuBois moved, seconded by Council Member Kniss to continue Agenda Item Number 8, “PUBLIC HEARING / QUASI-JUDICIAL. 2353 Webster Street [18PLN00339]: Appeal of Director’s Approval...” to August 17, 2020. MOTION PASSED: 5-2 Cormack, Fine no 7. PUBLIC HEARING: Adoption of an Ordinance Amending Palo Alto Municipal Code Chapters 18.52 and 18.54 Adjusting Parking Requirements to Facilitate EVSE Installation, Compliance With Accessibility Laws, Parking Substitutions, and Parking Lot Re-striping and Maintenance. Environmental Assessment: This Project is Exempt From the California Environmental Quality Act (CEQA) in Accordance With CEQA Guidelines Section 15301, 15302, 15303, and 15061(b)(3). Public Hearing opened and closed without public comment at 10:46 P.M. MOTION: Council Member Cormack moved, seconded by Council Member Filseth to adopt an Ordinance amending Title 18 (Zoning Code) Chapters 18.52 (Parking and Loading Requirements) and 18.54 (Parking Facility Design Standards) of the Palo Alto Municipal Code (PAMC). MOTION PASSED: 7-0 DRAFT ACTION MINUTES Page 6 of 6 City Council Meeting Draft Action Minutes: 08/10/2020 8. PUBLIC HEARING / QUASI-JUDICIAL. 2353 Webster Street [18PLN00339]: Appeal of Director’s Approval of an Individual Review Application to Demolish an Existing One-story 1,593 Square Foot (SF) Home and Construct a Two-story Home (Approximately 2,935 SF) With a Basement and an Attached Garage. Zoning District: Single-family Residential (R-1). Council Member Questions, Comments and Announcements None. Adjournment: The meeting was adjourned at 11:02 P.M. City of Palo Alto (ID # 11429) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/24/2020 City of Palo Alto Page 1 Summary Title: Contract for Page Mill Road Safety Improvements Project Title: Approval of Contract Number C21179389 With Teichert Construction in the Amount of $1,904,325 for the Page Mill Road Safety Improvements Project (HSIPL-5100(029), Capital Improvement Program Street Maintenance Project (PE-86070) From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1.Approve and authorize the City Manager or his designee to execute the attached construction contract with Teichert Construction (Attachment A) in an amount not to exceed $1,904,325 for the Page Mill Road Safety Improvements Project (HSIPL 5100(029), Street Maintenance Capital Improvement Program Project (PE-86070); and 2.Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Teichert Construction for related, additional but unforeseen work that may develop during the project, the total value of which shall not exceed $190,433. Background Public Works Engineering Services Division (PWE) manages construction contracts for concrete repair, preventive maintenance, resurfacing, and reconstruction of various City streets annually. In more recent years, additional Capital Improvement Program (CIP) projects are being built through the annual resurfacing contracts due to the complexity of construction and benefit of being included in a larger project. All City of Palo Alto streets are surveyed biennially by PWE staff and rated by a computerized pavement maintenance management system, and by the Metropolitan Transportation Commission’s pavement analysis program. CITY OF PALO ALTO City of Palo Alto Page 2 Discussion Project Description Staff recommends approval of this street resurfacing contract with Teichert Construction andimplementation this fiscal year as part of an enhanced program to maintain and improve the condition of Palo Alto’s streets. The $1,904,325 expenditure for this contract includes repaving 6.7 lane miles of Page Mill Road south of Altamont Road with pavement condition index (PCI) scores averaging 57. This will help maintain and improve the City’s PCI beyond its average of 83, and address many streets whose PCI falls below the City’s minimum goal of 60. The scope of work also includes installing of approximately 600 lineal feet of guardrail system, applying 52,200 square feet of high friction surface treatment, and installing new signage and striping. These improvements are intended to improve safety along the corridor of this road. Grant Award On December 2016, the City was awarded $946,170 through the Highway Safety Improvement Program (HSIP) Cycle 8 to improve the curve super elevations (cross-slopes) and install new guardrails along steep turns along this corridor. The project will also resurface the road with a high friction surface treatment. In January 2018, PWE issued a design task order to BKF Engineers to investigate and evaluate the safety feature improvements for this corridor. BKF Engineers provided several improvements options and worked with PWE and the Office of Transportation to finalize the design. The final design was approved through Caltrans’ Plans, Specifications and Estimate process. On April 16, 2020, Caltrans issued the E76 authorization to proceed with construction. Page Mill Road resurfacing limits are shown in Attachment B. The final project elements composing the safety improvements, such as new guardrails and high friction pavement, cost less than the original estimate in the grant proposal. The federal grant will only pay for specified safety improvements, and no other project elements are eligible. Therefore, the adjusted reimbursement amount from Caltrans is $646,170, approximately $300,000 less than the original grant award. Bid Process On June 22, 2020, the City issued an invitation for bids (IFB) for the Page Mill Road Safety Improvements Project, posted at City Hall and sent to builder’s exchange and contractors through the City’s eProcurement system. The bidding period was 26 calendar days. Bids were received from five contractors on Friday, July 17, 2020 as listed on the attached Bid Summary (Attachment C). City of Palo Alto Page 3 Bid Name/Number Page Mill Road Safety Improvements Project IFB #179389 Proposed Length of Project 120 calendar days Number of Bid Packages Downloaded by Builder’s Exchanges 6 Number of Bid Packages Downloaded by Contractors 13 Total Days to Respond to Bid 26 Pre-Bid Meeting? No Number of Bids Received: 5 Bid Price Range $1,904,325 to $2,425,140 Staff has reviewed the bids submitted and recommends the bid of $1,904,325 submitted by Teichert Construction be accepted, and Teichert Construction be declared the lowest responsible bidder. The low bid is 10 percent lower than the engineer’s estimate of $2,120,758. Staff reviewed other similar projects performed by the lowest responsible bidder, Teichert Construction, and did not find any significant concerns with their previous work. Staff also checked with the Contractor's State License Board and confirmed the contractor has an active license on file. This contract is on the City’s construction contract template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non-appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work. Resource Impact Funding for the Page Mill Road Safety Improvements Project HSIPL 5100(029) is available in the Fiscal Year 2021 Street Maintenance Capital Improvement Program Project (PE-86070). This project is funded in part by the Highway Safety Improvement Program (HSIP) Cycle 8 in the amount of $646,170. This revenue was estimated to be received and programmed in FY 2020; however, since the project is now being awarded in FY 2021, the revenue reappropriated from FY 2020 to FY 2021 will be adjusted as part of the final FY 2020 year-end clean-up. Since the reimbursement grant amount is anticipated to be $300,000 less than the original grant amount, staff will also adjust the expenditure funding re-appropriation accordingly by $300,000 less for the Street Maintenance Capital Improvement Program project (PE-86070), with no impact to the Infrastructure Reserve. Policy Implications This project is in conformance with the City of Palo Alto’s Comprehensive Plan and does not represent any changes to existing City policies. Summary of Bid Process City of Palo Alto Page 4 Stakeholder Engagement All street work has been coordinated with the City’s Utilities Department and Office of Transportation to minimize the cutting of newly resurfaced streets. Extensive public outreach will be conducted before and during the construction phase to keep the community informed throughout the process, including flyers sent to adjacent residences and businesses and notices posted online on Nextdoor and the City’s website. Environmental Review Street resurfacing projects are categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301c of the CEQA Guidelines as repair, maintenance and/or minor alteration of the existing facilities and no further environmental review is necessary. Attachments: •A - Contract C21179389 •B - Project Map •C - Bid Summary Invitation for Bid (IFB) Package 1 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C21179389 City of Palo Alto PAGE MILL ROAD SAFETY IMPROVEMENTS PROJECT CI TY OF PALO ALTO Attachment A Invitation for Bid (IFB) Package 2 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….…………..6 1.1 Recitals…………………………………………………………………………………………………………………….6 1.2 Definitions……………………………………………………………………………………………………………….6 SECTION 2 THE PROJECT………………………………………………………………………………………………………...6 SECTION 3 THE CONTRACT DOCUMENTS………………………………………………………………………………..7 3.1 List of Documents…………………………………………………………………………………………….........7 3.2 Order of Precedence……………………………………………………………………………………………......7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………..7 4.1 Contractor's Duties…………………………………………………………………………………………………..8 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..8 5.1 Contractor's Co-operation………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………….......8 6.1 Time Is of Essence…………………………………………………………………………………………………….8 6.2 Commencement of Work…………………………………………………………………………………………8 6.3 Contract Time…………………………………………………………………………………………………………..8 6.4 Liquidated Damages…………………………………………………………………………………………………8 6.4.1 Other Remedies……………………………………………………………………………………………………..9 6.5 Adjustments to Contract Time………………………………………………………………………………….9 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………………….9 7.1 Contract Sum……………………………………………………………………………………………………………9 7.2 Full Compensation……………………………………………………………………………………………………9 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..9 8.1 Standard of Care…………………………………………………………………………………..…………………9 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..…10 9.1 Hold Harmless……………………………………………………………………………………………………….10 9.2 Survival…………………………………………………………………………………………………………………10 SECTION 10 NON-DISCRIMINATION……..………………………………………………………………………………10 10.1 Municipal Code Requirement…………….………………………………..……………………………….10 SECTION 11 INSURANCE AND BONDS.…………………………………………………………………………………10 Invitation for Bid (IFB) Package 3 Rev. March 17, 2017 CONSTRUCTION CONTRACT 11.1 Evidence of Coverage…………………………………………………………………………………………..10 SECTION 12 PROHIBITION AGAINST TRANSFERS…………………………………………………………….…11 12.1 Assignment………………………………………………………………………………………………………….11 12.2 Assignment by Law.………………………………………………………………………………………………11 SECTION 13 NOTICES …………………………………………………………………………………………………………….11 13.1 Method of Notice …………………………………………………………………………………………………11 13.2 Notice Recipents ………………………………………………………………………………………………….11 13.3 Change of Address……………………………………………………………………………………………….12 SECTION 14 DEFAULT…………………………………………………………………………………………………………...12 14.1 Notice of Default………………………………………………………………………………………………….12 14.2 Opportunity to Cure Default…………………………………………………………………………………12 SECTION 15 CITY'S RIGHTS AND REMEDIES…………………………………………………………………………..13 15.1 Remedies Upon Default……………………………………………………………………………………….13 15.1.1 Delete Certain Services…………………………………………………………………………………….13 15.1.2 Perform and Withhold……………………………………………………………………………………..13 15.1.3 Suspend The Construction Contract…………………………………………………………………13 15.1.4 Terminate the Construction Contract for Default………………………………………………13 15.1.5 Invoke the Performance Bond………………………………………………………………………….13 15.1.6 Additional Provisions……………………………………………………………………………………….13 15.2 Delays by Sureties……………………………………………………………………………………………….13 15.3 Damages to City…………………………………………………………………………………………………..14 15.3.1 For Contractor's Default…………………………………………………………………………………..14 15.3.2 Compensation for Losses…………………………………………………………………………………14 15.4 Suspension by City……………………………………………………………………………………………….14 15.4.1 Suspension for Convenience……………………………………………………………………………..14 15.4.2 Suspension for Cause………………………………………………………………………………………..14 15.5 Termination Without Cause…………………………………………………………………………………14 15.5.1 Compensation………………………………………………………………………………………………….15 15.5.2 Subcontractors………………………………………………………………………………………………..15 15.6 Contractor’s Duties Upon Termination………………………………………………………………...15 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES……………………………………………………………16 16.1 Contractor’s Remedies……………………………………..………………………………..………………….16 Invitation for Bid (IFB) Package 4 Rev. March 17, 2017 CONSTRUCTION CONTRACT 16.1.1 For Work Stoppage……………………………………………………………………………………………16 16.1.2 For City's Non-Payment…………………………………………………………………………………….16 16.2 Damages to Contractor………………………………………………………………………………………..16 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….…16 17.1 Financial Management and City Access………………………………………………………………..16 17.2 Compliance with City Requests…………………………………………………………………………….17 SECTION 18 INDEPENDENT PARTIES……………………………………………………………………………………..17 18.1 Status of Parties……………………………………………………………………………………………………17 SECTION 19 NUISANCE……………………………………………………………………………………………………….…17 19.1 Nuisance Prohibited……………………………………………………………………………………………..17 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………….17 20.1 Payment of Fees…………………………………………………………………………………………………..17 SECTION 21 WAIVER…………………………………………………………………………………………………………….17 21.1 Waiver………………………………………………………………………………………………………………….17 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS……………………………….18 22.1 Governing Law…………………………………………………………………………………………………….18 22.2 Compliance with Laws…………………………………………………………………………………………18 22.2.1 Palo Alto Minimum Wage Ordinance…………….………………………………………………….18 SECTION 23 COMPLETE AGREEMENT……………………………………………………………………………………18 23.1 Integration………………………………………………………………………………………………………….18 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………..18 24.1 Survival of Provisions……………………………………………………………………………………………18 SECTION 25 PREVAILING WAGES………………………………………………………………………………………….18 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………….19 26.1 Appropriation………………………………………………………………………………………………………19 SECTION 27 AUTHORITY……………………………………………………………………………………………………….19 27.1 Representation of Parties…………………………………………………………………………………….19 SECTION 28 COUNTERPARTS………………………………………………………………………………………………..19 28.1 Multiple Counterparts………………………………………………………………………………………….19 SECTION 29 SEVERABILITY……………………………………………………………………………………………………19 29.1 Severability………………………………………………………………………………………………………….19 SECTION 30 STATUTORY AND REGULATORY REFERENCES …………………………………………………..19 Invitation for Bid (IFB) Package 5 Rev. March 17, 2017 CONSTRUCTION CONTRACT 30.1 Amendments of Laws…………………………………………………………………………………………..19 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….….19 31.1 Workers Compensation…………………………………………………………………………………….19 SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS………………………………..…20 32.1 General Notice to Contractor…………………………………………………………………………….20 32.2 Labor Code section 1771.1(a)…………………………………………………………………………….20 32.3 DIR Registration Required…………………………………………………………………………………20 32.4 Posting of Job Site Notices…………………………………………………………………………………20 32.5 Payroll Records…………………………………………………………………………………………………20 Invitation for Bid (IFB) Package 6 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on August 17, 2020 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and Teichert Construction ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a Corporation duly organized and in good standing in the State of California, Contractor’s License Number 201696 and Department of Industrial Relations Registration Number 1000003381. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On June 22, 2020, City issued an Invitation for Bids (IFB) to contractors for the Palo Alto Various Streets Resurfacing (“Project”). In response to the IFB, Contractor submitted a Bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the Page Mill Road Safety Improvements Project, located at various locations, Palo Alto, CA. ("Project"). Invitation for Bid (IFB) Package 7 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Orders 3) Contract 4) Bidding Addenda 5) Special Provisions 6) General Conditions 7) Project Plans and Drawings 8) Technical Specifications 9) Instructions to Bidders 10) Invitation for Bids 11) Contractor's Bid/Non-Collusion Declaration 12) Reports listed in the Contract Documents 13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid) 14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid) 15) City of Palo Alto Traffic Control Requirements 16) City of Palo Alto Truck Route Map and Regulations 17) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 18) Performance and Payment Bonds 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Notwithstanding the foregoing, in the event of a conflict between and among Invitation for Bid (IFB) Package 8 Rev. March 17, 2017 CONSTRUCTION CONTRACT the provisions of the Contract Documents, in which a provision is, or provisions are, required by Federal, State or Local law or regulation, the City shall apply the rules of preemption to determine which provision or provisions control. SECTION 4 CONTRACTOR’S DUTY. 4.1 Contractor’s Duties Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. SECTION 5 PROJECT TEAM. 5.1 Contractor’s Co-operation. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than . within One hundred twenty calendar days (120) after the commencement date specified in City’s Notice to Proceed. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion. 6.4 Liquidated Damages. Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the amount of one thousand dollars ($1,000) per day, or as otherwise specified in the Special Provisions. Liquidated damages may also be separately assessed for failure to meet milestones specified Invitation for Bid (IFB) Package 9 Rev. March 17, 2017 CONSTRUCTION CONTRACT elsewhere in the Contract Documents, regardless of impact on the time for achieving Substantial Completion. The assessment of liquidated damages is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work. The City is entitled to setoff the amount of liquidated damages assessed against any payments otherwise due to Contractor, including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of One Million Nine Hundred Four Thousand Three Hundred Twenty Five Dollars ($1,904,325.00). [This amount includes the Base Bid and Additive Alternates .] 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents. SECTION 8 STANDARD OF CARE. 8.1 Standard of Care. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third-party claim relating to the Contract. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NON-DISCRIMINATION. 10.1 Municipal Code Requirement. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. 11.1 Evidence of coverage. Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Invitation for Bid (IFB) Package 11 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. 12.1 Assignment. City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City. 12.2 Assignment by Law. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice to Recipients. All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Young Tran AND [Include Construction Manager, If Applicable.] Invitation for Bid (IFB) Package 12 Rev. March 17, 2017 CONSTRUCTION CONTRACT City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be sent by registered mail or certified mail with return receipt requested. All notices, demands, requests or approvals from City to Contractor shall be addressed to: ………….. 13.3 Change of Address. In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DEFAULT. 14.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety. 14.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. Invitation for Bid (IFB) Package 13 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 15 CITY'S RIGHTS AND REMEDIES. 15.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following: 15.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 15.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 15.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 15.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 15.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 15.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 15.2 Delays by Sureties. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally liable for any additional cost incurred by City to complete the Work following termination. In addition, City shall have the Invitation for Bid (IFB) Package 14 Rev. March 17, 2017 CONSTRUCTION CONTRACT right to use any materials, supplies, and equipment belonging to Contractor and located at the Worksite for the purposes of completing the remaining Work. 15.3 Damages to City. 15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 15.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City. 15.4 Suspension by City 15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents. 15.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor. Invitation for Bid (IFB) Package 15 Rev. March 17, 2017 CONSTRUCTION CONTRACT 15.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. .4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated. 15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 15.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, submittals of as-built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date. Invitation for Bid (IFB) Package 16 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. 16.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 16.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 16.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 16.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 17 ACCOUNTING RECORDS. 17.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. Invitation for Bid (IFB) Package 17 Rev. March 17, 2017 CONSTRUCTION CONTRACT 17.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 18 INDEPENDENT PARTIES. 18.1 Status of parties. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 19 NUISANCE. 19.1 Nuisance Prohibited. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 20 PERMITS AND LICENSES. 20.1 Payment of Fees. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 21 WAIVER. 21.1 Waiver. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. Invitation for Bid (IFB) Package 18 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS. 22.1 Governing Law. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place. 22.2 Compliance with Laws. Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract. 22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 23 COMPLETE AGREEMENT. 23.1 Integration. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 24 SURVIVAL OF CONTRACT. 24.1 Survival of Provisions. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 25 PREVAILING WAGES. This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the public works contract does not include a project of $25,000 or less, when the project is for construction work, or the contract does not include a project of $15,000 or less, when the project is for alteration, demolition, repair, or maintenance (collectively, ‘improvement’) work. Or Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality Invitation for Bid (IFB) Package 19 Rev. March 17, 2017 CONSTRUCTION CONTRACT for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. SECTION 26 NON-APPROPRIATION. 26.1 Appropriations. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 27 AUTHORITY. 27.1 Representation of Parties. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 28 COUNTERPARTS 28.1 Multiple Counterparts. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 29 SEVERABILITY. 29.1 Severability. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. SECTION 30 STATUTORY AND REGULATORY REFERENCES. 30.1 Amendments to Laws. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise required by law. SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. 31.1 Workers Compensation. Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: Invitation for Bid (IFB) Package 20 Rev. March 17, 2017 CONSTRUCTION CONTRACT “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.” SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS. 32.1 General Notice to Contractor. City requires Contractor and its listed subcontractors to comply with the requirements of SB 854. 32.2 Labor Code section 1771.1(a) City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” 32.3 DIR Registration Required. City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. 32.4 Posting of Job Site Notices. City gives notice to Contractor and its listed subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to SB 854-compliance monitoring and enforcement by DIR. 32.5 Payroll Records. City requires Contractor and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: (i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its listed subcontractors, in connection with the Project. (ii) The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its listed subcontractors, respectively. Invitation for Bid (IFB) Package 21 Rev. March 17, 2017 CONSTRUCTION CONTRACT (iii) At the request of City, acting by its project manager, Contractor and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of City’s request. City requests Contractor and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. (iv) If the certified payroll records are not produced to the project manager within the 10-day period, then Contractor and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v) Inform the project manager of the location of contractor’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager City Manager APPROVED AS TO FORM: ____________________________ City Attorney or designee APPROVED: ____________________________ Public Works Director CONTRACTOR Officer 1 By:___________________________ Name:________________________ Title:__________________________ Date: _________________________ Officer 2 By:____________________________ Name:_________________________ Title:___________________________ Date:____________________________ 1/l ,-! en ;,o; z l'1 PROJECT BEGIN LOS TRANCOS OPEN SPACE PRESERVE PARKING LOT ;o 0 tts � � � � PROJECT END CITY OF PALO ALTO HSIP 2016 PROJECT MAP IPAGE MILL ROAD CITY OF PALO ALTO, CALIFORNIA SHEET No. I OF' !APPROVED 2 SHEETS 20 ----t LAND SURVEYOR 7 ENGINEER P.L.S. #R.< #;.E y I 8 I DRAWN JH CHECKED DATE (lf™' CITY OF PALO ALTO Project Mop PUBLIC WORKS ENGINEERING HOLLY BOYD P.LS. EXP. SCALE: NTS "7'-...:.:=..:._ PALO ALTO FIRE STATION 8 -- Attachment B ATTACHMENT C FY2020 STREETS RESURFACING PROJECT BID SUMMARY UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST 1 AC Overlay w/15% RAP: 6,587 TON $ 125.00 823,312.50$ $ 148.00 974,802.00$ $ 160.00 1,053,840.00$ $ 160.00 1,053,840.00$ $ 120.00 790,380.00$ $ 134.00 882,591.00$ 2 AC Milling: 495,268 SF $ 0.60 297,160.80$ $ 0.65 321,924.20$ $ 0.25 123,817.00$ $ 1.30 643,848.40$ $ 0.35 173,343.80$ $ 0.60 297,160.80$ 3 Crack Sealing: 30,000 LF $ 0.60 18,000.00$ $ 2.70 81,000.00$ $ 2.50 75,000.00$ $ 1.00 30,000.00$ $ 2.00 60,000.00$ $ 2.30 69,000.00$ 4 Electrical Utility Box Adjustments: 6 EA $ 700.00 4,200.00$ $ 1,000.00 6,000.00$ $ 2,000.00 12,000.00$ $ 2,000.00 12,000.00$ $ 3,500.00 21,000.00$ $ 1,400.00 8,400.00$ 5 Storm Drain Mainhole Cover Adjustment: 6 EA $ 1,000.00 6,000.00$ $ 1,200.00 7,200.00$ $ 2,000.00 12,000.00$ $ 2,000.00 12,000.00$ $ 1,750.00 10,500.00$ $ 1,400.00 8,400.00$ 6 Inert recycling:6,587 TON $ 15.00 98,797.50$ $ 4.00 26,346.00$ $ 22.00 144,903.00$ $ 1.00 6,586.50$ $ 30.00 197,595.00$ $ 1.00 6,586.50$ 7 Caltrans Detail 22:18,515 LF $ 2.50 46,287.50$ $ 1.60 29,624.00$ $ 1.40 25,921.00$ $ 1.70 31,475.50$ $ 1.60 29,624.00$ $ 1.60 29,624.00$ 8 6" White Thermoplastic Edge Stripe: 34,390 LF $ 2.00 68,780.00$ $ 0.80 27,512.00$ $ 0.70 24,073.00$ $ 1.00 34,390.00$ $ 0.80 27,512.00$ $ 0.80 27,512.00$ 9 Traffic Control:1 LS $150,000.00 150,000.00$ $200,000.00 200,000.00$ $320,645.00 320,645.00$ $176,000.00 176,000.00$ $ 80,000.00 80,000.00$ $152,400.70 152,400.70$ 10 Notifications:1 LS $ 10,000.00 10,000.00$ $ 15,000.00 15,000.00$ $ 7,000.00 7,000.00$ $ 25,000.00 25,000.00$ $ 30,000.00 30,000.00$ $ 3,500.00 3,500.00$ 11 HSIP Improvements per Appendix C:1 LS $598,220.00 598,220.00$ $416,000.00 416,000.00$ $400,000.00 400,000.00$ $400,000.00 400,000.00$ $655,010.20 655,010.20$ $419,150.00 419,150.00$ 2,120,758.30$ 2,105,408.20$ 2,199,199.00$ 2,425,140.40$ 2,074,965.00$ 1,904,325.00$ BID ITEM DESCRIPTION APPROX. QTY UNIT ENGINEER'S ESTIMATE DeSilva Gates Interstate Grading & Paving Goodfellows Bros. Teichert Construction Base Bid Total (Items 001 through 36) O'Grady Paving, Inc. under over over under BASE BID OVER/UNDER -1%4% under 14%-2%-10% Attachment C CITY OF PALO ALTO OFFICE OF THE CITY CLERK August 24, 2020 The Honorable City Council Palo Alto, California SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Chapters 18.52 and 18.54 Adjusting Parking Requirements to Facilitate EVSE Installation, Compliance With Accessibility Laws, Parking Substitutions, and Parking Lot Re-striping and Maintenance. Environmental Assessment: This Project is Exempt From the California Environmental Quality Act (CEQA) in Accordance With CEQA Guidelines Section 15301, 15302, 15303, and 15061(b)(3) (FIRST READING: August 10, 2020 PASSED: 7-0) This ordinance was first heard by the City Council on August 10, 2020, where it passed 7-0 with no changes. It is now before the City Council for the second reading. ATTACHMENTS: • Attachment A: Ordinance (PDF) Department Head: Beth Minor, City Clerk Page 2 *NOT YET ADOPTED* DRAFT  1  20200609_ay_16_0160026  Ordinance No. ____  Ordinance of the Council of the City of Palo Alto Amending Chapter 18.52  (Parking and Loading Requirements) and Chapter 18.54 (Parking Facility Design)  of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Facilitate EVSE  Installation, Compliance with Accessibility Requirements, Parking Substitutions,  and Associated Parking Adjustments  The Council of the City of Palo Alto ORDAINS as follows:   SECTION 1.  Findings and declarations.  The City Council finds and declares as follows:  A. On October 12, 2019, the Governor approved AB 1100, which requires local  authorities to count as a standard automobile parking space any parking space  served by electric vehicle supply equipment (EVSE) or designated for future EVSE.   AB 1100 further requires cities to count as two standard automobile parking spaces  any accessible parking space with an access aisle served by EVSE or designated for  future EVSE.  B. The City of Palo Alto promotes the use of Electric Vehicles.  In 2017, one in three  new vehicles purchased in Palo Alto was electric ‐ the highest adoption rate in the  country.  C. It can be especially difficult for existing parking facilities to install new EVSE, as both  the EVSE and require electric utility equipment require additional spaces compared  to standard automobile parking.  D. Existing parking facilities also face difficulty installing accessible parking spaces in  compliance with state and federal law.  Successful implementation often requires  the loss of one or more existing parking spaces.  E. Numerous other City priorities, including expansion of bicycle infrastructure,  facilitation of waste management, and improvement of substandard parking stalls  may be hampered by strict application of existing parking standards.  F. The City Council desires to update the parking requirements in Title 18 of the Palo  Alto Municipal Code to facilitate installation of EVSE and accessible parking spaces,  improve flexibility for existing parking facilities, and make associated code changes.  //  //  *NOT YET ADOPTED*  DRAFT  2  20200609_ay_16_0160026  SECTION 2.  Section 18.52.020 (Definitions) of Chapter 18.52 (Parking and Loading  Requirements) of Title 18 (Zoning) is hereby amended as follows:     18.52.020   Definitions    For purposes of this chapter:    (a)   "Accessible"    "Accessible" means the ability to be used by persons with disabilities as defined in the  Americans with Disabilities Act of 1990.    (b)   "Construction of Floor Area"    "Construction of floor area" means the construction or building of "floor area" except  for new floor area added to an existing, restored, or partially reconstructed building to  meet the minimum requirements of federal, state or local laws relating to fire  prevention and safety, handicapped access, and building and seismic safety;    (c)   "Design Approval"    "Design approval" means approval pursuant to Sections 18.76.020 and 18.77.070 by the  director of planning and community environment (the "director") upon  recommendation of the architectural review board.    (d)   “Electric Vehicle Supply Equipment (EVSE)”    “Electric Vehicle Supply Equipment (EVSE)” is defined to be consistent with the  California Electrical Code and applies to any level or capacity of supply equipment  installed specifically for transferring energy between the premises wiring and electric  vehicles.    (e)   “Motorcycle Parking”     “Motorcycle Parking” means a parking space designed for any motor vehicle designed to  travel on not more than three wheels in contact with the ground. This includes mopeds  and motor scooters.    (d)(f)   "Parking Assessment Areas"    "Parking assessment areas" means either:    (1)   The "downtown parking assessment area," which is that certain area of the  city delineated on the map of the University Avenue parking assessment district  *NOT YET ADOPTED*  DRAFT  3  20200609_ay_16_0160026  entitled Proposed Boundaries of University Avenue Off‐Street Parking Project No.  75‐63 Assessment District, City of Palo Alto, County of Santa Clara, State of  California, dated October 30, 1978, and on file with the city clerk; or    (2)   The "California Avenue area parking assessment district," which is that  certain area of the city delineated on the map of the California Avenue area  parking assessment district entitled Proposed Boundaries, California Avenue Area  Parking Maintenance District, dated December 16, 1976, and on file with the city  clerk;    (e)(g)   "Shared (Joint Use) Parking"    "Shared (joint use) parking" means parking intended to accommodate multiple uses,  whether residential or non‐residential or both, and to minimize the number of parking  spaces needed by allowing some spaces to be used for different uses at different times  of the day or night.    (h)   Definitions for other parking‐related terms can be found in Section 18.04.030(a)  (Definitions), including "Parking as a principal use," "Parking facility," and "Parking  space."    SECTION 3.  Section 18.52.030 (Basic Parking Regulations) of Chapter 18.52 (Parking and  Loading Requirements) of Title 18 (Zoning) is hereby amended to amend subsection (c) as  follows:     18.52.030   Basic Parking Regulations    [. . .]    (c)   Non‐Conformance Due to Parking Requirements    No use of land lawfully existing on July 20, 1978 is nonconforming solely because of the  lack of off‐street parking, loading, or bicycle facilities prescribed in this chapter;  provided, that facilities being used for off‐street parking on July 20, 1978, shall not be  reduced in capacity to less than the number of spaces prescribed in this chapter or  altered in design or function to less than the minimum standards prescribed in this  chapter except for the allowed reductions in parking and the modifications to existing  facilities allowed pursuant to Sections 18.52.045 and 18.52.050.    [. . .]    //    //  *NOT YET ADOPTED*  DRAFT  4  20200609_ay_16_0160026  SECTION 4.  Subsection (b) of Section 18.52.040 (Off‐Street Parking, Loading and Bicycle Facility  Requirements) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) is  hereby amended as follows:     18.52.040   Off‐Street Parking, Loading and Bicycle Facility Requirements    [. . .]    (b)   Calculation of Required Parking    Off‐street parking, loading and bicycle facility requirements established by subsection  (a) shall be applied as follows:    (1)   Where the application of the schedule results in a fractional requirement, a  fraction of 0.5 or greater shall be resolved to the next higher whole number.    (2)   For purposes of this chapter, gross floor area shall not include enclosed or  covered areas used for off‐street parking or loading, or bicycle facilities.    (3)   Where uses or activities subject to differing requirements are located in the  same structure or on the same site, or are intended to be served by a common  facility, the total requirement shall be the sum of the requirements for each use  or activity computed separately, except as adjusted by the director under the  provisions of Table 1 or Section 18.52.050. The director, when issuing a permit(s)  for multiple uses on a site, may restrict the hours of operation or place other  conditions on the multiple uses so that parking needs do not overlap and may  then modify the total parking requirement to be based on the most intense  combination of uses at any one time.    (4)   Where requirements are established on the basis of seats or person  capacity, the building regulations provisions applicable at the time of  determination shall be used to define capacity.    (5)   Where residential use is conducted together with or accessory to other  permitted uses, applicable residential requirements shall apply in addition to  other nonresidential requirements, except as provided by Sections 18.52.050  and 18.52.080.    (6)   In addition to t The parking requirements outlined in Tables 1 and 2 are  inclusive of parking spaces that fulfill accessibility requirements set forth, parking  for handicapped persons shall be provided pursuant to the requirements of  Section 18.54.030 (Accessible Parking) and consistent with criteria outlined in  Title 16 (Building Code) of the Municipal Code in compliance with the Americans  with Disabilities Act (ADA).   *NOT YET ADOPTED*  DRAFT  5  20200609_ay_16_0160026  (7)   A parking space served by EVSE or a parking space designated for future  installation of EVSE (EV Ready) shall count as one standard automobile parking  space for purposes of the parking requirements outlined in Tables 1 and 2.    (8)   A van‐accessible parking space or accessible parking space with an adjacent  accessible path of travel shall count as at least two standard automobile parking  spaces for purposes of the parking requirements outlined in Tables 1 and 2,  inclusive of van‐accessible parking spaces served by EVSE or designated as EV  Ready.    (9)   Motorcycle parking shall not count towards the vehicle parking  requirements outlined in Tables 1 and 2.     [. . .]    SECTION 5.  Section 18.52.045 (Minor Adjustments to Existing Parking Facilities) of Chapter  18.52 (Parking and Loading Requirements) of Title 18 (Zoning) is hereby added as follows:    18.52.045 Minor Adjustments to Existing Parking Facilities    The following minor adjustments may be made to existing parking facilities that are  intended to remain in substantially the same form after restriping.    (a)   Accessibility and EVSE‐related equipment.  For sites with existing development, the  number on‐site parking spaces may be reduced to the minimum extent necessary to: (1)  achieve state or federally mandated accessibility requirements or (2) permit installation  of electrical utility equipment required for EVSE. A maximum of 10% of the existing  automobile parking stalls, or one stall, whichever is greater, may be removed pursuant  to this section. The loss of a parking space is not permitted to accommodate EVSE itself.   To the extent reasonably feasible, electrical equipment required for EVSE shall be placed  in a location that minimizes visibility from the public right of way.    (b)   Substitution of bicycle parking.  For sites with existing development, where  additional bicycle parking facilities cannot reasonably be located outside of the parking  facility area, existing automobile parking stalls may be substituted with long‐ or short‐ term bicycle parking facilities. The maximum number of substitutions shall be two  existing automobile parking spaces, or 10% of the existing automobile parking stalls,  whichever is greater. A minimum of four long‐term or eight short‐term bicycle parking  spaces is required per automobile parking space. The bicycle parking spaces are to be  located in the same physical location as the automobile spaces they are replacing, which  shall be near primary entries of the building on‐site or in locations that meet best  practices for bicycle parking facilities.    //  *NOT YET ADOPTED*  DRAFT  6  20200609_ay_16_0160026  SECTION 6.  Table 4 (Allowable Parking Adjustments) of Section 18.52.050 (Adjustments by the  Director) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) is hereby  amended as follows:     18.52.050   Adjustments by the Director     [. . .]    Table 4  Allowable Parking Adjustments    Purpose of  Adjustment    Amount of Adjustment Maximum  Reduction 2  On‐Site  Employee  Amenities    Square footage of commercial or industrial uses  to be used for an on‐site cafeteria, recreational  facility, and/or day care facility, to be provided to  employees or their children and not open to the  general public, may be exempted from the  parking requirements.    100% of  requirement for  on‐site  employee  amenities    Joint Use  (Shared)  Parking  Facilities    For any site or sites with multiple uses where the  application of this chapter requires a total of or  more than ten (10) spaces, the total number of  spaces otherwise required by application of Table  1 may be reduced when the joint facility will  serve all existing, proposed, and potential uses as  effectively and conveniently as would separate  parking facilities for each use or site. In making  such a determination, the director shall consider  a parking analysis using criteria developed by the  Urban Land Institute (ULI) or similar methodology  to estimate the shared parking characteristics of  the proposed land uses. The analysis shall employ  the city's parking ratios as the basis for the  calculation of the base parking requirement and  for the determination of parking requirements  for individual land uses. The director may also  require submittal and approval of a TDM  program 1 to further assure parking reductions  are achieved.      20% of total  spaces required  for the site    *NOT YET ADOPTED*  DRAFT  7  20200609_ay_16_0160026  100%  Affordable  Housing (4)  Based on maximum anticipated demand;  applicant may request up to a 100% reduction in  parking.      Affordable  Housing Units  and Single  Room  Occupancy  (SRO) Units (3)  The total number of spaces required may be  reduced for affordable housing and single room  occupancy (SRO) units, commensurate with the  reduced parking demand created by the housing  facility, including for visitors and accessory  facilities. The reduction shall consider proximity  to transit and support services and the director  may require traffic demand management  measures1 in conjunction with any approval.  a. 40% for  Extremely  Low Income  and SRO  Units  b. 30% for Very  Low Income  Units  c.   20% for Low  Income Units  Housing Near  Transit  Facilities  The total number of spaces required may be  reduced for housing located within a designated  Pedestrian/Transit Oriented area or elsewhere in  immediate proximity to public transportation  facilities serving a significant portion of residents,  employees, or customers, when such reduction  will be commensurate with the reduced parking  demand created by the housing facility, including  for visitors and accessory facilities, and subject to  submittal and approval of a TDM program.1    20% of the total  spaces required  for the site.    Transportation  and Parking  Alternatives    Where effective alternatives to automobile  access are provided, other than those listed  above, parking requirements may be reduced to  an extent commensurate with the permanence,  effectiveness, and the demonstrated reduction of  off‐street parking demand effectuated by such  alternative programs. Examples of such programs  may include, but are not limited to,  transportation demand management (TDM)  programs, or innovative parking pricing or design  solutions.1 (note: landscape reserve requirement  is deleted).    20% of the total  spaces required  for the site    Combined  Parking  Adjustments    Parking reductions may be granted for any  combination of the above circumstances as  prescribed by this chapter, subject to limitations  on the combined total reduction allowed.  a.   30%  reduction of the  total parking  demand  *NOT YET ADOPTED*  DRAFT  8  20200609_ay_16_0160026  otherwise  required   b.   40%  reduction for  affordable  housing projects  Modification  to Off‐Street  Loading  Requirements    The director may modify the quantity or  dimensions of off‐street loading requirements for  non‐residential development based on existing or  proposed site conditions; availability of  alternative means to address loading and  unloading activity; and, upon finding that: 1) the  off‐street loading requirement may conflict with  Comprehensive Plan goals and policies related to  site design planning, circulation and access, or  urban design principles; and 2) the use of shared  on‐street loading would not conflict with  Comprehensive Plan goals and policies related to  site design planning, circulation and access or  urban design principles; maximum reduction in  one loading space.    One loading  space may be  waived  Restriping  Existing  Parking  Facilities  Existing parking facilities may be restriped in  accordance with applicable provisions of the  municipal code. The Director may approve a  reduction in the number of required on‐site  parking spaces to achieve the City’s waste  management objectives, make improvements to  on‐site circulation that would reduce or eliminate  a hazard, or bring substandard parking stalls into  compliance with current design requirements.  This provision applies only to sites with existing  structures and existing parking facilities that are  intended to remain in substantially the same  form after re‐striping of the facility.    10% of the total  spaces required  for the site, or 2  spaces,  whichever is  greater.    (1) See Section 18.52.050(d) below regarding requirements for TDM  programs.    (2) No parking reductions may be granted that would result in provision of  less than ten (10) parking spaces on site, except for 100% affordable  housing projects.  *NOT YET ADOPTED*  DRAFT  9  20200609_ay_16_0160026    (3) No parking reductions may be granted for projects that are entitled to  the reduced parking standards in Table 1 of Section 18.52.040 for senior  housing.    (4) Applies to 100% affordable housing projects and the residential  component of 100% affordable housing mixed‐use projects.  “100%  affordable housing” as used herein means a multiple‐family housing  project consisting entirely of affordable units, as defined in Section  16.65.020 of this code, available only to households with income levels at  or below 120% of the area median income, as defined in Chapter 16.65,  except for a building manager’s unit.    [. . .]    SECTION 7.  Section 18.52.080 (Adjustments to Parking Assessment Area Requirements by the  Director) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) is hereby  amended as follows:     18.52.080   Adjustments to Parking Assessment Area Requirements by the Director    Automobile parking requirements prescribed in this chapter may be adjusted by the  director for properties within parking assessment areas in the following instances and in  accord with the prescribed limitations where, in his/her opinion, such adjustment will be  in accord with purposes of this chapter and will not create undue impact on existing or  potential uses adjoining the site or in the general vicinity.  Adjustments shall be made in  accordance with the procedures set forth in Chapter 18.78. The decision of the Director  regarding parking adjustments may be appealed as set forth in Chapter 18.78 (Appeals)  (a)   Tandem Parking  Tandem parking (a multiple parking configuration locating one stall behind another)  may be allowed where in the judgment of the director the parking will serve all  proposed uses conveniently. The director shall require such covenants and guarantees  as deemed necessary to ensure use and maintenance of such parking facilities.  (b)   Percentage of Compact Parking Stalls  For parking facilities exceeding five stalls and with architectural review approval prior to  June 1, 2007, a maximum of fifty percent compact parking stalls may be allowed. For  any project approved subsequent to June 1, 2007, compact parking is not allowed.  (c)   Shared Parking Facilities  For any site or sites with multiple uses where joint use of on‐site private or nearby  public parking facilities can occur without conflict, and the use is exempt from parking  *NOT YET ADOPTED*  DRAFT  10  20200609_ay_16_0160026  assessment, the total number of spaces otherwise required by application of the  schedule may be reduced when the joint facility will serve all existing, proposed, and  potential uses as effectively and conveniently as would separate parking facilities for  each use or site. In making such a determination, the director shall consider a parking  analysis using criteria developed by the Urban Land Institute (ULI) or similar  methodology to estimate the shared parking characteristics of the proposed land uses.  The analysis shall employ the city's parking ratios as the basis for the calculation of the  base parking requirement and for the determination of parking requirements for  individual land uses. The number of parking stalls required for any new development or  addition may be reduced by no more than twenty percent (20%) of the total number of  spaces otherwise required for the site or sites.  (d)   Off‐Site Parking  Within parking assessment areas, the director may authorize all or a portion of the  required parking for a use to be located on a site within the parking assessment area or  not more than 500 feet from the boundaries of the parking assessment area, where the  zoning of such site permits parking as a use. The director shall require such covenants  and guarantees as deemed necessary to ensure use and maintenance of such parking  facilities.  (e)   Modifications to Off‐Street Loading Requirements  The director may modify the quantity or dimensions of off‐street loading requirements  for non‐residential development based on existing or proposed site conditions;  availability of alternative means to address loading and unloading activity; and, upon  finding that: 1) the off‐street loading requirement may conflict with Comprehensive  Plan goals and policies related to site design planning, circulation and access, or urban  design principles; maximum reduction is one loading space; and 2) and the use of shared  on‐street loading would not conflict with Comprehensive Plan goals and policies related  to site design planning, circulation and access or urban design principles; maximum  reduction in one loading space.  (f)   Affordable Housing  For 100 percent affordable housing projects, the director may waive up to 100 percent  of the parking requirement based on maximum anticipated demand.  "100% affordable  housing" as used herein means a multiple‐family housing project consisting entirely of  affordable units, as defined in Section 16.65.020 of this code, available only to  households with income levels at or below 120 percent of the area median income, as  defined in Chapter 16.65, except for a building manager's unit.   (g)   Adjustments to Existing Parking Facilities    The Director may approve a reduction in existing on‐site parking spaces to achieve the  City’s waste management objectives, make improvements to on‐site circulation that  *NOT YET ADOPTED*  DRAFT  11  20200609_ay_16_0160026  would reduce or eliminate a hazard, or bring substandard parking stalls into compliance  with current design requirements. This provision applies only to sites with existing  structures and existing parking facilities that are intended to remain in substantially the  same form after re‐striping of the facility. A maximum of 10% of the existing automobile  parking stalls, or two stalls, whichever is greater, may be removed pursuant to this  section.    SECTION 8.  Section 18.54.020 (Vehicle Parking Facilities) of Chapter 18.54 (Parking Facility  Design Standards) of Title 18 (Zoning) is hereby amended as follows:    18.54.020   Vehicle Parking Facilities    (a)   Parking Facility Design    Parking facilities shall be designed in accordance with the following regulations:    (1)   Requirements for dimensions of parking facilities at, above, and below grade  are contained in this section and in Figures 1‐67 and Tables 3‐6 of  Section 18.54.070.    (2)   Stalls and aisles shall be designed such that columns, walls, or other  obstructions do not interfere with normal vehicle parking maneuvers. All  required stall and aisle widths shall be designed to be clear of such obstructions.    (3)   The required stall widths shown in Table 3 of Section 18.54.070 shall be  increased by 0.5 foot for any stall located immediately adjacent to a wall,  whether on one or both sides. The director may require that the required stall  widths be increased by 0.5 foot for any stall located immediately adjacent to a  post, where such post limits turning movements into or out of the stall.    (4)   For property owners or tenants seeking to install EVSE, the required stall  widths shown in Table 3 of Section 18.54.070 may be reduced by no more than  18 inches below the code required minimum dimensions in order to  accommodate EVSE or associated Electrical Utility equipment.  This reduction  may be applied to 10% of the total required parking stalls, or two stalls,  whichever is greater.  The Director may approve a reduction in width for a  greater number of stalls through a Director’s Adjustment pursuant to Section  18.52.050.    (4)(5)   Dead‐end aisles shall be avoided to the greatest extent feasible.    (5)(6)   Except for at‐grade parking facilities serving a maximum of two dwelling  units, all parking facilities shall be set back a sufficient distance from the street  *NOT YET ADOPTED*  DRAFT  12  20200609_ay_16_0160026  so that vehicles need not back out into or over a public street (not including an  alley) or sidewalk.    (b)   Off‐Street Parking Stalls    (1)   Each off‐street parking stall shall consist of a rectangular area not less than  eight and one‐half (8.5) feet wide by seventeen and one‐half (17.5) feet long  (uni‐class stall), or as otherwise prescribed for angled parking by Table 1 Table 3  in Section 18.54.070.    [. . .]    (5)   Each off‐street motorcycle parking stall shall consist of a rectangular area  not less than five (5) feet wide by ten (10) feet long, as illustrated in Figure 7 of  Section 18.54.070.      (c)   Off‐Street Loading Spaces     [. . .]    (f)   Figures and Tables    Figures 1‐67 and Tables 3‐6 are located at the end of this chapter in Section 18.54.070  and depict design requirements for parking stalls, aisles, driveways, accessibility, and  parking lots.    SECTION 9. Figure 7 is added to Section 18.54.070 (Parking Design Tables and Figures) of  Chapter 18.54 (Parking Facility Design Standards) of Title 18 (Zoning) as follows:     Figure 7  Motorcycle Parking Dimensions      *NOT YET ADOPTED*  DRAFT  13  20200609_ay_16_0160026  SECTION 10.  Section 18.52.070 (Parking Regulations for CD Assessment District) of Chapter  18.52 (Parking and Loading Requirements) of Title 18 (Zoning) is hereby deleted in its entirety  and restated as follows:    18.52.070   Parking Regulations for CD Assessment District    With respect to on‐site and off‐site parking space requirements for nonresidential uses  within an assessment district wherein properties are assessed under a Bond Plan G  financing pursuant to Title 13, the requirements of this Section 18.52.070 shall apply in  the CD Assessment district in lieu of comparable requirements in this Chapter  18.52.  Requirements for the size and other design criteria for parking spaces shall  continue to be governed by the provisions of Chapter 18.54.    (a)   On‐Site Parking Requirement     Any new development, any addition or enlargement of existing development, or any use  of any floor area that has never been assessed under any Bond Plan G financing  pursuant to Title 13, shall provide one parking space for each 250 gross square feet of  floor area, except as may be exempt from such requirement by the provisions of  subsection (b) of this section. The purpose of this subsection is to regulate the number  of parking spaces required.    (b)   Exceptions to On‐Site Parking Requirement    The requirement for on‐site parking provided in subsection (a) of this section shall not  apply in the following circumstances:    (1)   The following square footage shall be exempt from the on‐site parking  requirement of subsection (a):    (A)   Square footage for handicapped access which does not increase the  usable floor area, as determined by Section 18.18.060(e);    (B)   Square footage for at or above grade parking, though such square  footage is included in the FAR calculations in Section 18.18.060(a).    (2)   A conversion to commercial use of a historic building in Categories 1 and 2  shall be exempt from the on‐site parking requirement in subsection (a), provided  that the building is fifty feet or less in height and has most recently been in  residential use. Such conversion, in order to be exempt, shall be done in  conjunction with exterior historic rehabilitation approved by the director of  planning and community environment upon the recommendation of the  architectural review board in consultation with the historic resources board.  Such conversion must not eliminate any existing on‐site parking.  *NOT YET ADOPTED*  DRAFT  14  20200609_ay_16_0160026    (3)   Vacant parcels shall be exempt from the requirements of subsection (a) of  this section at the time when development occurs as provided herein. Such  development shall be exempt to the extent of 0.3 parking spaces for every one  thousand square feet of site area, provided that such parcels were at some time  assessed for parking under a Bond Plan E financing pursuant to Chapter 13.16 or  were subject to other ad valorem assessments for parking.    (4)   No new parking spaces will be required for a site in conjunction with the  development or replacement of the amount of floor area used for nonresidential  use equal to the amount of adjusted square footage for the site shown on the  engineer’s report for fiscal year 1986‐87 for the latest Bond Plan G financing for  parking acquisition or improvements in that certain area of the city delineated  on the map of the University Avenue parking assessment district entitled,  “Proposed Boundaries of University Avenue Off‐Street Parking Project #75‐63  Assessment District, City of Palo Alto, County of Santa Clara, State of California,”  dated October 30, 1978, and on file with the city clerk. No exemption from  parking requirements shall be available where a residential use changes to a  nonresidential use, except pursuant to subdivision (b)(2) of this subsection.    (c)   Off‐Site Parking    Parking required by this chapter may be provided by off‐site parking, provided that such  off‐site parking is within a reasonable distance of the site using it or, if the site is within  an assessment district, within a reasonable distance of the assessment district boundary  and approved in writing by the director of planning and community environment.  The  director shall assure that sufficient covenants and guarantees are provided to ensure  use and maintenance of such parking facilities, including an enforceable agreement that  any development occurring on the site where parking is provided shall not result in a net  reduction of parking spaces provided, considering both the parking previously provided  and the parking required by the proposed use.    (d)   In‐Lieu Parking Provisions    In connection with any expansion of the supply of public parking spaces within the CD  commercial downtown district, the city shall allocate a number of spaces for use as “in‐ lieu parking” spaces to allow development to occur on sites which would otherwise be  precluded from development due to parking constraints imposed by this chapter. Off‐ site parking on such sites may be provided by payment of an in‐lieu monetary  contribution to the city to defray the cost of providing such parking. Contributions for  each required parking space shall equal the incremental cost of providing a net new  parking space in an assessment district project plus cost for the administration of the  program, all as determined pursuant to Chapter 16.57 of Title 16 of this code, by the  director, whose decision shall be final. Only sites satisfying one or more of the following  *NOT YET ADOPTED*  DRAFT  15  20200609_ay_16_0160026  criteria, as determined by the director, shall be eligible to participate in the in‐lieu  parking program:    (1)   Construction of on‐site parking would necessitate destruction or substantial  demolition of a designated historic structure;    (2)   The site area is less than ten thousand square feet and it would not be  physically feasible to provide the required on‐site parking;    (3)   The site is greater than ten thousand square feet, but of such an unusual  configuration that it would not be physically feasible to provide the required on‐ site parking;    (4)   The site is located in an area where city policy precludes curb cuts or  otherwise prevents use of the site for on‐site parking;    (5)   The site has other physical constraints, such as a high groundwater table,  which preclude provision of on‐site parking without extraordinary expense.    Office uses above the ground floor shall not be eligible to participate in the in‐lieu  parking program for one year from the effective date of Ordinance No. 5460, from May  2, 2019 through May 1, 2020.    (e)   Underground Parking    Underground parking deeper than two levels below grade shall be prohibited unless a  soils report or engineering analysis demonstrates that regular pumping of subsurface  water will not be required.    (f)    Minor Adjustments to Existing Parking Facilities    The following minor adjustments may be made to existing parking facilities that are  intended to remain in substantially the same form after restriping.    (1)   Accessibility and EVSE‐related equipment.  For sites with existing  development, the number on‐site parking spaces may be reduced to the  minimum extent necessary to: (1) achieve state or federally mandated  accessibility requirements or (2) permit installation of electrical utility equipment  required for EVSE. A maximum of 10% of the existing automobile parking stalls,  or one stall, whichever is greater, may be removed pursuant to this section. The  loss of a parking space is not permitted to accommodate EVSE itself. To the  extent reasonably feasible, electrical equipment required for EVSE shall be  placed in a location that minimizes visibility from the public right of way.    *NOT YET ADOPTED*  DRAFT  16  20200609_ay_16_0160026  (2)   Substitution of bicycle parking.  For sites with existing development, where  additional bicycle parking facilities cannot reasonably be located outside of the  parking facility area, existing automobile parking stalls may be substituted with  long‐ or short‐term bicycle parking facilities. The maximum number of  substitutions shall be two existing automobile parking spaces, or 10% of the  existing automobile parking stalls, whichever is greater. A minimum of four long‐ term or eight short‐term bicycle parking spaces is required per automobile  parking space. The bicycle parking spaces are to be located in the same physical  location as the automobile spaces they are replacing, which shall be near  primary entries of the building on‐site or in locations that meet best practices for  bicycle parking facilities.    SECTION 11.  Section 18.18.090 (Parking and Loading) of Chapter 18.18 (Downtown Commercial  (CD) District) of Title 18 (Zoning) is hereby deleted in its entirety and restated as follows:     18.18.090 Parking and Loading    The provisions of Chapter 18.52 and 18.54 shall apply within the CD district.  In  particular, on‐site and off‐site parking for non‐residential uses within an assessment  district wherein properties are assessed under a Bond Plan G financing pursuant to Title  13 shall be provided in accordance with Section 18.52.070.    SECTION 12.    If any section, subsection, sentence, clause, or phrase of this Ordinance is for any  reason held to be invalid or unconstitutional by a decision of any 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 this Ordinance and each  and every section, subsection, sentence, clause, or phrase not declared invalid or  unconstitutional without regard to whether any portion of the Ordinance would be  subsequently declared invalid or unconstitutional.    SECTION 13.    The City Council determines that adoption of this ordinance is exempt from  environmental review pursuant to California Environmental Quality Act (CEQA) Guidelines  Sections 15301 (Existing Facilities) and 15311 (Accessory Structures) because it regulates the  construction or modification of parking facilities.    //    //    //    //    //  *NOT YET ADOPTED*  DRAFT  17  20200609_ay_16_0160026  SECTION 14.    This Ordinance shall be effective on the thirty‐first date after the date of its  adoption.      INTRODUCED:       PASSED:           AYES:      NOES:    ABSENT:    ABSTENTIONS:    NOT PARTICIPATING:     ATTEST:             ____________________________      ____________________________  City Clerk       Mayor      APPROVED AS TO FORM:      APPROVED:      ____________________________      ____________________________  Assistant City Attorney     City Manager             ____________________________  Director of Planning & Development  Services    City of Palo Alto (ID # 11556) City Council Staff Report Report Type: Action Items Meeting Date: 8/24/2020 City of Palo Alto Page 1 Council Priority: Climate/Sustainability and Climate Action Plan Summary Title: Carbon Neutral Plan Updates Title: Staff and Utilities Advisory Commission Recommend the City Council Adopt a Resolution Amending the City's Electric Supply Portfolio Carbon Neutral Plan and Electric Utility Reserves Management Practices (Continued from August 17, 2020) From: City Manager Lead Department: Utilities Recommendation Staff and the Utilities Advisory Commission (UAC) recommend that the City Council: 1) Adopt a resolution (Attachment A) amending the Carbon Neutral Plan (as shown in Exhibit A to Attachment A) to: a. Modify the definition of carbon neutrality to use an hourly carbon emissions accounting standard; b. Minimize electric supply portfolio costs by authorizing the exchange of bundled RECs from the City’s long-term renewable resources (Bucket 1 RECs) for Renewable Portfolio Standard (RPS) eligible, unbundled RECs (Bucket 3 RECs),1 to the maximum extent possible, while maintaining compliance with the state’s RPS regulations (“REC Exchanges”); c. For calendar years 2020 through 2024, authorize the purchase of RPS-eligible, unbundled RECs (Bucket 3 RECs) as needed to neutralize any residual emissions resulting from the difference between emissions calculated under an annual accounting and hourly accounting methodology; 2) Direct staff to return to Council in 2022 to review the authorization to minimize electric supply portfolio costs via REC Exchanges; 1 See Attachment C for a description of different types of RECs. CITY OF PALO ALTO City of Palo Alto Page 2 3) Direct staff to return to Council with a review of the Carbon Neutral Plan by the end of 2024 to evaluate the effectiveness of these policy changes and to modify them if necessary (with a particular focus on reviewing the use of Bucket 3 RECs to neutralize any residual emissions resulting from the switch to an hourly emissions accounting methodology); and 4) Create a Cap and Trade Program Reserve in the Electric Fund which will hold revenues from the sale of carbon allowances freely allocated to the electric utility under the State’s Cap and Trade Program. (See Attachment B for background information on the State’s Cap and Trade Program.) Staff and the UAC recommend that the Council provide the following guidance on the use of revenues: Consistent with the City’s Cap and Trade Revenue Use Policy, adopted in January 2015, for Fiscal Years 2021 and 2022, an amount equivalent to at least one-third of the revenues earned from the REC Exchanges would be allocated from the City’s Cap and Trade Reserve to local decarbonization efforts; thereafter the City would prioritize local decarbonization efforts with these funds. This action, which would require only City Manager approval, will have little to no impact on rates due to the amendments to the Carbon Neutral Plan described above (specifically, the REC Exchanges). Executive Summary This report is a follow-up to a series of reports to the UAC covering the topics of carbon emissions accounting and Renewable Portfolio Standard (RPS) procurement strategy (e.g., reports from May 2019, June 2019, August 2019, February 2020, March 2020 and July 2020). The two topics are not only highly complex and esoteric, but also highly interrelated. Further, policy decisions related to these two topics can have potentially significant impacts on supply costs, retail rates, and funding for customer programs. As a result, staff, the UAC, and a number of community members have had extensive discussions about these topics in an attempt to arrive at a policy position that balances the City’s sustainability goals with its desire to lower costs and rates. The attached amendments to the Electric Supply Portfolio Carbon Neutral Plan will: 1. Change the City’s methodology for accounting for the carbon emissions of its electric portfolio from an annual methodology to a more accurate hourly methodology. This will result in a small increase in the cost of the electric portfolio to maintain carbon neutrality under the hourly standard. However, this cost will be minimized in the near term because the amendments also allow the use of Bucket 3 RECs through 2024 for any additional renewable energy purchases needed due to the change in methodology. The policy of using Bucket 3 RECs for this compliance requirement will be revisited prior to 2024, which is the timeline for completing an electric portfolio rebalancing analysis in anticipation of the end of the City’s Western Base Resource contract for Federal hydropower from the Central Valley Project. This topic is summarized in previous UAC reports and Attachment C. City of Palo Alto Page 3 2. Allow for REC Exchanges2 to take advantage of the current significant cost difference between Bucket 1 and Bucket 3 RECs to generate earnings for the City’s electric utility. These REC Exchanges are authorized going forward without a specific end date, but a review of the policy is required prior to 2024. The earnings would be used either to offset electric utility operational costs or they would be reserved for local decarbonization. This topic is the primary focus of this report. During the course of the UAC discussions, the Palo Alto community experienced a truly fundamental shift in everyday life—as well as in the City’s financial outlook—due to the COVID- 19 pandemic. The measures put in place throughout the state to contain the spread of the novel coronavirus have had a profound negative impact on the City’s General Fund; they have also led to a reduction in the electric utility’s total sales, which is projected to cause a multi- million dollar revenue shortfall over the next few years. As a result, at the UAC’s May 2020 discussion of the Utility’s FY 2021 budget, the UAC voted unanimously to pursue maximizing the total volume of exchanges of in-state (Bucket 1) renewables for out-of-state (Bucket 3) renewables. In previous discussions prior to the COVID-19 pandemic Commissioners had expressed an interest in having all of these funds go toward local decarbonization, but given the economic impacts of the pandemic recognized the value of devoting some portion of these earnings to help avoid painful cuts to electric utility programs, positions, and capital investments, minimize retail rate increases. Subsequently, at the July 2020 UAC meeting, the Commission voted unanimously to recommend the proposal presented in the current report, to exchange the City’s Bucket 1 renewable resources for Bucket 3 renewables to the maximum extent permitted under the state’s RPS law, while maintaining carbon neutrality. Staff and the UAC do not recommend establishing a specific sunset date for the authority for these maximized renewable energy exchanges; however, they recommend that staff be directed to return to Council after two years (in 2022) to review the effects of this policy change and consider whether to extend or modify it. In addition, staff and the UAC recommend re- evaluating the effectiveness of the change to the City’s carbon accounting methodology before calendar year 2024—which will be at the time the City considers whether to renew its share of the Western Base Resource hydroelectric project or rebalance its portfolio. If the City enables the REC exchanges described above, it has an opportunity to reduce electric supply costs by over $3 million per year and therefore redirect some additional funding to local carbon reduction activities (like building electrification) without significantly impacting utility rates. This action could be undertaken by action of the City Manager under existing Council authority. At the July 2020 meeting, the UAC expressed a clear preference that the revenue from these REC exchanges be allocated to local carbon reduction efforts; however, in view of the budget impacts of the COVID-19 pandemic, the UAC recommended that for Fiscal Years 2021 and 2022 at least one-third of the revenue from the REC exchanges be devoted to local decarbonization, with the majority of the funding being used to ameliorate the pandemic 2 The exchange of bundled RECs from the City’s in-state, long-term renewable resources (Bucket 1 RECs) for RPS- eligible, unbundled RECs (Bucket 3 RECs), which usually come from out of state sources. City of Palo Alto Page 4 budget impacts on the electric utility, but that local decarbonization be prioritized in future years. Discussion Since the start of the coronavirus pandemic, electricity consumption in Palo Alto has fallen about 10% from baseline levels; given this reduction in retail sales volumes and the desire to help the community by holding rates flat, the utility now faces a multi-million-dollar budget gap. As such, there is broad community interest in three different objectives with respect to the electric utility: (a) closing the utility’s revenue gap, (b) holding retail rates flat, and (c) maintaining the City’s commitment to carbon neutral supply resources. Executing exchanges of the City’s in-state/Bucket 1 renewable energy generation for out-of-state/Bucket 3 renewable generation is one potential way for the City to efficiently satisfy all three objectives simultaneously. The focus of the current report is therefore the potential revenue that can be gained through exchanging the City’s in-state renewable resources (“Bucket 1 RECs”) for out-of- state renewables (“Bucket 3 RECs” or “unbundled RECs”) and the impacts that such exchanges would have on the make-up of the City’s electric supply portfolio. Additional background information about the City’s Carbon Neutral Plan, the differences between hourly and annual carbon accounting methodologies, and the qualitative differences between California-based Bucket 1 renewables and out-of-state unbundled RECs (both of which were discussed at length in the March 2020 UAC report and presentation) can be found in Attachment C. REC Exchange Revenue Potential The ability to raise new revenue by exchanging in-state for out-of-state renewable generation is based on the fact that, due to legislative constraints on the ability to use out-of-state renewable generation to comply with the state’s RPS requirements, in-state generation carries a large price premium relative to out-of-state generation. Currently, in-state renewable generation is valued at about $15 per MWh (in addition to the value of the electrical energy itself), while out-of-state renewable generation is valued at only $2.75 per MWh. Estimates of the revenue potential of the proposed REC exchanges is based on these current REC values, the City’s current load projections (which incorporate a reduction associated with the impact of the COVID-19 pandemic), and the City’s current hydroelectric generation projections. Table 1 below summarizes the estimated net revenue potential associated with this REC exchange proposal over the next five fiscal years. Table 1: Summary of REC Exchange Revenue Potential, FY 2021-2025 ($M) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Sales of Bucket 1 RECs Exceeding Annual Load $0.56 $0.79 $1.78 $2.48 $2.55 Additional Bucket 1 REC Sales $3.41 $2.49 $1.36 $0.95 $0.59 Bucket 3 REC Purchases Cost ($0.63) ($0.46) ($0.25) ($0.17) ($0.11) Net Revenue Potential $3.34 $2.82 $2.89 $3.25 $3.03 City of Palo Alto Page 5 Note that the figures in the table above assume that the City begins the REC exchanges in September of FY 2021. It is worth noting that the revenue potential estimates are highly sensitive to the generation volumes the City receives from its hydro resources, which of course are highly uncertain. If hydro conditions were above-average for the winter of 2020/2021, the total REC exchange revenue for the next two fiscal years would be expected to increase from $6.2 million to $7.7 million, while in below-average hydro conditions the total revenue would fall to $5.7 million. Impact of REC Exchanges on Electric Supply Portfolio Although exchanging in-state RECs for out-of-state RECs would have no real impact on the City’s total electricity-related carbon emissions (see Attachment C for more discussion on this topic), the downside of this strategy is that it would have a negative impact on the City’s reported portfolio make-up and carbon emissions. As noted earlier, the state’s RPS law gives preferential treatment to in-state renewable resources over out-of-state resources, and the same is true of how such resources are reported to customers on the annual Power Content Label (PCL). As of calendar year 2020, the California Energy Commission’s (CEC’s) PCL regulations require that utilities report their out-of-state (Bucket 3) REC purchases as “unspecified sources of power” rather than under the appropriate renewable energy technology. Furthermore, beginning with the 2020 PCL, utilities will be required to report the annual average greenhouse gas emissions intensity of their electric supply. And again, rather than being treated as carbon-free resources like other forms of renewable energy, Bucket 3 RECs will be treated as having an emissions intensity equivalent to generic market power purchases (428 kilograms (kg) of CO2 per MWh, which is almost 20% greater than the emissions intensity of natural gas generation). As a result, rather than reporting a supply mix that is over 60% renewable and nearly carbon- free on average3, under the maximized REC exchange strategy the City will have to report a portfolio mix that is less than 40% renewable and is responsible for a moderate amount of carbon emissions. Table 2 displays the Power Content Label, RPS level, and emissions intensity for the City’s electric supply portfolio in CY 2021 (the only full calendar year covered by the proposed period of authority for maximizing the REC exchanges). It will no doubt be a communications challenge to explain to customers that the “unspecified sources of power” on their PCL actually represent out-of-state renewable resources, and that while the PCL indicates that their power supply is responsible for about 100 kg of CO2 emissions per MWh (which is still well below the statewide average emissions intensity of 240 kg CO2 per MWh) by the City’s accounting it is actually carbon neutral. Still, staff feels that this challenge is worth it for the sake of the several million dollars of additional revenue that this strategy will bring in, which can be used to defray the economic impacts of COVID-19 and to fund additional local carbon reduction. 3 Although the City’s baseline portfolio mix is entirely comprised of renewables and hydroelectric resources, the CEC’s proposed PCL regulations assign a small emission intensity to all biomass generation such as landfill gas generation, which currently accounts for about 10% of the City’s supply mix. City of Palo Alto Page 6 Table 2: Power Content Label, RPS Level, and Emissions Intensity for the City’s Electric Supply Portfolio in CY 2021 (Baseline and Maximized REC Exchanges) Existing Portfolio Maximizing REC Exchanges Eligible Renewables 60% 31% Biomass & Biowaste 12% 7% Geothermal 0% 0% Small hydroelectric 1% 1% Solar 37% 18% Wind 10% 6% Coal 0% 0% Large Hydroelectric 40% 46% Natural Gas 0% 0% Nuclear 0% 0% Other 0% 0% Unspecified Sources of Power 0% 23% RPS Level (% of sales) 62% 36% Emissions Intensity (kg CO2/MWh) 6 102 Use of REC Exchange Revenues In the August 2019 UAC presentation on this topic, staff presented a list of potential uses of the revenue from the sale of surplus renewable resources. (As referenced in Table 1 outlines, the net revenue from these sales could be up to $3.06 million per year, on average, over the FY 2021-2025 time period.) That list of potential uses included: • Rate reduction • Decarbonization efforts (e.g., building electrification or electric vehicle charging infrastructure or incentives) • Investments in smart grid infrastructure • A second transmission line connecting the City’s distribution system to the bulk transmission system In discussions with the UAC and the community prior to the pandemic, the focus for the use of this new revenue stream was largely on the first two items: rate reduction and local decarbonization. Since the beginning of the pandemic the focus of these discussions, for the near-term, has been on how to avoid deep cuts to the electric utility budget while avoiding rate increases. City of Palo Alto Page 7 Given the current financial environment caused by the pandemic, staff and the UAC recommend that the majority of the proceeds from the recommended REC exchanges over the next two years be devoted to closing the electric utility’s budget gap and avoiding cuts to programs, staffing levels, or capital investments. However, given the City’s ambitious Sustainability Implementation Plan goals related to Energy and Electric Vehicles, staff and the UAC recommend that even in the near-term at least one-third of the REC exchange revenues be devoted to local decarbonization programs. And after the pandemic’s effects pass, staff and the UAC recommend that the revenue from the REC exchanges be reallocated, with an even stronger focus on local carbon reduction efforts. Mechanism for Allocation of Funds to Local Decarbonization Currently the electric utility’s renewable energy purchases are funded from two sources: 1) customer sales revenues, and 2) revenues the electric utility receives as a result of its participation in the State’s Cap and Trade program (see Attachment B for more detail). Table 3 shows the current funding levels from these two sources and how staff and the UAC propose to change funding levels if the REC Exchange proposal is implemented: Table 3: Funding Sources for FY 2021 / FY 2022 Renewable Energy Budget ($M) FY 2021 Budget without REC Exchanges FY 2021 Budget with REC Exchanges FY 2022 Budget without REC Exchanges FY 2022 Budget with REC Exchanges Cap and Trade Revenue $5.3 $4.2 $5.3 $4.4 Customer Sales Revenue $30.7 $28.4 $30.7 $28.8 Total Renewable Energy Budget $36.0 $32.7 $36.0 $33.2 REC Exchange Revenue $3.3 $2.8 Cap and Trade Revenue Reserved for Local Decarbonization (33% of REC Surplus Sales and Exchange earnings) $1.1 $0.9 Savings to Electric Utility $2.2 $1.9 The revenues received from the REC Exchanges would go into the Electric Supply Reserve, reducing operating costs. However, staff recommends allocating a portion of the revenues earned from the City’s participation in the state’s Cap and Trade Program (equal to one-third of the REC Exchange revenue) to local decarbonization activities, because Cap and Trade Program revenues are provided to the electric utility explicitly to support carbon reducing activities like local decarbonization. For ease of accounting and fund tracking, staff recommends the creation of a Cap and Trade Program Reserve in the Electric Fund which will hold revenues from the sale of carbon allowances freely allocated by the California Air Resources Board to the City’s electric City of Palo Alto Page 8 utility. See Attachment D for an updated version of the Electric Utility Reserves Management Practices reflecting the creation of this reserve. The Council’s January 2015 policy on the use of these revenues gives the City Manager authority to allocate these funds among a range of purposes, including local carbon reduction, so no further Council action would be required except to approve specific local decarbonization program budgets through the annual budget process. Ultimately, the ability to make a significant investment in jumpstarting local decarbonization efforts without raising retail rates by one cent—in fact, while actually helping to lower retail rates—seems like a proposal that should win broad support. Policy Alternatives An alternative compromise approach to the use of the sales revenue from the sales and exchanges of the City’s renewable energy supplies would be to allocate a fixed amount toward local decarbonization efforts (e.g., $1 million per year) and the remainder to operational savings and rate reduction. Additional alternatives to this proposal could include allocating more of the revenue from this proposal to rate reduction or allocating more to local carbon reduction. Other alternatives could include establishing an explicit time limit on the authorization for the REC exchanges. Next Steps Immediately upon the approval of the Carbon Neutral Plan amendments, staff will begin to execute transactions to sell the City’s in-state renewable resources and purchase out-of-state renewables. In addition, staff will report on the portfolio’s total emissions under both an hourly and an annual carbon accounting framework in the annual report to the City Council on the City’s Renewable Procurement Plan, Renewable Portfolio Standard Compliance, and Carbon Neutral Electric Supplies (expected in Q4 of 2020). In addition, in the next couple of years staff plans to carry out a broader and longer-term analysis of potential options for rebalancing the City’s electric supply portfolio. This analysis will be presented in the context of deciding whether to renew the City’s Western Base Resource hydro contract after the current one expires at the end of 2024. It will also consider options for utilizing the City’s share of the California-Oregon Transmission Project, after that resource reverts to the City’s control at the end of 2023. Resource Impact Staff estimates that exchanging the City’s in-state renewable resources (“Bucket 1 RECs”) for out-of-state renewables (“Bucket 3 RECs”) will generate an average of approximately $3.1 million in additional revenue per year for the next five fiscal years. In addition, staff estimates that switching to an hourly carbon accounting methodology, using average hourly emissions intensity factors, and using Bucket 3 RECs to neutralize the residual emissions resulting from this change, will result in an increase in supply costs of approximately $140,000 in an average hydrological year. So overall, staff’s and the UAC’s proposal is expected to yield $3.0 million in City of Palo Alto Page 9 new net revenue per year for the next five years on average. (Staff will review and adjust the budget when these additional revenues need to be recognized. Currently these are estimates only and don’t need to be recognized, so a budget adjustment isn’t needed at this time.) Staff and the UAC recommend allocating at least one-third of these earnings toward local decarbonization efforts for the next two years, and the remainder to rate reduction. Beyond the next two years, staff and the UAC recommend allocating the majority of these earnings to local decarbonization efforts. This approach would yield operational savings that could reduce future rate increases by approximately 0.7%, or 0.12 cents/kWh, while also providing substantial funding for local carbon reduction. Policy Implications This report satisfies Initiatives #4 and #5 of the EIRP Work Plan. This report is also in line with the Sustainability and Climate Action Plan goals of continuing to lower the carbon footprint of the community. Stakeholder Engagement The changes proposed in this staff report have been the subject of significant discussion with the UAC and the public over the past year. In addition to several discussions on this topic at the UAC during this period, staff has also met with, and incorporated feedback from, several engaged members of the community. Environmental Review The City Council’s amendment of the City’s Carbon Neutral Plan and Electric Utility Reserves Management Practices does not meet the definition of a project under Public Resources Code 21065 and therefore California Environmental Quality Act (CEQA) review is not required. Attachments: • Attachment A: Resolution Amending Carbon Neutral Plan • Attachment B: Cap and Trade Program Synopsis • Attachment C: Background Information on Carbon Neutral Plan, Carbon Accounting & RECs • Attachment D: Updated Electric Reserve Management Practices Attachment A 1 Resolution No. _____ Resolution of the Council of the City of Palo Alto Amending the Electric Supply Portfolio Carbon Neutral Plan and the Electric Utility Reserves Management Practices R E C I T A L S A.The City of Palo Alto (the “City") provides electricity to residential and commercial customers located within its jurisdictional boundary. B.In an effort to combat climate change, in December 2007 the City adopted the Climate Protection Plan, which set aggressive greenhouse gas (“GHG”) emission reduction goals to be achieved by the year 2020. C.Further to its GHG emissions reduction goals, in November 2016 the City adopted a Sustainability and Climate Action Plan (“S/CAP”), and in December 2017 the City adopted a 2018-2020 Sustainability Implementation Plan (“SIP”). D.In order to achieve these aggressive GHG emissions reduction goals, in March 2013, through Resolution No. 9322, the City adopted a Carbon Neutral Plan for the electric supply portfolio, with a goal of achieving carbon neutrality by 2013. E.In the 2013 Carbon Neutral Plan, the City defined carbon neutrality based on an annual accounting of the City’s load and its carbon neutral electric resources: an electric supply portfolio that “will demonstrate annual net zero greenhouse gas (GHG) emissions, measured at the Citygate, in accordance with The Climate Registry’s Electric Power Sector protocol for GHG emissions measurement and reporting.” At the time this definition of carbon neutrality was adopted, this was the most granular accounting approach feasible (given the lack of hourly grid emissions data) or necessary (given the small amount of solar capacity installed at that point, and the resulting emissions profile of grid electricity). F.Based on this definition of carbon neutrality, the City has achieved its Carbon Neutral Plan objectives each year starting in 2013, primarily through its long-term contracts for in-state hydroelectric and Renewable Portfolio Standard (“RPS”) eligible resources, with some reliance on RPS-eligible unbundled renewable energy certificates (“RECs”) for 2013-2015. G.Due to limitations on the use of unbundled RECs (“Bucket 3 RECs”) for compliance with the state’s RPS mandate (only 10% of a utility’s RPS procurement may consist of Bucket 3 RECs), a significant financial premium currently exists for in-state bundled renewable energy resources (“Bucket 1 RECs”). H.As a result of its pursuit of its Carbon Neutral Plan objectives, the City’s electric supply portfolio currently far exceeds the procurement requirements of the state’s RPS Attachment A 2 mandate, and all of the City’s current RPS resources are classified as Bucket 1 RECs. I.Due to the impacts of the county and state stay-at-home orders put in place since March 2020, in response to the COVID-19 pandemic, the City’s electric utility retail sales volumes (and revenues) have declined approximately 10% from baseline levels, which has put a strain on the City’s electric utility financial reserves. J.Through Resolution 9487, adopted in January 2015, the City established a policy on the use of revenue from the sale of allowances freely allocated to the City’s electric utility under the state’s Cap and Trade Program (“Cap and Trade Revenue Use Policy”). This policy authorizes the City Manager or their designee to use these allowances and allocate the resulting revenue to certain approved types projects or expenditures, in compliance with CARB regulations. K.Consistent with the City’s Cap and Trade Revenue Use Policy, for Fiscal Years 2021 and 2022, an amount equivalent to at least one-third of the revenues earned from the REC Exchanges would be allocated from the City’s Cap and Trade Reserve to local decarbonization efforts; thereafter the City would prioritize local decarbonization efforts with these funds. The Council of the City of Palo Alto does hereby RESOLVE, as follows: SECTION 1. The Council approves the updated Electric Supply Portfolio Carbon Neutral Plan (attached, with changes shown in redline, as Exhibit A), which modifies the definition of carbon neutrality to use an hourly carbon emissions accounting standard; authorizes the exchange of bundled RECs from the City’s long-term renewable resources (Bucket 1 RECs) for RPS-eligible, unbundled RECs (Bucket 3 RECs), to the maximum extent possible, while maintaining compliance with the state’s RPS regulations in order to minimize electric supply portfolio costs (“REC Exchanges”); and authorizes the purchase of RPS-eligible, unbundled RECs (Bucket 3 RECs) as needed to neutralize any residual emissions resulting from the difference between emissions calculated under an annual accounting and hourly accounting methodology for calendar years 2020 through 2024. SECTION 2. The Council approves the creation of a Cap and Trade Program Reserve in the Electric Fund which will hold revenues from the sale of carbon allowances freely allocated to the electric utility under the State’s Cap and Trade Program. SECTION 3. The Council directs staff to return to Council in 2022 to review the authorization to minimize electric supply portfolio costs via REC Exchanges. SECTION 4. The Council directs staff to return to Council by the end of 2024 with a review of the Carbon Neutral Plan to evaluate the effectiveness of these policy changes and to Attachment A 3 modify them if necessary (with a particular focus on reviewing the use of Bucket 3 RECs to neutralize any residual emissions resulting from the switch to an hourly emissions accounting methodology). and SECTION 5. The Council finds that the adoption of this resolution updating the City’s Electric Supply Portfolio Carbon Neutral Plan is not subject to California Environmental Quality Act (CEQA) review because it is an administrative government activity that will not result in any direct or indirect physical change to the environment (CEQA Guidelines section 15378(b)(5)). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Assistant City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services Exhibit to ATTACHMENT A 1 Adopted by City Council on March 4, 2013 Revised by City Council on _______________ City of Palo Alto Utilities Electric Supply Portfolio Carbon Neutral Plan 1.Carbon Neutral Definition A carbon neutral electric supply portfolio will demonstrate annual net zero greenhouse gas (GHG) emissions, measured at the Citygate1, in accordance with The Climate Registry’s Electric Power Sector protocol for GHG emissions measurement and reporting. by applying the average hourly carbon emissions intensity of the electricity on the CAISO grid to the City’s net load for each hour of the year. 2.Carbon Neutral Plan Objective Reduce the City of Palo Alto’s overall community GHG emissions by achieving carbon neutrality for the Electric Supply Portfolio starting in calendar year 2013 within an annual rate impact not to exceed 0.15 cents per kilowatt-hour (₵/kWh) primarily through the: 1) engagement of customers to increase energy efficiency; 2) expansion of long-term renewable resource commitments; 3) promotion of local renewable resources; 4) continued reliance on existing hydroelectric resources; and 5) meeting short-term balancing requirements and/or neutralizing residual carbon through the use of short-term purchases of renewable resources and/or renewable energy certificates (RECs). 3.Resource Strategies a.Energy Efficiency i.Continue to pursue energy efficiency strategies as identified in the Council- approved ten-year Energy Efficiency Plan. b.Long-term Renewable Resources i.Continue to pursue the City’s Renewable Portfolio Standard (RPS) goal to purchase renewable energy to supply at least 3360% of retail sales by 2015 2030 while ensuring that the retail rate impact of these purchases does not exceed 0.5 ₵/kWh. ii.Continue to pursue local renewable resources through the Palo Alto CLEAN and PV Partners programs. iii.Pursue additional RPS-eligible, long-term renewable resources (beyond the RPS goals) to achieve a target of 100% carbon-free resources based on average year hydroelectric generation. 1 Citygate is the location of the City’s main meter where the City interconnects to the Pacific Gas and Electric transmission system. Emissions associated with of the output of the locally sited fossil gas fired combustions units (COBUG), while not measured at Citygate, will be neutralized. Exhibit to ATTACHMENT A 2 c.Short-term Renewable Resources and Renewable Energy Certificates i.Minimize electric supply portfolio costs by exchanging bundled RECs from the City’s long-term renewable resources (Bucket 1 RECs) for RPS-eligible, unbundled RECs (Bucket 3 RECs) to the maximum extent possible while maintaining compliance with the state’s RPS regulations; i.For calendar years 2013 2020 through 20162024, procure additional short-term renewables, if the price is comparable to that of an un-bundled REC; ii.For calendar years 2013 through 2016, procure or RPS-eligible, un-bundled RECs (Bucket 3 RECs) as needed to achieve carbon neutrality based on actual load and resources; iii.Neutralize anthropogenic GHG emissions associated with the City’s purchase of renewable resources with RPS-eligible unbundled-RECs (Bucket 3 RECs), which may or may not be RPS-eligible. d.Banking and Truing Up i.In the event that there are surplus renewables beyond the City’s load in a particular year, bank as many RECs as allowable under the TCR EPS protocol from qualifying renewables from that year to minimize the need for purchasing RECs in subsequent years. ii.Neutralize emissions associated with market purchases resulting from deviations between expected and actual load and renewable and hydroelectric generation resources with unbundled-RECs, which may or may not be RPS-eligible. For calendar years 2020 through 2024, neutralize residual emissions that result from applying an hourly emissions accounting methodology, rather than a net annual generation methodology, with RPS-eligible unbundled-RECs. 4.Hydroelectric Resources a.Continue to preserve and advocate for existing carbon-neutral hydroelectric generation resources that provide approximately 50% of average year resource needs. b.Plan for and acquire carbon neutral resources assuming average hydroelectric conditions going forward. c.Under adverse hydroelectric conditions, procure RPS-eligible unbundled-RECs, which may or may not be RPS-eligible, to achieve carbon neutrality up to the 0.15 ₵/kWh rate impact limit and seek Council direction if carbon neutrality cannot be achieved within the rate impact limit. d.Under favorable hydroelectric conditions, where carbon neutral resources are expected to be surplus to needs, even after allowable banking, then pursue selling short-term renewable energy, or the renewable attributes, associated with one or more carbon- neutral resources in the portfolio. 5.Financial and Rate Payer Impacts a.In addition to the RPS annual rate impact limit of 0.5 ₵/kWh, the cost of achieving carbon neutrality shall not exceed 0.15 ₵/kWh based on an average hydro year. Exhibit to ATTACHMENT A 3 b.Revenues collected from surplus energy sales related to hydroelectric resources under favorable conditions (e.g. wet years), will be maintained within reserves to adjust for the cost of achieving carbon neutrality under adverse hydroelectric years. c.To the extent available and allowable, revenues from the auction of cap-and-trade allowances may be used to fund resources acquired to meet the carbon neutrality goals. 6.Reporting and Communication a.Develop a communication plan for stakeholders to inform them of the City’s efforts towards achieving a carbon neutral electric supply. b.Submit an annual, verified report of the carbon content of the electric supply portfolio to The Climate Registry. c.b. Provide customers a report of the electric supply portfolio’s carbon content to supplement the mandated Power Content Label. d.Inform large commercial and/or corporate customers of the City’s carbon neutral portfolio and its relevance to their individual corporate sustainability goals. e.c. 7.Implementation Plan The tasks that need to be completed in the next two years pending Council approval of the Carbon Neutral Plan in February 2013 are listed in the table below. Item Timeframe 1.Modify electric supply portfolio models and Energy Risk Management Policies, Guidelines and Procedures to account for Carbon Neutral objectives, balancing, banking of renewable attributes, reporting and financial impacts. By April 2013 2.Modify the Long-term Electric Acquisition Plan (LEAP) to include the carbon neutral objective By June 2013 3.Develop communication plan to inform customers and stakeholders of Carbon Neutral Plan and efforts. February to April 2013 4.Based on response to the Fall 2012 request for proposals, seek approval of new renewable power purchase agreements to meet the City’s RPS up to approximately 100% of the long-term resource needs in average hydro years. December 2012 to June 2013 5.Determine resource needs for CY 2013 through CY 2016 and develop plan to acquire short-term renewable resources. By June 2013 6.Determine long-term renewable purchase volumes for beyond CY 2016 and develop plan to acquire long-term renewable resources. By September 2013 7.Procure RECs as needed to neutralize carbon emissions based on actual load and resources for CY 2013. By May 2014 8.Along with annual Power Content Label, produce and report to customers the carbon intensity of the electric supply portfolio. May/June 2014 and annually thereafter 9.Produce and submit Electric Power Sector (EPS) and Local Governments Operation Protocol (LGOP) reports to The Climate July and October 2014 and annually Exhibit to ATTACHMENT A 4 Registry (TCR) for CY 2013. thereafter 10.Get independent verification of TCR reports and submit audited reports to TCR. By December 2014 and annually thereafter 11.Redesign the PaloAltoGreen program according to Council direction. By December 2013 Attachment B California’s Cap-and-Trade Program Synopsis The Global Warming Solutions Act of 2006, also known as Assembly Bill (AB) 32, authorized the California Air Resources Board (CARB) to develop regulations to lower the state’s greenhouse gas (GHG) emissions to 1990 levels by 2020. CARB developed a cap-and-trade program as one of the strategies to achieve the 2020 goal. Under the cap-and-trade program, an overall limit on GHG emissions from capped sectors is established and facilities subject to the cap are able to trade permits (allowances) to emit GHGs. To do this, entities with emissions are required to hold enough allowances (an allowance being equivalent to one metric ton of greenhouse gas, or CO2e) to cover its emitted output in a given year, also called its ‘compliance obligation.’ Entities can purchase allowances at quarterly auctions held by CARB. The auction has a floor (or reserve) price, which started at $10 per allowance in 2012 and has increased every calendar year by 5% plus the rate of inflation as measured by the Consumer Price Index. As of 2020, the Reserve price is at $16.68 per allowance. Over the last three years, auction prices have settled anywhere between the reserve price (as it did in the May 2020 auction) to $1.83 more (in the May 2019 auction). In addition, certain entities and public power agencies, such as Palo Alto, have been distributed free allowances to reduce the rate shock to customers from the purchase of required allowances. The City’s Electric utility was required to participate in the cap-and-trade program starting in 2013 but does not own or operate fossil fuel-based electricity generation covered by the cap-and-trade regulations. Therefore, the Electric utility does not incur a compliance obligation annually, but still receives free allowances. (The utility is, however, indirectly exposed to cap-and-trade allowance costs to the extent that it makes purchases of generic market power. The generators of this power must pay for allowances to generate and these costs are then passed on to the buyers of that output.) The quantity of allowances received is scheduled to decrease over time—Palo Alto’s allowance allocation was 340,533 in 2013 but is expected to decrease to 110,496 by 2030. As the Electric utility has no compliance obligation, it cannot retain any allowances for future use but must instead sell them at auction. The Palo Alto Gas utility, on the other hand, does incur a compliance obligation annually based on the amount of gas imported and utilized within the City. The Gas utility has been required to participate in the cap and trade program since 2015, and while it also receives free allowances every year, the quantity received does not fully cover the utility’s compliance obligation, and also decreases annually (in 2015 it was based on about 94% of 2011 emissions, but is expected to drop to about 51% of 2011 emissions by 2030). A portion of the allowances it receives can be held towards its compliance obligation, but the remainder must be sold at auction. The share that must be sold increases every year—in 2015, 25% was required to be sold, increasing by 5% annually, reaching 100% in 2030. And any allowances required to make up its compliance obligation must be purchased via auction (the electric utility cannot transfer or sell allowances to the gas utility directly). Attachment B Revenues from the auction sale of allowances in each utility must be used exclusively for the benefit of the ratepayers in that utility. The California Code of Regulations (CCR Title 17, sections 95892 and 95893) details how entities must use those funds, but in general, these can be for 1) the support for, construction of, or purchase of eligible renewable generation resources directly to California (this applies to the electric utility only), 2) the funding of certain energy efficiency rebates, retrofits, and fuel switching programs, 3) funding for programs with demonstrated GHG reductions, 4) non-volumetric return to ratepayers, either on or off bill, and 5) certain administrative, outreach and educational costs related to items 1-4 above. The City Council has also adopted a policy on the use of allowance proceeds (Resolution 9487), with expressed preference that revenues be used for programs and projects rather than being returned to ratepayers in the form of a bill rebate. Per the current regulations, the utility must either spend or rebate the funds received in any given year within 10 years (for example, funds received in 2020 must be spent by 2030, etc.). Attachment C Carbon Neutral Plan Background, Hourly vs. Annual Carbon Accounting Methodologies, In- State vs. Out-of-State Renewable Energy Credits Carbon Neutral Plan Background When Council approved the Carbon Neutral Plan in March 2013 (Staff Report 3550, Resolution 9322), it defined carbon neutrality as a portfolio that “will demonstrate annual net zero greenhouse gas (GHG) emissions, measured at the Citygate, in accordance with The Climate Registry’s Electric Power Sector protocol for GHG emissions measurement and reporting.” In effect, this means that if the City’s carbon neutral supplies (in megawatt-hours (MWh)) equal or exceed the City’s total load on an annual basis then the electric supply would be deemed to be carbon neutral. At the time, this accounting methodology was considered to be the most accurate accounting methodology that could be achieved—or needed. This was in part because in 2013 there was very little solar generation connected to the California Independent System Operator (CAISO) grid, and therefore the grid’s average emissions factors did not vary in the extreme manner that they do today—for example, as in the emissions rate chart shown in Figure 1 below, for CAISO emissions on February 12, 2020. But, more practically, CAISO did not begin to publish hourly grid emissions factor data until 2018, and therefore a more granular accounting methodology was not feasible at that time. Figure 1: CAISO Average CO2 Emissions Rates for February 12, 2020 In addition, the 2013 Carbon Neutral Plan (CN Plan) did not contemplate the type of situation the City finds itself in today, where, on an annual basis, it has an ongoing surplus of carbon neutral supplies (under normal hydro conditions) relative to its load. The original CN Plan addressed the City’s strategies for obtaining carbon neutral supplies equal to its annual load (specifically, it authorized the purchase of unbundled RECs on a short-term basis, with an Attachment C ultimate goal of procuring enough long-term renewable supplies to fully satisfy the City’s annual load). Hourly vs. Annual Carbon Accounting At the February 2020 UAC meeting, there was a consensus opinion that hourly accounting should be used by staff for the evaluation of different supply and demand resources. Staff strongly supports this position too, believing that an hourly accounting framework is the right way to think about long-term procurement decisions. (Doing so in a rigorous way will ultimately require the City to assign a monetary value to carbon emissions—but that topic can be addressed at a later date.) Staff thinks that hourly grid carbon emissions rates are important to incorporate into our internal decision-making and reporting in a variety of ways. There is no immediate cost associated with incorporating hourly accounting into internal decision-making; doing so simply prepares the City for when energy markets and regulations ultimately shift to a more granular carbon accounting paradigm. Adopting hourly carbon accounting instead of annual accounting for measuring the carbon content of the City’s electric supply portfolio, on the other hand, is likely to have a modest financial impact.1 The reason for the additional cost associated with this approach is that, in holding the City’s electric supply portfolio up to a stricter carbon accounting standard, this approach is likely to show, in an average year, that the City’s portfolio is responsible for a small amount of “residual” emissions, even though its supplies match its load on an annual basis.2 In order to maintain the carbon neutral status of its electric supply under an hourly accounting framework, the City would have to purchase additional resources in order to neutralize these residual emissions. If the City were to adopt the use of hourly accounting for its portfolio decisions right now, in order to minimize the cost impact associated with adopting an hourly accounting framework, staff recommends authorizing the purchase of out-of-state renewable energy (also called “unbundled, Bucket 3 RECs”) on a short-term basis to neutralize these residual emissions. Based on current market prices for unbundled RECs, staff estimates the cost associated with neutralizing these residual emissions to be $140,000/year. 1 As described in the February 2020 UAC report, the accounting methodology proposed by staff entails an hourly comparison of the City’s supplies and load, with each hourly net load/supply value assigned the average hourly carbon emissions intensity of the CAISO grid to convert it to an hourly emissions total that the City’s electric portfolio is responsible for. These hourly emissions totals (which can be positive or negative, depending on whether or not the City’s load exceeds its carbon neutral supplies for that hour) would then be summed across the hours in a year. 2 These “residual emissions” occur because the City has a heavy concentration of solar resources in its supply portfolio. Thus, the periods when the City has a surplus of resources relative to its load tend to be in periods when the grid is relatively clean overall; conversely, the periods when the City typically has supply deficits relative to its load tend to be at times when the grid is dirtier overall. Based on 2018 grid emissions and generation data for the City’s resources, staff calculated these residual emissions to be approximately 16,000 MT CO2 for the year. Attachment C In-state, Bundled Renewable Energy (Bucket 1 RECs) vs. Out-of-state, Unbundled Renewable Energy (Bucket 3 RECs) The fundamental difference between bundled renewables (or “Bucket 1 RECs”) and unbundled (“Bucket 3”) RECs, as the diagram in Figure 1 illustrates, is that with bundled renewables both the energy and the REC (which represents the environmental value of the energy) are sold together to the same entity. With unbundled RECs, the energy and the REC are sold separately to different entities. Practically speaking though, Bucket 1 RECs are almost always produced by in-state renewable generators, while Bucket 3 RECs are produced by out-of-state renewable generators. Also, because of limitations placed on the use of Bucket 3 RECs for compliance purposes in the state’s RPS legislation, and because of strong demand for Bucket 1 resources as Community Choice Aggregators (CCAs) ramp up their energy purchases, Bucket 1 RECs currently carry a significant price premium relative to Bucket 3 RECs, in spite of the fact that these two resources represent equivalent amounts of renewable energy. Figure 2: Bundled (Bucket 1) vs. Unbundled (Bucket 3) RECs Diagram3 If the community prefers to implement an hourly carbon accounting framework using California- based Bucket 1 renewables in the long-term, staff can optimize the electric portfolio to minimize costs under this policy. However, the City will not have an easily available opportunity to rebalance the electric portfolio until 2024. As a result, implementing hourly accounting using Bucket 1 renewables right now has significant downsides. The principal drawback to this approach is its cost impact. Due to the aforementioned price premium for Bucket 1 RECs right now, staff estimates the cost of neutralizing the residual emissions with Bucket 1 RECs to be about $620,000/year, as shown in Table 1 below, which is $480,000/year greater than the cost of using Bucket 3 RECs for this purpose. In staff’s view, this represents a significant increase in costs (and therefore a significant reduction in funds that could be allocated either to local 3 Source: Pinkel, D., and Weinrub, A., “What the Heck is a REC?” October 2013. http://www.localcleanenergy.org/files/What%20the%20Heck%20is%20a%20REC.pdf Attachment C decarbonization efforts or rate reduction) with little to no additional environmental value to show for it.4 In the short-term, utilizing Bucket 1 renewables to neutralize residual emissions will not result in the construction of any new renewables, just additional expenditures. Use of Bucket 3 RECs in the short-term, however, has a minimal rate impact and enables the City to adopt hourly accounting for its electric portfolio in anticipation of long-term portfolio rebalancing. Table 1: Summary Comparison of Carbon Accounting Methodology Options Option 1: Annual Accounting (Sell All Surplus) Option 2: Hourly Accounting (with Bucket 1 Renewables) Option 3: Hourly Accounting (with Bucket 3 RECs) Surplus Sales Revenue ($M) $ 2.24 $ 2.24 $ 2.24 Residual Emissions Abatement Cost ($M) $ - $ 0.62 $ 0.14 Net Revenue ($M) $ 2.24 $ 1.62 $ 2.10 Rate Impact (%)* -1.5% -1.1% -1.4% RPS Level (%) (Bucket 1 Only) 45% 50% 45% Energy Supply Level (% of Annual Load) 100% 105% 100% (+5% unbundled RECs) PCL Emissions Intensity (lb CO2/MWh) 9.4 10.4 9.4 Hourly Accounting Emissions Intensity (lb CO2/MWh) 42.3 - 42.3 *Notes: “Rate Impact” assumes all net revenue is devoted to rate reduction. Revenue and cost values are annual averages over the 2020-2030 time period. Furthermore, committing to the use of Bucket 1 renewables in the near-term to neutralize the portfolio’s residual emissions under an hourly accounting approach forces the City to incur a relatively large increase in supply costs to address the emissions impact of procurement decisions made long ago—at a time when the varying hourly emissions profiles of different types of resources was not foreseeable. Rather than imposing such a large cost on the City to account for portfolio decisions made years ago, staff recommends taking hourly emissions accounting impacts into account for future portfolio decisions, as well as reconsidering the use 4 For a full discussion of the environmental merit of Bucket 3 RECs relative to Bucket 1 renewables, please see Attachment B of this August 2019 UAC report. In short though, Bucket 3 RECs represent all of the environmental attributes of the underlying generation, including its emissions profile. And within California there is currently an over-supply of renewable energy at many times of the year, while neighboring states retain a significant reliance on coal and natural gas generators; as a result, out-of-state renewable generation can be more valuable environmentally than in-state renewable generation. Attachment C of Bucket 1 renewables for neutralizing the portfolio’s residual emissions the next time the City has an opportunity to significantly rebalance its supply portfolio—which should be around 2024, when the City will make a final decision on whether or not to renew its Western Base Resource hydro contract. By that time, market conditions and regulations related to Bucket 1 and Bucket 3 RECs may have changed, and the price premium of Bucket 1 renewables relative to Bucket 3 RECs may be lower than it is today. In considering the use of Bucket 3 RECs for neutralizing residual emissions, it’s important to note that the original Carbon Neutral Plan established a goal of obtaining Bucket 1 renewable supplies equal to the City’s load on an annual basis, and it allowed for the use of Bucket 3 RECs to address the reduction in carbon neutral generation that occurs in low hydro years. However, the Plan did not contemplate a scenario where the City has an overall surplus of supplies on an on-going basis (or where grid emissions rates vary significantly over the course of the year). Using Bucket 3 RECs for neutralizing residual emissions remains true to that original Carbon Neutral Plan: the City would still have Bucket 1 renewable supplies equal to its load on an annual basis. This approach simply augments the original Plan by addressing what to do with the City’s supplies that exceed its annual load, and how to address the fact that grid emissions now vary dramatically from hour to hour and season to season. APPENDIX A: ELECTRIC UTILITY RESERVES MANAGEMENT PRACTICES The following reserves management practices are used when developing the Electric Utility Financial Plan: Section 1. Definitions a)“Financial Planning Period” – The Financial Planning Period is the range of future fiscal years covered by the Financial Plan. For example, if the Financial Plan delivered in conjunction with the FY 2015 budget includes projections for FY 2015 to FY 2019, FY 2015 to FY 2019 would be the Financial Planning Period. b)“Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers to the Utility’s Unrestricted Net Assets. c)“Net Assets” - The Government Accounting Standards Board defines a Utility’s Net Assets as the difference between its assets and liabilities. d)“Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital assets (net of related debt) or restricted for debt service or other restricted purposes. Section 2. Supply Fund Reserves The Electric Supply Fund Balance is reserved for the following purposes: a)For existing contracts, as described in Section 4 (Reserve for Commitments) b)For operating budgets reappropriated from previous years, as described in Section 5 (Reserve for Reappropriations) c)For special projects for the benefit of the Electric Utility ratepayers, as described in Section 6 (Electric Special Projects Reserve) d)For year to year balancing of costs associated with the Electric Utility’s hydroelectric resources, as described in Section 7 (Hydroelectric Stabilization Reserve) e)For rate stabilization, as described in Section 1.d) (Rate Stabilization Reserves) f)For operating contingencies, as described in Section 12 (Operations Reserves) g)Any funds not included in the other reserves will be considered Unassigned Reserves and shall be returned to ratepayers or assigned a specific purpose as described in Section 13 (Unassigned Reserves). Section 3. Distribution Fund Reserves The Electric Distribution Fund Balance is reserved for the following purposes: a)For existing contracts, as described in Section 4 (Reserves for Commitments) b)For operating and capital budgets reappropriated from previous years, as described in Section 5 (Reserves for Reappropriations) c)As an offset to underground loan receivables, as described in Section 8 (Underground Loan Reserve) d)To hold Public Benefit Program funds collected but not yet spent, as described in Section 9 (Public Benefits Reserve) e)For cash flow management and contingencies related to the Electric Utility’s Capital Improvement Program (CIP), as described in Section 10 (CIP Reserve) f)For rate stabilization, as described in Section 11.d) (Rate Stabilization Reserves) g)For operating contingencies, as described in Section 12 (Operations Reserves) Attachment D h) Any funds not included in the other reserves will be considered Unassigned Reserves and shall be returned to ratepayers or assigned a specific purpose as described in Section 14 (Unassigned Reserves). Section 4. Reserves for Commitments At the end of each fiscal year the Electric Supply Fund and Electric Distribution Fund Reserves for Commitments will be set to an amount equal to the total remaining spending authority for all contracts in force for the Electric Supply Fund and Electric Distribution Fund, respectively, at that time. Section 5. Reserves for Reappropriations At the end of each fiscal year the Electric Supply Fund and Electric Distribution Fund Reserves for Reappropriations will be set to an amount equal to the amount of all remaining capital and non-capital budgets that will be reappropriated to the following fiscal year for each Fund in accordance with Palo Alto Municipal Code Section 2.28.090. Section 6. Electric Special Projects Reserve The Electric Special Projects Reserve (ESP Reserve) will be managed in accordance with the policies and timelines set forth in Resolution 9206 (Resolution of the Council of the City of Palo Alto Approving Renaming the Calaveras Reserve to the Electric Special Project Reserve and Adoption of Electric Special Project Reserve Guidelines). These policies and timelines are included from Resolution 9206 as amended to refer to the reserves structure set forth in these Reserves Management Practices: a) The purpose of the ESP Reserve is to fund projects that benefit electric ratepayers; b) The ESP Reserve funds must be used for projects of significant impact; c) Projects proposed for funding must demonstrate a need and value to electric ratepayers. The projects must have verifiable value and must not be speculative, or high-risk in nature; d) Projects proposed for funding must be substantial in size, requiring funding of at least $1 million; e) Set a goal to commit funds by the end of FY 2017; f) Any uncommitted funds remaining at the end of FY 2022 will be transferred to the Electric Supply Operations Reserve and the ESP Reserve will be closed; Section 7. Hydroelectric Stabilization Reserve The Hydroelectric Stabilization Reserve is used to manage the supply cost impacts associated with variations in generation from hydroelectric resources. Staff will manage the Hydroelectric Stabilization Reserve as follows: a) Projected Hydro Output: Near the end of each fiscal year, staff will determine the actual and expected hydro output for that fiscal year, compare that to the long-term average annual output level (495,957 MWh as of March 2018), and multiply the difference by the average of the monthly round-the-clock forward market prices for each month of the current fiscal year. b) Changes in Reserves. Staff is authorized to transfer the amount described in Sec. 7(a) from the Operations Reserve to the Hydroelectric Stabilization Reserve for hydro output deviations above long-term average levels, or transfer this amount from the Hydroelectric Stabilization Reserve to the Operations Reserve for hydro output deviations below long-term average levels. c) Implementation of HRA. The level of the Hydroelectric Stabilization Reserve after the transfers described above shall be the basis for staff’s determination, with Council approval, of whether to implement the Hydro Rate Adjuster (Electric Rate E- HRA) for the following fiscal year. d) Reserve Guidelines. Staff will manage the Hydroelectric Stabilization Reserve according to the following guideline levels: Minimum Level $3 million Target Level $19 million Maximum Level $35 million Section 8. Underground Loan Reserve At the end of each fiscal year, the Underground Loan Reserve will be adjusted by the principal payments made against outstanding underground loans. Section 9. Public Benefits Reserve The Public Benefits Reserve will be increased by the amount of unspent Public Benefits Revenues remaining at the end of each fiscal year. Expenditure of these funds requires action by the City Council. Section 10. CIP Reserve The CIP Reserve is used to manage cash flow for capital projects and acts as a reserve for capital contingencies. Staff will manage the CIP Reserve according to the following practices: a) The following guideline levels are set forth for the CIP Reserve. These guideline levels are calculated for each fiscal year of the Financial Planning Period and approved by Council resolution. Minimum Level 20% of the maximum CIP Reserve guideline level Maximum Level Average annual (12 month)1 CIP budget, for 48 months of budgeted CIP expenses2 b) Changes in Reserves: Staff is authorized to transfer funds between the CIP Reserve and the Reserve for Commitments when funds are added to or removed from the Reserve for Commitments as a result of a change in contractual commitments related to CIP projects. Any other additions to or withdrawals from the CIP reserve require Council action. 1 Each month is calculated based upon 1/12 of the annual budget. 2 For example, in the Financial Plan for FY 2021, the 48 month period to use to derive the annual average is FY 2021 through FY 2024. In the FY 2022 Financial Plan, the 48 month period to use to derive the annual average would be FY 2022 through FY 2025 etc. c) Minimum Level: i) If, at the end of any fiscal year, the minimum guideline is not met, staff shall present a plan to the City Council to replenish the reserve. The plan shall be delivered by the end of the following fiscal year, and shall, at a minimum, result in the reserve reaching its minimum level by the end of the next fiscal year. For example, if the CIP Reserve is below its minimum level at the end of FY 2017, staff must present a plan by June 30, 2018 to return the reserve to its minimum level by June 30, 2019. In addition, staff may present, and the Council may adopt, an alternative plan that takes longer than one year to replenish the reserve, or that does so in a shorter period of time. d) Maximum Level: If there are funds in this reserve in excess of the maximum level staff must propose in the next Financial Plan to transfer these funds to another reserve or return them to ratepayers in the funds to ratepayers, or designate a specific use of funds for CIP investments that will be made by the end of the next Financial Planning period. Staff may also seek City Council to approve holding funds in this reserve in excess of the maximum level if they are held for a specific future purpose related to the CIP. Section 11. Rate Stabilization Reserves Funds may be added to the Electric Supply or Distribution Fund’s Rate Stabilization Reserves by action of the City Council and held to manage the trajectory of future year rate increases. Withdrawal of funds from either Rate Stabilization Reserve requires action by the City Council. If there are funds in either Rate Stabilization Reserve at the end of any fiscal year, any subsequent Electric Utility Financial Plan must result in the withdrawal of all funds from this Reserve by the end of the Financial Planning Period. The Council may approve exceptions to this requirement, when proposed by staff to provide greater rate stabilization to customers. Section 12. Operations Reserves The Electric Supply Fund and Electric Distribution Fund Operations Reserves are used to manage normal variations in the costs of providing electric service and as a reserve for contingencies. Any portion of the Electric Utility’s Fund Balance not included in the reserves described elsewhere in these Reserve Management Practices will be included in the appropriate Operations Reserve unless the reserve has reached its maximum level as set forth in Section 12 (e) below. Staff will manage the Operations Reserves according to the following practices: a) The following guideline levels are set forth for the Electric Supply Fund Operations Reserve. These guideline levels are calculated for each fiscal year of the Financial Planning Period based on the levels of Operations and Maintenance (O&M) and commodity expense forecasted for that year in the Financial Plan. Minimum Level 60 days of Supply Fund O&M and commodity expense Target Level 90 days of Supply Fund O&M and commodity expense Maximum Level 120 days of Supply Fund O&M and commodity expense b) The following guideline levels are set forth for the Electric Distribution Fund Operations Reserve. These guideline levels are calculated for each fiscal year of the Financial Planning Period based on the levels of O&M expense forecasted for that year in the Financial Plan. Minimum Level 60 days of Distribution Fund O&M expense Target Level 90 days of Distribution Fund O&M expense Maximum Level 120 days of Distribution Fund O&M expense c) Minimum Level: If, at the end of any fiscal year, the funds remaining in the Supply Fund or Distribution Fund’s Operations Reserve are lower than the minimum level set forth above, staff shall present a plan to the City Council to replenish the reserve. The plan shall be delivered within six months of the end of the fiscal year, and shall, at a minimum, result in the reserve reaching its minimum level by the end of the following fiscal year. For example, if the Operations Reserve is below its minimum level at the end of FY 2014, staff must present a plan by December 31, 2014 to return the reserve to its minimum level by June 30, 2015. In addition, staff may present an alternative plan that takes longer than one year to replenish the reserve. d) Target Level: If, at the end of any fiscal year, either Operations Reserve is higher or lower than the target level, any Financial Plan created for the Electric Utility shall be designed to return both Operations Reserves to their target levels by the end of the forecast period. e) Maximum Level: If, at any time, either Operations Reserve reaches its maximum level, no funds may be added to this Reserve. Any further increase in that fund’s Fund Balance shall be automatically included in the Unassigned Reserve described in Section 13, below. Section 13. Unassigned Reserves If the Operations Reserve in either the Electric Supply Fund or the Electric Distribution Fund reaches its maximum level, any further additions to that fund’s Fund Balance will be held in the Unassigned Reserve. If there are any funds in either Unassigned Reserve at the end of any fiscal year, the next Financial Plan presented to the City Council must include a plan to assign them to a specific purpose or return them to the Electric Utility ratepayers by the end of the first fiscal year of the next Financial Planning Period. For example, if there were funds in the Unassigned Reserves at the end of FY 2016, and the next Financial Planning Period is FY 2017 through FY 2021, the Financial Plan shall include a plan to return or assign the funds in the Unassigned Reserve by the end of FY 2017. Staff may present an alternative plan that retains these funds or returns them over a longer period of time. Section 14. Intra-Utility Transfers between Supply and Distribution Funds Transfers between Electric Distribution Fund Reserves and Electric Supply Fund Reserves are permitted if consistent with the purposes of the two reserves involved in the transfer. Such transfers require action by the City Council. Section 15. Low Carbon Fuel Standard (LCFS) Reserve This reserve tracks revenues earned via the sale of Low Carbon Fuel Credits allocated by the California Air Resources Board to the City, as well as expenses incurred, in accordance with California’s Low Caron Fuel Standard program. At the end of each fiscal year, the LCFS Reserve will be adjusted by the net of revenues and expenses associated with California’s LCFS program. Section 16. Cap and Trade Program Reserve This reserve tracks unspent or unallocated revenues from the sale of carbon allowances freely allocated by the California Air Resources Board to the electric utility, under the State’s Cap and Trade Program. Funds in this Reserve are managed in accordance with the City’s Policy on the Use of Freely Allocated Allowances under the State’s Cap and Trade Program (the Policy), adopted by Council Resolution 9487 in January 2015. City of Palo Alto (ID # 11516) City Council Staff Report Report Type: Action Items Meeting Date: 8/24/2020 City of Palo Alto Page 1 Summary Title: HRC Recommentations on 8 Can't Wait Title: Recommendation to Accept the Human Relations Commission Report on Their Review of 8 Can't Wait Policies in Relation to Current Palo Alto Police Department (PAPD) Policies, and Direction to the City Manager Regarding Revisions to Police Policies From: City Manager Lead Department: Community Services Recommendation Staff recommends that City Council: 1. Accept the Human Relations Commission report on their review of 8 Can’t Wait policies in relation to current Palo Alto Police Department (PAPD) practices, and 2. Review and accept the Palo Alto Police Department response, and direct the City Manager to revise Use of Force policies to: a. explicitly prohibit the use of chokeholds and strangleholds; b. add more comprehensive use of force language with respect to de-escalation; and c. revise deadly force application to require officers to evaluate each situation in consideration of the circumstances in each case and to use other available resources and techniques when reasonably safe and feasible to do so, including that an officer must reasonably believe the use of deadly force is necessary to justify its use. Background In response to the death by police of George Floyd and other such tragedies nationwide, as well as the need for the City as an organization to work more deeply on issues of police reform, racial inequities, and systemic racism, Council recently adopted a resolution expressing support of Black Lives Matter (June 8, 2020- #11414 BLM Movement) and provided feedback on a framework and workplan to address systemic racism (June 15, 2020 – Council Meeting Minutes). Council approved the following five areas of focus: City of Palo Alto Page 2 A. Direct the Human Relations Commission (HRC) to lead the “8 Can’t Wait” campaign and to produce a report on the Black and Brown history and current community in Palo Alto, within 60 days; B. Expand community engagement to include private and public forums, within 30 days; C. Start Council Ad-Hoc Committees with monthly reports on: police hiring, data analysis, practices and policies, transparency, and accountability; D. Direct the Public Art Commission to explore public art honoring diversity, and work with our community to paint “Black Lives Matter” or a similar message near City Hall, as soon as possible; and E. Direct Staff to evaluate which current police functions may be served by other public safety models. This staff report details the response by the HRC on the first part of “A” above, a charge to lead the 8 Can’t Wait campaign. The report on the Black and Brown history and current community experiences in Palo Alto is currently underway and will be presented to Council when completed, tentatively in September 2020. City of Palo Alto Page 3 Discussion The HRC reviewed and discussed the referral from Council at two special and one regular commission meeting on the following dates: June 30, July 9 and July 22, 2020 (Draft HRC minutes from June 30, July 9, July 22). Their work included the following: 1) Review of the 8 Can’t Wait policies and comparison against current PAPD policy and the policies of other police departments; 2) Public Forum on Police Reform – 8 Can’t Wait – with community input and expert panel; 3) Presentation by Assistant Chief Andrew Binder of the Palo Alto Police Department on PAPD review of 8 Can’t Wait (Attachment A); and 4) HRC review and discussion of 8 Can’t Wait policies and formulation of recommendations for Council. Councilmembers Lydia Kou and Greg Tanaka were present at all three meetings and participated in the review and discussion. Below is a summary of the HRC’s 8 Can’t Wait policy recommendations followed by PAPD staff analysis and response. The HRC also provided a memorandum outlining the Commission’s decision making process on 8 Can’t Wait policies along with additional remarks on police reform for Council consideration (Attachment B). 1. Ban Chokeholds and Strangleholds HRC Motion: The HRC recommends that the language “Chokeholds, strangleholds, lateral vascular neck restraints, chest compressions, or any other tactics that restrict blood flow to head or neck” be explicitly prohibited and added to PAPD policy. PAPD Response: Due to the dynamic, violent and unpredictable nature of physical encounters, it is impossible to predict or choreograph how a subject is ultimately taken into custody. During a violent struggle, officers could find themselves on top of a subject and unintentionally compressing their chest or placing pressure on their neck. They might end up in this position not because they are deliberately using a technique intended to restrict air or blood flow, but due to the dynamic nature of being in a physical fight with an actively resisting subject. Officers must have the ability, as allowable by law, to use reasonable force to adapt to the ever-changing unpredictability of violent altercations and take the appropriate actions in carrying out their duties. No policy can realistically predict every possible situation an officer might encounter or account for the unintended consequences of an unpredictable, violent encounter. Consistent with 8 Can’t Wait, and in the spirit of the HRC’s recommendation to Council, the Department recommends revising policy language to explicitly prohibit the use of chokeholds and strangleholds. The Department proactively revised the policy in June 2020 to ban carotid restraints. These explicit prohibitions will restrict officers from using techniques that deliberately restrict blood flow to the head or neck area as well as from using techniques that will restrict air flow to the head while placing pressure on the back or sides of the neck. City of Palo Alto Page 4 2. Require de-escalation HRC Motion: The HRC recommends the model use of force language with respect to de-escalation “prior to using physical, verbal and/or mental, non-deadly and/or deadly force, all law enforcement officers must use proper de-escalation techniques.” The HRC also recommends elaboration with a clear explanation of de-escalation tactics modeled after San Francisco and Mountain View. PAPD Response: The Department agrees with the HRC’s recommendation that the use of force language with respect to de-escalation needs to be more comprehensive and proposes adding to existing policy. Recommended revisions below to the Department’s use of force language with respect to de-escalation aligns it with the HRC’s recommendation and brings our policy into compliance with SB 230 prior to its imposed deadline. Proposed changes include language requiring officers to evaluate the totality of circumstances presented at the time of each situation. When feasible, officers shall consider and utilize reasonably available alternative/de-escalation tactics and techniques that may persuade an individual to voluntarily comply or mitigate the need to use force. Additional changes include clear explanations and guidance for officer actions related to de-escalation tactics to improve decision making, reduce situational intensity, and provide opportunities for outcomes with greater voluntary compliance. Such de-escalation tactics should include self-control, effective communication that attempts to identify possible reasons why a subject may be noncompliant or resisting arrest, creating time and distance from a subject, requesting additional resources, and other alternative options that decrease the likelihood of the need to use force during an incident and increase the likelihood of voluntary compliance. 3. Require warning before shooting HRC Motion: PAPD policy is consistent with 8 Can’t Wait. No change proposed. 4. Requires exhaust all alternatives before shooting HRC Motion: The HRC recommends that the Council adopt the San Francisco Police Department policy which states that, It is the policy of the department to use deadly force only as a last resort when reasonable alternatives have been exhausted or not feasible to protect the safety of the public and/or police officers. PAPD Response: Consistent with the requirements of CA Penal Code 835a, the Department proposes revising its deadly force application policy to require officers to evaluate each situation in light of the particular circumstances in each case and to use other available resources and techniques when reasonably safe and feasible to do so. Furthermore, recommended changes will qualify that an officer must reasonably believe the use of City of Palo Alto Page 5 deadly force is necessary to justify its use. While this policy is not the exact verbiage recommended by the HRC, it strikes the balance between requiring officers to use all other available resources and techniques prior to using deadly force when reasonably safe and feasible to do so and only using deadly force when necessary. 5. Duty to Intervene HRC Motion: PAPD policy is consistent with 8 Can’t Wait. No change proposed. 6. Ban shooting at moving vehicles HRC Motion: The HRC recommends that shooting at moving vehicles be banned unless the person poses a deadly threat. PAPD Response: The Department does not recommend a revision to the current policy on shooting at moving vehicles. Department policy allows for shooting at moving vehicles as a last resort and only under two circumstances in which the vehicle and/or occupant(s) could pose a deadly threat to officers or others. The first circumstance allows for shooting at a moving vehicle if deadly force other than the vehicle is directed at the officer or others and the second circumstance allows for officers to discharge their firearm if the vehicle is being used as a deadly weapon. 7. Require use of force continuum HRC Motion: The HRC recommends that we refer this matter to the Council’s Police Policy Manual, Data, and Hiring Ad Hoc Committee and request that they work with the HRC and PAPD to explore optimizing use of force options. [City Attorney’s note: Under the Charter and Municipal Code, Council should direct the City organization through the City Manager. In addition, Council may choose to refer appropriate tasks to City commissions.] PAPD Response: The Department’s force option policy is based on California Penal Code 835a and the objective reasonableness standard set forth in Graham v. Connor (490 U.S. 386). It is also consistent with contemporary industry best practices. PAPD’s force policies define/limit the types of force and/or weapons that can be used to respond to specific types of resistance and only allows for officers to use that amount of force that is reasonably necessary given the facts and totality of the circumstances known to or perceived by the officer. Consistent with HRC’s recommendation, the City Council is well underway on a comprehensive review of policing practices. The Department is committed to examining City of Palo Alto Page 6 ways to improve the way we articulate and illustrate our existing force options model and reporting back to the HRC and/or Council. 8. Require comprehensive reporting HRC Motion: The current PAPD policy complies with 8 Can’t Wait. No change proposed. Timeline The HRC was given a timeline of 60 days to return to Council with their recomemendations regarding 8 Can’t Wait and a report on the Black and Brown history and current community (community report) in Palo Alto. As mentioned previously, the work on the community report is currently underway and will be agendized when completed, anticipated for Fall 2020. Implementation of any changes as a result of this report, will be dependent on any process/review that needs to take place by the PAPD, Palo Alto Police Officers Association, City Attorney and/or other entity. Resource Impact Resource impacts are dependent on the actions and direction approved by the City Council. Most of the recommendations proposed by the HRC are policy changes. Developing and implementing policy changes would require staff time as would training staff on these changes. It is possible that additional resources may be needed as well, including contract funding for specialized trainers. Policy Implications Recommended revisions contained in this report may require consultation with other parties, such as the Palo Alto Police Officers Association and the City Attorney’s Office, given the potential involvement of legal and contractual obligations. These policy implications will be investigated after Council consideration on this topic. Stakeholder Engagement The HRC discussed 8 Can’t Wait at two special and one regular commission meetings on the following dates: June 30, July 9 and July 22, 2020. Staff and commissioners conducted broad outreach through personal contacts, emails, and social media to inform the public of these meetings. Each of these meetings included an extended period for public comment on the 8 Can’t Wait policies and police reform which is recorded in the minutes. The July 9 meeting also included a presentation by the following panelists followed by a time of Q & A with the commissioners and council members present. • Matthew Clair, Assistant Professor of Sociology, Stanford University City of Palo Alto Page 7 • Robert Jonsen - Chief of Police, Palo Alto • Kenan Moos - Theblackhub.Org • David Alan Sklansky - Co-Director of Criminal Justice Center Stanford • Anand Subramanian – Managing Director at PolicyLink The meeting minutes linked above in this section provides a summary of this panel discussion and other public conversations that took place in July as part of HRC’s implementation of the Council direction to inform and engage the community on these complex topics. Attachments: • ATTACHMENT A - PAPD Review - 8can'twait • ATTACHMENT B - HRC Response to Council on 8 Can't Wait 1 | P a g e ATTACHMENT A DATE: JULY 21, 2020 TO: HUMAN RELATIONS COMMISSION FROM: CHIEF OF POLICE ROBERT JONSEN SUBJECT: PALO ALTO POLICE DEPARTMENT REVIEW AND #8CANTWAIT In September 2016, Campaign Zero issued a report which examined the use of force polices of 91 of America’s 100 largest cities’ police departments. Based on their analysis and findings, Campaign Zero identified 8 main policies that establish restrictions on police use of force. #8cantwait has incorporated Campaign Zero’s findings as part of their campaign for police reform. This memorandum incorporates the 8 policies identified by #8cantwait and an initial Palo Alto Police Department (PAPD) review to inform and further the community dialogue on these complex matters. In consultation with the City Manager, staff proposes that the HRC discuss and provide feedback to staff on current PAPD policies and any recommended revisions. Recommended revisions may require consultation with other parties, such as the Palo Alto Police Officers Association and the City Attorney’s Office, given the potential involvement of legal and contractual obligations. Staff will then advance HRC recommendations along with any additional relevant information to the City Council for approval. 8cantwait - Ban Chokeholds and Strangleholds PAPD Policy 300.3.5: The use of the carotid control hold is not authorized. Discussion: The use of the carotid restraint as well as chokeholds and strangleholds are not authorized. This policy was revised on June 9, 2020. 8cantwait - Require De-escalation PAPD Policy 300.3.1 Conflict Resolution and De-Escalation: Officers should consider, as time and circumstances reasonably permit, conflict resolution and de-escalation techniques, when responding to all types of calls for service and when engaging in self-initiated activity. California SB 230 Use of Deadly Force, Training & Policies: Requires officers to utilize de-escalation techniques, crisis intervention tactics, and other alternatives to force when feasible. It also requires all officers to be trained in alternatives to deadly force and de-escalation techniques. Discussion: PAPD policy requires that officers should consider, as time and circumstances reasonably permit, conflict resolution and de-escalation techniques when responding to all types of calls for service and when engaging in self-initiated activity. California law was recently amended by SB 230 to require officers to utilize de-escalation techniques, crisis intervention tactics, and other alternatives to force when feasible by January 1, 2021. PAPD is currently in the process of revising its policy language so it is consistent with this requirement prior to the law’s imposed deadline. 2 | P a g e 8cantwait - Require Warning Before Shooting PAPD Policy 300.4 Deadly Force Applications states in part: Where feasible, the officer shall, prior to the use of force, make reasonable efforts to identify themselves as a peace officer and to warn that deadly force may be used, unless the officer has objectively reasonable grounds to believe the person is aware of those facts. California AB 392 Deadly Force: Where feasible, a peace officer shall, prior to the use of force, make reasonable efforts to identify themselves as a peace officer and to warn that deadly force may be used, unless the officer has objectively reasonable grounds to believe the person is aware of those facts. Discussion: Consistent with AB 392, PAPD policy requires officers, where feasible, to warn that deadly force may be used. 8cantwait - Requires Exhaust All Alternatives Before Shooting PAPD Policy 300.4 Deadly Force Applications states in part: Officers should evaluate the use of other reasonably available resources and techniques when determining whether to use deadly force. California Penal Code 835(a)(2) Arrest states in part: In determining whether deadly force is necessary, officers shall evaluate each situation in light of the particular circumstances of each case and shall use other available resources and techniques if reasonably safe and feasible to an objectively reasonable officer. Discussion: Requiring officers to “exhaust all other reasonable alternatives” is neither safe nor feasible, given the rapid speed with which a force encounter may unfold. The California Penal Code requires, instead, that officers “use other available resources and techniques if reasonably safe and feasible.” 8cantwait - Duty to Intervene PAPD Policy 300.2.1 Duty to Intercede: Any officer present and observing another officer using force that is clearly beyond that which is objectively reasonable under the circumstances shall, when in a position to do so, intercede to prevent the use of unreasonable force. An officer who observes another employee use force that clearly exceeds the degree of force permitted by law shall promptly report these observations to a supervisor. California SB 230 Use of Deadly Force, Training & Policies: Requires an officer to intercede when present and observing another officer using force that is clearly beyond that which is necessary. Discussion: PAPD Policy and SB 230 require officers to intercede to prevent the use of unreasonable and unnecessary force by another officer. This policy was revised on June 17, 2020. 8cantwait - Ban Shooting at Moving Vehicles PAPD Policy 300.4.1 Shooting At or From Moving Vehicles: Shots fired at or from a moving vehicle are rarely effective. Officers should move out of the path of an approaching vehicle instead of discharging their firearm at the vehicle or any of its occupants. An officer should only discharge a firearm at a moving vehicle or its occupants when the officer reasonably believes there are no other reasonable means available to avert the threat of the vehicle, or if deadly force other than the vehicle is directed at the officer or others. 3 | P a g e Discussion: PAPD Policy allows for officers to discharge their firearm at a moving vehicle as a last resort if deadly force other than the vehicle is directed at the officer or others. PAPD Policy also allows for officers to discharge their firearm at a moving vehicle if it is being used as a deadly weapon. 8cantwait - Require Use of Force Continuum PAPD Policy 300.3 Use of Force states in part: Officers shall use only that amount of force that reasonably appears necessary given the facts and totality of the circumstances known to or perceived by the officer at the time of the event to accomplish a legitimate law enforcement purpose (Penal Code § 835a). The reasonableness of force will be judged from the perspective of a reasonable officer on the scene at the time of the incident. Any evaluation of reasonableness must allow for the fact that officers are often forced to make split-second decisions about the amount of force that reasonably appears necessary in a particular situation, with limited information and in circumstances that are tense, uncertain, and rapidly evolving. PAPD Policy 300.4 Deadly Force Applications: Sets forth specific circumstances in which deadly force can be used. PAPD Policy 309 Conducted Energy Weapon (Taser): Sets forth specific circumstances in which a taser can be used. This policy also includes special considerations for characteristics such as age, size, or when position or activity may result in collateral injury. California SB 230 Use of Deadly Force, Training & Policies states in part: An officer may only use a level of force that they reasonably believe is proportional to the seriousness of the suspected offense or the reasonably perceived level of actual or threatened resistance. California AB 392 Deadly Force states in part: A peace officer is justified in using deadly force upon another person only when the officer reasonably believes, based on the totality of the circumstances, that such force is necessary. Discussion: PAPD’s force option policy is based on California Penal Code 835a and the objective reasonableness standard set forth in Graham v. Connor. It is also consistent with contemporary industry best practices. PAPD’s force policies define/limit the types of force and/or weapons that can be used to respond to specific types of resistance. Further, the force continuum model is outdated and has not been taught in Palo Alto in over a decade. One of its major limitations is that it is unable to provide for an entire set of circumstances based on the uniqueness of a given situation. PAPD’s policy allows for officers to use only that amount of force that is reasonably necessary given the facts and totality of the circumstances known to or perceived by the officer. 8cantwait - Require Comprehensive Reporting PAPD Policy 300.5 Reporting the Use of Force: Any use of force by a member of this department shall be documented promptly, completely and accurately in an appropriate report, depending on the nature of the incident. The officer should articulate the factors perceived and why he/she believed the use of force was reasonable under the circumstances. PAPD Policy 309.6 (Taser) Documentation states in part: Unintentional discharges, pointing the device at a person and laser activation will be documented via CAD and additionally noted in any applicable police report. PAPD Policy 344.2.2 Non-Criminal Activity states in part: The following incidents shall be documented using the appropriate approved report: (a) Anytime an officer points a firearm at any person. 4 | P a g e California SB 230 Use of Deadly Force, Training & Policies: Requires comprehensive and detailed requirements for prompt internal reporting and notifications regarding a use of force incident. Discussion: PAPD Policy and SB 230 require officers to promptly, completely, and accurately document any use of force, including anytime an officer points a taser or a firearm at a person. ATTACHMENT B TO:City Council FROM:Human Relations Commission RE:Report on 8 Can’t Wait and Additional Recommendations ___________________________________________________________________ Council referral: To address police use of force, the City Council, at its June 15​th​, 2020 meeting ‘directed the Human Relations Commission (HRC) to lead the “8 Can’t Wait” campaign’. Objectives: The HRC in their assignment, sought to confirm codes of behavior, which: ●Comply with the 8 Can’t Wait, tailored to Palo Alto and consistent with current California legislation ●Reduce excessive use of force in Palo Alto Police Department (PAPD) operations ●Recognize the challenges for PAPD police officers while protecting the safety of citizens and maintaining law and order ●End the disproportionate and biased outcomes for people of color Approach: The HRC sought public comment, interviews, expert comment, and literature review as background for their deliberation. Public comment was received at City Council June 8 and 15 and at HRC July 9​th and July 22​nd​. Commissioners interviewed PAPD. An expert panel was held July 9​th​. Panelists were: ●Matthew Clair, Assistant Professor of Sociology, Stanford University ●Robert Jonsen - Chief of Police, Palo Alto ●Kenan Moos - Theblackhub.Org ●David Alan Sklansky - Co-Director of Criminal Justice Center, Stanford University ●Anand Subramanian – Managing Director, PolicyLink Limitations: Council expected a report back in 60 days when Council returned from summer break. The short timeline from Council and the social distancing limited an exhaustive collection of input from citizens, experts and police officers. Commissioners focused on assessing the evidence presented by experienced and expert bodies and recommending direction, which best protects people who live, work, study, worship, or pass through Palo Alto. Recommendations: Through hundreds of hours of research and meetings, these are the HRC’s recommendations in regards to 8 Can’t Wait and additional findings.​ One critical point that the Commissioners would like to make is that this is just a beginning step, this is not the final step of the work. ​ The HRC is willing to be part of the continuing process of examining the very complicated elements that we are dealing with. 8 Can’t Wait 1. Ban Chokeholds and Strangleholds Motion: The HRC recommends that the language “Chokeholds, strangleholds, lateral vascular neck restraints, chest compressions, or any other tactics that restrict blood flow to head or neck” be explicitly prohibited and added to PAPD policy. The HRC motion matches the language in Campaign Zero’s, 8 Can’t Wait Model Use of Force. The HRC reasoned that as a model city, Palo Alto should put into its policies the highest possible language. Carotid restraints, which are called out in the model use of force, are not authorized under PAPD policy and therefore not called out in the motion. 2. Require de-escalation Motion: The HRC recommends the model use of force language with respect to de-escalation “prior to using physical, verbal and/or mental, non-deadly and/or deadly force, all law enforcement officers must use proper de-escalation techniques”. The HRC also recommends elaboration with a clear explanation of de-escalation tactics modeled after San Francisco and Mountain View. The HRC motion begins with the Model Use of Force language. Requiring proper de-escalation techniques adds a higher standard. The HRC added ‘Verbal and/or mental” to make the model use of force language more comprehensive. The HRC saw a need for a robust definition of de-escalation techniques. Including examples from well-regarded manuals gives clear guidance. 3. Require warning before shooting Motion​: ​PAPD policy is consistent with 8 Can’t Wait. No change proposed. 4. Requires exhaust all alternatives before shooting Motion: The HRC recommends that the Council adopt the San Francisco Police Department policy which states that It is the policy of the department to use deadly force only as a last resort when reasonable alternatives have been exhausted or not feasible to protect the safety of the public and/or police officers. The HRC opted for the language used in the SFPD Policy Manual over the 8 Can’t Wait. The language recommended struck a balance, expecting all reasonable and feasible alternatives and giving officers ability to make decisions. 5. Duty to Intervene Motion​: ​PAPD policy is consistent with 8 Can’t Wait. No change proposed. Campaign Zero judged that PAPD satisfied this element of 8 Can’t Wait. The HRC was told that body cameras have improved accountability. A culture and expectations are in place to protect officers from retaliation. 6. Ban shooting at moving vehicles Motion: The HRC recommends that shooting at moving vehicles be banned unless the person poses a deadly threat. The HRC motion is basically the 8 Can’t Wait. It is not a categorical ban. This recommendation allows for a driver who poses a deadly threat. 7. Require use of force continuum Motion: The HRC recommends that we refer this matter to the Council’s Policy Manual Ad Hoc Committee and request that they work with the HRC and PAPD to explore optimizing use of force options. The HRC​ ​did not recommend force continuum models as they are decision ladders, which are considered out-dated. The prescriptive models put officers and citizens at unacceptable risk and are judged ineffective in California State Law, by the California Police Chiefs Association and under a Supreme Court decision. On the other hand, judgement-based policies to limit use of force are shown to be harmful to people of color. Dedicated time is needed to author an alternative model, which manages officers’ biases and limits use of force. 8. Require comprehensive reporting Motion: The current PAPD policy complies with 8 Can’t Wait. No change proposed. PAPD reporting was considered compliant with 8 Can’t Wait. Furthermore, given new legislation (AB953), broader and new reporting capabilities are anticipated. Additional considerations: Although the HRC was charged only with examining 8 Can’t Wait, it is clear to each Commissioner that this is only a first step and it is the strong sentiment of the Commission that there be a commitment to substantial police reform. Each Commissioner was given an opportunity to add additional remarks. These follow. Chair Kaloma Smith; 1.Look at policies such as San Francisco’s “CAREN” rules. 2.Discuss what responses require a police officer and which do not (i.e. mental health calls, traffic calls) 3.Be the model of transparency of what new policies look like. Vice Chair Valerie Stinger: 1.Prohibit the hiring or lateral transfer of enforcement and correctional officers with a history of excessive force or misconduct complaints (Police Applicant Disqualification Policy includes statement, June 25, 2020) Remove barriers to accountability for misconduct/Support legislation to create a police misconduct database to certify and decertify officers. 2.Clarify crowd control techniques. 3.Restructure school response officers, traffic control, and emergency response; particularly, alternatives for mental health or behavioral crisis. Ensure response teams are trained and suited to handle the situation. Look at model cities and their programs (Eugene, Oregon Cahoot’s; Denver, Colorado STAR). 4.Prepare a metric to measure the progress against objectives. Be prepared to assess and revise strategies for change. Officers should be measured on the level of force used given the level of threat. A breakdown by race should be shown for each review period, at least annually. The officers and the force should show decreasing disproportionate and biased outcomes for people of color. 5.Commit to police reform and authorize responsibility for recommending and monitoring police reform. Commissioner Steven Lee: 1.The City Council should identify and reassign responsibilities that can be transferred out of the PAPD to non-law enforcement professionals who are better equipped to respond to those specific needs. 2.Reallocate associated PAPD funds and increase more generally funds for community and social services. 3.Expand Office of Human Services. 4.Double HSRAP Funding for mental health, homeless and other human services. 5.Double Human Services Emerging Needs Fund. 6. Housing. Housing. Housing. Commissioner Patti Regehr: 1.City Council should redirect funds from the police department into behavioral mental health emergency response by property trained professionals who can, if necessary, de escalate a crisis and recommend follow up services. 2.Establish a policy to prosecute officers who engage in excess use of force. 3.Provide disciplinary consequences for failure of an officer to turn on body or vehicle cameras when interacting with citizens. 4.Include mental health, sensitivity and empathy characteristics in hiring, promotion and retainment policies for police personnel. 5.Use unarmed personnel for traffic control. 6.Establish or restore adequate funding for vital services that protect and enhance community health including library, children’s theater and other community services and work with these agencies to assure that they are doing all they can to encourage diversity. 7.Include the HRC and other community activists on City Council subcommittees on transparency and accountability as well as diversity. 8.Either establish a police review board or empower the HRC to review complaints against the police department. Reviews should be transparent and conducted outside of the police department. 9.Include HRC and City Council on police personnel review. 10.Require that the Chief of Police participate in HRC meetings on a quarterly basis or when requested by the HRC. 11.Publicly disclose racial, ethnic, gender and sexual orientation statistics for Palo Alto Police and all City employees, council members and commission members. 12.Work with the PAUSD to assure that students from the Tinsley Program are fully integrated into the student community including before and after school events. 13.Police off school campuses as school resource officers. 14.For greater accountability we need to rethink the role of staff when working with the City Council and Commissions. Staff should be there to provide resources, serve the needs of elected and appointed officials and not function as gatekeepers. All staff recommendations based on commission decisions should be approved by that commission before being submitted to City Council or the public. Commissioner Daryl Savage: 1.Increase police training focused on: implicit bias, mental illness, cultural competency, racism, and responding to age-related individuals. Specifically, implicit bias training should start ASAP and be mandatory for all officers. 2.Enhance the collection of data on vehicle stops. 3.Review the role of school resource officers. 4.Increase community briefings via public meetings, coffee shop hours, etc. Addendum I 8 Can’t Wait 1.Ban chokeholds and strangleholds Allowing officers to choke or strangle civilians results in the unnecessary death or serious injury of civilians. Both chokeholds and all other neck restraints must be banned in all cases. Law enforcement officers shall not use chokeholds, strangleholds, Lateral Vascular Neck Restraints, Carotid Restraints, chest compressions, or any other tactics that restrict oxygen or blood flow to the head or neck. 2.Require de-escalation Require officers to de-escalate situations, where possible, by communicating with subjects, maintaining distance, and otherwise eliminating the need to use force. Prior to using physical, non-deadly and/or deadly force, all law enforcement officers must use proper de-escalation techniques 3.Require warning before shooting Require officers to give a verbal warning in all situations before using deadly force. 4.Requires exhausting all alternatives before shooting Require officers to exhaust all other alternatives, including non-force and less lethal force options, prior to resorting to deadly force. 5.Duty to intervene Require officers to intervene and stop excessive force used by other officers and report these incidents immediately to a supervisor. 6.Ban shooting at moving vehicles Ban officers from shooting at moving vehicles in all cases, which is regarded as a particularly dangerous and ineffective tactic. While some departments may restrict shooting at vehicles to particular situations, these loopholes allow for police to continue killing in situations that are all too common. 62 people were killed by police last year in these situations. This must be categorically banned. 7.Require use of force continuum Establish a Force Continuum that restricts the most severe types of force to the most extreme situations and creates clear policy restrictions on the use of each police weapon and tactic. 8.Require comprehensive reporting Require officers to report each time they use force or threaten to use force against civilians. Comprehensive reporting includes requiring officers to report whenever they point a firearm at someone, in addition to all other types of force. City of Palo Alto (ID # 11551) City Council Staff Report Report Type: Action Items Meeting Date: 8/24/2020 City of Palo Alto Page 1 Summary Title: Update and Potential Direction on City of Palo Alto's Race and Equity Work Title: Update and Potential Direction on City of Palo Alto's Race and Equity Work From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that Council accept an update on the City’s Race and Equity efforts and provide possible direction to staff on next steps. Background On June 8, 2020, the City Council unanimously passed a resolution affirming that Black Lives Matter and committed the City to addressing systemic racism and bias. This resolution also honored the lives of George Floyd, Breonna Taylor, Ahmaud Arbery, and many others that have fallen victim to violence at the hands of authorities. That resolution can be found online as part of City Manager’s Report (CMR) #11414 https://www.cityofpaloalto.org/civicax/filebank/documents/77100. In addition to the resolution, the City Council also unanimously directed staff to: a. Return with a framework to review, report on, and improve Palo Alto Police policies and practices focused on accountability and eliminating any potential incidents of racism or discrimination; b. Report on possible improvements to police hiring practices; and c. Begin a diversity and inclusion initiative throughout the City. In response to that direction, staff returned to the City Council on June 15, 2020 with a draft framework to inform Palo Alto’s focus over the short, medium, and long-term. This racial equity framework was transmitted as Attachment A to CMR #11441, which can be found online here: https://www.cityofpaloalto.org/civicax/filebank/documents/77273. City of Palo Alto Page 2 Through the discussion on June 15, 2020, the City Council provided direction on the proposed initial race and equity work plan and included the following elements in their motion: a. Direct the Human Relations Commission to lead the “8 Can’t Wait” campaign and to produce a report on the black and brown history and current community in Palo Alto, within 60 days; b. Expand community engagement to include private and public forums, within 30 days; c. Start Council Ad-Hoc committees with monthly reports on: policing hiring, data analysis, practices and policies, transparency, and accountability; d. Direct the Public Art Commission to explore public art honoring diversity and work with our community to paint “Black Lives Matter” or a similar message near City Hall, as soon as possible; and e. Direct Staff to evaluate which current police functions may be served by other public safety models. Separately on this agenda for August 24, 2020, the City Council will consider the Human Relations Commission recommendations on the “8 Can’t Wait” campaign. On June 23, 2020, at the final City Council meeting before its July recess, Mayor Adrian Fine announced councilmember assignments to four ad hoc committees. The committees were tasked with convening individually and discussing the respective domains to return to the full City Council for potential direction, reform, and improvements. The ad hoc committees and their members are detailed below:  Police Policy Manual, Data, and Hiring – Vice Mayor Tom DuBois and Councilmembers Alison Cormack and Lydia Kou  Public Safety Alternative Models – Councilmembers Liz Kniss and Greg Tanaka  Police Accountability and Transparency – Vice Mayor Tom DuBois and Councilmember Eric Filseth  Citywide Diversity and Inclusion – Mayor Adrian Fine and Councilmembers Alison Cormack and Liz Kniss Each of these ad hoc committees convened over the summer. Discussion Ad hoc Work Throughout July and August, the ad hoc committees have each convened multiple times and discussed items of interest with staff. Communication between staff and the ad hoc committees is ongoing. The information transmitted from staff to the City Council was included in CMR #11544 (online at: https://www.cityofpaloalto.org/civicax/filebank/documents/78019). As more information is sent to the ad hoc committees, it will be posted online here: City of Palo Alto Page 3 https://www.cityofpaloalto.org/raceandequity/council_ad_hoc_committees.asp. On August 24, 2020 each ad hoc will report out on their work and potential next steps through a powerpoint presentation. Those updates are included as Attachment A to this report. The Next Steps from each of the ad hoc committees (as seen in Attachment A) are listed below for consideration by the full City Council): Police Policy Manual, Data, and Hiring Ad Hoc  Review best practices and gather thought leader input o Explore opportunities for external parterships for peer review and data analysis, such as affiliations with Stanford University’s SPARQ o Consider data analysis with an outside entity o Incorporate suggestions from the Human Relations Commission  Convene, analyze and recommend changes Public Safety Alternative Models Ad Hoc  Conclude preliminary evaluation of Public Safety Alternative Models  Pursue opportunities for “apples to apples” comparisons to other jurisdictions including collaboration with Stanford University Accountability and Transparency Ad Hoc  Reviewing the Public Records Request process and information releases from the Police Department as well as examining the potential to remove redactions from the Police policy Manual  Reviewing Independent Police Auditor policies and turnaround time  Reviewing the Disciplinary record policy, specifically retention, use for hiring, and transfers  Examine options for publicly reporting statistical summaries and review the policies for releasing information about individual cases *As part of this ad hoc, a request for a legislative update on police reform was made and is discussed below. Citywide Diversity and Inclusion Ad Hoc  Further City Council discussion and possible adoption of Mission Statement  Establish ongoing City Council updates, including work with professional organizations and other jurisdictions  Continue engagement with the community and workforce on race and equity efforts State Legislative Summary Report Staff has compiled a list of pending state legislative bills pertaining to police reform. In total, there are 12 measures that are under consideration, with a majority specifically addressing ‘use of force’ tactics, policies, and reporting of personnel records. Details about these can be found City of Palo Alto Page 4 in Attachment C and the City’s state lobbyist will be available for questions and verbal updates at the August 24th meeting. Additional Race & Equity Work In addition to the ongoing work with each of the ad hoc committees, the City also engaged with this work through other avenues and approaches. Per City Council direction, the Human Relations Commission met to discuss 8Can’tWait and discuss how the City of Palo Alto Police Department’s current policies align with Campaign Zero’s recommendations. That work is more fully discussed in CMR #11516, which is also on the August 24, 2020 agenda for discussion and direction and can be found online here: https://www.cityofpaloalto.org/civicax/filebank/documents/78000. A few highlights of other work are included below. A more detailed timeline and calendar of events is included in Attachment B; some events may be subject to change. The City of Palo Alto’s web page for Race and Equity (www.cityofpaloalto.org/raceandequity) will be updated to reflect the most recent times and event dates.  The Human Relations Commission (HRC) is also soliciting feedback and input from the community with stories about their families in Palo Alto as well as about experiences with racism in Palo Alto as part of the #PaloAltoSpeaks campaign. They held a listening forum on Thursday, August 13, 2020. A few members of the community shared their experience with the HRC and the public. The campaign is ongoing and people can share their experiences through different mediums. More information on the campaign can be found online at https://www.cityofpaloalto.org/raceandequity/share_your_story.asp. Though ongoing, the HRC is asking for all submissions to be shared by September 7, 2020 so the HRC can share the submissions with the City Council as follow up to the task assigned by the City Council in June.  The Library Department, in partnership with the Stanford University Bill Lane Center for the American West and the Friends of the Palo Alto Library, will be hosting a virtual conversation with Richard Rothstein, the author of “Color of Law: A Forgotten History of How Our Government Segregated America.” The book “Color of Law” was selected as the “Palo Alto Reads” book for 2020. More information can be found on this program can be found at: https://www.cityofpaloalto.org/news/displaynews.asp?NewsID=4961 Staff has also begun extending this list of upcoming activities related to race and equity that can effectively reinforce continuation and incorporation of equity themes into a calendar for 2021 and beyond. The current City Council discussion can provide additional direction to staff on the particular focus areas for the City’s overall Race and Equity strategy so that staff can continue to build the extended work plan for these activities. Stakeholder Engagement City of Palo Alto Page 5 Engaging the community at large to provide direction for the City’s Race and Equity strategy has been a priority throughout this process. The City continues to engage the community through a series of Race and Equity conversations. Updates on the City’s efforts can be found on the Race and Equity webpage on the City website (www.cityofpaloalto.org/raceandequity). Attachment B also provides a summary of communications and engagement efforts to date as referenced above. Resource Impact There is no fiscal impact to report at this time. Significant staffing resources have been dedicated to this work and future resource impacts are dependent on the actions and direction approved by the City Council. Environmental Impact This is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). Attachments:  Attachment A: Race and Equity Ad Hoc Council Updates  Attachment B: Race and Equity Community Engagement Efforts  Attachment C: State Legislative Summary as of August 19, 2020 August 24, 2020 www.cityofpaloalto.org/raceandequity RACE AND EQUITY  UPDATES CITY COUNCIL Ad Hoc  Committees  ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES Citywide Diversity and Inclusion Ad Hoc www.cityofpaloalto.org/raceandequity Members: Mayor Adrian Fine, Councilmember Alison Cormack,  Councilmember Liz Kniss ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES www.cityofpaloalto.org/raceandequity •Purpose: This ad hoc is exploring opportunities to increase equity and inclusion throughout the City, both as  an organization and as a community. Potential areas of focus include training, hiring and internal measures to  increase equity and diversity. •What has happened so far: •Exploring options for collaborating with neighboring jurisdictions •Analyzing resources for diversity and inclusion best practices/lessons learned through professional groups •Discussed Diversity and Inclusion elements for potential Citywide •Focus of efforts will be both on City initiatives as well as Community engagement •Developed draft mission statement for Council consideration, see below: •The City of Palo Alto is committed to creating a respectful, fair, and professional workplace and city.  We will identify inequities and prejudices, welcome diverse perspectives, and use a collaborative  approach to create an environment that works for everyone. CURRENT AD HOC STATUS ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES www.cityofpaloalto.org/raceandequity •For Council Discussion: •Review Draft Mission Statement •Discuss timeline and elements of Citywide Diversity and Inclusion focus areas •Explore and pursue partnerships with other professional organizations/jurisdictions •Discuss approaches to include City Boards, Commissions, and Committees in overall  effort  •Next Steps: •Further City Council discussion and possible adoption of Mission Statement •Establish ongoing City Council updates, including work with professional organizations  and jurisdictions •Continue engagement with the community and workforce on race and equity efforts ITEMS FOR DISCUSSION & NEXT STEPS ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES Police Policy Manual, Data, and Hiring Ad Hoc www.cityofpaloalto.org/raceandequity Members: Vice‐Mayor Tom  DuBois, Councilmember Alison Cormack,  Councilmember Lydia Kou ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES www.cityofpaloalto.org/raceandequity Purpose: This ad hoc is exploring current Police Department approaches including how the  department regularly interacts with the community, and the data collected about these  interactions. It is also looking at current Police Department hiring and promotional processes  and improvements. Goals ●Suggest updates to specific policies to eliminate/minimize racial bias and deadly force  and to increase de‐escalation ●Suggest changes to hiring and transfer policies ●Suggest points to address in upcoming Labor negotiations ●Suggest additional data to track to inform decision making CURRENT AD HOC STATUS ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES www.cityofpaloalto.org/raceandequity Workplan: •Review Memo of Agreement, Police Policy Manual, and other information from  Police Department (internal sources) •Review best practices and gather thought leader input (external sources) •Convene, analyze, and recommend changes What has happened so far: •Review Memo of Agreement, Police Policy Manual, and other information from Police  Department ■Extensively reviewed the Police Policy Manual, learned about current approaches ■Reviewed labor agreements and State law and other requirements related to discipline process,  etc. ■Received information regarding Police contact data requirements and new state legislation  including the Racial and Identity Profiling Act (RIPA) ■Discussed status of proposed assembly bills, getting lobbyist update at Council CURRENT AD HOC STATUS ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES www.cityofpaloalto.org/raceandequity Next Steps •Review best practices and gather thought leader input • Explore opportunities for external partnerships for peer review and data analysis, such as  affiliations with Stanford University SPARQ •Consider data analysis with an outside entity • Incorporate suggestions from the Human Relations Commission •Convene, analyze and recommend changes ITEMS FOR DISCUSSION & NEXT STEPS ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES Police Accountability and Transparency Ad Hoc www.cityofpaloalto.org/raceandequity Members: Vice‐Mayor Tom  DuBois, Councilmember Eric Filseth ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES www.cityofpaloalto.org/raceandequity Purpose: This ad hoc is focusing on how information is shared with the community and the  timeliness of information sharing. It is looking at current approaches to review police  incidents and other accountability measures. Goals ●Suggest updates to specific policies around data transparency and accountability ●Suggest changes to Union contract to increase accountability ●Suggest additional data to track to inform decision making CURRENT AD HOC STATUS ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES www.cityofpaloalto.org/raceandequity Workplan: •Review existing city policies with appropriate staff: oReview of data flow from initial dispatch through the life of a request for support/case oReview of IPA process, public records request process, open data •Review Best Practices / Thought Leaders •Ad‐hoc to write up suggested changes What has happened so far: oFlow chart of process and data  in Use of Force (UOF)  and Internal Affairs (IA)/Citizen Complaints  oPalo Alto Police Department created a Community Briefing on Accountability and Transparency (presented by Acting Captain Reifschneider; link: https://www.youtube.com/watch?v=aLu3Lbx2sVE) oReviewed State legislation that would impact accountability and transparency CURRENT AD HOC STATUS ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES www.cityofpaloalto.org/raceandequity Next Steps: • Public Records request process • Policy on default approach to information; removing redactions from policy manual •IPA policies and turnaround time • Disciplinary record policy ‐retention, use for hiring, transfers • Statistical summary public reporting  • Individual case policy ITEMS FOR DISCUSSION & NEXT STEPS ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES Public Safety Alternative Models Ad Hoc www.cityofpaloalto.org/raceandequity Members: Councilmember Greg Tanaka, Councilmember Liz Kniss ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES www.cityofpaloalto.org/raceandequity •Purpose: This ad hoc will examine alternative service delivery options for public safety,  including a Council budget related referral regarding fire services and medical response. •What has happened so far: •Ad hoc discussed issues, conducted research and review options.  •Councilmembers independently met with Sunnyvale Mayor Larry Klein. •Engaged with Sunnyvale’s Deputy Chief in a 2‐hour learning session to understand model.  •Staff has researched alternative service options detailed in Data Transmittal #1 and  available at www.cityofpaloalto.org/raceandequity •Councilmembers were provided the opportunity to participate in ride‐alongs with both  Police and Fire. CURRENT AD HOC STATUS ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES www.cityofpaloalto.org/raceandequity Discussion: •Unique nature of Palo Alto Palo Alto has its own medical transport service; one of only a few cities in the state. (Counties are typically responsible for medical transport.) •Advantages and disadvantages of the Sunnyvale model, including cost considerations. •Alternative models or services for public safety •Opportunities to partner with County or others for models such as Psychological Emergency Response Teams  (PERT) or Mobile Crisis Response Team (MCRT) Next Steps: •Conclude evaluation of Public Safety Alternative Models •Pursue opportunities for “apples to apples” comparisons to other jurisdictions including collaboration with Stanford University ITEMS FOR DISCUSSION & NEXT STEPS ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES STAY INFORMED Gain Race and Equity Updates at:  CityofPaloAlto.org/raceandequity Sign Up for City Updates at:  CityofPaloAlto.org/newslettersignup Connect with Us on Social Media:  www.cityofpaloalto.org/connect www.cityofpaloalto.org/raceandequity ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES ATTACHMENT A: RACE AND EQUITY UPDATES CITY COUNCIL AD HOC COMMITTEES     Date: 8/20/2020    Race and Equity Community Engagement Efforts     A list of completed and in process community engagement and communications activities on  race and equity can be found below.     Completed      Temporary Black Lives Matter Mural Installation: Sixteen artists were selected to install  a Black Lives Mural on Hamilton Avenue. The temporary installation was completed in  late June and is anticipated to remain in place through September 30, 2020.     Police Community Briefings began on July 1 and are a series of four learning sessions.  YouTube comments are open for the public to comment. Police Department  Introduction: July 1, Use of Force: July 8, Search and Seizure: July 15 and Transparency  and Accountability: July 22   Q and A session with Kaloma Smith, City Manager Ed Shikada, and Chief Jonsen‐  completed on July 2 and available here. The recorded event is available on YouTube  and community comments are still being taken.    8 Can’t Wait Panel Discussion, hosted by the Human Relations Commission –  completed on July 9 and available here.    Chief Robert Jonson – Palo Alto Police Department   David Alan Sklansky ‐ Co‐Director of Criminal Justice Center  Stanford https://law.stanford.edu/directory/david‐alan‐sklansky/   Kenan Moos ‐ Justice Vanguard Foundation theblackhub.org     Matthew Clair – Assistant Professor of Sociology, Stanford University  https://sociology.stanford.edu/people/matthew‐clair   Anand Subramanian ‐ Managing Director, Policy Link https://www.policylink.org/   8 Can't Wait Review with the Human Relations Commission and Public Forum‐ July 22  at 6 p.m. Meeting video here. Review by staff and HRC and public forum took place at  this meeting. Recommendations and input received will be presented to the City Council  during the August 24 study session.    Foothills Park Panel Discussion Parks and Recreation Commission (PRC) Meeting– July  28 at 7 p.m. Meeting video here. Panelists included:    Lester Hendrie, retired Foothills Park Supervising Ranger  ATTACHMENT B: RACE AND EQUITY COMMUNITY ENGAGEMENT EFFORTS  Professor Nicole M. Ardoin, Sykes Family Director of the Emmet Interdisciplinary  Program in Environment and Resources in the School of Earth, Energy, and  Environmental Sciences   Alex Von Feldt, Executive Director, Grassroots Ecology    Roger Smith, Co‐Founder and Director of the Friends of the Palo Alto Parks   Taylor Peterson, Director of Biological Analysis with MIG, Inc.   Human Relations Commission Public Forum on the Current and History of Black and  Brown Community Experiences: August 13. Discussion and public forum sharing  experiences. Go here for the meeting video.    Expanded Communications: Staff is currently working on a series of communications to  engage and inform on race and equity.   o A new website was developed: www.cityofpaloalto.org/raceandequity.   o Items have been made available online through both an initial blog post and an  additional blog post and an email address was created to gain input. The email  address is:  raceandequity@cityofpaloalto.org  In Progress   Palo Alto Speaks: In June, the City Council directed “the Human Relations Commission to  return with a report on the Black and Brown history and current community in Palo  Alto.” A new engagement effort Palo Alto Speaks seeks to engage the community and  collect the stories of Black and Brown people in Palo Alto, both past and present. Stories  collected will be combined into a report that the Human Relations Commission (HRC)  will share with the City Council in September/October. We are encouraging the  community to join the City’s race and equity conversation by sharing their story or their  family’s story through written messages, photos, or videos; are all welcome. For more,  go here: www.cityofpaloalto.org/paloaltospeaks   Palo Alto Reads Author Series: The Library is honored to announce its first virtual Palo  Alto Reads event and book selection, The Color of Law: A Forgotten History of How Our  Government Segregated America by Richard Rothstein. Published in 2017, The Color of  Law tells the history of the design and segregation of American communities along racial  lines. Rothstein focuses on many Bay Area communities, including Palo Alto, which  thwarted efforts back in 1947 to create integrated and working‐classing housing near  Stanford University. This historical book provides great context into exploring today’s  ongoing inequities in housing, education, income and health. From August 15 to  September 15, free copies of The Color of Law will be available at Mitchell Park  and Rinconada Libraries during Sidewalk Service hours. We hope that Palo Alto joins in  this community read and conversation. We will be offering a series of events for all ages  during this time, including a virtual conversation with author Richard Rothstein on  ATTACHMENT B: RACE AND EQUITY COMMUNITY ENGAGEMENT EFFORTS Thursday, August 27 at 7 p.m. This author event is sponsored and hosted by  The Bill  Lane Center for the American West of Stanford University. Palo Alto Reads is joint  partnership with the City of Palo Alto and its Race & Equity Initiatives. Many thanks to  the City, Stanford University and the Friends of the Palo Alto Library for their support!     Children’s Theater Collaboration: This summer, the Children’s Theatre is also  collaborating with the Breath Project, an initiative led by local Bay Area Artists, including  Children’s Theatre teaching artist Gamal Abdel Chasten, in collaboration with 18  theatres from across the country, to archive works created by artists of color that speak  to our current socio/economic/emotional climate.  Children’s Theatre Artistic Director,  Judge Luckey, will lead a national team of TYA (Theatre for Young Audiences) artists to  curate youth submissions to the Breath Project, as well as developing an original digital  performance with Children’s Theatre participants, that will be 8‐minutes‐and‐46‐ seconds in length.      Black Lives Matter Mural Artist Panel Discussion: The Public Art Commission is hosting  panel discussion with the Black Lives Matter Mural artists on September 10, 2020 at  6:00 p.m.     Public Art Commission Race and Equity Programming and Focus: The Public Art  Commission will dedicate their September meeting to a discussion about race and  equity. They are also planning several programmatic works through February.      New Public Art Exhibit Early 2021‐ New Americans Exhibition and Sanctuary Print  Project Residency: This exhibition will feature artists who are new to the United States  and whose experiences as new Americans are reflected in their art practice. The  exhibition will also feature the Sanctuary Print Project, a participatory mobile  printmaking studio which offers printmaking experiences for the public.      Art Center and Junior Museum & Zoo Collaboration: The Art Center and Junior  Museum & Zoo continue their Working Together partnership, which works towards  diversifying the museum field through a pipeline of engagement for youth diverse in  ethnicity and ability levels that include paid teen opportunities, paid undergraduate  internships, and paid graduate fellowships.     Black Index Public Art Exhibit Summer 2021: The artists in The Black Index build upon  the tradition of Black self‐representation as an antidote to colonialist images. Their  translations of photography challenge the medium’s long‐assumed qualities of  objectivity, legibility, and identification: the phenomenological premise of the  photographic index. Using drawing, sculpture, and digital technology to transform the  recorded image, these artists question our reliance on photography as a privileged  source for documentary objectivity and historical understanding. The works included in  the exhibition offer an alternative practice: a Black index. In the hands of these six  artists, the index still serves as a finding aid for information about Black subjects, but it  ATTACHMENT B: RACE AND EQUITY COMMUNITY ENGAGEMENT EFFORTS also challenges viewers’ desire for classification and, instead, redirects them toward  alternative information.      Children’s Theater Performances Time TBD: The Friends of the Palo Alto Children’s  Theatre (FOPACT) have commissioned local Bay Area artists, representing under‐served  communities, to create virtual theatrical productions for young audiences.  The first of  these theatrical productions, THE LAND OF LOST SOCKS, written and performed by  Gamal Abdel Chasten, was presented via YouTube Live, with a subsequent posting on  YouTube, on Saturday, July 11.  In the first weekend, the live production drew more  than 1,000 unique viewers, estimated as an audience of 2,000‐3,000 audience  members.  Next Up: The world premiere of a puppet musical, based on the fable THE  MOUSE AND THE LION, written by Carlos Aceves, with music and lyrics by Ron Sheffer.      The Art of Disability Culture exhibition, Winter 2022:  Thirty years after the passing of  the Americans With Disabilities Act (ADA) disability arts organizations, individual artists,  and informal groups or artist collectives are challenging expectations and claiming their  seats at the table, their slots in the gallery, or their time at the microphone. Every artist  or designer featured in this exhibition has one or more visible or invisible disabilities. Far  from presenting a single monolithic point of view, they use a wide range of techniques  and approaches in personal ways to investigate the complex, nuanced and wide range  of experiences and identities that contribute to disability culture.     Ongoing Library Programming: The Library is developing ongoing programming focused  on race and equity.   ATTACHMENT B: RACE AND EQUITY COMMUNITY ENGAGEMENT EFFORTS ATTACHMENT C Date: 8/20/2020 From: City Manager's Office State Legislative Summary Memo The following page contain a list of 12 legislative bills currently under consideration by the State Legislature. The document notes where the bills are in the process and also provides a summary of each bill as of August 19, 2020. The City's State lobbyist will be present at the August 24, 2020 City Council meeting to provide additional context around each bill. Of note: the Senate Public Safety Committee has concluded all its bill hearings for the year, thus the bills that were scheduled to be heard in the Committee, and never received a hearing, most likely will not move forward. Status Report Wednesday, August 19, 2020   POLICE REFORM   AB 66    (Gonzalez D)   Police: use of force.   Current Text: Amended: 7/21/2020   html   pdf Last Amended: 7/21/2020 Status: 8/17/2020-In committee: Referred to APPR. suspense file. Location: 8/17/2020-S. APPR. SUSPENSE FILE Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Calendar: 8/20/2020  Upon adjournment of Session - John L. Burton Hearing Room (4203)  SENATE APPROPRIATIONS SUSPENSE, PORTANTINO, Chair Summary: Would prohibit the use of kinetic energy projectiles or chemical agents, as defined, by any law enforcement agency to disperse any assembly, protest, demonstration, or other gathering of persons, except in compliance with specified standards set by the bill, and would prohibit their use solely due to a violation of an imposed curfew, verbal threat, or noncompliance with a law enforcement directive. The bill would prohibit the use of chloroacetophenone tear gas or 2-chlorobenzalmalononitrile gas by law enforcement agencies.   AB 329    (Kamlager D)   Victim compensation: use of excessive force by law enforcement.   Current Text: Amended: 7/8/2020   html   pdf Last Amended: 7/8/2020 Status: 7/8/2020-From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on PUB. S. Location: 7/8/2020-S. PUB. S. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Existing law provides for state compensation of victims and derivative victims of specified types of crimes for specified losses suffered as a result of those crimes. Existing law defines various terms for purposes of these provisions, including “crime.” This bill revises the definition of “crime” to include the use of excessive force by a law enforcement officer regardless of whether the law enforcement officer is arrested or charged with commission of a crime or public offense.   AB 1022    (Holden D)   Peace officers: use of force.   Current Text: Amended: 7/30/2020   html   pdf Last Amended: 7/30/2020 Status: 8/17/2020-In committee: Referred to APPR. suspense file. Location: 8/17/2020-S. APPR. SUSPENSE FILE Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Calendar: 8/20/2020  Upon adjournment of Session - John L. Burton Hearing Room (4203)  SENATE APPROPRIATIONS SUSPENSE, PORTANTINO, Chair Summary: Mandates law enforcement agency policies require officers immediately report potential excessive force, and to intercede when present and observing an officer using excessive force.   AB 1196    (Gipson D)   Peace officers: use of force.   Current Text: Amended: 7/9/2020   html   pdf Last Amended: 7/9/2020 Status: 8/17/2020-In committee: Referred to APPR. suspense file. Location: 8/17/2020-S. APPR. SUSPENSE FILE Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Calendar: 8/20/2020  Upon adjournment of Session - John L. Burton Hearing Room (4203)  Page 1/4 SENATE APPROPRIATIONS SUSPENSE, PORTANTINO, Chair Summary: Would prohibit a law enforcement agency from authorizing the use of a carotid restraint or a choke hold, as defined, and techniques or transport methods that involve a substantial risk of positional asphyxia, as defined.   AB 1299    (Salas D)   Peace officers: employment.  Current Text: Amended: 8/6/2020   html   pdf Last Amended: 8/6/2020 Status: 8/13/2020-In committee: Referred to APPR. suspense file. Location: 8/13/2020-S. APPR. SUSPENSE FILE Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Calendar: 8/20/2020  Upon adjournment of Session - John L. Burton Hearing Room (4203)  SENATE APPROPRIATIONS SUSPENSE, PORTANTINO, Chair Summary: Requires law enforcement agencies to notify POST if an officer leaves the agency with a complaint, charge, or investigation pending, and requires the department to complete the investigation and notify the commission of its findings   AB 1314    (McCarty D)   Law enforcement use of force settlements and judgements: reporting.  Current Text: Amended: 6/26/2020   html   pdf Last Amended: 6/26/2020 Status: 8/14/2020-Failed Deadline pursuant to Rule 61(b)(13). (Last location was S. PUB. S. on 7/2/2020) Location: 8/14/2020-S. DEAD Desk Policy Fiscal Floor Desk Dead Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires municipalities to annually post on their websites specified information relating to use of force settlements and judgements, including: Amounts paid, broken down by individual settlement and judgment; premiums paid for insurance against use of force settlements or judgements; and information on municipal bonds used to finance such payments.   AB 1506    (McCarty D)   Police use of force.  Current Text: Amended: 8/17/2020   html   pdf Last Amended: 8/17/2020 Status: 8/17/2020-Read second time and amended. Re-referred to Com. on APPR. Location: 8/12/2020-S. APPR. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Calendar: 8/19/2020  9 a.m. - John L. Burton Hearing Room (4203)  SENATE APPROPRIATIONS, PORTANTINO, Chair 8/20/2020  Upon adjournment of Session - John L. Burton Hearing Room (4203)  SENATE APPROPRIATIONS SUSPENSE, PORTANTINO, Chair Summary: Creates a division within the Department of Justice to, upon the request of a law enforcement agency, review the use-of-force policy of the agency and make recommendations and to conduct an independent investigation of any officer-involved shooting or other use of force that resulted in the death of a civilian. Authorizes the Department of Justice to criminally prosecute any officer that, pursuant to such an investigation, is found to have violated state law. Attachments: League's July support letter   AB 1599    (Cunningham R)   Peace officers: investigations of misconduct.  Current Text: Amended: 7/8/2020   html   pdf Last Amended: 7/8/2020 Status: 8/13/2020-In committee: Referred to APPR. suspense file. Location: 8/13/2020-S. APPR. SUSPENSE FILE Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Calendar: 8/20/2020  Upon adjournment of Session - John L. Burton Hearing Room (4203)  Page 2/4 SENATE APPROPRIATIONS SUSPENSE, PORTANTINO, Chair Summary: Requires law enforcement agencies, or an oversight agency, to complete initiated administrative investigations of officer misconduct related to specified uses of force, sexual assault, and dishonesty regardless of whether an officer leaves the employment of the agency.   AB 1652    (Wicks D)   Law enforcement agency policies: use of force: protests.  Current Text: Amended: 6/29/2020   html   pdf Last Amended: 6/29/2020 Status: 7/2/2020-Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(c). Re-referred to Com. on PUB. S. Location: 7/2/2020-S. PUB. S. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires each law enforcement agency to expand the agency’s use of force policy to include clear and specific guidelines under which officers may use “kettling” or “corralling,” and to prohibit officers from failing to wear, or intentionally acting to obscure or conceal information on, a badge while on duty. Also requires each agency’s policy to prohibit law enforcement officers from using force on individuals engaged in, or members of the press covering, a lawful assembly or protest, and would further require the policy to require that an officer who is found to have intentionally violated this policy be suspended.   AB 1709    (Weber D)   Law enforcement: use of force.  Current Text: Amended: 7/21/2020   html   pdf Last Amended: 7/21/2020 Status: 7/21/2020-From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on PUB. S. Location: 7/2/2020-S. PUB. S. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: This bill would remove the specification that a peace officer making an arrest need not desist in their efforts because of resistance or threatened resistance from the person being arrested. The bill would also require a peace officer to attempt to control an incident through deescalation tactics, as defined, in an effort to reduce or avoid the need to use force, to render medical aid immediately or as soon as feasible, and to intervene to stop a violation of law or an excessive use of force by another peace officer. Attachments: League's July opposition letter   SB 731    (Bradford D)   Peace Officers: civil rights.   Current Text: Amended: 7/29/2020   html   pdf Last Amended: 7/29/2020 Status: 8/3/2020-August 5 hearing postponed by committee. Re-referred to Com. on RLS. pursuant to Assembly Rule 96. Location: 8/3/2020-A. RLS. Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: *This bill is probably not moving forward* Would provide that a threat, intimidation, or coercion under the Civil Rights Act may be inherent in any interference with a civil right and would describe intentional acts for these purposes as an act in which the person acted with general intent or a conscious objective to engage in particular conduct.   SB 776    (Skinner D)   Peace officers: release of records.  Current Text: Amended: 8/10/2020   html   pdf Last Amended: 8/10/2020 Status: 8/18/2020-August 18 set for first hearing. Placed on suspense file. Location: 8/18/2020-A. APPR. SUSPENSE FILE Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Calendar: 8/20/2020  Upon Call of the Chair - Assembly Floor  ASSEMBLY APPROPRIATIONS SUSPENSE, GONZALEZ, Chair Page 3/4 Summary: Expands categories of police and custodial personnel records subject to disclosure pursuant to the California Public Records Act, including every incident involving use of force. Attachments: League's opposition letter of July 2020 Total Measures: 12 Total Tracking Forms: 12 Page 4/4 CITY COUNCIL MEETING    __8/24/2020__________  [X] Placed Before Meeting  [  ] Received at Meeting  Item #5  City of Palo Alto    M E M O R A N D U M     TO:   City Council    DATE:   August 24, 2020    SUBJECT:  ADDITIONAL ITEMS ON THE CITY OF PALO ALTO’S RACE AND EQUITY WORK      This memorandum transmits additional information related to Item #5 Race and Equity  Updates and Potential Direction to be heard at City Council on August 24, 2020.    Attachment 1: Stanford University Police Reform Research – This attachment provides  information prepared by Stanford University fellow Joyce Tagal, who has been researching  police reform over the summer. Her efforts overlap and dovetail with the work of the City  Council and the ad hoc committees for race and equity. Details in this attachment include  research findings, which Joyce Tagal presented to a group of mid‐peninsula City Managers on  Friday, August 21.     Attachment 2: California State Legislation Update – This attachment provides the latest  legislative update detailing the status of pending legislation related to policing as of August 24,  2020. The City’s state lobbyist will be present at the meeting to discuss the latest updates.    Attachment 3: Citywide Diversity and Inclusion Calendar of Events – This attachment presents  a preliminary list of activities/events that the City could pursue through June 2021 focused on  race and equity.      DEPARTMENT HEAD:                  Kiely Nose       Director, Administrative Services      CITY MANAGER:                 Ed Shikada       City Manager  DocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Police Reform: Mid-Peninsula City Manager Summer research August 21: Final Presentation Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Key questions and focus areas June 2020: Scoping questions ● What are effective alternative policing policies, practices and structures that can be implemented in the short- to medium-term in our mid-peninsula, suburban cities? ○What are existing policing structures and training in each of our local cities? What decisions drive/drove these existing structures? ○What are the policing structures and training practices that most affect marginalized communities in the mid-peninsula cities? What populations are most impacted by these policies ○What are best practices of alternative forms of public safety delivery that might replace current policing structures? Is there a difference between policies that work in urban and suburban cities? What is the efficacy of each proposed reform? ● Data collection and standards ● Culture change ● Independent oversight July 2020: Mid-point Focus areas Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Three research branches and progress to-date Literature Review ● Organizational reports ● Academic papers Interviews ● Stanford faculty ● Community experts Case studies ● Selected peer cities Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Key takeaways: Possible short- and long-term actions for cities 5 Data collection and standards Culture change Independent oversight ● Analyze 911 and non-emergency calls to identify areas of highest need Short- term Long- term ● Report data in standardized format to national databases e.g. National Justice Database (CPE) or the Uniform Crime Reporting database (FBI) ● Identify existing areas of over-reliance on police and possible alternative services ● Consider long-term collaboration between cities, esp in areas of recruitment, training, data collection and community engagement ●Diagnose community-police sentiment to identify level of oversight needed ● Consider increasing permanent civilian engagement in current oversight model Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Data collection and standards 6 Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Areas of data collection fall into 3 broad areas; each achieves different analytic and transparency goals ● Collect and post department demographics (e.g. race, gender) on website ● Collect and post annual aggregated data, e.g. stops and arrests, use-of-force data ●Comparative analyses of dept demographics compared to national average Personnel data Operations data Degree of public transparency Public opinion ● Identify Officer Discretionary Index for an officer badge number ● Analyze body cam footage for bias using ML ● Survey and post overall satisfaction or trust scores among residents ● Conduct trust and satisfaction poll of residents controlled for race, neighborhood Aggregate/anonymize data and post publicly PD shares data with third party for analysis e.g. university, think tank Sources: 21st Century Policing Taskforce - Final Report; “Everytown PD, City Report”, Center for Policing Equity, 2015. ●Compare dept. demographics to city, routes, neighborhoods served ●Analyze 911 and non-emergency calls vs officer-initiated contact to identify citizen demand, geographic need ● Conduct satisfaction survey at community townhalls e.g. My90 texting service PD collects and analyze internally Po s s i b l e a n a l y s e s Po s s i b l e a n a l y s e s Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 There are a growing number of national or regional databases which a PD can choose to participate in ● Center for Policing Equity (CPE)’s National Justice Database ○Participation and data are not publicly available ○Provide analyses and recommendations on a city level ● FBI Uniform Crime Reporting (UCR) database ○Includes the new National Use-of-Force database ●Police Data Initiative ○Menlo Park and Palo Alto already provide accidents/crashes and traffic stops/citations data ● Stanford’s Open Policing Project database ○Provides network-level analysis on traffic stop data ○Collects traffic stop data, including race and gender of officer/civilian 8 Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Center for Policing Equity (CPE) provides data reporting standards for racial bias analyses ● 22 data fields including: ○Pedestrian stop (0,1) ○Vehicle stop (0, 1) ○Incident number ○Date and time of stop ○Location of stop ○Officer: ID, Race, Rank, DOB, Service years, Gender, District ○Suspect: ID, Race code, Race, Gender, DOB ○Stop reason ○Disposition ○Searches and results of searches 9 Recommended vehicle and pedestrian stop variables ● 14 data fields including: ○Date Received ○IAD Number ○Incident Type ○Type of force used ○Outcomes (citizen injuries, officer injuries, arrests) ○Officer Race, Gender, Age, Rank, Tenure, Badge number ○Citizen Age, Race, Sex Recommended Use-of-force variables “Everytown PD, City Report”, Center for Policing Equity, 2015. ● Answers 2 questions: predictors of positive officer experiences & predictors of unfair officer behaviors. ●Independent variables: Procedural justice, stereotype threat, social dominance orientation ●Dependent variables: Job satisfaction, job stress, compliance, police identification, community trust, cynicism, support for use of force policy etc CPE-administered Climate survey Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Based on data variables from previous slide, the following analyses are possible 10 Stops and arrests by citizen race/ethnicity Officer Discretionary Index I.e. Whether arrests of minority citizens comprise a greater proportion of discretionary stops vs resident-initiated stops “Everytown PD, City Report”, Center for Policing Equity, 2015. Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Culture change 11 Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Research depicts formation of “police culture” is necessary for solidarity and unity of police officers Graphic created based on information taken from Chan, Janet. 1996. “Changing Police Culture.” British Journal of Criminology 36 (1): 109–34. https://doi.org/10.1093/oxfordjournals.bjc.a014061. Formal pressures and requirements Isolation from broader community Police socialization process Police Subculture ● Protective and supportive ● Shared attitudes and values Could result in “Thin Blue Wall of Silence” Reinforcement: Other officers provide mutual support, unity, secrecy Reinforcement: Public scrutiny and attention considered hostile (e.g. media attention); Perception that external environment is violent 12 Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 13 Previous initiatives to change police culture have 5 interlinked areas of reform that lead to systemic change Training Data Collection & Evaluation Recruitment Community EngagementOrganization Recruitment initiatives to increase percentage of officers who identify with served communities e.g. Black, Hispanic, women, linguistic diversity San Diego, CA: Restructure PD to focus on beat/community policing e.g. creating community engagement posts, removing levels between beat police and management King County, WA: Training for beat officers on conflict resolution, mediation, youth development frameworks; historical role of law enforcement in race relations Oakland, CA: Collect and evaluate data on a regular basis to measure progress on selected indicators e.g trust in law enforcement, crime metrics, public safety satisfaction East Palo Alto, CA: Develop programs to increase positive interactions with served communities, e.g. youth education, social services referral programs Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 14 Urban and suburban cities are participating in recent conversations to reimagine public safety Minneapolis, MN: ● June 2020: City Council unanimously passed a resolution to create a "transformative new model for cultivating safety" based on holistic, public health measures ○Set up a “Community Safety Work Group” to provide recommendations for the new public safety model. Berkeley, CA: ● July 2020: Omnibus legislation to transform public safety in Berkeley ○Hired consultant to assess police calls, responses and research alternative models of justice ○Create a new Dept. of Transportation to write parking citations, handle traffic violations New Haven, CT: ● August 2020: City Hall announced pilot launch of Community Crisis Response team that will respond to dispatch calls related to behavioral health, substance abuse, shelter and basic living needs. ○Analyzed 2019 call data that showed 11,000 calls could have been responded to by non-law enforcement, non-medical teams Cambridge, MA: ●July 2020: Proposal in City Council to divert traffic enforcement to non-armed civilian unit Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 CPE released a roadmap for cities considering new models of public safety Steps proposed: 1.Identify services to replace and reduce footprint of law enforcement a.Conduct rigorous analysis of public safety demand b.Evaluate officer-initiated activity 2.Identify inefficiencies in existing police activity 3. Locate and create “Public Safety Opportunity Zones” which need more resources 4.Measure public response to changes 5. Respond to violent crime through a.Focused deterrence b.Collaborations with community organizations and leaders 15“Center for Policing Equity Releases Critical Steps for Exploring How Public Safety Resources are Allocated”, Center for Policing Equity, 2020. Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Independent Oversight 16 Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 PARC: Three main groups of oversight models depending on type of review or investigation 17 Review and Appellate Models Investigative and Quality Assurance models Evaluative and Performance- based models ●Review completed internal investigations of citizen complaints; Recommends (a) to sustain/reverse decision; (b) if further investigation should be carried out ●Reports to Police Chief ●Cannot make policy recommendations or look for patterns of police misconduct. ●Allows civilian input into internal investigations ●Limited powers; can’t investigate beyond individual comments Role Pros/Cons ●Outside entity that investigates in part or in full any citizen complaints; may have full disciplinary power or report recommendations to Police Chief ● Can be made up of civilians, group of lawyers/ investigators, ombudsman, or individual leading IA dept ● In some cases, entity can review PD budget and policies “Review of National Police Oversight Models”, Police Assessment Resource Center (2005) ● Allows unbiased investigation ● Oversight usually restricted to complaint cases; no broader policy recommendations ● Usually an auditor that identifies patterns of police misconduct, systemic failures by reviewing the process of investigations (instead of one-off cases) ●Compares police performance over time and against other similarly situated law enforcement agencies. ●Typically does not consult with the community ● Auditors are focused on systemic change vs. specific case resolution ● Independent expertise means less community input Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Details on selected examples of police oversight models 18 Review and Appellate Models ●Albany, NY: Community Police Review Board ○ Size: 8 members (1 vacancy). 5 members appointed by Common Council, 4 members appointed by Mayor ○ Role: Reviews and comments on completed complaints of misconduct by Police Officers; Provides recommendations to Police Chief ○ Budget: $250,000 (2020 adopted) Evaluative and Performance- based models ●Boise, ID: Office of Police Oversight ○Size: 4 staff members incl. 1 attorney (director), 1 analyst, 2 investigators ○ Role: Independent review of police actions, provides policy recommendations, investigates misconduct; Reports directly to Mayor, City Council ○ Budget: $150,000 (FY2021 proposed) Investigative and Quality Assurance models ●Palo Alto, CA: Independent Police Auditor ○Size: 2 auditors ○ Receives complaints directly, reviews investigations for objectivity; Provides recommendations to Police Chief on investigations, dispositions and processes ○ Budget: $75,000 for 3-year contract ●Cambridge, MA: Police Review and Advisory Board ○Size: 5 civilian members (volunteer, not compensated) appointed by City Manager. 2 staff members (1 Exec. Secretary, 1 Investigator appointed as necessary) ○ Investigates complaints of police misconduct, consults with Police Chief in establishing rules and regulations for Cambridge PD, reviews PD budget with City Council, makes disciplinary recommendations to Police Chief and City Manager ○Budget: $130,000 (FY2021: Office of Professional Standards + Police Review Board) Updated data from city websites, based on initial information in “Review of National Police Oversight Models”, Police Assessment Resource Center (2005) Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 PARC: Process for determining best oversight model begins with correct diagnosis of problem ● Strained but not broken ○E.g. Concerns about police budget ○E.g. Suspicion that police are covering up misconduct ●Eroded trust, little goodwill ○E.g. Shootings involving victims, usually people of color ○E.g. Police use-of-force or misconduct circulated on video ●Deep erosion of trust ○E.g. Pattern of critical incidents that deeply affect trust levels ○E.g. Community refuses to cooperate with law-enforcement 19 In c r e a s i n g m i s t r u s t Review and Appellate Models Investigative and Quality Assurance models Evaluative and Performance- based models “Review of National Police Oversight Models”, Police Assessment Resource Center (2005) Diagnose sentiment of police- community relations: Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Could be civilian-only, a hired professional, or a hybrid (1/2) 20 Citizen oversight models Hybrid oversight models Third-party oversight models Community Police Task Force (Aurora, CO) ● Citizen board tasked to make recommendations to improve relationships between residents and PD; review process of critical police incidents, operations, practices and procedures ● Reports to City Council ● Members elected for 2-year term or until task force is disbanded Temporary City Manager’s Review Board (Stockton, CA) ● Advisory review board to examine police policies and practices, incl. Citizens’ complaints, police calls for service, officer-related shootings and use of force ● Reports to CM ● 25 members including community leaders, officials and PD members Special Prosecutors (Madison, WI) ● Special prosecutor appointed to review officer-involved incidents, e.g. Marion County, WI shooting of Dreasjon Reed ● Allows independent investigation of law enforcement involved shootings and increases community faith in outcome Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Could be civilian-only, a hired professional, or a hybrid (2/2) 21 Citizen oversight models Hybrid oversight models Third-party oversight models Citizen Advisory Panel (Palo Alto; San Jose, CA) ● Group of citizens selected by City Council act as liaisons between PD and community; learn and provide feedback about policies and procedures ● Reports to Police Chief ● Limited oversight Permanent Independent auditor (Palo Alto, CA; San Jose, CA) ● Third party professional firm (usually a law firm) appointed to review police investigations and report findings. ● Receives citizen complaints directly ● PA auditor reports to Police Chief, SJ auditor reports to Mayor and City Council Police Commission (San Francisco, CA) ● Appointed by City Council; duties include reviewing policies and practices, participating in important personnel decisions, overseeing officer misconduct investigations, hold public hearings on department’s budget ● Police Chief may serve as non-voting member; 1 councillor may serve on commission ● Reports to City Council Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 Recap: Key takeaways: Possible short- and long-term actions for cities 22 Data collection and standards Culture change Independent oversight ● Analyze 911 and non-emergency calls to identify areas of highest need Short- term Long- term ● Report data in standardized format to national databases e.g. National Justice Database (CPE) or the Uniform Crime Reporting database (FBI) ● Identify existing areas of over-reliance on police and possible alternative services ● Consider long-term collaboration between cities, esp in areas of recruitment, training, data collection and community engagement ●Diagnose community-police sentiment to identify level of oversight needed ● Consider increasing permanent civilian engagement in current oversight model Attachment 1: Stanford University Police Reform ResearchDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 1 of 5 TO:  HONORABLE CITY COUNCIL    FROM:  ED SHIKADA, CITY MANAGER    DATE:  AUGUST 24, 2020           SUBJECT: AGENDA ITEM NUMBER 5: UPDATE AND POTENTIAL DIRECTION ON CITY OF  PALO ALTO'S RACE AND EQUITY WORK    To supplement the staff report and provide up‐to‐date information on the police reform bills  we are tracking, please find below a status update as of the morning of August 24. The  legislature is in session now, meaning it may act on these bills today. Our Sacramento advocate  can provide a verbal update of any action taken today.    AB 66 (Gonzalez) Police: use of force. Status: Moving forward.    Would prohibit the use of kinetic energy projectiles or chemical agents, as defined, by any law  enforcement agency to disperse any assembly, protest, demonstration, or other gathering of  persons, except in compliance with specified standards set by the bill, and would prohibit their  use solely due to a violation of an imposed curfew, verbal threat, or noncompliance with a law  enforcement directive. The bill would prohibit the use of chloroacetophenone tear gas or 2‐ chlorobenzalmalononitrile gas by law enforcement agencies to disperse any assembly, protest,  demonstration, or other gathering of persons.    AB 329 (Kamlager) Victim compensation: use of excessive force by law enforcement. Status:  No amendments or action since July 8. Was not heard in the relevant policy committee. Most  likely, this bill will not move forward.    Existing law provides for the compensation of victims of specified types of crimes by the  California Victim Compensation Board for specified losses suffered as a result of those crimes.  Existing law defines various terms for purposes of these provisions, including “crime”, which  includes any public offense wherever it may take place that would constitute a misdemeanor or  felony.    This bill would revise the definition of “crime” to include the use of excessive force by a law  Attachment 2: California State Legislation UpdateDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 2 of 5 enforcement officer regardless of whether the law enforcement officer is arrested or charged  with commission of a crime or public offense.    AB 1022 (Holden) Peace officers: use of force. Status: Held in committee; not moving forward    Mandates law enforcement agency policies require officers immediately report  potential excessive force, and to intercede when present and observing an officer using excessi ve force.    AB 1196 (Gipson) Peace officers: use of force. Status: Moving forward.    Would prohibit a law enforcement agency from authorizing the use of a carotid restraint or a  choke hold, as defined, and techniques or transport methods that involve a substantial risk of  positional asphyxia, as defined.    AB 1299 (Salas) Peace officers: employment. Status: Moving forward.    Would require any agency that employs peace officers to notify the Commission on Peace  Officer Standards and Training when a peace officer separates from employment, including  details of any termination or resignation in lieu of termination. This bill would require an agency  to notify the commission if an officer leaves the agency with a complaint, charge, or  investigation pending, and would require the agency to complete the investigation and notify  the commission of its findings.     The bill would require the commission to include this information in an officer’s profile and  make that information available to specified parties including any law enforcement agency that  is conducting a preemployment background investigation of the subject of the profile.    AB 1314 (McCarty) Law enforcement use of force settlements and judgements: reporting.  Status: Dead    Would have required municipalities to annually post on their websites specified information  relating to use of force settlements and judgements, including: Amounts paid, broken down by  individual settlement and judgment; premiums paid for insurance against use of force  settlements or judgements; and information on municipal bonds used to finance such  payments.    Attachment 2: California State Legislation UpdateDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 3 of 5 AB 1506 (McCarty) Police use of force. Status: Moving forward.    Creates a division within the Department of Justice to, upon the request of a law enforcement  agency, review the use‐of‐force policy of the agency and make recommendations and to  conduct an independent investigation of any officer‐involved shooting or other use of force that  resulted in the death of a civilian. Authorizes the Department of Justice to criminally prosecute  any officer that, pursuant to such an investigation, is found to have violated state law.     The bill would also require a state prosecutor to investigate incidents of officer‐involved use of  force resulting in the death of an unarmed civilian, and would require the state prosecutor to  conduct an investigation upon request from a local law enforcement agency, district attorney,  city council, or county or city and county board of supervisors, on an incident involving the use  of force by a peace officer that resulted in the death of a civilian. The bill would authorize the  state prosecutor to prepare a written report and require the state prosecutor to post any  reports made on a public internet website. The bill would authorize the state prosecutor to  seek reimbursement, in full or in part, from the local entity for appropriate costs associated  with the investigation. The League of California Cities (League) supports this bill.     AB 1599 (Cunningham) Peace officers: investigations of misconduct. Status: Held in  committee; not moving forward    Requires law enforcement agencies, or an oversight agency, to complete initiated  administrative investigations of officer misconduct related to specified uses of force, sexual  assault, and dishonesty regardless of whether an officer leaves the employment of the agency.    AB 1652 (Wicks) Law enforcement agency policies: use of force: protests. Status: No  amendments or action since July 2. Was not heard in the relevant policy committee. Most  likely, this bill will not move forward.    Requires each law enforcement agency to expand the agency’s use of force policy to include  clear and specific guidelines under which officers may use “kettling” or “corralling,” and to  prohibit officers from failing to wear, or intentionally acting to obscure or conceal information  on, a badge while on duty. Also requires each agency’s policy to prohibit law enforcement  officers from using force on individuals engaged in, or members of the press covering, a lawful  assembly or protest, and would further require the policy to require that an officer who is  found to have intentionally violated this policy be suspended.    Attachment 2: California State Legislation UpdateDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 4 of 5 AB 1709 (Weber) Law enforcement: use of force. Status: No amendments or action since July  2. Was not heard in the relevant policy committee. Most likely, this bill will not move forward.    Would remove the specification that a peace officer making an arrest need not desist  in their efforts because of resistance or threatened resistance from the person being arrested.  The bill would also require a peace officer to attempt to control an incident through  deescalation tactics, as defined, in an effort to reduce or avoid the need to use force, to render  medical aid immediately or as soon as feasible, and to intervene to stop a violation of law or an  excessive use of force by another peace officer. The League is opposed to this bill.    SB 731 (Bradford) Peace Officers: certification: civil rights. Status: Moving forward    Would, with a specified exception, eliminate certain immunity provisions for public employees  or public entities sued under the act. The bill would also authorize specified persons to bring an  action under the act for the death of a person. Would also disqualify a person from being  employed as a peace officer if that person has been convicted of, or has been adjudicated in an  administrative, military, or civil judicial process as having committed, a violation of certain  specified crimes against public justice, including the falsification of records, bribery, or perjury.     The bill would also make all records related to the revocation of a certificate a peace officer’s  certification public and would require that records of an investigation be retained for 30 years.    SB 776 (Skinner) Peace officers: release of records. Status: Moving forward    This bill would make every incident involving the use of force to make a member of the public  comply with an officer, force that is unreasonable, or excessive force subject to disclosure  under the Public Records Request Act. The bill would require records relating to sustained  findings of unlawful arrests and unlawful searches to be subject to disclosure. The bill would  also require the disclosure of records relating to an incident in which a sustained finding was  made, by any law enforcement agency or oversight agency, that a peace officer engaged in  conduct involving prejudice or discrimination on the basis of specified protected classes.   The bill would require the retention of all complaints currently in the possession of a  department or agency and require that records relating to an incident in which an officer  resigned before an investigation is completed to also be subject to release. The bill would  require records subject to disclosure to be provided at the earliest possible time and no later  than 45 days from the date of a request for their disclosure, except as specified. The bill would  Attachment 2: California State Legislation UpdateDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 5 of 5 impose a civil fine not to exceed $1,000 per day for each day beyond 30 days that records  subject to disclosure are not disclosed.     The League is opposed to this bill in it’s excessive in the types of personnel records it makes  subject to disclosure, overly punitive in the imposition of fines when records are not disclosed,  and unnecessarily burdensome in requiring local agencies to indefinitely retain all records.        _______________________     _________________________    Heather Dauler      Ed Shikada  Intergovernmental Affairs Officer    City Manager  Attachment 2: California State Legislation UpdateDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7   Citywide Diversity & Inclusion Initiative  Activities Calendar  June‐July   Black Lives Matter temporary mural installed   Police Department produced four Community Briefings on policing practices   Q&A Video produced with Human Relations Commission (HRC) Chair, City Manager, and Police Chief   HRC convened 8 Can’t Wait Panel Discussion   HRC developed recommendations to City Council on 8 Can’t Wait   Parks & Recreation Commission convened Foothills Park Panel Discussion  August   HRC convened Public Forum on Current and History of Black and Brown Community Experiences   New website and online engagement developed for Race and Equity   Palo Alto Reads Author Series hosts The Color of Law: A Forgotten History of How Our Government Segregated  America author Richard Rothstein.   Palo Alto Reads, Kids, Family Storytimes – community, friendships, acceptance, sharing, inclusivity themes   Palo Alto Reads, Kids – First Chapter Fridays  September   Public Art Commission (PAC) convenes Black Lives Matter artists panel discussion   PAC develops plan for permanent artwork on Race and Equity   Hamilton Avenue Black Lives Matter temporary mural removed   Children’s Theater Collaboration   Public Art New Americans Exhibition and Sanctuary Print Project Residency   Palo Alto Library celebrates Hispanic‐Latino Heritage Month    Palo Alto Reads, ESL Book Club – Stamped: Racism, Anti‐Racisims & You by Jason Reynolds and Ibram X. Kendi  (9/9)   Palo Alto Reads, Book Discussion – The Color of Law    Palo Alto Reads, Stay Woke Book Club: Stamped From the Beginning  by Ibram X. Kendi   Palo Alto Reads, Teens – Developing your Ally Skills 101   Palo Alto Reads, Kids, Family Storytimes – community, friendships, acceptance, sharing, inclusivity themes   Palo Alto Reads, Kids – First Chapter Fridays  October   City Council discusses involvement of boards and commissions   City Administration pursues citywide implicit bias training   City Administration conducts demographic analysis of workforce   Palo Alto Reads, ESL Book Club – Stamped: Racism, Anti‐Racisims & You by Jason Reynolds and Ibram X. Kendi  (10/7)   Palo Alto Library continues to celebrate Hispanic Heritage Month and Day of the Dead  Attachment 3: Citywide Diversity and Inclusion Calendar of EventsDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 November ‐ December   City Council discusses progress and potential designation of Chief Inclusion Officer   Palo Alto Library celebrates National Native American Heritage Month    Palo Alto Library Celebrates Diwali   Palo Alto Library Storytimes ‐ holidays around the world   Palo Alto Library contest – Kids & Teen Writing Contest theme on equity, inclusion, etc.   January – March (2021)   Youth Community Service/Community Service Department Annual Dr. Matin Luther King, Jr. Day of Service  Event   Palo Alto celebrates Martin Luther King Jr. Day, Black History Month, Lunar New Year, Women’s History Month  and Nowruz (Persian New Year)   City Council discusses race and equity framework progress as part of the Council annual priority‐setting  April – June (2021)   Palo Alto Library celebrates Earth Day, National Poetry Month, Asian Pacific American Heritage Month, National  Library Week, and Pride    Art Center and Junior Museum & Zoo Collaboration   Black Index Public Art Exhibit Summer 2021    Attachment 3: Citywide Diversity and Inclusion Calendar of EventsDocuSign Envelope ID: 5254EA8C-45C7-4953-A871-2A456F8DC5B7 City of Palo Alto (ID # 11544) City Council Staff Report Report Type: Informational Report Meeting Date: 8/24/2020 City of Palo Alto Page 1 Summary Title: Informational Report regarding Race and Equity Data Title: Informational Report Regarding Race and Equity Data Transmitted to the City Council Ad Hoc Committees From: City Manager Lead Department: Administrative Services Recommendation This is an informational report and no City Council action is required. This report includes information that has been transmitted to the City Council to assist with their work on race and equity through their ad hoc committee assignments. The ad hoc committees have met multiple times since they were created in late June 2020. Background As part of the City’s ongoing work to address race and equity in Palo Alto, Mayor Adrian Fine announced four ad hoc committees focused on different aspects of race and equity on June 23, 2020. These committees included the Police Policy Manual, Data, and Hiring ad hoc; the Alternative Public Safety Models ad hoc; the Police Accountability and Transparency ad hoc; and the Citywide Diversity and Inclusion ad hoc. These ad hocs were the continuation of direction previously provided by the City Council on June 15, 2020, which discussed ad hocs and provided additional direction to the Public Arts Commission as well as the Human Relations Commission. More information on these ad hocs, including the Councilmembers on each committee and the purpose of each ad hoc can be found on the following page: https://www.cityofpaloalto.org/raceandequity/council_ad_hoc_committees.asp. Discussion Each ad hoc committee convened through the summer and met with staff to discuss the elements of their work. As a next step, the full City Council will convene on August 24, 2020 to discuss reports from each ad hoc and consider next steps. This informational memorandum presents information that was transmitted to the City Council as a result of the initial staff meetings and work with the various ad hocs. It is City of Palo Alto Page 2 transmitted here to inform and educate the broader community on these various topics and elements of the ad hoc work underway. Race and Equity Data Transmittal #1 can be found online here: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=44493.56&BlobID=77 997. It details information that had been requested by the ad hoc committees. The information is grouped by the ad hoc committee where it best corresponds. However, it should be noted that many of the items cross-over among different ad hoc committees. Items that are still forthcoming are noted as “Pending” on the list of materials. Race and Equity Data Transmittal #2 can be found online here: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=44493.56&BlobID=77 998. It includes two flowcharts; the first flowchart details the process for reviewing use of force incidents and the second flowchart details the internal affairs/citizen complaint review process. These files, as well as the continuing work that staff and these ad hocs develop, are linked on the Race and Equity webpage for transparency, easy reference, and progress tracking. New items, such as meetings, study sessions, and discussions, will also continue to be referenced online for continued stakeholder and community engagement as the City furthers its race and equity conversations. Stakeholder Engagement Presenting this information to the public, parallel to its transmittal to the City Council, ensures that stakeholders throughout the community remain apprised of the City’s ongoing work on race and equity. For additional work underway, including community engagement opportunities related to race and equity, go to www.cityofpaloalto.org/raceandequity. Environmental Review This informational report is not a project under the California Environmental Quality Act (CEQA).