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Monday, December 7, 2020
Special Meeting
5:00 PM
Agenda posted according to PAMC Section 2.04.070. Supporting materials are available on
the City’s Website on the Thursday 11 days preceding the meeting.
***BY VIRTUAL TELECONFERENCE ONLY***
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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
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https://midpenmedia.org. Members of the public who wish to participate by
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ensure participation in a particular item, we suggest calling in or connecting
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TIME ESTIMATES
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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 5:00-7:00 PM
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.
1.CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his Designees
Pursuant to Merit System Rules and Regulations (Ed Shikada, Rumi
Portillo, Molly Stump, Monique LeConge Ziesenhenne, Nick Raisch,
Kiely Nose, Dean Batchelor)
Employee Organizations: Utilities Management and Professional
Association of Palo Alto (UMPAPA)
Authority: Government Code Section 54957.6(a)
REVISED
2 December 7, 2020
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2.CONFERENCE WITH CITY ATTORNEY- EXISTING LITIGATION
Subject: ABG-PACT Owner v. City of Palo Alto et al., Santa Clara
County Superior Court, Case No. 19cv352355, and
Local Administrative Appeal on Citation Nos. BA021320, BA022020,
BA022720, BA030520, and BA031220
College Terrace Centre Grocery – Code Enforcement Matters
Authority: Government Code Section 54956.9 (d)(1)
Study Session 7:00-8:00 PM
3.Study Session on Community and Economic Recovery Strategies and
Engagement (Continued From November 30, 2020)
Agenda Changes, Additions and Deletions
Oral Communications 8:00-8:15 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 8:15-8:20 PM
4.Approval of Action Minutes for the November 16, 2020 City Council
Meeting
Consent Calendar 8:20-8:25 PM
Items will be voted on in one motion unless removed from the calendar by three Council Members.
5.Approval of a Contract With Canopy for $225,510 for a One-year Term
to Support Palo Alto's Urban Forestry Programs; Assist With
Implementation of Programs Within the Urban Forest Master Plan;
Help Improve the Tree Canopy in South Palo Alto; and Educate the
Public About Trees
6.Approval of Amendment Number 1 to Contract Number C19171565
With Brown and Caldwell for Professional Design Services for the
Secondary Treatment Process Upgrade Capital Improvement Project
(WQ-19001) at the Regional Water Quality Control Plant; to add
Services and Increase Compensation by $1,500,745 for a new
Maximum Compensation Not-to-Exceed $4,424,101; and to Extend the
Contract Term Through September 30, 2025
7.Staff and the Utilities Advisory Commission (UAC) Recommend the
Council Adopt a Resolution Amending the City’s Carbon Neutral Gas
Plan to Continue to Achieve Carbon Neutrality for the City's Natural
Gas Supply Portfolio
Q&A
Q&A
3 December 7, 2020
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8.Approval of Contract Number C21175922A With Anderson Pacific
Engineering Construction, Inc. in the Amount of $5,545,000 for Corte
Madera Reservoir Replacement Project (WS-09000); and Authorization
for the City Manager to Negotiate and Execute Related Change Orders
Not-to-Exceed $554,500 for a Total Not-to-Exceed Amount of
$6,099,500
9.Adoption of a Resolution Approving the Updated Renewable Portfolio
Standard Procurement Plan and Enforcement Program
10.Approval of Three Five-year Contracts for the Palo Alto Airport With:
1) Burns & McDonnell in the Amount of $1,000,000 to Provide
Design/Engineering and Grant Administration Services, 2) C&S
Engineers, Inc. in the Amount of $1,500,000 to Provide Planning and
Construction Management Services, and 3) Centurion Planning in the
Amount of $1,000,000 to Provide Environmental Services; and
Approval of a Fiscal Year 2021 Budget Amendment in the Airport
Enterprise Fund
11.PUBLIC HEARING: Adoption of an Ordinance Amending Section
18.52.070 (Parking Regulations for CD Assessment District) to
Temporarily Extend Ineligibility of Certain Uses to Participate in the
University Avenue In-lieu Parking Program for 18 Months
12.SECOND READING: Adoption of an Ordinance Amending Palo Alto
Municipal Code (PAMC) Title 18, Chapters 18.04, 18.16, 18.40, and
18.52 to: 1) Expand the Housing Incentive Program to San Antonio
Road; and 2) Amend Definition of Gross Floor Area and Amend Retail
Preservation for Housing (FIRST READING: November 16, 2020
PASSED: 4-3 DuBois, Filseth, Kou no)
City Manager Comments 8:25-8:35 PM
Action Items 8:35-9:15 PM
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,
Unfinished Business and Council Matters.
13.Approval of a Three-year Contract With Downtown Streets, Inc. for a
Total Amount Not-to-Exceed $323,244 for Maintenance Services for
the City's Five Downtown Parking Garages, Downtown Sidewalks and
Alleys; and Provide Outreach Case Management Services to the
Downtown Core With the Intent of Linking Homeless Individuals to
Community and Housing Services (Continued From November 30,
2020)
Q&A
Q&A
Public
Comment
4 December 7, 2020
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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.
Discussion and Possible Direction to Staff Regarding City Participation in
Enforcement of State and County Health Orders and Seasonal Events14.
9:15-10:00 PM
Presentation
5 December 7, 2020
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Additional Information
Informational Report
Annual Review of the City’s Renewable Procurement Plan, Renewable
Portfolio Standard Compliance, and Carbon Neutral Electric Supplies for 2019
Consolidated Annual Performance and Evaluation Report (CAPER) for the
Community Development Block Grant (CDBG) Program for Fiscal Year 2019-
20
Standing Committee Meetings
Policy and Services Committee Meeting December 8, 2020
Schedule of Meetings
Schedule of Meetings
Public Letters to Council
Set 1
6 December 7, 2020
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City of Palo Alto (ID # 11790)
City Council Staff Report
Report Type: Study Session Meeting Date: 11/30/2020
City of Palo Alto Page 1
Summary Title: Study Session on Community and Economic Recovery
Strategies
Title: Study Session on Community and Economic Recovery Strategies and
Engagement
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that the City Council receive presentations from invited panelists covering
regional economic trends, retail activity and sales tax trends, and work from home economics;
discuss the City of Palo Alto’s Community and Economic Recovery efforts, preliminary
framework for the City’s Community and Economic Recovery Strategy and priority City
activities, and options for community engagement.
Executive Summary
The COVID-19 pandemic, the efforts to contain its spread, and attempts at mitigating its impact
continue to have a significant impact on our lives at every level. Many aspects of the
community’s response to the COVID-19 pandemic, such as County-Level guidance on which
activities are allowable through the State’s tiered system, are beyond the City’s control. The
economic impact of the pandemic has similarly impacted the City’s ability to maintain basic
services. However, as the City shifts from managing through the pandemic, to reimagining and
rebuilding our community response and ultimately to recovery, it will be important to take
advantage of opportunities as they arise while remaining flexible as the State and County
restrictions continue to evolve from more restrictive to less restrictive levels.
The purpose of the study session is to continue the City Council’s discussion on community and
economic recovery as a step in what is proposed to be an iterative process. This item
specifically works to assist the Council in reviewing major economic forces and trends and begin
to obtain feedback on next steps. Strategies for the City Council’s consideration include
beginning discussions on potential next steps to develop a Community and Economic Recovery
Strategy as well as prioritization of potential projects either currently underway or initiated to
support this effort. City Council input will guide staff work ahead as these efforts are further
developed.
City of Palo Alto Page 2
To support the Council’s discussion, staff has engaged a panel of economists including Jerry
Nickelsburg from UCLA Anderson Forecast, Thomas Adams and Fran Mancia from
AvenuInsights (the City’s sales tax consultant), and Professor Nicholas Bloom from Stanford
University. Each panelist will discuss different elements of the COVID-19 Pandemic and the
recessionary economy that has followed. The panelists and their work may help inform and
provide context as the Council considers preliminary focus areas to guide next steps.
The report reviews four main preliminary focus areas that could form elements of the City’s
Community and Economic Recovery strategy. These focus areas that staff is seeking City Council
input include: managing through the pandemic, community welfare and wellbeing, focused
business support, and City priority initiatives. Each of these focus areas would consist of a set of
projects or programs that would be prioritized and managed as elements of the City’s recovery
strategy. In addition, the report outlines possible options for the Council to consider with
regards to community and stakeholder engagement, and related work including timeframes to
work within.
Recognizing the broad range of issues involved, it is possible that the Council may wish to divide
this discussion over multiple meetings. This could focus the November 30 discussion on the
panel of experts discussed below, and continue discussion of potential Community and
Economic Recovery focus areas and engagement concepts to December 7. As this begins with a
study session and iterative, Council may also choose to provide initial input and continue
further discussion into the new year.
In order for the City Council to have information regarding the specific trends the City is facing
in its three largest revenues, Property Tax, Sales Tax, and Transient Occupancy Tax, additional
information is provided in Attachment A. As a result of the economic characteristics of revenue
generation in Palo Alto, the City has been more significantly impacted than neighboring
jurisdictions and California as a whole. California, in turn, continues to lag economically
compared to the nation.
• Property Taxes revenues have historically seen annual growth of on average 6 percent. Although
not on the decline, trends currently indicate a delay in timing and therefore are expected to
remain flat through FY 2022 as that year will be a reflection of activity in 2020, where the
average and median home prices currently reflect a slight downward trend and the expected CPI
will remain below the two percent maximum.
• Sales Tax receipts have seen significant declines as the City’s revenue base is dependent on
many high-end goods and dining options at regional destinations such as Stanford Shopping
Center. The City saw greater decline in four categories than declines seen in the region and
statewide. These significant declines were partially offset by business to business sales, the one
sector that outpaced other areas with a small 1 percent growth.
• Transient Occupancy Tax (TOT) continues to be the most significantly impacted, though
revenues have improved slightly from the activity seen in April and May 2020. Currently
receipts are tracking approximately 80 percent below pre-COVID-19 levels. As a region where
business and other non-leisure travel is a driving impact, it is expected that until the virus is
City of Palo Alto Page 3
under control and both domestic and international travel resumes, the City will continue to
experience significantly reduced TOT. There is reason for optimism here with the continued
rapid progression in vaccines as well as the expected opening of new hotels in Palo alto in the
coming months.
As the Council considers the elements of this report, the following specific discussion topics
would assist staff with ongoing work and guidance on next steps:
• Observations based on the issues and trends identified by the panel discussion, and conclusions
regarding Palo Alto’s opportunities for action;
• Preliminary Community and Economic Recovery Strategy focus areas and priority projects;
• Potential Council engagement structure and community and stakeholder engagement options;
and,
• The timeframe to finalize Community and Economic Recovery strategy projects and focus areas
and undertaking the effort involved.
Background
The City’s FY 2021 Adopted Budget reflected a reduction in General Fund revenues of $34.6
million, and directly relate to the nearly $40 million estimated reduction in revenues
anticipated due to financial impacts of the COVID-19 pandemic and economic challenges. The
Adopted Budget projected a nearly 40-50 percent reduction in major revenue categories such
as Transient Occupancy Taxes and Sales Taxes, bringing the FY 2021 General Fund revenues to
$197 million, from the $232 million projected in the FY 2020 Adopted Budget. In order to
account for this, the City Council spent much of May 2020 and June 2020 working to rebalance
the FY 2021 budget, reducing services and cutting costs. This resulted in a balanced budget with
expenses of $197 million, down from $230.8 million in the prior adopted budget, a nearly 15
percent reduction. This reduction was made possible by a significant reduction in funding for
capital investment while freezing 76.5 full-time equivalent (FTE) staffing resources across the
City (65 FTE in the General Fund) dropping authorized staffing levels from 1,035 to 958 FTE. In
addition, 26.2 FTE in part-time/hourly positions were also frozen, approximately 25 percent of a
total of 106.3 FTE. This resulted in reduced service capacities in all areas, ranging from police,
fire, and code enforcement to community services and libraries, public works, transportation,
and utilities, as well as the administrative services needed to support these functions.
On October 19, 2020, the City Council reviewed and discussed the preliminary Q1 FY 2021
financial status report. This update provided a snapshot in time, with some revenues expected
to continue to do significantly worse than originally projected, while others were trending
above expected levels. With the information available at the time and uncertainty to continue
as a result of the pandemic, no action was taken as staff continued monitoring the months of
experiences in this new shelter in place environment. At the time, staff shared a series of
upcoming Council actions on the budget, long range financial forecast and further development
of a community and economic recovery planned over upcoming months.
City of Palo Alto Page 4
Subsequently, on November 9, 2020 (staff report #11702), the City Council reviewed
community and economic recovery strategies, such as ‘Uplift Local,’ and other business support
activities and testing. Council also discussed options designed to help bolster the local
economy, such as expanding the definition of retail, temporarily altering parking requirements,
and continuing closures of portions of California and University Avenues to vehicles.
Since that time, and in response to the significant impact this pandemic has placed on all
communities, including Palo Alto, staff began discussion of a more comprehensive Community
and Economic Recovery framework. The November 30 study session is a continuation of the
City Council’s discussions on community and economic recovery, with a look at major economic
forces and trends.
Discussion
Recognizing that services continue to be modified to assist in mitigating the spread of the virus,
the reduced revenues, if prolonged, will continue to impede service levels. Without a recovery
of the City’s revenue base, it will be unable to provide the same level of services to the
community. In order to assist in revenue generation, a vibrant and active business climate with
residents and visitors alike frequenting the restaurants, shops, and activities that assist in those
activities is needed. As outlined in October, staff would return to the City Council to begin
engagement and feedback on further development of the strategy of themes and focus of staff
work ahead. Staff indicated that work on Community and Economic Recovery would include
three main elements:
a. Assemble and facilitate discussion of major economic forces and trends
b. Develop analytical tools to evaluate fiscal scenarios
c. Identify potential City actions to support and accelerate (where possible) local community and
economic recovery
This study session will address the first element and discuss major economic forces and trends
and begin to address the second and third elements. As a component of the City Council’s
ongoing work related to Community and Economic Recovery in the wake of the COVID-19
pandemic, the City has empaneled experts in various areas of specialization. They will discuss
emerging trends that can lead to potential strategies for the current environment and the
future as we anticipate what lasting effects will continue once the virus is under control. This
panel will make brief presentations on different topics and will then be available for questions
and answers with the City Council for the remainder of the scheduled study session.
In addition, this report begins to lay out strategies for the City Council’s consideration. Most
significantly, this report outlines possible next steps of developing a Community and Economic
Recovery Strategy and engagement as well as potential prioritization of projects either
currently underway or that could be initiated to support this effort. Recognizing the broad
range of issues involved, it is possible that the Council may wish to divide this discussion over
multiple meetings. This could focus the November 30 discussion on the panel of experts
discussed below and continue discussion of potential Community and Economic Recovery focus
areas and engagement concepts to December 7. As this begins with a study session and
City of Palo Alto Page 5
iterative, Council may also choose to provide initial input and continue further discussion into
the new year.
This report includes information to assist in all these discussions and is organized as follows:
1) Listing of panelists and their respective topic areas later in this report.
2) A framework for Council and community feedback, building on recovery plans developed by
others to inform the City of Palo Alto’s efforts. This includes both recovery strategy framework
as well as engagement.
3) Attachment A: In order to continue to assist in the second element of analysis, staff has
included supplementary information related to the City’s major tax revenues in three categories
(Sales Tax, Property Tax, and Transient Occupancy Tax).
4) Attachment B: Examples of Other Recovery Plans: San Francisco, San Jose, and Stanford
Invited Panelists for November 30 Study Session
Jerry Nickelsburg from UCLA Anderson Forecast, Thomas Adams and Fran Mancia from
AvenuInsights (the City’s sales tax consultant), and Professor Nicholas Bloom from Stanford
University will each be available to discuss different elements of the COVID-19 Pandemic and
the recessionary economy that has followed.
Jerry Nickelsburg has worked for UCLA Anderson School of Management and the UCLA
Anderson Forecast since 2006 and has served as the faculty director of the Forecast since 2017.
He earned his Ph.D. in economics from the University of Minnesota, specializing in monetary
economics and econometrics. Nickelsburg plays a key role in the economic modeling and
forecasting of the national, California and regional economic forecasts. He researches labor
economics, industrial organization, statistics and international monetary economics, focusing
on the development of new data and the application of economic theory and statistical
methods to sector-specific policy issues. His current research encompasses transportation and
environmental economics, and the relationships between highly skilled persons and their
demand for social insurance. A more detailed biography can be found here.
Representatives from AvenuInsights, the City’s Sales Tax consultant, will be available to discuss
current trends in Sales Tax Collection. Thomas Adams, Client Success Manager, and Fran
Mancia, Vice-President of Government Relations will be available for questions from the City
Council following their presentation of not only trends in Palo Alto but also neighboring and
comparable jurisdictions as well as the state. The third quarter of 2020 (July through
September) Sales Tax data is not yet available, staff and the consultants will be using data
through June 2020 and certain trends that are emerging. As Q3 data becomes available, it will
be reported to City Council, consistent with the City’s standard practice. Additional information
about the City’s Sales Tax collection trends is included later in this report.
Professor Nicholas (Nick) Bloom is the William Eberle Professor of Economics at Stanford
University, a Senior Fellow of SIEPR, and the Co-Director of the Productivity, Innovation and
Entrepreneurship program at the National Bureau of Economic Research. His research focuses
on management practices and uncertainty. He previously worked at the UK Treasury and
City of Palo Alto Page 6
McKinsey & Company. He is a Fellow of the American Academy of Arts and Sciences, and the
recipient of the Alfred Sloan Fellowship, the Bernacer Prize, the European Investment Bank
Prize, the Frisch Medal, the Kauffman Medal and a National Science Foundation Career Award.
He has a BA from Cambridge, an MPhil from Oxford, and a PhD from University College London.
His research on Working from Home (WFH)1 during and following the pandemic is highly
relevant to Palo Alto.
Staff anticipates that the study session discussion on November 30 will inform future discussion
and deliverables from the City and shape the economic and community recovery work that will
take place throughout 2021. This is the next step in a significant effort.
Preliminary Community and Economic Recovery Focus Areas
The City of Palo Alto is not alone in taking a careful look at what recovery can mean.
Attachment A shares summaries of other Bay Area institutions that are responding with
strategies to recover from the COVID-19 pandemic. In Palo Alto, staff continues to manage
through the pandemic, including evolving with the rolling back to more restrictive State and
County protocols. However, the City is now reaching the stage where it may be possible to
assess how to rebuild for better outcomes and be prepared to adapt as economic trends
improve, while we continue to manage through the uncertainty of today.
The City remains nimble in the current environment where change and uncertainty continues
to dominate. Continued focus will be needed to maintain services modified due to the shelter
in place orders and restrictions in place, while continuing to innovate with the reduced
resources available in the short term and quickly adapt as economic conditions change. The City
will necessarily rely on revenue generation to meet service expectations as we move out of this
recessionary period.
In order to provide a clear yet comprehensive description of the major activities required to
support community and economic recovery, staff has attempted to identify a set of “focus
areas.” This is an important step for two reasons. First, establishing focus areas enables
communication and building consensus around where the City’s priorities and activities should
be placed. Second, establishing focus areas is also critical to enabling the City to set goals,
make progress and demonstrate achievement with limited resources and with established
timeframes.
Staff has developed an initial set of priority areas for the purpose of discussion. These priority
areas reflect the work done by other Bay Area institutions, while recognizing the unique
characteristics and need in Palo Alto as well as the City’s ability to have positive impacts in the
midst of the global forces at hand. Based on these considerations, the following four focus
areas and potential elements have been identified:
1 https://siepr.stanford.edu/research/publications/how-working-home-works-out
City of Palo Alto Page 7
PRELIMINARY
PRELIMINARY
Manage through the Pandemic
First and foremost, the City, its community, and the world must continue to focus on managing
through this pandemic, working to slow the spread of the virus and ensure safety of all.
Without management of the virus, no recovery will be possible, and part of the framework is to
continue to focus on this critical work. Activities to support this management could include
existing and new activities, such as but not limited to:
• Continuing high-volume public communications on the COVID-19 pandemic and related
community support and public safety response
• Facilitating COVID-19 virus testing and contact tracing; support vaccine distribution efforts
• Providing technical support for workplace environment upgrades (such as air quality
management and safety protocols to minimize COVID-19 risks)
• Supporting the repurpose of existing spaces, such as parking spaces, garages and public spaces,
for community and commercial activities
These support activities will ensure that businesses and community members alike reduce
COVID-19 transmission and feel confident as they resume or expand, and participate in,
commercial activities. As the situation continues to evolve, especially with respect to
vaccinations and potential therapeutics, the City will do what it can to promote access to and
information about them.
Community Welfare and Wellbeing
The community welfare and wellbeing focus area will continue to support and enhance services
to the Palo Alto residents and frontline workers. Activities to support this focus area could
include existing and new activities such as but not limited to:
• Support and promote childcare programs
• Provide school-aged youth programs
• Promote adult and senior wellness programs
• Promote expansion of bicycling and pedestrian citywide and beyond especially focusing on
connections to neighboring communities
City of Palo Alto Page 8
PRELIMINARY
Focused Business Support
The focused business support focus area will continue and promote activities that assist in
generation of revenues that support the delivery of services to the community. There are both
near and long-term potential ideas here as the City work to both assist businesses in managing
through the pandemic while also keeping an eye towards support once the virus is under
greater control. Inevitably there is much reliance on Federal, state, and regional stimulus
efforts. Depending on the continuation of these such as rent abatement, business loans/grants,
and the like, the nature and composition of our business community will continue to change as
the length and severity of the constrained shelter in place orders extends. Activities to support
current business activities and future needs could include existing and new activities such as
but not limited to:
• Continue and promote Uplift Local initiative and other retail supportive strategies
• Pursue California Avenue Garage parking program adjustments such as parking in-lieu
• support the City sustainability goals such as expansion of electric vehicle (EV) infrastructure.
Different business sectors may benefit from tailored approaches so that their needs are better
met as business activities recover through the near-term.
City Priority Initiatives
The City Priority Initiatives focus area will build upon the current major initiatives and priorities
as identified by the City Council and continue to position the City proactively to support the
community as vaccines and treatments advance and containment of the virus begins to take
shape. Activities to focus staff efforts include supporting the City Council priorities (housing,
mobility, sustainability) and the reopening of services in the future include existing and new
activities such as but not limited to:
• Expand community engagement on fiber to the home (FTTH) and related sustainability/climate
action plan implementation
• Support experiences at the Downtown and California Avenue car free streets including work on
a redesign of the University Avenue experience
• Completion of Caltrain grade separation community planning and work of the Expanded
Community Advisory Panel (XCAP), moving into detailed design to maintain regional funding
• Housing workplan as outlined in the City Council 2020 priorities
• Development of remote work models for delivery of City services where appropriate
Creative thinking about these and other initiatives, as well as needed policy changes and
adaptations to work considering COVID outcomes, will be highlighted to create broader
opportunities.
City of Palo Alto Page 9
Preliminary Next Steps, City Council Engagement Structure and Community and Stakeholder
Engagement Options
A critical next step of defining and developing a Community and Economic Recovery Strategy is
to obtain the City Council’s feedback on these concepts and work to define a Council
engagement structure and further develop engagement strategies for the community and
stakeholders. The City of Palo Alto has conducted outreach to the local business community,
facilitating frequent check-ins with merchants located in the commercial cores and
incorporating that feedback into ongoing practices. The City has also engaged the community in
several ongoing ways including specific Council discussions on recovery efforts for public
comment, monthly check-in meetings open to all, and online surveys through the pandemic.
The City has several options for continuing, or bolstering, stakeholder engagement through the
next phases of recovery. These options are discussed briefly below and listed with the more
resource intensive and focus first. Regardless of which methods are pursued, the City will strive
to ensure that the engagement is clearly explained and that participants understand how their
participation can help shape the City’s actions. Additionally, some of the options could be
combined to further enhance engagement.
Possible Council Engagement Structures:
Blue Ribbon Committee – A Community and Economic Recovery Blue Ribbon Committee would
likely be the most time-intensive engagement on an ongoing basis of any of the options
discussed here. The range and potential impact of issues involved, however, may well justify
this level of effort particularly should extensive stakeholder engagement be involved. The City
Council has appointed blue ribbon committee for engagements of similar complexity, including
the relatively recent Infrastructure Blue Ribbon Committee (IBRC). If the City Council chose to
pursue this option, Staff would work with the City Council on the composition of the committee
and the expected deliverables and timeframe for their work.
Committee of a Whole – The Council may consider having all of the elements of a Community
and Economic Recovery Strategy return to the City Council. A similar approach to how the
Council developed and approved the FY 2020-2021 Adopted Budget and previously rail grade
separations, all related items of the potential strategy could return to the Council at regular
meetings or special meetings.
Ad Hoc Committee of the Council – The City Council has had numerous ad hoc committees
throughout 2020, including business support as well as four ad hocs focused on Race and Equity
work. The City Council could choose to appoint another ad hoc committee to work with staff
and guide the ongoing work related to Community and Economic Recovery and report back to
the City Council on a regular basis. Should a Blue Ribbon Committee be pursued, the Council
may wish to designate an ad hoc committee to work with that group.
Other Approaches: The Council could decide to refer some aspects of the strategy development
to Council Committee or to a Boards, Commission and Committee for further discussion and
community input.
City of Palo Alto Page 10
Community Engagement Options:
Specific Stakeholder Roundtable Discussions- Staff could develop a series of roundtable
discussions with sector specific stakeholders. This type of engagement could be like how staff
began the City’s engagement with local businesses in May of 2020, where two Council liaisons
participated on behalf of the Council and could be expanded to other sectors.
Virtual Neighborhood Meetings – The City could convene a series of virtual neighborhood
meetings to engage residents on Community and Economic recovery. These could either be set
up specifically for this purpose or could try to tap into existing meetings that may be taking
place. Neighborhood meetings could be an opportunity for the City to discuss potential plans
for recovery and seek feedback in real-time from various neighborhoods. These meetings could
take place before City Council takes action on Community and Economic Recovery to inform
potential options or could take place after action on Community and Economic Recovery to
iterate on the implementation of City Council direction.
Online Townhall Meeting – Similar to the idea of a virtual neighborhood meeting, another
option could be the convening of an online townhall meeting that would be a much larger
audience in a single event. This would likely be a purpose-specific event meant to discuss
Community and Economic Recovery and would need to be structured to align with the size of
the anticipated audience. Similar to the neighborhood meetings, it could be positioned to
either further inform potential Council action, or to iterate on the implementation of policy
direction from the City Council.
Staff is seeking City Council feedback on these potential initiatives and priorities and
stakeholder engagement structures so that we can incorporate the City Council’s feedback and
further develop the engagement plan and timeline. As Council engages and considers this
topic, feedback on the cadence and forum for these conversations to continue will be
important. A number of fiscal reports are scheduled for the City Council’s review, in early 2021,
that will assist in continuing the conversation on recovery, fiscal sustainability and long-range
planning. As noted on October 19, 2020, the following items will be returning to the City
Council over the next several months:
Dec 2020/Jan 2021:
• FY 2020 Comprehensive Annual Financial Report & Year-End Budget Adjustments
• FY 2021 1st Quarter Financial Report
• FY 2022-2031 Long Range Financial Report
• Status check-in FY 2021 Adopted Budget City Council Referrals
February 2021:
• FY 2021 Mid-Year Budget Review and Preliminary 2nd Quarter Financial Status
City of Palo Alto Page 11
Resource Impact
These efforts will require the allocation of resources to accomplish, however, many are
currently underway and it is expected that through a reprioritization of current projects and
work, staff will approach this through reallocated staff resources. In certain areas consultant
services may be necessary to bolster expertise and support these programs.
Environmental Review
This is not a project under Section 21065 for purposes of the California Environmental Quality
Act (CEQA).
Attachments:
• Attachment A: Additional Information Related to Sales Tax, Property Tax, and Transient
Occupancy Tax in the City of Palo Atlo
• Attachment B: Examples of Other Recovery Plans
ATTACHMENT A
Additional Information Related to Sales Tax, Property Tax, and Transient Occupancy Tax in
the City of Palo Alto
Attachment A - 1
Additional information related to the City’s Sales Tax, Property Tax, and Transient Occupancy Tax is
included below for reference.
Sales Tax:
The effective sales tax rate in Palo Alto is 9.0%. Of this, the City of Palo Alto
gets 1%, County programs get 1.75%, and the State and other programs
get the remaining 6.25%. This means that if you were to buy something
for $100 in Palo Alto, and then the 9% Sales Tax rate were applied, the City
of Palo would receive only $1 of the $9 in taxes collected.
The City of Palo Alto is somewhat unique in its Sales Tax mix. The main five
business activity categories in Palo Alto are General Retail, Food Products, Transportation, Construction,
and Business to Business. However, that General Retail category is heavily driven by what could be
considered “luxury” stores, such as Hermes, Louis Vuitton, Shreve & Co., Tiffany & Company, and other
upscale stores such as Apple, Nordstrom, and Nieman Marcus. Many of these institutions can be found at
the Stanford shopping mall. Food Products includes restaurants, which previously contributed at a fairly
robust amount to the City’s sales tax revenues. Ironically, in most recessions retail and restaurants are the
categories most resilient to downturns. Their vulnerability in the current economic climate reflects the
constraints of regulations and consumer behavior as we strive to contain the spread of the virus.
Below is a table that shows for the City of Palo Alto the allocation of sales tax collection by business
activity, one for second quarter 2019 (Q2 2019) activities (April – June 2019) and one for second quarter
2020 (Q2 2020) activities (April – June 2020) as well as annual (reflects a benchmark year). Palo Alto’s
declines in four of the categories from Q2 2019 to Q2 2020 and the declines seen have generally been
greater than both the greater bay area and statewide across California. Business to Business was the
exception and very slightly increased from Q2 2019 to Q2 2020. Percentage changes from Q2 2019 to Q2
2020 for General Retail, Food Products, Transportation, Business to Business and Construction, as well as
declines from the County Pool, are seen in Table 1 below for Palo Alto, the San Francisco Bay Area, and
the state of California.
Table 1. Percentage Changes by Category from 2019Q2 to 2020Q2 and Annual
Palo
Alto
County of Santa Clara
State of
California
ATTACHMENT A
Additional Information Related to Sales Tax, Property Tax, and Transient Occupancy Tax in
the City of Palo Alto
Attachment A - 2
Another relatively unique aspect of the City of Palo Alto’s sales tax is that the majority of the City’s sales
tax (~59%) comes from just the top 25 Sales Tax Producers, and ~75% comes from the top 100 Sales Tax
Producers. The top 25 Sales Tax Producers range across a variety of categories, and are listed below in
alphabetical order:
• Anderson Honda
• Apple Stores
• Audi Palo Alto
• Bon Appetit Management Company
• Hermes
• Houzz Shop
• HP Enterprise Services
• Integrated Archive Systems
• Louis Vuitton
• Lucile Packard Children’s Hospital
• Macy’s Department Store
• Magnussen’s Toyota of Palo Alto
• Neiman Marcus Department Store
• Nordstrom Department Store
• Richemont
• Shell Service Stations
• Shreve & Co.
• Space Systems Loral
• Stanford Outpatient Clinic Pharmacy
• Tesla
• Tesla Lease Trust
• Tiffany & Company
• Urban Outfitters
• Varian Medical Systems
• Volvo Cars Palo Alto
As seen in the list above, General Retail makes up about half of the top 25 with twelve (12), while
Transportation has six (6), Business to Business has five (5), and Food Products has one (1), while Health
and Government also has one (1).
Most receipts from use tax and some transactions where the “place of sale” are difficult to track are placed
in a county or state allocation pool and distributed back to local jurisdictions on a pro rata basis. Under
the pool concept, the tax is first coded to the county of use and then distributed to each jurisdiction in
that county on a pro rata share of taxable sales each quarter. For example, an agency generating 15% of
the county’s total taxable sales receives 15% of the pool. The County pool has increasingly been an area
of significance as brick and mortar sales / growth continue to be outpaced by online transactions which
are generally allocated to the state or county pool. In Palo Alto, the County pool constitutes just shy of
20 percent of sales tax revenues collected. Below is a table articulating what percentage of the County
pool Palo Alto receives based on the pro rata share articulated above. Notably in the second quarter and
third quarter of 2020, Palo Alto’s share of the County pool has declined from historically 6 percent – 7
percent down to approximately 5 percent. Therefore, any shift to increased online or pooled activities has
been partially or could be fully offset by a reduction in Palo Alto’s share.
ATTACHMENT A
Additional Information Related to Sales Tax, Property Tax, and Transient Occupancy Tax in
the City of Palo Alto
Attachment A - 3
Finally, it should be worth noting that the second quarter of 2020 likely represents the trough of the
pandemic recession and it is hoped that it is not representative of a new paradigm. The City has on
November 20, 2020 received the cash receipts for the third quarter of 2020 (Q3 2020) which reflect
receipts of $6.5 million, a 24 percent reduction, quarter over quarter from Q3 2019. This reflect some
positive activity compare to Q2 2020 which reflected a nearly 38 percent decline. However, as recently
as Monday, November 16th, Santa Clara County rolled back into the more restrictive purple tier. Efforts to
contain COVID-19 are paramount to public health, and will have corresponding impacts on revenue
streams likes sales tax as certain economic activities remain limited and constrained by regulations.
Although data from the third quarter of 2020 is not yet available as of the issuance of this report, staff
does anticipate that AvenuInsights may be able to discuss it on a very preliminary basis on November 30.
Property Tax:
Property Taxes are the largest revenue generator for the City of Palo Alto with estimated receipts of $52.0
million in FY 2021 Adopted Budget. All taxable real and personal property is subject to a basic rate of one
ATTACHMENT A
Additional Information Related to Sales Tax, Property Tax, and Transient Occupancy Tax in
the City of Palo Alto
Attachment A - 4
(1) percent of assessed value collected by local
jurisdictions and school districts for general
purposes. The largest portion of this is generated
by secured taxes and the remainder by
unsecured and airplane taxes. Property tax
assessments typically lag from economic impacts
due to the assessment cycle and taxable year. For
example, FY 2021 revenues are reflective of
activities in calendar year 2019 and FY 2022
revenues will be reflective of activities in this
calendar year 2020. This is why the FY 2021
Adopted Budget assumes growth of 6.9 percent.
Of the one percent property tax that is assessed
on the property owner, the City of Palo alto only
received 9.4 percent, or 9.4 cents for every dollar a property owner pays to the County. The majority of
the tax dollar, or 56.6 percent goes to the school district, community colleges, and county school services.
These allocations do vary by City, for example within Santa Clara County Cities, the City of Milpitas receives
16.23 percent or 16.23 cents on each dollar, the City of Mountain View receives 15.76 percent, and San
Jose receives 13.25 percent. Some jurisdictions to received less than Palo Alto such as Saratoga receives
6.08 percent, and Cupertino receives 6.6 percent.
There were two main propositions related to property tax on the November 2020 ballot in California. Prop
15, also called ‘Split-Roll’, which would have changed how Commercial property taxes are assessed was
narrowly defeated. Proposition 19 narrowly passed, with 51.1% replaces five exemptions related to
property transfers and reassessments with new rules that allow a transfer of a tax base from an old home
to a new home, and, if the owner buys a more a expensive home, the difference in market value between
the old and new home would be added to the tax base as well. There has been considerable difficulty
forecasting the financial impacts from the passage of Proposition 19, and it will be important to monitor
both the quantity and value of transactions in the wake of its passage.
Palo Alto
Unified,
45.03%
Santa Clara County
General, 15.93%Education Revenue
Augmentation Fund
(ERAF), 13.91%
Palo Alto General
Fund, 9.43%
Foothill-DeAnza
Community College, 7.20%
County School Services,
3.80%SCVWD, 2.20%
Mid Peninsula Regional Open Space District, 1.76%Mountain View-Los Altos
Union High, 0.21%Other, 0.55%
ATTACHMENT A
Additional Information Related to Sales Tax, Property Tax, and Transient Occupancy Tax in
the City of Palo Alto
Attachment A - 5
The current FY 2021 assessed value growth of 7.7 percent or $3.06 billion in additional assessed value. Of
this growth, $1.7 billion, or 56 percent of the growth in values was in residential uses. This table identified
the growth in taxable
value from FY 2020 to FY
2021. This is above the
Santa Clara County City
average and median of
6.9 percent for this
period. Drivers for
growth in assessed
values continue to
include the change in
value due to a 2.0% CPI
growth application. The
transfer of ownership of
property, reassessing
those properties to the current market value, and new construction in nonresidential and residential
categories. Important to note is also the quantity of parcels, approximately 20,000 of which 19,000 are
residential (95 percent). However, the percent of the total assessed value of residential is 67.9 percent
of the total for the City. Top ten taxpayers based on net values for lien year 2021 include but are not
limited to Stanford university, Google LLC., VM Ware, Space Systems Loral Land LLC., and various realty
companies such as Hohbach.
Transfer of ownership continues to be a significant driver of growth and the below table articulates some
of those drivers and trends. At a macro level, it can be seen that the number of sales has been on the
decline even pre pandemic, and the growth in value, or the difference between the assessed value before
the sale and the assessed value after the sale has also continued to decline. Through July 2020, the City
of Palo Alto was one of three cities in Santa Clara County who’s median sales price decreased (from $2.8
million to $2.7 million).
ATTACHMENT A
Additional Information Related to Sales Tax, Property Tax, and Transient Occupancy Tax in
the City of Palo Alto
Attachment A - 6
Another important element of the City’s Property Tax is the potential for Proposition 8 reduction requests
on the commercial parcels, whereby a landlord can request that their assessed value be revised downward
to align with current market trends. This reassessment would only be temporary, but it is both more likely
that the assessments would be revised downward on vacant properties and the likelihood of a downward
revision increases the longer a particular property remains vacant. As the City council considers land-use
decisions, secondary impacts such as property tax implications, should be a part of the consideration. Palo
Alto currently has approximately 1.4 percent of all parcels adjusted for Proposition 8, however, during the
prior great recession, say over 12 percent of all parcels adjusted for Proposition 8.
In thinking through the types of properties that may be impacted by potential Proposition 8 adjustments
in the future, some considerations of
Transient Occupancy Tax:
Travel, as an economic sector, has been adversely impacted throughout the COVID-19 pandemic. The City
of Palo Alto is uniquely situated in the market for hotels; few conventions are held in Palo Alto and it is
not generally considered a ‘leisure’ destination. In the past, these have been more than offset by steady
business travel and travel associated with Stanford University. Although conventions have largely shifted
to virtual formats, destinations that are “driveable” for leisure, such as Santa Cruz and Napa, have seen
modest recoveries as travel restrictions lifted somewhat. With the regression to the purple tier in those
counties, it is not anticipated that those recoveries will persist since they are linked directly to the ability,
and willingness, to travel.
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
0
100
200
300
400
500
600
700
2016 2017 2018 2019 2020 (thru
7/31/20)
Transfer of Ownership (Secured)
Single Family Residential Sales Total Sales % Change in AV SFR % Change in AV
ATTACHMENT A
Additional Information Related to Sales Tax, Property Tax, and Transient Occupancy Tax in
the City of Palo Alto
Attachment A - 7
The pressure on hotels will persist in the immediate term, driven by efforts to contain COVID-19.
According to CBRE, demand for hotel rooms nationally was down by 36.8% year-over-year from Q3 2019
to Q3 2020, and national hotel occupancy declined a corresponding 37.9% year-over-year. San Francisco
saw a significant 84.1% loss in Revenue Per Available Room (RevPAR), the third greatest decline in the
continental U.S. behind only Boston (85%) and New York (87.9%). San Jose saw a loss slightly greater than
70% from Q3 2019 to Q3 2020.
Partly because of Palo Alto’s uniquely upscale retail mix, described above in the Sales Tax section of this
report, Palo Alto previously attracted international business travelers. The drops seen in the City of Palo
Alto’s Transient Occupancy Tax revenues align with the 80% decline in business and visitor travel to the
area. The following figure shows the decline in inbound international spending and shows the negative
impact on hotel demand in U.S. gateway cities.
ATTACHMENT A
Additional Information Related to Sales Tax, Property Tax, and Transient Occupancy Tax in
the City of Palo Alto
Attachment A - 8
Although the precipitous drop seen above is unlikely to immediately rebound, preliminary indicators
suggest that as a vaccine facilitates a recovery and reopening, hospitality could be recovering over a
relatively short time frame. CBRE anticipates recovering through FY 2022, FY 2023, and FY 2024 before
returning to the trend line.
ATTACHMENT B
Examples of Other Recovery Plans: San Francisco, San Jose, and Stanford Medicine
Attachment B - 1
At its meeting on October 19, the City Council received excerpts from the recovery strategies developed
for San Francisco and San Jose/Silicon Valley. These reports are summarized below, in order to provide a
context of work already completed by major nearby communities. In addition, Stanford Medicine recently
released recommendations for communities to emerge from the pandemic, and this resource is also
summarized below.
The City of San Francisco created a COVID-19 Economic Recovery Task Force, the City of San Jose convened
a Silicon Valley Recovery Roundtable, and Stanford created their Recover, Restore, and Re-Open (R3)
Framework. Outcomes from each of these groups and plans are detailed below followed by a discussion
of how the City of Palo Alto’s ongoing approach could be shaped.
San Francisco’s Economic Recovery Task Force organized their ongoing work into eight categories, which
are detailed below. Their full report can be found online1:
1. Local Economic Stimulus: explore policies and investments that encourage economic development and activity
in San Francisco, such as funding public infrastructure projects, streamlining permitting processes, advocacy for
state and federal resources, and more
2. Job Connections: facilitate and improve connections to jobs and explore programs that hire local workers
3. Promote Safe Reopening: provide clear and accessible information to businesses and workers on reopening
requirements and provide tools and strategies to keep workers, customers, and residents safe
4. Preserve Operations and Lessen Regulatory Burdens: create flexibility for businesses to operate and consider
reducing or eliminating regulatory burdens
5. Pursue Economic Justice: narrow the wealth gap and bridge the digital divide for low-income residents and
communities of color
6. Invest in Housing: incentivize the construction of affordable housing, an immediate and longterm need
7. Meet the Basic Needs of the Vulnerable: ensure San Franciscans have access to food, shelter, mental health,
and other services
8. Imagine and Build Stronger Neighborhoods: activate and draw upon San Francisco’s unique neighborhood and
cultural assets.
San Jose’s Silicon Valley Round Table distilled their recommendations into six priorities, which are shown
below. Their full report can be found online2:
1. Strengthen financial stability for individuals and businesses: Provide immediate financial assistance to address
urgent needs exacerbated by COVID-19, and create equitable access to banking services, particularly for people
of color, undocumented individuals, small businesses, and startups.
2. Drive job creation and support displaced workers to promote economic recovery: Foster an inclusive economic
recovery by facilitating job creation, particularly for low-income displaced workers and people of color. Support
the recovery of small businesses and startups, who are the primary force behind job creation in our region.
3. Galvanize housing preservation, protection, and production: Break through on the housing crisis in the short-
term to stabilize vulnerable populations through preservation and protection. Longer-term, produce more
1 https://www.onesanfrancisco.org/sites/default/files/inline-
files/EconomicRecoveryTaskForceReport_10.08.20.pdf
2 https://media.bizj.us/view/img/11844413/svrr-report-final-pdf.pdf
ATTACHMENT B
Examples of Other Recovery Plans: San Francisco, San Jose, and Stanford Medicine
Attachment B - 2
housing, with a particular focus on low-income, very low-income, and extremely low-income individuals and
households, including the homeless.
4. Reimagine neighborhood districts: Rethink how important commercial, work, and community spaces are built,
structured, and connected. Reinvest in our small businesses to spur growth and revive the vibrancy of places
that are anchors of our community.
5. Create next-generation transportation: Demonstrate leadership in mobility by building integrated solutions and
investing in location-based housing to improve transportation equity and regional access to jobs. Prioritize
transformational and strategic investments that include new and legacy platforms, complete streets efforts that
facilitate safe carbonless travel, and innovative transportation technology and behavior change programs.
6. Expand digital inclusion for individuals and businesses: Bridge the digital divide and build resilience for future
resurgences by equipping individuals and small businesses with stronger digital tools and better connectivity.
Parallel to efforts by San Francisco and San Jose, Stanford Medicine has also assembled a framework
organized around the idea of Recovering, Restoring, and Re-Opening (R3). This framework was intended
to inform how different communities and groups could approach recovering from the impacts of COVID-
19. More information about the framework can be found online3. Stanford’s framework provides three
main components: Containing and Controlling COVID-19, Safeguarding and Supporting Your Community,
and Adapting and Thriving in the “New Normal”.
• Containing and Controlling COVID-19 includes elements like expanded testing strategies, building an integrated
public health surveillance system, assessing plans to conduct contact tracing at scale, and ensuring adherence
to public health safety measures.
• Safeguarding and Supporting Your Community includes protecting vulnerable populations and promoting health
equity, preparing health systems and hospitals for future surges, establishing protocols to tighten controls
rapidly in response to new outbreaks, and promoting alignment and coordination with other government
authorities and employers.
• Adapting and Thriving in the New Normal includes initiating strategic and operational planning for the “now”,
“near” and “far”, addressing mental health and well-being across the life span, developing frameworks to
reimagine physically distanced lifestyles, and digitally transforming the ambulatory environment.
3 https://med.stanford.edu/covidrecovery/about.html
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
December 7, 2020
The Honorable City Council
Attention: Finance Committee
Palo Alto, California
Approval of Action Minutes for the November 16, 2020 City Council
Meeting
Staff is requesting Council review and approve the attached Action Minutes.
ATTACHMENTS:
• Attachment A: 11-16-20 DRAFT Action Minutes (PDF)
Department Head: Beth Minor, City Clerk
Page 2
CITY OF PALO ALTO CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 10
Special Meeting
November 16, 2020
The City Council of the City of Palo Alto met on this date in Virtual
Teleconference at 5:03 P.M.
Participating Remotely: Cormack, DuBois, Filseth, Fine, Kniss, Kou, Tanaka
Absent:
Agenda Changes, Additions and Deletions
None.
Minutes Approval
1. Approval of Action Minutes for the November 02, 2020 City Council
Meeting.
MOTION: Vice Mayor DuBois moved, seconded by Council Member Kou to
approve the Action Minutes for the November 02, 2020 City Council Meeting.
MOTION PASSED: 7-0
Consent Calendar
Council Member Kou and Council Member Tanaka registered no votes on
Agenda Item Number 7.
Vice Mayor DuBois and Council Member Tanaka registered no votes on
Agenda Item Number 3.
Council Member Tanaka registered a no vote on Agenda Item Number 2.
MOTION: Mayor Fine moved, seconded by Council Member Cormack to
approve Agenda Item Numbers 2-7.
2. Approval of Construction Contract Number C20177933 With
Automated Solutions Group, Inc. in the Amount of $313,417 for the
Cubberley Building Management Systems Project, Capital
Improvement Program Project (CB-19001).
DRAFT ACTION MINUTES
Page 2 of 10
City Council Meeting
Draft Action Minutes: 11/16/2020
3. Approval of Contract Number C20175026 With JC Decaux San
Francisco, LLC in the Amount of $1,053,924 for a Five-year Term to
Provide the Rental and Servicing of two Automatic Public Toilets; and
Approval of a Fiscal Year 2021 Budget Amendment in the General
Fund.
4. Resolutions for the Santa Clara County Historical Heritage Grant
Program: 1) Resolution 9922 Entitled “Resolution of the Council of the
City of Palo Alto Authorizing the Application and Receipt of Grant Funds
by the Museum of American Heritage (MOAH) for Roof
Repair/Replacement at the Williams House (351 Homer Ave);” and
2) Resolution 9923 Entitled “Resolution of the Council of the City of
Palo Alto By the City of Palo Alto for the Roth Building (300 Homer
Ave) Roof and Frescoes Rehabilitation.”
5. Resolution 9924 Entitled “Resolution of the Council of the City of Palo
Alto to Establish the Old Palo Alto Residential Preferential Parking
(RPP) Program as a Continuing Program.”
6. QUASI-JUDICIAL. 2100 El Camino Real/501 Oxford (College Terrace
Centre) [20PLN-00247]: Approval of a Proposed Grocery Store
Pursuant to PC Ordinance Number 5069. Environmental Assessment:
Exempt per California Environmental Quality Act (CEQA) Section
15301 (Existing Facilities). Zoning District: Planned Community (PC-
5069).
7. Ordinance 5511 Entitled “Ordinance of the Council of the City of Palo
Alto Amending Chapters 9.64 (Regulation of Community Facilities) and
22.04 (Parks and Recreation Building Use and Regulations) of the Palo
Alto Municipal Code to Open Foothills Park to the General Public and to
Amend or Delete Outdated and Duplicative Code Language (FIRST
READING: November 2, 2020 Passed: 5-2 Kou, Tanaka no).”
MOTION PASSED FOR AGENDA ITEM NUMBER 2: 6-1 Tanaka no
MOTION PASSED FOR AGENDA ITEM NUMBER 3: 5-2 DuBois, Tanaka no
MOTION PASSED FOR AGENDA ITEM NUMBER 7: 5-2 Kou, Tanaka no
MOTION PASSED FOR AGENDA ITEM NUMBERS 4-6: 7-0
MOTION: Council Member DuBois moved, seconded by Council Member Kou
to reconsider Agenda Item Number 3.
MOTION PASSED: 6-1 Fine no
DRAFT ACTION MINUTES
Page 3 of 10
City Council Meeting
Draft Action Minutes: 11/16/2020
MOTION: Vice Mayor DuBois moved, seconded by Council Member Kou,
third by Council Member Filseth to continue Agenda Item Number 3 to a date
uncertain.
Action Items
8. Direction on the City of Palo Alto’s Race and Equity Work Including: 1)
Adoption of a Mission Statement; 2) Direction on Police Data
Collection, Alternative Response Resources, Use of Force Reporting,
Future Labor Agreement Negotiations; 3) Citywide Workforce
Assessment; and 4) Organization of Future Work.
Council took a break at 6:40 P.M. and returned at 6:53 P.M.
MOTION: Vice Mayor DuBois moved, seconded by Mayor Fine that, if the
County does not assign a resource to Palo Alto in the next six months, refer
to Policy and Services Committee the exploration of the feasibility of a
CAHOOTS-type program.
MOTION PASSED: 7-0
MOTION: Council Member Kou moved, seconded by Vice Mayor DuBois to
direct Staff to return the Scope of Services to allow the City Council to meet
and confer directly with the Independent Police Auditor.
MOTION RESTATED: Council Member Kou moved, seconded by Vice Mayor
DuBois to amend the contract to require the Independent Police Auditor
(IPA) to meet with the City Council in open session twice a year with each
report.
MOTION PASSED: 7-0
MOTION: Vice Mayor DuBois moved, seconded by Council Member Kou to
refer to the Policy and Services Committee consideration of the Independent
Police Auditor (IPA) oversight of internal complaints regarding misconduct
related to harassment, discrimination, or retaliation resulting in city
investigation of uniformed officers.
MOTION PASSED: 6-1 Fine no
MOTION: Vice Mayor DuBois moved, seconded by Council Member Cormack
to direct Staff to work with IT to streamline publishing police policy updates
to the City website on a quarterly basis.
MOTION PASSED: 7-0
DRAFT ACTION MINUTES
Page 4 of 10
City Council Meeting
Draft Action Minutes: 11/16/2020
MOTION: Council Member Cormack moved, seconded by Council Member
XX to direct the Police Department to include in the Annual Police Report a
report on Duties to Report.
MOTION WITHDRAWN BY THE MAKER
MOTION: Mayor Fine moved, seconded by Council Member Kniss to
approve the following actions on a variety of issues:
A. Adoption of the mission statement as a guiding statement of the City’s
commitment to make equity a foundational principle in the City’s
operational work;
B. Direct Staff to expedite implementation of the new police records
management system with quarterly reports to Council, and to return
with the necessary agreements for the records management system
allowing for Racial and Identity Profiling Act (RIPA) implementation;
C. Starting after the full implementation of the RMS and the first data
collection period, direct Staff to resume annual data collection and
analysis of police contact data similar to the previous Stop Data
reports;
D. Direct Staff to work with Santa Clara County on implementation of
participation in the Santa Clara County Psychiatric Emergency
Response Team (PERT) program and the Mobile Crisis Response Teams
(MCRT) program and to return to the City Council with any necessary
agreements for program participation;
E. Direct Staff to develop/update a policy on the timing of records release
related to investigations that qualify for public disclosure under SB
1421 and AB 748;
F. Direct Staff to amend and expand the current Independent Police
Auditor’s (IPA) scope of services to include all administrative use of
force reports where a baton, chemical agent, TASER, less-lethal
projectile, canine, or a firearm is used, and all cases where the
subject’s injuries necessitate any treatment beyond minor medical
treatment in the field;
G. Direct Staff to maintain an every six (6) months schedule for IPA
reports to City Council containing reviews ready at the time of the
report; and for the IPA to provide an audit workplan to the City Council
for approval;
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H. Direct Staff to include use of force information to the regular
Supplemental Report submitted to the City Council as a cover
memorandum to each IPA report;
I. Refer the police reform legislative priority thoughts and input to the
Policy and Services Committee who will be discussing the City’s
legislative priorities in December 2020;
J. Refer all race and equity work to the Policy and Services Committee
for citywide diversity and inclusion practice areas and policing practice
areas;
K. Direct Staff to return in the fall of 2021 with parameters, proposals,
and strategies prior to engaging in Palo Alto Peace Officers’ Association
negotiations;
L. Direct Staff, in coordination with the City’s overall diversity and
inclusion efforts, to conduct a workforce demographic assessment as
baseline information and to pursue an employee assessment to
measure City workforce culture;
M. Policy and Services CEDAW recommendation: Direct Staff to proceed
with a community summit on gender equity issues and next steps in
Palo Alto;
N. If the County does not assign a resource to Palo Alto in the next six
months, refer to Policy and Services Committee the exploration of the
feasibility of a CAHOOTS-type program;
O. Amend the contract to require the Independent Police Auditor (IPA) to
meet with the City Council in open session twice a year with each
report;
P. Refer to the Policy and Services Committee consideration of the
Independent Police Auditor (IPA) oversight of internal complaints
regarding misconduct related to harassment, discrimination, or
retaliation resulting in city investigation of uniformed officers.
Q. Direct Staff to work with IT to streamline publishing police policy
updates to the City website on a quarterly basis.
MOTION AS AMENDED PASSED: 7-0
Council took a break at 8:37 P.M. and returned at 8:46 P.M.
DRAFT ACTION MINUTES
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Draft Action Minutes: 11/16/2020
9. PUBLIC HEARING / QUASI-JUDICIAL / LEGISLATIVE. 788 San Antonio
Road [19PLN-00079]: The City Council Will Consider: 1) Adoption of a
Resolution 9925 Entitled “Resolution of the Council of the City of Palo
Certifying a Final Environmental Impact Report (EIR), Making
California Environmental Quality Act (CEQA) Findings Including a
Statement of Overriding Considerations, and Adopting a Mitigation
Monitoring and Reporting Plan;” 2) Adoption of a Resolution 9926
Entitled “Resolution of the Council of the City of Palo Alto Amending
the Comprehensive Plan;” 3) Adoption of a Zoning Ordinance: a)
Expanding the Housing Incentive Program to San Antonio Road, and b)
Amending Definition of Gross Floor Area and Amending Retail
Preservation for Housing; 4) Approval of a Tentative Map for a
Condominium Subdivision; 5) Approval of a Variance to a Special
Setback; and 6) Approval of Major Architectural Review for 102
Dwelling Units, a 1,800 Square Foot Commercial Space and two
Basement Levels of Parking (Continued From November 9, 2020).
Public Hearing opened at 9:23 P.M
Public Hearing closed at 10:20 P.M.
MOTION: Council Member Kniss moved, seconded by Vice Mayor DuBois
to:
A. Adopt a Resolution certifying the Final Environmental Impact Report,
adopting California Environmental Quality Act (CEQA) findings, a
Statement of Overriding Considerations and a Mitigation, Monitoring
and Reporting Program;
B. Approve the 788 San Antonio Road project, construction hours, and
the addition of a historical plaque;
C. Adopt a Record of Land Use Action approving the requests for a
Tentative Map, Variance and Architectural Review based on findings
and subject to the conditions of approval;
D. And to the extent necessary for the project:
a. Adopt a Resolution amending Comprehensive Plan Land Use
Element Program L2.4.1;
b. Introduce an Ordinance approving text amendments to the Palo
Alto Municipal Code Title 18
MOTION PASSED: 7-0
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MOTION: Council Member Kniss moved, seconded by Mayor Fine to, in
order to extend the Housing Incentive Program (HIP) to the two-block area
as defined in the administrative record:
A. Adopt a Resolution amending Comprehensive Plan Land Use Element
Program L2.4.1; and
B. Introduce an Ordinance approving text amendments to the Palo Alto
Municipal Code Title 18.
INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE
MAKER AND SECONDER to direct Staff to return with the parameters for a
San Antonio Corridor transportation study
AMENDMENT: Vice Mayor DuBois moved, seconded by Council Member
Filseth to only allow the retail preservation waiver in the CS Zone on San
Antonio Road for high-density residential.
AMENDMENT FAILED: 3-4 DuBois, Filseth, Kou yes
AMENDMENT: Council Member Tanaka moved, seconded by Council
Member XX to direct Staff to explore striking the restriction on underground
parking.
AMENDMENT WITHDRAWN BY THE MAKER
MOTION AS AMENDED: Council Member Kniss moved, seconded by Mayor
Fine to:
A. In order to extend the Housing Incentive Program (HIP) to the two-
block area as defined in the administrative record:
i. Adopt a Resolution amending Comprehensive Plan Land Use
Element Program L2.4.1;
ii. Introduce an Ordinance approving text amendments to the Palo
Alto Municipal Code Title 18; and
B. Direct Staff to return with the parameters for a San Antonio Corridor
transportation study
MOTION AS AMENDED PASSED: 4-3 DuBois, Filseth, Kou no
Council took a break at 12:38 A.M. and returned at 12:44 A.M.
DRAFT ACTION MINUTES
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10. Update and Discussion on the Regional Housing Needs Allocation
(RHNA) Process and Direction to Staff Regarding the City's Response
to the Proposed RHNA Methodology, Including Preparation of a Formal
Comment Letter (CONTINUED FROM NOVEMBER 9, 2020).
MOTION: Council Member Filseth moved, seconded by Vice Mayor DuBois
to:
A. Discuss and provide direction to Staff as appropriate on the Regional
Housing Needs Allocation (RHNA) process;
B. Direct Staff to submit a comment letter to the Association of Bay Area
Governments (ABAG) Regional Planning Committee on the proposed
6th Cycle RHNA methodology;
C. Discuss possible City Council Member engagement with other elected
officials or representatives regarding the RHNA process to further
advance the City’s interests; and
D. Provide initial direction to staff on preparation for a possible appeal of
the RHNA methodology to the state Housing and Community
Development department in Summer next year.
AMENDMENT: Council Member Kniss moved, seconded by Mayor Fine to
remove references to the Embarcadero Institute from the comment letter.
AMENDMENT PASSED: 4-3 DuBois, Filseth, Kou no
AMENDMENT: Council Member Kou moved, seconded by Council Member
XX to incorporate a reference and footnote to the Freddie Mac report in the
comment letter.
AMENDMENT FAILED DUE TO THE LACK OF A SECOND
MOTION AS AMENDED: Council Member Filseth moved, seconded by Vice
Mayor DuBois to:
A. Discuss and provide direction to Staff as appropriate on the Regional
Housing Needs Allocation (RHNA) process;
B. Direct Staff to submit a comment letter to the Association of Bay Area
Governments (ABAG) Regional Planning Committee on the proposed
6th Cycle RHNA methodology;
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C. Discuss possible City Council Member engagement with other elected
officials or representatives regarding the RHNA process to further
advance the City’s interests;
D. Provide initial direction to staff on preparation for a possible appeal of
the RHNA methodology to the state Housing and Community
Development department in Summer next year; and
E. Remove references to the Embarcadero Institute from the comment
letter.
MOTION AS AMENDED PASSED: 6-1 Fine no
Adjournment: The meeting was adjourned at 1:44 A.M.
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Draft Action Minutes: 11/16/2020
City of Palo Alto (ID # 10882)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 12/7/2020
City of Palo Alto Page 1
Summary Title: Contract with Canopy for Urban Forestry Outreach and Tree
Planting Events
Title: Approval of a Contract With Canopy for $225,510 for a One-year Term
to Support Palo Alto's Urban Forestry Programs; Assist With Implementation
of Programs Within the Urban Forest Master Plan; Help Improve the Tree
Canopy in South Palo Alto; and Educate the Public About Trees
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1. Approve and authorize the City Manager or his designee to execute a one-year
contract with Canopy for a not-to-exceed amount of $225,510 for assistance
with the implementation of Urban Forest Master Plan programs; and
2. Amend the Fiscal Year 2021 Budget Appropriation for the General Fund, by a 2/3
vote, by:
a. Increasing the Public Works Department Public Services Division
Operating Budget by $75,000 to align with the contract amount; and
b. Decreasing the Tree Preservation Deposits Account by $75,000.
Background
Canopy was created in 1996 to support Palo Alto’s Urban Forestry Section and engage residents
through its tree and tree care education activities. Since becoming an independent 501(c)(3)
non-profit corporation in 2002, Canopy has greatly expanded its programs of tree planning and
planting, stewardship, hands-on learning, and environmental education. Since the early 2000s,
the City has contracted with Canopy, with a primary focus on assisting the City with projects
and outreach to support and expand a healthy and sustainable urban forest.
In 2017, City Council approved a three-year, sole source contract with Canopy (CMR #8198) to
support Palo Alto’s urban forestry programs by serving as a comprehensive information source
on trees, educating and motivating Palo Alto residents to plant, care for, and celebrate trees,
and assisting the City with special projects associated with the Urban Forest Master Plan
(UFMP). The contract with Canopy expired on June 30, 2020.
City of Palo Alto Page 2
Discussion
Fiscal Year 2021 marks the sixth year of the UFMP implementation. Implementation of
programs prescribed in this sixth year includes completion of nine UFMP plan programs. The
Great Oak Count and the development of the Preferred and Restricted Species List complete or
support the completion of 11 total UFMP programs.1
The primary goal of the Great Oak Count is to update the 1997 Oakwell Survey to assess
changes in Palo Alto’s native oak population since 1997, evaluate their health, recommend
actions to improve conditions, evaluate gaps, and identify opportunities. A Preferred and
Restricted Species List will be a helpful tool for staff, residents, and property owners. The list
will acknowledge differing priorities for public and private trees on different property types and
will consider many tree characteristics to create a dynamic and long-lasting tool.
Canopy is deeply rooted with the residents of Palo Alto and has the expertise, experience,
professional stature, and key personnel to provide these services. Canopy is uniquely qualified
as a non-profit organization to connect projects and programs with cooperating agencies and
organizations to leverage funding and increase the effectiveness of projects and outreach.
During the previous three-year contract period, Canopy leveraged $981,088 in funding
(predominantly through donation of volunteer hours). While there are other Bay Area
environmental nonprofit groups, none have Canopy’s combination of deep arboricultural
background, robust educational framework, and strong local volunteer base. For these reasons,
staff believes there is no adequate substitute or equivalent provider for the services required.
In light of the current budget issues facing the city due to the impacts of the COVID-19
pandemic, this one-year contract (Attachment A) maintains the hourly contract rates from the
previous contract. It should be noted that the hourly rates used in the previous contract did not
include any rate escalation. Staff further proposes a shift in Basic Services in comparison to the
previous contract to adapt to the current budget constraints. The Basic Services scope of work
and budget is reduced from $83,210 to $58,210. Concurrently, the funding for tree planting
activities in South Palo Alto will be increased by $63,800 for a total of $112,300. A portion of
this funding ($75,000) is recommended to come from the Forestry Fund, dedicated funding for
tree planting that is paid into by development projects when adequate tree preservation
cannot be attained, and the remainder from the Fiscal Year 2021 Public Works Public Services
Division Adopted Operating Budget.
Contract Item 2017 Contract (yearly) FY21 Contract Item Amount
Great Oak Count (partial) N/A $ 30,000
P&R Species List N/A $ 25,000
SPA Tree planting activities $ 48,500 (100 trees) $112,300 (230 trees)
Basic Services $ 83,210 $ 58,210
Totals $131,710 $225,510
1 The UFMP programs referenced are: 1.A.ii, 1.A.iii, 1.A.iv, 1.B.i, 2.A.i, 2.A.ii, 2.A.vii, 3.A.i, 4.A.xi, 6.B.iv, 6.J.vii
City of Palo Alto Page 3
This contract is on the City’s professional services template, which permits the City to terminate
without cause/for convenience by providing written notice to the contractor. In the event the
City finds itself facing a challenging budget situation, and it is determined that City resources
need to be refocused elsewhere, the City can terminate for convenience. Other options include
termination due to non-appropriation of funds or amending the contract to reduce the cost, for
example, by reducing the scope of work.
Resource Impact
Funding for this contract is available in the Fiscal Year 2021 Operating Budgets for the Public
Works, Community Services, and Utilities Departments.
Department Funding Amount
Public Works Department $129,510
Forestry Fund $ 75,000
Community Services Department $ 6,000
Utilities Department $ 15,000
Totals $225,510
Funding in this contract for Goal D.3 (Program 1.D.i), South Palo Alto Tree Planting in the
amount of $112,300 is contingent upon Council approval, by a 2/3 vote, of a withdrawal of
$75,000 from the Forestry Fund (Tree Preservation Deposits #62660) in Fiscal Year 2021, which
would leave a balance of approximately $135,000 in the Forestry Fund.
Policy Implications
This recommendation does not represent any change to existing City policies.
Stakeholder Engagement
Stakeholder engagement is an ongoing component of this contract. Many programs included in
the contract (South Palo Alto Tree Planting, Great Oak Count, general Urban Forestry Education
and Outreach) have an outreach/engagement component included as part of the
implementation process. This allows Canopy and the City to inform stakeholders of projects and
programs, incorporate stakeholder feedback into implementation plans, and engage
stakeholders directly as volunteers and participants in growing and maintaining our Urban
Forest.
Environmental Review
The recommended action is exempt from review under the California Environmental Quality
Act (CEQA) pursuant to CEQA Guidelines Section 15301(h) (maintenance of existing landscape).
Attachments:
Attachment A - C21180324 CANOPY
Professional Services Rev. April 23, 2020 1
CITY OF PALO ALTO CONTRACT NO. C21180324 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND CANOPY FOR PROFESSIONAL SERVICES
This Agreement for Professional Services (this “Agreement”) is entered into as of the 7th day of December, 2020, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CANOPY, a California corporation, located at 3921 East
Bayshore Road, Palo Alto, CA 94303 ("CONSULTANT").
RECITALS The following recitals are a substantive portion of this Agreement.
A. CITY intends to create and maintain a healthy and sustainable urban forest (the "Project")
and desires to engage a consultant to help support Palo Alto's urban forestry programs, implement programs of the Urban Forest Master Plan, improve canopy equity between north and south Palo Alto, and educate the public about trees in connection with the Project (the “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 December 6, 2021 unless terminated earlier pursuant to Section 19 of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term of
this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this
Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery
of damages for delay if the extension is required due to the fault of CONSULTANT.
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Professional Services Rev. April 23, 2020 2
SECTION 4. NOT TO EXCEED COMPENSATION. 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 any specified reimbursable expenses, shall not exceed Two Hundred
Twenty-Five Thousand Five Hundred Ten Dollars ($225,510), as detailed in Exhibit “C”.
CONSULTANT agrees to complete all Basic Services, including any specified reimbursable
expenses, within this amount. The applicable rate schedule is 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 Section 27.4 regarding amendments to this Agreement. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY
per Section 27.4. “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 for
example and without limitation an identification of personnel who performed the Services, hours
worked, hourly rates, and any reimbursable expenses), based upon Exhibit “C” and/or the CONSULTANT’s billing rates set forth in Exhibit “C-1”, as applicable. If applicable, the invoice shall also describe the percentage of completion of each task. The information in
CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT
shall send all invoices to the City’s project manager at the address specified in Section 13 below.
The City will generally process and pay invoices within thirty (30) days of receipt.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be
performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT
represents that it possesses the professional and technical personnel necessary to perform the
Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and
subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses,
permits, qualifications, insurance and approvals of whatever nature that are legally required to
perform the Services.
All of the Services to be furnished by CONSULTANT under this Agreement shall meet the
professional standard and quality that prevail among professionals in the same discipline and of
similar knowledge and skill engaged in related work throughout California under the same or
similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to
perform Services under this Agreement. CONSULTANT shall procure all permits and licenses,
pay all charges and fees, and give all notices required by law in the performance of the Services.
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Professional Services Rev. April 23, 2020 3
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.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work
to be performed under this Agreement without the prior written authorization of the city manager
or designee.
Option B: 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:
CONSULTANT shall be responsible for directing the work of any subconsultants and for any
compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning
compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a
subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Catherine
Martineau as the Project Manager to have supervisory responsibility for the performance, progress,
and execution of the Services and Elise Willis as the project coordinator to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution
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Professional Services Rev. April 23, 2020 4
of the project manager, project coordinator, or any other key personnel for any reason, the appointment 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 Peter Gollinger, Public Works Department, Operations Trees Division,
3201 East Bayshore Road., Palo Alto, CA 94303, Telephone:650-496-6946. 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”) resulting from, arising out of or in any manner related to performance
or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this
Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active
negligence, sole negligence or willful misconduct of an Indemnified Party.
16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
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Professional Services Rev. April 23, 2020 5
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.
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.
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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, 19.5, 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
To CONSULTANT: Attention of the project director to:
Canopy
3921 East Bayshore Road
Palo Alto, CA 94303
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.
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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
documentation from the facility accepting the pallets to verify that pallets are not
being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
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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, 854 and 96, 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. CONSULTANT and CITY understand and agree
that the Services to be provided under this Agreement do not include work that constitutes “public
works” subject to prevailing wages or related requirements and that CONSULTANT will not
engage in any work under this Agreement that is subject to prevailing wage and related laws and regulations.
OR
26.1 CONSULTANT is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section
1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor
Code of the State of California, the City Council has obtained the general prevailing rate of per
diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the
Purchasing Division’s office of the City of Palo Alto. CONSULTANT shall provide a copy of
prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage
rates as a minimum. CONSULTANT shall comply with the provisions of all sections, including,
but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages.
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26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any contract for public works construction, alteration, demolition, repair or maintenance.
SECTION 27. MISCELLANEOUS PROVISIONS.
27.1. This Agreement will be governed by the laws of the State of California.
27.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys' fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.
27.4. This 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 authorized representatives of the parties and approved as required under 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 (collectively,
“exhibits”) to this Agreement which are referred to herein are, by such reference, incorporated in
and 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 (if any), the exhibits shall
control.
27.9 If, pursuant to this Agreement, 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.
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27.10 All unchecked boxes do not apply to this Agreement. 27.11 The individuals executing this Agreement represent and warrant that they
have the legal capacity and authority to do so on behalf of their respective legal entities.
27.12 This Agreement may be signed in multiple counterparts, which, when executed by the parties, shall together constitute a single binding agreement.
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CONTRACT No. C21180324 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________ City Manager or Designee
APPROVED AS TO FORM:
__________________________
City Attorney or designee
(Required on Contracts over $25,000)
CANOPY
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments:
EXHIBIT “A”: SCOPE OF SERVICES
EXHIBIT “B”: SCHEDULE OF PERFORMANCE
EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES
EXHIBIT “D”: INSURANCE REQUIREMENTS
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Chair, Board of Directors
Kammy Lo
Catherine Martineau
Executive Director
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EXHIBIT “A” SCOPE OF SERVICES
CONSULTANT will provide the Services detailed in this Exhibits A (Scope of Services) in
accordance with the provisions of this Agreement.
1.1 The responsibilities of the City will include the following:
City Arborists, Urban Forestry and Community Services Department staff will coordinate
and cooperate with CONSULTANT to facilitate special events such as the annual Mayor’s
tree planting, Arbor Day event(s) public right-of-way plantings, Young Tree Care Survey,
Right Tree Right Place program and City-wide educational events. City staff will be
responsible for locating and preparing planting sites for these events.
1.2 CONSULTANT’s Responsibilities. CONSULTANT shall perform the following Services, as
further detailed in the Action Plans below:
A. Serve as a comprehensive information source about Palo Alto’s trees.
B. Educate and motivate Palo Alto residents to plant, steward, and celebrate trees.
C. Maintain an organization with a credible, professional identity and high public
visibility in support of the Palo Alto urban forest.
D. Assist the City of Palo Alto in its planning and performance of routine urban forestry
programs on an ongoing basis and special projects associated with the Urban Forest
Master Plan (UFMP), specified herein.
E. Advocate for Palo Alto’s urban forest, within certain limitations as detailed below at
“Goal E.”
F. Conduct an assessment of recently planted street trees and assist with a locally-
sourced carbon credit project.
G. Administer Palo Alto Utility Department’s Right Tree in the Right Place Program
(RTRP).
Action Plans
CONSULTANT shall perform the Services as follows:
Goal A: Serve as a comprehensive information source about Palo Alto’s trees.
1. Provide, and perform timely updates to, comprehensive information on Palo Alto’s
trees on the CONSULTANT’s website www.canopy.org. Report quarterly on the
number of visits to the website, total number of page views, and traffic numbers by
page title. Provide the percentage of traffic generated through key word searches.
2. Operate and publicize CONSULTANT’s information and referral “Tree Hotline”
where people can phone in or email to ask specific questions about trees. Report
quarterly on the number of calls fielded by CONSULTANT’s staff.
3. Maintain an online, searchable arborist list of ISA Certified Arborists for distribution
to the community.
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4. Maintain and enhance the CONSULTANT’s online Tree Library.
5. Develop the “Preferred and Restricted Species List” (Program 1.A.ii of the UFMP).
6. Develop site specific species selection protocols to complement the “Preferred and
Restricted Species List” such as including a list of tree species acceptable for use in
areas where recycled water is or may be used for irrigation (Program 1.A.iii, and
2.C.iii of the UFMP).
Goal B: Educate and motivate Palo Alto residents to plant, care for, and celebrate trees.
1. Prepare, plan and schedule at least eight educational tree walks, including a
quarterly ‘themed’ tree walk in various neighborhoods led by knowledgeable
arborists. Update guideline materials for lead arborists and CONSULTANT
representatives. Report quarterly on the number of walks conducted, walk
locations, and number of attendees.
2. Prepare and schedule at least two public educational programs about trees and/or
tree care each year including Arbor Day, Planting Leader Training, Tree Care
Training and current relevant topics.
3. Partner with the City of Palo Alto Utilities Department (CPAU) to provide
educational materials at area community fairs and events and produce new
material on subjects such as tree maintenance, mistakes to avoid, and watering
guidelines as needed.
4. Assist the City’s Public Works, Urban Forestry Section by distributing
CONSULTANT’s “Young Tree Care” pamphlet to residents and businesses where
new trees were planted.
5. Mail the “Save Our Water and Our Trees” reminder postcard at least once during
each summer to each resident with a street tree planted in the last five years. Post
the “Save Our Water and Our Trees” banner in a prominent area of the City.
6. Publish and distribute an annual report to the community. Publish monthly
TreEnews electronic newsletters. Report quarterly on the number of issues
published and types of social media utilized to host TreEnews.
7. Use community events in the field as opportunities to educate participants in
proper tree planting and maintenance techniques. Provide volunteer field services
for up to 100 public trees. These services may include coordination of community
events for planting new trees and care for young trees.
8. Serve as a liaison to the Palo Alto School District (PAUSD) to increase awareness of
the value of the trees on school district land, which could include educational
events for students.
9. Organize the annual Mayor’s Tree Planting event.
10. Comply with all applicable legal and regulatory requirements regarding working
with minors, where applicable (including, for example, but not limited to,
conducting all required background checks and health screenings).
11. Conduct at least two community plantings per year with trees funded by the City.
Regularly inspect and report problems or concerns about the trees in a format
compatible with Tree Plotter, the City’s urban forestry crowdsourcing data
platform.
12. Assist the City in developing open portals for data entry as a way of engaging the
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community as partners in stewardship and improving data currency and accuracy;
UFMP Program 4.G.iii.
13. Report quarterly on programs including but not limited to tree planting, tree care
and education. Provide details on activities, volunteer numbers and hours,
educational materials, youth and adult education and outreach.
Goal C: Maintain an organization with a credible, professional identity and high visibility in
support of the Palo Alto urban forest. Leverage CITY funding to CONSULTANT with funding from
other sources.
1. Conduct donor and membership recruitment to leverage this Agreement and help
ensure a broad base of support for the activities relating to the Palo Alto urban
forest.
2. Seek participation and support from the commercial and industrial community.
3. Maintain and implement communications strategies.
4. Seek other financial support (e.g., grants) outside of City government to provide
increased services to the community and to increase public involvement.
5. Report quarterly on the governance, operations and capacity building to engage
new member and increase efficiency.
Goal D: Assist the City of Palo Alto in its planning and performance of routine urban forestry
programs on an ongoing basis and with special projects associated with the UFMP.
1. Distribute timely updates about UFMP programs and initiatives to the public via
CONSULTANT media sites; Programs 3.A.i. and 3.A.iii of the UFMP.
2. Implement a strategy to increase the number of trees in south Palo Alto by 1,000
over the next three years, including at least three community tree plantings a year.
This one-year contract includes funding for 230 trees; Program 1.D.i. of the UFMP.
CONSULTANT’s responsibilities will include:
a. Conducting at least 3 community tree planting events.*
• Identifying all planting sites
• Contacting property owners
• Creating species lists
• Securing trees at nurseries and coordinating their delivery to Palo
Alto
• Field verifying planting sites and notifying Underground Service
Alert (USA) prior to excavation*
• Purchasing trees and associated planting materials (stakes and ties)
• Creating and distributing outreach and/or marketing materials to
property owners
• Educating property owners about tree planting including species
selection, proper planting techniques, post-planting care, and
entering the tree information into the crowdsourced software
system
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• Coordinating the planting of trees
• Collecting all refuse materials from planting sites and delivering
them to a City-designated pickup site
• Caring for the newly planted trees through the establishment
period
b. Administering the City’s crowdsource software platform, Tree Plotter, to
encourage private property owners to enter information about newly
planted trees and catalog trees not planted through community tree
planting events.
The CITY’s responsibilities will include:
• Compiling south Palo Alto right-of-way planting site information and
distributing it to CONSULTANT’s Project Coordinator in a timely
fashion
• Staging and watering nursery trees from nursery delivery until
planting day
• Delivering ‘No Parking’ signs and mulch to a pre-designated staging
area, and trees to planting sites
• Picking up refuse materials (nursery stakes, buckets, extra soil, turf
and grass) at a pre-designated site post-planting
• Assisting with information about trees planted on private property
submitted as part of required landscape plans
3. The Great Oak Count: Urban Forest Master Plan Programs 2.A.i, 2.A.ii, 2.A.vii,
4.A.xi. The primary goal of the Great Oak Count is to update the Oakwell Survey in
order to assess changes in Palo Alto’s native oak population since 1997, evaluate
their health, recommend actions to improve conditions, and evaluate gaps and
opportunities. The analysis of the oak population’s evolution combined with the
historical oak removal permit data, conducted in partnership with the San
Francisco Estuary Institute (SFEI), will help understand patterns and evaluate the
effectiveness of the Palo Alto native oak tree protection ordinance adopted in
1996 and provide a basis for developing a plan to re-oak Palo Alto.
Additional goals include:
1. Engaging Palo Alto residents, property owners, landscaping firms, real estate
agents, and other audiences, in the appreciation and care for the precious
resource resilient and climate-adapted native oaks represent;
2. Addressing scientific questions about how native trees provide ecological and
ecosystem services in urban areas and how native oaks, in particular, can combat
climate change through long term carbon sequestration at a relatively low water
cost.
a. STRATEGY and METHODOLOGY
• Engage the public through interactions with volunteers, the Native
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Oak Tree Care door hanger, and online educational resources.
• Provide fun and valuable experiences to volunteers with the goal
of obtaining high-quality data and fostering an understanding and
appreciation for native oaks and their care, and inspire
participation in re-oaking efforts.
• Train “Oak Spotters” and “Tree Plotters” in group events where
youth and adults use their skills to contribute to data collection.
• Partner with SFEI to perform sophisticated analysis of data
collected in real-time.
• Partner with Acterra, Audubon, and California Native Plant Society
to develop educational materials and workshops on native oak
woodland ecosystems and tree species in the urban landscape for
the public and urban forestry staff.
• Use equipment such as mobile devices and measuring tapes to
produce accurate data collection.
• Record data in the Tree-Plotter open data platform.
b. DELIVERABLES
• Engage 250 volunteers, including trained and active Survey Leaders
• Survey 2,250 oaks, which is 25 percent of the estimated total
number of oaks (assuming there are still about 9,000 oaks to
survey, based on OakWell Survey data)
• Tree Plotter enhancement to share the Great Oak Count data with
community members, students, decision-makers, City of Palo Alto
Staff, and researchers.
• Integration of the oak-related tree removal permit historical data
into the Great Oak Count (and in Tree Plotter), and analysis of
permit patterns to inform the assessment of the effectiveness of
the tree protection ordinance.
• Interim results and outreach material to share them with
stakeholders.
• Quarterly report on activities.
4. Preferred and Restricted Species List: Urban Forest Master Plan Programs 1.A.ii,
6.J.vii, 3.A.i, 1.A.iii, 6.B.iv, 1.B.i, 1.A.iv. A Preferred and Restricted Species List will
be a helpful tool for staff and property owners, and will benefit South Palo Alto
properties. The list will acknowledge differing priorities for public and private trees
on different property types, and will consider many tree characteristics in order to
create a dynamic and long-lasting tool. Following the creation of this list, site-
specific species selection protocols will be developed and shaped into a tool for
practical use. Prioritizing species diversity and compatibility with the City
Sustainability Plan, and then sharing these tree lists with local commercial tree
providers in order to encourage stocking of appropriate tree species. In
collaboration with City staff and stakeholders CONTRACTOR will develop a
“Preferred and Restricted Species List”.
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It will consist of two components: 1. a criteria-based filtering tool and 2. actual
lists, current instances obtained by applying the filters. Stakeholders will include
various City departments and teams such as the Office of Sustainability and the
List will include consideration for the golf course, parks, preserves, open space,
and other sites, to encourage the use of appropriate species for these sites.
a. STRATEGY and METHODOLOGY
• Take advantage of currently available tools such as the Canopy
Tree Library
• In partnership with City staff, define the specs of the preferred
and restricted tree species list, including the type of publication
• Devise a plan and timeline for the creation of the list
• Following the creation of this list, site-specific species selection
protocols will be developed and shaped into a tool for practical
use, prioritizing species diversity and compatibility with the City
Sustainability Plan
• Outreach: The outreach component of this program is
incorporated in Goal D.6.
b. DELIVERABLES
• List of trees that are “preferred” and “restricted”
• Species selection protocols, displayed in an online tool, and
including rating of query results along the “best fit for specific
site” criterion.
• Outreach materials
• Quarterly report on activities.
Goal E: Advocate for Palo Alto’s Urban Forest, provided that CONSULTANT will not advocate for
any CITY contract, funding, initiative, or other CITY action, that may constitute a prohibited
financial or other interest by CONSULTANT, in conformity with State and Local laws and
regulations regarding conflicts of interest.
1. Provide comment to City departments, City Council and the public upon
review of policies, ordinances, and manuals that may affect the urban
forest.
2. Issue letters of support or concern on behalf of City, at City’s request, for
projects that positively or negatively impact the City’s trees.
3. Attend Council meetings and provide comments for projects involving
practices that may impact the City’s urban forest.
4. Provide comments to news organizations and/or media outlets about trees
in Palo Alto when appropriate, with City Project Manager approval.
5. Submit quarterly reports to City on CONSULTANT’s consulting and advocacy
activities related to projects involving the City’s urban forest.
Goal F: Conduct an assessment of the health of recently planted City trees and assist with a
locally-sourced carbon credit project.
1. Conduct an annual City-wide survey of newly planted street trees and
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report this information to the Public Works Department and residents.
2. Organize and train a cadre of volunteers to monitor the condition of young
trees, and perform simple tasks on site (such as adjusting tree ties or
moving mounded mulch away from base of a tree trunk, provided that any
such task is not in conflict with Section 26 of this Agreement).
3. Work with the City to integrate survey data into the crowdsourced data
platform.
4. Estimate costs, determine co-benefits, identify partnership opportunities,
leverage funding and quantify carbon sequestration for a locally-sourced
carbon credit project within the Urban Forest Registry framework.
Goal G: Administer the City Utilities Department’s (“City Utilities”) Right Tree in the Right Place
(RTRP) Program.
1. Advertise, respond to, and screen inquiries about the RTRP program before
forwarding requests to the Public Works Department (“PW”) for inspection.
2. Administer the process for applicants accepted by the Department of Public
Works to participate in the RTRP program, including acceptance
notification, removal confirmation, and stump grinding and replanting
information at each location. Promote replanting where suitable.
3. Review applications and forward paperwork to City Utilities for applicant
reimbursement.
4. Partner with City Utilities and PW Tree Division to extend the RTRP program
to businesses.
5. Work with City Utilities to explore growth opportunities for the RTRP
program such as exploring greenhouse gas and energy efficiency initiatives,
local tree ordinances, and solar access requirements.
6. Provide quarterly summary spreadsheet reports of RTRP activities to City
Utilities, and report on information distributed during the City Utility
Department’s sponsored events or programs.
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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 Date
Goal A: Serve as a comprehensive information source Ongoing
about Palo Alto trees.
Goal B: Educate and motivate Palo Alto residents to plant, care for, Ongoing
and celebrate trees.
Goal C: Maintain an organization with a credible, professional identity Ongoing
and high public visibility in support of the Palo Alto urban forest.
Goal D: Assist the City of Palo Alto in its planning and performance of Ongoing
routine urban forestry programs on an ongoing basis and with
special projects associated with the UFMP.
Goal E: Advocate for Palo Alto’s urban forest. Ongoing
Goal F: Conduct an assessment of the health of recently planted street Ongoing
trees and assist with a locally-sourced carbon credit project.
Goal G: Administer the Utilities Department’s Right Tree Ongoing
in the Right Place Program (RTRP).
Special Projects:
Goal D.3: Implement a strategy to increase the number of trees in 1 Year
south Palo Alto by 1,000 over the next three years, including at least
three community tree plantings. This contract includes funding for 230
CONSULTANT-planted trees.
Goal D.4: The primary goal of the Great Oak Count is to update the Ongoing
Oakwell Survey in order to assess changes in Palo Alto’s native oak
population since 1997, evaluate their health, recommend actions to
improve conditions, and evaluate gaps and opportunities. Engage
250 volunteers, including trained and active Survey Leaders to survey
2,250 oaks, which is 25 percent of the estimated total number of oaks.
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Goal D.5: Create a list of trees that are “preferred” and “restricted”. 1 Year
Create species selection protocols, displayed in an online tool, and
including rating of query results along the “best fit for specific site”
criterion. Create and distribute outreach materials.
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Professional Services Rev. April 23, 2020 21
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
TASK NOT TO EXCEED AMOUNT
1: Basic Services (Individual tasks detailed in Exhibit A) $58,210
• Goal A: Serve as a comprehensive information source about Palo Alto trees.
• Goal B: Educate and motivate Palo Alto residents to plant, care for, and celebrate trees.
• Goal C: Maintain an organization with a credible, professional identity and high public
visibility in support of the Palo Alto urban forest.
• Goal D: Assist the City of Palo Alto in its planning and performance of routine urban forestry
programs on an ongoing basis and with special projects associated with the UFMP.
• Goal E: Advocate for Palo Alto’s urban forest.
• Goal F: Conduct an assessment of the health of recently planted street trees and assist with
a locally-sourced carbon credit project.
• Goal G: Administer the Utilities Department’s Right Tree in the Right Place Program (RTRP).
2: Special Projects - UFMP (Individual tasks detailed in Exhibit A)
• Goal D.3 (Program 1.D.i): South Palo Alto Tree Planting. $112,300
Implement a strategy to increase the number of trees in south Palo Alto towards the CITY’s
goal of 1,000 added trees over the next three years, including at least three community tree
plantings a year. This Agreement is funded for 230 CONSULTANT-planted trees during the
term. No additional funds will be available for trees in excess of 230.
• Goal D.4 (Programs 2.A.i, 2.A.ii, 2.A.vii, 4.A.xi): The Great Oak Count. $30,000
Partial program delivery. The primary goal of the Great Oak Count is to update the Oakwell
Survey in order to assess changes in Palo Alto’s native oak population since 1997, evaluate
their health, recommend actions to improve conditions, and evaluate gaps and
opportunities. Engage 250 volunteers, including trained and active Survey Leaders to survey
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Professional Services Rev. April 23, 2020 22
2,250 oaks, which is 25 percent of the estimated total number of oaks.
• Goal D.5 (Programs 1.A.ii, 6.J.vii, 3.A.i, 1.A.iii, 6.B.iv, 1.B.i, 1.A.iv): $25,000
Preferred and Restricted Species List. Create a list of trees that are “preferred” and
“restricted”. Create species selection protocols, displayed in an online tool, and including
rating of query results along the “best fit for specific site” criterion. Create and distribute
outreach materials.
Sub-total Basic Services and projects $225,510.00
Reimbursable Expenses (if any) $0
Total Basic Services and Reimbursable expenses $225,510.00
Additional Services (if any) (Not to Exceed) $0
Maximum Total Compensation $225,510.00
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: None
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Professional Services Rev. April 23, 2020 23
EXHIBIT “C-1” SCHEDULE OF RATES
Canopy Staff
Hourly Rate $
Executive Director $ 135
Program Director $ 80
Senior Development Specialist $ 80
Development Manager $ 55
Education Manager $ 55
Community Forestry Coordinator $ 55
Community Forestry Coordinator $ 55
Program Operations Manager $ 55
Interns/ Youth Staff $ 25
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Professional Services Rev. April 23, 2020 24
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 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
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Professional Services Rev. April 23, 2020 25
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
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City of Palo Alto (ID # 11155)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 12/7/2020
City of Palo Alto Page 1
Summary Title: Approval to Increase Compensation & Extend Term of Design
Contract for the Secondary Treatment
Title: Approval of Amendment Number 1 to Contract Number C19171565
With Brown and Caldwell for Professional Design Services for the Secondary
Treatment Process Upgrade Capital Improvement Project (WQ-19001) at the
Regional Water Quality Control Plant; to add Services and Increase
Compensation by $1,500,745 for a new Maximum Compensation Not-to-
Exceed $4,424,101; and to Extend the Contract Term Through September 30,
2025
From: City Manager
Lead Department: Public Works
Recommendation
The Finance Committee and Staff recommend that Council approve and authorize the City
Manager or his designee to execute Amendment No. 1 to Contract No. C19171565 with Brown
and Caldwell (BC) (Attachment A) to increase the contract amount by $1,500,745 to provide
design engineering services beyond the original scope of the contract for the design of the
Secondary Treatment Process Upgrades Project (CIP WQ-19001), and to extend the term
through September 30, 2025. The revised total contract amount is not to exceed $4,424,101
including $4,021,911 for basic services and $402,191 for additional services.
Background
At the November 17, 2020 Finance Committee meeting (CMR 11764), the Committee
unanimously recommended Council approval and requested this staff report to include
comparison information between partner agencies on (a) the maximum flow capacity rights of
each partner agency, (b) the fixed capacity share of capital assets used in determining the share
of debt payments for capital projects, (c) the recurring annual share of the operating budget by
contributing partner agency used for determining the share of annual operating expenses and
recurring non-debt financed capital expenses, and (d) average FY2021 monthly residential
sewer utility bill and commercial sewer rates for partner agencies as well as some neighboring
agencies. This comparison information is included in Attachment B.
City of Palo Alto Page 2
The Regional Water Quality Control Plant’s (RWQCP or Plant) existing secondary treatment
process (biological treatment) consists of biotrickling filters followed by an activated sludge
process in four aeration basins where micro-organisms break down pollutants. The two-stage
system has been in operation since 1980 to remove ammonia and other conventional
pollutants and is at the end of its useful life. Upgrades and replacement are needed to reliably
treat the wastewater while removing aging equipment and addressing new requirements for
nitrogen removal.
The San Francisco Regional Water Quality Control Board established
new nutrient regulatory requirements in 2019, limiting the total nitrogen loading discharged
from wastewater treatment plants into San Francisco Bay in 2024. The RWQCP’s current
wastewater treatment system is an aerobic nitrifying process whereby microbes change the
ammonia and organic nitrogen in the wastewater into oxidized nitrogen (nitrate), but the
current system does not remove nitrogen. Too much nitrogen in the plant’s effluent could lead
to harmful algal blooms, which can release toxins to the Bay and result in insufficient dissolved
oxygen in the water to support aquatic life. The State’s regulatory update requires some
nutrient removal prior to discharge into the Bay.
The Secondary Treatment Process Upgrades project design criteria are based on the new
2019 nutrient loading requirements, an anticipated State target of 15 mg/L of total nitrogen,
field inspections, preliminary design evaluations, RWQCP staff recommendations, the
recommendations of the 2018 Secondary Treatment Evaluation Technical Memorandum,
and the 2012 Long Range Facilities Plan (LRFP). Upgrading the secondary treatment
stage to a process that removes harmful nitrogen will be accomplished with anoxic and aerated
zones in existing aeration basins. The project will improve final water quality, ensure the plant
continues to meet effluent discharge permit limits, and allow for ultimate decommissioning of
the aging biotrickling filters and other aging equipment.
The upgraded secondary treatment process was initially proposed to decommission the
biotrickling filters and convert the aeration basins to a Modified Ludzack-Ettinger (MLE)
activated sludge process (or similar process). This process is space-efficient and cost-efficient
and allows all biological treatment to take place within the four aeration basins so that
biotrickling filters can be decommissioned. However, preliminary designs revealed that the MLE
system would have required a second major project in less than ten years to install a fifth
aeration basin because the MLE’s process treatment capacity in four aeration basins would be
exceeded in 2035, with no ability to take one aeration basin out of service for essential
maintenance without violating state rules for effluent discharges. As the preliminary design
work proceeded, it became apparent that a better treatment technology had recently emerged
(i.e., the Membrane Aerated Biofilm Reactor (MABR) process). The MABR process has greater
efficiency, eliminating the need for the future fifth aeration basin as well as allowing essential
maintenance without violating state regulations. The project design scope includes both a
process upgrade to remove nitrogen and replacement of equipment which has exceeded its
design life. The upgrade will allow the RWQCP to meet both the 2019 regulatory requirements
City of Palo Alto Page 3
as well as an anticipated State target of 15 mg/L of total nitrogen. The Request for Proposals
(RFP) for C19171565 was prepared with the best information available at the time of
solicitation for design services. The design contract with BC was approved by Council in October
2018 (CMR ID#9485). Since award, BC has performed field survey work, equipment condition
assessments, process design modeling, preliminary design calculations, equipment sizing, and
prepared plans. It was through this process that the MABR process was found to be superior for
the long run, although the shorter-term design and construction costs are higher than for the
process originally envisioned.
WQCP Capital Program Overview
This project is a key component of the overall investment in the critical infrastructure to
provide wastewater treatment to the City and its partners. The Plant’s core infrastructure was
built in 1972 with tanks, pumps, large pipes, industrial buildings, acquisition of additional land,
and complex mechanical and electrical systems. The 1972 Plant had major capital additions in
1980 and 1988. From 1999 to the present, staff has managed an ongoing $2 to $3 million
annual capital improvement program (CIP) reinvestment in aging infrastructure funded on a
recurring basis through the partner agreements; the recurring capital budget is increased by an
annual inflation index first approved by partner agencies in 1998. Key projects are listed below
with major debt financed/grant funded projects in 1972, 1980, 1984, 1988, 1999, 2009, 2010,
and 2019. Debt service for larger projects financed through loans or bonds is provided through
amendments to the partner agreements. Typical useful life of Plant infrastructure is 30 years for
mechanical and electrical gear with most of the Plant at or beyond its useful life. The capital
program is a critical commitment to reinvestment in aging infrastructure.
Completed Capital Work 1972 – 2020
Project Funding
Expense
(million $)
1972 Regional Water Quality Control Plant Federal Grants/Bonds $11.2
1980 Advanced Wastewater Treatment Facility Federal Grants/Operating $10.3
1984 Dewatering and Cogeneration Project Utility Revenue Bond $1.1
1988 Capacity Expansion Project Utility Revenue Bond $9.7
1984 – 1998 miscellaneous projects (note 1, 2) Recurring Capital Budget $7.8
1999 – 2020 miscellaneous projects (note 1, 3) Recurring Capital Budget $49.7
1999 Sludge Incinerator Rehabilitation Revenue Bond $7.5
2009 Recycled Water Pipeline California SRF Loan $19.4
2010 Ultraviolet Disinfection Facility California SRF Loan $8.6
2019 Sludge Dewatering/Truck Loadout Facility California SRF Loan $29.2
Subtotal $155
Note 1: Per audited financial statements
Note 2: CIP could not exceed 2% of total capital investment of Plant 10/10/68 to 6/30/99
Note 3: Recurring CIP allowance of $1.9 million established in base year FY99; annual CPI
increase of recurring amount increased to $3.3 million in FY21
City of Palo Alto Page 4
Anticipated capital work was detailed in the 2012 Long Range Facilities Plan (LRFP), with
recommended projects expected to cost between $315 to $392 million (2015 dollars). The LRFP
was accepted by the City Council on July 2, 2012 (CMR #2914). Implementation of the LRFP is
managed by a CIP team of staff engineers, support staff, and a program manager (Woodard &
Curran) (see CMR #11612). Near-term project work commenced and is listed below with latest
project costs and status.
Current Capital Work In-Progress
Project Status
Expected
Funding
Expense
(million $)
Primary Sedimentation Tanks
Rehabilitation and Equipment Room
Electrical Upgrade Project
Awarding
Construction SRF Loan $19.4
Outfall Pipeline Rehabilitation 100% Design /
FAA Permitting SRF Loan $11.1
Secondary Treatment Upgrades 30% Design
Complete
SRF Loan /
USEPA Loan $128.5
Technical Services Building Advanced
Planning Revenue Bond $57.0
Advanced Water Purification System Awarding Design Valley Water $20.0
Headworks Facility Budgeted SRF Loan $48.0
Projects in Progress Varies Operating
Capital Budget $9.2
Subtotal $293
The needed Plant infrastructure investment requires both the recurring CIP funding as well as
debt-financed instruments for larger projects. The 10-year financial forecast is shown below.
The 1999 revenue bonds will retire in FY2024. Significant new annual debt service (for the
above listed projects) will commence at various times over the next ten years as new capital
improvements are realized.
City of Palo Alto Page 5
Discussion
Additional design services are required to convert to the MABR process, meet the City’s latest
design standards, and integrate the new design into the existing process through complicated
construction and operation phasing at an operating plant. The amendment includes an
increased contract amount of $1,500,745 and the additional time to perform the work. These
additions are summarized in Items A – F below:
Item A: Additional Structural Engineering. City policy requires new critical
infrastructure to be elevated above sea level rise projections per Palo Alto's Sea
Level Rise (SLR) Adaptation Policy (CMR ID#9576) approved by Council March 18,
2019. New equipment, including a Return Activated Sludge (RAS) Pump Station, an
Electrical Facility, and a Standby Emergency Diesel Power Generator will be
elevated on new concrete pads, complete with access platforms, stairs, and
guardrail. The City’s SLR Policy was adopted after issuance of the original RFP. The
additional engineering fee provides services to address this need.
Item B: Engineering Design for a New Electrical Facility and Standby Generator.
Though it was hoped existing spaces for power distribution equipment could be
City of Palo Alto Page 6
repurposed for low cost, predesign studies indicated the impracticality of installing
new equipment in both the existing Aeration Basin Blower Room and the
biotrickling filter process electrical room. These rooms fail several building code
requirements for new construction. A new Electrical Facility is needed to house
power distribution equipment. This design will include a new electrical load center
to provide unit process power from the Plant’s 12,470-volt power distribution
system. The increased electrical load from the improved treatment process
requires a new, larger, 2-MW Standby Generator to replace the existing 22-year
old 1-MW standby generator, which is also at the end of its useful life. The original
engineering fee did not include services for this electrical design.
Item C: Engineering Design for a New RAS Sludge Pump Station. During
preliminary design, consideration was given to the complexity of trying to operate
the existing Sludge Pumps, while making critical piping tie-ins, and re-routing
process pipe to several new locations. Considerable temporary bypass pump and
piping systems are required for Plant Operations during the construction phase.
Due to increased flow requirements of the new process, the existing RAS Sludge
Pumps are now undersized to meet the flow requirements, and these pumps are
past their useful life and should be replaced. Building a new RAS Sludge Pump
station allows Operations to continue treatment and makes construction feasible
for the contractor, while eliminating the need for the contractor to provide large
temporary bypass pump and piping arrangements. A new RAS Sludge Pump
Station was not originally included in the design contract.
Item D: Process Redesign Effort to Incorporate MABR. After determining that
treatment capacity of the aeration basins will reach their limits in about 2035, BC
conducted a Feasibility Assessment to evaluate if MABR would be a viable
alternative to increase treatment capacity. Preliminary findings and additional
process modeling with MABR equipment determined that biological treatment
could be achieved through 2054 without the need to construct the expensive fifth
aeration basin, thereby saving considerable design and construction costs.
Furthermore, due to the efficient oxygen transfer mechanism of the MABR
equipment, this process improvement is anticipated to consume less blower air
and result in approximately 13% less electrical energy consumption compared to
the energy use associated with the operation of a complex and large fifth aeration
basin. Most importantly, MABR equipment is modular, allowing for phasing future
capital capacity upgrades (after about 2044) only if needed based on pollutant
demands, thereby saving the City significant capital expenses if pollutant loads do
not increase as anticipated.
Staff engineers as well as independent outside consultants (i.e., Woodard & Curran
as CIP program manager) evaluated the scope of work and the cost-effectiveness
of the MABR process equipment through a Feasibility Assessment and the revised
City of Palo Alto Page 7
Treatment Process Basis of Design Technical Memorandum. The MABR equipment
is proprietary, made by a company with a proven track record in developing new
technology to improve wastewater treatment. Staff reviewed performance reports
for new MABR facilities and visited a pilot unit at the Hayward Water Pollution
Control Plant, both of which had good performance results. While MABR
contributes to an increased design and construction cost in the near term, staff
recommends the reliable treatment performance, reduced energy consumption,
and improved life cycle cost for the project with MABR.
The original design contract did not include research into the MABR product,
additional process modeling, developing the Feasibility Assessment, and structural
design for support structures and hoist systems associated with the MABR
equipment.
Item E: Engineering Design Upgrade of the Lift Station. During preliminary design,
it was found that the reconfiguration of the aeration basins has added additional
water headlosses, to the extent that the wastewater cannot flow by gravity from
the upstream process into the aeration basins. Previous planning work assumed
simple replacement of the three existing lift pumps with three new lift pumps for
high wet-weather flows. Upon further review of the Plant’s hydraulics, two
additional pumps are needed to convey the flow, larger discharge pipes are
required, and a different pump and piping configuration is required. Additional
pumps and piping re-design were not originally included in the design contract.
Item F: Miscellaneous Design Effort. New equipment requires new space. The
equipment and piping in an existing activated sludge pump room will be
demolished. The room will be repurposed for new equipment. The process design
is based on some key equipment manufacturer’s components, and BC will provide
specifications and pre-selection of these components through negotiated fixed
pricing guarantees for the installation contractor to prevent undesirable
substitutions. These items were not part of the original design contract.
The MLE process option originally proposed was estimated to cost $35 million in 2017 dollars.
Process modeling of the MLE treatment process found that capacity would be reached in about
2035, only about ten years after the upgraded facility startup. By about 2035, a fifth aeration
basin along Harbor Road would be required (at an estimated cost of $41.5 million in 2020
dollars). While the combined cost of these estimates is $76.5 million, it is important to note
that the 2017 estimate for the MLE process did not include a number of costly additions that
were determined to be necessary as design progressed to 30% on the MABR process, which
include new waste activated sludge pumps, new return activated sludge pumps with a new
elevated pump station structure, and a new electrical facility and standby generator on
elevated structures. These additions would drive the $76.5 million much higher if the earlier
estimate were to be reevaluated.
City of Palo Alto Page 8
The 30% design opinion of the most probable construction cost estimate for the MABR process
project is $97 million in 2020 dollars. That cost includes upgrading the secondary treatment
process with MABR technology, decommissioning the biotrickling filters, replacing many
equipment components, and takes into account the additional temporary construction
measures that will need to be undertaken by the contractor to perform the work, while
maintaining the ability to keep the plant operating. Process intensification, which is adding
more equipment into a smaller footprint to accomplish more treatment, prolongs the structure
and equipment design life, ultimately reducing life cycle capital improvement cost as well as
operating and maintenance expenses. It also eliminates the need for a fifth aerator along
Harbor Road, adjacent to the Baylands Preserve.
Timeline
BC has just completed the 30% design and has been authorized to continue working on
completion of the 60% design. The detailed design will continue upon Council’s approval of this
amendment and is expected to be completed 10 months after Council approval. BC will also
provide engineering services during solicitation, bidding, and construction of the project,
accounting for the need to extend the contract into 2025.
Resource Impact
The revised not-to-exceed contract amount will be $4,424,101 including $4,021,911 for basic
services and $402,191 for additional services. This is a multi-year contract over the course of
design and through the completion of construction. The funding for this amended contract will
be allocated from the Wastewater Treatment Enterprise Fund Capital Improvement Program
Project, WQ-19001, contingent upon funding appropriation approved by the Council as part of
future annual budget cycles. Staff is planning to apply for a State Revolving Fund loan, a USEPA
loan, and possibly pursue a revenue bond as sources of funding for the design contract, and
future construction and construction management contracts. As the design progresses, the
estimated project cost is expected to be adjusted, especially as construction costs become
better defined in the future as the design is more complete. Budget adjustments will be
brought forward to Council through the annual budget approval process.
Because of the City’s budget deficit for FY 2021, COVID-19 shelter-in-place orders, and other
related measures, staff approached BC about a potential reduction in their design fee for this
Contract Amendment. In the spirit of cooperation and sharing the burden, BC agreed to reduce
their fee by about $86,000 on the base services for the Contract Amendment. This amounts to
close to a 6% cost reduction, achieved primarily by removing the hourly labor rate escalation on
the added work expected to occur after 2020. BC did not reduce the scope of work or the
estimated labor hours to complete the contract work. It should also be noted that the proposed
design costs are significantly lower than the common figure of about 10% of estimated
construction costs.
This Contract for professional services permits the City to suspend, in whole or in part, or
City of Palo Alto Page 9
terminate the Contract for convenience (with or without cause) by providing written notice by
the City Manager. In the event the City finds itself facing a challenging budget situation, and it
is determined that City resources need to be refocused elsewhere, the City can terminate for
convenience. Other options include termination due to non-appropriation of funds or
amending the contract to reduce the cost, for example, by reducing the scope of work.
Palo Alto treats the combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain
View, Stanford University, and the East Palo Alto Sanitary District. Palo Alto’s share of this
project is 38.16% and the other five agencies’ share is 61.84%, based on the fixed capacity
established in partners’ agreements. The Secondary Treatment Upgrades Project and the
associated costs were discussed with the partner agencies at a July 23, 2020 and November 12,
2020 Partner’s meeting. Partners understand the project and are not opposed to the project.
Agreements with partner agencies have been amended to cover this design contract cost.
Policy Implications
This recommendation does not represent any change to existing City policies.
Stakeholder Engagement
This project is part of the Plant’s major capital improvement program funded by Palo Alto and
its five additional partner agencies. The five partner agencies are regularly updated about both
the need for and the progress on wastewater treatment capital work. Updates are provided
each year at an annual meeting and at other periodic meetings established to inform partner
agency staff about the major capital improvement program. With respect to Palo Alto itself, the
open meetings on the budget process serve as the main vehicle for engaging the community on
both new projects such as this and associated rate impacts.
Environmental Review
The project is exempt from review under the California Environmental Quality Act (CEQA)
pursuant to CEQA Guidelines Section 15301, subsections (b) and (e)(1), Existing Facilities, as it
involves the repair and maintenance of an existing publicly owned utility used to provide
sewerage treatment services with a minor addition to an existing building and no or negligible
expansion of use.
Attachments:
Attachment A: Contract Amendment B&C Final
Attachment B Partner Capacity, Share, and Rate Comparisons
Vers.: Aug. 5, 2019
Page 1 of 37
AMENDMENT NO.1 TO CONTRACT NO. C19171565
BETWEEN THE CITY OF PALO ALTO AND
BROWN AND CALDWELL
This Amendment No. 1 (this “Amendment”) to Contract No. C19171565 (the “Contract”
as defined below) is entered into as of October 19, 2020 (“Effective Date”), by and between the
CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and BROWN AND
CALDWELL, a California corporation, located at 201 N. Civic Drive, Suite 115, Walnut Creek, CA
94596 (“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 by and between the Parties hereto
for the provision of design and engineering services to upgrade its existing two-stage secondary
treatment system at the Regional Water Quality Control Plant (RWQCP) (the “Project”), as
detailed therein.
B. The upgrade to the secondary treatment process was initially proposed to
decommission the biotrickling filters and convert the aeration basins to a Modified Ludzack-
Ettinger (MLE) activated sludge process or similar process. However, as the preliminary design
proceeded, it became apparent that a better treatment technology had recently emerged, the
Membrane Aerated Biofilm Reactor (MABR) process. Additional design services are required to
convert to the MABR process, meet the City’s latest design standards, and integrate the new
design into the existing process through complicated construction and operation phasing at an
operating plant.
C. The Parties now wish to amend the Contract to expand the scope of service to
include additional, unanticipated engineering services related to the Project, extend the time for
performance by 54 weeks (from 210 weeks to 363 weeks), and increase the maximum
compensation by One Million Five Hundred Thousand Seven Hundred Forty-Five ($1,500,745),
from Two Million Nine Hundred Twenty-Three Thousand Three Hundred Fifty-Seven Dollars
($2,923,357) to Four Million Four Hundred Twenty-Four Thousand One Hundred One Dollars
($4,424,101).
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. C19171565
between BROWN AND CALDWELL and CITY, dated September 10, 2018.
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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 September 30, 2025.”
SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
“The compensation to be paid to CONSULTANT for performance of the
Services described in Exhibit “A” (“Basic Services”), and reimbursable
expenses, shall not exceed Four Million Twenty-One Thousand Nine
Hundred Eleven Dollars ($4,021,911). 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
Four Million Four Hundred Twenty-Four Thousand One Hundred One
Dollars ($4,424,101). 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. 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. The following exhibit(s) to the Contract are hereby amended or added, as
indicated below, to read as set forth in the attachment(s) to this Amendment, which are hereby
incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “A” entitled “SCOPE OF SERVICES” (AMENDED, REPLACES
PREVIOUS)
b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE” (AMENDED, REPLACES
PREVIOUS)
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c. Exhibit “C” entitled “COMPENSATION” (AMENDED, REPLACES PREVIOUS)
d. Exhibit “C-1” entitled “SCHEDULE OF RATES” (AMENDED, REPLACES
PREVIOUS)
SECTION 5. 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 6. 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.)
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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 or designee
APPROVED AS TO FORM:
City Attorney or designee
(Contract over $25k)
BROWN AND CALDWELL
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments:
Exhibit “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS
Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS
Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS
Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS
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Jeff Kivett
Vice President
Grace Chow
Vice President
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EXHIBIT “A”
SCOPE OF SERVICES
(AMENDED, REPLACES PREVIOUS)
I. INTRODUCTION, BACKGROUND AND PROJECT DESCRIPTION
The City of Palo Alto Department of Public Works (City) intends to upgrade its existing
two-stage secondary treatment system at the Regional Water Quality Control Plant
(“RWQCP”, or the “Plant”), which consists of fixed film reactors (FFRs) followed by
activated sludge aeration basins. The upgrade will be to a biological nutrient removal
(BNR) process that ensures the capability of meeting NPDES permit requirements during
the entire construction phase, startup, and commissioning. This project will
decommission the aging FFRs and will provide operation and maintenance (O&M)
enhancements upon the upgrade of the entire secondary treatment process, thereby
preparing the City for future, more stringent, regulatory changes.
II. SCOPE OF SERVICES – GENERAL
CONSULTANT shall provide engineering and design services for the completion of the
Secondary Treatment Process Upgrade Project (“Project”). This section describes the
nature and scope of those engineering and design services.
A. CONSULTANT, serving as the Engineer of Record, shall provide engineering
services during all phases of the Project from preliminary design, design, bid
period services, engineering services during construction, and support during
commissioning and start-up.
B. CONSULTANT shall design the system such that it can be constructed without
interruption to the current treatment operations, except as allowed under special
circumstances for piping tie-ins or electrical outages. Pumped by-pass operations
will be required by the City’s construction contractor, to allow the project
construction work to take place while the Plant remains in operation.
C. CONSULTANT shall provide overall coordination of engineering (including civil,
structural, mechanical, electrical, instrumentation and controls, etc.) and other
disciplines required for the successful development of a consolidated set of
detailed design documents consisting of specifications, drawings and opinion of
probable cost that will result in a comprehensive construction bid package. The
main features of scope of design and engineering services for the process
improvements shall include, but not be limited to, the following:
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• Confirmation or update of flow and load projections through 2054, based on
population projections provided by the City.
• Design the BNR process to re-configure the aeration basins for a 3-step feed
process.
• Design the 3-step feed process to incorporate Membrane Aerated Biofilm
Reactor (MABR) equipment, such to intensify the process and increase
capacity to avoid building more infrastructure through 2054.
• Design new Return Activated Sludge (RAS) pumping station with RAS
chlorination capability.
• Design new electrical load center (Secondary Unit Substation) and electrical
building(s) to house new MCCs and VFDs serve secondary treatment process
to replace the existing electrical switchgear which is beyond its useful life.
• Support City through preselection of certain equipment components
(Diffusers, MABR) to be included in the Project.
• Redesign / upgrade standby power systems.
• Redesign / upgrade Intermediate Lift Station (ILS).
• Repurpose existing RAS / WAS Pump Room to demolish the existing RAS
Pumps and add new pulsed bubble aeration blowers and air receiver tanks.
• Add measures to elevate new infrastructure to adapt to sea level rise to
comply with the City’s recently adopted Sea Level Rise Policy.
• Development of the plant’s hydraulic grade line for daily flow conditions and
peak flow conditions with necessary capital equipment to ensure grade line
can be met.
• Review and update the hydraulic profile of the entire RWQCP.
• Assessment of existing blowers to evaluate remaining life and capacity and
design a new blower system to replace the existing.
• Design of new WAS pumps to meet the pumping requirements of the process
modifications.
• Comparative evaluation of different types of baffle walls.
• Comparative evaluation of various types of blowers, air diffusers, and mixer
options.
• Type of carbon addition options and planning for future carbon addition
should it be required.
• Coring and non-destructive testing techniques of the concrete in the existing
aeration basins.
• Recommendations for repair and rehabilitation of the concrete and structural
elements.
• Evaluation of options for phosphorus removal solutions should phosphorus
regulations be implemented.
• Evaluation of operational improvements needed for peak wet weather flows.
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• Replacing or upgrading associated mechanical components including but not
limited to blowers, piping, mud valves, influent and effluent flow control, and
miscellaneous valves and gates.
• Develop specifications and the scope of FFR decommissioning for use by Plant
Operations staff.
• Development of a phasing plan for upgrades associated with schedule of
increasing flows and loads, and target dates for nutrient requirements.
• Development of control strategies.
• Development of construction sequencing requirements.
• Update of Standard Operating Procedures (SOPs) for the O&M Manual for the
new process modifications.
• Technical support of regulatory and financial coordination, as required (e.g.,
technical documents related to BNR efficiency to establish early action credit
for Palo Alto with future RWQCB nutrient watershed permits, SRF loan
application and / or WIFIA application, energy efficiency alternative funding
applications, CEQA+ documents, etc.).
• Determination, through BioWin modeling, if the secondary clarifiers will be
overloaded due to the changes associated with process upgrade and
recommendations for potential improvements, if any, to improve
performance of the four (4) square clarifiers.
• The potential effects on the process from digester return flows, should
digesters be added at some point in the future.
• Wastewater characterization and field testing – development and execution
of a sampling plan, and analysis / evaluation of the data.
• CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND CLEAN WATER
STATE REVOLVING FUND (SRF)
CONSULTANT shall assist CITY in documenting the environmental clearance
under the California Environmental Quality Act (CEQA) prior to the
construction phase of this project. The City currently anticipates that the
project will be categorically exempt under CEQA Guidelines Section 15301(b),
Existing Services, as it involves the repair of an existing publicly-owned utility
used to provide sewerage services. Moreover, the construction work planned
for this project is within the RWQCP fence line and is anticipated to have no
significant environmental impacts to habitat or the public.
Prior to the SRF application process, the City of Palo Alto Planning Department,
on behalf of the City of Palo Alto as the lead agency under CEQA, will
determine whether the Project’s CEQA clearance is a categorical exemption or
whether an Initial Study (IS) will be necessary to evaluate any possible
significant impacts. If the City requires preparation of an IS, CITY may authorize
CONSULTANT to prepare the IS and related CEQA documents (i.e., MND or
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EIR), subject to negotiations between the parties on modifications to the scope
of work and schedule for performance, and an amendment to this Agreement.
It is to be noted that CITY requires CONSULTANT to engage a sub-consultant
specializing in preparing CEQA + documentation, to perform the CEQA Cat Ex
or IS / MND related tasks on City projects.
For the construction phase of this project, the City seeks to obtain financing
through the State Water Resources Control Board (SWRCB) CA Clean Water
State Revolving Fund (CCWSRF) or (SRF) Program. In the case of SRF
application, the City will be the lead agency for planning and submitting the
SRF application package -- which includes General, Financial Security,
Technical and Environmental packages – to the SWRCB Division of Finance
Assistance (DFA). If an SRF loan cannot be obtained, the City intends to finance
the project through a revenue bond.
III. PROJECT BASIS OF DESIGN
The basis of design is to upgrade the existing two-stage secondary treatment system to a
BNR process while including provisions for future expansion needs. The design of the
secondary treatment upgrades should meet a target of 15 mg/L for total nitrogen under
2054 flow and load conditions. Designs that can exceed this limit for marginal additional
cost are encouraged. Upgrades are envisioned to be phased to meet regulatory schedule
as well as flow and load needs. Current and projected future flows and loads are presented
in Table 1 below.
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Table 1. Flow and Load Projections
Current (2012-
2017 Average)
2054 Projections
(to be Provided during Preliminary
Design [Task 1])
Flows
Per Capita ADWF, gpcd 18.6
ADWF, mgd 20.2
AAF, mgd 23.2
ADMMF, mgd 81
Loadings
ADW BOD, ppd 49,869
ADW TSS, ppd 45,073
ADW NH3-N, ppd 6,043
MM BOD, ppd 55,666
MM TSS, ppd 51,755
MM NH3-N, ppd 6,527
Concentrations
ADW BOD, mg/L 322
ADW TSS, mg/L 291
ADW NH3-N, mg/L 39.1
MM BOD, mg/L 288
MM TSS, mg/L 268
MM NH3-N, mg/L 33.8
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IV. SCOPE OF SERVICES (BASIC SERVICES BY TASK)
CONSULTANT’s scope of work shall include, but not be limited to, the tasks described in
the following sections. All deliverables including drawings, graphics, schedules, reports
and technical memoranda shall be provided in hard copy and in their original software
version (Excel, Word, AutoCAD, PowerPoint, etc.) and PDF version (if requested by the
City). The City will have ownership rights and rights to use any of the documentation
developed under this Project.
1. Task 1 – Preliminary Design
CONSULTANT shall perform preliminary design activities including the following:
• Kickoff meeting and workshops with RWQCP staff to define the scope of condition
assessment and discuss rehabilitation and improvement options.
• Review available record drawings and documentation including plant’s
maintenance records, Long Range Facility Plan (LRFP) and Facility Condition
Assessment (FCA) Report’s recommendations for structural rehabilitation of
aeration basins and ancillary systems. Assess and quantify needed
repairs/rehabilitation.
• Review LRFP and FCA structural rehabilitation recommendations for aeration
basins. Assess and quantify needed repairs/rehabilitation.
• Conduct visual assessments of all accessible areas
• Conduct a comprehensive field assessment of the aeration basins and supporting
structures/facilities including:
o Mechanical equipment
o Electrical equipment
o Instrumentation and controls
o Yard piping
o All concrete and metal structures associated with:
Aeration Basins
Intermediate Pump Station (IPS)
FFR
• Perform a structural analysis of the pertinent secondary treatment structures to
confirm structural integrity and identify seismic retrofit options that would be
needed.
• Develop a sampling / analysis plan for wastewater characterization, execute the
plan, and provide analysis and recommendations to further refine the design of
the treatment process to meet the future targeted regulatory limitations.
• Prepare a Preliminary Design Report which includes the following content, as a
minimum:
o Results of all field inspections, including estimates of quantities, types, and
costs of rehabilitation and repairs.
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o Evaluation of associated electrical and instrumentation systems and
recommendations for improvements and integration of new equipment.
o Recommendations for repair and rehabilitation of concrete and structural
elements.
o Update hydraulic profile for the entire plant for daily and peak flow
conditions with and without any needed wet-weather flow pump station
in operation.
o Confirm population growth projections and update flow and load
projections through 2054.
o Recommendations to meet a potential nitrogen target of 15 mg/L.
o Hydraulic analysis and evaluation of primary effluent to BNR process (i.e.
upgrade existing IPS or alternative approach).
o Evaluation and recommendation for baffles.
o Evaluation and recommendations for blowers and air diffusers and other
mechanical improvements.
o Evaluation of supplemental carbon addition options.
o Preliminary sequencing of improvements, bypasses, temporary
shutdowns, and other temporary measures needed to keep the plant
operational during the construction.
o Identify and evaluate facilities / equipment / infrastructure that enhance
operational flexibility.
o Overall schedule and phasing approach and notation of any equipment
that requires long lead times.
o 30% drawings set.
30% Design Deliverables:
• Kickoff Meeting
o Meeting Agenda
o Meeting Minutes (draft and final)
• 30% drawings set (provide in PDF and four (4) hardcopies)
• Project Initial Specification List (in CSI 2018 MasterFormat)
• 30% Design (Post Comments) Review Workshop
o Meeting Agenda and sign-in sheet
o Slide Presentation
o Meeting Minutes (draft and final)
• Pre-Design Report
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o Draft Preliminary Design Report with Recommendations – 4 hard copy
sets, 1 electronic set in pdf format and 1 electronic set in MS Word
o Final Preliminary Design Report with Recommendations – 4 hard copy sets,
1 electronic set in pdf format and 1 electronic set in MS Word
• Preliminary Cost Estimate – OPCC accuracy range of +30% / -15% conforming to
the AACE International’s standard for a Class 3 Estimate
• Preliminary Construction Schedule (presented in MS Project)
2. Task 2 – Detailed Design
CONSULTANT shall develop Design Documents (including Plans, Specifications, Schedule,
and Costs) for a MLE activated sludge process and decommissioning of the FFRs. The
design shall be based on the Preliminary Design Report and consultation with RWQCP
staff. CONSULTANT will develop 60%, 90%, and 100% design documents. CONSULTANT
shall conduct design review workshops with Plant staff at the 60% and 90% design stages
to review progress, obtain input, and confirm decisions during the design development.
All design shall go through the proper quality assurance and quality control reviews prior
to issuing to the City for review.
The design shall sequence construction such that Plant performance and operations are
maintained on a continuous basis except as allowed under special circumstances. A
construction sequence shall be established in sufficient detail which meets the RWQCP’s
ability to comply with NPDES discharge permit requirements.
General Coordination - CONSULTANT shall provide for overall coordination of engineering
(including structural, mechanical, electrical, instrumentation and controls, etc.) and other
disciplines required for the successful development of a consolidated set of detailed
design documents that will result in final construction bid document.
2.1 Site Work / Civil Design
CONSULTANT is responsible for collecting all the data and conducting all investigation that
are needed to complete the final design. Survey and review the existing site conditions.
There are multiple underground (UG) utilities such as pipes, electrical conduits, duct
banks and structures at and in the proximity of the site. NAD83 and NAVD88, are the
respective horizontal and vertical control datums used at the RWQCP.
The site is in FEMA Base Flood Zone Elevation (10.5 feet NAVD 1988). CONSULTANT shall
establish the floor elevation at 14.0-ft above sea level. CONSULTANT shall incorporate in
the design any additional pertinent requirements from the City of Palo Alto Sea Level Rise
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Policy. Incorporating the City Sea Level Rise Policy will require the finished floor elevation
of any new structures to be approximately 14.0 feet NAVD88.
2.2 Structural Design
CONSULTANT shall provide a structural design that is in accordance with all jurisdictional
requirements including the 2019 California Building Code. Seismic design requirements
shall apply to the new Electrical Building and / or canopy structure as well as non-
structural components. CONSULTANT shall include field verification of existing
infrastructure for design of proposed structural improvements under this project.
CONSULTANT shall conduct a geotechnical study at the project site to properly
characterize the soils and groundwater conditions, and develop recommendations
including foundation designs. CONSULTANT should anticipate that a pile supported slabs
are required. CONSULTANT shall evaluate if a pile supported slab foundation is the best
option or provide a more suitable solution provided the detailed geotechnical study.
2.3 Process Mechanical Design
The process design is to be performed with a Bio-Win model after performing a
wastewater characterization evaluation be obtaining samples and having them analyzed.
The design is to include equipment and structural modifications to convert the aeration
basins from a complete mix process to a 3-step feed BNR process. Modifications and new
equipment include, but are not limited to:
• Blowers
• Low Pressure Air piping
• Electric and pneumatic valves and gates
• Membrane Aerated Biofilm Reactor (MABR) modules
• RAS Pump Station
• WAS Pumps
• Upgrade of the Intermediate Lift Pump Station (IPS)
• Cutthroat Flumes
• Diffuser System
• Pulsed aeration system
• Re-purposing of the RAS / WAS Pump Room
• Motor Control Center design
• Fire Protection System design for the building(s)
• Medium Voltage and Low Voltage Power Distribution system design
• Instrumentation and Control system design
• Access platforms and stairs for accessing equipment
• Monorail systems
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• Other required ancillary systems or equipment
2.4 Mechanical Design
Mechanical design shall include field verification, process schematics, design, layout of
mechanical equipment and appurtenances, piping, and other related systems. Existing
conditions shall be field verified where possible.
CONSULTANT shall include the development of a performance specification for a
packaged fire sprinkler system for the new Electrical Building, to be purchased and
installed by the City’s Construction Contractor for the Project.
2.5 Electrical, Instrumentation, and Control System
The electrical design shall include the determination of power requirements, cable and
conduit sizing, controls, alarms, and area lighting. Existing conditions shall be field
verified. The new electrical equipment shall be above the flood zone.
CONSULTANT shall develop a design for a new electrical building constructed to house
the new Motor Control Centers. The new electrical building shall comply with City of Palo
Alto Municipal Code and other applicable regulations for fire protection.
CONSULTANT shall design the control system (PLC and SCADA) to integrate with the
RWQCP Process Control Systems Technology Standards (SCADA Standard). The SCADA
modifications shall follow the equipment standards as well as the networking standards
defined in the SCADA Standard and will provide remote screens, local and remote alarms
and data transfer to the RWQCP Administration Building and Main Operations Control
Room located in the Operations Building. Communication Network design to connect the
new PLCs / computer terminals with the existing RWQCP SCADA system shall be
coordinated with RWQCP Technology / SCADA Support Staff to define the connection
point. The new network link is to provide fiber optic communications through a new
patch panel to communicate with the RWQCP SCADA and Radio System. All equipment
located at the Administration and Operations Buildings will be integrated by the contract
control system integrator, with assistance from RWQCP Technology / SCADA support
staff.
CONSULTANT shall propose instrumentation and control equipment that is consistent
with the RWQCP Process Automation Standard and/or is readily available from local
distributors and shall be integrated within City’s existing control system. CONSULTANT
shall propose equipment from manufacturers with at least ten (10) years of experience
with a proven track record in similar environments and duty conditions within the United
States; for package systems, these requirements shall be fulfilled to the extent possible.
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CONSULTANT shall include in the design a new standby emergency generator with an
automatic transfer switch, sized to power the equipment in the Blower Room, RAS / WAS
Pump Room, Equipment Room, and the Operations Building after a power failure.
CONSULTANT shall include process and analytical instrumentation for monitoring and
control over the complete process train. All instruments shall provide a local readout with
a signal output to the PLC and SCADA control screens.
2.6 CEQA and SRF Documentation
Although not currently anticipated, it is possible that an Initial Study/Mitigated Negative
Declaration (“IS/MND”) or other CEQA document will be required to be prepared for this
Project. CONSULTANT shall engage a sub-consultant, specializing in preparing CEQA Plus
documentation to prepare the Categorical Exemption related documents or other CEQA
document (i.e., IS/MND) as directed by the City.
If the City determines that the Project requires an Initial Study, upon request of CITY,
CONSULTANT will propose a scope of services and budget for the CEQA subconsultant’s
effort to perform this task.
In addition, should the Project funding include a State Revolving Fund (SRF) loan,
CONSULTANT through its CEQA subconsultant shall prepare a CEQA document (CatEx or
MND) meeting State requirements to be included as part of the loan application package.
For information purposes, for the construction phase of this project, the City intends to
seek financing through the State Water Resources Control Board (SWRCB) CA Clean Water
State Revolving Fund (CCWSRF) or (SRF) Program. In the case of SRF application, the City
will be the lead agency for planning and submitting the SRF application package -- which
includes General, Financial Security, Technical and Environmental packages – to the
SWRCB Division of Finance Assistance (DFA). If an SRF loan cannot be obtained, the City
intends to finance the project through a revenue bond.
60% Design Deliverables:
• 60% Design (Post Comments) Review Workshop
o Meeting Agenda and sign-in sheet
o Slide Presentation
o Meeting Minutes (draft and final)
• 60% drawings set (provide in PDF and four (4) hardcopies)
• 60% Specification List (in CSI 2018 MasterFormat)
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90% Design Deliverables:
• 90% Design (Post Comments) Review Workshop
o Meeting Agenda and sign-in sheet
o Slide Presentation
o Meeting Minutes (draft and final)
• 90% drawings set (provide in PDF and four (4) hardcopies)
• 90% Specification List (in CSI 2018 MasterFormat)
• Cost Estimate – OPCC accuracy range of +15% / -5% conforming to the AACE
International’s standard for a Class 1 Estimate
• Construction Schedule (presented in MS Project)
100% (FINAL) Design Deliverables:
• 100% drawings set (provide in PDF and four (2) hardcopies)
• 100% Specification List (in CSI 2018 MasterFormat)
• Cost Estimate – OPCC accuracy range of +10% / -5% conforming to the AACE
International’s standard for a Class 1 Estimate
• Final Construction Schedule (presented in MS Project
3. Task 3 – Bid Period Services
CITY will assemble and issue the bid packages for solicitation for a construction
contractor. Assume a 6–month duration between the 100% Design Deliverable to award
of the Construction Contract.
Services during Bidding will include the following:
• CONSULTANT shall assist CITY in preparation of construction bid packages. CITY will
assemble and issue the bid packages. CITY has standard front-end specifications that
will be issued as part of the construction bid package. CONSULTANT will review the
front-end specifications to ensure that there are no conflicts between the front-end
specs and Detailed Design specs.
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• CONSULTANT shall provide responses to Request for Clarification (RFC) from
prospective bidders.
• CONSULTANT shall assist the City with preparation of Project addenda.
• CONSULTANT shall attend and assist the City at the pre-bid conference and the walk
through.
• CONSULTANT shall prepare conformed design package (drawings and specifications)
incorporating information issued as addenda and Responses to RFC during the bid
period.
Task 3 Deliverables:
• Response to Request for Clarifications on Bid Package
• Project Addenda
• Pre-Bid Conference (Agenda and materials, meeting minutes)
• Conformed specifications – 2 hard copies, 1 digital copy in PDF and 1 MS Word
format
• Conformed drawings – 2 hard copies, 1 digital copy in PDF format, and 1 copy in
AutoCAD format
4. Task 4 – Engineering Services during Construction
During construction phase, estimated to take up to 24 months, CONSULTANT shall
provide the following services:
4.1 Submittal Reviews
CONSULTANT shall review submittals from the construction contractor for conformance
with the construction contract documents. CONSULTANT shall review and return the
submittal comments to the City within fourteen (14) calendar days. CONSULTANT has
indicated a total of 275 submittal reviews are anticipated for the project.
4.2 RFI Responses
CONSULTANT will prepare written responses to Requests for Information (RFIs) submitted
by the construction contractor. CONSULTANT shall review, comment, and return the RFI
responses within seven (7) calendar days. CONSULTANT has indicated a total of 375RFIs
and the responses are anticipated for the project.
4.3 Change Order Reviews
CONSULTANT will review and validate the Contract Change Order requests submitted by
the construction contractor for accuracy and correctness, as requested by the City.
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CONSULTANT has indicated a total of 45 change order reviews could be expected for the
project.
4.4 Start-Up Assistance
CONSULTANT shall provide technical support during testing, start-up and commissioning
of the new treatment process. CONSULTANT shall assist the City in monitoring,
documenting, and/or validating any testing required by permitting agencies.
CONSULTANT shall indicate the total number hours for technical field services during
testing and start-up.
4.5 As-Built Review / Record Drawings
CONSULTANT shall review once a month as-built or marked-up drawings and documents
maintained by the City’s construction contractor during construction. Upon construction
completion, CONSULTANT shall prepare consolidated record drawings and submit them
to the City. The record drawings shall consist of annotated contract drawings and
electronic files showing changes in design and construction. CONSULTANT shall provide
two (2) hardcopies (one full size and one half-size), one (1) electronic copy in PDF format,
and one (1) electronic copy in AutoCAD 3D format to the City.
4.6 O&M Manual
CONSULTANT shall update the City’s Operations and Maintenance (O&M) Manual to
reflect the changes to the normal and abnormal modes of operations, equipment
additions, process control descriptions, etc. In addition, CONSULTANT shall update the
City’s Standard Operating Procedures (SOPs) Manual to reflect the changes to the normal
and abnormal modes of operations, equipment and process descriptions and process
control descriptions. CONSULTANT shall provide one (1) hard copy and one (1) electronic
copy in PDF and Microsoft Word formats to the City.
Task 4 Deliverables:
• Submittal review comments
• RFI responses
• Contract change order review comments, as needed
o Record drawings – 1 hard copy (full size and half-size), 1 digital copy in PDF format, 1
copy in AutoCAD format
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• Updated O&M Manual for upgraded facilities - 1 hard copy (full size and half-size), 1
digital copy in PDF format.
5. Task 5 – Project Management
CONSULTANT will provide a competent project manager to supervise and provide
direction to each design team members including sub-consultants. CONSULTANT will
provide necessary administration, project controls, quality assurance and professional
oversight of the project. At the initiation of the Project, CONSULTANT will meet with the
City Project Manager to coordinate work. Project staffing will be maintained at acceptable
levels to keep the project on schedule, ensure continuity of information, and satisfy the
requirements of the CONTRACT.
At minimum, CONSULTANT shall deliver the following to the City Project Manager.
• Prepare a baseline project schedule with milestones, and update monthly
• Conduct monthly progress meetings with the City Project Manager
• Monitor project budget for effort versus progress and keep City Project Manager
informed of the status. Identify and mitigate potential overruns in a timely
manner.
• Submit monthly invoices, including monthly Progress Reports for payment.
• As requested, CONSULTANT will attend the construction progress meetings with
the Contractor during construction phase. Please allow one meeting per month
during the construction phase
5.1 Project Controls
CONSULTANT shall provide all necessary administration, project controls, quality
assurance and professional oversight of the project to ensure that the project remains
on schedule, within budget, ensures continuity of information, and satisfies the
requirements of the CONTRACT. CONSULTANT shall prepare and distribute a Project
Management Plan to include schedule, budget, roles, contracts and procedures.
CONSULTANT shall prepare and submit monthly invoice packages to the City. The City
prefers processing CONSULTANT pay requests that cover one calendar month.
Monthly invoice packages are to include a progress report documenting progress. At
least, the report shall include the progress by each task, the budget status (authorized
amount, current billing, billed to date, previously billed, amount remaining, and
percent spent), outstanding issues, potential changes, project schedule and schedule
impacts. CONSULTANT shall identify and mitigate potential budget overruns.
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CONSULTANT shall prepare, maintain and update project schedule for City’s review and
comments, at least, on a monthly basis. At minimum, CONSULTANT shall perform or
deliver the City Project Manager the following:
• Prepare a baseline project schedule with milestones, and update monthly
• Conduct monthly progress meetings with the City Project Manager
• Monitor project budget for effort versus progress and keep City Project Manager
informed of the status. Identify and mitigate potential overruns in a timely manner.
• Submit monthly invoices, including monthly Progress Reports for payment.
• Conduct team meetings within the consulting firm to review progress, coordinate
evaluations and identify information needs
• Disseminate information to the design team
• Prepare design submittals
• Manage the project budget
• Manage the project schedule
• Manage sub-consultants
• Manage QA / QC team
5.2 Project Meetings
CONSULTANT shall hold an in-person meeting at the initiation of the Project (Kick-Off
Meeting), with the City Project Manager and City staff to discuss overall project
coordination, data collection, and project schedule. CONSULTANT shall provide meeting
attendees with an agenda seven (7) calendar days in advance of the date of the meeting.
BROWN AND CALDWELL shall provide meeting attendees with summary minutes and
electronic copies of any supplemental materials used during the Kick-Off Meeting no later
than fourteen (14) calendar days from the date of the meeting.
CONSULTANT shall conduct design review meetings at the 30%, 60%, and 90% design
points as noted under Tasks 1 and 2 Deliverables. CONSULTANT will provide an agenda
three (3) calendar days in advance of the date of the meeting. CONSULTANT will compile
and distribute informal meeting minutes following Project Progress Meetings no later
than seven (7) calendar days from the date of the meeting.
CONSULTANT shall conduct remote (via phone or web conference services) Project
Progress Meetings with City once a month. The frequency of Project Progress Meetings
can be decreased subject to City approval. CONSULTANT will provide an agenda three (3)
calendar days in advance of the date of the meeting. CONSULTANT will compile and
distribute informal meeting minutes following Project Progress Meetings no later than
seven (7) calendar days from the date of the meeting.
CONSULTANT shall attend in-person Construction Progress Meetings with City once a
month. CONSULTANT will compile and distribute informal meeting minutes following
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Construction Progress Meetings no later than seven (7) calendar days from the date of
the meeting.
CONSULTANT shall also participate in all Project Meetings with City and other parties as
listed under Meetings below. CONSULTANT will provide an agenda three (3) calendar days
in advance of the date of the meeting. CONSULTANT will compile and distribute informal
meeting minutes following Project Progress Meetings no later than seven (7) calendar
days from the date of the meeting.
CONSULTANT shall attend and participate in the following meetings:
• Participate in one (1) Electrical Service (Power Feed) Coordination Meeting
with City’s Electric Utilities Division
• Participate in two (2) meetings with the Palo Alto Fire Department regarding
the sprinkler system design and inspections.
• Participate in an I&C Standards Review Meeting with RWQCP Technology /
SCADA Support Staff
6. Task 6 – Wastewater Characterization
CONSULTANT will develop a test plan and coordinate with the City to conduct 10-days of
wastewater characterization sampling. Sampling results will be used to determine the
composition of the influent COD (e.g., soluble or particulate, biodegradable or
unbiodegradable fractions) and incorporated into the BioWin simulator model to help
determine design aeration demands, mixed liquor suspended solids (MLSS)
concentrations, supplemental carbon dosages for nutrient reduction (if required), and
final effluent quality. This task includes:
• Sampling, 10-days of daily composite and grab samples. BROWN AND CALDWELL will
use results from the previous diurnal sampling event to determine diurnal variations
in loading.
• The City’s influent composite sampler will be used to collect influent samples. Since
the City’s primary effluent sampler is not flow-weighted, CONSULTANT will include a
rented sampler with 12 bottles for primary effluent, so that a flow-weighted daily
sample can be manually composited. Other samples will be grab samples.
• CONSULTANT will provide a test plan and a brief technical memorandum summarizing
the sample locations and coordination issues. A pre-sampling meeting is required to
discuss the draft test plan and finalize it with the City’s input. CONSULTANT will meet
with City Lab staff to review sampling locations, bench space, and coordination with
laboratory activities.
• CONSULTANT will provide two (2) staff on the first day, but only one (1) CONSULTANT
staff will be present on each of the subsequent nine days to grab samples, conduct
filtrations, and prepare samples for pick-up by the contract lab. CONSULTANT will
provide filtration equipment.
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• During each day, one RWQCP staff member will be available to assist CONSULTANT
staff in sample collection, filtration, and preparation of samples by the contract lab.
• CONSULTANT will contract with a contract lab (Caltest) for the sample analyses.
CONSULTANT will coordinate with Caltest for sample logistics and sample bottles.
Table 2 shows the list of samples and type of analyses that are to be included in the
sampling / analyses plan.
• City will provide bench space with power and a sink for CONSULTANT staff use during
the sampling event.
• City will provide the characterization data to CONSULTANT in Excel format. City will
also provide hourly flow rates and pH and temperature data during the sampling
period.
• Results of the sampling / analyses will be incorporated into the Preliminary Design
Report.
Table 2 Summary of Wastewater Characterization Sampling
Sample Analytical Method Composite
Samples Grab Samples[e]
Raw
Influent
Primary
Effluent
Primary
Effluent
Grab
Sample
Thickener
Overflow
Scrubber
Drainage and
Belt Press
Filtrate
Unfiltered
COD SM 5220 B., C., or
D. 10 10 7 7 7
BOD SM 5210 B. 10 10 --- 7 7
TSS SM 2540 D. 10 10 --- 7 7
VSS SM 2540 E. 10 10 --- 7 7
TKN SM 4500-Norg B. or
C. 10 10 --- 7 7
TP SM 4500-P B./C. 10 10 --- 7 7
Alkalinity SM 2320 B 10 10 --- 7 7
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Filtered [b]
sCOD SM 5220 B., C., or
D. 10 10 7 7 7
sBOD SM 5210 B. 10 10 --- --- ---
sTKN SM 4500-Norg B. or
C. 10 --- --- --- ---
sTP SM 4500-P B./C. 10 --- --- --- ---
Filtered [c]
NH3 SM 4500-NH3 C. 10 10 --- 7 7
OP SM 4500-P C. 10 10 --- --- ---
Flocculated/Filtered [d]
ffCOD SM 5220 B., C., or
D. 10 10 7 7 7
Volatile Fatty Acids
VFAs (low
concentration) --- --- --- 7 --- ---
Notes:
[a] – Sampling should be performed during normal Plant operation that represents typical operation.
Samples shown as 10 are collected once per day for 10 days (including weekends). Samples shown as
7 are collected every day for the first 7 days.
[b] - Filtered through 1.2 to 1.5 micron glass fiber filter (the same as those typically used to measure
plant TSS/VSS). Filtration should occur immediately after collection.
[c] - Filtered through 0.45 micron Millipore filter. Filtration should occur immediately after
collection. Prior to filtration, filters should be triple rinsed with DI water.
[d] - Sample preparation per Mamais, D; Jenkins, D; and Pitt, P. "A Rapid Physical-Chemical Method
for the Determination of Readily Biodegradable Soluble COD in Municipal Wastewater", Water
Research, 27(1), pp. 195 - 197, 1993.
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[e] – note time of sample collection and flow at time of sample
collection
III. TIME OF COMPLETION
The project is budgeted for an estimated start date in Q3 2018, with a design duration
timeline of 85 months. CONSULTANT shall propose a timeline for completing this work in
their proposal considering completion of the final design.
It should be noted that should the construction funding be delayed from the funding
sources, the construction of the project could be delayed or temporarily halted, affecting
the engineering services during construction timetable.
END OF SCOPE OF SERVICES
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EXHIBIT “B”
SCHEDULE OF PERFORMANCE
(AMENDED, REPLACES PREVIOUS)
CONSULTANT shall perform the Services so as to complete each milestone within the number of 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. CONSULTANT shall provide a detailed schedule of work consistent with the
schedule below within 2 weeks of receipt of the notice to proceed (NTP).
Milestones Completion in Weeks Following issuance of NTP
1. Design Re-Start Meeting 02
2. Submit Draft PDR 24
3. Submit 30% Design (Final PDR) 28
4. Submit 60% Design 48
5. Submit 90% Design 60
6. Submit 100% Design (Bid Documents) 78
7. Services During Bidding 130
8. Services During Construction 363
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EXHIBIT “C”
COMPENSATION
(AMENDED, REPLACES PREVIOUS)
CITY agrees to compensate 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. 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 - (Preliminary Design) $1,259,062
Task 2 - (Final Design) $1,633,642
Task 3 - (Bid Period Services) $85,725
Task 4 - (Eng. Services during Construction) $744,695
Task 5 - (Project Management) $230,709
Task 6 - (Wastewater Characterization) $53,211
Sub-Total Basic Services: $4,007,044
Reimbursable Expenses: $14,867
Total Basic Services & Reimbursable Expenses: $4,021,911
Additional Services (Not to Exceed): $402,191
Maximum Total Compensation: $4,424,101
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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.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges are reimbursable at actual cost.
All requests for payment of expenses shall be accompanied by appropriate backup
information. Any expense anticipated to be more than $1,000.00 shall be approved in
advance by the CITY’s project manager.
ADDITIONAL SERVICES
CONSULTANT shall provide additional services only by advanced, written authorization
from the CITY. CONSULTANT, at CITY’s project manager’s request, shall submit a detailed
written proposal including a description of the scope of services, schedule, level of effort,
and CONSULTANT 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
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
Work required because the following conditions are not satisfied or are exceeded shall be
considered as additional services:
Should an Environmental Impact Report (EIR) be required under CEQA, the additional
services fund may be considered for use on this task, depending upon the estimated cost
to perform this service.
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EXHIBIT C-1 SCHEDULE OF RATES
(AMENDED AND REPLACES PREVIOUS)
I. CONSULTANT’s hourly rates for the period prior to the Effective Date of Amendment No. 1 shall be as set forth in Exhibit C-1
attached to the original Contract. The following rates shall apply from the Effective Date of Amendment No. 1.
As of the effective date of Amendment No. 1, the following hourly rates shall continue to apply to the Tasks in the Scope of
Services in Exhibit “A”:
CONSULTANT Brown and Caldwell
Level Engineering Technical/Scientific Administrative 2020 Hourly Rate 2021 Hourly Rate 2022 Hourly Rate 2023 Hourly Rate 2024 Hourly Rate
A Office/Support Services I $77 $80 $82 $85 $87
Word Processor I
B Drafter Trainee Field Service Technician I Office/Support Services II $81 $83 $86 $88 $91
Word Processor II
C Assistant Drafter Field Service Technician II Office/Support Services III $94 $97 $100 $103 $106
Drafter Accountant I
Engineering Aide Word Processor III
D Inspection Aide Field Service Technician III Office/Support Services IV $98 $101 $104 $107 $110
Engineer I
Senior Drafter Geologist/Hydrogeologist I
Senior Illustrator Scientist I Accountant II
E Inspector I Senior Field Service Technician Word Processor IV $105 $108 $111 $115 $118 Engineer II Accountant III
Inspector II Area Business Operations Mgr.
Lead Drafter Geologist/Hydrogeologist II Technical Writer
F Lead Illustrator Scientist II Word Processing Supervisor $128 $132 $136 $140 $144
Engineer III
Inspector III
Senior Designer
Supervising Drafter Geologist/Hydrogeologist III Accountant IV
G Supervising Illustrator Scientist III Administrative Manager $150 $154 $159 $163 $168
Senior Engineer
Principal Designer
Senior Construction Engineer Senior Geologist/Hydrogeologist
H Senior Engineer Senior Scientist Senior Technical Writer $172 $177 $182 $188 $193 Principal Engineer
Principal Construction Engineer
I Supervising Designer $212 $219 $225 $232 $239
Supervising Scientist
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Supervising Engineer Supervising
J Supervising Const. Engineer Geologist/Hydrogeologist Assistant Controller $244 $251 $259 $267 $275
Managing Scientist
K Managing Engineer Managing Geologist/Hydrogeologist Area Business Ops Mgr. IV $288 $296 $305 $314 $324 Chief Engineer Chief Scientist
L Executive Engineer Chief Geologist/Hydrogeologist Corp Marketing Comm. Mgr. $309 $318 $328 $337 $347
M Vice President $309 $318 $328 $337 $347
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II. AMENDMENT NO. 1 – ADDED SERVICES
Notwithstanding Section I above, for the new Tasks added through Amendment No. 1 (which
Tasks are identified below in subsection (a) of this Section, the rates in subsection (b) shall
apply as of the Effective Date of Amendment No. 1. These hourly rates shall be held constant
through the term of the Agreement, without rate escalation, per the price reduction offered
by CONSULTANT in recognition of the City’s FY 2021 budget deficit.
(a) Added Services
CONSULTANT’s scope of work shall include, but not be limited to, the tasks described
below.
• Add new return activated sludge (RAS) pumping station with RAS chlorination
capability
• Add new electrical load center and canopy structure to serve secondary treatment
process and upgrade standby power system
• Add new membrane aerated biofilm reactor (MABR) treatment process coupled
with conversion of the existing activated sludge (AS) system to a step-feed
biological nutrient removal process
• Support City through preselection of certain equipment to be included in the
Project
• Upgrade Intermediate Lift Station (ILS)
• Repurpose existing equipment room
• Add measures to adapt to Sea Level Rise
Task 2A – Detailed Design Elements of Contract Amendment No.1
CONSULTANT shall develop Design Documents (including Plans, Specifications, Schedule,
and Costs) for the following design elements. All design shall go through the proper
quality assurance and quality control reviews prior to issuing to the City for review.
2A.1 RAS Pumping Station Design
The new RAS pumping station is required to achieve the process performance objectives
and improve constructability of the Project. The new RAS pumping station will be
integrated with improvements to the existing RAS pumping station serving Secondary
Clarifiers 5&6 and other elements of the Project. In addition, RAS pumps and some RAS
piping serving Secondary Clarifiers 5&6 will be replaced in the existing structure to
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increase capacity as required for the upgraded treatment process. The new RAS pumping
station will be protected against sea level rise and therefore, it will be designed as a
structure with a raised pad, pre-fabricated canopy with screened sides, and/or other
means to prevent flooding of vulnerable mechanical, electrical, and control systems. The
design will include access stairs and handrail as needed.
The new RAS pumping station will include capability to chlorinate RAS to control sludge
bulking. A new metering pump and piping will be installed at the existing sodium
hypochlorite facility serving the Dual Media Filter (DMF) Facility. The new pump will be
fed from existing storage tanks installed inside an existing spill containment basin.
2A.2 Electrical Load Center & Upgrade Standby Power System
CONSULTANT will design a new unit substation (aka load center) consisting of primary
switch, a close-coupled 12 kV/480 V transformer, primary switch gear, and new Motor
Control Centers (MCCs) that will be located outdoors on a raised pad.
The new Electrical Load Center will be protected against sea level rise and therefore, it
will be designed as a structure with a raised pad, pre-fabricated canopy with screened
sides, and/or other means to prevent flooding of vulnerable electrical and control
systems. The design will include access stairs and handrail as needed.
CONSULTANT to design a new standby generator serving Load Centers 3 and 4 to replace
the existing that is near the end of its useful service life and does not have capacity for
aeration blower and pump loads to be added under the Project. CONSULTANT design to
include an automatic transfer switch. The new standby generator will be in the same
approximate location as the existing generator and will be designed with protection
against sea rise. The capacity of the generator is expected to be approximately 2.0 MW.
The new standby generator system will consist of a single equipment skid with integrated
mechanical, electrical, and fuel systems.
2A.3 MABR Process Addition
CONSULTANT will design an MABR treatment process as an integrated component of the
Project based on the findings of the MABR Feasibility Assessment completed under the
original contract. The MABR process will increase the capacity of the secondary treatment
process to accommodate projected growth in the service area and to achieve the Project’s
nitrogen removal objectives without constructing a fifth aeration tank. The MABR system
will be installed in the existing aeration tanks.
It is expected that implementation of the MABR process will be phased. The first phase,
which will be constructed as part of the Project, will have capacity to process flow and
loading projected in 2044. In the second phase, which will be constructed under a
separate future project, additional MABR equipment will be added to provide estimated
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capacity through at least 2054. The design will include features to facilitate installation of
future MABR equipment and bridge cranes serving the MABR equipment. The design also
includes an additional internal mixed liquor recycle (IMLR) pump in each aeration tank in
the interim period (2 IMLR pumps total per aeration tank).
2A.4 Equipment Pre-Selection
Preselection of MABR equipment, aeration diffusers, and the Intermediate Lift Pumps
with Formed Suction Inlets will be completed jointly by the City and CONSULTANT.
Preselection will be applied only where a single equipment supplier exists or where the
preselected equipment is expected to have lower lifecycle costs compared to the
alternatives. The CONSULTANT will investigate these equipment alternatives and provide
the City with recommendations.
2A.5 Intermediate Lift Station (ILS) Design
CONSULTANT’s review of the Plant’s hydraulics determined that a new lift station is
required to convey the required range of flow rates. CONSULTANT will design a new lift
pump station within the existing structure to meet all Plant flow requirements. Design is
to include pump motor / VFD sizing.
2A.6 Repurpose Equipment Room Design
Re-design the Equipment Room and demolish the existing RAS pumps and piping will be
demolished to allow the room to be used to house new compressors associated with new
large-bubble mixing systems to be installed in anoxic zones in the aeration tanks. This
effort is expected to require construction sequencing entailing temporary installation and
relocation of the new compressors.
CONSULTANT shall include the development of a performance specification for a
packaged fire sprinkler system for the new Electrical Building, to be purchased and
installed by the City’s Construction Contractor for the Project.
2A.7 Sea Level Rise Adaptation Design
To comply with the City’s approved the Sea Level Rise (SLR) Adaptation Policy, adopted
on March 18, 2019, CONSULTANT will address interim SLR conditions before the long-
term adaptation measures are implemented. New facilities included in the Project (RAS
Pump Station, Electrical Load Center and Standby Power Generator) will be designed
based on a flood level elevation of 13.5 ft above the North American Vertical Datum of
1988 (NAVD88). This interim design flood level is three feet higher than the previous
design flood level prescribed by FEMA. Flood protection design measures include raising
new facilities to at least elevation 114.0 ft NAVD88 and installation of flood doors at
existing equipment rooms.
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The site is in FEMA Base Flood Zone Elevation (10.5 feet NAVD 1988). CONSULTANT shall
establish the floor elevation at 14.0-ft above sea level. CONSULTANT shall incorporate in
the design any additional pertinent requirements from the City of Palo Alto Sea Level Rise
Policy. Incorporating the City Sea Level Rise Policy will require the finished floor elevation
of any new structures to be approximately 14.0 feet NAVD88.
(b) Rates for Added Services
Level
Engineering
Technical/Scientific
Administrative
Hourly Rates
for Revision 2
A Office/Support Services I $77
Word Processor I
B Drafter Trainee Field Service Technician I Office/Support Services II $81
Word Processor II
C Assistant Drafter Field Service Technician II Office/Support Services III $94
Drafter Accountant I
Engineering Aide Word Processor III
D Inspection Aide Field Service Technician III Office/Support Services IV $98
Engineer I
Senior Drafter Geologist/Hydrogeologist I
Senior Illustrator Scientist I Accountant II
E Inspector I Senior Field Service Technician Word Processor IV $105
Engineer II Accountant III
Inspector II Area Business Operations Mgr.
Lead Drafter Geologist/Hydrogeologist II Technical Writer
F Lead Illustrator Scientist II Word Processing Supervisor $128
Engineer III
Inspector III
Senior Designer
Supervising Drafter Geologist/Hydrogeologist III Accountant IV
G Supervising Illustrator Scientist III Administrative Manager $150
Senior Engineer
Principal Designer
Senior Construction Engineer Senior Geologist/Hydrogeologist
H Senior Engineer Senior Scientist Senior Technical Writer $172
Principal Engineer
Principal Construction Engineer
I Supervising Designer $212
J
Supervising Engineer
Supervising Const. Engineer
Supervising Scientist
Supervising Geologist/ Hydrogeologist
Assistant Controller
$244
K
Managing Engineer
Managing Scientist
Managing Geologist/Hydrogeologist
Area Business Ops Mgr. IV
$288
L Chief Engineer Executive Engineer Chief Scientist
Chief Geologist/Hydrogeologist
Corp Marketing Comm. Mgr.
$309
M Vice President $309
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III. Subconsultant CE&G
Subconsultant’s hourly rates for the period prior to the Effective Date of Amendment No. 1 are
set forth in Exhibit C-1 attached to the original Contract. The following rates shall apply from
the Effective Date of Amendment No. 1.
Schedule of Charges
2020-2024
1. Professional Services - These are “all-up” rates, and include direct salary cost, overhead, general and administrative costs not separately accounted for, and profit. They shall remain in effect through December 31, 2024. Ongoing work
Personnel 2020 2021 2022 2023 2024 Rates/Units Senior Principal Engineer/Geologist $ 280 $ 290 $ 300 $ 310 $ 320 per hour Principal Engineer/Geologist $ 240 $ 245 $ 250 $ 260 $ 270 per hour Associate Engineer/Geologist $ 215 $ 220 $ 225 $ 230 $ 235 per hour Senior Engineer/Geologist $ 200 $ 205 $ 210 $ 215 $ 220 per hour Project Engineer/Geologist $ 160 $ 165 $ 170 $ 175 $ 180 per hour Staff Engineer/Geologist $ 145 $ 150 $ 155 $ 160 $ 165 per hour Technician (Straight rate prevailing wage) $ 130 $ 135 $ 140 $ 145 $ 150 per hour Senior GIS/CADD Specialist $ 140 $ 145 $ 150 $ 155 $ 160 per hour GIS/CADD Specialist $ 125 $ 130 $ 135 $ 140 $ 145 per hour UAS Manager $ 155 $ 160 $ 165 $ 170 $ 175 per hour Project Assistant $ 95 $ 100 $ 105 $ 110 $ 115 per hour Administration/Clerical $ 85 $ 90 $ 95 $ 100 $ 105 per hour Special Inspector (Straight rate prevailing wage; $ 135 $ 140 $ 145 $ 150 $ 155 per hour Deposition/Court Testimony (minimum 4 hours) $ 400 $ 410 $ 420 $ 435 $ 450 per hour
Field and Laboratory Tests 2020 2021 2022 2023 2024 Rates/Units Concrete Compressive Strength Testing $ 39 $ 41 $ 42 $ 43 $ 44 per cylinder Moisture Content (ASTM D 2216) $ 23 $ 24 $ 24 $ 25 $ 26 per test Moisture & Density (ASTM D 4318) $ 31 $ 32 $ 32 $ 33 $ 34 per test Atterberg Limits (ASTM D 4318) $ 202 $ 208 $ 214 $ 221 $ 228 per test Compaction Curve, 4" mold (ASTM D 1557) $ 257 $ 264 $ 272 $ 281 $ 289 per test Compaction Curve, 6" mold (ASTM D 1557) $ 317 $ 326 $ 336 $ 346 $ 357 per test Wash over #200 Sieve (ASTM D 1140) $ 71 $ 73 $ 75 $ 78 $ 80 per test Sieve Analysis with #200 Wash (ASTM D 422) $ 148 $ 152 $ 157 $ 161 $ 166 per test Sieve & Hydrometer (ASTM D 422) $ 229 $ 236 $ 243 $ 251 $ 258 per test
Reimbursables 2020 2021 2022 2023 2024 Rates/Units Mileage (per allowable federal) $0.58 $ 0.58 $ 0.58 $ 0.58 $ 0.58 per mile Nuclear Gage $ 57 $ 59 $ 60 $ 62 $ 64 per day Inclinometer $ 196 $ 201 $ 208 $ 214 $ 220 per day Vane Shear Device $ 113 $ 116 $ 119 $ 123 $ 127 per day UAS Equipment $ 361 $ 371 $ 382 $ 394 $ 406 per day GNSS Mapping Equipment $ 206 $ 212 $ 219 $ 225 $ 232 per day
DocuSign Envelope ID: 4E57057C-E03B-4C73-B8A8-593B5AD61452
Vers.: Aug. 5, 2019
Page 35 of 37
continuing beyond December 31, 2024 will be invoiced at the applicable new year’s rate. 2. Travel Time - Travel time will be charged at regular hourly rates, not to exceed eight (8) hours per day. 3. Expenses - All direct costs will be billed at actual cost unless there is explicit agreement otherwise. Direct costs include:
• Third party services – Fees for subcontracted third party services (including drilling and backhoe services, special consultant fees, permits, special equipment rental, overnight mail or messenger services and other similar project related costs)
• Travel expenses, including airfares, hotel, meals, ground transportation, and miscellaneous expenses.
• Reproduction costs, including photocopy, blueprints, graphics, photo prints or printing.
• Subconsultants - To the extent that it becomes necessary to use subconsultants, Client will be invoiced at
• Accounting - The cost of normal accounting services for invoicing has been considered in the overhead expense which is included in the above hourly rates. Additional requirements for invoice verification, such as copies of time sheets, detailed expense records, and supplemental daily work justification will be billed on an hourly basis.
DocuSign Envelope ID: 4E57057C-E03B-4C73-B8A8-593B5AD61452
Vers.: Aug. 5, 2019
Page 36 of 37
IV. Subconsultant Leland Saylor Associates
Subconsultant’s hourly rates for the period prior to the Effective Date of Amendment No. 1 are set
forth in Exhibit C-1 attached to the original Contract. The following rates shall apply from the
Effective Date of Amendment No. 1.
HOURLY BILLING RATES 2020 to 2024
2020 2021 2022 2023 2024
Principal/Director of QA/QC Estimator $ 189.52 $ 195.21 $ 201.06 $ 207.09 $ 213.31
Senior Mechanical Estimator $ 179.22 $ 184.60 $ 190.13 $ 195.84 $ 201.71
Senior Electrical Estimator $ 179.22 $ 184.60 $ 190.13 $ 195.84 $ 201.71
Senior Arch/Struct/Civil Estimator $ 179.22 $ 184.60 $ 190.13 $ 195.84 $ 201.71
Estimator $ 149.00 $ 153.47 $ 158.07 $ 162.82 $ 167.70
Senior Scheduler $ 180.00 $ 185.40 $ 190.96 $ 196.69 $ 202.59
Technical Services $ 111.00 $ 114.33 $ 117.76 $ 121.29 $ 124.93
DocuSign Envelope ID: 4E57057C-E03B-4C73-B8A8-593B5AD61452
Vers.: Aug. 5, 2019
Page 37 of 37
V. Subconsultant Scheidegger & Associates (CEQA)
Subconsultant’s hourly rates for the period prior to the Effective Date of Amendment No. 1
are set forth in Exhibit C-1 attached to the original Contract. The following rates shall apply
from the Effective Date of Amendment No. 1.
Hourly Billing Rates for 2020
Team Member Hourly Rate $/hour
Scheidegger & Associates
P. Scheidegger
170
Illustrator 75
Word Processing 60
William Popenuck 115
Environmental Collaborative
J. Martin
165
Archeo-Tec
A. Pastron
175
M. Staley 110
Research Assistant 80
DocuSign Envelope ID: 4E57057C-E03B-4C73-B8A8-593B5AD61452
Certificate Of Completion
Envelope Id: 4E57057CE03B4C73B8A8593B5AD61452 Status: Completed
Subject: Please DocuSign: Amendment No. 1 to Contract C19171565 FINAL 9.16.20.pdf
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250 Hamilton Ave
Palo Alto , CA 94301
saira.cardoza@cityofpaloalto.org
IP Address: 199.33.32.254
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City of Palo Alto
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LOS ALTOS MOUNTAIN VIEW
EAST PALO ALTO
SANITARY DISTRICT STANFORD LOS ALTOS HILLS PALO ALTO
3.80 15.10 3.06 2.11 0.63 15.30
LOS ALTOS MOUNTAIN VIEW
EAST PALO ALTO
SANITARY DISTRICT STANFORD LOS ALTOS HILLS PALO ALTO
9.47% 37.89%7.64%5.26% 1.58%38.16%
FISCAL YEAR LOS ALTOS MOUNTAIN VIEW EAST PALO ALTO
SANITARY DISTRICT STANFORD LOS ALTOS HILLS PALO ALTO
FY2020 10.84% 41.63%6.34%4.61% 2.01%34.57%
FY2019 9.90% 39.46%6.78%6.18% 1.76%35.92%
FY2018 10.40% 38.11%7.16%7.03% 1.93%35.37%
FY2017 9.83% 38.71%6.95%6.75% 1.56%36.20%
FY2016 10.03% 38.45%6.68%7.00% 1.51%36.33%
FY2015 10.30% 39.24%6.22%6.85% 1.41%35.98%
FY2014 10.38% 38.75%6.24%6.31% 1.41%36.91%
FY2013 9.86% 38.14%6.41%6.14% 1.28%38.18%
FY2012 9.41% 36.79%6.42%6.13% 1.17%40.08%
FY2011 10.35% 35.71%6.80%6.80% 1.14%39.21%
FY2010 10.86% 36.76%6.47%6.27% 1.16%38.48%
FY2009 11.72% 37.21%7.15%5.99% 1.15%36.78%
FY2008 11.55% 37.84%7.18%5.98% 1.20%36.25%
FY2007 10.78% 38.99%7.38%5.81% 1.05%35.99%
FY2006 10.62% 38.96%7.83%5.75% 0.98%35.86%
FY2005 11.90% 37.17%7.72%5.52% 1.06%36.63%
FY2004 12.96% 37.43%7.55%5.35% 0.94%35.77%
FY2003 13.32% 37.01%7.17%5.57% 0.93%36.00%
FY2002 12.79% 36.63%7.47%5.20% 0.91%37.00%
FY2001 11.98% 39.77%6.89%5.20% 0.83%35.33%
FY2000 11.92% 39.09%6.86%5.34% 0.80%35.99%
FY1999 11.99% 39.67%6.80%4.85% 0.77%35.92%
FY1998 11.87% 39.40%7.17%3.92% 0.73%36.91%
FY1997 11.95% 40.87%6.97%4.02% 0.74%35.45%
FY1996 11.54% 40.93%7.12%4.01% 0.76%35.64%
FY1995 11.45% 40.68%6.91%4.79% 0.79%35.38%
FIXED CAPACITY SHARE OF CAPITAL ASSETS FOR DEBT SERVICE SHARE
ATTACHMENT B - PARTNER CAPACITY, SHARE, AND RATE COMPARISONS
MILLION GALLONS PER DAY
MAXIMUM FLOW CAPACITY RIGHTS EXPRESSED IN ANNUAL AVERAGE FLOW
PARTNERS' CONTRIBUTING SHARE OF WASTEWATER TREATMENT FUND OPERATING BUDGET
ATTACHMENT B - PARTNER CAPACITY, SHARE, AND RATE COMPARISONS
AGENCY LOS ALTOS1 MOUNTAIN VIEW
EAST PALO ALTO
SANITARY DISTRICT STANFORD LOS ALTOS HILLS PALO ALTO
41.15$ 42.90$ 50.00$ N/A 129.17$ 41.37$
SAN JOSE SANTA CLARA MILPITAS SUNNYVALE
CUPERTINO
SANITARY DISTRICT
41.64$ 44.53$ 55.54$ 53.38$ 53.24$
LOS ALTOS1 MOUNTAIN VIEW
EAST PALO ALTO
SANITARY DISTRICT STANFORD LOS ALTOS HILLS2 PALO ALTO
2.28$ 5.63$ 4.9022$ N/A $10.59 7.97$
SAN JOSE SANTA CLARA MILPITAS SUNNYVALE
3
CUPERTINO
SANITARY
DISTRICT4
4.27$ 5.29$ 5.67$ 5.67$ 4.36$
Notes:
1 $283.99/year base charge in addition to water usage charge
2 $1550 annual rate per 300 gallons/day
3 standard strength commercial
4 $7.69 monthly fee in addition to water use fee
5 minimum monthly charge not included; rates do not cover all types of commercial acitivity for clarity
COMMERCIAL SEWER UTILITY RATES: FISCAL YEAR 20215
$ / HUNDRED CUBIC FOOT (HCF) WATER USE (NOTE: 1 HCF = 748 GALLONS) U.O.N.
Note 1: Los Altos fee is approximated as follows: [$283.99/year base charge + $2.28/unit * average of 92 units/year for single
family residential] / 12 months = appx. $41.15/month
MONTHLY RESIDENTIAL SEWER UTILITY BILL: FISCAL YEAR 2021
City of Palo Alto (ID # 11616)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 12/7/2020
City of Palo Alto Page 1
Council Priority: Climate/Sustainability and Climate Action Plan
Summary Title: Carbon Neutral Gas Plan Review
Title: Staff and the Utilities Advisory Commission (UAC) Recommend the
Council Adopt a Resolution Amending the City’s Carbon Neutral Gas Plan to
Continue to Achieve Carbon Neutrality for the City's Natural Gas Supply
Portfolio
From: City Manager
Lead Department: Utilities
Recommendation
Staff and the Utilities Advisory Commission (UAC) recommend the Council adopt a resolution
amending the City’s Carbon Neutral Gas Plan, which includes the following key elements:
• Continue the Carbon Neutral Gas Plan to offset carbon emissions from City natural gas
sales;
• Continue to restrict purchases to carbon offset project types which adhere to California
Air Resources Board (CARB) cap and trade compliance protocols, including U.S. Forest,
U.S. Urban Forest, U.S. Livestock, U.S. Sourced and Destroyed Ozone Depleting
Substances, U.S Mine Methane Capture, and U.S. Rice Cultivation; or any other Project
Type subsequently approved by CARB;
• Restrict purchases to CARB’s vintage requirements;
• Continue to limit transactions to spot1 purchases;
• Rate impacts of individual offset transactions are limited to under $19 per ton of CO2e.
This is consistent with the Council-approved maximum rate impact or 10₵/therm; and
• Maintain a preference for California projects as long as it does not result in a price
premium.
Executive Summary
Palo Alto implemented a Carbon Neutral Gas Plan in FY 2018, staff report 75332 whereby
carbon offsets are purchased to match the carbon emissions associated with all City of Palo Alto
1 Staff identifies spot purchases as buying offsets that have already been created, verified, and are ready to be
sold.
City of Palo Alto Page 2
Utilities annual natural gas sales. Nearly four years into the plan, staff is revisiting the plan to
clarify and refine plan parameters and update the community on the activities to date. The
Carbon Neutral Gas Plan is provided as Exhibit A to the Resolution (Attachment A).
Implementation of the Carbon Neutral Gas Plan will be carried out by staff.
Background
Natural gas use by residents, businesses, and City facilities contributes about 150,000 tons CO2e
annually, representing about 30% of the City’s total 500,000 tons CO2e footprint. This total does
not include community greenhouse gas (GHG) emissions such as air travel, transportation, meat
consumption, etc.
In December 2016, Council adopted Resolution 96493, staff report 7533, approving a Carbon
Neutral Gas Plan to achieve carbon neutrality for the gas supply portfolio by FY 2018 using high-
quality carbon offsets with a cost cap of up to 10/₵/therm. Council also directed staff to
develop a Carbon Neutral Gas Plan implementation plan.
The Council-adopted Sustainability and Climate Action Plan (S/CAP) Framework4 established a
goal to reduce Palo Alto’s greenhouse gas (GHG) emissions by 80% compared to 1990 levels by
2030. On December 11, 2017, Palo Alto City Council accepted a 2018-2020 Sustainability
Implementation Plan5 that included a goal to mitigate the impacts of natural gas use through
carbon offsets as a bridging strategy to electrification. Purchasing carbon offsets to mitigate
natural gas emissions and evaluating local offsets is a Council-approved key action.
Given the resolution was approved four years ago, staff is providing an update on the Plan
implementation, performance to date, and proposing refinements to the Plan.
Discussion
Offsets Overview
A carbon offset is a reduction in CO2e emissions to compensate for CO2e emitted elsewhere.
Offsets enable buyers to balance out their emissions. By productizing carbon offsets, a market
is created for buyers and sellers to reduce CO2e emissions, which in turn, incentivizes lower cost
solutions to emission reductions. While carbon offsets are still a relatively young environmental
product, the global market for carbon offsets has seen continued demand growth, and in 2018,
the global voluntary market was estimated at approximately $300 million with cumulative
volume over 1.2 billion metric tons transacted6. There is a robust marketplace for carbon
offsets from both voluntary purchases, similar to those carried out under the City’s Plan, as well
as for compliance purchases, similar to the California Cap and Trade Program.
2 https://www.cityofpaloalto.org/civicax/filebank/documents/54882
3 https://www.cityofpaloalto.org/civicax/filebank/documents/55728
4 https://www.cityofpaloalto.org/civicax/filebank/documents/64814
5 https://www.cityofpaloalto.org/civicax/filebank/documents/63141
6 https://hubs.ly/H0m5qf60
City of Palo Alto Page 3
Offsets balance out pollution across geographies but do not stop emissions from occurring in
Palo Alto. As such, in the hierarchy of climate actions, reducing one’s own sources of emissions
is viewed as superior to carbon offsets created elsewhere. Further, there are inherent
challenges in accurately measuring emission reductions from offsets, and there is greater
certainty in measuring the impact of reducing one’s own emissions. Though, given that
emissions are a global problem, carbon offsets still provide significant value as a tool in a
broader portfolio of climate actions to reduce emissions.
The most common offsets generated and sold into compliance and voluntary markets are those
from forestry projects. These projects protect forests and sequester carbon through improved
forest management, avoided conversion, or afforestation. Offset sales provide landowners an
economic incentive to implement best forest management practices, avoid conversion of forest
lands, or allow reforestation of trees, instead of cutting them down to sell lumber or develop
the land for other revenue streams like commercial/residential real estate or agriculture use.
It’s estimated that over $1 billion has been paid to U.S woodland owners7 not to cut forests.
While forests sequester carbon, dairy digesters capture methane instead of allowing it to
release into the atmosphere. Most dairy farms store manure in a lagoon; creating an anaerobic
environment in which the manure produces methane that is released into the atmosphere as it
breaks down. Over an extended period of time, methane can be about 85 times more potent
compared to carbon dioxide. Capturing and putting the methane to productive use, such as
generating electricity, prevents that methane from entering the atmosphere. Since the dairy
farmer built a system above and beyond what is required to manage the manure, a carbon
offset is produced and can be sold to recoup some of the farmer’s investment.
Similar to dairy digesters, offsets may be generated by methane capture at coal mines. To
operate a coal mine safely, methane must be drained from the coal seam. Voluntarily capturing
the methane that would otherwise emit to the atmosphere and putting it to a beneficial use
such as electricity generation creates an offset, and therefore, revenue to recoup some of that
investment.
“Additionality” is a key feature of all offsets, meaning actions taken to reduce emissions must
be done on a voluntary basis without any requirement by federal, state, or local laws or
regulations. Furthermore, offset projects must demonstrate that the project activity is not
business-as-usual and that reductions would not have happened without the revenue from
offset sales. Forestry, dairy digesters, and coal mine capture projects are three of the six project
types approved by the California Air Resources Board and included in Palo Alto’s Carbon
Neutral Gas Plan. Attachment B contains visual representations of coal mine methane capture
and dairy digester projects. Attachment C provides detail on all six project types.
Offset Concerns
7 https://www.wsj.com/articles/preserving-trees-becomes-big-business-driven-by-emissions-rules-
11598202541?mod=hp_lead_pos7
City of Palo Alto Page 4
Carbon offset markets gained momentum in 2005 as a result of the Kyoto Protocol which
established the Clean Development Mechanism (CDM) as the method to measure and verify
emission benefits. Over time, research highlighted flaws with CDM-issued offsets that involve
the lack of robust additionality tests, poor accounting possibly resulting in double counting,
inaccurate savings estimation, leakage (an increase in emissions in one location resulting from a
decrease in another location), and permanence. Environmental activists and concerned citizens
have criticized carbon offsets by questioning whether these projects would occur without the
offset market and uncovered inaccuracies in actual emission reductions. Further, not enough
offsets can be created to meet the total emission reduction targets needed to address global
warming concerns. Finally, purchasing offsets enables buyers to continue creating emissions. All
of these are points to be cognizant of when evaluating the role of carbon offsets as a climate
action strategy.
Mitigation of Offset Concerns
While there is inherent uncertainty involved in estimating emission reductions that result from
carbon offset projects, there are many ways these concerns have been addressed in today’s
offset market, including offsets developed for California’s Cap and Trade Program. The City
does have a compliance obligation under California’s Cap and Trade program; the regulations
limit the use of offsets to 8% of capped emissions. The City’s Carbon Neutral Gas Plan is
separate and distinct from the City’s Cap and Trade obligations. Under California’s Cap and
Trade Program, CARB established protocols8 for six project types.
1. U.S. Forest Projects
2. Urban Forest Projects
3. Livestock Projects
4. Ozone Depleting Substances Projects
5. Mine Methane Capture projects
6. Rice Cultivation Projects
CARB adopted these protocols and approved carbon offset registries via a rigorous rulemaking
process detailed in CARB’s Process for the Review and Approval of Compliance Offset Protocols9
CARB developed each of these protocols to create real, additional, verifiable, and permanent
emission reductions10. Though there are periodic studies that critique or recommend
improvements, CARB’s protocols have addressed many of the earlier issues or critiques with
carbon offsets which originated from the Clean Development Mechanism. Offsets purchased
8
httpshttps://ww2.arb.ca.gov/sites/default/files/classic//cc/capandtrade/ct_reg_unofficial.pdf://ww2.ar
b.ca.gov/sites/default/files/classic//cc/capandtrade/ct_reg_unofficial.pdf
9 https://ww2.arb.ca.gov/sites/default/files/classic//cc/capandtrade/compliance-offset-protocol-
process.pdf
10
https://govt.westlaw.com/calregs/Document/IAB809A46C9794E3EAA751C21B72AE536?viewType=FullT
ext&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)
City of Palo Alto Page 5
under Palo Alto’s Carbon Neutral Gas Plan are restricted to projects that are tracked by CARB
approved registries and comply with CARB protocols. Attachment C contains detailed
descriptions of each of the project types and the protocols. CARB protocols have strict
additionality requirements, thorough verification processes, detailed monitoring and reporting
to demonstrate permanence.
Offsets can be part of a bridging strategy while technologies and policies evolve to accelerate
the ability to directly reduce emissions in a cost-effective manner.
Potential to use Carbon Offsets for Other City Emissions
Carbon offsets can and have been used by cities, corporations and individuals to mitigate
emissions from sources beyond those resulting from burning natural gas. This report only
addresses carbon offset use in the context of the Carbon Neutral Gas Plan and does not
contemplate an expanded role to achieve the other City sustainability goals.
Carbon Neutral Gas Plan Overview to Date
Since July 2017, emissions resulting from customers burning natural gas has been mitigated
100% by carbon offset purchases equal to CPAU’s natural gas sales. When the plan was
established four years ago, staff limited the purchases of offsets to project types accepted by
CARB-approved California Cap and Trade compliance protocols. Council approved five enabling
agreements with brokers that sell carbon offsets. The standard form agreement was approved
via staff report 871711 (Reso 970312), and the five enabling agreements were approved via staff
report 8717, (Reso 970413), staff report 941814 (Reso 978715), staff report 979316 (Reso 979317),
and staff report 970018, (Reso 979819). Staff executes approximately two transactions per year
to buy offsets. A maximum rate impact of up to 10¢/therm ($19/ton CO2e) was approved, and
to date the cost of offsets has averaged less than 3¢/therm ($6.25/ton CO2e). The figure below
illustrates the project types represented in the offset purchases to date.
11 https://www.cityofpaloalto.org/civicax/filebank/documents/61081
12 https://www.cityofpaloalto.org/civicax/filebank/documents/62672
13 https://www.cityofpaloalto.org/civicax/filebank/documents/63428
14 https://www.cityofpaloalto.org/civicax/filebank/documents/66195
15 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=65848.47&BlobID=66767
16 https://www.cityofpaloalto.org/civicax/filebank/documents/66733
17 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=71268.52&BlobID=67695
18 https://www.cityofpaloalto.org/civicax/filebank/documents/67432
19 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=68967.47&BlobID=68099
City of Palo Alto Page 6
Offsets used for Cap and Trade compliance must go through one final certification step by
CARB. CARB-certified offsets may not be used for Palo Alto’s Carbon Neutral Gas Plan, however,
the offsets the City purchases adhere to the same CARB protocols as do those that are sold in
the compliance offset pool. Council also approved a purchase for about 10% of FY 2019 carbon
offset needs from a forestry project near Palo Alto’s sister city, Oaxaca, Mexico (staff report
856420, Reso 972521) utilizing a protocol nearly identical to that applied to U.S. forestry projects.
While the plan includes a preference for local and California located projects, there is no
Council-approved premium for California projects. To date, none of the offset projects have
originated in California. Attachment D shows details of all carbon offset transactions thus far.
There are two potential opportunities for local projects. Palo Alto administers a refrigerator
recycling program and may purchase offsets resulting from the destruction of the related ozone
depleting substances. Pricing has not been determined, and the quantities represent less than
1% of Palo Alto’s offset needs. The second local project could be Urban Forestry which staff is
exploring.
Review of Carbon Neutral Gas Plan Parameters
Spot Purchases versus Investing in Projects
There are two ways to procure offsets. The first is to purchase offsets on the “spot market”.
These offsets have already been created, verified, are ready to be sold, and are tracked by
CARB approved registries. The other is to invest in projects that will generate offsets in the
future. For example, an organization might provide capital to a dairy farmer so that the dairy
farmer can build a digester. The investor receives offsets over a period of time once the
digester is operational. This is similar to investing in a power plant and receiving energy over a
period of time.
20 https://www.cityofpaloalto.org/civicax/filebank/documents/62302
21 https://www.cityofpaloalto.org/civicax/filebank/documents/62688
City of Palo Alto Page 7
The Carbon Neutral Gas Plan is currently restricted to spot purchases. Because the plan is a
bridge to electrification, and therefore a shorter-term strategy, and because project investment
inherently carries more risk, staff recommends continuing to limit transactions to spot
purchases.
Approved Project Types and Vintages
The plan currently restricts the purchase of offsets to project types that adhere to CARB
protocols. These include U.S. forest, urban forest, livestock, ozone depleting substances, mine
methane capture, and rice cultivation projects. CARB allows offsets generated in 2006 or later.
Staff has reviewed the CARB protocols and is satisfied that CARB’s requirements and standards
ensure projects are real, additional, accurate, and verifiable. Staff recommends continuing
restricting offsets to project types which adhere to CARB protocols. In addition, staff
recommends mirroring CARB’s vintage requirements for offset purchases for the Carbon
Neutral Gas Plan in the future. This means that projects must have been completed in 2006 or
later.
CARB currently does not have a protocol for forestry projects outside of the U.S. Should
another opportunity arise like the 2017 purchase from the forestry project in Oaxaca, staff will
follow the same process by bringing it to Council for consideration.
Approved Prices for Offset Transactions
The Carbon Neutral Gas Plan includes an overall rate impact cap of up to 10¢/therm,
approximately $19/ton CO2e. To provide clarity for Plan implementation, staff recommends
that no single transaction will exceed $19 per ton CO2e.
Basis for Offset Quantities Purchased
Offsets are purchased in quantities that match CPAU’s natural gas sales. The Plan covers natural
gas sales and explicitly excludes any local distribution losses or other upstream emissions. Staff
intends to cover this topic as part of a broader S/CAP discussion.
Resource Impact
There is no new resource impact expected from the adoption of this resolution.
Policy Implications
The Carbon Neutral Gas Plan is consistent with the Council-adopted 2018-2020 Sustainability
Implementation Plan22 which included a goal to mitigate the impacts of natural gas use through
carbon offsets and key actions including purchasing carbon offsets to mitigate natural gas
emissions.
22 https://www.cityofpaloalto.org/civicax/filebank/documents/63141
City of Palo Alto Page 8
Next Steps
If the Carbon Neutral Gas Plan modifications are approved by Council, staff will implement the
changes immediately, beginning with offset purchases for the second half of FY20.
Stakeholder Engagement
On October 7, 2020, the UAC considered a proposed update to the Carbon Neutral Gas Plan. In
an effort to address Council’s previously stated preference for California carbon offsets, staff
recommended an authorized 10% premium to paid for in-state carbon offsets. Citing the lack of
sustainability advantage from a project in California versus somewhere else and the current
economic environment, the UAC did not support the premium. Because California projects may
yield co-benefits such as jobs and cleaner air, all else being equal, staff will continue to favor in-
state carbon offsets. The proposed Carbon Neutral Gas Plan, as shown in Attachment A, Exhibit
A, was modified to reflect this change. At the UAC request, staff also reworded the objective of
the Plan to clarify the intent is to mitigate GHG emissions from natural gas usage in the City as a
bridging strategy toward absolute reductions in natural gas use.
With the two changes described above, the UAC voted unanimously to recommend Council
approval of the amended Carbon Neutral Gas Plan.
Environmental Review
The Council’s adoption of a resolution modifying the Carbon Neutral Gas Plan does not meet
the definition of a project, pursuant to section 21065 of the California Environmental Quality
Act (CEQA). Offset project developers are responsible for performing necessary environmental
reviews and acquiring permits as offset projects are developed.
Attachments:
• Attachment A: Resolution
• Exhibit A: Carbon Neutral Gas Plan
• Attachment B: Project Visuals
• Attachment C: CA Air Resources Board Compliance Offset Protocols
• Attachment D: Carbon Neutral Gas Plan Implementation
Attachment A
**Not Yet Approved**
6055443
Resolution No.
Resolution of the Council of the City of Palo Alto
Amending the Carbon Neutral Natural Gas Plan to
Continue to Achieve Carbon Neutrality for the City’s
Natural Gas Supply Portfolio
R E C I T A L S
A. In December 2007, Council adopted the City’s Climate Protection Plan which set
aggressive greenhouse gas (GHG) emission reduction goals to be achieved by the year 2020.
B. In March 2013, Council approved Resolution 9322 directing staff to achieve carbon
neutrality for the electric supply portfolio by 2013 through the use of a combination of
hydroelectric resources, long-term renewable resources and short-term renewable energy
resources and/or renewable energy certificates (“RECs”).
C. On September 9, 2013, Council approved Resolution 9372 modifying and
suspending portions of the PaloAltoGreen Program and directed staff to develop a
PaloAltoGreen Gas (PAG Gas Program) Program.
D. On April 21, 2014, Council approved Resolution 9405 establishing the voluntary
PAG Gas Program to provide the opportunity for residential and commercial customers to
economically reduce or eliminate the impact of GHG emissions associated with their gas usage
through the purchase of certified environmental offsets.
E. In April 2016, Council adopted a GHG reduction goal of 80% by the year 2030. GHG
emissions associated with natural gas used by City of Palo Alto Utilities customers were 135,000
metric tons of carbon dioxide equivalent, or 27% of the City’s GHG emissions, in 2015.
F. Staff initially proposed a Carbon Neutral Natural Gas Plan that would use a
combination of physical biogas and high-quality environmental offsets to achieve a carbon-
neutral gas portfolio by fiscal year 2018 by maximizing the amount of biogas in the portfolio
while holding the rate impact at a maximum limit of ten cents per therm (10 ₵/therm).
G. On August 31, 2016, the Utilities Advisory Commission voted 6-1 to recommend
Council approve a Carbon Neutral Gas Plan using a combination of physical biogas and high-
quality environmental offsets to achieve a carbon-neutral gas portfolio and direct staff terminate
the PAG Gas Program.
H. On October 18, 2016, the Finance Committee voted 2-1 to instead recommend
that Council:
I.
(i) Adopt a resolution that (a) approves a Carbon Neutral Natural Gas Plan that would
----
Attachment A
**Not Yet Approved**
6055443
enable the City to achieve a carbon-neutral gas supply portfolio starting in Fiscal Year (FY) 2018
with a rate impact not to exceed ten cents per therm (10 ¢/therm); and (b) terminate the PAG
Gas Program established by Resolution 9405; and
(ii) Direct staff to: (a) develop an implementation plan for the Carbon Neutral Natural
Gas Plan; (b) provide an option for Council to consider prioritizing local offsets; and (c)
prioritize maximizing carbon reduction within the 10 ₵/therm rate impact cap.
J. On December 5, 2016, Council adopted Resolution 9649 approving a carbon
neutral gas plan starting in fiscal year 2018 with a rate impact not to exceed ten cents per
therm (10 ₵/therm) and terminated the PAG Gas program established by Resolution 9405.
K. On October 7, 2020, the Utilities Advisory Commission voted 7-0 to recommend
Council approve the amended Carbon Neutral Gas Plan as outlined in Exhibit A.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council hereby adopts a resolution:
1. Approving an amended Carbon Neutral Natural Gas Plan, as shown in Exhibit
A, enabling the City to maintain a carbon-neutral gas supply portfolio.
//
//
//
//
//
//
//
Attachment A
**Not Yet Approved**
6055443
//
//
SECTION 2. The Council’s adoption of this Resolution, which amends the Carbon
Neutral Natural Gas Plan, does not meet the definition of a project, pursuant to section 21065
of the California Environmental Quality Act (CEQA). Offset project developers will be
responsible for acquiring necessary environmental reviews and permits as those projects are
developed.
INTRODUCED AND PASSED:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Director of Utilities
Director of Administrative Services
Exhibit A
CITY OF PALO ALTO CARBON NEUTRAL GAS PLAN
EXHIBIT A TO RESOLUTION NO.______
ADOPTED BY COUNCIL ON: _______
RECOMMENDED FOR APPROVAL BY UTILITIES ADVISORY COMMISSION ON: Oct. 7, 2020
Carbon Neutral Gas Plan Objective:
Originally adopted by the City Council on December 5, 20161, the objective of the City's Carbon
Neutral Gas Plan is to mitigate the GHG emissions resulting from natural gas use in the City of
Palo Alto through the purchase of high-quality carbon offsets as a bridging strategy toward
absolute reductions in natural gas use. Implementation of the Carbon Neutral Gas Plan will be
carried out by staff.
Carbon Neutral Gas Plan Elements:
1. The quantity of offsets purchased to meet the City’s Carbon Neutral Plan objectives will
be matched to carbon emissions associated with the City’s natural gas sales volume;
2. Offset purchases must be from project types which adhere to California Air Resource
Board (CARB)-approved cap and trade compliance protocols, currently including U.S.
Forest, U.S. Urban Forest, U.S. Livestock, U.S. Sourced and Destroyed Ozone Depleting
Substances, U.S Mine Methane Capture, and U.S. Rice Cultivation; or any other project
type subsequently approved by CARB;
3. Offset purchases are restricted to CARB’s vintage requirements, which currently permit
offsets generated in 2006 or later;
4. Offset transactions are limited to spot purchases, which are for offsets that have already
been created, verified, and are ready to be sold;
5. Rate impacts of individual offset transactions are limited to under $19 per ton of CO2e.
This is consistent with the Council-approved maximum rate impact of 10₵/therm.
6. In implementing the Carbon Neutral Gas Plan, staff will maintain a preference for
California projects as long as this preference does not result in a price premium.
1 Staff report 7533.
ATTACHMENT B: Carbon Offset Project Visuals
Mine Methane Capture
Dairy Digester
Manure is routed to
the tanks, where
it's cooked,
compressed
and the gas
collected.
The system
draws off liquid
fertilizer for crops. The
remaining solids reduce to
bacteria-free, odorless
compost and bedding for
the cows.
Source:Cyeckenya
ester works
• Manure
G@hM
Storage tanks Gas
generator
Heat
Sold to
Po?er utilires
Solids and _ .
liquids [uE Solids become bedding
separated for stalls L...,. Compost
Liquids become fertilizer
and sprayed on fields
DAN AGUA YO/THE OREGONIAN
ATTACHMENT C: California Air Resources Board Compliance Offset Protocols1
1. Livestock Projects: Capturing and Destroying Methane from Manure Management Systems
This protocol defines a set of activities designed to reduce GHG emissions that result from
anaerobic manure treatment at dairy cattle and swine farms. Projects that install a biogas control
system (BCS) that captures and destroys methane gas from anaerobic manure treatment and/or
storage facilities on livestock operations are eligible.
Project Definition:
(a) The BCS must destroy methane gas that would otherwise have been emitted to the
atmosphere in the absence of the offset project from uncontrolled anaerobic treatment
and/or storage of manure.
(b) Captured biogas can be destroyed on-site, transported for off-site use (e.g. through gas
distribution or transmission pipeline), or used to power vehicles.
(c) A centralized digester that integrates waste from more than one livestock operation
meets the definition of an offset project.
CARB Livestock Protocol2
2. Mine Methane Capture Projects: Capturing and Destroying Methane From U.S. Coal and
Trona Mines
This protocol includes four mine methane capture activities designed to reduce GHG emissions
that result from the mining process at active underground mines, active surface mines, and
abandoned underground mines.
The following types of mine methane capture activities are eligible:
(a) Active Underground Mine Ventilation Air Methane Activities are projects that install
a ventilation air methane (VAM) collection system and qualifying device to destroy
the methane in ventilation air otherwise vented into the atmosphere through the
return air shaft(s) as a result of underground coal or trona (sodium carbonate
compound used to make baking soda) mining operations.
(b) Active Underground Mine Methane Drainage Activities are projects that install
equipment to capture and destroy methane extracted through a methane drainage
system that would otherwise be vented into the atmosphere as a result of
underground coal or trona mining operations.
(c) Active Surface Mine Methane Drainage Activities are projects that install equipment
to capture and destroy methane extracted through a methane drainage system that
would otherwise be vented into the atmosphere as a result of surface coal or trona
mining operations.
1 https://ww2.arb.ca.gov/our-work/programs/compliance-offset-program/compliance-offset-protocols
2 https://ww3.arb.ca.gov/regact/2014/capandtrade14/ctlivestockprotocol.pdf
(d) Abandoned Underground Mine Methane Recovery Activities are projects that install
equipment to capture and destroy methane extracted through a methane drainage
system that would otherwise be vented into the atmosphere as a result of previous
underground coal mining operations.
CARB Mine Methane Capture Protocol3
3. Ozone Depleting Substances Projects: Destruction of U.S. Ozone Depleting Substances Banks
This protocol defines a set of activities designed to reduce GHG emissions by the destruction of
eligible Ozone Depleting Substances (ODS) at a single qualifying destruction facility.
ODS destroyed under this protocol must be from one or more of the eligible sources listed below:
(a) Refrigerants from industrial, commercial or residential equipment, systems, and
appliances or stockpiles;
(b) ODS blowing agents extracted and concentrated from appliance foams; or
(c) Intact foam sourced from building insulation.
CARB Ozone Depleting Substances Protocol4
4. Rice Cultivation Projects
This protocol includes three rice cultivation project activities designed to reduce GHG emissions
that result from rice cultivation on fields in the California and Mid-South Rice Growing Regions.
The following types of rice cultivation activities are eligible:
(a) Dry Seeding Activities are projects that sow seeds into a dry or moist, but not flooded,
seedbed by drilling or broadcasting seeds onto rice fields, resulting in the reduction of
methane that would otherwise be released into the atmosphere if the seeds were wet-
seeded.
(b) Early Drainage in Preparation for Harvest Activities are projects that drain or dry standing
water, while the soil is still saturated, from rice fields earlier during the rice growing
season in preparation for harvest, resulting in the reduction of methane that would
otherwise be released into the atmosphere if the rice fields were drained or dried on the
customary date.
(c) Alternate Wetting and Drying Activities are projects that cyclically wet and dry the rice
fields during the growing season to reduce methane emissions that would otherwise be
released into the atmosphere if the project employed continuous flooding.
CARB Rice Cultivation Protocol5
3 https://ww3.arb.ca.gov/regact/2013/capandtrade13/ctmmcprotocol.pdf
4 https://ww3.arb.ca.gov/regact/2014/capandtrade14/ctodsprotocol.pdf
5 https://ww2.arb.ca.gov/sites/default/files/classic/cc/capandtrade/protocols/rice/riceprotocol2015.pdf
5. U.S. Forest Projects: Sequestered Carbon on Forestland.
The protocol provides offset project eligibility rules; methods to calculate an offset project’s net
effects on greenhouse gas (GHG) emissions and removals of CO2 from the atmosphere
(removals); procedures for assessing the risk that carbon sequestered by a project may be
reversed (i.e. released back to the atmosphere); and approaches for long-term project
monitoring and reporting. The protocol is designed to ensure that the net GHG reductions and
GHG removal enhancements caused by an offset project are accounted for in a complete,
consistent, transparent, accurate, and conservative manner and may therefore be reported as
the basis for issuing ARB or registry offset credits.
U.S. Forest Projects include reforestation, conversion avoidance and forest management.
Forest management practices may include increasing time between harvest, increasing
productivity by thinning diseased and suppressed trees, increasing productivity by managing
brush and short-lived forest species, and planting more trees.
CARB Resource Page for US Forest Protocol6
6. Urban Forest Projects: Sequestered Carbon in Urban Canopy
This protocol applies to a planned set of urban tree planting and maintenance activities that
permanently increase carbon storage, taking into account GHG emissions associated with
planting and maintenance of project trees. Only offset projects located in the United States and
its territories are eligible under this protocol.
CARB Urban Forest Protocol7
6 https://ww2.arb.ca.gov/our-work/programs/compliance-offset-program/compliance-offset-
protocols/us-forest-projects/2015
7 https://ww3.arb.ca.gov/regact/2010/capandtrade10/copurbanforestfin.pdf
ATTACHMENT D: Carbon Neutral Gas Plan Implementation to Data
Deal # Counterparty Project
Date
Purchased
Offset
Purchased
(Tons)
Offset
Purchase
Rate
($/ton) Cost ($) Protocol Vintage
1 3Degrees Grotegut Dairy 9/25/2017 1,408
7.50
10,560 Livestock 2009
2 3Degrees Grotegut Dairy 9/25/2017 3,852
7.50
28,890 Livestock 2010
3 3Degrees Grotegut Dairy 9/25/2017 655
7.50
4,913 Livestock 2011
4
Element
Markets Green Trees 9/27/2017 148,000
7.70
1,139,600 U.S. Forest 2012, 2013, 2014, 2015
5 ICICO
San Juan
Lachao 12/13/2017 17,000
8.00
136,000 Mexican Forest 2016
6 3Degrees Grotegut Dairy 9/25/2018 16,057
6.15
98,751 Livestock 2011, 2012, 2013
7 3Degrees Blandin Forest 9/25/2018 33,943
6.25
212,144 U.S. Forest 2013, 2014
8 ACT Pocosin+ 12/20/2018 23,903
2.75
65,733 U.S. Forest 2002, 2003, 2004
9
Element
Markets Refex ODS 12/20/2018 21,418
4.95
106,019
Ozone Depleting
Substance 2011
10 3Degrees Blandin Forest 12/20/2018 29,679
5.70
169,170 U.S. Forest 2013, 2014
11
Element
Markets
Methane
Capture 9/12/2019 80,000
4.70
376,000
Mine Methane
Capture 2007
Project Protocol Description
Grotegut Dairy Livestock Grotegut Dairy is a 3,900 milk-cow operation in Newton, Wisconsin with a methane capture system.
Green Trees U.S. Forest
GreenTrees Advanced Carbon Restored Ecosystem is reforestation of agricultural lands into native
hardwood forest in Mississippi, Louisiana, Arkansas, and Illinois
San Juan Lachao Mexican Forest
Protection of forests located in High Biological Value Zones which contain flora and fauna listed in the
Mexican Endangered Species List and the International Union for Conservation of Nature’s Red List of
Threatened Species. Project in San Juan Lachao near Palo Alto's Sister City of Oaxaca.
Blandin Forest U.S. Forest Blandin Native American Hardwoods Conservation and Carbon Sequestration project in Minnesota.
Pocosin+ U.S. Forest
These projects are all forested land that will not be disturbed by human development. Without this
protection, the forests would be converted to grow wheat or corn. Forest conservation plays a vital
role in protecting freshwater systems like lakes. The forests around the lakes act as natural water
filters and purify the water for all who use it. The projects also support healthy populations of red
wolf, bald eagle, black bear, and various bird species.
Refex ODS Ozone Depleting Substance
The RemTec facility in Bowling Green, Ohio uses an argon arc plasma destruction device to achieve
99.99 percent removal. The majority of refrigerants originated in California, and all were sourced
within the United States.
The RemTec facility uses an argon arc plasma destruction device to achieve the required destruction
and removal efficiency of 99.99 percent. The majority of ODS refrigerants originated in California, and
all were sourced within the United States.
Methane Capture Mine Methane Capture
This project is the first of its kind. Peabody Natural Gas, LLC removed methane from the North
Antelope Rochelle Coal Mine before mining. The methane was compressed and transported to a
natural gas pipeline and distributed to a national gas grid for use as fuel. Before implementation of
the project, all the methane was vented to the atmosphere.
Protocol
Sum of
Offset
Purchased
(Tons)
Percentage
of Offset
Purchased
Sum of
Cost ($)
Average of
Offset
Purchase Rate
($/ton)
Livestock 21,972 6% $143,113 $7.16
Mexican Forest 17,000 5% $136,000 $8.00
Mine Methane Capture 80,000 21% $376,000 $4.70
Ozone Depleting Substance 21,418 6% $106,019 $4.95
U.S. Forest 235,525 63% $1,586,647 $5.60
Grand Total 375,915 100% $2,347,779 $6.25
Year
Sum of
Offset
Purchased
(Tons)
Sum of
Cost ($)
Average of
Offset
Purchase Rate
($/ton)
2017 170,915 $1,319,963 $7.64
2018 125,000 $651,817 $5.16
2019 80,000 $376,000 $4.70
Grand Total 375,915 $2,347,779 $6.25
6%4%
21%
6%63%
Offsets Purchased by Project Type
Livestock
Mexican Forest
Mine Methane Capture
Ozone Depleting Substance
U.S. Forest
•
•
•
•
•
City of Palo Alto (ID # 11648)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 12/7/2020
City of Palo Alto Page 1
Summary Title: Corte Madera Tank Replacement
Title: Approval of Contract Number C21175922A With Anderson Pacific
Engineering Construction, Inc., in the Amount of $5,545,000 for Corte
Madera Reservoir Replacement Project (WS-09000); and Authorization for
the City Manager to Negotiate and Execute Related Change Orders Not-to-
Exceed $554,500, for a Total Not-to-Exceed Amount of $6,099,500
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that the Council:
1. Approve and authorize the City Manager or designee to execute the contract
C21175922A with Anderson Pacific Engineering Construction, Inc., in an amount
not-to-exceed $5,545,000 for the Corte Madera Reservoir Replacement (WS-
09000) Capital Improvement Project; and
2. Approve and authorize the City Manager or designee to negotiate and execute
one or more change orders to the contract with Anderson Pacific Engineering
Construction, Inc. (APEC) for related additional but unforeseen work, which may
develop during the project, the total value of which shall not exceed $554,500 or
10% of the contract amount.
The total contract not-to-exceed amount is $6,099,500, which includes contract amount of
$5,545,000 and a 10% contingency of $554,500. The contract is linked here.
Background
The City of Palo Alto maintains a water system consisting of five receiving stations from San
Francisco Public Utilities Commission’s (SFPUC’s) Hetch Hetchy aqueduct system, seven
reservoirs, seven booster pumping stations, eight wells, and approximately 242 miles of water
transmission and distribution mains. Corte Madera reservoir is one of the three remaining
reservoirs in the system that have not been seismically rehabilitated or replaced.
Q
CITY OF
PALO
ALTO
City of Palo Alto Page 2
Corte Madera reservoir is a 1.5 million gallon (MG) above-ground welded steel reservoir that
was constructed in 1969 and is nearing the end of its useful life. Staff observed that Corte
Madera Reservoir was in the worst shape of the three remaining tanks. The exterior walls are
exhibiting heavy corrosion near the reservoir base, and the interior roof coating is delaminating
due to the corrosion underneath it. As a result, staff has spent significantly more time and
effort to maintain the water quality in the tank; for example, the reservoir flushing needs are
performed weekly. The structural condition has also led to safety concerns for staff to access
the roof, which has prevented regular roof inspections of the reservoir. Staff has notified the
State about the missed inspections and that the City was in the process of evaluating the tank
rehabilitation or replacement. Additionally, the reservoir does not meet current seismic and
structural code requirements for its location. After an in-house evaluation based on previous
rehabilitation projects, it was determined that it is more cost effective and will increase the
number of useful years to replace the tank than to rehabilitate it.
SRT Consultants (SRT) was hired to develop a preliminary design for the replacement of the
Corte Madera reservoir. SRT’s analysis included a return on investment analysis between steel
and concrete tank replacement. Although a steel tank typically has lower construction capital
cost, it requires significantly more maintenance. The total cost of a steel tank is expected to
exceed the cost of a concrete tank over its anticipated useful life. Another advantage of
concrete tanks is that they tend to maintain better water quality than steel tanks due to their
inherent insulating properties. Based on SRT’s analysis and recommendation, it was decided to
build a new, same capacity, above-ground, pre-stressed concrete reservoir. SRT’s evaluation
included development of a conceptual engineering report and preliminary (25%) design, as well
as a budgetary level cost estimate.
Discussion
Project Description
Due to the engineering issues involved with replacement of existing reservoirs, the design/build
method for this project was approved by the Utilities Director and the City Manager. The scope
of work for Corte Madera Reservoir Replacement Project includes the following:
• overall project design (reservoir with appurtenances, valve vault and piping, site piping
and electrical/instrumentation system)
• engineering construction support
• construction management
• demolition and excavation
• civil engineering and earthwork
• geotechnical and seismic improvements
• construction of reservoir with appurtenances (stairways, landing, ladders, mixer,
concrete testing, handrailing, hatches, manways, liner and drainage system, interior
piping, and overflow piping)
• construction of altitude valve and by-pass
• fence and paving
• storm drain system manhole
City of Palo Alto Page 3
• site drainage
• electric distribution and lighting system
• instrumentation, controls and security system
• water sampling system
• fiber optic conduit system
• permitting
• testing
Solicitation Process
On February 19th, 2020, a Request for Proposal (RFP) was posted on PlanetBids through the
City’s web portal for the Corte Madera Reservoir Replacement Project. Proposals were
received from two qualified firms on April 1st, 2020. Proposal cost ranged from $5,545,000 to
$6,799,000 with project duration ranging from 14 months to 19 months respectively.
Summary of Solicitation Process
Proposal Title Corte Madera Reservoir Replacement Project
Proposal Number RFP 175922 Design Build Services
Proposed Length of Project 14 months
Number of Notices sent to Vendors via City’s
eProcurement System (PlanetBids)
2090
Number of Proposal packages downloaded 57
Total Days to Respond to Proposal 41
Pre-Proposal Meeting? Yes (Mandatory)
Number of Proposals Received: 2
Bid Price Range $5,545,00 to $6,799,000
Company Name Location (City, State) Amount
Anderson Pacific Engineering Construction, Inc. Santa Clara, California $5,545,000
Overaa Construction Richmond, California $6,799,000
Staff has reviewed the two proposals and rated them based on the factors defined in Palo Alto
Municipal Code Section:
2.30.410 <https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-51990>.
Anderson Pacific Engineering Construction, Inc. (APEC) was the higher-ranked proposer with a
proposed cost of $5,545,000. Staff contacted other agencies pre-COVID and post-COVID that
had constructed similar tanks and compared the cost. After adjusting for differences in scope
and applying construction cost increases in recent years, the equivalent cost is between $5.8
and $7.0 million. Therefore $5.5 million to build the Corte Madera Reservoir is considered
reasonable for the work being performed under current market conditions.
The proposed cost is 10% above the original engineering estimate of $5,100,000. After APEC
was selected, staff negotiated with APEC on the proposed cost and project scope. Although the
cost was not reduced, staff was able to negotiate the final scope with additional items.
City of Palo Alto Page 4
Therefore, the difference between the proposed cost and engineering estimate is primarily due
to additional scope including geotechnical improvements. The following items were added to
the project scope as part of the negotiations:
• Reservoir geotechnical improvements in the form of underground piers
• Thicker reservoir concrete slab due to geotechnical improvements
• Additional concrete reinforcement due to increased concrete slab thickness
• Foundation keyway due to geotechnical improvements
• Additional excavation and backfilling due to geotechnical improvements
• Reservoir mixing system
• Reservoir interior piping
• Reservoir drainage system
• Reservoir overflow piping
• Doubling the length of fiber optic conduits installation
The contingency amount of $554,500, which equals 10 percent of the contract amount, is
recommended for additional unforeseen work that may develop during the project. Additional
work is common with construction projects because during construction there may be
previously unknown obstructions and ground conditions that require changes in how
construction will proceed, leading to change orders that may create additional costs. A
contingency fund is necessary to prevent significant delays in the project to handle these
unforeseen conditions. Any unspent contingency funds are returned to reserves at the end of
the project.
APEC, as the Design-Build team lead, teamed up with three (3) engineering consulting
companies to provide overall support for project design, engineering construction, geotechnical
engineering, and electrical/instrumentation engineering design. Additionally, the team includes
a subcontractor who is specialized in design and construction of pre-stressed concrete
reservoirs. Staff confirmed with the Contractor's State License Board that APEC, and their listed
subcontractor, have active licenses on file. Staff checked references provided by APEC for
previous work performed and received positive feedback from other agencies. Staff also
confirmed that both APEC and their subcontractor are registered and in good standing with the
California Department of Industrial Relations (DIR). In addition, APEC has contracted with the
City in the past for other Utilities capital improvement projects and has demonstrated the
knowledge and ability needed to complete this project on schedule and within budget.
Resource Impact
Funds for this contract ($5,545,000) and the contingency amount of ($554,500) are available in
the FY 2021 Adopted Capital Budget for the Water Fund in the Water Tank Seismic Water
System Upgrades project (WS-09000). Any unspent contract or contingency funds will be
returned to reserves at the end of the project.
Summary of Project Costs for Water Tank Seismic Water System Upgrades (WS-09000)
Design-Build Cost (Construction + Design) $5,545,000
City of Palo Alto Page 5
10% Contingency $554,500
Estimated Staff Time (Includes Engineering & Inspection Time) $831,750
TOTAL $6,931,250
Policy Implications
The approval of this contract is consistent with existing City policies including the Council
approved 2018 Utilities Strategic Plan (Staff Report 9022), especially the Strategic Objectives,
Priority 4 Strategy 1 “Establish a proactive infrastructure replacement program, based on
planned replacement before failure to support reliability and resiliency.” Facing an evolving
utility business environment, aging infrastructure needs, and sustainability objectives, CPAU
must maintain a competitive position in the market. Remaining financially sustainable and
competitive in the market while optimizing our resources is key to maintaining and enhancing
our value to customers. Strategies in this Priority focus on proactively renewing and managing
CPAU’s infrastructure, continuously improving financial processes, enhancing infrastructure
maintenance programs, defining CPAU’s role in community resiliency, and achieving sustainable
energy resource and water supply plans.
Stakeholder Engagement
Stakeholder engagement for this project consisted of the request for proposal process
described above. No public engagement was deemed necessary.
Environmental Review
This project is categorically exempt from California Environmental Quality Act (CEQA) pursuant
to CEQA Guidelines 15302 (replacement or reconstruction of existing facilities), since the new
structure will be located on the same site and have substantially the same purpose and capacity
as the structure replaced.
City of Palo Alto (ID # 11650)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 12/7/2020
City of Palo Alto Page 1
Council Priority: Climate/Sustainability and Climate Action Plan
Summary Title: RPS Procurement Plan and Enforcement Program Updates
Title: Adoption of a Resolution Approving the Updated Renewable Portfolio
Standard Procurement Plan and Enforcement Program
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that the City Council adopt a Resolution approving the City’s updated
Renewables Portfolio Standard (RPS) Procurement Plan and RPS Enforcement Program.
Background
California’s RPS Policy History
The State of California has an RPS program that is intended to increase the amount of electricity
generated each year from eligible renewable energy resources. In 2002, Senate Bill (SB) 1078
established California's first RPS, which required investor owned utilities (IOUs) to generate at
least 20% of their electric retail sales per year with eligible renewable energy resources by
2017. This objective was accelerated in 2006 under SB 107, which required IOUs to achieve the
20% target by 2010. While both of these laws applied specifically to IOUs, SB 1078 (2002)
directed local publicly owned utilities (POUs)—such as Palo Alto—to implement and enforce an
RPS that “recognizes the intent of the Legislature to encourage renewable resources, while
taking into consideration the effect of the standard on rates, reliability, and financial resources
and the goal of environmental improvement.” POU governing boards, including Palo Alto’s City
Council, were granted discretion over the mix and costs of resources procured for their own
RPS programs, and could also adopt more stringent standards.
In April 2011 California’s Governor Brown signed SB X1-2, known as the California Renewable
Energy Resources Act, into law, which extended California’s RPS mandate to 33% by 2020. In
addition, this new RPS law applied to all electricity retailers (or load serving entities, LSEs) in the
state—including POUs such as Palo Alto. SB X1-2 directed the California Energy Commission
(CEC) to adopt regulations specifying procedures for enforcement of a Renewables Portfolio
Standards for POUs. After some delay, the CEC adopted its final RPS regulations, which became
CITY OF
PALO
ALTO
City of Palo Alto Page 2
effective October 1, 2013.1
One of the key differences between SBX1-2 and the two previous state RPS laws is that SBX1-2
explicitly gave state regulators the authority to enforce the RPS mandate on POUs. Under SB
1078 and SB 107 the CEC was responsible only for certifying renewable facilities as eligible for
the RPS and for developing a tracking and verification system to prevent the double-counting of
renewable energy output. In contrast, SBX1-2 permitted the California Air Resources Board
(CARB) to impose financial penalties upon POUs for failure to comply with state RPS
regulations.
In September 2015, Governor Brown signed SB 350, known as the Clean Energy and Pollution
Reduction Act, which established clean energy, clean air, and greenhouse gas (GHG) reduction
goals, including reducing GHG to 40 percent below 1990 levels by 2030 and to 80 percent below
1990 levels by 2050. In terms of renewable energy, SB 350 also increased California's RPS
mandate level to 50% by 2030.
In September 2018, Governor Brown signed SB 100, known as the 100 Percent Clean Energy
Act. This law increased the RPS mandate yet again (this time to 50% by 2026 and 60% by 2030),
and also established a policy that 100% of the state’s retail electricity supply should come from
zero-carbon resources by 2045.
Palo Alto’s RPS Policy History
Palo Alto adopted its first RPS policy in 2002—nine years before it was required to adopt an RPS
by SB X1-2—setting a goal of obtaining 20% of its electricity from renewables by 2010 as part of
the Long-term Electric Acquisition Plan (LEAP). In December 2011, after the state adopted the
same RPS mandate as the City had established in 2002, Palo Alto increased its RPS target level
to 33% by 2015.
In March 2013, Palo Alto adopted the Carbon Neutral Plan (Resolution 9322, Staff Report 3550),
committing to matching the number of megawatt-hours of electrical energy that Palo Altans
use with an equal number of megawatt-hours of energy purchased from City of Palo Alto
Utilities’s (CPAU’s) contracted renewable and hydroelectric generating sources. Palo Alto has
achieved this carbon neutral objective every year starting in calendar year (CY) 2013, effectively
meeting the state’s “100% clean energy” target 32 years ahead of the schedule set by SB 100.
In 2018, following the passage of SB 350 and SB 100, Palo Alto adopted its first Integrated
Resource Plan (IRP) (Resolution 9802, Staff Report 9761), which was required of larger POUs
1 The current CEC RPS regulations were adopted in 2016, with an effective date of April 12, 2016. However, the
CEC is scheduled to adopt an updated set of RPS regulations at its December 9, 2020 business meeting that will
bring the RPS regulations into alignment with SB 100 (2018). However, because some of the provisions in SB 100
(namely the long-term procurement requirement) become effective on January 1, 2021, it is necessary for Palo
Alto to adopt these updated versions of its RPS Procurement Plan and RPS Enforcement Program even though the
CEC RPS regulations implementing SB 100 have yet to be formally adopted.
City of Palo Alto Page 3
under SB 350. The IRP replaced LEAP as Palo Alto’s long-term electric supply portfolio planning
framework, and formally merged the City’s RPS policy with the State RPS mandate as set forth
in the CEC’s RPS regulations.
Discussion
RPS Procurement Plan
While the IRP is now aligned with the State RPS mandate, and the City’s renewable
procurement complies with the RPS mandate, there is still a compliance filing, the City’s RPS
Procurement Plan, that the City is required to adopt and file with the CEC. This compliance filing
is aligned with previously adopted Council policies and will not result in any change to the City’s
electric supply or costs. Note that this compliance filing is less stringent than the City’s Carbon
Neutral Plan and is aligned with the minimum State RPS requirements. The compliance filing is
formulated this way to maximize the City’s ability to make decisions locally. If the community
wishes to make changes to the Carbon Neutral Plan, it can simply make those changes locally
rather than having to file an updated compliance filing with the CEC. Staff always manages the
City’s electric supply portfolio to the more stringent set of Council-adopted policies.
Exhibit A to Attachment A presents the proposed amended RPS Procurement Plan, which
includes changes designed to bring the City’s RPS Procurement Plan into alignment with current
state RPS law (SB 100). The RPS Procurement Plan requires CPAU to procure a minimum
quantity of electricity products from eligible renewable energy resources as a specified
percentage of CPAU’s total kilowatt-hours sold to its retail end-use customers. This quantity is
measured during each three- or four-year compliance period, to achieve the targets specified in
SB 100 and the CEC’s RPS regulations. In addition to establishing minimum procurement targets
in the defined compliance periods, the City’s RPS Procurement Plan includes the following
elements:
1. Adopts the CEC’s definitions of the Procurement Content Categories (PCC0, PCC1, PCC2,
and PCC3) for the different types of renewable energy as a function of when contracts
were executed, where the generation supply is located, and how the renewable
attributes are bundled with the energy generation;
2. Adopts the CEC’s limits on portfolio balance requirements in terms of the percentage of
PCC1, PCC2, and PCC3 that can be contained in CPAU’s RPS portfolio.
3. Adopts the CEC’s requirement that a minimum of 65% of CPAU’s RPS generation be
procured under long-term contracts (at least 10 years in duration) or ownership
arrangements;
4. Describes the process, calculation and criteria for using historic carryover, whereby
historic carryover recognizes early investments in renewable energy by allowing pre-
December 31, 2010 generation to count towards future compliance requirements under
certain conditions;
5. Outlines procedures for applying excess renewable energy from one compliance period
to a subsequent period;
City of Palo Alto Page 4
6. Describes procedures allowing for a delay of timely compliance due to mitigating
circumstances beyond CPAU’s control;
7. Allows for the adoption of cost limitations for procurement expenditures;
8. Allows for the reduction or relaxation of the portfolio balance requirements under
certain conditions;
9. Allows for the reduction of CPAU’s procurement requirements during years in which
CPAU receives generation from its large hydroelectric resources that exceeds certain
amounts;
10. Summarizes external reporting requirements; and
11. Provides for an annual review of the RPS Procurement Plan.
RPS Enforcement Program
Exhibit B to Attachment A presents the proposed amended RPS Enforcement Program, which
contains pro forma enforcement language, and which has also been updated to bring the City’s
RPS Enforcement Program into alignment with current state RPS law (SB 100). In implementing
this program, the City Manager or their designee, the Director of Utilities, shall annually
determine the City’s compliance with California’s RPS Program. If the City is not in compliance
with California’s RPS program, then the Council shall require the City Manager or their
designee, the Director of Utilities, to:
1. Review and ascertain what changes are necessary to ensure compliance in the
subsequent compliance periods;
2. Report quarterly to the Council on the progress made regarding ensuring compliance in
subsequent compliance periods; and
3. Report to the Council on the status of meeting subsequent compliance targets and all
steps taken and to be taken to ensure that compliance obligations will be timely met.
Resource Impact
Adoption of the attached resolution will not result in a financial impact to the City because the
City’s current renewables portfolio already exceeds the minimum procurement requirements
established under California’s RPS Program. (For 2019, the City achieved an RPS level of 37%—
even after selling a significant amount of renewable generation—which exceeded the state’s
RPS target of 31% for that year.)
Policy Implications
Adoption of the attached resolution will enable the City to comply with the CEC regulations
implementing California’s RPS Program (California Code of Regulations, Title 20, Division 2,
Sections 1240 and 3200-3208).
Stakeholder Engagement
The proposed changes to the City’s RPS Procurement Plan and RPS Enforcement Program are
relatively minor and highly administrative in nature, and therefore would not normally involve
City of Palo Alto Page 5
much, if any, public engagement. However, in the process of updating the City’s Carbon Neutral
Plan recently, staff discussed the proposed changes to these documents with the Utilities
Advisory Commission (UAC) at their July 1, 2020 meeting (Staff Report 11393).
Environmental Review
Adoption of the attached resolution approving the updated RPS Procurement Plan and RPS
Enforcement Program is not a project 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
Attachment A
* NOT YET APPROVED *
10292020AB 1
Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving the 2020
Renewables Portfolio Standard Procurement Plan and 2020
Renewables Portfolio Standard Enforcement Program
R E C I T A L S
A. In September 2018, Governor Brown signed into law Senate Bill 100, the 100
Percent Clean Energy Act, which raised the amounts of renewable energy that electric utilities
are required to procure under the California Renewables Portfolio Standard (RPS) Program to
60% by 2030, and established a policy that 100% of the state’s electricity supply should come
from zero-carbon resources by 2045.
B. Under the California RPS Program, the City must adopt a RPS Procurement Plan
to conform to state law, and must provide notice to the public and California Energy
Commission (CEC) regarding any proposed modifications to its RPS Procurement Plan.
C. To carry out the California RPS Program, the CEC adopted regulations specifying
procedures for enforcement of the Renewables Portfolio Standards for publicly owned utilities
such as the City of Palo Alto Utilities department (CPAU), entitled "Enforcement Procedures for
the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities" (CEC RPS
Regulations, effective April 12, 2016).
D. The City of Palo Alto first adopted a RPS Procurement Plan on December 12,
2011 (Resolution 9215) and subsequently updated it on November 12, 2013 (Resolution 9381)
and December 3, 2018 (Resolution 9802) to align with updates to the California RPS Program
law set forth in Senate Bill 350 (2015).
E. The City of Palo Alto first adopted a RPS Enforcement Program on December 12,
2011 (Resolution 9214) and subsequently updated it on December 3, 2018 (Resolution 9802) to
align with Senate Bill 350.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the 2020 Renewables Portfolio Standard
Procurement Plan (Exhibit A), to align with Senate Bill 100.
SECTION 2. The Council hereby approves the 2020 Renewables Portfolio Standard
Enforcement Program (Exhibit B), to align with Senate Bill 100.
//
//
//
Attachment A
* NOT YET APPROVED *
10292020AB 2
//
SECTION 3. The Council finds that the adoption of this resolution approving the 2020
RPS Procurement Plan and 2020 RPS Enforcement Program is not a project subject to California
Environmental Quality Act (CEQA) review because adoption of this resolution is 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)).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
City of Palo Alto (ID # 11654)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 12/7/2020
City of Palo Alto Page 1
Summary Title: Approval of Airport On Call Consulting Contracts
Title: Approval of Three Five-year Contracts for the Palo Alto Airport With: 1)
Burns & McDonnell in the Amount of $1,000,000 to Provide
Design/Engineering and Grant Administration Services, 2) C&S Engineers, Inc.
in the Amount of $1,500,000 to Provide Planning and Construction
Management Services, and 3) Centurion Planning in the Amount of
$1,000,000 to Provide Environmental Services; and Approval of a Fiscal Year
2021 Budget Amendment in the Airport Enterprise Fund
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1. Approve and authorize the City Manager or his designee to execute the attached
contract with Burns & McDonnell Engineering Company, Inc. (Attachment A) for
an amount not to exceed $1,000,000 for on-call consulting services for a term of
five years;
2. Approve and authorize the City Manager or his designee to execute the attached
contract with C&S Engineers, Inc. (Attachment B) for an amount not to exceed
$1,500,000 for on-call consulting services for a term of five years;
3. Approve and authorize the City Manager or his designee to execute the attached
contract with Centurion Planning & Design, LLC (Attachment C) for an amount
not to exceed $1,000,000 for on-call consulting services for a term of five years;
and
4. Amend the Fiscal Year 2021 Budget Appropriation for the Airport Enterprise
Fund, by a 2/3 vote, by:
a) Increasing the contract services expenditure appropriation by
$100,000; and
b) Decreasing the ending fund balance by $100,000.
City of Palo Alto Page 2
Executive Summary
As part of grant eligibility, the Federal Aviation Administration (FAA) requires that the City
conduct a consultant selection process that preapproves consultants for a five-year period.
Airport sponsors must use qualifications-based selection procedures, omitting proposed fees, in
the selection and engagement of consultants.
Staff conducted a competitive solicitation process to identify the firms best suited to provide
specific expertise and consultant support on an as-needed basis. Three consultants, Burns &
McDonnell Engineering Company, Inc., C&S Engineers, Inc., and Centurion Planning & Design,
LLC, were chosen to provide a variety of design, construction administration, environmental
studies, and other planning functions as required for FAA Airport Capital Improvement
Programs (CIP) and received FAA acceptance.
For many of these on-call services, 90% of the costs are reimbursable through FAA grants. Work
will be authorized by issuance of task orders as needed for each service required by the City.
Background
Shortly after the transfer of the Airport from the County of Santa Clara to the City, the City
entered into five-year contracts with C&S Engineers, Inc., and Mead & Hunt, Inc., on October
27, 2014 (CMR #4948). These consultants performed various services for the airport including
design/engineering and construction management for the three phases of the Apron
Reconstruction Project. These contracts were extended (CMR #10724) for one year to allow for
the completion of current projects and will expire on December 31, 2020. The C&S Engineers,
Inc. contract was in a not to exceed amount of $3,600,326, and the Mead & Hunt, Inc. contract
was in a not-to-exceed amount of $2,192,806.
Discussion
In May 2020, staff released a Request for Qualifications (RFQ) to enter new on-call contracts.
Airport sponsors must use qualifications-based selection procedures, omitting proposed fees, in
the selection and engagement of consultants. After initial consultant evaluation and selection,
the proposer(s) then submit their fees. Staff is required to conduct an independent fee review
to ensure that fees submitted by the proposer(s) are within current industry thresholds and
staff is then free to negotiate costs. As a result of the competitive selection process, the City
may award one or more contracts for on-call services. Once consultant(s) selection and
negotiations have been completed the RFQ with the City’s recommended selection is submitted
to the FAA for review and acceptance.
Staff solicited statements of qualifications from qualified firms to provide on-call design,
engineering, planning, environmental, construction management, and other airport consulting
services for the Palo Alto Airport. Staff chose three consultants, Burns & McDonnell Engineering
Company, Inc., C&S Engineers, Inc., and Centurion Planning and Design, LLC to provide a variety
of design, construction administration, environmental studies, and other planning functions as
required for FAA Airport CIPs.
City of Palo Alto Page 3
All three of the on-call contracts will be subject to Council’s approval of funding for individual
CIP projects during the five-year term. Work will be authorized by issuance of task orders as
needed for each service required by the City.
A Budget Amendment is required for the Airport Enterprise Fund to add $100,000 for Contract
Services to allow for initial work on these contracts. This initial work will allow staff to prepare
for the upcoming FAA funding cycle in which 100% funding may be available.
Solicitation Process
On May 21, 2020, a notice for Request for Qualifications for on-call consultant services was
posted to the City’s eProcurement system, Planet Bids. Proposals were received from ten firms
on June 10, 2020.
An evaluation committee consisting of two staff from the Public Works Department, a member
of the City of Livermore Airport Management, and a member of the City of Redding Airport
Management reviewed the ten proposals. The committee carefully reviewed each firm's
qualifications and submittal in response to the criteria identified in the RFQ. The criteria used to
evaluate the proposing firms included: experience of the team with similar airport planning and
design/engineering projects, AIP-funded projects, and applicable FAA Advisory Circulars; the
team’s experience with environmental analysis and documentation; grant management and
construction management for similar airport projects; qualifications and specific experience of
key team members, including knowledge and experience of key team members with unique
local conditions; satisfaction of previous clients, with particular attention to completion of past
projects on time and within budget; and schedule and capacity to provide qualified personnel.
Proposal Title/Number On-Call Design, Engineering, Planning,
Environmental, Construction Management and
Other Airport Consulting Services for the Palo Alto
Airport (PAO)/RFQ 178372
Proposed Length of Project Multiple not to exceed five years
Total Days to Respond to Proposal 20
Pre-proposal Meeting Date NA
Number of Company Attendees at Pre-
proposal Meeting
NA
Number of Proposals Received: 10
Number of Companies Interviewed 6
Range of Proposal Amounts
Submitted
N/A – Per FAA grant process, qualifications-based
City of Palo Alto Page 4
The City reserves the right to award by item, group of items, or total proposed items, and to
award more than one contract at its sole discretion, to the most responsive and responsible
bidder(s).
Resource Impact
The recommendation in this report to award three on-call services contracts will require an
amendment to the Fiscal Year 2021 budget appropriation for the Airport Enterprise Fund, by a
2/3 vote, of $100,000. This will provide an initial funding base for these contracts in order to
complete the work necessary to submit the Airport CIP project plans to the FAA for review in
determining the amount of federal grant funding available for reimbursement. Sufficient
funding is available in the Airport Enterprise Fund ending fund balance to support this budget
amendment, and no General Fund contribution is required.
Additional work by the on-call contractors will be subject to Council’s approval of funding for
individual CIP projects during the five-year term. Work will be authorized by issuance of task
orders as needed for each service required by the City.
Policy Implications
This recommendation does not represent any change to existing City policies.
Stakeholder Engagement
Public Works Department staff, in conjunction with aviation professionals and attorneys,
participated in the development of the selection criteria and drafting of the RFQ. Aviation
professionals and City staff reviewed the proposals and conducted interviews with the top
firms. Following assessment and discussion by the panel, formal recommendations to award
contracts to multiple firms were made. No additional outreach was necessary.
Environmental Review
Approval of these contracts is exempt from the California Environmental Quality Act (CEQA)
pursuant to CEQA Guidelines Section 15061(b)(3).
Attachments:
ATTACHMENT A: PSA_AIRPORT-B&M_111920.docx
ATTACHMENT B: PSA_Airport-C&S Engineers_111920.docx
ATTACHMENT C: PSA_Airport-Centurion PD_111920.docx
Professional Services Rev. April 27, 2018 1
CITY OF PALO ALTO CONTRACT NO. C21178372B
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND BURNS & MCDONNELL
ENGINEERING COMPANY, INC FOR PROFESSIONAL SERVICES
This Agreement is entered into on this Seventh day of December, 2020, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal
corporation (“CITY”), and BURNS & MCDONNELL ENGINEERING COMPANY, INC, a
Missouri corporation, located at 9400 Ward Parkway, Kansas City, MO 64114
("CONSULTANT").
RECITALS The following recitals are a substantive portion of this Agreement.
A. CITY intends to improve the facilities at the Palo Alto Airport (“Project”) and desires to engage a consultant to provide various on-call services including design/engineering and grant
administration in connection with the Project (“Services”) as a result of the RFQ 178372 Palo Alto
Airport On-Call Consulting Services.
B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY in reliance on these representations desires to engage CONSULTANT to provide the
Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in
this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at
Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.) Services will be authorized by CITY, as needed, with a Task Order assigned and approved by
CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-1.
Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of
work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work
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Professional Services Rev. April 27, 2018 2
performed under an authorized Task Order and CITY may elect, but is not required, to authorize
work up to the maximum compensation amount set forth in Section 4.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through December, 31, 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 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 One Million Dollars ($1,000,000). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. The
applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE
SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or
expenses incurred for which payment would result in a total exceeding the maximum amount of
compensation set forth herein shall be at no cost to the CITY.
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 email all invoices to the City’s project manager at
Michael.Luetgens@CityofPaloAlto.org. 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
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Professional Services Rev. April 27, 2018 3
professional standard and quality that prevail among professionals in the same discipline and of
similar knowledge and skill engaged in related work throughout California under the same or
similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to
perform Services under this Agreement. CONSULTANT shall procure all permits and licenses,
pay all charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by
CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such
errors and omissions, any change order markup costs, or costs arising from delay caused by the
errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds ten percent
(10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved
recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in
performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act
as and be an independent contractor and not an agent or employee of CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of 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. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work
to be performed under this Agreement without the prior written authorization of the city manager
or designee. Option B: 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:
Lean Engineering COWI BAGG Engineering
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Professional Services Rev. April 27, 2018 4
R.E.Y. Engineers
Tammy Edmonds Design
CONSULTANT shall be responsible for directing the work of any subconsultants and for any
compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a
subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval
of the city manager or his designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Renju Abraham as the Project Manager to have supervisory responsibility for the performance, progress, and
execution of the Services. If circumstances cause the substitution of the project manager, project
coordinator, or any other key personnel for any reason, the appointment of a substitute project
manager 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 Michael Luetgens, Public Works Department, Airport Division Division, 1925 Embarcadero Road, Palo Alto, CA 94303, Telephone:650-329-2687. 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.
[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall
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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.
[Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members,
officers, employees and agents (each an “Indemnified Party”) from and against any and all
demands, claims, or liability of any nature, including death or injury to any person, property
damage or any other loss, including all costs and expenses of whatever nature including attorneys
fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees,
agents or contractors under this Agreement, regardless of whether or not it is caused in part by an
Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active
negligence, sole negligence or willful misconduct of an Indemnified Party.
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.
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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.
SECTION 19. TERMINATION OF AGREEMENT. (2 CFR § 200 Appendix II (B))
19.1. CITY may, by written notice, suspend or terminate this Agreement, in
whole or in part, at any time, either for CITY’s convenience or because of failure to fulfill the
Agreement obligations by giving ten (10) days prior written notice thereof to CONSULTANT.
Upon receipt of such notice, services must be immediately discontinued (unless the notice dictates otherwise) and all materials as may have been accumulated in performing this contract, whether
completed or in progress, delivered to CITY.
19.2 If the termination is for the convenience of the CITY, an equitable
adjustment in the Agreement price will be made, but no amount will be allowed for anticipated profit on unperformed services.
19.3. 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. 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. If the termination is due to failure to fulfill CONSULTANT’s obligations, 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. CITY may take over
the work and prosecute the same to completion by contract or otherwise. In such case the CONSULTANT is liable to the CITY for any additional cost occasioned to the CITY thereby.
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19.5. If, after notice of termination for failure to fulfill Agreement obligations, it
is determined that the CONSULTANT had not so failed, the termination will be deemed to have
been effected for the convenience of the CITY. In such event, adjustment in the Agreement price
will be made as provided in paragraph 19.2.
19.6. The rights and remedies of the CITY provided in this section 19 are in
addition to any other rights and remedies provided by law or under this Agreement.
19.7 No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on part of the 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 manager
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 identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic
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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
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
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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.
OR
26.1 CONSULTANT is required to pay general prevailing wages as defined in
Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section
1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor
Code of the State of California, the City Council has obtained the general prevailing rate of per
diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director
of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the
Purchasing Division’s office of the City of Palo Alto. CONSULTANT shall provide a copy of
prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage
rates as a minimum. CONSULTANT shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code
pertaining to prevailing wages.
26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any
contract for public works construction, alteration, demolition, repair or maintenance. SECTION 27. MISCELLANEOUS PROVISIONS.
27.1. This Agreement will be governed by the laws of the State of California.
27.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California.
27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties. 27.4. This document represents the entire and integrated agreement between the
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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 All unchecked boxes do not apply to this Agreement.
27.11 The individuals executing this Agreement represent and warrant that they
have the legal capacity and authority to do so on behalf of their respective legal entities.
27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement.
SECTION 28. ACCESS TO RECORDS AND REPORTS (2 CFR § 200.326 & 200.333).
CONSULTANT must maintain an acceptable cost accounting system. CONSULTANT agrees to provide CITY, the Federal Aviation Administration, and the Comptroller General of the United
States or any of their duly authorized representatives access to any books, documents, papers, and
records of CONSULTANT, which are directly pertinent to the specific contract for the purpose of
making audit, examination, excerpts and transcriptions. CONSULTANT agrees to maintain all books, records and reports required under this Agreement for a period of not less than three (3) years after final payment is made and all pending matters are closed.
SECTION 29. BREACH OF CONTRACT TERMS (2 CFR § 200 Appendix II(A)).
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Any violation or breach of terms of this Agreement on the part of CONSULTANT or its
subconsultants or subcontractors may result in the suspension or termination of this Agreement or
such other action that may be necessary to enforce the rights of the parties of this Agreement. The
duties and obligations imposed by the Agreement’s documents and the rights and remedies
available thereunder are in addition to, and not a limitation of, any duties, obligations, rights and remedies otherwise imposed or available by law.
SECTION 30. BUY AMERICA PREFERENCE (49 USC § 50101).
CONSULTANT agrees to comply with 49 USC § 50101, which provides that Federal funds may
not be obligated unless all steel and manufactured goods used in AIP-funded projects are produced in the United States, unless the Federal Aviation Administration has issued a waiver for the
product; the product is listed as an Excepted Article, Material Or Supply in Federal Acquisition
Regulation subpart 25.108; or is included in the Federal Aviation Administration Nationwide Buy
American Waivers Issued list.
SECTION 31. CIVIL RIGHTS - GENERAL (49 USC § 47123). CONSULTANT agrees that it will comply with pertinent statutes, Executive Orders and such rules
as are promulgated to ensure that no person shall, on the grounds of race, creed, color, national
origin, sex, age, or handicap be excluded from participating in any activity conducted with or benefiting from Federal assistance.
This provision binds CONSULTANT from the Request for Qualifications solicitation period
through the completion of the Agreement. This provision is in addition to that required of Title VI
of the Civil Rights Act of 1964.
This provision also obligates CONSULTANT for the period during which Federal assistance is
extended to the Palo Alto Airport through the Airport Improvement Program, except where Federal
assistance is to provide, or is in the form of personal property; real property or interest therein;
structures or improvements thereon. In these cases the provision obligates the party or any transferee for the longer of the following periods:
(a) the period during which the property is used by CITY or any transferee for a purpose for
which Federal assistance is extended, or for another purpose involving the provision of similar services or benefits; or
(b) the period during which CITY or any transferee retains ownership or possession of the
property.
SECTION 32. TITLE VI ASSURANCES.
32.1 Compliance with Nondiscrimination Requirements. During the performance
of this Agreement, CONSULTANT, for itself, its assignees, and successors in interest (hereinafter
included in the term CONSULTANT) agrees, as follows:
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(a) Compliance with Regulations: CONSULTANT will comply with the Title VI List of
Pertinent Nondiscrimination Statutes and Authorities, as they may be amended from time
to time, which are herein incorporated by reference and made a part of this contract.
(b) Non-discrimination: CONSULTANT, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, or national origin in the
selection and retention of subconsultants, including procurements of materials and leases
of equipment. CONSULTANT will not participate directly or indirectly in the
discrimination prohibited by the Acts and the Regulations, including employment practices
when the Contract covers any activity, project, or program set forth in Appendix B of 49 CFR part 21.
(c) Solicitations for Subcontracts, Including Procurements of Materials and Equipment:
In all solicitations, either by competitive bidding, or negotiation made by CONSULTANT for work to be performed under a subcontract, including procurements of materials, or
leases of equipment, each potential subconsultant or supplier will be notified by
CONSULTANT of CONSULTANT’s obligations under this Agreement and the Acts and
the Regulations relative to non-discrimination on the grounds of race, color, or national
origin.
(d) Information and Reports: CONSULTANT will provide all information and reports
required by the Acts, the Regulations, and directives issued pursuant thereto and will
permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by CITY or the Federal Aviation Administration to be pertinent to
ascertain compliance with such Acts, Regulations, and instructions. Where any
information required of CONSULTANT is in the exclusive possession of another who fails
or refuses to furnish the information, CONSULTANT will so certify to CITY or the
Federal Aviation Administration, as appropriate, and will set forth what efforts it has made to obtain the information.
(e) Sanctions for Noncompliance: In the event of CONSULTANT’s noncompliance with the
non-discrimination provisions of this Agreement, CITY will impose such contract sanctions as it or the Federal Aviation Administration may determine to be appropriate,
including, but not limited to:
1. Withholding payments to CONSULTANT under the Agreement until CONSULTANT complies; and/or
2. Cancelling, terminating, or suspending the Agreement, in whole or in part.
(f) Incorporation of Provisions: CONSULTANT will include the provisions of paragraphs
30.1(a) through 30.1(f) in every subcontract, including procurements of materials and
leases of equipment, unless exempt by the Acts, the Regulations and directives issued
pursuant thereto. CONSULTANT will take action with respect to any subcontract or
procurement as CITY or the Federal Aviation Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if
CONSULTANT becomes involved in, or is threatened with litigation by a subconsultant,
or supplier because of such direction, CONSULTANT may request CITY to enter into any
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litigation to protect the interests of CITY. In addition, CONSULTANT may request the
United States to enter into the litigation to protect the interests of the United States.
32.2 Title VI List of Pertinent Nondiscrimination Authorities.
During the performance of this Agreement, CONSULTANT, for itself, its assignees, and successors in interest (hereinafter included in the term CONSULTANT) agrees to comply with the
following non-discrimination statutes and authorities; including but not limited to:
(a) Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits
discrimination on the basis of race, color, national origin);
(b) 49 CFR part 21 (Non-discrimination In Federally-Assisted Programs of The Department
of Transportation—Effectuation of Title VI of The Civil Rights Act of 1964);
(c) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,
(42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has
been acquired because of Federal or Federal-aid programs and projects);
(d) Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR part 27;
(e) The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits
discrimination on the basis of age);
(f) Airport and Airway Improvement Act of 1982, (49 USC § 471, Section 47123), as
amended, (prohibits discrimination based on race, creed, color, national origin, or sex);
(g) The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage
and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act
of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of
the terms “programs or activities” to include all of the programs or activities of the Federal-
aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not);
(h) Titles II and III of the Americans with Disabilities Act of 1990, which prohibit
discrimination on the basis of disability in the operation of public entities, public and
private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131 – 12189) as implemented by Department of Transportation regulations at 49 CFR parts 37 and 38;
(i) The Federal Aviation Administration’s Non-discrimination statute (49 U.S.C. § 47123)
(prohibits discrimination on the basis of race, color, national origin, and sex);
(j) Executive Order 12898, Federal Actions to Address Environmental Justice in Minority
Populations and Low-Income Populations, which ensures discrimination against minority
populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income
populations;
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(k) Executive Order 13166, Improving Access to Services for Persons with Limited English
Proficiency, and resulting agency guidance, national origin discrimination includes
discrimination because of limited English proficiency (“LEP”). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access
to your programs (70 Fed. Reg. at 74087 to 74100);
(l) Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).
SECTION 33. CLEAN AIR AND WATER POLLUTION CONTROL (49 CFR §
18.36(i)(12). CONSULTANT and subconsultants agree:
33.1. That any facility to be used in the performance of the Agreement or
subcontract or to benefit from the Agreement is not listed on the Environmental Protection Agency
(“EPA”) List of Violating Facilities;
33.2 To comply with all the requirements of Section 114 of the Clean Air Act, as
amended, 42 U.S.C. 1857 et seq. and Section 308 of the Federal Water Pollution Control Act, as
amended, 33 U.S.C. 1251 et seq. relating to inspection, monitoring, entry, reports, and information,
as well as all other requirements specified in Section 114 and Section 308 of the Acts, respectively, and all other regulations and guidelines issued thereunder;
33.3. That, as a condition for the award of this Agreement, CONSULTANT or
subcontractor will notify the awarding official of the receipt of any communication from the EPA,
indicating that a facility to be used for the performance of or benefit from the contract is under consideration to be listed on the EPA List of Violating Facilities; and
33.4. To include or cause to be included in any construction contract or subcontract
which exceeds $100,000 the aforementioned criteria and requirements.
SECTION 34. CONTRACT WORKHOURS AND SAFETY STANDARDS ACT REQUIREMENTS (2 CFR § 200 Appendix II(E)).
34.1. Overtime Requirements. No contractor or subcontractor contracting for any
part of the Agreement’s work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic, including watchmen and guards,
in any workweek in which he or she is employed on such work to work in excess of forty hours in
such workweek unless such laborer or mechanic receives compensation at a rate not less than one
and one-half times the basic rate of pay for all hours worked in excess of forty hours in such
workweek.
34.2 Violation; Liability for Unpaid Wages; Liquidated Damages. In the event of
any violation of the clause set forth in paragraph 34.1 above, CONSULTANT and any
subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor
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and subcontractor shall be liable to the United States (in the case of work done under contract for
the District of Columbia or a territory, to such District or to such territory), for liquidated damages.
Such liquidated damages shall be computed with respect to each individual laborer or mechanic,
including watchmen and guards, employed in violation of the clause set forth in paragraph 1 above,
in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages
required by the clause set forth in paragraph 32.1 above.
34.3 Withholding for Unpaid Wages and Liquidated Damages. The Federal
Aviation Administration or CITY shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any
monies payable on account of work performed by CONSULTANT or subcontractor under any
such contract or any other Federal contract with the same prime contractor, or any other Federally-
assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by
the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the
clause set forth in paragraph 34.2 above.
34.4 Subcontractors. CONSULTANT shall insert in any subcontracts the clauses
set forth in paragraphs 34.1 through 34.4 and also a clause requiring the subcontractor to include these clauses in any lower tier subcontracts. CONSULTANT shall be responsible for compliance
by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs 32.1
through 34.4 of this section.
SECTION 35. CERTIFICATION REGARDING DEBARMENT AND SUSPENSION (2 CFR Part 180 (Subpart C); 2 CFR Part 1200; DOT Order 4200.5).
35.1. Certificate Regarding Debarment and Suspension (Bidder or Offeror). By
submitting a Statement of Qualifications (”SOQ”) under CITY’s Request for Qualifications
solicitation, CONSULTANT certified that at the time it submitted its SOQ that neither it nor its principals were presently debarred or suspended by any Federal department or agency from
participation in this transaction.
35.2 Certification Regarding Debarment and Suspension (Successful Bidder
Regarding Lower Tier Participants). CONSULTANT, as the successful bidder, by administering each lower tier subcontract that exceeds $25,000 as a “covered transaction”, must verify each lower
tier participant of a “covered transaction” under the Project is not presently debarred or otherwise
disqualified from participation in this federally assisted project. CONSULTANT will accomplish
this by:
(a) Checking the System for Award Management at website: http://www.sam.gov.
(b) Collecting a certification statement similar to the Certificate Regarding Debarment and
Suspension (Bidder or Offeror), above.
(c) Inserting a clause or condition in the covered transaction with the lower tier contract.
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If the Federal Aviation Administration later determines that a lower tier participant failed to tell a
higher tier that it was excluded or disqualified at the time it entered the covered transaction, the
Federal Aviation Administration may pursue any available remedy, including suspension and
debarment
.
SECTION 36. DISADVANTAGED BUSINESS ENTERPRISE (49 CFR Part 26).
36.1 Contract Assurance (§ 26.13). CONSULTANT or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract.
CONSULTANT shall carry out applicable requirements of 49 CFR Part 26 in the award and
administration of DOT assisted contracts. Failure by CONSULTANT to carry out these
requirements is a material breach of this contract, which may result in the termination of this
contract or such other remedy, as the recipient deems appropriate.
36.1 Prompt Payment (§ 26.29). CONSULTANT agrees to pay each subcontractor
under this prime contract for satisfactory performance of its contract no later than {specify
number} days from the receipt of each payment CONSULTANT receives from {Name of
recipient}. CONSULTANT agrees further to return retainage payments to each subcontractor within {specify the same number as above} days after the subcontractor's work is satisfactorily
completed. Any delay or postponement of payment from the above referenced time frame may
occur only for good cause following written approval of the {Name of Recipient}. This clause
applies to both DBE and non-DBE subcontractors.
SECTION 37. FEDERAL FAIR LABOR STANDARDS ACT (FEDERAL MINIMUM WAGE) (29 USC § 201, et seq.).
All contracts and subcontracts that result from the RFQ solicitation incorporate the following
provisions by reference, with the same force and effect as if given in full text. CONSULTANT has full responsibility to monitor compliance to the referenced statute or regulation. CONSULTANT
must address any claims or disputes that pertain to a referenced requirement directly with the
Federal Agency with enforcement responsibilities.
Requirement Federal Agency with Enforcement Responsibilities
Federal Fair Labor Standards Act (29 USC
201)
U.S. Department of Labor – Wage and Hour
Division
SECTION 37. LOBBYING AND INFLUENCING FEDERAL EMPLOYEES (40 CFR Part 20, Appendix A). CONSULTANT certified by signing and submitting its SOQ, to the best of its
knowledge and belief, that:
37.1 No Federal appropriated funds have been paid or will be paid, by or on behalf of the bidder or offeror, to any person for influencing or attempting to influence an officer or
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employee of an agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with the awarding of any Federal contract, the
making of any Federal grant, the making of any Federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment, or modification of any Federal
contract, grant, loan, or cooperative agreement.
37.2 If any funds other than Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or employee of any agency,
a Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report
Lobbying,” in accordance with its instructions.
These certifications are material representations of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and
not more than $100,000 for each such failure.
SECTION 38. OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970 (20 CFR Part 1910). All contracts and subcontracts that result from this solicitation incorporate the following
provisions by reference, with the same force and effect as if given in full text. CONSULTANT
has full responsibility to monitor compliance to the referenced statute or regulation. CONSULTANT must address any claims or disputes that pertain to a referenced requirement
directly with the Federal Agency with enforcement responsibilities.
Requirement Federal Agency with Enforcement
Responsibilities
Occupational Safety and Health Act of 1970
(20 CFR 1910)
U.S. Department of Labor – Occupational
Safety and Health Administration
SECTION 39. RIGHTS TO INVENTIONS (2 CFR § 200 Appendix II (F)).
All rights to inventions and materials generated under this Agreement are subject to requirements and regulations issued by the Federal Aviation Administration and CITY of the Federal grant under
which this Agreement is executed.
SECTION 40. TRADE RESTRICTION (49 CFR Part 30).
CONSULTANT or subcontractor, by submission of an offer and/or execution of a contract,
certifies that it:
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40.1 Is not owned or controlled by one or more citizens of a foreign country
included in the list of countries that discriminate against U.S. firms published by the Office of the
United States Trade Representative (“USTR”);
40.2 Has not knowingly entered into any contract or subcontract for this Project
with a person that is a citizen or national of a foreign country on said list, or is owned or controlled
directly or indirectly by one or more citizens or nationals of a foreign country on said list;
40.3 Has not procured any product nor subcontracted for the supply of any product for use on the project that is produced in a foreign country on said list.
Unless the restrictions of this clause are waived by the Secretary of Transportation in accordance
with 49 CFR 30.17, no contract shall be awarded to a contractor or subcontractor who is unable to
certify to the above. If CONSULTANT knowingly procures or subcontracts for the supply of any product or service of a foreign country on said list for use on the project, the Federal Aviation
Administration may direct through CITY cancellation of the Agreement at no cost to the Federal
Government.
Further, CONSULTANT agrees that, if awarded a contract resulting from this solicitation, it will
incorporate this provision for certification without modification in each contract and in all lower
tier subcontracts. CONSULTANT may rely on the certification of a prospective subcontractor
unless it has knowledge that the certification is erroneous.
CONSULTANT shall provide immediate written notice to CITY if CONSULTANT learns that its
certification or that of a subcontractor was erroneous when submitted or has become erroneous by
reason of changed circumstances. The subcontractor agrees to provide written notice to
CONSULTANT if at any time it learns that its certification was erroneous by reason of changed
circumstances.
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CONTRACT No. C21178372B 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 (Required on contracts over
$85,000)
Purchasing Manager (Required on contracts
over $50,000) Contracts Administrator (Required on
contracts under $50,000)
APPROVED AS TO FORM:
__________________________
City Attorney or designee
(Required on Contracts over $25,000)
BURNS & MCDONNELL
ENGINEERING COMPANY, INC Officer 1
By:
Name: David G Yeamans, PE
Title: President / Aviation & Federal Group
Officer 2 (Required for Corp. or LLC)
By:
Name: Joelle Paracsi
Title: Assistant Secretary – Aviation & Federal Group
Attachments: EXHIBIT “A”: SCOPE OF SERVICES
EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER (for on-call contracts only)
EXHIBIT “B”: SCHEDULE OF PERFORMANCE
EXHIBIT “C”: COMPENSATION
EXHIBIT “C-1”: HOURLY RATE SCHEDULE EXHIBIT “D”: INSURANCE REQUIREMENTS
EXHIBIT “E”: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
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EXHIBIT “A” SCOPE OF SERVICES
Consultant shall provide on-call services at the Palo Alto Airport in connection with categories
associated with the airfield improvements identified on the ACIP: Design/Engineering and Grant Administration.
The Consultant will provide design/engineering services associated with taxiway, runway, and
roadway improvements at the Airport. Specific projects include:
Reconstruction Access Roads
AWOS III
Airfield Electrical Improvements
Runway and Taxiway Reconstruction and Drainage Design
The Consultant will also provide miscellaneous services as may be required by the City from
time to time including:
Assisting in project coordination with the FAA and the California Department of
Transportation, Division of Aeronautics (the “Division of Aeronautics”)
Assist the City with preparing necessary applications and documentation for FAA Airport Improvement Program (AIP) grant funding. Representing the City in discussions with the
FAA regarding work program, grant requirements, and project documentation.
Advising the City on FAA standards and guidelines for construction standards and
operational safety during construction.
Advertising and securing bids, attending pre-bid conferences, analyzing bid results,
negotiating services, and preparation for contract award documents.
Other design/engineering services and facilities planning as required.
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(Optional – for On Call Agreements only)
EXHIBIT “A-1”
PROFESSIONAL SERVICES TASK ORDER
Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement 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. ISSUE DATE Purchase Requisition No.
1A. MASTER AGREEMENT NUMBER
1B. TASK ORDER NO. 2. CONSULTANT
3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT $__________________________________ 5. BUDGET CODE: _______________
COST CENTER_________________ COST ELEMENT______________ WBS/CIP___ _______PHASE___
6. CITY PROJECT MANAGER’S NAME/DEPARTMENT_________________________________________
7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE:
WORK TO BE PERFORMED
SCHEDULE OF WORK
BASIS FOR PAYMENT & FEE SCHEDULE
DELIVERABLES
REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________
-----------------------------------------------------------------------------------------------------------------------------------
I hereby authorize the performance of I hereby acknowledge receipt and acceptance
the work described above in this Task Order. of this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED: APPROVED:
CITY OF PALO ALTO COMPANY NAME: ______________________
BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________
Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________
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EXHIBIT “B” SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services to the schedule set forth in each task order.
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EXHIBIT “C”
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed
in accordance with the terms and conditions of this Agreement based on the hourly rate
schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services,
additional services, and reimbursable expenses shall not exceed the amount(s) stated in
Section 4 of this Agreement. CONSULTANT agrees to complete all Services and
Additional Services, including reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the
CITY.
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.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges are reimbursable at actual cost.
All requests for payment of expenses shall be accompanied by appropriate backup
information. Any expense anticipated to be more than $250 shall be approved in advance by the CITY’s project manager.
EXHIBIT “C-1”
SCHEDULE OF RATES
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Prevailing Wage (PW) & Staffl Year (R8te: S/Hr)
Ch8rge Classification I 2021 2022 2023 2024 2025
Inspection Rates
PW2/Consuuction Inspect°' 160 163 166 169 172
PW3/Geotectmical Driller,
Soils, Asphalt, Earthwor1c 150 153 156 159 162 Grading, Excavation, Backfill
and Environmental Sampling•
PW4/Aa and ICC 135 138 141 144 147
Personnel Rates
Principal/Supervisory
Engineer and Project 250 253 256 259 262
Manager
Project Engineer and 200 203 206 209 212 Supervisory Technician
Drafting 100 103 106 109 112
'These rates are assumed to tile most appbcable to thts proJect.
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ill R.E.Y. ENGI NEERS, INC.
Palo Alto Airport On-Call
2020 2021 2022 2023 2024 2025
Principal Manager -II $288 S297 $306 S315 S324 $334
Principal Manager -I $268 S276 $284 S293 $302 $311
Senior Engineer/Surveyor -V $258 S266 $274 S282 S290 $299
Senior Engineer/Surveyor -IV $243 S250 $258 $266 $273 $282
Senior Engineer/Surveyor -Ill $228 S235 $242 S249 S257 $264
Senior Engineer/Surveyor -II $213 $219 $226 S233 $240 $247
Senior Engineer/Surveyor -I $198 $204 $210 $216 $223 $230
Associate Engineer/Surveyor -V $185 $191 $196 S202 S208 $214
Associate Engineer/Su!Ve)'Or -IV $175 S180 $186 $191 S197 $203
Associate Engineer/Surveyor -Ill $165 S170 $175 S180 S186 $191
Associate Engineer/surveyor -II $155 S160 $164 $169 $174 $180
Associate Engineer/Surveyor -I $145 $149 $154 $158 S163 $168
Assistant Engineer/Surveyor -V $151 $156 $160 $165 $170 $175
Assistant Engineer/Surveyor -IV $141 $145 $150 $154 S159 $163
Assistant Engineer/Surveyor -Ill $131 S135 $139 $143 S147 $152
Assistant Engineer/Surveyor -II $121 $125 $128 $132 S136 $140
Assistant Engineer/Surveyor -I $111 Sl14 S118 $121 S125 $129
3-Person Survey Cfew $385 $397 $408 $421 $433 $446
2-Person survey Crew $295 $304 $313 $322 $332 $342
1-Person Survey Crew $190 $196 $202 $208 $214 $220
Senior LiDAR Specialist II $247 S254 $262 $270 S278 $286
Senior LiDAR Specialist $205 $211 $217 S224 $231 $238
LiDAR Technician -111 $179 S184 $190 $196 $201 $208
LiDAR Technician -II $164 $169 $174 $179 $185 $190
LiDAR Technician -1 $149 $153 $158 $163 $168 $173
Senior Technician -lll $173 S178 $184 $189 S195 $201
Senior Technician -II $158 $163 $168 $173 $178 $183
Senior Technician -1 $143 S147 $152 $156 S161 $166
Technician -Ill $123 S127 $130 $134 $138 $143
Technician -II $107 $110 $114 $117 S120 $124
Technician -I $92 $9S $98 $101 S104 $107
Project Coordimitor $125 $129 $133 S137 $141 $14S
Project Administrator $95 $98 $101 $104 $107 $110
TefTestrial l.J.DAR Scanning Equipment• $75 $75 $75 S7S $75 $7S
Mobile LiOAR Equipment• $600 $600 $600 $600 $600 $600
UAV (Drone) LiDAR Systen, .. $450 S4SO $450 S4SO S450 $450
•per hour
0 per project mght day
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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
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 $2,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT
AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT
THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”
A. PRIMARY COVERAGE
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
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THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS
ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT
OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL:
HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569
OR
HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP
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EXHIBIT “E”
DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement
with CONSULTANT without proof that CONSULTANT and its listed subcontractors are
registered with the California Department of Industrial Relations (“DIR”) to perform public work,
subject to limited exceptions. City requires CONSULTANT and its listed subcontractors to
comply with the requirements of SB 854.
CITY provides notice to CONSULTANT of the requirements of California Labor Code section
1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of
any contract for public work, as defined in this chapter, unless currently registered and qualified
to perform public work pursuant to Section 1725.5. It is not a violation of this section for an
unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and
Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract
is awarded.”
CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is
required to post all job site notices prescribed by law or regulation and CONSULTANT is subject to SB 854-compliance monitoring and enforcement by DIR.
CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of
Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security number, work
classification, straight time and overtime hours worked each day and week, and the actual per diem
wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively,
CONSULTANT and its listed subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and made available
for inspection at all reasonable hours at the principal office of CONSULTANT and its listed
subcontractors, respectively.
At the request of CITY, acting by its project manager, CONSULTANT and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY’s request.
CITY requests CONSULTANT and its listed subcontractors to submit the certified
payroll records to the project manager at the end of each week during the Project. If the certified payroll records are not produced to the project manager within the 10-day period,
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then CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred
dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold
the sum total of penalties from the progress payment(s) then due and payable to CONSULTANT.
Inform the project manager of the location of CONSULTANT’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also
provide notice to the project manager within five (5) business days of any change of location of
those payroll records.
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CITY OF PALO ALTO CONTRACT NO. C21178372C
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND C&S ENGINEERS
FOR PROFESSIONAL SERVICES
This Agreement is entered into on this Seventh day of December, 2020,
(“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and C&S ENGINEERS, INC, a New York Corporation, located at 499
Col. Eileen Collins Boulevard, Syracuse, New York 13212 ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to improve the facilities at the Palo Alto Airport (“Project”) and desires to
engage a consultant to provide various on-call services including construction management and
planning in connection with the Project (“Services”) as a result of the RFQ 178372 Palo Alto Airport On-Call Consulting Services.
B. CONSULTANT has represented that it has the necessary professional expertise,
qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY in reliance on these representations desires to engage CONSULTANT to provide the
Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in
this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at
Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.
Optional On-Call Provision (This provision only applies if checked and only applies to on-call
agreements.)
Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of
work, a specific schedule of performance and a specific compensation amount. The total price of
all Task Orders issued under this Agreement shall not exceed the amount of Compensation set
forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4.
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SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through December 31, 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
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 One Million Five Hundred Thousand Dollars
($1,500,000.00). CONSULTANT agrees to complete all Basic Services, including reimbursable
expenses, within this amount. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this
Agreement. Any work performed or expenses incurred for which payment would result in a total
exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY.
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 email all invoices to the City’s project manager at
Michael.Luetgens@CityofPaloAlto.org. 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
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similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses,
pay all charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such
errors and omissions, any change order markup costs, or costs arising from delay caused by the
errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds ten percent
(10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to
CITY for aligning the PROJECT design with the budget, incorporate CITY approved
recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in
performing the Services under this Agreement CONSULTANT, and any person employed by or
contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act
as and be an independent contractor and not an agent or employee of CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign
or transfer any interest in this Agreement nor the performance of any of 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.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work
to be performed under this Agreement without the prior written authorization of the city manager
or designee.
Option B: 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:
LEAN Engineering
Padilla & Associates
HMMH Towill
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CONSULTANT shall be responsible for directing the work of any subconsultants and for any
compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning
compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a
subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval
of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Lance McIntosh
as the Project Principal to have supervisory responsibility for the performance, progress, and
execution of the Services. If circumstances cause the substitution of the project Principal, project
coordinator, or any other key personnel for any reason, the appointment of a substitute project Principal 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 Michael Luetgens, Public Works Department, Airport Division, 1925
Embarcadero Road, Palo Alto, CA 94303, Telephone:650-329-2687. 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. [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed
professional land surveyors.] 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
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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.
[Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law,
CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members,
officers, employees and agents (each an “Indemnified Party”) from and against any and all
demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys
fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any
manner related to performance or nonperformance by CONSULTANT, its officers, employees,
agents or contractors under this Agreement, regardless of whether or not it is caused in part by an
Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active
negligence, sole negligence or willful misconduct of an Indemnified Party.
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
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will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing
with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or
modification. If the insurer cancels or modifies the insurance and provides less than thirty (30)
days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written
notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates
evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term
of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss
caused by or directly arising as a result of the Services performed under this Agreement, including
such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OF AGREEMENT. (2 CFR § 200 Appendix II (B))
19.1. CITY may, by written notice, suspend or terminate this Agreement, in
whole or in part, at any time, either for CITY’s convenience or because of failure to fulfill the Agreement obligations by giving ten (10) days prior written notice thereof to CONSULTANT.
Upon receipt of such notice, services must be immediately discontinued (unless the notice dictates
otherwise) and all materials as may have been accumulated in performing this contract, whether
completed or in progress, delivered to CITY.
19.2 If the termination is for the convenience of the CITY, an equitable
adjustment in the Agreement price will be made, but no amount will be allowed for anticipated
profit on unperformed services.
19.3. 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. 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. If the termination is due to failure to fulfill CONSULTANT’s obligations,
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. CITY may take over the work and prosecute the same to completion by contract or otherwise. In such case the
CONSULTANT is liable to the CITY for any additional cost occasioned to the CITY thereby.
19.5. If, after notice of termination for failure to fulfill Agreement obligations, it is determined that the CONSULTANT had not so failed, the termination will be deemed to have been effected for the convenience of the CITY. In such event, adjustment in the Agreement price
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will be made as provided in paragraph 19.2.
19.6. The rights and remedies of the CITY provided in this section 19 are in
addition to any other rights and remedies provided by law or under this Agreement.
19.7 No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on part of the 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 principal 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
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
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penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
to nondiscrimination in employment.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated
by reference and may be amended from time to time. CONSULTANT shall comply with waste
reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste
best practices include first minimizing and reducing waste; second, reusing waste and third,
recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements:
(a) All printed materials provided by CCONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes,
invoices, reports, and public education materials, shall be double-sided and printed
on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a
professional printing company shall be a minimum of 30% or greater post-
consumer material and printed with vegetable based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and
packaging. A copy of this policy is on file at the Purchasing Division’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to CITY, for reuse or recycling. CONSULTANT shall provide
documentation from the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of
work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay
such employees no less than the minimum wage set forth in Palo Alto Municipal Code section
4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In
addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060.
SECTION 25. NON-APPROPRIATION
25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following
fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for
a portion of the fiscal year and funds for this Agreement are no longer available. This section shall
take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
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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.
OR
26.1 CONSULTANT is required to pay general prevailing wages as defined in
Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section
1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per
diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of worker needed to execute the contract for this Project from the Director
of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the
Purchasing Division’s office of the City of Palo Alto. CONSULTANT shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage
rates as a minimum. CONSULTANT shall comply with the provisions of all sections, including,
but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code
pertaining to prevailing wages.
26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any
contract for public works construction, alteration, demolition, repair or maintenance.
SECTION 27. MISCELLANEOUS PROVISIONS.
27.1. This Agreement will be governed by the laws of the State of California.
27.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.
27.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys' fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.
27.4. This document represents the entire and integrated agreement between the
parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties.
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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 All unchecked boxes do not apply to this Agreement.
27.11 The individuals executing this Agreement represent and warrant that they
have the legal capacity and authority to do so on behalf of their respective legal entities.
27.12 This Agreement may be signed in multiple counterparts, which shall, when
executed by all the parties, constitute a single binding agreement.
SECTION 28. ACCESS TO RECORDS AND REPORTS (2 CFR § 200.326 & 200.333). CONSULTANT must maintain an acceptable cost accounting system. CONSULTANT agrees to
provide CITY, the Federal Aviation Administration, and the Comptroller General of the United
States or any of their duly authorized representatives access to any books, documents, papers, and records of CONSULTANT, which are directly pertinent to the specific contract for the purpose of making audit, examination, excerpts and transcriptions. CONSULTANT agrees to maintain all
books, records and reports required under this Agreement for a period of not less than three (3)
years after final payment is made and all pending matters are closed.
SECTION 29. BREACH OF CONTRACT TERMS (2 CFR § 200 Appendix II(A)). Any violation or breach of terms of this Agreement on the part of CONSULTANT or its
subconsultants or subcontractors may result in the suspension or termination of this Agreement or
such other action that may be necessary to enforce the rights of the parties of this Agreement. The
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duties and obligations imposed by the Agreement’s documents and the rights and remedies
available thereunder are in addition to, and not a limitation of, any duties, obligations, rights and
remedies otherwise imposed or available by law.
SECTION 30. BUY AMERICA PREFERENCE (49 USC § 50101).
CONSULTANT agrees to comply with 49 USC § 50101, which provides that Federal funds may
not be obligated unless all steel and manufactured goods used in AIP-funded projects are produced
in the United States, unless the Federal Aviation Administration has issued a waiver for the
product; the product is listed as an Excepted Article, Material Or Supply in Federal Acquisition
Regulation subpart 25.108; or is included in the Federal Aviation Administration Nationwide Buy American Waivers Issued list.
SECTION 31. CIVIL RIGHTS - GENERAL (49 USC § 47123).
CONSULTANT agrees that it will comply with pertinent statutes, Executive Orders and such rules as are promulgated to ensure that no person shall, on the grounds of race, creed, color, national
origin, sex, age, or handicap be excluded from participating in any activity conducted with or
benefiting from Federal assistance.
This provision binds CONSULTANT from the Request for Qualifications solicitation period through the completion of the Agreement. This provision is in addition to that required of Title VI
of the Civil Rights Act of 1964.
This provision also obligates CONSULTANT for the period during which Federal assistance is
extended to the Palo Alto Airport through the Airport Improvement Program, except where Federal assistance is to provide, or is in the form of personal property; real property or interest therein;
structures or improvements thereon. In these cases the provision obligates the party or any
transferee for the longer of the following periods:
(a) the period during which the property is used by CITY or any transferee for a purpose for
which Federal assistance is extended, or for another purpose involving the provision of
similar services or benefits; or
(b) the period during which CITY or any transferee retains ownership or possession of the property.
SECTION 32. TITLE VI ASSURANCES.
32.1 Compliance with Nondiscrimination Requirements. During the performance of this Agreement, CONSULTANT, for itself, its assignees, and successors in interest (hereinafter included in the term CONSULTANT) agrees, as follows:
(a) Compliance with Regulations: CONSULTANT will comply with the Title VI List of Pertinent Nondiscrimination Statutes and Authorities, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract.
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(b) Non-discrimination: CONSULTANT, with regard to the work performed by it during the
contract, will not discriminate on the grounds of race, color, or national origin in the
selection and retention of subconsultants, including procurements of materials and leases
of equipment. CONSULTANT will not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices
when the Contract covers any activity, project, or program set forth in Appendix B of 49
CFR part 21.
(c) Solicitations for Subcontracts, Including Procurements of Materials and Equipment: In all solicitations, either by competitive bidding, or negotiation made by CONSULTANT
for work to be performed under a subcontract, including procurements of materials, or
leases of equipment, each potential subconsultant or supplier will be notified by
CONSULTANT of CONSULTANT’s obligations under this Agreement and the Acts and the Regulations relative to non-discrimination on the grounds of race, color, or national
origin.
(d) Information and Reports: CONSULTANT will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto and will
permit access to its books, records, accounts, other sources of information, and its facilities
as may be determined by CITY or the Federal Aviation Administration to be pertinent to
ascertain compliance with such Acts, Regulations, and instructions. Where any
information required of CONSULTANT is in the exclusive possession of another who fails or refuses to furnish the information, CONSULTANT will so certify to CITY or the
Federal Aviation Administration, as appropriate, and will set forth what efforts it has made
to obtain the information.
(e) Sanctions for Noncompliance: In the event of CONSULTANT’s noncompliance with the
non-discrimination provisions of this Agreement, CITY will impose such contract
sanctions as it or the Federal Aviation Administration may determine to be appropriate,
including, but not limited to:
1. Withholding payments to CONSULTANT under the Agreement until
CONSULTANT complies; and/or
2. Cancelling, terminating, or suspending the Agreement, in whole or in part.
(f) Incorporation of Provisions: CONSULTANT will include the provisions of paragraphs
30.1(a) through 30.1(f) in every subcontract, including procurements of materials and
leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. CONSULTANT will take action with respect to any subcontract or
procurement as CITY or the Federal Aviation Administration may direct as a means of
enforcing such provisions including sanctions for noncompliance. Provided, that if
CONSULTANT becomes involved in, or is threatened with litigation by a subconsultant,
or supplier because of such direction, CONSULTANT may request CITY to enter into any litigation to protect the interests of CITY. In addition, CONSULTANT may request the
United States to enter into the litigation to protect the interests of the United States.
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32.2 Title VI List of Pertinent Nondiscrimination Authorities.
During the performance of this Agreement, CONSULTANT, for itself, its assignees, and
successors in interest (hereinafter included in the term CONSULTANT) agrees to comply with the
following non-discrimination statutes and authorities; including but not limited to:
(a) Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits
discrimination on the basis of race, color, national origin);
(b) 49 CFR part 21 (Non-discrimination In Federally-Assisted Programs of The Department
of Transportation—Effectuation of Title VI of The Civil Rights Act of 1964);
(c) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,
(42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has
been acquired because of Federal or Federal-aid programs and projects);
(d) Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended,
(prohibits discrimination on the basis of disability); and 49 CFR part 27;
(e) The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits
discrimination on the basis of age);
(f) Airport and Airway Improvement Act of 1982, (49 USC § 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex);
(g) The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage
and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act
of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-
aid recipients, sub-recipients and contractors, whether such programs or activities are
Federally funded or not);
(h) Titles II and III of the Americans with Disabilities Act of 1990, which prohibit discrimination on the basis of disability in the operation of public entities, public and
private transportation systems, places of public accommodation, and certain testing entities
(42 U.S.C. §§ 12131 – 12189) as implemented by Department of Transportation
regulations at 49 CFR parts 37 and 38;
(i) The Federal Aviation Administration’s Non-discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex);
(j) Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures discrimination against minority
populations by discouraging programs, policies, and activities with disproportionately high
and adverse human health or environmental effects on minority and low-income
populations;
(k) Executive Order 13166, Improving Access to Services for Persons with Limited English
Proficiency, and resulting agency guidance, national origin discrimination includes
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discrimination because of limited English proficiency (“LEP”). To ensure compliance with
Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access
to your programs (70 Fed. Reg. at 74087 to 74100);
(l) Title IX of the Education Amendments of 1972, as amended, which prohibits you from
discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).
SECTION 33. CLEAN AIR AND WATER POLLUTION CONTROL (49 CFR § 18.36(i)(12). CONSULTANT and subconsultants agree:
33.1. That any facility to be used in the performance of the Agreement or
subcontract or to benefit from the Agreement is not listed on the Environmental Protection Agency (“EPA”) List of Violating Facilities;
33.2 To comply with all the requirements of Section 114 of the Clean Air Act, as
amended, 42 U.S.C. 1857 et seq. and Section 308 of the Federal Water Pollution Control Act, as
amended, 33 U.S.C. 1251 et seq. relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in Section 114 and Section 308 of the Acts, respectively,
and all other regulations and guidelines issued thereunder;
33.3. That, as a condition for the award of this Agreement, CONSULTANT or
subcontractor will notify the awarding official of the receipt of any communication from the EPA, indicating that a facility to be used for the performance of or benefit from the contract is under
consideration to be listed on the EPA List of Violating Facilities; and
33.4. To include or cause to be included in any construction contract or subcontract
which exceeds $100,000 the aforementioned criteria and requirements. SECTION 34. CONTRACT WORKHOURS AND SAFETY STANDARDS ACT
REQUIREMENTS (2 CFR § 200 Appendix II(E)).
34.1. Overtime Requirements. No contractor or subcontractor contracting for any part of the Agreement’s work which may require or involve the employment of laborers or
mechanics shall require or permit any such laborer or mechanic, including watchmen and guards,
in any workweek in which he or she is employed on such work to work in excess of forty hours in
such workweek unless such laborer or mechanic receives compensation at a rate not less than one
and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek.
34.2 Violation; Liability for Unpaid Wages; Liquidated Damages. In the event of
any violation of the clause set forth in paragraph 34.1 above, CONSULTANT and any
subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for
the District of Columbia or a territory, to such District or to such territory), for liquidated damages.
Such liquidated damages shall be computed with respect to each individual laborer or mechanic,
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including watchmen and guards, employed in violation of the clause set forth in paragraph 1 above,
in the sum of $10 for each calendar day on which such individual was required or permitted to
work in excess of the standard workweek of forty hours without payment of the overtime wages
required by the clause set forth in paragraph 32.1 above.
34.3 Withholding for Unpaid Wages and Liquidated Damages. The Federal
Aviation Administration or CITY shall upon its own action or upon written request of an
authorized representative of the Department of Labor withhold or cause to be withheld, from any
monies payable on account of work performed by CONSULTANT or subcontractor under any
such contract or any other Federal contract with the same prime contractor, or any other Federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by
the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities
of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the
clause set forth in paragraph 34.2 above.
34.4 Subcontractors. CONSULTANT shall insert in any subcontracts the clauses
set forth in paragraphs 34.1 through 34.4 and also a clause requiring the subcontractor to include
these clauses in any lower tier subcontracts. CONSULTANT shall be responsible for compliance
by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs 32.1
through 34.4 of this section. SECTION 35. CERTIFICATION REGARDING DEBARMENT AND SUSPENSION (2 CFR Part 180 (Subpart C); 2 CFR Part 1200; DOT Order 4200.5).
35.1. Certificate Regarding Debarment and Suspension (Bidder or Offeror). By submitting a Statement of Qualifications (”SOQ”) under CITY’s Request for Qualifications
solicitation, CONSULTANT certified that at the time it submitted its SOQ that neither it nor its
principals were presently debarred or suspended by any Federal department or agency from
participation in this transaction.
35.2 Certification Regarding Debarment and Suspension (Successful Bidder
Regarding Lower Tier Participants). CONSULTANT, as the successful bidder, by administering
each lower tier subcontract that exceeds $25,000 as a “covered transaction”, must verify each lower
tier participant of a “covered transaction” under the Project is not presently debarred or otherwise
disqualified from participation in this federally assisted project. CONSULTANT will accomplish this by:
(a) Checking the System for Award Management at website: http://www.sam.gov.
(b) Collecting a certification statement similar to the Certificate Regarding Debarment and Suspension (Bidder or Offeror), above.
(c) Inserting a clause or condition in the covered transaction with the lower tier contract.
If the Federal Aviation Administration later determines that a lower tier participant failed to tell a higher tier that it was excluded or disqualified at the time it entered the covered transaction, the
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Federal Aviation Administration may pursue any available remedy, including suspension and
debarment
.
SECTION 36. DISADVANTAGED BUSINESS ENTERPRISE (49 CFR Part 26).
36.1 Contract Assurance (§ 26.13). CONSULTANT or subcontractor shall not
discriminate on the basis of race, color, national origin, or sex in the performance of this contract.
CONSULTANT shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT assisted contracts. Failure by CONSULTANT to carry out these
requirements is a material breach of this contract, which may result in the termination of this
contract or such other remedy, as the recipient deems appropriate.
36.1 Prompt Payment (§ 26.29). CONSULTANT agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than {specify
number} days from the receipt of each payment CONSULTANT receives from {Name of
recipient}. CONSULTANT agrees further to return retainage payments to each subcontractor
within {specify the same number as above} days after the subcontractor's work is satisfactorily
completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the {Name of Recipient}. This clause
applies to both DBE and non-DBE subcontractors.
SECTION 37. FEDERAL FAIR LABOR STANDARDS ACT (FEDERAL MINIMUM
WAGE) (29 USC § 201, et seq.). All contracts and subcontracts that result from the RFQ solicitation incorporate the following
provisions by reference, with the same force and effect as if given in full text. CONSULTANT has
full responsibility to monitor compliance to the referenced statute or regulation. CONSULTANT
must address any claims or disputes that pertain to a referenced requirement directly with the Federal Agency with enforcement responsibilities.
Requirement Federal Agency with Enforcement
Responsibilities
Federal Fair Labor Standards Act (29 USC
201)
U.S. Department of Labor – Wage and Hour
Division
SECTION 37. LOBBYING AND INFLUENCING FEDERAL EMPLOYEES (40 CFR Part 20, Appendix A). CONSULTANT certified by signing and submitting its SOQ, to the best of its knowledge and belief, that:
37.1 No Federal appropriated funds have been paid or will be paid, by or on behalf
of the bidder or offeror, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the
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making of any Federal grant, the making of any Federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment, or modification of any Federal
contract, grant, loan, or cooperative agreement.
37.2 If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency,
a Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the
undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report
Lobbying,” in accordance with its instructions.
These certifications are material representations of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for making
or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
SECTION 38. OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970 (20 CFR Part
1910).
All contracts and subcontracts that result from this solicitation incorporate the following
provisions by reference, with the same force and effect as if given in full text. CONSULTANT
has full responsibility to monitor compliance to the referenced statute or regulation.
CONSULTANT must address any claims or disputes that pertain to a referenced requirement
directly with the Federal Agency with enforcement responsibilities.
Requirement Federal Agency with Enforcement
Responsibilities
Occupational Safety and Health Act of 1970
(20 CFR 1910)
U.S. Department of Labor – Occupational
Safety and Health Administration
SECTION 39. RIGHTS TO INVENTIONS (2 CFR § 200 Appendix II (F)). All rights to inventions and materials generated under this Agreement are subject to requirements
and regulations issued by the Federal Aviation Administration and CITY of the Federal grant under
which this Agreement is executed.
SECTION 40. TRADE RESTRICTION (49 CFR Part 30).
CONSULTANT or subcontractor, by submission of an offer and/or execution of a contract,
certifies that it:
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40.1 Is not owned or controlled by one or more citizens of a foreign country
included in the list of countries that discriminate against U.S. firms published by the Office of the
United States Trade Representative (“USTR”);
40.2 Has not knowingly entered into any contract or subcontract for this Project with a person that is a citizen or national of a foreign country on said list, or is owned or controlled
directly or indirectly by one or more citizens or nationals of a foreign country on said list;
40.3 Has not procured any product nor subcontracted for the supply of any product
for use on the project that is produced in a foreign country on said list.
Unless the restrictions of this clause are waived by the Secretary of Transportation in accordance
with 49 CFR 30.17, no contract shall be awarded to a contractor or subcontractor who is unable to
certify to the above. If CONSULTANT knowingly procures or subcontracts for the supply of any
product or service of a foreign country on said list for use on the project, the Federal Aviation Administration may direct through CITY cancellation of the Agreement at no cost to the Federal
Government.
Further, CONSULTANT agrees that, if awarded a contract resulting from this solicitation, it will incorporate this provision for certification without modification in each contract and in all lower
tier subcontracts. CONSULTANT may rely on the certification of a prospective subcontractor
unless it has knowledge that the certification is erroneous.
CONSULTANT shall provide immediate written notice to CITY if CONSULTANT learns that its certification or that of a subcontractor was erroneous when submitted or has become erroneous by
reason of changed circumstances. The subcontractor agrees to provide written notice to
CONSULTANT if at any time it learns that its certification was erroneous by reason of changed
circumstances.
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CONTRACT No. C21178372C 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 (Required on contracts over $85,000)
Purchasing Manager (Required on contracts
over $50,000)
Contracts Administrator (Required on
contracts under $50,000)
APPROVED AS TO FORM:
__________________________
City Attorney or designee (Required on Contracts over $25,000)
C&S ENGINEERS, INC.
Officer 1
By:
Name: Lance McIntosh
Title: Department Manager
Officer 2 (Required for Corp. or LLC)
By:
Name: Michael Hotaling
Title: Senior Vice President
Attachments:
EXHIBIT “A”: SCOPE OF SERVICES
EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER (for on-call contracts only)
EXHIBIT “B”: SCHEDULE OF PERFORMANCE
EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: HOURLY RATE SCHEDULE
EXHIBIT “D”: INSURANCE REQUIREMENTS
EXHIBIT “E”: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
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EXHIBIT “A” SCOPE OF SERVICES
Consultant will provide on-call services at Palo Alto Airport in connection with categories associated with the airfield improvements identified on the ACIP: Planning and Construction
Management.
Consultant will perform all professional services consistent with the industry-accepted roles of
Construction Manager for the following projects:
Reconstruction Access Road
AWOS III
Airfield Electrical Improvements
Runway and Taxiway Reconstruction and Drainage Improvement
Consultant will provide planning services to assist Airport and City staff with preparation of the necessary technical detail and analyses involved with airport planning. Specific projects include:
ALP narrative with Aeronautical Survey
Business Plan
Consultant may provide other planning services as required.
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(Optional – for On Call Agreements only)
EXHIBIT “A-1”
PROFESSIONAL SERVICES TASK ORDER
Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement 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. ISSUE DATE Purchase Requisition No.
1A. MASTER AGREEMENT NUMBER
1B. TASK ORDER NO. 2. CONSULTANT
3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT $__________________________________ 5. BUDGET CODE: _______________
COST CENTER_________________ COST ELEMENT______________ WBS/CIP___ _______PHASE___
6. CITY PROJECT MANAGER’S NAME/DEPARTMENT_________________________________________
7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE:
WORK TO BE PERFORMED
SCHEDULE OF WORK
BASIS FOR PAYMENT & FEE SCHEDULE
DELIVERABLES
REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________
-----------------------------------------------------------------------------------------------------------------------------------
I hereby authorize the performance of I hereby acknowledge receipt and acceptance
the work described above in this Task Order. of this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED: APPROVED:
CITY OF PALO ALTO COMPANY NAME: ______________________
BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________
Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________
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EXHIBIT “B” SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services according to the schedule set forth in each task order.
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EXHIBIT “C”
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed
in accordance with the terms and conditions of this Agreement based on the hourly rate
schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services,
additional services, and reimbursable expenses shall not exceed the amount(s) stated in
Section 4 of this Agreement. CONSULTANT agrees to complete all Services and
Additional Services, including reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the
CITY.
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.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges are reimbursable at actual cost.
All requests for payment of expenses shall be accompanied by appropriate backup
information. Any expense anticipated to be more than $250 shall be approved in advance by the CITY’s project manager.
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EXHIBIT “C-1” SCHEDULE OF RATES
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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 PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT
THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
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B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL
NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL:
HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569
OR
HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP
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EXHIBIT “E”
DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement
with CONSULTANT without proof that CONSULTANT and its listed subcontractors are
registered with the California Department of Industrial Relations (“DIR”) to perform public work,
subject to limited exceptions. City requires CONSULTANT and its listed subcontractors to
comply with the requirements of SB 854.
CITY provides notice to CONSULTANT of the requirements of California Labor Code section
1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of
any contract for public work, as defined in this chapter, unless currently registered and qualified
to perform public work pursuant to Section 1725.5. It is not a violation of this section for an
unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and
Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract
is awarded.”
CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is
required to post all job site notices prescribed by law or regulation and CONSULTANT is subject to SB 854-compliance monitoring and enforcement by DIR.
CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of
Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security number, work
classification, straight time and overtime hours worked each day and week, and the actual per diem
wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively,
CONSULTANT and its listed subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and made available
for inspection at all reasonable hours at the principal office of CONSULTANT and its listed
subcontractors, respectively.
At the request of CITY, acting by its project manager, CONSULTANT and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY’s request.
CITY requests CONSULTANT and its listed subcontractors to submit the certified
payroll records to the project manager at the end of each week during the Project. If the certified payroll records are not produced to the project manager within the 10-day period,
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then CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred
dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold
the sum total of penalties from the progress payment(s) then due and payable to CONSULTANT.
Inform the project manager of the location of CONSULTANT’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also
provide notice to the project manager within five (5) business days of any change of location of
those payroll records.
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CITY OF PALO ALTO CONTRACT NO. C21178372A
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND CENTURION
PLANNING & DESIGN, LLC FOR PROFESSIONAL SERVICES
This Agreement is entered into on this Seventh day of December, 2020,
(“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal
corporation (“CITY”), and CENTURION PLANNING & DESIGN LLC, a Texas Limited Liability Company, located at 69 N. Chadbourne St, San Angelo, TX 76903("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to improve the facilities at the Palo Alto Airport (“Project”) and desires to
engage a consultant to provide various on-call services in connection with the Project (“Services”)
as a result of the RFQ 178372 Palo Alto Airport On-Call Consulting Services as a result of the
RFQ 178372 Palo Alto Airport On-Call Consulting Services.
B. CONSULTANT has represented that it has the necessary professional expertise,
qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in
this Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at
Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
Optional On-Call Provision (This provision only applies if checked and only applies to on-call
agreements.)
Services will be authorized by CITY, as needed, with a Task Order assigned and approved by
CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of
all Task Orders issued under this Agreement shall not exceed the amount of Compensation set
forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work
performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4.
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SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 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
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 One Million Dollars ($1,000,000.00). CONSULTANT
agrees to complete all Basic Services, including reimbursable expenses, within this amount. The
applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE
SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of
compensation set forth herein shall be at no cost to the CITY.
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 email all invoices to the City’s project manager at
Michael.Luetgens@CityofPaloAlto.org . 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.
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SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to
perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by
CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the
errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent
(10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to
CITY for aligning the PROJECT design with the budget, incorporate CITY approved
recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in
performing the Services under this Agreement CONSULTANT, and any person employed by or
contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act
as and be an independent contractor and not an agent or employee of CITY.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign
or transfer any interest in this Agreement nor the performance of any of 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.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager
or designee.
Option B: 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: Huffman Broadway Group
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
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of the city manager or his designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Molly Waller as
the Project Manager to have supervisory responsibility for the performance, progress, and
execution of the Services. If circumstances cause the substitution of the project manager, project coordinator, or any other key personnel for any reason, the appointment of a substitute project
manager 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 Michael Luetgens, Public Works Department, Airport Division, 1925
Embarcadero Road, Palo Alto, CA 94303, Telephone:650-329-2867, email:
Michael.Luetgens@cityofpaloalto.org . 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.
[Option A applies to the following design professionals pursuant to Civil Code Section
2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 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
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Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
[Option B applies to any consultant who does not qualify as a design professional as
defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law,
CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all
demands, claims, or liability of any nature, including death or injury to any person, property
damage or any other loss, including all costs and expenses of whatever nature including attorneys
fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any
manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an
Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party.
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)
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days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written
notice of the cancellation or modification within two (2) business days of the CONSULTANT’s
receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates
evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term
of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including
such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OF AGREEMENT. (2 CFR § 200 Appendix II (B))
19.1. CITY may, by written notice, suspend or terminate this Agreement, in
whole or in part, at any time, either for CITY’s convenience or because of failure to fulfill the
Agreement obligations by giving ten (10) days prior written notice thereof to CONSULTANT.
Upon receipt of such notice, services must be immediately discontinued (unless the notice dictates
otherwise) and all materials as may have been accumulated in performing this contract, whether completed or in progress, delivered to CITY.
19.2 If the termination is for the convenience of the CITY, an equitable
adjustment in the Agreement price will be made, but no amount will be allowed for anticipated
profit on unperformed services.
19.3. 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. 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. If the termination is due to failure to fulfill CONSULTANT’s obligations, 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. CITY may take over
the work and prosecute the same to completion by contract or otherwise. In such case the
CONSULTANT is liable to the CITY for any additional cost occasioned to the CITY thereby. 19.5. If, after notice of termination for failure to fulfill Agreement obligations, it
is determined that the CONSULTANT had not so failed, the termination will be deemed to have
been effected for the convenience of the CITY. In such event, adjustment in the Agreement price
will be made as provided in paragraph 19.2. 19.6. The rights and remedies of the CITY provided in this section 19 are in
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addition to any other rights and remedies provided by law or under this Agreement.
19.7 No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on part of the CITY of any of its rights under this Agreement
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY: Office of the City Clerk City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the project director
at the address of CONSULTANT recited above
SECTION 21. CONFLICT OF INTEREST.
21.1. In accepting this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subconsultants, contractors or persons having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement is an officer or employee of CITY; this provision will be interpreted in accordance
with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California.
21.3. If the Project Manager determines that CONSULTANT is a “Consultant”
as that term is defined by the Regulations of the Fair Political Practices Commission,
CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person 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.
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SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated
by reference and may be amended from time to time. CONSULTANT shall comply with waste
reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third,
recycling or composting waste. In particular, CONSULTANT shall comply with the following
zero waste requirements:
(a) All printed materials provided by CCONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed
on a minimum of 30% or greater post-consumer content paper, unless otherwise
approved by CITY’s Project Manager. Any submitted materials printed by a
professional printing company shall be a minimum of 30% or greater post-
consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including but not
limited to Extended Producer Responsibility requirements for products and
packaging. A copy of this policy is on file at the Purchasing Division’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide
documentation from the facility accepting the pallets to verify that pallets are not
being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as it may be amended from time to time. In particular, for any
employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of
work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay
such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In
addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance
in accordance with Palo Alto Municipal Code section 4.62.060.
SECTION 25. NON-APPROPRIATION
25.1. This Agreement is subject to the fiscal provisions of the Charter of the City
of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any
penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following
fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. 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
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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.
OR
26.1 CONSULTANT is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section
1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor
Code of the State of California, the City Council has obtained the general prevailing rate of per
diem wages and the general rate for holiday and overtime work in this locality for each craft,
classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the
Purchasing Division’s office of the City of Palo Alto. CONSULTANT shall provide a copy of
prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage
rates as a minimum. CONSULTANT shall comply with the provisions of all sections, including,
but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages.
26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any
contract for public works construction, alteration, demolition, repair or maintenance.
SECTION 27. MISCELLANEOUS PROVISIONS.
27.1. This Agreement will be governed by the laws of the State of California.
27.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California.
27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties.
27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral.
This document may be amended only by a written instrument, which is signed by the parties.
27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties.
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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 All unchecked boxes do not apply to this Agreement.
27.11 The individuals executing this Agreement represent and warrant that they
have the legal capacity and authority to do so on behalf of their respective legal entities.
27.12 This Agreement may be signed in multiple counterparts, which shall, when
executed by all the parties, constitute a single binding agreement.
SECTION 28. ACCESS TO RECORDS AND REPORTS (2 CFR § 200.326 & 200.333).
CONSULTANT must maintain an acceptable cost accounting system. CONSULTANT agrees to
provide CITY, the Federal Aviation Administration, and the Comptroller General of the United States or any of their duly authorized representatives access to any books, documents, papers, and
records of CONSULTANT, which are directly pertinent to the specific contract for the purpose of
making audit, examination, excerpts and transcriptions. CONSULTANT agrees to maintain all
books, records and reports required under this Agreement for a period of not less than three (3) years after final payment is made and all pending matters are closed.
SECTION 29. BREACH OF CONTRACT TERMS (2 CFR § 200 Appendix II(A)).
Any violation or breach of terms of this Agreement on the part of CONSULTANT or its subconsultants or subcontractors may result in the suspension or termination of this Agreement or such other action that may be necessary to enforce the rights of the parties of this Agreement. The
duties and obligations imposed by the Agreement’s documents and the rights and remedies
available thereunder are in addition to, and not a limitation of, any duties, obligations, rights and
remedies otherwise imposed or available by law.
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SECTION 30. BUY AMERICA PREFERENCE (49 USC § 50101).
CONSULTANT agrees to comply with 49 USC § 50101, which provides that Federal funds may
not be obligated unless all steel and manufactured goods used in AIP-funded projects are produced
in the United States, unless the Federal Aviation Administration has issued a waiver for the product; the product is listed as an Excepted Article, Material Or Supply in Federal Acquisition
Regulation subpart 25.108; or is included in the Federal Aviation Administration Nationwide Buy
American Waivers Issued list.
SECTION 31. CIVIL RIGHTS - GENERAL (49 USC § 47123). CONSULTANT agrees that it will comply with pertinent statutes, Executive Orders and such rules
as are promulgated to ensure that no person shall, on the grounds of race, creed, color, national
origin, sex, age, or handicap be excluded from participating in any activity conducted with or
benefiting from Federal assistance.
This provision binds CONSULTANT from the Request for Qualifications solicitation period
through the completion of the Agreement. This provision is in addition to that required of Title VI
of the Civil Rights Act of 1964.
This provision also obligates CONSULTANT for the period during which Federal assistance is
extended to the Palo Alto Airport through the Airport Improvement Program, except where Federal
assistance is to provide, or is in the form of personal property; real property or interest therein;
structures or improvements thereon. In these cases the provision obligates the party or any
transferee for the longer of the following periods:
(a) the period during which the property is used by CITY or any transferee for a purpose for
which Federal assistance is extended, or for another purpose involving the provision of
similar services or benefits; or
(b) the period during which CITY or any transferee retains ownership or possession of the
property.
SECTION 32. TITLE VI ASSURANCES.
32.1 Compliance with Nondiscrimination Requirements. During the performance
of this Agreement, CONSULTANT, for itself, its assignees, and successors in interest (hereinafter
included in the term CONSULTANT) agrees, as follows:
(a) Compliance with Regulations: CONSULTANT will comply with the Title VI List of
Pertinent Nondiscrimination Statutes and Authorities, as they may be amended from time
to time, which are herein incorporated by reference and made a part of this contract.
(b) Non-discrimination: CONSULTANT, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, or national origin in the
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selection and retention of subconsultants, including procurements of materials and leases
of equipment. CONSULTANT will not participate directly or indirectly in the
discrimination prohibited by the Acts and the Regulations, including employment practices
when the Contract covers any activity, project, or program set forth in Appendix B of 49
CFR part 21.
(c) Solicitations for Subcontracts, Including Procurements of Materials and Equipment:
In all solicitations, either by competitive bidding, or negotiation made by CONSULTANT
for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subconsultant or supplier will be notified by
CONSULTANT of CONSULTANT’s obligations under this Agreement and the Acts and
the Regulations relative to non-discrimination on the grounds of race, color, or national
origin.
(d) Information and Reports: CONSULTANT will provide all information and reports
required by the Acts, the Regulations, and directives issued pursuant thereto and will
permit access to its books, records, accounts, other sources of information, and its facilities
as may be determined by CITY or the Federal Aviation Administration to be pertinent to ascertain compliance with such Acts, Regulations, and instructions. Where any
information required of CONSULTANT is in the exclusive possession of another who fails
or refuses to furnish the information, CONSULTANT will so certify to CITY or the
Federal Aviation Administration, as appropriate, and will set forth what efforts it has made
to obtain the information.
(e) Sanctions for Noncompliance: In the event of CONSULTANT’s noncompliance with the
non-discrimination provisions of this Agreement, CITY will impose such contract
sanctions as it or the Federal Aviation Administration may determine to be appropriate, including, but not limited to:
1. Withholding payments to CONSULTANT under the Agreement until
CONSULTANT complies; and/or
2. Cancelling, terminating, or suspending the Agreement, in whole or in part.
(f) Incorporation of Provisions: CONSULTANT will include the provisions of paragraphs 30.1(a) through 30.1(f) in every subcontract, including procurements of materials and
leases of equipment, unless exempt by the Acts, the Regulations and directives issued
pursuant thereto. CONSULTANT will take action with respect to any subcontract or
procurement as CITY or the Federal Aviation Administration may direct as a means of
enforcing such provisions including sanctions for noncompliance. Provided, that if CONSULTANT becomes involved in, or is threatened with litigation by a subconsultant,
or supplier because of such direction, CONSULTANT may request CITY to enter into any
litigation to protect the interests of CITY. In addition, CONSULTANT may request the
United States to enter into the litigation to protect the interests of the United States.
32.2 Title VI List of Pertinent Nondiscrimination Authorities.
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During the performance of this Agreement, CONSULTANT, for itself, its assignees, and
successors in interest (hereinafter included in the term CONSULTANT) agrees to comply with the
following non-discrimination statutes and authorities; including but not limited to:
(a) Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin);
(b) 49 CFR part 21 (Non-discrimination In Federally-Assisted Programs of The Department
of Transportation—Effectuation of Title VI of The Civil Rights Act of 1964);
(c) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,
(42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has
been acquired because of Federal or Federal-aid programs and projects);
(d) Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended,
(prohibits discrimination on the basis of disability); and 49 CFR part 27;
(e) The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age);
(f) Airport and Airway Improvement Act of 1982, (49 USC § 471, Section 47123), as
amended, (prohibits discrimination based on race, creed, color, national origin, or sex);
(g) The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage
and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act
of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of
the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are
Federally funded or not);
(h) Titles II and III of the Americans with Disabilities Act of 1990, which prohibit
discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities
(42 U.S.C. §§ 12131 – 12189) as implemented by Department of Transportation
regulations at 49 CFR parts 37 and 38;
(i) The Federal Aviation Administration’s Non-discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex);
(j) Executive Order 12898, Federal Actions to Address Environmental Justice in Minority
Populations and Low-Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high
and adverse human health or environmental effects on minority and low-income
populations;
(k) Executive Order 13166, Improving Access to Services for Persons with Limited English
Proficiency, and resulting agency guidance, national origin discrimination includes
discrimination because of limited English proficiency (“LEP”). To ensure compliance with
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Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access
to your programs (70 Fed. Reg. at 74087 to 74100);
(l) Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).
SECTION 33. CLEAN AIR AND WATER POLLUTION CONTROL (49 CFR §
18.36(i)(12).
CONSULTANT and subconsultants agree:
33.1. That any facility to be used in the performance of the Agreement or
subcontract or to benefit from the Agreement is not listed on the Environmental Protection Agency
(“EPA”) List of Violating Facilities;
33.2 To comply with all the requirements of Section 114 of the Clean Air Act, as
amended, 42 U.S.C. 1857 et seq. and Section 308 of the Federal Water Pollution Control Act, as
amended, 33 U.S.C. 1251 et seq. relating to inspection, monitoring, entry, reports, and information,
as well as all other requirements specified in Section 114 and Section 308 of the Acts, respectively, and all other regulations and guidelines issued thereunder;
33.3. That, as a condition for the award of this Agreement, CONSULTANT or
subcontractor will notify the awarding official of the receipt of any communication from the EPA,
indicating that a facility to be used for the performance of or benefit from the contract is under consideration to be listed on the EPA List of Violating Facilities; and
33.4. To include or cause to be included in any construction contract or subcontract
which exceeds $100,000 the aforementioned criteria and requirements.
SECTION 34. CONTRACT WORKHOURS AND SAFETY STANDARDS ACT REQUIREMENTS (2 CFR § 200 Appendix II(E)).
34.1. Overtime Requirements. No contractor or subcontractor contracting for any
part of the Agreement’s work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic, including watchmen and guards,
in any workweek in which he or she is employed on such work to work in excess of forty hours in
such workweek unless such laborer or mechanic receives compensation at a rate not less than one
and one-half times the basic rate of pay for all hours worked in excess of forty hours in such
workweek.
34.2 Violation; Liability for Unpaid Wages; Liquidated Damages. In the event of
any violation of the clause set forth in paragraph 34.1 above, CONSULTANT and any
subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor
and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages.
Such liquidated damages shall be computed with respect to each individual laborer or mechanic,
including watchmen and guards, employed in violation of the clause set forth in paragraph 1 above,
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in the sum of $10 for each calendar day on which such individual was required or permitted to
work in excess of the standard workweek of forty hours without payment of the overtime wages
required by the clause set forth in paragraph 32.1 above.
34.3 Withholding for Unpaid Wages and Liquidated Damages. The Federal Aviation Administration or CITY shall upon its own action or upon written request of an
authorized representative of the Department of Labor withhold or cause to be withheld, from any
monies payable on account of work performed by CONSULTANT or subcontractor under any
such contract or any other Federal contract with the same prime contractor, or any other Federally-
assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities
of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the
clause set forth in paragraph 34.2 above.
34.4 Subcontractors. CONSULTANT shall insert in any subcontracts the clauses set forth in paragraphs 34.1 through 34.4 and also a clause requiring the subcontractor to include
these clauses in any lower tier subcontracts. CONSULTANT shall be responsible for compliance
by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs 32.1
through 34.4 of this section.
SECTION 35. CERTIFICATION REGARDING DEBARMENT AND SUSPENSION (2 CFR Part 180 (Subpart C); 2 CFR Part 1200; DOT Order 4200.5).
35.1. Certificate Regarding Debarment and Suspension (Bidder or Offeror). By
submitting a Statement of Qualifications (”SOQ”) under CITY’s Request for Qualifications solicitation, CONSULTANT certified that at the time it submitted its SOQ that neither it nor its
principals were presently debarred or suspended by any Federal department or agency from
participation in this transaction.
35.2 Certification Regarding Debarment and Suspension (Successful Bidder Regarding Lower Tier Participants). CONSULTANT, as the successful bidder, by administering
each lower tier subcontract that exceeds $25,000 as a “covered transaction”, must verify each lower
tier participant of a “covered transaction” under the Project is not presently debarred or otherwise
disqualified from participation in this federally assisted project. CONSULTANT will accomplish
this by:
(a) Checking the System for Award Management at website: http://www.sam.gov.
(b) Collecting a certification statement similar to the Certificate Regarding Debarment and
Suspension (Bidder or Offeror), above. (c) Inserting a clause or condition in the covered transaction with the lower tier contract.
If the Federal Aviation Administration later determines that a lower tier participant failed to tell a
higher tier that it was excluded or disqualified at the time it entered the covered transaction, the Federal Aviation Administration may pursue any available remedy, including suspension and debarment
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.
SECTION 36. DISADVANTAGED BUSINESS ENTERPRISE (49 CFR Part 26).
36.1 Contract Assurance (§ 26.13). CONSULTANT or subcontractor shall not
discriminate on the basis of race, color, national origin, or sex in the performance of this contract.
CONSULTANT shall carry out applicable requirements of 49 CFR Part 26 in the award and
administration of DOT assisted contracts. Failure by CONSULTANT to carry out these
requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as the recipient deems appropriate.
36.1 Prompt Payment (§ 26.29). CONSULTANT agrees to pay each subcontractor
under this prime contract for satisfactory performance of its contract no later than {specify
number} days from the receipt of each payment CONSULTANT receives from {Name of recipient}. CONSULTANT agrees further to return retainage payments to each subcontractor
within {specify the same number as above} days after the subcontractor's work is satisfactorily
completed. Any delay or postponement of payment from the above referenced time frame may
occur only for good cause following written approval of the {Name of Recipient}. This clause
applies to both DBE and non-DBE subcontractors.
SECTION 37. FEDERAL FAIR LABOR STANDARDS ACT (FEDERAL MINIMUM WAGE) (29 USC § 201, et seq.).
All contracts and subcontracts that result from the RFQ solicitation incorporate the following provisions by reference, with the same force and effect as if given in full text. CONSULTANT has
full responsibility to monitor compliance to the referenced statute or regulation. CONSULTANT
must address any claims or disputes that pertain to a referenced requirement directly with the
Federal Agency with enforcement responsibilities.
Requirement Federal Agency with Enforcement
Responsibilities
Federal Fair Labor Standards Act (29 USC
201)
U.S. Department of Labor – Wage and Hour
Division
SECTION 37. LOBBYING AND INFLUENCING FEDERAL EMPLOYEES (40 CFR Part
20, Appendix A). CONSULTANT certified by signing and submitting its SOQ, to the best of its
knowledge and belief, that: 37.1 No Federal appropriated funds have been paid or will be paid, by or on behalf
of the bidder or offeror, to any person for influencing or attempting to influence an officer or
employee of an agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative
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agreement, and the extension, continuation, renewal, amendment, or modification of any Federal
contract, grant, loan, or cooperative agreement.
37.2 If any funds other than Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the
undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report
Lobbying,” in accordance with its instructions.
These certifications are material representations of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for making
or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and
not more than $100,000 for each such failure.
SECTION 38. OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970 (20 CFR Part 1910).
All contracts and subcontracts that result from this solicitation incorporate the following provisions by reference, with the same force and effect as if given in full text. CONSULTANT
has full responsibility to monitor compliance to the referenced statute or regulation.
CONSULTANT must address any claims or disputes that pertain to a referenced requirement
directly with the Federal Agency with enforcement responsibilities.
Requirement Federal Agency with Enforcement Responsibilities
Occupational Safety and Health Act of 1970
(20 CFR 1910)
U.S. Department of Labor – Occupational
Safety and Health Administration
SECTION 39. RIGHTS TO INVENTIONS (2 CFR § 200 Appendix II (F)). All rights to inventions and materials generated under this Agreement are subject to requirements
and regulations issued by the Federal Aviation Administration and CITY of the Federal grant under
which this Agreement is executed.
SECTION 40. TRADE RESTRICTION (49 CFR Part 30). CONSULTANT or subcontractor, by submission of an offer and/or execution of a contract,
certifies that it:
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40.1 Is not owned or controlled by one or more citizens of a foreign country
included in the list of countries that discriminate against U.S. firms published by the Office of the
United States Trade Representative (“USTR”);
40.2 Has not knowingly entered into any contract or subcontract for this Project with a person that is a citizen or national of a foreign country on said list, or is owned or controlled
directly or indirectly by one or more citizens or nationals of a foreign country on said list;
40.3 Has not procured any product nor subcontracted for the supply of any product
for use on the project that is produced in a foreign country on said list.
Unless the restrictions of this clause are waived by the Secretary of Transportation in accordance
with 49 CFR 30.17, no contract shall be awarded to a contractor or subcontractor who is unable to
certify to the above. If CONSULTANT knowingly procures or subcontracts for the supply of any
product or service of a foreign country on said list for use on the project, the Federal Aviation Administration may direct through CITY cancellation of the Agreement at no cost to the Federal
Government.
Further, CONSULTANT agrees that, if awarded a contract resulting from this solicitation, it will incorporate this provision for certification without modification in each contract and in all lower
tier subcontracts. CONSULTANT may rely on the certification of a prospective subcontractor
unless it has knowledge that the certification is erroneous.
CONSULTANT shall provide immediate written notice to CITY if CONSULTANT learns that its certification or that of a subcontractor was erroneous when submitted or has become erroneous by
reason of changed circumstances. The subcontractor agrees to provide written notice to
CONSULTANT if at any time it learns that its certification was erroneous by reason of changed
circumstances.
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CONTRACT No. C21178372A
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 (Required on contracts over
$85,000)
APPROVED AS TO FORM:
__________________________
City Attorney or designee
(Required on Contracts over $25,000)
CENTURION PLANNING & DESIGN, LLC
Officer 1
By:
Name: Molly Waller
Title: CEO and Principal Planner
Officer 2 (Required for Corp. or LLC)
By:
Name: David Alexander
Title: COO
Attachments:
EXHIBIT “A”: SCOPE OF SERVICES
EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER (for on-call contracts only)
EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: HOURLY RATE SCHEDULE
EXHIBIT “D”: INSURANCE REQUIREMENTS
EXHIBIT “E”: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
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EXHIBIT “A” SCOPE OF SERVICES
Consultant will provide on-call services at the Palo Alto Airport in connection with categories
associated with the airfield improvements identified on the ACIP: Environmental Services
The Consultant will provide environmental support services to assist Airport and City staff with
preparation of the necessary technical detail and analysis to prepare environmental
documentation required under the California Environmental Quality Act (CEQA) and National
Environmental Policy Act (NEPA). In particular, the City anticipates the need to prepare environmental reviews for the airfield improvement projects identified on the ACIP. Specific
projects include:
Environmental Assessment of Runway and Taxiway Reconstruction and Drainage Improvements
Environmental Assessment of Reconstruction of Access Roads
The Consultant will also provide other environmental services as may be required by the City from time to time such as but not limited to the Wildlife Hazard Management Plan update.
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EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER
Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the
Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement 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. ISSUE DATE
Purchase Requisition No. 1A. MASTER AGREEMENT NUMBER
1B. TASK ORDER NO. 2. CONSULTANT 3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT $__________________________________ 5. BUDGET CODE: _______________
COST CENTER_________________COST ELEMENT______________ WBS/CIP___ _______PHASE___ 6. CITYPROJECTMANAGER’S NAME/DEPARTMENT______________________________________
7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE:
WORK TO BE PERFORMED
SCHEDULE OF WORK
BASIS FOR PAYMENT & FEE SCHEDULE
DELIVERABLES
REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________
-----------------------------------------------------------------------------------------------------------------------------------
I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: ______________________
BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________
Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________
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EXHIBIT “B” SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services according to the schedule set forth in each task order.
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EXHIBIT “C”
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed
in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all services,
additional services, and reimbursable expenses shall not exceed the amount(s) stated in
Section 4 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding
the maximum amount of compensation set forth in this Agreement shall be at no cost to the
CITY.
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.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges are reimbursable at actual cost.
All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $250.00 shall be approved in advance
by the CITY’s project manager.
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EXHIBIT “C-1” HOURLY RATE SCHEDULE
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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 PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT
THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
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B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL
NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL:
HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569
OR
HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP
DocuSign Envelope ID: 7208B4E4-3904-4E59-B9A4-34FB356C6514
Professional Services Rev. April 27, 2018 27
EXHIBIT “E”
DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement
with CONSULTANT without proof that CONSULTANT and its listed subcontractors are
registered with the California Department of Industrial Relations (“DIR”) to perform public work,
subject to limited exceptions. City requires CONSULTANT and its listed subcontractors to
comply with the requirements of SB 854.
CITY provides notice to CONSULTANT of the requirements of California Labor Code section
1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of
any contract for public work, as defined in this chapter, unless currently registered and qualified
to perform public work pursuant to Section 1725.5. It is not a violation of this section for an
unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and
Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract
is awarded.”
CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is
required to post all job site notices prescribed by law or regulation and CONSULTANT is subject to SB 854-compliance monitoring and enforcement by DIR.
CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of
Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security number, work
classification, straight time and overtime hours worked each day and week, and the actual per diem
wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively,
CONSULTANT and its listed subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and made available
for inspection at all reasonable hours at the principal office of CONSULTANT and its listed
subcontractors, respectively.
At the request of CITY, acting by its project manager, CONSULTANT and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY’s request.
CITY requests CONSULTANT and its listed subcontractors to submit the certified
payroll records to the project manager at the end of each week during the Project. If the certified payroll records are not produced to the project manager within the 10-day period,
DocuSign Envelope ID: 7208B4E4-3904-4E59-B9A4-34FB356C6514
Professional Services Rev. April 27, 2018 28
then CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred
dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold
the sum total of penalties from the progress payment(s) then due and payable to CONSULTANT.
Inform the project manager of the location of CONSULTANT’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also
provide notice to the project manager within five (5) business days of any change of location of
those payroll records.
DocuSign Envelope ID: 7208B4E4-3904-4E59-B9A4-34FB356C6514
City of Palo Alto (ID # 11672)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 12/7/2020
City of Palo Alto Page 1
Summary Title: 1st Reading: Downtown In-Lieu Parking Office Ban Temporary
Extension to 2022
Title: PUBLIC HEARING: Adoption of an Ordinance Amending Section
18.52.070 (Parking Regulations for CD Assessment District) to Temporarily
Extend Ineligibility of Certain Uses to Participate in the University Avenue In-
lieu Parking Program for 18 Months
From: City Manager
Lead Department: Planning and Development Services
Recommendation
The Planning and Transportation Commission (PTC) and Staff recommend that Council adopt an
ordinance extending the existing temporary ban on commercial office uses above the ground
floor from participating in Palo Alto’s Downtown in-lieu parking program (Attachment A).
Executive Summary
The existing temporary ban preventing upper floor office uses from participating in the City’s
Downtown in-lieu parking program is due to expire on February 1, 2021. The proposed
ordinance does not make any changes to the details of the temporary ban, but specifically
modifies the term to extend for 18 months, until August 1, 2022. The intent of the extension is
to provide sufficient time (1) for staff to complete the additional analysis and hold a discussion
with the Planning and Transportation Commission as requested by Council when the ban was
first put into place, and (2) to return to Council for consideration.
The PTC reviewed the draft Ordinance on November 18, 2020 and recommended Council
approval (6-0-1, Riggs absent).
Background
City of Palo Alto Page 2
On April 1, 2019, the City Council adopted an ordinance amending the municipal code to enact
several new housing policies.1 Included in this ordinance was a new temporary ban that
precludes commercial office uses above the ground floor from participating in the City’s
downtown in-lieu parking program. When enacting the ban, the City Council directed the PTC to
study the interaction between the City’s parking policy on housing production and requested
that staff return to the Council in one year with recommendations.
With available resources advancing other Council priorities, staff was unable to schedule this
item for PTC review within the Council-directed timeframe. On May 11, 2020, Council
acknowledged these circumstances and supported a nine-month extension of the ban with a
First Reading of the respective ordinance.2 For procedural clarification, the extension ordinance
was considered an urgency ordinance and PTC review was not required. At the Council meeting,
there was discussion regarding letting the ban lapse and removing the limitations; Council
direction did not support this. Council reaffirmed prior direction to staff to do the additional
analysis and get PTC input. The staff report3 and video4 are available for more details (see Item
#8). Since the May Council meeting, Planning and Development Services staff focused on
COVID-19 pandemic-related assignments. The temporary ban ends on February 1, 2021 and the
proposed extension allows the temporary parking policy to continue and provides staff the time
needed to perform the work.
Note: Previous ordinances enacting the temporary ban amended the text of PAMC 18.18.090;
this language was recently moved and consolidated with PAMC 18.52.070, as reflected in the
attached ordinance.
Discussion
Downtown Palo Alto has seen little housing development in recent years. Office rental rates in
this area are among the highest in the nation and the return on commercial office investment
far outpaces any return on residential housing. Historically, there has been little incentive for a
Downtown property owner to redevelop their property into housing.
Council considered a strategy to begin to tip the balance toward home production and away
from office development. The strategy was to ban commercial office space participation in the
City’s in-lieu parking program and to implement housing policies enacted last year.
1 Council Staff Report, 04/01/19:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=52156.04&BlobID=69992
3 Council Staff Report, 05/11/20:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=44708.52&BlobID=76435
4 Meeting Video, 05/11/20: https://midpenmedia.org/city-council-152-5112020/
City of Palo Alto Page 3
Participation in the in-lieu parking program allows developers to pay a fee toward future
downtown parking that serves the district, instead of placing those parking spaces on site.
There are several reasons why in-lieu parking programs are beneficial; these programs support
an urban design perspective, public parking implementation strategy and, for property owners
redeveloping property, an economic perspective. Conversely, there has been some public
criticism of the in-lieu parking program; staff acknowledges there is controversy regarding how
this policy has been implemented over the past two decades. Moreover, until recently, the in-
lieu fee cost per parking space was well below current construction costs; this meant the City
was not receiving the full amount to enable building those parking spaces in the future. With
construction of the California Avenue area public parking garage, the fee has been since been
adjusted and is more in line with today’s costs (current fee: $106,171 / space).
Despite the ban, there have been no new applications for housing development Downtown.
There has been no new commercial development that was not previously approved or
exempted from the ban. Aside from the pandemic, there are likely many factors that influence
the lack of development. These factors include opportunity, construction costs, and the time it
takes to design an application for submittal. However, the regulatory uncertainty associated
with a temporary ban is also likely a significant factor.
The in-lieu parking ban was intended to pause commercial development while the PTC and
Council took the opportunity to consider changes to its housing policies to promote more home
building. However, this discussion has not started. Meanwhile, the City still maintains controls
on office development, including a 50,000 square foot cap per year in the Downtown, California
Avenue area and along El Camino Real. In five years, Downtown has had a net increase of about
18,000 square feet of new office.
Proposed Schedule
Staff plans to bring this discussion forward to the PTC in Spring and Summer 2021 with a Study
Session(s). Following that, staff will host a study session with the Council to garner input
regarding the ideas that staff and the PTC proposed. Staff anticipate the study session to be
held in Fall 2021. Adoption of new regulations, as applicable, are anticipated to be prepared in
the Winter of 2021 through the Spring of 2022. With this timeline in mind, staff propose
extending the ban to provide time for thorough review, policy development, and adoption.
Planning and Transportation Commission Review
The PTC reviewed the draft Ordinance on November 18, 2020 and voted 6-0-1 to recommend
Council approve the extension. PTC members expressed a desire to study the issue and prepare
recommendations to Council that advance the City’s goal of housing development.
Summary of Key Issues
City of Palo Alto Page 4
The City Council enacted and extended a temporary ban prohibiting Downtown property
owners and developers from participating in the City’s in-lieu parking program for commercial
office uses above the ground floor. In this report, Council is asked to approve a second
extension of the temporary ban for an additional 18 months, ending August 1, 2022.
Policy Implications
Enacting the ban on commercial office space participation in the City’s in-lieu parking program
was viewed as a strategy to level the playing field between office and residential development
in the Downtown, with the intention to disincentivize office use. As reported earlier in this
report, the City has not received any new Downtown housing application since the ban went
into effect in April 2019. The implications of the ban are difficult to report on due to the short
timeline that it has been in place and due to the present public health and economic impacts
associated with the coronavirus. Staff will provide more analysis when this returns to Council
for discussion.
Resource Impact
This action has no significant budget or fiscal impact.
Timeline
If City Council adopts the ordinance on December 7, 2020 (First Reading), the Second Reading is
tentatively scheduled for January 11, 2021. The ordinance will become effective 31 days
following the Second Reading, February 11, 2021. There will be a brief gap of ten days in
coverage.
Stakeholder Engagement
Internal coordination with applicable city staff and departments was held for this specific report
and ordinance.
Environmental Review
The Ordinance is subject to the California Environmental Quality Act (CEQA). The environmental
effects of temporarily banning in-lieu parking, along with other elements of the Housing Work
Plan, were analyzed in the Final EIR for the Comprehensive Plan Update, which was certified
and adopted by Council Resolution No. 9720.
Attachments:
Attachment A: Ordinance Extending Univ Ave In Lieu Ban (PDF)
*NOT YET APPROVED*
0160030_20201112_ay_16 1
Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Amending Section 18.52.070
(Parking Regulations for CD Assessment District) of Chapter 18.52 (Parking and
Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code
(PAMC) to Temporarily Extend Ineligibility of Certain Uses to Participate in the
University Avenue In‐Lieu Parking Program
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and declarations. The City Council finds and declares as follows:
A. The City of Palo Alto (City) is a job center with among the highest housing prices and
greatest jobs to housing imbalances in the Bay Area, resulting in a housing shortage that
threatens the city’s prosperity, diversity, stability, environment, quality of life, and
community character.
B. A variety of policies result in incentives for office development over housing, including
the availability of the University Avenue In‐Lieu Parking Program.
C. On April 1, 2019, the Palo Alto City Council adopted Ordinance 5460, which included a
temporary ban on participation in the University Avenue In‐Lieu Parking Program for
certain uses, pending further study and recommendation from the Planning and
Transportation Commission (PTC).
D. Additional time is required for the City staff and the PTC to develop a recommendation
regarding permanent changes to the University Avenue Parking In‐Lieu Program.
E. On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency
due to the threat of Coronavirus Disease 2019 (COVID‐19).
F. On March 16, 2020, the public health officers for the six Bay Area counties, including
Santa Clara County, took the unprecedented and dramatic step of issuing “shelter‐in‐
place” orders directing county residents to shelter at home for three weeks beginning
March 17 (the Shelter‐in‐Place Order). The Order limited activity, travel, and business
functions to only the most essential needs.
G. On May 11, 2020 the City Council introduced, and on October 5, 2020 adopted,
Ordinance 5506 to extend the temporary ban until February 1, 2021.
H. The prolonged nature of the COVID‐19 pandemic has precluded the collection of data
and further study of parking strategies in the University Avenue downtown area.
*NOT YET APPROVED*
0160030_20201112_ay_16 2
I. Pursuant to Palo Alto Municipal Code section 18.80.090, the public health, safety, and
welfare require that the temporary ban on participation in the University Avenue In‐Lieu
Parking Program be further extended to maintain the status quo.
SECTION 2. Subdivision (d) of Section 18.52.070 (Parking and Loading) of Chapter 18.52
(Parking and Loading Requirements) of Title 18 (Zoning) is hereby amended to read as follows:
18.18.090 Parking and Loading
[. . .]
(d) In‐lieu Parking Provisions
In connection with any expansion of the supply of public parking spaces within the CD
commercial downtown district, the city shall allocate a number of spaces for use as "in‐
lieu parking" spaces to allow development to occur on sites which would otherwise be
precluded from development due to parking constraints imposed by this chapter. Off‐
site parking on such sites may be provided by payment of an in‐lieu monetary
contribution to the city to defray the cost of providing such parking. Contributions for
each required parking space shall equal the incremental cost of providing a net new
parking space in an assessment district project plus cost for the administration of the
program, all as determined pursuant to Chapter 16.57 of Title 16 of this code, by the
director, whose decision shall be final. Only sites satisfying one or more of the following
criteria, as determined by the director, shall be eligible to participate in the in‐lieu
parking program:
(1) Construction of on‐site parking would necessitate destruction or substantial
demolition of a designated historic structure;
(2) The site area is less than ten thousand square feet and it would not be
physically feasible to provide the required on‐site parking;
(3) The site is greater than 10,000 square feet, but of such an unusual configuration
that it would not be physically feasible to provide the required on‐site parking;
(4) The site is located in an area where city policy precludes curb cuts or otherwise
prevents use of the site for on‐site parking; or
(5) The site has other physical constraints, such as a high groundwater table, which
preclude provision of on‐site parking without extraordinary expense.
*NOT YET APPROVED*
0160030_20201112_ay_16 3
Office uses above the ground floor shall not be eligible to participate in the in‐lieu
parking program from the effective date of Ordinance No. 5460 through February 1,
2021 through August 1, 2020.
[. . .]
SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any
reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed this Ordinance and each
and every section, subsection, sentence, clause, or phrase not declared invalid or
unconstitutional without regard to whether any portion of the Ordinance would be
subsequently declared invalid or unconstitutional.
SECTION 4. The Council finds that the potential environmental impacts related to the Housing
Workplan Ordinance, including the amendments enacted herein were analyzed in the Final EIR
for the Comprehensive Plan Update, which was certified and adopted by the Council by
Resolution No. 9720 on November 13, 2017. This Ordinance is consistent with and implements
the program evaluated in the EIR.
///
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///
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*NOT YET APPROVED*
0160030_20201112_ay_16 4
SECTION 5. This Ordinance shall be effective on the thirty‐first date after the date of its
adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning & Development
Services
City of Palo Alto (ID # 11815)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 12/7/2020
City of Palo Alto Page 1
Summary Title: 788 San Antonio and Housing Incentive Program Expansion
(2nd Reading)
Title: SECOND READING: Adoption of an Ordinance Amending Palo Alto
Municipal Code (PAMC) Title 18, Chapters Chapter 18.04, 18.16, 18.40, and
18.52 to: 1) Expand the Housing Incentive Program to San Antonio Road, and
2) Amend Definition of Gross Floor Area and Amend Retail Preservation for
Housing (FIRST READING November 16, 2020 PASSED: 4-3 DuBois, Filseth,
Kou)
From: City Manager
Lead Department: Planning and Development Services
Recommendation:
Staff recommends that the City Council adopt an Ordinance (Attachment A) on second reading
to amend Title 18 of the Palo Alto Municipal Code.
Background:
On November 16, 2020, the City Council reviewed and adopted on first reading a draft
ordinance amending Chapters 18.04, 18.16, 18.40, and 18.52 of the Palo Alto Municipal Code
(staff report #11565). There were two separate motions of approval concerning the Ordinance.
The first motion below passed, moved by Council Member Kniss and seconded by Vice Mayor
DuBois, with a 7-0 vote.
A. Adopt a Resolution certifying the Final Environmental Impact Report, adopting California
Environmental Quality Act (CEQA) findings, a Statement of Overriding Considerations
and a Mitigation, Monitoring and Reporting Program;
B. Approve the 788 San Antonio Road project, construction hours, and the addition of a
historical plaque;
City of Palo Alto Page 2
C. Adopt a Record of Land Use Action approving the requests for a Tentative Map,
Variance and Architectural Review based on findings and subject to conditions of
approval;
D. And to the extent necessary for the project:
i. Adopt a Resolution amending Comprehensive Plan Land Use Element Program
L2.4.1;
ii. Introduce an Ordinance approving text amendments to the Palo Alto Municipal Code
Title 18.
The second motion below passed, moved by Council Member Kniss and seconded by Mayor
Fine, with a 4-3 vote (DuBois, Filseth and Kou voting no).
A. In order to extend the Housing Incentive Program (HIP) to the two-block area as defined
in the administrative record:
i. Adopt a Resolution amending Comprehensive Plan Land Use Element Program
L2.4.1;
ii. Introduce an Ordinance approving text amendments to the Palo Alto Municipal Code
Title 18; and
B. Direct Staff to return with parameters for a San Antonio Corridor transportation study
Attachments:
Attachment A - Ordinance Amending Title 18 (zoning) (PDF)
Not Yet Approved
1
0160032_20201123_ay_16
Ordinance No.
Ordinance of the Council of the City of Palo Alto Amending Title 18 (Zoning) of
the Palo Alto Municipal Code, Including Chapters 18.04 (Definitions) and 18.16
(Neighborhood, Community, and Service Commercial (CN, CC, and CS) Districts),
18.40 (General Standards and Exceptions) and 18.52 (Parking and Loading
Requirements) to Establish the Housing Incentive Program for CS Zoned
Properties Along San Antonio Road Between Middlefield Road and East
Charleston Road, Including Rooftop Gardens, Modified Parking Requirements;
Change the Gross Floor Area Definition to Exempt Certain Subterranean Square
Footage; Modify Retail Preservation for Certain Housing Projects
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as
follows:
A. In November 2017, the City adopted an updated Comprehensive Plan that
projected 3,545 to 4,420 new housing units between 2015 and 2030, and included policies to
encourage housing production. The Council subsequently approved a Housing Work Plan with to
support the City’s efforts in meeting its Regional Housing Needs Assessment (RHNA) allocation of
1,988 units at varying levels of affordability and the goals inherent in the Comprehensive Plan
policies. The Housing Work Plan detailed the actions needed to spur the production of housing,
and included the proposed zoning changes reflected in this Ordinance to remove barriers and
disincentives to housing development at higher densities where appropriate near transit, jobs
and services, and that is affordable for a range of income levels.
B. On April 1, 2019, the City adopted the Housing Work Plan, which included
various zoning ordinance amendments related to residential and residential mixed‐use
developments standards such as the housing incentive program, rooftop gardens and parking
requirements.
C. On March 5, 2019, Ted O’Hanlon, representing Explore Real Estate on behalf
of 788 SAPA Land Inc., the property owner for 788 San Antonio Road in Palo Alto, submitted an
application for a high‐density residential project. That project has since evolved to include a
commercial component.
D. On May 20, 2019, the City Council held a duly noticed public hearing and was
presented a pre‐screening of the project that included potential zoning text amendments to
implement the project and developments such as the project within the vicinity (CMR 10330).
E. On August 12, 2020, the Planning & Transportation Commission conducted a
duly noticed public hearing, at which it reviewed, considered, and recommended the
amendments to the Palo Alto Municipal Code described herein (CMR 11483).
Not Yet Approved
2
0160032_20201123_ay_16
F. On November 16, 2020, the City Council held a duly noticed public hearing and
considered the subject amendment, including the recommendation from staff and the Planning
& Transportation Commission and all public comments received prior to or at the hearing. The
Council introduced the Ordinance for first reading.
G. The proposed Ordinance promotes the development of housing in accordance
with the goals and policies in the City’s Comprehensive Plan and the purposes of the City’s Zoning
Code.
H. The proposed ordinance was considered through the California Environmental
Quality Act.
SECTION 2. Subsection (a)(65)(B) (Gross Floor Area, Non‐residential & Multifamily
Exclusions) of Section 18.04.030 of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto
Municipal Code (PAMC) is amended to add a new subdivision (vi) as follows:
18.04.030 Definitions
(a) Throughout this title the following words and phrases shall have the meanings
ascribed in this section.
[. . .]
(65) “Gross floor area” is defined as follows:
[. . .]
(B) Non‐residential & Multifamily Exclusions: For all zoning districts other than
the R‐E, R‐1, R‐2 and RMD residence districts, “gross floor area” shall not include
the following:
[. . .]
(vi) In subterranean parking garages: Areas designed and required for
electrical and fire equipment rooms, and other areas designated for similar
purposes that do not increase the intensity of the use of the site; this
exclusion only applies to the minimum area needed for equipment rooms,
and similar purposes to comply with current code requirements.
[. . .]
Not Yet Approved
3
0160032_20201123_ay_16
SECTION 3. Subsection (k) (Housing Incentive Program) of Section 18.16.060
(Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial
(CN, CC, and CS) Districts) of Title 18 (Zoning) of the PAMC is amended as follows:
18.16.060 Development Standards
[. . .]
(k) Housing Incentive Program
(1) For an exclusively residential or residential mixed‐use project in the CC(2)
zone or on CN or CS zoned sites on El Camino Real, the Director may waive
the residential floor area ratio (FAR) limit and the maximum site coverage
requirement after the project with the proposed waiver or waivers is
reviewed by the Architectural Review Board, if the Director finds that a
project exceeding these standards is consistent with the required
architectural review findings. In no event shall the Director approve a
commercial FAR that exceeds the standard in Table 4 of Section
18.16.060(b) or a total FAR (including both residential and commercial
FAR) in excess of 2.0 in the CC(2) zone or 1.5 in the CN or CS zone.
(1) The Director may waive the residential floor area ratio (FAR) limit and the
maximum site coverage requirement for a project that is reviewed by the
Architectural Review Board, if the Director finds that the project with such
waiver or waivers is consistent with the required architectural review
findings in Section 18.76.020. The Director may only waive these
development standards in the following areas and subject to the following
restrictions:
(A) For an exclusively residential or mixed‐use project in the CC(2)
zone or on CN or CS zoned sites on El Camino Real. In no event
shall the Director approve a commercial FAR that exceeds the
standard in Table 4 of Section 18.16.060(b) or a total FAR
(including both residential and commercial FAR) in excess of 2.0
in the CC(2) zone or 1.5 in the CN or CS zone.
(B) For an exclusively residential or mixed‐use project on CS zoned
sites on San Antonio Road between Middlefield Road and East
Charleston Road. In no event shall the Director approve a
commercial FAR that exceeds the standard in Table 4 of Section
18.16.060(b) or a total FAR (including both residential and
commercial FAR) in excess of 2.0.
(2) For a 100% affordable housing project in the CC(2) zone or on CN or CS
zoned sites on El Camino Real, the Director may waive any development
Not Yet Approved
4
0160032_20201123_ay_16
standard including parking after the project with the proposed waiver or
waivers is reviewed by the Architectural Review Board, if the Director
finds that a project with such waiver or waivers is consistent with the
required architectural review findings. In no event shall the Director
approve development standards more permissive than the standards
applicable to the Affordable Housing (AH) Combining District in Chapter
18.30(J). A “100% affordable housing project” as used herein means a
multiple‐family housing or mixed‐use project in which the residential
component consists entirely of affordable units, as defined in Section
16.65.020 of this code, available only to households with income levels at
or below 120% of the area median income, as defined in Section
16.65.020, and where the average household income does not exceed
60% of the area median income level, except for a building manager’s
unit.
(2) The Director may waive any development standard including parking for
a project that is reviewed by the Architectural Review Board, if the
Director finds that the project with such waiver or waivers is consistent
with the required architectural review findings in Section 18.76.020. The
Director may only waive these development standards in the following
areas and subject to the following restrictions:
(A) For a 100% affordable housing project in the CC(2) zone or on
CN or CS zoned sites on El Camino Real;
(B) For a 100% affordable housing project on CS zoned sites on San
Antonio Road between Middlefield Road and East Charleston
Road.
(C) In no event shall the Director approve development standards
more permissive than the standards applicable to the Affordable
Housing (AH) Combining District in Chapter 18.30(J). A “100%
affordable housing project” as used herein means a multiple‐
family housing or mixed‐use project in which the residential
component consists entirely of affordable units, as defined in
Section 16.65.020 of this code, available only to households with
income levels at or below 120% of the area median income, as
defined in Section 16.65.020, and where the average household
income does not exceed 60% of the area median income level,
except for a building manager’s unit.
(3) This program is a local alternative to the state density bonus law, and
therefore, a project utilizing this program shall not be eligible for a density
bonus under Chapter 18.15 (Residential Density Bonus).
[. . .]
Not Yet Approved
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0160032_20201123_ay_16
SECTION 4. Footnote (2) of Table 4 (Mixed Use and Residential Development
Standards) of Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood,
Community, and Service Commercial (CN, CC, and CS) District) of Title 18 (Zoning) of the PAMC is
amended as follows:
Section 18.18.060 Development Standards
[. . .]
(b) Mixed Use and Residential
Table 4 specifies the development standards for new residential mixed use
developments and residential developments. These developments shall be
designed and constructed in compliance with the following requirements and the
context‐based design criteria outlined in Section 18.16.090, provided that more
restrictive regulations may be recommended by the architectural review board
and approved by the director of planning and community environment, pursuant
to Section 18.76.020.
Table 4
Mixed Use and Residential Development Standards
CN CC CC(2) CS Subject to regulations
in:
Minimum Site
Specifications
Site Area (ft2)
None required
Site Width (ft)
Site Depth (ft)
Minimum Setbacks
Setback lines imposed
by a special setback
map pursuant to
Chapter 20.08 of this
code may apply
Front Yard (ft)
0' ‐ 10' to
create an
8' ‐ 12'
effective
sidewalk
width (8)
None
Required (8
)
0' ‐ 10' to
create an 8'
‐ 12'
effective
sidewalk
width (8)
0' ‐ 10' to
create an 8'
‐ 12'
effective
sidewalk
width (8)
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0160032_20201123_ay_16
Rear Yard (ft) 10' for residential portion; no requirement for
commercial portion
Rear Yard abutting
residential zone
district (ft)
10'
Interior Side Yard if
abutting residential
zone district (ft)
10'
Street Side Yard (ft) 5'
Build‐to‐Lines 50% of frontage built to setback (1)
33% of side street built to setback (1)
Permitted Setback
Encroachments
Balconies, awnings, porches, stairways, and similar
elements may extend up to 6' into the
setback. Cornices, eaves, fireplaces, and similar
architectural features (excluding flat or continuous
walls or enclosures of interior space) may extend up
to 4' into the front and rear setbacks and up to 3' into
interior side setbacks
Maximum Site
Coverage 50% 50% 100% 50%
Landscape/Open
Space Coverage 35% 30% 20% 30%
Usable Open Space 150 sq ft per unit (2)
Maximum Height (ft)
Standard 35'(4) 50' 37' 50'
Within 150 ft. of a
residential zone
district (other than
an RM‐40 or PC zone)
abutting or located
within 50 feet of the
side
35' 35'(5) 35'(5) 35'(5)
Daylight Plane for lot
lines abutting one or
more residential
zoning districts
Daylight plane height and slope shall be identical to
those of the most restrictive residential zoning district
abutting the lot line
Residential Density
(net)(3) 15 or 20(9) See sub‐
section (e)
below
No
maximum
30 18.16.060(i)
Sites on El Camino No No
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Real maximum maximum
Sites on San
Antonio Rd Between
Middlefield Rd and E.
Charleston Rd
15 or 20(9) ‐ No
Maximum
Maximum
Residential Floor
Area Ratio (FAR)
0.5:1(4) 0.6:1 0.6:1
Maximum
Nonresidential Floor
Area Ratio (FAR)
0.4:1 2.0:1 0.4:1
Total Mixed Use
Floor Area Ratio
(FAR)
0.9:1(4) 2.0:1 1.0:1
Minimum Mixed Use
Ground Floor
Commercial FAR(6)
0.15:1(10) 0.15:1(10)
0.25:1(7)(10) 0.15:1(10)
Parking See Chapters 18.52 and 18.54 (Parking) 18.52, 18.54
(1) Twenty‐five‐foot driveway access permitted regardless of frontage; build‐
to requirement does not apply to CC district.
(2) Required usable open space: (1) may be any combination of private and
common open spaces; (2) does not need to be located on the ground (but
rooftop gardens are not included as open space except as provided
below); (3) minimum private open space dimension six feet; and (4)
minimum common open space dimension twelve feet.
For CN and CS sites on El Camino Real, CS sites on San Antonio Road
between Middlefield Road and East Charleston Road and CC(2) sites that
do not abut a single‐ or two‐family residential use or zoning district,
rooftop gardens may qualify as usable open space and may count as up to
60% of the required usable open space for the residential component of
a project. In order to qualify as usable open space, the rooftop garden
shall meet the requirements set forth in Section 18.40.230.
(3) Residential density shall be computed based upon the total site area,
irrespective of the percent of the site devoted to commercial use.
[. . .]
Not Yet Approved
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SECTION 5. Subsection (c) (Waivers and Adjustments; and Exemptions) of Section
18.40.180 (Retail Preservation) of Chapter 18.40 (General Standards and Exceptions) of Title 18
(Zoning) of the PAMC is amended to add a new subsection (4)(C) as follows:
Section 18.40.180 Retail Preservation
[. . .]
(c) Waivers and Adjustments; and Exemptions
[. . .]
(4) Exemptions. The following uses shall be exempt or partially exempt from
the provisions of this Section 18.40.180, as provided below shall not apply
to:
[. . .]
(C) A high‐density residential or mixed‐use project in the CS zone
district, but not within the Ground Floor (GF) or Retail (R) combining
districts, shall be required to replace only 1,500 square feet of an existing
Retail or Retail‐Like use. For the purposes of this partial exemption, high‐
density shall mean 30 or more dwelling units per acre.
[. . .]
SECTION 6. Footnote 4 of Table 1 (Minimum Off‐Street Parking Requirements) of
Section 18.52.040 Off‐Street Parking, Loading and Bicycle Facility Requirements of Chapter 18.52
(Parking and Loading Requirements) of Title 18 (Zoning) of the PAMC are amended as follows:
18.52.040 Off‐Street Parking, Loading and Bicycle Facility Requirements
[. . .]
Table 1
Minimum Off‐Street Parking Requirements
[. . .]
1. Long Term (LT) and Short Term (ST) bicycle spaces as described in Section
18.54.060.
2. A "micro‐unit" as used herein means a residential unit of 450 square feet or less.
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3. Senior housing for purposes of this provision means an independent living
facility, not a convalescent or residential care facility.
4. For residential mixed‐use developments in the CD‐C zone, CC(2) zone, and on
CN and CS zoned sites abutting El Camino Real, and on CS zoned sites abutting
San Antonio Road between Middlefield Road and East Charleston Road, the first
1,500 square feet of ground‐floor retail uses shall not be counted toward the
vehicle parking requirement.
5. Because these parking standards are reduced from the standards otherwise
applicable to multiple‐family residential development, projects that utilize
these reduced parking standards shall not be eligible for further parking
reductions through adjustments under Section 18.52.050, Table 4.
[. . .]
SECTION 7. If any section, subsection, sentence, clause, or phrase of this Ordinance
is for any reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.
The City Council hereby declares that it would have passed this Ordinance and each and every
section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without
regard to whether any portion of the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 8. The City as the lead agency for the Project has determined that the
project is subject to environmental review under provisions of the California Environmental
Quality Act (CEQA) under Guideline section 15081, Decision to Prepare an EIR. Specifically, the
City prepared a Program EIR to address a series of actions that can be categorized as one large
project. A Historic Resource Evaluation was completed for the project because of the age of a
certain existing building on‐site and it was determined that the building is eligible for listing on
the California Register of Historical Resources. The loss of the potential resource through
demolition cannot be mitigated and required the preparation of an EIR. Statements of Overriding
Considerations are proposed. All other potential significant impacts can be mitigated to a level
of less than significant with the implementation of mitigation measures. A Final EIR was prepared
for the project that includes responses to comments made during the public draft circulation
period (ending on September 14, 2020) and revisions to the draft EIR.
//
//
//
//
Not Yet Approved
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0160032_20201123_ay_16
SECTION 9. This Ordinance shall be effective on the thirty‐first day after the
date of its adoption.
INTRODUCED: November 16, 2020
PASSED:
AYES: KNISS, FINE, TANAKA, CORMACK
NOES: DUBOIS, FILSETH, KOU
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Director of Planning & Development
Services
City of Palo Alto (ID # 11487)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 11/30/2020
City of Palo Alto Page 1
Summary Title: Contract Approval for Downtown Cleaning Services
Title: Approval of a Three-Year Contract with Downtown Streets, Inc., For a
Total Amount Not to Exceed $323,244 for Maintenance Services for the City's
Five Downtown Parking Garages, Downtown Sidewalks and Alleys, and
Provide Outreach Case Management Services to the Downtown Core with
the Intent of Linking Homeless Individuals to Community and Housing
Services
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve and authorize the City Manager or his designee to
execute Contract No. C21179861 with Downtown Streets Team, Inc., to provide cleaning
services and homeless case management services in the Downtown Business District, for a term
of three years and a total amount not to exceed $323,244.
Background
The Public Works Department’s Public Services Division is responsible for maintaining a safe
and clean Downtown Business District. The Downtown Streets Team, Inc. (DST), was founded by
the Palo Alto Business Improvement District (BID) to reduce panhandling, provide re-entry skills
to the homeless, and provide cleaning services to downtown. DST team members service the
Downtown Business District by reducing trash from full garbage containers, providing litter
removal for sidewalks, alleyways, and garages, reporting vehicles and/or activities of concern to
the proper authorities, and providing peer-to-peer outreach.
Discussion
Staff recommends Council approve a three-year contract with Downtown Streets Team, Inc., to
allow for the continuation of downtown cleaning services from November 30, 2020 through
November 29, 2023 (Attachment A). The City has partnered with DST since 2006 and as a result,
homelessness-related issues have decreased due to the presence of DST participants in the
garages. In 2010 discussions with downtown stakeholders, which included BID and Palo Alto
Downtown Professional and Business Association, a combination of services that would raise
City of Palo Alto Page 2
the standards of cleanliness in the area was requested. The enhanced services included
reducing trash from overflowing garbage receptacles, reporting graffiti and vandalism, litter
removal in the alleyways and in the five parking structures (S & L, R, J, Q and Civic Center), and
providing a roving patrol every 30 minutes for homeless individuals, vehicles and/or activities of
concern, and safety hazards. The litter control provided by DST also assists the City in avoiding
storm water compliance related issues in the Downtown area.
In addition to providing cleaning services, DST strives to reduce homelessness by encouraging
participants to take an active role in their recovery, model positive behavior, and create long-
term solutions for their peers. Participants can work with a case manager to obtain housing
and other life support credits. Each participant is evaluated on his/her individual performance
and recognized for their accomplishments. The skills learned through this program can be used
to seek further employment.
The City has contracted with DST since 2006 and since DST continues to be the only vendor that
uses a peer-to-peer model to provide outreach to homeless individuals while also providing
cleaning services, this contract met the requirements for a sole source exemption from
solicitation based on Municipal Code section 2.30.360(d). Staff recognizes, however, that the
use of a sole source exemption can raise other questions regarding organizational stability and
internal controls. As such, staff will refer this relationship to the City’s new independent
auditor for consideration of an appropriately-scoped audit.
This contract is on the City’s general services template, which permits the City to terminate
without cause/for convenience by providing written notice to the contractor. In the event the
City finds itself facing a challenging budget situation, and it is determined that City resources
need to be refocused elsewhere, the City can terminate for convenience. Other options include
termination due to non-appropriation of funds or amending the contract to reduce the cost, for
example, by reducing the scope of work.
Resource Impact
The annual cost of this contract has decreased from $136,872 to $107,748 from the previous
contract with Downtown Streets Team, Inc., after Community Services Department removed
services provided for Lytton Plaza, Old Community Garden, Stanford/Palo Alto Playing Fields,
and Cogswell Plaza, which are now provided by another vendor (with a traditional business
model). Funding for this contract is available in the Fiscal Year 2021 University Avenue Parking
District Fund. The annual budget for the subsequent contract years is shown in the table
below, with funding for each subsequent year to be addressed and recommended to Council
during the Fiscal Year 2022 and 2023 budget development processes.
City of Palo Alto Page 3
Table1: Annual and Total Not-to-Exceed Contract Costs
Year Total Not to Exceed Amount
University Avenue Parking Permit Fund - FY21
$107,748
University Avenue Parking Permit Fund - FY22
(Subject to annual appropriation of funds) $107,748
University Avenue Parking Permit Fund - FY23
(Subject to annual appropriation of funds) $107,748
Total for three years $323,244
Stakeholder Engagement
Staff discusses the Downtown Streets Team’s work during monthly Palo Alto Downtown
Professional and Business Association meetings. The group supports a continued partnership
between the City and Downtown Streets Team.
Environmental Review
The recommended action is CEQA-exempt under the California Environmental Quality Act
pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that
there is no possibility of a significant effect on the environment.
Attachments:
• Attachment A - General Services Contract No. C21179861 with Downtown Streets Team
City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
CITY OF PALO ALTO CONTRACT NO. C21179861
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 30th day of November, 2020 by and
between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”),
and DOWNTOWN STREETS TEAM, INC., a California public benefit non-profit corporation,
located at 1671 The Alameda, Suite 306, San Jose, CA 95126, Telephone Number: (650)
305-1174 (“CONTRACTOR”). In consideration of their mutual covenants, the parties
hereto agree as follows:
1.SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”)
described in the Scope of Services, attached at Exhibit A.
2.EXHIBITS. The following exhibits are attached to and made a part of this
Agreement:
“A” - Scope of Services
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3.TERM.
The term of this Agreement is from November 30, 2020 to November 29, 2023
inclusive, subject to the provisions of Sections R and W of the General Terms and
Conditions.
4.SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within
the term of this Agreement in a reasonably prompt and timely manner based upon
the circumstances and direction communicated to CONTRACTOR, and if
applicable, in accordance with the schedule set forth in the Schedule of
Performance, attached at Exhibit B. Time is of the essence in this Agreement.
5.COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees
to accept as not-to-exceed compensation for the full performance of the Services
and reimbursable expenses, if any:
DocuSign Envelope ID: 4322568C-D7E8-4F5B-9E4B-8A118D81A2F8
City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
The total maximum lump sum compensation of dollars ($ );
OR
The sum of dollars ($ ) per hour, not to exceed a total
maximum compensation amount of dollars ($ ); OR
A sum calculated in accordance with the fee schedule set forth at Exhibit
C, not to exceed a total maximum compensation amount of Three Hundred
Twenty-Three Thousand, Two Hundred and Forty-Four dollars
($323,244.00).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed
the total maximum compensation set forth above. Any hours worked or services
performed by CONTRACTOR for which payment would result in a total exceeding
the maximum amount of compensation set forth above for performance of the
Services shall be at no cost to CITY.
CITY has set aside the sum of dollars ($ ) for Additional
Services. CONTRACTOR shall provide Additional Services only by
advanced, written authorization from the City Manager or designee.
CONTRACTOR, at the CITY’s request, shall submit a detailed written
proposal including a description of the scope of services, schedule, level of
effort, and CONTRACTOR’s proposed maximum compensation, including
reimbursable expense, for such services. Compensation shall be based on
the hourly rates set forth above or in Exhibit C (whichever is applicable), or
if such rates are not applicable, a negotiated lump sum. CITY shall not
authorize and CONTRACTOR shall not perform any Additional Services for
which payment would exceed the amount set forth above for Additional
Services. Payment for Additional Services is subject to all requirements and
restrictions in this Agreement.
6.COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the
same as the original term; OR
CONTRACTOR’s compensation rates shall be adjusted effective on the
commencement of each Additional Term. The lump sum compensation
amount, hourly rates, or fees, whichever is applicable as set forth in section
5 above, shall be adjusted by a percentage equal to the change in the
Consumer Price Index for Urban Wage Earners and Clerical Workers for the
San Francisco-Oakland- San Jose area, published by the United States
Department of Labor Statistics (CPI) which is published most immediately
DocuSign Envelope ID: 4322568C-D7E8-4F5B-9E4B-8A118D81A2F8
City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
preceding the commencement of the applicable Additional Term, which
shall be compared with the CPI published most immediately preceding the
commencement date of the then expiring term. Notwithstanding the
foregoing, in no event shall CONTRACTOR’s compensation rates be
increased by an amount exceeding five percent of the rates effective
during the immediately preceding term. Any adjustment to
CONTRACTOR’s compensation rates shall be reflected in a written
amendment to this Agreement.
7.CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of
this Section 7, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or
other public improvement of any kind. Public Contract Code Section 9204
mandates certain claims procedures for Public Works Projects, which are set
forth in “Appendix __ Claims for Public Contract Code Section 9204 Public Works
Projects”.
This project is a 9204 Public Works Project and is required to comply with
the claims procedures set forth in Appendix __, attached hereto and
incorporated herein.
OR
This project is not a 9204 Public Works Project.
8.INVOICING. Contractor shall send all invoices to CITY, Attention: Project Manager.
The Project Manager is: Kaela White, Dept.: Public Works, Telephone: (650) 496-
5945. Invoices shall be submitted in arrears for Services performed. Invoices shall
not be submitted more frequently than monthly. Invoices shall provide a detailed
statement of Services performed during the invoice period and are subject to
verification by CITY. CITY shall pay the undisputed amount of invoices within 30
days of receipt.
GENERAL TERMS AND CONDITIONS
A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of
this Agreement. This Agreement includes and is limited to the terms and
conditions set forth in sections 1 through 8 above, these general terms and
conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise
and qualifications to complete the services described in Section 1 of this
DocuSign Envelope ID: 4322568C-D7E8-4F5B-9E4B-8A118D81A2F8
City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
Agreement, entitled “SERVICES,” and that every individual charged with the
performance of the services under this Agreement has sufficient skill and
experience and is duly licensed or certified, to the extent such licensing or
certification is required by law, to perform the Services. CITY expressly relies on
CONTRACTOR’s representations regarding its skills, knowledge, and certifications.
CONTRACTOR shall perform all work in accordance with generally accepted
business practices and performance standards of the industry, including all
federal, state, and local operation and safety regulations.
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the
performance of this Agreement, CONTRACTOR and any person employed by
CONTRACTOR shall at all times be considered an independent CONTRACTOR and
not an agent or employee of CITY. CONTRACTOR shall be responsible for
employing or engaging all persons necessary to complete the work required under
this Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any
Services under this Agreement unless CONTRACTOR obtains prior written consent
of CITY. CONTRACTOR shall be solely responsible for directing the work of
approved subcontractors and for any compensation due to subcontractors.
E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes,
fees, contributions or charges applicable to the conduct of CONTRACTOR’s
business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services
comply with all applicable federal, state and local laws, ordinances, regulations,
and orders.
G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all
requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum
Wage), as it may be amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2)
hours of work in a calendar week within the geographic boundaries of the City,
CONTRACTOR shall pay such employees no less than the minimum wage set
forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within
the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR
shall post notices regarding the Palo Alto Minimum Wage Ordinance in
accordance with Palo Alto Municipal Code section 4.62.060.
H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole
expense, repair in kind, or as the City Manager or designee shall direct, any
damage to public or private property that occurs in connection with
DocuSign Envelope ID: 4322568C-D7E8-4F5B-9E4B-8A118D81A2F8
City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
CONTRACTOR’s performance of the Services. CITY may decline to approve and
may withhold payment in whole or in part to such extent as may be necessary to
protect CITY from loss because of defective work not remedied or other damage
to the CITY occurring in connection with CONTRACTOR’s performance of the
Services. CITY shall submit written documentation in support of such withholding
upon CONTRACTOR’s request. When the grounds described above are removed,
payment shall be made for amounts withheld because of them.
I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under
this Agreement shall be performed in a professional and workmanlike manner in
accordance with generally accepted business practices and performance
standards of the industry and the requirements of this Agreement. CONTRACTOR
expressly warrants that all materials, goods and equipment provided by
CONTRACTOR under this Agreement shall be fit for the particular purpose
intended, shall be free from defects, and shall conform to the requirements of this
Agreement. CONTRACTOR agrees to promptly replace or correct any material or
service not in compliance with these warranties, including incomplete, inaccurate,
or defective material or service, at no further cost to CITY. The warranties set
forth in this section shall be in effect for a period of one year from completion of
the Services and shall survive the completion of the Services or termination of this
Agreement.
J. MONITORING OF SERVICES. CITY may monitor the Services performed under this
Agreement to determine whether CONTRACTOR’s work is completed in a
satisfactory manner and complies with the provisions of this Agreement.
K. CITY’S PROPERTY. Any reports, information, data or other material (including
copyright interests) developed, collected, assembled, prepared, or caused to be
prepared under this Agreement will become the property of CITY without
restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without
the prior written approval of the City Manager.
L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives
to audit, at any reasonable time during the term of this Agreement and for three
(3) years from the date of final payment, CONTRACTOR’s records pertaining to
matters covered by this Agreement. CONTRACTOR agrees to maintain accurate
books and records in accordance with generally accepted accounting principles for
at least three (3) following the terms of this Agreement.
M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial
acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights
under this Agreement.
DocuSign Envelope ID: 4322568C-D7E8-4F5B-9E4B-8A118D81A2F8
City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full
force during the term of this Agreement, the insurance coverage described at
Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A-
:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk
Manager must approve deductibles and self-insured retentions. In addition, all
policies, endorsements, certificates and/or binders are subject to approval by the
Risk Manager as to form and content. CONTRACTOR shall obtain a policy
endorsement naming the City of Palo Alto as an additional insured under any
general liability or automobile policy. CONTRACTOR shall obtain an endorsement
stating that the insurance is primary coverage and will not be canceled or
materially reduced in coverage or limits until after providing 30 days prior written
notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall
provide certificates of such policies or other evidence of coverage satisfactory to
the Risk Manager, together with the required endorsements and evidence of
payment of premiums, to CITY concurrently with the execution of this Agreement
and shall throughout the term of this Agreement provide current certificates
evidencing the required insurance coverages and endorsements to the Risk
Manager. CONTRACTOR shall include all subcontractors as insured under its
policies or shall obtain and provide to CITY separate certificates and endorsements
for each subcontractor that meet all the requirements of this section. The
procuring of such required policies of insurance shall not operate to limit
CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement.
O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation
by the provisions of section N relating to insurance, CONTRACTOR shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and
agents from and against any and all demands, claims, injuries, losses, or liabilities
of any nature, including death or injury to any person, property damage or any
other loss and including without limitation all damages, penalties, fines and
judgments, associated investigation and administrative expenses and defense
costs, including, but not limited to reasonable attorney’s fees, courts costs and
costs of alternative dispute resolution), arising out of, or resulting in any way from
or in connection with the performance of this Agreement. CONTRACTOR’s
obligations under this Section apply regardless of whether or not a liability is
caused or contributed to by any negligent (passive or active) act or omission of
CITY, except that CONTRACTOR shall not be obligated to indemnify for liability
arising from the sole negligence or willful misconduct of CITY. The acceptance of
the Services by CITY shall not operate as a waiver of the right of indemnification.
The provisions of this Section survive the completion of the Services or
termination of this Agreement.
DocuSign Envelope ID: 4322568C-D7E8-4F5B-9E4B-8A118D81A2F8
City of Palo Alto General Services Agreement 7 Rev. March 29, 2018
P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510,
CONTRACTOR certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation,
housing status, marital status, familial status, weight or height of such person.
CONTRACTOR acknowledges that it has read and understands the provisions of
Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all
requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement,
certifies that it is aware of the provisions of the Labor Code of the State of Califor-
nia which require every employer to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the provisions of
that Code, and certifies that it will comply with such provisions, as applicable,
before commencing and during the performance of the Services.
R. TERMINATION. The City Manager may terminate this Agreement without cause
by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If
CONTRACTOR fails to perform any of its material obligations under this
Agreement, in addition to all other remedies provided by law, the City Manager
may terminate this Agreement immediately upon written notice of termination.
Upon receipt of such notice of termination, CONTRACTOR shall immediately
discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily
performed up to the effective date of termination. If the termination is for cause,
CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to CONTRACTOR’s failure to perform its material obligations
under this Agreement. Upon termination, CONTRACTOR shall immediately deliver
to the City Manager any and all copies of studies, sketches, drawings,
computations, and other material or products, whether or not completed,
prepared by CONTRACTOR or given to CONTRACTOR, in connection with this
Agreement. Such materials shall become the property of CITY.
S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors
and assigns to all covenants of this Agreement. This Agreement shall not be
assigned or transferred without the prior written consent of CITY. No
amendments, changes or variations of any kind are authorized without the written
consent of CITY.
T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR 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 this Agreement. CONTRACTOR further covenants that, in the
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City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
performance of this Agreement, it will not employ any person having such an
interest. CONTRACTOR certifies that no CITY officer, employee, or authorized
representative has any financial interest in the business of CONTRACTOR and that
no person associated with CONTRACTOR has any interest, direct or indirect, which
could conflict with the faithful performance of this Agreement. CONTRACTOR
agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws
of the State of California.
V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire
agreement between the parties with respect to the services that may be the
subject of this Agreement. Any variance in the exhibits does not affect the validity
of the Agreement and the Agreement itself controls over any conflicting provisions
in the exhibits. This Agreement supersedes all prior agreements, representations,
statements, negotiations and undertakings whether oral or written.
W. NON-APPROPRIATION. 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.
X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Division,
which are incorporated by reference and may be amended from time to time.
CONTRACTOR 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, CONTRACTOR shall comply with the following
zero waste requirements:
•All printed materials provided by CONTRACTOR 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.
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City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
•Goods purchased by Contractor 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.
•Reusable/returnable pallets shall be taken back by CONTRACTOR, at no
additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide
documentation from the facility accepting the pallets to verify that pallets
are not being disposed.
Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties
represent and warrant that they have the legal capacity and authority to do so on
behalf of their respective legal entities.
Z. PREVAILING WAGES
This Project is not subject to prevailing wages. CONTRACTOR is not required to
pay prevailing wages in the performance and implementation of the Project in
accordance with SB 7, if the Agreement is not a public works contract, if
Agreement does not include a public works construction project of more than
$25,000, or the Agreement does not include a public works alteration, demolition,
repair, or maintenance (collectively, ‘improvement’) project of more than
$15,000.
OR
Contractor is required to pay general prevailing wages as defined in Subchapter
3, Title 8 of the California Code of Regulations and Section 16000 et seq. and
Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section
1773 of the Labor Code of the State of California, the City Council has obtained
the general prevailing rate of per diem wages and the general rate for holiday and
overtime work in this locality for each craft, classification, or type of worker
needed to execute the Agreement for this Project from the Director of the
Department of Industrial Relations (“DIR”). Copies of these rates may be obtained
at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide
a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay
the adopted prevailing wage rates as a minimum. Contractor shall comply with
the provisions of all sections, including, but not limited to, Sections 1775, 1776,
1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages.
AA. DIR REGISTRATION. In regard to any public work construction, alteration,
demolition, repair or maintenance work, CITY will not accept a bid proposal from
or enter into this Agreement with CONTRACTOR without proof that
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City of Palo Alto General Services Agreement 10 Rev. March 29, 2018
CONTRACTOR and its listed subcontractors are registered with the California
Department of Industrial Relations (“DIR”) to perform public work, subject to
limited exceptions. City requires CONTRACTOR and its listed subcontractors to
comply with the requirements of SB 854.
CITY provides notice to CONTRACTOR of the requirements of California Labor
Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid
proposal, subject to the requirements of Section 4104 of the Public Contract
Code, or engage in the performance of any contract for public work, as defined
in this chapter, unless currently registered and qualified to perform public work
pursuant to Section 1725.5. It is not a violation of this section for an
unregistered contractor to submit a bid that is authorized by Section 7029.1 of
the Business and Professions Code or Section 10164 or 20103.5 of the Public
Contract Code, provided the contractor is registered to perform public work
pursuant to Section 1725.5 at the time the Agreement is awarded.”
CITY gives notice to CONTRACTOR and its listed subcontractors that
CONTRACTOR is required to post all job site notices prescribed by law or
regulation and CONTRACTOR is subject to SB 854-compliance monitoring and
enforcement by DIR.
CITY requires CONTRACTOR and its listed subcontractors to comply with the
requirements of Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security
number, work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman, apprentice,
worker, or other employee employed by, respectively, CONTRACTOR and its
listed subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and
made available for inspection at all reasonable hours at the principal office of
CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its project manager, CONTRACTOR and its listed
subcontractors shall make the certified payroll records available for inspection or
furnished upon request to the project manager within ten (10) days of receipt of
CITY’s request.
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City of Palo Alto General Services Agreement 11 Rev. March 29, 2018
[For state- and federally-funded projects] CITY requests CONTRACTOR
and its listed subcontractors to submit the certified payroll records to the
project manager at the end of each week during the Project.
If the certified payroll records are not produced to the project manager within
the 10-day period, then CONTRACTOR and its listed subcontractors shall be
subject to a penalty of one hundred dollars ($100.00) per calendar day, or
portion thereof, for each worker, and CITY shall withhold the sum total of
penalties from the progress payment(s) then due and payable to CONTRACTOR.
Inform the project manager of the location of CONTRACTOR’s and its listed
subcontractors’ payroll records (street address, city and county) at the
commencement of the Project, and also provide notice to the project manager
within five (5) business days of any change of location of those payroll records.
BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the
case of any conflict between the terms of this Agreement and the exhibits hereto
or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of
any conflict between the exhibits hereto and CONTRACTOR’s proposal, the
exhibits shall control.
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 DOWNTOWN STREETS TEAM, INC
______________________________ By________________________________________ City Manager or Designee Name _____________________________________
Title_______________________________________
Approved as to form:
__________________________ City Attorney or Designee
DocuSign Envelope ID: 4322568C-D7E8-4F5B-9E4B-8A118D81A2F8
CEO
Eileen Richardson
City of Palo Alto General Services Agreement 12 Rev. March 29, 2018
EXHIBIT A SCOPE OF SERVICES
1.SERVICES
Task 1 – Street Cleaning Services CONTRACTOR shall perform Street Cleaning Services, which includes cleaning of the City’s five parking garages (Bryant/Lytton Garage; High/Alma South Garage; High/Alma
North Garage; Webster/Cowper Garage; and the Civic Center Garage), sidewalks, and alleyways in the Downtown Palo Alto area. These services shall be performed according to the attached schedule (Exhibit B) and shall be performed at a minimum by a two-person crew. The level of service provided shall include, but not be limited to, picking up litter,
reducing trash from overflowing trash receptacles along University Avenue, reporting
suspicious persons and/or vehicles to the proper authorities, reporting safety hazards such as raised sidewalks and lights that are out, and reporting cases of vandalism and graffiti. CONTRACTOR shall be responsible for providing all training, labor and equipment required to perform the tasks as specified in the contract, including the appropriate training and
Personal Protective Equipment (PPE) required for the collection of syringes (sharps). The CITY will provide sharp waste containers and dispose of those containers once filled. It is the responsibility of the CONTRACTOR to inform the Project Manager when sharp waste containers are full and need to be replaced and disposed. CONTRACTOR shall also, through the use of their employees, encourage other homeless individuals to explore other options,
and to explain all of the services that are available to homeless individuals. CONTRACTOR shall send teams daily to Palo Alto City Hall to conduct outreach, pick up trash, and ensure that no individuals are violating Palo Alto City Policy 4-07/MGR – Conduct in City Facilities.
The Downtown Streets Team (DST) Project Manager shall also attend quarterly meetings with the City’s Project Manager. CONTRACTOR shall provide a monthly report to Project Manager that reports data on the following:
•Number of homeless individuals found in the garages,
•Total number of interactions with homeless individuals,
•Number of follow ups with homeless individuals,
•Number of homeless individuals who report that they do not want to engage in
any services offered,
•And other pertinent information that conveys the barriers that homelessindividuals face in accessing, following up with and obtaining needed services.
The DST Project Manager shall also attend monthly meetings with the Palo Alto Downtown
Business and Professional Association (PADBPA) to act as a liaison between the business owners who have a vested interest in the services being provided, city staff who manage the contract, and the Downtown Streets Team who run the program. The DST Project Manager shall make a brief presentation at the monthly PADBPA meetings to relay what efforts have
been undertaken since the last meeting.
CONTRACTOR shall be compliant to all State and County regulations related to COVID-19, such as wearing a mask and performing social distancing.
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City of Palo Alto General Services Agreement 13 Rev. March 29, 2018
EXHIBIT B SCHEDULE OF PERFORMANCE
CONTRACTOR shall not perform services in cases of inclement weather (as determined by City staff and the Downtown Streets Team Project Manager) or during observed City holidays. The schedule and tasks can be modified during the term of the contract based on operational needs through a written mutual agreement between the CITY and the CONTRACTOR.
DAY TIME ACTIVITIES Monday 7-9 AM 9 AM 9-11 AM 11-11:15 AM 11:15 AM -12:30 PM 12:30-1:30 PM 1:30 PM 1:30-2 PM 2-3 PM 3-3:15 PM 3:15-5:15 PM 5:15 PM
Garage cleaning and outreach Shift change box Alleyways (Downtown North and South) Break at box and shift change University Ave Downtown South/City Hall Shift changes at box Downtown North Garage cleaning and outreach Break Garage cleaning and outreach Dismissal at box
Tuesday 7-9 AM 9 AM 9-11 AM 11-11:15 AM 11:15 AM -12:30 PM 12:30-1:30 PM 1:30 PM 1:30-2 PM 2-3 PM 3-3:15 PM 3:15-5:15 PM 5:15 PM
Garage cleaning and outreach Shift change box Alleyways (Downtown North and South) Break at box and shift change University Ave Downtown South/City Hall Shift changes at box Downtown North Garage cleaning and outreach Break Garage cleaning and outreach Dismissal at box
Wednesday 7-9 AM 9 AM 9-11 AM 11-11:15 AM 11:15 AM -12:30 PM 12:30-1:30 PM 1:30 PM 1:30-2 PM 2-3 PM 3-3:15 PM 3:15-5:15 PM 5:15 PM
Garage cleaning and outreach Shift change box Alleyways (Downtown North and South) Break at box and shift change University Ave Downtown South/City Hall Shift changes at box Downtown North Garage cleaning and outreach Break Garage cleaning and outreach Dismissal at box
Thursday 7-8 AM 8-9 AM 9 AM
Garage cleaning and outreach Downtown South/City Hall and Alleyways Shift changes at box Team 1 Team 2
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City of Palo Alto General Services Agreement 14 Rev. March 29, 2018
9-10 AM
10-10:15 AM 10:15-11:15 AM
11:30 AM
Downtown North and Alleyways University Ave
Break at box
Downtown North and Alleyways University Ave
Dismissal at box
Friday 7-9 AM 9 AM 9:30-11 AM 11-11:15 AM 11:15 AM -12:30 PM 12:30-1 PM 1 PM 1-2 PM 2-3 PM 3-3:15 PM 3:15-5:15 PM 5:15 PM
Garage cleaning and outreach Break at box and shift change Alleyways (Downtown North and South) Break at box and shift change University Ave Downtown South/City Hall Break Downtown North Garage cleaning and outreach Break Garage cleaning and outreach Dismissal at box
Saturday 7-8 AM 8 AM 8-9 AM 9-11:30 AM 11:30 AM -12:30 PM 12:30-12:45 PM 12:45-2 PM 2 PM
Garage cleaning and outreach Break at box Downtown South/City Hall University Ave Downtown North Break Garage cleaning and outreach Dismissal at box
Sunday 7-8 AM 8 AM 8-9 AM 9-11:30 AM 11:30 AM-12:30 PM 12:30-12:45 PM 12:45-2 PM 2 PM
Garage cleaning and outreach Break at box Downtown South/City Hall University Ave Downtown North Break Garage cleaning and outreach Dismissal at box
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City of Palo Alto General Services Agreement 15 Rev. March 29, 2018
EXHIBIT C SCHEDULE OF FEES
CONTRACTOR shall perform the tasks as described and budgeted below. 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 the Services including reimbursable expenses, does not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY.
CONTRACTOR shall provide monthly detailed invoices that identify the tasks that were completed. Examples of such requests are as the following:
•Quantify the amount of trash that is being removed weekly.
•Quantity of syringes (sharps) that are removed.
•Dates and locations that were serviced (if above schedule is altered).
•Number of individuals that are on site each week.
DESCRIPTION OF TASK NOT TO EXCEED COMPENSATION PER TASK
Task 1 $8,979.00 per month (Street Cleaning Services)
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City of Palo Alto General Services Agreement 16 Rev. March 29, 2018
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 WORKER’S COMPENSATION
YES 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 PROPERTYDAMAGE,COMBINED
$1,000,000 $1,000,000 $1,000,000
$1,000,000
$1,000,000
$1,000,000 $1,000,000 $1,000,000
$1,000,000
$1,000,000
PROFESSIONAL LIABILITY, NO 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”
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City of Palo Alto General Services Agreement 17 Rev. March 29, 2018
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 THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASONOTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALLPROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THEEFFECTIVE DATE OF CANCELLATION.
2. 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 OFCANCELLATION.
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
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City of Palo Alto (ID # 11857)
City Council Staff Report
Report Type: Action Items Meeting Date: 12/7/2020
City of Palo Alto Page 1
Summary Title: COVID Enforcement Activities
Title: Discussion and Possible Direction to Staff Regarding City Participation
in Enforcement of State and County Health Orders and Seasonal Events
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that Council discuss and provide direction if applicable to staff
regarding the City’s participation in enforcement of State and County Health Orders and
seasonal events.
Discussion
On Thursday, December 3, 2020, Governor Newsom announced a Regional Stay At
Home Order to respond to the unprecedented spread of COVID-19. On Friday,
December 4, the Santa Clara County Health Officer and several other Bay Area Health
Officers announced accelerated implementation of the Regional Stay At Home Order.
In Santa Clara County, this implementation takes effect on Sunday December 6.
The County of Santa Clara has requested City assistance in implementation of these and
related orders. To date, the City of Palo Alto has participated extensively in outreach
and education regarding the orders, but not directly enforced health orders other than
to refer cases to the District Attorney for enforcement. However, given the seriousness
of current community spread of COVID-19, the County is requesting all cities dedicate
resources to enforcement as well as education. City of Palo Alto enforcement would
likely involve City staff issuing administrative citations for violation of the health orders,
potentially ranging from nonpermitted business activities to members of the public
failing to wear face coverings.
Staff will provide a verbal report on this issue. Staff will also report on any other
pending requests for City participation in seasonal activities such as holiday events. This
will provide an opportunity for the City Council and members of the public to provide
input regarding our participation.
City of Palo Alto (ID # 11677)
City Council Staff Report
Report Type: Informational Report Meeting Date: 12/7/2020
City of Palo Alto Page 1
Council Priority: Climate/Sustainability and Climate Action Plan
Summary Title: Informational Report on 2019 Renewable and Carbon Neutral
Electricity Supplies
Title: Annual Review of the City’s Renewable Procurement Plan, Renewable
Portfolio Standard Compliance, and Carbon Neutral Electric Supplies for 2019
From: City Manager
Lead Department: Utilities
Executive Summary
Like all electric utilities in California, Palo Alto is subject to the state’s Renewable Portfolio
Standard (RPS) mandate of 60% by 2030. The City has also adopted a Carbon Neutral Plan,
which led to the achievement of a carbon neutral electric supply portfolio starting in 2013 (and
which was updated by Council in August 2020). In 2011, in compliance with state RPS
regulations, the Council also formally adopted an RPS Procurement Plan and an RPS
Enforcement Program that recognize certain elements of the state’s RPS law applicable to
publicly owned utilities. The RPS Enforcement Program requires the City Manager, or their
designee, the Utilities Director, to conduct an annual review of the Electric Utility’s compliance
with the procurement targets set forth in the City’s RPS Procurement Plan.
This staff report satisfies the reporting requirements of the City’s RPS Enforcement Program,
while also providing an update on the City’s compliance with the Carbon Neutral Plan. The City
continues to meet both its RPS and carbon neutrality objectives—even after selling over
200,000 MWh of renewable energy in 2019.
Background
The City currently has two independent procurement targets related to renewable and carbon
neutral electricity:
• RPS Procurement Plan (60% by 2030): The City’s official renewable electricity goal is
contained in the RPS Procurement Plan that the City was required to adopt under
Section 399.30(a) of California’s Public Utilities Code. This was adopted in December
2011 (Staff Report 2225, Resolutions 9214 and 9215) and updated in November 2013
City of Palo Alto Page 2
(Staff Report 4168, Resolution 9381) and December 2018 (Staff Report 9761, Resolution
9802)—and is slated to be updated again in December 2020 (Staff Report 11650) . The
pending update to the RPS Procurement Plan is designed to bring it into alignment with
the state’s 60% RPS law (SB 100), which was signed into law in 2018.1 The RPS
Procurement Plan and RPS Enforcement Program complement each other: the
Procurement Plan establishes official procurement targets, while the Enforcement
Program specifies the reporting and monitoring that is required of the Utilities Director
while working to achieve those targets.
The procurement requirement in the version of the City’s RPS Procurement Plan being
considered by Council in December is that the City acquire renewable electricity supplies
equal to 60% of retail sales by 2030, which is in line with the state’s current RPS
mandate2. The RPS Procurement Plan also contains interim targets for six separate
periods (2011-2013, 2014-2016, 2017-2020, 2021-2024, 2025-2027, and 2028-2030).
• Carbon Neutral Plan (100% Carbon Neutral Electricity by 2013): The Carbon Neutral Plan
was adopted in March 2013 (Staff Report 3550, Resolution 9322) and updated in August
2020 (Staff Report 11556, Resolution 9913), and requires that the City procure a carbon
neutral electric supply portfolio starting in calendar year (CY) 2013. In general, this goal
is expected to be achieved primarily through purchases made under the City’s long-term
renewable power purchase agreements (PPAs) and output from its hydroelectric
resources. However, when the City Council approved an update to the Carbon Neutral
Plan in August 2020, they also approved a new procurement strategy whereby the City
does not keep all of the output of its long-term, in-state PPAs, but instead exchanges
that output for less expensive out-of-state renewable generation.
Discussion
The City continues to meet its objectives under the RPS Procurement Plan and the Carbon
Neutral Plan and achieved an RPS level of 37% in 2019—exceeding the state’s 31%
procurement mandate for the year. Below is a summary of CPAU’s progress toward satisfying
its renewable energy and carbon neutral procurement targets, with additional detail provided
in Attachment A.
RPS Procurement Plan Compliance
In CY 2019, the City initially received 535,145 MWh of renewable energy through its long-term
contracts for wind, solar, landfill gas, and small hydro resources (which represents 62.1% of the
City’s total retail sales for that period). Additionally, the City received 665,359 MWh of large
1 Although SB 100 became law in 2018, the California Energy Commission (CEC) has yet to formally adopt
regulations implementing the new law. The pending update to the City’s RPS Procurement Plan is based on the
current RPS regulations, which CEC adopted on Oct. 14, 2015 with an effective date of April 12, 2016; however, it is
possible that the City will need to update its RPS Procurement Plan again in 2021 if the adopted RPS regulations
differ significantly from the draft version of the regulations.
2 CA Public Utilities Code Sec. 330.3(c)(2).
City of Palo Alto Page 3
hydroelectric generation (representing 77.2% of the City’s total retail sales), which is not
classified as eligible renewable generation by the state. Because of the favorable hydro
conditions for the year the City had a large surplus of carbon neutral generation overall, and,
based on feedback from the Utilities Advisory Commission, staff decided to sell the majority of
this surplus from the renewable energy supplies (because this generation is more valuable to
other utilities than the large hydro generation). Ultimately the City sold 216,110 MWh of
renewable energy supplies, yielding $3.34 million in sales revenue. Accounting for these sales,
the City’s net renewable energy supplies totaled 319,035 MWh, which represents 37.0% of the
City’s total retail sales for 2019.
For CY 2020, staff has currently contracted to sell about 324,000 MWh of renewable
generation, and projects that the City’s remaining renewable electricity supplies from in-state
resources will equal 26.0% of retail sales. However, after accounting for the purchase of out-of-
state renewable supplies, the City’s total renewable electricity supplies are projected to equal
55.4% of retail sales.
In accordance with the state’s RPS Program requirements, CPAU’s Procurement Plan develops a
renewable electric supply portfolio that balances environmental goals with system reliability
while maintaining stable and low retail electric rates. The state RPS program requires retail
electricity suppliers like CPAU to procure progressively larger renewable electricity supplies
across a series of separate multi-year Compliance Periods. CPAU’s procurement targets, as well
as its actual/projected procurement volumes and RPS levels, for the first three Compliance
Periods are summarized in Table 1 below. For these three compliance periods, the City has
increasingly purchased more renewable electricity supplies than the respective procurement
targets.
Table 1: RPS Compliance Period Procurement Targets and Actual/Projected Procurement
RPS
Compliance
Period
Years
Retail
Sales
(MWh)
Procurement
Target
(MWh)
Actual/Projected
Procurement*
(MWh)
Target % of
Retail Sales
Actual/Projected
% of Retail
Sales
1 2011-2013 2,837,773 567,555 607,740 20% 21.4%
2 2014-2016 2,801,056 605,949 826,855 21.7% 29.5%
3 2017-2020 3,458,925 1,033,933 1,667,716 30% 48.2%
TOTALS 9,097,754 2,207,437 3,102,311 34.1%
*Procurement totals for Compliance Periods 1 and 2 are actuals; procurement totals for Compliance
Period 3 are a combination of actual data (for 2017-2019) and projected data (for 2020), and account for
executed sales of 324,000 MWh of renewable supplies for 2020.
Carbon Neutral Plan
In CY 2019, CPAU achieved its goal, set forth in the Carbon Neutral Plan, of an electric supply
portfolio with zero net greenhouse (GHG) emissions for the sixth consecutive year, without the
need to purchase unbundled renewable energy certificates (RECs) in the market. Carbon
neutrality was achieved in CY 2019 through existing hydro and renewable generation (wind,
solar, and landfill gas). Due to favorable hydro conditions, the City had a large surplus of energy,
City of Palo Alto Page 4
allowing for the sale of 216,000 MWh of renewable energy while still maintaining a carbon
neutral supply portfolio (when evaluated using an annual carbon accounting framework).
When the City Council approved an update to the Carbon Neutral Plan in August 2020, the
primary change was to adopt an hourly carbon accounting methodology as the basis for
determining whether the City has met its carbon neutrality objective. Although this change did
not apply to the City’s electric supply portfolio for CY 2019, it is interesting to note how the
City’s supply portfolio would have fared under this accounting framework. Under the annual
accounting approach, the City had an overall surplus of 85,569 MWh of carbon neutral
generation compared to its load (equal to 9.4% total load), and thus substantially exceeded the
carbon neutrality standard. However, under the hourly carbon accounting approach,3 the City’s
electric supply portfolio is found to be responsible for a net positive amount of GHG emissions
for CY 2019: 8,085 metric tonnes of CO2 equivalent.
For CY 2020, slightly below average hydro conditions are expected to result in about 46% of the
City’s electric supply needs being supplied by hydroelectric resources, with the remainder
coming from non-hydro renewable energy resources (including purchases of out-of-state
unbundled RECs).
Policy Implications
This report implements Sections 4 and 5 of the City’s RPS Enforcement Program, which require
an annual review of the Electric Utility’s compliance with the CPAU RPS Procurement Plan to
ensure that CPAU is making reasonable progress toward meeting the compliance obligations
established in the CPAU RPS Procurement Plan.
Environmental Review
The Council’s review of this report does not meet the definition of a “project” pursuant to
Public Resources Code Section 21065, thus California Environmental Quality Act review is not
required.
Attachments:
• Attachment A: Renewable and Carbon Neutral Electricity Supply Procurement Details
3 The City’s hourly carbon accounting methodology entails calculating the City’s net surplus or deficit carbon
neutral supply position relative to its load in every hour of the year. The grid average electricity emissions intensity
for each hour is then applied to each of these hourly surpluses or deficits to yield a net emissions contribution (or
reduction) that the City’s electric supply portfolio is responsible for in that hour. These hourly emissions totals are
then summed across the entire year to yield the City’s annual emissions total for the year.
Renewable and Carbon Neutral Electricity Supply Procurement Details
Renewable Energy Goals
In CY 2019, the City initially received 535,145 MWh of renewable energy through its long-term
contracts for wind, solar, landfill gas, and small hydro resources (which represents 62.1% of the
City’s total retail sales for that period). After accounting for the sale of 216,110 MWh of this
generation, the City’s net renewable energy supplies totaled 319,035 MWh, which represents
37.0% of the City’s total retail sales for 2019.
For CY 2020, staff has currently contracted to sell about 324,000 MWh of renewable generation,
and projects that City’s remaining renewable electricity supplies from in-state resources will
equal 26.0% of retail sales. However, after accounting for the purchase of out-of-state renewable
supplies, the City’s total renewable electricity supplies are projected to equal 55.4% of retail
sales.
Table 1 shows the renewable resources currently under contract, the status of the projects,
their annual output in Gigawatt-hours (GWh), and the rate impact of each resource that was
calculated at the time it was added to the electric supply portfolio.
Table 1: Summary of Contracted Renewable Electricity Resources
Resource Delivery
Begins
Delivery
Ends
Annual Generation
(GWh)
Rate Impact
(¢/kWh)
Small Hydro Before 2000 N/A 10.0 0
High Winds Dec. 2004 Jun. 2028 42.7 0.012
Shiloh I Wind Jun. 2006 Dec. 2021 57.3 (0.041)
Santa Cruz Landfill Gas (LFG) Feb. 2006 Feb. 2026 9.0 0.003
Ox Mountain LFG Apr. 2009 Mar. 2029 42.5 (0.040)
Keller Canyon LFG Aug. 2009 Jul. 2029 13.8 (0.020)
Johnson Canyon LFG May 2013 May 2033 10.4 0.064
San Joaquin LFG Apr. 2014 Apr. 2034 27.5 0.127
Kettleman Solar Aug. 2015 Aug. 2040 53.5 0.099
Hayworth Solar Dec. 2015 Dec. 2042 63.7 0.026
Frontier Solar Jul. 2016 Jul. 2046 52.5 0.011
Elevation Solar C Dec. 2016 Dec. 2041 100.8 (0.044)
W. Antelope Blue Sky Ranch B Dec. 2016 Dec. 2041 50.4 (0.002)
CLEAN Program Projects Varies Varies 5.0 0.027
Total Operating Resources 539.0 0.223
Golden Fields Solar III Jan. 2023 Dec. 2047 75.0 (0.056)
Total Non-Operating Resources 75.0 (0.056)
Total Committed Resources 614.0 0.168
ATTACHMENT A
RPS Procurement Plan Compliance
Annually, the Utilities Director reviews CPAU’s RPS Procurement Plan to determine compliance
with the state’s RPS Program. Under the state RPS Program, the California Energy Commission
(CEC) developed portfolio balancing requirements, which dictate what percentage of renewable
procurement must come from resources interconnected to a California Balancing Area (as
opposed to an out-of-state transmission grid balancing area). These requirements also determine
the eligibility criteria for renewable resource products as determined by their eligible Portfolio
Content Categories1, found in the CEC Enforcement Procedure RPS (CA Code of Regulations, Title
20, Section 3203). The CEC Enforcement Procedures apply to publicly owned utilities (POUs), such
as CPAU.
In accordance with the state’s RPS Program requirements, CPAU’s Procurement Plan develops a
renewable electric supply portfolio that balances environmental goals with system reliability
while maintaining stable and low retail electric rates. The state RPS program requires retail
electricity suppliers like CPAU to procure progressively larger renewable electricity supplies
across three separate Compliance Periods, as outlined below.
1. Compliance Period 1 (2011 – 2013)
For Compliance Period 1 (2011-2013) retail electricity providers were required to procure
renewable electricity supplies equaling 20% of total retail sales, which CPAU did. In this period,
CPAU supplied 21.4% of the City’s retail electricity sales volumes from renewable energy sources.
The procurement results for Compliance Period 1 are displayed in Table 2 below:
Table 2: Compliance Period 1 RPS Procurement Details
Year Retail Sales
(MWh)
Procurement
Target (MWh)*
Actual Procurement
(MWh)
% of Retail
Sales
2011 949,517 189,903 207,974 21.9%
2012 935,021 187,004 200,621 21.5%
2013 953,235 190,647 199,145 20.9%
TOTAL 2,837,773 567,555 607,740 21.4%
* Annual procurement targets are “soft” targets. The RPS Procurement Plan requires that the
target be met for the compliance period as a whole, not in each year of the compliance period.
All of the renewable energy procured in Compliance Period 1 came from resources whose
contracts were executed before June 1, 2010. The RPS Procurement Plan considers these
contracts “grandfathered,” and since all of the renewable energy procurement for Compliance
Period 1 was from these types of contracts, there was no need to meet the Portfolio Balancing
Requirements included in Section B.4 of the RPS Procurement Plan.
1 RPS Portfolio Content Categories are defined as follows: Category 1 is energy and RECs delivered to a California
Balancing Authority (CBA) without substituting electricity from another source, Category 2 is energy and RECs that
cannot be delivered to a CBA without substituting electricity from another source, and Category 3 is unbundled RECs.
2. Compliance Period 2 (2014 – 2016)
In Compliance Period 2, renewable procurement must equal or exceed the sum of the three
annual RPS procurement targets described by the following equations:
2014 RPS Target = 20% × (Retail Sales in 2014)
2015 RPS Target = 20% × (Retail Sales in 2015)
2016 RPS Target = 25% × (Retail Sales in 2016)
As shown in Table 3 below, CPAU easily exceeded this mandated procurement level as well.
Renewable electricity procurement equaled 29.5% of retail sales for Compliance Period 2 overall.
Table 3: Compliance Period 2 RPS Procurement Details
Year Retail Sales
(MWh)
Procurement
Target (MWh)*
Actual Procurement
(MWh)
% of Retail
Sales
2014 953,386 190,677 210,250 22.1%
2015 932,922 186,584 241,262 25.9%
2016 914,748 228,687 375,343 41.0%
TOTAL 2,801,056 605,949 826,855 29.5%
* Annual procurement targets are “soft” targets. The RPS Procurement Plan requires that the
target be met for the compliance period as a whole, not in each year of the compliance period.
Also in Compliance Period 2, the RPS Portfolio Balancing Requirements applied to the
procurement levels described above. The specific requirements are: (1) CPAU must procure at
least 65% of its renewable supplies from Portfolio Content Category 1, and (2) no more than 15%
from Portfolio Content Category 3 (unbundled RECs). CPAU easily met the Compliance Period 2
overall procurement requirement and the RPS Portfolio Balancing Requirement, as five new solar
projects came online in 2015 and 2016, and all of these projects are considered Portfolio Content
Category 1 resources.
3. Compliance Period 3 (2017 – 2020)
For Compliance Period 3, CPAU is subject to “soft” targets to supply at least 27% of its retail sales
volume from renewable resources in 2017, with that level increasing by 2% each year until
reaching 33% in 2020, as described by the following four equations:
2017 RPS Target = 27% × (Retail Sales in 2017)
2018 RPS Target = 29% × (Retail Sales in 2018)
2019 RPS Target = 31% × (Retail Sales in 2019)
2020 RPS Target = 33% × (Retail Sales in 2020)
The overall Compliance Period 3 target is equal to the sum of these four annual soft targets. CPAU
is expected to easily comply with the Compliance Period 3 overall procurement requirement, as
well as the Portfolio Balancing Requirement that at least 75% of the renewable electricity
supplies come from Portfolio Content Category 1 and no more than 10% come from Portfolio
Content Category 3. Staff projects that renewable electricity supplies will satisfy nearly 50% of
retail sales for Compliance Period 3, even after accounting for the 540,000 MWh of RPS supplies
sold in 2019 and 2020, and that all of these supplies will come from either Portfolio Content
Category 1 or “grandfathered” resources.
Table 4: Compliance Period 3 RPS Procurement Details
Year Retail Sales
(MWh)
Procurement
Target (MWh)*
Actual/Projected
Procurement (MWh)
% of Retail
Sales
2017 884,422 238,794 554,206 62.7%
2018 888,033 257,530 574,475 64.7%
2019 861,561 267,084 319,035 37.0%
2020** 797,589 263,204 220,000 27.6%
Total 3,431,605 1,026,612 1,667,716 48.6%
* Annual procurement targets are “soft” targets. The RPS Procurement Plan requires that the
target be met for the compliance period as a whole, not in each year of the compliance period.
** Projected annual 2020 data: reflects executed sales of 324,000 MWh.
Finally, as required by the CEC RPS Enforcement Procedures and Section D of the City’s
Procurement Plan, staff reported all of the above information to the California Energy
Commission in August 2020.
Carbon Neutral Plan
In CY 2019, CPAU achieved its goal, set forth in the Carbon Neutral Plan, of an electric supply
portfolio with zero net greenhouse (GHG) emissions for the sixth consecutive year, without the
need to purchase unbundled renewable energy certificates (RECs) in the market. Carbon
neutrality was achieved in CY 2019 through existing hydro and renewable generation (wind, solar,
and landfill gas). Due to favorable hydro conditions, the City had a large surplus of energy,
allowing for the sale of 216,000 MWh of renewable energy while still maintaining a carbon
neutral supply portfolio (when evaluated using an annual carbon accounting framework).
When the City Council approved an update to the Carbon Neutral Plan in August 2020, the
primary change was to adopt an hourly carbon accounting methodology as the basis for
determining whether the City has met its carbon neutrality objective. Although this change did
not apply to the City’s electric supply portfolio for CY 2020, it is interesting to note how the City’s
supply portfolio would have fared under this accounting framework. Under the annual
accounting approach, the City had an overall surplus of 85,569 MWh of carbon neutral generation
compared to its load (equal to 9.4% total load), and thus substantially exceeded the carbon
neutrality standard. However, under the hourly carbon accounting approach, the City’s electric
supply portfolio is found to be responsible for a net positive amount of GHG emissions: 8,085
metric tonnes of CO2 equivalent.
Figure 1 below illustrates the City’s average monthly gross load (total electric consumption as
measured at Citygate) and net load (Citygate load less generation from carbon neutral supply
resources) for 2019.
Figure 1: CPAU Monthly Average Gross & Net Load for 2019
Figure 2 below depicts the average monthly emissions intensities for the California Independent
System Operator (CAISO) grid, as well as the City’s average monthly net electric emissions totals
for 2019. The emissions totals are the result of applying the hourly average CAISO emissions
intensity values to the City’s hourly net load (the monthly average of which is depicted in Figure
1 above).
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For CY 2020, slightly below average hydro conditions are expected to result in about 46% of the
City’s electric supply needs being supplied by hydroelectric resources, with the remainder coming
from non-hydro renewable energy resources (including purchases of out-of-state unbundled
RECs).
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City of Palo Alto (ID # 11701)
City Council Staff Report
Report Type: Informational Report Meeting Date: 12/7/2020
City of Palo Alto Page 1
Summary Title: CAPER for CDBG Program for FY 2019-20
Title: Consolidated Annual Performance and Evaluation Report (CAPER) for
the Community Development Block Grant (CDBG) Program for Fiscal Year
2019-20
From: City Manager
Lead Department: Planning and Development Services
This is an informational report and no Council action is required.
Background
The U.S. Department of Housing and Urban Development (HUD) requires the city to submit a
Consolidated Annual Performance and Evaluation Report (CAPER) to obtain Federal Community
Development Block Grant (CDBG) funds. The City will submit Attachment A to HUD by
December 27, 2020. This report is intended to provide Council with a year-end update of the
CDBG program.
Discussion
This CAPER represents the fifth year of the City’s 2015-2020 Five-Year Consolidated Plan and
summarizes the accomplishments under the CDBG program from July 1, 2019 to June 30, 2020.
As required, the CAPER consists of specific program narratives, an assessment of annual
performance, and an assessment of progress toward meeting the Consolidated Plan goals and
objectives.
This CAPER summary report is intended to inform the public on how the CDBG funds
administered by the City during the 2019-20 Fiscal Year have been expended and describes how
the activities funded through the grant have been carried out. The amount funded to specific
activities is reported the year they are funded. However, due to the nature of certain projects,
it is common for projects to overlap program years and accomplishments are reported when
the project has been completed and, in some cases, when the housing units become occupied.
City of Palo Alto Page 2
Summary of Accomplishments
CDBG funds supported public services and economic development activities. Palo Alto has five
primary CDBG program activity areas in which to allocate funds: (1) Public Services, (2) Planning
and Administration, (3) Economic Development, (4) Housing Rehabilitation, and (5) Public
Facilities. The City allocated funds in accordance with the goals and objectives set forth in the
2015-2020 Consolidated Plan. The major accomplishments include the following:
• Downtown Streets Team connected 25 employers with 30 individuals who were
meaningfully employed; 75% of individuals remained employed for three months or
longer.
• Project Sentinel assisted 16 individuals in investigating their fair housing complaints, 12
residents received individual consultation relating to specific fair housing questions, and
139 individuals were assisted through outreach and presentations.
• LifeMoves, at the Opportunity Services Center, addressed the basic human service
needs of 326 homeless or very-low income persons. Additionally, 26 residents received
intensive case management services.
• Catholic Charities, through the Long-Term Care Ombudsman Program, assisted 317
mostly low- or moderate- income elderly residents at the three Palo Alto long-term
facilities that mainly serve low-income residents: Lytton Gardens Skilled Nursing, Palo
Alto Nursing Center, and Lytton Gardens Community Care (Assisted Living). Additionally,
the Long-Term Care Ombudsman Program resolved 82 complaints made by, or on behalf
of, low-income elderly residents of the above-mentioned facilities.
• Alta Housing, formerly known as Palo Alto Housing Corporation, provided one-on-one
counseling, case management, and educational activities at Alma Place and Barker Hotel
to 140 persons through the Single-Room Occupancy (SRO) Resident Support Program.
• The YWCA Support Network Program provided 20 clients with counseling, therapy,
and/or legal advocacy services. Crisis Counselors provided crisis line assistance to 40
callers from Palo Alto.
• Silicon Valley Independent Living Center (SVILC) assisted 20 adults with disabilities in
developing an independent living plan for housing that resulted in improved accessibility
to decent affordable housing. In addition, SVILC provided 83 low-income disabled
residents with training and education to find and secure affordable housing, or housing-
related support.
City of Palo Alto Page 3
• Ravenswood Family Health Network (formerly MayView Community Health Center)
completed its improvement project. Through CDBG funding, the overall safety,
cleanliness, and aesthetics of the clinic were enhanced. This clinic served 1,892 Palo Alto
residents with medical care in fiscal year 2019-20.
The CAPER, Attachment A, provides a detailed description of the various programs and project
accomplishments within the fiscal year.
Human Relations Committee Review
At its regularly scheduled meeting on November 12, 2020, staff provided the HRC an
informational update on the Draft CAPER. The HRC staff report and video link to the meeting
is available on the HRC’s website:
https://www.cityofpaloalto.org/civicax/filebank/documents/79119.
Resource Impact
The total investment of CDBG funds in Palo Alto approved for Fiscal Year 2019-20 was
$724,578. Of this amount, $90,663 was directed to public service activities, $361,473 for
Economic Development, $145,259 for public facilities rehabilitation, $37,940 for Fair Housing
Services, and $89,243 was allocated for administration activities.
Next Steps
Staff will submit the final CAPER to HUD by December 27, 2020, meeting the required deadline
for submittal.
Environmental Review
For purposes of the National Environmental Policy Act (NEPA) and the California Environmental
Quality Act (CEQA), this action itself is not a project; therefore, no environmental impact
assessment is necessary. Prior to commitment or release of funds for each of the proposed
projects, staff will carry out the required environmental reviews or assessments and certify that
the review procedures under CEQA, HUD, and NEPA regulations have been satisfied for each
project.
Attachments:
Attachment A: FY2019-20 Consolidated Annual Performance and Evaluation Report (CAPER)
(PDF)
FY 2019-20CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER)
JULY 1, 2019 THROUGH JUNE 30, 2020
PUBLIC COMMENT PERIODOCTOBER 27, 2020 –NOVEMBER 11, 2020
ADMINISTERED BY: PLANNING AND DEVELOPMENT SERVICES
|
Table of Contents
CR-05 - Goals and Outcomes .............................................................................................................. 1
CR-10 - Racial and Ethnic composition of families assisted. .................................................................. 4
CR-15 - Resources and Investments 91.520(a) ..................................................................................... 5
CR-20 - Affordable Housing 91.520(b) ................................................................................................ 7
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ................................ 9
CR-30 - Public Housing 91.220(h); 91.320(j) ....................................................................................... 12
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) ................................................................................ 13
CR-40 - Monitoring 91.220 and 91.230 .............................................................................................. 17
CR-45 - CDBG 91.520(c) .................................................................................................................... 18
Table of Figures
Table 1 – Accomplishments – Program Year &Strategic Plan to Date ......................................................... 1
Table 2 – Table of assistance to racial and ethnic populations by source of funds ........................................ 4
Table 3 – Resources Made Available .............................................................................................................. 5
Table 4 – Identify the geographic distribution and location of investments .................................................. 5
Table 5 – Number of Households .................................................................................................................... 7
Table 6 – Number of Households Supported. ................................................................................................. 7
Table 7 – Number of Persons Served ............................................................................................................... 8
Table 8 – Adjustments/Improvements to Affordable Housing Strategies .................................................... 13
CAPER 1
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a)
Below is a description of the progress the City of Palo Alto has made in achieving the goals outlined in its strategic plan and annual action. In fiscal
year 2019-20, the City achieved most of its annual goals and met the five (5) year goals outlined in the Consolidated Plan.
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain,
if applicable, why progress was not made toward meeting goals and objectives. 91.520(g)
Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual
outcomes/outputs, and percentage completed for each of the grantee’s program year goals.
Goal Category Source /
Amount
Indicator Unit of
Measure
Expected
–
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected
–
Program
Year
Actual –
Program
Year
Percent
Complete
Affordable
Housing
Affordable
Housing
CDBG:
$891,193
Rental units
rehabilitated
Household
Housing
Unit
300 244 81.33%
Affordable
Housing
Affordable
Housing
CDBG:
$259,967
Homeowner Housing
Rehabilitated
Household
Housing
Unit
0 5
Economic
Development
Non-Housing
Community
Development
CDBG:
$1,615,719
Jobs
created/retained Jobs 125 130 104.00% 30 30 100.00%
Fair Housing
Non-Housing
Community
Development
CDBG:
$128,667
Public service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 100 68 68.00%
CAPER 2
OMB Control No: 2506-0117 (exp. 06/30/2018)
Fair Housing
Non-Housing
Community
Development
CDBG:
$37940 Other Other 0 0 15 16 106.67%
Homelessness Homeless CDBG:
$63,663
Public service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 0 166 167 166 99.40%
Homelessness Homeless CDBG:
$322,119
Public service
activities for
Low/Moderate
Income Housing
Benefit
Households
Assisted 2500 2143 85.72% 0 0
Strengthen
Neighborhoods
Non-Homeless
Special Needs
Non-Housing
Community
Development
CDBG:
$145,259
Public Facility or
Infrastructure
Activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 500 1892 378.40% 350 1892 540.57%
Strengthen
Neighborhoods
Non-Homeless
Special Needs
Non-Housing
Community
Development
CDBG:
$113,955
Public service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 2500 2494 99.76% 299 357 119.40%
Table 1 - Accomplishments – Program Year and Strategic Plan to Date
CAPER 3
OMB Control No: 2506-0117 (exp. 06/30/2018)
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan,
giving special attention to the highest priority activities identified.
The City of Palo Alto was able to achieve all of its goals outlined in the 2019 Action Plan and 2015-2020 Consolidated Plan. In total, the City’s CDBG
program assisted 2461 persons in this fiscal year, far exceeding the goal of 861. Of these persons, 742 were extremely low-income, 826 were low
income and 893 were persons with incomes above 80% of AMI.
During the 2019-2020 program year, the City’s CDBG subrecipients continued to provided vital services to extremely low-, very low-, low- and
moderate-income households while addressing the priorities and needs of the community as explained in the City’s 2015-2020 Consolidated Plan.
The majority of the CDBG funded programs/activities meet their annual goals despite the COVID-19 pandemic and the County of Santa Clara’s
shelter in place order which has been in effect (and currently remains in effect) since March 16, 2020.
With its CDBG funds, the City was able to fund the rehabilitation of a local community health center. Additionally, with CDBG funds, 30 individuals
were able to secure meaningful and often times essential employment. Three hundred and seventeen (317) elderly seniors residents were
contacted by Ombudsmen through regular visitation and phone outreach at the three Palo Alto long-term facilities that mainly serve low income
residents: Lytton Gardens Skilled Nursing, Palo Alto Nursing Center, and Lytton Gardens Community Care (Assisted Living) and 46 low income
households were provided case management services to secure employment and/or affordable housing. The City funded Project Sentinel, provided
fair housing and tenant/landlord mediation services to 16 Palo Alto residents , through its CDBG funds. The City also funded YWCA Silicon Valley
through the CDBG funds. The YWCA Silicon Valley program provides counseling, therapy and legal services to lower income Palo Alto residents
and their children who are victims of domestic violence. Additionally, through the CDBG funds, the City funded Palo Alto Housing Corp (SRO
Resident Support Program.)
CAPER 4
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-10 - Racial and Ethnic composition of families assisted
Describe the families assisted (including the racial and ethnic status of families assisted).
91.520(a)
CDBG
White 1,517
Black or African American 62
Asian 319
American Indian or American Native 3
Native Hawaiian or Other Pacific Islander 122
American Indian/Alaskan Native and Black 1
American Indian/Alaskan Native and White 3
Black or African American/White 25
Asian and White 49
Others 360
Total 2,461
Hispanic 1,054
Not Hispanic 1,407
Table 2 – Assistance to racial and ethnic populations by source of funds
Narrative
Table 2 generated in IDIS includes five racial categories and does not reflect all of the racial categories
served by the City's CDBG funded agencies. The modified Table 2 (shown above) includes the correct racial
categories for individuals served in FY 2019-20.
In total, the City’s CDBG program served 2461 individuals. Of those individuals, approximately 62% were
White; 3% were African American; 13% were Asian; 5% were Native Hawaiian or Other Pacific Islander;
2% were Asian and White; 1% were were either American Indian/American Native, American
Indian/Alaskan Native and Black, American Indian/Alaskan Native and White, Black or African
American/White; 15% were Other. Approximately, 43% were Hispanic.
CAPER 5
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG public - federal 724,578
Table 2 - Resources Made Available
Narrative
Due to the COVID-19 pandemic and the County of Santa Clara’s Shelter in Place Order, three of the City’s
subrecipients, Catholic Charities, YWCA Silicon Valley and Downtown Streets Team, were unable to utilize
all of their grant funds.. The remaining unused funds from the three grants total $ 47,660.96. These funds
will be added to the City’s unused funds from previous years and will be allocated as part of the 2021-22
Notice of Availability of Funding in late fall/early winter.
Identify the geographic distribution and location of investments
Target Area Planned Percentage of
Allocation
Actual Percentage of
Allocation
Narrative Description
Table 3 – Identify the geographic distribution and location of investments
Narrative
The City considers the provisions of all types of housing assistance on a citywide basis consistent with the
policies of the Comprehensive Plan. Palo Alto does not have specific target areas for housing activities;
instead the City attempts to provide housing affordable to lower-income persons throughout the City.
Minority concentration includes areas in the City where the concentration of racial and ethnic minority
population is 10% or higher than their total citywide representation. There are only a few areas that are
considered to have a concentration of minority populations or low-income residents in Palo Alto. The
CDBG Program defines low-income concentration as any census block group where 51% or more residents
earn 80% of Median Family Income (MFI) or less. An exception exists for a jurisdiction that does not have
any areas meeting this definition, such as Palo Alto, which includes the highest quartile of all areas in the
City in terms of degree of concentration, is used. However, Palo Alto does not qualiFY activities under the
low- and moderate- income (LMI) area benefit category.
CAPER 6
OMB Control No: 2506-0117 (exp. 06/30/2018)
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.
Palo Alto leverages federal and private housing funds to the greatest extent feasible consistent with the
goals identified in the 2015-2020 Consolidated Plan. Moreover, the City continues to encourage non-profit
organizations to seek other local, state, and federal funding for both housing and non-housing community
development activities.
HUMAN SERVICES RESOURCE ALLOCATION PROCESS (HSRAP): The City of Palo Alto provided $1,559,277
General Funds during fiscal year 2019-2020 to address primary human service needs in the community.
These funds include multi-year agreements allocated by HSRAP and administered by the Office of Human
Services in the Community Services Department. Funded projects addressed the Human Relations
Commission’s priority needs in the following categories: early child care and education, youth programs,
senior nutrition and social services, homelessness, and basic needs such as health care and mental health.
HOUSING IN-LIEU: The City of Palo Alto maintains a local housing fund consisting of two subfunds: the
“Commercial Housing Fund” and the “Residential Housing Fund.” Palo Alto, under Chapter 16.65 of the
Municipal Code, requires commercial and industrial development projects to pay a housing mitigation fee.
The fees are deposited in the “Commercial Housing Fund”, and the accumulated fees and interest earned
on the fund are made available for the creation of new low and moderate-income housing units under
the “Affordable Housing Fund Guidelines” adopted by the City Council. As of June 30, 2020, the
Commercial Housing Fund had a preliminary available balance of approximately $216,000.
Pursuant to Program H-3.1.2, the Below Market Rate Program of the City’s Housing Element, Palo Alto
collects housing in-lieu fees from residential development when it is infeasible to provide below market
rate units on-site. The accumulated fees and interest earned on the fund and other miscellaneous
revenues related to housing, are placed in a special fund; “The Residential Housing Fund”. This fund is
used to provide funding for acquisition or rehabilitation of low and moderate-income housing, but may
also be used for assistance to new housing construction projects. As of June 30, 2020, the Residential
Housing fund had a preliminary available balance of approximately $260,000.
These are the only local sources of funding and subsidies available for affordable housing within the City.
They are used to provide matching funds, pay for expenses which exceed HUD income and cost limits, to
fund the cost of features and amenities classified as ineligible under federal housing programs, pre
development expenses, feasibility studies, site acquisition, and other similar purposes.
CAPER 7
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.
One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 0 0
Number of Non-Homeless households to be
provided affordable housing units 0 0
Number of Special-Needs households to be
provided affordable housing units 0 0
Total 0 0
Table 5 – Number of Households
One-Year Goal Actual
Number of households supported through
Rental Assistance 0 0
Number of households supported through
The Production of New Units 0 0
Number of households supported through
Rehab of Existing Units 0 0
Number of households supported through
Acquisition of Existing Units 0 0
Total 0 0
Table 4 – Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting these goals.
In FY 2019-20, Ravenswood Family Health Network (former: MayView Community Health Center) exceed
its annual goal of providing medical care to 350 low income Palo Alto residents. Ravenswood provided
1892 Palo Alto residents with medical care in fiscal year 2019-20.
In FY 2019-20, LifeMoves planned to provide 36 unduplicated homeless and/or very low income
individuals case management services at the Opportunity Services Center to secure housing and/or job.
However, assistance was provided to 26 unduplicated Palo Alto residents with intensive case
management, as indicated by a case plan and case notes; lower number of clients provided with intensive
case management in second half of FY20 attributable to reduction in direct person-to-person case
management services due to COVID-19 concerns, clients and staff prioritizing distribution of emergency
financial assistance following implementation of Shelterin- Place orders; and fewer clients reporting Palo
Alto address as last place of residence due to extremely high cost of housing.
CAPER 8
OMB Control No: 2506-0117 (exp. 06/30/2018)
Silicon Valley Independent Living Center is another agency that encountered problems in meeting their
annual goal. During the fiscal year, SVILC provided housing assistance or housing-related support to a total
of 20 unduplicated low-income Palo Alto residents with disabilities, falling just short of the fiscal year goal
of 24, due to the challenges of COVID-19 and county-wide sheltering in place during the last quarter.
Finally, although Downtown Streets Team (DTST) were able to assist 30 individuals with employment,
DTST was not able to achieve its goal of assisting 32 indivudals due to the outbreak of COVID-19 and Santa
Clara County’s Shelter in Place Order. The agency experienced challenges connecting those they work with
to employment.
Discuss how these outcomes will impact future annual action plans.
This is the City’s last year reporting on the goals outlined in the 2015-2020 Consolidated Plan. The agencies
that encountered problems in meeting their annual goals, in previous years have exceeds their annual
goal therefore the City do not see any negative impact of these outcomes on future annual action plans.
Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.
Number of Households Served CDBG Actual HOME Actual
Extremely Low-income 742 0
Low-income 826 0
Moderate-income (Above 80% AMI) 0
Non Moderate-income 893 0
Total 2461 0
Table 7 – Number of Households Served
Narrative Information
In total, two thousand four hundred and sixty one (2461) persons were served through the City’s CDBG
funded services. Of the individuals/households served, 742 were extremely-low income, 826 were low
income and 893 were non-moderate (above 80% AMI). It should be pointed out that out of 893 non
moderate residents, 143 of the persons/households that were above moderate were served at the three
Palo Alto long-term facilities and were elderly; one disabled resident; one victim of domestic violence, and
three served had fair housing complaints, therefore they fall within HUD’s presumed benefit category.
CAPER 9
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c)
Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City’s entitlement amount for FY 2019-2020 was $499,868. The City had estimated $136,049 in
program income and $88,661 in uncommitted funds from previous years. In total, the City provided
$670,434 in direct CDBG funding and $1,559,277 in HSRAP funding. The following details the
accomplishments of the CDBG funded subrecipients targeted to benefit persons who are low income,
homeless, or at risk of homelessness.
Addressing the emergency shelter and transitional housing needs of homeless persons
The following agencies received funding from the City of Palo Alto to provide emergency shelter and/or
transitional housing for homeless persons.
LIFEMOVES - OPPORTUNITY SERVICES CENTER, CDBG $31,832: The Opportunity Services Center (OCS)
continued to provide services to homeless individuals and those at-risk of becoming homeless. Services
include food, showers, laundry, internet access, transportation assistance, shelter referral and placement,
stable housing placement, SSI/SSDI application assistance, among other services. Further, the OSC
provided intensive case management to a total of 95 clients (including the 26 verified residents of Palo
Alto). The services offered at the OSC are designed to provide case management and services to meet the
basic needs of homeless people, and to help homeless families and individuals make the transition from
living on the streets, in vehicles or other places not fit for human habitation in and around Palo Alto, into
stable housing.
PALO ALTO HOUSING CORPORATION – SRO RESIDENT SUPPORT, CDBG $31,831: Palo Alto Housing
Corporation provided one-on-one counseling, case management, and educational activities at Alma Place
and Barker Hotel. The one-on-one sessions provided by the Resident Service Coordinator affords a
systematic manner of addressing a diversity of issues these residents face. The SRO Resident Services
Coordinator works closely with residents with severe mental health issues to ensure compliance with
treatment guidelines and to reduce the risk of relapse.
Due to the COVID-19 pandemic, the demand of services onsite at Alma Place and the Barker Hotel
increased and shifted. The need for support counseling services, financial assistance, rental emergency
assiatnce, assistance in applying for unemployment and other government benefits increased
dramatically. The PAHC developed new strategies to maintain and build connections with residents and
get them the services they need to maintain health and wellness, while keeping both staff and residents
safe from COVID-19. PAHC in partnership with other local non profits established and process and
continue to provide hot meauls three times a week. Resident Services Staff personally deliver the food at
the doorsteps of residents. PAHC in partnership with LifeMoves at Opportunity Center referred their
residents for rental assistance. They also assisted their residents in applying for unemployment benefits,
social security benefits, food stamps, disability insurances for COVID-19 related illness, among other.
CAPER 10
OMB Control No: 2506-0117 (exp. 06/30/2018)
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs
The following agencies received funding from the City of Palo Alto to help low income individuals and
families avoid becoming homeless.
CATHOLIC CHARITIES - LONG TERM CARE OMBUDSMAN, CDBG $10,000: During the program year 317
unduplicated, majority, of whom are low- or moderate-income elderly residents were contacted by
Ombudsmen through regular visitation and phone outreach at the three Palo Alto long-term facilities that
mainly serve low-income residents: Lytton Gardens Skilled Nursing, Palo Alto Nursing Center, and Lytton
Gardens Community Care (Assisted Living). The objective was to promote the interests, well-being, and
rights of elderly residents. Additionally, The Long-Term Care Ombudsman Program received, identified,
investigated, and resolved 82 complaints made by, or on behalf of the low-income elderly residents of the
above-mentioned facilities.
DOWNTOWN STREETS INC. WORKFORCE DEVELOPMENT PROGRAM, CDBG $361,473: During the
program year Downtown Streets Team connected 25 employers with 30 individuals into meaningful
employment. Seventy five percent of individuals remained employed for three months or longer.
LIFEMOVES - OPPORTUNITY SERVICES CENTER, CDBG $31,832: During the program year, at the
Opportunity Services Center, LifeMoves provided 26 unduplicated Palo Alto residents with intensive case
management, as indicated by a case plan and case notes. The services offered at the OSC are designed to
provide case management and services to meet the basic needs of homeless people, and to help homeless
families and individuals make the transition from living on the streets, in vehicles or other places not fit
for human habitation in and around Palo Alto, into stable housing.
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The following agencies received funding from the City of Palo Alto to help homeless persons make the
transition to permanent housing and independent living.
YWCA SILICON VALLEY DOMESTIC VIOLENCE SERVICES, CDBG $5,000: The YWCA Support Network
Program provides domestic violence support services including counseling, case management, crisis
counseling, and legal assistance. During the program year the Support Network Program provided 20
unduplicated clients with counseling, therapy and/or legal advocacy services. Crisis Counselors provided
crisis line assistance to 40 callers from Palo Alto that received crisis counseling services.
SILICON VALLEY INDEPENDENT LEARNING CENTER - HOUSING and EMERGENCY SERVICES, CDBG
$12,000: During the program year, Silicon Valley Independent Living Center (SVILC) assisted 20
unduplicated Palo Alto adults with disabilities in developing an independent living plan for housing which
CAPER 11
OMB Control No: 2506-0117 (exp. 06/30/2018)
resulted in improved accessibility to decent affordable housing. In addition, SVILC provided 83
unduplicated low-income Palo Alto residents with disabilities, training and education to find and secure
affordable housing, or housing-related support.
PROJECT SENTINEL - FAIR HOUSING SERVICES, CDBG $37,940: During the program year, Project Sentinel
provided community education and outreach regarding fair housing law and practices, investigation,
counseling and legal referral for victims of housing discrimination. In total, 16 fair housing complaints
were investigated by Project Sentinel. Twelve (12) residents were provided individual consultation relating
to specific fair housing questions and one hundred and 139 individuals were assisted through outreach
and presentations.
CAPER 12
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The Housing Authority of the County of Santa Clara (HACSC) owns and manages four public housing units,
which are all located in the City of Santa Clara.
Actions taken to encourage public housing residents to become more involved in management
and participate in homeownership
While the majority of their units have been converted to affordable housing stock, HACSC is proactive in
incorporating resident input into the agency’s policy-making process. An equitable and transparent policy
making process that includes the opinions of residents is achieved through the involvement of two tenant
commissioners, one being a senior citizen, on the HACSC board.
HACSC has been a Moving to Work (MTW) agency since 2008. In this time the agency has developed 31
MTW activities. The vast majority of its successful initiatives have been aimed at reducing administrative
inefficiencies, which in turn opens up more resources for programs aimed at Low and Moderate Income
(LMI) families.
As mentioned previously, there are no public housing facilities in the City of Palo Alto.
Actions taken to provide assistance to troubled PHAs
Not applicable.
CAPER 13
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i)
The City of Palo Alto has undertaken a number of actions to eliminate barriers to the development of
affordable housing including participation in a county-wide effort to provide additional affordable housing
units; programs in the 2014-2023 Housing Element Update to increase the supply of affordable housing;
and the development impact fees for housing.
Housing Trust Silicon Valley (Housing Trust):The Housing Trust, formerly the Housing Trust Fund of Santa
Clara County (HTSCC), was created to provide additional financial resources to address the County’s
affordable housing deficit. The Housing Trust’s mission is to make Silicon Valley a more affordable place
to live. Loans and grants are issued to increase the supply of affordable housing, assist first-time home
buyers, prevent homelessness and stabilize neighborhoods. Palo Alto was among the contributors during
its founding and has continued to allocate funding. A provision was added to ensure the City’s funds be
used exclusively for qualiFYing affordable housing projects within the City of Palo Alto. The most recent
included $200,000 from the City’s Residential Housing Fund for Fiscal Year 2014/2015.
Participation in the Housing Trust has increased the available housing funding for a number of Palo Alto.
Projects as summarized in the table below. In addition, the Housing Trust has invested over $100,000
assisting 16 households to purchase homes in Palo Alto through its first-time homebuyer program.
Table 8 –Adjustments/Improvements to Affordable Housing Strategies
2015-2023 Housing Element Update: The Palo Alto Housing Element, which is part of the City’s
Comprehensive Plan is the chief policy document describing the City’s housing needs and the policies and
programs the City will use to meet those needs. The 2015-2023 Housing Element Update has been
certified by the California State Department of Housing and Community Development.
Development Impact Fees for Housing: The City’s impact fees are comprised of four categories: Housing,
Traffic, Community facilities, and Parkland dedication. The City has completed Nexus Studies for
Residential and Commercial Development. The studies served as a basis for an update to both residential
CAPER 14
OMB Control No: 2506-0117 (exp. 06/30/2018)
and non-residential housing fees and became effective on June 19, 2017. The housing fee for non
residential development is $22.40 per square foot for retail and hotel uses. The fee for commercial uses
increased to $38.48 per square foot. The fee rate applies to all net new commercial square footage on a
site. Full payment is required at building permit issuance with some exemptions including hospitals and
convalescent facilities, private education facilities, public facilities and private clubs, lodges and fraternal
organizations.
Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j)
The City’s CDBG program diligently works with other purveyors of funding to provide the most value per
dollar. This is actualized by partnering with other City resources such as HSRAP and leveraging dollars
invested in site acquisition for low-income housing with a multitude of other funding sources. However,
Palo Alto is at a disadvantage in removing or eliminating obstacles to meeting underserved needs due to
the consistently shrinking amount of CDBG funds available in recent years. To address this, the City
supplements its CDBG funding with other resources and funds, such as:
• During FY2019-20, the City’s Human Service Resource Allocation Process (HSRAP) provided
approximately $1,559,277 from the General Fund in support of human services. The HSRAP funds,
in conjunction with the CDBG public service funds, are distributed to local non-profit agencies.
• The Palo Alto Commercial Housing Fund is used primarily to increase the number of new
affordable housing units for Palo Alto’s work force. It is funded with mitigation fees required from
developers of commercial and industrial projects.
• The Palo Alto Residential Housing Fund is funded with mitigation fees provided under Palo Alto’s
BMR housing program from residential developers and money from other miscellaneous sources,
such as proceeds from the sale or lease of city property.
• The City’s Below Market Rate Emergency Fund was authorized in 2002 to provide funding on an
ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and
preservation of the City’s stock of BMR ownership units.
• HOME Program funds are available on an annual competitive basis through the State of California
HOME program, and the County’s HOME Consortium.
Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j)
Lead poisoning can cause permanent damage to the brain and many other organs, and can result in
reduced intelligence and behavioral problems in young children. More than eighty thousand (80,000)
children younger than six years old living in the United States have lead in their blood that is above the
level of concern set by the Centers for Disease Control and Prevention (CDC). A significant number of these
children are in families of low income and are living in old homes with heavy concentration of lead-based
paint and lead-contaminated dust and soil in the environment.
The City’s housing and CDBG staff provides information and referrals to property owners, developers, and
nonprofit organizations rehabilitating older housing about lead-based paint (LBP) hazards. Any house to
be rehabilitated with City financial assistance is required to be inspected for the existence of LBP hazards.
The City will provide financial assistance for the abatement of LBP hazards in units rehabilitated with City
CAPER 15
OMB Control No: 2506-0117 (exp. 06/30/2018)
funding. The City also requires that contractors are trained and certified in an effort to decrease the risk
of potential use of LBP in new units. All development and rehabilitation projects must be evaluated
according to HUD’s Lead Safe Housing Rule 24 CFR Part 35.[1]
Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j)
The City, in its continuing effort to reduce poverty, prioritized funding agencies that provide direct
assistance to the homeless and those in danger of becoming homeless. In FY 2019-2020, these programs
included the following:
The Workforce Development Program provided transition from unemployment and homelessness to
regular employment and housing through case management, job training, mentoring, housing, and
transportation assistance. Downtown Streets Team is a nonprofit that works to reduce homelessness
through a “work first” model. Downtown Streets Team utilized their community connections to provide
training and job opportunities to homeless people, specifically in the downtown area. The Downtown
Streets Team has helped over 1139 team members in maintaining employment for 90 days or more and
housed 1092 individuals, including 789 team members since its inception. The Downtown Streets Team
has initiatives in Palo Alto, Redwood City, San Jose, Sunnyvale, San Francisco, Santa Cruz, San Rafael,
Novato, Petaluma, Salinas, Sacramento, West Sacramento, Modesto, Oakland, Berkeley and Hayward.
As mentioned previously, the City provided LIFEMOVES with $31,832 in CDBG funds in FY 2019-20. At the
Opportunity Services Center, the agency provided services to homeless individuals and those at-risk of
becoming homeless.
During the program year 26 unduplicated individuals received monthly case management services
including assistance with housing/job search, referral and mentoring; and 326 unduplicated homeless or
very-low income persons received services at the Opportunity Services Center. Services includes showers
and laundry facilities, lockers, light snacks, information and referral, transportation assistance, a clothes
closet, medical and psychiatric screening and referral, inter-faith chaplaincy, and fellowship.
Actions taken to develop institutional structure. 91.220(k); 91.320(j)
The City continues to participate with other local jurisdictions in sharing information and resources
regarding CDBG and other housing programs. Meetings take place on a biweekly basis. Additionally, when
projects are funded by multiple jurisdictions, the jurisdictions involved cooperate in an effort to reduce
duplication of work and reduce project monitoring costs.
City staff will continue the following collaborative efforts to improve institutional structure:
• Joint jurisdiction RFP and project review committees
• Coordination on project management for projects funded by multiple jurisdictions
• HOME Consortium between member jurisdictions for affordable housing projects
CAPER 16
OMB Control No: 2506-0117 (exp. 06/30/2018)
Actions taken to enhance coordination between public and private housing and social service
agencies. 91.220(k); 91.320(j)
The City benefits from a strong jurisdiction and region-wide network of housing and community
development partners, such as Regional Housing Working Group and the Continuum of Care (CoC). To
improve intergovernmental and private sector cooperation, the City participated with other local
jurisdictions and developers in sharing information and resources.
In addition to the actions listed above, the City will continue to coordinate with the City’s HSRAP funding
efforts to comprehensively address community needs.
Identify actions taken to overcome the effects of any impediments identified in the
jurisdictions analysis of impediments to fair housing choice. 91.520(a)
The City makes every effort to affirmatively further fair housing in compliance with the adopted Analysis
of Impediments. The following is a list of actions taken to affirmatively further fair housing:
• The Department of Housing and Community Development has certified the City’s 2015-2023
Housing Element update.
• The City targeted the majority of its CDBG and local housing funds to increasing and preserving
the supply of affordable housing.
• The Office of Human Services regularly met with the County of Santa Clara Housing Authority to
place homeless individuals with section 8 vouchers.
• Affordable housing information and referral services were provided by the Office of Human
Services
• In a joint effort with the County of Santa Clara and Cities, the City is currently updating its
Assessment of Fair Housing (AFH) Plan. The Palo Alto AFH Plan Is expected to be completed in
Winter/Spring 2021.
During Fiscal Year 2019-20, the City continued to support actions to affirmatively further fair housing
choice through a subrecipient agreement with Project Sentinel, a non-profit organization dedicated to
assisting individuals with housing problems. Project Sentinel responded to and investigated 16 cases of
housing discrimination in Palo Alto during the fiscal year. Additionally, 139 Palo Alto residents and service
providers through outreach presentations were provided information relating to fair housing laws. Finally,
thirteen 13 low-income Palo Alto residents and/or housing providers were provided extended fair housing
consultation sessions to tenants. In addition, 1,002 brochures were distributed throughout the City of Palo
Alto to create awareness and information relating to fair housing laws.
CAPER 17
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
The City continues to actively monitor all subrecipients and projects ensuring compliance with program
and comprehensive planning requirements. Monitoring involves review of semi annual and annual
performance reports, invoices with backup material, and review of agency audit reports. Biennial on-site
monitoring is carried out for all CDBG subrecipients and consists of reviewing client files, financial records,
policies, procedures and compliance with federal requirements as detailed in the subrecipient.
In fiscal year 2018-19, the City completed on-site monitoring of four non-profit organizations. Since the
City operates under a two-year funding cycle there are some subrecipients that receive funding for two
years and are only required to have one on-site monitoring during this time. However, starting FY2017-18
the City Staff conducted annual monitoring of the Downtown Streets Program due to the large amount of
funding that the organization receives annually. Typically, subrecipients who have had trouble
implementing projects or have been identified as having compliance issues in a previous monitoring are
selected for the annual monitoring. There were no major deficiencies identified during the previous
monitoring. The City will be conducting on-site monitoring of four subrecipients in Winter 2020 consistent
with the Subrecipient Monitoring Plan.
Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.
Draft CAPER was made available on the City website:
(https://www.cityofpaloalto.org/gov/depts/pln/long_range_planning/community_development_block_
grant/default.asp)
for the required 15 days public comment period from October 27 through November 11, 2020. An
advertisement was placed in The Daily Post, a newspaper of general circulation on October 26, 2020,
advertising the availability of the CAPER for public review and comment. The draft CAPER was posted on
the City’s website on October 26, 2020. Due to COVID-19, copies of the CAPER could be mailed or e-mailed
to citizens free of charge. The Human Relations Commission also conducted a virtual public hearing on
November 12, 2020 to discuss the CAPER and to allow the public an opportunity to comment on the
CAPER. The City Council will `receive a copy of the final CAPER along with any public comments received
in December 2020.
CAPER 18
OMB Control No: 2506-0117 (exp. 06/30/2018)
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.
Not applicable. The City does not plan to change the CDBG program objectives.
Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No, there are no open Brownfields Economic Development Initiative (BEDI) grants.
[BEDI grantees] Describe accomplishments and program outcomes during the last year.
Not applicable.