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HomeMy WebLinkAbout2020-09-28 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 ON THE CITY OF PALO ALTO’S WEBSITE. Monday, September 28, 2020 Special Meeting 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available online 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 Closed Session 5:00-6:30 PMPublic Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1.CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Subject: Threatened Litigation by San Jose/Silicon Valley NAACP et al Regarding Non-resident Access to Foothills Preserve Authority: Potential Exposure to Litigation Under Government Code Section 54956.9(d)(2) and (e)(5) One Potential Case, as Defendant REVISED Public Comment 2 September 28, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY OF PALO ALTO’S WEBSITE. Study Session 6:30-7:30 PM 2.Update on City of Palo Alto's Race and Equity Work and Discussion of Next Steps Agenda Changes, Additions and Deletions Oral Communications 7:30-8:00 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 8:00-8:05 PM 3.Approval of Action Minutes for the September 14, 2020 City Council Meeting Consent Calendar 8:05-8:10 PMItems will be voted on in one motion unless removed from the calendar by three Council Members. 4.Approval of Contract Number C21177400 With BKF Engineers for a Maximum Not-to-Exceed Amount of $329,689 for Design and Construction Support Services Related to Churchill Avenue and Alma Street Railroad Crossing Safety Improvements, Capital Improvement Project (PL-20000) 5.Adoption of a Resolution Approving and Attesting to the Veracity of the City's 2019 Annual Power Source Disclosure and Power Content Label Reports 6.Approval of Amendment Number 2 to Contract Number S20178094 With Management Partners, Inc., to Extend the Term Through March 31, 2021 and Increase Compensation by $85,000 for Procurement Advising Services for a new Not-to-Exceed Amount of $170,000 7.Designation of the Voting Delegate for the League of California Cities Annual 2020 Conference, to be Held Virtually October 7-9, 2020; and Approval of Staff’s Recommendation to abstain on the League Resolution 8.Authorization to Amend the Existing Agreement for Litigation Defense Services With the Law Firm of Jarvis Fay & Gibson (Contract S17168652) to Increase the Contract Amount by an Additional $15,000 for a Total Not-to-Exceed Amount of $130,000 9.SECOND READING: Interim Ordinance of the Council of the City of Palo Alto Amending Chapters 18.28 (Special Purpose PF, OS and AC Districts) and 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Adopt Temporary MEMO MEMO Presentation Public Comment 3 September 28, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY OF PALO ALTO’S WEBSITE. Regulations Relating to Safe Parking in PF Districts (FIRST READING: September 14, 2020 PASSED: 7-0) City Manager Comments 8:10-8:20 PM Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 8:20-9:15 PM 10.Status Report and Direction Regarding Continued Participation in the San Mateo County Tourism Business Improvement District (TBID) or Adoption of a Resolution to Withdraw Participation 9:15-10:00 PM 11.Approval of a Contract With Baker Tilly US, LLP for Internal Auditor Services in an Amount Not-to-Exceed $1,300,000 for a Term Commencing October 1, 2020 through June 30, 2022, Including Approval of Four Initial Task Orders; Adoption of a Resolution to Appoint Kyle O'Rourke of Baker Tilly US, LLP as City Auditor; and Amendment of the Table of Organization to Eliminate 4.0 Positions in Various Funds 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. MEMO Presentation Presentation Public Comment 4 September 28, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY OF PALO ALTO’S WEBSITE. Additional Information Informational Report Resumption of Residential Preferential Parking (RPP) Enforcement Cybersecurity Awareness Proclamation - October 2020 Palo Alto Fire Department Semiannual Performance Report for the Second Half of Fiscal Year 2020 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Public Letters to Council Set 1 5 September 28, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY OF PALO ALTO’S WEBSITE. 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 (ID # 11604) City Council Staff Report Report Type: Study Session Meeting Date: 9/28/2020 City of Palo Alto Page 1 Summary Title: Update on City of Palo Alto's Race and Equity Work Title: Update on City of Palo Alto's Race and Equity Work and Discussion of Next Steps From: City Manager Lead Department: City Manager Recommendation Staff recommends that City Council receive an update on the City’s Race and Equity efforts and discuss next steps. Background The City Council has been discussing race and equity efforts since June 2020 and moving forward on a race and equity initiative for the City. Previous City Council reports, CMR #11414 (June 8, 2020; https://www.cityofpaloalto.org/civicax/filebank/documents/77100) and CMR #11441 (June 15, 2020; https://www.cityofpaloalto.org/civicax/filebank/documents/77273), describe efforts the City has underway. 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 ad hoc committee convened over the summer and on August 24, 2020, the committees updated the full City Council and provided direction on next steps. The Human Relations CITY OF PALO ALTO City of Palo Alto Page 2 Commission (HRC) also gave their 8cantwait report to the City Council. The reports from August 24, 2020 meeting are listed below: - CMR #11551 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=59847.7&BlobID=780 78; - An additional memorandum released on August 24, 2020 with more information: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=70773.14&BlobID=78 135); and - HRC Report CMR #11516 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=78000. Discussion The City continues to progress with the race and equity efforts as directed in June 2020 by the City Council. The City’s Independent Police Auditors (IPA), Michael Gennaco and Stephen Connolly will attend the City Council meeting on September 28, 2020. Messers Gennaco and Connolly met with the Accountability and Transparency Ad Hoc Committee and will now meet with the full City Council at this study session to discuss their role as the City’s IPA and answer any questions from the City Council. The biography for the Independent Police Auditors are available on their website at: https://www.oirgroup.com/people. The City offers a dedicated webpage that hosts information about the Independent Police Auditor work. Go here for more: https://www.cityofpaloalto.org/gov/depts/pol/auditor.asp Update on Ad Hoc Work Throughout August and September, the ad hoc committees met again to further the next steps identified in the August 24 report. Below is a recap summary of those next steps. Police Policy Manual, Data, and Hiring Ad Hoc • Review best practices and gather thought leader input o Explore opportunities for external partnerships 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 City of Palo Alto Page 3 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 Communication between staff and the ad hoc committees is ongoing. The most recent information transmitted from staff to the City Council provided information about police and fire calls for service as well as a five-year history of police uses of force in Palo Alto. The report was shared as an informational report on September 14, 2020 (CMR #11586; https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=60853.37&BlobID=78272). As more information is sent to the ad hoc committees, it will be posted online here: https://www.cityofpaloalto.org/raceandequity/council_ad_hoc_committees.asp. 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 (HRC) has solicited 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. The HRC held a listening forum on Thursday, August 13, 2020. A few members of the community shared their experience before 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 asked for all submissions to be shared by September 18, 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, hosted a virtual conversation with Richard Rothstein, the author of “Color of Law: A Forgotten History of How Our Government City of Palo Alto Page 4 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. The program had over 400 registrants and more than 200 additional viewers on YouTube since the event. The Public Art Commission hosted a discussion with eight of the artists who painted the temporary Black Lives Matter mural on September 10, 2020. The artists shared what led them to getting involved in the mural project and their experiences. The artists discussed the importance of public art in bringing community together in a shared experience and discussion, and how public art has a power quite different from studio or gallery art. The artists also shared their calls for action and next steps, asking for greater corporate engagement, the need for everyone to look at their own implicit biases, and a call for increased paid opportunities for artists, who will be able to have a larger overall positive impact in connecting and unifying our communities. The Public Art Commission held their annual retreat September 15, 2020 to set the priorities for the coming two years. One of the priorities identified by the PAC and scheduled to be discussed at their September 17, 2020 regular meeting includes the commission of public art projects with the emphasis on cultural inclusion and social and racial equity. At the retreat, the PAC also met their racial and cultural equity communications consultant, Elizabeth D. Foggie, who is just starting her evaluation work with the City’s Public Art Program and the PAC. Her scope of work includes evaluating the language and processes for better inclusion of Black artists and artists of color and assisting staff in making connections and finding ways to increase artist opportunities for more diverse artists. Other activities continue to occur according to the calendar shared in the most recent update to the City Council. Updates can be found online on the City of Palo Alto’s web page for Race and Equity (www.cityofpaloalto.org/raceandequity). It will be updated to reflect the most recent times and event dates. Stakeholder Engagement 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). 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 City of Palo Alto Page 5 Act (CEQA). 1 of 1 TO: HONORABLE CITY COUNCIL FROM: ED SHIKADA, CITY MANAGER AGENDA DATE: SEPTEMBER 28, 2020 SUBJECT: ITEM NUMBER 2 – PRESENTATION/ADDITIONAL ITEM ON THE CITY OF PALO ALTO RACE AND EQUITY WORK This memorandum transmits the PowerPoint presentation as additional information for the September 28, 2020 Item #2 Update on City of Palo Alto's Race and Equity Work and Discussion of Next Steps (City Manager’s Report #11604). The attached presentation will help further inform the discussion for the September 28, 2020 update to the City Council. The proposed framework and next steps for the City Council’s race and equity work reflects suggestions made by the Ad Hoc Committees over the past few months. _________________________ Ed Shikada City Manager 2 DocuSign Envelope ID: E7FCD6EB-EF01-4FF3-80E8-DE77A52F85B4 September 28, 2020 www.cityofpaloalto.org/raceandequity RACE AND EQUITY UPDATES 1 Attachment #1 www.cityofpaloalto.org/raceandequity •Race and Equity Process: Work-to-Date and Moving Forward •Mission Statement Draft •Overview of Progress / Work-to-Date •Framework for Practices •Range of Implementation Tools •Police Practices and Citywide Practices •Presentation / Q&A by Palo Alto’s Independent Police Auditor (IPA) •Council Discussion PRESENTATION OUTLINE 2 www.cityofpaloalto.org/raceandequity The Citywide Diversity and Inclusion Ad Hoc created a draft mission statement to be the guide for the ongoing race and equity work for the City. The mission statement is: 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. RACE & EQUITY MISSION STATEMENT DRAFT 3 www.cityofpaloalto.org/raceandequity •Council Direction and Referrals to Human Relations Commission and others •Ad Hocs Created and Have Met Over the Summer –Members: •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 & Inclusion –Mayor Adrian Fine and Councilmembers Alison Cormack and Liz Kniss •Most recent update at City Council was August 24, 2020 •Report: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=59847.7&BlobID=78078 •Supplemental Memo: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=70773.14&BlobID=78135 •HRC Report: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=78000 OVERVIEW OF PROGRESS / WORK-TO-DATE 4 www.cityofpaloalto.org/raceandequity Framework: Sequence of work ahead RACE & EQUITY PROCESS MOVING FORWARD Community Engagement & Learning -HRC 8cantwait and report out -Gain community input -Seek to understand people’s experiences with PAPD -Community learning sessions Data Collection -Learn workflow -Review Policy Manual -Review data: uses of force & calls for service -Request & review any other data Review legislation Gaps Identification -Identify processes & policies where current practice could be improved -Identify areas desired for changes -Community feedback Policy Direction -Based on gaps and Ad Hoc suggestions, Council to provide policy direction on improvement areas -Staff to identify implementation tools 5 www.cityofpaloalto.org/raceandequity RANGE OF IMPLEMENTATION TOOLS State Legislative Advocacy City Ordinances, Policy & Budget Actions Organizational & Reporting Structures Department Policy & Operations Ongoing Evaluation and Feedback 6 www.cityofpaloalto.org/raceandequity Policing Practices and Citywide Practices •Policing Practices 1.Public contact data collection and trend analysis 2.Officer deployment priorities and practices for non-violent issues 3.Officer conduct investigations and transparency 4.Discipline and accountability •Citywide Practices: 1.Hiring and promotions, including board/commission appointments 2.Board/commission engagement with race and equity issues 3.Continuous learning and improvement 4.Norms and expectations of conduct RACE & EQUITY PROCESS MOVING FORWARD Timeline: Initial Direction by End of 2020 Timeline: Extends into 2021 7 www.cityofpaloalto.org/raceandequity Sample of Policing Practices and Citywide Practices •Policing Practices 1.Public contact data collection and trend analysis 2.Officer deployment priorities and practices for non-violent issues 3.Officer conduct investigations and transparency 4.Discipline and accountability •Citywide Practices: 1.Hiring and promotions, including board/commission appointments 2.Board/commission engagement with race and equity issues 3.Continuous learning and improvement 4.Norms and expectations of conduct RACE & EQUITY PROCESS MOVING FORWARD 8 www.cityofpaloalto.org/raceandequity Policing Practices and Citywide Practices: Policing Practice #1: Public contact data collection and trend analysis Potential Areas of Concern to Address: •Department-focused activities & priorities: Where Patrol time is spent on what kind of activities. •Currently no statistical data analysis, internally or externally. For external research, need to address the research questions to pose (broader than just “what are the contacts?”) •How often do we want to report on RIPA information once it begins to be collected? Is there other data, beyond statutory requirements, that we might be interested in collecting? City Council Options to Consider: •Providing policy direction on the prioritization of types of enforcement activity •Resourcing the Police Department to ensure data is available and accurate (staff and software) •Ensuring personally identifiable info-redacted contact data is available on the Open Data Portal •Reporting annually on RIPA data and on some regular frequency for outside study of the data RACE & EQUITY PROCESS MOVING FORWARD 9 www.cityofpaloalto.org/raceandequity Policing Practices and Citywide Practices Policing Practice #3: Officer conduct investigations and transparency Potential Areas of Concern to Address: •Are we doing enough auditing? •What other options for transparency might there be? And when does the public get case information? •Report out on complaints and reportable uses of force: need to start doing it? How often? City Council Options to Consider: •Expanded role for District Attorney, Attorney General, IPA or others for case review •Parameters for disclosure (upon conclusion of administrative interview, materials can be released) •Add reportable uses of force data to the regular report that comes to City Council that already includes IPA work regarding complaints, IIRs and HR investigations RACE & EQUITY PROCESS MOVING FORWARD 10 www.cityofpaloalto.org/raceandequity Palo Alto’s Independent Police Auditor (IPA) The Transparency and Accountability Ad Hoc met with the City’s IPA and wanted to advance the conversation to the full City Council to understand the work done by the IPA and other opportunities to further increase transparency. Michael Gennaco: •Nationally recognized expert on law enforcement reform and accountability systems. •Former Chief Attorney of the Office of Independent Review for Los Angeles County. •Founding Principal of OIR Group. Stephen Connolly: •Principal with OIR Group since 2001 and was an original member of the Los Angeles County Office of Independent Review. PRESENTATION / Q&A BY PALO ALTO’S IPA 11 www.cityofpaloalto.org/raceandequity •Discussion: •Discuss Framework •Discuss Policing Practices and Citywide Practices Templates •Any follow up discussion or questions for the IPA •Next Steps: •Staff will further flesh out templates and discuss with Ad Hocs •Staff and Ad Hocs will return to Council in October ITEMS FOR DISCUSSION & NEXT STEPS 12 CITY OF PALO ALTO OFFICE OF THE CITY CLERK September 28, 2020 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the September 14, 2020 City Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: • Attachment A: 09-14-20 DRAFT Action Minutes (PDF) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting September 14, 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: Special Orders of the Day 1. Appointment of one Candidate to the Human Relations Commission for a Partial Term Ending May 31, 2021 and two Candidates to the Public Art Commission for Three-year Terms Ending May 31, 2023. First Round of voting for one position on the Human Relations Commission with term ending May 15, 2021. Voting For: Nilofer Chollampat DuBois, Filseth, Kou Voting For: Sunita de Tourreil Fine, Tanaka Voting For: Sofia Fojas Cormack Voting For: Curt Kinsky Kniss Voting For: Paula Rugg Voting For: Lestina Trainor Beth Minor, City Clerk announced that a majority vote for any candidate was not received and a second round of voting is needed. Second Round of voting for one position on the Human Relations Commission with term ending May 15, 2021. Voting For: Nilofer Chollampat DuBois, Filseth, Kou Voting For: Sunita de Tourreil Cormack, Fine, Kniss, Tanaka Voting For: Sofia Fojas Voting For: Curt Kinsky DRAFT ACTION MINUTES Page 2 of 6 City Council Meeting Draft Action Minutes: 9/14/2020 Voting For: Paula Rugg Voting For: Lestina Trainor Beth Minor, City Clerk announced that Sunita de Tourreil with 4 votes was appointed to the Human Relations Commission. First Round of voting for two positions on the Public Art Commission with terms ending May 15, 2023. Voting For: Djibril Drame Voting For: Marilyn Gottlieb-Roberts Tanaka Voting For: Radina Philyaw Voting For: Hsinya Shen DuBois, Filseth, Kou, Tanaka Voting For: Harriet Stern Cormack, Fine, Kniss Voting For: Katherine Talbot Voting For: Nia Taylor Cormack, DuBois, Filseth, Fine, Kniss, Kou Beth Minor, City Clerk announced that Nia Taylor with 6 votes, and Hsinya Shen with 4 votes were both appointed to the Public Art Commission. Minutes Approval 2. Approval of Action Minutes for the August 17 and 24, 2020 City Council Meetings. MOTION: Mayor Fine moved, seconded by Council Member Kniss to approve the Action Minutes for the August 17 and 24, 2020 City Council Meetings, with the inclusion of “Plan” after Carbon Neutral in the August 24, 2020 minutes. MOTION PASSED: 7-0 Consent Calendar MOTION: Council Member Kniss moved, seconded by Council Member Tanaka, third by Council Member Cormack to remove Agenda Item Number 4, “Approval of an Extension of the Pilot Phase of the Old Palo Alto Residential Preferential Parking Program…” from the Agenda do be heard at a later date. DRAFT ACTION MINUTES Page 3 of 6 City Council Meeting Draft Action Minutes: 9/14/2020 MOTION: Mayor Fine moved, seconded by Council Member Cormack to approve Agenda Item Numbers 3, 5-7. 3. Approval of Contract Number C21178263 With McGuire Pacific Constructors, Not-to-Exceed $130,000, for On-call Residential Preferential Parking Program (RPP) Signs and Installation. 4. Approval of an Extension of the Pilot Phase of the Old Palo Alto Residential Preferential Parking Program (RPP) for a Period of Twelve Months. 5. QUASI-JUDICIAL. 4175 Page Mill Road [20PLN-00040]: Request for Site and Design Review to Allow Replacement of Vault Restroom In- situ With Prefabricated CXT Vault Restroom, Installation of American Disabilities Act (ADA) Parking Stalls, Construction of an ADA Path of Travel, and Minor Grading of an Existing Gravel Parking lot. Environmental Assessment: Exempt. Zoning District: Open Space (OS). 6. Adoption of Revised Salary Schedules for Various City Employee Groups Including Service Employees International Union (SEIU), SEIU- hourly and Limited-hourly Employees; Revision to the Management and Professional Employees’ Compensation Plan. 7. Approval of Three Items Related to the Junior Museum and Zoo (JMZ): 1) Acceptance of a $250,000 Federal Grant for a California Dinosaur Garden Exhibition; 2) Approval of a Budget Amendment in the Capital Improvement Fund by a Two-thirds Vote; and 3) Approval of an Extension Until 2022 of the Agreement With the Friends of the Palo Alto Junior Museum and Zoo for Mutual Cooperation and Support to Facilitate the Friends’ Financial and Administrative Support of the JMZ. MOTION PASSED: 7-0 Council took a break at 5:42 P.M. and returned at 5:56 P.M. State/Federal Legislation Update/Action 8. Study Session With the City's State Legislative Advocate Regarding Bills From the 2020 Legislative Session. NO ACTION TAKEN DRAFT ACTION MINUTES Page 4 of 6 City Council Meeting Draft Action Minutes: 9/14/2020 Action Items 9. PUBLIC HEARING: Adoption of an Interim Ordinance Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Temporarily Allow 24-hour Safe Parking on City-owned Sites in the PF Zoning District; and Approve a 3-year Lease With the County of Santa Clara (Tenant) at 2000 Geng Road for Safe Parking. Public Hearing opened at 7:04 P.M. Public Hearing closed at 7:28 P.M. MOTION: Council Member Kou moved, seconded by Vice Mayor DuBois to: A. Find the proposed Interim Ordinance and approval of the lease agreement exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 and 15303 of the CEQA Guidelines; B. Adopt an Interim Ordinance Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Temporarily Allow 24-Hour Safe Parking on City Property in the PF Zoning District (PAMC Chapter 18.28), and Establishing Temporary Regulations Related to Safe Parking (PAMC Chapter 18.42); and C. Approve the Three-year Lease between the City (Landlord) and the County of Santa Clara (Tenant) for City property located at 2000 Geng Road, Palo Alto for Safe Parking. MOTION PASSED: 7-0 Council took a break at 8:26 P.M. and returned at 8:40 P.M. 10. Verbal Update and Possible Direction to Staff on COVID-19 Related to Business Recovery Efforts. MOTION: Vice Mayor DuBois moved, seconded by Council Member Tanaka to direct Staff to explore options and return to Council with: A. Rapid Covid-19 testing and what the City can do to ramp up testing; B. Childcare and how the City can support childcare services; and C. A holiday strategy to support holiday shopping in our major shopping areas. DRAFT ACTION MINUTES Page 5 of 6 City Council Meeting Draft Action Minutes: 9/14/2020 AMENDMENT: Mayor Fine moved, seconded by Council Member Tanaka to direct Staff to explore options and return to Council with: A. Temporarily suspending the Retail Preservation Ordinance outside of the commercial cores; B. Temporarily altering or suspending required parking changes for a change of use; and C. Allowing diverse retail uses in all retail sites. AMENDMENT SPLIT FOR THE PURPOSE OF VOTING: AMENDMENT PART A PASSED: 4-3 DuBois, Filseth, Kou no AMENDMENT PART B PASSED: 4-3 DuBois, Filseth, Kou no AMENDMENT PART C PASSED: 7-0 MOTION AS AMENDED RESTATED: Vice Mayor DuBois moved, seconded by Council Member Tanaka to direct Staff explore options and return to Council with: A. Rapid Covid-19 testing and what the City can do to ramp up testing; B. Childcare and how the City can support childcare services; C. A holiday strategy to support holiday shopping in our major shopping areas; D. Temporarily suspending the Retail Preservation Ordinance outside of the commercial cores; E. Temporarily altering or suspending required parking changes for a change of use; and F. Allowing diverse retail uses in all retail sites. MOTION AS AMENDED PASSED: 5-2 Filseth, Kou no Council took a break at 11:02 P.M. and returned at 11:09 P.M. 11. Review and Selection of Select State and Local Measures on the November 2020 Ballot for Possible Support or Oppose Positions. DRAFT ACTION MINUTES Page 6 of 6 City Council Meeting Draft Action Minutes: 9/14/2020 MOTION: Council Member Tanaka moved, seconded by Council Member XX to vote No Position on Proposition 15. MOTION FAILED DUE TO THE LACK OF A SECOND MOTION: Council Member DuBois moved, seconded by Council Member Filseth to vote No Position on Proposition 16. MOTION PASSED: 5-2 Fine, Kniss no MOTION: Mayor Fine moved, seconded by Council Member Kniss to vote Support on Proposition 17. MOTION FAILED: 3-4 DuBois, Filseth, Kou, Tanaka no MOTION: Council Member Filseth moved, seconded by Council Member Kou to vote No Position on Proposition 19. SUBSTITUTE MOTION: Council Member Cormack moved, seconded by Mayor Fine to vote Oppose on Proposition 19. SUBSTITUTE MOTION FAILED: 2-5 DuBois, Filseth, Kou, Tanaka no, Kniss abstain MOTION RESTATED: Council Member Filseth moved, seconded by Council Member Kou to vote No Position on Proposition 19. MOTION PASSED: 7-0 MOTION: Mayor Fine moved, seconded by Council Member Kniss to vote Oppose on Proposition 20. MOTION FAILED: 2-5 Cormack, DuBois, Filseth, Kou, Tanaka no MOTION: Vice Mayor DuBois moved, seconded by Council Member Kou to vote Support on Proposition 21. MOTION FAILED: 3-4 Cormack, Fine, Kniss, Tanaka no MOTION: Vice Mayor DuBois moved, seconded by Mayor Fine to vote Support on Palo Alto Unified School District. MOTION PASSED: 7-0 Adjournment: The meeting was adjourned at 11:44 P.M. 1 of 1 TO: HONORABLE COUNCIL MEMBERS FROM: BETH MINOR, CITY CLERK DATE: SEPTEMBER 28, 2020 SUBJECT: AGENDA ITEM NUMBER 3- Approval of Action Minutes for the September 14, 2020 City Council Meeting. Attached are the Action Minutes from the September 14, 2020 City Council Meeting that are on your agenda for approval. The actual minutes were inadvertently left off of the report. Beth Minor City Clerk 3 Page 2 CITY OF PALO ALTO OFFICE OF THE CITY CLERK September 28, 2020 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the September 14, 2020 City Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: • Attachment A: 09-14-20 DRAFT Action Minutes (PDF) Department Head: Beth Minor, City Clerk CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting September 14, 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: Special Orders of the Day 1. Appointment of one Candidate to the Human Relations Commission for a Partial Term Ending May 31, 2021 and two Candidates to the Public Art Commission for Three-year Terms Ending May 31, 2023. First Round of voting for one position on the Human Relations Commission with term ending May 15, 2021. Voting For: Nilofer Chollampat DuBois, Filseth, Kou Voting For: Sunita de Tourreil Fine, Tanaka Voting For: Sofia Fojas Cormack Voting For: Curt Kinsky Kniss Voting For: Paula Rugg Voting For: Lestina Trainor Beth Minor, City Clerk announced that a majority vote for any candidate was not received and a second round of voting is needed. Second Round of voting for one position on the Human Relations Commission with term ending May 15, 2021. Voting For: Nilofer Chollampat DuBois, Filseth, Kou Voting For: Sunita de Tourreil Cormack, Fine, Kniss, Tanaka Voting For: Sofia Fojas Voting For: Curt Kinsky DRAFT ACTION MINUTES Page 2 of 6 City Council Meeting Draft Action Minutes: 9/14/2020 Voting For: Paula Rugg Voting For: Lestina Trainor Beth Minor, City Clerk announced that Sunita de Tourreil with 4 votes was appointed to the Human Relations Commission. First Round of voting for two positions on the Public Art Commission with terms ending May 15, 2023. Voting For: Djibril Drame Voting For: Marilyn Gottlieb-Roberts Tanaka Voting For: Radina Philyaw Voting For: Hsinya Shen DuBois, Filseth, Kou, Tanaka Voting For: Harriet Stern Cormack, Fine, Kniss Voting For: Katherine Talbot Voting For: Nia Taylor Cormack, DuBois, Filseth, Fine, Kniss, Kou Beth Minor, City Clerk announced that Nia Taylor with 6 votes, and Hsinya Shen with 4 votes were both appointed to the Public Art Commission. Minutes Approval 2. Approval of Action Minutes for the August 17 and 24, 2020 City Council Meetings. MOTION: Mayor Fine moved, seconded by Council Member Kniss to approve the Action Minutes for the August 17 and 24, 2020 City Council Meetings, with the inclusion of “Plan” after Carbon Neutral in the August 24, 2020 minutes. MOTION PASSED: 7-0 Consent Calendar MOTION: Council Member Kniss moved, seconded by Council Member Tanaka, third by Council Member Cormack to remove Agenda Item Number 4, “Approval of an Extension of the Pilot Phase of the Old Palo Alto Residential Preferential Parking Program…” from the Agenda do be heard at a later date. DRAFT ACTION MINUTES Page 3 of 6 City Council Meeting Draft Action Minutes: 9/14/2020 MOTION: Mayor Fine moved, seconded by Council Member Cormack to approve Agenda Item Numbers 3, 5-7. 3. Approval of Contract Number C21178263 With McGuire Pacific Constructors, Not-to-Exceed $130,000, for On-call Residential Preferential Parking Program (RPP) Signs and Installation. 4. Approval of an Extension of the Pilot Phase of the Old Palo Alto Residential Preferential Parking Program (RPP) for a Period of Twelve Months. 5. QUASI-JUDICIAL. 4175 Page Mill Road [20PLN-00040]: Request for Site and Design Review to Allow Replacement of Vault Restroom In- situ With Prefabricated CXT Vault Restroom, Installation of American Disabilities Act (ADA) Parking Stalls, Construction of an ADA Path of Travel, and Minor Grading of an Existing Gravel Parking lot. Environmental Assessment: Exempt. Zoning District: Open Space (OS). 6. Adoption of Revised Salary Schedules for Various City Employee Groups Including Service Employees International Union (SEIU), SEIU- hourly and Limited-hourly Employees; Revision to the Management and Professional Employees’ Compensation Plan. 7. Approval of Three Items Related to the Junior Museum and Zoo (JMZ): 1) Acceptance of a $250,000 Federal Grant for a California Dinosaur Garden Exhibition; 2) Approval of a Budget Amendment in the Capital Improvement Fund by a Two-thirds Vote; and 3) Approval of an Extension Until 2022 of the Agreement With the Friends of the Palo Alto Junior Museum and Zoo for Mutual Cooperation and Support to Facilitate the Friends’ Financial and Administrative Support of the JMZ. MOTION PASSED: 7-0 Council took a break at 5:42 P.M. and returned at 5:56 P.M. State/Federal Legislation Update/Action 8. Study Session With the City's State Legislative Advocate Regarding Bills From the 2020 Legislative Session. NO ACTION TAKEN DRAFT ACTION MINUTES Page 4 of 6 City Council Meeting Draft Action Minutes: 9/14/2020 Action Items 9. PUBLIC HEARING: Adoption of an Interim Ordinance Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Temporarily Allow 24-hour Safe Parking on City-owned Sites in the PF Zoning District; and Approve a 3-year Lease With the County of Santa Clara (Tenant) at 2000 Geng Road for Safe Parking. Public Hearing opened at 7:04 P.M. Public Hearing closed at 7:28 P.M. MOTION: Council Member Kou moved, seconded by Vice Mayor DuBois to: A. Find the proposed Interim Ordinance and approval of the lease agreement exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 and 15303 of the CEQA Guidelines; B. Adopt an Interim Ordinance Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Temporarily Allow 24-Hour Safe Parking on City Property in the PF Zoning District (PAMC Chapter 18.28), and Establishing Temporary Regulations Related to Safe Parking (PAMC Chapter 18.42); and C. Approve the Three-year Lease between the City (Landlord) and the County of Santa Clara (Tenant) for City property located at 2000 Geng Road, Palo Alto for Safe Parking. MOTION PASSED: 7-0 Council took a break at 8:26 P.M. and returned at 8:40 P.M. 10. Verbal Update and Possible Direction to Staff on COVID-19 Related to Business Recovery Efforts. MOTION: Vice Mayor DuBois moved, seconded by Council Member Tanaka to direct Staff to explore options and return to Council with: A. Rapid Covid-19 testing and what the City can do to ramp up testing; B. Childcare and how the City can support childcare services; and C. A holiday strategy to support holiday shopping in our major shopping areas. DRAFT ACTION MINUTES Page 5 of 6 City Council Meeting Draft Action Minutes: 9/14/2020 AMENDMENT: Mayor Fine moved, seconded by Council Member Tanaka to direct Staff to explore options and return to Council with: A. Temporarily suspending the Retail Preservation Ordinance outside of the commercial cores; B. Temporarily altering or suspending required parking changes for a change of use; and C. Allowing diverse retail uses in all retail sites. AMENDMENT SPLIT FOR THE PURPOSE OF VOTING: AMENDMENT PART A PASSED: 4-3 DuBois, Filseth, Kou no AMENDMENT PART B PASSED: 4-3 DuBois, Filseth, Kou no AMENDMENT PART C PASSED: 7-0 MOTION AS AMENDED RESTATED: Vice Mayor DuBois moved, seconded by Council Member Tanaka to direct Staff explore options and return to Council with: A. Rapid Covid-19 testing and what the City can do to ramp up testing; B. Childcare and how the City can support childcare services; C. A holiday strategy to support holiday shopping in our major shopping areas; D. Temporarily suspending the Retail Preservation Ordinance outside of the commercial cores; E. Temporarily altering or suspending required parking changes for a change of use; and F. Allowing diverse retail uses in all retail sites. MOTION AS AMENDED PASSED: 5-2 Filseth, Kou no Council took a break at 11:02 P.M. and returned at 11:09 P.M. 11. Review and Selection of Select State and Local Measures on the November 2020 Ballot for Possible Support or Oppose Positions. DRAFT ACTION MINUTES Page 6 of 6 City Council Meeting Draft Action Minutes: 9/14/2020 MOTION: Council Member Tanaka moved, seconded by Council Member XX to vote No Position on Proposition 15. MOTION FAILED DUE TO THE LACK OF A SECOND MOTION: Council Member DuBois moved, seconded by Council Member Filseth to vote No Position on Proposition 16. MOTION PASSED: 5-2 Fine, Kniss no MOTION: Mayor Fine moved, seconded by Council Member Kniss to vote Support on Proposition 17. MOTION FAILED: 3-4 DuBois, Filseth, Kou, Tanaka no MOTION: Council Member Filseth moved, seconded by Council Member Kou to vote No Position on Proposition 19. SUBSTITUTE MOTION: Council Member Cormack moved, seconded by Mayor Fine to vote Oppose on Proposition 19. SUBSTITUTE MOTION FAILED: 2-5 DuBois, Filseth, Kou, Tanaka no, Kniss abstain MOTION RESTATED: Council Member Filseth moved, seconded by Council Member Kou to vote No Position on Proposition 19. MOTION PASSED: 7-0 MOTION: Mayor Fine moved, seconded by Council Member Kniss to vote Oppose on Proposition 20. MOTION FAILED: 2-5 Cormack, DuBois, Filseth, Kou, Tanaka no MOTION: Vice Mayor DuBois moved, seconded by Council Member Kou to vote Support on Proposition 21. MOTION FAILED: 3-4 Cormack, Fine, Kniss, Tanaka no MOTION: Vice Mayor DuBois moved, seconded by Mayor Fine to vote Support on Palo Alto Unified School District. MOTION PASSED: 7-0 Adjournment: The meeting was adjourned at 11:44 P.M. City of Palo Alto (ID # 11497) City Council Staff Report Report Type: Consent Calendar Meeting Date: 9/28/2020 City of Palo Alto Page 1 Council Priority: Transportation and Traffic Summary Title: Approval of Contract with BKF Engineers for Churchill Avenue & Alma Street Railroad Crossing Project Title: Approval of Contract Number C21177400 With BKF Engineers for a Maximum Not-to-Exceed Amount of $329,689 for Design and Construction Support Services Related to Churchill Avenue and Alma Street Railroad Crossing Safety Improvements, Capital Improvement Project (PL-20000) From: City Manager Lead Department: Transportation Department Recommendation Staff recommends that the City Council approve and authorize the City Manager or his designee to execute Contract No. C21177400 with BKF Engineers in an amount not to exceed $329,689 to provide engineering design and construction support services for Churchill Avenue and Alma Street Railroad Crossing Safety Improvements, Capital Improvement Project (PL-20000). Background Several years ago, the City of Palo Alto (City), the California Department of Transportation (Caltrans), the County of Santa Clara, and the California Public Utilities Commission (CPUC) initiated a safety review of the intersection and railroad at-grade crossing at Churchill Avenue and Alma Street. This intersection has been identified to receive Section 130 federal funding which is administered by the California Department of Transportation (Caltrans) for elimination of hazards at grade crossings. A diagnostic team comprised of staff from the City, CPUC and Caltrain analyzed the existing conditions at the Churchill/Alma intersection for vehicular travel, bicycle travel, pedestrian pathways, and rail traffic, and developed recommendations. Based on this work, the CPUC Rail Crossing Engineering Section adopted final recommendations for safety improvements to be implemented at this intersection. The recommendations identified both railroad work and local work to be performed by the Peninsula Corridor Joint Powers Board (JPB) and the City, respectively, under separate service contracts with Caltrans Division of Rail. The JPB and the City are responsible for the construction of the improvements identified and assigned to their City of Palo Alto Page 2 agency under their individual Caltrans contracts and are required to coordinate their respective work items. The City executed its service contract with Caltrans Division of Rail on August 16, 2019 and received Notice to Proceed to complete engineering design, final plans, specifications, and cost estimates for improvements identified within the City’s right of way. These improvements are 100% fundable by the Section 130 program on a reimbursement basis. The railroad crossing improvement project at Churchill Avenue and Alma Street is a coordinated project of the Caltrans Division of Rail in cooperation with the JPB and the City. Discussion The City released a Request for Proposals (RFP) on October 30, 2019 for design services needed for proposed improvements and design support during construction for the Churchill Avenue and Alma Street Railroad Crossing Safety Improvement Section 130 Project and received two proposals in response to the RFP. Staff from the Office of Transportation reviewed the proposals, interviewed the consultants and recommended selection of BKF Engineers, based on proposal content and criteria identified in the RFP, including their knowledge of traffic engineering and rail design, experience with projects involving Section 130 funds and prior working relationship with JPB and Caltrain staff. Summary of the solicitation and selection process are outlined below: Proposal Description/Number Churchill/Alma Railroad Crossing Safety Improvement RFP Date: October 30, 2019 Total Days to Respond to RFP: 25 days Pre-proposal Meeting Date: None Interview Date: January 22, 2020 Number of Proposals Received: 2 Proposals Received from: Location (City, State) Selected for oral interview? TJKM Pleasanton, CA Yes BKF Redwood City, CA Yes The proposals were evaluated based on the following criteria: • Qualifications and experience of the staff assigned to the project; • Proposal quality and completeness; • Response time and ability to perform the work; and • Fee City of Palo Alto Page 3 BKF Engineers demonstrated successful completion of projects along the rail corridor, thorough traffic analysis and development of plans, specifications and estimates. They have also demonstrated the ability to complete projects in a timely manner on prior projects. Although interviews were held in January 2020, there has been a delay in awarding this contract. Selecting the consultant for this project was placed on hold as City staff finalized an amendment to the service contract with Caltrans to modify the original contract scope of work from July 2019. With the on-going study of redesigning at-grade rail crossings in Palo Alto, the preferred alternative for Alma/Churchill intersection has not been determined yet. There are three grade separation alternatives currently under consideration for this intersection: • Churchill closure alternative: the railroad tracks will remain at their existing location and elevation (as is). Churchill Avenue will become a T-intersection with Alma Street on the east side and will end at Mariposa Avenue on the west side. A pedestrian/bike only undercrossing will be constructed. • Churchill viaduct alternative: the railroad tracks will be elevated on a structure over Churchill Avenue. The new electrified railroad tracks will be built at the same location as the existing railroad tracks and will begin rising near Homer Avenue, remain elevated over Churchill Avenue, and return to the existing track elevation near the California Avenue Station. • Churchill partial underpass alternative will grade separate Churchill Avenue from the current Caltrain tracks via an underpass; however, there will no longer be through traffic on Churchill Avenue at the intersection with Alma Street. Some improvements listed in the original Caltrans scope of work could potentially conflict or would no longer be valid with these alternatives that are being proposed for the Alma/Churchill grade crossing as part of the Connecting Palo Alto grade separation project. However due to the uncertain timeline for the grade separation project, staff recommends to proceed with the proposed safety improvement project to address existing safety concerns. The diagnostic team recorded four vehicle-train incidents at this location since 2017 in addition to the two crashes from 2009-2015. Amendment to the Caltrans service contract was finalized in June 2020 and removes all bicycle and pedestrian related improvements on the farther approaches of the original scope to minimize any future project conflicts and demolition required, however, the project retains all improvements at the crossing itself and will address the observed safety issues identified by the diagnostic team. Specific Improvements as listed in the amended contract with Caltrans includes: ▪ Install a pre-signal in southeast quadrant for eastbound traffic. City of Palo Alto Page 4 ▪ Modify the existing traffic signal at Churchill Ave and Alma St, including but not limited to: o Replace and relocate the traffic signals in the northeast and northwest quadrants of the Churchill Ave and Alma St intersection. o Install a new traffic signal head in the southeast quadrant. o Install R13A (CA) “No Right Turn on Red” sign in the southwest quadrant for eastbound traffic. o Replacing traffic signal poles, and signal heads. o Update and modification to the phasing and timing. ▪ Install pedestrian improvements in the northwest and northeast quadrants, including widening the sidewalks. ▪ Install three new curb ramps in the northeast and northwest corners of the Churchill Ave and Alma St intersection. ▪ Install new crosswalks for the north and east legs of the Churchill Ave and Alma St intersection. ▪ Install fencing in the northwest quadrant between Churchill Ave and the sidewalk. ▪ Install new street lighting. ▪ Relocate utilities in the northeast and northwest quadrants including gas lines, utility boxes, and utility poles. Timeline Immediately upon execution of a contract, staff will meet with BKF Engineers to begin work and coordinate design efforts with JPB and Caltrans. Resource Impact Funding for the safety improvements to the Alma/Chruchill grade crossing is available in the Council approved Fiscal Year 2021 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements (PL-20000) Capital Improvement Project. This project is funded through a Caltrans Service Contract, dated August 16, 2019, that provides up to $3,996,000 for local road improvements in the City of Palo Alto at the grade crossing located at the intersection of Churchill Avenue and Caltrain railroad grade crossing. The agreement with Caltrans authorizes reimbursement of eligible costs for design and construction incurred during the term of this agreement. The crossing was identified through the Federal Section 130 funds, a federally funded program administered by the states for increasing safety at at-grade highway-rail crossings. The agreement is in effect to July 1, 2022. 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. Policy Implications City of Palo Alto Page 5 The City’s Comprehensive Plan recommends that the City strive to accommodate all modes of travel in its street system. This contract is consistent with the following goals: Goal T-1 Create a sustainable transportation system, complemented by a mix of land uses, that emphasizes walking, bicycling, use of public transportation and other methods to reduce GHG emissions and the use of single-occupancy motor vehicles. Goal T-3 Maintain an efficient roadway network for all users. Goal T-6 Provide a safe environment for motorists, pedestrians and bicyclists on Palo Alto streets. Environmental Review This design services contract is not a project under the California Environmental Quality Act (CEQA). However, given the nature of the proposed improvements for the project (safety improvements to an existing intersection), the project qualifies for a Class 1 Categorical Exemption under CEQA Guidelines Section 15301. The Class 1 exemption covers minor alterations to existing facilities so long as they involve no or negligible expansion of use. Attachments: • Attachment A: C21177400 BKF - Council Ready Professional Services Rev. April 23, 2020 1 CITY OF PALO ALTO CONTRACT NO. C21177400 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND BKF ENGINEERS FOR PROFESSIONAL SERVICES This Agreement is entered into on this 21st day of September, 2020, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and BKF ENGINEERS, a California corporation, located at 255 Shoreline Drive, Suite 200, Redwood City, CA 94065 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to develop Churchill Avenue & Alma Street railroad crossing safety improvement plan (“Project”) and desires to engage a consultant to provide planning, study and analysis in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2025 unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 2 of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Two Hundred Eighty Six Thousand Six Hundred Eighty Six Dollars ($286,686.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exceed Three Hundred Twenty Nine Thousand Six Hundred Eighty Nine Dollars ($329,689.00). The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C-1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 3 perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the City Manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the City Manager will be void. SECTION 12. SUBCONTRACTING. Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: Hexagon Transportation Consultants, Inc. for Traffic Analysis 4 North Second Street, Suite 400 San Jose, CA 95113 Callander Associates for Public Outreach 2025 Gateway Place, Suite 285 San Jose, CA 95110 CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 4 of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Jason Mansfield as the Associate to have supervisory responsibility for the performance, progress, and execution of the Services and Jason Yee as the project manager to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Ruchika Aggarwal, Office of Transportation, 250 Hamilton Ave, Palo Alto, CA 94301, Telephone: (650) 617-3136. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 5 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrent-ly with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 6 SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 7 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CCONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 8 documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 This Project is not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 9 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 [Reserved] 27.11 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 28. FEDERAL AID GRANT ASSURANCES. 28.1. Caltrans Funding Agreement. Pursuant to that certain agreement between the City of Palo Alto and the California Department of Transportation (Caltrans) Division of Rail and Mass Transportation, Service Contract No. 75LX335, as may be amended (referred to herein as the “Caltrans Funding Agreement” and incorporated herein by reference), CITY will receive federal funding through the Section 130 Grade Crossing Improvement Program on a reimbursement basis for the Project, including for the Services to be provided by CONSULTANT under this Agreement. CONSULTANT shall not knowingly take, or knowingly fail to take, any action that may cause CITY (or CITY contractors including CONSULTANT) to violate any provision of the Caltrans Funding Agreement. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 10 28.2. Indemnification of Caltrans. CONSULTANT shall indemnify, hold harmless, and defend Caltrans to the same extent that CONSULTANT is obligated to indemnify, hold harmless, and defend CITY under Section 16 of this Agreement. Caltrans and its officers, employees and agents shall each be an “Indemnified Party” as that term is used in Section 16. 28.3. Nondiscrimination. In addition to Section 22 of this Agreement, CONSULTANT shall comply with the following: During the performance of this Agreement, CONSULTANT shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and denial of family care leave. CONSULTANT and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. CONSULTANT and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code § 12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. CONSULTANT and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement. CONSULTANT shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 11 CONTRACT No. C21177400 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ City Attorney or designee BKF ENGINEERS By: Name: Title: By: Name: Title: Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: HOURLY RATES SCHEDULE EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Brian Scott Principal/Vice President Chief Financial Officer- Jean Chen Professional Services Rev. April 23, 2020 12 EXHIBIT “A” SCOPE OF SERVICES A. Project Description and Background The California Department of Transportation Division of Rail, in cooperation with the Peninsula Corridor Joint Power Board (JPB) and City of Palo Alto (City), has proposed a railroad crossing improvement project at Churchill Ave and Alma Street in Palo Alto to enhance safety. Improvements will be designed and implemented by the City in the City’s right of way, and by the JPB in the JPB’s right of way. The two agencies will need to coordinate their respective work. Consultant will perform the services described in Section B of this Exhibit to implement the project improvements that the City is responsible for performing. This project will be federally funded under the Railway-Highway Crossings (Section 130) Program for the elimination of hazards at railway-highway crossings. 1. Location and Summary of Existing Condition The railroad crossing at Alma Street and Churchill Avenue is a three-lane roadway with two eastbound lanes and one westbound. The two eastbound lanes consist of one combined through/left turn lane and a dedicated right turn lane. Palo Alto high school is located in the northwest quadrant of the intersection. There is also a bicycle lane through the crossing for eastbound traffic. A westbound bicycle lane starts just outside of the crossing in the northwest quadrant. The rail crossing is a double-track crossing of the Caltrain mainline and there are currently 96 trains per day passing by this intersection at speeds up to 79 miles per hour (mph). The crossing has a Commission Standard 9-A (additional flashing lights on a mast arm) for eastbound traffic and a Commission Standard 9 (flashing light signals with automatic gates) for westbound traffic. There are full pedestrian treatments in all four quadrants, consisting of Commission Standard 9 pedestrian gates, exit swing gates, channelization, and tactile strips. The crossing has a concrete panel crossing surface. The Alma Street and Churchill Avenue intersection is located immediately east of the crossing. The traffic signals are interconnected with advance railroad preemption. There is enough storage space for one vehicle between the intersection and the railroad tracks. This crossing experiences a large volume of bicycle traffic during the morning and afternoon school commute hours. The existing sidewalk and roadway intersection is near capacity when accommodating the large number of bicyclists using this intersection in that most bicyclists have to mix with vehicular traffic resulting in an uncomfortable situation for pedestrians, bicyclists, and vehicles. Potential widening of the sidewalk would provide larger waiting space in the northeast quadrant for pedestrians and bicyclists. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 13 In addition, eastbound motorists often queue within the train crossing envelope, due to the small storage space. Installing a pre-signal will better keep motorists outside of the dynamic envelope. 2. Required Intersection Improvements The California Public Utilities Commission (CPUC) Rail Crossing Engineering Section made final recommendations for the safety improvements to be funded under the Section 130 program at the Alma/Churchill at-grade railroad crossing, based on recommendations developed by a diagnostic team that analyzed the existing conditions with respect to vehicular travel, bicycle travel, pedestrian pathways, and rail traffic. While some of elements below already exist with another recent project at this crossing, the Section 130 required improvements include, but are not limited to the following: i. Install a pre-signal in the southeast quadrant for eastbound traffic. ii. Install R13A (CA) “No Right Turn on Red” sign in the southwest quadrant for eastbound traffic. iii. Install pedestrian improvements in the northwest and northeast quadrants, including widening the sidewalks. iv. Install three new curb ramps in the northeast and northwest corners of the Churchill Ave and Alma St intersection. v. Install new crosswalks for the north and east legs of the Churchill Ave and Alma St intersection. vi. Install fencing in the northwest quadrant between Churchill Ave and the sidewalk. vii. Replace and Relocate the traffic signals in the northeast and northwest quadrants of the Churchill Ave and Alma St intersection. viii. Install a new traffic signal head in the southeast quadrant. ix. Update and modify signal phasing and timing x. Install new street lighting. xi. Relocate utilities in the northeast and northwest quadrants including gas lines, utility boxes, and utility poles. All modifications shall be in accordance with the CAMUTCD, and CPUC General Guidelines. 3. Project Coordination In addition to coordinating work on this project with the JPB, a separate City project is underway that will require coordination. The City is concurrently working on a design for the Churchill Avenue Enhanced Bikeway Project Improvements. The project limits of this bicycle safety project begin west of the tracks, along the north side, and continue up towards El Camino Real. Working closely and coordinating the design of this Alma/Churchill project with the project designer for the bicycle safety project is required to make sure that the design does not cause a conflict with either project. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 14 B. SCOPE OF WORK: 1. Task One: Concept Plan Lines & Project Approvals A. Consultant shall complete all tasks required to finalize the conceptual design of permanent pedestrian improvements along Churchill Avenue (some improvements shown on the concept plan included with the RFP, and also shown in the Proposed Innovations section of Consultant’s proposal). Together with the conceptual design, Consultant shall provide a preliminary cost estimate and renderings.\ B. Consultant shall conduct any potholing required in order to verify any utility relocations that might be required as a result of a new signal pole foundation on the southeast corner of the intersection. Utility identification and survey is included in Task Two. C. Consultant shall prepare a traffic analysis to evaluate the implications of the proposed improvements using the existing traffic volumes and model (with train preemption). Results and evaluation will include: i. Traffic signal’s operational Level of Service (LOS). This analysis shall include an evaluation of the AM and PM peak hours for the existing and proposed configuration, and identify any potential degradation of the intersection by any of the above improvements. ii. Queue lengths for vehicles, bicycles, and pedestrians. iii. Signal phasing and timing opportunities. This analysis shall be reported in the form of a Technical Memorandum. D. Consultant shall prepare outreach and presentation materials, and meeting notices for either virtual meetings or in-person meetings with the following groups: Palo Alto residents/community, Palo Alto Unified School District and JPB Staff. The Consultant team will be comprised of individuals who together demonstrate a strong history of working cooperatively and successfully with each of these group. The proposed roadway changes should at a minimum incorporate the scope of work described above. The meetings with Palo Alto residents/community will include: i. Public Outreach Meeting #1 will present a range of potential improvements. The purpose of this first meeting is to educate the community on the project objectives, solicit site-specific feedback on existing issues, and understand existing community concerns. ii. Public Outreach Meeting #2 will present plan alternatives. The purpose of this second meeting is to report back to the community the existing community concerns, educate the community about the plan alternatives, and solicit feedback on development of a preferred alternative. After final development of the concept plan alignment, the Consultant shall begin coordination with JPB to seek any design exceptions and appropriate permits required for the implementation of the project. iii. Public Outreach Meeting #3 will present the preferred concept plan. The purpose of this third meeting is to report back to the community their feedback on the alternatives, educate the community about the preferred concept plan, and solicit input on design refinements. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 15 E. Following receipt of City, JPB and all other staff/agency comments and revisions, the Consultant shall present the conceptual design for review and approval by the Palo Alto Pedestrian and Bicycle Advisory Committee (PABAC) and the Planning and Transportation Commission. The City will be responsible for scheduling these meetings. Following PABAC and Planning and Transportation Commissions’ recommendations, the Consultants shall present the conceptual design for review and approval by the City Council (if needed). The proposed project is categorically exempt from the requirements of the California Environmental Quality Act, as amended (California Public Resources Code 21084). No further environmental review will be required. F. Consultant shall also serve as a scribe at all meetings described above and provide the City with meeting notes and action items following each meeting. Task One Deliverables include the following items: i. Outreach Plan ii. Assumed total of up to 12 meetings. iii. Traffic Memorandum iv. 35% Design (finalize concept plan lines) v. Illustrative project drawings/renderings (a single 3D visual simulation, if needed), presentation materials and preparation of staff reports necessary to convey the conceptual designs to the public and decision-makers vi. Preliminary cost estimates Task Two: Development of Plans, Specifications, and Engineer’s Estimate A. After City Council approval (if required), Consultant shall prepare final design plans, specifications, and engineer’s estimates for construction of the project, based on the approved conceptual design. Improvement plans shall include necessary all required civil details prepared by a Registered Professional Civil Engineer with good standing with the State of California. Proposed improvements may include, but are not limited to, the following types of elements: surveying, traffic signal modifications, traffic operations analysis, street lighting improvements, roadway resurfacing, sidewalk realignment and/or widening, drainage improvements, utility relocations, signage and striping, traffic calming elements, way-finding, and rail improvements , temporary construction easements, pedestrian safety and any required surveying to properly analyze and design the project. Project Specifications shall be consistent with Palo Alto Standard Specifications. During plan development, the Consultant shall provide 50% and 100% plans and engineer’s estimates based on the improvement plans and comparable bids for similar projects to ensure the project remains within the project budget. B. Consultant Team shall prepare its own survey and potholing to properly analyze the project area in order to prepare accurate design plans for construction. The City will make available any survey and CAD files prepared as part of past studies (if available). Consultant shall prepare the following: i. A Boundary Survey will be prepared in conformance with the requirements of the Professional Land Surveyors’ Act. (CA Business & Professions Code Chapter 15 – Article 1). The boundary information will be limited to the right of way lines of DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 16 Alma St, Churchill Ave and the JBP boundary in the project area as defined in the RFP. ii. A Topographic Survey will be prepared to document the existing conditions of the site defined in the RFP. A combination of conventional surveying methods will be utilized in all areas up to the JPB boundary, with 3d scanning technology being employed within the JPB boundary. The 3d scanning will provide the ability to gather topographic data without having to be within the JPB boundary. All site features will be located within the project limits including the existing fences, driveways, curb, gutter and sidewalks, buildings and sheds, spot grades, parking stalls, trees, parking signage posts, walls, tracks and visible surface utilities and USA paint and visible Storm and Sanitary sewer structures and inverts of pipes. Vertical Control – After horizontal control has been established, in the boundary task above, a level loop will be performed for vertical control (elevations). The vertical datum for the project will be NAVD 88 (North American Vertical Datum of 1988) or the City of Palo Alto datum. Utility investigation services will be performed using industry acceptable methods, including Ground Penetrating Radar (GPR) to determine the approximate horizontal position and count of existing utilities within the areas designated by the client. Field crews will use a combination of water-based paint and pin flags (in the appropriate APWA color) to mark the results of investigation on the ground surface. Available utility record information will be compared with the results of field investigation services to attempt to map all underground utilities. Utilities not identifiable due to lack of utility record information or above ground appurtenances will be marked with pink paint on the ground surface and annotated as “Unknown” on the project deliverables. At locations where pole foundations will be proposed, a potholing budget has been included. It is assumed, for budgeting purposes, that a maximum of 5 potholes would be required. C. Meetings with City and JPB staff for the review of design plans, specifications and construction staging shall be held virtually on a regular basis. The City will be responsible for securing community and project team meeting facilities. The Consultant shall be responsible for the preparation of all outreach materials, including media ads to be coordinated for publication by the City, meeting notice flyers for mailing to residents by the City, and community meeting presentations. The Consultant shall also serve as a scribe at all community meetings and provide the City with meeting notes and action notes within 5- business days of each meeting. The Consultant should plan on the following meeting schedule (all held virtually) to successfully develop the final project plans (up to 12 meetings during task 1 and up to 6 meetings during task 2): i. Monthly coordination meetings with City and JPB staff ii. Attend two (2) community outreach meetings iii. One (1) Palo Alto Bicycle Advisory Committee meetings, iv. Two (2) Palo Alto Unified School District meetings v. One (1) City-School Traffic Safety Committee meeting vi. One (1) PTC meeting vii. One (1) City Council meeting. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 17 Public Outreach Meeting #4 will present 50% design level plans. The purpose of this meeting is to report back to the community their feedback on the preferred plan and show how the current design reflects the community feedback. Deliverables for Task Two include the following items: i. 50% PS&E Design Packages (24”x36” size plans, up to 10 sets, soft copy in pdf format) ii. 100% PS&E Bid Package (24”x36” size plans, 5 sets, soft copy in pdf format) iii. Technical Project Specifications iv. 50% and 100% Engineers Cost Estimate v. Procurement of all necessary permits to allow for the construction of the project Task Three: Alternative Concept Plan Line A. Consultant shall prepare a conceptual design of an alternate scenario to include the pedestrian crossing along Churchill Avenue and other similar alternatives such as eliminating the Alma right turn pocket. The results of this task may be required concurrent with Task One at City’s request. Deliverables include the following items: i. 35% Design (alternative concept plan lines) ii. Illustrative drawings and presentation materials and preparation of staff reports necessary to convey the conceptual designs to the public and decision-makers iii. Preliminary cost estimates Task Four: Construction Support Services A. Consultant shall provide design support services to assist the City in the implementation of the construction phase. Tasks include, but are not limited to: City’s selected construction contractor’s submittal review/approval, responding to RFI’s and resolving any design conflicts/changes. Optional Tasks: The following are not included in this basic Scope of Services, but may be added as additional services at City’s request, and subject to negotiation of a fee and amendment of this Agreement if additional compensation is required. A. Visual Simulation: Prepare an additional computer generated schematic-level visual simulation to illustrate spatial relationships and help community members better visualize proposed improvements. B. On-line Surveys: Prepare an on-line survey as part of Task One to solicit community feedback on the developing plan concepts and summarize results in input summary memo. C. Green Infrastructure: The incorporation of green infrastructure in this project is not shown on the concept plan included with the RFP. Without knowing what elements of DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 18 green infrastructure might be included, if at all, the budget cannot be estimated for this optional service. Options and alternatives can be identified and evaluated and then designed as part of this optional service. D. Street lighting and Rule 20 undergrounding: Street lighting at the intersection and crossing is included in the basic Scope of Services above. Without knowing what extents of street lighting along Churchill might be included, if at all, the budget cannot be estimated for this optional service. Options and alternatives can be identified and evaluated and then designed as part of this optional service for undergrounding or street lighting along Churchill. DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 19 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. Milestones Completion No. of Days/Weeks From NTP 1. Concept Plan Lines & Project Approvals September 2021 2. Development of Plans, Specifications & Engineers Estimate September 2022 3. Alternative Concept Plan Line September 2022 4. Construction Support Services March 2024 DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 20 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $ 45,472.00 (Concept Plan Lines & Project Approvals) Task 1C $25,850.00 (Traffic Analysis by subconsultant, Hexagon) Task 1D $40,187.00 (Public Outreach by subconsultant, Callander Associates) Task 2 $135,912.00 (Development of Plans, Specifications & Engineers Estimate) Task 3 $ 16,794.00 (Alternative Concept Plan) Task 4 $ 18,144.00 (Construction Support Services) Sub-total Basic Services $282,359.00 Reimbursable Expenses $ 4,327.00 Total Basic Services, and Reimbursable expenses $286,686.00 Additional Services (Not to Exceed) $ 43,003.00 DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 21 Maximum Total Compensation $329,689.00 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1,000.00 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s project manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 22 EXHIBIT “C-1” HOURLY RATES SCHEDULE Job Positions Hourly Rate Associate $219 Project Manager $209 Project Engineer 157 2-Person Survey $295 Project Surveyor $157 DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 23 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Professional Services Rev. April 23, 2020 24 ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: AF690580-99DF-44FA-8C58-A7FAEFC1C0B0 Certificate Of Completion Envelope Id: AF69058099DF44FA8C58A7FAEFC1C0B0 Status: Completed Subject: Please DocuSign: C21177400 BKF - Legal Reviewed with Section 28v.2.pdf Source Envelope: Document Pages: 24 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Terry Loo AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Terry.Loo@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 9/9/2020 3:53:14 PM Holder: Terry Loo Terry.Loo@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Brian Scott bscott@bkf.com Principal/Vice President Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 50.209.179.1 Sent: 9/9/2020 3:55:45 PM Viewed: 9/9/2020 3:56:29 PM Signed: 9/9/2020 3:58:19 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Jean Chen jchen@bkf.com Chief Financial Officer- Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 206.169.98.234 Sent: 9/9/2020 3:58:23 PM Viewed: 9/9/2020 4:24:24 PM Signed: 9/9/2020 4:24:57 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Ruchika Aggarwal Ruchika.Aggarwal@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 9/9/2020 4:25:01 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Carbon Copy Events Status Timestamp Jason Mansfield jmansfield@bkf.com Security Level: Email, Account Authentication (None) Sent: 9/9/2020 4:25:02 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sarah Wilson Sarah.Wilson@CityofPaloAlto.org City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 9/9/2020 4:25:03 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 9/9/2020 4:25:03 PM Certified Delivered Security Checked 9/9/2020 4:25:03 PM Signing Complete Security Checked 9/9/2020 4:25:03 PM Completed Security Checked 9/9/2020 4:25:03 PM Payment Events Status Timestamps City of Palo Alto (ID # 11562) City Council Staff Report Report Type: Consent Calendar Meeting Date: 9/28/2020 City of Palo Alto Page 1 Council Priority: Climate/Sustainability and Climate Action Plan Summary Title: Approval of the 2019 Annual Power Source Disclosure Reports Title: Adoption of a Resolution Approving and Attesting to the Veracity of the City's 2019 Annual Power Source Disclosure and Power Content Label Reports From: City Manager Lead Department: Utilities Recommendation Staff recommends that the City Council adopt a resolution (Attachment A) approving the City’s two Power Source Disclosure reports for 2019 (attached as Exhibit A in Attachment A) and attesting to their veracity. Background Senate Bill 1305 (SB 1305) was approved in 1997 to ensure that all retail suppliers of electricity disclose to consumers the sources of energy used to provide electric service in an accurate, reliable and easy to understand manner. The SB 1305 Report is commonly referred to as the Power Source Disclosure (PSD) report, which shows the City’s electric portfolio purchases for the prior calendar year. The City of Palo Alto normally submits an annual PSD Report to the California Energy Commission (CEC) by June 1st of each year; however, due to the Covid-19 pandemic, in 2020 the CEC extended the PSD Report deadline (for all retail electricity suppliers) to July 20th. The information contained in the PSD report also contains the fuel mix for the City’s retail electricity sales for the prior year, which is used to prepare the City’s annual Power Content Label (PCL). The City mails the PCL to the City’s customers, and posts it on the City’s website by October 1st of each year at https://www.cityofpaloalto.org/gov/depts/utl/residents/resources/pcm/power_content_label. asp and on the CEC’s website at https://www.energy.ca.gov/programs-and- topics/programs/power-source-disclosure/power-content-label. CITY OF PALO ALTO City of Palo Alto Page 2 Discussion In 2017, the CEC updated the regulation1 implementing SB 1305, making the changes retroactively effective in October 2016. One of the changes required utilities to engage a third- party certified public accountant to perform an audit to verify the specific purchases, resales, and self-consumption of energy by fuel type, but included an exemption for publicly owned electric utilities, if the Council formally attested to the veracity of the annual report. In Palo Alto’s case, this meant that the PSD report for the City’s standard power mix could be approved by the City Council, as described above. However, the City’s voluntary PaloAltoGreen product, which is available to all commercial customers and allows them to pay a small premium in order to receive a power supply comprising only wind and solar generation, was subject to the audit requirement. (The third-party certified public accountant that the City hired to perform the audit, Lakeshore Global, approved the City’s PSD report for the 2018 PaloAltoGreen program in November 2019.) A May 2020 update to the CEC regulation2 implementing SB 1305 now allows the City Council to attest to the veracity of each PSD report and PCL for the previous year, and avoid having to hire a third-party auditor to review the PSD report for the 2019 PaloAltoGreen product. The PSD report submissions for both the standard Carbon Neutral product and the PaloAltoGreen product are prepared by the Northern California Power Agency (NCPA), a joint powers agency of which Palo Alto is a member. The draft PSD reports are then checked by multiple City staff members against the City’s account in the Western Renewable Energy Generation Information System (WREGIS), where the City tracks its renewable and carbon-free energy. The PaloAltoGreen renewable energy supplies are then verified by a third-party verifier, in order to achieve Green-e certification for the program. In 2019, CPAU’s hydroelectric generation was above long-term average levels, after the state experienced relatively wet years in 2017 and 2018. Because of this, along with steady declines in the City’s annual load in recent years, and with five new utility-scale solar projects that came online in the past few years, Palo Alto had a significant overall surplus of energy. Utilities Department staff sold this excess generation (216,000 MWh) as renewable energy to other utilities, yielding over $3.5 million in revenue to offset other supply purchase costs. As a result of these renewable energy sales, the share of the City’s standard power mix that comes from eligible renewables sources was lower in 2019 (36.3%) than in 2018 (65%). However, as noted earlier, the City’s power supply remained carbon neutral in 2019 in accordance with the City’s Council-adopted Carbon Neutral Plan (Staff Report 11556). (Note that the power mix percentages listed in the PSD reports to the CEC reflect the total energy the City purchased during the prior calendar year, as opposed to the information on the PCL for consumers, which 1 “Power Source Disclosure Program Regulations,” California Energy Commission, CEC-300-2017-048, October 2016. http://docketpublic.energy.ca.gov/PublicDocuments/14-OIR- 01/TN216978_20170412T103905_Power_Source_Disclosure_Program_Amended_Regulations.pdf. 2 California Code of Regulations Title 20, Sections 1394.2(a)(2). https://efiling.energy.ca.gov/GetDocument.aspx?tn=232986&DocumentContentId=65451. City of Palo Alto Page 3 displays the City’s retail electricity sales during the prior calendar year.) Utilities Department staff submitted the City’s annual PSD report for calendar year 2019 (attached as Exhibit A in Attachment A) to the CEC in July 2020, along with the associated staff attestation form. Staff subsequently submitted an updated set of annual PSD reports to the CEC after Utilities staff discovered a minor clerical error with the original submission. The 2019 PCL will be mailed to each electric utility customer as a bill insert and posted on the City’s website in October 2020, in accordance with the regulation. The attached resolution (Attachment A) approves the annual PSD reports for both the standard power mix and the PaloAltoGreen product and provides the attestation to the veracity of all of the reports as required for exemption from the third-party audit requirement. Staff anticipates submitting the City’s annual PSD report for calendar year 2020 to the CEC around June 2021 and providing the 2021 PCL to electric customers around September 2021. Resource Impact Adoption of the attached resolution will not result in a financial impact to the City. Policy Implications Adoption of the attached resolution will enable the City to comply with the CEC regulation implementing SB 1305 (California Code of Regulations, title 20, sections 1391 to 1394). Environmental Review Adoption of the attached resolution is not subject to California Environmental Quality Act (CEQA) review as an administrative government activity that will not result in any direct or indirect physical change to the environment as a result (CEQA Guidelines section 15378(b)(5)). Attachments: • Attachment A: Resolution Approving 2019 Power Source Disclosure Reports *NOT YET APPROVED* 6055424 Resolution No. _______ Resolution of the Council of the City of Palo Alto Approving and Attesting to the Veracity of the City’s 2019 Power Source Disclosure and Power Content Label Reports R E C I T A L S A.The California Legislature adopted Senate Bill 1305 in 1997 to ensure that all retail suppliers of electricity, including the City of Palo Alto, disclose to consumers the sources of energy used to provide electric service in an accurate, reliable and easy to understand manner. B.The SB 1305 Report is commonly referred to as the Power Source Disclosure (PSD) report, which shows the City’s electric portfolio purchases for the prior calendar year, as well as the fuel mix for the City’s retail electricity sales for the prior calendar year. C.The information contained in the PSD report is used to prepare the City’s annual Power Content Label (PCL), which discloses the fuel mix of the City’s retail electricity sales during the prior calendar year, as well as the fuel mix for the state as a whole, and which is mailed to the City’s electric utility customers via a bill insert every October. D.California Code of Regs., title 20, sections 1394.2(a)(2), updated by the California Energy Commission effective May 2020, allows the City Council to attest to the veracity of each PSD report and PCL for the previous year, including the reports for Palo Alto’s voluntary PaloAltoGreen product, which is provided to commercial customers who participate in the PaloAltoGreen program. E.The PSD report submissions for both the City’s standard carbon neutral power portfolio, and the City’s PaloAltoGreen product are prepared by the Northern California Power Agency (NCPA), a joint powers agency of which Palo Alto is a member. The draft PSD reports are then checked by City staff against the City’s account in the Western Renewable Energy Generation Information System (WREGIS), where the City tracks its renewable and carbon-free energy. The PaloAltoGreen renewable energy supplies are then verified by a third-party verifier, in order to achieve Green-e certification for that program. F.In July 2020, Utilities Department staff submitted the 2019 Annual PSD reports for both the City’s standard carbon neutral portfolio and the PaloAltoGreen program, to the Energy Commission in accordance with the applicable regulations. Staff submitted an updated set of 2019 Annual PSD reports to the Energy Commission in August 2020. Attachment A *NOT YET APPROVED* 6055424 The Council of the City of Palo Alto (“City”) RESOLVES as follows: SECTION 1. The City Council approves the submission and attests to the veracity of the 2019 Annual Power Source Disclosure and Power Content Label Reports for the City’s standard carbon neutral portfolio, and for the City’s voluntary PaloAltoGreen program (attached as Exhibit A to this resolution) which staff submitted to the California Energy Commission in August 2020. SECTION 2. The Council finds that the adoption of this resolution 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 Version: May 8, 2020 Name James Stack Title Senior Resource Planner Mailing Address 250 Hamilton Ave., 3rd Floor City, State, Zip Palo Alto, CA 94301 Phone (650) 329-2314 E-mail james.stack@cityofpaloalto.org Website URL for PCL Posting www.cityofpaloalto.org/PowerContentLabel Submit the Annual Report and signed Attestation in PDF format with the Excel version of the Annual Report to PSDprogram@energy.ca.gov. Remember to complete the Retail Supplier Name, Electricity Portfolio Name, and contact information above, and submit separate reports and attestations for each additional portfolio if multiple were offered in the previous year. NOTE: Information submitted in this report is not automatically held confidential. If your company wishes the information submitted to be considered confidential an authorized representative must submit an application for confidential designation (CEC-13), which can be found on the California Energy Commissions's website at https://www.energy.ca.gov/about/divisions-and-offices/chief-counsels-office. If you have questions, contact Power Source Disclosure (PSD) staff at PSDprogram@energy.ca.gov or (916) 654-3954. ELECTRICITY PORTFOLIO NAME Standard Rate CONTACT INFORMATION City of Palo Alto Utilities ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure For the Year Ending December 31, 2019 Retail suppliers are required to use the posted template and are not allowed to make edits to this format. Please complete all requested information. GENERAL INSTRUCTIONS RETAIL SUPPLIER NAME Exhibit A Version: May 8, 2020 861,561 880,044 - 18,483 8 - 880,035 DIRECTLY DELIVERED RENEWABLES Facility Name Fuel Type State or Province WREGIS ID RPS ID N/A EIA ID Gross MWh Procured MWh Resold Net MWh Procured Adjusted Net MWh Procured N/A Half Moon Bay (Ox Mountain) Biomass & biowaste CA W 2033 60022A 56895 43,474 19,424 24,050 23,545 Johnson Canyon LFG Biomass & biowaste CA W 3397 61353A 58397 10,422 4,589 5,833 5,711 Keller Canyon Biomass & biowaste CA W 2071 61298A 56897 14,939 6,502 8,437 8,260 San Joaquin LFG Biomass & biowaste CA W 3883 62433A 58436 30,653 13,872 16,781 16,429 Santa Cruz LFG Biomass & biowaste CA W 2014 61297A 56428 9,348 3,865 5,483 5,368 New Spicer Meadows Eligible hydro CA W 1260 61580A 54554 5,623 2,451 3,172 3,105 WAPA - Lewiston Eligible hydro CA W 1108 61044A 485 485 475 WAPA - Nimbus Eligible hydro CA W 1161 61045A 444 5,747 5,747 5,626 WAPA - Stampede Eligible hydro CA W 1177 61046A 7066 1,595 1,595 1,562 275 Cambridge Ave Parking Garage Solar CA W 5649 63982A 463 463 453 445 Bryant St. Parking Garage Solar CA W 5647 63610A 383 383 375 475 Campridge Ave Parking Garage Solar CA W 5650 63981A 491 491 481 520 Webster St. Parking Garage Solar CA W 5648 63611A 583 583 571 Crow Creek Solar (Frontier) Solar CA W 4962 62248A 60039 52,091 18,818 33,273 32,575 EE Kettleman - Land - Centaurus Solar CA W 4695 62422A 59633 53,502 18,635 34,867 34,135 Elevation Solar C (Big Sky 2) Solar CA W 5298 63192A 59964 110,990 44,962 66,028 64,642 Hayworth Solar (Lamont) Solar CA W 4719 62744A 59009 64,546 23,626 40,920 40,061 HP Inc - Palo Alto HQ Solar CA W 7686 64036A 355 355 348 Hydro Solar Solar CA W 1266 62543A 3 3 3 UUCPA (505 E. Charlestom Rd)Solar CA W 7382 63983A 218 218 213 Western Antelope Blue Sky Ranch B (Big Sky 4) Solar CA W 5300 61518A 59961 55,145 20,172 34,973 34,239 High Winds Wind CA W 229 60726A 56075 36,627 14,157 22,470 21,998 Shiloh Wind CA W 231 60488A 56362 37,460 25,035 12,425 12,164 ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure SCHEDULE 1: PROCUREMENTS AND RETAIL SALES For the Year Ending December 31, 2019 City of Palo Alto Utilities Standard Rate Net Nuclear, Large Hydro & Renewables Retail Sales (MWh) Unspecified Power (MWh) Procurement to be adjusted Net Natural Gas Net Coal & Other Fossil Fuels Net Specified Procurement (MWh) Instructions: Enter information about power procurements underlying this electricity portfolio for which your company is filing the Annual Report. Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out. For firmed-and-shaped imports, provide the EIA ID of the substitute power, not the generator ID of the RECs. For EIA IDs for unspecified power or specified system mixes from asset-controlling suppliers, enter "unspecified", "BPA," "Powerex,", or "Tacoma" as applicable. For specified procurements of ACS power, use the ACS Procurement Calculator to calculate the resource breakdown comprising the ACS system mix. Procurements of unspecified power must not be entered as line items below; unspecified power will be calculated automatically in cell L9. Unbundled RECs must not be entered on Schedule 1 ; these products must be entered on Schedule 2. At the bottom portion of the schedule, provide the other electricity end-uses that are not retail sales including, but not limited to transmission and distribution losses or municipal street lighting. Amounts should be in megawatt-hours. Version: May 8, 2020 FIRMED-AND-SHAPED IMPORTS Facility Name Fuel Type Province WREGIS ID RPS ID REC Substitute Procured MWh Resold Procured MWh N/A - - - - - - - - - - - - - - - - - - - - - - SPECIFIED NON-RENEWABLE PROCUREMENTS Facility Name Fuel Type Province WREGIS ID RPS ID REC EIA ID Procured MWh Resold Procured MWh N/A Collierville Large hydro CA W 1258, W 1259 54555 209,381 209,381 204,986 Gianelli Powerplant (units 2 and 6)Large hydro CA W 1162, W 1288 448 - - WAPA - Folsom Large hydro CA W 1156 thru W 1158 441 52,091 52,091 50,997 WAPA - J.F.Carr Large hydro CA W 1164 442 17,176 17,176 16,815 WAPA - Keswick Large hydro CA W 1165 443 23,511 23,511 23,017 WAPA - New Melones Large hydro CA W 1159, W 1160 6158 54,059 54,059 52,924 WAPA - O'Neill Large hydro CA W 1167, W 1186 446 321 321 315 WAPA - Shasta Large hydro CA W 1168 thru W 1172 445 161,665 161,665 158,271 WAPA - Spring Creek Large hydro CA W 1174 450 24,339 24,339 23,828 WAPA - Trinity Large hydro CA W 1175, W 1176 451 18,457 18,457 18,069 City of Palo Alto COBUG Natural gas CA 57714 8 8 - - - - - - - - - - - - - PROCUREMENTS FROM ASSET-CONTROLLING SUPPLIERS Facility Name Fuel Type N/A N/A N/A N/A EIA ID Gross MWh Procured MWh Resold Net MWh Procured Adjusted Net MWh Procured N/A - - - - - - - - - - - Version: May 8, 2020 Adjusted Net Procured (MWh) Percent of Total Retail Sales Renewable Procurements 312,338 36.3% Biomass & Biowaste 59,312 6.9% Geothermal - 0.0% Eligible Hydroelectric 10,768 1.2% Solar 208,096 24.2% Wind 34,162 4.0% Coal - 0.0% Large Hydroelectric 549,223 63.7% Natural gas - 0.0% Nuclear - 0.0% Other - 0.0% Unspecified Power - 0.0% Total 861,561 100.0% 861,561 0.0% ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source for the year ending December 31, 2019 Standard Rate Total Retail Sales (MWh) Percentage of Retail Sales Covered by Retired Unbundled RECs City of Palo Alto Utilities SCHEDULE 3: ANNUAL POWER CONTENT LABEL DATA Instructions: No data input is needed on this schedule. Retail suppliers should use these auto-populated calculations to fill out their Power Content Labels. Version: May 8, 2020 ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure ATTESTATION FORM for the year ending December 31, 2019 City of Palo Alto Utilities Standard Rate I, James A. Stack, Senior Resource Planner, declare under penalty of perjury, that the statements contained in this report including Schedules 1, 2, and 3 are true and correct and that I, as an authorized agent of City of Palo Alto Utilities, have authority to submit this report on the company's behalf. I further declare that the megawatt-hours claimed as specified purchases as shown in these Schedules were, to the best of my knowledge, sold once and only once to retail customers. Name: James A. StackRepresenting (Retail Supplier): City of Palo Alto Utilities Signature: __________________________________________________________Dated: August 19, 2020Executed at: Palo Alto, CA Version: May 8, 2020 Name James Stack Title Senior Resource Planner Mailing Address 250 Hamilton Ave., 3rd Floor City, State, Zip Palo Alto, CA 94301 Phone (650) 329-2314 E-mail james.stack@cityofpaloalto.org Website URL for PCL Posting www.cityofpaloalto.org/PowerContentLabel Submit the Annual Report and signed Attestation in PDF format with the Excel version of the Annual Report to PSDprogram@energy.ca.gov. Remember to complete the Retail Supplier Name, Electricity Portfolio Name, and contact information above, and submit separate reports and attestations for each additional portfolio if multiple were offered in the previous year. NOTE: Information submitted in this report is not automatically held confidential. If your company wishes the information submitted to be considered confidential an authorized representative must submit an application for confidential designation (CEC-13), which can be found on the California Energy Commissions's website at https://www.energy.ca.gov/about/divisions-and-offices/chief-counsels-office. If you have questions, contact Power Source Disclosure (PSD) staff at PSDprogram@energy.ca.gov or (916) 654-3954. ELECTRICITY PORTFOLIO NAME Palo Alto Green CONTACT INFORMATION City of Palo Alto Utilities ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure For the Year Ending December 31, 2019 Retail suppliers are required to use the posted template and are not allowed to make edits to this format. Please complete all requested information. GENERAL INSTRUCTIONS RETAIL SUPPLIER NAME Version: May 8, 2020 26,565 26,565 - - - - 26,565 DIRECTLY DELIVERED RENEWABLES Facility Name Fuel Type State or Province WREGIS ID RPS ID N/A EIA ID Gross MWh Procured MWh Resold Net MWh Procured Adjusted Net MWh Procured N/A HP Inc - Palo Alto HQ Solar CA W 7686 64036A 260 260 260 445 Bryant St. Parking Garage Solar CA W 5647 63610A 5 5 5 Shiloh Wind CA W 231 60488A 56362 26,300 26,300 26,300 - - - - FIRMED-AND-SHAPED IMPORTS Facility Name Fuel Type Province WREGIS ID RPS ID REC Substitute Procured MWh Resold Procured MWh Grandfathered - - - - - - - - - - - - - - - - - - - - - - SPECIFIED NON-RENEWABLE PROCUREMENTS Facility Name Fuel Type Province N/A N/A N/A EIA ID Procured MWh Resold Procured MWh N/A - - Net Nuclear, Large Hydro & Renewables ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure SCHEDULE 1: PROCUREMENTS AND RETAIL SALES For the Year Ending December 31, 2019 City of Palo Alto Utilities Palo Alto Green Retail Sales (MWh) Net Specified Procurement (MWh) Unspecified Power (MWh) Procurement to be adjusted Net Natural Gas Net Coal & Other Fossil Fuels Instructions: Enter information about power procurements underlying this electricity portfolio for which your company is filing the Annual Report. Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out. For firmed-and-shaped imports, provide the EIA ID of the substitute power, not the generator ID of the RECs. For EIA IDs for unspecified power or specified system mixes from asset-controlling suppliers, enter "unspecified", "BPA," "Powerex,", or "Tacoma" as applicable. For specified procurements of ACS power, use the ACS Procurement Calculator to calculate the resource breakdown comprising the ACS system mix. Procurements of unspecified power must not be entered as line items below; unspecified power will be calculated automatically in cell L9. Unbundled RECs must not be entered on Schedule 1 ; these products must be entered on Schedule 2. At the bottom portion of the schedule, provide the other electricity end-uses that are not retail sales including, but not limited to transmission and distribution losses or municipal street lighting. Amounts should be in megawatt-hours. Version: May 8, 2020 Adjusted Net Procured (MWh) Percent of Total Retail Sales Renewable Procurements 26,565 100.0% Biomass & Biowaste - 0.0% Geothermal - 0.0% Eligible Hydroelectric - 0.0% Solar 265 1.0% Wind 26,300 99.0% Coal - 0.0% Large Hydroelectric - 0.0% Natural gas - 0.0% Nuclear - 0.0% Other - 0.0% Unspecified Power - 0.0% Total 26,565 100.0% 26,565 0.0%Percentage of Retail Sales Covered by Retired Unbundled RECs ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source SCHEDULE 3: ANNUAL POWER CONTENT LABEL DATA for the year ending December 31, 2019 City of Palo Alto Utilities Palo Alto Green Total Retail Sales (MWh) Instructions: No data input is needed on this schedule. Retail suppliers should use these auto-populated calculations to fill out their Power Content Labels. Version: May 8, 2020 ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure ATTESTATION FORM for the year ending December 31, 2019 City of Palo Alto Utilities Palo Alto Green I, James A. Stack, Senior Resource Planner, declare under penalty of perjury, that the statements contained in this report including Schedules 1, 2, and 3 are true and correct and that I, as an authorized agent of City of Palo Alto Utilities, have authority to submit this report on the company's behalf. I further declare that the megawatt-hours claimed as specified purchases as shown in these Schedules were, to the best of my knowledge, sold once and only once to retail customers. Name: James A. StackRepresenting (Retail Supplier): City of Palo Alto Utilities Signature: __________________________________________________________Dated: August 19, 2020Executed at: Palo Alto, CA City of Palo Alto (ID # 11572) City Council Staff Report Report Type: Consent Calendar Meeting Date: 9/28/2020 City of Palo Alto Page 1 Summary Title: Amendment No. 2 to S20178094 with Management Partners, Inc. Title: Approval of Amendment Number 2 to Contract Number S20178094 With Management Partners, Inc., to Extend the Term Through March 31, 2021 and Increase Compensation by $85,000 for Procurement Advising Services for a new Not-to-Exceed Amount of $170,000 From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council authorize the City Manager or designee to execute Amendment No. 2 (Attachment A) to Contract No. S20178094 with Management Partners, Inc., to extend the term through March 31, 2021 and increase the total not-to-exceed amount by $85,000, bringing the total not-to-exceed amount to $170,000 for consultant services for the City’s Purchasing and Contract Administration Division. Background The City’s Purchasing and Contract Administration Division is housed in the Administrative Services Department and facilitates the sourcing, negotiation, and contracting needs of the City. Support for the organization ranges from purchasing small dollar items (such as parts or equipment), to multi-year capital projects (such as the California Avenue Parking Garage and Public Safety Building), to complex agreements for general, professional, technology and other services. The level of complexity for these projects requires technical expertise to navigate through various analyses, strategies, laws, regulations, and policies. Staff vacancies in the Purchasing and Contract Administration Division, including the Chief Procurement Officer position, have been difficult to fill – which has not been made easier by the COVID-19 pandemic. Recognizing the need for a qualified expert to advise Staff on complex procurements and solicitations and other technical aspects of purchasing and to provide expert advice on how the Division can more effectively manage workload, cycle time, and improve overall business processes, Staff engaged Management Partners, Inc. to provide services in these areas while the Chief Procurement Officer is recruited. The original contract had a total not-to-exceed amount of $85,000 and was entered into on January 27, 2020 for a five-month City of Palo Alto Page 2 term. An exemption to the solicitation process was granted under the Palo Alto Municipal Code (PAMC) section 2.30.360(d) due to the qualifications and technical expertise of the firm’s proposed special advisor for the engagement. Discussion Delays in the recruitment of the Chief Procurement Officer resulted in Amendment No. 1 to this contract, extending the term from June 30, 2020 to December 31, 2020 at no added cost. While the Division continues to actively work to fill this post, the above services continue to be needed. Staff therefore recommends that City Council approve Amendment No. 2 to extend the term of the contract through March 31, 2021 and to increase the total not-to-exceed amount to $170,000. Based on Staff’s recruitment strategy for the Division, Staff anticipates that vacancies will be filled by Spring 2021. Should staffing vacancies be filled prior to this timeline, Staff will cease the services as allowed by the contract terms. Resource Impact Amendment No. 2 adds an additional $85,000 to the agreement with Management Partners, Inc., bringing the total not-to-exceed amount to $170,000. Funding for this contract will be absorbed by the Administrative Service Department’s FY 2021 Adopted Budget, specifically the reallocation of vacancy savings from vacant management staffing in this division. No additional appropriation is needed to fund this contract. Stakeholder Engagement The Purchasing and Contract Administration Division has worked with Management Partners for the past several months and has obtained positive feedback from Departments on the firm’s technical knowledge and friendly customer service approach. Environmental Review This contract is exempt from the California Environmental Quality Act (CEQA). Attachments: • Attachment A: Amendment No. 2 to Contract No. S20178094 Management Partners Vers.: Aug. 5, 2019  Page 1 of 3  AMENDMENT NO. 2 TO CONTRACT NO. S20178094  BETWEEN THE CITY OF PALO ALTO AND  MANAGEMENT PARTNERS, INC.  This Amendment No. 2 (this “Amendment”) to Contract No. S20178094 (the “Contract” as  defined below) is entered into as of September 21, 2020, by and between the CITY OF PALO ALTO,  a California chartered municipal corporation (“CITY”), and MANAGEMENT PARTNERS, INC., an Ohio  Corporation, located at 2107 N. First Street, Suite 470, San Jose, CA 95131 (“CONSULTANT”).  CITY  and CONSULTANT are referred to collectively as the “Parties” in this Amendment.  R E C I T A L S  A.  The Contract (as defined below) was entered into by and between the Parties hereto  for the provision of providing special advisor services for the City’s Purchasing and Contract  Administration Division, as detailed therein.  B.  The Parties now wish to amend the Contract in order to extend the term of the  Contract through March 31, 2021 and to increase the total not‐to‐exceed amount of compensation  by Eight Five thousand dollars ($85,000), for a new total not‐to‐exceed amount of the Contract of  $170,000, as detailed herein.   NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of  this Amendment, the Parties agree:  SECTION 1.  Definitions.  The following definitions shall apply to this Amendment:  a.Contract.  The term “Contract” shall mean Contract No. S20178094 between CONSULTANT and CITY, dated January 27, 2020, as amended by: Amendment No. 1, dated June 27, 2020  b.Other Terms.  Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2, “Term”, of the Contract is hereby amended to read as follows:  “The term of this Agreement shall be from the date of its full execution through  March  31,  2021  unless  terminated  earlier  pursuant  to  Section  19  of  this  Agreement.”  SECTION 3.  Section 4, “Not to Exceed Compensation”, of the Contract is hereby amended  to read as follows:  DocuSign Envelope ID: 2CCD589D-1EDE-481A-AD9A-30FD9A3F4DBA Attachment A Vers.: Aug. 5, 2019  Page 2 of 3  “The compensation to be paid to CONSULTANT for performance of the Services  described in Exhibit “A” (also referred to herein as the “Basic Services”), and  reimbursable expenses, shall not exceed One Hundred Seventy Thousand Dollars  ($170,000.00).  CONSULTANT  agrees  to  complete  all  Basic  Services,  including  reimbursable expenses, within this amount.  In the event Additional Services are  authorized, the total compensation for Basic Services, Additional Services and  reimbursable expenses shall not exceed One Hundred Seventy Thousand Dollars  ($170,000.00).  The applicable rates and schedule of payment are set out at Exhibit  “C‐1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this  Agreement.  Any work performed or expenses incurred for which payment would  result in a total exceeding the maximum amount of compensation set forth herein  shall be at no cost to the CITY.    Additional Services, if any, shall be authorized in accordance with and subject to the  provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for  Additional Services performed without the prior written authorization of CITY per  Exhibit C. “Additional Services” shall mean any work that is determined by CITY to  be necessary for the proper completion of the Project, but which is not included  within the Scope of Services described at Exhibit “A”.”    SECTION 4.  Legal Effect.  Except as modified by this Amendment, all other provisions of the  Contract, including any exhibits thereto, shall remain in full force and effect.     SECTION 5.  Incorporation of Recitals.  The recitals set forth above are terms of this  Amendment and are fully incorporated herein by this reference.      (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)  DocuSign Envelope ID: 2CCD589D-1EDE-481A-AD9A-30FD9A3F4DBA Vers.: Aug. 5, 2019  Page 3 of 3  SIGNATURES OF THE PARTIES    IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed  this Amendment effective as of the date first above written.      CITY OF PALO ALTO      City Manager (Contract over $85k)      APPROVED AS TO FORM:      City Attorney or designee  (Contract over $25k)      Contracts Administrator  (Checklist Approval)  MANAGEMENT PARTNERS, INC.     Officer 1    By:  Name: Jerry Newfarmer  Title: President and CEO      Officer 2  (Required for Corp. or LLC)    By:  Name: Amy C. Paul  Title: Vice President and Treasurer        DocuSign Envelope ID: 2CCD589D-1EDE-481A-AD9A-30FD9A3F4DBA CITY OF PALO ALTO OFFICE OF THE CITY CLERK September 28, 2020 The Honorable City Council Palo Alto, California Designation of Voting Delegate for the League of California Cities Annual 2020 Conference, to be Held Virtually October 7-9, 2020; and Possible Direction to Delegate on League Resolution The City Council should designate Vice Mayor DuBois as the voting delegate for the 2020 League of California Cities Annual Conference. Recommendation Staff recommends that Council direct the City Council-appointed voting delegate to abstain on the resolution up for consideration at the annual LOCC conference taking place virtually from October 7-9, 2020 as provided below. Background Each year at its annual conference, the League of California Cities (LOCC) accepts resolutions from member cities and elected officials for approval by the membership. The voting delegates determine whether to pass any resolutions during the general assembly, scheduled for October 9, 2020. This year, one resolution was introduced. In order to vote at the general assembly, the City Council must delegate a voting delegate and could appoint up to two alternate voting delegates. At this time Council Member DuBois has registered for the conference. Attached for your review is the 2020 LOCC Annual Conference Resolution Packet. (Attachment B). The packet contains the original language of the resolutions in their current forms along with LOCC staff analysis and letters of support. Discussion The single resolution introduced this year is summarized below: A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF CALIFORNIA CITIES CALLING FOR AN AMENDMENT OF SECTION 230 OF THE COMMUNICATIONS DECENCY ACT OF 1996 TO REQUIRE SOCIAL MEDIA COMPANIES TO REMOVE MATERIALS WHICH PROMOTE CRIMINAL ACTIVITIES Source: City of Cerritos The City of Cerritos brings this resolution after recently spending thousands of dollars to respond to threats of looting at its local mall, threats made on Instagram. Criminal Page 2 threats on social media is not a new phenomenon; last year the Palo Alto Police Department responded to threats of a school shooting made on Instagram. And in June 2020, San Mateo County responded to threats of looting in Redwood City made via social media. Luckily, no violence occurred after either threat. While many will use social media platforms for positive or neutral purposes, they can also be used by those wishing to cause harm or dissent. This resolution would urge Congress to remove the current liability immunity found in section 230 of the Communications Decency Act for social media providers who publish third-party content. The resolution would also require social media companies to; (1) implement programs to identify and remove content soliciting criminal activity, and (2) provide information to assist law enforcement in apprehending those who used social media to solicit criminal behavior. Current related action: In June 2020, President Trump issued an Executive Order mandating regulators review section 230 to determine if it should be removed. Discussion: The LOCC analysis notes that there are certain constitutional considerations involved in the potential action of requiring the removal of social media content and providing information to law enforcement. For example, the government mandating companies moderate content raises First Amendment free speech issues. Mandating companies release information regarding potential criminal activity without a warrant raises Fourth Amendment probable cause issues. Additionally, the release of information also leads to potential privacy concerns, especially if any of the information is subject to a public record request once received by local government. The LOCC analysis further notes that, were the federal law amended as suggested, social media companies would “essentially police every conversation” on their platforms, using their own subjective interpretation of what to censor. Indeed, a May 20, 2020 NPR article regarding removing the legal immunity for social media companies notes that experts say “the most likely outcome” is “more censorship by major tech companies.” Financially, the LOCC analysis notes only theoretical fiscal impacts, as it’s impossible to predict (1) if Congress would act based on LOCC adoption of the resolution, (2) what actions companies might take as a result, and (3) how such actions might impact cities. Certainly, if the section 230 immunity provisions were removed, social media companies might decide to prevent the posting of any content that could appear criminal. This could mean fewer, or no, threats requiring local law enforcement response, thus avoiding costs associated with police staff time. It could also mean posters intent on criminal activity share information through coded words, thus avoiding the social media censors while still perpetuating the criminal activity. In this case, law enforcement intervention may still occur, generating costs to Page 3 cities. As it’s not possible to accurately determine all the potential courses of action and reaction to this resolution, city staff cannot provide fiscal impact information. Lastly, a thorough consideration of the potential implications involved with removing section 230 requires grappling with questions regarding constitutional protections, local government liability, privacy protection, and more. A few of those questions, from the LOCC staff analysis and from City staff, are noted below. These are included here not necessarily for Council to ponder, but rather, to demonstrate the complexity of the issues raised by this resolution: 1. If Congress acts as requested in the resolution, what are the impacts related to free speech, probable cause, and government censorship? 2. What are the expectations of cities when they receive information from a social media company about a potential threat in their community? What about threats to neighboring communities? 3. Does a city become liable for receiving such information and acting or not acting if the threat becomes real? 4. Are there liability considerations involved with cities retaining private, and possibly criminal, social media information, and is the information subject to a public record request once accepted by a local government? 5. Would amending the law as described directly benefit residents and businesses of Palo Alto? Do we take into consideration any impact on our residents who work for technology companies that may drastically change their business models as a result of amending the law? What of the technology businesses in our city? The City certainly has an interest in protecting the safety of its residents, as expressed in one of the Foundational Principles found in Council’s adopted Legislative Guidelines. However, it’s unclear if amending section 230 of the Communications Decency Act as requested in the resolution would enhance safety, or if criminal actors would find a way around any new laws. It’s also unclear if the potential civil liberties issues raised might be more harmful than the removal or lessoning of criminal threats, some of which will never translate to action. As such, staff recommends the City adopt an abstain position, allowing the current review by federal regulators to continue without asking Congress to also take legislative action. ATTACHMENTS: • Attachment A: LOCC Voter Designation (PDF) • Attachment B: 2020-Resolution-Packet-(1) (PDF) Page 4 Department Head: Beth Minor, City Clerk Annual Conference Resolutions Packet 2020 Annual Conference Resolutions October 7 – 9, 2020 INFORMATION AND PROCEDURES RESOLUTIONS CONTAINED IN THIS PACKET: The League bylaws provide that resolutions shall be referred by the president to an appropriate policy committee for review and recommendation. Resolutions with committee recommendations shall then be considered by the General Resolutions Committee at the Annual Conference. This year, one resolution has been introduced for consideration at the Annual Conference and referred to League policy committees. POLICY COMMITTEES: Two policy committees will meet virtually at the Annual Conference to consider and take action on the resolution referred to them. The committees are: Governance, Transparency & Labor Relations and Public Safety. These committees will meet virtually on Tuesday, September 29, with the Governance, Transparency and Labor Relations Policy Committee meeting from 9:30 – 11:30 a.m. and the Public Safety Policy Committee meeting from 1:00 – 3:00 p.m. The sponsor of the resolution has been notified of the time and location of the meeting. GENERAL RESOLUTIONS COMMITTEE: This committee will meet virtually at 1:00 p.m. on Thursday, October 8, to consider the reports of the policy committees regarding the resolutions. This committee includes one representative from each of the League’s regional divisions, functional departments and standing policy committees, as well as other individuals appointed by the League president. GENERAL ASSEMBLY: This meeting will be held virtually at 11:00 a.m. on Friday, October 9. PETITIONED RESOLUTIONS: For those issues that develop after the normal 60-day deadline, a resolution may be introduced at the Annual Conference with a petition signed by designated voting delegates of 10 percent of all member cities (48 valid signatures required) and presented to the Voting Delegates Desk at least 24 hours prior to the time set for convening the Annual Business Meeting of the General Assembly. This year, that deadline is 12:30 p.m., Thursday, October 8. Any questions concerning the resolutions procedures may be directed to Meg Desmond at the League office: mdesmond@cacities.org or (916) 658-8224 1 GUIDELINES FOR ANNUAL CONFERENCE RESOLUTIONS Policy development is a vital and ongoing process within the League. The principal means for deciding policy on the important issues facing cities is through the League’s seven standing policy committees and the board of directors. The process allows for timely consideration of issues in a changing environment and assures city officials the opportunity to both initiate and influence policy decisions. Annual conference resolutions constitute an additional way to develop League policy. Resolutions should adhere to the following criteria. Guidelines for Annual Conference Resolutions 1. Only issues that have a direct bearing on municipal affairs should be considered or adopted at the Annual Conference. 2. The issue is not of a purely local or regional concern. 3. The recommended policy should not simply restate existing League policy. 4. The resolution should be directed at achieving one of the following objectives: (a) Focus public or media attention on an issue of major importance to cities. (b) Establish a new direction for League policy by establishing general principals around which more detailed policies may be developed by policy committees and the board of directors. (c) Consider important issues not adequately addressed by the policy committees and board of directors. (d) Amend the League bylaws (requires 2/3 vote at General Assembly). 2 KEY TO ACTIONS TAKEN ON RESOLUTIONS Resolutions have been grouped by policy committees to which they have been assigned. Number Key Word Index Reviewing Body Action 1 2 3 1 - Policy Committee Recommendation to General Resolutions Committee 2 - General Resolutions Committee 3 - General Assembly GOVERNANCE, TRANSPARENCY & LABOR RELATIONS POLICY COMMITTEE 1 2 3 1 Amendment to Section 230 of The Communications Decency Act of 1996 PUBLIC SAFETY POLICY COMMMITTEE 1 2 3 1 Amendment to Section 230 of The Communications Decency Act of 1996 3 KEY TO ACTIONS TAKEN ON RESOLUTIONS (Continued) Resolutions have been grouped by policy committees to which they have been assigned. KEY TO REVIEWING BODIES KEY TO ACTIONS TAKEN 1. Policy Committee A Approve 2. General Resolutions Committee D Disapprove 3. General Assembly N No Action R Refer to appropriate policy committee for study ACTION FOOTNOTES a Amend+ * Subject matter covered in another resolution Aa Approve as amended+ ** Existing League policy Aaa Approve with additional amendment(s)+ *** Local authority presently exists Ra Refer as amended to appropriate policy committee for study+ Raa Additional amendments and refer+ Da Amend (for clarity or brevity) and Disapprove+ Na Amend (for clarity or brevity) and take No Action+ W Withdrawn by Sponsor Procedural Note: The League of California Cities resolution process at the Annual Conference is guided by the League Bylaws. A helpful explanation of this process can be found on the League’s website by clicking on this link: Resolution Process. 4 1. A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF CALIFORNIA CITIES CALLING FOR AN AMENDMENT OF SECTION 230 OF THE COMMUNICATIONS DECENCY ACT OF 1996 TO REQUIRE SOCIAL MEDIA COMPANIES TO REMOVE MATERIALS WHICH PROMOTE CRIMINAL ACTIVITIES Source: City of Cerritos Concurrence of five or more cities/city officials Cities: City of Hawaiian Gardens, City of Lakewood, City of Ontario, City of Rancho Cucamonga, City of Roseville Referred to: Governance, Transparency and Labor Relations and Public Safety Policy Committees WHEREAS, local law enforcement agencies seek to protect their communities’ residents, businesses, and property owners from crime; and WHEREAS, increasingly, criminals use social media platforms to post notices of places, dates and times for their followers to meet to commit crimes; and WHEREAS, Section 230 of the Communications Decency Act of 1996 currently provides online platforms (including social media platforms) immunity from civil liability based on third-party content and for the removal of content; and WHEREAS, in the 25 years since Section 230’s enactment, online platforms no longer function simply as forums for the posting of third-party content but rather use sophisticated algorithms to promote content and to connect users; and WHEREAS, the United States Department of Justice, in its June 2020 report, “Section 230 — Nurturing Innovation or Fostering Unaccountability?,” concluded the expansive interpretation courts have given Section 230 has left online platforms immune from a wide array of illicit activity on their services, with little transparency or accountability, noting it “makes little sense” to immunize from civil liability an online platform that purposefully facilitates or solicits third-party content or activity that violates federal criminal law; and WHEREAS, current court precedent interpreting Section 230 also precludes state and local jurisdictions from enforcing criminal laws against such online platforms that, while not actually performing unlawful activities, facilitate them; and WHEREAS, amendment of Section 230 is necessary to clarify that online platforms are not immune from civil liability for promoting criminal activities; and NOW, THEREFORE, BE IT RESOLVED at the League General Assembly, assembled at the League Annual Conference on October 9, 2020 in Long Beach, California, that the League calls upon the U.S. Congress to amend Section 230 of the Communications Decency Act of 1996 to condition immunity from civil liability on the following: 5 1. Online platforms must establish and implement a reasonable program to identify and take down content which solicits criminal activity; and 2. Online platforms must provide to law enforcement information which will assist in the identification and apprehension of persons who use the services of the platform to solicit and to engage in criminal activity; and 3. An online platform that willfully or negligently fails in either of these duties is not immune from enforcement of state and local laws which impose criminal or civil liability for such failure. 6 Background Information to Resolution Source: City of Cerritos Background: Social media platforms are now used as a primary means of communication, including by criminals who use them to advertise locations, dates, and times where the criminal acts will take place. Such communications, because they occur online, render the online platform immune from any civil liability for the costs incurred by law enforcement agencies that respond under Section 230 of the Communications Decency Act of 1996. Immunity from civil liability extends even to injunctive relief, thus preventing local governments from merely seeking an injunction against the online platform to have such a post removed. The City of Cerritos supports the rights of free speech and assembly guaranteed under the First Amendment, but believes cities should have the ability to hold social media companies liable for their role in promoting criminal acts. Recently, the City suffered thousands of dollars in damages to respond to online threats that the Cerritos Mall would be looted. Anonymous posts on Instagram.com invited followers to “work together to loot Cerritos [M]all” only several days after the Lakewood Mall had been looted, causing thousands of dollars in damages. The posts were made under the names “cerritosmalllooting” and “cantstopusall,” among others. The City of Cerritos had no choice but to initiate response to protect the Mall and the public from this credible threat. At the same time local governments face historic shortfalls owing to the economic effects of COVID-19, the nation’s social media platforms are seeing a record rise in profits. The broad immunity provided by Section 230 is completely untenable. Online platforms should be held responsible—and liable—for the direct harm they facilitate. Local governments are in no position to bear the costs of the crimes facilitated by these companies alone. Congress is currently reviewing antitrust legislation and by extension, Section 230’s immunity provisions. The League urges Congress to amend Section 230 to limit the immunity provided to online platforms when they promote criminal activity to provide local governments some measurable form of relief. 7 League of California Cities Staff Analysis on Resolution No. 1 Staff: Charles Harvey, Legislative Representative Bijan Mehryar, Legislative Representative Caroline Cirrincione, Policy Analyst Johnnie Piña, Policy Analyst Committees: Governance, Transparency and Labor Relations Public Safety Summary: This resolution states that the League of California Cities should urge Congress to amend Section 230 of the federal Communications Decency Act of 1996 (CDA) to limit the immunity provided to online platforms where their forums enable criminal activity to be promoted. Ultimately, the policy objectives proposed under this resolution, if enacted, would incentivize social media companies to establish and implement a reasonable program to identify and remove content that solicits criminal activity. Background: The City of Cerritos is sponsoring this resolution in reaction to events whereby persons, using social media platforms to coordinate locations, dates, and times for their planned criminal activity, have committed acts of looting and vandalism resulting in both actual economic harm for targeted businesses, and pecuniary loss to cities who used resources to prevent such acts from occurring when such plans are discovered. For example, just days after the Lakewood Mall had been looted, the City of Cerritos uncovered online communications via social media that persons were planning to target the nearby Cerritos Mall. Consequently, the city felt compelled to undertake measures to protect the Cerritos Mall, costing the city thousands of dollars to guard against what officials believed to be a credible threat. Staff Comments: Overview: While there is certainly an argument to substantiate concerns around censorship, the use of social media as a tool for organizing violence is equally disturbing. Throughout much of the 2020 Summer, there have been many reports of looting happening across the country during what were otherwise mostly peaceful demonstrations. Combined with the speculation of who is really behind the looting and why, the mayhem has usurped the message of peaceful protestors, causing a great deal of property damage in the process. Likewise, these criminal actions have upended the livelihood of some small business owners, many of whom were already reeling in the wake of the COVID-19 pandemic. 8 While social media allows people to connect in real time with others all over the world, organized illegal activity using social media is made easier by the anonymous nature of virtual interactions. Nation’s Reaction to the Murder of George Floyd: Shortly after the senseless killing of George Floyd by law enforcement on May 26, 2020, civil unrest began as local protests in the Minneapolis–Saint Paul metropolitan area of Minnesota before quickly spreading nationwide to more than 2,000 cities and towns across the United States, and in approximately 60 countries in support of the Black Lives Matter movement. Protests unfolded across the country throughout the entire month of June and into July, and persisted in a handful of cities such as Portland and Seattle into the month of August. Although the majority of protests were peaceful, some demonstrations in cities escalated into riots, looting, and street skirmishes with police. While much of the nation’s focus has been on addressing police misconduct, police brutality, and systemic racism, some have used demonstrators’ peaceful protests on these topics as opportunities to loot and/or vandalize businesses, almost exclusively under the guise of the “Black Lives Matter” movement. It has been uncovered that these “flash robs”1 were coordinated through the use of social media. The spontaneity and speed of the attacks enabled by social media make it challenging for the police to stop these criminal events as they are occurring, let alone prevent them from commencing altogether. As these events started occurring across the country, investigators quickly began combing through Facebook, Twitter, and Instagram seeking to identify potentially violent extremists, looters, and vandals and finding ways to charge them after — and in some cases before — they sow chaos. While this technique has alarmed civil liberties advocates, who argue the strategy could negatively impact online speech, law enforcement officials claim it aligns with investigation strategies employed in the past. Section 230 and other Constitutional Concerns At its core, Section 230(c)(1) of the CDA provides immunity from liability for providers and users of an “interactive computer service” who publish information provided by third-party users. Essentially, this protects websites from lawsuits if a user posts something illegal, although there are exceptions for copyright violations, sex work-related material, and violations of federal criminal law. Protections from Section 230 have come under more recent scrutiny on issues related to hate speech and ideological biases in relation to the influence technology companies can hold on political discussions. Setting aside Section 230, there are some potential constitutional issues one could raise, should there be an attempt to implement such a resolution into statute. 1 The “flash robs” phenomenon—where social media is used to organize groups of teens and young adults to quickly ransack and loot various retail stores—began to occur sporadically throughout the United States over the past ten years. 9 In the United States, the First Amendment prohibits the government from restricting most forms of speech, which would include many proposals to force tech companies to moderate content. While “illegal” types of speech enjoy limited or no First Amendment protection, the line for delineating between “legal” and “illegal” speech is very difficult to determine. Consequently, one would expect online platforms to push back on whether there is a constitutionally feasible way for them to “identify” protected speech versus unprotected speech, or whether there is a feasible way to define “content which solicits criminal activity.” A law requiring companies to moderate content based on the political viewpoint it expresses, for example, would likely be struck down as unconstitutional. Nonetheless, private companies can create rules to restrict speech if they so choose. Online platforms sometimes argue they have constitutionally-protected First Amendment rights in their “editorial activity,” and therefore, it violates their constitutional rights to require them to monitor (i.e., “identify and take down”) content that may be protected under the First Amendment. They may also argue, along the same lines, that the government may not condition the granting of a privilege (i.e., immunity) on doing things that amount to a violation of their first amendment rights. This is why Facebook and Twitter ban hate speech and other verifiably false information, for example, even though such speech is permitted under the First Amendment. With respect to privacy and the Fourth Amendment, online platforms may argue that requiring them to “provide to law enforcement information that will assist in the identification and apprehension of persons who use the services of the platform to solicit and to engage in criminal activity,” turns them into government actors that search users’ accounts without a warrant based on probable cause, in violation of the Fourth Amendment. Industry Perspective Unsurprisingly, industry stakeholders have strong opinions for what such changes could mean for their respective business models. For instance, a Facebook spokesperson recently noted in a Fortune article that, “By exposing companies to potential liability for everything that billions of people around the world say, this would penalize companies that choose to allow controversial speech and encourage platforms to censor anything that might offend anyone.” The article acknowledges that in recent years, both political parties have put social media companies under increased scrutiny, but they are not unified in their stated concerns. While Republicans accuse the companies of unfairly censoring their post, Democrats complain that these companies fail to do enough to block misinformation, violent content, and hate speech. The article concludes that there is no way companies like Facebook and Twitter could operate without Section 230, and that the removal of this section would thereby “eliminate social media as we know it.” Recent Federal Action on Social Media The President recently issued an Executive Order on Preventing Online Censorship. In it, he notes the following: 10 “The growth of online platforms in recent years raises important questions about applying the ideals of the First Amendment to modern communications technology. Today, many Americans follow the news, stay in touch with friends and family, and share their views on current events through social media and other online platforms. As a result, these platforms function in many ways as a 21st century equivalent of the public square. Twitter, Facebook, Instagram, and YouTube wield immense, if not unprecedented, power to shape the interpretation of public events; to censor, delete, or disappear information; and to control what people see or do not see.” Ultimately the President implores the U.S. Attorney General to develop a proposal for federal legislation that “would be useful to promote the policy objectives of this order.” The President is not subtle in communicating his desire to ultimately see legislation heavily slanted toward the preservation of free speech on social media, which some interpret as a maneuver to preempt Twitter and Facebook from regulating speech they otherwise deem as hateful or demonstrably false. Considerations for Congress Courts have generally construed Section 230 to grant internet service providers broad immunity for hosting others’ content. Many have claimed that Section 230’s immunity provisions were critical to the development of the modern internet, and some continue to defend Section 230’s broad scope. But simultaneously, a variety of commentators and legislators have questioned whether those immunity provisions should now be narrowed, given that the internet looks much different today than it did in 1996 when Section 230 was first enacted. One way for Congress to narrow Section 230’s liability shield would be to create additional exceptions, as it did with FOSTA and SESTA2. If a lawsuit does not fall into one of the express exceptions contained in Section 230(e)3, courts may have to engage in a highly fact-specific inquiry to determine whether Section 230 immunity applies: Section 230(c)(1) immunity will be inapplicable if the provider itself has developed or helped to develop the disputed content, while Section 230(c)(2) immunity may not apply if a service provider’s decision to restrict access to content was not made in good faith. Date Storage and Usage Considerations for Cities Section 2 of the conditions the resolution applies to civil immunity requires that online platforms provide relevant information to law enforcement to assist in the identification and apprehension of persons who use the services of the platform to solicit and to engage in criminal activity. This section would most likely require the development of new procedures and protocols that govern law enforcements usage and retention of such information. Those new policies and procedures would undoubtedly raise privacy concerns depending on how wide the latitude is for law 2 The Fight Online Sex Trafficking Act (FOSTA) and the Stop Enabling Sex Traffickers Act (SESTA) create an exception to Section 230 that means website publishers would be responsible if third parties are found to be posting ads for prostitution — including consensual sex work — on their platforms. 3 Section 230(e) says that Section 230 will not apply to: (1) federal criminal laws; (2) intellectual property laws; (3) any state law that is “consistent with” Section 230; (4) the Electronic Communications Privacy Act of 1986; and (5) civil actions or state prosecutions where the underlying conduct violates federal law prohibiting sex trafficking. 11 enforcement to request such information. In those circumstances cities could end up themselves incurring new liability for the governance of data that could either violate certain privacy rules or increase their data governance costs. Fiscal Impact: Unlike the costly resources needed to support or oppose a ballot measure, a federal resolution from the League of California Cities that simply urges Congress to undertake certain action should have a negligible fiscal impact, if any monetary impact at all. Regarding cities, if social media had no immunity for its failure to police content that solicits criminal activity, then an individual city could theoretically save thousands if not millions of dollars, depending on its size and other subjective circumstances. Collectively, cities across the country could potentially save at least hundreds of millions between redress for actual economic harm suffered and/or the cost of preventative measures taken to stop criminal activity from occurring in the first place. Conversely, if social media platforms were to shut down, due to an inability to comply with a policy requirement to regulate speech on the internet, it is unclear on how cities might be impacted from a fiscal standpoint. Existing League Policy: Public Safety: Law Enforcement The League supports the promotion of public safety through: • Stiffer penalties for violent offenders, and • Protecting state Citizens’ Option for Public Safety (COPS) and federal Community Oriented Police Services (COPS) funding and advocating for additional funding for local agencies to recoup the costs of crime and increase community safety. Violence The League supports the reduction of violence through strategies that address gang violence, domestic violence, and youth access to tools of violence, including but not limited to firearms, knives, etc. The League supports the use of local, state, and federal collaborative prevention and intervention methods to reduce youth and gang violence. Governance, Transparency & Labor Relations: Private Sector Liability The League will work closely with private sector representatives to evaluate the potential for League support of civil justice reform measures designed to improve the business climate in California. These measures should be evaluated on a case-by-case basis through the League police process. 12 Questions to Consider: Many cities obviously believe that creating civil liability for social media platforms—due to their role in providing the communication mediums for those who organize looting attacks— is key to deterring this organized criminal activity. If such a change was actually passed by Congress, it would force social media to essentially police every conversation on stakeholders’ respective platforms, putting immense pressure on the industry to make subjective determinations about what conversations are appropriate and what are unacceptable. At the end of the day, there are a few questions to consider in assessing this proposed resolution: 1) What would this resolution’s impact be on free speech and government censorship? 2) What are the expectations for cities when they receive information from a social media platform about a potentially credible threat in their respective communities? Does a city become liable for having information from a social media platform and the threat occurs? 3) What would the costs be to develop and maintain new data governance policies, including data infrastructure, to store this information? 4) What is the role of the League in engaging in issues relating to someone’s privacy? Support: The following letters of concurrence were received: City of Hawaiian Gardens City of Lakewood City of Ontario City of Rancho Cucamonga City of Roseville 13 LETTERS OF CONCURRENCE Resolution No. 1 Amendment to Section 230 of the Communications Decency Act of 1996 14 15 16 17 18 19 CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY September 28, 2020 The Honorable City Council Palo Alto, California Authorization to Amend the Existing Agreement for Litigation Defense Services With the Law Firm of Jarvis Fay & Gibson (Contract S17168652) to Increase the Contract Amount by an Additional $15,000 for a Total Not-to-Exceed Amount of $130,000 Recommendation The City Attorney recommends that the City Council approve and authorize an increase to the legal services agreement with the law firm of Jarvis Fay & Gibson for litigation defense in the case of John Tze and Edgewood SC v. City of Palo Alto, Santa Clara Co. Sup. Ct. Case No. 17CV309030 (Contract S17168652) by an additional $15,000 for a total not to exceed amount of $130,000, and to extend the term to April 26, 2021. Discussion In April 2017, the City entered into an $85,000 legal services agreement with Jarvis Fay & Gibson LLP for pre-litigation and initial litigation defense services in a Government Claims Act claim and subsequently- filed civil suit John Tze and Edgewood SC v. City of Palo Alto, Santa Clara Co. Sup. Ct. Case No. 17CV309030. In October 2019, the agreement was amended to add $30,000 for a total of $115,000. The contract term was also extended to April 26, 2020. Staff now recommends that the Council authorize an additional $15,000 for a total not to exceed $130,000 and to extend the contract term to April 26, 2021 for continuing litigation defense. Resource Impact Funding for this amendment does not require additional budgetary authority as it can be accommodated within the Office of the City Attorney’s budget for FY2021. Environmental Review Amendment of a legal services contract is not a project requiring environmental review under the California Environmental Quality Act (CEQA). Department Head: Molly Stump, City Attorney CITY OF PALO ALTO OFFICE OF THE CITY CLERK September 28, 2020 The Honorable City Council Palo Alto, California SECOND READING: Interim Ordinance of the Council of the City of Palo Alto Amending Chapters 18.28 (Special Purpose (PF, OS and AC Districts) and 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Adopt Temporary Regulations Relating to Safe Parking in PF Districts (FIRST READING: September 14 2020 PASSED: 7-0) This was first heard by the Council on September 14, 2020, it is now before you for the second reading. It passed on a vote of 7-0 with no changes. ATTACHMENTS: • Attachment A: 2000 Geng Road Ordinance (PDF) Department Head: Beth Minor, City Clerk Page 2 *NOTYETAPPROVED* 1 210_20200902_ts_24 OrdinanceNo._____  InterimOrdinanceoftheCounciloftheCityofPaloAltoAmendingChapters 18.28(SpecialPurpose(PF,OSandAC)Districts)and18.42(StandardsforSpecial Uses)ofTitle18(Zoning)ofthePaloAltoMunicipalCode(PAMC)toAdopt TemporaryRegulationsRelatingtoSafeParkinginPFDistricts   TheCounciloftheCityofPaloAltoORDAINSasfollows:  SECTION1.Findingsanddeclarations.TheCityCouncilfindsanddeclaresasfollows:  A. Thenumberofhouseholdsdwellinginvehicleshasgrownsubstantiallyinthepast decade.Thelackofstable,affordablehousingandotherlifecircumstanceshave contributedtothisgrowth.  B. Onthoroughfaresthroughoutthecity,individuals,families,andhouseholdsofmany kindscanbefounddwellinginrecreationalvehicles,trucks,vans,cars,andother motorizedvehicles.  C. TheCitymust,forthehealth,safety,andwelfareofthecommunity,identifyand implementshortͲtermandlongͲtermsolutionsthatsupportthesehouseholdsasthey pursueandultimatelysecureaffordable,stablehousing.Safeparkingprograms,which offeroffͲstreet,authorizedparkingspotsinparkinglotsforhouseholdsdwellingintheir vehicles,representashortͲtermsolution.  D. TheCountyofSantaClarahasexpressedadesireandwillingnesstohostsafeparking programsonCitylandtoprovideassistancetohomelesshouseholdsastheyseekand followapathtowardsstablehousing.  E. Thepresenceofthesevehiclesandtheaccompanyingadministrationofassistanceisa minoradditionalusethatwouldnotconflictwiththeprimaryuseofthepropertiesnor threatenthehealth,safety,orwelfareofthecommunityoritsinhabitants.The administrationofsuchprogramsservestoenhancethehealth,safety,andwelfareof thecommunity.  //  //  //  //  //   *NOTYETAPPROVED* 2 210_20200902_ts_24 SECTION2.Section18.28.040(LandUses)ofChapter18.28(SpecialPurpose(PF,OSandAC) Districts)ofTitle18(Zoning)isherebyamendedasfollows(additionsareunderlined):  18.28.040LandUses Table1showsthepermitted(P)andconditionallypermitted(CUP)landusesfortheSpecial PurposeDistricts.  Table1 LandUses PF OS AC Subject to Regulations in Chapter: ACCESSORY AND SUPPORT USES Accessory facilities and accessory uses P Chs. 18.40 and 18.42 Eating and drinking services in conjunction with a permitted use CUP(1) Retail services as an accessory use to the administrative offices of a non-profit organization, provided that such retail services do not exceed 25% of the gross floor area of the combined administrative office services and retail service uses CUP(1) Retail services in conjunction with a permitted use CUP(1) Sale of agricultural products produced on the premises; provided, that no permanent commercial structure for the sale or processing of agricultural products shall be permitted. P Accessory dwelling units, subject to regulations in Section 18.42.040 P(2) 18.42.040 Junior accessory dwelling unit P(2) 18.42.040 Safe Parking (3) 18.42.170 AGRICULTURAL AND OPEN SPACE USES Agricultural Uses, including animal husbandry, crops, dairying, horticulture, nurseries, livestock farming, tree farming, viticulture, and similar uses not inconsistent with the intent and purpose of this chapter P P *NOTYETAPPROVED* 3 210_20200902_ts_24 Botanical conservatories, outdoor nature laboratories, and similar facilities P Native wildlife sanctuaries P Park uses and uses incidental to park operation P EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Business or trade schools CUP (1) Churches and religious institutions CUP(1) Educational, charitable, research, and philanthropic institutions CUP Private educational facilities CUP(1) Public or private colleges and universities and facilities appurtenant thereto CUP Special education classes CUP (1) OFFICE USES Administrative office services for non-profit organizations CUP (1) OTHER USES Other uses which, in the opinion of the director, are similar to those listed as permitted or conditionally permitted uses CUP(1) PUBLIC/QUASI-PUBLIC FACILITY USES All facilities owned or leased, and operated or used, by the City of Palo Alto, the County of Santa Clara, the State of California, the government of the United States, the Palo Alto Unified School District, or any other governmental agency, or leased by any such agency to another party P Communication Facilities CUP Community Centers CUP (1) Utility Facilities CUP CUP CUP *NOTYETAPPROVED* 4 210_20200902_ts_24 RECREATIONAL USES Neighborhood recreation centers CUP (1) Outdoor recreation services CUP (1) CUP Recreational uses including riding academies, clubs, stables, country clubs, and golf courses CUP Youth clubs CUP (1) RESIDENTIAL USES Single-family dwellings p Manufactured housing (including mobile homes on permanent foundations) P 18.40. Guest ranches CUP Residential care facilities, when utilizing existing structures on the site CUP (1) Residential Care Homes P Residential use, and accessory buildings and uses customarily incidental to permitted dwellings; provided, however, that such permitted dwellings shall be for the exclusive use of the owner or owners, or lessee or lessor of land upon which the permitted agricultural use is conducted, and the residence of other members of the same family and bona fide employees of the aforementioned P SERVICE USES Animal care, including boarding and kennels CUP CUP Cemeteries CUP Cemeteries, not including mausolea, crematoria, or columbaria CUP Small day care homes P Large day care homes CUP Art, dance, gymnastic, exercise or music studios or classes CUP (1) *NOTYETAPPROVED* 5 210_20200902_ts_24 Medical Services: Hospitals CUP Outpatient medical facilities with associated medical research CUP TEMPORARY USES Temporary parking facilities, provided that such facilities shall remain no more than five years CUP (1) TRANSPORTATION USES Airports and airport-related uses CUP (1) (1) Provided such use is conducted on property owned by the City of Palo Alto, the County of Santa Clara, the State of California, the government of the United States, the Palo Alto Unified School District, or any other governmental agency, and leased for said uses. (2) An accessory dwelling unit or a Junior Accessory Dwelling Unit associated with a single-family residence on a lot in the OS District is permitted, subject to the provisions of Section 18.42.040, and such that no more than two total units result on the lot. (3) Provided such use is conducted on property owned by the City of Palo Alto.  SECTION3.Chapter18.42(StandardsforSpecialUses)ofTitle18(Zoning)isherebyamended toaddanewSection18.42.170(PFDistrictSafeParking)toreadasfollows:  18.42.170PFDistrictSafeParking  ThefollowingregulationsapplytosafeparkinginthePFdistrictdescribedinChapter18.28of thisCode.  (a)Purpose  Theintentofthissectionistoestablishregulationstogoverntheoperationofsafeparking programsinthePFdistrictwithintheCityofPaloAlto.Thesafeparkingprogramsprovide interimassistancetohouseholdsusingvehiclesastheirresidencebyprovidingasafeplaceto park,accesstorestroomfacilities,connectiontosocialserviceprograms,andothersupportto transitionhouseholdsintopermanent,stablehousing.  (b)Definitions  (1)“SafeParking”meanstheprovidingofshelterofhomelesspersonsandwhere theshelterisprovidedinvehicleslocatedindesignatedSafeParkingAreas.  *NOTYETAPPROVED* 6 210_20200902_ts_24 (2)“SafeParkingArea”meanstheareawherethevehiclesareparkedfortheSafe ParkingusewithinaPFdistrict.  (3)“SafeParkingProgramOperator”meansanagencyororganizationthat facilitates,administers,oversees,andprovidesstaffingforSafeParkingusesin SafeParkingAreas.  (c)CityCouncilApprovalRequired  Nopersonshalloperate,allow,permitorsufferaSafeParkingusewithoutapprovalfromthe CityCouncilthroughacontract,license,orleaseforSafeParkinguse.NoticeoftheCouncil meetingshallbegivenbymailtoownersandresidentsofpropertywithin600feetofthe subjectproperty.Thenoticeshallincludetheaddressoftheproperty,abriefdescriptionofthe proposeduse,andthescheduleddateandtimeofthemeeting.  (d)StandardsandConductofUse  ThefollowingstandardsshallapplytoallSafeParkinguses:  (1)Numberofvehicles.Thenumberofvehiclesshallbelimitedtothosethatcanfit intheSafeParkingAreawhileallowingforatleast10feetofopenspaceinall directionsbetweeneachvehicle.Inaddition,thereshallbesufficientclearance foremergencyvehiclestoaccessthesite.TheFireDepartmentshallreviewand approvethemaximumnumberofvehiclesandtheconfigurationofthose vehiclesinaccordancewiththeFireCodeandthestandardsinthisSection.  (2)Noise.Audio,video,generator,orotheramplifiedsoundthatisaudibleoutside thevehiclesparkedintheSafeParkingprogramisprohibited.  (3)Shelterinvehicles.AllpersonsreceivingSafeParkingshallshelterwithintheir vehiclesovernight.Nopersonshallbehousedintents,leanͲtos,popͲouts,or othertemporaryfacilitiesoutsideofvehicles.  (4)Requiredfacilities.Accessiblerestroomfacilities,includingatoiletand handwashingsink,shallbeavailabletopersonsutilizingthesiteforSafeParking atalltimesduringthehoursofoperation.Thesefacilitiesmaybetheexisting onsitefacilitiesormobilefacilitiesbroughtonsiteonatemporarybasistoserve personsutilizingSafeParking.  (5)Contactinformation.Thefollowingemergencycontactinformationshallbe postedonsiteinaplacereadilyvisibletopersonsutilizingSafeParking:(i)a contactphonenumberfortheSafeParkingProgramOperator;(ii)thepolice nonͲemergencyphonenumber;and(iii)911.TheSafeParkingProgram Operatorshallbeavailableatallhoursofoperationatthepostedphonenumber andshallbethefirstcontactfornonͲemergencymatters.  *NOTYETAPPROVED* 7 210_20200902_ts_24 (6)Connectiontocountycasemanagementsystem.TheSafeParkinguseshallbe managedandoperatedbyaSafeParkingProgramOperatorthatparticipatesin theSantaClaraCountyHomelessManagementInformationSystem.  (7)Safe,clean,orderlypremises.TheSafeParkingAreaandotheronsiteareas accessedbypersonsutilizingSafeParkingshallbemaintainedinasafe,clean andorderlyconditionandmanner.  (8)Noleakageofcontaminants.Black/greywaterfromvehiclesshallbeproperly disposedoffsiteinaccordancewithallrelevantlawsandregulations.Vehicles thatleakdomesticsewage(includingblack/graywater)orotherwastefluidsor solids,orotherfluids(including,butnotlimitedto,gasoline,transmissionor radiatorfluidorengineoil),excludingpotablewater,areprohibited.  (9)Compliancewithlaws.TheSafeParkinguseshallbeoperatedinamannerthat isfullyinconformancewithallStateandlocallawsandregulations.  (d)NoAssignment.Nopersonshallassignortransferasafeparkingprogramcontract, license,orleaseissuedincompliancewiththisSectionwithoutwrittenCityapproval.  SECTION4.Ifanysection,subsection,sentence,clause,orphraseofthisOrdinanceisforany reasonheldtobeinvalidorunconstitutionalbyadecisionofanycourtofcompetent jurisdiction,suchdecisionshallnotaffectthevalidityoftheremainingportionsofthis Ordinance.TheCityCouncilherebydeclaresthatitwouldhavepassedthisOrdinanceandeach andeverysection,subsection,sentence,clause,orphrasenotdeclaredinvalidor unconstitutionalwithoutregardtowhetheranyportionoftheOrdinancewouldbe subsequentlydeclaredinvalidorunconstitutional.  SECTION5.Thisordinanceisintendedtosupplement,andnotreplace,PaloAltoOrdinance No.5490,andthereforethisordinanceisnot“replacementlegislation”asdefinedbySection13 ofPaloAltoOrdinanceNo.5490.  SECTION6.TheCouncilfindsthatadoptionofthisOrdinanceisexemptfromtheCalifornia EnvironmentalQualityActpursuanttoCEQAGuidelinesSection15061(b)(3).Thisordinance identifiestheregulationsgoverningtheuseofcertain,limitedsitesforSafeParking.The ordinanceitselfdoesnotauthorizetheuseofanysiteswithoutsubsequentapprovalfromthe City.Therefore,itcanbeseenwithcertaintythatthereisnopossibilitythattheordinancewill haveasignificanteffectontheenvironment.  //  //  //  // *NOTYETAPPROVED* 8 210_20200902_ts_24 SECTION7.ThisOrdinanceshallbeeffectiveonthethirtyͲfirstdateafterthedateofits adoptionandshallexpireuponadoptionofreplacementlegislationbytheCityCouncil.Upon expirationofthisOrdinance,theCityClerkshalldirecttheCity’scodifiertoupdatethePaloAlto MunicipalCodeasappropriate.   INTRODUCED:  PASSED:   AYES:  NOES:  ABSENT:  ABSTENTIONS:  NOTPARTICIPATING:  ATTEST:  ________________________________________________________ CityClerkMayor   APPROVEDASTOFORM:APPROVED:   ________________________________________________________ DeputyCityAttorneyCityManager   ____________________________ DirectorofPlanning&Development Services City of Palo Alto (ID # 11608) City Council Staff Report Report Type: Action Items Meeting Date: 9/28/2020 City of Palo Alto Page 1 Summary Title: Report & Direction re San Mateo Co TBID Title: Status Report and Direction Regarding Continued Participation in the San Mateo County Tourism Business Improvement District (TBID) or Adoption of a Resolution to Withdraw Participation From: City Manager Lead Department: City Manager Recommended Motion Staff recommends that Council consider the following motions: A. Adopt the Resolution (Attachment C) and direct staff to transmit the Resolution to the City of Burlingame with a request to take all steps necessary to implement withdrawal from the San Mateo County Tourism Business Improvement District effective January 2021. Authorize the City Manager to negotiate and pay necessary and reasonable administrative costs of the City of Burlingame to effectuate the request; Or, B. Direct staff to transmit to the City of Burlingame a letter confirming that the City of Palo Alto intends to maintain its participation in the San Mateo County Tourism Business Improvement District, and provide direction to staff on next steps. Executive Summary In December 2019, representatives from hotels in Palo Alto requested that the City withdraw from the San Mateo County Tourism Business Improvement District (TBID). Council directed staff to poll the hotel properties and return to Council with the results. That poll revealed 20 of the 27 hotel properties (74%) operating in Palo Alto, which collectively represent 79% of the total assessment fees paid to the TBID and 75% of the total hotel rooms in Palo Alto, wish to withdraw from the TBID. The San Mateo County Silicon Valley Convention and Visitors Bureau expressed a desire to continue serving the City of Palo Alto and requested time to engage the Palo Alto hotels and improve services and the relationships. The Palo Alto Chamber of Commerce, which receives a portion of the TBID funding for performing visitor services, has also communicated a need to maintain this funding in order to continue their information and referral function. CITY OF PALO ALTO City of Palo Alto Page 2 Background On March 8, 2010, the Palo Alto City Council voted 9-0 to adopt a resolution to include the City of Palo Alto within the boundaries of the San Mateo County Tourism Business Improvement District. In July 2019, representatives from some of the hotels in the City of Palo Alto approached staff with a request to withdraw from the San Mateo County TBID. On December 2, 2019, an action item (CMR #10814) was moved forward by the Palo Alto City Council voting 5-2 (Filseth and Tanaka dissenting) in favor of the following motion: A. Monitor the progress of the San Mateo/Silicon Valley Convention and Visitors Bureau to: i. Demonstrate its value to the City of Palo Alto; ii. Work with all hotels in the City of Palo Alto to resolve key concerns regarding the San Mateo County Tourism Business Improvement District; B. Return to the City Council in Autumn of 2020 with a status report and Staff recommendation regarding continued participation in the San Mateo County Tourism Business Improvement District (TBID); and C. Direct Staff to request a response from each hotel property on whether or not they would like to remain in the TBID. The TBID assessment generates approximately $309,040 annually from the Palo Alto hotels. The assessments are paid to the San Mateo County Silicon Valley Convention and Visitors Bureau (known commonly as “SMCCVB”), which is administered by the City of Burlingame. Approximately $31,890 of this assessment is transferred annually from the SMCCVB to the Palo Alto Chamber of Commerce to support its function as a local visitor’s bureau specific to the City of Palo Alto. Discussion Beginning in August, staff reached out to all 27 Palo Alto hotel properties via a combination of phone calls, e-mail messages, and in-person visits. Some hotel properties were closed and/or hotel owners or general managers were working remotely, as a result of Public Health Officer orders due to the current global health emergency. Of the 27 properties polled about continuing membership or withdrawing from the SMCCVB TBID, property owners or general managers from 20 of the hotels stated that they wished to withdraw from the TBID. The 20 hotel properties wishing to withdraw represented 74% of the total hotels located within Palo Alto, and collectively represent 79% of the total assessment fees paid to the TBID and 75% of the total hotel rooms in Palo Alto (Attachment A). It should be noted that the 2020 poll results were similar to the poll results provided to staff in July 2019 (Attachment B). City of Palo Alto Page 3 While acquiring poll responses this summer, staff learned from owners and operators who wished to separate from the SMCCVB that they viewed the CVB as an outdated tool or source for acquiring hotel business. With advanced technology used in the hotel industry, most travelers reserve rooms through third-party booking websites or by making direct bookings with the hotel via their website. Of the 20 hotel properties who wished to withdraw from the TBID, 16 reported that they had never received leads from the SMCCVB that resulted in room bookings. Staff heard from several properties that in the past ten years of membership with the SMCCVB, their property had never booked a single room generated from the SMCCVB. These properties further stated that they also never received a SMCCVB-generated booking due to overflow when a large Palo Alto hotel property hosted a conference. Those in favor of continuing membership voiced concerns that withdrawal from the SMCCVB would leave Palo Alto hotels without any regional representation. They pointed out that the regional representation provided by SMCCVB was more impactful for their properties than “Visit California,” an initiative that represents the tourism industry statewide. The advantage to Palo Alto’s continued membership in the TBID, in their opinion, were the marketing efforts focused on the broader San Francisco area. Since the December 2019 City Council meeting and after local economic impacts of COVID-19 on the hospitality industry have been assessed, the SMCCVB submitted and obtained a signed emergency ordinance from the Burlingame City Council which eliminated the second quarterly assessment and reduced the final two quarterly assessments by 50% in 2020. This emergency ordinance was in response to severe revenue loss by local hotels due to impacts from the Coronavirus pandemic. Specifically, hotel properties suffered lost revenue from 90-100% within weeks of the implementation of public health orders by the State of California and Santa Clara County that closed hotel properties to all guests except for first responders. Some Palo Alto hotels historically passed through a small portion of the TBID assessment fee, on average between $0.15 to $0.45 within the allowable Tourism Fees per room night, are now paying the full TBID assessment from their operating expenses due to the severe reduction in hotel bookings. Although public health orders have since relaxed; however, health and safety consumer concerns remain high and are continuing to impact the travel industry as a whole. The chief executive officers of both the SMCCVB and the Palo Alto Chamber of Commerce told staff that they desired the City to continue its participation in the TBID. During tenuous times, and certainly when the travel industry rebuilds, they voiced that it is the opportune time for investment, representation, and marketing at a regional level. During the current market downturn, the SMCCVB provides outreach and education to the hotel industry on a broad range of topics ranging from health and safety requirements for employees and guests to training about the future of conference hybrid meeting and bookings. Staff did receive positive comments from smaller hotel properties that the communication and training opportunities provided by the SMCCVB have been dramatically improved since the beginning of the year and especially since the economic impacts of COVID-19 affected the local hotels. Staff is unaware of City of Palo Alto Page 4 actions taken by the Palo Chamber of Commerce regarding its value to hotels since this issue was raised in December. Should Council decide to support withdrawal from the TBID, the annual transfer of funds from the SMCCVB to the Palo Alto Chamber of Commerce would end. A fiscal impact of approximately $31,890 would severely impact the Chamber’s ability to support its function as a local visitor’s bureau specific to Palo Alto. The Chamber of Commerce distributes visitor’s information electronically and in print form. The printed guide is updated every two years. The City of Burlingame Finance Department administers the SMCCVB billings. The annual process consists of a Resolution of Intent to Assesses in approximately November of each year, followed by a public hearing scheduled in approximately December of each year to become effective the next calendar year. Should the Palo Alto City Council decide to withdraw the Palo Alto hotels from the TBID, it would require a resolution (Attachment C) to be submitted requesting the change in the Burlingame ordinance to amend the district for 2021, prior to the Burlingame City Council meeting on November 2, 2020. Staff confirmed with the Burlingame Finance Department that an ordinance change would have to be presented to Burlingame City Council no later than October 19, 2020 followed by Burlingame City Council approval of that ordinance on November 2, 2020. The Resolution of the Intent to Assess the hotels in 2021 is scheduled for November 2, 2020. Resource Impacts The TBID assessment generates approximately $309,040 annually from the Palo Alto hotels and is paid to the San Mateo County Silicon Velley Convention and Visitors Bureau for regional visitor and marketing services provided to its TBID members. Approximately $31,890 of this funding is transferred from the SMCCVB to the Palo Alto Chamber of Commerce to support its function as a local visitor’s bureau specific to Palo Alto. There are no City of Palo Alto funds budgeted to support visitor’s services or marketing functions such as those provided by the SMCCVB and Palo Alto Chamber of Commerce in their capacity as a regional and local visitor’s bureau, respectively. The request for withdrawal from the TBID does not propose any alternative source of funding for these purposes. If the Council adopts the resolution (Attachment C) to withdraw from the San Mateo County TBID, staff will work with the City of Burlingame to implement the withdrawal, including negotiating and paying reasonable administrative fees to the City of Burlingame. The City of Burlingame Attorney’s Office will track their hours and expenses associated with the change in ordinance. The City of Burlingame Finance Director quoted the City Attorney’s rate at $231.40 per hour and the Assistant City Attorney’s rate at $141.28 per hour. Stakeholder Engagement City of Palo Alto Page 5 In response to Council’s direction on December 2, 2019, staff contacted the owner or general manager of all 27 hotel properties in Palo Alto. Twenty-four properties participated in the poll; 20 favored withdrawal from the TBID, three were in favor of continuing membership in the TBID, and one declined participation. Of the remaining three properties, staff received no response from two of them (despite multiple attempts to contact the owner or general manager via phone, e-mail, or in-person visits) and one property is currently closed for business. Staff contacted the Palo Alto Chamber of Commerce and the San Mateo Silicon Valley Convention and Visitors Bureau to review the poll results. Staff contacted the City of Burlingame Finance Department and learned of the annual Intent to Assess timeline for calendar year 2021. Environmental Review This item is not a project for purposes of the California Environmental Quality Act (CEQA). Attachments: • Attachment A - City of Palo Alto 2020 Staff Poll of Hotels • Attachment B - 2019 Hotel TBID Self Response • Attachment C - Resolution Tourism BID City of Palo Alto 2020 Staff Poll of Hotels Attachment A Hotel Response Annual Assessment Number of Rooms Sheraton Palo Alto Withdraw 86,904.00 346 Crown Plaza Cabana Palo Alto Withdraw 47,736.00 195 The Westin Palo Alto Withdraw 45,043.20 184 Hilton Garden Inn Palo Alto Withdraw 18,792.00 174 Creekside Inn Withdraw 14,688.00 136 Comfort Inn Palo Alto Withdraw 2,268.00 70 The Cardinal Hotel Withdraw 1,944.00 63 Garden Court Hotel Withdraw 15,177.00 62 The Nest Palo Alto Withdraw 1,749.60 50 Hotel Keen Withdraw 1,360.80 42 Oak Motel Withdraw 1,360.80 39 Hotel Parmani Withdraw 1,166.40 36 Stanford Motor Inn Withdraw 1,198.40 35 Travelodge Palo Alto Withdraw 939.60 29 Glass Slipper Inn Withdraw 810.00 25 Palo Alto Inn Withdraw 745.20 23 The Clement Hotel Withdraw 745.20 23 Coronet Hotel Withdraw 680.00 20 (1 less room in 2020) Berbeda Place Withdraw 291.60 18 Cowper Inn Withdraw 226.80 16 20 properties Withdraw 243,826.60 1566 20 Votes to withdraw from TBID 74% $243,826.60 of $309, 039.80 Total assessment 79% 1586 of 2112 Total rooms 75% Homewood Suites by Hilton Palo Alto Continue 7,452.00 138 Dinah's Garden Hotel Continue 31,579.00 129 The Zen Motel Continue 1,198.80 37 Country Inn Palo Alto Declined to participate 874.80 27 The Nobu Epiphany Palo Alto No response - open 18,849.00 86 America's Best Value Sky Ranch Inn No response - open 939.60 29 Stanford Terrace Inn No response - closed 4,320.00 80 7 properties Remain a member 65,213.20 526 7 Votes to remain a member of TBID 26% $65,213.20 of $309,039.80 Total assessment 21% 526 of 2112 Total rooms 25% 2019 Hotel Self-Poll Attachment B _j__ HOTEL responses Assessment $ # of Rooms Sheraton Palo Alto Hotel want to withdraw $86,904.00 346 Crowne Plaza Cabana Palo Alto want to withdraw $47,736.00 195 The Westin Palo Alto want to withdraw $45,043.20 184 Hilton Garden Inn Palo Alto no response $18,792.00 174 Homewood Suites by Hilton Palo Alto want to continue $7,452.00 138 Creekside Inn no response $14,688.00 136 Dinah's Garden Hotel no response $31,579.00 129 The Nobu Epiphany Palo Alto no response $18,849.00 86 Stanford Terrace Inn no response $4,320.00 80 Comfort Inn Palo Alto want to withdraw $2,268.00 70 The Cardinal Hotel want to withdraw $1,944.00 63 Garden Court Hotel want to withdraw $15,177.00 62 The Nest Palo Alto want to withdraw $1,749.60 50 Hotel Keen want to withdraw $1,360.80 42 Oak Motel want to withdraw $1,360.80 39 The Zen Hotel want to continue $1,198.80 37 Hotel Parmani want to withdraw $1,166.40 36 Stanford Motor Inn want to withdraw $1,198.40 35 Travelodge Palo Alto want to withdraw $939.60 29 America's Best Value Sky Ranch Inn want to withdraw $939.60 29 Country Inn Motel no response $874.80 27 Glass Slipper Inn want to withdraw $810.00 25 Palo Alto Inn want to withdraw $745.20 23 The Clement Hotel want to withdraw $745.20 23 Coronet Motel want to withdraw $680.00 21 Berbeda Place want to withdraw $291 .60 18 Cowper Inn want to withdraw $226.80 16 I Number of hotels that want to withdraw 19 $211 ,286.20 1306 want to withdraw TOTAL 27 $309,039.80 2113 total Attachment C Not Yet Approved 1 Resolution No. _____ Resolution of the Council of the City of Palo Alto to Withdraw the City of Palo Alto from the Boundaries of the San Mateo County Tourism Business Improvement District RECITALS A. The San Mateo County Tourism Business Improvement District (SMCTBID) is a district organized under the California Streets and Highways Code Sections 36500 et seq. for the purpose of collecting assessments from commercial lodging facilities such as hotels and motels and providing tourism and visitor support services. B. In March 2010, the Council of the City of Palo Alto adopted Resolution No. 9043 consenting to Palo Alto being included in the boundaries of the SMCTBID and authorizing the City of Burlingame, which administers the SMCTBID, to take all necessary steps and actions to formalize the inclusion of Palo Alto in the boundaries of the SMCTBID. C. The City of Burlingame effectuated the City of Palo Alto Council’s request to be included in the boundaries of the SMCTBID. D. Since 2010, commercial lodging facilities in Palo Alto have been assessed fees according to the procedures of the SMCTBID, and an owner or manager of a hotel has served on the SMCTBID advisory board. E. At the request of certain hotel and motel owners and operators in Palo Alto who have articulated a desire to no longer participate in the SMCTBID, the City of Palo Alto now wishes to withdraw from the boundaries of the SMCTBID. F. Accordingly, the Palo Alto Council now requests the City of Burlingame to take all necessary steps to effectuate the withdrawal of the City of Palo Alto from the boundaries of the SMCTBID, according to procedure and law, and as soon as it is feasible to do so. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The City of Palo Alto hereby requests to withdraw from the boundaries of the San Mateo County Tourism Business Improvement District for hotels effective January 1, 2021, or as soon as feasible thereafter, and authorizes and requests the City of Burlingame to take all necessary steps and actions to implement its withdrawal from the boundaries of the SMCTBID. / / Attachment C Not Yet Approved 2 SECTION 2. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ ______________________________ Assistant City Attorney City Manager ______________________________ Director of Administrative Services 1 of 1 TO: HONORABLE COUNCIL MEMBERS FROM: KARA APPLE, CITY MANAGER’S OFFICE DATE: SEPTEMBER 28, 2020 SUBJECT: AGENDA ITEM NUMBER 10- Status Report and Direction Regarding Continued Participation in the San Mateo County Tourism Business Improvement District (TBID) or Adoption of a Resolution to Withdraw Participation Please see the attached correspondence from hotel properties who wish to withdraw from the San Mateo County Tourism Business Improvement District. _______________________ _________________________ Kara Apple Ed Shikada City Manager’s Office City Manager 10 DocuSign Envelope ID: F34E9C25-9788-46EC-A3C5-3974D5B68A6B From: Jim Rebosio <jrebosio@sheratonpaloalto.com> Sent: Tuesday, September 22, 2020 12:19 PM To: Council, City <city.council@cityofpaloalto.org> Cc: Apple, Kara <kara.apple@cityofpaloalto.org> Subject: City Council Mtg 9.28 - San Mateo CVB CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Dear Council – Thank you for taking the time to read my email, I will get right to the point. I was one of the people behind starting the association with the San Mateo Visitors & Convention Bureau (SMCVB) ten years ago. I believed then what I believe now, the SMCVB is a good organization with good leadership. Ten years ago we were anxious to see if we were a mutually good fit, the Palo Alto hospitality community and the SMCVB. Unfortunately it hasn’t worked. As you are aware, very few room nights have been produced for Palo Alto and in some cases, the few rooms that were produced were coming here regardless of the SMCVB involvement. When business is good, our rates are too high and Palo Alto often lacks the meeting space some groups need. When we are in a situation as we are now, when business is scarce, we cannot reduce our rates to the levels in San Mateo County, in either scenario, we cannot be competitive. The numbers over the last 10 years have proved this out. Sometimes partnerships are just not a good fit. Others will tell you about Visitor Guides, fam trips, etc. other services the SMCVB makes available. These are good and important features. However, for the money we pay, we need room nights to justify this amount of money we are paying to the SMCVB. Room nights pay our bills, pay our associates and allow us to reinvest in the properties, Visitor Guides don’t do that. Our two hotels pay the following on an annual basis: Sheraton: $86,904 Westin: $45,036 TOTAL: $131,940 Our hotels represent the largest group of hotels in Palo Alto, and we pay a significant percentage of the overall dues. We feel that we are the best to make the judgement - is this a mutually good relationship and fit. I would like to stress one last point, I believe it is the most important point. We all tried. The SMCVB, the hotels, we all wanted this to work, mutually. We tried for 10 years. It is not anyone’s fault, it just isn’t a good fit. Sincerely, DocuSign Envelope ID: F34E9C25-9788-46EC-A3C5-3974D5B68A6B Jim Rebosio General Manager T 650 328 2800 Ext. 7001 F 650 323 5743 sheraton.com westin.com I like us on Facebook l follow us on Twitter l THE SHERATON PALO ALTO 625 El Camino Real, Palo Alto, CA 94301 THE WESTIN PALO ALTO 675 El Camino Real, Palo Alto, CA 94301 From: Glass Slipper Inn <glassslipperinn@gmail.com> Sent: Wednesday, September 23, 2020 3:30 PM To: Council, City <city.council@cityofpaloalto.org> Subject: Public Comment for Sep 28th Council Meeting, regarding TBID agenda item CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Dear Councillors: The Glass Slipper Inn has been a participating member of the San Mateo County Convention and Visitors Bureau's (SMCCVB) Tourism Business Improvement District (TBID) since its inception. We are writing to add our public comments to your upcoming discussion to be undertaken at the Monday, September 28th council meeting, during which you intend to discuss the city's continuing participation in the TBID. During our time of participation in the district, we have not seen a measurable impact to our individual bookings or to our group reservations from the district. Nor have we obtained any direct or indirect referrals for hotel business by district-affiliated companies and organizations. As a result, we don't believe that there is value to be gained by continuing to be a member of the TBID and to pay the ongoing fee assessment. Thus we request that you adopt a resolution to withdraw participation from the TBID for Palo Alto hotels. Regards, Mahendra Patel (General Manager) -- Glass Slipper Inn 3941 El Camino Real, Palo Alto, CA 94306 650-493-6611 // 650-493-4421 [fax] DocuSign Envelope ID: F34E9C25-9788-46EC-A3C5-3974D5B68A6B From: Glass Slipper Inn <glassslipperinn@gmail.com> Sent: Wednesday, September 23, 2020 3:30 PM To: Council, City <city.council@cityofpaloalto.org> Subject: Public Comment for Sep 28th Council Meeting, regarding TBID agenda item CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Dear Councillors: The Glass Slipper Inn has been a participating member of the San Mateo County Convention and Visitors Bureau's (SMCCVB) Tourism Business Improvement District (TBID) since its inception. We are writing to add our public comments to your upcoming discussion to be undertaken at the Monday, September 28th council meeting, during which you intend to discuss the city's continuing participation in the TBID. During our time of participation in the district, we have not seen a measurable impact to our individual bookings or to our group reservations from the district. Nor have we obtained any direct or indirect referrals for hotel business by district-affiliated companies and organizations. As a result, we don't believe that there is value to be gained by continuing to be a member of the TBID and to pay the ongoing fee assessment. Thus we request that you adopt a resolution to withdraw participation from the TBID for Palo Alto hotels. Regards, Mahendra Patel (General Manager) -- Glass Slipper Inn 3941 El Camino Real, Palo Alto, CA 94306 650-493-6611 // 650-493-4421 [fax] From: Stephanie Wansek <stephanie.wansek@gmail.com> Sent: Wednesday, September 23, 2020 8:45 PM To: Council, City <city.council@cityofpaloalto.org> Cc: City Mgr <CityMgr@cityofpaloalto.org>; Apple, Kara <kara.apple@cityofpaloalto.org> Subject: Comments for packet - City Council Meeting Sept 28 Action item # 10 CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Dear Council member, I am writing to confirm the Cardinal Hotel’s position that the SMCCVB does not add value to Palo Alto DocuSign Envelope ID: F34E9C25-9788-46EC-A3C5-3974D5B68A6B hotels and to support the withdrawal of Palo Alto hotels from this organization. It is worthwhile to note that the 2020 hotel outreach results conducted by Lt. Kara Apple reflect a higher percentage of hotels voting to withdraw from the SMCCVB than in the 2019 outreach. I think two points are particularly noteworthy: • Whether in booming times, or in the worst economic times that any hotelier can remember, the sentiment about belonging to and funding the SMCCVB is not deemed valuable by 20 of the 23 hotels that chose to participate in the survey. Let us agree that not participating in the survey does not constitute a vote to continue. • Of the seven largest hotels, five want to end the relationship with the SMCCVB. Among the five, two properties that did not respond in 2019 now want to leave. Although some hotels used to ‘pass through’ SMCCVB fees to their guests, this is no longer possible. With the current drastic drop in room rates and the low number of guests, fees are now an internal cost along with payroll and all other expenses. Again, this is a recurring cost that has not added value over the previous ten-year relationship. To reiterate the experience of the Cardinal Hotel with the SMCCVB over the past ten years: • No relevant leads - we engaged in lead process for years • No leads ever converted to bookings • No outreach from SMCCVB between 2010 -2018 • In 2019, after the SMCCVB learned that the Palo Alto hotels were not satisfied with the performance of the organization, there was a flurry of outreach and that effort fell flat. I talked with Nina Ramos and Juan Camero and neither followed through with promises to connect me with opportunities to present my historic property - either directly with travel writers or with another colleague to discuss the film market. This organization may have its place marketing for San Mateo County hotels. Our market here in Palo Alto is simply too different which makes their efforts in our market irrelevant. As many have said, it is DocuSign Envelope ID: F34E9C25-9788-46EC-A3C5-3974D5B68A6B just not a good fit. After 10 years and paying over $3,000,000 to the SMCCVB, there should be no fundamental doubt about its relevance to Palo Alto hotels. Now IS the time to withdraw. I appreciate your time and consideration in reading this email. Sincerely, Stephanie Wansek Stephanie Wansek | General Manager THE CARDINAL HOTEL 235 Hamilton Ave | Palo Alto, CA | 94301| www.cardinalhotel.com p: (650) 323-5101 f: (650) 325-60856 | stephanie@cardinalhotel.com From: Hotel Parmani | Palo Alto <info@hotelparmani.com> Date: Thu, Sep 24, 2020 at 8:01 AM Subject: Withdrawal from TBID To: <city.council@cityofpaloalto.org> Thank you for taking the time to read through my perspective below. I write to request withdrawal from participation in the SMCCVB ("CVB") TBID. My family has owned and operated a small independent motel on El Camino Real for over 40 years, which has required significant sacrifice, risk and diligence, as well as a fierce loyalty to Palo Alto. We have endured many economic cycles and observed what works for small properties like ours, which informs my perspective. Participation in the TBID (i) is an ineffective use of hotel marketing dollars, (ii) was forced upon small independent motel properties like ours, (iii) is something an overwhelming majority of hotels do not want, (iv) is advocated for by organizations with conflicts of interest. I urge you to support a majority of hotels by withdrawing from forced participation in the TBID. Ineffective TBID DocuSign Envelope ID: F34E9C25-9788-46EC-A3C5-3974D5B68A6B The overwhelming response by hotels (large and small) voting to withdraw makes clear that participation in the TBID is fruitless. Years of evidence and experience show that the TBID is ineffective and costly with no tangible reward. The TBID does not serve small motel properties like mine. We have netted exactly 0 dollars from participation over 10 years. In fact, I get more business from Stanford in any typical one week period from organic, non-commissionable referral business (even currently) than the CVB provided to me in nearly 10 years combined. The CVB cannot seriously argue it provides a valuable return on investment to smaller motels like mine. They do not pretend to try. Instead, the CVB advances a theoretical economic argument that the value to small motels like mine lay in the hypothetical overflow business from larger hotels that secure bookings through participation. This is not true. Consider that the 4 largest hotels in Palo Alto wish to withdraw from the TBID. What does that tell you? The larger hotels likely want out because they receive no tangible return on investment. If the TBID does not generate business for the largest hotels, there is not any overflow business for small motels like ours. This is my experience. The largest hotels would not want to withdraw if the CVB was producing business for them. Instead, they overwhelmingly want out. It should alarm you that so many properties want out. If the TBID is valuable, there wouldn't only be 3 affirmative Yes votes (excluding the 4 that were counted as Yes votes because they did not respond). Business owners and general managers calculate financial impacts - if there is a net positive financial impact, it is unlikely they would want out. Small properties like mine receive zero benefit from participation in the TBID no matter how the overall regional economy is performing. In good times, Palo Alto's rates are too expensive for leads generated via the CVB. The CVB cannot generate meaningful leads in recessionary, depressed economic times like these because there are either too many hotels competing for the same business (San Mateo County + Palo Alto), or there isn't any business to be generated. The TBID is a poor fit - in good times and bad. Forced Participation At its inception, small properties like ours were not given a choice nor a voice - we were forced to participate in the TBID. A small subset of unrepresentative, larger hotels (Crowne Plaza, Sheraton, Westin, Garden Court Hotel, and Dinah's), the Palo Alto Chamber of Commerce, and City Council entered into this arrangement on behalf of all properties. The concept was sold as affording Palo Alto hotels an opportunity to increase visibility and generate business coming out of the last recession in exchange for an annual fee charged to hotels. I fervently believe this value proposition has not been realized. Nearly 10 years later, all but one of the original 5 hotels that had a voice voted to withdraw from the TBID. With all hotels afforded a voice regarding the original value proposition, the result is crystal clear. Withdrawal Requested by Majority DocuSign Envelope ID: F34E9C25-9788-46EC-A3C5-3974D5B68A6B To force the majority of hotels to stay in an arrangement they resoundingly wish to divorce themselves from signals to Owners and GMs that the CVB, Chamber, and City Council are better suited than each individual property on how best to use and allocate its marketing budgets. Hotel operators and owners know what is best for their business and conclude that continued participation is not worthwhile. Twenty properties voted to exit the arrangement, and only 3 affirmatively voted to continue participation (with 3 non-responsive and 1 not voting counted as Yes votes). Conflicts of Interest / Interested 3rd Party Input City Council should not consider the input of the CVB or the Chamber on whether to withdraw from the TBID. Both organizations hang onto the notion that the TBID is valuable. Unfortunately, both have obvious conflicts of interest of financial incentives to force continued participation despite hotels' objections. The CVB's input should not carry any weight. It will lose $309K of annual funding. The CVB's attempt to influence City Council on this issue, contrary to the will of a majority of Palo Alto hotels, can be attributed more to maintaining its funding cash cow than to generating any meaningful return for Palo Alto properties - in particular small properties like ours. The CVB is not entitled to this forced participation simply because it will blow a hole in their budget. If the CVB had any meaningful business generation over the last 10 years, 75% of properties would not request withdrawal. I cannot imagine any business wanting to exit a relationship which yields them even a marginally meaningful return on investment. Similarly, City Council should not prioritize the Chamber's position over that of the majority of hotels. The Chamber will lose $31K in funding. I understand their concern. However, the Chamber's position on the issue has absolutely nothing to do with what is best for hotels. The Chamber is an interested 3rd party - not a hotel operator nor travel agency. If the Chamber's scant funding was not at stake, it could not credibly argue that it has any vested interest or position on this issue. The Chamber is certainly not in a better position than I am to tell you whether or not participation is in my best interest. City Council should value the clear mandate from a majority of hotels in Palo Alto of what is best for their businesses and discount the opinions of other parties that do not represent the views of individual businesses. Education / Outreach / Chamber of Commerce The CVB touts that it provides education and outreach to the industry. I note to you that there are countless other hotel organizations, with nominal annual fees, which provide more comprehensive education and outreach. DocuSign Envelope ID: F34E9C25-9788-46EC-A3C5-3974D5B68A6B The Chamber notes that it provides visitor's information electronically and in print form - which is updated every two years. I submit to each of you that in a world where information changes by the second, having a printed guide updated every 2 years is not beneficial to hotels. Consider how you plan your own travel. Nobody relies on print brochures nor thinks to themselves to start a hotel search by picking up the phone to call the local Chamber of Commerce. Travellers use Google, Hotels.com, other Online Travel Agencies, or other referrals. The traveler coming to Palo Alto is technologically savvy, knows why he/she is coming, and has no trouble identifying the reasons to stay in Palo Alto. Can you imagine picking up the phone and calling the Chamber, and the Chamber actually having a dedicated person who picks up the phone and dispenses advice on where to stay? And if they did, what is their criteria for referring to hotels - which hotels get the referrals? I have no desire to replace TBID participation with anything else. The CVB's efforts to convince Palo Alto hotels to remain in the TBID failed because it provides no actual value. The CVB has asked for more time to "right the ship." They've had 10 years. It is time to listen to your businesses and terminate this arranged marriage. Conclusion I urge City Council to listen to its hotel operators and withdraw from the TBID effective immediately. Businesses like mine are doing everything we can to survive during this pandemic and uncertain economic time. Small businesses like ours must have the agency and control over how we spend our hard-fought revenue, including our own individualized, tailored marketing efforts. City Councilmembers do not need to make a value judgment on whether you think it is worthwhile to continue participation. Council need only understand that the affected properties have spoken - emphatically. Large and small properties want to withdraw. It defies logic that if you find something to be of value, you would want to rid yourself of it. I thank you again for considering my input. Sincerely, Yatin Patel Hotel Parmani | Palo Alto 3200 El Camino Real Palo Alto, CA 94306 Tel: 650.493.9085 Fax: 650.493.8405 www.hotelparmani.com DocuSign Envelope ID: F34E9C25-9788-46EC-A3C5-3974D5B68A6B From: General Manager CA610 <gm.ca610@choicehotels.com> Sent: Wednesday, September 23, 2020 11:25 AM To: Council, City <city.council@cityofpaloalto.org> Cc: Raj Shah <qipa@yahoo.com>; Apple, Kara <kara.apple@cityofpaloalto.org> Subject: Opting out of SMCCVB agreement CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Hello, I am writing you because we (The Comfort INN Palo Alto) would like to opt out or be removed from the SMCCVB Agreement. Reasons being there are no economic benefits for our property. It puts us at a competitive disadvantage when we are charged this fee and it produces no viable leads over the years. So we are asking to be removed from the program and agreement. Thanks, JP Howard General Manager Comfort INN Palo Alto DocuSign Envelope ID: F34E9C25-9788-46EC-A3C5-3974D5B68A6B CITY OF PALO ALTO COUNCIL APPOINTED OFFICERS COMMITTEE September 28, 2020 The Honorable City Council Palo Alto, California Approval of a Contract With Baker Tilly US, LLP for Internal Auditor Services in an Amount Not-to-Exceed $1,300,000 for a Term Commencing October 1, 2020 through June 30, 2022, Including Approval of Four Initial Task Orders; Adoption of a Resolution to Appoint Kyle O'Rourke of Baker Tilly US, LLP as City Auditor; and Amendment of the Table of Organization to Eliminate 4.0 Positions in Various Funds Recommendation The City Council is recommended to: A. Approve and authorize the Mayor or his/her designee to execute the attached professional services contract (Attachment A) with Baker Tilly US, LLP for internal auditing services in an amount not to exceed $1,300,000 for a term commencing October 1, 2020 through June 30, 2022, including approval of four initial task orders detailing initial work commencing on October 1, 2020; B. Adopt a resolution appointing Kyle O’Rourke of Baker Tilly US, LLP, Certified Internal Auditor (CIA), as Palo Alto’s City Auditor (Attachment B); and C. Amend the Table of Organization to Eliminate 4.0 positions, 1.0 City Auditor position in the General Fund, and 3.0 Senior Performance Auditor positions (2.0 from the General Fund and 1.0 from the Utilities’ Enterprise Funds). Executive Summary The actions recommended in this report will result in the transition of internal audit services to Baker Tilly US, LLP (Baker Tilly), an internationally-regarded advisory, tax, auditing, and assurance firm, and appoint Kyle O’Rourke, MPA, CIA, CGAP, CRMA, Senior Consulting Manager with Baker Tilly, as Palo Alto’s City Auditor in conformance with the Palo Alto City Charter. This will This contract approval authorizes a term commencing October 1, 2020 through June 30, 2022, in an amount not to exceed $1,300,000, including four initial task orders detailing initial work commencing October 1, 2020. The contract provides the option to extend the term for a period or periods of up to three additional years, through June 30, 2025, by mutual agreement with compensation to be determined in such years by terms outlined in the contract. Any extension would require future action by the City Council for formal authorization and, if enacted, would allow for up to a five-year term in total. Finally, the recommended actions will adjust the City’s authorized staffing and resources given the new model for the delivery of internal audit services. Page 2 Per City Council direction on February 10, 2020, the Council Appointed Officers (CAO) Committee oversaw a request for proposals (RFP) process for outsourced internal auditing services, led a procurement process aligned with Council direction, and engaged in a transparent review of scope of work services, RFP evaluation, and a public interview process as part of the overall effort. The services that were solicited include management and performance auditing and oversight of the City’s independent financial auditor which completes annual financial reporting including the City’s Comprehensive Financial Report (CAFR). From April to June, the CAO Committee and evaluation team reviewed the RFP and evaluation process, developed the scope of services, and screened responses to the RFP. Written proposals were evaluated under the criteria provided in Municipal Code section 2.30.410. This work resulted in public interviews of top firms by the CAO Committee on July 28. Following these public interviews, the City Council conducted closed session interviews of the City Auditor candidates designated by the top firms recommended by the CAO Committee. Through the interview process, the Council has selected Baker Tilly and Kyle O’Rourke to lead the City’s internal audit services. It is recommended that the City Council approve the proposed contract and initial task orders with Baker Tilly for outsourced internal auditing services, adopt a resolution appointing Kyle O’Rourke of Baker Tilly as City Auditor, and approve changes to the City’s Table of Organization to align resources with this direction. Discussion Baker Tilly is one of the few comprehensive professional services firms in this field with a group dedicated to state and local governmental clients. Baker Tilly’s experience extends across more than 40 states with specific public sector clients in California such as the cities of Carlsbad, Riverside, Burbank, Modesto and Richmond and several utility clients including Sacramento Municipal Utility District, Imperial Irrigation District, Northern California Power Agency, San Diego Gas & Electric, Glendale Utilities, Pasadena Water and Electric, Anaheim Public Utilities, and the California Public Utilities Commission. This is notable as Palo Alto owns and operates its own utilities. Page 3 Kyle O’Rourke is a 10-year veteran in internal auditing and consulting services. O’Rourke specializes in internal audit and risk consulting, business process reviews, organizational and operational assessments, benchmarking studies and technology needs assessments. He is a Certified Internal Auditor (CIA), a Certified Government Auditing Professional (CGAP), and holds a Master of Public Affairs with a concentration in Public Financial Management, and Bachelor of Science in Public Affairs, from Indiana University at Bloomington. O’Rourke also serves as Senior Vice President of the Chicago chapter of the Institute of Internal Auditors (IIA). Other industry memberships include the Association of Local Government Auditors (ALGA) and the Association of Government Accountants (AGA). He holds several other industry certifications and related training including IIA Risk Management Assurance Certification and the IIA Leadership Academy, and has written extensively on auditing, risk-management and related topics. Baker Tilly’s response to the formal RFP can be found here. Included in this package is the full resume of Mr. O’Rourke which can be found in the Appendices pages viii – ix. Contract Terms Summary: TERM: Initial 1.75-year contract commencing October 1, 2020 through June 30, 2022; mutual option to renew for up to an additional three years through June 30, 2025 (requires City Council approval) COMPENSATION: Target value of compensation is not to exceed $1.3 million during the initial term. Year 1: $550,000 (prorated to conform to City’s fiscal year ending 6/30/21); Year 2: $750,000. LOCATION: Contract terms and compensation anticipate that the City Auditor, Kyle O’Rourke, will be on-site in Palo Alto every other week (post the current public health emergency); Other staff will be on-site as appropriate. SCOPE OF SERVICES: Core services stipulated include Citywide Risk Assessment at least every other year; Annual Audit Plan preparation; Anticipated six audits per year Page 4 (four major and two smaller audits); several other small projects; Management and oversight of the Fraud, Waste and Abuse Hot Line; Selection and oversight of the City’s Independent Financial Auditor. Audits will be conducted in conformance with established auditing standards (Yellow Book). REPORTING/PUBLIC: Baker Tilly will ensure biannual peer reviews are completed and annual comparison of auditing costs with benchmarked agencies. Quarterly status reports, annual reports, and the annual audit plan will continue to be reviewed by the appropriate governing body (outlined in oversight below) as prepared and brought forward by Baker Tilly. OVERSIGHT: Consistent with a City Council Appointed Office as stipulated in the City’s Charter, Mr. O’Rourke will report to City Council including annual performance reviews by the City Council. City Council will review quarterly status reports and annual reports Policy and Services Committee will continue to oversee the annual audit plan, status reports and completed audits TERMINATION Termination is at City Council’s discretion with 10 days’ notice; Baker Tilly may terminate with 30 days’ notice only in event of a substantial failure of performance under the contract by the City. Background, Process, and Selection Steps On February 25, 2019, the City Council initiated a process to review service delivery options for the City Auditor function, including commission of an industry survey. City Council Auditor Resource Evaluation; Report #10109. On February 10, 2020, the City Council discussed service models and considered the completed industry survey “Internal Auditing Practices: City of Palo Alto Relative to Industry Practices” commissioned in February 2019. Council unanimously requested the Council Appointed Officers Committee to initiate an accelerated RFP process to engage an outside firm to provide internal auditor services for the City of Palo Alto. CAO Committee Discussion and Recommendation – City Auditor's Office; Report #11039. After the City Council’s action, City staff assisted the Council to engage an outside consultant to support the work of the CAO Committee. On March 17, 2020, the Committee approved a consulting engagement with Management Partners, a national local government consulting firm, to work with the Council on the internal auditing services RFP. Development Of A Request For Proposals For The City Auditor Function And Discussion Of Process And Next Steps; Report can be found here. In addition, the CAO Committee appointed a City Auditor RFP Ad Hoc Subcommittee consisting of Council Member Eric Filseth to oversee and advise on the progress of this work. On April 16, 2020 the CAO Committee had a robust discussion about the auditor scope of services, the RFP itself, and the evaluation process. Request for Proposals for the City Auditor Function: Key Decision Points for Scope of Services, Proposer Requirements, and Process Steps: Page 5 Report can be found here. Based on the CAO Committee’s direction, the RFP was posted on April 21 on the City’s PlanetBids purchasing website, and additional outreach to prospective proposers was conducted. On May 4, the City Council approved the CAO Committee’s recommendation that the Committee evaluate responsive proposals and forward one or more finalists to Council for further evaluation and selection of a firm and individual to serve as City Auditor. Review And Approval Of The City Auditor Request For Proposals Evaluation Process; Report can be found here. The RFP evaluation process specified that if there were more than three responsive proposals submitted, then an Evaluation Team would be convened to do a first screening of the responses. The Evaluation Team was to include: Council Member Eric Filseth as the City Auditor RFP Ad Hoc Subcommittee; Greg Larson from Management Partners; and an independent third party appointed by the CAO Committee Chair, former Mayor and Council Member Larry Klein as CAO Committee Chair Liz Kniss’ appointee. On May 26, 2020 the CAO Committee was informed that none of the six proposers responding to the RFP released on April 21, 2020 were fully compliant with the City’s responsiveness standards for this RFP. Consequently, the CAO Committee recommended, and on June 1, 2020 the City Council approved, a rejection of all proposals and authorization to reissue the RFP with clarifications to ensure competitive and responsive proposals, with an expectation that interviews with qualified proposers would be conducted in July. Update on the Internal Auditing Request for Proposals and Direction on Next Steps Report can be found here. The RFP was then reissued on June 8, 2020. The same six proposers submitted responsive proposals on July 10, 2020 which were then scored by the Evaluation Team. On July 21, 2020 the CAO Committee reviewed the Evaluation Team’s rankings and concurred with the recommendation to invite four of the six firms to structured CAO Committee interviews. Discussion and Direction on the Evaluation of Submittals for the Internal Auditing Services Request for Proposals: Agenda including the report can be found here. The CAO Committee interviews were completed on July 28, 2020 and the Committee recommended that individuals who would serve as the designated City Auditor from the three top-ranked firms be interviewed by City Council during closed session on July 29. Video of the July 28th interviews can be found here. Direction to proceed with reference checking was provided with a final round of interviews conducted on August 17 following reference checking and contract exception review. The City Council interviewed the two final proposed City Auditor designees and selected a preferred applicant. The City Council directed Management Partners to proceed with contract negotiations with the preferred applicant and firm, and delegated oversight of the remaining process to Councilman Eric Filseth as the City Auditor RFP Ad Hoc Subcommittee. Final contract negotiations with the preferred firm were conducted through early September, and the standard one-week protest period passed with no protests filed. Page 6 The City Council and CAO Committee undertook a systematic, deliberative and public process to ensure that the selected firm and proposed City Auditor candidate were selected based on the best possible value to the City in exchange for public funds. As is typical with RFP processes, the evaluation of the written proposals and subsequent interviews of the ranked firms, were conducted in structured fashion and in accordance with evaluation criteria established in the Municipal Code. The Council paid particular attention to the experience, knowledge, skills and abilities of the individual proposed to serve as City Auditor. Timeline and Next Steps If Council approves the contract on September 28, the engagement is anticipated to begin October 1. The Task Orders for the initial work are attached to the proposed agreement for services and include performing a citywide risk assessment, preparation of an audit plan, oversight and selection of the independent financial auditor, and ongoing services support and evaluation. The risk assessment and resulting audit plan will be presented to and discussed at a Policy & Services Committee meeting and then proposed to City Council for consideration and approval. Future changes to task orders may be considered by the Chair of the Policy & Service Committee and advanced to the full council if significant. The Council anticipates initial audit work will begin in 2021 following adoption of the audit plan. Resource Impact Fiscal Year 2021 is expected to be a transition year as the organization shifts to a new model for the delivery of internal audit services. This memorandum authorizes the necessary steps to align resources with the new service delivery model through both the authorization of the contract with Baker Tilly and the amendments to the Table of Organization, also known as the authorized staffing levels. With the elimination of 4.0 positions (1.0 City Auditor and 3.0 Senior Performance Auditors), funds will be reallocated from salary to non-salary expenses to provide funding for the FY 2021 pro-rated contract not to exceed $550,000. In FY 2021, as a result of the transition costs, the Office of the City Auditor is expected to remain at or potentially exceed adopted budget appropriation levels of $1.1 million in all funds, $870,000 in the General Fund (this includes central allocated costs as well as direct expenses). Staff will monitor these transition costs and bring forward any adjustments necessary as part of the FY 2021 Mid-Year Budget Review or Year-End Budget adjustments. In subsequent years, it is expected that the contract services authorized will be funded similarly to the current audit services, 75% in the General Fund and 25% in the Utilities Enterprise Funds for a total not to exceed $750,000 annually. The FY 2022 budget development will incorporate these changes to both staffing and contractual service funding reducing contract services funding in the Office of the City Auditor for this contract as well as the contract with the City’s independent financial auditor. Stakeholder Engagement This work has been based on extensive prior discussion and direction from the City Council during multiple public meetings and overseen by the Council Appointed Officers Committee which has also met in several public meetings. Page 7 Environmental Review This action is exempt from CEQA and requires no further environmental review. ATTACHMENTS: •Attachment A: Contract with Baker Tilly for Internal Audit Services (C21179340)(PDF) •Attachment B: Resolution Appointing Kyle O'Rourke as Palo Alto City Auditor v3 (PDF) Page 8 1 Attachment A CITY OF PALO ALTO CONTRACT NO. C21179340 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND BAKER TILLY US, LLP This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of October, 2020, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and BAKER TILLY US, LLP, an Illinois Limited Liability Partnership, located at 205 Michigan Avenue, Suite 2800, Chicago, IL 60601 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY issued request for proposals (RFP) F21-001 (Re-issue) for internal auditor services in accordance with City Charter and Municipal Code requirement (“Project”) and desires to engage a consultant to provide such internal auditor services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Section 1 (Scope of Services) and Exhibit “A”, attached to and made a part of this Agreement. D. On September 28, 2020, the Palo Alto City Council approved this Agreement and a resolution appointing Kyle O’Rourke as designated City Auditor. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at Exhibit “A” (which includes without limitation the As Required Services detailed below in this Section 1) in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. CONSULTANT shall provide As Required Services associated with the scope of services described in Exhibit A, to be authorized by CITY in writing as detailed in herein. CITY may elect to, but is not required to, authorize As Required Services up to the maximum compensation amount set forth in Section 4. As Required Services, if any, shall be authorized by the CITY with a Task Order (as below) assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management), except as otherwise provided in the last paragraph of this Section 1, below. Each Task Order shall be in substantially the same form as the attached Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the 2 Attachment A provisions of this Agreement, and shall be drafted and proposed by CONSULTANT if so requested by CITY. Task Orders may be assigned at the task level as described in Exhibit A or associated sub-task level. Compensation for As Required Services shall be based on the compensation structure set forth in Section 4 and Exhibit B, including any authorized expenses, based on the hourly rates set forth in Exhibit B-1, or a negotiated lump sum, to be set forth in the Task Order. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to the CITY’s Project Manager within the time specified by the CITY’s Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY’s Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Services, and all Task Orders authorized under this Agreement, shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for As Required Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth in Section 4. Performance of and payment for any As Required Services are subject to all requirements and restrictions in this Agreement. The Task Orders for Tasks 1, 2, 3, and 5 for Fiscal Year 2020-21 are attached and hereby approved. Any changes to herein-approved Task Orders for Tasks 1, 2, 3, and 5 may be made by subsequent review and approval by the CITY’s Project Manager via amended Task Order, utilizing the Task Order approval process detailed herein. SECTION 2. TERM. The term of this Agreement shall be from October 1, 2020 through June 30, 2022, coinciding with partial Fiscal Year 2020-21 (October 1, 2020 through June 30, 2021) and full Fiscal Year 2021-22 (July 1, 2021 through June 30, 2022), unless terminated earlier pursuant to Section 19 of this Agreement. The term of this Agreement may be extended by written instrument, in accordance with Section 27.4 of this Agreement, for any period or periods not to exceed three (3) additional years. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the Scope of Services set forth in Exhibit A and/or the timeline set forth in the relevant Task Order, as applicable. Any Services for which times for performance are not specified in this Agreement or in the relevant Task Order shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The total compensation to be paid to CONSULTANT for performance of the Services, including As Required Services (per Section 1) and any reimbursable expenses, shall not exceed five hundred and fifty thousand dollars ($550,000) in partial Fiscal Year 2020-21, and seven hundred and fifty thousand dollars ($750,000) in Fiscal Year 2021-22, for a total contract amount not to exceed one million three hundred thousand dollars ($1,300,000), as detailed in Exhibit B (Compensation). CONSULTANT agrees to complete all Services, including As Required Services and any reimbursable expenses, within this amount. The applicable rate schedule is set out at Exhibit “B- 1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this Agreement. 3 Attachment A Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit B, the CONSULTANT’s schedule of rates (set forth in Exhibit B-1), and/or the relevant Task Order, as applicable. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to the CITY’s Project Manager at the address specified in Section 13 below (Project Management), with a copy to CITY’s Accounts Payable Division, with payment subject to approval of the CITY’s Project Manager. The CITY will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. 4 Attachment A SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained. CONSULTANT agrees to maintain and make available to CITY, upon request and during regular business hours, accurate books and accounting records demonstrating CONSULTANT’s compliance with this Section. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the City Council. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the CITY. Upon prior written authorization by CITY via Task Order, CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the CITY via Task Order. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Jodi Dobson as the Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and Kyle O’Rourke as the designated City Auditor to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the Project Manager, designated City Auditor, or any other key personnel for any reason, the appointment of a substitute beyond a period of 90 days will be subject to the prior written approval of the CITY’s Project Manager. Further, the City Council will interview and approve by resolution the appointment of any substitute City Auditor as specified here and in Exhibit A (Scope of Services). CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the 5 Attachment A adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s Project Manager is the Chair of the City Council’s Policy and Services Committee, or other City Council designee as identified to CONSULTANT in writing. The CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services under this Agreement. City Council may designate an alternate CITY Project Manager upon approval of the Annual Audit Plan described in Exhibit A (Scope of Services), approval of City Council appointments, or at any other time it is so acted upon by City Council. SECTION 14. OWNERSHIP OF MATERIALS. CITY shall retain all title to CITY’s documents, data and other materials that are provided to CONSULTANT, including all copies thereof, and all rights to patents, copyrights, trademarks, trade secrets and other intellectual property rights inherent in such CITY materials. CITY hereby grants to CONSULTANT a limited, non-exclusive, non-transferable license to use such CITY materials in the performance of this Agreement and for CONSULTANT’s internal quality assurance purposes to meet its professional standards per the American Institute of Certified Public Accountants (AICPA), Consulting Standards and for no other purpose. Pursuant to this Agreement, CONSULTANT will provide CITY with the deliverables (“Deliverables”) detailed in Exhibit A (Scope of Services) and/or any approved Task Order, as applicable. Deliverables provided by the CONSULTANT shall become the property of the City. City hereby grants to CONSULTANT a limited, non-exclusive, non- transferable license to use such Deliverables for CONSULTANT’s internal quality assurance purposes to meet its professional standards per the AICPA, Consulting Standards, and for no other purpose without the prior written consent of the City Manager. All programs, working papers, files, and other materials used or made by the CONSULTANT pursuant to this Agreement in researching and preparing any Deliverable to be provided to the CITY hereunder shall remain the property of the CONSULTANT (except as otherwise provided for in this Section). The City will have access to such materials upon request. The CONSULTANT shall comply with the confidentiality provisions of this Agreement and shall not disclose to any third party the contents of such programs, working papers, files, or any other materials or Deliverables without prior written approval of the City Manager. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third-party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an 6 Attachment A Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 16.A. LIMITATION OF LIABILITY. 16.A.1. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, IN NO EVENT SHALL CONSULTANT BE LIABLE TO CITY, REGARDLESS OF WHETHER ANY CLAIM IS BASED ON CONTRACT OR TORT, FOR SPECIAL, CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES OR FOR ANY LOSS OF PROFIT OR LOSS OF BUSINESS BY CITY, EVEN IF CONSULTANT HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH POTENTIAL CLAIM, LOSS OR DAMAGE. EXCEPT AS PROVIDED IN THE IMMEDIATELY FOLLOWING SENTENCE, IN NO EVENT SHALL THE TOTAL AGGREGATE LIABILITY UNDER THIS AGREEMENT OF CONSULTANT TO CITY EXCEED THE DOLLAR AMOUNT PROVIDED FOR IN SECTION 4 (“NOT TO EXCEED COMPENSATION”) OF THIS AGREEMENT. CONSULTANT'S LIABILITY LIMIT SET FORTH HEREIN SHALL NOT APPLY TO (1) DAMAGES CAUSED BY CONSULTANT'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, (2) CONSULTANT'S OBLIGATIONS TO INDEMNIFY AND DEFEND CITY PURSUANT TO SECTION 16 (“INDEMNIFICATION”) OF THIS AGREEMENT, (3) LIMIT CLAIMS OR GENERAL DAMAGES THAT FALL WITHIN THE INSURANCE COVERAGE OF THIS AGREEMENT, (4) STATUTORY DAMAGES, AND (5) WRONGFUL DEATH CAUSED BY CONSULTANT. 16.A.2. CITY’S PAYMENT OBLIGATIONS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE PAYMENT OF THE COMPENSATION PROVIDED FOR IN SECTION 4 (“NOT TO EXCEED COMPENSATION”) OF THIS AGREEMENT. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, IN NO EVENT SHALL CITY BE LIABLE, REGARDLESS OF WHETHER ANY CLAIM IS BASED ON CONTRACT OR TORT, FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE SERVICES PERFORMED IN CONNECTION WITH THIS AGREEMENT. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 7 Attachment A 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage. CONSULTANT shall provide the Purchasing Manager with thirty (30) days' prior written notice of any cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification promptly following the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss in accordance with the terms of Sections 16 and 16.A of this Agreement. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The CITY may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. In the event of such suspension or termination, CONSULTANT will deliver to the CITY’s Project Manager on or before the effective date in the notice of suspension or termination, any and all Deliverables, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such Deliverables are the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.4. Upon such suspension or termination by CITY, CONSULTANT will be 8 Attachment A paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 16.A, 19.4, 20, 25 and 27. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager and Project Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender 9 Attachment A identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.30 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall 10 Attachment A take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 This Project is not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California without regard to conflict of law provisions. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 27.4. This 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 and approved as required under the Palo Alto Municipal Code. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 27.7. All exhibits, addenda, appendices, attachments, and schedules to this Agreement (collectively, “exhibits”) which are referred to herein are by such reference incorporated in this Agreement and deemed part of this Agreement. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 11 Attachment A 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City promptly following discovery that there has been a breach in the security of the system impacting or potentially impacting Personal Information, or in the security of the Personal Information, in CONSULTANT’S custody or control. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 In the performance of the services, CONSULTANT may have access to CITY’s proprietary or confidential information, the disclosure of which to third parties may damage the CITY, its employees, customers or residents and/or may violate state and/or federal law. CONSULTANT will hold such information in confidence and use it only to perform this Agreement and for no other purpose. CONSULTANT shall exercise the same standard of care to protect such information as CONSULTANT uses to protect its own proprietary and/or confidential information and in no case less than a reasonable standard of care. 27.11 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 27.12 This Agreement may be signed in multiple counterparts, which, when executed by the parties, shall together constitute a single binding agreement. 12 Attachment A Heather Acker CONTRACT No. C21179340 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO BAKER TILLY US, LLP City Manager (Required on contracts over $85,000) Purchasing Manager (Required on contracts over $50,000) Contracts Administrator (Required on contracts under $50,000) Officer 1 By: Name: Title: Jodi Dobson Partner APPROVED AS TO FORM: City Attorney or designee (Required on Contracts over $25,000) Officer 2 (Required for Corp. or LLC) By: Name: Title: Partner Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: COMPENSATION EXHIBIT “B-1”: SCHEDULE OF RATES EXHIBIT “C”: INSURANCE REQUIREMENTS FISCAL YEAR 2020/21 TASK ORDERS 1, 2, 3 AND 5 13 Attachment A EXHIBIT “A” SCOPE OF SERVICES Background In accordance with City Charter and Municipal Code requirements, the Palo Alto City Council must appoint a City Auditor who serves at the will of the Council, and who executes annual Council-approved internal audit plans through the Office of the City Auditor. Mission of the Office of the City Auditor The mission of the office of the city auditor is to promote honest, efficient, effective, economical, and fully accountable and transparent city government. This mission is fulfilled by conducting annual performance audits and financial/operational analyses of city departments, programs, services or activities. These audits are intended to ensure that city management is using its financial, physical, and informational resources effectively, efficiently, economically, ethically, and equitably, and in compliance with laws, regulations, contract and grant requirements, and city policies and procedures. Internal Auditor Scope of Services This section contains the scope of internal audit services to be performed by CONSULTANT as required by the City Charter and Municipal Code, including the required duties of, and audit tasks performed by, the CONSULTANT’S City Auditor. Service Requirements of the City Auditor The City Auditor shall: • Ensure that city departments and officers responsible for accounting and financial management activities comply with statutory requirements and accounting standards. • Perform internal audits of all the fiscal transactions and operations of the City, in accordance with annual audit plans approved and directed by the City Council, that include: o Conducting performance audits of city departments, programs, services or activities, o Examination and analysis of fiscal procedures and expenditures, o Provision of other analyses of financial and operational data, and o Periodic unscheduled audits. As Required Internal Audit Tasks The following 6 tasks represent the core services to be provided by CONSULTANT. These As Required Services must be authorized by CITY’s representative through the approval of Task Orders prepared by CONSULTANT, in further accordance with Section 4 of this Agreement (Not To Exceed Compensation) and Exhibit A-1 thereto (Professional Services Task Order). 14 Attachment A Task 1. Citywide Risk Assessment: Beginning with year 1 and continuing at a minimum every other year thereafter, prepare a citywide risk assessment following the same review and approval requirements described in Task 2. The risk assessment process will be the primary determinant of subsequent audit activity. Task 2. Preparation of Annual Audit Plan: Prepare an annual audit plan for review by the City Manager and appropriate City Council committee(s), and approval by the City Council, that identifies preliminary objectives of each audit to be performed, the schedule for each audit, and the estimated not to exceed resources and costs for each audit. The City Auditor shall consult with the City Attorney as necessary when developing audit plans. The annual audit plan will be largely based on the risk assessment required in Task 1. Task 3. Selection of External Financial Auditor and Annual Audit Coordination: Coordinate the annual external financial audit in each year of the contract term. Pursuant to the City Charter, the City Auditor shall oversee the selection process for the annual external financial auditor. The City anticipates conducting a Request for Proposals for this purpose in early 2021. Task 4. Execute Annual Audit Plan: Conduct a minimum number of internal audits in accordance with each approved annual audit plan based on the risk assessments. Each internal audit will commence only upon the City’s approval of a Task Order (which may be at the task or sub-task level) as required by this Agreement. Each internal audit requires the preparation of a written report for review by the City Manager, City Attorney and appropriate Council committee, and review/approval by the City Council as required. Task 5. Preparation of Quarterly Reports, Annual Status Report, Provision of City Hotline, and Other Ongoing Office Administrative Functions: Prepare and issue quarterly reports describing the status and progress toward audit completion, to be provided as information reports to the City Council and reviewed by the appropriate committee, unless other reporting methods are directed by Council. Prepare and issue an annual report in the first quarter of each fiscal year on the status of recommendations made in completed audits, to be provided as an information report to the City Council and reviewed by the appropriate committee, unless other reporting methods are directed by Council. Maintain and respond to the City’s employee “hotline” function provided through voicemail, email or written submissions. Coordinate referrals as appropriate to other City offices, departments or divisions and incorporate relevant referrals into future risk assessments, audit plans or audit activity as appropriate. 15 Attachment A Task 6. Evaluation and Benchmarking Undergo a peer evaluation following the guidelines of the Association of Local Government Auditors every two years (i.e., at the end of the initial contract term, then every other year thereafter throughout the contract term), or as required by the City Council, so that performance of the internal audit function can be objectively assessed. Prepare a cost per audit analysis following the first completed fiscal year, to be submitted at the beginning of the second fiscal year and every year thereafter throughout the contract term, that includes benchmark agencies determined by the CITY, and obtain independent third-party certification of data accuracy. The cost per audit analysis will be used to evaluate the cost effectiveness of services provided by the CONSULTANT. This evaluation will be incorporated into ongoing performance assessments as required and will help ensure that fees for service provision throughout the duration of the Agreement are objectively determined and mutually agreed upon. Last, the City Council will perform periodic Closed Session performance evaluations with the designated City Auditor as allowed by law and performed with the other City Council appointees (the City Manager, City Attorney and City Clerk). The appointed City Auditor will have a 6-month evaluation, and then annually thereafter throughout the initial contract term and any extensions granted by the City Council. Internal Auditor Services – Designation of City Auditor, Minimum Experience Requirements and Auditing Standards Consistent with City Charter and Municipal Code provisions, the City Council must appoint a City Auditor who serves at the will of the Council, and who executes annual Council-approved internal audit plans through the Office of the City auditor. Designation of City Auditor The CONSULTANT has designated Kyle O’Rourke to fulfil the role of City Auditor, whose designation received City Council approval and appointment, and whose appointment is subject to at-will modification by the Council. In accepting this appointment and its associated responsibilities and requirements, the CONSULTANT agrees to the following stipulations and reserved rights of the CITY in the event the City Auditor vacates the appointment for whatever reason: • CONSULTANT must designate a temporary replacement not to exceed 3 months if the City Auditor vacates the appointment without enough time for Council to appoint a replacement. • Any subsequent appointment of a City Auditor be conducted in the manner specified by the City Council, subject to applicable laws. • Continued appointment of the City Auditor is based on and subject to acceptable performance. 16 Attachment A During the term of this Agreement, CONSULTANT may propose an alternative City Auditor for Council consideration should it become necessary to do so. Minimum Experience Requirements The CONSULTANT and City Auditor must have at least 5 years of experience performing internal audit services to local, state, federal or quasi-public entities, with a focus on performance auditing. Auditing Standards The appointed City Auditor must be a Certified Public Accountant (CPA) or Certified Internal Auditor (CIA) in good standing and must maintain such certification at all time during the term of the Agreement. All staff members of CONSULTANT assigned to internal auditor services under this Agreement must be able to conduct or assist in conducting internal audits in accordance with Government Accounting Standards, as established by the Comptroller General of the United States, Governmental Accountability Office. Maintenance of Independent Contractor Status Proposers must maintain independent contractor status at all times during the Agreement term. Best Value Service Provision The City Council has awarded this contract to the CONSULTANT based on its ability to deliver cost effective and efficient internal auditor services that represent the best possible value in exchange for public funds. Continued service provision is dependent on a number of evaluative factors to help determine that the CITY receives the best possible value for internal audit services during the term of this Agreement. These include, but are not limited to, acceptable pricing; cost effective and service provision provided by the City Auditor and CONSULTANT; and favorable City Auditor performance evaluations. Additionally, budget constraints and economic conditions are factors that shall be considered in determining acceptable pricing and funding. 17 Attachment A EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $ 5. BUDGET CODE COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: ▪ SERVICES AND DELIVERABLES TO BE PROVIDED ▪ SCHEDULE OF PERFORMANCE ▪ MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) ▪ REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY: Name Title Date I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: BY: Name Title Date 18 Attachment A EXHIBIT “B” COMPENSATION The CITY agrees to compensate the CONSULTANT for the Services (including As Required Services) performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as Exhibit B-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Services, including As Required Services and any reimbursable expenses do not exceed the amounts set forth in Section 4 of this Agreement. Budget Schedule FY 2020-21 FY 2021-22 Totals Task 1: Citywide Risk Assessment $65,000.00 $25,000.00 $90,000.00 Task 2: Preparation of Annual Audit Plan $15,000.00 $15,000.00 $30,000.00 Task 3: Selection of External Financial Auditor and Annual Audit Coordination $30,000.00 $20,000.00 $50,000.00 Task 4: Execute Annual Audit Plan $390,000.00 $600,000.00 $990,000.00 Task 5: Preparation of Quarterly Reports, Annual Status Report, Provision of City Hotline, and Other Ongoing Office Administrative Functions $50,000.00 $50,000.00 $100,000.00 Task 6: Evaluation and Benchmarking $0.00 $40,000.00 $40,000.00 Totals $550,000.00 $750,000.00 $1,300,000.00 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, computing, telecommunications, insurance and other ordinary business expenses are included within the scope of payment for Services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost: 19 Attachment A Travel to or from the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost. Any and all such reimbursable expenses shall be identified by CONSULTANT as separate line items on the applicable Task Order. Consultant travel and meal expenses are not subject to the City’s Travel Policy. CONSULTANT shall identify a fixed “not to exceed” figure for anticipated reimbursable expenses, subject to the City of Palo Alto’s approval of such Task Order. Should CONSULTANT’S actual incurred expenses exceed the “not to exceed” figure, CONSULTANT and the CITY shall meet in good faith to determine the extent to which CONSULTANT shall be reimbursed by the CITY for the excess. All requests for payment of expenses exceeding $25.00 shall be accompanied by appropriate backup documentation and information, including without limitation prior City approval as part of the associated Task Order. 20 Attachment A EXHIBIT “B-1” SCHEDULE OF RATES Compensation for services rendered under this Agreement shall be calculated based on the following hourly rate schedule, which shall remain fixed during the term of the Agreement. Hourly rates for any subsequent renewal term or terms shall be negotiated to the mutual agreement of the parties. Staff level Hourly rate Partner/Director $345 City Auditor/Senior Manager $245 Manager $210 Senior Consultant $185 Consultant $130 21 Attachment A EXHIBIT “C” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF 22 Attachment A THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC PROFESSIONAL SERVICES TASK ORDER TASK ORDER 1 – FY21 Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: FY21-001 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: October 1, 2020 COMPLETION: January 15, 2021 4 TOTAL TASK ORDER PRICE: $65,000 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $1,235,000 5. BUDGET CODE COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Alison Cormack, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: ▪ SERVICES AND DELIVERABLES TO BE PROVIDED ▪ SCHEDULE OF PERFORMANCE ▪ MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) ▪ REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY: Name Title Date I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: BY: Name Title Date DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: • Services and Deliverables To Be Provided • Schedule of Performance • Maximum Compensation Amount and Rate Schedule (As Applicable) • Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to conducting the Citywide Risk Assessment involves four (4) primary steps: • Step 1: Project Planning & Management • Step 2: Information Gathering • Step 3: Analysis • Step 4: Reporting Step 1 – Project Planning & Management This step includes those tasks necessary to solidify mutual understanding of the risk assessment scope, objectives, deliverables, and timing as well as ensuring that appropriate client and consultant resources are available and well-coordinated. Tasks include: • Finalize project design – The first project activities will be to: o Identify communication channels and reporting relationships and responsibilities of project staff o Review and confirm project timelines o Review and confirm deliverables • Arrange logistics/administrative support – Matters to be addressed include schedules for interviews and data collection, contact persons in the departments, any other logistical matters, etc. • Conduct kick-off meeting with key project stakeholders Step 2 – Information Gathering This step involves gathering information, through various means, that will enable the project team to understand the various risks facing the City. Tasks include: • Request and review background information – the project team will develop an information request(s) in order to obtain various background information from the City. The request will include, but not be limited to: DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC o Strategic plan(s) o Financial reports, including the most recent City Budget and Comprehensive Annual Financial Report (CAFR) o Operational policies and procedures o Municipal code o Consulting reports o Other relevant information and reports • Conduct interviews with City Council and management o Risk assessment interviews, aimed at understanding City functions and identifying risks, will be conducted with City Council members as well as department and division • Conduct research into key risks in order to identify relevant information to assess risks Overall, the project team will consider the following risk types: • Strategic • Financial • Operational • Technology • Compliance • Reputational • Political Step 3 – Risk Analysis In Step 3, the project team will develop a risk matrix consisting of auditable areas (also referred to as an audit or risk universe). The risk matrix will include the following risk categories: • Environment, Strategy, and Governance – risks that have an organization wide impact and are not subject to a specific department or function (e.g., ethics) • Significant Projects and Initiatives – risks associated with large projects (e.g., capital projects, technology implementation) or City initiatives (e.g., employee engagement initiative). • Function Specific Risks – risks associated with a specific department or function (e.g., procurement policy compliance) After assembling a risk matrix, the project team will assess the likelihood and impact of potential adverse events in order to quantitatively score each auditable area for purposes of prioritizing audit activities. Step 4 – Reporting In Step 4, the project team will finalize the draft Risk Matrix and prepare a draft Risk Assessment Report. The project team will ask for input (general completeness, risk scoring) on the Risk Matrix from key project stakeholders. Upon finalization of the Risk Matrix, the project team will finalize the Risk Assessment Report. DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC Deliverables: The following deliverables will be prepared as part of this engagement: • Risk Matrix • Risk Assessment Report • Presentation of Results to City Council (note that this may be combined with presentation of the Task 2 Annual Audit Plan) Schedule of Performance Anticipated Start Date: October 1, 2020 Anticipated End Date: January 15, 2021 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $65,000. The not-to-exceed budget is based on an estimate of 320 total project hours, of which 80 are estimated to be completed by the City Auditor. Reimbursable Expenses If circumstances allow, Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $1,800. The following summarizes anticipated reimbursable expenses: • Round-trip Airfare – $400 • Rental Car - $400 • Hotel accommodation - $700 (3 nights) • Food and incidentals – $300 Note that, if current restrictions associated with COVID-19 continue, an on-site visit may not be possible. The project team will work with the City to consider circumstances at the time. DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC PROFESSIONAL SERVICES TASK ORDER TASK ORDER 2 – FY21 Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: FY21-002 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: October 1, 2020 COMPLETION: January 15, 2021 4 TOTAL TASK ORDER PRICE: $15,000 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $1,220,000 5. BUDGET CODE COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Alison Cormack, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: ▪ SERVICES AND DELIVERABLES TO BE PROVIDED ▪ SCHEDULE OF PERFORMANCE ▪ MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) ▪ REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY: Name Title Date I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: BY: Name Title Date DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: • Services and Deliverables To Be Provided • Schedule of Performance • Maximum Compensation Amount and Rate Schedule (As Applicable) • Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to preparing the Annual Audit Plan involves two (2) primary steps: • Step 1: Consultation with City Council and Management • Step 2: Reporting Step 1 – Consultation with City Council and Management The Risk Matrix and Risk Assessment Report will serve as the primary drivers of the Annual Audit Plan. The project team will initiate discussions over Risk Assessment results, potential audit activities, and audit coverage with City Council and Management. The purpose of those conversations will be to understand the priorities of City Council, and to develop a Draft Annual Audit Plan. The Draft Annual Audit Plan will identify the following components for each audit activity: • Audit activity type – audit or consulting activity • Audit objectives and scope • Anticipated budget – both in terms of hours and budget • Anticipated timeline Step 2 – Reporting The project team will present the Draft Annual Audit Plan to the City Council in order to obtain input on each potential audit activity. Upon refining the plan, the project team will finalize the Annual Audit Plan for presentation to City Council. Deliverables: The following deliverable will be prepared as part of this engagement: • Annual Audit Plan DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC Schedule of Performance Anticipated Start Date: October 1, 2020 Anticipated End Date: January 15, 2021 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $15,000. The not-to-exceed budget is based on an estimate of 60 total project hours, of which 20 are estimated to be completed by the City Auditor. Reimbursable Expenses Baker Tilly does not anticipate incurring reimbursable expenses for this Task. DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC PROFESSIONAL SERVICES TASK ORDER TASK ORDER 3 – FY21 Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: FY21-003 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: October 1, 2020 COMPLETION: June 30, 2021 4 TOTAL TASK ORDER PRICE: $30,000 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $1,190,000 5. BUDGET CODE COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Alison Cormack, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: ▪ SERVICES AND DELIVERABLES TO BE PROVIDED ▪ SCHEDULE OF PERFORMANCE ▪ MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) ▪ REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY: Name Title Date I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: BY: Name Title Date DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: • Services and Deliverables To Be Provided • Schedule of Performance • Maximum Compensation Amount and Rate Schedule (As Applicable) • Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to preparing the Annual Audit Plan involves one (1) primary step in FY21. • Step 1: Selection of the Financial Auditor Step 1 – Selection of the Financial Auditor In FY20, the project team will assist in the selection of the Financial Auditor. In order to accomplish this task, the project team will: • Meet with management to understand the nature of the existing agreement with the Financial Auditors • Work with the Purchasing Department to develop a strategy for selection, including developing the solicitation, formulating the selection committee, evaluating proposals, finalizing selection, and developing a contract document • Review the prior solicitation materials with the Purchasing Department, Administrative Services Department, and Legal Department to identify necessary updates and other considerations • Assist the Purchasing Department in finalizing the solicitation materials • Coordinate activities of the selection committee • Coordinate contract review between the selected vendor and the Legal Department • Periodically report on the status of the selection to the City Council • Assist, as needed and required, in City Council presentations related to the selection Deliverables: The final deliverable associated with this Task consists of a final contract with the selected Financial Audit vendor. DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC Schedule of Performance Anticipated Start Date: October 1, 2020 Anticipated End Date: June 30, 2021 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $30,000. The not-to-exceed budget is based on an estimate of 130 total project hours, of which 40 are estimated to be completed by the City Auditor. Reimbursable Expenses Baker Tilly anticipates incurring reimbursable expenses for this Task. The expenses will be incurred to attend the City Council meeting for final selection of the Financial Auditor. The not-to-exceed maximum for reimbursable expenses for this Task is $1,300. The following summarizes anticipated reimbursable expenses: • Round-trip Airfare – $400 • Rental Car - $250 • Hotel accommodation - $450 (2 nights) • Food and incidentals – $200 Note that, if current restrictions associated with COVID-19 continue, the final presentation may take place virtually. The project team will work with the City to consider circumstances at the time. DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC PROFESSIONAL SERVICES TASK ORDER TASK ORDER 5 – FY21 Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: FY21-005 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: October 1, 2020 COMPLETION: June 30, 2021 4 TOTAL TASK ORDER PRICE: $50,000 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $1,140,000 5. BUDGET CODE COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Alison Cormack, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: ▪ SERVICES AND DELIVERABLES TO BE PROVIDED ▪ SCHEDULE OF PERFORMANCE ▪ MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) ▪ REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY: Name Title Date I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: BY: Name Title Date DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: • Services and Deliverables To Be Provided • Schedule of Performance • Maximum Compensation Amount and Rate Schedule (As Applicable) • Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly will provide the following services in Task 5: • Quarterly Reports • Annual Status Report • Provision of the City Hotline • Office Administrative Functions Deliverables: The following deliverable will be prepared as part of this engagement: • Quarterly Reports (2 in FY21) • Annual Status Report Schedule of Performance Anticipated Start Date: October 1, 2020 Anticipated End Date: June 30, 2021 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $50,000 The not-to-exceed budget is based on an estimate of 250 total project hours, of which 80 are estimated to be completed by the City Auditor. Reimbursable Expenses Baker Tilly anticipates incurring reimbursable expenses for this Task. The expenses will be incurred to present Quarterly Reports to City Council. DocuSign Envelope ID: E83396FE-60F3-42F1-8B72-D7107DD190AC The not-to-exceed maximum for reimbursable expenses for this Task is $2,800. The following summarizes anticipated reimbursable expenses: • Round-trip Airfare – $900 • Rental Car – $500 • Hotel accommodation - $900 (4 nights) • Food and incidentals – $500 Note that, if current restrictions associated with COVID-19 continue, the final presentation may take place virtually. The project team will work with the City to consider circumstances at the time. Certificate Of Completion Envelope Id: E83396FE60F342F18B72D7107DD190AC Status: Completed Subject: Please DocuSign: PaloAlto-BakerTilly-Agreement C21179340 Source Envelope: Document Pages: 35 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Terry Loo AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Terry.Loo@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 9/16/2020 4:46:45 PM Holder: Terry Loo Terry.Loo@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Jodi Dobson Jodi.Dobson@bakertilly.com Partner Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 75.100.2.17 Sent: 9/16/2020 5:08:18 PM Resent: 9/16/2020 5:25:21 PM Viewed: 9/16/2020 5:26:11 PM Signed: 9/16/2020 5:32:15 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Heather Acker Heather.Acker@bakertilly.com Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 47.35.161.170 Sent: 9/16/2020 5:32:19 PM Viewed: 9/16/2020 5:35:11 PM Signed: 9/16/2020 5:36:46 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Carbon Copy Events Status Timestamp Pete Gonda pgonda@managementpartners.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Sent: 9/16/2020 5:36:52 PM Signer Events Signature Timestamp In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Greg Larson glarson@managementpartners.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Kyle O'Rourke Kyle.ORourke@bakertilly.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Christine Paras Christine.Paras@CityofPaloAlto.org Asst. Director Administrative Services City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Sent: 9/16/2020 5:36:53 PM Sent: 9/16/2020 5:36:54 PM Sent: 9/16/2020 5:36:55 PM Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 9/16/2020 5:36:55 PM Certified Delivered Security Checked 9/16/2020 5:36:55 PM Signing Complete Security Checked 9/16/2020 5:36:55 PM Completed Security Checked 9/16/2020 5:36:55 PM Payment Events Status Timestamps Carbon Copy Events Status Timestamp Resolution No. ________ A Resolution of the City Council for the City of Palo Alto Appointing Kyle O’Rourke, Senior Consulting Manager with Baker Tilly US, LLP, as the Palo Alto City Auditor. R E C I T A L S A.The Palo Alto City Charter specifies the duties and functions of the City Auditor for the City of Palo Alto; B.The Charter further specifies that the City Council shall appoint the City Auditor; C.The Council has directed a comprehensive request for proposals process for outsourced internal auditing services; and D.The Council has interviewed candidates to serve as City Auditor resulting from that request for proposals process and has identified a highly- qualified, experienced candidate; NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Council hereby appoints Kyle O’Rourke, Senior Consulting Manager for Baker Tilly US, LLP, as City Auditor for the City of Palo Alto; SECTION 2. Kyle O’Rourke shall serve as City Auditor at the will of the Council as provided by the Charter, and shall further serve according to all of the terms and provisions of the Charter, the Municipal Code and the agreement for outsourced internal auditing services between the City of Palo Alto and Baker Tilly US, LLP; and SECTION 3. Nothing in this action confers employment or other employee rights, responsibilities and obligations to Kyle O’Rourke or Baker Tilly US, LLP.; and Attachment B SECTION 4. This resolution shall be effective October 1, 2020 and only through the term of the agreement for outsourced internal auditing services between the City of Palo Alto and Baker Tilly US, LLP, including any amendment, extension or termination approved by the Council. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: __________________________ City Attorney Attachment B City of Palo Alto (ID # 11627) City Council Staff Report Report Type: Informational Report Meeting Date: 9/28/2020 City of Palo Alto Page 1 Council Priority: Transportation and Traffic Summary Title: Resumption of RPP Enforcement Title: Resumption of Residential Preferential Parking (RPP) Enforcement From: City Manager Lead Department: Transportation Department Recommendation This is an informational report and no City Council action is required. Background and Discussion To preserve neighborhood parking availability for residents as more businesses continue to adapt to COVID-19 impacts and reopen, Residential Preferential Parking (RPP) enforcement will resume in all six residential districts the week of October 12, 2020. To preserve purchased permit value for resident and employee parkers, permits purchased in the last six months will remain valid through March 2021. Residents and permit holders will be notified about resuming enforcement via US mail. Additional announcements will be made via the City’s communication channels, and enforcement will resume “softly” for a limited period of time (warnings only). Visitors and employees in commercial areas will still be able to park without time or permit restrictions both on- and off-street (though Uplift Local visitors, businesses, and employees will continue to be encouraged to use garages and lots over curb parking, and to walk or bicycle, as well), while visitors to RPP districts will still have two hours of free parking available, until demand for parking increases. Staff will monitor key indicator blocks and corridors over the course of the remaining calendar year to track parking availability trends. Parking availability monitoring of streets near to University Ave. and California Ave. during Summer Streets revealed that most blocks remained below 65% parking occupancy in June and July. The block that registered the highest occupancy over the course of the six weeks monitored saw a significant decrease in occupancy in the weeks afterward, correlating with City outreach efforts to encourage Summer Streets visitors to City of Palo Alto Page 2 utilize time restriction free garage and lot space. As more of these blocks and others register parking occupancy rates over 70% this remaining calendar year, staff will announce and resume time restrictions on commercial parking. After suspending Residential Preferential Parking enforcement services in March 2020, staff have advanced a variety of planned parking program strategies to reduce costs and improve customer service. Residents in districts up for renewal have been, and will continue to be, contacted with instructions for how to sign up via the new online RPP Permit portal. The portal is already active for the College Terrace and Crescent Park districts, which opened for sales in August and September. Additional information on the City’s parking programs is available at: https://www.cityofpaloalto.org/gov/depts/trn/parking/default.asp/ City of Palo Alto (ID # 11576) City Council Staff Report Report Type: Informational Report Meeting Date: 9/28/2020 City of Palo Alto Page 1 Summary Title: Cybersecurity Awareness Proclamation - Month Oct 2020 Title: Cybersecurity Awareness Proclamation - October 2020 From: City Manager Lead Department: IT Department See attached proclamation. Attachments: • Attachment A: Cybersecurity Awareness Month Proclamation_2020 Proclamation Cybersecurity Awareness Month – October 2020 WHEREAS, the City of Palo Alto recognizes it plays a vital role in identifying, protecting and responding to cyber threats that may have a significant impact on security and privacy; and WHEREAS, critical infrastructure sectors are increasingly reliant on information systems to support financial services, energy, telecommunications, utilities, health care and emergency response systems; and WHEREAS, the “Stop.Think.Connect.™” Campaign is designated as the National Public Awareness Campaign implemented through a coalition of private companies, nonprofit and government organizations and academic institutions, aimed at increasing the understanding of cyber threats and empowering the American public to be safer and more secure online; and WHEREAS, in support of the Cybersecurity Framework, and to better assist businesses and government entities in addressing cyber threats, the Center for Internet Security/Multi-State ISAC, the Council on Cybersecurity, the Governors’ Homeland Security Advisors Council and public and private sector entities have developed a campaign to promote good cyber hygiene through actionable guidance for government and businesses, and to promote innovation, strengthen cybersecurity investment and enhance resilience across all sectors; and WHEREAS, maintaining the security of cyberspace is a shared responsibility in which each of us has a critical role to play by being aware of computer security essentials that will improve the security of the City of Palo Alto’s information infrastructure and the economy; and WHEREAS, the U.S. Department of Homeland Security (https://www.cisa.gov/cisa-cybersecurity- resources) and the National Cybersecurity Alliance (https://staysafeonline.org/) have declared October as National Cybersecurity Awareness Month, where all citizens are encouraged to visit the “Stop.Think.Connect.” Campaign website (https://www.cisa.gov/stopthinkconnect) and put that knowledge into practice in their homes, schools, workplaces, and businesses. NOW, THEREFORE, I, Adrian Fine, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim that the City of Palo Alto officially supports National Cybersecurity Awareness Month and the National Public Awareness Campaign “Stop.Think.Connect.™” Presented: September 28, 2020 ______________________________ Adrian Fine Mayor City of Palo Alto (ID # 11589) City Council Staff Report Report Type: Informational Report Meeting Date: 9/28/2020 City of Palo Alto Page 1 Summary Title: PAFD Semi-Annual Performance Report FY20 Title: Palo Alto Fire Department Semiannual Performance Report for the Second Half of Fiscal Year 2020 From: City Manager Lead Department: Fire Recommendation Staff recommends the City Council review the Second Palo Alto Fire Department Semi- Annual Performance Report for Fiscal Year 2020. Background and Discussion In Fiscal Year 2015 the Palo Alto Fire Department (PAFD) identified performance reporting as a key initiative, and began reporting on key performance measures quarterly. In Fiscal Year 2018 the Department began submitting reports twice each year. The report provides overall calls for service information, as well as more detailed information on the key service areas, including Emergency Medical Services, Fire Suppression, Rescue and Hazardous Materials Response, and Fire Prevention. The report also provides information on mutual and automatic aid with our regional public safety partners and internal workforce planning efforts. Performance measures include the following: • Calls for Service: This data provides information on the final outcome of all emergency response calls. The data is tracked in the Fire Department’s Record Management System, and uses standardized call type codes, which are defined by the National Fire Incident Reporting System (NFIRS). The report includes overall call volume by primary category, and a detailed listing of call type in the service type sections. • Response Times: The time that an alert is received from the emergency dispatchers to the arrival of the fire resources at the scene of the emergency. City of Palo Alto Page 2 This information is tracked in the Computer Aided Dispatch (CAD) System, and the performance goals, or service levels, are set by Council in accordance with county and national standards. • Ambulance Transports: The report provides the number of ambulatory transports to hospitals or other medical care facilities, and the proportion of Emergency Medical Calls that included transports. This information is tracked in the Fire Department’s Emergency Medical Record Management System. • Fire Containment: This measures the proportion of building and structure fires that are contained to the area or room of origin within Palo Alto and Stanford Campus. • Mutual and Automatic Aid: This includes the number and proportion of all incidents that the PAFD provided aid to neighboring communities, as well as the aid received from neighboring Fire Departments. This information is tracked in the CAD System. • Permits: This provides the total count of facility, electric vehicle, and solar permits issued by the Fire Prevention Bureau. This information is currently tracked in the Development Center’s Records Management System. • Inspections: A count of the total number of Hazardous Materials and State Mandated inspections is provided. In addition, an estimated number of inspections to be completed for the year is also provided to assess overall workload performance to date. • Fire and Life Safety Plans Reviewed: This provides a total count of all plans reviewed, as well as the proportion of plans that were reviewed within the time guidelines. • Vacancies and Off-Line Employees: This section provides the total number of budgeted full-time equivalent shift personnel, current vacancies, and employees that are off-line due to workers compensation or light duty. This information is obtained from the Fire Department’s Staffing and Scheduling System (TeleStaff), as well as the City’s Personnel Management System. • Succession Planning Metrics: This provides the number and proportion of shift personnel that are eligible to retire, or will be eligible within the next five years. This information is tracked in the City’s Personnel Management System. This report also provides the total number of hours that shift personnel spent in an acting capacity. Personnel serving in an acting capacity are a key component of the Department’s overall succession planning efforts. Acting capacity allows junior officers to learn the responsibilities of higher ranks with guidance from City of Palo Alto Page 3 senior officers. This information is tracked in TeleStaff. • Training hours: The total number of training hours completed by all shift personnel is provided, as well as the average number of hours per each shift personnel on staff. This information is tracked in the Fire Department’s Record Management System. Local, State and Federal mandates require fire personnel to train a minimum of 20 hours per month. Attachments: • Attachment A: Coverletter Final • Attachment B: Semi Annual Performance Report FY20.2 Final • Attachment C: EMS Customer Survey FY20P2 City of Palo Alto Fire Department Honorable Councilmembers, Enclosed is the performance report for the second half of Fiscal Year 2020, and we have seen a significant change in our service demands and operations this period as a result of the Coronavirus pandemic. Overall call volume decreased by twenty-one percent (21%) from the same period in Fiscal Year 2019. All call types decreased with the exception of Fire Calls, which increased by forty-four percent (44%) from the prior year. The response to the Coronavirus became the primary focus after March 2020, and the Department tracked a total of forty-two (42) potential cases, with nine (9) confirmed patients treated with Coronavirus. This does not include potential symptomatic carriers that were treated for other medical or rescue needs. The EMS Chief and Command Team worked around the clock to stay up to date on the latest evidence- based science to develop proper equipment and decontamination policies and to secure Personal Protective Equipment for our crews. In an effort to assist in the research to advance the knowledge of the Coronavirus, the Department is participating in a voluntary antibody study currently being conducted by Stanford University. This period saw the very first time in recent history that the Fire Department is fully staffed. We successfully hired and trained a new class of entry level Firefighters. In them coming months, Fire will be presenting new revenue generating programs as a strategy to aid the impacts of the budget challenges that we are facing. Sincerely, Geo Blackshire Fire Chief Palo Alto Fire Department Second Semi-Annual Performance Report Fiscal Year 2020 Calls for Service The Palo Alto Fire Department (PAFD) responded to a total of 3,603 calls for service in the second six- month period of Fiscal Year 2020. Calls declined twenty-one percent (21%) in comparison to prior year which can be attributed to the impacts of the Coronavirus Pandemic. The calls include responses within Palo Alto, Stanford, and neighboring cities to provide Auto and Mutual Aid. Approximately eighty-eight percent (88%) of calls are generated from Palo Alto, eleven percent (11%) from Stanford, and the remainder from neighboring cities or requests for regional fire deployment. The majority of calls were for Rescue and Emergency Medical Services, making up sixty-two percent (62%) of the responses. Table 1 below shows the main categories of the calls to which PAFD responded. Calls are classified based on the actual event occurred, rather than the initial call request. Call Type FY19 JAN-JUN FY20 JAN-JUN Rescue and Emergency Medical Services Incidents 2,858 2,237 Good Intent 659 561 False Alarm and False Call 589 405 Service Call 335 267 Fire 48 69 Hazardous Condition, No Fire 89 64 Grand Total 4,578 3,603 Good Intent and False Alarm calls make up the second largest types of responses. Most calls for service that may be a true threat of fire, gas or other emergency hazard are actually found to be something else after Firefighters investigate the situation. These calls are coded as Good Intent calls. As well, many fire alarm activations are from causes other than fire or emergency hazard. These situations are categorized as False Alarm calls. PAFD FY20 Bi-Annual Performance Report 2 | Page Emergency Medical Services and Rescue Emergency Medical Service (EMS) is the primary service that the Palo Alto Fire Department provides to Palo Alto and Stanford. The Palo Alto Fire Department is the only Fire Department in the County that provides ambulance and transport services. Of the 2,237 Emergency Medical Service calls the PAFD responded to in the second period of Fiscal Year 2020, the overwhelming majority were for medical, trauma and cardiac calls that did not involve a vehicle accident. Rescue and EMS Performance Measures FY19 JAN-JUN FY20 JAN-JUN Emergency Medical Service Incident 2,826 2,201 Extrication, Rescue 26 26 Rescue or EMS Standby 2 10 Lock-In 3 0 Water and Ice-Related Rescue 1 0 Total 2,858 2,237 Transports Number of Transports 1,885 1,530 Percent of EMS Calls resulting in transport 67% 68% Response Times Percent of first responder arriving on scene to EMS calls within 8 minutes 92% 92% Percent of paramedic responder arriving on scene to EMS calls within 12 minutes 99% 99% Average response time for first responder arriving on scene to EMS calls 5:11 5:25 This period reflects a decrease to the number of Rescue and EMS Incident calls. Although the number of transports decreased, the proportion of calls resulting in a transport remained consistent at sixty- eight percent (68%) of all Rescue and EMS calls.  Response Time Goal Met: At least 90% of first responder arriving on scene to EMS calls within eight minutes. This period the PAFD first responder arrived on scene to EMS calls within eight minutes ninety-two percent (92%) of the time.  Response Time Goal Met: At least 99% of paramedic responder arriving on scene to EMS calls within 12 minutes. This period the PAFD paramedic responder arrived on scene to EMS calls within 12 minutes ninety-nine percent (99%) of the time. PAFD FY20 Bi-Annual Performance Report 3 | Page Fire Suppression Very few of the potential fire calls coming into dispatch turn out to be a real fire once PAFD investigates the scene and cause of the concerning elements. The total of calls this period was sixty- nine (69) whereas forty-nine calls where fire was present originated from Palo Alto. Fourteen (14) occurred in Stanford. There were two (2) building fires that the Department responded to and the fire was contained to the area of origin. Here are the descriptions of the significant fires for this period: 1/11/20 Units responded to a fire that started in a bedroom from a candle being knocked onto bedding. The fire was contained to the bedroom and adjacent hall. No injuries. 2/3/20 Suspected Arson fire. Vegetation around electrical substation burned. No injuries. 5/1/20 Vegetation fire in “dish” area of Stanford. Approximately 10 acres burned. Mutual Aide from Cal Fire was required, including a helicopter, hand crew, and engines. No injuries. Fire Suppression Measures FY19 JAN-JUN FY20 JAN-JUN Outside rubbish fire 3 21 Structure Fire 18 17 Natural vegetation on fire 2 14 Fire, Other 9 10 Special outside fire 6 4 Mobile property (vehicle) fire 10 3 Total 48 69 Response Times Percent of first responder arriving on scene to Fire calls within 8 minutes 85% 87% Average response time for first responder arriving on scene to Fire calls 5:57 5:43 Fire Containment Percent of building and structure fires contained to the room or area of origin 91% 50%  Response Time Goal Not Met: At least 90% of first responder arriving on scene to Fire calls within eight minutes. This period the PAFD first responder arrived on scene to Fire calls within eight minutes was eighty- seven percent (87%) of the time.  Fire Containment Goal Not Met: At least 90% of building and structure fires contained to the room or area of origin. This period there were two building or structure fires within Palo Alto or Stanford, of which fifty percent (50%) were contained to the room or area of origin. For both incidents crews arrived on scene in under 8 minutes. PAFD FY20 Bi-Annual Performance Report 4 | Page Hazardous Materials The Fire Department responded to a total of sixty-four (64) calls related to hazardous material incidents. The two primary categories of calls continue to be for Spills and Leaks or Electrical Problems, making up sixty-four percent (64%) of all Hazardous Materials calls this period. Hazardous Materials Response Measures FY19 JAN-JUN FY20 JAN-JUN Combustible/Flammable spills and leaks 32 24 Electrical wiring/Equipment problem 22 17 Hazardous Condition, Other 8 10 Chemical release, reaction, or toxic condition 6 8 Accident, potential accident 2 3 Biological hazard 6 1 Attempted burning, illegal action 1 1 Total 77 64 Response Times Average response time for first responder arriving on scene to Rescue & Hazardous Materials calls 6:28 7:03 PAFD FY20 Bi-Annual Performance Report 5 | Page Mutual and Automatic Aid The Fire Department previously held automatic aid agreements with five regional Fire Departments, including Mountain View, Menlo Park, and Santa Clara County Fire. At the request of the City of Mountain View, the automatic aid agreement was modified at the beginning of January 2018 resulting in a significant decrease in the number of calls compared to the prior fiscal year. The Palo Alto Fire Department continues to advocate for the closest unit response and collects objective data to support improved services to all of our communities under the previous automatic aid agreement. Santa Clara County Fire received the highest amount of aid from the department this period accounting for fifty-eight (58%) of all mutual and auto aid provided. The Department required Thirty- One Percent more Aid from other jurisdictions this period compared to the prior year, with the majority received from Mountain View with a total of 36 incidents. Mutual Aid Performances FY19 JAN-JUN FY20 JAN-JUN Mutual and Auto Aid Provided Agency Santa Clara County Fire 40 33 Mountain View Fire 12 15 Menlo Park Fire 6 4 San Mateo City 0 1 San Mateo County 0 2 Morgan Hill 0 1 Gilroy 0 1 San Jose 4 0 All Mutual and Auto Aid Provided 62 57 Mutual and Auto Aid Received Agency Mountain View Fire 28 36 Menlo Park Fire 19 16 Woodside Fire 0 10 Santa Clara County Fire 1 1 All Mutual and Auto Aid Received 48 63 PAFD FY20 Bi-Annual Performance Report 6 | Page Fire Prevention The Fire Prevention Bureau ensures compliance with the Fire Code for the safety of occupants and protection of property. Fire Inspectors perform fire sprinkler and fire alarm plan checks, permitting, and field inspections with the goal of ensuring all construction complies with local and national codes. This period saw a decrease in the number of permits and inspections as a result of the Coronavirus Pandemic. The Bureau expects for it to be challenging to complete inspections in the coming fiscal year as a result of the Coronavirus Pandemic and significant staff reductions. Prevention Bureau Performance Measures FY19 JAN-JUN FY20 JAN-JUN Permits Fire Permits Issued 266 160 Sprinkler Permits Issued 151 103 Solar Permits Issued 61 62 Electric Vehicle Permits Issued 0 0 Inspections Fire Inspections 5,842 3,758 Hazardous Material Inspections Completed 168 44 Number of Hazardous Material Inspections for the year 632 716 Percent of Hazardous Material Facilities Inspections Complete 27% 6% State Mandated Inspections Completed 99 41 Number of State Mandated Inspections for the year 574 535 Percent of State Mandated Facilities Inspections Complete 17% 7.7% Fire and Life Safety Plan Review Plans Reviewed 968 716 Percent of Reviews Completed On-Time 93% 97% PAFD FY20 Bi-Annual Performance Report 7 | Page Workforce Planning The Department operated daily emergency response operations with a total of 86.00 FTE line personnel for the second period of FY20. This includes three battalions of crews that staff six stations in the City and Stanford 24 hours each day. Over the last period, the department has operated with no vacancies for the first time in over ten years, with only 3.0 employees off-line creating a total of 3.00 FTE positions that required backfill. The Fire Department successfully graduated a new class of Entry Level Firefighters through a Joint Fire Academy in March and promoted Fire Captain Steven Lindsey to Battalion Chief during this second half of the fiscal year. The Department shifted from continuing succession planning efforts in order to focus on the response to the Coronavirus pandemic, the Officers Academy and Fire Captain’s Test were postponed. A significant focus for the training department was decontamination and proper preventative procedures responding to the Coronavirus pandemic. Vacancies and Off-Line Employees FY20 JAN-JUN Classification Budgeted FTE Vacancies Off-Line Employees (Workers Comp/Light Duty) Personnel On Line Percent of Personnel On Line Battalion Chief 4 0 0 4 100% Fire Captain 22 0 0 22 100% Fire Apparatus Operator & Fire Fighters 60 0 3 57 95% TOTAL 86 0 3 83 97% Succession Planning FY19 JAN-JUN FY20 JAN-JUN Personnel Number of Shift Staff Currently Eligible to Retire 25 23 Number of Shift Staff Eligible to Retire in Five Years 10 15 Percent of all Shift Staff Eligible to Retire within Five Years 49% 44% Number of Acting Battalion Chief Hours 24 0 Number of Acting Captain Hours 1,529 2,451 Number of Acting Apparatus Operator Hours 7,088 12,992 Training Hours of Training Completed 13,438 10,960 Average Hours Per Line Personnel 253 132 PAFD VITAL SIGNS REPORT SURVEYS RECEIVED 1-1-2020 THROUGH 6-30-2020 FILTERS: SURVEY: 1 P.O. Box 100, Andover MA 01810 (844) 340-6060 Feedback-Innovations.com 1.0 EXECUTIVE SUMMARY PAFD received a total of 173 responses for this period. The highest rated section was Communication, with a total score of 97.1. The lowest rated section was Billing, with a total score of 87.53. •The Communication section had a 1.6% increase in Ambulance staff's efforts to inform you about treatment Los esfuerzos del personal del ambulancia para informarle sobre el procedimiento. •The Billing section had a 0.8% decrease in Ability of billing personnel to meet your needs Capacidad del personal de facturación para satisfacer sus necesidades. This question and section may represent specific areas for improvement. •Percentile ranking this period is lower 28.26%. Cumulative Score: 94.6 The benchmark is the mean average of all responses for all services in the Feedback Innovations database. VITAL SIGNS PATIENT SATISFACTION REPORT 1 VITAL SIGNS PATIENT SATISFACTION REPORT 2 2.0 IMPROVEMENT PRIORITY RANKING Rank Question 1 Professionalism of person on the phone Profesionalidad de la persona al teléfono 2 Ability of person on phone to meet your needs Capacidad de la persona al teléfono para satisfacer sus necesidades 3 Speed in which person on the phone dispatched help Velocidad en que la persona al teléfono envió la ayuda 4 Information given prior to ambulance arrival Información ofrecida antes de la llegada de la ambulancia 5 Helpfulness of billing personnel Amabilidad del personal de facturación 6 Ability of billing personnel to meet your needs Capacidad del personal de facturación para satisfacer sus necesidades 7 Responsiveness of billing personnel to billing issues Capacidad de respuesta a los problemas de facturación 8 Cleanliness of ambulance Limpieza de la ambulancia 9 Wait time to get an ambulance Tiempo de espera para conseguir una ambulancia 10 Degree to which service was worth the fees Grado en que el servicio es digno de los honorarios 11 Likelihood of recommending ambulance service Probabilidad de recomendar el servicio 12 Ambulance staff's concern for your privacy La preocupación del personal del ambulancia en cuanto a su privacidad 13 Degree ambulance staff took your condition seriously Grado en que el personal del ambulancia se tomó en serio su condición 14 Ambulance staff's efforts to inform you about treatment Los esfuerzos del personal del ambulancia para informarle sobre el procedimiento 15 Degree to which the ambulance staff worked together to care for you Grado en que el personal del ambulancia trabajó en equipo para cuidar de usted 16 Comfort of ambulance ride Confort durante el viaje en ambulancia 17 Your confidence in skill of ambulance staff Su confianza en la experiencia del personal del ambulancia 18 Ambulance staff cared for you as a person Cuidados recibidos por personal del ambulancia 19 How well your pain was controlled ¿En qué grado se ha controlado su dolor? 20 Your comfort when moved by ambulance staff Su comodidad cuando fue trasladado por el personal del ambulancia The Improvement Priority Ranking uses a combination of score and correlation to overall satisfaction to determine the most important areas for improvement. The closer to 1 the more important it is to your patients that this aspect of your service be improved upon. VITAL SIGNS PATIENT SATISFACTION REPORT 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY 2.0 IMPROVEMENT PRIORITY RANKING TABLE OF CONTENTS 4.0 SECTIONS 4.1 Dispatch 4.2 Communication 4.3 Medical Care 4.4 Billing 4.5 Service Quality 4.6 Overall 1 3 4 5 5 6 7 8 9 10 3.0 DEMOGRAPHIC INFORMATION VITAL SIGNS PATIENT SATISFACTION REPORT 4 4.0 SECTIONS 4.1 Dispatch Percentile ranking this period is lower 40.0%. The Dispatch section showed a 0.65% increase overall from Previous Period to Current Period, with a total score of 96.45. Drilling down by question for the Dispatch section: •There was a 1.0% increase for Professionalism of person on the phone Profesionalidad de la persona al teléfono, with a score of 96.6. •There was a 0.8% increase for Ability of person on phone to meet your needs Capacidad de la persona al teléfono para satisfacer sus necesidades, with a score of 96.8. •There was a 0.8% increase for Speed in which person on the phone dispatched help Velocidad en que la persona al teléfono envió la ayuda, with a score of 97.2. •There was a 0.0% increase for Information given prior to ambulance arrival Información ofrecida antes de la llegada de la ambulancia, with a score of 95.2. VITAL SIGNS PATIENT SATISFACTION REPORT 5 4.2 Communication Percentile ranking this period is lower 46.67%. The Communication section showed a 1.05% increase overall from Previous Period to Current Period, with a total score of 97.1. Drilling down by question for the Communication section: •There was a 1.0% increase for Ambulance staff's concern for your privacy La preocupación del personal del ambulancia en cuanto a su privacidad, with a score of 96.6. •There was a 1.0% increase for Degree ambulance staff took your condition seriously Grado en que el personal del ambulancia se tomó en serio su condición , with a score of 98.0. •There was a 1.6% increase for Ambulance staff's efforts to inform you about treatment Los esfuerzos del personal del ambulancia para informarle sobre el procedimiento , with a score of 96.4. •There was a 0.6% increase for Degree to which the ambulance staff worked together to care for you Grado en que el personal del ambulancia trabajó en equipo para cuidar de usted, with a score of 97.4. VITAL SIGNS PATIENT SATISFACTION REPORT 6 4.3 Medical Care Percentile ranking this period is upper 44.44%. The Medical Care section showed a 1.36% increase overall from Previous Period to Current Period, with a total score of 96.12. Drilling down by question for the Medical Care section: •There was a 1.0% increase for Your confidence in skill of ambulance staff Su confianza en la experiencia del personal del ambulancia, with a score of 97.6. •There was a 0.6% increase for Ambulance staff cared for you as a person Cuidados recibidos por personal del ambulancia, with a score of 97.2. •There was a 2.0% increase for How well your pain was controlled ¿En qué grado se ha controlado su dolor?, with a score of 95.2. •There was a 2.4% increase for Your comfort when moved by ambulance staff Su comodidad cuando fue trasladado por el personal del ambulancia, with a score of 96.8. •There was a 0.8% increase for Comfort of ambulance ride Confort durante el viaje en ambulancia, with a score of 93.8. VITAL SIGNS PATIENT SATISFACTION REPORT 7 4.4 Billing Percentile ranking this period is lower 16.28%. The Billing section showed a 1.2% decrease overall from Previous Period to Current Period, with a total score of 87.53. Drilling down by question for the Billing section: •There was a 1.0% decrease for Helpfulness of billing personnel Amabilidad del personal de facturación, with a score of 87.6. •There was a 0.8% decrease for Ability of billing personnel to meet your needs Capacidad del personal de facturación para satisfacer sus necesidades, with a score of 87.4. •There was a 1.8% decrease for Responsiveness of billing personnel to billing issues Capacidad de respuesta a los problemas de facturación, with a score of 87.6. VITAL SIGNS PATIENT SATISFACTION REPORT 8 4.5 Service Quality Percentile ranking this period is lower 28.89%. The Service Quality section showed a 1.15% increase overall from Previous Period to Current Period, with a total score of 94.8. Drilling down by question for the Service Quality section: •There was a 0.4% increase for Cleanliness of ambulance Limpieza de la ambulancia, with a score of 96.8. •There was a 1.0% increase for Wait time to get an ambulance Tiempo de espera para conseguir una ambulancia, with a score of 97.0. •There was a 2.6% increase for Degree to which service was worth the fees Grado en que el servicio es digno de los honorarios, with a score of 91.4. •There was a 0.6% increase for Likelihood of recommending ambulance service Probabilidad de recomendar el servicio , with a score of 94.0. VITAL SIGNS PATIENT SATISFACTION REPORT 9 4.6 Overall Percentile ranking this period is lower 31.52%. The Overall section showed a 0.0% increase overall from Previous Period to Current Period, with a total score of 95.6. Drilling down by question for the Overall section: •There was a 0.0% increase for Overall rating of experience Valoración general de la experiencia, with a score of 95.6. VITAL SIGNS PATIENT SATISFACTION REPORT 10