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HomeMy WebLinkAbout2019-12-09 City Council Agenda PacketCity Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Monday, December 9, 2019 Special Meeting Council Chambers 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 11 days preceding the meeting. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. Public comment may be addressed to the full City Council via email at City.Council@cityofpaloalto.org. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Special Orders of the Day 5:00-5:30 PM 1.Proclamation Honoring Donatus "Dee" Okhomina 2.Proclamation Honoring Project Safety Net's 10 Year Anniversary Rail Communications Update 5:30-6:00 PM 3.Rail Grade Separation Updates: Report and Possible Direction on Communications and Community Engagement and Previously Proposed Rail Blue Ribbon Commission, and Verbal Update From the Expanded Community Advisory Panel (XCAP) Study Session 6:00-7:00 PM 4.Study Session With Santa Clara County Supervisor Joe Simitian REVISED 2 December 9, 2019 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Agenda Changes, Additions and Deletions City Manager Comments 7:00-7:10 PM Oral Communications 7:10-7:25 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. Consent Calendar 7:25-7:30 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 5.Approval of a License Agreement With PTI US Towers II, LLC for Continued Operation of Telecommunications Facilities on a City-owned Property Located at 2675 Hanover Street 6.Approval of Amendment Number 2 to Contract Number S16161854 With Tandem Creative Inc. for Graphic Design and Public Outreach Services to Extend the Contract Term With no Increase in Maximum Compensation 7.Approval of Amendment Number 2 to the Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost-sharing to Extend the Term to December 2021 With an Optional Mutual Extension for an Additional Two Years 8.Approval of an Agreement With the Peninsula Corridor Joint Powers Board in the Amount of $112,176 for the 2020 Caltrain Go Pass Program 8A. Colleagues’ Memo From Council Members DuBois and Kou Regarding Potential Adoption of an Urgency Ordinance to Provide Just Cause Eviction Protections to Tenants Until California State Assembly Bill 1482 Takes Effect on January 1, 2020 (Continued From December 2, 2019). Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:30-8:30 PM 9.Council Direction on Scope of Review for Procedures and Protocols Related to Boards and Commissions 8:30-9:30 PM 10.Colleagues’ Memo From Council Members Cormack, Fine, and Tanaka Regarding Anti-vaping Measures Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Q&A 3 December 9, 2019 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Closed Session 11.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Properties: (1) 2416-2460 Park Boulevard (APN 124-29-002); and (2) 249-251 California Avenue (APN 124-29-007); Negotiating Parties: City of Palo Alto; and (1) Marthe Raymann, as Successor Trustee of The Alois and Marthe Raymann Trust Dated July 17,1991; and (2) Duca and Hanley Properties, Inc., a Corporation; City Negotiators: Ed Shikada, Monique le Conge Ziesenhenne, Brad Eggleston, Kiely Nose, and Sunny Tong Subject of Potential Negotiations: Price and Terms of Payment for Subsurface Easements Related to Construction of the Public Safety Building at 250 Sherman Avenue. 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. 4 December 9, 2019 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Meetings Sp. Policy and Services Committee Meeting December 10, 2019 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Boards and Commissions Term End Dates for 2020 (Maddy Act) Summary of 2019 State Housing Legislation City of Palo Alto (ID # 10908) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 12/9/2019 City of Palo Alto Page 1 Summary Title: Proclamation Honoring Title: Proclamation Honoring Donatus “Dee” Okhomina From: City Manager Lead Department: City Manager Attachments: • Donatus (Dee) Okhomina Proclamation Honoring Donatus “Dee” Agbon Okhomin WHEREAS, the City of Palo Alto and the broader community lost a valued member in Mr. Donatus Agbon Okhomina, Jr. on November 16, 2019; WHEREAS, on behalf of the City of Palo Alto, we wish to record our deep sorrow over Donatus Agbon Okhomina, Jr.’s passing; WHEREAS, Donatus Agbon Okhomina, Jr. was a beloved father, friend, and colleague who chose to serve his community in a very high risk but critical role as a Lineperson with the City of Palo Alto; WHEREAS, Donatus Agbon Okhomina, Jr. was an accomplished and well-respected individual within the electric utility industry, and dedicated his career to the service and safety of others; WHEREAS, Donatus Agbon Okhomina, Jr. served faithfully in the United States Air Force as an Electrical Systems Journeyman for nearly four years, and received the Air Force Training Ribbon, Air Force Outstanding Unit award and the Air Force Achievement Medal; WHEREAS, upon completing military service, Donatus Agbon Okhomina, Jr. continued his career as an Electrician with the Sacramento Municipal Utility District, later with Pacific Gas and Electric, and finally with the City of Palo Alto Utilities; WHEREAS, during his career as an Electrician, Donatus Agbon Okhomina, Jr. founded his own company, Okhomina Electronics; and WHEREAS, Donatus Agbon Okhomina, Jr.’s life and service will forever be cherished by family and friends, as well as respected and esteemed by colleagues. NOW, THEREFORE, I, Eric Filseth, Mayor of the City of Palo Alto, on behalf of the City Council, do hereby proclaim appreciation for outstanding public service to Donatus Agbon Okhomina, Jr., and extend sincerest condolences to his family and everyone whose lives he touched. Presented: December 9, 2019 ______________________________ Eric Filseth Mayor, City of Palo Alto City of Palo Alto (ID # 10906) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 12/9/2019 City of Palo Alto Page 1 Summary Title: Proclamation for PSN's 10 Year Anniversary Title: Proclamation Honoring Project Safety Net's 10-Year Anniversary From: City Manager Lead Department: Community Services Attachments: • Attachment A: City of Palo Alto PSN 10th Anniversary Proclamation City of Palo Alto Proclamation Project Safety Net 10th Anniversary WHEREAS, youth, parents, educators, youth serving organizations, faith community, healthcare providers, legislators, business, government staff, and resident advocates came together in Fall 2009 to form Project Safety Net; and WHEREAS, Project Safety Net was launched as a collaborative community network held together by a common interest of fostering youth well-being and suicide prevention in Palo Alto; and WHEREAS, Project Safety Net came together over the last decade to create change by collectively responding to tragedy through mobilizing community support and resources in Palo Alto; and WHEREAS, Project Safety Net’s notable efforts includes restricting access to lethal means to harm along railways; elevating youth social and emotional well-being through Developmental Assets, leadership development, and community service initiatives; initiating Centers for Disease Control Epi-Aid Investigation of youth suicide in Santa Clara County, and advocating for stronger youth behavioral health clinical services infrastructure; and WHEREAS, Project Safety Net includes nearly 50 partners working collectively on community education, outreach, and training; access to quality youth mental health services; and policy advocacy; and WHEREAS, Project Safety Net envisions that young people are empowered, in partnership with the whole community, to advocate for themselves and their peers; youth suicide is ended; stigma is non- existent, and high-quality mental health services are culturally-relevant, accessible, and well-utilized; and Palo Alto is a community where youth and young adults feel safe, supported, and accepted. NOW, THEREFORE, I, Eric Filseth, Mayor of the City of Palo Alto, on behalf of the City Council, do herby proclaim 2019 as a year to honor Project Safety Net’s 10th Anniversary. City of Palo Alto (ID # 10902) City Council Staff Report Report Type: Rail Communications Update Meeting Date: 12/9/2019 City of Palo Alto Page 1 Council Priority: Grade Separations Summary Title: Rail Update: RBRC, Community Engagement and XCAP Title: Rail Grade Separation Updates: Report and Possible Direction on Communications and Community Engagement and Previously Proposed Rail Blue Ribbon Commission, and Verbal Update From the Expanded Community Advisory Panel (XCAP) From: City Manager Lead Department: City Manager Recommendations Staff recommends that the City Council: A. Receive staff report and potentially provide direction on planned communications and community engagement, as well as a previously proposed Rail Blue Ribbon Commission; and, B. Receive a verbal update from the Expanded Community Advisory Panel (XCAP). Background At its September 9, 2019 meeting, the City Council took the following action related to the community planning activities related to railroad grade separations: A. Continue the XCAP and authorize the XCAP to appoint a Chair and Co-Chair, to help shape the agendas, take votes, make recommendations, and provide no less than bi-monthly updates to Council; B. Reiterate the April Motion and allow additional alternatives to be studied including: i. Allow the XCAP to brainstorm some alternatives such as at Embarcadero, Meadow, and Charleston; ii. Ensure the trench alternative minimizes construction impacts; iii. Rank alternatives using established criteria; C. Have the XCAP present preferred alternatives by April 30, 2020; D. Direct Staff to refine scope, purpose and timeline for an RBRC to focus on community awareness and engagement, and surveys, regional cooperation and City of Palo Alto Page 2 funding and bring it back to Council prior to December 1, 2019; and E. Staff and Council to continue to work with VTA, Caltrain, Stanford and others on potential funding sources. Following this City Council direction, on October 28, 2019 the council received an overview of a potential communications and community engagement strategy to support City Council decision-making on preferred alternatives for further development in Spring 2020. The City Council also received its first verbal update from the Chair of the XCAP. A. Staff Update on the Rail Blue Ribbon Commission and Discussion of Rail Communications and Community Engagement Rail Blue Ribbon Commission Update: At the August 19, 2019 City Council meeting, staff presented a proposal to establish a Rail Blue Ribbon Commission (RBRC) following a model previously used by the City to successfully develop and obtain voter approval on the City’s infrastructure plan. The item was initially continued, then on September 9, 2019, staff returned to the City Council with a revised RBRC proposal. The City Council took the action noted above, addressing both an expanded role for XCAP as well as the RBRC proposal. Since the September 9, 2019 City Council action, staff has worked diligently with the Expanded Community Advisory Panel (XCAP) to implement the City Council direction related to the XCAP structure and scope. Because the XCAP is still actively working to organize itself and put a workplan in motion, establishing another advisory body at this time has the potential to add confusion for both the XCAP and the public without a clear role that supports City Council decision-making on preferred alternatives for further development. As such, staff does not recommend further City Council action related to the RBRC. Given the increased role provided to the XCAP, the City Council may want to consider how best to stay engaged and guide the XCAP’s work. This could include appointing one or more Councilmembers as liaisons to the XCAP or appointment of an ad hoc committee of City Council to coordinate with the XCAP chair and vice-chair. This could supplement regular XCAP updates to the Council and support its ability to achieve the tight timeframe established for an XCAP recommendation by April 30, 2020. In addition to the work being done by the XCAP, staff continues to work with VTA and Caltrain related to funding and the grade separations. Notably, VTA staff is now actively evaluating cash flow scenarios for Measure B funding that could involve bond financing to accelerate grade separation completion. It should be noted, however, that funding decisions are largely dependent on the identification of preferred project concepts and associated cost estimates. City of Palo Alto Page 3 Independent of Palo Alto’s specific interest in grade separations, significant efforts are currently underway regarding transportation funding across the Bay Area region. This includes discussion of a regional FASTER Bay Area sales tax measure, envisioned by its proponents to generate $100 billion over 40 years. Caltrain is also continuing consideration of a three-county sales tax measure. The City will need to maintain engagement with these discussions, in coalition with other agencies where possible. When further updates about those efforts are available, staff will also bring those forward to the City Council. Rail Communications and Community Engagement: Staff presented a communications and engagement strategy to the City Council on October 28 which addressed community awareness, engagement, and surveys within this Community Conversations current phase of the project (https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=59288.75&BlobID=7 3855). At that meeting, the City Council provided feedback on the recommended approach. Since that time, the City hosted a Community Meeting on November 7 where approximately one third (1/3) of the participants said it was their first time attending a rail-related meeting. Staff will continue outreach efforts to increase awareness about this community-driven process. Since the last update, staff refined the communications and engagement approaches, including setting tentative dates for upcoming town hall meetings and other ways for the community to provide input. Details include: ** Tentative details, subject to change • Hosting several community conversations including: o Three Town Hall meetings all from 6:00-8:00 p.m. on the following tentative dates and locations: ▪ February 20 at Mitchell Park Community Center, ▪ February 27 at Greene Middle School and ▪ March 12 at Palo Alto High School o Planning informal conversations with City staff about transportation issues, called the “Word on the Street” Series on the following tentative dates and locations: ▪ January 30 at Palo Verde Elementary School from 6:00-8:00 p.m. ▪ March 5 at JLS Middle School from 6:00-8:00 p.m., and ▪ April 8 at Gunn High School from 3:00-5:00 p.m. o Exploring staff tables at community meetings City of Palo Alto Page 4 • Planning social media surveys in January 2020 and a more detailed online survey in early 2020 sometime after January The planned communications approaches discussed with the City Council in October seek to build awareness about rail grade separations and bring the community at large up to speed. This work has already begun through the recent community meeting, the blog series (to inform), the launch of a new website (connectingpaloalto.com), new fact sheets (to share succinct information about what is being considered), and the launch of a recent online survey (to gain current input on this topic). Other strategies include updates in the City’s weekly digital newsletter, the launch of a new transportation newsletter in December, and online, social media and print advertising. Staff recommends that the town hall meetings be structured as informal community conversations where the City Council is not expected to deliberate, take any actions or convene as a formal City Council meeting. After each meeting, staff will report out on the community input gained at the town hall and other community engagement efforts that have taken place. Staff also plans to include a report out on all community engagement efforts to the City Council in the spring which will refer back to these meeting summaries and summarize efforts to date. B. A Verbal Update from the Expanded Community Advisory Panel (XCAP) As shown in the adopted language of the September 9, 2019 City Council meeting, the City Council approved an expanded role and responsibilities for the Expanded Community Advisory Panel (XCAP). The changes allowed the XCAP to elect a Chair and Vice Chair as well as to take votes on recommendations, among other things. In the City Council motion, the City Council also asked the XCAP to provide no less than every other month updates to the City Council. City Council received the first update on October 28 (pages 12-25: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=59288.75&BlobID=73 855). Of note since that time, the Palo Alto Unified School District determined that they will no longer participate through membership on the XCAP and will instead coordinate with staff and monitor XCAP activities as a community stakeholder. The XCAP Chairperson will present another update on December 9, 2019 and will share a brief report at that meeting about their progress to date and planned activities over the next month. The next XCAP update is planned for mid-January. City of Palo Alto (ID # 10236) City Council Staff Report Report Type: Consent Calendar Meeting Date: 12/9/2019 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: Approval of a License Agreement with PTI US TOWERS II, LLC at 2675 Hanover Street Title: Approval of a License Agreement With PTI US Towers II, LLC, for Continued Operation of Telecommunications Facilities on a City Owned Property Located at 2675 Hanover Street From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that Council approve and authorize the City Manager to execute the attached license agreement between the City of Palo Alto and PTI US Towers II, LLC, to provide for the continuation of the uninterrupted service, replacement, maintenance, modification, upgrade, and operation of a wireless communication facility at Mayfield Fire Station 2 located at 2675 Hanover Street. Background The City is the owner of the real property located at 2675 Hanover Street and operates the Mayfield Fire Station 2 at this location. On December 1, 2003, Pacific Bell Wireless, LLC, a Nevada limited liability company, entered into a lease with the City to occupy approximately 174 square feet of the property as a communication facility. The lease was assigned to Omnipoint Communications, Inc. on January 2, 2005, who then transferred the lease to T- Mobile West Corporation on June 30, 2009. T-Mobile West Corporation entered into the first amendment to the lease agreement, dated June 22, 2012, to expand the premises by an additional 400 square feet for a current total size of approximately 574 square feet. In 2013, T- Mobile subleased portions of the tower to AT&T with the City’s consent while maintaining their equipment on the tower. On November 10, 2015, T-Mobile sold the rights of over 600 towers to Phoenix Tower International (PTI), including the one located at 2675 Hanover Street. This transaction shifted the ownership of the towers and the right to receive rent from the co-locators, as well as the obligation to pay rent to the property owners, to PTI. The lease at 2675 Hanover Street expired City of Palo Alto Page 2 on November 31, 2018, but it is still effective under the ‘Holding Over’ provision. The City and PTI US Towers II, LLC, desire to enter into a new license agreement for the continuation of the uninterrupted service, replacement, maintenance, modification, upgrade, and operation of the wireless communication facility at the premises. Discussion Staff has negotiated a license agreement to grant PTI the right to continue using the premises as a wireless communications facility for a ten-year initial term with two options to extend for five years each. PTI has agreed to pay $85,000 as a license fee in consideration for use of the premises during the first year with 3% annual increases. If PTI wants to add another carrier to the premises, PTI shall pay the City 50% of the revenue from their new agreement with the co- locating carrier if revenues exceed the license fee due from PTI to the City. In addition to the license with PTI, AT&T will independently seek to complete modifications to its equipment on the tower. The premises is currently improved with antennas mounted on a fiberglass treepole and connected with coaxial cables to transceiver stations located at the base. AT&T’s project will consist of replacing older technology antennas with new technology antennas, which will improve the capacity and quality of service. All such replacements and modifications are subject to separate permitting and approval processes, pursuant to the Palo Alto Municipal Code. Timeline The initial term shall commence on the first day of the month following the effective date of the license. AT&T intends to apply for permits to upgrade the facility shortly following execution of the license by the City. It will take approximately three to five days to upgrade the facility. Stakeholder Engagement Staff is recommending the extension of a license with an existing vendor, so no outreach was necessary. Resource Impact The proposed license will generate rental income to the City which will be collected in the General Fund, and this amount is scheduled to increase 3% annually. Staff will continue to assess the overall rental income that is paid to the General Fund from vendors outside the City and bring forward any budget adjustments as necessary to align the budgeted rental income with the total rent paid to the City annually. PTI will also pay a one-time application fee of $2,768, per the FY 2020 Adopted Municipal Fee Schedule, due to the City within 60 days after the effective date of the license. Policy Implications The proposed license is consistent with Policy #4 of the Telecommunications Policy Statements approved by Council on November 17, 1997 and with City Policies and Procedures 1-11, Leased Use of City Land/Facilities. City of Palo Alto Page 3 Environmental Review The project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA guidelines. Attachments: • Attachment A: Exhibit C-3 Plans Showing Tower • Attachment B: License Agreement with PTI US Towers II, LLC - 2675 Hanover T-1 SF04351A 0 0 07-29-11 MODIFICATION DRAWINGS 110038 JS LFC TITLE SHEET NO. SHEET TITLE INDEX OF SHEETS REV PROJECT TEAM PROJECT CONTACT: GEOTECHNICAL ENGINEER: ENGINEER OF RECORD: TOWER MANUFACTURER: REFERENCED DOCUMENTS DOCUMENT DATEREMARKS STRUCTURAL MODIFICATION DRAWINGS 2675 HANOVER ST. PALO ALTO, CA 94304 (SANTA CLARA COUNTY) SITE ADDRESS: T-MOBILE SITE ID: MODIFICATION PROVISIONS BA351 MAYFIELD STATION #2 SITE NAME: July 29, 2011 ATTACHMENT A Attachment A, Page 1 GENERAL NOTES:STRUCTURAL STEEL NOTES (CONTINUED): WELDING NOTES: STRUCTURAL STEEL NOTES: BOLT LENGTHS OVER FOUR DIA. BUT NOT EXCEEDING EIGHT DIA. BOLT LENGTHS UP TO AND INCLUDING FOUR DIA. 8.2.1 TURN-OF-THE-NUT TIGHTENING BOLT TIGHTENING PROCEDURE: JS LFC N-1 PROJECT NOTES 0 0 07-29-11 MODIFICATION DRAWINGS BA351 MAYFIELD STATION #2 110038 July 29, 2011 SITE # SF04351A ATTACHMENT A Attachment A, Page 2 ANCHOR TESTING PROCEDURE: REQUIREMENTS: TEST PARAMETERS: REMIDIAL ACTION FOR ANCHOR ROD FAILURE: REPORT OF RESULTS: 0 0 07-29-11 MODIFICATION DRAWINGS BA351 MAYFIELD STATION #2 110038 July 29, 2011 SITE # SF04351A JS LFC N-2 ANCHOR TESTING NOTES ATTACHMENT A Attachment A, Page 3 MODIFICATION DESCRIPTIONNO. MODIFICATION SCHEDULE ELEVATION (FT.) NOTES: 0 0 07-29-11 MODIFICATION DRAWINGS BA351 MAYFIELD STATION #2 110038 July 29, 2011 SITE # SF04351A JS LFC S-1 TOWER ELEVATION AND MODIFICATION SCHEDULE TOWER ELEVATION SECTION DETAILDETAIL ATTACHMENT A Attachment A, Page 4 REINFORCEMENT DESCRIPTIONFLAT # SHAFT REINFORCEMENT SCHEDULE ELEVATION (FT.)REINFORCEMENT DESCRIPTIONFLAT # SHAFT REINFORCEMENT SCHEDULE ELEVATION (FT.) JS LFC S-2 SHAFT REINFORCEMENT DETAILS 0 0 07-29-11 MODIFICATION DRAWINGS BA351 MAYFIELD STATION #2 110038 July 29, 2011 SITE # SF04351A SECTION SHAFT REINFORCEMENT-OPTION 2 SECTIONSHAFT REINFORCEMENT-OPTION 1 ATTACHMENT A Attachment A, Page 5 ATTACHMENT A Attachment A, Page 6 ATTACHMENT A Attachment A, Page 7 ATTACHMENT A Attachment A, Page 8 ATTACHMENT A Attachment A, Page 9 ATTACHMENT A Attachment A, Page 10 ATTACHMENT A Attachment A, Page 11 ATTACHMENT A Attachment A, Page 12 ATTACHMENT A Attachment A, Page 13 ATTACHMENT A Attachment A, Page 14 ATTACHMENT A Attachment A, Page 15 ATTACHMENT A Attachment A, Page 16 ATTACHMENT A Attachment A, Page 17 ATTACHMENT A Attachment A, Page 18 ATTACHMENT A Attachment A, Page 19 ATTACHMENT A Attachment A, Page 20 ATTACHMENT A Attachment A, Page 21 ATTACHMENT A Attachment A, Page 22 ATTACHMENT A Attachment A, Page 23 ATTACHMENT A Attachment A, Page 24 TH E S E P L A N S A N D S P E C I F I C A T I O N S , A S I N S T R U M E N T S O F S E R V I C E , A R E A N D S H A L L R E M A I N T H E P R O P E R T Y O F S T R E A M L I N E EN G I N E E R I N G A N D D E S I G N I N C . W H E T H E R T H E P R O J E C T S F O R W H I C H T H E Y A R E M A D E A R E E X E C U T E D O R N O T . T H E S E DR A W I N G S A N D S P E C I F I C A T I O N S S H A L L N O T B E U S E D B Y A N Y P E R S O N O R E N T I T Y O N O T H E R P R O J E C T S W I T H O U T P R I O R WR I T T E N C O N S E N T O F T H E E N G I N E E R . C o p y r i g h t 2 0 0 9 , S T R E A M L I N E E N G I N E E R I N G A N D D E S I G N I N C . A L L R I G H T S R ES E R V E D . C 2675 HANOVER STPALO ALTO, CA 94304 84 4 5 S i e r r a C o l l e g e B l v d , S u i t e E G r a n i t e B a y , C A 9 5 7 4 6 Co n t a c t : K e v i n S o r e n s e n P h o n e : 9 1 6 - 6 6 0 - 1 9 3 0 E- M a i l : k e v i n @ s t r e a m l i n e e n g . c o m F a x : 9 1 6 - 6 6 0 - 1 9 4 1 VICINITY MAP CODE COMPLIANCEPROJECT DESCRIPTION T-1 SHEET INDEX APPROVAL PROJECT INFORMATION DRIVING DIRECTIONS TN SITE LOCATION ATTACHMENT A Attachment A, Page 25 A-1 TH E S E P L A N S A N D S P E C I F I C A T I O N S , A S I N S T R U M E N T S O F S E R V I C E , A R E A N D S H A L L R E M A I N T H E P R O P E R T Y O F S T R E A M L I N E EN G I N E E R I N G A N D D E S I G N I N C . W H E T H E R T H E P R O J E C T S F O R W H I C H T H E Y A R E M A D E A R E E X E C U T E D O R N O T . T H E S E DR A W I N G S A N D S P E C I F I C A T I O N S S H A L L N O T B E U S E D B Y A N Y P E R S O N O R E N T I T Y O N O T H E R P R O J E C T S W I T H O U T P R I O R WR I T T E N C O N S E N T O F T H E E N G I N E E R . C o p y r i g h t 2 0 0 9 , S T R E A M L I N E E N G I N E E R I N G A N D D E S I G N I N C . A L L R I G H T S R ES E R V E D . C 2675 HANOVER STPALO ALTO, CA 94304 84 4 5 S i e r r a C o l l e g e B l v d , S u i t e E G r a n i t e B a y , C A 9 5 7 4 6 Co n t a c t : K e v i n S o r e n s e n P h o n e : 9 1 6 - 6 6 0 - 1 9 3 0 E- M a i l : k e v i n @ s t r e a m l i n e e n g . c o m F a x : 9 1 6 - 6 6 0 - 1 9 4 1 TN ATTACHMENT A Attachment A, Page 26 A-2 TH E S E P L A N S A N D S P E C I F I C A T I O N S , A S I N S T R U M E N T S O F S E R V I C E , A R E A N D S H A L L R E M A I N T H E P R O P E R T Y O F S T R E A M L I N E EN G I N E E R I N G A N D D E S I G N I N C . W H E T H E R T H E P R O J E C T S F O R W H I C H T H E Y A R E M A D E A R E E X E C U T E D O R N O T . T H E S E DR A W I N G S A N D S P E C I F I C A T I O N S S H A L L N O T B E U S E D B Y A N Y P E R S O N O R E N T I T Y O N O T H E R P R O J E C T S W I T H O U T P R I O R WR I T T E N C O N S E N T O F T H E E N G I N E E R . C o p y r i g h t 2 0 0 9 , S T R E A M L I N E E N G I N E E R I N G A N D D E S I G N I N C . A L L R I G H T S R ES E R V E D . C 2675 HANOVER STPALO ALTO, CA 94304 84 4 5 S i e r r a C o l l e g e B l v d , S u i t e E G r a n i t e B a y , C A 9 5 7 4 6 Co n t a c t : K e v i n S o r e n s e n P h o n e : 9 1 6 - 6 6 0 - 1 9 3 0 E- M a i l : k e v i n @ s t r e a m l i n e e n g . c o m F a x : 9 1 6 - 6 6 0 - 1 9 4 1 TN ATTACHMENT A Attachment A, Page 27 A-3 TH E S E P L A N S A N D S P E C I F I C A T I O N S , A S I N S T R U M E N T S O F S E R V I C E , A R E A N D S H A L L R E M A I N T H E P R O P E R T Y O F S T R E A M L I N E EN G I N E E R I N G A N D D E S I G N I N C . W H E T H E R T H E P R O J E C T S F O R W H I C H T H E Y A R E M A D E A R E E X E C U T E D O R N O T . T H E S E DR A W I N G S A N D S P E C I F I C A T I O N S S H A L L N O T B E U S E D B Y A N Y P E R S O N O R E N T I T Y O N O T H E R P R O J E C T S W I T H O U T P R I O R WR I T T E N C O N S E N T O F T H E E N G I N E E R . C o p y r i g h t 2 0 0 9 , S T R E A M L I N E E N G I N E E R I N G A N D D E S I G N I N C . A L L R I G H T S R ES E R V E D . C 2675 HANOVER STPALO ALTO, CA 94304 84 4 5 S i e r r a C o l l e g e B l v d , S u i t e E G r a n i t e B a y , C A 9 5 7 4 6 Co n t a c t : K e v i n S o r e n s e n P h o n e : 9 1 6 - 6 6 0 - 1 9 3 0 E- M a i l : k e v i n @ s t r e a m l i n e e n g . c o m F a x : 9 1 6 - 6 6 0 - 1 9 4 1 TN ATTACHMENT A Attachment A, Page 28 A-4 TH E S E P L A N S A N D S P E C I F I C A T I O N S , A S I N S T R U M E N T S O F S E R V I C E , A R E A N D S H A L L R E M A I N T H E P R O P E R T Y O F S T R E A M L I N E EN G I N E E R I N G A N D D E S I G N I N C . W H E T H E R T H E P R O J E C T S F O R W H I C H T H E Y A R E M A D E A R E E X E C U T E D O R N O T . T H E S E DR A W I N G S A N D S P E C I F I C A T I O N S S H A L L N O T B E U S E D B Y A N Y P E R S O N O R E N T I T Y O N O T H E R P R O J E C T S W I T H O U T P R I O R WR I T T E N C O N S E N T O F T H E E N G I N E E R . C o p y r i g h t 2 0 0 9 , S T R E A M L I N E E N G I N E E R I N G A N D D E S I G N I N C . A L L R I G H T S R ES E R V E D . C 2675 HANOVER STPALO ALTO, CA 94304 84 4 5 S i e r r a C o l l e g e B l v d , S u i t e E G r a n i t e B a y , C A 9 5 7 4 6 Co n t a c t : K e v i n S o r e n s e n P h o n e : 9 1 6 - 6 6 0 - 1 9 3 0 E- M a i l : k e v i n @ s t r e a m l i n e e n g . c o m F a x : 9 1 6 - 6 6 0 - 1 9 4 1 TN ATTACHMENT A Attachment A, Page 29 A-5 TH E S E P L A N S A N D S P E C I F I C A T I O N S , A S I N S T R U M E N T S O F S E R V I C E , A R E A N D S H A L L R E M A I N T H E P R O P E R T Y O F S T R E A M L I N E EN G I N E E R I N G A N D D E S I G N I N C . W H E T H E R T H E P R O J E C T S F O R W H I C H T H E Y A R E M A D E A R E E X E C U T E D O R N O T . T H E S E DR A W I N G S A N D S P E C I F I C A T I O N S S H A L L N O T B E U S E D B Y A N Y P E R S O N O R E N T I T Y O N O T H E R P R O J E C T S W I T H O U T P R I O R WR I T T E N C O N S E N T O F T H E E N G I N E E R . C o p y r i g h t 2 0 0 9 , S T R E A M L I N E E N G I N E E R I N G A N D D E S I G N I N C . A L L R I G H T S R ES E R V E D . C 2675 HANOVER STPALO ALTO, CA 94304 84 4 5 S i e r r a C o l l e g e B l v d , S u i t e E G r a n i t e B a y , C A 9 5 7 4 6 Co n t a c t : K e v i n S o r e n s e n P h o n e : 9 1 6 - 6 6 0 - 1 9 3 0 E- M a i l : k e v i n @ s t r e a m l i n e e n g . c o m F a x : 9 1 6 - 6 6 0 - 1 9 4 1 ATTACHMENT A Attachment A, Page 30 ATTACHMENT B Attachment B, Page 1 LICENSE AGREEMENT BETWEEN CITY OF PALO ALTO AND PTI US TOWERS II, LLC This License Agreement (this “Agreement”), dated as of _________________ (the “Effective Date”), is entered into by the CITY OF PALO ALTO, a California chartered municipal corporation (the “City”), and PTI US TOWERS II, LLC, a Delaware limited liability company (the “Licensee”) (individually, a “Party”; collectively, the “Parties”), in reference to the following: RECITALS: A. The City owns real property located at 2675 Hanover Street, Palo Alto, California 94304, commonly referred to as Fire Station No. 2 and/or Mayfield Station (the “Property”), as more particularly described in Exhibit B, attached hereto and made a part hereof. B. The Property is not located in the public right-of-way and the City is licensing the Property in its proprietary capacity; thus neither 47 U.S.C. Sections 253, 332(c)(7) or 1455(a), the FCC rules promulgated thereunder, nor California Government Code Section 65964.1 applies to this License Agreement or the City’s decision to license the Property to Licensee. C. The City and Pacific Bell Wireless, LLC, a Nevada limited liability company (“Pac Bell”) entered into that certain Lease (the “2003 Lease”), dated as of December 1, 2003 for the use of approximately 174 square feet of the Property (as more particularly set forth in the 2003 Lease, the “Original Premises”). D. The City and T-Mobile West Corporation (“TMO”) (as successor-in-interest to Pac Bell), entered into that certain Amendment No. 1 to Lease Agreement (the “First Amendment”; together with the 2003 Lease, the “Original Lease”), dated as of June 22, 2012, pursuant to which TMO and the City expanded the Original Premises to include an additional 400 square feet of the Property (as more particularly set forth in the First Amendment and inclusive of the Original Premises, the “Premises”). E. The Fiberglass Treepole (the “Tower”) as described in the Original Lease and placed within the Expanded Premises was sold and assigned by TMO to Licensee and as a result, the Licensee desires to continue to use the Premises, shown and described more particularly in Exhibit C-1 attached hereto and made a part hereof, to operate communications facilities (“WCFs”) as contemplated by the Original Lease. F. The City desires to permit the Licensee’s use of the Premises under the covenants, terms and conditions (the “Provisions”) set forth below. ATTACHMENT B Attachment B, Page 2 AGREEMENT: In consideration of Recitals A through F, which are made a substantive part of this Agreement, and the following Provisions, the Parties agree, as follows: Section 1.0 PREMISES 1.1 Subject to the Provisions hereof, the City grants to the Licensee a right to use the Premises for purposes of operating and/or leasing WCFs. 1.2 The City grants to the Licensee a right to the non-exclusive use of a portion of the Property for the sole purpose of operating cabling and associated hardware, including utility runs incidental to the WCFs between the WCFs and the Tower, together with the right to ingress and egress thereon. 1.3 In addition to the Licensee’s use of the Premises, the City grants to the Licensee a non- excusive easement in and through that portion of the Property, described at Exhibit C-2, for the sole purpose of affording the Licensee with access to the Premises (the “Access Easement”). The term of the Access Easement is coterminous with this Agreement; without further notice by the City the Access Easement shall terminate at the same time as this Agreement. Section 2.0 PURPOSE 2.1 The purpose of this Agreement is to provide for the continuation of the uninterrupted service, replacement, maintenance, modification, upgrade and operation of the WCFs at the Premises at the Licensee’s sole cost and expense. Section 3.0 ALLOWABLE SERVICES AND USES 3.1 Permitted Uses. The Licensee may use the Premises to provide the following: A. During the Term, the Licensee shall use the Premises only for the purpose of installing, removing, replacing, maintaining, modifying, upgrading and operating, at its sole cost and expense, the WCFs. The WCFs consist of radio, telephone and communications equipment and antennas installed and used to send and receive radio signals to and from cellular telephones and other mobile devices and to connect those signals to radio, telephone or other wireless communications facilities either directly, by means of cables or indirectly, by means of transmitting and receiving facilities (including microwave antennas and GPS antenna) located at the Premises. B. The Licensee’s uses of the Property and the Premises shall be subject to the ATTACHMENT B Attachment B, Page 3 following terms and conditions: 1. The Licensee’s use of the Property is non-exclusive, and its use of the Premises is exclusive. 2. The Licensee’s operations at the Premises shall comply at all times with all applicable laws, rules and regulations regarding electromagnetic emissions. The Licensee shall conduct reasonably necessary tests after its WCFs are constructed at the Premises to ensure that its WCFs are in compliance with all applicable laws, rules and regulations regarding electromagnetic emissions. The tests shall be conducted by a licensed professional engineer, and the written results of such tests shall be delivered to the City’s Real Property Manager consistent with section 16.2 of this Agreement. 3. In constructing and operating its WCFs, the Licensee shall comply with and include the following items in its plans and operating procedures for its facilities: a. The Licensee shall not permit any unreasonable odors, smoke, dust, gas, substances, noise or vibrations to emanate from the Premises, nor take any action which would constitute a nuisance or would disturb, obstruct or endanger any other occupants or use of the site or interfere with their use of their respective premises. b. The Licensee shall operate the Premises in a manner that will not cause interference to the City as of the Effective Date, including, but not limited to, any irrigation system and landscaping installed by the City. Prior to any construction at the Premises, the Licensee shall coordinate its placement of its WCFs to ensure that placement does not conflict with the City’s irrigation systems and landscaping. The Licensee shall repair any damage to the City’s property caused by the construction of its WCFs, including, but not limited to, any damage caused to the City’s irrigation system and landscaping. c. The Licensee’s operations shall at all times be conducted in compliance in all applicable federal, state and local laws, rules and regulations, including, but not limited to, laws and regulations regarding environmental and occupational safety and all Federal Communications Commission requirements. The Licensee shall submit all required hazardous materials filings (if required) and obtain all required approvals prior to installing its batteries or any other hazardous materials. d. Prior to engaging in any new construction at the Premises, the Licensee shall provide the City with evidence that all permits required from any agencies ATTACHMENT B Attachment B, Page 4 having pre-construction jurisdiction over the proposed development, including but not limited to building permits and street opening permits, have been authorized and are available. e. The Licensee shall post a visible, prominent notice on the Premises listing its emergency procedures, warnings, and emergency contacts. f. The Licensee shall maintain all improvements that it places at the Property, including the fence, structure and the equipment. g. The Licensee’s service lights in the Premises shall remain off unless its service personnel are in the area and require the lights to be turned on to conduct their operation. 3.2 Restricted Uses. The above-referenced services and uses shall be the only services and uses permitted at, on, or from the Premises. The Licensee shall not use the Premises for any other purpose, or to engage in, or permit, any other business activity within or from the Premises. Section 4.0 TERM; EXTENSION OF TERM 4.1 This Agreement shall be effective and binding on the Parties as of the Effective Date. The initial term (“Term”) of this Agreement shall commence on the first day of the month following the Effective Date (the “Commencement Date”), and end on the date that is ten (10) years thereafter (the “Expiration Date”). 4.2 The Term will be extended automatically for two (2) additional terms of five (5) years each (each an “Extension Term”), unless either Party provides the other Party with written notice of intent not to extend the then-current term. In order to be effective, such notice must be delivered, consistent with Section 16 of this Agreement, no later than three (3) months prior to the expiration of the then-current term. Section 5.0 LICENSE FEE; PAYMENT PROCEDURE; LATE PAYMENT FEE 5.1 Fees. A. License Fees. Licensee shall pay the City a license fee (the “License Fee”) of Eighty- Five Thousand and 00/100 Dollars ($85,000.00) per year (adjusted annually as provided herein) as consideration for Licensee’s use of the Premises, which shall become due and payable in accordance with the payment procedures set forth in section 5.3 below. The License Fee will increase by three percent (3.0%) each contract year. ATTACHMENT B Attachment B, Page 5 B. Telecommunication Application Processing Fee. The Licensee shall pay a one-time fee of Two Thousand Seven Hundred Sixty Eight Dollars ($2,768.00) (the “Application Fee”) to the City. The Application Fee shall be due within sixty (60) days after the Effective Date. In the event that the Licensee does not pay the Application Fee on or before the date due, the Licensee shall be deemed in breach of this Agreement and the City may terminate this Agreement according to Section 14.1.A.1 below. C. Failure to pay. The Licensee shall be deemed in default and subject to Termination provisions of section 14 of this Agreement and/or Late Payment Fee provisions of section 5.4 if the applicable Application Fee is not paid in accordance with section 5.1(B) and/or the License Fee is not paid within fifteen (15) days following Licensee’s receipt of notice from the City that such Application Fee or License Fee is past the due dates set forth in Section 5.3 below. 5.2 [Intentionally omitted]. 5.3 Payment Procedures A. License Fee Payment Schedule. 1. First Year. The License Fee for the first year shall be due and payable to the City within sixty (60) days after the Commencement Date. 2. Subsequent Years. For all subsequent contract years, the License Fee shall be due and payable on the anniversary of the Commencement Date. In the event this Agreement expires or is otherwise terminated, the City will not return any portion of the License Fee. B. Payment Delivery. The License Fee shall be made payable by check or other negotiable instrument to “CITY OF PALO ALTO” and delivered to or at the Revenue Collections Division, 250 Hamilton Avenue, PO Box 10250, Palo Alto, CA 94303. The designated place of payment may be changed at any time by the City upon thirty (30) days’ prior written notice to the Licensee. C. No Waiver. The Licensee agrees that the City’s acceptance of any applicable ‘late paid’ or ‘incorrect amount’ License Fee shall not constitute a waiver by the City of any default or breach and shall not bar the City from enforcing its right to collect the Late Payment Fee or exercising any other remedy provided in this Agreement or by applicable law. D. Rental Documentation. The City hereby agrees to provide to Licensee a complete ATTACHMENT B Attachment B, Page 6 and fully executed Internal Revenue Service Form W-9 upon execution of this Agreement, and from time to time during the Term of this Agreement upon Licensee’s written request. 5.4 Late Payment Fee. If the City does not receive payment of the License Fee or the Application Fee within five (5) days of the applicable fee’s date due, or payment of any other sum then due and payable by the Licensee, then the Licensee shall pay a fee equal to two percent (2%) of the applicable fee then due and payable yet remaining unpaid (the “Late Payment Fee”) plus an administrative fee of forty-five dollars ($45.00) or any fee established by the Municipal Fee Schedule, whichever fee is higher (the “Administrative Fee”). The total sum of all fees (as applicable, the License Fee, the Application Fee, the Late Payment Fee, the Administrative Fee or the Overhead Fee) then due and owning shall become immediately due and payable to the City. A. The City’s acceptance of any fee or fees due and payable by the Licensee that is or are paid late shall in no event constitute a waiver of the Licensee’s default with respect to such overdue payment, nor shall the Licensee’s failure to pay bar the City from exercising any other rights and remedies granted hereunder or by any provision of law. Section 6.0 MAINTENANCE AND REPAIR 6.1 WCF Maintenance and Repairs. The Licensee, at its sole cost and expense, shall perform its WCF’s maintenance and repairs, including, without limitation, all painting and all maintenance of landscaped areas necessary to keep the Premises and all improvements thereto in first-class order, repair and condition, and shall keep the Premises in a safe, clean, wholesome, and sanitary condition to the complete satisfaction of the City, and in compliance with all applicable laws, during the Term. 6.2 Other Maintenance and Repairs. A. The Licensee shall maintain, at its expense, all equipment, trade fixtures and any other improvements it installs at the Premises that are required for the maintenance and operation of the Premises. The Licensee waives the right to make repairs at the expense of the City and the benefit of the provisions of Sections 1941 and 1942 of the California Civil Code relating thereto; and further agrees that if and when any repairs, alterations, additions or betterments shall be made by the Licensee as required by this Agreement, the Licensee shall promptly pay for all labor done or materials furnished and shall keep the Premises free and clear of any lien or encumbrance of any kind whatsoever. B. If the Licensee fails to commence any repairs or perform any maintenance work, for which it is responsible hereunder, within thirty (30) days of receipt of written notice ATTACHMENT B Attachment B, Page 7 from the City, the City shall have the option to make the repairs and invoice the Licensee for those costs, and the Licensee shall within ten (10) days of receipt of a bill therefor from the Real Property Manager, reimburse the City for the cost of such repairs, which payment shall include a fifteen percent (15%) administrative overhead fee (the “Overhead Fee”). The City’s performance of such repairs or performance of maintenance shall in no event be construed as a waiver of the duty of the Licensee to make repairs or perform maintenance as required by this Agreement. Section 7.0 CONSTRUCTION AND/OR ALTERATION BY THE LICENSEE 7.1 City’s Consent. A. A WCF currently exists on the Premises in approximately the configuration shown on the plans attached at Exhibit C-3. No other WCFs or other facilities shall be constructed, nor shall the existing WCF be modified without the prior written consent of the City (which may act in either or both its proprietary capacity as Licensor or its regulatory capacity in enforcing City ordinances, resolutions, policies, rules or regulations). The Parties acknowledge that, to the extent the City acts in its proprietary capacity, neither 47 U.S.C. Sections 253, 332(c)(7) or 1455(a), the FCC rules promulgated thereunder, nor California Government Code Section 65964.1 applies to the City’s decision to approve modifications to the existing WCF. B. Notwithstanding paragraph A, the Licensee may replace, substitute or modify any part of the WCFs without the City’s consent provided that such replacements, substitutions and modifications are contained within the Licensee’s equipment enclosure or do not materially alter the size or weight of the Licensee’s improvements at the Premises and provided that the Licensee complies with applicable City ordinances, resolutions, policies, rules and regulations relating to zoning approvals and building permits applicable to the WCFs. 7.2 Trade Fixtures. The Licensee may, at any time and at its sole cost and expense, install and place business fixtures and equipment within any structure at the Premises, provided that written notice of such fixtures and their installation have been provided to the City’s Real Property Manager. 7.3 Building Permit Final Inspection. Upon completion of construction of any building, structure or facility, the Licensee shall submit to the Real Property Manager, a copy of the building permit issued to the Licensee, which shows the final inspection has been completed and approved, in writing, by the City. Section 8.0 OWNERSHIP OF IMPROVEMENTS ATTACHMENT B Attachment B, Page 8 8.1 Improvements to Real Property. All improvements constructed, erected or installed at the Premises must be free and clear of all liens, claims, or liability for labor or material. Upon the expiration or earlier termination of this Agreement, the City at its option may require the Licensee to remove its improvements including, but not limited to, the foundations, and may further require the Licensee to repair to the satisfaction of the City any damage to the Premises caused by such removal within ninety (90) days after the Licensee’s receipt of the City’s request that the Licensee shall remove such improvements; provided, that the Licensee may be required to remove underground conduit installed by it during the Term and provided that the Licensee receives the City’s request to remove such improvements within fifteen (15) days from the expiration or earlier termination of this Agreement. 8.2 Personal Property. Title to all equipment, furniture, furnishings and trade fixtures placed by the Licensee at the Premises shall remain the property of the Licensee, and replacements, substitutions and modifications thereof may be made by the Licensee during the Term. The Licensee will remove all of its equipment, fixtures and furnishings within ninety (90) days after the expiration or earlier termination of this Agreement, provided that the Licensee shall repair to the reasonable satisfaction of the Real Property Manager any damage to the Premises and improvements caused by such removal. A. The City acknowledges the Licensee may enter into financing arrangements, including issuance of promissory notes and financial and security agreements for the financing of the Licensee’s equipment (the “Collateral”) with a third party financing entity and may in the future enter into additional financing arrangements with other financing entities. In connection therewith, City subject to Section 7.1 requirements consents to the assignment of rights in the Collateral, disclaims any interest in the Collateral, as fixtures or otherwise, and agrees the Collateral shall be exempt from execution, foreclosure, sale, levy, attachment, or distress for any license fee or any other fee due or to become due and payable to the City, and such Collateral may be removed at any time without recourse to legal proceedings. Section 9.0 “AS BUILT” PLANS 9.1 Upon completion of any major Licensee-constructed improvements, the Licensee shall provide the Real Property Manager with a complete set of reproducible "as built plans," reflecting the actual construction at the Premises. Section 10.0 DAMAGE TO OR DESTRUCTION OF IMPROVEMENTS 10.1 If the Premises are, in whole or in part, damaged or destroyed, then: A. If wholly damaged or destroyed so that the Premises are rendered permanently unusable for reconstruction of a WCF site, this Agreement shall terminate and the Licensee shall be liable for the License Fee up to the time of such damage or ATTACHMENT B Attachment B, Page 9 destruction and any License Fee pre-paid by the Licensee shall be returned; or B. If only partially damaged or destroyed and still usable for construction or use as a WCF, the Licensee shall, within a reasonable time, not to exceed thirty (30) days from the date of the Licensee’s receipt of notice of the damage or destruction, notify the City, in writing, of its intent to either: 1. terminate this Agreement, in which case Licensee shall be liable for the License Fee only up to the time of City’s receipt of Licensee’s notice and any License Fee prepaid by the Licensee applicable to the period after receipt of such notice shall be returned to the Licensee, or 2. continue operating under this Agreement, in which case, the Licensee within a reasonable time shall repair the Premises and the WCFs, with a proportional and reasonable reduction of the License Fee from the date notice is received by the City until the date the Premises and the WCFs are usable. Section 11.0 UTILITIES CHARGES 11.1 Payment Required. The Licensee shall pay, prior to delinquency, all charges for utilities goods and services delivered or supplied to the Premises by the City at the rate charged by the City’s Department of Utilities and/or Department of Public Works or any other City department. Section 12.0 INSURANCE 12.1 General. Unless the City’s insurance risk manager agrees, in writing, to accept the Licensee’s self-insurance in fulfillment of these insurance requirements, the Licensee shall obtain and maintain at all times during the Initial Term and the Extension Term, if any, commercial general liability insurance and commercial automotive liability insurance protecting the Licensee in an amount of two million dollars ($2,000,000) per occurrence (combined single limit), including death, bodily injury and property damage, and not less than two million dollars ($2,000,000) aggregate, for each personal injury or death liability, products-completed operations, and each accident. Such insurance, pursuant to ISO Form No. GC2010 or equivalent or other commercially reasonable form acceptable to the City’s insurance risk manager, shall include the City, its council members, officers, employees, and agents as an additional insured as respects liability arising out of the Licensee’s negligent performance of any Work that it performs or may be authorized to perform under this Agreement. Coverage shall be provided in accordance with the limits specified and the Provisions indicated herein. Claims-made policies are not acceptable. Such limits may be satisfied by a combination of primary and umbrella policies. Licensee will make best efforts to notify the City within 30 days of receipt of notice from its insurer regarding ATTACHMENT B Attachment B, Page 10 any cancellation or termination of any insurance policies. The Licensee shall be responsible for notifying the City of such change or cancellation. 12.2 Certificates. The Licensee shall file the required original certificate(s) of insurance with blanket additional insured endorsements with the City’s insurance risk manager, with a copy to the Utilities Director, subject to the City’s prior approval. The certificate(s) shall clearly state or provide: A. Policy number; name of insurance company; name, address and telephone number of the agent or authorized representative; name and address of insured; project name and address; policy expiration date; and specific required coverage amounts; B. With the certificate(s), the Licensee shall provide prior written notice of cancellation to the City that is unqualified as to the acceptance of liability for failure to notify the City; and C. That the Licensee’s required insurance is primary as respects any other valid or collectible insurance that the City may possess, including any self-insured retentions the City may have, and any other insurance the City does possess shall be considered excess insurance only and shall not be required to contribute with this insurance. 12.3 Notice. The certificate(s) of insurance with blanket additional insured endorsements and notices shall be mailed to: (a) City of Palo Alto, Utilities Department, P.O. Box 10250, Palo Alto, CA 94303, Attn.: Electrical Engineering Manager; and (b) City of Palo Alto, Public Works Department, P.O. Box 10250, Palo Alto, CA 94303, Attn.: Supervising Project Engineer. 12.4 Other Coverage. Unless the City permits the Licensee to self-insure, the Licensee shall obtain and maintain at all times during the Initial Term and the Extension Term, if any, statutory workers’ compensation and employer’s liability insurance or qualify as a self- insurer in an amount not less than one hundred thousand dollars ($100,000) or such other amounts as required by Law, and furnish the City with a certificate showing proof of such coverage. 12.5 Insurance Rating. Any insurance provider of the Licensee shall be admitted and authorized to do business in California and shall be rated at least A-:VII in Best’s Key Rating Guide. Insurance certificates issued by non-admitted insurance companies will not be acceptable to the City. 12.6 Deductibles. Prior to the execution of this Agreement, any self-insured retentions must be stated on the certificate(s) of insurance, which shall be sent to the City, and any deductibles shall be reported, in writing, to the City’s insurance risk manager. Licensee ATTACHMENT B Attachment B, Page 11 hereby certifies Licensor that Licensee has no self-insured retentions. Section 13.0 ASSIGNING, SUBLETTING, AND ENCUMBRANCES 13.1 Transfers. This Agreement conveys no property rights in the Property or the Premises except as specifically provided herein to the Licensee. Licensee shall not, without the prior written consent of City, mortgage, pledge, hypothecate, encumber, assign, or permit any lien to attach to, or otherwise transfer, this License or any interest hereunder, permit any assignment, or other transfer of Licensee’s interest in this License or any interest hereunder by operation of law, sublet the Premises or any part thereof, or enter into any license agreement or otherwise permit the occupancy or use of the Premises or any part thereof by any person other than Licensee (all of the foregoing are hereinafter sometimes referred to collectively as “Transfers” and any person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a “Transferee”). Any Transfer requiring City’s consent which is made without City’s prior written consent shall be null, void, and of no effect, provided that the City acknowledges that as a result of the prior transfers of the Tower, Licensee is currently further sublicensing the Premises to affiliates of T-Mobile USA Inc. (such affiliate, “TMO”) and New Cingular Wireless PCS, LLC (“AT&T”; together with TMO, the “Existing Subtenants” and each, an “Existing Subtenant”) and that such sublicensees are currently occupying the Premises (the portions of the Premises being occupied by the Existing Subtenants, the “Existing Subtenant Premises”). If Licensee desires City’s consent to any new Transfer, Licensee shall notify City in writing, which notice (the “Transfer Notice”) shall include (i) the proposed effective date of the Transfer, which shall not be less than thirty (30) days nor more than one (1) year after the date of delivery of the Transfer Notice, (ii) a description of the portion of the Premises to be transferred (the “Subject Space”), (iii) all of the terms of the proposed Transfer and the consideration therefor, including calculation of the “Transfer Revenue”, as that term is defined in Section 13.2 below, in connection with such Transfer, the name and address of the proposed Transferee, and a copy of all existing executed and/or proposed documentation pertaining to the proposed Transfer, including all existing operative documents to be executed to evidence such Transfer or the agreements incidental or related to such Transfer, (iv) to the extent that the proposed Transferee is not a publicly traded entity, current financial statements of the proposed Transferee certified by an officer, partner or owner thereof, business credit and personal references and history of the proposed Transferee, and (v) any other information required by City. Whether or not City consents to any proposed Transfer, Licensee shall pay City’s review and processing fees, as well as any reasonable professional fees (including, without limitation, attorneys’, accountants’, architects’, engineers’ and consultants’ fees) incurred by City within thirty (30) days after written request by City. ATTACHMENT B Attachment B, Page 12 13.2 Transfer Revenue. If City consents to a Transfer, as a condition thereto which the parties hereby agree is reasonable, Licensee shall pay to City fifty percent (50%) of “Transfer Revenue,” as that term is defined in this Section 13.2, when due by Transferee from such Transfer (“Transfer Premium”). “Transfer Revenue” shall mean all rent, additional rent, or other consideration payable by an Existing Subtenant (subject to the terms hereof) or a Transferee and shall also include, but not be limited to, any payment in excess of fair market value for services rendered by Licensee to Transferee or for assets, fixtures, or equipment transferred by Licensee to Transferee in connection with such Transfer. For purposes of calculating any such effective rent, all such concessions shall be amortized on a straight-line basis over twelve (12) months. The Transfer Premium shall be abated during a period when the License Fee payable by Licensee under this License exceeds the total Transfer Revenue from all sources due to Licensee. Notwithstanding the foregoing, amounts received by Licensee by any Existing Subtenant shall only be included within the definition of “Transfer Revenue” if such revenue is payable with respect to (i) a sublease or license of portions of the Premises above and beyond the Existing Subtenant Premises, (ii) a proposed full assignment of the rights hereunder to an Existing Subtenant, or (iii) an equipment modification or other amendment to the site lease agreements memorializing the lease of the Existing Subtenant Premises by the applicable Existing Subtenant (the “Existing Subleases”) pursuant to which Licensee is paid revenue that is above and beyond what is scheduled to be paid as of the Effective Date pursuant to the terms of the Existing Subleases. 13.3 Effect of Transfer. If City consents or had previously consented to a Transfer, (i) the terms and conditions of this License shall in no way be deemed to have been waived or modified, (ii) such consent shall not be deemed consent to any further Transfer by either Licensee or a Transferee, (iii) Licensee shall deliver to City, promptly after execution, an original executed copy of all documentation pertaining to the Transfer, including amendments, in form reasonably acceptable to City, (iv) Licensee shall furnish a complete statement, certified by an independent certified public accountant, or Licensee’s chief financial officer, setting forth in detail the computation of any Transfer Revenue Licensee has derived and shall derive from such Transfer, and (v) no Transfer relating to this License or agreement entered into with respect thereto, whether with or without City’s consent, shall relieve Licensee or any guarantor of the License from any liability under this License, including, without limitation, in connection with the Subject Space. City or its authorized representatives shall have the right to audit the books, records, and papers of Licensee relating to any Transfer, and shall have the right to make copies thereof. If the Transfer Revenue respecting any Transfer shall be found understated, Licensee shall, within thirty (30) days after demand, pay the deficiency, and if understated by more than two percent (2%), Licensee shall pay City’s reasonable costs of such audit. 13.4 Occurrence of Default. Any Transfer hereunder shall be subordinate and subject to the provisions of this License, and if this License shall be terminated during the term of any Transfer, City shall have the right to: (i) treat such Transfer as cancelled and repossess the Subject Space by any lawful means, or (ii) require that such Transferee attorn to and ATTACHMENT B Attachment B, Page 13 recognize City as its landlord under any such Transfer. If Licensee shall be in default, City is hereby irrevocably authorized to direct any Transferee to make all payments under or in connection with the Transfer directly to City (which City shall apply towards Licensee’s obligations under this License) until such default is cured. Such Transferee shall rely on any representation by City that Licensee is in default hereunder, without any need for confirmation thereof by Licensee. Upon any assignment, the assignee shall assume in writing all obligations and covenants of Licensee thereafter to be performed or observed under this License. No collection or acceptance of rent by City from any Transferee shall be deemed a waiver of any provision of this Section 13 or the approval of any Transferee or a release of Licensee from any obligation under this License, whether theretofore or thereafter accruing. In no event shall City’s enforcement of any provision of this License against any Transferee be deemed a waiver of City’s right to enforce any term of this License against Licensee or any other person. If Licensee’s obligations hereunder have been guaranteed, City’s consent to any Transfer shall not be effective unless the guarantor also consents to such Transfer. 13.5 Transfer to an Affiliate. The Licensee shall have the right to assign its rights under this Agreement, in whole or in part, to any of its parent companies, subsidiaries, affiliates, or successor legal entities, or to any entity acquiring substantially all the assets of the Licensee in the market defined by the Federal Communications Commission in which the Property is located, or as otherwise permitted by applicable law. As used herein, “affiliates” means an entity which is controlled by, controls, or is under common control with, Licensee. Licensee shall deliver written notification of any such assignment within ten (10) days following the assignment, and shall further provide City written documentation showing that any such assignee has affirmatively assumed all the relevant obligations under this Agreement, arising from and after the date of such assignment with respect to the portion of the rights assigned. As to other parties, this Agreement may not be sold, assigned or transferred without the written consent of the other Party, which consent will not be unreasonably withheld, delayed or conditioned. This Agreement is personal to the Licensee; any unrelated third party shall apply for a new agreement with the City upon the expiration or earlier termination of this Agreement. Section 14.0 TERMINATION OF AGREEMENT 14.1 Termination by the City. A. The City may terminate this Agreement upon the occurrence of any of the following events: 1. Upon a breach by the Licensee regarding any Provision, which the Licensee has not commenced to cure within the time specified, or if no time period is specified, within thirty (30) days of receipt of written notice of default from the City. ATTACHMENT B Attachment B, Page 14 2. If the Licensee files a petition under any chapter of the U.S. Bankruptcy Code, (or any similar petition under any insolvency law of any jurisdiction), or has filed against it any such petition which is not dismissed within sixty (60) days of the date filed, or if the Licensee proposes any dissolution, liquidation or composition, with creditors, makes an assignment for the benefit of its creditors, or if a receiver, trustee, custodian or similar agent is appointed with respect to or takes possession of any material portion of the property or business of the Licensee. 3. If the City determines, in its sole and reasonable discretion, that it requires the Property or Premises or any portion thereof for security reasons due to federal, state or local law or regulation related to the design, maintenance or protection of critical infrastructure, or as otherwise may be necessary to protect the safety of City’s critical infrastructure facilities. City agrees to provide Licensee with twelve (12) months advanced written notice of any such need for property, except in cases where federal, state or local law or regulation require the City to act sooner. City will make a good faith effort to work with Licensee to identify an alternative location reasonably acceptable to the Parties and Licensee shall be allowed, if necessary, in Licensee’s reasonable determination, to place a temporary installation on the Property in a mutually agreeable location until the earlier to occur of (a) Licensee’s WCF on such alternative location is operational, or (b) the expiration of twenty-four (24) months after the date Licensee first installed such temporary installation. B. Upon the occurrence of any of the events described in this section, the City may: 1. At the City’s sole option, cure any such default by performance of any act, including payment of money, and the cost thereof, plus reasonable administrative cost, shall become immediately due and payable by the Licensee to the City; 2. Seek an action or suit in equity to enjoin any acts or things which may be unlawful or in violation of the rights of the City; 3. Seek a mandamus or other suit, action or proceeding at law or in equity to enforce its rights against the Licensee and any of its officers, agents, and employees and its assigns, and to compel it to perform and carry out its duties and obligations under the law and its covenants and agreements with the City, as provided herein; or 4. Pursue any other remedy available by law or specifically provided in this ATTACHMENT B Attachment B, Page 15 Agreement. C. Notwithstanding anything to the contrary contained herein however, in the event of a default or breach which cannot reasonably be cured within the specified period (or if no period is specified within thirty (30) days), the Licensee shall have such additional period of time as reasonably determined by City to cure any default or breach of this Agreement. Each and all of the remedies given to the City hereunder or by any law now or hereafter enacted, are cumulative and the exercise of one right or remedy shall not impair the right to the City to exercise any or all other remedies. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and then discontinued or abandoned, then, and in every such case, the Parties shall be restored to its and their former position and rights and remedies as if no such suit, action or proceedings had been brought or taken. 14.2 Termination of this Agreement by the Licensee. A. The Licensee may terminate this Agreement at any time upon 180 days prior written notice to the City; provided that in the event of such early termination, no portion of the then current year's License Fee shall be refunded to the Licensee if that fee has already been paid to the City but if not already paid to the City then the Licensee shall only be required to pay the License Fee for the period ending on the effective date of such termination. The right of the City to collect the License Fee from the Licensee shall survive the early termination of this Agreement. B. If the Licensee and PG&E do not enter into the PG&E License or the PG&E License expires or terminates, the Licensee may terminate this Agreement, which termination shall be effective upon the receipt of notice of termination delivered to City. Section 15.0 RESERVED Section 16.0 NOTICES 16.1 All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments or designations hereunder to be given by either Party to the other, shall be in writing and shall be sufficiently given and served upon the other Party if (1) personally served on the City, (2) sent by United States Postal Service certified mail, postage, prepaid, or (3) sent by express delivery service. Personal service shall include, without limitation, service by delivery service. Delivery of notices properly addressed shall be deemed complete when the notice is physically delivered or upon refusal of delivery by the Real Property Manager or the City Clerk or by the Licensee. ATTACHMENT B Attachment B, Page 16 16.2 All notices issued pursuant to this Agreement shall be addressed as set forth below or as either Party may subsequently designate by written notice. TO: THE CITY TO: THE LICENSEE Real Property Manager PTI US Towers II, LLC CITY of Palo Alto c/o Phoenix Tower International Investments, LLC P.O. Box 10250 999 Yamato Road, Suite 100 250 Hamilton Avenue Boca Raton, Florida 33481 Palo Alto, CA 94303 Attention: US General Counsel (Site: US-CA-1195) With a copy to: City Clerk, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto, CA 94303 FAX: (650) 329-2646 And City Attorney, City of Palo Alto P.O. Box 10250 250 Hamilton Avenue Palo Alto CA 94303 FAX: (650) 329-2646 Section 17.0 ATTACHMENTS TO AGREEMENT 17.1 This Agreement includes the following exhibits, which are attached hereto and by this reference incorporated into this Agreement: Exhibit A – General Conditions Exhibit B - Description of Licensed Property Exhibit C-1 – Legal Description of the Premises Exhibit C-2 – Legal Description of the Access Easement Exhibit C-3 – Plans showing Tower 17.2 Exhibit A (GENERAL CONDITIONS) contains standard City general conditions applicable to this Agreement; in the event of a conflict between the foregoing clauses in this Agreement and the provisions of Exhibit A, the foregoing clauses shall take precedence. [Signatures Appear on the Following Page] ATTACHMENT B Attachment B, Page 17 ATTACHMENT B Attachment B, Page 18 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. THE CITY: THE LICENSEE: PTI US Towers II, LLC, a Delaware limited liability company __________________________ ______________________________ City Manager Name: Its: APPROVED AS TO FORM: __________________________ City Attorney ATTEST: RECOMMENDED FOR APPROVAL: ___________________________ _____________________________ City Clerk Real Property Manager ATTACHMENT B Attachment B, Page 19 EXHIBIT A GENERAL CONDITIONS 1. GENERAL: “City” also shall mean the Council of the City of Palo Alto. Clauses in this Agreement refer to specific officers or employees of the City. Should these positions be eliminated or the title changes, it is understood and agreed that such references shall be considered to be to the new title for renamed positions or to the replacement official designated with the responsibilities of any eliminated position. Any reference to a City officer or employee includes a reference to the officer's or employee's designated representative. 2. PARTNERSHIP/CORPORATE AUTHORITY & LIABILITY If the Licensee is a partnership, each general or limited partner: A. represents and warrants that the partnership is a duly qualified partnership authorized to do business in Santa Clara County; and B. shall be jointly and severally liable for performance of the terms and provisions of this Agreement. If the Licensee is a corporation, each individual signing this Agreement on behalf of the Licensee represents and warrants that; A. he is duly authorized to do so in accordance with an adopted Resolution of the Licensee's Board of Directors or in accordance with the Bylaws of the corporation; and B. The Licensee is a duly qualified corporation authorized to do business in State of California. 3. TIME Time is of the essence of this Agreement. 4. SIGNS The Licensee agrees not to construct, maintain, or allow any sign to be placed upon the Premises except as may be approved by the City. Unapproved signs, banners, etc., may be removed by the City. ATTACHMENT B Attachment B, Page 20 5. PERMITS AND LICENSES The Licensee shall be required to obtain any and all permits and/or licenses which may be required in connection with the operation of, and any approved Licensee construction upon, the Premises set forth in this Agreement. 6. MECHANICS LIENS The Licensee shall at all times indemnify and save the City harmless from all claims for labor or materials supplied to the extent arising from the Licensee’s construction, repair, alteration, or installation of structures, improvements, equipment, or facilities within the Premises, and from the cost of defending against such claims, including reasonable attorney fees. The Licensee shall provide the City with at least ten (10) days written notice prior to commencement of any work which could give rise to a mechanics lien or stop notice. Upon at least forty-eight (48) hours’ notice to the Licensee, the City reserves the right to enter upon the Premises for the purposes of posting Notices of Non-Responsibility; the Licensee may accompany the City’s representative during any such entry. In the event a lien is imposed upon the Premises as a result of such construction, repair, alteration, or installation by the Licensee, the Licensee shall either: A. Record a valid release of lien; or B. Deposit sufficient cash with the City to cover the amount of the claim on the lien in question and authorize payment to the extent of said deposit to any subsequent judgment holder that may arise as a matter of public record from litigation with regard to lienholder claim; or C. Procure and record a bond in accordance with Section 8424 of the Civil Code, which releases the Premises from the claim of the lien from any action brought to foreclose the lien. Should the Licensee fail to accomplish one of the three optional actions within the statutory period after the filing of such a lien, Licensee shall be deemed in breach of this Agreement and the City may terminate this Agreement according to the provisions of Section 14 of the Agreement. 7. ORGANIZATION AND RULES OF CONSTRUCTION Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Unless the context otherwise indicates, words importing the singular number shall include the plural number and vice versa, and words importing persons shall include corporations and associations, including public bodies, as well as natural persons. ATTACHMENT B Attachment B, Page 21 The terms "hereby", "hereof", "hereto", "herein", "hereunder" and any similar terms, as used in this Agreement, refer to this Agreement. All the terms and provisions hereof shall be construed to effectuate the purposes set forth herein, and to sustain the validity hereof. The titles and headings of the sections of this Agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall not in any way modify or restrict any of the terms of provisions hereof or be considered or given any effect in construing this Agreement or any provision hereof in ascertaining intent, if any question of intent shall arise. 8. AMENDMENTS This Agreement sets forth all of the agreements and understandings of the Parties and any modifications must be written and properly executed by both Parties. 9. UNLAWFUL USE The Licensee agrees that no improvements shall be erected, placed upon, operated, nor maintained within the Premises, nor any business conducted or carried on therein or therefrom, in violation of the terms of this Agreement, or of any regulation, order of law, statute, or ordinance of a governmental agency having jurisdiction over the Licensee’s use of the Premises. 10. NONDISCRIMINATION The Licensee and its employees shall not discriminate against any person because of race, color, religion, ancestry, age, sex, national origin, disability, sexual preference, housing status, marital status, familial status, weight or height of such person. The Licensee shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, sex, age, national origin, disability, sexual preference, housing status, marital status, familial status, weight or height of such person. The Licensee covenants that in all of the activities the licensee conducts or allows to be conducted on the Premises, the Licensee shall accept and enforce the statements of policy set forth in Palo Alto Municipal Code Section 9.73.010 regarding human rights and nondiscrimination. If the Licensee is found in violation of the provisions of Palo Alto Municipal Code Section 9.73.010 by a court or administrative body of competent jurisdiction or in violation of the nondiscrimination provision of the State of California Fair Employment Practices Act or similar provisions of federal law or executive order in the conduct of its activities under this Agreement by the State of California Fair Employment Practices Commission or the equivalent federal agency or officer, it shall thereby be found in default under this Agreement, and such default shall constitute a material breach of this Agreement. The City shall then have the power to cancel or suspend this Agreement in whole or part. ATTACHMENT B Attachment B, Page 22 11. INSPECTION The City’s employees and agents shall have the right at all reasonable times to inspect the Premises to determine if the provisions of this Agreement are being complied with provided that reasonable prior written notice has been provided to the Licensee, according to Section 16 of the Agreement, to allow the Licensee to accompany any such inspection. Notwithstanding the foregoing, the City shall not, and shall not have the right to, touch or otherwise interfere with any of the licensee’s equipment, fixtures, or improvements located within the Premises. 12. HOLD HARMLESS The Licensee agrees to indemnify, hold harmless and defend the City, its officers, agents and employees against any and all claims, liability, demands, damages and costs (including reasonable attorneys' fees (collectively, the “Claims”) to the extent arising out of the negligence, recklessness or willful misconduct of the Licensee except to the extent such Claims are caused by the negligence, recklessness or willful misconduct of the City, its officers, agents, contractors and/or employees. 13. TAXES AND ASSESSMENTS This Agreement may create a possessory interest which is subject to the payment of taxes levied on such interest. It is understood and agreed that all taxes and assessments (including but not limited to the possessory interest tax) which become due and payable upon the Premises or upon the Licensee’s fixtures, equipment, or other property installed or constructed thereon by the Licensee, shall be the full responsibility of the Licensee and the Licensee shall pay the taxes and assessments prior to delinquency. 14. SUCCESSORS IN INTEREST Unless otherwise provided in this Agreement, the terms, covenants, and conditions contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of all the Parties hereto. 15. CIRCUMSTANCES WHICH EXCUSE PERFORMANCE (FORCE MAJEURE) If either Party hereto shall be delayed or prevented from the performance of any act required hereunder by reason of acts of God, restrictive governmental laws or regulations, or other cause without fault and beyond the control of the Party obligated (financial inability excepted), performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. 16. PARTIAL INVALIDITY ATTACHMENT B Attachment B, Page 23 If any term, covenant, condition, or provision of this Agreement is determined to be invalid, void, or unenforceable, by a court of competent jurisdiction, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby. 17. WAIVER OF RIGHTS The failure of the City or the Licensee to insist upon strict performance of any of the terms, covenants, or conditions of this Agreement shall not be deemed a waiver of any right or remedy that either Party may have, and shall not be deemed a waiver of the right to require strict performance of all the terms, covenants, and conditions of the Agreement thereafter, nor a waiver of any remedy for the subsequent breach or default of any term, covenant, or condition of this Agreement. 18. COSTS OF SUSTAINING AN ACTION FOR BREACH OR DEFAULT In the event either Party commences legal action against the other Party claiming a breach or default of this Agreement, the prevailing Party in such litigation shall be entitled to recover from the other cost of sustaining such action, including reasonable attorney fees, as may be fixed by the court. 19. RESERVATIONS TO CITY The Premises are accepted "as is" and "where is" by the Licensee subject to any and all existing easements, and Encumbrances. The City reserves the right to install, lay, construct, maintain, repair, and operate such sanitary sewers, drains, storm water sewers, pipelines, manholes, and connections; water, oil, and gas pipelines; telephone and telegraph power lines; and the applications and appurtenances necessary or convenient for connection therewith, in, over, upon, though, across and along the Premises. Notwithstanding anything to the contrary contained here, no right reserved by the City in this clause shall be so exercised as to interfere unreasonably with the Licensee’s operation hereunder. The City agrees that rights granted to third parties by reason of this clause shall contain provisions that the surface of the land shall be restored as nearly as practicable to the original condition upon the completion of any construction. 20. HOLDING OVER In the event the Licensee shall continue in possession of the Premises after the expiration or earlier termination of this Agreement, such possession shall not be considered a renewal of this Agreement but a tenancy from month to month and shall be governed by the conditions, and covenants contained in this Agreement. ATTACHMENT B Attachment B, Page 24 21. CONDITION OF PREMISES UPON TERMINATION Upon termination of this Agreement, except as otherwise agreed to herein, the Licensee shall redeliver possession of the Premises to the City in substantially the same condition that existed immediately prior to the Licensee’s occupancy, reasonable wear and tear, flood, earthquake, war, and any act of war or other casualty beyond the control of the Licensee excepted. 22. DISPOSITION OF ABANDONED PERSONAL PROPERTY If the Licensee abandons the Premises, as defined by applicable law, or is dispossessed thereof by process of law or otherwise, title to any personal property belonging to the Licensee and left on the Premises for at least forty-five (45) days after such abandonment or dispossession shall be deemed to have been transferred to the City. The City shall have the right to remove and to dispose of such property without liability therefor to the Licensee or to any person claiming under the Licensee, and shall have no need to account therefor. 23. RELINQUISMENT OF THE LICENSEE'S INTEREST UPON TERMINATION Upon termination of this Agreement for any reason, including but not limited to termination because of default by the Licensee, the Licensee shall, at the City’s request execute, acknowledge and deliver to the City within thirty (30) days after receipt of written demand thereof, a written document, signed by an official recognized under Section 313 of the California Corporations Code, certifying the Licensee’s relinquishment of the Premises. Should the Licensee fail or refuse to deliver the required certification to the City, and the Parties are not then in any dispute or in disagreement regarding termination of this Agreement or an event of breach or default hereunder, the City may prepare and record a notice reciting the failure of the Licensee to execute, acknowledge and deliver such certification and the notice shall be conclusive evidence of the termination of this Agreement, and of all right of the Licensee or those claiming under the Licensee in and to the Premises. 24. CITY'S RIGHT TO RE-ENTER The Licensee agrees to yield and peaceably deliver possession of the Premises to the City after the removal period described in Section 8.1. Upon giving written notice of termination to the Licensee, the City shall have the right to re-enter and take possession of the Premises after the removal period described in Section 8.1. Termination of the Agreement and re-entry of the Premises by the City shall in no way alter or diminish any obligation of the Licensee under the Agreement terms and shall not constitute an acceptance or surrender. The Licensee waives any and all rights of redemption under any existing or future law or statute in the event of eviction from or dispossession of the Premises for any reason or in the event the City ATTACHMENT B Attachment B, Page 25 re-enters and lawfully re-takes possession of the Premises. 25. CONFLICT OF INTEREST The Licensee warrants and covenants that no official or employee of the City nor any business entity in which any official or employee of the City is interested: (1) has been employed or retained to solicit or aid in the procuring of this Agreement to Licensee’s reasonable knowledge; or (2) will be employed in the performance of this Agreement without the divulgence of such fact to the City. In the event that the City determines that the employment of any such official, employee or business entity is not compatible with such official's or employee's duties as an official or employee of the City, the Licensee upon request of the City shall immediately terminate such employment. Violation of this provision constitutes a serious breach of this Agreement and the City may terminate this Agreement as a result of such violation. 26. EMINENT DOMAIN In the event the whole or any part of the Premises is condemned by a public entity in the lawful exercise of its power of eminent domain, this Agreement shall cease as to the part condemned. The date of such termination shall be the effective date of possession of the whole or part of the Premises by the condemning public entity. The City shall be entitled to and shall receive all compensation related to the condemnation of all or part of the Premises by the exercise of eminent domain. 27. [Intentionally deleted.] 28. POST-ACQUISITION LICENSE The Licensee hereby acknowledges that its occupancy of the Premises is subsequent to acquisition of the Premises by the City. The Licensee further understands and agrees that as a post- acquisition licensee, the Licensee is not eligible and furthermore waives all claims for relocation assistance and benefits under federal, state or local law. 29. HAZARDOUS SUBSTANCES A. Definition. As used herein, the term "Hazardous Materials" means any substance or material which has been determined by any state, federal or local governmental authority to be capable of posing risk of injury to health, safety, and property, including petroleum and petroleum products and all of those materials and substances designated as hazardous or toxic by the U.S. Environmental Protection Agency, the California Water Quality Control Board, the U.S. Department of Labor, the California Department of Industrial Relations, the California Department of Health Services, the California Health and Welfare Agency in connection with the ATTACHMENT B Attachment B, Page 26 Safe Water and Toxic Enforcement Act of 1986, the U.S. Department of Transportation, the U.S. Department of Agriculture, the U.S. Consumer Product Safety Commission, the U.S. Department of Health and Human Services, the U.S. Food and Drug Administration or any other governmental agency now or hereafter authorized to regulate materials and substances in the environment. Without limiting the generality of the foregoing, the term "Hazardous Materials" shall include all of those materials and substances defined as "toxic materials" in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 20, as the same may be amended from time to time. B. USE OF PREMISES. During the Term, the Licensee shall abide and be bound by all of the following requirements: 1. The Licensee shall comply with all laws now or hereafter in effect relating to the use of Hazardous Materials on, under or about the Premises, and the Licensee shall not contaminate the Premises, or its subsurfaces, with any Hazardous Materials in violation of applicable law. 2. The Licensee shall restrict its use of Hazardous Materials at the Premises to those kinds of materials that are normally used in constructing and operating communications facilities. Disposal of any Hazardous Materials at the Premises are strictly prohibited. Storage of such permissible Hazardous Materials is allowed only in accordance with all applicable laws now or hereafter in effect. All safety and monitoring features of any storage facilities shall be approved by the City’s Fire Chief in accordance with all laws. 3. The Licensee shall be solely and fully responsible for the reporting of all Hazardous Materials releases to the appropriate public agencies, when such releases are caused by or result from the Licensee’s activities at the Premises. The Licensee shall immediately inform the City of any release of Hazardous Materials, whether or not the release is in quantities that would otherwise be reportable to a public agency. 4. The Licensee shall be solely and fully responsible and liable for any such releases which are caused by the Licensee at the Premises, or into the City’s sewage or storm drainage systems. The Licensee shall take all necessary precautions to prevent any of its Hazardous Materials from entering into any storm or sewage drain system or from being released on the Premises. The Licensee shall remove releases of its Hazardous Materials in accordance with all laws. In addition to all other rights and remedies of the City hereunder, if the release of Hazardous Materials caused by the Licensee is not removed by the Licensee or the Licensee has not commenced removal ATTACHMENT B Attachment B, Page 27 within ninety (90) days after the Licensee’s receipt of written notice from the City or any other third party, the City may pay to have the same removed and the Licensee shall reimburse the City for such costs within thirty (30) days of the City’s demand for payment. 5. The City represents that it has no knowledge of any Hazardous Materials on or under the Premises or the Property. The Licensee will not introduce or use any such substance at the Premises in violation of any applicable law. The City shall indemnify and hold the Licensee harmless from and against all claims, actions, damages, fines, liabilities, costs and expenses (including attorneys’ and expert fees) arising, directly or indirectly, from the deposit of any Hazardous Materials on or under the Property or the Premises, unless said materials were actually deposited on the Property or the Premises by the Licensee. This obligation to indemnify the Licensee shall include damages, costs and expenses incurred in connection with any investigation, cleanup, remediation, monitoring, removal or restoration related to the presence of any substance. This indemnity shall survive the expiration or termination this Agreement. The Licensee shall indemnify and hold harmless the City from and against all claims, actions, damage, fines, liabilities, costs and expenses (including attorneys’ and expert fees) arising, directly or indirectly, from the deposit by the Licensee of any Hazardous Materials on or under the Property or the Premises during the Term, unless said materials were actually deposited onto the Property or the Premises by the City; provided however, that this indemnity shall not apply to claims, actions, damages, fines, liabilities, costs and expenses, (including attorneys’ and expert fees) arising from acts or omissions by third parties. This obligation to indemnify by either Party shall include damage, costs and expenses incurred in connection with any investigation, cleanup, remediation, monitoring, removal or restoration related to the presence of any substance. This indemnity shall survive the expiration or termination of this Agreement. 6. Each Party’s obligations under this Clause shall survive the expiration or earlier termination of this Agreement. 30. ALL COVENANTS ARE CONDITIONS All provisions of the Agreement are expressly made conditions. 31. PARTIES OF INTEREST Nothing in this Agreement, expressed or implied, is intended to, or shall be construed to, confer upon or to give to any person or party other than the City and the Licensee the covenants, ATTACHMENT B Attachment B, Page 28 condition or stipulations hereof. All covenants, stipulations, promises and agreements in this Agreement shall be for the sole and exclusive benefit of the City and the Licensee. 32. INTERFERENCE The Licensee agrees to install equipment of the type and frequency which will not cause harmful interference which is measurable in accordance with then-existing industry standards to any equipment of the City or other licensees of the Property which existed on the Property prior to the date this Agreement is executed by the Parties. In the event any after-installed the Licensee’s equipment causes such interference, and after the City has notified the Licensee in writing of such interference, the Licensee will take all commercially reasonable steps necessary to correct and eliminate the interference, including but not limited to, at the Licensee’s option, powering down such equipment and later powering up such equipment for intermittent testing. In no event will the City be entitled to terminate this Agreement or relocate the equipment as long as the Licensee is making a good faith effort to remedy the interference issue. The City agrees that the City and/or any other licensees or tenants of the Property who in the future take an interest in the Property will be permitted to install only such equipment that is of the type and frequency which will not cause harmful interference which is measurable in accordance with then-existing industry standards to the then-existing equipment of the Licensee. The Parties acknowledge that there will not be an adequate remedy at law for noncompliance with the provisions of this Section and therefore, either Party shall have the right to equitable remedies, such as, without limitation, injunctive relief and specific performance. ATTACHMENT B Attachment B, Page 29 EXHIBIT B LEGAL DESCRIPTION OF THE PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALO ALTO, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: Beginning at a concrete highway monument set on the Southwesterly line of El Camino Real (State Highway) opposite engineer’s station 144+27.00 as surveyed by the California division of Highways as said Southwesterly line was established by that decree in condemnation, a certified copy of which decree was filed for record in the office of the Recorder of the County of Santa Clara, State of California on July 07, 1930 in Book 520 of Official Records, at Page 571; said monument also marks the point of intersection of said Southwesterly line with the Southeasterly line of that certain 1289 acre tract of land described in the deed from Evelyn C. Crosby, et al, to Leland Stanford, dated September 08, 1885 recorded in Book 80 of Deeds, Page 382, Santa Clara County Records; running thence North 56° 39’ West along said Southwesterly line of El Camino Real, for a distance of 2784.83 feet; thence leaving said line of El Camino Real South 33° 21 West 2175.49 feet; thence South 33° 21’ West 2175.49 feet; thence South 56° 26’ 07” East 305.53 feet; thence South 33° 36’ 20” West 148.13 feet to the true point of beginning of the tract of land to be described; thence from said true point of beginning South 56° 23’ 40” East 125.00 feet; thence South 33° 36’ 20” West 175.00 feet to a point on the Northeasterly line of Hanover Street, as said line was established in the easement deed executed by and between the Board of Trustees of the Leland Stanford Junior University and the City of Palo Alto, dated October 05, 1956, recorded November 14, 1956 in Book 3656 Official Records, Page 424, Santa Clara County Records; thence North 56° 23’ 40” West along said Northeasterly line of Hanover Street, 190.00 feet; thence North 33° 36’ 20” East 323.08 feet; thence South 56° 26’ 07” East 65.00 feet; thence South 33° 36’ 20” West 148.13 feet to the true point of beginning. Tax Parcel No. 142-20-002 ATTACHMENT B Attachment B, Page 30 EXHIBIT C-1 LEGAL DESCRIPTION OF THE PREMISES ATTACHMENT B Attachment B, Page 31 EXHIBIT C-2 LEGAL DESCRIPTION OF THE ACCESS EASEMENT ATTACHMENT B Attachment B, Page 32 EXHIBIT C-3 EXISTING ANTENNA CONFIGURATIONS (Attached hereto) City of Palo Alto (ID # 10733) City Council Staff Report Report Type: Consent Calendar Meeting Date: 12/9/2019 City of Palo Alto Page 1 Summary Title: Approval of Contract Extension for Watershed Protection Outreach Services Title: Approval of Amendment Number 2 to Contract Number S16161854 With Tandem Creative Inc. for Graphic Design and Public Outreach Services to Extend the Contract Term With No Increase in Maximum Compensation From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute Amendment No. 2 to Contract No. S16161854 with Tandem Creative Inc. (Attachment A) for graphic design and public outreach services to extend the contract term to June 2, 2020 with no increase in maximum compensation. Background The City is required to implement pollution prevention and outreach programs for residents, businesses, and industry to reduce the quantity of pollutants that enter the sanitary sewer and storm drain systems. Outreach services are required by both the Municipal Regional Stormwater Permit and the National Pollution Discharge Elimination System (NPDES) Permit. On March 10, 2016, the City executed Contract S16161854 (Attachment B) with Tandem Creative Inc. (Tandem) to provide graphic design and public outreach services for Public Works– Watershed Protection. On February 5, 2019, Amendment No. 1 to the Contract (Attachment C) extended the contract term six months to September 9, 2019. This extension allowed staff to continue progress on the existing workplan using the remaining budget. Discussion Staff recommends that Council approve Contract Amendment No. 2 for a second extension with Tandem to June 2, 2020. This extension would use existing budget and would not require additional funds. This extension is essential to avoid disruption to graphic design services that support the daily outreach operations of four workgroups in the Public Works-Watershed Protection division. This extension is also particularly important for the timely completion of the Clean Bay Plan annual report due in early 2020, a requirement of the City’s NPDES Permit. City of Palo Alto Page 2 Staff will undertake a competitive solicitation process for graphic design and outreach services that will result in a new three-year contract when the solicitation process is completed, anticipated in early 2020. Resource Impact This contract amendment extends the term of the contract only and does not impact funding. Policy Implications Authorization of this amendment does not represent a change in existing policies. Stakeholder Engagement Stakeholder engagement is not applicable to this contract amendment. Environmental Review The adoption of this amendment is not a project and is not subject to environmental review under provisions of the California Environmental Quality Act (CEQA). Attachments:  Attachment A-Tandem Creative Inc. Contract Amendment 2  Attachment B-Tandem Creative Inc. Contract S16161854  Attachment C-Tandem Creative Inc. Contract Amendment 1 Vers.: Aug. 5, 2019 Page 1 of 3 AMENDMENT NO. TWO TO CONTRACT NO. S16161854 BETWEEN THE CITY OF PALO ALTO AND TANDEM CREATIVE, INC. FOR PROFESSIONAL SERVICES This Amendment No. Two (this “Amendment”) to Contract No. S16161854 (the “Contract” as defined below) is entered into as of December 2, 2019, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Tandem Creative Inc., a California Corporation, located at 4083 24th Street #460609, San Francisco, CA 94246 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto in 2016 for the provision of services to assist the CITY’s Watershed Protection staff with developing integrated outreach strategies materials, as detailed therein. B. The Contract was first amended by amendment dated February 5, 2019 to extend the term through September 9, 2019. C. The Parties now wish to amend the Contract to further extend the term to June 2, 2020 in order to continue progress on existing workplan, with no increase in maximum compensation as sufficient budget is available under the Contract as originally approved. 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. S16161854 between CONSULTANT and CITY, dated March 10, 2016, as amended by: Amendment No.1, dated February 5, 2019 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 June 2, 2020 unless terminated earlier pursuant to Section 19 of this Agreement.” DocuSign Envelope ID: 5D8168F6-C55D-4CF6-A523-B01F973B52FA Vers.: Aug. 5, 2019 Page 2 of 3 SECTION 3. 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 4. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: 5D8168F6-C55D-4CF6-A523-B01F973B52FA Vers.: Aug. 5, 2019 Page 3 of 3 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager or designee APPROVED AS TO FORM: City Attorney or designee TANDEM CREATIVE, INC. Officer 1 By: Name: Title: Attachments: None DocuSign Envelope ID: 5D8168F6-C55D-4CF6-A523-B01F973B52FA CEO, Executive Director GREGORY HOLZBAUR Professional Services Rev. February 26, 2016 CITY OF PALO ALTO CONTRACT NO. S16161854 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND TANDEM CREATIVE, INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this 10th day of March, 2016, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and TANDEM CREATIVE, INC., a California corporation, located at 4083 24th Street #460609, San Francisco, CA 94246 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to develop and administer a series of pollution prevention and outreach programs (“Project”) and desires to engage a consultant to assist in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, 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. DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through March 9, 2019 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 eighty four thousand Dollars ($84,000.00) per contract year. 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 eighty four thousand Dollars ($84,000.00) per contract year. 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 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of 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 DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 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 Gregory Holzbaur as the Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Julie Weiss, Public Works Department, Environmental Compliance Division, 2501 Embarcadero Way, Palo Alto, CA 94303, Telephone: 650-329-2117. 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 DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 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 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 DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 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. MISCELLANEOUS PROVISIONS. 26.1. This Agreement will be governed by the laws of the State of California. 26.2. 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, DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 State of California. 26.3. 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. 26.4. 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. 26.5. 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. 26.6. 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. 26.7. 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. 26.8 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. 26.9 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. 26.10 All unchecked boxes do not apply to this agreement. 26.11 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. 26.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 CITY OF PALO ALTO ____________________________ Purchasing Manager (Required on contracts over $25,000) APPROVED AS TO FORM: __________________________ Deputy City Attorney (Required on Contracts over $25,000) TANDEM CREATIVE, INC. 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 DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 CEO, Executive Director GREGORY HOLZBAUR Professional Services Rev. February 26, 2016 EXHIBIT “A” SCOPE OF SERVICES BACKGROUND: To fulfill its responsibilities as an operator of the Regional Water Quality Control Plant (RWQCP), and as a co-permittee in the Santa Clara Valley Nonpoint Source Pollution Control Program, the City of Palo Alto is required to develop and administer a series of pollution prevention and outreach programs targeting residents, businesses and industry to reduce the quantity of pollutants entering the sewer and storm drain systems. Outreach is directed by City of Palo Alto staff within the Public Works Environmental Services Division/Watershed Protection for the RWQCP. The RWQCP is owned and operated by the City of Palo Alto, but is funded by and provides service to its six partner agencies: East Palo Alto Sanitary District, Los Altos, Los Altos Hills, Mountain View, Palo Alto, and Stanford. Because lower South San Francisco Bay has been listed as an impaired water body, the RWQCP public outreach program must be effective and search for new opportunities to inspire behavior change in target groups. I. Scope of Services Task 1–Develop Integrated Outreach Strategies and Materials Examples of RWQCP audiences include: residents regarding less-toxic pest control and correct disposal of pesticides, pharmaceuticals, mercury-containing products, vehicle fluids and other potential water pollutants; businesses and industry regarding plastics elimination, expanded use of recycled water for irrigation and toilet flushing and environmental compliance requirements; other government agencies that the City collaborates with to achieve water pollution prevention goals. CONSULTANT shall assist Watershed Protection with developing integrated outreach strategies and materials for audiences primarily within the RWQCP service area. Specifically the consultant shall: a) Develop an annual outreach plan with the City’s project manager at the start of each calendar year incorporating traditional and social media. The consultant shall assist City staff in strategizing how to reach RWQCP service area target audiences and leveraging the annual advertising budget of $25,000; b) CONSULTANT shall create traditional outreach materials and provide graphic design services to include: i) Utility bill inserts, print and digital ads, factsheets, newspaper articles, Op- Ed pieces, displays, brochures; ii) Formatting and design for annual reports; iii) Promotional items for schools, special events, and businesses; iv) Customized illustrations and artwork for a variety of formats (displays, brochures); DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 v) High-resolution photographs with a regional context (e.g., local wildlife, Bay habitats); vi) Images, charts and graphs clearly explaining complicated information or a compelling call to action; vii) Videos and animated images for theater and online advertising; viii) Movie making including story and script development, animation and graphics; ix) Online games; c) CONSULTANT shall coordinate with outside printers and in-house City of Palo Alto copying services. Any artwork designed for this contract shall become the property of the City of Palo Alto. Task 2– Advertising Administration The CONSULTANT shall assume administrative responsibilities for the placement and payment of advertising. The CONSULTANT shall: a) Establish $25,000 of the total contract amount (to be added to the consultants contract service amount) for advertising in local theaters, papers, Facebook, web banners and other venues; b) Receive approval for all ads and ad scheduling by the City’s project manager before placement; c) Interact with advertising venues to schedule and confirm ad placement and duration of run d) Ensure accurate billing and timely payment; e) Provide a balance of the advertising budget and current contract balance with each billing cycle and copies of paid invoices itemizing where ad placement occurred; f) Upon request, the CONSULTANT shall provide a detailed report on ad placement in each outreach venue listing which ads ran, total run dates and cost; g) Upon request, CONSULTANT shall place ads and/or utilize creative materials not designed by the consultant for outreach material production as needed. Administrative fees for placement of these ads shall not exceed those that are for ads designed by the CONSULTANT. g) The cost of printing materials shall be covered by the CITY unless otherwise negotiated between CITY and CONSULTANT. Task 3–Web Content CONSULTANT shall assist RWQCP staff as needed in developing and maintaining web content for its website www.cleanbay.org and may include creative elements including photographs (including original photography, if needed), graphics, charts and other elements. These services are applied to www.cleanbay.org which serves the RWQCP service area. Staff maintains the website. Significant design changes for the website may be requested of the consultant who will work with the RWQCP and City of Palo Alto IT staff. www.cleanbay.org. Task 4– Media Relations The consultant shall: DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 work closely with RWQCP staff to cultivate relationships with media within its service area with the goal of increasing local media coverage about water pollution prevention. Because the RWQCP’s service area is confined to a small geographic location outreach strategies and media contacts must be appropriately targeted and timed to avoid conflict with other Bay Area agency pollution prevention programs and to complement regional media and outreach efforts. a) work with staff to develop and maintain a comprehensive outreach resource list that includes local community newsletters and outreach opportunities specific to the RWQCP service area. Task 5–Language Translations The consultant shall provide print and audio language translations for Spanish, Korean, Cantonese and other languages as needed. III. Environmentally Preferable Practices and Green Business Certification The City is a Santa Clara County Certified Green Business. The City encourages the businesses it works with to adopt environmentally preferable practices. It is expected that for printing materials the consultant will: a) specify at least 30% post consumer recycled content paper and preferably 100% post-consumer content processed chlorine-free. b) place the recycled-content logo and paper specifications (e.g., “Printed on 100% post-consumer recycled content, process chlorine free paper”) on all printed materials. DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 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. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. Task 1–Develop integrated outreach strategies and materials CONSULTANT shall develop 2016-17 Outreach Plan with City’s Project Manager by May 1, 2016 Task 2– Advertising administration. CONSULTANT shall: a) provide an advertising schedule for approval for each campaign within ten days of request by the CITY’s project manager (unless agreed to otherwise); b) Assume monthly administrative responsibilities for the timely placement and payment of advertising. Task 3–Website content CONSULTANT shall provide technical and creative services for cleanbay.org as needed by the date mutually agreed by CONSULTANT and CITY’S Project Manager for each campaign. Task 4– Media relations CONSULTANT shall provide media relations services as specified by the RWQCP outreach plan by the date mutually agreed by CONSULTANT and CITY’S Project Manager. Task 5–Language translations CONSULTANT shall provide print and audio language mutually agreed by CONSULTANT and CITY’S Project Manager at the time of the requested translation. DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 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 Schedule of rates attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Services”) and reimbursable expenses do not exceed the amounts set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed the amounts set forth in Section 4 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. 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. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 EXHIBIT “C-1” SCHEDULE OF RATES description rate Basis rate blended Rate Per hour $110 creative direction Per hour $130 graphic design Per hour $100 Project management Per hour $90 copywriting Per hour $90 Proofreading Per hour $90 branding/identity development Per hour $100 Web design/development Per hour $130 Web maintanence Per hour $100 twitter maintenance Per hour $90 app design/development Per hour $130 e-newsletter design Per hour $100 eblast design Per hour $100 eblast campaign management Per hour $100 Facebook advertising design Per hour $100 Online ad design Per hour $100 advertising; media Planning/buy Per hour $100 infographic design Per hour $100 Powerpoint design Per hour $100 custom Photography/art direction Per hour $150 stock Photos (Royalty-free) Per photo $25 each stock Photos (Rights-managed) Per photo tbd Photo editing Per hour $90 illustration Per hour $100 mechanical Production Per hour $90 Press check/Review Print Proofs Per hour $90 travel/mileage Rate Per hour tbd translation services Per word (1 hr minimum $0.50 Web audit/evaluation Per hour $110 movie development (story/script creation, animation graphics) Per hour $150 multi-cultural marketing (adapting campaigns to address the interested of various community groups) Per hour $93 bill insert creation Per bill insert $1,500 DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 EXHIBIT “C-1” SCHEDULE OF RATES CONTINUED Campaign campaign strategy Per campaign $5,000 multicultural design (tandem to adapt approved campaign concept look and feel to target various community groups) Per campaign $1,500 advertising Per campaign $5,000* bill insert Per bill insert $1,500 Posters Per poster $2,500 Web design Per hour $130 movie Per movie $10,000– social media Per campaign $5,500* other Facebook ad development Per page $2,000–$3,000 clean bay Plan document approx.34 pages $2,500 Program Flyer Per flyer $1,000 Program Pamphlet Per pamphlet $2,000 informational magnet Per magnet $750* *Final cost to be determined based on individual campaign and project needs DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 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 NO 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. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 Professional Services Rev. February 26, 2016 THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 DocuSign Envelope ID: 1C2BF3A5-34F0-4967-B6A1-4EF8A1AC9714 1 Revision July 20, 2016 AMENDMENT NO. ONE TO CONTRACT NO. S16161854 BETWEEN THE CITY OF PALO ALTO AND TANDEM CREATIVE, INC. FOR PROFFESIONAL SERVICES This Amendment No. One to Contract No. S16161854 (“Contract”) is entered into February 5, 2019 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Tandem Creative Inc., a California Corporation located at 4083 24th Street #460609, San Francisco, CA 94246 (“Consultant”). CITY and CONSULTANT are referred to herein collectively as the “Parties.” R E C I T A L S A. The Contract was entered into on March 10, 2016 between the Parties for a three- year term for the provision of services to assist the CITY’s Watershed Protection staff with developing integrated outreach strategies materials. B. The parties wish to amend the Contract to extend the term to September 9, 2019. C. There are additional work efforts within the Contract’s scope of services that CITY would like Consultant to perform and sufficient budget is available under the Contract to continue progress on that existing workplan for an additional six months. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. 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 9, 2019 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. DocuSign Envelope ID: 038C39FC-303A-4104-89DF-98F5AE8A68B3 2 Revision July 20, 2016 IN WITNESS WHEREOF, the Parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO ____________________________ Chief Procurement Officer APPROVED AS TO FORM: _____________________________ City Attorney or designee TANDEM CREATIVE, INC. By:___________________________ Name:_________________________ Title:________________________ DocuSign Envelope ID: 038C39FC-303A-4104-89DF-98F5AE8A68B3 Executive Director GREGORY HOLZBAUR City of Palo Alto (ID # 10801) City Council Staff Report Report Type: Consent Calendar Meeting Date: 12/9/2019 City of Palo Alto Page 1 Summary Title: Approval of Amendment Number 2 to the Maintenance Agreement with PAUSD to Add 2 Years to the Term Title: Approval of Amendment Number 2 to the Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost-sharing to Extend the Term to December 2021 with an Optional Mutual Extension for an Additional Two Years From: City Manager Lead Department: Community Services Recommendation Staff recommends that City Council approve and authorize the City Manager to execute Amendment No. 2 to the Agreement Concerning Field and Court Use, Brokering, and Maintenance with Palo Alto Unified School District (PAUSD) to extend the term to December 31, 2021 with an option for a mutual extension of an additional two years. (Attachment A). Background In 1993, the City and PAUSD met to discuss maintenance needs of school district athletic fields considering school district budget constraints and continued public use of school district fields. An agreement between the City and PAUSD was entered into in 1995 for the City to maintain select PAUSD athletic fields for both school and community use with both parties contributing an equal cost share. The agreement also included an equal cost share for capital improvements to athletic fields. The agreement has since been revised several times and no longer includes a cost share for capital improvements. The cost of capital improvements is now fully incurred by PAUSD. The agreement encompasses the maintenance and brokering of the athletic fields at 13 elementary schools and three middle schools, and tennis courts at five PAUSD schools. The City manages the brokering of PAUSD athletic fields and tennis courts for public community use outside of school activity hours. Revenue is shared between both parties with the City retaining 60% and PAUSD retaining 40% of revenue. Discussion City of Palo Alto Page 2 City and PAUSD staff worked collaboratively to extend the current agreement with no change to the existing terms for cost and revenue sharing. Amendment No. 2 retains the same scope of work and service level performed by City staff. The maintenance costs are shared equally between the City and PAUSD. The revenue share remains at 60% to City and 40% to PAUSD. The total shared revenue in calendar year 2018 was $62,192 with the City retaining $37,315 representing a 60% share. PAUSD retained $24,877 representing a 40% share. The attached amendment will extend the existing agreement to December 31, 2021 (with a mutual option to extend for an additional two years through December 31, 2023). The amendment provides for the continued maintenance of school district fields at all PAUSD elementary schools, as well as the fields at Jane Lathrop Stanford (JLS) and Frank S. Greene, Jr. (Greene) Middle Schools. Greene Middle School was previously named Jordan Middle School. The maintenance of turf areas includes mowing, edging, de-thatching, reseeding, aeration, and maintenance of irrigation heads, valves, and controllers. The fields at Ellen Fletcher (Fletcher) Middle School (formerly named Terman) are not part of this agreement as these fields are dedicated parkland (Terman Park) and are maintained in a manner consistent with City park maintenance standards. The agreement also provides for the maintenance of tennis courts and basketball courts at JLS, Greene, and Fletcher Middle Schools, and at Henry M. Gunn and Palo Alto High Schools. This work includes periodic sweeping of the court surfaces and washing during the summer months. The City will continue to broker the fields, tennis courts, and basketball courts in accordance with the Council-approved Field Use Policy. This policy is intended to ensure residents, both youth and adults, have fair access to PAUSD and City-owned fields and athletic facilities. The criteria incorporated into the Field Use Policy helps ensure Palo Alto youth and non-profit sports clubs have top priority access to field space for practice and competition. The City places a high priority on the maintenance and safety of school playing fields to ensure the community has access to athletic fields and courts for physical fitness and recreation. This agreement will continue the City’s commitment to provide quality turf and court surfaces. Resource Impact This amendment extends the terms of the existing agreement for 24 months and brings PAUSD reimbursement into alignment with the City’s anticipated costs to perform these services. The full cost for field maintenance over the course of the amendment is $1.7 million, with PAUSD reimbursing the City for half of the cost, and the anticipated annual cost to the City after reimbursement is approximately $425,000. The amendment maintains the level and scope of services and cost share of actual expenses. The only financial impacts to the City from this action are the result of updated labor costs for City of Palo Alto Page 3 continuing these services, which were included in the FY 2020 Operating Budget. Funding for subsequent years of the agreement is subject to appropriation of funds through the annual budget process. Stakeholder Engagement City and PAUSD staff met to review prior performace under the agreement and have a mutual interest in continuing this collaboration. Field maintenance matters are addressed between field operation managers of both parties on a regular basis. Environmental Review This amendment is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to section 15301 (existing facilities) of the CEQA guidelines. Attachments: • Attachment A - Field Maintenance Amendment 2 AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE PALO ALTO UNIFIED SCHOOL DISTRICT OF SANTA CLARA COUNTY CONCERNING THE PUBLIC USE, BROKERING AND MAINTENANCE OF DISTRICT-OWNED ATHLETIC FIELDS, TENNIS COURTS AND BASKETBALL COURTS JOINTLY USED BY SCHOOL STUDENTS AND THE GENERAL PUBLIC This Amendment No. 2 to the “Agreement Between The City Of Palo Alto And The Palo Alto Unified School District Of Santa Clara County Concerning The Public Use, Brokering And Maintenance Of District-Owned Athletic Fields, Tennis Courts And Basketball Courts Jointly Used By School Students And The General Public” (“Contract”) is entered into December ____, 2019, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (the “CITY”) and the PALO ALTO UNIFIED SCHOOL DISTRICT OF SANTA CLARA COUNTY, a unified school district organized and existing under the Laws of the State of California (the “DISTRICT”) (individually, a “Party” and, collectively, the “Parties”), in reference to the following facts and circumstances: R E C I T A L S A. The Contract was entered into between the Parties on or about January 1, 2014 for the use, maintenance, and related cost-sharing of District-owned athletic fields and courts. B. The Parties intend to extend the Contract through December 31, 2021 with an optional mutual extension of an additional 24 months. C. The Parties wish to amend the Contract for the purposes described herein. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract titled “Agreement Between The City Of Palo Alto And The Palo Alto Unified School District Of Santa Clara County Concerning The Public Use, Brokering And Maintenance Of District-Owned Athletic Fields, Tennis Courts And Basketball Courts Jointly Used By School Students And The General Public” between DISTRICT and CITY, dated January 1, 2014 as amended by: Amendment No.1, dated June 25, 2018 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. Subsection 2.1 of Section 2 TERM AND TERMINATION of the Contract is hereby amended to read as follows: 2.1 The term of this Agreement will commence at 6:00 a.m. on January 1, 2014, and end on December 31, 2021, subject to the earlier termination of this Agreement by any Party hereto upon ninety (90) days’ advance written notice. The preceding sentence notwithstanding, this Agreement is subject to the fiscal provisions of the Charter of the CITY and other Laws of the CITY and the DISTRICT, and this Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated by the Council or Board of Education for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are not appropriated by the Council or Board of Education for a portion of the fiscal year and funds for this Agreement are no longer available. The CITY or the DISTRICT will use reasonable efforts to give the other Party reasonable notice of termination in the event that funds will not be appropriated. No provision is made for the automatic extension or renewal of the term. SECTION 3. Subsection 2.3 of Section 2 TERM AND TERMINATION of the Contract is hereby added to read as follows: 2.3 The term of this Agreement may be extended for an additional twenty four (24) months by written mutual agreement of the parties executed at least seven (7) calendar days before expiration of the term. Nothing in this Agreement requires either party to renew or extend this Agreement or to enter into negotiations regarding the renewal or extension of this Agreement. SECTION 4. Subsection 5.1 of Section 5 PAYMENTS OF COSTS OF MAINTENANCE of the Contract is hereby amended to read as follows: 5.1 The allocable annual costs of Maintenance and water (plus equipment costs and salary and benefits costs, as appropriate) for the Facilities are estimated by the CITY to be the following: Year Estimated Maintenance Cost 2014 $650,000 2015 $650,000 2016 $650,000 2017 $650,000 2018 $650,000 2019 $650,000 2020 $843,000 2021 $866,000 2022 $896,000 Actual costs shall be shared in the ratio of 50:50 between the CITY and the DISTRICT. SECTION 5. The following exhibit(s) to the Contract is hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Attachment “B” entitled “Fee Schedule and Program”. SECTION 6. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. SECTION 7. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. IN WITNESS WHEREOF, the Parties hereto have by their duly authorized representatives executed this Amendment on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: PALO ALTO UNIFIED SCHOOL DISTRICT: Attachments: ATTACHMENT B: FEE SCHEDULE AND PROGRAM ATTACHMENT B Fee Schedule and Program Athletic Field Rentals** 2018-2019 Baseball Fields $7.50 - 162.00/hr.* Soccer Fields $7.50 - 162.00/hr.* Softball Fields $7.50 - 162.00/hr.* Lights $27.00/use Athletic Field Rentals** 2019-2020 Baseball Fields $7.50 - 174.00/hr.* Soccer Fields $7.50 - 174.00/hr.* Softball Fields $7.50 - 174.00/hr.* Lights $29.00/use Tennis Court Rentals (2018-2019)** Tennis Tournament Court Use Fee $5.00 – 16/hr./court* Tennis Court Rentals (2019-2020)** Tennis Tournament Court Use Fee $5.00 – 17/hr./court* * Athletic fields’ fees will be reduced by 50% for nonprofit users. Proof of nonprofit status will be required for fee reduction. However, there shall be no fee reduction if any fee or donation is required by the nonprofit organization permit holder in connection with the use of the permitted field or tennis court. ** Rates are subject to change subject to the City’s Municipal Fee Schedule. Facilities covered by these fees include: City Sites/Parks Palo Alto Unified School District Sites Terman Park All Elementary Schools -Open or Closed Greene Middle School JLS Middle School Palo Alto High School Tennis Courts Gunn High School Tennis Courts City of Palo Alto (ID # 10858) City Council Staff Report Report Type: Consent Calendar Meeting Date: 12/9/2019 City of Palo Alto Page 1 Summary Title: Caltrain Go Pass Reauthorization for 2020 Title: Approval of an Agreement With the Peninsula Corridor Joint Powers Board in the Amount of $112,176 for the 2020 Caltrain Go Pass Program From: City Manager Lead Department: Human Resources Recommended Motion Staff recommends that City Council consider the following motion: Approve and authorize the City Manager to renew an agreement with the Peninsula Corridor Joint Powers Board for continuation of the Caltrain Go Pass program for the 2020 calendar year. Recommendation Staff recommends that City Council approve and authorize the City Manager to renew an agreement with the Peninsula Corridor Joint Powers Board for continuation of the Caltrain Go Pass program for the 2020 calendar year. Background Go Passes, which are not available for purchase by individuals, allows employers to purchase an unlimited annual Caltrain pass as a valuable incentive for employees to use public transit. Employers who participate in the program must purchase Go Passes for all employees assigned to a worksite. The City has participated in the Go Pass program since 2014 and is a valuable part of the employee benefits package for recruitment and retention purposes. Discussion The Go Pass is good for travel on Caltrain between all zones, seven days a week, for one fixed cost per user. Employers participating in the Go Pass program purchase the passes for employees each calendar year. Employees affix a Go Pass sticker to their employee ID badge as proof of payment. The sticker expires on December 31 of each year. To participate in the program, Caltrain requires the City to purchase Go Passes for all employees at the worksite, regardless of the level of usage. For 2020, the Go Pass price is $342 per employee for one year, for a total of $112,176 for 328 employees assigned to the Civic City of Palo Alto Page 2 Center. The Civic Center includes all nonsworn1 employees who work at City Hall, Development Center and Downtown Library. The Go Pass program began in the City 5 years ago with 51 employees and has increased to the current ridership of 208 employees. Of the current number of riders, 63% report that they use their Go Pass 3-5 times per week. As such, a conservative estimate shows at least 38,000 single occupancy vehicle (SOV) trips are avoided per year under this Go Pass Program.2 The alternative to a Go Pass is the monthly Clipper Card, which costs $433.50 per month, or $5,202 per year per employee. Purchasing Clipper Cards for only those who ride Caltrain 3-5 times a week would cost the City $1.08M per year. For that reason, the Go Pass Program is incredibly cost-effective and an excellent way to support the City’s sustainability efforts. The City has hired a Senior Management Analyst to assist with designing short and long-term recruitment and retention programs. The position was recently filled and is beginning to work on designing commute programs for non-civic center worksites. Our initial analysis is that the potential ridership at non-civic center worksites do not warrant expansion of the Go Pass Program to other City worksites. However, the Senior Management Analyst is identifying additional programs to address commuter needs at all Citywide worksites. Resource Impact The Go Pass cost for 2020 is increasing by 17% from the current total of $97,755 to $112,176 (from $285 per pass to $342 per pass). Funding for this program was approved in the FY 2020 Adopted Operating Budget General Benefits Fund in anticipation of this increase. The cost of the program is funded out of the General Benefits Fund, an internal service fund that collects funds from City departments to pay for various employee benefits. Environmental Review The Agreement is not a project for purposes of the California Environmental Quality Act and therefore no environmental review is required. Attachments: • Attchment A - City of PA 2020 GP Agreement 1 Sworn personnel are eligible to ride Caltrain at no cost and are therefore not included in the Go Pass program. 2 Conservative Assumption: 132 employees x 3 days per week x 48 weeks x 2 trips per day = 38,016 1 14769948.1 PENINSULA CORRIDOR JOINT POWERS BOARD 2020 CALTRAIN GO PASS AGREEMENT Participant Name: City of Palo Alto Address: 250 Hamilton Ave Palo Alto CA 94301 Legal Notice Address (if different from above): Contact Person: Frank Lee Email: frank.lee@cityofpaloalto.org Phone: 650-329-2125 Fax: 650-329-2696 Total Payment: $112,176.00 Number of Participating Sites: 4 Number of Go Pass Users as defined below: 328 Go Pass Eligibility Business All staff working more than 20 hours per week, excluding temporary employees, interns, contractors, consultants and sworn peace officers** are considered “Go Pass Users” for the purpose of this Agreement. Temporary employees, interns, contractors, consultants and sworn peace officers** are not eligible to participate in the Go Pass Program. Notwithstanding the foregoing, if one or both of the Options offered below is selected, employees working less than 20 hours per week and/or interns will be considered “Go Pass Users” under this Agreement. Options Include staff working less than 20 hours per week: N/A – Not including Include interns: N/A – Not including Residential All residents five years old and older are considered “Go Pass Users” for the purpose of this Agreement. Employees of residential developments are excluded from the Go Pass Program. Educational All students per selected group (i.e. Part-time, Full-time, Post graduates) are considered “Go Pass Users” for the purpose of this Agreement. Agreement Term: January 1, 2020 through December 31, 2020 Participant agrees to the attached terms and conditions CITY OF PALO ALTO * By: Print Name: Its: By: Print Name: Its: PENINSULA CORRIDOR JOINT POWERS BOARD By: Print Name: Derek Hansel Its: Chief Financial Officer * If Participant is a corporation or limited liability company, two corporate officers must sign on behalf of the corporation as follows: 1) the chairman of the board, president or vice-president; and 2) the secretary, assistant secretary, chief financial officer, or assistant treasurer. In the alternative, this Agreement may be executed by a single officer or a person other than an officer provided that evidence satisfactory to the JPB is provided demonstrating that such individual is authorized to bind the corporation (e.g. a copy of a certified resolution from the corporation’s board or a copy of the corporation’s bylaws). ** Uniformed and non-uniformed, sworn peace officers are allowed to ride Caltrain for free subject to showing the proper identification. 2 14769948.1 TERMS AND CONDITIONS This Go Pass Agreement (“Agreement”) is made between the Peninsula Corridor Joint Powers Board, a public agency ("JPB") and the Go Pass Participant (“Participant”) identified on page 1 of this Agreement. 1. PAYMENT: Full payment for all Go Pass stickers shall be due prior to JPB issuing stickers. The total cost of participating in the Go Pass program will be the greater of $28,728 or $342.00 per eligible Go Pass User, which includes a non-refundable Administration Fee (the “Administration Fee”) of $3 per Go Pass User. If the number of Users increases during 2020, the cost of additional Go Pass stickers will be a pro-rated per amount based on Exhibit A on page 6 of this Agreement. Go Pass Participant may share the cost of participation in the Go Pass program with its Users, but the cost to a particular User cannot be higher than the first-time replacement rate stated in Section 10 below. Participant must submit payment for any invoices within 30 days of the date shown on the invoice. Payments after 60 days will be charged a late fee of $5 per day. Accepted payment methods include ACH, EFT and Participant checks. Personal Go Pass User checks are not accepted. The return of a check (electronic or paper) issued to JPB will result in a $25 returned check fee being placed on the account of the Participant. 2. PROGRAM: JPB operates the “Caltrain” rail service between San Francisco and Gilroy, California, and Participant desires to provide a transit benefit for use on Caltrain to all of the Go Pass Users as defined on Page 1, in the form of a sticker affixed to a valid Participant-issued, JPB-approved, Go Pass User photo identification card (hereafter referred to as "Go Pass"). In order to facilitate the Caltrain Go Pass Program (“Program”) JPB shall provide the necessary stickers and accept the Go Pass as valid fare media for travel on the Caltrain system. Participant is responsible for any stickers in its possession. Failure to comply with the terms in this Agreement may result in termination pursuant to Section 12. 3. ELIGIBLE PARTICIPANTS: Only individual Participants are eligible to participate in the Program. Participants with multiple locations, branches or campuses are eligible to participate in the Program and must provide a Go Pass User count for each individual Participant site. However, such Participants must enroll in the Program under a single Go Pass Agreement and designate a single contact and administrator. Such Participants’ employees/students/residents at non- participating locations are not eligible to participate in the Program. 4. ELIGIBLE GO PASS USER VERIFICATION: Go Passes must be purchased for each and every Go Pass User at each Participant work site participating in the program (“Participating Site(s)”). Participant will be required, prior to the JPB issuing the Go Pass stickers, to provide JPB with a Letter of Intent (“Letter”) signed by the Human Resources Director, an officer of the Participant or Development Manager verifying the then-current number of Go Pass Users of the Participant at each Participating Site. If a Business Participant selects an Option identified on Page 1, the letter must indicate the number of Users working more than 20 hours per week, working less than 20 hours per week and/or interns. If there are multiple Participating Sites, the Letter must indicate the individual site addresses and the number of then-current Users at each site. Neither Participant nor any of its affiliates shall be required to participate in the Program with respect to other sites other than the Participating Site(s) identified in the Letter. 5. GO PASS IDENTIFICATION: Participant must have an official Participant-issued photo ID card in order to participate in the Program and must supply a hard copy of that ID card to the JPB for review. Any Participant that doesn’t have a photo ID card must create one. The ID card must display a clear Go Pass User headshot, Go Pass User first and last name, have a 1” x 1” square space for the Go Pass sticker and display the Participant name or logo. The ID cannot contain Caltrain’s logo as part of the design. If the ID changes, it is the Participant’s responsibility to submit the new version to the JPB three weeks in advance for approval. Participants may only use one JPB-approved ID card. The JPB will produce and issue serialized Go Pass stickers which will be distributed to Participant so that Participant can affix them to the Participant-issued Go Pass User ID card. Participant’s designated administrator shall place the Go Pass sticker on each eligible Go Pass User’s ID card, preferably on the front. Participant shall not distribute the Go Pass stickers to Users, as this practice may lead to unauthorized use of the sticker. Participant shall be responsible for retaining the Go Pass User’s ID card or removing the Go Pass sticker from a Go Pass User’s ID card when a Go Pass User leaves the employment of the Participant or relocates to non-participating location. Returned ID cards or stickers shall be presented to the JPB for verification upon request. A photocopy of the identification card with the Go Pass sticker attached is acceptable as proof that the Go Pass is no longer in use by a Go Pass User who has left the Participant. All Go Pass stickers allotted to the Participant at the beginning of the Participant’s participation in the Program that are not issued to Users are to be returned to the JPB by December 15 of the Agreement year. Go Pass sticker is JPB’s property. 6. PROGRAM RECORDS: Participant will create and maintain a file of documents to be available for review upon JPB request (“Go Pass File”). The Go Pass File must include a log (Go Pass Log) of its Users who currently hold Go Passes. The Go Pass Log shall include the Go Pass User’s first and last name, unique serial number for the individual pass each Go Pass User holds, pass status (i.e. active, lost, damaged, etc.), date of issue, date of Go Pass User separation, if applicable, and any other pertinent information. The file must also include all separated Go Pass User’s ID cards or Go 3 14769948.1 Pass stickers unless sent to JPB and Participant received an acknowledgement e-mail. 7. SURVEY AND ACKNOWLEDGEMENT: Prior to affixing the Go Pass sticker to the Go Pass User’s Participant-issued ID card, Participant shall require each Go Pass User receiving a Go Pass, for the first time, to complete an online questionnaire ("Survey"). Once the Survey is complete, Participant administrator will receive an e-mail confirmation from the Go Pass User via the JPB. As part of completing the survey, the Go Pass User will be required to acknowledge that he or she understands the proper use of the Go Pass. The Surveys may be used to analyze the success of the Program and develop ridership projections for the Program. However, the Surveys are subject to disclosure under requests made pursuant to the California Public Records Act. Prior to disclosing Surveys, any identifying information concerning the Participant and/or the Go Pass User shall be redacted. 8. PROGRAM ANALYSIS AND AUDIT: JPB reserves the right to audit Participant’s Go Pass Program at any point during the Program year with five (5) working days' notice. The purpose of the audit is to ensure that appropriate accounting, sticker distribution and security procedures are in place. JPB has the right to audit any internal Participant Go Pass- associated records, including Participant’s Go Pass File. A current list of qualifying Users shall be provided to the JPB upon request. Within 10 working days of receipt of any audit report from the JPB, Participant must, in conjunction with JPB staff, develop a mutually agreeable action plan to satisfy any audit findings. If no mutually agreeable plan can be developed, JPB may terminate the Program upon 10-days’ notice pursuant to the terms of Section 12, Termination. 9. PARKING PERMITS: Monthly parking permits for Caltrain lots may be purchased through any Caltrain station ticket machine. Go Pass Users will be required to complete an application for an access code in order to purchase the permit through the machine. 10. LOST, STOLEN, DAMAGED AND REPLACEMENT GO PASSES: For lost or stolen Go Passes, JPB will charge a $342.00 first-time replacement fee and send replacement stickers upon request by Participant after payment is received. Participant must submit to the JPB documentation including the Go Pass User first and last name and Go Pass serial number. For stolen Go Passes, Participant may issue a replacement Go Pass if User submits a police report describing the Go Pass as stolen to Participant. The police report must be maintained in Participant’s Go Pass file. The JPB will send replacement sticker for the stolen Go Pass upon request at no additional charge provided that the police report is supplied to the JPB. If the same Go Pass User loses the Go Pass or has the Go Pass stolen a second time, the replacement fee will be 2x the first-time replacement fee regardless of whether a police report is provided to the JPB. If a replacement Go Pass is issued and then the original is found, JPB will not provide a refund. Participant may not resell the Go Passes to Users at a rate higher than the replacement fee. A Go Pass will not be issued as a replacement for lost or stolen Go Passes a third time. For Damaged Go Passes: If the Participant or a Go Pass User damages a Participant-issued ID card and thus renders the Go Pass sticker unusable, or if the sticker itself is damaged, a replacement Go Pass sticker may be issued to the Go Pass User or taken from the Participant’s Go Pass inventory, provided that the Participant documents that the Go Pass sticker has been taken out of circulation in its Go Pass File. Participant must retain the damaged ID card or Go Pass sticker in its Go Pass File unless sent to JPB and Participant received an acknowledgement e-mail. If no additional stickers remain in the Participant inventory, the Participant shall return damaged Go Pass stickers or ID cards, or a photocopy, with complete documentation to the JPB prior to the JPB issuing a replacement Go Pass sticker to Participant at no charge. This courtesy will be extended no more than two times per Go Pass User per calendar year, after which the replacement cost for a damaged Go Pass sticker will be $342.00. For Separated Users: If the Go Pass User separates with the Participant, Participant shall retain the separated Go Pass User ID card or Go Pass sticker in its Go Pass File and document that the Go Pass sticker has been taken out of circulation in its Go Pass Log (See Section 6 above) unless sent to JPB and Participant received an acknowledgement e- mail. If no additional stickers remain in the Participant inventory, the Participant shall return separated Go Pass stickers or ID cards, or a photocopy, prior to the JPB issuing a replacement Go Pass sticker to Participant at no charge. For Missing Go Passes: Participant shall be responsible for safeguarding the Go Pass stickers prior to issuing them to Users and shall be liable for any loss of Go Pass stickers. Replacement Go Pass stickers shall be issued under the lost terms above. For misused or confiscated Go Passes: If Go Pass User who had its Go Pass confiscated during fare enforcement would like a replacement, and it’s been determined that the Go Pass sticker was misused, the replacement sticker will be 2x the first-time replacement rate. 11. REPORTING: Participant must submit a report to JPB by March 1, June 1, September 1 and December 1 of the 4 14769948.1 agreement term year. The report must list all lost, stolen, damaged and replacement Go Passes issued and separated Users. It must include the reason for replacement, if applicable, Go Pass User first and last name and corresponding Go Pass serial number and the current number of Users working at the work site(s) /residing in the development enrolled in the program. Participant may submit its Go Pass Log (See Section 6 above) in lieu of the report. 12. TERMINATION: Either party may terminate this Agreement by giving the other party written notice at least 90 days prior to the desired termination date, which shall be the last day of a calendar month. If either party terminates the Agreement pursuant to this provision, JPB shall refund to Participant a pro-rata portion of Participant’s total payment in accordance with the Proration Schedule attached to and incorporated in this Agreement as Exhibit A, less the Administration Fee, as listed on Page 1, within 30 days of the termination date, provided that within 10 working days of the effective termination date: (a) all undistributed Go Passes issued to Participant are returned to JPB and (b) Participant verifies in writing that it has made every Good faith effort to collect or destroy all Go Passes that have been distributed to Users. In the event Participant fails to comply with the terms of this Agreement, JPB may terminate this Agreement with 15 days’ notice. Non-compliance by Participant may make Participant ineligible to participate in the Go Pass program in subsequent years. This Agreement shall automatically terminate if Participant discontinues its business at the Participating Site(s) and it will be up to Participant to notify its Go Pass Users that the Go Pass will no longer be valid. In the event that Go Pass Users continue to use invalid Go passes, JPB will confiscate such passes in accordance with Section 14. 13. MISUSE OF GO PASS: The Go Pass constitutes a Go Pass sticker affixed to a valid, Participant-issued, JPB-approved Go Pass User photo ID card. Any other use of the Go Pass sticker is prohibited and will not be valid as fare payment on Caltrain. Go Pass Participant – JPB agrees not to pursue any claims or demands against Participant for a Go Pass User's unauthorized use of the Go Pass, unless the unauthorized use is the result of Participant's failure to follow the sticker issuance procedures in Section 5, gross negligence or willful misconduct. The transfer of the Go Pass sticker constitutes fare evasion, a violation of California Penal Code 640. At the time of Go Pass issuance, Participant shall (1) notify its Users that Go Pass stickers are non-transferrable and that transferring a Go Pass constitutes fare evasion under the law, and (2) shall remind Users of their agreement to the terms of usage provided in the Survey. Go Pass User - All Go Pass Users shall be subject to JPB's fare inspection regulations. JPB may confiscate and/or destroy the Go Pass sticker and pursue claims or demands against, or seek prosecution of, anyone who duplicates, alters, transfers, sells or commits unauthorized use of the Go Pass. Unauthorized use of the Go Pass includes, but is not limited to, allowing a non-eligible person to use a Go Pass or affixing a Go Pass sticker to any form of identification other than a valid Participant-issued, JPB-approved, Go Pass User ID card. JPB may cancel any individual Go Pass if it has reason to believe that the Go Pass was issued and/or used in a manner that fails to comply with the requirements herein. JPB will notify Participant if it has any such concerns and, after appropriate investigation, revoke those passes in question. Participant agrees to cooperate with JPB in such an investigation, including assisting the JPB in determining the identity of the Go Pass User(s) who are alleged to have misused the Go Pass. Participant waives all remedies and rights to refunds for any Go Passes revoked for misuse. JPB will incur no liability resulting from confiscation of misused Go passes or Go passes from a Go Pass User whose Participant’s Agreement has been terminated. 14. PROTECTION OF PRIVACY: The JPB contracts with a third-party online survey platform, currently SurveyGizmo, to facilitate Participant registration and agreement to the user terms and conditions of the Program, facilitate administration of the Program by the participating company, and collect Caltrain usage information. Participants are directed to review SurveyGizmo's website and privacy policy for additional information regarding SurveyGizmo's data privacy and security provisions. JPB acknowledges that it may review data stored on the online survey platform that contains personally identifiable information (PII) or confidential information about the Participant or the Go Pass User (“Information”) to administer the Go Pass Program. If requested by a Participant's Go Pass administrator, the JPB may share a list of Go Pass User names with the administrator directly from the online survey platform. The JPB does not store any PII collected through the Go Pass Program on its servers. Except as required to administer the Go Pass Program in accordance with this Agreement or as otherwise required by law, JPB agrees not to use or to disclose to third parties the Information. Notwithstanding the foregoing, JPB may use and disclose to third parties information in an aggregate format that does not personally identify a Go Pass User. 15. ENTIRE AGREEMENT: This contract contains the entire Agreement between the parties hereto for the term specified on Page 1 of this Agreement and cannot be changed or altered except by written agreement signed by both parties hereto. Neither party shall be bound by any oral agreement or other understandings contrary to or in addition to the terms and conditions as stated herein. 5 14769948.1 16. SUCCESSORS AND ASSIGNS: The terms, covenants and conditions contained in this Agreement shall bind and inure to the benefit of Participant and JPB and, except as otherwise provided herein, their personal representatives and successors and assigns. 17. NO THIRD-PARTY BENEFICIARIES: There are no third-party beneficiaries to this Agreement. 18. NO JOINT VENTURE: It is expressly agreed that Participant is not, in any way or for any purpose, a partner of the JPB in the conduct of JPB’s business or a member of a joint enterprise with JPB, and does not assume any responsibility for JPB’s conduct or performance of this Agreement. It is expressly agreed that JPB is not, in any way or for any purpose, a partner of the Participant in the conduct of Participant’s business or a member of a joint enterprise with Participant, and does not assume any responsibility for Participant’s conduct or performance of this Agreement. 19. ATTORNEYS’ FEES: In the event that either JPB or Participant fails to perform any of its obligations under this Agreement or in the event a dispute arises concerning the meaning or interpretation of any provision of this Agreement, the defaulting Party or the Party not prevailing in such dispute, as the case may be, shall pay any and all costs and expenses incurred by the other Party in enforcing or establishing its rights hereunder, including, without limitation, court costs and reasonable attorneys’ fees. 20. GOVERNING LAW: This Agreement shall be governed and construed in accordance with the laws of the State of California. Any action relating to, and all disputes arising under, this Agreement shall be instituted and prosecuted in a court of competent jurisdiction in the State of California. 21. NOTICES: All notices, requests, communications and legal notices to be made or given to Participant under this Agreement shall be addressed as shown on page 1 of this Agreement. All notices, including legal notices, communications and requests to be made or given to JPB shall be addressed as follows: Peninsula Corridor Joint Powers Board (Caltrain) 1250 San Carlos Ave. San Carlos, CA 94070-1306 Attn: B2B – Treasury Department 6 14769948.1 Exhibit A Proration Schedule New Participants Effective Date (falling in month) Portion of Total Fee per Go Pass More than Minimum (includes administration fee) Portion of Total Fee per Go Pass Less than Minimum (includes administration fee) February $313.75 $26,355.00 March $285.50 $23,982.00 April $257.25 $21,609.00 May $229.00 $19,236.00 June $200.75 $16,863.00 July $172.50 $14,490.00 August $144.25 $12,117.00 September $116.00 $9,744.00 October $87.75 $7,371.00 November $59.50 $4,998.00 December $31.25 $2,625.00 Terminating Participants Effective Termination Date (falling in month) Portion of Total Fee Returned per Go Pass More than Minimum (less administration fees) Portion of Total Fee Returned per Go Pass Less than Minimum (less administration fees) February $310.75 $26,103.00 March $282.50 $23,730.00 April $254.25 $21,357.00 May $226.00 $18,984.00 June $197.75 $16,611.00 July $169.50 $14,238.00 August $141.25 $11,865.00 September $113.00 $9,492.00 October $84.75 $7,119.00 November $56.50 $4,746.00 December $28.25 $2,373.00 City of Palo Alto (ID # 10879) City Council Staff Report Report Type: Action Items Meeting Date: 12/2/2019 City of Palo Alto Page 1 Summary Title: Colleagues' Memo Regarding Urgency Ordinance Regarding Renter Protections Title: Colleagues' Memo From Council Members Kou and DuBois and Potential Adoption of an Urgency Ordinance to Provide Just Cause Eviction Protections to Tenants Until California State Assembly Bill 1482 Takes Effect on January 1, 2020 (Continued From November 18, 2019) From: City Manager Lead Department: City Clerk Goals To temporarily prohibit no-fault evictions through December 31, 2019, for all residential real property that will be covered by Assembly Bill 1482 beginning on January 1, 2020. Background and Discussion: Assembly Bill 1482, the Tenant Protections Act of 2019, was signed by Governor Newsom on October 8, 2019. Escalating real estate values with the assistance of the deregulation of zoning provides an incentive to landlords to evict long-term, lower- income tenants, in order to raise rents and attract wealthier tenants, reducing the local diversity socio-economic of Palo Alto’s population. It has been reported, since the anticipation of the Tenant Protection Act of 2019 legislation, there has been an escalation of harassment by landlords in order to encourage tenants to move out voluntarily. However, since the Governor’s signing of the legislation, there is a surge of calls and inquiries from community advocates and tenants facing steep rent increases, some as much as 30% rent increase and facing evictions, also facing increases in costs of parking, lock services and other bundled amenities. While landlords may properly evict tenants for cause under the provision of state law, landlords should not be able to evict tenants in good standing without cause simply to avoid the limitation on rent- gouging afforded to renters under the new law. Hence, it is imperative for the City of Palo Alto to issue an emergency ordinance to keep people housed and provide a sense of stability. Proposal Request the City Attorney to report on: City of Palo Alto Page 2 1. An emergency ordinance implementing a temporary moratorium on no-fault evictions for rental units built prior to January 1, 2012, effective through December 31, 2019. 2. The use State of California price gouging laws to prevent prohibitive rent increases before Assembly Bill 1482 takes effect on January 1, 2020. 3. This emergency ordinance shall apply to tenancies where the tenant remains in possession and the eviction lawsuit has not been adjudicated. Direct City Manager staff to: 1. Inform Palo Alto rental residents of legal resources to help them address any disputes with their landlords. 2. Inform property owners and landlords of rental property of their obligations under Assembly Bill 1482 and any locally-established ordinances. Resource Impact Due to the short timeframe to adopt tenant protections (through January 1, 2020), existing resources in the City Manager’s Office, City Attorney’s Office and Planning and Development Services are being redirected to draft an ordinance for the Council’s consideration on November 18th. Also due to the short timeframe, any outreach on a potential urgency ordinance will be limited to electronic (email and social media) distribution methods. If the Council adopts an ordinance, some staff resources will be needed for public outreach and education regarding the rights and responsibilities of landlords and tenants, responding to public inquiries, and making referrals. Tenant protections are enforced by tenants in private litigation with their landlords. The City does not investigate alleged violations or adjudicate tenant-landlord disputes. This is true for protections provided by a temporary City ordinance (before January 1st) as well as by AB 1482 (after January 1st). The City provides voluntary mediation services through Project Sentinel and can refer tenants to other resources, such as non-profit legal services agencies. Appendices: Report by City of Los Angeles City Attorney http://clkrep.lacity.org/onlinedocs/2019/19- 1232_misc_10-22-2019.pdf City of Los Angeles Draft Ordinance http://clkrep.lacity.org/onlinedocs/2019/19- 1232_ord_draft_10-22-2019.pdf City of Los Angeles Final Ordinance http://clkrep.lacity.org/onlinedocs/2019/19- 1232_ORD_186340_10-24-2019.pdf City of Redwood City Draft Ordinance https://meetings.redwoodcity.org/AgendaOnline/Documents/ViewDocument/ATTACHME NT%20B%20- %20URGENCY%20ORDINANCE.pdf?meetingId=2048&documentType=Agenda&itemId =2741&publishId=4267&isSection=false Attachments: • Attachment A: Urgency Ordinance Not Yet Approved Ordinance No. _____ Urgency Ordinance of the Council of the City of Palo Alto Temporarily Prohibiting Evictions without Just Cause through December 31, 2019, for Residential Real Property Built Prior to January 1, 2005 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 “Tenant Protection Act of 2019” (Assembly Bill [“AB”] 1482) was approved by the California Legislature on September 11, 2019 and signed by the Governor on October 8, 2019; and B. Effective January 1, 2020 the Tenant Protection Act of 2019 codified as California Civil Code sections 1946.2 (Just Cause Eviction) and 1947.12 (Rent Caps) will provide eviction protections and limits on rent increases in the State of California; and C. The City Council, pursuant to its police powers, has broad authority to maintain public peace, health, and safety of its community and preserving the quality of life for its residents; and D. Housing instability threatens the public peace, health, and safety as eviction from one’s home can lead to prolonged homelessness; increased residential mobility; loss of community; strain on household finances due to the necessity of paying rental application fees and security deposits; stress and anxiety experienced by those displaced; increased commute times and traffic impacts if displaced workers cannot find affordable housing within the city in which they work; and interruption of the education of children in the home; and E. Eviction creates particular hardships for individuals and households of limited means, given the shortage of housing, particularly affordable housing, within the City of Palo Alto and the San Francisco Bay Area region generally; and F. As AB 1482 does not go into effect until January 1, 2020, landlords could seek to evict tenants without cause in order to implement rent increases that would not otherwise be possible after the effective date; and G. The City desires to prohibit evictions without just cause during this transition period; and H. The City Council finds and determines that regulating the relations between residential landlords and tenants will increase certainty and fairness within the residential Not Yet Approved 20191121 th 0140204 2 rental market in the City and thereby serve the public peace, health, and safety; and I. Palo Alto Municipal Code Section 2.04.270 authorizes the adoption of an urgency ordinance to protect the public peace, health or safety, where there is a declaration of the facts constituting the urgency and the ordinance is adopted by four-fifths of Council Members present; and J. This urgency ordinance would essentially establish the just cause eviction protections that will go into effect on January 1, 2020 under AB 1482 immediately within the City of Palo Alto; and K. An urgency ordinance that is effective immediately is necessary to avoid the immediate threat to public peace, health, and safety as failure to adopt this urgency ordinance could result in the displacement of the City’s residents and community members. SECTION 2. Just Cause Eviction Protections. This urgency ordinance shall be known as the “Just Cause Eviction Protection Ordinance.” (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate tenancy. (b) For purposes of this Ordinance, just cause includes either of the following: 1. At-fault just cause, which is any of the following: (A) Default in the payment of rent. (B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation. (C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (E) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real Not Yet Approved 20191121 th 0140204 3 property, that is directed at any owner or agent of the owner of the residential real property. (F) Assigning or subletting the premises in violation of the tenant’s lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (G) The tenant’s refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of the Civil Code, and Sections 13113.7 and 17926.1 of the Health and Safety Code. (H) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (I) The employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure. (J) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the Civil Code of the tenant’s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure. 2. No-fault just cause, which includes any of the following: (A) Intent to occupy the residential real property by the owner or their spouse, domestic partner, children, grandchildren, parents, or grandparents. (B) Withdrawal of the residential real property from the rental market. (C) The owner complying with any of the following: (i) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property. (ii) An order issued by a government agency or court to vacate the residential real property. (iii) A local ordinance that necessitates vacating the residential real property. (D) Intent to demolish or substantially remodel the residential real property. For purposes of this subparagraph, “substantially remodel” means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or Not Yet Approved 20191121 th 0140204 4 the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable Federal, State, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation. (E) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three- day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy. (c) This section shall not apply to the following types of residential real properties or residential circumstances: 1. Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940 of the Civil Code. 2. Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services. 3. Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school. 4. Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property. 5. Single-family owner-occupied residences, including a residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit. 6. A duplex in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy. 7. Housing that has been issued a certificate of occupancy within the previous 15 years. 8. Residential real property that is alienable separate from the title to any other dwelling unit, provided that the owner is not any of the following: (A) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code. (B) A corporation. Not Yet Approved 20191121 th 0140204 5 (C) A limited liability company in which at least one member is a corporation. 9. Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes. (d) Any waiver of the rights under this section shall be void as contrary to public policy. (e) For the purposes of this Ordinance, the following definitions shall apply: 1. “Owner” and “residential real property” have the same meaning as those terms are defined in Civil Code Section 1954.51. 2. “Tenancy” means the lawful occupation of residential real property and includes a lease or sublease. (f) Applicability. This Ordinance shall apply to tenancies where the tenant remains in possession of the residential real property and an eviction lawsuit, if any, has not been finally adjudicated. (g) Statement of Urgency. The City Council finds and declares that this Ordinance is required for the immediate protection of the public peace, health and safety as failure to adopt this urgency ordinance could result in irreversible displacement of residents resulting from no-fault evictions during the period before AB1482 becomes effective. The Council, therefore, adopts this Ordinance to become effective immediately upon adoption. (h) Enforcement. An owner's failure to comply with any requirement of this Ordinance shall render any notice of termination of tenancy void. A tenant may assert this Ordinance as a complete affirmative defense in an unlawful detainer or other action brought by the owner to recover possession of the residential real property. A tenant may bring a civil suit in the courts of the state alleging that an owner has violated any of the provisions of this ordinance. An owner’s failure to comply with this Ordinance does not constitute a criminal offense. SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. Not Yet Approved 20191121 th 0140204 6 SECTION 4. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. SECTION 5. This ordinance shall be effective immediately upon adoption and shall remain in effect until December 31, 2019. On January 1, 2020, this ordinance shall be repealed and shall be of no further force and effect. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney City Manager ____________________________ Director of Administrative Services City of Palo Alto (ID # 10901) City Council Staff Report Report Type: Action Items Meeting Date: 12/9/2019 City of Palo Alto Page 1 Summary Title: Scope of Review for Boards and Commissions Title: Council Direction on Scope of Review for Procedures and Protocols Related to Boards and Commissions From: City Manager Lead Department: City Manager Recommendation Staff recommends the City Council confirm the range of issues to be addressed and process for a review of Procedures and Protocols related to Boards and Commissions. Background The Policy and Services Committee is currently reviewing various elements of the City Council Procedures and Protocols Handbook. Among the topics that has been suggested for review is the guidance provided on the organization and operation of City boards and commissions. The Procedures and Protocols Handbook currently provides relatively little guidance related to boards and commissions. The only reference is provided in City Council Protocols Section 2 – Council Conduct, and largely focuses on the interaction between individual councilmembers and commissions. Guidance related to boards and commissions is also provided through the Municipal Code. Chapter 2.16 of the Municipal Code provides definitions on Boards and Commissions generally, including procedures for handling vacancies and other administrative matters. Subsequent chapters of the Municipal Code address the roles and procedures related to specific boards and commissions. Discussion City Councilmembers have identified a variety of topics that could be included within the scope of an update to procedures and protocols related to boards and commissions. This includes, for example: 1. Role of Council Liaisons – Should expectations of council liaison attendance and participation in board/commission meetings be further defined? City of Palo Alto Page 2 2. Relationship between board/commission and Council roles – Currently, the primary means of coordination between boards/commissions and the City Council is through periodic (annual) joint study sessions where accomplishments are reviewed and topics of interest discussed. The City Council may also, in the course of its business, refer a topic to a board/commission. Beyond this, there are no procedures in place to enable the City Council to guide board/commission interest in pursuing a particular topic. This can result in a board/commission expending significant effort and developing recommendations, potentially seeking staff support, on topics that may not align with City Council priorities. Should a procedure be established that enables the Council to affirm interest in having a board/commission engage on a topic prior to development of recommendations? 3. Commissioner conduct and terms – Should expectations of board/commission members be clarified, with definitions to elements such as qualifications, term limits, recusals and disclosures, attendance, conduct, and a process for removal? 4. Administrative processes – Are there additional issues for which clarification is needed, such as staff support levels, processes for agenda setting, communication with staff, and applicable rules of order? Staff is seeking an initial confirmation of the issues to be included: all of the above, a subset of these issues, and/or additional issues. Staff will then research the issues to facilitate further Council discussion and development of recommendations. The Council may also specify a process through which the issues selected will be addressed, such as through an ad hoc committee that would draft recommendations to be considered. Timeline, Resource Impact, Policy Implications (If Applicable) Based on direction from the City Council, staff will examine options for addressing the issues identified. The timeline and resource impact will depend on the range and complexity involved. Stakeholder Engagement Based on City Council direction on the topics to be included, staff will develop a plan for engaging boards and commissions. It is likely that current commissioners will have their own perspectives to be considered, and staff will facilitate board/commission input and review of Council changes to Procedures and Protocols. Environmental Review This is not a project as defined by the California Environmental Quality Act and therefore not subject to environmental review. Attachments: • City Council Protocols Excerpt Regarding Boards and Commissions ATTACHMENT A Excerpt from Palo Alto City Council Procedures and Protocols Handbook City Council Protocols Section 2 – Council Conduct 2.4 - Conduct with Palo Alto Boards and Commissions The City has established several Boards and Commissions as a means of gathering more community input. Citizens who serve on Boards and Commissions become more involved in government and serve as advisors to the City Council. They are a valuable resource to the City’s leadership and should be treated with appreciation and respect. Council Members serve as liaisons to Boards and Commissions, according to appointments made by the Mayor, and in this role are expected to represent the full Council in providing guidance on Council processes or actions to the Board or Commission. Refrain from speaking for the full Council on matters for which the full council has not yet taken a policy position. In other instances, Council Members may attend Board or Commission meetings as individuals, and should follow these protocols: A. If Attending a Board or Commission Meeting, Identify Your Comments as Personal Views or Opinions. Council Members may attend any Board or Commission meeting, which are always open to any member of the public. Any public comments by a Council Member at a Board or Commission meeting, when that Council Member is not the liaison to the Board or Commission should make a point to clearly state it is an individual opinion and not a representation of the feelings of the entire City Council. B. Refrain from Lobbying Board and Commission Members. It is inappropriate for a Council Member to contact a Board or Commission member to lobby on behalf of an individual, business, or developer, or to advocate a particular policy perspective. It is acceptable for Council Members to contact Board or Commission members in order to clarify a position taken by the Board or Commission. C. Remember that Boards and Commissions are Advisory to the Council as a Whole, not as Individual Council Members. The City Council appoints individuals to serve on Boards and Commissions, and it is the responsibility of Boards and Commissions to follow policy established by the Council. Council Members should not feel they have the power or right to unduly influence Board and Commission members. A Board and Commission appointment should not be used as a political reward. D. Concerns about an Individual Board or Commission Member Should be Pursued with Tact. If a Council Member has concerns with a particular Board or Commission member fulfilling his or her roles and responsibilities and is comfortable in talking with that individual privately, the Council Member should do so. Alternatively, or if the problem is not resolved, the Council Member should consult with the Mayor, who may address the issue to the Council as appropriate. E. Be Respectful of Diverse Opinions. A primary role of Boards and Commissions is to represent many points of view in the community and to provide the Council with advice based on a full spectrum of concerns and perspectives. Council Members may have a closer working relationship with some individuals serving on Boards and Commissions, but must be fair to and respectful of all citizens serving on Boards and Commissions. F. Keep Political Support Away from Public Forums. Board and Commission members may offer political support to a Council Member, but not in a public forum while conducting official duties. Conversely, Council Members may support Board and Commission members who are running for office, but not in an official forum in their capacity as a Council Member. G. Maintain an Active Liaison Relationship. Appointed Council liaisons or alternates are encouraged to attend all regularly scheduled meetings of their assigned Board or Commission. City of Palo Alto COLLEAGUES MEMO December 09, 2019 Page 1 of 3 (ID # 10896) DATE: December 9, 2019 TO: City Council Members FROM: Council Members Cormack, Fine, and Tanaka SUBJECT: COLLEAGUES' MEMO FROM COUNCIL MEMBERS CORMACK, FINE, AND TANAKA REGARDING ANTI-VAPING MEASURES Objective Address the health impacts of electronic cigarettes by eliminating access to vape devices, pods, and liquids in stores in Palo Alto and identifying programs to help people, especially students, in our community develop healthy habits. Recommendation We recommend that our colleagues direct staff to immediately: ●Prepare an urgency ordinance prohibiting the sale and distribution of all electronic cigarettes, in alignment with the County of Santa Clara’s recent approach, with as few exemptions as possible; ●Identify avenues to support legislation making it harder for minors to successfully order electronic cigarette products online (e.g. needing a signature of a 21-year-old at delivery); ●Provide an update on the County’s recent enforcement activities of the existing Tobacco Retail Permit Ordinance; and ●Provide funding in the amount of $25,000 from the Council Contingency Fund to the Healthy City/Healthy Community working group to develop programs to educate and inform teens and families about the health effects of electronic cigarettes and to address the conditions that lead to teens using them for social reasons or for stress relief. Background The health impacts of using electronic cigarettes, generally known as vaping, are significant, particularly for our young people whose brains are still developing. Vaping one JUUL pod means a person ingests approximately the same amount of addictive, neurotoxic nicotine as smoking 41 cigarettes (source: http://med.stanford.edu/tobaccopreventiontoolkit.html). The liquids in electronic cigarettes are unregulated and contain many chemicals whose safety, when heated and breathed into the lungs, has not been tested. The current outbreak of significant lung disease related to vaping is still being analyzed, but the risks of death, lung damage, and organ transplant are already known. December 09, 2019 Page 2 of 3 (ID # 10896) According to data presented at Hooked, the 2019 Santa Clara County summit to reverse the vaping epidemic, more than 1 in 6 Santa Clara county high school students who buy e-cigarettes in a store report getting them at a vape shop. According to the presentation by Adolescent Counseling Services for the Human Relations Commission, “Just Say No” and scared-straight programs are generally ineffective, while comprehensive teen and family programs are considered the best approach to reducing substance abuse. Resource Impact Palo Alto has two types of tobacco regulations: restrictions on where tobacco products (including smoking and vaping) may be used, and restrictions on where they may be sold. The City prohibits tobacco use in designated public spaces, including outdoor dining areas, entryways, parks, places of employment, public events, recreation areas, service areas and multi-family residential units (See Palo Alto Municipal Code, Chapter 4.64.). Palo Alto Police and Public Works staff are primarily responsible for informing the public of these restrictions and taking enforcement action, and do so as they are able in light of all other activities and priorities. Neither department has sufficient resources for robust proactive enforcement. With respect to sales, Palo Alto participates in Santa Clara County’s tobacco retailer program. Beginning in 2016, Palo Alto adopted the County’s model retailer permit ordinance and entered into an agreement with the County for the County to administer and enforce the retail requirements (See PAMC, Chapter 9.14.). In November 2019, the County updated its retailer permit ordinance to add additional restrictions on sellers, including: • expanding the prohibition on the sale of flavored tobacco products to include adult-only “smoke shops” selling 60% or more tobacco products, which were exempted from the previously-existing ban; and • banning the sale of electronic devices (e.g. vaping devices), phased in as annual retail permits are renewed. The expanded prohibition on flavored products will have a greater impact in Palo Alto, where seven establishments currently qualify for the “smoke shop” exception, than it has had in the unincorporated County. Existing resources will be sufficient if Council updates the City’s sales regulation in alignment with the County’s updated ordinance and continues its agreement for the County to handle permitting and most enforcement activities. If Council were to direct staff to take on responsibility for administering permits and enforcing retail tobacco sales restrictions, additional City resources would need to be identified. December 09, 2019 Page 3 of 3 (ID # 10896) The Healthy City/Healthy Community working group is focusing its efforts on convening organizations and experts who are working on or interested in issues related to vulnerable populations. The working group selected youth vaping as the first issue of focus. An event is being planned for late January 2020 to bring community leaders and experts together to share information, facilitate discussion on best practices, and identify gaps and opportunities. Staff recommends returning to Council in February 2020 to share what was learned at the vaping forum, including any recommended actions or best practices, and identification of the level of funding that would be needed for City staff to implement those actions. This would include a recommendation as to which program or group would take the lead on implementation (e.g., Healthy City working group, HSRAP, emerging needs, etc.). CITY OF PALO ALTO OFFICE OF THE CITY CLERK December 9, 2019 The Honorable City Council Palo Alto, California Boards and Commissions Term End Dates for 2020 (Maddy Act) The 2020 Maddy Act list is attached. Government Code Section 54970-54974, the Maddy Act, requires that on or before December 31 of each year the City must prepare a list of all appointments which will expire in the upcoming year. The list is posted on the agenda posting board in King Plaza, in front of City Hall, and also in the posting board within the entry to the Council Chambers, where they will remain throughout 2020. ATTACHMENTS: • Attachment A: Maddy Act 2020 (PDF) Department Head: Beth Minor, City Clerk Page 2 LOCAL APPOINTMENTS LIST OF CITY OF PALO ALTO BOARD AND COMMISSION TERMS EXPIRING IN 2020 For additional information, contact: City Clerks Office, City of Palo Alto 250 Hamilton Avenue, Palo Alto, CA 94301 (650) 329-2571, http://www.cityofpaloalto.org/clerk In compliance with the Americans with Disabilities Act (ADA) of 1990, this document may be provided in other accessible formats. For information contact: City of Palo Alto - ADA Coordinator 650/329-2550 (Voice) or email ada@cityofpaloalto.org Last updated 11/20/2019 ARCHITECTURAL REVIEW BOARD (ARB) Three-year term No Residency Requirement Commissioner Date of Appointment Present Term Expires Grace Lee 09/09/2019 12/15/2020 Osma Thompson 12/14/2017 12/15/2020 Eligibility Requirements: A board of five members, at least three of whom shall be architects, landscape architects, building designers or other design professionals. Regular meetings are held at 8:30 a.m. on the first and third Thursdays of each month. Terms are for three years and commence on December 16. (PAMC 2.16 and 2.21) HISTORIC RESOURCES BOARD (HRB) Three-year term No Residency Requirement Commissioner Date of Appointment Present Term Expires Martin Bernstein 06/01/1996 12/15/2020 Roger Kohler 02/15/1995 12/15/2020 Michael Makinen 10/13/1999 12/15/2020 Margaret Wimmer 06/10/2013 12/15/2020 Eligibility Requirements: A board of seven members who have demonstrated interest in and knowledge of history, architecture or historic preservation. One member shall be an owner/occupant of a Category 1 or 2 historic structure or of a structure in an historic district; three members shall be architects, landscape architects, building designers or other design professionals and at least one member shall possess academic education or practical experience in history or a related field. Regular meetings are held at 8:30 a.m. on the second and fourth Thursdays of each month. Terms are for three years and commence on December 16. (PAMC 2.16 and 16.49) HUMAN RELATIONS COMMISSION (HRC) Three-year term Residency Requirement Commissioner Date of Appointment Present Term Expires Gabriel Kralik 05/21/2018 05/31/2020 Steven Lee 06/01/2017 05/31/2020 Eligibility Requirements: A commission of seven members who are not Council Members, officers or employees of the City and who are residents of the City of Palo Alto. Regular meetings are held at 7:00 p.m. on the second Thursday of each month. Terms are for three years and commence on June 1. (PAMC 2.16 and 2.22) LIBRARY ADVISORY COMMISSION (LAC) Three-year term Residency Requirement Commissioner Date of Appointment Present Term Expires Doug Hagan 05/01/2014 05/31/2020 Amy Murphy 06/01/2017 05/31/2020 Brigham Wilson 06/01/2017 05/31/2020 Eligibility Requirements: Composed of five members who shall be appointed by and shall serve at the pleasure of the City Council, but who shall not be Council Members, officers or employees of the City of Palo Alto. Each member of the commission shall have a demonstrated interest in public library matters. Regular meetings are held at 7:00 p.m. on the fourth Thursday of even numbered months. Terms are for three years and commence on June 1. (PAMC 2.16 and 2.24) PARKS AND RECREATION COMMISSION (PRC) Three-year term No Residency Requirement No terms expire in 2020 Eligibility Requirements: A commission composed of seven members who shall be appointed by and shall serve at the pleasure of the City Council, but who shall not be Council Members, officers or employees of the City of Palo Alto. Each member of the commission shall have a demonstrated interest in parks, open space and recreation matters. All members of the commission shall be residents of Palo Alto. Regular meetings are held at 7:00 p.m. on the fourth Tuesday of each month. Terms are for three years and commence on December 16. (PAMC 2.16 and 2.25) PLANNING AND TRANSPORTATION COMMISSION (PTC) Four-year term Residency Requirement Commissioner Date of Appointment Present Term Expires Ed Lauing 12/16/2016 12/15/2020 Doria Summa 12/16/2016 12/15/2020 Eligibility Requirements: A commission of seven members who are not Council Members, officers or employees of the city and who are residents of the City of Palo Alto. Regular meetings are held at 6:00 p.m. on the second and last Wednesdays of each month. Terms are for four years and commence on December 16. (PAMC 2.16, 2.20, and 19.04) PUBLIC ART COMMISSION (PAC) Three-year term No Residency Requirement Commissioner Date of Appointment Present Term Expires Jim Migdal 05/12/2014 05/31/2020 Amanda Ross 05/09/2011 05/31/2020 Hsinya Shen 06/01/2017 05/31/2020 Nia Taylor 05/01/2014 05/31/2020 Eligibility Requirements: A commission of seven members who are not Council Members, officers or employees of the City. Members shall be either members of the Architectural Review Board or shall be professional visual artists, professional visual arts educators, professional visual arts scholars or visual arts collectors whose authorities and skills are known and respected in the community and whenever feasible, who have demonstrated interest in, and have participated in, the arts program of the City of Palo Alto. Regular meetings are held at 7:00 p.m. on the third Thursday of each month. Terms are for three years and commence on June 1. (PAMC 2.16, 2.18 and 2.26) STORM WATER MANAGEMENT OVERSIGHT COMMITTEE (SWMOC) Four-year term Each Committee Member Must at all Times be Either a Palo Alto Resident, an Employee of a Palo Alto Business, or own Property Within the City of Palo Alto No terms expire in 2020 The Committee shall consist of seven members who are selected and appointed by the City Council for a term of four years. Committee members shall serve without compensation. Each Committee member shall be a resident of Palo Alto, an employee of a business located in Palo Alto or an owner of real property within the City. No member shall be a council member, officer or employee of the City. The committee shall meet at least once a year to review the proposed operating and capital budgets of the Storm Water Management Fund for the next fiscal year. UTILITIES ADVISORY COMMISSION (UAC) Three-year term Residency Requirement for six Members Commissioner Date of Appointment Present Term ExpiresLisa Forssell 06/01/2017 05/31/2020 Lauren Segal 06/01/2017 05/31/2020 Eligibility Requirements: A commission of seven members who are not Council Members, officers or employees of the City. Each member shall be a utility customer or the authorized representative of a utility customer. Six members of the commission shall at all times be residents of the City. Regular meetings are held at 7:00 p.m. on the first Wednesday of each month. Terms are for three years and commence on June 1. (PAMC 2.16 and 2.23) City of Palo Alto (ID # 10900) City Council Staff Report Report Type: Informational Report Meeting Date: 12/9/2019 City of Palo Alto Page 1 Summary Title: State housing legislation passed in 2019 Title: Summary of 2019 State Housing Legislation From: City Manager Lead Department: City Manager Recommendation This is an informational report and no Council action is requested. Discussion At the Policy & Services Committee meeting on November 12, 2019, Council Member Kniss requested a brief summary of state housing bills signed into law in 2019. Attachment A fulfills this request. Resource Impact There is no impact to Council receiving this informational item. Environmental Review This item is not a project for the purposes of the California Environmental Quality Act; an environmental review is not required. Attachments: • Attachment A: Housing Legislation List- Final 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link *Asterisk denotes bill refers specifically to affordable housing AB 68 (Ting) Land use: accessory dwelling units Chaptered Removes remaining barriers to the widespread adoption of ADUs as low-cost, energy efficient, affordable housing. This bill would delete the Accessory Dwelling Unit provision authorizing the imposition of standards on lot coverage and would prohibit an ordinance from imposing requirements on minimum lot size. The bill would revise the requirements for an accessory dwelling unit by providing that the accessory dwelling unit may be attached to, or located within, an attached garage, storage area, or an accessory structure. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB68 AB 116 (Ting) Local Government Chaptered Authorizes Enhanced Infrastructure Financing Districts (EIFDs) to issue debt without voter approval, and specifies that an EIFD must hold three public hearings prior to issuing debt. Current law requires the proposal submitted to the voters by the public financing authority and the resolution for the issuance of bonds following approval by the voters to include specified information regarding the bond issuance. This bill would instead authorize the public financing authority to issue bonds for these 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link purposes without submitting a proposal to the voters. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB116 AB 587 (Friedman) Accessory dwelling units: sale or separate conveyance Chaptered Allows more flexible utilization of single family lots by providing two homes for low-income families in need. Existing law prohibits local ADU ordinances from allowing ADUs to be sold or otherwise conveyed separate from the primary residence. This bill creates an exemption to this prohibition by allowing such tenancy in common sales to occur, but only in a very limited and narrow manner where the house and ADU are built by a non-profit whose mission is to sell those units to low-income families, that both the primary house and the ADU are sold to low-income families, and that any subsequent sale also be to a low-income family. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB587 AB 671 (Friedman) Chaptered Requires a local government to include a plan in their housing Would require a local agency to include a plan that incentivizes and 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link Accessory dwelling units: incentives element to incentivize and promote the creation of accessory dwelling units (ADUs). promotes the creation of accessory dwelling units that can be offered at affordable rent for very low, low-, or moderate-income households in its housing element. The bill would require the Department of Housing and Community Development to develop a list of existing state grants and financial incentives for operating, administrative, and other expenses in connection with the planning, construction, and operation of accessory dwelling units with affordable rent. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB671 AB 881(Bloom) Accessory dwelling units Chaptered Removes impediments to ADU construction. ADUs must receive streamlined approval if constructed in existing garages, and five-year owner occupancy is no longer required. This bill would remove potential impediments to Accessory Dwelling Unit construction in three ways: by limiting the criteria by which local jurisdictions can limit where ADUs are permitted; by clarifying that ADUs must be ministerially approved if constructed in existing garages; and by eliminating for five years the potential for local agencies to place 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link owner-occupancy requirements on the units. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB881 AB 1110 (Friedman) Rent increases: noticing Chaptered Requires 90 days’ notice before a 10% rent increase for tenants with a month-to-month tenancy. Extends the notice period to which tenants are entitled for annual rent increases of more than 10% on month-to-month residential tenancies. Under current law, tenants are given 30 days' notice of rent increases up to 10% and 60 days' notice of rent increases above 10%. Under this bill, tenants would receive 90 days' notice of rent increases above 10%. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB1110 AB 1255 (Rivas) Surplus public land: inventory Chaptered Requires cities and counties to report surplus urban land to the State. State then has to include this information in a public digitized inventory. Requires each city and county to report to the state Department of Housing and Community Development (HCD) an inventory of its surplus lands located in urbanized areas or urban clusters. Requires 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link HCD to provide this information to the state Department of General Services (DGS) for inclusion in a digitized inventory of state surplus land sites. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB1255 AB 1399 (Bloom) Residential real property: rent control: withdrawal of accommodations Chaptered Makes changes to the Ellis Act, including prohibiting a landlord paying former tenants damages in lieu of offering re-rental. Current law authorizes a public entity acting pursuant to the Ellis Act to require an owner who offers accommodations for rent or lease within a period not exceeding 10 years from the date on which they were withdrawn, as specified, to first offer the unit to the tenant or lessee displaced from that unit by the withdrawal, subject to certain requirements. If the owner fails to comply with this requirement, the owner is liable to a displaced tenant or lessee for punitive damages not to exceed 6 months’ rent. This bill would prohibit a payment of the above-described punitive damages from being construed to extinguish the owner’s obligation to offer the 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link accommodations to a prior tenant or lessee. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB1399 *AB 1482 (Chiu) Tenant Protection Act of 2019: tenancy: rent caps Chaptered Places an upper limit on annual rent increases: 5% plus inflation. Also prevents landlords from evicting tenants without just cause. Would, with certain exceptions, prohibit an owner of residential real property from terminating a tenancy without just cause, which the bill would require to be stated in the written notice to terminate tenancy when the tenant has continuously and lawfully occupied the residential real property for 12 months. Would also place an upper limit on annual rent increase at CPI + 5%. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB1482 AB 1483 (Grayson) Housing data: collection and reporting Chaptered Requires local agencies to post on their websites the type and amount of each fee imposed on a housing development project. This bill requires local jurisdictions to provide public information regarding its zoning ordinances, development standards, fees, exactions, and affordability requirements. This bill also requires a 10-year housing data 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link strategy to be included in each of HCD's subsequent California Statewide Housing Strategies. The data strategy must be designed to help inform and enforce housing policy and process. https://leginfo.legislature.ca.gov/face s/billTextClient.xhtml?bill_id=201920 200AB1483 *AB 1485 (Wicks) Housing development: streamlining Chaptered Ensures timely approval of unsubsidized, zoning compliant rental and ownership housing projects. The Planning and Zoning Law requires that a development be subject to a requirement mandating a minimum percentage of below market rate housing based on one of 3 specified conditions. This bill would modify that condition to authorize a development that is located within the San Francisco Bay area to instead dedicate 20% of the total number of units to housing affordable to households making at or below 120% of the area median income with the average income of the units at or below 100% of the area median income. 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB1485 AB 1486 (Ting) Surplus land Chaptered Requires local governments to include specified information relating to surplus lands in their housing elements and annual progress reports (APRs). This bill expands Surplus Land Act requirements for local agencies, requires local governments to include specified information relating to surplus lands in their housing elements and annual progress reports (APRs), and requires the state Department of Housing and Community Development (HCD) to establish a database of surplus lands. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB1486 *AB 1487 (Chiu) San Francisco Bay area: housing development: financing Chaptered Establishes the San Francisco Bay Regional Housing Finance Act and enables the Bay Area voters to raise money for affordable housing. This bill, the San Francisco Bay Area Regional Housing Finance Act, would establish the Bay Area Housing Finance Authority (hereafter the authority) and would state that the authority’s purpose is to raise, administer, and allocate funding for affordable housing in the San Francisco Bay area, and provide 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link technical assistance at a regional level for tenant protection, affordable housing preservation, and new affordable housing production. The bill would provide that the governing board of the Metropolitan Transportation Commission serve as the governing board of the authority. https://leginfo.legislature.ca.gov/face s/billTextClient.xhtml?bill_id=201920 200AB1487 *AB 1743 (Bloom) Local government: properties eligible to claim or receiving a welfare exemption Chaptered Will help reduce the cost of building affordable housing and allow rents to be affordable to the State’s lowest income households. The Mello-Roos Community Facilities Act of 1982, after a community facilities district has been created and authorized to levy specified special taxes, authorizes the legislative body, by ordinance, to levy the special taxes at the rate and apportion them in the manner specified in the resolution forming the community facilities district. The act requires properties or entities of the state, federal, or local governments, except as otherwise provided, to be exempt from the special tax. This bill would also require property receiving 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link a welfare exemption, as specified, to be exempt from the special tax. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB1743 *AB 1763 (Chiu) Planning and zoning: density bonuses: affordable housing Chaptered Revises Density Bonus Law (DBL) to require a city or county to award a developer if 100% of the units in a development are restricted to lower income households. Would require a density bonus to be provided to a developer who agrees to construct a housing development in which 100% of the total units, exclusive of managers’ units, are for lower income households. However, the bill would provide that a housing development that qualifies for a density bonus under its provisions may include up to 20% of the total units for moderate-income households. The bill would also require that a housing development that meets these criteria receive 4 incentives or concessions under the Density Bonus Law and, if the development is located within ½ of a major transit stop, a height increase of up to 3 additional stories or 33 feet. 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00AB1763 SB 6 (Beall) Residential development: available land Chaptered Requires the state to create a public inventory of local sites suitable for residential development, along with state surplus lands. This bill: Requires HCD, on or before December 31st each year, to provide to DGS a list of lands suitable and available for residential development as identified by local governments in their housing elements. Requires DGS to create a database of this information, as well as information on excess or surplus state lands, and to make this database available to and searchable by the public through its Web site. Requires each local government, for housing elements adopted or amended on or after January 1, 2021, to submit an electronic copy of its housing element inventory to HCD. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00SB6 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link SB 13 (Wieckowski) Accessory dwelling units Chaptered Creates a tiered fee structure which charges ADUs more fairly based on their size and location. This bill creates a tiered fee structure which charges ADUs based on their size, to take into consideration that the impact of an ADU on a neighborhood’s infrastructure and services is different from the impact created by single-family homes or multifamily buildings. This bill also addresses other barriers such as lowering the application approval timeframe, creating an avenue to get unpermitted ADUs up to code, and enhancing an enforcement mechanism allowing HCD to ensure that localities are following ADU statute. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00SB13 SB 18 (Skinner) Keep Californians Housed Act Chaptered Eliminates the sunset on a provision that guarantees all tenants, whose landlord is foreclosed on, get at least 90 days’ notice before they must vacate the rental property. Current law requires a tenant or subtenant in possession of a rental housing unit under a month-to-month lease at the time that property is sold in foreclosure to be provided 90 days’ written notice to quit before the tenant or subtenant may be removed from the property. Current law also 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link provides tenants or subtenants holding possession of a rental housing unit under a fixed-term residential lease entered into before transfer of title at the foreclosure sale the right to possession until the end of the lease term, except in specified circumstances. Current law repeals these provisions as of December 31, 2019. This bill would delete the above-described repeal date, thereby extending the operation of these provisions indefinitely. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00SB18 SB 113 (Committee on Budget and Fiscal Review) Housing Chaptered States the Legislature’s intent to establish a trust to manage $331 million in state funds that are court-ordered to be directed to provide borrower relief and legal aid to homeowners and renters. This bill, in accordance with a specified California appellate court decision, would provide for $331,044,084 to be transferred from the General Fund to the National Mortgage Special Deposit Fund. The bill would state the intent of the Legislature to create a trust to manage these funds, as specified. The bill would specify purposes to which these funds will be applied. 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link The bill would appropriate $100,000 from the General Fund to the Department of Finance to study the most effective way to establish and manage a trust for those purposes. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00SB113 *SB 196 (Beall) Property taxes: community land trust Chaptered Enacts a new welfare exemption from property tax for property owned by a Community Land Trust (CLT). Current property tax law requires the assessor to consider the effect of certain enforceable restrictions, including, among others, a contract that is a 99-year ground lease between a community land trust and the qualified owner of an owner- occupied single-family dwelling or unit in a multifamily dwelling, that subjects a single-family dwelling or unit in a multifamily dwelling and the leased land on which the dwelling or unit is situated to affordability restrictions. This bill would require, when valuing property subject to the enforceable restriction described above, that the sale or resale price of the dwelling or unit be rebuttably presumed to include both the 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link dwelling or unit and the leased land on which the dwelling or unit is situated, and would authorize this presumption to be overcome if the assessor establishes by a preponderance of the evidence that all or a portion of the value of the leased land is not reflected in the sale or resale price of the dwelling or unit. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00SB196 *SB 222 (Hill) Discrimination: veteran or military status Chaptered Prevents landlords from refusing to rent to a tenant merely because the tenant proposes to pay with a Veterans Affairs Supportive Housing (VASH) voucher. Existing law declares that housing discrimination on the basis of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, or genetic information is against public policy. This bill would state findings and declarations of the Legislature regarding the importance of housing for veterans and its priority, and declare that housing discrimination 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link on the basis of veteran or military status is against public policy. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00SB222 *SB 329 (Mitchell) Discrimination: housing: source of income Chaptered Prohibits landlords from discriminating against tenants who rely upon housing assistance paid directly to landlords, such as a Section 8 voucher. The California Fair Employment and Housing Act prohibits housing discrimination, including discrimination through public or private land use practices, decisions, or authorizations, based on specified personal characteristics, including source of income. This bill would redefine the term “source of income,” to mean verifiable income paid directly to a tenant or to a representative of a tenant, or paid to a housing owner or landlord on behalf of a tenant, including federal, state, or local public assistance and housing subsidies. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00SB329 SB 330 (Skinner) Housing Crisis Act of 2019 Chaptered Places restrictions on certain types of development standards, This bill prevents local governments from downzoning unless they up- 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link amends the Housing Accountability Act (HAA), and makes changes to local approval processes and the Permit Streamlining Act. zone elsewhere, and it stops them from changing the rules on builders who are in the midst of going through the approval process. SB 330 also limits the application of design standards that drive up the cost of building. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00SB330 SB 644 (Glazer) Tenancy: security deposit: service members Chaptered Lowers the amount that a landlord can charge service members for a security deposit on residential rental housing. This bill would prohibit a landlord from demanding or receiving security from a service member who rents residential property in which the service member will reside in an amount or value in excess of an amount equal to one months’ rent, in the case of unfurnished residential property, or in excess of an amount equal to 2 months’ rent, in the case of furnished residential property. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00SB644 2019 Housing Related Legislation City of Palo Alto Bill/Author Status Brief Bill Summary Robust Bill Text/Link *SB 744 (Caballero) Planning and zoning: California Environmental Quality Act: permanent supportive housing Chaptered Creates an expedited CEQA review process for supportive housing developments that receive NPLH funding. Existing law requires that, before the disbursement of any funds for loans made pursuant to the competitive component of the No Place Like Home Program, the department and the development sponsor, enter into a regulatory agreement that includes specified provisions. This bill would specify that a decision of a public agency to seek funding from, or the department’s awarding of funds pursuant to, the No Place Like Home Program is not a project for purposes of CEQA. https://leginfo.legislature.ca.gov/face s/billNavClient.xhtml?bill_id=2019202 00SB744