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HomeMy WebLinkAbout2017-06-19 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. June 19, 2017 Regular Meeting Council Chambers 6:00 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. 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 Study Session 6:00-7:00 PM 1.Palo Alto Safe Routes to School Partnership Annual Update Special Orders of the Day 7:00-7:15 PM 2.Proclamation Honoring Penny Ellson for 15 Years of Service to the Palo Alto Safe Routes to School Partnership Agenda Changes, Additions and Deletions City Manager Comments 7:15-7:25 PM Oral Communications 7:25-7:40 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Minutes Approval 7:40-7:45 PM 3.Approval of Action Minutes for the June 5, 2017 Council Meeting REVISED MEMO 2 June 19, 2017 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Consent Calendar 7:45-7:50 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 4.Approval of Contract Number C17167812 With Truepoint Solutions, LLC for a Three Year Contract, $400,000 Annually With a Not-to- Exceed Amount of $1,200,000 to Provide Services in Scripting, Reporting, and Other Technical Support of the City's Development Permitting System, Accela, for Development Services and Planning and Community Environment 5.Approval of Amendment Number 1 to Contract Number C16161852 With PSC Industrial Outsourcing, LP (PSC) to Increase Compensation for the Second and Third Contract Years by $102,217 for a Total Not- to-Exceed Amount of $585,920 to Address Higher Landfill Disposal Costs for the Transportation and Disposal of ash From the Regional Water Quality Control Plant 6.Adoption of a Resolution Approving a Professional Services Agreement Between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services in a Total Amount Not-To-Exceed $500,000 for a Three Year Term 7.Approval of the Purchase of Police Radio Consoles for the Silicon Valley Regional Communications System (SVRCS) Regional 700 MHz Trunked Radio System in an Amount Not-to-Exceed $917,000 With an Option for Utilities to Purchase two Additional Consoles for an Amount Not-to- Exceed $72,000 8.Approval of a Contract Amendment With Team Sheeper for Operational Management of Rinconada Pool's Lap and Open Swim Programs as Well as Oversight of Rinconada Masters and Palo Alto Stanford Aquatics Programs 9.Approval of a Purchase Order With National Auto Fleet Group, in the Amount of $214,782 for the Purchase of a 2017 Ford F-550 XL 4WD With a Knapheide 14' Value Master Platform With Weco Industries Equipment and Approve Budget Amendments in the Wastewater Collection Fund and Vehicle Replacement and Maintenance Fund 10.Approval of a Contract With G4S Secure Integration in the Amount of$1,413,734 to Provide Design and Construction of a Video Management System Along the Caltrain Corridor, Capital Improvement Program Project PE-18001, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed 3 June 19, 2017 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. $136,246 in Total Value and a System Maintenance Agreement for a Five-year Term in an Amount Not-to-Exceed $225,000 Annually, Subject to Consumer Price Index (CPI) Increases and Appropriation of Funds Through the Annual Budget Process 11.Acceptance of the Institute of Museums and Library Services Grant and Sherrie Innis Estate Bequest and Approve Budget Amendment in the General Fund 12.SECOND READING: Adoption of an Ordinance Dedicating 36.5 Acres of Land at the Former ITT Property Antenna Field to Become Part of the Baylands Nature Preserve (FIRST READING: June 5, 2017 PASSED: 9-0) Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:50-8:00 PM 13.PUBLIC HEARING: Adoption of a Resolution Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein 8:00-8:15 PM 14.PUBLIC HEARING AND PROPOSITION 218 HEARING: Staff Recommendation That the City Council Adopt two Resolutions: 1) Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service From Fire Hydrants), W-4 (Residential Master- Metered and General Non-Residential Water Service), and W-7 (Non- Residential Irrigation Water Service) to Increase Rates up to 4 Percent, and Repeal the Drought Surcharges Effective July 1, 2017; and 2) Amending Rate Schedule R-1 (Residential Refuse Rates) to Increase Monthly Refuse Service Rates by 5 Percent Effective July 1, 2017 8:15-9:30 PM 15.PUBLIC HEARING: Adoption of a Resolution for the Creation of a new Residential Preferential Parking (RPP) Program in the Southgate Neighborhood Bounded by Churchill Avenue, Caltrain Rail Corridor, Sequoia Avenue, and El Camino Real; and a Finding of Exemption From Review Under the California Environmental Quality Act (CEQA) Pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations 9:30-10:15 PM 16.PUBLIC HEARING: Human Relations Commission Recommends Adoption of the 2017-18 Action Plan and Associated 2017-18 Funding Allocations and Adoption of a Resolution Approving the use of 4 June 19, 2017 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Community Development Block Grant Funds for Fiscal Year 2017-18 Consistent With the Human Relation Commission's Recommendation Inter-Governmental Legislative Affairs Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. Policy and Services Committee Recommendation to Reaffirm Palo Alto’s Position to Reduce Aircraft Noise and Direction on Further Near- Term Advocacy Steps, Including Sending a Letter From the Mayor to the United States Department of Transportation and Other Federal Officials 17. 10:15-10:45 PM 5 June 19, 2017 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report EIR Scoping Report for the Castilleja School Expansion Project City of Palo Alto Utilities Strategic Plan Performance Update for Fiscal Year 2016 Informational Report to Council on the Development of a new Utilities Department Strategic Plan and Key Drivers Clarification to FY2017 Municipal Fee Schedule for Development Services Public Letters to Council Set 1 Standing Committee Meetings Special City/School Liaison Committee Meeting June 20, 2017 Finance Committee Meeting Cancelation June 20, 2017 City of Palo Alto (ID # 7867) City Council Staff Report Report Type: Study Session Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Safe Routes to School Annual Update Title: Palo Alto Safe Routes to School Partnership Annual Update From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the Council receive a Staff presentation, review the enclosed annual update for the Safe Routes to School Partnership, and comment on the adopted Five-Year Work Plan. No formal action is requested. Executive Summary The local Safe Routes to School (SRTS) Partnership between the City, the Palo Alto Unified School District (PAUSD), and the Palo Alto Council of PTAs (PTAC) works to reduce risk to students en route to and from school, and to encourage more families to choose alternatives to driving solo more often. In May 2016, the Palo Alto Safe Routes to School Partnership celebrated its 10-year anniversary. This report documents the progress of the Safe Routes Partnership since then and presents the newly-drafted Five-Year Work Plan. Background The child transportation safety-focused collaboration between the City, PAUSD and the PTA has existed in Palo Alto for more than 40 years. In 2006, this collaboration adopted a National Consensus Statement relying on a ‘5-E’ (Encouragement, Education, Engineering, Enforcement and Evaluation) injury prevention framework to support safe, healthy and active school commutes (See Attachment B). In 2016, the anticipated retirement of two highly valued Partnership members, along with the introduction of new PTA and City staff leadership prompted a process to review program metrics, assess opportunities and guide future development. As recommended during this process, and to align with national standards, the Partnership adopted a sixth ‘E’ for Equity to ensure that the SRTS Partnership provides safe and healthy outcomes for all students. City of Palo Alto Page 2 Activities 2016-17 has been a year of transition amidst a number of highlights listed below.  A Five-Year Work Plan (See Attachment A);  138 educational trainings to PAUSD students and parents;  Adopting ‘Equity’ as a key area of focus;  Expanded secondary school outreach and program metrics;  Sustained levels of active transportation mode-share;  A $919,354 Safe Routes to School Vehicle Based Emissions Reductions grant (VERBS) to enhance South Palo Alto bikeways recommended for funding by the VTA (not yet budgeted). A comprehensive table of 2016-17 SRTS activities organized by the six Es is provided below: Table 1: Safe Routes to School Program Activities, 2016-2017 Activity Partners (in order of leadership) Description Outcomes Encouragement Bike Palo Alto! Helmet Fitting Palo Alto Green Teams, CoPa SRTS, Lucille Packard Children’s Hospital Injury Prevention Coordinated a bicycle safety education table and offered customized helmet fittings  Ten 15-minute presentations  Est. 50 participants Bike to Work Day Silicon Valley Bicycle Coalition, CPA SRTS, community volunteers Coordinated four volunteer-run Energizer Stations and assisted with developing promotional materials targeted to residents and City staff  2143 cyclists  Record numbers at Wilkie Energizer Station  150 safety flyers distributed to students at Cal Ave. Ped/Bike Tunnel Energizer Station Fall and Spring Walk and Roll to School Events PTA, PAUSD, CoPa SRTS SRTS Events to encourage families to try walking, biking, carpooling, or transit  34 events  Est. 200 volunteers Hoover Parent Outreach Discussions CPA, PTA, PAUSD, Sierra Club Met with parents and community members to improve traffic congestion, appoint new SRTS leadership and encourage mode shift  3 meetings  Anti-idling pilot introduced  Teambuilding City of Palo Alto Page 3 strategies initiated Middle and High School Back to School Events PTA, PAUSD, CoPa SRTS, Palo Alto Medical Foundation (PAMF) Commute planning, bicycle licensing, bike check-ups, and helmet fitting  Five 2-3 hour events Safe Routes PTA Champion Volunteer Orientation PTA, CPA SRTS 2.5 hour training for incoming Safe Routes to School Champions  Est. 12 participants Education Bicycle Life Skills Curriculum CoPa SRTS, PAUSD, PAPD, PTA, Stanford Injury Prevention, PAMF, Bicycle Outfitter Three-lesson bicycle safety trainings for all PAUSD 3rd graders  Approx. 4.5 hours of bike safety education per student  36 presentations  863 students Biking with Preschoolers Workshops CoPa SRTS Bicycle safety education for parents of preschoolers  Two 1-2 hour presentations  38 participants Bike to Work Day Employee Bike Commute Workshop Silicon Valley Bicycle Coalition, CoPa SRTS Bike safety education for City Employees interested in bike commuting  One 1-hour presentation  12 participants Bike Rodeo Captain Training CoPA, PTA Prepared Bike Rodeo Captains for Bike Rodeo event coordination at their school  5 trainings  All 12 schools trained Bringing Up Bicyclists PTA, CoPa SRTS Bicycle safety education for parents of elementary-age children  One 2-hour presentation  10 participants Educational Materials for New Infrastructure CoPa SRTS, Transportation staff Developed educational materials to encourage safe use of new infrastructure  One roundabout navigation poster  One Jordan 2-way Bikeway instructional handout Eighth Grade Getting to High School Event CoPa SRTS, PTA, PAUSD Bike safety and high school commute planning information for all 8th graders  Three 2-hour presentations  668 students Fifth Grade Bicycle Safety Refresher CoPa SRTS, PAUSD Bicycle safety assembly for all 5th graders entering middle school  Twelve 40-60 minute presentations City of Palo Alto Page 4  978 Students Fifth Grade Bicycle Repair Clinic Pilot PTA, CPA SRTS, Bay Area BikeMobile Opt-in repair clinic for 5th Grade students hosted at Addison Elementary  One-hour presentation  10-20 students Back to School Night Table for Jordan Families CoPa SRTS Tabled Jordan families with information about the 2-way bikeway  One 2-hour tabling session K-2 Pedestrian Safety Safe Moves, CPA SRTS Pedestrian safety assemblies for all PAUSD K-2nd graders  58 45-minute presentations  2322 students Middle School Bike Skills Wheelkids Bicycle Club, CoPa SRTS On-bike safety education for middle school students and parents (opt-in program)  Seven- 4.5 hour classes  72 participants Police Training CoPa SRTS Bicycle safety, infrastructure, and enforcement training for PAPD  Three 45-minute presentations Sixth Grade Back to School Bicycle Safety Orientation PAUSD, CoPa SRTS Bicycle safety assembly for all 6th graders  14 one-hour presentations  1029 students Stanford Service Learning Pilot CoPa SRTS, Stanford University Community Engaged Learning staff Worked with “Obesity in America” class to develop Police training module for new bicycle infrastructure and to analyze collision data  12 students Engineering 2012 Bicycle + Pedestrian Transportation Plan Projects Transportation staff, Public Works staff Improvements identified by the community to enhance walking and bicycling  Ongoing design feedback Bicycle Boulevard Program Transportation and Public Works staff Bicycle Boulevard projects that prioritize improvements for school children, pedestrians, and people on bicycles  Ongoing design feedback Complete Streets Projects Public Works staff with Transportation staff input Roadway maintenance projects that consider all road users, including people on foot or on bicycles  Ongoing design feedback Palo Alto Information CoPa SRTS Requests for improvements on school routes submitted by the  67 Palo Alto 311 requests since City of Palo Alto Page 5 Requests community October, 2015  Site visits at Addison, Escondido, Gunn, Hoover and Palo Verde Safe Routes to School Projects Transportation and Public Works staff Projects on school routes arising from VERBS grant analysis and from PAUSD or PTA requests  In process SRTS Site Assessments CoPA SRTS Generate updated Walk and Roll Maps and document infrastructure needs at 2 schools per year.  Site assessments initiated at Duveneck and Ohlone Enforcement Adult Crossing Guards PAPD Crossing guards for elementary and middle school students at qualifying intersections  29 Crossing Guards Juvenile Diversion Program PAPD, Traffic Safe Communities Network of Santa Clara County “Traffic School” for youth with on-bike citations  32 Participants Monthly Collision Reporting PAPD Bicycle and pedestrian collision data shared monthly with Safe Routes/Transportation staff  Monthly reports Traffic Law Enforcement PAPD Enforcement of traffic laws for both drivers and bicyclists  51 citations (mostly helmet violations) Evaluation Classroom Commute Tallies CoPa SRTS, PAUSD Expanded online collection of commute mode tallies to all PAUSD students  See Table 4 Ongoing Program Evaluation CoPa SRTS Post-program surveys of teachers, administrators, and volunteers  67 Evaluations Parked Bicycle Counts PTA, CoPa SRTS Counts of parked bicycles at all PAUSD schools  See Table 3 Equity Bike, Helmet, & Bike Light CoPa SRTS, PAUSD, PTA, Palo Alto Distributed donated new children’s bikes with helmets,  15 bicycles  300 lights City of Palo Alto Page 6 Giveaways Bicycles, Lucille Packard Children’s Hospital, Gunn ReCycled coordinated procurement and recruited volunteers to distribute low-cost bike lights at dusk on major biking routes  60 helmets  Local PTA award recognition Bike Repair Bay Area BikeMobile, PTA, CoPa SRTS Free school-based bicycle repair clinics that engage students in hands-on bike repair  10 schools  200 bikes repaired Greendell Programming CoPa SRTS, PAUSD Initiated Train-the-Trainer curriculum development for ESL classes, held walkabouts for Walk and Roll Map production, and began the process of identifying a Safe Routes Champion  1 walkabout Materials Translation Metropolitan Transportation Commission, Spare the Air Youth Staff, CoPa SRTS Translation of educational and evaluation materials into Spanish and Mandarin  2 Documents Translated  150 Mandarin flyers shared at Chinese New Year Festival Source: Planning and Community Environment Department, May 2017 Program Evaluation Our 2016-17 education programs touched approximately 5,860 students, or roughly 49% of total enrollment. For the first time this year, the Eighth Grade Getting to High School program was rolled out at all three middle schools. To further increase outreach and pending staff capacity, 2018 goals will include expanding secondary programming to support opt-in high school educational opportunities, including growing Palo Alto’s participation in the Youth for Environmental Sustainability (YES) Conferences sponsored by the Metropolitan Transportation Commission. Table 2: Safe Routes to School Core Education Program Reach Program Number of Lessons/ Assemblies Number of PAUSD Students Taught K-2 Pedestrian Safety 58 2322 Third Grade Bicycle Life Skills Curriculum 36 863 Fifth Grade Bicycle Refresher 12 978 Sixth Grade Back to School Bicycle Safety Orientation 14 1029 City of Palo Alto Page 7 Eighth Grade Getting to High School Event 3 Est. 786 Total for Education Programs 123 5860 Source: Planning and Community Environment Department, May 2017 Tables 3 and 4 present yearly alternative mode share/shift, calculated by using classroom travel tallies and bike rack counts each fall. Bike rack counts are administered by PTA volunteers calculating the number of parked bikes at their school. Table 3: 2016 Parked Bicycle Counts at PAUSD Schools (See Attachment C:) Source: Planning and Community Environment Department, May 2017 * This is a 1% decrease from last year's count, however the absolute number of bicycles counted is higher than last year's count of 1,487 bicycles. Classroom travel tallies are administered by teachers through a show of student hands. In 2016- 17, new online data gathering methods for the classroom travel tally helped expand the program’s capacity to conduct travel tallies at the secondary level. Online tally response rates varied from 13 to 96% at each campus with a mean response of 49%. The following data results were extrapolated to approximate responses from the entire school population. Table 4: 2016 PAUSD Classroom Tally Projection of Mode to School School Type 2016 Parked Bikes % Biking % + or – since 2015-16 Elementary 802 16% +2 Middle 1,508 49% -1* High 1,707 44% +1 Total 4,017 33% +1 Walk (%) Bike (%) Carpool (%) Transit (%) Other* (%) Drive (%) Response Rate % Active Transp. Modeshare % Alternative Mode shift + or – since 2015-16 (%) Elem. 20 15 3 4 4 53 55 46 -1%* City of Palo Alto Page 8 Source: Planning and Community Environment Department, May 2017 * Other includes scooter and skateboard data and was added to the pedestrian totals **This was the first year of data collection for the secondary schools. 2015-16 comparison data is not available. Data Interpretation Weather variations, date of data collection, classroom tally participation rates, school-based special events, volunteer-based calculation errors and whether bicycles are left in the rack or removed during the school day impact the validity of these results. 2017-18 goals include improving response rates to increase the level of confidence that the data reflects the student population. The 1% change in mode shift for elementary schools is well within the norm of data fluctuations and suggests sustained levels of alternative mode use at a rate that is more than twice the national average. Nevertheless, the relatively high use of the family car for school commutes of two miles or less continues to represent a growth area for the program. As the City enters the construction phase of the neighborhood traffic safety and bicycle boulevard projects this summer, the Partnership’s target for the immediate future will be to sustain alternative mode share numbers, with the anticipation that mode-share will increase as more elements of Bicycle and Pedestrian Transportation Plan achieve implementation. Discussion Adopted SRTS Goals, 2018-2022 The 2017 Five-Year Work Plan that was reviewed and accepted at the March 16, 2017, City School Traffic Safety Committee (CSTSC) meeting will serve as a roadmap for the program’s continued development. The seven overarching goals of the Five-Year Plan are listed below. The Safe Routes to School Partnership will prioritize Goals 2 and 4, in addition to its ongoing yearly goals and activities. The detailed work plan is presented in Attachment A. 1. Grow & strengthen community-wide support for the SRTS E’s & for safe, active, healthy, sustainable school commutes 2. Update SRTS policies 3. Continue to provide and improve SRTS education in schools and in the greater community 4. Develop and maintain a communications plan to expand our web presence, program, and education materials 5. Evaluate the program regularly and use the data to improve SRTS 6. Engineer safer routes to school Middle 11 58 3 4 2 22 58 78 n/a** High 7 50 6 6 .5 30 33 69.5 n/a** Total 13 41 4 5 3 35 49 64.5 -1% City of Palo Alto Page 9 7. Further integrate SRTS into the Palo Alto Transportation Element and across City departmental functions Goals 1, 2 and 7 stand out as new directions for the partnership. Work toward Goal 1 has begun via collaboration with Palo Alto Medical Foundation Pediatrics and Stanford University. Goal 2 is intended to preserve key practices and knowledge. At the December 9, 2016 Board Policy Review Committee, PAUSD School Board Members directed the Partnership to develop a policy that reflects Palo Alto's status as a national Safe Routes to School leader and model for the region. Goal 7 highlights existing and new areas collaboration within the City for the Safe Routes program, including ensuring that future shuttle service accommodates student school commute needs; improving communications about and conditions on school routes where construction is occurring and collaborating with the Office of Sustainability to assess SRTS outcomes. Policy Implications This program is consistent with key transportation goals in the City’s Comprehensive Plan, including giving priority to facilities, services, and programs that encourage and promote walking and bicycling, and providing a high level of safety for motorists, pedestrians, and bicyclists on Palo Alto streets. Specific policies and programs include:  Policy T-14: Improve pedestrian and bicycle access to and between local destinations, including public facilities, schools, parks, open space, employment districts, shopping centers, and multi-modal transit stations.  Policy T-39: To the extent allowed by law, continue to make safety the first priority of citywide transportation planning.  Policy T-40: Continue to prioritize the safety and comfort of children on school travel routes. This includes program T-45, which calls for providing adult crossing guards at school crossings that meet adopted criteria, and T-46, which encourages the City- sponsored bicycle education programs in the public schools. Safe Routes to School policy implications are also compatible with Sustainable Climate Action Plan (S/CAP) goals to reduce single occupancy vehicle use in Palo Alto. Studies show that even a 5% increase in a neighborhood’s walkability can reduce vehicle miles traveled by 6%. This year, the Partnership further supported the reduction of greenhouse gas emissions by supporting the Sierra Club’s school-based anti-idling pilot at Hoover Elementary School. Timeline The Safe Routes to School Partnership supports an ongoing, year-round program which includes both engineering and programmatic elements. A timeline of recently completed and upcoming infrastructure projects that reduce risk to students is included in Table 5. City of Palo Alto Page 10 Table 5: SRTS Infrastructure Project Timeline Project School Routes to be Improved Completion Date or Future Construction Start Churchill Ave Enhanced Bikeway, Phase 0 Palo Alto HS Completed April 2016 Cowper/Coleridge High Visibility Crosswalk Walter Hays Completed April 2016 Georgia Ave High Visibility Crosswalk and Bulb- out Terman MS Gunn HS Completed Summer 2016 Park Blvd Early Implementation, Stanford Ave to Cambridge Ave Jordan MS Palo Alto HS Completed Summer 2016 Los Robles Bikeway Enhancements Briones Terman MS Gunn HS Completed Summer 2016 North California Ave 24-hour Bicycle Lanes Jordan MS Palo Alto HS Completed Fall 2016 Middlefield Road Enhanced Bikeway Connection & Sidewalk Widening Jordan MS Palo Alto HS Completed Fall 2016 Cowper/Coleridge Traffic Circle Trial Walter Hays Ongoing Garland Drive Sharrows Jordan MS May 2017 Donald/Arastradero Intersection Spot Improvements Terman MS Summer 2017 Overcrossing/Undercrossing Improvements Jordan MS Palo Alto HS Summer 2017 Amarillo Ave-Moreno Ave Bicycle Boulevard El Carmelo, Ohlone, Palo Verde Summer 2017 Bryant Street Bicycle Boulevard Upgrade Addison, El Carmelo JLS MS Jordan MS Palo Alto HS Gunn HS Summer 2017 Louis Road-Montrose Ave Bicycle Boulevard Fairmeadow JLS MS Gunn HS Summer 2017 Ross Road Bicycle Boulevard El Carmelo, Ohlone, Palo Verde Jordan MS Gunn HS Palo Alto HS Summer 2017 Channing/St. Francis Wayfinding Signage Duveneck September 2017 Charleston/Arastradero Corridor Plan Barron Park, Briones, Hoover, Fairmeadow JLS MS Terman MS Winter 2017/18 City of Palo Alto Page 11 Gunn HS Churchill Ave Enhanced Bikeway, Phase 1 Palo Alto HS Spring 2018 Bryant Street Bicycle Boulevard Extension Fairmeadow, Hoover JLS MS Gunn HS Summer 2018 Maybell Avenue Bicycle Boulevard Briones Terman MS Gunn HS Summer 2018 Park Blvd/Wilkie Way Bicycle Boulevard Barron Park, Briones, Terman MS Gunn HS Summer 2018 East Meadow Drive and Fabian Enhanced Bikeways Fairmeadow, Hoover, Palo Verde JLS MS Gunn HS January 2020 Pending VERBS Funding Source: Planning and Community Environment Department, April 2017 Resource Impacts The Safe Routes to School team currently consists of one full-time and two part-time coordinators for a total of 2.0 FTE (full time equivalents). The Safe Routes to School Fiscal Year 2018 Proposed Capital Improvement Plan (CIP) Budget includes $172,789 for the Safe Routes to School CIP Project, PL-00026, and proposes funding through Fiscal Year 2022, for a five year total of $1.55 million for this project. The CIP project allows for strategic investments in school route safety infrastructure, such as crosswalks, pedestrian flashing beacons, improved signage, and street markings. Projects that appear in the City’s Capital Improvement Plan (CIP), and are financed through various means, including the Street Maintenance Program, the Bicycle + Pedestrian Transportation Plan Implementation Program, and the Safe Routes to School Program. The Safe Routes to School CIP project is partially funded from the Gas Tax Fund. Environmental Review This agenda item is for the purpose of obtaining City Council input and is not a “project” requiring review under the California Environmental Quality Act (CEQA). Attachments: Attachment A: Final SRTS Five-Year Work Plan (DOCX) Attachment B: The 6 E's of Safe Routes to School (PDF) Attachment C: 2016 Secondary Bike Count Graphs (PDF) PALO ALTO SAFE ROUTES TO SCHOOL PARTNERSHIP FIVE-YEAR WORKPLAN OVERVIEW* *Five-Year Work Plan goals and strategies depend on the Safe Routes to School Partnership’s funding and capacity, and may be subject to change as demand dictates. OUR MISSION To enhance & sustain the City / PAUSD / PTA community partnership to reduce risk to students en route to & from school & to encourage more families to choose healthy, active, sustainable alternatives to driving solo more often. SEVEN GOALS YEAR 1 STRATEGIES TO ACCOMPLISH GOALS: 7/1/17-6/30/18 YEARS 2-5 STRATEGIES TO ACCOMPLISH GOALS: 7/1/18-6/30/22 Grow & strengthen community- wide support for the SRTS E’s & for safe, active, healthy, sustainable school commutes Update SRTS policies Continue to provide and improve SRTS education in schools and in the greater community Develop and maintain a communications plan to expand our web presence, program and education materials Evaluate the program regularly and use the data to improve SRTS Engineer safer routes to school Further integrate SRTS into the Palo Alto Transportation Element and across City departmental functions Build out two service learning education, evaluation and enforcement projects with Stanford Complete two site assessments and update Walk and Roll Maps Update City Comprehensive Plan policies Develop a process to assess transportation impacts from school attendance, boundary changes and overflow Expand crossing guard evaluation and reporting mechanisms Develop a process for integrating SRTS in all current and long-range planning efforts Participate in countywide SRTS data pilot Integrate Statewide Traffic System (SWITRS) data into SRTS Pilot online travel tally Increase Spanish and Mandarin materials Develop SRTS educational posters Develop SRTS Public Service Announcements Expand middle and high school Youth for Environmental Sustainability Conference Participation Develop SRTS back to school night presentation materials Research charity bike rides and potential SRTS involvement Work toward PAUSD SRTS policy adoption Create a manual of best practices or enduring systems for transferring SRTS knowledge Develop a bell time change MOU Improve opt-in educational offerings for secondary students, including bike repair workshops Expand educational programming to serve PAUSD preschool and adult programs Implement website enhancements and editing procedures Build out carpool and bussing resources Develop incident response and special needs communication materials Develop middle and high school SRTS travel tally data outcomes Develop a PAUSD parent survey Develop innovative ways of sharing program outcomes, including data maps and infographics Evaluate participant demographics 2 3 4 5 6 7 1 2 ONGOING STRATEGIES TO ACCOMPLISH GOALS Goal 1: Grow and strengthen community -wide support for the six E’s-based SRTS program and for safe, active, healthy, sustainable school commutes  Support Spring and Fall Walk & Roll Week, Bike to Work Day and Bike Palo Alto!  Maintain teams at each school site  Advocate for rebuilding the PAPD traffic team  Inspire action and educate potential leaders about public process and governance  Support uniform patrols to encourage and enforce compliance with existing laws  Mesh parent messages with student educational programming  Revisit, renew and confirm the roles of the Partnership, as needed Goal 2: Update SRTS policies  Develop, advance, & institutionalize compatible policies across the Partnership & gather best practices from elsewhere to reflect the SRTS vision: To connect transportation with safe, healthy community designs that increase physical activity opportunities for children, families, & schools Goal 3: Continue to provide and improve SRTS education delivered to the schools and in the greater community  Maintain K-2, 3rd, 5th & 6th grade in-class educational offerings  Cultivate a community of parents and others to build a network of skilled leaders for in-school education  Support active transportation events during the year by setting up information tables, assisting families with route planning and responding to infrastructure concerns  Optimize current educational programs at each grade level to match student capabilities Goal 4: Develop and maintain a communications plan to expand our web presence, program and education materials  Communicate the value of bicycling, walking, and transit  Communicate program activities and successes to the broader community  Promote a “no-guilt approach” to encourage participation via all transportation modes.  Use Walk and Roll Maps and “Safety Tips for Peds/Bikes/Drivers” as part of messaging  Continue using purposeful incentives to increase SRTS participation Goal 5: Evaluate the program regularly and use the data to improve SRTS  Conduct yearly travel tallies, bike counts and manage data requests  Incorporate traffic and engineering data into mode split and modal share assessments  Ensure PAUSD administrators know the purpose of data collection and share the data in a way that does not compare schools Goal 6: Engineer safer routes to school  Respond to Palo Alto 311 requests and conduct community site visits  Assist with Bicycle Boulevard program treatments  Provide materials and education about new infrastructure improvements  Advocate as a Partnership for the rapid implementation of bike network, bike boulevards and arterial projects Goal 7: Further integrate SRTS into the Palo Alto Transportation Element and across City departmental functions  Support the build-out of the City of Palo Alto Bicycle and Pedestrian Transportation Plan  Assist with TDM initiatives to reduce reliance on single-occupant vehicles  Provide students, family and community members with transit system information and offer guidance on proposed transit changes  Promote walking and bicycling and model the behavior through daily transportation decisions  Assist with plans to develop a more efficient roadway network for families choosing active transportation  Use the City School Traffic Safety Committee as a forum to support a transportation system with minimal impacts on residential neighborhoods  Collaborate with local agencies, including public works, utilities, law enforcement and district officials to maintain a high level of safety for motorists, pedestrians, and bicyclists  Ensure that the City Shuttle effectively serves students The 6 E’S of Safe Routes to School: A Comprehensive Approach to Problem Solving Encouragement: Organize events and activities to promote walking, bicycling and other alternatives to driving solo. Education: Teach children and families about the range of transportation options and traffic safety skills. Engineering: Plan and implement operational and physical infrastructure improvements to school commute infrastructure to create a safer environment for youth who walk and bike to school. Equity: Support safe active, healthy school commute opportunities for all: • Understand and address obstacles • Enable access • Ensure safe and equitable outcomes for all students Enforcement: Partner with PAPD to ensure road users obey traffic laws, and provide community enforcement such as crossing guard programs. Evaluation: Monitor and research outcomes and trends through the collection of data. PAUSD Secondary Schools Parked Bicycles, 1985 – 2016        PAUSD Secondary Schools Parked Bicycles, 1985 – 2016          TO: CITY OF PALO ALTO HONORABLE CITY COUNCIL 1 FROM: HILLARY GITELMAN, DIRECTOR, PLANNING AND COMMUNITY ENVIRONMENT DATE: JUNE 19, 2017 SUBJECT: AGENDA ITEM NUMBER 1~ PALO ALTO SAFE ROUTES TO SCHOOL PARTNERSHIP ANNUAL UPDATE Attached is a corrected version of tables 2, 3 and 4 of CM R 7867 Safe Routes to School Partnership Annual Update. Dire or Planning and Community Environment l of 1 ' Program Evaluation 2016·17 education programs touched approximately 5,860 students, or roughly 49% of total enrollment. For the first time this year, the Eighth Grade Getting to High School program was rolled out at all three middle schools. To further increase outreach and pending staff capacity, 2018 goals will include expanding secondary programming to support opt·in high school educational opportunities, including growing Palo Alto's participation in the Youth for Environmental Sustainability (YES) Conferences sponsored by the Metropolitan Transportation Commission. Table 2: Safe Routes to School Core Education Program Reach Program Number of Number of PAUSD Students Lessons/ Taught Assemblies K·2 Pedestrian Safety --- --58 --·-2322 Third Grade Bicycle life Skills Curriculum 36 863 Fifth Grade Bicycle Refresher -12 --978 ----- Sixth Grade Back to School Bicycle Safety 14 1029 Orientation Eighth Grade Getting to High School Event --3 -·----Est. 786 -·------ - - Total for Education Programs 123 5860 Source: Planning and Community Environment Department, May 2017 Tables 3 and 4 present yearly alternative mode share/shift, calculated by using classroom travel tallies and bike rack counts each fall. Bike rack counts are administered by PTA volunteers calculating the number of parked bikes at their school. Table 3: 2016 Parked Bicycle Counts at PAUSD Schools (See Attachment C) School Type 2016 Parked % Biking 1 % + or -since 2015·16 Bikes El~roentary _ -·-·-~ -~02 -16$. ·---,+2 ~ Middle 1,508 49% -1• High ft ·---1,707 -~-----44%-~ & .: ·-+1 --·-.~ Total 4,017 33% +1 Source: Planning and Community Environment Department, May 2017 •This is a 1% decrease from last year's count, however the absolute number of bicycles counted is higher than last year's count of 1,487 bicycles. I Classroom travel tallies are administered by teachers through a show of student hands. In 2016- 17, new online data gathering methods for the classroom travel tally helped expand the program's capacity to conduct travel tallies at the secondary level. Online tally response rates varied from 13 to 96% at each campus with a mean response of 49%. The following data results were extrapolated to approximate responses from the entire school population. Table 4: 2016 PAUSD Classroom Tally Projection of Mode to School Response Active Alternative Walk Bike Carpool Transit Other* Drive Transp. Mode shift+ Rate (%) (%) (%) (%) (%) (%) % Modeshare or-since % 2015-16 (%) Elem. 20 15 3 4 4 S3 SS 46 -1%* Middle 11 58 3 4 2 22 58 78 n/a** High 7 so 6 6 .5 30 33 69.5 n/a** ·- - Total 13 41 4 s 3 35 49 64.5 ~1% Source: Planning and Community Environment Department, May 2017 • Other includes scooter and skateboard data and was added to the pedestrian totals •"This was the first year of data collection for the secondary schools. 2015·16 comparison data is not available. City of Palo Alto (ID # 7976) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Proclamation Recognizing Penny Ellson for SRTS Work Title: Proclamation Honoring Penny Ellson for 15 Years of Service to the Palo Alto Safe Routes to School Partnership From: City Manager Lead Department: Planning and Community Environment Attachments: Attachment A- Proclamation for Penny Ellson (DOCX) Proclamation Honoring Penny Ellson WHEREAS, Penny Ellson has led parent advocacy since fall 2004 in support of the local Safe Routes to School partnership goals to “reduce risk to students en route to and from school and encourage more families to use alternative to solo driving more often”; and WHEREAS, Penny Ellson has been instrumental in leading the transformation of the long-standing partnership for child bicycle and pedestrian safety between the Palo Alto Council of PTAs, the City Council, and Palo Alto Unified School District (PAUSD) Board of Education into a partnership that includes the goals of Encouragement, Evaluation and Equity in addition to the original emphasis on Engineering, Enforcement and Education; and WHEREAS, as a dedicated PTA volunteer since fall 2002, Penny Ellson developed a district-wide model for fall and spring school-based events to encourage all school commute modes that reduce congestion as well as promote healthy physical activity and foster a safe transition to independent walking and biking; and WHEREAS, Penny Ellson has recruited, trained and nurtured generations of parent volunteer Safe Routes to School champions in 17 PAUSD schools over the last thirteen academic years in her role as chair or co-chair of the Palo Alto PTA Council Traffic Safety Committee as her children moved through PAUSD schools (Fairmeadow Elementary, JLS Middle and Gunn High); and WHEREAS, Penny Ellson has also been active for more than 17 years in advocating the vision of streets for all users in support of the development and completion of elements of the City’s Comprehensive Plan and the Bicycle and Pedestrian Transportation Plan, including the Charleston/Arastradero Corridor and the Maybell Bicycle Boulevard; and WHEREAS, in recognition of her many years of service to Palo Alto, Penny Ellson’s contributions to the longevity and sustainability of the program was recognized, both by the Safe Routes to School National Partnership, the Palo Alto Council of PTAs, helping put Palo Alto on the forefront of the nation’s Safe Routes to School programs. NOW, THEREFORE, I, H. Gregory Scharff, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim appreciation to Penny Ellson for her efforts to improve the quality of life for all Palo Altans. Presented: June 19, 2017 ______________________________ H. Gregory Scharff Mayor CITY OF PALO ALTO OFFICE OF THE CITY CLERK June 19, 2017 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the June 5, 2017 Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS:  Attachment A: 06-05-17 DRAFT Action Minutes (DOCX) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting June 5, 2017 The City Council of the City of Palo Alto met on this date in the Community Meeting Room at 6:10 P.M. Present: DuBois, Filseth, Fine, Holman, Kniss, Kou, Scharff, Tanaka, Wolbach Absent: Special Orders of the Day 1. Interviews of Candidates for the Library Advisory Commission. The City Council interviewed the following applicants for the Library Advisory Commission: 1. Amy Murphy 2. Brigham Wilson Council took a break from 6:27 P.M. to 6:31 P.M. and reconvened in the Council Chambers. 2. Proclamation Honoring the Comprehensive Plan Update Citizens Advisory Committee. Agenda Changes, Additions and Deletions None. Minutes Approval 3. Approval of Action Minutes for the May 15, 2017 Council Meeting. MOTION: Vice Mayor Kniss moved, seconded by Mayor Scharff to approve the Action Minutes for the May 15, 2017 Council Meeting. MOTION PASSED: 9-0 DRAFT ACTION MINUTES Page 2 of 6 City Council Meeting Draft Action Minutes: 6/5/17 Consent Calendar MOTION: Vice Mayor Kniss moved, seconded by Council Member Wolbach to approve Agenda Item Numbers 4-15. 4. Approval of: (1) a Construction Contract With O'Grady Paving, Inc. in the Amount of $3,686,766 for the Fiscal Year 2017 Middlefield Road and Lincoln Street Paving, Capital Improvements Program Projects PE-86070, PO-89003, PL-05030, PL-00026, PL-12000; (2) Deductive Change Order Number 1 With O'Grady Paving, Inc. in the Amount of $165,280; and (3) Approval of Budget Amendments in the General Fund, the Capital Improvement Fund, and the Transportation Impact Fee Fund. 5. Acceptance of State of California Board of State and Community Corrections (BSCC) Grant Funds and Approval of a Budget Amendment in the Amount of $109,876 to the General Fund. 6. Approval of Contract Amendment Number 3 With Cypress Security, Inc. (C16160138A) in the Amount of $1,240,000 for a Total Not-to- Exceed Amount of $3,332,216, and Extend the Term of the Agreement to June 30, 2018 for Track Watch Guard Services for Caltrain Monitoring. 7. Approval of Contract Number C17167790 With Palo Alto Housing Corporation for the Provision of Below Market Rate (BMR) Administration Services for $274,000 Over a Two-year Period. 8. Approval of Conforming Changes to the Gas Utility Long-term Plan (GULP) Objectives, Strategies and Implementation Plan to Reflect Prior Council Action. 9. Approval of a Construction Contract With Alcal Specialty Contracting, Inc. in an Amount Not-to-Exceed $261,227 to Replace the Existing Roofs at the Rinconada Pool Buildings, Capital Improvement Program Project PF-00006. 10. Adoption of an Ordinance Dedicating 36.5 Acres of Land at the Former ITT Property Antenna Field to Become Part of the Baylands Nature Preserve. 11. Approval of Amendment Number 2 to the Promissory Note and Amendment Number 2 to the Agreement Between the City and Palo Alto Housing Corporation (PAHC) for the Acquisition of the Sheridan Apartments at 360 Sheridan Avenue; and Approval of an Expenditure DRAFT ACTION MINUTES Page 3 of 6 City Council Meeting Draft Action Minutes: 6/5/17 of Funds Held by PAHC for the Acquisition of Property Interest in the Sheridan Apartments. The Project is Exempt From the California Environmental Quality Act (CEQA) per Section 15061 (b)(3). 12. Policy and Services Committee Recommendation to Accept the Revised City Fraud, Waste, and Abuse Hotline Administration Policy. 13. Approval of Amendment Number 2 to Professional Services Contract Number C14150008 With Sandis Civil Engineers Surveyors Planners for the Preparation of an Environmental Assessment and Final Plans, Specifications and Estimates for the Churchill Avenue Improvement Project to Extend the Contract Term Until June 30, 2018 at no Additional Cost to the City. 14. Resolution 9681 Entitled, “Resolution of the Council of the City of Palo Alto Approving the Support Services Program Agreement With the Northern California Power Agency, Identifying Designated Representatives and Authorizing Annual Not-to-Exceed Amounts of $250,000/$85,000 Under the Agreement for a Term of ten Years.” 15. Approval of Construction Contract Number C17168059 With Tochi in the Amount of $273,680 to Provide Construction Services for the Zero Waste Office Renovation (CIP PF-16006). MOTION PASSED: 9-0 Action Items At this time Council heard Agenda Item Numbers 16 and 17 concurrently. 16. Annual Earth Day and Sustainability and Climate Action Plan (S/CAP) Update. 17. Discuss the Draft 2017-2020 Sustainability Implementation Plan (SIP) and Direct Staff on Next Steps. Vice Mayor Kniss left the meeting at 8:54 P.M. MOTION: Council Member Filseth moved, seconded by Council Member Fine to return the Sustainability Implementation Plan (SIP) to Staff to develop greater specificity. AMENDMENT: Council Member Holman moved, seconded by Council Member XX to add to the Motion, “add the following considerations now absent from the SIP: DRAFT ACTION MINUTES Page 4 of 6 City Council Meeting Draft Action Minutes: 6/5/17 A. Water Management: Address Public and private tree care in conjunction with water conservation; and B. Regeneration and Natural Environment: Plan for increasing financial investment in the urban forest given the Carbon Dioxide (CO2) benefits; and C. Quantify benefits of open space and identify potential investment opportunities to expand existing land resources; and D. Mobility and Financing Strategies: Add reference to working with the Santa Clara Valley Transportation Authority (VTA) to fund shuttle expansion and coordinating with the Palo Alto Unified School District (PAUSD) to identify funding for shuttles that serve schools; and E. Mobility: Incorporate an anti-idling Ordinance to address needless Green House Gas (GHG) emissions; and F. Zero Waste: Develop a metric and tracking of diversion rates tracked by: waste reduction (materials not entering the waste stream), reuse (salvage), and recycling; and G. Zero Waste and Energy: Investigate how new buildings can be designed to be adaptable to different rather than single uses; and H. Zero Waste and Energy: Incorporate true impacts of construction and demolition and ways to compensate the environment for those impacts; and I. Zero Waste and Energy: Elevate salvage or deconstruction requirements in the Construction and Demolition (C&D) Ordinance; and J. Climate Adaptation and Resilience: Incorporate food programs such as Meatless Monday to address GHG emissions created by food choices; and K. Mobility: Palo Alto Airport emissions tracking and fuel requirements.” INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER to replace in the Amendment, “now absent from the SIP” with “Staff to consider the following actions.” INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Amendment, “Water Management and Climate Adaptation & Resilience: Dewatering to be addressed for DRAFT ACTION MINUTES Page 5 of 6 City Council Meeting Draft Action Minutes: 6/5/17 commercial and residential properties.” (New Part L) AMENDMENT AS AMENDED RESTATED: Council Member Holman moved, seconded by Council Member Kou to add to the Motion, “Staff to consider the following actions now absent from the SIP: A. Water Management: Address Public and private tree care in conjunction with water conservation; and B. Regeneration and Natural Environment: Plan for increasing financial investment in the urban forest given the Carbon Dioxide (CO2) benefits; and C. Quantify benefits of open space and identify potential investment opportunities to expand existing land resources; and D. Mobility and Financing Strategies: Add reference to working with the Santa Clara Valley Transportation Authority (VTA) to fund shuttle expansion and coordinating with the Palo Alto Unified School District (PAUSD) to identify funding for shuttles that serve schools; and E. Mobility: Incorporate an anti-idling Ordinance to address needless Green House Gas (GHG) emissions; and F. Zero Waste: Develop a metric and tracking of diversion rates tracked by: waste reduction (materials not entering the waste stream), reuse (salvage), and recycling; and G. Zero Waste and Energy: Investigate how new buildings can be designed to be adaptable to different rather than single uses; and H. Zero Waste and Energy: Incorporate true impacts of construction and demolition and ways to compensate the environment for those impacts; and I. Zero Waste and Energy: Elevate salvage or deconstruction requirements in the Construction and Demolition (C&D) Ordinance; and J. Climate Adaptation and Resilience: Incorporate food programs such as Meatless Monday to address GHG emissions created by food choices; and K. Mobility: Palo Alto Airport emissions tracking and fuel requirements; and DRAFT ACTION MINUTES Page 6 of 6 City Council Meeting Draft Action Minutes: 6/5/17 L. Water Management and Climate Adaptation & Resilience: Dewatering to be addressed for commercial and residential properties. AMENDMENT AS AMENDED FAILED: 3-5 DuBois, Holman, Kou yes, Kniss absent MOTION RESTATED: Council Member Filseth moved, seconded by Council Member Fine to return the Sustainability Implementation Plan (SIP) to Staff to develop greater specificity. MOTION PASSED: 9-0 Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements Council Member Holman shared her appreciation of the Code:ART installations. Adjournment: The meeting was adjourned at 10:35 P.M. City of Palo Alto (ID # 7888) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: TruePoint Contract Title: Approval of Contract Number C17167812 With Truepoint Solutions, LLC for a Three Year Contract, $400,000 Annually With a Not-to-Exceed Amount of $1,200,000 to Provide Services in Scripting, Reporting, and Other Technical Support of the City's Development Permitting System, Accela, for Development Services and Planning and Community Environment From: City Manager Lead Department: Development Services Department Recommendation Staff recommends that Council approve and authorize the City Manager to execute Contract C17167812 with TruePoint Solutions, LLC (TruePoint) for a three year term, with a not to exceed amount of $400,000 annually ($1,200,000 total) for technical support on operations and maintenance on the City’s permitting system, Accela. Executive Summary Development Services is requesting this contract to provide continued technical support with operations and maintenance on the City’s permitting system, Accela, in alignment with the Blueprint Initiative. The Development Services portion of the contract with TruePoint is for $250,000 per year for three years and will be offset with a 1.8% technology surcharge if approved by Council in the FY 2018 Municipal Fee schedule. TruePoint will provide scripting, report writing, utilization of enhanced features from Accela, continued development of new mobile apps for customers and staff, and creation of dashboards to measure performance, permit activity and staff workloads. The Planning and Community Environment (PCE) portion of the contract is for $150,000 per year for three years. This contract will provide the capabilities for the calculation, invoicing, and payment of new or updated impact fees utilizing Accela, inclusion of the Code Enforcement 311 system in Accela, programming of Long Range Planning projects for increased tracking and City of Palo Alto Page 2 reporting capabilities, inclusion of transportation projects, and the creation and updates of planning and transportation dashboards. Accela enhancements and support will be needed for both departments well into the future. Development Services and PCE needs are addressed in one contract since both departments use Accela on a daily basis for all permitting transactions. The needs of the PCE and Development Services Departments have been consolidated into one contract. The two departments have different needs from the software and as such have allocated a portion of the support contract to address said needs. Although Development Services will manage the overall contract, each department will have the freedom to use their portion of the one contract as they see fit to achieve their department goals. If necessary, any amendments to said contract will be brought forward to City Council by Development Services. Background On September 6, 2011 (Staff Report 2021), the Council approved staff recommendations to implement the City of Palo Alto Development Center Blueprint project to streamline and modernize the City’s building permit process, focusing on improving customer satisfaction and inter-departmental efficiency. As part of this effort, staff focused on the implementation and transition to a coordinated permit system design. Accela provides the City with capabilities to track, schedule, and bill building permits and planning activities. In 2013, the City released a Request for Proposals (RFP) for technology support of the Accela system under the Blueprint project, sending copies of the RFP to at least seven firms. TruePoint was the only company to respond and was awarded an $85,000 contract. In June 2013 (Staff Report 3775), the contract was amended, adding $72,800 to deploy Accela mobile applications. In October 2013 (Staff Report 4056) Amendment 2 was approved to extend the contract three years and to provide $495,000 in additional funding for deployment and transition support for Accela Citizen Access and future Blueprint enhancement. In October 2015 (Staff Report 6079), Council approved Amendment 3 to add $290,000 for support of new Development Services initiatives and expansion of projects to other City departments, such as expanding the number of online permits offered, updating fee calculators in Accela, automating expired permit notifications, enhancing scheduling capabilities, automating the Use & Occupancy process, and developing an online plan review system allowing paperless submittal and review. Together, these enhancements give users and/or City staff more flexibility and easier access to schedule, submit, view, pay, or obtain status of permits, and on-site assistance and support for upgrading Accela to a newer version. In 2015, PCE established a TruePoint contract to add the calculation, invoicing, and payment of City of Palo Alto Page 3 impact fees into Accela. This process provides for more consistent record keeping and an easily auditable record of impact fees assessed and paid. Thanks to these enhancements, record keeping, internal operations, and customer service have improved dramatically. Some examples of these outcomes include the improvement of one- time reviews by over 20% since 2012. Applicants are now able to schedule inspections online whereas in the past they needed to wait on the phone. Inspectors are all equipped with mobile devices that allow for real-time reporting of inspections. The status of existing planning and building entitlement/permits as well as the record of past entitlements/permits are all available on-line. Discussion Accela is the City’s permitting system for planning and development activities. Development Services and PCE utilize Accela on a daily basis for intake, billing, tracking, reporting, online applications for some activities, provision of up-to-date website information to the public, and to provide project information access to staff in the field. Continued support is needed to provide a conduit between Accela and the City to further enhance knowledge, utilization, and capabilities of the Accela product, as well as offer support for new features, scripting, configuration, and reporting. The City released the Request For Proposal on March 27, 2017 with a three week bid submittal period, closing on April 17, 2017. Three bids were received and reviewed by staff from both Development Services and PCE. TruePoint was selected with the highest ranking on the evaluation criteria. Staff is requesting Council to authorize a contract with TruePoint to provide additional support necessary over the next three years. The requested contract will provide Development Services up to $750,000 of support and will provide PCE up to $450,000 of support over the next three years. For both departments, this contract will support the rollout of new features in Accela as they arise, provide quick and easy adjustment of the Accela permitting system for program changes and new initiatives, support and integrate customer “apps” for mobile accessibility, and allow the departments to improve the tracking and reporting of metrics. Past contract constraints have made it challenging for PCE to fully utilize this contractor. Under this contract, PCE hopes to have broad access to the expertise to leverage the full functionality of Accela as a powerful planning, monitoring, and customer service tool. PCE will pursue incorporation and tracking of the Code Enforcement 311 system, inclusion of long range planning projects for tracking and reporting, inclusion of transportation projects, and the creation and updates of planning and transportation dashboards. Development Services will use this contract to support partnering department City of Palo Alto Page 4 that use the system for permitting, support improvements already in place, as well as new initives in the area of reporting, permitting, plan checking, and inspection services for both internal coordination and customer services. The City is not bound to fully utilize the contract and use of the contract will be based upon program need and Council-approved budget. Resource Impact $100,000 for the PCE portion of this contract was included in the Fiscal Year 2017 Information Technology Adopted Operating Budget to add a code enforcement 311 component, long range planning projects, and reporting and performance measurement enhancements in Accela. PCE’s use of this contract beyond that amount will be contingent on approval of adequate funding in the Fiscal Year 2018 and Fiscal Year 2019 budgets. Development Services has proposed a new technology surcharge as part of the Fiscal Year 2018 Municipal Fee Schedule. This new surcharge will cover the costs of Development Services portion of the contract, contingent upon approval of the Municipal Fee Schedule by Council. PCE is examining the possibility of a similar fee or surcharge to cover the cost of this contract in future years. Attachments: C17167812 TRUEPOINT CONTRACT (PDF) CITY OF PALO ALTO CONTRACT NO. C17167812 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND TRUEPOINT SOLUTIONS FOR PROFESSIONAL SERVICES This Agreement is entered into on this 1st day of July, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and TRUEPOINT SOLUTIONS, a California limited liability company, located at 3262 Penryn Road, Suite 100-B, Loomis, California, 95650, and Telephone (916) 259-1293 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide specialized services to manage and mentor five primary divisions (Public Works, Utilities, Planning, Building and Fire) who use the Accela product. (“Project”) and desires to engage a consultant to provide training, co-develop Management Reports and make modifications to the Accela Platform to improve efficiency and operations in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2020 unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 2 in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed One Million Two Hundred Thousand Dollars ($1,200,000.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 3 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. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Keith Hobday as the project manager to have supervisory responsibility for the performance, progress, and execution of the Services and Deborah Herman & Joe Cipriano as the project support to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 4 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 managers are Peter Pirnejad, Development Center, 285 Hamilton Avenue, Palo Alto, CA 94303, Telephone (650) 329-3249 and Sherry Nikzat, Planning & Community Environment, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650)329-2359. The project managers will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 5 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the 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. DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 6 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 7 has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, 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. DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 8 SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 This Project is not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 9 This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 All unchecked boxes do not apply to this agreement. 27.11 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 10 CONTRACT No. C17167812 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: TRUEPOINT SOLUTIONS Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS EXHIBIT “E”: INFORMATION PRIVACY POLICY EXHIBIT “F”: SOFTWARE AS A SERVICE (SAAS) SECURITY AND PRIVACY TERMS & CONDITIONS DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Keith Hobday Parter Don Hunsinger Partner Professional Services Rev. April 27, 2016 11 EXHIBIT “A” SCOPE OF SERVICES Development Services (Task 1) Background The City is transitioning from Accela Vantage 360 software to the most up to date version of the software. The City shall contract with CONSULTANT to provide specialized services to manager and mentor fiver primary divisions (Public Works, Utilities, Planning, Building and Fire) who use the Accela product. CONSULTANT shall be the conduit between the software vendor (Accela) and City subject matter experts (SME’s) from each division to further enhance their knowledge and utilization of the Accela product, provide training, co-develop Management Reports and make modifications to the Accela Platform to improve efficiency and operations to outside programs such as apps utilized by Development Services. Services CONSULTANT shall work closely with designated Palo Alto staff to identify the best approach and needs of the individual “Super Users” from each division. The effort will primarily be accomplished onsite every other week for 2 days and remotely on the opposite week as needed, with the flexibility to provide more resources when deemed appropriate by the City. CONSULTANT’S resources shall be available to provide additional support when needed. CONSULTANT shall introduce new features and functionality as it becomes available using the most up to date software and provide expert support to the operational needs of the City’s end users with all of the City’s Accela products. CONSULTANT’S staff shall assist the City with: Day to Day Mentoring and Guidance System maintenance Support on Accela Mobile Office (includes AMO, iPad App, iPhone App or Android App) o Work with each group to define and deploy the “best fit” mobile APP o Provide basic training on the Accela Mobile Apps o Create custom reports or email notifications from mobile devices On-site assistance and support for Super Users (2 day every other week includes) o Configuration changes and enhancements as recommended by CONSULTANT Custom Quick Query creation o Custom portlet and console configuration o Workflow enhancements DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 12 o Fee updates as needed o Ad Hoc report creation o Crystal report creation o Training as needed on all aspects of Accela Automation o Support the City with any questions or new initiatives that come up o Support CITY with Accela upgrades and new features o Coordination between Accela and City staff o Advice on streamlining efforts and activities within the Accela product o Support in existing products such as DSD Dashboard, Mobile App, Green Halo Integration, GIS integration, Civic Insight Integration, Open Counter Integration, Buildingeye Integration, IVR integration, and others as they come online. Remote assistance and support for Super Users (From PW, PCE, Utilities, Fire, and Building(10 hours per week) o Same tasks as above remotely Other Misc. Activities o Have Fire inspector schedule and complete inspections in Accela o Work with Fire to implement Occupancy reoccurring inspections (based on what other agencies are successful with) o Work with Public Works to create an Urban Forestry Record in Accela o Work with Selectron to fix the problem with Permit Numbers getting out of sync between Accela and Selectron o Work with Project Manager to support the City of Palo Alto “Open Data” and Accela’s Civic Cloud initiative CONSULTANT shall provide the following; Respond to inquiries within 24 hours Support via phone if needed Provide a monthly progress report that addresses services provided and reports created in support of the City’s effort to launch 9.0 or most current version of Accela and create management reports Provide the City an approximation of the number of hours it will take to create a report and attempt to stay within that estimate prior to the creation of a report. Meet with City Project Manager monthly for an hour or less to address the CONSULTANT’S progress and performance. Planning & Community Environment Department (Task 2) The Planning and Community Environment Department of the City of Palo Alto uses Accela as its activity and permit tracking software. Accela also serves as the Point of Sale (POS) for Planning and Development Services fee collection. The department has several goals to make Accela more useful: updating impact fees and fee calculations in Accela to include recently DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 13 adopted changes to Housing Impact fees so the system can calculate the fees for collection at the location and time when other fees are collected; fully incorporating Code Enforcement 311 into Accela; tracking long range planning projects in Accela, and; creation of special reports, dashboards, etc. to support the changing needs of the department. CONSULTANT will utilize its Accela system knowledge and experience with the Palo Alto Accela environment to lead this effort. CONSULTANT shall submit Invoices for PCE via email to PCEContracts@Cityofpaloalto.org. Services A. CONSULTANT shall replace existing housing impact fees programmed in Accela with updated housing fees categories and rates and add Citywide Transportation Impact fees to Accela if requested by CITY. CONSULTANT shall include newly programmed fees in reports, receipts, etc. CONSULTANT will program Accela such that Accela will calculate the correct fees, generate and retain a copy of estimates and final invoices similar to other impact fees. B. CONSULTANT will work with City to ensure correct and proper annual updates to fees in Accela. Fees will be updated annually as required by municipal code. C. CONSULTANT shall work with CITY to incorporate 311 Code Enforcement requests into Accela. This is expected to include, but is not limited to: •creating input process •creating tracking process •retaining documents and information •creating reporting process for Long Range Planning projects D. CONSULTANT shall work with CITY to program into Accela the tracking and reporting of long range planning projects. This is expected to include, but is not limited to: creating input process creating tracking process retaining documents and information creating reporting process for Long Range Planning projects. E. CONSULTANT shall add and maintain features to Accela to keep track of Transportation Demand Management (TDM) plans for the City of Palo Alto’s Planning and Community Development Department, Transportation Division. The system will be used to track and monitor any TDM plans that have been submitted to the City of Palo Alto for approval. Once directed by CITY, functions of the added features may include, but are not limited to: Uploading TDM plan documents to be stored as part of a parcel’s records, similar to the existing features of Accela that allow for uploading of site-specific plan review or building permit documents. These documents will include the TDM plan, monitoring reports, and signed agreements. Setting Due Date reminders when monitoring reports for properties with TDM plans need to be submitted to the City. These reminders should inform the individual DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 14 property owners and Transportation Division staff assigned to the project that an annual or five-year report is due. A checkbox for Planners to mark whether a TDM Plan has or has not been submitted. A checkbox for Planners to mark whether a TDM Plan has or has not been approved. A checkbox for Planners to mark whether a Monitoring Report has been submitted. A dropdown menu that allows users to select the status of the TDM plan: No Comments Received, Not Required, Routed, Under Review, Recommend Approve with no Conditions (Rec App no Conditions), Recommend Approve with Conditions (Rec App with Con), Recommend Not Approved (Rec Not Approved) A dropdown menu that allows users to select the status of the Monitoring Report: No Comments Received, Not Required, Routed, Under Review, Recommend Approve with no Conditions (Rec App no Conditions), Recommend Approve with Conditions (Rec App with Con), Recommend Not Approved (Rec Not Approved) A text box for planners to include comments Check boxes to identify whether TDM Plan is submitted voluntarily or as a Condition of Approval Provide fields for planners to manually fill in or generate general transportation- related information including: Number of parking spaces (vehicle and bike) provided, broken down by long and short term % of parking reduction requested with area showing number required and number provided Proximity to transit: < 1/2 mile, > 1/2 mile Types of transit within 1/2 mile Single-occupancy vehicle trip reduction goal Non-single occupancy vehicle mode share goal F. CONSULTANT will establish a process agreed to by CITY, for the testing and implementation of all changes prior to formal rollout. Testing may or may not be by CITY staff working closely with CONSULTANT. DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. Milestones Completion No. of Days/Weeks From NTP 1.Task 1 TBD Development Center 2.Task 2 TBD Planning & Community Environment DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 16 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services, additional services, and reimbursable expenses shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $500.00 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable 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: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 17 EXHIBIT “C-1” SCHEDULE OF RATES Labor Categories (e.g., Consultant, Sr. Consultant, etc.) Hourly Rate Implementation Consultant $145.00 CONSULTANT’S standard blended rate of $145 per hour for all resources. Based on a three-year agreement. CONSULTANT proposes the following budget for suggested tasks over the agreement term. The number of hours and total cost can be adjusted to fit the budgetary constraints of the City. Task 1 - Development Services Hours Rate Total Year one dedicated Resource 1,500 $145 $217,500.00 Year two dedicated Resource 1,500 $145 $217,500.00 Year three dedicated Resource 1,500 $145 $217,500.00 Additional resource support on current tasks or proposed innovations 1,200 $145 $174,000.00 Task 2 - Planning and Community Environment Department Planning Project 660 $145 $95,700.00 Travel Budget 3 year project travel budget $8,500.00 Additional Services Total 6,360 $930,700.00 DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 18 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Professional Services Rev. April 27, 2016 19 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Info Release and Release Date Document Cl orma Version: e: assification: atioon P 1st 31 Ne Priva Release, Ver January, 201 eed to Know acy rsion 2.2 13 Pollicy EXHIBIT "E" DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Information P Version 2.2 CONTEN DOCUMENT CHANGE RE APPROVAL . DISTRIBUTIO 1.OBJE A) INTEN B) SCOP C) CONS D) EXCE E) MUNIC 2.RESP A) RESP B)RESP C)RESP D) RESP E) RESP 3.PRIVA A) OVER B) PERSO C) METH D) UTILIT E) PUBLI F) ACCE G) SECU H) DATA I) SOFTW J) FAIR A 4.CONT Privacy Policy TS CONTROLS... ECORD .......... ..................... ON ................ ECTIVE ........... NT .................. E .................. SEQUENCES.... PTIONS.......... CIPAL ORDINAN PONSIBILITIES ONSIBILITY OF ONSIBILITY OF ONSIBILITY OF ONSIBILITY OF ONSIBILITY OF ACY POLICY .. RVIEW ............ ONAL INFORMA ODS OF COLLE TIES SERVICE . C DISCLOSUR SS TO PERSON RITY, CONFIDE RETENTION / I WARE AS A SE AND ACCURAT TACTS ........... y ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... NCE ............... OF CITY STAF CIO AND ISM INFORMATION USERS ......... F INFORMATION F AUTHORIZATI ..................... ..................... ATION AND CH ECTION OF PER ..................... E ................... NAL INFORMAT ENTIALITY AND INFORMATION RVICE (SAAS) E CREDIT TRA ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... F ................... M .................... N SECURITY ST ..................... N TECHNOLOGY ON COORDINA ..................... ..................... OICE .............. RSONAL INFOR ..................... ..................... TION ............... NON-DISCLOS RETENTION ... ) OVERSIGHT .. ANSACTION ACT ..................... ...................... ...................... ...................... ...................... ...................... ...................... ...................... ...................... ...................... ...................... ...................... ...................... TEERING COMM ...................... Y (IT) MANAGE ATION ............. ...................... ...................... ...................... RMATION ......... ...................... ...................... ...................... SURE ............. ...................... ...................... T OF 2003 (FA ...................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... MITTEE .......... ..................... ERS ............... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ACT) ............. ..................... In Informa ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... City of nformation Te ation Security Pa 31 Janua ...................... ...................... ...................... ...................... ...................... ..................... ..................... ..................... ..................... ..................... ...................... ..................... ..................... ..................... ..................... ..................... ...................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ...................... Palo Alto chnology Services age 1 of 8 ary, 2013 ............ 2  ............ 2  ............ 2  ............ 2  ............ 3  ............ 3  ............ 3  ............ 3  ............ 3 ............ 4  ............ 4  ............ 4 ............ 4 ............ 4  ............ 5 ............ 5 ............ 5  ............ 5  ............ 5  ............ 5  ............ 6  ............ 6  ............ 6  ............ 6  ............ 7  ............ 7  ............ 7  ............ 8  DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Information P Version 2.2 DOCUME CHANGE APPROVA DISTRIBU Privacy Policy ENT CONT Documen Location Documen Documen Contributo E RECORD Date 12-Jul-12 26-Sep-12 09-Nov-12 19-Nov-12 22-Nov-12 26-Nov-12 6-Dec-12 14-Jan-13 31-Jan-13 VAL Date 06-Dec-12 06-Dec-12 06-Dec-12 14-Jan-13 14-Jan-13 UTION Name City of Pa Providers y TROLS nt Title nt Author nt Manager ors D Author Raj Pat 2 Raj Pat 2 Raj Pat 2 Raj Pat 2 Raj Pat 2 Raj Pat Raj Pat 3 Raj Pat 3 Raj Pat Name 2 Raj Pate 2 Jonatha 2 Tom Auz 3 Grant Ko 3 Informat Steering alo Alto Emplo , Residents a Informatio City of Pa Raj Patel Raj Patel Jonathan Joe Black r Versi tel 0.01 tel 1.0 tel 1.5 tel 1.6 tel 1.7 tel 1.8 tel 1.92 tel 2.0 tel 2.2 el n Reichental zenne olling tion Security g Committee oyees, Servic and Businesse on Privacy Po alo Alto Webs Reichental, kwell, Grant K on Chang First d First d Update Additio Revise Revise Reiche Revise Jonath Revise Grant Revise from In Comm Role Informa Manag Techno CIO; In Techno Assista Utilities Senior Attorne Office Sponso Lo ce es Cit Sh olicy ite and Share Shiva Swam Kolling ge Reference draft develope draft released ed first draft f onal updates ed table of co ed followed b ental and Tom ed according han Reichenta ed according Kolling ed according nformation Se mittee ation Security ger; Informatio ology Departm nformation ology Departm ant Director, s Department r Assistant Cit ey; City Attorn or ocation ty of Palo Alto harePoint In Informa ePoint minathan, Tom e ed for review for review as identified ontent y review from m Auzenne to comments al to comments to recommen ecurity Steeri Com y on ment Appr ment Appr t Appr ty ney’s Appr Appr o Website an City of nformation Te ation Security Pa 31 Janua m Auzenne, m Jonathan s from s from ndations ng mments roved roved roved roved roved d Palo Alto chnology Services age 2 of 8 ary, 2013 DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Information P Version 2.2 1. O The C Palo provi appro finan busin local indus 1798 some busin Califo to en Prote busin provi “Pers “Info in thi A)I The C perso of me perso the C and s polic Infor The g all us secu and s comp B)S The requ inform confo C)C The C their Privacy Policy Objective City of Palo A Alto. In prom isions of the C opriate meas ncial) informat ness as a loca authorities a stry best prac 8.24, 1798.79 e of these pro ness in a man ornia laws. Th nsure the ong ected Critical ness with the ide services. sonally Identif rmation”) are s Policy by re INTENT City, acting in ons who do b eans, includin ons accessing City’s staff and security of the ies, rules, reg mation is coll goals and obj sers having a rity of databa security of the pliance with le SCOPE Policy will gu ired to protec mation data a orm their perf CONSEQUENCE City’s employ work implicat y e Alto (the “City” moting the qua California Pub ures to safeg tion of person al governmen nd reflected i ctices, includin .8(b), 1798.80 ovisions do no nner which pr he objective o oing protectio Infrastructure City and rece The terms “P fiable Informa defined in the eference. n its governme business with ng, without lim g the City’s w d/or authorize e Information gulations and ected, stored jectives of the ccess to the C ase informatio e Information egal and regu ide the City’s ct the confiden are intended t formances to ES yees shall com tes access to ”) strives to p ality of life of t blic Records A uard the secu ns, collected in nt agency. Th n federal and ng, without lim 0(e), 1798.81 ot apply to loc omotes the p of this Policy i on of the Pers e Informationa eiving service Personal Infor ation” and “Pe e California C ental and pro or receive se mitation, from website, and p ed third-party collected by procedures, and utilized i e Policy are: ( City’s applica on assets own provided to t ulatory require staff and, ind ntiality and pr to be covered the Policy sh mply with the the Informati romote and s these persons Act, California urity and priva n the ordinary ese measure d California law mitation, the p .5, 1798.82(e cal governme rivacy of pers is to describe sonal Informa and Personal es from the Ci rmation,” “Pro ersonally Iden Civil Code sec prietary capa ervices from th persons appl persons who a contractors. T the City. The and industry in compliance (a) a safe, pro tions and dat ned by, or ent he City’s staff ements. directly, third p ivacy of the In d by the Policy ould they enj Policy in the ion referred to sustain a supe s, it is the pol a Governmen acy of the per y course and es are genera ws, the City’s provisions of C e), 1798.83(e nt agencies li sonal informa e the City’s da ation, Persona ly Identifying ity or a third p otected Critica ntifying Inform ctions, referre acities, collect he City. The I lying to receiv access other The City is co City acknow best practice e with applica oductive, and tabases; (b) th trusted to, the ff and third pa party contract nformation of y and which w oy conditiona execution of o in this Polic In Informa erior quality o icy of the City nt Code §§ 62 rsonal (includ scope of con lly observed b s rules and re California Civ e)(7), and 179 ike the City, t ation, as reflec ata security go ally Identifiabl Information o party under co al Infrastructu mation” (collec ed to above, a ts the Informa Information is ve services p information p ommitted to p ledges federa es are dedicat able laws. inoffensive w he appropriat e City; (c) the arty contractor tors, which ar f the persons will be advised al access to th their official d cy. A failure to City of nformation Te ation Security Pa 31 Janua of life for perso y, consistent w 250 – 6270, to ding, without l nducting the C by federal, sta gulations, an vil Code §§ 17 98.92(c). Thou the City will co cted in federa oals and obje le Information of persons do ontract to the ure Informatio ctively, the and are incorp ation pertainin s collected by rovided by th portals mainta protecting the al and Califor ted to ensurin work environm te maintenanc controlled ac rs; and (d) fai re by contract whose perso d by City staf hat informatio duties to the e o comply may Palo Alto chnology Services age 3 of 8 ary, 2013 ons in with the o take imitation, City’s ate and d 798.3(a), ugh onduct al and ectives, n, oing City to on”, porated ng to a variety e City, ained by privacy nia laws, ng the ment for ce and ccess ithful t onal ff to on. extent y result in DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Information P Version 2.2 empl D)E In the Polic exce “ISM as m acco form stora will c the re and h by th E)M This 2. RE A)R The C coord The C party perfo The and t in de respo incid depa Non- inclu B)R The draw for a initia plann addre Privacy Policy loyment and/o EXCEPTIONS e event that a cy, the employ ption request ”). The empl may be reques ordance with g by the City A age, access, r consult with th equest, the e his or her sup he CIO, acting MUNICIPAL OR Policy will su SPONSIB RESPONSIBILIT CIO, acting b dinate the imp City’s employ y contractors ormance of th ISM will be re the effectiven etailed, audita onsible for the ents that aris artment-specif -Disclosure A ding, without RESPONSIBILIT Information S wn from the va ll information tives and acti ning processe essed at the a y or legal conse a City employ yee may requ t will be review oyee, with the sted by the IS guidelines app Attorney. The P retention, usa he CIO to app xception requ pervisor. The g by the ISM. RDINANCE persede any BILITIES O TY OF CIO AND y the ISM, wi plementation yees, in partic under contrac eir job respon esponsible for ness of the Po ble technical e City’s IT env e in regard to fic policies an greements (N limitation, loc TY OF INFORMA Security Steer arious City de security effor ivities. The IS es to ensure t appropriate C equences. ee cannot ful est an excep wed and adm e approval of M. The ISM w proved by the Policy’s guide age, and prote prove or deny uest dispositio approval of a City policy, ru OF CITY S D ISM ll establish an of information cular, software ct to the City t nsibilities. r: (a) develop olicy; (c) the d requirements vironments; ( o potential vio nd procedures NDAs) signed cal or ‘cloud-b ATION SECURI ring Committe partments, w rts, including SSC will provid that informatio City departme ly comply with tion by subm ministered by t his or her su will conduct a e City’s Chief elines will incl ection of the I the exception on will be com ny request m ule, regulation STAFF n information n security me e application to provide ser ing and upda development o s, which will b d) assisting th lations of the s which fall un by third party based’ softwa TY STEERING ee (the “ISSC will provide the key informatio de input to th on security ris nt level. h one or more itting Security the City’s Info pervisor, will a risk assessm Information O lude at a mini nformation id n request. Af mmunicated, i may be subjec n or procedur security man easures by the users and da rvices, shall b ating the Polic of privacy sta be designed a he City’s staff Policy; (e) re nder the purv y contractors are services to COMMITTEE ”), which is co e primary dire on security an e information sks are adequ In Informa e element(s) y Exception R ormation Secu provide any a ment of the re Officer (“CIO” imum: purpos dentified in the fter due cons in writing, to t ct to counterm re regarding i nagement fram e City’s gove atabase users by guided by cy, (b) enforci andards that w and maintaine ff in evaluating eviewing and view of this Po , which will pr o the City. omprised of t ection, prioritiz nd privacy ris n security and uately consid City of nformation Te ation Security Pa 31 Janua described in Request.The urity Manager additional info quested exce ) and approve se, source, co e request. The ideration is gi the City emplo measures esta nformation pr mework to init rnment. s, and, indirec this Policy in ng complianc will manifest t ed by the pers g security and approving olicy; and (f) r rovide service he City’s emp zation and ap sks, programs privacy strat ered, assess Palo Alto chnology Services age 4 of 8 ary, 2013 this r (the ormation eption in ed as to ollection, e ISM iven to oyee ablished rivacy. tiate and ctly, third the ce with he Policy sons d privacy reviewing es, ployees, pproval s, tegic ed and DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Information P Version 2.2 C)R All au proce D)R The C City’s comp intern E)R The (NDA the S exec contr objec by th occu The C appro 3. PR A)O The Infor by, o contr activ other The t other desig inform comp main confi third B)P Exce doing perso as a Privacy Policy RESPONSIBILIT uthorized use esses and tec RESPONSIBILIT City’s IT Man s networks, w pliance with th nal reporting RESPONSIBILIT ISM will ensu A), whenever Software as a cuted prior to t ractors. The C ctives, policie he ISM at plan rred. CIO, acting b opriate, comm IVACY PO OVERVIEW Policy applies mation of per or entrusted to ractors under ities include, r networks, sy term “informa r related orga gned, implem mation assets promise, and ntain informati dentiality, inte parties. PERSONAL INF ept as permitte g business wi on has conse local governm y TY OF USERS ers of the Info chnologies wi TY OF INFORMA agers, who a will be respons he City’s infor of events that TY OF AUTHOR ure that the Ci access to the Service (Saa the sharing of City’s approac s, processes nned intervals y the ISM, wi mencing from OLICY s to activities rsons doing b o, the City and contract to th without limita ystems, or de ation assets” a anizations whi ented, and m s. The City’s s inappropriate ion managem egrity, and av FORMATION AN ed or provide ith the City, o ented to the C ment agency rmation will b ithin the scop ATION TECHNO re responsibl sible for confi rmation secur t may have co RIZATION COOR ity’s employee e Information aS) Security a f the Informat ch to managin , and procedu s, or wheneve ll review and the date of it that involve t usiness with t d will be mad he City to pro ation, accessin evices. also includes ile those asse maintained to e staff will act to e disclosure o ment systems, vailability of its ND CHOICE d by applicab r receiving se City’s sharing o with third par be responsible e of responsi OLOGY (IT) MA e for internal, guring, maint rity and privac ompromised RDINATION es secure the will be grante and Privacy T tion of person ng information ures for inform er significant c recommend ts adoption. he use of the the City or re e available to vide Software ng the Interne the personal ets are under ensure that o o protect its in or alteration. T networks an s information ble laws, the C ervices from th of such inform rties under co e for complyin ibility of each ANAGERS , external, dir taining and se cy policies. T network, syst e execution of ed to third par Terms and Co ns covered by n security and mation securit changes to se changes to th e City’s inform ceiving servic o the City’s em e as a Service et, using e-ma information o the City’s con nly authorize nformation as The City will p nd processes assets to the City will not sh he City, in vio mation during ontract to the C In Informa ng with inform user. rect and indire ecuring the C hey are also tem or data s f Non-Disclos rty contractor onditions. An y this Policy w d its impleme ty) will be rev ecurity implem he Policy ann mation assets, ces from the C mployees and e consulting s ail, accessing of the City’s e ntrol. Securit d persons wil ssets from the plan, design, in order to as e City’s emplo hare the Infor olation of this the conduct City to provid City of nformation Te ation Security Pa 31 Janua mation privacy ect connection City’s IT netwo responsible fo ecurity. sure Agreeme rs, in conjunct NDA must be with third party entation (i.e. viewed indepe mentation hav nually, or as namely, the City, which ar d third party services. The g the City’s int employees an ty measures w ll enjoy acces eft, damage, l implement an ssure the app oyees and aut rmation of any Policy, unles of the City’s b e services. Palo Alto chnology Services age 5 of 8 ary, 2013 y ns to the orks in or timely ents tion with e y endently ve re owned se tranet or nd any will be ss to the oss, nd ropriate thorized y person ss that business DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Information P Version 2.2 C)M The C colle busin may and w forma The C site m City w the In the b Inter the u comp their on hi sites D)U In the Depa custo Utiliti apply other with Busin have mont resid and/o the s Busin cove Infor E)P The could unles F)A The C acce affec Privacy Policy METHODS OF C City may gath ction of such ness as a loca be gathered with other tec ation in order City’s staff wi may use “coo will note that nternet Protoc browser softw net address o user’s comput promise the u computers by is or her com . UTILITIES SERV e provision of artment (“CPA omers. To the ies Rules and y; provided, h rwise directed other City dep nesses and re e secure acce thly utility usa dents with non or billing data standard mon nesses and re red by the sa mation under PUBLIC DISCLO Information th d be incorpora ss such inform ACCESS TO PE City will take ss to that per cted persons w y COLLECTION O her the Inform information is al governmen at service win chnologies, wh r to secure the ll inform the p kies” to custo a cookie cont col address o ware and oper of the website ter by using th user’s privacy y using any o puter, it will n VICE f utility service AU”) will colle e extent the m d Regulations however, any d or approved partments ex esidents with ss through a age and billing n-standard or a provided to t thly billing. esidents with ame privacy p r applicable fe OSURE hat is collecte ated in a publ mation is exem ERSONAL INFO reasonable s rson’s Informa who can revie OF PERSONAL mation from a s both necess nt agency in it ndows and co herever the C e City’s servic persons whos omize the brow tains unique i of the compute ating systems e from which t he City’s web or security. U of the widely a ot prevent or es to persons ect the Informa management or other ordi such Rules a d by the Coun cept as may b standard utili CPAU websi g data. In add experimenta them through such non-sta rotections an ederal and Ca ed by the City lic record that mpt from disc ORMATION teps to verify ation. Each C ew and updat INFORMATION variety of sou sary and appr ts governmen ontact centers City may intera ces. se Information wsing experie information th er used to ac s used, the da the user linke site do not c Users can refu available meth prohibit the u s located withi ation in order of that inform nances, rules and Regulatio ncil. This inclu be required b ity meters and te to their Info dition to their r l electric, wat non-City elec andard or exp d personal in alifornia laws. in the ordina t may be subj closure to the a person’s id City departmen te that informa urces and res ropriate in ord ntal and propr s as well as a act with perso n are covered ence with the hat a web site ccess the City ate and time ed to the City’s contain the Inf use the cooki hods. If the us user from gain in Palo Alto, t r to initiate an mation is not s s, regulations ns must conf udes the shar by law. d/or having n ormation, incl regular month ter or natural ctronic portal perimental me nformation exc ry course and ject to inspec public by Ca dentity before nt that collect ation at reaso In Informa sources, prov der for the Cit rietary capaci at web sites, b ons who need d by this Polic e City of Palo A e can use to tr y’s web sites, a user access s web sites. C formation, and ies or delete t ser chooses n ning access t the City of Pa d manage uti specifically ad or procedure form to this Po ring of CPAU- on-metered m luding, withou hly utilities bil gas meters m s at different etering will ha change rules d scope of co ction and copy alifornia law. e the City will g ts Information onable times. City of nformation Te ation Security Pa 31 Janua ided that the ty to conduct ties. That inf by mobile app d to share suc cy that the Cit Alto web site rack, among o the identificat sed the site, a Cookies creat d thus do not the cookie file not to accept to or using the alo Alto Utilitie ility services t ddressed in th es, this Policy olicy, unless -collected Info monthly servic ut limitation, th ling, business may have thei intervals than ave their Inform applicable to onducting its b ying by the pu grant anyone n will afford ac Palo Alto chnology Services age 6 of 8 ary, 2013 formation plications, ch ty’s web . The others, tion of and the ted on t es from a cookie e City’s es to he y will ormation ces will heir ses and ir usage n with mation o business ublic, e online ccess to DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Information P Version 2.2 G)S Exce perso partie reaso perso The C Infor insta such If the occu breac date( and t H)D The C perio destr I)S The C servi In ord those the S provi servi confi Thes whic servi inclu moni term comp Prior servi even requ prom J)F CPA mana Privacy Policy SECURITY, CO ept as otherwi ons covered b es without the onable contro ons covered b City may auth mation of per nces, the City Information o e City become rred, with res ch in accorda (s) of the know the proposed DATA RETENTI City will store od is establish ruction. SOFTWARE AS City may eng ces, common der to assure e who receive SaaS services ider, shall des ces and/or fu dentiality and se requiremen h the services ces provider’ ding disaster itoring service “IT infrastruc puters, and da r to entering in ces provider nt that the Saa irements duri mptly inform th FAIR AND ACC U will require age utility ser y NFIDENTIALITY ise provided b by this Policy e express writ ols that are de by this Policy horize the City rsons who do y will require only in further es aware of a spect to the In ance with app wn or suspec action to be ION / INFORMA e and secure a hed by law, fo A SERVICE (S age third part nly known as the privacy a ed services fro s provider and sign, install, p urnishes good d privacy of th nts include inf s are provided s operations recovery and es to ensure a cture” refers to atabase man nto an agreem to complete a aS services p ng the course he ISM. URATE CREDIT utility custom rvices to them Y AND NON-DIS by applicable as confidenti tten consent o esigned to pro . y’s employee business with the City’s em rance of City- breach, or ha nformation of licable laws. cted breach, t taken or the r ATION RETENTI all Information or seven (7) ye SAAS) OVERSI ty contractors Software-as- and security o om the City, a d its subcontr provide, and m ds to the City, he Information formation sec d to the City, and maintena d business co a secure and o the integrate agement dev ment to provid and submit an provider reaso e of providing T TRANSACTIO mers to provid m. SCLOSURE law or this Po ial and will no of the person otect the conf and or third p h the City or r ployee and/o -related busin as reasonable a person, the The notice of he nature of t responsive ac ION n for a period ears, and the GHT s and vendors a-Service (Sa of the Informa as a condition ractors, if any maintain a sec to the extent n. curity directive including con ance process ontinuity plann reliable envir ed framework vices, upon wh de services to n Information onably determ services, the ON ACT OF 200 de their Inform olicy, the City ot disclose it, n affected. The fidentiality and party contrac receive servic or the third pa ness and in ac e grounds to e City will notif f breach will in the Informatio ction taken by d of time as m ereafter such i s to provide s aaS). ation of those n of selling go y, including an cure IT enviro t any scope of es pertaining nnection to th es needed to ning; and (c) t ronment and k, including, w hich digital ne o the City, the Security and mines that it ca e City will requ 03 mation in orde In Informa y will treat the or permit it to e City will dev d security of t ctors to acces ces from the C rty contractor ccordance wit believe that a fy the affecte nclude the da on that is the y the City. may be require information w software appli who do busin oods and/or s ny IT infrastru onment, while f work or serv to: (a) the IT e City's IT sy o support the the IT infrastr service availa without limitat etworks opera e City’s staff w Privacy Que annot fulfill th uire the SaaS er for the City City of nformation Te ation Security Pa 31 Janua e Information o o be disclosed velop and ma the Informatio s and/or use City. In those rs to agree to th the Policy. a security bre d person of s ate(s) or estim subject of the ed by law, or i will be schedu cation and da ness with the ervices to the cture service e it performs s vices implicat infrastructure stems; (b) the IT environme ructure perfor ability to the C tion, data cen ate. will require the estionnaire. In e information S services pro to initiate and Palo Alto chnology Services age 7 of 8 ary, 2013 of d, to third aintain on of the use ach has such mated e breach, if no led for atabase City and e City, s such tes the e, by e SaaS ent, rmance City. The ters, e SaaS n the n security ovider to d DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 Information P Version 2.2 Fede 108- credi and i preve CPA when chan Ther § 179 4. CO Info Chie Utili City Privacy Policy eral regulation 159), includin itor” which pro implement pro ent, respond U procedures never significa nges to CPAU e are Californ 98.92. ONTACTS rmation Secu ef Information ties Departm y Attorney’s O y ns, implement ng the Red Fla ovides service ocedures for and mitigate s for potential ant changes t U identity theft nia laws which urity Manager n Officer: Rei ent: Auzenne Office: Kolling, ting the Fair a ag Rules, req es in advance an identity th potential iden identity theft to security im t procedures, h are applicab r: Patel, Raj < chental, Jona e, Tom <Tom Grant <Gran and Accurate quire that CPA e of payment eft program fo ntity theft of its will be review plementation or as approp ble to identity Raj.Patel@C athan <Jonath m.Auzenne@C nt.Kolling@Ci Credit Trans AU, as a “cov and which ca for new and e s customers’ wed independ n have occurre priate, so as to y theft; they ar CityofPaloAlto han.Reichent CityofPaloAlto tyofPaloAlto.o In Informa sactions Act o ered financia an affect cons existing accou Information. dently by the ed. The ISM w o conform to re set forth in .org> tal@CityofPal o.org org> City of nformation Te ation Security Pa 31 Janua of 2003 (Publi l institution or sumer credit, unts to detect, ISM annually will recomme this Policy. California Ci loAlto.org> Palo Alto chnology Services age 8 of 8 ary, 2013 c Law r develop , y or nd vil Code DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 f This Exhibit sh into by and be for the provisio In order to  people who patrons and City, as a c including, w subcontract services pro below, whi Statement o privacy of t information A “secure IT the City, in maintenanc continuity p and reliable integrated  managemen In the event the Require writing, on Requiremen satisfaction  Part A.   The Consult (a) Appo SO all be made a  etween the City on of Software assure the  o do business d other indiv condition of  without limit tors, if any, i ovider, shal le it render of Work, Ex he personal n security req T environme ncluding co ce processes planning; and e environm framework, nt devices, u t that, after  ements, the  e or more  nts” as set  of the Infor Requirem tant shall at  oint or desig OFTWARE  T part of the City y of Palo Alto (t e as a Service to privacy and  s with the C viduals and  receiving s tation, the S including, w l design, ins rs and perfo xhibit B, to   information quirements  ent” include onnection to s needed to s d (c) the IT i ent and se , including, upon which d the Effectiv Consultant  alternate  forth in Pa mation Secu ments:  all times dur gnate an em AS A SERV TERMS AN y of Palo Alto’s the “City”) an o the City (the  security of  ity, including businesses, services from Software as  without limita stall, provid orms the Se the extent  n of the City (the “Requir es: (a) the IT o the City' support the  nfrastructur rvice availa  without l digital netwo ve Date, the  shall promp countermea art B), whic urity Manage ring the term mployee, pre EXHIBIT "F" VICE SECU ND COND s Professional S “Agreement”) the person g, without li who are re m the City  a Service se ation, any In de, and mai ervices and  any scope o y’s custome rements”) se T infrastructu s IT system environmen re performa bility to th imitation, d orks operate Consultant ptly inform t asure optio ch may be  er (the “ISM m of any con eferably an  Doc URITY AND DITIONS  Services Agree d TRUEPOINT SOLUTIONS _____________________ ).  al informati mitation, ve equired to sh or selling g ervices prov nformation T ntain a sec furnishes g of work imp rs. The Cons et forth in Pa ure, by whic ms; (b) the nt, including nce monitor e City.  “IT data cente e.  reasonably  he City of it ns to the  accepted o ”).   ntract betwe executive o ument Versi D PRIVACY  ement or any o ___________ on of the C endors, utilit hare such in goods and s vider (the “C Technology  ure IT envir goods, if an plicates the  sultant shall art A below. ch the Servi e Consultan g disaster rec ring services T infrastruct rs, comput determines  ts determina Requiremen or rejected  een the City  fficer, as th City of Information on: V2.5 [11/ Doc: Info Pa   ther contract e _ (the “Cons City’s custom ty customers nformation w ervices to t Consultant”) (“IT”) infras ronment, de y, described confidentia l fulfill the d   ces are prov t’s operatio covery and b s to ensure a ture” refers ers, and d that it cann ation and su nts (the “A in the rea and the Con e security li Palo Alto n Security /01/2012] oSec 110 age 1 of 3 entered  ultant”)  mers and  s, library  with the  the City,  ) and its  tructure  escribed  d in the  ality and  data and  vided to  ons and  business  a secure  s to the  database  not fulfill  ubmit, in  Alternate  asonable  nsultant:  aison to  DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 the C (b) Prov Que to t impl adop anni majo (c) Have docu Man http http (d) Cond appr (e) Deve vers (f) Deve perf perm enab of it term (g)  Prov met  (h) Impl role‐ pers syste that  the d (i) Assis Serv impl and  (j) Prov conf (k) Depl patc secu (l) Prov inclu (m)  Not unau City with res vide a full an stionnaire (t the Require ementation pt as counte versary dat or changes t e adopted  umented, ar nagement Sy ://www.iso. ://www.iso. duct routine ropriate to t elop and m ions and pat elop an in orming prof mit verificati ble the imm ts employee minated.  vide a list of or has failed ement acce ‐base acces onnel, syste ems security would requ detection an st the City i vices’ enviro emented m secure IT ar vide and m fidentiality, i loy and mai h and/or rel urity patches vide for the uding on‐goi ify the City uthorized ac spect to the  nd complete the “Questio ements, as   plan of req ermeasures  e of this Ag o the IT infra and imple re accessible ystems (ISMS org/iso/hom org/iso/iso_ e data and  heir role.  aintain deta tch levels.   dependently fessional an ion of empl ediate denia es who no  f IT infrastru d to meet an ess accounta s control (“ ems and sof y approach t uire more th nd preventio n undertaki onment des easures in a chitecture.  aintain sec ntegrity and ntain IT sys lease levels  s must be ins  timely det ng incident  y within on ccess to or th Services to b e response t onnaire”) to and when  uired count in the perfo greement th astructure. emented in e to the City S) Standards me/store/cat _catalogue/c information ailed docum y verifiable nd criminal  loyees’ pers al of access  longer wo ucture comp ny objective  ability (ident “RBAC”) an ftware used  to restricting an one indiv on of fraud a ng annually  sign and de accordance w ure intersys d availability tem upgrad by not later  stalled withi tection of, r monitoring w e (1) hour  he misuse of be performe to the City’s o the ISM, an requested. termeasures ormance of t he Consultan nformation  y and confo s. See the fo talogue_tc/c catalogue_tc n security co mentation of e process,  background sonal identit to the City' uld require  ponents in o terms and c tification and d segregatio to provide  g access only vidual to co nd errors.   an assessm eployment  with industry stem comm y of the City's des, patches  than one (1 n 24 hours a response to with logging of detectin f the City's c Doc ed under thi s Supplier Se nd also repo . The respo s, which the  the Services nt shall rep security an orm to ISO 2 llowing:  catalogue_d c/catalogue_ ompliance t f the IT infr consistent  d checks of  ty and emp s confidenti  access to  order to ver conditions. d authentica on of dutie the Services y to authoriz mplete a se ment to assu are known y best pract munication  s informatio  and config 1) week afte after its date o, and the r g.   ng a securit onfidential d ument Versi s Agreemen ecurity and  ort any majo onse shall  City require s.  In additio ort to the C nd privacy  27001/2 – In detail.htm?cs _detail.htm? raining of it rastructure,  with indus its employ ployment sta ial data and  that inform rify whether ation) archit es (“SoD”) m s. “RBAC” re zed users. “S ecurity task i ure that: (1)   to the Ci ices applicab paths that  on.  urations con r its date of  e of release.  reporting of ty incident  data and inf City of Information on: V2.5 [11/ Doc: Info Pa t.   Privacy Asse or non‐confo include a  es the Consu on, as of the City, in writ policies t nformation  snumber=42 ?csnumber= ts personne including s stry standa yees that (1 atus, and (2 information mation or w  the Consult tecture and  mechanisms efers to a co SoD” is an a in order to p all element ity, and (2) ble to secure would ens nforming to release. Em   f security in that results ormation.  Palo Alto n Security /01/2012] oSec 110 age 2 of 3 essment  ormance  detailed  ultant to  e annual  ting, any  hat are  Security  2103  =50297  l that is  software  rds, for  1) would  2) would  n by any  who are  tant has  support  s for all  omputer  pproach  promote  ts of the  ) it has  e coding  sure the   current  mergency  ncidents,  s in the  DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 (n) Infor (o) Perfo basis anni (p) Acco perf third Cons prac dete (q) Coop regu auth (r) Perfo Serv (s) Main earli thirt all of (t) Main data (u) Encr and  (v) Unle indir use,  inclu   Part B.       rm the City t orm securit s, and provid versary date ommodate,  ormance of  d party serv sultant’s an ctices, syste ection and re perate with  ulations, the horized third orm regular vices.  ntain record er terminat ty (30) days  f those reco ntain the Co a and inform rypt the Con or any autho ess otherwis rect or puni data or pro uding, witho Alternate that any thir y self‐audits de the requi e or any othe as practica random site vice provide nd its third  ms configu esponse.  the City to   Confidentia d party servic r, reliable se ds relating to tion of this A after the eff rds relating  onfidential I ation privac fidential Inf orized recipi se addressed tive damage ofits, arising ut limitation e Requireme rd party serv s on a regu ired summar er date agre ble, and up e security au r(s), as app party serv rations, acc ensure that al Informati ce provider’s ecured back o the Service Agreement  fective date  to the perfo nformation  cy laws, rules ormation be ient.  d in the Agr es whatsoev g out of or i n, IT infrastru ents:  vice provider lar basis an ry reports of eed to by the pon reason udits at the C licable. The vice provide cess authen t to the ext on will be a s personnel. ups of all da es for a perio and in a m of expiratio ormance of t in accordan s and regula efore deliver reement, sh ver includin n any way c ucture comm Doc r(s) meet(s)  nd not less f f those self‐ e Parties.   able prior  Consultant’s   scope of t er(s)’ aware ntication an tent required accessible o .  ata needed  od of three  utually agre on or earlier  the Services  nce with app tions.   ring the sam hall not hold g, without  connected w munications ument Versi all of the Re frequently t audits to the notice by t site(s), inclu these audits eness of se nd authoriza d by applica only by the  to maximiz (3) years aft eeable stora termination shall be pro plicable fede me by electro d the City li limitation, d with the Cit .  City of Information on: V2.5 [11/ Doc: Info Pa equirements than on a q e ISM on the the City, th uding the sit s will extend ecurity polic ation, and  able laws, ru Consultant  ze availabilit ter the expir ge medium n of this Agre ovided to the eral, state a onic mail to  able for any damages for ty’s IT enviro Palo Alto n Security /01/2012] oSec 110 age 3 of 3 s.  quarterly  e annual  he City’s  te(s) of a  d to the  cies and  incident  ules and  and any  ty of the  ration or  . Within  eement,  e ISM.  and local  the City  y direct,  r loss of  onment,  DocuSign Envelope ID: FF2182AA-C426-419D-BDE5-9AA78A023E24 City of Palo Alto (ID # 8062) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: RWQCP Ash Contract Amendment with PSC Industrial Outsourcing Title: Approval of Amendment Number 1 to Contract Number C16161852 With PSC Industrial Outsourcing, LP (PSC) to Increase Compensation for the Second and Third Contract Years By $102,217 for a Total Not-to-Exceed Contract Amount of $585,920 to Address Higher Landfill Disposal Costs for the Transportation and Disposal of ash From the Regional Water Quality Control Plant From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve Amendment Number 1 to Contract C16161852 (Attachment A)with PSC Industrial Outsourcing, LP (PSC) to increase the compensation by $102,217 for the remaining Years 2 and 3 of the contract for a total amount not-to-exceed $585,920 for transportation and disposal of ash and sludge for the Regional Water Quality Control Plant (RWQCP). Background The RWQCP produces approximately two tons per day of ash from its sewage sludge incinerators. Ash pickups are weekly and average 11 to 15 tons per pickup. In recent years, annual ash transport and disposal service has been between 605 to 723 tons. The ash has been managed as a state hazardous waste and placed in a hazardous waste landfill instead of a standard landfill since 2007. There are only two landfill options within California for disposal of California hazardous waste. Discussion PSC transports the ash to a state hazardous waste treatment facility operated by Waste Management. The facility is fully permitted to receive hazardous waste. City of Palo Alto Page 2 The facility is located west of I-5 near the unincorporated area of Kettleman City, approximately 186 miles from the RWQCP. As the first contract year (4/4/16 to 4/3/17) neared completion, PSC requested a meeting with Public Works Department staff to discuss contract price Bid Item A- 1-disposal cost of ash (Attachment C). PSC has been paying a disposal fee of $135/ton to Waste Management roughly since the start of Contract Year 1, which is a much higher expense than PSC’s Bid Item A-1 unit price of $65/ton (Year 1). PSC absorbed the disposal price increase throughout Contract Year 1 and requested an increase to $135/ton from Palo Alto for future contract years. Staff verified Waste Management landfill invoices from Contract Year 1 to justify PSC’s price increase request for contract Years 2 and 3. Staff evaluated rebidding the work in consultation with Administrative Services Department staff. The original request for quotation (RFQ 161852, Staff Report ID# 6696, Attachment B) resulted in two qualified contractors: PSC and Clean Harbors Environmental Services, Inc. In that solicitation, PSC provided the lowest bid for one-year, two-year,and three-year contract terms. Clean Harbors was approximately $299,308 more expensive for the three contract years. Even with the currently proposed disposal increase to $135/ton for contract Years 2 and 3, Clean Harbors is still approximately $100,247 more expensive than PSC. Therefore, staff does not recommend rebidding the work. Instead, staff recommends approval of the price increase for Bid Item A-1 (Attachment C) for the second and third contract year in an amount not-to-exceed $102,217, for a total contract amount not-to-exceed of $585,920, consistent with the $135/ton disposal cost. Resource Impact Funds for Year 2 of the contract have been appropriated in the FY 2017 adopted budget and are proposed in the FY 2018 Wastewater Treatment Enterprise Fund operating proposed budget. Funds for Year 3 are contingent upon Council approval of the budget for subsequent years. Policy Implications This recommendation does not represent any change to existing City policies. City of Palo Alto Page 3 Environmental Review The recommended action is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 (b), which exempts negligible expansion of an existing use including operation of publicly- owned sewerage services, structures, facilities, mechanical equipment, or topographical features. Attachments: ·Attachment A: C16161852-Amendment No.1 ·Attachment B: 6696 Transportation and Disposal of Ash and Sludge ·Attachment C: Modified Fee Schedule for Years 2 and 3 1 Revision July 20, 2016 AMENDMENT NO. 1 TO CONTRACT NO. C16161852 BETWEEN THE CITY OF PALO ALTO AND PSC INDUSTRIAL OUTSOURCING, LP This Amendment No. 1 to Contract No. C16161852 (“Contract”) is entered into June 19, 2017, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PSC INDUSTRIAL OUTSOURCING, LP, a Delaware Limited Liability Partnership, located at 5151 San Felipe, Ste. 1100 , Houston, TX 77056 (CONTRACTOR). R E C I T A L S A. The Contract was entered into between the parties on March 2, 2016 for a three-year term for transportation and disposal of ash and sludge from the Regional Water Quality Control Plant to a hazardous materials landfill, with a maximum compensation of Four Hundred Eighty Three Thousand Seven Hundred Three Dollars and Fifty Six Cents ($483,703.56). B. The parties now wish to amend the Contract by increasing the compensation for the second and third years of the Contract term to reflect the higher actual cost of disposal at the landfill than reflected in the bid. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 5 “COMPENSATION FOR ORIGINAL TERM.” is hereby amended to read as follows: “A sum calculated in accordance with the fee schedule set forth at Exhibit C, not to exceed a total maximum compensation amount of Five Hundred Eighty Five Thousand Nine Hundred Twenty Dollars and Sixty One Cents ($585,920.61). “CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY. “ SECTION 2. The following exhibit(s) to the Contract is/are hereby added to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “C-1” entitled “SCHEDULE OF FEES”. DocuSign Envelope ID: 2E340B4E-8E93-47E8-80B8-81A8BC90E70A 2 Revision July 20, 2016 SECTION 3. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO City Manager (Contract over $85k) APPROVED AS TO FORM: City Attorney or designee (Contract over $25k) Contracts Administrator (Checklist Approval) PSC INDUSTRIAL OUTSOURCING, LP Officer 1 By: Name: Title: Attachment: EXHIBIT "C-1": SCHEDULE OF FEES DocuSign Envelope ID: 2E340B4E-8E93-47E8-80B8-81A8BC90E70A CFO Jeffrey A. Stocks Attachment C: Modified Fee Schedule Summary, Contract Years 2 and 3 C16161852: Transportation and Disposal of Ash and Sludge Bid  Item Bid Schedule Section Description UOM Qty PSC Unit Price PSC Line  Total Year 2 A‐1A: ash hauling & disposal Disposal cost of ash 2 TON 723 $135.00 $97,605.00 A‐2A: ash hauling & disposal Transportation cost of ash:LOAD 53 $1,236.00 $65,508.00 A‐3A: ash hauling & disposal Liner installation fee for ash ‐ per load LOAD 53 $51.50 $2,729.50 A‐4A: ash hauling & disposal Bin Rental for ash DAYS 365 $9.27 $3,383.55 A‐5A: ash hauling & disposal CA Non‐RCRA taxes for ash; based on the most current CA BOE schedule TON 723 $25.55 $18,472.65 A‐6A: ash hauling & disposal Local taxes for ash, as necessary, per ton TON 723 $7.15 $5,169.45 A‐7A: ash hauling & disposal Surcharges/fees for ash, lump sum LS 1 $0.00 $0.00 Subtotal $192,868.15 B‐1B: sludge hauling & disposal Disposal cost of sludge TON 150 $22.66 $3,399.00 B‐2B: sludge hauling & disposal Transportation cost for sludge LOAD 12 $618.00 $7,416.00 B‐3B: sludge hauling & disposal Liner installation fee for sludge ‐ per load LOAD 12 $51.50 $618.00 B‐4B: sludge hauling & disposal Bin Rental DAYS 12 $9.27 $111.24 B‐5B: sludge hauling & disposal Local taxes, as necessary, per ton TON 150 $0.00 $0.00 B‐6B: sludge hauling & disposal Surcharges/fees for sludge, lump sum LS 1 $0.00 $0.00 B‐7B: sludge hauling & disposal Roll‐off bin mobilization during backup sludge hauling service EA 6 $463.50 $2,781.00 B‐8B: sludge hauling & disposal Onsite truck and truck driver to move empty and full bins in and out of  incinerator building during backup sludge handling service HR 48 $97.85 $4,696.80 Subtotal $19,022.04 Contract Year 1, Total for Bid Schedules A and B Subtotal $156,492.79 Original Contract Year 2, Total for Bid Schedules A and B Subtotal $161,187.57 Add Y2 Funds Revised Contract Year 2, Total for Bid Schedules A and B Subtotal $211,890.19 $50,702.62 Price Increases Estimated price increase ‐ Year 3 1 % 1 3.00% $5,647.44 Original Contract Year 3, Total for Bid Schedules A and B $166,023.20 Add Y3 Funds Revised Contract Year 3, Total for Bid Schedules A and B $217,537.63 $51,514.43 Total Additional Fund $102,217.05 Note 1: 3rd year contract price increases on items A‐1, 2, 3, and 4, and B‐1, 2, 3, 4, 7, and 8 only Original Not To Exceed $483,703.56 Note 2: PSC price increase request on bid item A‐1 from $66.95/ton in contract year two for a new price of $135/ton Revised Not to Exceed $585,920.61 UOM = unit of measurement; Qty = quantity; LS = lump sum; EA = each; HR = hour Page  2 of 2 EXHIBIT C-1 SCHEDULE OF FEES AMENDMENT NO. 1 DocuSign Envelope ID: 2E340B4E-8E93-47E8-80B8-81A8BC90E70A City of Palo Alto (ID # 6696) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/4/2016 City of Palo Alto Page 1 Summary Title: Transportation and Disposal of Ash and Sludge Title: Approval of a Wastewater Treatment Fund Contract With PSC Industrial Outsourcing, Inc. in a Total Amount Not- to-Exceed $483,703.56 for a Three- Year Term to Transport and Dispose of Ash and Sludge for the Regional Water Quality Control Plant From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute the attached contract with PSC Industrial Outsourcing, LP (PSC) for a period of three years not to exceed amount of $483,703.56 for transportation and disposal of ash and sludge for the Regional Water Quality Control Plant (Attachment A). Background The Regional Water Quality Control Plant (RWQCP) produces approximately two tons per day of ash from its sewage sludge incinerators. Ash pickups are weekly and average 11 to 15 tons per pickup. In recent years, annual ash transport and disposal service has been between 605 to 723 tons. Engineering design of a Sludge Dewatering and Loadout Facility (Staff Report ID #5295) is nearly complete with construction of the facility scheduled for completion in summer 2019. This will allow for the retirement of the incinerators after 47 years of service. The ash has been managed as a state hazardous waste and placed in a hazardous waste landfill instead of a standard landfill since 2007. Staff has investigated the origin of the soluble copper that violates the state (but not federal) hazardous waste criteria. Staff has not been able to determine the cause of the soluble copper or any practical treatment modifications. The soluble copper forming in Attachment B City of Palo Alto Page 2 the ash during sludge incineration has not impacted the plant’s air or water discharges. If the soluble copper level drops below state thresholds for hazardous waste or hazardous waste stabilization during the contract term, the ash will be directed to an approved landfill at lower cost. During the contract term, it is expected that soluble copper levels will remain above 40 parts per million and require disposal as hazardous waste requiring stabilization. The existing ash hauler is Clean Harbors Environmental Services, Inc. (Clean Harbors). Clean Harbors has hauled the ash from 2013 to present. Veolia hauled the plant ash from 2010 to the 2013. PSC hauled and disposed of the plant’s ash from 2007 to 2010. PSC provided satisfactory service between 2007 and 2010. Discussion PSC will dedicate two sealed bins for ash hauling service. PSC will pick up a full bin of ash once a week and replace it with an empty bin. PSC will transport the ash to a state hazardous waste treatment facility operated by Waste Management. The facility is fully permitted to receive hazardous waste. The facility is located west of I-5 near the unincorporated area of Kettleman City, approximately 186 miles from the Plant. The City’s two sewage sludge incinerators have been operating reliably since 1972, without any serious disruption to the incineration process. However, it is possible that extended incinerator downtime would leave the City without readily available sludge treatment and disposal alternatives. As a backup to ash disposal, PSC will provide emergency sludge transport and disposal in the event the plant’s two sewage sludge incinerators are both inoperative for a period of more than approximately four days. Like the ash, PSC has proposed disposal of the raw sludge at the Waste Management Kettleman Hills Facility. East Bay Municipal Utilities District (EBMUD) in Oakland, California is an alternate sludge disposal location during emergency situations. EBMUD has the necessary permits as well as the experience treating raw sludge from other wastewater treatment agencies. It can treat sludge on a short-term basis during emergencies and digester maintenance (e.g., for Richmond, California, Central Marin Sanitation Agency, and others). Summary of Bid Process City of Palo Alto Page 3 A request for quotation for the project was posted on the City’s procurement site and sent to 91 bidders. The bidding period was 31 days. Bids were received from two qualified contractors on February 23, 2016 as listed on the attached bid summary (Attachment B). Staff has reviewed all bids submitted. Bids ranged from a high of $253,336.80 (Clean Harbors) to a low bid of $156,492.79 (PSC). Staff recommends that the bid of $156,492.79 submitted by PSC be accepted and that PSC be declared the lowest responsible bidder. PSC provided the lowest bid for both one-year, two-year and three-year contract terms. Staff checked references supplied by the contractor for previous work performed and found no significant complaints. Staff also checked the Contractor's State License Board and found the contractor has an active license on file. Bid Name/Number Transportation and Disposal of Ash and Sludge / RFQ 161852 Proposed Length of Project 1 year with option to extend two additional years Number of Bids Mailed to Contractors 91 notified through PlanetBids Number of Bids Mailed to Builder’s Exchanges 0 Number of downloads 7 prospective bidders, (2 of 7 are Builder’s exchanges) Total Days to Respond to Bid 31 Pre-Bid Meeting? Yes Number of Company Attendees at Pre-Bid Meeting? 2 Number of Bids Received: 2* Bid Price Range From a low of $156,492.79 to a high of $253,336.80 – 1st contract year From a low of $483,703.56 to a high of $783,011.45 – all 3 contract years *Bid summary provided in Attachment B. Resource Impact Funds for the first year of the contract have been appropriated in the FY 2016 Wastewater Treatment Enterprise Fund operating budget. Fund for years two and City of Palo Alto Page 4 three are contingent upon Council approval of the budget for each subsequent year. Policy Implications This recommendation does not represent any change to existing City policies. Environmental Review The recommended action is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 (b), which exempts negligible expansion of an existing use including operation of publicly- owned sewerage services, structures, facilities, mechanical equipment, or topographical features. Attachments: Attachment A: Contract C16161852 (PDF) Attachment B: RFQ 161852 Bid Results Summary (PDF) Attachment A OocuSlgn Envelope ID: 44BF9083-A76E-4EF1-9A95-3F616E433470 CITY OF PALO ALTO CONTRACT NO. C16161852 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the 2"d day of March, 2016, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY11 ), and PSC INDUSTRIAL OUTSOURCING, LP1 a Delaware Limited Liability Partnership, located at 5151 San Felipe, Ste 1.6019~ Houston, TX 77056, Telephone Number: 925-244-1803 ("CONTRACTOR"). In consideration of their mutual covenants, the parties hereto agree as follows: 1. SERVICES. CONTRACTOR shall provide or furnish the services (the "Services") described in the Scope of Services, attached at Exhibit A. 2. EXHIBITS. Th e following exhibits are attached to and made a part of this Agreement: rz1 "A" -Scope of Services [8J"A-1" -Lab Data ~"A-2" -Ash Bin Cover Diagram [8J "B" -Schedule of Performance [8J "C'1 -Schedule of Fees i:8J"D" -Insurance Requirements CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED- 3. TERM. The term of this Agreement is from April 4, 2016 to April 3, 2019 inclusive, subject to the provisions of Sections Q and V of the General Terms and Conditions. 4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached at Exhibit B. Time is of the essence in this Agreement. S. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not-to-exceed compensation for the full performance of the Services and reimbursable expenses, if any: Rev. February 22, 2016 DocuSign Envelope ID: 448F9D83·A76E·4EF1-9A95-3F616E43S47D r The total ma)<irnum lurnp surn compensation of OR dollars($ ); The sum of dollars ($ per hour, not to exceed a total maximum compensat·ion amount of dollars ($ ); OR P A sum calcu lated in accordance with the fee schedule set forth at Exhibit C, not to exceed a total maximum compensation amount of four hundred eighty three thousand seven hundred three dollars and fifty six cents ($483,703.56). CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY, r CITY has set aside the sum of dollars ($ ) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR's proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. 6. COMPENSATION DURING ADDITIONAL TERMS. r CONTRACTOR'S compensation rates for each additional term shall be the same as the original term; OR r CONTRACTOR's compensation rates shall be adjusted effective on the commencement of each Additional Term. The lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in section 5 above, shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-Oakland-San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable Additional Rev. Fcbruary22, 2016 DocuS[gn Envelope ID: 448F9083-A76E-4EF1-9A95-3F616E433470 Term, which shall be compared with the CPI published most Immediately preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRACTOR's compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term. Any adjustment to CONTRACTOR's compensation rates shall be reflected in a written amendment to this Agreement. 7. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project Manager is: James Allen1 Dept.: Water Quality Control Plant, Telephone: (650) 329-2243. Invoices shall be submitted in arrears for Services performed. Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt. GENERAL TERMS AND CONDITIONS A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 through 6 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled "SERVICES," and that every individual charged with the performance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR's representations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the Industry, including all federal, state, and local operation and safety regulations. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written Rev. February 22, 2016 DocuSlgn Envelope ID: 448F9083·A76E-4EF1 -9A95-3F616E433470 consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR's business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. PALO ALTO M INIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONTRACTOR shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR's performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessa ry to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR's performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR's request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike man ner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be flt for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section sha ll be in effect for a period Rev. February 22, 2016 DoouSi{ln Envelope ID: 448F9083-A76E-4ff1 -9A95-3F616E433470 of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. J. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR's work is completed in a satisfactory manner and complies with the provisions of this Agreement. K. CITY'S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of final payment, CONTRACTOR's records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described at Exhibit D. Insurance must be provided by companies with a Best's Key Rating of A-:Vll or higher and which are otherwise acceptable to CITY's Risk Manager. The Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an add.itional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to the Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide cu rrent certificates evidencing the required insurance coverages and endorsements to the Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY Rov. February 22, 2016 DocuSign Envelope ID: 448F9083·A76E·4EF1 -9A95-3F616E433470 separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR's liability or obligation to indemnify CITY under this Agreement. 0 . HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section M relating to insurance, CONTRACTOR shall Indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, pena lties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney's fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. CONTRACTOR's obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Agreement. P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liabillty for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. R. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days' prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Rev. February 22, 2.016 DoouSign Envelope ID: 448F9D83·A76E·4EF1 ·9A95·3F616E43347D Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination if for cause, CITY may deduct from such payment the amount of actual damage, if any, sustai ned by CITY due to CONTRACTOR's failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of CITY. No amendments, changes or variations of any kind are authorized without the written consent of CITY. T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Contract. CONTRACTOR further covenants that, in the performance of this Contract, it will not employ any person having such an interest. CONTRACTOR certifies that no CITY Officer, employee, or authorized representative has any financial interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest, direct or indirect, which could conflict with the faithful performance of this Contract. CONTRACTOR agrees to advise CITY if any conflict arises. U. GOVERN ING LAW. This contract shall be governed and interpreted by the laws of the State of California. V. ENTIR E AGREEMENT. This Agreement, induding all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in Rev. February 22. 2016 DoauSign Envelope ID: 448F9083-A76E-4EF1-9A95-3F616E433470 the event that f unds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year ih the event that funds are only appropriated for a portion of the fiscal year and funds for this Contract are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Contract. X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONTRACTOR shall comply with CITY's Environmentally Preferred Purchasing policies which are available at CITY's Purchasing Division, which are incorporated by reference and may be amended from time to time. CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal requirements of CITY's Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONTRACTOR shall comply with the following zero waste requirements: • All printed materials provided by CONTRACTOR to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double- sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Contractor on behalf of CITY sha ll be purchased in accordance with CITY's Environmental Purchasing Policy including, but not limited to, Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division's office, • Reusable/returnable pallets shall be taken back by CONTRCATOR, at no additional cost to CITY1 for reuse or recycling. CONTRACTOR shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed_ Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Z. CONTRACT TERMS: All unchecked boxes do not apply to this Agreement. In the case of any conflict between the terms of th ls Agreement and the exhibits hereto or CONTRACTOR's proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONTRACTOR's proposal, the exhibits shall control. Rev. February 22, 2016 DocuSign Envelope ID: 448F9D83-A76E-4EF1·9A95-3F816E43347D AA.DIR REGISTRATION. In regard to any public work construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR and its listed subcontractors are registered with the California Department of Industrial Relations ("DIR") to perform public work, subject to limited exceptions. City requires CONTRACTOR and its listed subcontractors to comply with the requirements of SB 854. CITY provides notice to CONTRACTOR of the requirements of California Labor Code section 1771.l(a), which reads: "A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded." CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRCATOR is required to post all job site notices prescribed by law or regulation and CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by DIR. CITY requires CONTRACTOR and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONTRACTOR and its listed subcontractors, in connection with the Project. The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONTRACTOR and its listed subcontractors, respectively. At the request of CITY, acting by its project manager, CONTRACTOR and its listed subcontractors sha.11 make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY's request. R~v. February 22, 2016 DocuSlgn Envelope ID: 448F9083-A76E-4EF1-9A95-3F6l 6E43347D -r -CITYrequests CONTRACTOR and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. If the certified payroll records are not produced to the project manager within the 10-day period, then CONTRACTOR and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONTRACTOR. Inform the project manager of the location of CONTRACTOR's and its listed subcontractors' payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. 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 PSC INDUSTRIAL OUTSOURCNG, LP City Manager or Designee (Required on contracts $85,000 and over) Title CFO & Treasurer Telephone: 713-985-5409 Approved as to form: Rev, Fe~ru.ary 22, 2016 DocuSign Envelope ID: 448F9DB3·A76E-4EF1-9A95-3F616E43347D 1.1 BACKGROUND EXffiBlTA SCOPE OF SERVICES A. The Palo Alto Regional Water Quality Control Plant (RWQCP) operates a sewage sludge incinerator, which creates a dry ash in the bottom of the furnace. The sludge is thennally transfonned into ash containing inorganic oxides. B. CONTRACTOR will dispose of the ash at the Waste Management Kettleman Hills Facility (KHF). C. Vendor has visually observed the bin drop off and pickup site and verified that the hauler's equipment can safely operate at owner's site. D. This is a contract for the combined services of hauling and disposal of sludge and ash. CONTRACTOR is a qualified, licensed hauler with the appropriate contract with a Class 1-11011.RCRA sanitary landfill. 1.2 PURPOSE A. This contract is for hauling and disposal of ash. The contractor is to maintain qualifications and licenses to haul the ash to a Class 1-nonRCRA sanitary landfill. B. The contractor shall transport a11d dispose of the ash in accordance with the terms and conditions of this contract. The Contractor shall be expressly designated by tbe Parties hereto as the transporter of, and the arranger for the disposal of all wastes to be transported, managed and disposed of under this contracl C. The sewage sludge incinerators have been operating since 1972 and producing ash. Though the incinerators have never failed, the potential ciusts for incinerator nonopcration and loss of all surplus sludge storage capacity. In this case, a backup transportation and disposal contract is needed to handle dewatered, untreated sludge and disposal at a sanitary landfill or at another sewage treatment plant. 1.3 CHARACTERISTICS OF ASH AND SLUDGE Ash pickups arc weekly and average 10 to 13 tons per pickup. A larger load (e.g., 20 tons) is not frequent and typically occurs after very large storms when the plant is processing a higher solids loading. In most years, there are 53 ash pickups {historically, they are always on Tuesday mornings). Pickups are occasionally (once or twice per year) more often than once a week and the CONTRACTOR wlll respond to calls for special pickups. Once a year, a11 industrial cleaning company (not part of this contract) cleans out one of the plant's incinerators oJ its ash for special inspection; an extra bin will be requested from the CONTRACTOR at least once a year for this purpose and drop off shall be within 48 hours. The special pickup shall not involve one of the two bins used for regular service. Previous year data is shown below, in tons. DocuSign Envelope ID: 448F9D83·A76E·4EF1 ·9A95-3F616E433470 Year No. of Loads Total Minimum 25%ile 50%1fe 75%ife Maximum 2010 53 713 11 .9 13.1 13.7 14.2 17.9 2011 54 723 10.0 12.6 13.4 14.0 18.0 2012 53 638 7.4 11.2 12.4 13.1 20.2 2013 55 628 2.9 10.7 11.2 12.5 16.8 2014 53 605 5.1 10.3 11.3 12.5 18.8 2015 51 631 6.2 11.3 12.3 14.5 15.7 A. Ash Copper Levels 1. Since about 2007, the plant's ash has been hauled and disposed of as a state hazardous waste because the soluble copper level exceeded state limits (not federal limits). Tf the soluble copper level drops below 25 ppm per state regulations during the contract term, the ash shall be directed to an approved municipal landfill. 2. Since mid-201 l, the soluble copper level in the ash has been over 40 ppm. When the soluble copper level in the ash is greater than 40 ppm, final disposal will require that the ash be disposed of in a Class I non-RCRA hazardous waste landfill and stabilized prior to disposal, if required by the jurisdiction of the landfill. lf the copper level drops per state requirements below 40 ppm during the contract term and remains over 25 ppm, the ash shall be direct landfilled at a Class 1 non-RCRA hazardous waste landfill. 3. Unless notified otherwise, the CONTRACTOR shall as:rnme that the soluble copper level remains greater than 40 ppm during the contract term. B. In previous years, offloading ash for stabilization, solidification, and disposal was delayed due to dust control and landfill equipment reliability issues. CONTRACTOR is aware that the material to be disposed of can easily beoome airborne and produce dust during trcatmcut and/or offloading; CONTRACTOR has coordinated with KHF regarding these issues. C. Wet sludge production is estimated to be 75 tons per day of 28% dry sludge cake (undigested and untreated). D. For waste characterization, ash sample lab analysis is included in Exhibit A-1. 1.4 AStI PACKAGING AND TRANSPORTATION A. The City will load the ash into a bin owned by the contractor and left at the plant site. The contractor shall provide two watertight, open-top, tarped bins for ash. One bin shall remain at tbe RWQCl> and the other shall be used by the contractor for exchanges. The contractor shall deliver the bin to the RWQCP for the temporary storage of the ash. The City will place the ash into the bin and will notify the contractor for exchal)ge of bin and disposal of the ash when the bin is sufficiently full and ready for disposal. The bin, each approximately 40 cubic yards, shall be water tight, lined, tarped, and suitable for transportation of the ash. B. The City will notify the contractor two calendar days before the required disposal of the ash and br11 exchange. Typical pickups are on Tuesdays. For City holidays falling upon a Tuesday or for other special coordination, the CONTRACTOR is to work with plant staff to determine an alternate pickup day. Upon notice, the contractor shall at its expense, remove, transport, and dispose of the ash at an approved, class 1-nonRCRA sanitary landfill site suitable for p1•oper disposal of ash. Removal and exchange of the bins shall be between the hours of 6:05 a.m. and 5:30 p.m., upon City notification. Transportation shall be b y licensed, registered haulei' who complies with all local, state, and federal laws. DocuSign Envelope ID: 448F9083-A76E-4EF1-9A95-3F616E43347D C. The City owns and maintains an ash bin cover with a screw to move ash throughout the bin for even distribl.Jtion. The waste hauler shaJJ only provide bins compatible with the existing cover. A diagram and dimensions of the City's ash bin cover is included in Exbibil A-2. The City will remove the ash bin cover prior to bin pickup. l.5 EMERGENCY SLUDGE PACK.AGlNG AND TRANSPORTATION A. The City will load the sludge into a bin owned by the contractor and left at the plant site after notification of need for this service. The contractor shall provide multiple watertight bins for sludge. One bin shall remain at the R WQCP and the others shall be used by the contractor for exchanges. The contractor shall deliver the bin to the RWQCP for the temporary storage of the sludge. The City will place the sludge into the bin and will notify the contractor for exchange of bin and disposal of the sludge when the bin is sufficiently full and ready for disposal. The bin, each approximately 20 cubic yards, shall be water tight, lined, and suitable for transportation of untreated sludge. B. If the emergency sludge disposal is needed, the hauler will need to mobilize to provide service within 24 hours. The plant will need the change out of five or more CONTRACTOR-supplied 20-cubi.c yard drop-off bi.ns per day, 24 hours per day, seven days per week. The hauling and transport of sewage sludge will continue until the sewage sludge incinerators are repaired. The CON'l'RACTOR will need to have made arrangements in advance for this service should it be required. C. The City will notify the contractor in the event of an emergency need to use their services for sludge hauling. The contractor shall provide a 24-hour emergency dispatch number. Upon notice, tbe contractor shall at its expense, remove, transport, and dispose of the sludge at an approved sanitary landfill site suitable for proper disposal of untreated sewage sludge. Removal and exchange of the bins shall be at all hours of plant operation. Temporary storage of sludge bins is available onsite when landfills are closed. Transportation shall be by licensed, registered hauler who complies with all local, state, and federal Jaws. 1.6 WEIGHTS AND ASSAYS A. The City will keep a record of the estimated weight or volume of each truck load of waste. At its expense, the contractor shall weigh each truckload of waste received at its disposal site and submit the weight tags to the RWQCP. 1.7 DOCUMENTATION, PERMITS AND INSURANCE A. The contractor shall maintain pennits and insurance required during the term of this contract. B. Contractor shall provide all appropriate documentation, certifications and records for the transportation, management and disposal of Class l wastes and all applicable federal, state and local laws and regulations, including, but not limited to; I. bills oflading or non-hazardous waste manifests 2. Class I waste manifests and continuation sheets 3. labpack inventory sheets 4. land disposal restriction notifications 5. Class I waste profiles 6. certificates of destructio~ decontamination, disposal and/or recycling Appropriate copies of the documentation listed above as well as any other documents required by the City's Project Manager shall be fumished to the City's Project Manager at the time of waste shipment. C. Closed originals of all uniform hazardous (and non-hazardous) waste manifests signed by a duly authorized representative of the receiving Treaunent/Storage/Disposal Facility (TSDF) shall be DocuSign Envelope ID: 448F9083-A76E-4EF1-9A95-3F616E43347D furnished to the City's Project Manager within thirty (30) calendar days of waste shipment. This requirement shall sutVivc the expiration and/or termination of the Agreement. D. Certificates of destruction, decontamination, disposal and/or recycling signed by a duly authorized representative of the receiving TSDF shall be furnished by the Contractor to the City's Project Manager for all wastes to be managed under this contract within one hundred and eighty {180) calendar days of waste ship1nent. This requirement shall survive the expiration and/or termination of the Agreement. E. The Contractor shall, at all times during the transportation, storage, and disposal of wastes to be managed under this contract, know the location, condition and status of each item being managed. The Contractor shall make such information available in written progress reports to the City's Project Manager upon request. The progress reports shall include a listing of items removed, referenced by an appropriate identification number and uniform Class I waste manifest number and a description of the location and status of wastes on date of the written progress.report. 1.8 PICKUP ADDRESS A. Palo Alto Regional Water Quality Control Plant Attn: Operations Shift Supervisor or Senior Operator 2501 Embarcadero Way Palo Alto, CA 94303 650-329-2598 -phone 1.9 BILLING ADDRESS B. Palo Alto Regional Water Quality Control Plant Attn: Mary Sekator 2501 Embarcadero Way Palo Alto, CA 94303 650-329-2396 -phone 650-494-8395 -fax 1.10 PRICING CONDITIONS AND ANNUAL INCREASES A. ADDITIONAL PRICING CONDITIONS 1. Demurrage will not be charged for pickup of waste up to and including 90 minutes of loading and unloading time. After 90 minutes, the demurrage charge of $95/hour applies will apply iftbe City causes the delay. 2. Demurrage will not be cl1arged for delays caused by the hauler not having proper paperwork at the time of arrival at the pfant site. 3. Unloading demurrage will not be charged for wastes being delivered unless the City of Palo Alto creates a condition such as an improperly identified waste or nonconforming waste. 4. A minimum volume of 10 tons (or yards, whichever is greater) will be billed for all waste received in a roll-off container, intermodal, or dump trailer delivered to hauler's waste disposal facility. 5. Haulers' owned or leased roll-off containers or other equipment that are damaged by City of Palo Alto may be repaired by contractor and invoice City at a quoted hourly rate for labor and parts invoiced at no more than cost plus 30%. 6. Roll-off washout charges arc to be included in the pricing. 7. In the event sludge can be hauled to East Bay M uuicipal Utilities District, the pricing for emergency sludge disposal shall be cost plus l 0%. For the base contract, the prices in Section B above shall apply. 8. In case of price increase due to new regulatory fees, waste hauler must notify the City of Palo Alto DocuSign Envelope ID: 448F9083-A76E-4EF1 -9A95-3F616EA33470 in writing bcfo1'¢ nny nddi1101u1t tees will be nllowcd. B. ANNUAL INCREASES l. Tho price increase for the second and third 12-month periods of this contract is to be detennined in the Base Bid Schedules. 2. In the case of a price increase due to new regulatory fees, the contractor must notify the City of Palo Alto in writing before any additional fees will be allowed. 1.11 MISCELLANEOUS CONDITIONS A. The waste hauler will have free and easy access to the pickup site. B. The waste hauler will maintain containers in DOT shippable condition. C. Composition of Waste i. If CITY'S waste materials do not conform to the descriptions and specifications in the corresponding Profile Sheet, CONTRACTOR and CITY shall, in good faith, attempt to amend the Profile Sheet and any other pertinent documents and/or correct any improper containerization, marking or labeling to enable CONTRACTOR to accept such non-conforming waste materials at a Facility. [f the parties cannot, within a reasonable time after CONTRACTOR notifies CITY the waste materials are non-conforming, resolve the same as set forth above, CITY shall make promp1 a1l'angements for the removal of such non-conforming waste materials from the Facility at which they arc located to another lawful place of storage or disposal. CITY agrees to pay CONTRACTOR its reasonable expenses and charges it1cu1Ted with respect to CITY'S' non- conforming waste materials. ii. CONTRACTOR ADDlTIONAL WARRANTIES CONTRACTOR Tepresents and warrants to CITY that: a. CONTRACTOR is engaged in the business of performing Services with respect to waste materials and has developc<l the requisite expertise to perform the Services agreed to by CITY and CONTRACTOR hereunder; b. all CONTRACTOR vehicles and each Facility utilized to perform Services hereunder shall have all permits, licenses, certificates or approvals required under applicable Jaws and regulations for such Services; and c. CONTRACTOR will perform Services for CITY in a safe and workmanlike manner, and in compliance with all statutes, ordinances, laws, orders, rules and regulations applicable to the Services. ill. CITY'S WARRANTIES CITY represents and warrants to CONTRACTOR that: a. the description of and specifications pertaining to its waste materials in the Profile Sheet is and at all times will be true and correct in all material respects, and waste materials tendered to CONTRACTOR will at all times, including, without limitation, at the time of recertification of the waste materials, conform to the description and specifications contained in the Profile Sheet; b. CITY has made available all information it has regarding the waste materials, and if CITY receives information that the waste materials described in a Profile Sheet present, or may present, a hazard or risk to persons or the envitonment not reasonably disclosed in the Profile Sheet, CITY will promptly report such information to CONTRACTOR; c. if CITY is not the Generator of the waste materials (as defined in 40 CFR 260.10), CITY has all necessary authority to enter into this Agreement with respect to the waste materials; d. CITY is under no legal restraint which prohibits the transfer of possession of such waste materials to CONTRACTOR; c. CITY shall comply with all applicable statutes, ordinances, laws, orders, rules and regulations~ and shall provide CONTRACTOR a safe work environment for Services performed on any premises owned or controlled by CITY; and f if CONTRACTOR requests that work areas be secured, CITY will be solely responsible for securing such work areas and for preventing anyone other than CONTRACTOR personnel from entering the designated work areas. D. TRANSFER OF TITLE CONTRACTOR shall take title to CITY's waste materials which conform to DocuSlgn Envelope ID: 448F9083·A76E-4EF1•9A95-3F616E433470 the descriptions and specificalions staled in the Profile Sheet upon completion of' loading into CONTRACTOR's transportation vehicles, or if transported by CITY, upon acceptance at the Facility. E. CONTRACTOR acknowledges that a major construction project to construct a sludge dcwatering building will occur in the field sout11 of the ash bin during the contract term. The field south of the bin will not be available during much of the contract term for maneuvering the hauler's ttuck. The conslrnction contractor may move the ash hauler's bin during the construction contract for logistical purposes. The CONTRACTOR is required to have a reciprocal agreement with the city's construction contractor allowing free movement of the hauler's bin at no cost to the city or the construction contractor. The agreement shall cover necessary coordination requirements (e.g., liability for bin damage). The constiuction contractor has not been selected. The city's project manager will notify PSC when the construction contractor has been selected. F. The City does not expressly or by implication agree that the actual amount of work shall correspond to approximately weekly pickups in tbe range of 605 to 723 dry tons/year of ash mentioned in the bid, but reserves the right to increase, decrease or modify the ah1ount of any class or portion of the work or to 01n1t portions of the work as may be deemed necessary or expedient by the City's Project Manager. END OF SECTJON DocuSign Envelope ID: 448F9D83-A76E·4EF1 ·9A95-3F61 6E43347D NELAP/ORELAP Certification 4036 t._ Caltest CA-ELAP Certification 1664 ' VHl, ... , \I • •It••"~"'''" II REVISED II Thursday, June 18, 2015 Samantha Bialoruckl City of Palo Alto 2501 Embarcadero Way Palo Alto, CA 94303 Re Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Dear Samantha Bialorucki: EXHIBIT A-1 Lab Data Collected By: PO/Contract#: WQCP LAB AND OPS 4615000068 Enclosed are the analytical res1.1lts for sample(s} received by the laboratory on Tuesday, May 05, 2015. Results reported herein conform to the most current NELAC standards, where applicable, unless otherwise narrated in the body of the report. If you have any questions concerning this report, please feet free to contact me. Enclosures Project Manager: Melinda F. Kelley 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS Page 1of27 Thli; report shall not be reproduced, except In full, without the written conse11t of CALTEST ANALYTICAL LABORATORY 1885 Noftl1 Kelly Road •Napa, California 94558 (707) 258-4000 •Fax (707) 226-1001 •e-mail: info@caltestlabs.com DocuSign Envelope ID: 448F9D83·A76E·4EF1 -9A95-3F61 6E43347D NELAP/ORELAP Certification 4036 Lab Order: Project ID: Lab ID Q050123001 0 050123002 Q050123003 Q050123004 Q050123005 Q050123 NPDES QUARTERLY MAY 2015 Sample ID E000764-01 ASH A E000763··01 ASH A E000765-01 ASH A E000766·01 BARSCREEN RAGS E000767·01 GRIT h N \I 1 lt0~111 I N I 4' I I\ N \I. Y ~ r S SAMPLE SUMMARY Matrix Solid Solid Solid Solid SoUd 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, e>1cept In f\Jll, without the written consent of CALTEST ANALYTICAL LABORATORY 1885 North Kelly Road • Napa, California 94558 CA-ELAP Certification 1664 II REVISED II Date Collected 05104/2015 10:00 05/04/2015 10:00 05/0412015 10:00 05104/2015 09:33 05/04/2015 09:35 Date Received 05/05/2015 13:40 05/05/2015 13:40 05/05/201513:40 05/05/2015 13:40 05/05/2015 13:40 Page 2 of 27 (707) 258-4000 • Fax (707) 226-1001 • e-mail: info@caltestlabs.com DocuSign Envelope ID: 448F9083-A76E-4EF1 ·9A95·3F616E433470 NELAP/ORELAP Certification 4036 ~ Caltest CA-ELAP Ce1tification 1664 'lr•.\•rll•AI l \1/ll•l•o •il I.NV lltO N ML N I J\ L \NA l \' s I! S II REVISED II NARRATIVE Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 General Quallllers and Notes Caltest authorizes this report to be reproduced only in its entirety. Resulls are specific to the sample(s) as submitted and only to the parameter(s) reported. Calles! certifies that all test results for wastewater and hazardous waste analyses meet all applicable NELAC requirements; all microbiolo_gy and drinking water testi119 meet applicable ELAP requirements, unless stated otherwise. All analyses performed by EPA Methods or Standlard Melhods (SM) 20th Edition except where noted (SMOL=online edition). Calles! collecls samples in compliance with 40 CFR. EPA Methods, Cal. Title 22, and Standard Methods. Dilµtion Factors (OF) reported greater than '1' have been used to adjust the result. Reporting Limit (RL), and Method Detection Limit (MDL). All Solid, sludge, and/or biosollds data Is reported In Wet Weight. unless otherwise specified. Filtrations performed at Caltest for dissolved metals (excluding mercury) and/or pH analysis are not performed within the 15 minute holding time as speclfled by 40CFR 136.3 table II. Results Qualifiers: Report fields may contain codes and non-numeric data correlating to one or more of the following definitions: ND -Non Detect -Indicates analytical result has not been detected. RL-Reporting Limit Is the quanlltation limit al which the laboratory is able to detect an analyte. An analyte not detected at or above the RL Is reported as ND unless otherwise noted or qualified. For analyses pertaining to the Stale Implementation Plan of the Califomla Toxics Rule, !tie Gattest Reporting Limit (Rl) is equivalent lo the Minimum Level (ML). A standard is always run at or below the ML. Where Reporting limits are elevated due to dilution, the ML calibration criteria has been met. J -reflects estimated analy11cal result value detected below the Reporting Limit (RL) and above the Method Detection Limit (MDL). The 'J' flag Is equivalent to the DNQ Estimated Concentration flag. E -indicates an estimated anatyticat result value. B -Indicates the analyte has been detected in the blank associated with the sample. NC -means not able to be calculated for RPO or Spike Recoveries. SS -compound Is a Surrogate Spike used per laboratory quality assurance manual. NOTE: This document represents a complete Analytical Report for the samples referenced herein and should be retained as a permanent record thereof. Workorder Notes Report revised to reflect current MDLs for 60108 (Leachate) Qualifiers ancl Compound Notes 2 3 4 5 6 6/18/2015 16:12 Analyte(s) reported as 'ND' means not detected at or above the listed Method Detection Limits (MDL). The Reporting Limit (R.L.) was raJsed due to background Interference noted lh the sample. Sample diluted due to a high concentration of non-target ana(yte(s), resulting In Increased reporting llmlls. Initial sample amount reduced In prep In an effort to reduce matrix effects resulting in higher reporting limll(s). Sample diluted to bring concentration of target analyte(s)within the working range of the Instrument, resulting In Increased reporting limits. Sample prepared using methanolic extraction method resulting In higher reporting llmit(s). REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except in full, without the written consent of CAL TEST ANALYTICAL LABORATORY 1885 North Kelly Road • Napa, California 94558 (707) 258-4000 • Fax (707) 226-100 t •e-mail: info@caltestlabs.com Page 3 of 27 ATTACHMENT A DocuSign Envelope ID: 448F9D83·A76E-4EF1 ·9A95-3F616E43347D NELAP/ORELAP Certification 4036 CA-ELAP Certification 1664 f>NVl1tONM£NTAL ANAL YSJ1S II REVISED II ANALYTICAL RESULTS Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Solid results are reported on a wet wei9ht basis. Lab ID Q050123001 Date Collected 5/4/2015 10:00 Matrix Solld Sample ID E000764-01 ASH A Date Received 5/5/2015 13:40 Results are expressed as wet weight values Parameters Result Units R. L. MDL OF Prepared Balch Analyzed Batch Qual Mercury Analysis Pr&p Method: SW846 7471A Prep by: UK Analytical Method: SW846 7471A Analyzed by: LM Mercury J0.0009 mg/kg 0.020 0.00080 1 05/06/15 00:00 MPR 13565 05/07/15 13:12 MHG 4963 Metals Analysis by ICP Prep M&thod: SW846 30508 Prep by: UK Analytical Me1hod: SW846 60108 Analyzed by: LM Antimony 3.5 mg/kg 2.0 1.5 1 05/06/15 00:00 MPR 13563 05118/15 00:00 MIC4479 Arsenic 4.6 mg/kg 2.0 1.0 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC 4479 Barium 830 mg/kg 1.0 0.70 1 05/06/15 00:00 MPR 13563 05/11/15 00!00 MIC 4479 Beryllium ND mg/kg 5.0 0.15 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC 4479 2.1 Cadmium 0.36 mg/kg 0.20 0.050 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC 4479 Chromium 70mg/kg 1.0 0.20 1 05/06/15 00:00 MPR 13563 05111115 00;00 MIC4479 Cobalt 19 mg/kg 0.4 0.20 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Copper 1900 mg/kg 4.0 OAO 2 05/06/15 00:00 MPR 13563 05/14/15 00:00 MIC 4479 lead 55 mg/kg 1.0 0.50 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC 4479 Molybdenum 29 mg/l<g 2.0 1.0 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC 4479 Nickel 81 mg/kg 1.0 0.30 1 05/06/15 00:00 MPR 13563 05/11115 00:00 MIC4479 Selenium 7.9 mg/kg 2.0 0.80 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC 4479 Sliver 14 mg/kg 1.0 0.15 105/06/1500:00 MPR 13563 05/11/15 00:00 MIC 4479 Thallium 2.6 mg/kg 2.0 0.70 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Vanadium 77 mg/kg 0.40 0.20 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Zinc 2000 mg/kg 8.0 2.0 2 05/06/15 00;00 MPR 13563 05/14/15 00:00 MIC4479 Cyanide, Total Analysis Analytical Method: SW8469012A Analyzed by: SCP cyanide 0.69 mg/kg 0.080 0,080 05/09/15 17:05 WC010778 Percent Solids Analysls Analytlcal Method: SM20-2540 G Analyzed by: JDC Solids, Percent 100% 0.1 0.1 05/07/15 17:04 WGR5763 Lab ID Q050123002 Date Collected 5/4/2015 10:00 Matrix Solid Sample ID E000763-01 ASH A Date Received 5/5/2015 13:40 Results are expressed as wet weight values Parameters Result Units R. L. MDL OF Prepared Batch Analyzed Batch Qua! Mercury Analysis, STLC Prep Method: SW846 7470A Prep by: UK Analytlcal Method: SW846 7470A Analyzed by: LM Mercury ND ug/L 0.50 0.30 1 05/12/15 00:00 MPR 13577 05/13/15 13:51 MHG4966 Metals Analysis by ICP, STLC Prep Method: SW846 3010 Prep by: UK Analytlcal Method: SW846 60108 (Leachate) Analyzed by: LM B~rium 16 mg/L 0.15 0.070 1 05/11115 00:00 MPR 13573 05/14/15 00:00 MIC 4461 Copper 40 mg/l 0.1 0 0.030 1 05/11115 00:00 MPR 13573 05/14/15 00:00 MIC 4461 lead 0.19 mg/L 0.10 0.040 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Silver ND mg/l 0.030 0.0060 1 05/11/15 00:00 MPR 13573 05114/15 00:00 MIC 4481 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS Page 4 of 27 This report st>all not be reproduced, except In full, Without the written consent of CALTEST ANALYTICAL LABORATORY 1885 Nmth Kelly Road• Napa, California 94558 (707) 258-4000 • Fax (707) 226-1001 •e-mail: info@caltestlabs.com DocuSign Envelope ID: 448F9D83-A76E-4EF1-9A95-3F616E43347D NELAP/ORELAP Certification 4036 t,.. Caltest CA-ELAP Certification 1664 -~ '~"' n 1r.\1. • ''""'~1111•\ REVISED ANALYTICAL RESULTS lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Solid results are reported on a wet weight basis. lab ID Q050123003 Date Collected 5/4/2015 10:00 Matrix Solid Sample ID E000765-01 ASH A Date Received 5/5/201513:40 Results are expressed as wet weight values Parameters Result Units R. L. MDL DF Prepared Batch Analyzed Batch .Asbestos Analysis ·Solid Analytical Method: (per attached report) Asbestos Analysis -Solld Analysls performed by EMSLAnalytical, CA·ELAP Certification 1620. Refer to attached for original certificate of analysis. l ab ID Q050123004 Date Collected 5/4/2015 09:33 Matrix Solid Sample ID E000766-01 BARSCREEN RAGS Date Received 5/5/2015 13:40 Results are expressed as wet weight values Parameters Result Units R. L. MDL OF Prepared Batch Analyzed Batch Mercury Analysis, STLC, Low Level Prep Method: SW846 7470A Low Level Prep by: UK Analytical Method; SW846 7470A Low Level Analyzed by: LM Mercury ND ug/L 0.50 0.30 1 05/12/15 00:00 MPR 13577 05/13/1513:54 MHG 4968 Mercury Analysis Prep Method: SW846 7471A Prep by: UK Analytical Method: SW846 7471A Analyzed by: LM Mercury 0.032 mg/kg 0.020 0.00079 1 05/06/15 00:00 MPR 13565 05/07/1513:44 MHG 4963 Metals Analysis by ICP, STLC Prep Method: SW846 3010 Prep by: UK Analytical Method: SW846 60108 (Leachate) Analyzed by: LM Antimony NO mg/L 0.10 0.040 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Arsenic Q.34 mg/L 0.10 0.050 1 05/11 /15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Barium 0.45 mg/L 0.15 0.070 1 05/11 /15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Beryllium ND mg/L 0.010 0.0050 1 05/11/15 00:00 MPR 13573 05114/15 00:00 MIC4481 Cadmium ND mg/L 0.010 0.0040 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Chromium ND mg/L 0.10 0.050 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Cobalt ND mg/L 0.050 0.020 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Copper NDmg/l 0.10 0.030 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC4481 Lead ND mg/l 0.10 0.040 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Molybdenum ND mg/L 0.50 0.20 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Nickel J0.042 mg/L 0.05 0.020 1 05/11 /15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Selenium ND mg/l 0.50 0.20 1 05/11 /15 00:00 MPR 13573 05/14/15 00;00 MIC 4481 Silver ND mg/L 0.030 0.0060 1 05/11 /15 00:00 MPR 13573 05/14/15 00:00 MIC4481 Thallium ND mg/L 0.10 0.040 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Vanadium 0.034 mg/L 0.02 0.0050 105/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Zinc 3.5 mg/L 0.20 0.10 1 05/11/15 00:00 MPR 13573 05/14/15 oo:oo MIC 4481 Metals Analysls by ICP Prep Method: SW8463050B Prep by: UK Analytical Method: SW8466010B Analyzed by: LM Antimony ND mg/kg 2.0 1.5 1 05/06/15 00:00 MPR 13563 05/14/15 00:00 MIC 4479 Arsenic ND rng/kg 2.0 1.0 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC 4479 Barf urn 6.6mg/kg 1.0 0.71 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC 4479 Beryllium ND mg/kg 0.20 0.15 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Cadmium J0.06 mg/kg 0.20 0.050 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Chromium J0.9 mg/kg 1.0 0.20 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Cobalt ND mg/kg 0.4 0.20 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Copper 14 mg/kg 2.0 0.20 1 05/06/15 00:00 MPR 13563 05114/15 00:00 MIC 4479 Qua I Qua I 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS Page 5 of 27 This repor1 shall not be reproduced. e~cept In full, without the written consent of CAL TEST ANALYTICAL LABORATORY l 885 North Kelly Road • Napa, California 94558 (707) 258-4000 •Fax (707) 226-1001 •e-mail: iofo@caltestlabs.com DocuSlgn Envelope ID: 448F9083-A76E-4EF1-9A95-3F616E433470 NELAP/ORELAP Certification 4036 ~ Caltest CA-ELAP Certification 1664 " 1••11\ l'lt'~J L\l,,.111'-""'' f'NVJUHNMf Wl'\J 'NALY~l!., llREVlSED ll ANALYTICAL RESULTS Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY2015 Solid results are reported on a wet weight basis. Lab ID Q050123004 Date Collected 5/4/2015 09:33 Matrix Solid Sample ID E000766-01 BARSCREEN RAGS Date Received 5/5/2015 13:40 Results are expressed as wet weight values Parameters Result Units R. l. MDL OF Prepared Batch Analyzed Batch Qua I Lead ND mg/kg 1.0 0.50 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Molybdenum ND mg/kg 2.0 1.0 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Nickel J0.93 mg/kg 1.0 0.30 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Selenium J1.5 mg/kg 2.0 0.81 1 05/06/15 00:00 MPR 13563 05111/15 00:00 MIC 4479 Silver J0.2 mg/kg 1.0 0.15 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC 4479 Thallium ND mg/kg 2.0 0.71 1 05/06/15 00:00 MPR 13563 05111/15 00:00 MIC 4479 Vanadium 0.87 Ing/kg 0.40 0.20 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC 4479 Zinc 60mg/kg 4.0 1.0 1 05/06/15 00:00 MPR 13563 05/11 /15 00:00 MIC 4479 Asbestos Analysis • Solld Analytical Method: (per attached report) Asbestos Analysis • Solid Analysis performed by EMSL Analytlcal, CA-ELAP Certification 1620. Refer to attached for orlginal certificate of analysis. Total Extractable Petroleum Hydrocarbon Prep Method: SW846 3541 Prep by: MDT Analytical Method: SW846 8015(MOD) Analyzed by: MDT Diesel Fuel ND mg/kg 120 75 10 05/12/15 00:00 SPR6946 05127115 19:31 SFL 1703 5 TPH quan1itated as Diesel Fuel. 2830 mg/kg 120 75 10 05/12/15 00:00 SPR6946 05/27 /15 19:31 SFL 1703 o-Terphenyl (SS) 108 % 40-139 10 05/12/15 00:00 SPR6946 05/27 f15 19:31 SFL 1703 Semlvolatllo Organic Analysis Prep Method: SW846 3540 Prep by: MDT Analytlcal Method: SW8468270C Analyzed by: MDT Acenaphthene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 3.4 Acenaphthylene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01:34 SMS 3755 Anlllne ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 01:34 SMS 3755 Anthracene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 Benzldlne ND mg/kg 10 7.5 5 05107/15 00:00 SPR6939 06/05/15 01:34 SMS 3755 Benzo(a)anthracene ND mg/kg 5.0 1.5 5 05107/15 00:00 SPR6939 06/05/15 01:34 SMS 3755 Benzo(a)pyrene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 Benzo(b )fluoranthene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 Benzo(g,h,i)perylene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 Benzo(k)fluoranthene ND mg/kg 5.0 1.5 5 05/07 /15 00:00 SPR6939 06/05/15 01:34 SMS 3755 Benzolc acid ND mg/k.g 30 30 5 05101/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 Benzyl alcohol ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 01:34 SMS 3755 Benzyl butyl phthalate ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 01:34 SMS 3755 4-Bromophenyl phenyl ether ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 01:34 SMS 3755 Carbazole ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 01:34 SMS 3755 4-Chloroanlline ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01:34 SMS 3755 bls(2-Chloroethoxy) ND mg/kg 5.0 3.0 5 05107115 00:00 SPR6939 06/05/15 01:34 SMS 3755 methane bls(2-Chloroethyl) ether ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS3755 bls(2-Chloroisopropyl) ether ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01~34 SMS 3755 4-Chloro-3-methylphenol ND mg/kg 5.0 4.5 5 05107/15 00:00 SPR6939 06/05/15 01':34 SMS 3755 2-Chloronaphthalene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/1501:34 SMS3755 2•Chlorophenol ND mg/kg 5.0 4.5 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 4-Chlorophenyl phenyl ether ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 6/1812015 16:12 REPORT OF LABORATORY ANALYSIS Page6 of27 This report shall not be reproduced, except In full, without the written consent or CAL TEST ANALYTICAL LABORATORY ~· ... ~~. 1885 North Kelly Road• Napa, California 94558 fne1ac., ft (707) 258-4000 • Fax (707) 226-100 I • e-matl: info@caltestlabs.com ~ . ., DoouSign Envelope ID: 448F9083·A76E-4EF1·9A95-.3F616E433470 NELAP/ORELAP Certification 4036 CA-ELAP Certification 1664 El'fV1RONMENTAL ANALYSES REVISED ANALYTICAL RESULTS Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Solid results are reported on a wet weight basis. Lab ID Q050123004 Date Collected 5/412015 09:33 Matrix Solid Sample ID E000766--01 BARSCREEN RAGS Date Received 5/5/2015 13:40 Results are expressed as wet weight values Parameters Result Units R. L. MDL OF Prepared Batch Analyzed Batch Qual Chrysene ND mg/kg 5.0 1.5 5 05/07115 oo:oo SPR6939 06/05115 01:34 SMS 3755 Total Cresci J9.7 mg/kg 10 9.0 5 05107115 00:00 SPR 6939 06105115 01 :34 SMS 3755 Dlbenzo(a,h)anlhracene ND mg/kg 5.0 1.5 5 05107115 oo:oo SPR 6939 06105/15 01 :34 SMS 3755 Dlbenzofuran ND mg/kg 5.0 3.0 5 05/07115 00:00 SPR 6939 06/05115 01 :34 SMS 3755 1,2-Dichlorobenzene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01:34 SMS 3755 1,3-Dlchlorobenzene ND mg/kg 5.0 3.0 5 05107/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 1,4-Dlchlorobenzene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS3755 3,3'-Dichloro.benzldine ND mg/kg 5.0 4.5 5 05/07/15 00:00 SPR6939 06/05115 01:34 SMS 3755 2,4-Dichlorophenol ND mg/kg 5,0 4.5 5 05107115 00:00 SPR6939 06/05/15 01 :34 SMS3755 Dlethylphthalate ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06105/15 01 :34 SMS 3755 2.4-Dlmethylphenol ND mg/kg 5.0 4.5 5 05/07/15 00:00 SPR6939 06105/15 01:34 SMS 3755 Dimethylphthalate ND mg/kg 5.0 3.0 5 05107115 00:00 SPR6939 06105115 01:34 SMS 3755 Di-n-butylphthalate ND mg/kg 5.0 1.5 5 05107/15 00:00 SPR 6939 06105/15 01:34 SMS 3755 2,4·Dlnitrophenol ND mg/kg 5.0 3.0 5 05107/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 2,4-Dinitrotoluene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 2,6-Dinitrotoluene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05115 01:34 SMS 3755 Di-n-ootylphthalate ND mg/kg 5.0 1.5 5 05107/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 1,2-Dlphenylhydraz.ine I Azobenzene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 bls(2-EthylheJ<yl) phthaiate ND mglk,g 5.0 4.5 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS3755 Fluoranthene. ND mglk,g 5.0 1.5 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS3755 Fluorene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS3755 Hexachlorobenzene ND mg/kg 5.0 1.5 5 05/07115 00:00 SPR6939 06105/15 01:34 SMS3755 Hexachlorobutadlene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 Hexachlorocyclo pentadfene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 Hexachloroethane ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 Jndeno(1,2,3·od)pyrene ND mg/kg 5.0 1.5 5 05107/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 lsophorone ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS3755 2-Methyl-4,6-dinltrophenol ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05115 01:34 SMS 3755 2-Methylnaphthalene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01:34 SMS 3755 2-Methylphenol (o-Cresol) ND mg/kg 5.0 4.5 5 05107/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 3 & 4-Methylphenol(m&p 9.7mg/kg 5.0 4.5 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 Cresci) Naphthalene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01:34 SMS 3755 2-Nitroanlline ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05115 01 :34 SMS3755 3-Nitroanlline ND mg/kg 5.0 3.0 5 05/07 /15 00:00 SPR6939 06105/15 01 :34 SMS3755 4-Nitroanlline ND mg/kg 5.0 1.5 5 05107/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 Nitrobenzene ND mg/kg 5.0 3.0 5 05107/15 00:00 SPR6939 06105/15 01:34 SMS 3755 2-Nitrophenol ND mg/kg 5.0 4.5 5 05107/15 00:00 SPR6939 06/05115 01 :34 SMS 3755 4-Nitrophenol ND mg/kg 5.0 3.0 5 05/07115 00:00 SPR6939 06105/15 01 :34 SMS 3755 N-Nitrosodimethylamlne ND mg/kg 5.0 3.0 5 05107/15 00:00 SPR 6939 06/05115 01 :34 SMS3755 N-Nltroso-dl-n-propylamine ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 N-Nitrosodiphenylamine ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06105/15 01 :34 SMS 3755 Pentachlorophenol ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06105/15 01 :34 SMS 3755 Phenanthrene ND mg/kg 5.0 3.0 5 05/07115 00:00 SPR 6939 06105115 01 :34 SMS 3755 6/18/201516:12 REPORT OF LABORATORY ANALYSIS Page 7 of 27 This report shall not be teprodvced, except In full, without the written consent of CAL TEST ANALYTICAL LABORATORY ,9'"1\f.('~ 1885 North Kelly Road • Napa, California 94558 a ~~. r ~ neac~ (707) 258-4000 •Fax (707) 226-100 l •e-mail: info@caltcstlabs.com DocuSign Envelope ID: 448F9D83·A76E·4EF1 ·9A95·3F616E433470 NELAP/ORELAP Certification 4036 CA-ELAP Certification 1664 REVISED ANALYTICAL RESULTS Lab Order: 0050123 ProjectlD: NPDES QUARTERLY MAY 2015 Solid results are reported on a wet weight basis. Lab ID Q050123004 Date Collected 5/4/2015 09:33 Matrix Sofld Sample ID E000766-01 BARSCREEN RAGS Date Received 5/5/2015 13:40 Results are expressed as wet weight values Parameters Result Units R. L. MDL OF Prepared Batch Analyzed Batch Qua I Phenol ND mg/kg 5.0 3.0 5 05107/15 00:00 SPR 6939 06/05/15 01:34 SMS 3755 Pyrene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 Pyridine ND mglkg 5,0 3.0 5 05/07/15 00:00 SPR 6939 06/05115 01:34 SMS 3755 1,2,4-Trichlorobenzene ND mg/kg 5.0 3.0 5 05107/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 2,4,5-Trichlorophenol ND mg/kg 5.0 4.5 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 2,4,6-Trlchlorophenol ND mglkg 5.0 4.5 5 05/07/15 00:00 SPR 6939 06/05115 01 :34 SMS 3755 2-Fluoroblphenyl (SS) 81 % 10-149 5 05/07115 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 2-Fluorophenol (SS) 50% 47-105 5 05/07/15 00:00 SPR 6939 06105115 01:34 SMS 3755 Nitrobenzene·d5 (SS) 70% 57-108 5 06/07115 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 Phenol-d6 (SS) 75% 58-97 5 05/07/15 00:00 SPR 6939 06/05/15 01 :34 SMS 3755 Terphenyl--014 (SS) 82% 32-120 5 05/07/15 00:00 SPR6939 06/05/15 01:34 SMS3755 2,4,6-Tribromophenol (SS) 130 % 26-143 5 05/07/15 00:00 SPR6939 06/05/15 01 :34 SMS 3755 Volatile Organic Analysis Analytical Method: SW846 50308/82608 Analyzed by: AN Benzene ND mg/kg 0.025 0.010 05107/1 5 18:57 VMS 3245 4 Bromobenzene ND mg/kg 0.025 0.010 05/07/1518:57 VMS 3245 Bromochloromethane ND mg/kg 0'.025 0.015 1 05/07/15 18:57 VMS 3245 Bromodlchloromethane ND mg/kg 0.025 0.010 1 05/07/15 18:57 VMS 3245 Bromoform ND mg/kg 0.025 0.0050 1 0510711518:57 VMS 3245 Bromomethane (Methyl ND mg/kg 0.10 0.020 1 05/07115 18:57 VMS 3245 Bromide) n-Butylbenzene ND mg/kg 0.025 0.010 05/07/15 18:57 VMS 3245 sec-Butylbenzene ND mg/kg 0.025 0.010 05107/15 18:57 VMS 3245 tert-Butyibenzene ND mg/kg 0.025 0.010 05107115 18:57 VMS 3245 Carbon tetrachloride ND mg/kg 0.025 0.010 05107/1518:57 VMS 3245 Chlorobenzene ND mglkg 0.025 0.010 05/07/15 18;57 VMS 3245 Chloroethane (Ethyl Chloride) ND mg/kg 0.10 O.Q15 05/07/1518:57 VMS 3245 Chloroform ND mg/kg 0.025 0.010 05/07 /15 18:57 VMS 3.245 Chloromethane(Methyl ND mg/kg 0.10 0.010 1 05/07115 18:57 VMS 3245 Chloride) 2-Chlorotoluene ND mg/kg 0.025 0.010 05/07/15 18:57 VMS 3245 4-Chlorotoluene ND mg/kg 0.025 0.010 05/07/15 18:57 VMS 3245 Dlbromochloromelhane ND mg/kg 0.025 0.0050 05/07/1518:57 VMS 3245 1,2-Dibromo-3· chloropropane ND mg/kg 0.025 0.010 05/07/15 18:57 VMS 3245 1,2-Dibromoethane (EOB) ND mg/kg 0.025 0.0050 05107/15 18:57 VMS 3245 Oibromomethane ND mg/kg 0.025 0.010 05/07115 18:57 VMS 3245 1,2-Dichlorobenzene ND mg/kg 0.025 0.010 05/07115 18:57 VMS 3245 1,3-Dichlorobenzene ND mgfkg 0.025 0.010 05/07/1518:57 VMS 3245 1,4-Dlchlorobenzene ND mg/kg 0.025 0.0050 05107/1518:57 VMS 3245 Dlchlorodlfluoromethane (F-ND mg/kg 0,050 0.010 05/07/1 5 18:57 VMS 3245 12) 1, 1-Dlchloroethane ND mg/kg 0.025 0.010 05/07/1518:57 VMS 3245 1,2-Dichloroethane (EDC) ND mg/kg 0.025 0.0050 1 05/07115 18:57 VMS 3245 1, 1-Dtchtoroethene ND mg/kg 0.025 0.010 1 05/07 /15 18:57 VMS 3245 cis-1,2-Dlchloroethene ND mg/kg 0.025 0.010 1 05/07/15 18:57 VMS 3245 6/18/2015 16:1 2 REPORT OF LABORATORY ANALYSIS Page 8 of 27 This report shall not be reproduced, except in run, without the written consent of CALTEST ANALYTICAL LABORATORY ~!""';(~ 1885 North Kelly Road • Napa, California 94558 " ~ 0 tnetac~ (707) 258-4000 •Fax (707) 226-100 l • e-mail: lnfo@caJtestlabs.com DocuStgn Envelope ID: 448F9083·A76E-4EF1-9A95-3F616E43347D NELAP/ORELAP Certifi cation 4036 ~ Caltest ~ ~ .. ~ll1lr•1 1 lu•IH~l"l<I I NV Jl\l!Nl'ltl N"I \t. ANAl.\:.ilS CA-ELAP Certification 1664 II REVISED II ANALYTICAL RESULTS Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Solid results are reported on a wet weight basis. Lab ID Q050123004 Date Collected 5/412015 09:33 Matrix Solid Sample ID E000766-01 BARSCREEN RAGS Date Received 5/5/2015 13:40 Results are expressed as wet weight values Parameters trans-1 ,2-Dlchloroethene 1,2-Dfch!Oropropane 1,3-Dlchloropropane 2,2-Dlchloropropane 1, 1 ·Dlchloropropene Dlchlorotrltluoroethane (F123) Elhylbenzene Hexachlorobutadiene 4-lsopropyltoluene Methyl tert-butyl ether (MTBE) Methylene chloride Naphthalene n-Propylbenzene Styrene 1, 1, 1,2· Tetrachloroethane 1.1,2,2-Tetrachloroethane Tetrachloroethene (PCE) Toluene 1,2,3-Trichlorobenzene 1,2,4-Trichlorobenzene 1, 1,2· Trichloroethane 1, 1, 1-Trlchloroethane (TCA) Trichloroethane (TCE) Tr1chlorofluoromethane (F- 11) 1,2,3-Triohloropropane Trichlorotritluorethane (F113) 1,2,4-Trimethylbenzene 1,3,5-Trimethylbenzene Vinyl chloride Xylenes, total 4-Bromotluorobenzene (SS) Dibromotluoromethane (SS) 1,2-Dichloroethane-d4 (SS) Toluene-d8 (SS) Cy2mlde. Total Analysl$ Cyanide 6/18/2015 16:12 Result Units R. L. ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mgfkg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mgfkg 0.025 ND mg/kg 0.15 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.050 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 ND mg/kg 0.025 92% 74-130 111 % 69-129 116% 61-133 103% 71-135 MDL 0.010 0.010 0.010 0.010 0.010 0.0050 0.010 0.010 0.010 0.010 0,0050 0.010 0.010 0.010 0.010 0.010 0.010 0.0050 0.010 0.010 0.0050 0.010 0.010 0.020 0.010 0.010 0.010 0.010 0.015 0.0050 OF Prepared Batch 1' 1 1 Ani11ytical Method: SW8469012A 0.094 1119/kg 0.080 0.080 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except In full, without the Written consent of CAL TEST ANALYTICAL LABORATORY 1885 No1th Kelly Road• Napa, California 94558 (707) 258-4000 • Fax (707) 226-100 l • e-mail: info@caltestlabs.com Analyzed Batch Qua I 05107/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/1518:57 VMS 3245 05/07/1518:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07 /15 18:57 VMS 3245 05/07/15 18:57 VMS3245 05/07/15 18:57 VMS 3245 05/07115 18:57 VMS 3245 05107 /15 18:57 VMS 3245 05/07/1518:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05107/1518:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07 /15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05107/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07115 18:57 VMS 3245 05/07/15 18;57 VMS 3245 05107/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS 3245 05/07/15 18:57 VMS3245 05/07/15 18:57 VMS 3245 Analyzed by: BCP 05/09/15 17:05 wco 10778 Page 9 of 27 DocuSign Envelope ID: 448F9083·A76E·4EF1 ·9A95·3F616E43347D NELAP/ORELAP Certification 4036 ,-. \ Caltest CA-ELAP Certification 1664 ' ~ \~,\l'\fl( \I •.\tt•P'R\lfttt' ANALYTICAL RE SUL TS Lab Order: Q050123 Project ID: NPDES QUARTERLY MAY 2015 Solid results are reported on a wet weight basis. Lab ID Q050123005 Date Collected 5/4/2015 09:35 Matrix Solid Sample lo E000767 ·01 GRIT Date Received 5/5/2015 13:40 Results are expressed as wet weight values Parameters Result Units R.L. MDL OF Prepared Batch Analyzed Batch Qua I Mercury Analysis, STLC, Low Level Prep Method: SW846 7470ALow Level Prep by: UK Analytical Method: SW846 7470Alow Level Analyzed by: LM Mercury ND ug/L 0.50 0.30 1 05/12/15 00:00 MPR 13577 05/13/15 13:56 MHG4968 Mercury Analysis Prep Method: SW846 7471A Prep by: UK Analytlca.I Method: SW846 7471A Analyzed by: LM Mercury 0.099 mg/kg 0.020 0.00079 1 05/06/15 00:00 MPR 13565 05/07 /15 13:52 MHG4963 Metals Analysis by ICP, STLC Prep Method: SW8463010 Prep by: UK Analytical Method: SW846 60108 (Leachate) Analyzed by: LM Antimony ND mg/L 0.10 0.040 105/11/1500:00 MPR 13573 05/14/15 00:00 MIC 4481 Arsenic J0.055 mg/L 0.10 0.050 1 05/11 /15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Barium 1.4mgll 0.15 0,070 1 05/11 /15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Beryllium ND mg/L 0.010 0.0050 1 05/11 /15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Cadmium J0.0043 mg/L 0.010 0.0040 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Chromium 0.11 mg/L 0.10 0.050 1 05/11 /15 00:00 MPR 13573 05/14/15 00:00 MIC4481 Cobalt ND mg/L 0.050 0,020 105/11/1500:00 MPR 13573 05/14/15 00:00 MIC 4481 Copper ND mg/L 0.10 0.030 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Lead ND mg/L 0.10 0.040 1 05/11115 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Molybdenum ND mg/L 0.50 0.20 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Nickel 0.13 mg/L 0.05 0.020 1 05/11115 00:00 MPR 13573 05/14/15 00:00 MIC4481 Selenium ND mg/L 0.50 0.20 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Sliver ND mg/L 0.030 0.0060 1 05/11/15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Thallium ND mg/L 0.10 0.040 1 05/1'1 /15 00:00 MPR 13573 05/14/15 00:00 MIC4481 Vanadium 0.066 mg/L 0.02 0.0050 1 05/11 /15 00:00 MPR 13573 05114/15 00:00 MIC 4481 Zinc 2.9 mgJL 0.20 0.10 1 05/11 /15 00:00 MPR 13573 05/14/15 00:00 MIC 4481 Metals Analysis by ICP Prep Method: SW846 30508 Prep by: UK Analytical Method: SW846 60108 Analyzed by: LM Antimony ND mg/kg 2.0 1.5 1 05/06/15 00:00 MPR 13563 05/14/15 00:00 MIC4479 Arsenic ND mg/kg 2.0 1.0 1 05/06/15 00:00 MPR 13563 05/11115 00:00 MIC4479 Barium 20 mg/kg 1.0 0.70 1 05/06/15 00:00 MPR 13583 05/11/15 00:00 MIC4479 Beryllium ND mg/kg 0.20 0.15 1 05/06/15 00:00 MPR 13563 05/11 /15 00:00 MIC 4479 Cadmium J0.09 mg/kg 0.20 0.050 1 05/06/15 00:00 MPR 13563 05/11 /15 00:00 MIC4479 Chromium 3.0 mg/kg 1.0 0.20 1 05/06/15 00:00 MPR 13563 05/11 /15 00:00 MIC 4479 Cobalt 0.6 mg/kg 0.4 0.20 1 05/06115 00:00 MPR 13563 05/11 /15 00:00 MIC4479 Copper 40 mg/kg 2.0 0.20 1 05/06115 00:00 MPR 13563 05/14/15 00:00 MiC4479 Lead 6.4 mg/kg 1.0 0.50 1 05/06/15 00:00 MPR 13563 05/11 /15 00:00 MIC 4479 Molybdenum ND mg/kg 2.0 1.0 1 05/06/15 oo:oo MPR 13563 05/11 /15 00:00 MIC4479 Nickel 3.4 mg/kg 1.0 0.30 1 05/06/15 00:00 MPR 13563 05/11 /15 00.:00 MIC4479 Selenium ND mg/kg 2.0 0.80 1 05/06/15 00;00 MPR 13563 05/11 /15 00:00 MIC4479 Sliver J0.5 mg/kg 1.0 0.15 1 05/06/15 00;00 MPR 13563 05/11/15 00:00 MIC 4479 Thallium ND mg/kg 2,0 0.70 1 05/06/15 00;00 MPR 13563 05111/15 00:00 MIC 4479 Vanadium 2.6 mg/kg 0.40 0.20 1 05/06/15 00:00 MPR 13563 05/11/15 oo:oo MIC4479 Zinc 96 mg/kg 4.0 1.0 1 05/06/15 00:00 MPR 13563 05/11/15 00:00 MIC4479 Asbestos Analysis • Solid Analytical Method: (per attached report) Asbestos Analysis • Solid 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS Page 10 of 27 Thls report shall not be reproduced, except In full, without the written consent Of CALTEST ANALYTICAL LABORATORY 1885 North Kelly Road •Napa, California 94558 (707) 258-4000 •Fax (707) 226-lOOI •e-mail: info@caltestlabs.com OoouSi~n Envelope ID: 448F9D83-A76E-4EF1-9A95-3F616E433470 NELAP/ORELAP Certification 4036 ~ Caltest -~ '""' ,.,,..,\1 1.\11lllt.\10ll\ CA-ELAP Certification 1664 liREVISEDjj ANALYTICAL RESULTS Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Solid results are reported on a wet weight basis. Lab ID Q050123005 Date Collected 5/4/2015 09:35 Matrix Solid Sample ID E000767 ·01 GRIT Date Received 5/5/2015 13:40 Results are expressed as wet weight values Parameters Result Units R. L. MOL DF Prepared Batch Analyzed Balch Qua I Analysis performed by EMSL Analytical, CA-ELAP Certificatlon 1620. Refer to attached for original certificate of analysis. Total Extractable Petroleum Hydrocarbol) Prep Method: SW846 3541 Prep by: MDT Analytical Method: SW846 8015(MOD) Analyzed by: MDT Diesel Fuel NO mg/kg 60 38 5 05/12/15 00:00 SPR 6946 05/27/15 20:17 SFL 1703 5 TPH quantitated as Diesel 1720 mg/kg 60 38 5 05/12/15 00:00 SPR6946 05/27/15 20:17 SFL 1703 Fuel o-Terphenyl (SS) 102 % 40-139 5 05/12/15 00:00 SPR6946 05/27/15 20; 17 SFL 1703 Semlvolatlle Organic Analysis Prep Method: SW846 3540 Prep by: MDT Analytical Method: SW846 8270C Analyzed by: MDT Aoenaphthene NO mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 4.3 Acenaphthylene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/ 15 02: 12 SMS 3755 Aniline ND mg/kg 5.0 3.0 5 05/07/15 oo:oo SPR6939 06/05/15 02:12 SMS 3755 Anthracene ND mg/Kg 5.0 1.5 5 05/07/15 OO:OO SPR6939 06/05/15 02:12 SMS 3755 Benzidine ND mg/kg 10 7.5 5 05/07 /15 00:00 SPR6939 06/05/15 02:12 SMS 3755 Benzo(a)anlhracene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 Benzo(a)pyrene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 Benzo(b)fluoranthene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 Benzo(g,h,i)perylene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR 6939 06/05/15 02: 12 SMS 3755 Benzo(k)fluoranthene ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 Benzo!c acid ND mg/kg 30 30 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 Benzyl alcohol ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS3755 Benzyl butyl phlhalate ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 4-Bromophenyl phenyl ether ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 Carbazole ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 4-Chloroanlline ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02: 12 SMS 3755 bls(2-Chloroethoi<y) methane ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06105/15 02:12 SMS 3755 bis(2·Chloroethyl) elher ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 bls(2-Chloroisopropyl) ether ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 4-Chloro-3-methylphenol ND mg/kg 5.0 4.5 5 05/07/15 00:00 SPR6939 06/05/15 02: 12 SMS 3755 2-Chloronaphthalene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 2-Chlorophenol ND mg/kg 5.0 4.5 5 05/07 /15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 4-Chlorophenyl phenyl ether ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 Chrysene ND rng/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 Total Cresol ND mg/kg 10 9.0 5 05/07/15 00:00 SPR 6939 06/05/15 02: 12 SMS 3755 Dibenzo(a,h)anthracene ND mg/kg 5.0 1.5 5 05/07/15 oo:oo SPR 6939 06/05/15 02: 12 SMS 3755 Oibenzofuran ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 1,2-Dichlorobenzene ND mg/kg 5.0 3.0 5 05/07/15 OO;OO SPR6939 06/05/15 02:12 SMS 3755 1.3·Dichlorobenzene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 1.4-Dichlorobenzene ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02: 12 SMS 3755 3,3'·Dlchlorobenzidine ND mg/kg 5.0 4,5 5 05/07/15 00;00 SPR6939 06/05/15 02:12 SMS 3755 2.4-Diohlorophenol ND mg/kg 5.0 4.5 5 05/07/15 00:00 SPR 6939 06105/15 02:12 SMS 3755 Diethylphthalale ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 6/18/201516:12 REPORT OF LABORATORY ANALYSIS Page 11of27 Thfs report stiall not be reproduced, except In full, without the written consent of CALTEST ANALYTICAL LABORATORY ~'"""11'1'~ 1885North Kelly Road • Napa, California 94558 a ;r . r \ neac~ (707) 258-4000 • Fax (707) 226-l 001 • e-mail: info@caltestlabs.com DocuSign Envelope ID: 448F9D83-A76E·4EF1 ·9A95-3F616E43347D NELAP/ORELAP Certification 4036 .. ".L·. . Cal test CA-ELAP Certification 1664 ~· ,'\"\•,l\tll.At J,•tl(t~,J\1'11\\ t N V Ill o i'i' ,\I C NT tH ,\ N A l Y S r ~ llREVISEDjl ANALYTICAL RESULTS Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Solld results are reported on a wet weight basts. Lab ID Q050123005 Date Collected 5/4/2015 09:35 Matrix Solid Sample ID E000767-01 GRIT Date Received 5/5/201513:40 Results are expressed as wet weight values Parameters 2,4-0imethylphenol Dimethylphthalate Di-n-butylphthalate 2 ,4-0in!trophAnol 2,4-0inltrotoluene 2,6-Dlnltrotoluene 01-n-octylphthalale 1,2-Dlphenylhydrazine I Azobenzene bis(2-Elhylhexyl) phthalate Fluoranthene Fluorene Hexachlorobenzene Hexachlorobutadiene Hexachlorocyclo pentadlene Hexachloroethane 1ndeno(1,2,3-cd)pyrene lsophorone 2-Methyl-4,6-dinltrophenol 2-Methylnaphthalene 2-Methylphenol (o·Cresol} 3 & 4-Methylphenol(m&p Cresol) Naphthalene 2-Nltroaniline 3-Nltroanillne 4-Nltroanlllne Nltrobenzene 2-Nltrophenol 4-Nllropheno! N-Nitrosodimethylamine N-Nitroso-dl-n-propytamine N-Nitrosodlphenylamlne Pentachlorophenol Phenanthrene Phenol Pyrene Pyridine 1,2,4-T richlorobenzene 2.4,5-Trlchlorophenol 2,4,6-Trlchlorophenol 2-Fluorobiphenyl {SS) 2-Fluorophenol (SS) Nltrobenzene-d5 (SS) Phenol-d6 (SS) Terphenyl-d14 (SS) 6/18/201516:12 ..,.~~~,, lnelac\ Result Units R. L. MDL OF Prepared Batch Analyzed Batch Qua I ND mg/kg 5.0 4.5 5 05107115 00:00 SPR 6939 06/05115 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07115 00:00 SPR 6939 06105/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05115 02: 12 SMS 3755 ND mg/kg 5.0 1.5 5 05/07115 00:00 SPR 6939 06105115 02:12 SMS3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 4.5 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 1.5 5 05/07 /15 00:00 SPR6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07 /15 00:00 SPR6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 ND mg/kg 5,0 3.0 5 05/07/15 OO;OO SPR 6939 06105/15 02:12 SMS 3755 ND mg/kg 5,0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05115 02:12 SMS 3755 ND mg/kg 5.0 1.5 5 05/07/15 00:00 SPR6939 06/05/15 02: 12 SMS 3755 ND mg/kg 5,0 3.0 5 05/07/15 00:00 SPR693g 06105/15 02:12 SMS3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 4.5 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 7.7 mg/kg 5.0 4.5 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07 /15 00:00 SPR6939 06105/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05107/15 00:00 SPR6939 06/05/15 02:12 SMS3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 1',5 5 05/07/15 00:00 SPR 6939 06/05115 02:12 SMS3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 4.5 5 05/07/15 00:00 SPR 6939 06/05/15 02: 12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07/15 oo:oo SPR6939 06105/15 02: 12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06105/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/1 5 02:12 SMS3755 ND mg/k.g 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06105/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05107/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR 6939 06105/15 02: 12 SMS 3755 J2.0 mg/kg 5.0 1.5 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 NDmg/J<g 5.0 3.0 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 3.0 5 05/07/15 00:00 SPR6S39 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 4.5 5 05/07/15 00:00 SPR 6939 06/05/15 02:12 SMS 3755 ND mg/kg 5.0 4.5 5 05/07 /15 00:00 SPR6939 06/05/15 02:12 SMS 3755 75% 10-149 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 54 o/o 47-105 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 61 o/o 57-108 5 05/07/15 00:00 SPR6939 06/05/15 02:12 SMS 3755 65 o/o 58-97 5 05/07 /15 00:00 SPR6939 06/05/15 02:12 SMS 3755 94% 32-120 5 05/07/15 00:00 SPR6939 06/05/15 02: 12 SMS 3755 REPORT OF LABORATORY ANALYSIS Page 12 of 27 This report shall not be reproduced, exoept In full, without the written consent of CALTEST ANALYTICAL LABORATORY 1885 North Kelly Road • Napa, California 94558 (707) 258-4000 •Fax (707) 226-1001 • e-mail: info@caltestlabs.com OocuSign Envelope ID: 448F9D83-A76E·4EF1-9A95-3F616E43347D NELAP/ORELAP Certification 4036 CA-ELAP Certification 1664 II REVISED ll ANALYTICAL RESULTS Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Solid results are reported on a wet weight basis. lab ID Q050123005 Date Collected 5/412015 09:35 Matrix Solid Sample ID E000767..01 GRIT Date Received 5/5/2015 13:40 Results are expressed as wet weight values Parameters Result Units RL. MDL OF Prepared Batch Analyzed Batch Qua I 2.4,6·Tribromophenol (SS) Volatlle Organic Analysis Benzene Bromobenzene Bromochloromethane Bromodichloromethane Bromoform Bromomethane (Methyl Bromide) n-Butylbenzene sec-Butylbenzene tert-Butylbenzene Carbon tetrachloride Chlorobenzene Chloroethane (E1hyl Chloride) Chloroform Chloromethane(Methyl Chloride) 2-Chlorotoluene 4-Chlorotoluene Dlbromochloromethane 1,2-Dlbromo-3- chloropropane 1,2-Dibromoethane (EDB) Dibromomethane 1,2-Dlchlorobenzene 1.3-Dlchlorobenzene 1,4-Dlchlorobenzene Dichlorodlfluoromethana (F- 12) 1, 1-Dlchloroethane 1,2-0lchloroathane (EOC) 1, 1 ·Dichloroethene cls-1,2-Dichloroethene trans-1,2-Dichloroelhene 1,2-Dlchloropropane 1,3-Dichloropropane 2,2-Dichloropropane 1, 1 ·Dlchloropropene Dichlorotrinuoroethane (F123) Ethylbenzene Hexachlorobutadlene 4-lsopropyltotuene Methyl tert-butyl ether (MTBE) 6/18/201516:12 122% 26-143 5 05/07/15 00:00 SPR 6939 Analytical Method: SW846 5030B/8260B ND mg/kg 0.025 0.010 ND mg/kg 0.025 0.010 ND mg/kg 0.025 0.015 ND mg/kg 0.025 0.010 ND mg/kg 0.025 0.0050 ND mglkg 0.10 0.020 ND mg/kg 0.025 0.010 ND mglkg 0.025 0.010 ND mglkg 0.025 0.010 ND mglkg 0.025 0.010 ND mg/kg 0.025 0.010 ND mg/kg 0.10 0,015 ND mg/kg 0.025 0.010 ND mg/kg 0.10 0.010 No mg/kg 0.025 0.010 ND mg/kg 0.025 0.010 ND mg/kg 0.025 0.0050 ND mg/kg 0.025 0.010 ND mglkg 0.025 0.0050 ND mg/kg 0,025 0.010 ND mg/)<g 0.025 0.010 ND mg/kg 0.025 0.010 ND mg/kg 0.025 0.0050 1 ND mg/kg 0.050 0.010 1 ND mg/kg 0.025 0.010 ND mglkg 0.025 0.0050 ND mglkg 0.025 0.010 ND mglkg 0.025 0.010 ND mglkg 0.025 0,010 ND mglkg 0.025 0.010 NO mg/kg 0.025 0.010 ND mg/kg 0.025 0.010 1 ND mg/kg 0.025 0.010 1 ND mg/kg 0.025 0.0050 1 ND mg/kg 0.025 0.010 ND mg/kg 0.02£ 0.010 1 0.16 mg/kg 0.025 0.010 1 ND mg/kg 0.025 0.010 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, exoepl in full, without the written consent of CALTEST ANAL VTICAL LABORATORY 1885 N01th Kelly Road • Napa, California 94558 (707) 258-4000 •Fax (707) 226-1001 •e-mail: info@caltestlabs.com 06/05/15 02; 12 SMS 3755 Analyzed by: AN 05/07/15 20:10 VMS 3245 4 05/07/15 20:10 VMS 3245 05/07115 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07115 20:10 VMS 3245 05107/15 20:10 VMS 3245 05/07 /15 20: 10 VMS 3245 05/07/15 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07 /1520:10 VMS 3245 05/07/15 20:10 VMS 3245 05107115 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05107/15 20:10 VMS 3245 05/07115 2tHO VMS 3245 05/07/15 20:10 VMS 3245 05/07/15 20:10 VMS 32A5 05107/15 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07115 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07 /15 20: 10 v~s 3245 05/07/15 20:10 VMS 3245 05/07/15 20:10 VMS 3245 05/07 /15 20: 10 VMS 3245 05/07115 20: 10 VMS 3245 05/07 /15 20: 10 VMS 3245 05/07/15 20:10 VMS 3245 05/07115 20:10 VMS 3245 05/07115 20\10 VMS 3245 05/07/15 20:10 VMS 3245 Page 13 of27 DocuSign Envelope ID: 448F9083-A76E-4EF1-9A95-SF616E43347D NELAP/ORELAP Cettification 4036 ~ ~-. Caltest ., .. ~ ~N'\• \-&li \I, •. \tlll.._,1Hlt -1t CA-ELAP Certification 1664 fiN VlftON Ml!.NTAL AN \U Sl.S II REVISED II ANALYTICAL RESULTS Lab Order. Q050123 Project ID: NPDES QUARTERLY MAY 2015 Solid results are reported on a wet weight basis. lab ID Q050123005 Date Collected 5/4/2015 09:35 Matrix Solid Sample 10 E000767-01 GRIT Date Received 5/5/201513:40 Results are expressed as wet weight values Parameters Result Units R. L. MDL OF Prepared Batch Analyzed Batch Qual Methylene chloride Naphthalene n-Propylbenzene Styrene 1.1, 1,2-Tetrachloroethane 1, 1,2,2-Tetrachloroethane Tetrachloroethene (PCE) Toluene 1,2.3-Trlchlorobenzene 1.2.4-Trichlorobenzene 1, 1,2-Trichloroethane 1, 1.1-Trichloroelhane (TCA) Trlchloroethene (TCE) Trlchlorofluoromelhane (F- 11) 1,2,3-Trlchloropropane TrichlorotrlOuorelhane (F113) 1,2,4-Trimelhylbenzene 1,3,5-Trlmelhylbenzene Vinyl chloride Xylenes, total 4-Bromofluorobenzene (SS) Dibromofluoromethane (SS) 1,2-Dlchloroelhane-d4 (SS) Toluene-d8 (SS) Cyanide, Total Analysis Cyanide 6/18/2015 16:12 ~"'~. ·line• I r! ~, ~i ac~ ND mg/kg 0.15 0.0050 1 05/07/15 20:10 VMS3245 ND mg/kg 0.025 0.010 1 05/07/15 20:10 VMS 3245 ND mg/kg 0.025 0.010 1 05/07/15 20:10 VMS 3245 ND mg/kg 0.025 0.010 1 05/07/15 20:10 VMS 3245 ND mg/kg 0.025 0.010 1 05/07/15 20:10 VMS 3245 ND mg/kg 0.025 0.010 1 05/07/15 20:10 VMS 3245 ND mg/kg 0.025 0.010 05/07/15 20:10 VMS 32.45 4.2 rng/kg 0.005 0.0010 05/12/15 20:00 VMS 3245 6 ND mg/kg 0.025 0.010 05/07/15 20:10 VMS3245 ND mg/kg 0.025 0.010 05/07/15 20:10 VMS 3245 ND mg/kg 0.025 0.0050 05/07/15 20:10 VMS 3245 ND mg/kg 0.025 0.010 05/07/15 20:10 VMS 3245 ND mg/kg 0.025 0.010 05/07/1520:10 VMS3245 ND mg/kg 0.025 0.020 05/07/15 20:10 VMS 3245 ND mg/kg 0,025 0,010 05/071i5 20:10 VMS 3245 ND mg/kg 0.050 0.010 05/07/1520:10 VMS3245 NO mgfkg 0.025 0.010 05/07/15 20:10 VMS 3245 ND mg/kg 0.025 0.010 05/07/15 20:10 VMS3245 ND mg/kg 0.025 0.015 05/07/15 20:10 VMS 3245 ND mg/kg 0.025 0.0050 05/07/15 20:10 VMS 3245 93% 74-130 05/07/15 20:10 VMS 3245 103 o/o 69-129 05/07/15 20:10 VMS 3245 95% 61-133 05/07 /15 20: 10 VMS 3245 93% 71-135 05/07/15 20:10 VMS 3245 Analytical Method: SW846 9012A Analyzed by: BCP 0.25 mg/kg 0.080 0.080 05/09/15 17 :05 wco 10778 REPORT OF LABORATORY ANALYSIS Page 14 of 27 Thls report shall not be reproduced, except In full, without the written consent of CAL TEST ANALYTICAL LABORATORY 1885 North Kelly Road • Napa, California 94558 (707) 258-4000 • Fax (707) 226-100 l •e-mail: info@caltestlabs.com DocuSign Envelope ID: 44BF9DB3-A76E-4EF1-9A95·3F616E433470 NELAP/ORELAP Certification 4036 ·~·-Cah est CA-ELAP Certification 1664 Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Analysls Description: Mercury Analysis Analysls Method: SWB46 7471A METHOD BLANK: Parameter Mercury LABORATORY CONTROL SAMPLE: Parameter Mercury 638756 Blank Result ND 638757 Units mg/kg "-) \'\"\f \I I( ,\I I \l\f ll! \ltllt\ ENV ll\ONMBNT/\L ANA1,\'Sl!S QUALITY CONTROL DATA Reporting Limit MDL 0.020 0.0008 Spike Cone. 0.1 LCS Result 0.12 QC Batch: QC Batch Method: Units Qualifiers mg/kg LCS %Rec 110 %REC MPR/13565 SW846 7471A Limits Qualifier 75-125 MATRIX SPIKE & MATRIX SPIKE DUPLICATE: 636759 638760 Q050123001 Spike MS MSD MS MSD % Rec Parameter Units Result Cone. Result Result % Rec % Rec Limit RPO Mercury Analysis Description: Analysis Method: METHOD BLANK: Parameter Antimony Copper METHOD BLANK: Parameter Arsenic Barium Beryllium Cadmium Chromium Cobalt Lead Molybdenum Nickel Selenium Silver Thallium Vanadium Zina 6/18/2015 16:12 mg/kg 0.0009 0.11 0.115 0.115 108 108 75-125 Metals Analysis by ICP QC Batch: SW8466010B QC Batch Method: 638744 Blank Reporting Result Limit MDL Units Qualifiers ND 2.0 1.5 mg/kg ND 2.0 0.2 mg/kg 638744 Blank Reporting Result Limit MDL Units Qualifiers ND 2.0 1.0 mg/kg ND 1.0 0.7 mg/kg ND 5.0 0.15 mg/kg ND 0.20 0.05 mg/kg ND 1.0 0.2 mg/kg ND 0.4 0.2 mg/kg ND 1.0 0.5 mg/kg ND 2.0 1.0 mg/kg ND 1.0 0.30 mg/kg ND 2.0 0.8 mg/kg ND 1.0 0.2 mg/kg ND 2.0 0.7 mg/kg ND 0.40 0.20 mg/kg ND 4.0 1.0 mg/kg REPORT OF LABORATORY ANALYSIS This report shall not be reproduce<l, except in full, without the written consent of CAL TEST ANALYTICAL LABORATORY 1885 Nmth Kelly Road • Napa, California 94558 MPR/13563 SW846 30508 (707) 258-4000 • Fax (707) 226-1 00 I • e-mail: info@caltestlabs.com 0 REVLSED Max RPO Quallflers 35 Page 15 or 27 DocuSign Envelope ID: 448F9083·A76E-4EF1-9A95-3F616E43347D NELAP/ORELAP Cetiification 4036 CA-ELAP Certification 1664 UI VIRU NMIIN'l'Al 1\1'/\L.YSI:S II REVISED ii QUALITY CONTROL DATA Lab Order: 0050123 Project 10: NPDES QUARTERLY MAY 2015 Analysis Description~ Metals Analysis by ICP QC Batch: MPR/13563 Analysis Method: SW8466010B QC Batch Method: SW846 30508 LABORATORY CONTROL SAMPLE: 638745 Spike LCS LCS %REC Parameter Units Cone. Result %Rec Limits Qualifier Antimony mg/kg 20 17 84 75-125 Arsenic mg/kg 20 17 86 75-125 Barium mg/kg 99 90 91 75-125 Beryllium rng/kg 20 19 95 75-125 Cadmium mg/kg 9.9 9.1 92 75-125 Chromium mg/kg 20 18 91 75-125 Cobalt mg/kg 20 17 85 75-125 Copper mg/kg 20 17 88 75-125 Lead mg/kg 99 91 92 75-125 Molybdenum mg/kg 20 16 80 75-125 Nickel mg/kg 20 19 94 75-125 Selenium mg/kg 20 15 77 75-125 Sliver m,g/kg 20 19 95 75-125 Thallium mg/kg 99 88 89 75-125 Vanadium mg/kg 20 17 87 75-125 Zinc mg/kg 99 87 88 75-125 MATRIX SPIKE & MATRIX SPIKE DUPLICATE: 638747 638748 0040896001 Spike MS MSD MS MSD %Rec Max Parameter Units Result Cone. Res4lt Result %Rec %Rec Limit RPO RPO Qualifiers Antimony mg/kg 0 20 15.5 15.4 78 78 75-125 0.6 35 Arsenic mg/kg 0 20 18.5 18.4 93 93 75-125 0.5 35 Barium mg/kg 85 100 177 176 92 92 75-125 0.6 35 Beryllium mg/kg 0 20 18.3 18.1 92 91 75-125 1.1 35 Cadmium mg/kg 0.43 10 9.31 9.18 89 88 75-125 1.4 35 Chromium mg/kg 7.3 20 25.2 25.2 90 90 75-125 0 35 Cobalt mg/kg 0.9 20 17.3 17.2 82 82 75-125 0.6 35 Copper mg/kg 110 20 121 121 RNC RNC 75-125 0 35 7 Lead mg/kg 6 100 95.7 94.5 90 89 75-125 1.3 35 Molybdenum mg/kg 0 20 17.1 17.3 86 87 75-125 1.2 35 Nickel mg/kg 6.9 20 25.4 25.3 93 93 75-125 0.4 35 Selenium mg/kg 1.9 20 16.7 17.4 74 78 75-125 4.1 35 8 Sliver mg/kg 1.3 20 20.5 20 9a 94 75-125 2.5 35 Thallium mg/kg 0 100 86.5 85.8 67 66 75-125 0.8 35 Vanadium mg/kg 2 20 19.3 19.1 87 86 75-125 1 35 Zinc mg/kg 420 100 509 514 89 95 75-125 35 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS Page 16 of 27 This report shall not be reproduced, e~cepl In full. without the written consent of CAL TEST ANALYTICAL LABORATORY ! I ~ fn'l!.~ nelac~ '1885 North Kelly Road • Napa, California 94558 (707) 258-4000 •Fax (707) 226-1001 ·e-mail: info@caaestlabs.com DocuSlgn Envelope ID: 448F9083·A76E-4EF1-9A95-3F61 GE433470 NELAP/ORELAP Certification 4036 ,.._ "~-~-c~1ltest CA-ELAP Certification 1664 ; ~ II'-~" ill \I I \l\"I: \ •toj.\ QUALITY CONTROL DATA Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Analysla Descrtptlon: Metals Analysis by lCP, STLC Analysis Method: SW846 6010B (Leachate) LEACHATE BLANK: 638765 Blank Parameter Result Antimony ND Arsenic NO Barium ND Beryllium ND Cadmium ND Chromium ND Cobalt NO Copper ND Lead ND Molybdenum NO Nickel ND Selenium NO Sliver ND Thallium NO Vanadium ND Zinc ND Reporting Limit MDL 0.10 0.040 0.10 0.050 0.15 0.070 0.010 0.0050 0.010 0.0040 0.10 0.050 0.050 0.020 0.10 0.030 0.10 0.040 0.50 0.20 0.05 0.02 0,50 0.20 0.030 0.006 0.10 0.040 0.02 0.005 0.20 0.10 QC Batch: QC Batch Method: Units Qualifiers mg/L mg/L mg/L mg/L mg/L mg/L rng/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L MPR/13573 SW846 3010 LABORATORY CONTROL SAMPLE: 639463 Spike LCS LCS o/o REC Parameter Units Cone. Result % Ren Limits Qualifier Antimony mg/L 10 8.9 89 80-120 Arsenic mg/L 2 1.9 94 80-120 Barium mg/L 10 9.6 96 80-120 Beryllium mg/L 2 2 100 80-120 Cadmium mg/L 1 0.96 96 80-120 Chromium mg/L 2 1.9 97 80-120 Cobalt mg IL 2 1.9 95 80-120 Copper mg IL 2 2 99 80-120 Lead mg/L 10 9.7 97 80-120 Molybdenum mg/L 2 1.9 94 80-120 Nickel mg/L 2 2 98 80-120 Selenium mg/L 2 1.6 83 80-120 Silver mg/L 10 9.8 98 80-120 Thallium mg/L 10 9.4 94 80-120 Vanadium mg/L 2 1.9 95 80-120 Zinc mg/L 10 9.1 91 80-120 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS Thfs report shall not be reproduced, except In full, without the written consent of CAL TEST ANALYTICAL LABORATORY 1885 North Kelly Road • Napa1 California 94558 (707) 258-4000 • Fax (707) 226-100 l • e-mail: info@caltestlabs.com II REV.lSED II Page 17 of27 DocuSlgn Envelope ID: 448F9D83·A76E·4EF1 ·9A95·3F618E433470 NELAP/ORELAP Certification 4036 .~ ~-Caltest -,~ • \~'·\J \ 1u ·,\I P \H11t:.\t<t1<\ ., N v mo NMEN1'" I. AN AL y sr.i• QUALITY CONTROL DATA Lab Order: 0 050123 Project ID: NPDES QUARTERLY MAY 2015 Analysls Description: Metals Analysis by ICP, STLC QC Batch: Anatysls Method: SW846 60106 (Leachate) QC Batch Method: MATRIX SPIKE & MATRIX SPIKE DUPLICATE: 639465 639466 Parameter Antimony Arsenic Barium Beryllium Cadmium Chromium Cobalt Copper Lead Molybdenum Nickel Selenium Silver Thallium Vanadium Zinc Analysis Description: Analysls Method: LEACHATE BLANK: Parameter Mercury Analysis Description: Analysis Method: LEACHATE BLANK: Parameter Mercury 6/18/2015 16:12 Q050123002 Spike MS Units Result Cone. Result mg/l 0.33 10 9.16 mg/l 0.34 2 2.26 mg/L 16 10 25.7 mg/L 0 2 1.89 mg/L 0.014 0.935 mg/L 0.24 2 2.11 mg/L 0.24 2 2.08 mg/L 40 2 42.2 mg/L 0.19 10 9.65 mg/L 2.4 2 4.31 mg/l 0.68 2 2.47 mg/l 0.2 2 1.97 mg/L 0 10 9.72 mg/L 0.074 10 9.51 mg/L 2.8 2 4.63 mg/L 31 10 39.9 Mercury Analysis, STLC, Low Level SW846 7470A Low Level 638765 Blank Result ND Mercury Analysis, STLC SW846 7470A 638765 Blank Result ND Reporting Limit MDL 0.50 0.30 Reporting Limit MDL 0.50 0.30 MSD MS MSD Result %Rec %Rec 9.29 88 90 2.33 96 100 25.9 97 99 1.91 95 96 0.941 92 93 2.11 94 94 2.1 92 93 42.6 110 RNC 9.71 95 4.36 96 2.5 90 2.01 89 10 97 9.65 94 4.66 92 39.9 89 QC Batch: QC Batch Method: Units Qualifiers ug/L QC Batch: QC Batch Method: Units Qualifiers ug/l 95 98 91 91 100 96 93 89 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced. except In full, wllhout tile written consent oi CAL TEST ANAL YT I CAL LABORATORY 1885 North Kelly Road • Napa, California 94558 CA-ELAP Certification 1664 MPR/13573 SW846 3010 %Rec Max Limit RPO RPO Qualifiers 80-120 1.4 20 80-120 3.1 20 80·120 0.8 20 80-120 1.1 20 80-120 0.6 20 80-120 0 20 80-120 1 20 80-120 0.9 20 7 80-120 0.6 20 80-120 1.2 20 60-120 1.2 20 80-120 2 20 80-120 2.8 20 80-120 1.5 20 60-120 0.6 20 80-120 0 20 MPR/13577 SW846 7470A Low Level MPR/13577 SW846 7470A Page 18 of27 (707) 258-4000 •Fax (707) 226-1001 •e-mail: info@caltestlabs.com DocuSfgn Envelope ID: 448F9D83-A76E-4EF1-9A95-3F616E43347D NELAP/ORELAP Certification 4036 Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Analysls Dascr1ptlon: Analysts Method: Semivolatile Organic Analysis SW846 8270C METHOD BLANK: Parameter Acenaphthene Acenaphthylene Aniline Anthracene Benzidlne Benzo(a)anthracene Benzo(a)pyrene Benzo(b)Ouoranthene Benzo(g,h,i)perylene Benzo(k)fluoranthene Benzoic acid Benzyl alcohol Benzyl butyl phthalate 4-Bromophenyl phenyl ether Carbazole 4-Chloroanillne bls(2-Chloroethoxy) methane bls(2-Chioroethyi) ether bis(2-Chtoroisopropyl) ether 4-Chloro-3-methylphenol 2-Chloronaphthatene 2-Chlorophenol 4·Chlorophenyl phenyl ether Chrysene Total Cresot Dibenzo(a,h)anthracene Dibenzofuran 1,2-Dichlorobenzene 1.3-Dlchlorobenzene 1,4-Dlchlorobenzene 3,3'-Dlchlorobenzidlne 2.4-Dichlorophenol Dlethyiphthalate 2,4-Dimethylphenol Dimethylphthalate Df-n-butylphthalate 2,4-Dinitrophenol 2,4-Dinitrotoluene 2,6-Dlnltrotoluene Oi-n-octylphthalate 1,20iphenylhydrazine/Azobenzen bis(2-Ethylhexyl) phlhalate Fiuoranthene Fiuorene Hexachtorobenzene 638878 Blank Result ND NO ND ND ND ND ND ND ND ND NO ND ND ND NO ND ND ND ND ND NO NO ND ND NO NO ND NO ND ND NO NO ND NO NO ND ND ND ND ND ND ND ND NO ND E.NV!ltONMLNI \L \f\,\l.Y~lf.~ QUALITY CONTROL DATA QC Batch: QC Batch Method: Reporting Limit MDL Units Qualifiers 0.33 0.20 mg/kg 0.33 0.20 rnglkg 0.33 0.20 mg/kg 0.33 0.10 mg/kg 0.67 0.50 mg/kg 0.33 0.10 mg/kg 0.33 0.10 rng/kg 0.33 0.10 mg/kg 0.33 0.10 mg/kg 0.33 0.10 mg/kg 2.0 2.0 mg/kg 0.33 0.20 mg/kg 0.33 0.10 mg/kg 0.33 0.20 mg/kg 0.33 0.10 mg/l<g 0.33 0.20 mg/kg 0.33 0.20 mg/kg 0.33 0,20 mg/kg 0.33 0.20 mg/kg 0.33 0.30 mg/kg 0.33 0.20 mg/kg 0.33 0.30 mg/kg 0.33 0.20 mg/kg 0.33 0.10 mg/kg 0.67 0.60 mg/kg 0.33 0.10 mg/kg 0.33 0.20 mg/kg 0.33 0.20 mg/kg 0.33 020 mg/kg 0.33 0.20 mg/kg 0.33 0.30 mg/kg 0.33 0.30 mg/kg 0,33 0.20 mg/kg 0,33 0.30 mg/kg 0.33 0.20 mg/kg 0.33 0.10 mg/kg 0.33 0.20 mg/kg 0.33 0.20 mg/kg 0.33 0.20 mg/kg 0.33 0.10 mg/kg 0.33 0.20 mg/kg 0.33 0.30 mg/kg 0.33 0.10 mg/kg 0.33 0.20 mg/kg O.J3 0.10 mg/kg 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS Thfs report shall not be reproduced, except In full, without the written consent of CAL TEST ANALYTICAL LABORATORY 1885 North Kelly Road •Napa, Califorrtia 94558 CA-ELAP Certification 1664 SPR/6939 SW846 3540 II REVISED I! Page 19 of 27 (707) 258-4000 •Fax (707) 226-1001 •e-mail: info@caltestlabs.com DocuSign Envelope ID: 448F9D83-A 76E·4EF1 ·9A95·3F616E43347D NELAP/ORELAP Certification 4036 CA-ELAP Cct1ification 1664 flNV I NUNl\1 1 NTAI, 1\N.\l ,'Sf'h QUALlTY CONTROL DATA Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Analysls Description: Analysis Method.: Semlvolatile Organic Analysis SW846 8270C Blank Reporting Parameter Result Limit Hexachlorobutadiene ND 0.33 Hexachlorocyclo pentadlene ND 0.33 Hexachloroethane ND 0.33 lndeno(1,2,3-cd)pyrene ND 0.33 lsophorone ND 0.33 2-Methyl-4,6-dlnltrophenol ND 0.33 2-Methylnaphthalene NO 0.33 2-Methylphenol (o-Cresol) ND 0,33 3 & 4-Methylphenol(m&p Cresol) ND 0.33 Naphthalene ND 0.33 2-Nitroanlllne ND 0.33 3-Nltroanlllne ND 0.33 4-Nitroanlllne ND 0:33 Nitrobenzene ND 0.33 2-Nltrophenol ND 0.33 4-Nltrophenol ND 0.33 N-Nltrosodimethylarnlne ND 0.33 N-Nitroso-dl·n·propylamine ND 0.33 N-Nltrosodiphenylamine ND 0.33 Pentachlorophenol ND 0.33 Phenanthrene ND 0.33 Phenol ND 0.33 Pyrene ND 0.33 Pyridine ND 0.33 1,2,4-Trichlorobenzene ND 0.33 2,4,5-Trichlorophenol ND 0.33 2,4,6-Trichlorophenol ND 0.33 2-Fluoroblphenyl (SS) gs 10-14g 2-Ftuorophenol (SS) 93 47-105 Nltrobenzene-d5 (SS) 83 57-1 08 Phenol-d6 (SS) 95 58-97 Terphenyl-d14 (SS) 110 32-120 2,4,6-Tribromophenol (SS) 135 26-143 LABORATORY CONTROL SAMPLE & LCSD: 638879 Spike. LCS Parameter Units Cone. Result Acenaphthene mg/kg 3.3 3.46 4-Chloro-3-methylphenol mg/kg 6.7 6.36 2-Chlorophenol mg/kg 6.7 5,9 1,4-Dlchlorobenzene mg/kg 3.3 3.22 2,4-Dlnltrotoluene mg/kg 3.3 3.38 4-Nttrophenol mg/kg 6.7 7.18 N-Nitroso-di-n-propylamine mg/kg 3.3 2.86 QC Batch: QC Batch Method: MDL Units Qualifiers 0.20 mg/kg 0.10 mg/kg 0.20 mg/kg 0.10 mg/kg 0.20 mg/kg 0.20 mg/kg 0.20 mglkg 0.30 mg/kg 0.30 mg/kg 0.20 mg/kg 0.20 mg/kg 0.20 mg/kg 0.10 mglkg 0.20 mg/kg 0.30 mg/kg 0.20 mg/kg 0.20 mg/kg 0.20 mg/kg 0.20 mg/kg 0.20 mg/kg 0.20 mg/kg 0.20 mg/kg 0.10 mglkg 0.20 mg/kg 0.20 mg/kg 0.30 mg/kg 0.30 mg/kg % % 'Yo % % % 638880 LCSD LCS LCSD Result % Rec % Rec 3.2 104 96 6.25 95 94 5.66 89 85 2.91 97 87 3.15 101 95 6.78 108 102 2.62 86 79 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except Jn lull, SPR/6939 SWB46 3540 %REC limits RPO 67-108 7.6 45-96 1.7 62-106 4.2 55-112 10 56-140 7 67-127 5.7 20-120 8,8 without the written consent of CALTEST ANALYTICAL LABORATORY ..9' ..... ~ lnelac·~ 1885 North Kelly Road • Napa, California 94558 (707) 258-4000 • Fax (707) 226-100 l • e-mail: info@caltestlabs.com REVISED Max RPO Quallfler 68 74 50 50 71 52 50 Page 20 of 27 DocuStgn Envelope ID: 448F9083-A76E.-4EF1-9A95·3F616E43347D NELAP/ORELAP Certification 4036 ~· ·., Caltest CA-ELAP Celiification 1664 •(..: \'.'.\l\lh \f I \tlt 1l\\f•1H\ llN V I JU I NM ll NT AL A N A LY SES REVISED QUALITY CONTROL DATA Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Analysis Description: Semlvolatile Organic Analysis QC Batch: SPR/6939 Analysis Method: SW846 8270C QC Batch Method: SW846 3540 LABORATORY CONTROL SAMPLE & LCSD: 638879 638880 Spike LCS LCSD LCS LCSD %REC Max Parameter Units Cone. Result Result % Rec %Rec Limits RPO RPO Qualifier Pentachlorophenol mg/kg 6.7 9.29 8.74 139 131 53-119 6.1 78 9 Phenol mgfkg 6.7 5.63 5.34 84 80 48-95 5.3 50 Pyrane mglkg 3.3 3.52 3.35 106 101 53-122 4.9 101 1,2,4-Trichlorobenzene mg/k.g 3.3 3.45 3.21 104 96 69-110 7.2 80 2-Fluoroblphenyl (SS) % 102 95 10-149 7.9 2-Fluorophenol (SS) % 90 89 47-105 0.5 Nitrobenzene-d5 (SS) % 95 101 57-108 6.1 Phenol·d6 (SS) % 96 95 58-97 1.6 TerphenyJ-d14 (SS) % 118 111 32-120 6.6 2,4,6-Tribromophenol (SS) % 133 137 26-143 3.1 MATRIX SPIKE & MATRIX SPIKE DUPLICATE: 638881 638882 Q040896001 Splko MS MSD MS MSD %Rea Mu Parameter Units Result Cone. Result Result %Rec %Rec Limit RPO RPO Qualifiers Acenaphthene mg/kg 0 10 10.9 11 109 110 67-108 0.9 68 11 4-Chloro-3-methylphenol mg/kg 0 20 22.9 23.9 115 120 45-98 4.3 74 11 2-Chlorophenol mg/kg 0 20 18.4 18.6 92 93 62-106 1.1 50 1.4-Dichlorobenzene mg/kg 0 10 8.82 8.7 88 87 55-112 1.4 50 2, 4-Dlnitrotoluene mg/kg 0 10 11 11 110 110 56-140 0 71 4-Nitrophenol mg/kg 0 20 24.7 27.3 124 137 67-127 10 52 ,, N-Nitroso-di-n-propylarnine mg/k.g 0 10 10.8 11.6 108 116 20-120 7.1 50 Pentachlorophenol mg/kg 0 20 29.5 27.8 148 139 53-119 5,9 78 12 Phenol mg/kg 41 20 63.5 69.8 113 144 48-95 9.5 50 11 Pyrene mg/kg 0 10 24.1 27.7 241 277 53-122 14 101 11 1,2.4-Trichlorobenzene mg/kg 0 10 10.2 9.64 102 96 69-110 5.6 80 2-Fluorobiphenyl (SS) % 113 110 10-149 2.3 2-Fluorophenol (SS) % 81 104 47-105 25 Nitrobenzene-d5 (SS) % 92 94 57-108 1.8 Phenol-d6 (SS) % 109 116 58-97 5.9 10 Terphenyl-d14 (SS) % 201 241 32-120 18 10 2,4,6-Tribromophenol (SS) % 143 143 26-143 0.1 Analysis Description: Total Extractable Petroleum Hydrocarbon QC Batch: SPR/6946 Analysis Method: SW846 8015(MOD) QC Batch Method: SW846 3541 METHOD BLANK: 639585 Blank Reporting Parameter Result Limit MDL Units Qualifiers Diesel Fuel ND 4 2 mg/kg TPH quantltated as Diesel fuel ND 4 2 mg/kg 6/18/201516:12 REPORT OF LABORATORY ANALYSIS Page 21of27 Ttils report shall not be reproduced. except In full, Wlthout the written consent of CALTESTANALYTICAL LABORATORY 18'85 No1th Kelly Road •Napa, California 94558 (707) 258-4000 • Fax (707) 226-100 I • e-tnail: info@caltcstlabs.com DocuSfgn Envelope ID: 448F9083·A76E-4EF1-9A95-3F616E43347D NELAP/ORELAP Certification 4036 (: ~ ~ .... Caitest CA-ELAP Ceitification 1664 "• ~. "'\I \"I I< \I I \1\111: '""" E N V Ill 0 N M J-: N 1' A I. A N A I \' S ES QUALITY CONTROL DATA Lab Ort!er: 0050123 Projeot ID; NPDES QUARTERLY MAY 2015 Ahalysls Description: Total Extractable Petroleum Hydrocarbon QC Batch: Analysis Method: SW846 8015(MOD) QC Batch Method: SPR/6946 SW8463541 Reporting Parameter Blank Result Limit MDL Units Qualifiers o-Terphenyl (SS) 92 40-139 % LABORATORY CONTROL SAMPLE: 639586 Spike LCS LCS Parameter Units Cone. Result % Rec Diesel Fuel mg/kg 67 57 85 o-Terphenyl (SS) % 89 MATRIX SPIKE & MATRIX SPIKE DUPLICATE: 639588 639589 Q050228001 Spike MS MSD MS %REC Limits Quallfler 36-120 40-139 MSD %Rec Parameter Units Result Cone. Result Result %Rec %Rec Limit RPO TPH quantitated as Diesel Fuel mg/kg 1170 200 1820 1620 RNC RNC 28-156 12 o-Terphenyl (SS) % 123 112 40-139 9.4 Analysis Description: Volatile Organic Analysis QC Batch: VMS/3245 REVISED Max RPO Quallfie.rs 40 7 Analysis Method: SW846 50308/82608 QC Batch Method: SW846 50308182608 METHOD BLANK: 638856 Blank Reporting Parameter Result Limit MDL Units Qualifiers Benzene ND 0.005 0.002 mg/kg 8romobenzene ND 0.005 0.002 mg/kg Bromochloromethane ND 0.005 0.003 mg/kg Bromodichloromethane ND 0.005 0.002 mg/kg Bromoform ND 0,005 0,001 mg/kg Bromomethane (Methyl Bromide) ND 0.020 0.004 mg/kg n-Butylbenzene ND 0.005 0.002 mg/kg sec-Butylbenzene ND 0.005 0.002 mg/l<g tert-Butylbenzene ND 0.005 0.002 mg/k_g Carbo11 tetrachloride ND 0.005 0.002 mg/kg Chlorobenzene ND 0.005 0.002 mg/kg Chloroethane (Ethyl Chloride) ND 0.020 0.003 mg/kg Chloroform ND 0.005 0.002 mg/kg Chloromethane(Methyl Chloride) ND 0.020 0.002 mg/kg 2-Chlorotoluene ND 0.005 0.002 mgil<g 4-Chlorotoluene ND 0.005 0.002 mg/kg Dibromochlorometha11e ND 0.005 0.001 mg/kg 1,2-Dibromo-3-chloropropane ND 0.005 0.002 mg/kg 1,2-Dibromoethane (EDB) ND 0.005 0.001 mg/kg Dlbromomethane ND 0.005 0.002 mg/kg 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS Page 22 of 27 This report shall not be reproduced, except In lull, Without the written conse~t of CAL TEST ANALYTICAL LABORATORY 1885 No1th Kelly Road •Napa, California 94558 (707) 258-4000 • Fax (707) 226-100 I • e-mail: info@caltestlabs.com DocuSign Envelope ID: 448F9D83-A76E-4EF1 -9A95-3F616E43347D NELAP/ORELAP Certification 4036 ~ . CaJtest -~ \"\\1)11 .. 11 I 11li 111 .. o'I,\ CA-ELAP Certification 1664 1: N V 1 ll 0 N 1\1 I~ N I' \ I /\ N A I \' S I· .1. II REVISED II QUALITY CONTROL DATA Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Analysis Description; Volatile Organic Analysis QC Batch: VMS/3245 Analysis Method: SW846 50308/82608 QC Batch Method: SW646 50308/62608 Blank Reporting Parameter Result Limit MDL Units Qualifiers 1,2-Dichlorobenzene ND 0.005 0.002 mg/kg 1,3-0lchlorobenzene ND 0.005 0.002 mg/kg 1.4-Dichlorobenzene ND 0.005 0.001 mg/kg DichlorodJfluoromelh!lne (F-12) ND 0.010 0.002 mg/kg 1, 1-Dichloroethane NO 0.005 0.002 mg/kg 1,2·Dichloroethane (EDC) ND 0.005 0.001 mg/kg 1, 1-Dichloroethene NO 0.005 0.002 mg/kg ds-1,2-Dichloroethene ND 0,005 0.002 mglk~ trans-1,2·Dichloroethene ND 0.005 0.002 mg/kg 1,2-Dichloropropane ND 0.005 0.002 mg/kg 1,3-0ichloropropane ND 0.005 0.002 mg/kg 2,2-0ich!oropropane ND 0.005 0.002 mg/kg 1, 1-Dichloropropene ND 0.005 0.002 mg/kg Dichlorotrifluoroethane (F123) ND 0.005 0.001 mg/kg Ethylbenzene ND 0.005 0.002 mg/kg Hexachlorobutadiene ND 0.005 0.002 mg/kg 4-tsopropyltoluene ND 0.005 0.002 mg/kg Methyl lert-butyl ether (MTBE) ND 0.005 0.002 mg/kg Methylene chloride ND 0.030 0.001 mg/kg Naphthalene ND 0.005 0.002 mg/kg n·Propylbenzene ND 0.005 0.002 mg/kg Styrene ND 0.005 0.002 mg/kg 1, 1,1,2-Tetrachloroethane ND 0.005 0.002 mg/kg 1, 1,2,2· Tetrachloroethane ND 0.005 0.002 mg/kg Tetrachloroethene (PCE) ND 0.005 0.002 mg/kg Toluene ND 0.005 0.001 mg/kg 1,2,3-Trichlorobenzene ND 0.005 0.002 mg/kg 1,2,4-Trichlorobenzene ND 0.005 0.002 mg/kg 1, 1,2-Trichloroethane ND 0.005 0.001 mg/kg 1, 1, 1-Trichloroethane (TCA) ND 0.005 0.002 mg/kg Trlchloroethene (TCE) ND 0.005 0.002 1)1g/kg Trichlorofluoromethane (F-11) ND 0.005 0.004 mg/kg 1,2,3·Trichloroptopane ND 0.005 0.002 rng/kg Tlichlorotrifluorethane (F113) ND 0.010 0.002 nig/kg 1,2.4-Trlmethylbenzene ND 0.005 0.002 mg/kg 1,3 ,5· Trimethylbenzene NO 0.005 0.002 mg/kg Vinyl chloride ND 0,005 0.003 mg/kg Xylenes, total ND 0.005 0.001 mg/kg 4-Bromofluorobenzene (SS) 89 74-130 % Dibromofluoromethane (SS) 101 69-129 % 1,2·Dichloroethane·d4 (SS) 90 61-133 % Toluene-dB (SS) 101 71-135 % 6/18/2015 16:12 REPORT OF LABORATORY ANALYSIS Page 23 of27 This report shall not be reproduced, e~cept In full, without the wrllten consent of CALTEST ANALYTICAL LABORATORY 1885 North Kelly Road• Napa, California 94558 (707) 258-4000 • F~x (707) 226-100 L •e-mail: info@caltestlabs.com DocuSign Envelope ID; 448F9083-A76E-4EF1 ·9A95-3F616E43347D NELAP/ORELAP Certification 4036 CA-ELAP Certification l664 L!'IVI IH >N lll l!N'J'A l A NA l1Y ~I~~ II REVISED II QUALITY CONTROL DATA Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Analysis Description: Volatile Organic Analysis QC Batch: VMS/3245 Analysis Method: SW846 50308/82608 QC Batch Method: SW846 50308/82608 LABORATORY CONTROL SAMPLE & LCSD: 638857 638858 Spike LCS LCSD LCS LCSD %REC Parameter Units Cone. Result Result %Rec %Rec limits RPO Benzene mg/kg 0.04 0.0443 0.0366 111 92 50-150 19 Bromochloromethane mg/kg 0.04 0.043 0.0365 108 91 50-150 16 Bromodichloromethane mg/kg 0.04 0.0452 0.0385 113 96 50-150 16 Chlorobenzene mg/kg 0.04 0.0418 0.0343 105 86 50-150 20 1, 1-Dlchloroethene mg/kg 0.04 0.0444 0.0358 111 90 50-150 21 Methyl tert-butyl ether (MTBE) mg/kg 0.04 0.0488 0.0421 122 105 50-150 15 Toluene mg/kg 0.04 0.0413 0.0339 103 85 50-150 20 Trichloroethane (TCE) mg/kg 0.04 0.0442 0.0371 111 93 50-150 17 4-Bromofluorobenzene (SS) % 94 91 74-130 3.2 Dibromofluoromethane (SS) % 100 100 69-129 0 1.2-0lchloroethane-d4 (SS) % 101 98 61-133 3.3 Toluene-dB (SS) % 100 101 71-135 1.2 MATRIX SPIKE & MATRIX SPIKE DUPLICATE: 639382 639383 0050214001 Spike MS MSD MS MSO %Rec Parameter Units Result Cone. Result Result %Rec %Rec Limit RPO Benzene mg/kg 0 0.2 0.142 0.154 71 77 50-150 8.1 Bromochloromethane mg/kg 0 0.2 0.137 0.146 69 73 50-150 6.4 Bromodichloromethane mg/kg 0 0.2 0.104 0.0867 52 43 50-150 18 Chforobenz.ene mg/kg 0 0.2 0.111 0.109 56 55 50-150 1.8 1,1-Dichloroethene mg/kg 0 0.2 0.148 0, 173 74 87 50-150 16 Methyl tert·butyl ether (MTBE) mg/kg 0 0.2 0.163 0.167 82 84 50-150 2.4 Toluene mg/kg 0.082 0.2 0.218 0.234 68 76 50-150 7.1 Trichloroethene (TCE) mg/kg 0 0.2 0.129 0.135 65 68 50-150 4.5 4-Bromofluorobenzene (SS) % 92, 91 74-130 1.3 Dlbromofluoromelhane (SS) % 100 109 69-129 8.2 1.2-Dichloroethane-d4 (SS) % 105 112 61-133 6.2 Toluene-dB (SS) % 102 97 71-135 5.5 Analysis Description: Cyanide, Total Analysis Analysis Method: SW846 9012A QC Batch: QC Batch Method: WC0/10778 SW8469012A METHOD BLANK: Parameter Cyanide 6/18/2015 16:12 639384 Blank Result NO Reporting Limit MDL Units Quallflers --------0.080 0.080 mg/kg REPORT OF LABORATORY ANALYSIS This report shall nol be reproduced, except In lull, wlthout the written consent of CALTEST ANALYTICAL LABORATORY 1885 North Kelly Road •Napa, California. 94558 (707) 258-4000 • Fa."X (707) 226-100 l • e-mail: i11fo@caltestlabs.com Max RPO Qualifier 50 50 50 50 50 50 50 50 Max RPO Qualifiers 50 50 50 13 50 50 50 50 50 Page24 of 27 DocuSign Envelope ID: 448F9083·A76E·4EF1 ·9A95·3F616E433470 NELAP/ORELAP Certification 4036 ·~·-;, Calteslt CA-ELAP Certification 1664 • • ~ \ '\. II \ I II' II I \ 11"1! \I'll!\ tlNVIK ONMENTAl. ANAl.YSES ~REVISED! QUALITY CONTROL DATA Lab Order: 0050123 Project ID: NPDES QUARTERLY MAY 2015 Analysis Description: Cyanide, Total Analysis Analysts Method: SWB46 9012A QC Batch: QC Batch Method: wco11on 8 SW846 9012A LABORATORY CONTROL SAMPLE: Parameter Cyanide 639385 Units mg/kg Spike Cone. 0.3 LCS Result 0.3 LCS % Rec 101 o/o REC Limits Qualifier 80-120 MATRIX SPIKE & MATRIX SPIKE DUPLICATE: 639386 639387 Q050123001 Spike MS MSD MS MSD o/o Rec Parameter Units Result Cone. Result Result o/o Rec °lo Rec Limit Cyanide mg/kg 0.69 0.6 1.08 1.12 65 72 70-130 RPO 3.6 Analysis Description: Percent Solids Analysis Analysis Method: SM20·2540 G QC Batch: QC Batch Method: WGR/5763 SM20-2540 G METHOD BLANK: Parameter Solids, Percent SAMPLE DUPLICATE: Parameter Solids, Percent 6/18/201516:12 639023 Blank Result ND 639038 Reporting Limit MDL 0.1 0.1 Units Quailflers o/o Max Units Q050089001 Result DUP Result RPO RPO Qualifiers o/o 17.8 17.7 0.6 20 REPORT OF LABORATORY ANALYSIS This report shall not be reproduced, except In full, without the written consent of CAL TEST ANALYTICAL LABORATORY 1885 North Kelly Road • Napa, California 94558 (707) 258-4000 • Fax (707) 226-100 I • e-mail: info@caltestlabs.com Max RPO Quallflers 30 8 Page 25of27 DocuSlgn Envelope ID: 448F9D83-A76E-4EF1·9A95-3F616E433470 NELAP/ORELAP Certification 4036 ·~ I .... Ca test. CA-ELAP Certification 1664 ~ ''-\J)fh.~1 I \.hllll.~IOll\ II REVISED II QUALITY CONTROL DATA QUALIFIERS Lab Order: Q050123 Project ID: NPDES QUARTERLY MAY 2015 QUALITY CONTROL PARAMETER QUALIFIERS 3 7 8 9 10 11 12 13 6/18/2015 16:12 ~)\·~ lnelac\ Results Qualifiers: Report fields may contain codes and non-numeric data correlating to one or more of the following definitions: NS -means not spiked and will not have recoveries reported for Analyte Spike Amounts QC Codes Keys: These descriptors are used to tielp identlfy the $pacific QC samples and clarify the report. MB -Method Blank Method Blanks are reported to the same Method Detection Limits (MDLs) or Reporting Limits (RLs) as the analytical samples in the corresponding QC batch. LCS/LCSD -l aboratory Control Spike I Laboratory Control Spike Duplicate DUP -Duplicate of Original Sample Matrix MS/MSD -Matrix Spike I Matrix Spike Duplicate RPO -Relative Percent Difference %Recovery -Spike Recovery stated as a percentage Sample diluted due to a high concentration of non-target analyte(s), resultlng In increased reporting limits. RNC =Recovery Not Calculated. Matrix Splke/Matrlx Spike Duplicate (MS/MSD) recoveries were not calculated due to the high native concentration in the sample selected for MS/MSD versus the laboralorY spike concentration. Low Matrix Spike recovery(ies) due to possible matrix interferences in the QC sample. QC batch accepted based on LCS and RPO results. Spike r~very for this compound was high, outstde Caltest acceptance criteria. A sample result of 'ND' for this compound shoul~ be considered valkl. otherWise any other vafue reµorted stwuld be considered estlrneted. Due to matrix interferences present In tne sample, surrogate recoveries falled to meet the QA/QC acceptance criteria. Matrix Spike recovery(ies) outslde control lirnlts: LCS(LCSD) recoveries and RPO are in control. Possible Matrix lnterferenae in QC sample. Matrix Spike recovery(ies) outside control limits, RPO recovery is in control. Possible Mattix Interference in QC sample. Matrix Spike recovery(ies) outside of control limits. Sample result accepted based on LCS, RPO and Method Blank. REPORT OF LABORATORY ANALYSIS Th1s report shall not be reproduced, except In full, wlthout the written consent of CAL TEST ANALYTICAL LABORATORY 1885 North Kelly Road • Napa, California 94558 (707) 258-4000 • Fax (707) 226-100 I •e-mail: info@caltestlabs.com Page 26 of27 DocuSlgn Envelope ID: 448F9083-A76E-4EF1 ·9A95-3F616E43347D NELAP/ORELAP Certification 4036 ~. Caltest .(... ..... \h \I\ lll \I t \fllU4 \1,UI) CA-ELAP Certification 1664 L:NVI H (ll\'l\14N'l'f\1 ;\N<\1 V l.l> REVlSED QUALITY CONTROL DATA CROSS REFERENCE TABLE Lab Order: 0050123 Project fD: NPDES QUARTERLY MAY 2015 Lab ID Sample ID QC Batch Method QC Batch Analytical Method Analytical Batch Q050123001 E000764-01 ASH A SW846 7471A MPR/13565 SW846 7471A MHGf4963 Q050123004 E000766·01 BARSCREEN SW84o7471A MPR/13565 SW846 7471A MHG/4963 Q050123005 E000767-01 GRll SW8467471A MPR/13565 SW846 7471A MHG/4963 Q050123002 E000763·01 ASH A SW646 7470A MPR/13577 SW646 7470A MHG/4968 Q050123004 E000766-01 BARSCREEN SW846 7470ALow Level MPR/13577 SW846 7470A Low MHG/4968 Q050123005 E000767-01 GRIT SW846 7470A Low Level MPR/13577 SW846 7470A Low MHG/4968 0050123001 E000764-01 ASH A SW846 30508 MPR/13563 SW646 60108 MIC/4479 Q050123004 E000766-01 BARSCREEN SW846 3050B MPR/13563 SW84660108 MIC/4479 Q050123005 E000767·01 GRIT SW846 3050B MPR/13563 SW84660108 MIC/4479 Q050123002 E000763-01 ASH A SW846 3010 MPR/13573 SW64660108 MIC/4481 Q050123004 E000766-01 BARSCREEN SW846 3010 MPR/13573 SW8466010B MIC/4481 0050123005 E000767·01 GRIT SW846 3010 MPR/13573 SW8466010B MIC/4481 Q050123003 E000765-01 ASH A (per-attached report) REF/2065 Q050123004 E000766·01 BARSCREEN (per attached report) REF/2065 0050123005 E000767·01 GRIT (per attached report) REF/2065 0050123004 E000766-01 BARSCREEN SW846 3541 SPR/6946 SW846 8015(MOO) SFU1703 Q050123005 E000767-01 GRIT SW646 3541 SPR/6946 SW846 8015(MOD) SFU1703 Q050123004 E000766-01 BARSCREEN SW846 3540 SPR/6939 SW846 8270C SMS/3755 Q050123005 E000767-01 GRIT SW846 3540 SPR/6939 SW8468270C SMS/3755 Q050123004 E000766-01 BARSCREEN SW846 5030B/8260B VMS/3245 Q050123005 E000767-01 GRIT SW846 50308/82608 VMS/3245 0050123001 E000764.01 ASH A SW846 9012A WC0/10778 Q050123004 E000766·01 BARSCREEN SW846 9012A WC0/10778 Q050123005 6000767-01 GRIT SW846 9012A WOOl10778 Q050123001 E000764-01 ASH A SM20-2540 G WGR/5763 6118/2015 16:12 REPORT OF LABORATORY ANALYSIS Page 27 of 27 This report shall not be reproduced, except In fUll, w1thout the written consent of CAL TEST ANALYTICAL LABORATORY 1885 North Kelly Road • Napa, California 94558 (707) 258-4000 •Fax (707) 226-100 I •e-mail : info@caltcstlabs.com DocuSi.gn Envelope 10: 448F9083·A76E-4E:F1 -9A95·3F616E433470 464 McCormick Stroot, San Loandro, CA 94577 Phon11/Fa1t (510) 895-3675 / (510) 895-3680 EMSLOrder: CustomerlD: CustomerPO: 091506686- CAL T50 Q050123 • EMSLAnalytical, Inc ht1p·1twww.EMSL.com sanlea11d!olpb@emsl.com ProjectlD: Attn: Client Services Caltest Analytical Laboratories, Inc. 1885 North Kelly Road NAP A, CA 94558 Prolect: Q050123 Phone: Fax: Received: Analysis Date: Collected: (707) 258-4000 (707) 226-1001 05108/15 10:00 AM 5/21/2016 5/8/2015 Test Report: PLM Analysis of Bulk Samples for Asbestos via EPA 600/R-93/116 Method with CARB 435 Prep {Milling) Level A for 0.25% Target Analytical Sensitivity Sample Description 0050123003 E000765·01 ASH A 091606888·0001 0050123004 E000766-01 091506886-0002 BARSCREEN RAGS 0050123005 E00076-01 GRIT 091606686-0003 Analyst(s) Matthew Batongbacal (3) Appearance % Fibrous Brown Non-Fibrous Hom eneous Brown 100 .00% Cellulose Fibrous Hom eneous Black Non-Fibrous Homogeneous Non-Asbestos % Non-Fibrous 100.00% Non·flbrous (other) 100.00% Non-fibrous (other) Asbestos % Type None Detected None Detected None Detected Chris Dojlidko, Laboratory Manager or other approved signatory 'Thia report relate& only to Ille sampl&a !Isled abo'le and moy nol be rej)foduced except In lull, without EMSL's wrltlon approval. This roport must not be used by the client to claim product certlOcaUon. opprovel, or endorsement by NVLAP, NIST, or any agency of tho federal g0"9mment. EMSl Is not responslble lorsamplo collec\lon actfllltlos or rnelhod llrnllaUons. Soma semples may conlaln asbestos Obers below the resolution llmlt of PLM. EMSL recommends !hat samples reported as none deleoted or less than the limit of detecllon undergo addltlonal analyals via TEM,Sample• rocolwd lo good condlUon unle1111 ollterwlse noted. Samples analyzed by EMSL Ana(ytlca!, Inc San lnandro, CA Initial report from 05/21/2015 14:14:17 Test Report PLMPTC-7.25.0 Printed: 5121/2015 2:14:17 PM THIS IS THE LAST PAGE OF THE REPORT. \.~!1~~~~~ 1885 J\. KELLY RO.W NA.PA, CA 94558 (707) 258-4000 FAX (707) 226-l 00 I PAGE , OF % SAMPLE CHAIN OF CUSTODY 1;~~~c ~ME I PHOJ~~ MJ•l~l ·"-··~-·-· t.A8 OltOifl "sf Qc5o\J.~I NPDES QuarterlvMay 2015 4615000068 WE.NT: IRS'~lA ·~' City of Palo Alto Samantha Bialorucki ANALYSES REQUESTED 1-INfJ..w~; Sf"An::: r~ I -0 2501 Embarcadero Way, Palo Alto CA 94303 ., ;J .. lURN-AROUND TIME IBILUHG ADDR.,....; A , •• : .Cl :c a Cl. -(Please pl'iovide data in CWIQS fonnat zip file and PD F's) .. g Ao I-;;;-ITlsTAADAAO :B .0 z ~ ;.; N ., -;ft. cii ... ... IP110NE N .. •a°"' l~AX PHor.., """'~ 1;MPUR Q'JllNTll: SIG1'lNAMI\): Cl. s E ri :c w ... <( 0 ,._ :!! g I-"' "' Cl. 011usH 650.-329-2334 650-494-8395 WQCP Lab and OPS "O 0 :::c .., :IE < w c .... :; ::< "' -0 2 0 Q. 0 ~ 0 w >. < o; ,; 0 .. -l 0 0 DUE DATE: 0 ., .. I-~ 0 ~ m Cl!. .Cl "' 0 0 ti .. > ~ .. < ., ~ < < ~ w 0 ::i "' CALTEST DATE SAM PUE CQH'tAIHEA CUENT COM?. or .. TIME$AMPUD PRESERVATIVE SAMPLE IOENTIACATION /.SITE -l 0 :a; REMARKS LAB# SAMPLED MATRIX' TYP'e/ANOUNT"'" LAB# GAAB I-"' 0 -l I-I- 5/4/2015 10:00 SL BozlSJ None E000764-01 ASH A COMP x x x TTLC; Quarterly Composite 5/412015 10:00 SL So:z/SJ None E000763-01 ASH A COMP x STLC (mg/L) 5/412015 10:00 SL 8ozfSJ None E000770-01 ASH ~* A COMP x l *" 51412015 7:00 SL Soz/SJ None eooono-01 Sludge C:ike A COMP x x Report Ory Wt in mg/Kg to 3 sig figs. 5/4/2015 ' 9:33 SL 1LISJ None E000766-01 Barscreen IRags A GRAB x x x x x 5/4/2015 9:35 SL 1LISJ None E000767-01 Grit A GRAB x x· x x x I • I I I REUNQ\fl.SH!DBY OATE!TlME R£~EDBY A \\cm.test \..._v ANAL\'JJCAL t..\BORJUt>nY Sending Laboratory Caltest Analytical Laboratory ENVIRONMENTAL ANALYSES 1885 N. Kelly Rd. Napa, CA 94558 Phone: (707) 258-4000 Fax: (707) 226-1001 Report To: Client Services Email: pmgr@caltestlabs.com SUBCONTRACT CHAIN OF CUSTODY PROJECT ID I PO NUMBER -Q050123 Receiving Laboratory EMSLAnalytical, Inc. 464 Mc Mormick St. San Leandro, CA 94577 Phone: (510) 895-3675 Fax: (510) 895-3680 Page 1 of1 PMReview: ~ Due Date: 05/22/15 (contact if due date cannot be met) Sampled By: VV ~ UW / 0 PS Calles! Lab ID · (r~f. Qp!y}-~C~lSa.mple !Q 0050123003 E000765-01 ASH A 0050123004 E000766-01 BARSCREEN RAGS 0050123005 E000767-01 GRIT ~ Relinquished By ReTinquished By Thursday, May 07 2015 12:1 1PM M<!t'.rix ~mple: Date _ Container 1.Y-P'e Pr.~~yauve R~q.u~t~ A~lyse~ ~ SL 05/04/2015 10:00 S;f 8e; ll.ti:!1:. Asbestos Analysis -PLM Carb A SL 05/0412015 09:33 Asbestos Analysis -PLM Carb A SL 05/0412015 09:35 Asbestos Analysis -PLM Carb A 5/1hs j530 ~ Date/Time Received By Date/ Time Received By Matrix: AQ -Aqueous OW -Dnnkrng W;>ter SL -Sofid Comments Date I Time Date /Time DocuSign Envelope ID: 448F9083·A76E·4EF1 ·9A95-3F616E43347D ANALYTICAL RESULTS REPORTS Company: City of Palo Alto WQCP Address: 2501 Embarcadero Way Palo Alto, CA 94303 Contact: Samantha Bialorucki Project Manager Date: August 27, 2015 Project Number: NPDES & Non-NPDES, WQCP TABLE I Sample ID Sample Matrix EPA Analyses Results ± 2 sigma MOA Date Method pCi/gram Error E000766 05-04-15 Solid BAR SCREEN RAGS (09:33) Analyses completed on: 8/25/15 900.0 Gross Alpha 0.07 ± 0.03 0.01 8/25/15 900.0 Gross Beta 0.06 ± 0.03 0.05 8/11/15 901.1 K-40 ND 0.02 0.25 8/11/15 901.1 1-131 ND 0.01 0.30 8/11/15 901.1 Mn-54 ND 0.01 0.01 8/11/15 901.1 Co-58 ND 0.01 0.01 8/11/15 901.1 Co-60 ND 0.01 0.01 8/11/15 901.1 Cs-137 ND 0.01 0.01 8/11/15 901.1 Eu-152 ND 0.01 0.01 8/11/15 901.1 Eu-154 ND 0.01 0.02 8/11/15 901.1 Eu-155 ND 0.01 0.01 8/11/15 901.1 Ir-192 ND 0.01 0.01 8/11/15 901.1 Tl -208 ND 0.01 0.04 8/11/15 901.1 Pb-210 0.02 ± 0.02 0.02 8/11/15 901.1 Bi-212 ND 0.03 0.08 8/11/15 901.1 Pb-212 ND 0.01 0.01 8/11/15 901.1 Bi-214 ND 0.01 0.02 8/11/15 901.1 Pb-214 ND 0.01 0.02 8/11/15 901.1 Ra -226 ND 0.01 0.03 8/11/15 901.1 Ac:-228 ND 0.01 0.03 8/11/15 901.1 Th-228 ND 0.01 0.03 8/11/15 901.1 Th-230 ND 0.01 0.20 8/11/15 901.1 Th-232 ND 0.01 0.02 8/11/15 901.1 Th-234 0.03 ± 0.01 0.03 8/11/15 901.1 Pa-234m ND 0.01 0.01 8/11/15 901.1 U-233/234 ND 0.01 0.02 8/11/15 901.1 U-235 ND 0.01 0.01 8/11/15 901.1 U-238 ND 0.01 0.02 DoouSlgn Envelope ID: 448F9083·A76E·4EF1 ·9A95·3F616E433470 TABLE I (cont'd) Sample ID Sample Matrix EPA Analyses Results + 2 sigma MDA Date Method E!Cl/gram Error E000767 05-04-15 Solid GRIT {09:35) Analyses completed on: 8/25/15 900.0 Gross Alpha 1.62 ± 1.30 0.62 8/25/15 900.0 Gross Beta ND 2.70 3.78 8/12/15 901.1 K-40 0.33 ± 0.04 0.20 8/12/15 901.1 I-131 ND 0.01 0.10 8/12/15 901.1 Mn-54 ND 0.01 0.01 8/12/15 901.1 Co-58 ND 0.01 0.01 8/12/15 901.1 Co-60 ND 0.01 0.01 8/12/15 901.1 Cs-137 ND 0.01 0.01 8/12/15 901.1 Eu-152 ND 0.01 0.01 8/12/15 901.1 Eu-154 ND 0.01 0.02 8/12/15 901.1 Eu-155 ND 0.01 0.01 8/12/15 901.1 Ir-192 ND 0,01 0.01 8/12/15 901.1 Tl-208 ND 0.01 0.04 8/12/15 901.1 Pb-210 0.06 ± 0.01 0.01 8/12/15 901.1 Bi-212 ND 0.01 0.07 8/12/15 901.1 Pb-212 ND 0.01 0.01 8/12/15 901.1 Bi-214 ND 0.01 0.12 8/12/15 901.1 Pb-214 ND 0.01 0.02 8/12/15 901.1 Ra-226 0.01 ± 0.01 0.01 8/12/15 901.1 Ac-228 ND 0.01 0.03 8/12/15 901.1 Th-228 ND 0.01 0.04 8/12/15 901.1 Th-230 ND 0.01 0.02 8/12/15 901.1 Th-232 0.02 ± 0.01 0.01 8/12/15 901.1 Th-234 0.05 ± 0.01 0.02 8/12/15 901.1 Pa-234m ND 0.02 0.07 8/12/15 901.1 U-233/234 0.15 ± 0.03 0.01 8/12/15 901.1 U-235 ND 0.01 0.01 8/12/15 901.1 U-238 0.06 ± 0.01 0.0.1 DocuSign Envelope ID: 448F9083·A76E-4EF1-9A95-3F616E433470 TABLE I (cont'd) Sample ID Sample Matrix EPA Analyses Results + 2 sigma MDA Date Method pCi/gram Error E000770 05-14-15 Solid SLUDGE CAKE (07:00) Analyses completed on: 8/25/15 900.0 Gross Alpha 1.48 ± 0.37 0.08 8/25/15 900.0 Gross Beta 1.35 ± 0.32 0.38 6/08/14 901.1 K-40 0.79 ± 0.03 0.27 8/13/15 901.1 1-131 ND 0.05 0.70 8/13/15 901.1 Mn-54 ND 0.01 0.01 8/13/15 901.1 Co-58 ND 0.01 0.01 8/13/15 901.1 Co-60 ND 0.01 0.01 8/13/15 901.1 Cs-137 ND 0.01 0.01 8/13/15 901.1 Eu-152 ND 0.01 0.02 8/13/15 901.1 Eu-154 ND 0.01 0.02 8/13/15 901.1 Eu-155 ND 0.01 0.01 8/13/15 901.1 lr-192 ND 0.01 0.01 8/13/15 901.1 Tl-208 ND 0.01 0.01 8/13/15 901.1 Pb-210 ND 0.01 0.02 8/13/15 901.1 Bi-212 ND 0.01 0.17 8/13/15 901.1 Pb-212 ND 0.01 0.01 8/13/15 901.1 Bi-214 ND 0.01 0 .16 8/13/15 901.1 Pb-214 ND 0.01 0.29 8/13/15 901.1 Ra-226 ND 0.01 0.02 8/13/15 901.1 Ac-228 ND 0.01 0.03 8/13/15 901.1 Th-228 ND 0.02 0.05 8/13/15 901.1 Th-230 ND 0.02 0.14 8/13/15 901.1 Th-232 ND 0.01 0 .03 8/13/15 901.1 Th-234 0.10 ± 0.01 0.03 8/13/15 901.1 Pa-234m ND 0.01 0.10 8/13/15 901.1 U-233/234 0.02 ± 0.01 0.02 8/13/15 901.1 U-235 ND 0.01 0.01 8/13/15 901.1 U-238 0.01 ± 0.01 0.01 DocuSign Envelope ID: 448F9D83-A76E-4EF1·9A95·3F616E43347D Sample ID Sample Matrix EPA Analyses Results ± 2 Sigma MDA Date Method pCi/gram Error E000765-01B 04-27-15 Solid ASH (00:00) Analyses completed on: 8/25/15 900.0 Gross Alpha 70.74 ± 11.97 1.67 8/25/15 900.0 Gross Beta 56.58 ± 6.79 6.46 8/14/15 901.1 K-40 3.89 ± 0.21 1.64 8/14/15 901.1 Mn-54 ND 0.01 0.07 8/14/15 901.1 Co-58 ND 0.01 0.07 8/14/15 901.1 Co-60 ND 0 .01 0.06 8/14/15 901.1 Cs-137 0 .15 ± 0.02 0.06 8/14/15 901.l Eu-152 ND 0.01 0.01 8/14/15 901.1 Eu-154 ND 0.01 0.03 8/14/15 901.1 Eu-155 ND 0.02 0.02 8/14/15 901.1 Ir-192 ND 0.01 0.02 8/14/15 901.1 Tl-208 0.01 ± 0.01 0.01 8/14/15 901.1 Pb-210 0.42 ± 0.02 0.10 8/14/15 901.1 Bi-212 2.20 ± 0.19 1.01 8/14/15 901.1 Pb-212 2.44 ± 0.24 0.98 8/14/15 901.1 Bl-214 0.44 ± 0.03 0.11 8/14/15 901.1 Pb-214 0.30 ± 0.02 0.14 8/14/15 901.1 Ra-226 0.43 ± 0.03 0.11 8/14/15 901.1 Ac-228 1.29 ± 0.12 0.69 8/14/15 901.1 Th-228 1.01 ± 0.05 0.32 8/14/15 901.1 Th-230 1.44 ± 0.03 0.16 8/14/15 901.1 Th-232 0.56 ± 0.03 0.09 8/14/15 901.1 Th-234 10.24 ± 0.12 0.18 8/14/15 901.1 Pa-234m 11.57 ± 0.47 0.98 8/14/15 901.1 U-233/234 9.65 ± 0.19 0.25 8/14/15 901.1 U-235 0.37 ± 0.01 0.05 8/14/15 901.1 U-238 10.89 ± 0.12 0.13 DocuSign Envelope ID: 448F9083·A76E-4EF1-9A95·3F616E43347D TABLE II QC RESULTS Sample ID Nuclide Laboratory Control Sample LCS Blank :J' a1irl.cia :Davi Patricia Davi QA/QC Manager Davi Laboratories Gross Alpha Gross Beta Co-60 Cs-137 Ra-226 U-233/234 U-235 U-238 Gross Alpha Gross Beta K-40 Mn-54 Co-58 Co-60 Cs-137 Eu-152 Eu-154 Eu-155 Pb-210 Ra-226 Th-230 Th-232 Pa-234m Bi-212 Pb-212 Bi-214 Pb-214 U-233/234 U-235 U-238 Results ± pCi/Sample 352.61 ± 587.71 ± 8131.74 ± 5328.58 ± 1131.25 ± 6517.11 ± 316.32 ± 6329.29 ± ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND ND 2 Sigma MDA Amount Evaluation Error added % Recovery Ci 3.63 0.75 386.65 91.17 6.17 0.05 604.45 97.23 48.11 0.09 8936.48 90.99 41.62 0.05 5513.26 96.65 9.86 0.07 1243.55 90.97 19.06 5.62 6800.06 95.84 3.10 2.11 340.00 93.03 32.41 16.47 6800.06 93.07 0.09 0.12 NA 0.42 0.91 NA 0.26 1.18 NA 0.01 0.02 NA 0.01 0.02 NA 0.01 0.02 NA 0.01 0.03 NA 0.01 0.02 NA 0.01 0.03 NA 0.01 0.02 NA 0.01 0.06 NA 0.01 0.09 NA 0.03 0.10 NA 0.01 0.10 NA 0.01 0.15 NA 0 .01 0.02 NA 0.01 0.09 NA 0.01 0.20 NA 0.02 0.06 NA 0.02 0.07 NA 0.03 0.05 NA 0.01 0.12 NA DocuS!gn Envelope ID: 448F9D83·A76E·4EF1·9A95·3F616E43347D PALO ALTO REGIONAL WATER QUALITY CONTROL PLANT INCINERATOR ASH REPORT FOR WET SEASON 2015 Sludge dewatering method: Belt filter presses followed by incineration FEB 2015 INCINERATOR QUARTERLY ASH REPORT TTLC STLC ~ Sample Collection Dates: 11/2014-1/2015; Composited 2/2/2015 !Extraction Date: II 2/6-10/2015 I Extraction Dates: 2/13-17/2015 Analytes IAnal}'.sis Date: II 2/11-18/2015 llAnal}'.sis Date: I 2/18/2015 TTLC Max. mg/kg I Method I RL/MDL Limit (mg/kg) (Wet (mg/kg) Weight) Antimony 500 2.0I1.5 5.4 A Arsenic 500 2.0 I .99 7.6 A Barium 10000 1,0 / .69 820 A Beryllium 75 4.0/ .15 ND A Cadmium 100 0.20 / .050 1.3 A Chromium 2500 1.0 I .20 63 A Cobalt 8000 0.40/ .20 17 A Copper 2500 4.0 I 0.40 1900 A Lead 1000 1.0 I 0.50 67 A Mercury 20 ,020 I .00080 ONQ D (.0014) Molybdenum 3500 2.0 I .99 34 A Nickel 2000 1.0 I .30 78 A Selenium 100 2.0 I 0.79 8.2 A Silver 500 1.0 I 0.15 18 A Thallium 700 2.0 I 0.69 2.3 A Vanadium 2400 0.40 I .20 70 A Zinc 5000 16/ 4.0 2200 A Cyanide -0.08/0.08 0.73 E Total Solid~ in Ash METHOD Analysis Date 100.0% F 2/9/2015 ND = Not detected at or above the detection limit. DNQ = Data not quantified, result between MDL and RL NOTE = All data in the table are based on Quarterly composites made up of ash from Nov, Dec and Jan. STLC Max. Limit (mg/L) 15 5 100 0.75 1 560 80 25 5 0.2 350 20 1 5 7 24 250 - B RL/MOL (mg/L) Method .050 I .010 20 B 0.10 I 0.030 44 B .050 I .020 0.21 B .0005/.0003 ND c 0.03 I .006 ND B [Methods A-E] Caltest Analytical [Method F] Palo Alto RWQCP A= SW846 -3050B/601 OBI B= SW846 -3010/6010B C= SW846 -7470A D =SW846 7471A E= SW846 9012 A F= SM 2540G I' 1 of 1 DoouSign Envelope ID: 448F9083-A76E-4EF1 -9A95-3F616E433470 PALO AL TO REGIONAL WATER QUALITY CONTROL PLANT INCINERATOR ASH REPORT FOR DRY SEASON 2015 Sludge dewatering method: Belt filter presses followed by incineration MAY 2015 INCINERATOR QUARTERLY ASH REPORT I TILC I STLC Sample Collection Dales: 212015-4/2015; Composited 5/4/2015 Extraction Date: I 5/6/2015 I Extraction Dates: 5/11-12/2015 Analytes Analysis Date: I 5/07-18/2015 llAnal}:'.sis Date: 115/13-14/2015 TTLC Max. mg/kg STLC B RUMDL Max. RL/MDL Limit (mg/kg) (Wet Method Limit (mg/L) Method (mg/kg) Weight) Antimony 500 2.0 / 1.5 3.5 A Arsenic 500 2.0/1.0 4.6 A Barium 10000 1.0/ .70 830 A Beryllium 75 5.0 I .15 ND A Cadmium 100 0.20 / .050 0.36 A Chromium 2500 1.0 I .20 70 A Cobalt 8000 0.401 .20 19 A Copper 2500 4.0 I 0.40 1900 A Lead 1000 1.0 I 0.50 55 A Mercury 20 .020 I .00080 DNQ D 0.0009 Molybdenum 3500 2.0 / 1.0 29 A Nickel 2000 1.0 / .30 81 A Selenium 100 2.0 I 0.80 7.9 A Sliver 500 1.0 I 0.15 14 A Thallium 700 2.0 I 0.70 2.6 A Vanadium 2400 0.40 I .20 77 A Zinc 5000 8.0/ 2.0 2000 A Cyanide -0.08/0.08 0.69 E Total Solids in Ash METHOD Analysis Date 100.0o/o F 5/7/2015 ND = Not detected at or above the detection limit. DNQ =Data not quantified, result between MDL and RL NOTE = All data in the table are based on Quarterly composites made up of ash from Feb, March, April. (mg/L) 15 5 100 0.75 1 560 80 25 5 0.2 350 20 1 5 7 24 250 --- .070 I .015 16 8 0.10 I 0.030 40 B .10 I .040 0.1 9 8 .0005/.0003 ND c 0.030 I .0060 ND B [Methods A·E] Caltest Analytical [Method F] Palo Alto RWQCP A= SW846 -30508/601 osl B= SW846 -3010/60108 C= SW846 -7 4 70A D =SW846 7471A E= SW846 9012 A F= SM 2540G I> 1 of 1 DocuSign Envelope ID: 448F9083-A76E-4EF1-9A95-3F616E433470 PALO AL TO REGIONAL WATER QUALITY CONTROL PLANT INCINERATOR ASH REPORT FOR DRY SEASON 2015 Sludge dewatering method: Belt filter presses followed by incineration AUG 2015 INCINERATOR QUARTERLY ASH REPORT TTLC STLC Sample Collection Dates: 5/2015-7/2015; Composited 8/3{2015 !Extraction Date: II 8107 -13/2015 I Extraction Dates: 8/13/2015 Analytes IAnaltsis Date: II 8/11-14/2015 llAnaltsis Date: I 8114-17/2015 TTLC Max. mg/kg I Method I RL/MDL Limit (mg/kg) (Wet (mg/kg) Weight) Antimony 500 2.0 / 1.5 3.9 A Arsenic 500 2.0 I 0.99 5.0 A Barium 10000 1.0 / .69 800 A Beryllium 75 4.0 I .15 ND A Cadmium 100 0.20 I .050 2.4 A Chromium 2500 1.0/-20 70 A Cobalt 8000 0.40/ .20 20 A Copper 2500 4.0 I 0.40 1960 A Lead 1000 1.0 /0.50 64 A Mercury 20 .020 I .00081 0.041 D Molybdenum 3500 2.0 I 0.99 56 A Nickel 2000 1.0 I .30 84 A Selenium 100 2.0 I 0.99 6.3 A Silver 500 1.0 I 0.15 16 A Thallium 700 2.0 I 0.69 DNQ 1.6 A Vanadium 2400 0.40 / .20 63 A Zinc 5000 16/ 4.0 2800 A Cyanide -·--0.080/0,080 0.44 E Total Solids jn Ash METHOD Analysis Date 100.0% F 8/6/2015 ND = Not detected at or above the detection limit. DNQ = Data not quantified, result between MDL and RL NOTE = All data in the table are based on Quarterly composites made up of ash from May, June, and July. STLC Max. Limit (mg/L) 15 5 100 0.75 1 560 80 25 5 0.2 350 20 1 5 7 24 250 --- EJ RL/MDL (mg/L) Method .15 I .070 19 B 0.10 I 0 .030 41 B .10/ .040 0.27 B .0005/.0003 ND c 0.03 / .006 ND B (Methods A-E] Caltest Analytical [Method F] Palo Alto RWQCP A= SW846 -30508/601081 B= SW846 -3010/60108 C= SW846 -7470A D =SW846 7471A E= SW846 9012 A F= SM 25408 1 of 1 DocuSlgn Envelope ID: 448F9083·A76E-4EF1·9A95·3F616E43347D PALO ALTO REGIONAL WATER QUALITY CONTROL PLANT INCINERATOR ASH REPORT FOR WET SEASON 2015 Sludge dewaterlng method: Belt filter presses followed by incineration NOV 2015 INCINERATOR QUARTERLY ASH REPORT I TTLC I STLC Sample Collection Dates: 8/2015-10/2015; Composited 10/26/2015 IPreeare Date: II 11 /17-24/2015 I Prepare Dates: 11/17-19/2015 Analytes IAnal~sis Date; II 11/10-25/2015 llAnal~sis Date: I 11/18-19/2015 TTLC Max. mg/kg STLC B RUMDL Max. RUMDL Limit (mg/kg) (Wet Method Limit (mg/L) Method (mg/kg) Weight) Antimony 500 2.0/1.5 4.0 A Arsenic 500 2.0/ 1.0 5.8 A Barium 10000 1.0 I .69 730 A Beryllium 75 4.0 I .15 ND A Cadmium 100 0.20 I .050 0.47 A Chromium 2500 1.0/.20 60.4 A Cobalt 8000 0.40/ .20 17 A Copper 2500 7.9 / 0.79 2000 A Lead 1000 1.0 I 0.50 59 A Mercury 20 .020 I .00080 0.043 D Molybdenum 3500 2.0 I 0.99 300 A Nickel 2000 1.0 I .30 77 A Selenium 100 2.0 I 0.99 4.5 A Silver 500 1.0 I 0.15 16 A Thallium 700 2.0 I 0.69 ONQ fJ.7 A Vanadium 2400 0.40 I .20 56 A Zinc 5000 16/ 4.0 2500 A Cyanide ---0.080/0.080 0.72 E Total S.ollds In Ash METHOD Analysis Date 100.0% F 11/6/2015 ND = Not detected at or above the detection limit. DNQ = Data not quantified, result between MDL and RL NOTE = All data in the table are based on Quarterly composites made up of ash from August, September, and October. {mg/L) 15 5 100 0.75 1 560 80 25 5 0.2 350 20 1 5 7 24 250 --- .15 / .070 12 B 0.10 I 0.030 46 B .05/ .040 0.07 B ,0005/0.0003 ND c 0.03 / .006 ND B [MethOc:!s A-El Caltest Analytical [Method F] Palo Alto RWQCP A= SW846 -3050B/6010Bj B= SW846 -3010/601 OB C= SW846 -7470A D =SW846 7471A E= SW846 9012 A F= SM 2540G EXHIBIT A-2 Ash Bin Cover [ ) [j -. ,· I -r DocuSign Envelope ID: 448F9083-A76E-4EF1-9A95-3F616E43347D EXHIBITB SCHEDULE OF PERFORMANCE CONTRACTOR shall perform the Services according to the following schedule: Ongoing services for a period of three(3) years. Rev. February 22, 2016 OocuSign Envelope ID: 448F9D83-A76E·4EF1-9A95-3F616E43347D E:XHIBITC SCHEIDULE OF FEES CITY shall pay CONTRACTOR according to the following rate schedule. The maxim1:im amount of compensation to be paid to CONTRACTOR, induding both payment for services and reimbursable expenses, shall not exceed the amounts set forth ih Sections S and 6 of the Agreement. Any services provided or hours worked for which payment would result In a total exceeding the maximum amount of compensation1 set forth herein shall be at no cost to CITY. Bid Item A-1 A-2 A-3 A-4 A-5 A-6 A-7 B-1 B-2 B-3 B-4 B-5 B-6 B-7 B-8 Bid Schedule Section A: ash hauling & disposal A: ash hauling & disposal A: ash hauling & disposal A: ash hauling & disposal A: ash hauling & disposal A: ash hauling & disposal A: ash hauling & disposal B: sludge hauling & disposal B: sludge hauling & disposal B: sludge hauling & disposal B: sludge hauling & disposal B: sludge hauling & disposal B: sludge hauling & disposal B: sludge hauling & disposal B: sludge hauling & disposal Price Increases Price Increases 1 PSC Industrial Outsourcing, LP De,scription Disposal cost of ash Transportation cost of ash: Liner installation fee for ash -per load Bin REmtal for ash CA Non-RCRA taxes for ash; based on the most current CA BOE schedule Local taxes for ash, as necessary, per ton Surcharges/foes for ash, lump sum Disposal cost of sludge Transportation cost for sludge Liner lnstallation ·fee for sludge -per load Bin Rental Local taxes, a.s necessary, per ton Surcharges/fees for sludge, lump sum Roll-off bin mobilization during backup sludge hauling service Onsite truck and truck driver to move empty and full bins in and out of incinerator building during backup sludge handling service UOM Qty TON 723 LOAD 53 LOAD 53 DAYS 365 TON 723 TON 723 LS 1 TON 150 LOAD 12 LOAD 12 DAYS 12 TON 150 LS 1 EA 6 HR 48 Contract Year 1, Total for Bid Schedules A and B price in1crease -Year 2 price increase -Year 3 % % 1 1 Contract Year 1, Total for Bid Schedules A and B Contract Year 2, Total for Bid Schedules A and B Contract Year 3, Total for Bid Schedules A and B UOM = unit of measurement; Qty= quantity; LS= lump sum; EA= each; HR= hour PSC1 Unit PSC1 line Price Total $65.00 $46,995.00 $1,200.00 $63,600.00 $50.00 $2,650.00 $9.00 $3,285.00 $23.23 $16,795.29 $6.50 $4,699.50 $0.00 $0.00 Subtotal $138,024.79 $22.00 $3,300.00 $600.00 $7,200.00 $50.00 $600.00 $9.00 $108.00 $0.00 $0.00 $0.00 $0.00 $450.00 $2,700.00 $95.00 $4,560.00 Subtotal $18,468.00 Subtotal $156,492. 79 3.00% 3.00% I 3yTotal $4,694.78 $4,835.63 $156,492.79 $161,187.57 $166,023.20 $483,703.56 OocuSign Envelope ID: 448F9083-A76E-4EF1-9A95-3F616E433470 EXHIBITD INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO AL TO (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 COMPANfES WITH AM BEST'S KEY RATING OF A-:Vll, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AW ARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES NO YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABlLITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGB BLANKET CONTRACTUAL, AND FlRE LEGAL BODJLY JNJURY & PROPBRTY $1,000,000 Sl,000,000 LIABILITY DA.i\.1AGE COMDINED. BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 AUTOMOBILE LIABJLITY, -EACH OCCURRENCE SJ,()00,000 $1,000,000 JNCLUDING ALL OWNED, HIRED, PROPBRTY DAMAGE $1,000,000 Sl,000.000 NON-OWNED BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DA.MAGE, COMBINED PROFESSIONAL LIABlLITY, INCLUDING. ERRORS AND OMlSSlONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000 000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAJN AND MAINTAIN, lN 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 ClTY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. 1. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR. A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR Of COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABJUTY ENDORSEMENT PROVlDTNG INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL 11. CONT ACTOR MUST SUBMJT CERTlFTCATES(S) OF INSURANCE EVlDENCING REQUIRED COVERAGE. JU. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL lNSUREDS" Rev. February 22, 2016 DocuSign Envelope ID: 448F9083-A76E-4EF1-9A95-3F616E43347D /I.. PRJMARYCQVERAOE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF TIIE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND rs NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS, B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, .FIRM, OR CORPORATION AS INSUREDS UNOER THE POLICY SHALL NOT, J:IOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAJNST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT TNCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER TIIIS POLICY. C. NOTICE OF CANCELLATlON I, IF THE POLICY JS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONTRACTOR 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 DA TE FOR THE NON- PAYMENT OF PREMIUM, THE CONTRACTOR SHALL PROVIDE CITY AT LEAST A TEN (I 0) DAY WRITiEN NOTICE BEFORE THE EFFECTIVE DATE OP CANCELLATION. NOTICES SHALL BE EMATLEO TO: l nsuranccCerts@CityofPaloAlto.or!! PURCHASING AND CONTRACT ADMINJSTRATION CJTY OF PALO ALTO P.O. BOX 10250 PALO AL T01 CA 94303 Rev. February 22, 2016 Attachment B: Bid Result Summary RFQ 161852: Transportation and Disposal of Ash and Sludge Bid  Item Bid Schedule Section Description UOM Qty PSC1 Unit  Price PSC1 Line  Total CH2 Unit  Price CH2 Line  Total A‐1A: ash hauling & disposal Disposal cost of ash TON 723 $65.00 $46,995.00 $68.00 $49,164.00 A‐2A: ash hauling & disposal Transportation cost of ash:LOAD 53 $1,200.00 $63,600.00 $3,200.00 $169,600.00 A‐3A: ash hauling & disposal Liner installation fee for ash ‐ per load LOAD 53 $50.00 $2,650.00 $57.00 $3,021.00 A‐4A: ash hauling & disposal Bin Rental for ash DAYS 365 $9.00 $3,285.00 $10.00 $3,650.00 A‐5A: ash hauling & disposal CA Non‐RCRA taxes for ash; based on the most current CA BOE schedule TON 723 $23.23 $16,795.29 $0.00 $0.00 A‐6A: ash hauling & disposal Local taxes for ash, as necessary, per ton TON 723 $6.50 $4,699.50 $0.00 $0.00 A‐7A: ash hauling & disposal Surcharges/fees for ash, lump sum LS 1 $0.00 $0.00 $0.00 $0.00 Subtotal $138,024.79 Subtotal $225,435.00 B‐1B: sludge hauling & disposal Disposal cost of sludge TON 150 $22.00 $3,300.00 $71.50 $10,725.00 B‐2B: sludge hauling & disposal Transportation cost for sludge LOAD 12 $600.00 $7,200.00 $710.80 $8,529.60 B‐3B: sludge hauling & disposal Liner installation fee for sludge ‐ per load LOAD 12 $50.00 $600.00 $31.83 $381.96 B‐4B: sludge hauling & disposal Bin Rental DAYS 12 $9.00 $108.00 $10.61 $127.32 B‐5B: sludge hauling & disposal Local taxes, as necessary, per ton TON 150 $0.00 $0.00 $0.00 $0.00 B‐6B: sludge hauling & disposal Surcharges/fees for sludge, lump sum LS 1 $0.00 $0.00 $300.00 $300.00 B‐7B: sludge hauling & disposal Roll‐off bin mobilization during backup sludge hauling service EA 6 $450.00 $2,700.00 $500.00 $3,000.00 B‐8B: sludge hauling & disposal Onsite truck and truck driver to move empty and full bins in and out of  incinerator building during backup sludge handling service HR 48 $95.00 $4,560.00 $100.79 $4,837.92 Subtotal $18,468.00 Subtotal $27,901.80 Contract Year 1, Total for Bid Schedules A and B Subtotal $156,492.79 Subtotal $253,336.80 Price Increases Estimated price increase ‐ Year 2 (see note 3)% 1 3.00% $4,694.78 3.00% $7,591.10 Price Increases Estimated price increase ‐ Year 3 (see note 3)%1 3.00% $4,835.63 3.00% $7,818.84 Contract Year 1, Total for Bid Schedules A and B $156,492.79 $253,336.80 Contract Year 2, Total for Bid Schedules A and B $161,187.57 $260,927.90 Contract Year 3, Total for Bid Schedules A and B $166,023.20 $268,746.74 1 PSC Industrial Outsourcing, LP 3y Total $483,703.56 3y Total $783,011.45 2 Clean Harbors Environmental Services, Inc. 3 Clean Harbors Environmental Services, Inc.; 2nd and 3rd year contract price increases on items A‐1, 2, 3, and 4, and B‐1, 2, 3, 4, 7, and 8 only UOM = unit of measurement; Qty = quantity; LS = lump sum; EA = each; HR = hour 1 of 1; 2/25/20162:28 PM Attachment C    SCHEDULE OF FEES  CITY shall pay CONTRACTOR according to the following rate schedule.  The maximum amount of  compensation to be paid to CONTRACTOR, including both payment for services and  reimbursable expenses, shall not exceed the amounts set forth in Sections 5 and 6 of the  Agreement.  Any services provided or hours worked for which payment would result in a total  exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY.      Page 1 of 2    See Page 2 for Bid Schedule  Attachment C Attachment C: Modified Fee Schedule Summary, Contract Years 2 and 3 C16161852: Transportation and Disposal of Ash and Sludge Bid  Item Bid Schedule Section Description UOM Qty PSC Unit Price PSC Line  Total Year 2 A‐1A: ash hauling & disposal Disposal cost of ash 2 TON 723 $135.00 $97,605.00 A‐2A: ash hauling & disposal Transportation cost of ash:LOAD 53 $1,236.00 $65,508.00 A‐3A: ash hauling & disposal Liner installation fee for ash ‐ per load LOAD 53 $51.50 $2,729.50 A‐4A: ash hauling & disposal Bin Rental for ash DAYS 365 $9.27 $3,383.55 A‐5A: ash hauling & disposal CA Non‐RCRA taxes for ash; based on the most current CA BOE schedule TON 723 $25.55 $18,472.65 A‐6A: ash hauling & disposal Local taxes for ash, as necessary, per ton TON 723 $7.15 $5,169.45 A‐7A: ash hauling & disposal Surcharges/fees for ash, lump sum LS 1 $0.00 $0.00 Subtotal $192,868.15 B‐1B: sludge hauling & disposal Disposal cost of sludge TON 150 $22.66 $3,399.00 B‐2B: sludge hauling & disposal Transportation cost for sludge LOAD 12 $618.00 $7,416.00 B‐3B: sludge hauling & disposal Liner installation fee for sludge ‐ per load LOAD 12 $51.50 $618.00 B‐4B: sludge hauling & disposal Bin Rental DAYS 12 $9.27 $111.24 B‐5B: sludge hauling & disposal Local taxes, as necessary, per ton TON 150 $0.00 $0.00 B‐6B: sludge hauling & disposal Surcharges/fees for sludge, lump sum LS 1 $0.00 $0.00 B‐7B: sludge hauling & disposal Roll‐off bin mobilization during backup sludge hauling service EA 6 $463.50 $2,781.00 B‐8B: sludge hauling & disposal Onsite truck and truck driver to move empty and full bins in and out of  incinerator building during backup sludge handling service HR 48 $97.85 $4,696.80 Subtotal $19,022.04 Contract Year 1, Total for Bid Schedules A and B Subtotal $156,492.79 Original Contract Year 2, Total for Bid Schedules A and B Subtotal $161,187.57 Add Y2 Funds Revised Contract Year 2, Total for Bid Schedules A and B Subtotal $211,890.19 $50,702.62 Price Increases Estimated price increase ‐ Year 3 1 % 1 3.00% $5,647.44 Original Contract Year 3, Total for Bid Schedules A and B $166,023.20 Add Y3 Funds Revised Contract Year 3, Total for Bid Schedules A and B $217,537.63 $51,514.43 Total Additional Fund $102,217.05 Note 1: 3rd year contract price increases on items A‐1, 2, 3, and 4, and B‐1, 2, 3, 4, 7, and 8 only Original Not To Exceed $483,703.56 Note 2: PSC price increase request on bid item A‐1 from $66.95/ton in contract year two for a new price of $135/ton Revised Not to Exceed $585,920.61 UOM = unit of measurement; Qty = quantity; LS = lump sum; EA = each; HR = hour Page  2 of 2 City of Palo Alto (ID # 8121) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: NCPA Professional Services Agreement Title: Adoption of a Resolution Approving a Professional Services Agreement Between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services in a Total Amount Not to Exceed $500,000 for a Three Year Term From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council adopt a resolution authorizing the City Manager, or his designee, to execute the Professional Services Agreement between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services for a three year contract term for Fiscal Years 2018 through 2020. The City’s share of the cost of the contract is not to exceed $500,000 over the three year term. Executive Summary The Northern California Power Agency (NCPA) provides contract management services to the Cities of Palo Alto and Santa Clara for consulting services related to electric transmission issues affecting them both. For consulting agreements executed by NCPA on behalf of one, or a subset of, NCPA members, and to which the members are not a party, NCPA requires that those members enter into a Professional Services Agreement with NCPA. The approval of this Professional Services Agreement with NCPA (Attachment B) is the subject of this report. NCPA has a separate contract with Flynn Resource Consultants, Inc. (Flynn RCI) to provide electric transmission consulting services to Palo Alto and Santa Clara. The current contract between NCPA and Flynn RCI, initially executed in June 2015, expires on June 30, 2017. In March 2017 NCPA issued an RFP for a consultant to provide these services and in April selected Flynn RCI for a three year contract starting July 1, 2017 for a total of $1,972,500, or $657,500 during each annual period of the agreement. Palo Alto’s share of the three year Flynn RCI contract and NCPA’s contract management fees will not exceed $500,000 for the full three year term, capped at $164,375 for FY 2018. A major benefit from these services is positioning Palo Alto to critically review transmission projects that will result in increases in high voltage transmission City of Palo Alto Page 2 charges, which are estimated to increase over the next five years from $10.7 million in FY 2017 to $13.2 million in FY 2022 for the City’s electric utility. Background NCPA is a joint powers agency whose members are publicly owned electric utilities, including Palo Alto (City). NCPA arranges for delivery of the City’s electric power on the electric transmission system to the point of interconnection with the City’s distribution system, and manages electric resources that the City jointly owns with other NCPA members. Following the 2000/2001 California electricity market crisis, the California Independent System Operator (CAISO) initiated a major redesign of the state’s electricity markets, in which the City participated with the consulting assistance of Flynn RCI. The Cities of Palo Alto, Alameda, and Santa Clara identified common interests in advocating for certain market design proposals, and formed the group referred to as the Bay Area Municipal Transmission Group, or BAMx. Recognizing their need for technical and regulatory consulting services, the BAMx members considered ways to reduce costs by sharing professional services. The options considered included forming a new joint powers agency that would then retain a consultant; entering into three separate consulting agreements with one consulting company; or working through NCPA. At the time the members decided that the best alternative was for NCPA to provide the consulting services, thereby reducing administrative costs and facilitating coordination with other NCPA members with common interests. Subsequently, in 2003, the BAMx members requested that NCPA provide professional services related to electric transmission, power generation, regulatory issues, and electric market design issues affecting the three cities. The wider NCPA membership was not engaged in the issues of interest to BAMx, so on March 1, 2003 NCPA entered into a consulting agreement with Flynn RCI to provide these services to the BAMx members. In FY 2017 the City of Alameda withdrew from BAMx and so now BAMx consists of the Cities of Palo Alto and Santa Clara. The annual budget for the Flynn RCI contract was reduced by $110,000 following Alameda’s withdrawal. Since March 2003, Flynn RCI has been representing BAMx in Bay Area electric transmission expansion planning processes, at CAISO proceedings related to electric market design in California, in filings at the Federal Energy Regulatory Commission, and in other regional electric transmission planning venues. BAMx, through Flynn RCI, its consultant, has also advocated for improved reliability of electricity transmission service in and to the Bay Area, has influenced the CAISO’s electric transmission planning process to provide for more effective stakeholder participation, and has persuaded the CAISO to take on the responsibility of forecasting the rapidly increasing transmission access charges. BAMx has also had some success in influencing the transmission interconnection process, thereby lowering the anticipated transmission access charge increases. Specific examples of recent activities that have resulted from the ongoing partnership between BAMx, NCPA and Flynn are listed below: City of Palo Alto Page 3  Active participation in the CAISO’s regionalization efforts. The CAISO started looking at options to expand its footprint to include PacifiCorp (an electric power company operating throughout the Northwestern United States). While expansion of the CAISO could bring benefits to California, the CAISO’s original proposal would have exposed California ratepayers to billions of dollars in increased transmission charges, which could increase Palo Alto’s electric transmission costs by $2-$4million per year. BAMx has leveraged its relationship with NCPA and the California Municipal Utilities Association to intervene in the CAISO’s regionalization proceedings and advocate for the City’s electric rate payers. The current political climate has dampened the support for regionalization, but it is likely to come up again as a solution to over-generation problems in California resulting from the state’s high volume of intermittent solar resources.  Participation in California Public Utilities Commission (CPUC) regulatory proceedings to question the need for a major transmission projects in Southern California, the cost of which is spread to Northern California ratepayers.  Development of a transmission cost forecasting model that became the basis for a CAISO forecasting model. The model provides information on the impacts of future transmission projects to electric ratepayers. Discussion As the current contract between NCPA and Flynn RCI expires on June 30, 2017, NCPA staff is preparing to execute a new agreement to continue the consulting services from Flynn RCI for FY 2018 through FY 2020, and this agreement is provided for information in Attachment C. NCPA requires the two BAMx members to execute a new Professional Services Agreement for the three-year term, which is the subject of this report and the attached Resolution. The Professional Services Agreement between NCPA and the BAMx members (Attachment B) states that NCPA is performing or providing these services at the request of the BAMx members, and formalizes NCPA’s role in processing invoices from Flynn RCI and allocating the monthly charges to each BAMx member. The allocation of charges between the BAMx members is based on the proportion of each member’s share of energy delivered, averaged over the past four years and fixed for the three-year contract term. The detailed cost allocation to the BAMx members is provided in Table 1. Table 1: Contract Cost Allocation per Year % Share Flynn Contract NCPA Admin Fee Total Palo Alto 25% $ 162,500 $ 1,875 $ 164,375 Santa Clara 75% $ 487,500 $ 5,625 $ 493,125 Total 100% $ 650,000 $ 7,500 $ 657,500 The agreement also contains provisions that limit NCPA’s liability and that of non-participating NCPA members, which NCPA requires in all of its agreements. The value to the City of participating in BAMx is the continued advocacy for fair and equitable City of Palo Alto Page 4 electric market rules, beneficial electric transmission solutions, and effective stakeholder participation in electric transmission planning processes. BAMx takes a lead role in advocating for rigorous economic and needs analyses in the CAISO’s transmission planning proceedings to build new transmission to potential renewable electric resource sites in remote locations. To put this in context for Palo Alto, every $100 million in transmission investments in the CAISO increases the high voltage transmission charge by six to seven cents, resulting in an increase in annual costs for the City’s electric portfolio of $60,000 to $70,000 (about 0.7% of the City’s 2015 high voltage transmission access cost of $9.5 million). Resource Impact The City’s share of the Flynn RCI contract is incorporated into the Electric Fund’s proposed budget for FY 2018. The Consulting Agreement between NCPA and Flynn RCI (Attachment C) specifies a not-to-exceed contract amount of $650,000 for FY 2018. NCPA will also charge an annual fee of $7,500 for monthly billing and contract preparation and review. The City’s share, outlined in Exhibit B (“Compensation Schedule and Hourly Fees”) of the Flynn RCI contract, is 25% of the total cost, or $164,375 per year. For the subsequent years of the contract the BAMx members will annually set the scope of work and budget up to a maximum of $650,000 per year. Funding necessary for the City’s share of the contract costs for FY 2018 and subsequent years will be contingent upon council approval. Policy Implications Entering into this agreement does not create new policy, is consistent with existing policy, and is consistent with the Utilities Strategic Plan’s focus on system reliability and cost control. Environmental Review The Council’s adoption of a resolution authorizing the City Manager to execute the attached professional services agreement does not require review under the California Environmental Quality Act, because it does not meet Public Resources Code Section 21065’s definition of a project. Attachments:  Attachment A: RESO NCPA Professional Services Agreement BAMx and Flynn RCI Draft  Attachment B: FY18 BAMx Professional Services Agreement  Attachment C: BAMx Consulting Services Agreement ATTACHMENT A NOT YET APPROVED 170531 jb 6053964 Resolution No. _______ Resolution of the Council of the City of Palo Alto Authorizing the City Manager to Execute the Professional Services Agreement Between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara For Electric Transmission, Generation and Regulatory Consulting Services R E C I T A L S A. The City of Palo Alto (“City”), a municipal utility and a chartered city, is a member of the Northern California Power Agency (“NCPA”). B. In 2003, Palo Alto, along with two other NCPA members, the Cities of Alameda and Santa Clara, formed the Bay Area Municipal Transmission Group (“BAMx”) and requested that NCPA provide professional consulting services related to electric transmission, power generation, regulatory issues, and electric market design issues affecting the BAMx members. C. Since 2003, NCPA has contracted with Flynn Resource Consultants, Inc. (“Flynn RCI”) to provide these consulting services to the BAMx members. D. The current contract between NCPA and Flynn RCI expires on June 30, 2017 and NCPA is executing a new contract with Flynn RCI to continue to provide these consulting services for Fiscal Year (FY) 2017 through FY 2020. E. In 2015, the City of Oakland, acting by and through its Board of Port Commissioners (the “Port of Oakland”) expressed a desire to join BAMx, and the BAMx members desired to add the Port of Oakland to their membership. F. In 2016, the Port of Oakland and City of Alameda both withdrew from BAMx membership (hereinafter, references to “BAMx” include the Cities of Palo Alto and Santa Clara). G. For consulting agreements executed by NCPA on behalf of one, or a subset of, NCPA members, NCPA requires that those members enter into a Professional Services Agreement with NCPA. H. The Professional Services Agreement between the BAMx members and NCPA specifies the terms and conditions under which NCPA will procure the requested professional consulting services from Flynn RCI and allocate charges between the BAMx members. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Council authorizes the City Manager, or his designee, to execute the Professional Services Agreement between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara for Electric Transmission, Generation, and Regulatory Consulting services, in an amount not to exceed $500,000 for Palo Alto’s share over the three year contract term. SECTION 2. The Council finds that funds to cover the City’s share of the Flynn RCI contract for the first year of the contract are allocated in the Electric Fund’s proposed budget for FY 2018. ATTACHMENT A NOT YET APPROVED 170531 jb 6053964 SECTION 3. The Council finds that the adoption of this resolution does not require review under the California Environmental Quality Act, because it does not meet Public Resources Code Section 21065’s definition of a project. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ _____________________________ Senior Deputy City Attorney City Manager _____________________________ Director of Utilities _____________________________ Director of Administrative Services 1 BAMx PROFESSIONAL SERVICES AGREEMENT PROFESSIONAL SERVICES AGREEMENT BETWEEN NORTHERN CALIFORNIA POWER AGENCY AND THE CITIES OF PALO ALTO AND SANTA CLARA (THE "BAY AREA MUNICIPAL TRANSMISSION SERVICES AGREEMENT" OR "BAMx AGREEMENT") This Professional Services Agreement (“Agreement”) is made by and between the Northern California Power Agency (“NCPA”), a joint powers agency, and the Cities of Palo Alto and Santa Clara (each referred to as a "Contracting Member" and jointly referred to as “Contracting Members” or "BAMx Participants"). NCPA and the Contracting Members are together sometimes referred to herein individually as a “Party” and collectively as “the Parties.” This Agreement is made as of ___________, 20__ (the “Effective Date”) in Roseville, California. Section 1. RECITALS This Agreement is entered into based on the following facts, among others: 1.1 NCPA is a public agency created by a joint powers agreement established under California law for the purpose of assisting its members in the efficient use of their common powers. 1.2 Contracting Members are engaged in, among other things, transmitting and distributing electric power within their respective corporate limits. Contracting Members are also each a member of NCPA. Contracting Members jointly desire that NCPA provide Contracting Members with the Services described in this Agreement. 1.3 Article III, section 3 of the “Amended and Restated Northern California Power Agency Joint Powers Agreement” (as amended and effective January 1, 2008) (hereinafter “JPA”) entitled “Powers and Functions” provides that "none of the debts, liabilities or obligations of NCPA shall be the debts, liabilities or obligations of any of the members of NCPA unless assumed in a particular case by resolution of the governing body of the member to be charged." Notwithstanding the foregoing, Article V, section 1 of the JPA entitled “General Provisions” provides that “[t]he governing Commission of NCPA is authorized to procure public liability and other insurance as it deems advisable to protect NCPA and each of the parties hereto, charging the cost thereof to the operating costs of NCPA.” 1.4 Contracting Members desire to secure NCPA’s Services under this Agreement in a manner that balances their interests and the interests of other NCPA Members with the ongoing financial viability and professional responsibilities of NCPA. Accordingly, Contracting Members desire to secure NCPA’s Services under this Agreement by accepting a limited insurance based recourse against NCPA, with the option of procuring additional insurance at Contracting Members' sole expense. By so doing, the Parties thereby ensure that NCPA will substantially limit its risk for the provision of such Services and allocates risks back to the Contracting Members in the event NCPA is not adequately insured. ATTACHMENT B 2 BAMx PROFESSIONAL SERVICES AGREEMENT 1.5 The Parties have previously entered into a professional services agreement for this same purpose dated as of July 1, 2016 (“the Prior Agreement”) the term of which ends on June 30, 2017. NOW THEREFORE, in consideration of the mutual covenants and promises set forth, NCPA and Contracting Members agree as follows: Section 2. DEFINITIONS Whenever used in this Agreement with initial capitalization, these terms shall have the following meanings as applicable, whether in the singular or plural: 2.1 “Consultant” shall mean Flynn Resource Consultants Inc. 2.2 “Consulting Services Agreement” shall mean the Consulting Services Agreement Between the Northern California Power Agency and Flynn Resource Consultants Inc., dated as of ___________________, 20__, as such may be amended from time to time. 2.3 “Good Utility Practice” shall mean any of the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result of the lowest reasonable cost consistent with good business practices, reliability, safety and expedition and the requirements of the Northern American Electric Reliability Corporation ("NERC") or Western Electric Coordinating Council ("WECC") Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. 2.4 “NCPA Members” shall mean the signatories to the JPA or those agencies which have executed an Associate Member Agreement with NCPA. 2.5 “Stranded Costs” shall mean all costs incurred by NCPA in providing Services to Contracting Members under this Agreement that could not reasonably be avoided by NCPA from the date it receives a written Notice of Termination. Such costs may include, but not be limited to, salary and employment costs, rent, utilities, or contracts incurred to provide Services under this Agreement. In this regard, Contracting Members acknowledge that NCPA will be entering into professional services agreements with third persons under the terms of this Agreement, and that sums owing to such third persons may become Stranded Costs upon termination of this Agreement. 2.6 “Uncontrollable Forces” shall mean any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, storm, flood, earthquake, explosion, any curtailment, order, regulation or restriction imposed by governmental, military or lawfully established civilian authorities or any other cause beyond the reasonable control which could not be avoided through the exercise of Good Utility Practice. 3 BAMx PROFESSIONAL SERVICES AGREEMENT Section 3. SERVICES TO BE PROVIDED; AUTHORIZED REPRESENTATIVES; STANDARD OF PERFORMANCE 3.1 This Agreement is entered into by the Parties in order for NCPA to provide services to Contracting Members for the services described in Exhibit A hereto (“Services”). The Services do not include supervision of the performance of any of the third persons with whom contracts are entered into; such supervision shall be provided by the Contracting Members. 3.2 The following are the authorized representatives of the Parties (“Authorized Representatives”) for contract administration purposes under this Agreement: NCPA: David Dockham, Dave.Dockham@ncpa.com Assistant General Manager Northern California Power Agency 651 Commerce Drive Roseville, CA 95678 916-781-4207 Fax 916-781-4255 PALO ALTO: Debra Lloyd, Debra.LLoyd@cityofpaloalto.org Utilities Compliance Manager City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 650-329-2369 Fax: 650-326-1507 SANTA CLARA: Kathleen Hughes, khughes@SantaClaraCA.gov Acting Division Manager 881 Martin Ave. Santa Clara, CA 95050 408-615-6632 Fax: 408-261-2717 No Authorized Representative is authorized to amend any provision of this Agreement except in accordance with Section 12.16. 3.3 Standard of Performance. NCPA will perform the Services using that level of skill and attention reasonably required to complete the Services in a competent and timely manner. 3.4 Assignment of Personnel. NCPA shall assign only competent personnel to perform Services pursuant to this Agreement. In the event that Contracting Members, in their sole discretion, at any time during the term of this Agreement, jointly desire the reassignment of any 4 BAMx PROFESSIONAL SERVICES AGREEMENT such persons, NCPA shall, immediately upon receiving notice from each Contracting Member of such desire of the Contracting Members, reassign such person or persons. 3.5 Time. NCPA shall devote such time to the performance of Services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 3.3, above and to satisfy NCPA’s obligations hereunder. Section 4. TERM AND TERMINATION 4.1 Authorization to Perform Services. NCPA is not authorized to perform any Services or incur any costs whatsoever under the terms of this Agreement until its receipt of a written resolution and/or other appropriate/applicable authorization from each Contracting Member’s governing body confirming each Contracting Member’s authority to enter into this Agreement and confirming that each Contracting Member has allocated funds for and approved contract payments to NCPA under this Agreement. 4.2 Term. The term of this Agreement shall begin on the Effective Date and shall end on June 30, 2020. 4.3 Early Termination and Stranded Costs. This Agreement may be terminated by either NCPA or by the Contracting Members, upon 30 days written notice to all other Parties (“Notice of Termination”). Provided, however, that a Notice of Termination on behalf of the Contracting Members shall be executed by each Contracting Member to be effective. In the event of an early termination, Contracting Members shall pay NCPA for all fees and costs required under this Agreement through the effective date of their Notice of Termination plus all Stranded Costs. Upon payment of the above amounts, no Parties shall have any further obligations under this Agreement except as otherwise set forth in Section 5.7 regarding the survival of defense and indemnity obligations. Section 5. INDEMNITY AND INSURANCE 5.1 Limitation of NCPA’s Liability. 5.1.1 Except as provided in this section 5.1, NCPA shall not at any time be liable for any injury or damage occurring to Contracting Members or any other person or property from any cause whatsoever arising out of this Agreement. 5.1.2 The provisions of section 5.1.1 shall not apply where the injury or damage occurring to Contracting Members is caused by the negligence of NCPA or of any employee, agent or contractor of NCPA; provided that any liability under this subsection is limited to the extent of the actual coverage and coverage limits of the NCPA insurance policies described in this Section 5. 5.1.3 Notwithstanding Section 5.1.2 above, the Contracting Members agree to reimburse NCPA, in a timely manner, for all deductibles and/or self-insured retentions payable for any claim, liability or damage arising out of this Agreement. 5 BAMx PROFESSIONAL SERVICES AGREEMENT 5.2 Indemnification of NCPA. Except as specified in Section 5.1.2 above, Contracting Members shall, at their sole cost and expense, indemnify and hold harmless NCPA and all associated, affiliated, allied, member and subsidiary entities of NCPA, now existing or hereinafter created, and their respective officers, boards, commissions, employees, agents, attorneys, and contractors (hereinafter referred to as “Indemnitees”), from and against any and all liability, obligation, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or be asserted against the Indemnitees arising out of this Agreement. 5.3 Defense of Indemnitees. In the event any action or proceeding shall be brought against the Indemnitees by reason of any matter for which the Indemnitees are indemnified hereunder, Contracting Members shall, upon reasonable prior written notice from any of the Indemnitees, at Contracting Members' sole cost and expense, resist and defend the same with legal counsel mutually selected by Indemnitee and the Contracting Members, unless mutual selection of counsel is expressly prohibited by an applicable insurance policy; provided however, that neither Indemnitee nor Contracting Members shall admit liability in any such matter or on behalf of the other without express written consent, which consent shall not be unreasonably withheld or delayed, nor enter into any compromise or settlement of any claim for which Indemnitees are indemnified hereunder without prior express written consent. The Contracting Members' duty to defend shall begin upon receipt of a written notice identifying with specificity the allegations that give rise to this duty to defend. 5.4 Notice. The Parties shall give each other prompt notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this Section 5. 5.5 Insurance. During the term of the Agreement and prior to beginning any work under this Agreement, NCPA shall maintain, or cause to be maintained, in full force and effect, and at its sole cost and expense, the types and limits of insurance as are annually approved by the governing Commission of NCPA. NCPA warrants and represents that the types of insurance and coverage limits that are approved by the governing Commission of NCPA are in full force and effect and shall remain so during the term of this Agreement unless NCPA gives prior written notification (of not less than 15 days) of modification, cancellation or rescission of such coverage. 5.6 Contracting Members' Acknowledgment of Option to Secure Additional Insurance. The Contracting Members acknowledge that there are limitations on NCPA’s liability to the Contracting Members under this Section 5 and that the Contracting Members may need to purchase additional insurance of their own to cover the additional risks and the potential additional liabilities they are assuming under this Agreement. Contracting Members agree that they will, with respect to any additional insurance they obtain or which is otherwise available to Contracting Members, cause their insurers to issue an endorsement providing a waiver of subrogation rights as to Indemnitees. 5.7 Survival of Obligations. The defense and indemnity obligations of Section 5 shall survive the termination of this Agreement. 6 BAMx PROFESSIONAL SERVICES AGREEMENT Section 6. COMPENSATION 6.1 Charges for Services. Charges for the Services shall be billed separately to each Contracting Member in accordance with Exhibit B of this Agreement. 6.2 Security Deposit. Contracting Members shall each maintain on deposit in its General Operating Reserve Account held at NCPA the sum of Zero Dollars ($0) as security to NCPA for liabilities NCPA could incur under this Agreement. Contracting Members hereby authorize NCPA to reserve and commit this sum in its General Operating Reserve Account for the payment of the aforementioned liabilities should same become necessary. Interest on monies held by NCPA pursuant to this section shall be credited in accordance with the then standard practices of NCPA relating to the General Operating Reserve Account. Section 7. BILLING AND PAYMENT 7.1 Invoices. NCPA shall submit invoices to Contracting Members, not more often than once a month during the term of this Agreement, for Services performed and reimbursable costs incurred prior to the invoice date. 7.2 Monthly Payment. Contracting Members shall make monthly payments, based on invoices received, for Services performed, and for authorized reimbursable costs incurred. Contracting Members shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay NCPA. Any amount due on a day other than a business day, i.e., any day except a Saturday, Sunday, or a Federal Reserve Bank holiday, may be paid on the following business day. If all or any portion of a bill is disputed by Contracting Members, the entire amount of the bill shall be paid when due, and NCPA’s Authorized Representative shall be concurrently provided written notice of the disputed amount and the basis for the dispute. NCPA shall reimburse any amount determined to have been incorrectly billed, within ten (10) days after such determination. Amounts which are not paid when due shall bear interest computed on a daily basis until paid at the lesser of (i) the per annum prime rate (or reference rate) of the Bank of America NT & SA, or its successor, then in effect, plus two per cent (2%) or (ii) the maximum rate permitted by law. The provisions of this Section 7 shall survive expiration of this Agreement until satisfied. 7.3 Contracting Members shall pay for the Services pursuant to this Agreement. Contracting Members shall not pay any additional sum for any expense or cost whatsoever incurred by NCPA in rendering Services pursuant to this Agreement. Contracting Members shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall NCPA submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment in accordance with this Agreement. 7 BAMx PROFESSIONAL SERVICES AGREEMENT 7.4 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown on the following fee schedule attached hereto as Exhibit B. 7.5 Reimbursable Expenses. Reimbursable expenses are specified in Exhibit B. Expenses not listed in Exhibit B are not chargeable to Contracting Members. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded. 7.6 Payment of Taxes. NCPA is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes. 7.7 Payment upon Termination. In the event that Contracting Members or NCPA terminates this Agreement pursuant to Section 4, Contracting Members shall compensate the NCPA for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written Notice of Termination. NCPA shall maintain adequate logs and timesheets in order to verify costs incurred to that date. 7.8 Authorization to Perform Services. NCPA is not authorized to perform any Services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from each of the Contracting Members’ Authorized Representative following receipt of the required approvals under the terms of this Agreement. 7.9 The addresses of Contracting Members to which invoices shall be sent is: Debra Lloyd Utilities Compliance Manager City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 650-329-2369 Fax: 650-326-1507 Bob Kazlauskas City of Santa Clara Attn: Electric Department 1500 Warburton Ave Santa Clara, CA 95050 Bkazlauskas@svpower.com 408-615-6688 Fax: 408-261-2717 Section 8. STATUS OF NCPA; FACILITIES AND EQUIPMENT 8.1 Independent Contractor. At all times during the term of this Agreement, NCPA shall be an independent contractor and shall not be an employee of Contracting Members. Contracting Members shall have the right to control NCPA only insofar as the results of NCPA's Services rendered pursuant to this Agreement and assignment of personnel pursuant to Section 3.4; 8 BAMx PROFESSIONAL SERVICES AGREEMENT however, otherwise Contracting Members shall not have the right to control the means by which NCPA accomplishes Services rendered pursuant to this Agreement. Notwithstanding any other agency, state, local or federal policy, rule, regulation, law, or ordinance to the contrary, NCPA and any of its employees, agents, and subcontractors providing Services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by Contracting Members, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of Contracting Member and entitlement to any contribution to be paid by Contracting Members for employer contributions and/or employee contributions for PERS benefits. 8.2 Facilities and Equipment. The facilities and equipment that may be necessary to perform the Services required by this Agreement shall be provided as follows: None. Section 9. UNCONTROLLABLE FORCES 9.1 Obligations of the Parties, other than those to pay money when due, shall be excused for so long as and to the extent that failure to perform such obligations is due to an Uncontrollable Force; provided, however, that if either Party is unable to perform due to an Uncontrollable Force, such Party shall exercise due diligence to remove such inability with reasonable dispatch. Nothing contained in this Agreement shall be construed as requiring a Party to settle any strike, lockout, or labor dispute in which it may be involved, or to accept any permit, certificate, contract, or any other service agreement or authorization necessary for the performance of this Agreement which contains terms and conditions which a Party determines in its good faith judgment are unduly burdensome or otherwise unacceptable. 9.2 Each Party shall notify the other promptly, by telephone to the other Party’s operating personnel and Authorized Representative identified in Section 3.2, upon becoming aware of any Uncontrollable Force which may adversely affect the performance under this Agreement. A Party shall additionally provide written notice in accordance with Section 12.8 to the other Party within 24 hours after providing. Each Party shall notify the other promptly, when an Uncontrollable Force has been remedied or no longer exists. Section 10. LEGAL REQUIREMENTS 10.1 Governing Law. The laws of the State of California shall govern this Agreement, without regard for the choice of law doctrine. 10.2 Compliance with Applicable Laws. NCPA and any subcontractors shall comply with all laws applicable to the performance of the Services hereunder. 10.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, NCPA and any subcontractors shall comply with all applicable rules and regulations to which Contracting Member is bound by the terms of such fiscal assistance program. 10.4 Licenses and Permits. NCPA represents and warrants to Contracting Member that 9 BAMx PROFESSIONAL SERVICES AGREEMENT NCPA and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that is legally required to practice their respective professions. NCPA represents and warrants to Contracting Member that NCPA and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. 10.5 Nondiscrimination and Equal Opportunity. NCPA shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by NCPA under this Agreement. NCPA shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of NCPA thereby. Section 11. KEEPING AND STATUS OF RECORDS. 11.1 Records Created as Part of NCPA’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that NCPA prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the Contracting Members. NCPA hereby agrees to deliver those documents to the Contracting Members upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the Contracting Members and are not necessarily suitable for any future or other use. Contracting Members and NCPA agree that, until final approval by Contracting Members, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both Parties, except as may otherwise be required by applicable law. 11.2 NCPA’s Books and Records. NCPA shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the Contracting Members under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the NCPA to this Agreement. 11.3 Inspection and Audit of Records. Any records or documents that Section 11.2 of this Agreement requires NCPA to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the Contracting Member. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the Agreement shall be subject to the examination and audit of the State Auditor, at the request of any Contracting Member or as part of any audit of any of the Contracting Members, for a period of three (3) years after final payment under the Agreement. 10 BAMx PROFESSIONAL SERVICES AGREEMENT 11.4 Confidential Information and Disclosure. During the term of this Agreement, any Party (“Disclosing Party”) may disclose confidential, proprietary or trade secret information (the “Information”), to another Party (“Receiving Party”). All such Information made available in a tangible medium of expression (such as, without limitation, on paper or by means of magnetic tapes, magnetic disks or other computer media) shall be marked in a prominent location to indicate that it is the confidential, proprietary and trade secret information of Disclosing Party at the time of disclosure to Receiving Party. Receiving Party shall hold Disclosing Party’s Information in confidence and shall take all reasonable steps to prevent any unauthorized possession, use, copying, transfer or disclosure of such Information. Receiving Party shall not attempt to reverse engineer or in any manner create any product or information which is similar in appearance to or based on the Information provided by Disclosing Party. Receiving Party shall not disclose Disclosing Party’s Information to any person other than Receiving Party’s employees, agents, contractors and subcontractors who have a need to know in connection with this Agreement. Receiving Party’s confidentiality obligations hereunder shall not apply to any portion of Disclosing Party’s Information which: (a) Has become a matter of public knowledge other than through an act or omission of Receiving Party; (b) Has been made known to Receiving Party by a third party in accordance with such third party’s legal rights without any restriction on disclosure; (c) Was in the possession of Receiving Party prior to the disclosure of such Information by Disclosing Party and was not acquired directly or indirectly from the other Party or any person or entity in a relationship of trust and confidence with the other Party with respect to such Information; (d) Receiving Party is required by law to disclose; or (e) Has been independently developed by Receiving Party from information not defined as "Information" in this Agreement, as evidenced by Receiving Party's written records. Receiving Party shall return or destroy Disclosing Party’s Information (including all copies thereof) to Disclosing Party promptly upon the earliest of any termination of this Agreement or the Disclosing Party’s written request. Notwithstanding the foregoing, Receiving Party may retain one copy of such Information solely for archival purposes, subject to the confidentiality provisions of this Agreement. The parties understand that each Party is a public entity and is subject to the laws that may compel either to disclose information about the other’s business. Section 12. MISCELLANEOUS PROVISIONS 12.1 Attorneys’ Fees. If a Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that Party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose. 12.2 Venue. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts 11 BAMx PROFESSIONAL SERVICES AGREEMENT of California in the County of Placer or in the United States District Court for the Eastern District of California. 12.3 Severability. If any provision of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, or if any provision of this Agreement is rendered invalid or unenforceable by federal or state statute or regulation, but the remaining portions of the Agreement can be enforced without failure of material consideration to any Party, then the remaining provisions shall continue in full force and effect. To that end, this Agreement is declared to be severable. Provided, however, that in the event any provision is declared to be invalid, void or unenforceable, any Party may terminate this Agreement upon 10 days written notice given within five (5) days of receipt of notice of final entry of judgment. 12.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 12.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties. 12.6 Use of Recycled Products. NCPA shall endeavor to prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper. 12.7 Conflict of Interest. NCPA shall not employ any Contracting Members' official or employee in the work performed pursuant to this Agreement. No officer or employee of Contracting Member shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. 12.8 Notices. Unless this Agreement requires otherwise, any notice, demand or request provided for in this Agreement, or served, given or made shall become effective when delivered in person, or sent by registered or certified first class mail, to the persons specified below: NCPA: David Dockham Assistant General Manager – Power Management Northern California Power Agency 651 Commerce Drive Roseville, CA 95678 With a copy to: Jane Luckhardt – General Counsel Northern California Power Agency 651 Commerce Drive, Roseville, CA 95678 PALO ALTO: Ed Shikada 12 BAMx PROFESSIONAL SERVICES AGREEMENT Assistant City Manager & Utilities General Manager City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 With a copy to: Amy Bartell, Senior Deputy City Attorney City of Palo Alto c/o City Attorney’s office P.O. Box 10250 Palo Alto, CA 94303 SANTA CLARA: Kathleen Hughes, Acting Division Manager City of Santa Clara 1500 Warburton Ave Santa Clara, CA 95050 With a copy to: Brian Doyle, Interim City Attorney City of Santa Clara 1500 Warburton Ave Santa Clara, CA 95050 Whenever it is required, permitted, or desired in this Agreement that written notice or demand be given by any Party to any other Party, such notice or demand may be either personally served or sent by United States Mail, or facsimile. Notice shall be deemed to have been given when personally served, when deposited in the United States Mail, certified or registered with postage prepaid and properly addressed, or when transmitted by facsimile provided however, notices delivered by facsimile shall only be effective if delivered during regular business hours on a day that is considered a regular business day for NCPA by the involved Parties. 12.9 Integration; Incorporation. This Agreement, including all the Exhibits attached hereto, represents the entire and integrated agreement between Contracting Members and NCPA relating to the subject matter of this Agreement, and supersedes all prior negotiations, representations, or agreements, either written or oral. All Exhibits attached hereto are incorporated by reference herein. 12.10 Dispute Resolution. If any dispute arises between the Parties that cannot be settled after engaging in good faith negotiations, Contracting Members and NCPA agree to resolve the dispute in accordance with the following: 12.10.1 Each Party shall designate a senior management or executive level representative to negotiate any dispute; 12.10.2 The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority. 13 BAMx PROFESSIONAL SERVICES AGREEMENT 12.10.3 If the issue remains unresolved after sixty (60) days of good faith negotiations, despite having used their best efforts to do so, either Party may pursue whatever other remedies may be available to it. 12.10.4 This informal resolution process is not intended to nor shall be construed to change the time periods for filing a claim or action specified by Government Code § 900, et seq. 12.11 Other Agreements. This Agreement is not intended to modify or change any other agreement between any of the Parties, individually or collectively. Without limiting the generality of the foregoing, this Agreement does not amend or extend the Prior Agreement. 12.12 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. 12.13 Obligations of Contracting Members Joint and Several; No Joint Venture. The duties, obligations and liabilities of the Contracting Members, including the obligations to make payments to NCPA, are intended to be joint and several. Provided that nothing contained in this Agreement shall be construed to create an association, trust, partnership or joint venture or to impose a trust or partnership duty, obligation or liability on or with regard to the Contracting Members. 12.14 Effect of Section Headings. Section headings and subheadings appearing in this Agreement are inserted for convenience only and shall not be construed as interpretation of text. 12.15 Authority of Signatories. The signatories hereby represent that they have been appropriately authorized to execute this Agreement on behalf of the Party for whom they sign. 12.16 Amendments. Unless otherwise provided for in this Agreement, the Parties may amend this Agreement only by a writing signed by all the Parties following each Party’s receipt of written resolution/authorization from their governing bodies, which resolutions/authorizations shall be condition precedents to any amendments of this Agreement and shall be attached as exhibits to this Agreement. 14 BAMx PROFESSIONAL SERVICES AGREEMENT The Parties have executed this Agreement as of the Effective Date. NORTHERN CALIFORNIA POWER AGENCY ________________________________ RANDY S. HOWARD, General Manager Attest: ________________________________ Assistant Secretary of the Commission Approved as to Form: ________________________________ General Counsel CONTRACTING MEMBERS: CITY OF PALO ALTO Approved as to Form: By: ____________________________ By:_______________________________ City Attorney Its:_____________________________ CITY OF SANTA CLARA Approved as to Form By: ____________________________ By:_______________________________ City Attorney Its:_____________________________ 15 BAMx PROFESSIONAL SERVICES AGREEMENT EXHIBIT A SERVICES NCPA will enter into the Consulting Services Agreement on behalf of the Contracting Members, so that NCPA may assist the Contracting Members in securing access to consulting services related to electric transmission, power generation, regulatory and electric market design issues affecting the Contracting Members. NCPA’s primary role as to the Services provided under this Agreement is to act as contract administrator and billing agent on behalf of the Contracting Members, as further described herein. For the purpose of administering Services provided under this Agreement, each Contracting Member shall be represented by its Authorized Representative. During the term of this Agreement, the Authorized Representative for each Contracting Member is responsible for coordinating all requests for Services made to Consultant, and shall manage all related activities as further described herein. A Contracting Member may designate a new or alternative Authorized Representative by providing written notice of such designation to NCPA; such action shall not be treated as an amendment to this Agreement. The Contracting Members and Consultant intend to pursue the activities listed below during the term of this Agreement, pursuant to the Consulting Services Agreement. Such activities will include monitoring, meeting participation, coordinating with affected or other participating parties, and, as necessary, preparing and submitting formal position submittals. The Services provided in accordance with this Agreement and the Consulting Services Agreement are described below: 1. Grid Planning Activities: a. CAISO Regionalization Process, Transmission Access Charge, Governance and Resource Adequacy; i. Coordination with the California Municipal Utilities Association and Northern California Power Agency on these activities b. CAISO/PG&E annual transmission expansion planning process; c. Support or oppose specific transmission additions; d. Greater Bay Area long term studies; e. CAISO local capacity technical study process; f. Other regional and sub-regional transmission planning activities; g. CAISO Tariff and BPM Change Management Process; h. Generator Interconnection Procedure; i. Transmission cost minimization; j. Impacts due to potential generation retirements; k. Transmission for renewables deliverability issues; l. CTPG planning process; and m. Tracy to Bay development activities. 2. CPUC and CEC transmission matters: a. Integrated Energy Policy Report; 16 BAMx PROFESSIONAL SERVICES AGREEMENT b. Resource adequacy issues; c. Renewable Portfolio Standard issues; d. Long Term Procurement issues; e. Approval of CPCNs and PTCs for new transmission lines; and f. Renewable Energy Transmission Initiative (RETI 2.0). 3. CAISO Market Issues: a. CAISO markets proceedings and implementation matters; b. Resource Adequacy / Local Capacity/ Flexible Capacity/ Deliverability; c. LMP congestion and losses incidence and impacts; and d. Regionalization and New Participating Transmission Owner Issues. 4. Communicate Regularly with Contracting Members: a. Client meetings, telephone conferences and written summaries of activities on key issues. NCPA will accept invoices from Consultant and transmit them to each Contracting Members’ Authorized Representative, or their designee, for their review, and if acceptable, the Contracting Members’ Authorized Representative will direct payment by NCPA. Such payment direction shall be provided by each Contracting Members’ Authorized Representative, in writing, utilizing appropriate approval forms as shall be developed and/or revised by NCPA from time to time. An example of such form is included in Exhibit C of this Agreement. NCPA will prepare invoices indicating the share of Consultant's costs to be paid by each Contracting Member along with the appropriate charges by NCPA for its services; however, as provided in the Agreement, each Contracting Member is jointly and severally liable for the entirety of any amounts billed under this Agreement. NCPA will then pay Consultant utilizing Contracting Members' funds. Contracting Members will be solely responsible for payment of the Consultant’s invoices, as well as determining whether or not the Services have been satisfactorily performed. The Services under this Agreement by NCPA to Contracting Members are limited to contract administration and billing/payment functions. 17 BAMx PROFESSIONAL SERVICES AGREEMENT EXHIBIT B COMPENSATION SCHEDULE AND HOURLY FEES Compensation for all Services performed pursuant to this Agreement, including hourly fees and expenses, shall not exceed One Million Nine Hundred Seventy Two Thousand Five Hundred Dollars ($1,972,500.00) during the Term of the Agreement, or Six Hundred Fifty Seven Thousand Five Hundred Dollars ($657,500.00) during each annual period of the Term of the Agreement. The compensation schedule and hourly fees for Services are as follows: 1. Monthly charges for Services provided by NCPA for billing and contract preparation under this Agreement shall be Six Hundred Twenty Five Dollars ($625.00) per month. Such charges will be allocated to the Contracting Members in accordance with the allocation percentages listed in Table 1 of this Exhibit B. 2. Compensation paid to Consultant for all Services, including hourly fees and expenses, shall not exceed the amounts set forth in Section 2 of the Consulting Services Agreement. The compensation schedule and hourly fees for Services rendered by Consultant to Contracting Members are set forth in Exhibit B of the Consulting Services Agreement. Monthly Charges invoiced by Consultant to NCPA for Services provided to the Contracting Members, pursuant to the Consulting Services Agreement, shall be allocated to the Contracting Members in accordance with the allocation percentages listed in Table 1 of this Exhibit B. TABLE 1 ALLOCATION PERCENTAGES Contracting Member Allocation Percentage City of Palo Alto 25.0% City of Santa Clara 75.0% Total 100.0% 18 BAMx PROFESSIONAL SERVICES AGREEMENT EXHIBIT C Bay Area Municipal Transmission Services Agreement (BAMX) Contracting Member Transmittal Payment Voucher For the Period: _________________ To: Northern California Power Agency VIA PDF EMAIL 651 Commerce Drive Roseville, California 95678 Attention: Accounts Payable (*AcctsPayable@ncpa.com) From: Contracting Members – The Cities of Palo Alto and Santa Clara(each referred to as a "Contracting Member" and jointly referred to as “Contracting Members” or "BAMx Participants") I the undersigned hereby certify that I am authorized to approve payment of the ATTACHED billing statement and or invoice(s) and do hereby approve payment thereof by the Billing Agent (Northern California Power Agency) as indicated below: For City of Palo Alto: _____________________________ _______________ Name Date No exceptions. With the deduction of the following exceptions: For City of Santa Clara: _____________________________ _______________ (Silicon Valley Power) Name Date No exceptions: With the deduction of the following exceptions: Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 1 of 17 2650865.1 CONSULTING SERVICES AGREEMENT BETWEEN THE NORTHERN CALIFORNIA POWER AGENCY AND FLYNN RESOURCE CONSULTANTS INC. This agreement for consulting services (“Agreement’) is made by and between the Northern California Power Agency, a joint powers agency with its main office located at 651 Commerce Drive, Roseville, CA 95678-6420 (“Agency”) and Flynn Resource Consultants Inc., a California corporation, with its office located at 5440 Edgeview Drive, Discovery Bay, CA 94505 (“Consultant”) (together sometimes referred to as the “Parties”) as of ______________, 20__ (“Effective Date”) in Roseville, California. Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to Agency the services described in the Scope of Work attached hereto as Exhibit A and incorporated herein ("Services"), at the time and place and in the manner specified therein. 1.1 Term of Agreement. The term of this Agreement shall begin on the Effective Date and shall end when Consultant completes the Services, or no later than June 30, 2020 whichever is shorter. 1.2 Standard of Performance. Consultant shall perform the Services in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged and for which Consultant is providing the Services. Consultant represents that it is licensed, qualified and experienced to provide the Services set forth herein. 1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform the Services. In the event that Agency, in its sole discretion, at any time during the term of this Agreement, requests the reassignment of any such personnel, Consultant shall, immediately upon receiving written notice from Agency of such request, reassign such personnel. 1.4 BAMx Members. Agency is entering into this Agreement with Consultant at the request of certain of its members, the cities of Palo Alto and Santa Clara (“the BAMx Members”), so that Agency may provide consulting services to the BAMx Members. Agency's provision of these services is further addressed in the Professional Services Agreement Between Northern California Power Agency and the Cities of Palo Alto and Santa Clara (the "Bay Area Municipal Transmission Services Agreement" or "BAMx Agreement") dated as of ______________, 20__, as such may be amended from time to time. Section 2. COMPENSATION. Agency hereby agrees to pay Consultant an amount NOT TO EXCEED One Million Nine Hundred Fifty Thousand Dollars ($1,950,000.00) during the Term of the Agreement, or Six Hundred Fifty Thousand Dollars ($650,000.00) during each annual period of the Term of the Agreement, for the Services, which shall include all fees, costs, expenses and other reimbursables, as set forth in Consultant’s fee schedule, attached hereto and incorporated herein as Exhibit B. This dollar ATTACHMENT C Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 2 of 16 2650865.1 amount is not a guarantee that Agency will pay that full amount to the Consultant, but is merely a limit of potential Agency expenditures under this Agreement. 2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for Services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information:  The beginning and ending dates of the billing period;  Services performed;  At Agency's option, the total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder; and  At Agency’s option, when the Consultant’s Scope of Work identifies tasks, for each work item in each task, a copy of the applicable time entries showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense, with supporting documentation, to Agency’s reasonable satisfaction. Invoices shall be sent to: Northern California Power Agency 651 Commerce Drive Roseville, California 95678 Attn: Accounts Payable AcctsPayable@ncpa.com 2.2 Monthly Payment. Agency shall make monthly payments, based on invoices received, for Services satisfactorily performed, and for authorized reimbursable costs incurred. Agency shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Consultant. 2.3 Payment of Taxes. Consultant is solely responsible for the payment of all federal, state and local taxes, including employment taxes, incurred under this Agreement. 2.4 Authorization to Perform Services. The Consultant is not authorized to perform any Services or incur any costs whatsoever under the terms of this Agreement until receipt of written authorization from the Contract Administrator. 2.5 Timing for Submittal of Final Invoice. Consultant shall have ninety (90) days after completion of its Services to submit its final invoice. In the event Consultant fails to submit an invoice to Agency for any amounts due within the ninety (90) day period, Consultant is deemed to have waived its right to collect its final payment from Agency. Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 3 of 16 2650865.1 Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the Services. Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of insurance listed below and shall maintain the types and amounts of insurance listed below for the period covered by this Agreement. 4.1 Workers’ Compensation. If Consultant employs any person, Consultant shall maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Consultant with limits of not less than one million dollars ($1,000,000.00) per accident. 4.2 Commercial General and Automobile Liability Insurance. 4.2.1 Commercial General Insurance. Consultant shall maintain commercial general liability insurance for the term of this Agreement, including products liability, covering any loss or liability, including the cost of defense of any action, for bodily injury, death, personal injury and broad form property damage which may arise out of the operations of Consultant. The policy shall provide a minimum limit of $1,000,000 per occurrence/$2,000,000 aggregate. Commercial general coverage shall be at least as broad as ISO Commercial General Liability form CG 0001 (current edition) on "an occurrence" basis covering comprehensive General Liability, with a self-insured retention or deductible of no more than $100,000. No endorsement shall be attached limiting the coverage. 4.2.2 Automobile Liability. Consultant shall maintain automobile liability insurance form CA 0001 (current edition) for the term of this Agreement covering any loss or liability, including the cost of defense of any action, arising from the operation, maintenance or use of any vehicle (symbol 1), whether or not owned by the Consultant, on or off Agency premises. The policy shall provide a minimum limit of $1,000,000 per each accident, with a self-insured retention or deductible of no more than $100,000. This insurance shall provide contractual liability covering all motor vehicles and mobile equipment to the extent coverage may be excluded from general liability insurance. 4.2.3 General Liability/Umbrella Insurance. The coverage amounts set forth above may be met by a combination of underlying and umbrella policies as long as in combination the limits equal or exceed those stated. 4.4 All Policies Requirements. Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 4 of 16 2650865.1 4.4.1 Verification of coverage. Prior to beginning any work under this Agreement, Consultant shall provide Agency with (1) a Certificate of Insurance that demonstrates compliance with all applicable insurance provisions contained herein and (2) policy endorsements to the policies referenced in Section 4.2, adding the Agency as an additional insured and declaring such insurance primary in regard to work performed pursuant to this Agreement. 4.4.2 Notice of Reduction in or Cancellation of Coverage. Consultant shall provide at least thirty (30) days prior written notice to Agency of any reduction in scope or amount, cancellation, or modification adverse to Agency of the policies referenced in Section 4. 4.4.3 Higher Limits. If Consultant maintains higher limits than the minimums specified herein, the Agency shall be entitled to coverage for the higher limits maintained by the Consultant. 4.5 Waiver of Subrogation. Consultant agrees to waive subrogation which any insurer of Consultant may acquire from Consultant by virtue of the payment of any loss. Consultant agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation. The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of Agency for all work performed by Consultant, its employees, agents and subcontractors. 4.6 Consultant's Obligation. Consultant shall be solely responsible for ensuring that all equipment, vehicles and other items utilized in the performance of Services are operated, provided or otherwise utilized in a manner that ensues they are and remain covered by the policies referenced in Section 4 during this Agreement. Consultant shall also ensure that all workers involved in the provision of Services are properly classified as employees, agents or independent contractors and are and remain covered by any and all workers' compensation insurance required by applicable law during this Agreement. Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES. 5.1 Effect of Insurance. Agency's acceptance of insurance certificates and endorsements required under this Agreement does not relieve Consultant from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Consultant acknowledges and agrees to the provisions of this Section and that it is a material element of consideration. Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 5 of 16 2650865.1 5.2 Scope. Consultant shall indemnify, defend with counsel reasonably acceptable to the Agency, and hold harmless the Agency, and its officials, commissioners, officers, employees, agents and volunteers from and against all losses, liabilities, claims, demands, suits, actions, damages, expenses, penalties, fines, costs (including without limitation costs and fees of litigation), judgments and causes of action of every nature arising out of or in connection with any acts or omissions by Consultant, its officers, officials, agents, and employees, except as caused by the sole or gross negligence of Agency. Notwithstanding, should this Agreement be construed as a construction agreement under Civil Code section 2783, then the exception referenced above shall also be for the active negligence of Agency. Section 6. STATUS OF CONSULTANT. 6.1 Independent Contractor. Consultant is an independent contractor and not an employee of Agency. Agency shall have the right to control Consultant only insofar as the results of Consultant's Services and assignment of personnel pursuant to Section 1; otherwise, Agency shall not have the right to control the means by which Consultant accomplishes Services rendered pursuant to this Agreement. Notwithstanding any other Agency, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by Agency, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of Agency and entitlement to any contribution to be paid by Agency for employer contributions and/or employee contributions for PERS benefits. Consultant shall indemnify, defend, and hold harmless Agency for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of Agency. Consultant and Agency acknowledge and agree that compensation paid by Agency to Consultant under this Agreement is based upon Consultant’s estimated costs of providing the Services, including salaries and benefits of employees, agents and subcontractors of Consultant. Consultant shall indemnify, defend, and hold harmless Agency from any lawsuit, administrative action, or other claim for penalties, losses, costs, damages, expense and liability of every kind, nature and description that arise out of, pertain to, or relate to such claims, whether directly or indirectly, due to Consultant’s failure to secure workers’ compensation insurance for its employees, agents, or subcontractors. Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 6 of 16 2650865.1 Consultant agrees that it is responsible for the provision of group healthcare benefits to its fulltime employees under 26 U.S.C. § 4980H of the Affordable Care Act. To the extent permitted by law, Consultant shall indemnify, defend and hold harmless Agency from any penalty issued to Agency under the Affordable Care Act resulting from the performance of the Services by any employee, agent, or subcontractor of Consultant. 6.2 Consultant Not Agent. Except as Agency may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of Agency in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind Agency to any obligation whatsoever. 6.3 Assignment and Subcontracting. This Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique professional competence, experience, and specialized professional knowledge. A substantial inducement to Agency for entering into this Agreement was and is the personal reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Agency. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors identified in Exhibit A, without prior written approval of the Agency. Where written approval is granted by the Agency, Consultant shall supervise all work subcontracted by Consultant in performing the services and shall be responsible for all work performed by a subcontractor as if Consultant itself had performed such work. The subcontracting of any work to subcontractors shall not relieve Consultant from any of its obligations under this Agreement with respect to the services and Consultant is obligated to ensure that any and all subcontractors performing any services shall be fully insured in all respects and to the same extent as set forth under Section 4, to Agency’s satisfaction. Section 7. LEGAL REQUIREMENTS. 7.1 Governing Law. The laws of the State of California shall govern this Agreement. 7.2 Compliance with Applicable Laws. Consultant and its subcontractors and agents, if any, shall comply with all laws applicable to the performance of the work hereunder. 7.3 Licenses and Permits. Consultant represents and warrants to Agency that Consultant and its employees, agents, and subcontractors (if any) have and will maintain at their sole expense during the term of this Agreement all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice their respective professions. Section 8. TERMINATION AND MODIFICATION. Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 7 of 16 2650865.1 8.1 Termination. Agency may cancel this Agreement at any time and without cause upon ten (10) days prior written notice to Consultant. In the event of termination, Consultant shall be entitled to compensation for Services satisfactorily completed as of the effective date of termination; Agency, however, may condition payment of such compensation upon Consultant delivering to Agency any or all records or documents, as referenced in Section 9.1 hereof. 8.2 Amendments. 8.2.1 The Parties may amend this Agreement only by a writing signed by all the Parties. 8.3 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between Agency and Consultant shall survive the termination of this Agreement. 8.4 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, including but not limited to those set forth in Section 4, Agency’s remedies shall include, but not be limited to, the following: 8.4.1 Immediately terminate the Agreement; 8.4.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; and 8.4.3 Retain a different consultant to complete the Services not finished by Consultant. Section 9. KEEPING AND STATUS OF RECORDS. 9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the Agency. Consultant hereby agrees to deliver those documents to the Agency upon termination of the Agreement. Agency and Consultant agree that, unless approved by Agency in writing, Consultant shall not release to any non-parties to this Agreement any data, plans, specifications, reports and other documents. 9.2 Consultant’s Books and Records. Consultant shall maintain any and all records or other documents evidencing or relating to charges for Services or expenditures and disbursements charged to the Agency under this Agreement for a minimum of three (3) Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 8 of 16 2650865.1 years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement. 9.3 Inspection and Audit of Records. Any records or documents that this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the Agency. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds ten thousand dollars ($10,000.00), the Agreement shall be subject to the examination and audit of the State Auditor, at the request of Agency or as part of any audit of the Agency, for a period of three (3) years after final payment under the Agreement. 9.4 Confidential Information and Disclosure. 9.4.1 Confidential Information. The term "Confidential Information", as used herein, shall mean any and all confidential, proprietary, or trade secret information, whether written, recorded, electronic, oral or otherwise, where the Confidential Information is made available in a tangible medium of expression and marked in a prominent location as confidential, proprietary and/or trade secret information. Confidential Information shall not include information that: (a) was already known to the Receiving Party or is otherwise a matter of public knowledge, (b) was disclosed to Receiving Party by a third party without violating any confidentiality agreement, (c) was independently developed by Receiving Party without reverse engineering, as evidenced by written records thereof, or (d) was not marked as confidential Information in accordance with this section. 9.4.2 Non-Disclosure of Confidential Information. During the term of this Agreement, either party may disclose ("The Disclosing Party") confidential Information to the other party ("the Receiving Party"). The Receiving Party: (a) shall hold the Disclosing Party's Confidential Information in confident; and (b) shall take all reasonable steps to prevent any unauthorized possession, use, copying, transfer or disclosure of such Confidential Information. 9.4.3 Permitted Disclosure. Notwithstanding the foregoing, the following disclosures of Confidential Information are allowed. Receiving Party shall endeavor to provide prior written notice to Disclosing Party of any permitted disclosure made pursuant to Section 9.4.3.2 or 9.4.3.3. Disclosing Party may seek a protective order, including without limitation, a temporary restraining order to prevent or contest such permitted disclosure; provided, however, that Disclosing Party shall seek such remedies at its sole expense. Neither party shall have any liability for such permitted disclosures: Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 9 of 16 2650865.1 9.4.3.1 Disclosure to employees, agents, consultants, contractors, subcontractors or other representatives of Receiving Party that have a need to know in connection with this Agreement. 9.4.3.2 Disclosure in response to a valid order of a court, government or regulatory agency or as may otherwise be required by law; and 9.4.3.3 Disclosure by Agency in response to a request pursuant to the California Public Records Act. 9.4.4 Handling of Confidential Information. Upon conclusion or termination of the Agreement, Receiving Party shall return to Disclosing Party or destroy Confidential Information (including all copies thereof) upon termination of this Agreement, if requested by Disclosing Party in writing. Notwithstanding the foregoing, the Receiving Party may retain copies of such Confidential Information, subject to the confidentiality provisions of this Agreement: (a) for archival purposes in its computer system; (b) in its legal department files; and (c) in files of Receiving Party's representatives where such copies are necessary to comply with applicable law. Party shall not disclose the Disclosing Party’s Information to any person other than those of the Receiving Party’s employees, agents, consultants, contractors and subcontractors who have a need to know in connection with this Agreement. Section 10 MISCELLANEOUS PROVISIONS. 10.1 Attorneys’ Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose. 10.2 Venue. In the event that either party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Placer or in the United States District Court for the Eastern District of California. 10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 10 of 16 2650865.1 10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties. 10.6 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of Agency or whose business, regardless of location, would place Consultant in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq. Consultant shall not employ any Agency official in the work performed pursuant to this Agreement. No officer or employee of Agency shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. 10.7 Contract Administrator. This Agreement shall be administered by David Dockham, Assistant General Manager, or his/her designee, who shall act as the Agency’s representative. All correspondence shall be directed to or through the representative. 10.8 Notices. Any written notice to Consultant shall be sent to: Doug Boccignone Flynn Resource Consultants, Inc. 5440 Edgeview Drive Discovery Bay, CA 94505 Any written notice to Agency shall be sent to: Randy S. Howard General Manager Northern California Power Agency 651 Commerce Drive Roseville, CA 95678 With a copy to: Ruthann Ziegler General Counsel Northern California Power Agency Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 11 of 16 2650865.1 Meyers Nave 555 Capitol Mall, Suite 1200 Sacramento, CA 95814 10.9 Professional Seal. Where applicable in the determination of the Agency, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. 10.10 Integration; Incorporation. This Agreement, including all the Exhibits attached hereto, represents the entire and integrated agreement between Agency and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. All Exhibits attached hereto are incorporated by reference herein. 10.11 Alternative Dispute Resolution. If any dispute arises between the Parties that cannot be settled after engaging in good faith negotiations, Agency and Consultant agree to resolve the dispute in accordance with the following: 10.11.1 Each party shall designate a senior management or executive level representative to negotiate any dispute. 10.11.2 The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority. 10.11.3 If the issue remains unresolved after fifteen (15) days of good faith negotiations, the Parties shall attempt to resolve the disagreement by negotiation between legal counsel. If the above process fails, the Parties shall resolve any remaining disputes through mediation to expedite the resolution of the dispute. 10.11.4 The mediation process shall provide for the selection within fifteen (15) days by both Parties of a disinterested third person as mediator, shall be commenced within thirty (30) days and shall be concluded within fifteen (15) days from the commencement of the mediation. 10.11.5 The Parties shall equally bear the costs of any third party in any alternative dispute resolution process. 10.11.6 The alternative dispute resolution process is a material condition to this Agreement and must be exhausted as an administrative prior to either Party initiating legal action. This alternative dispute resolution process is Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 12 of 16 2650865.1 not intended to nor shall be construed to change the time periods for filing a claim or action specified by Government Code §§ 900 et seq. 10.12 Controlling Provisions. In the case of any conflict between the terms of this Agreement and the Exhibits hereto, and Consultant's Proposal (if any), the Agreement shall control. In the case of any conflict between the Exhibits hereto and the Consultant's Proposal, the Exhibits shall control. 10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. 10.14 Construction of Agreement. Each party hereto has had an equivalent opportunity to participate in the drafting of the Agreement and/or to consult with legal counsel. Therefore, the usual construction of an agreement against the drafting party shall not apply hereto. 10.15 No Third Party Beneficiaries. This Agreement is made solely for the benefit of the parties hereto, with no intent to benefit any non-signator third parties. Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 13 of 16 2650865.1 The Parties have executed this Agreement as of the date signed by the Agency. NORTHERN CALIFORNIA POWER AGENCY FLYNN RESOURCE CONSULTANTS, INC. Date: _______________________ Date: _________________________ ____________________________ ______________________________ Randy S. Howard, General Manager Douglas A. Boccignone, Chief Financial Officer Attest: ____________________________ Assistant Secretary of the Commission Approved as to Form: ____________________________ General Counsel Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 14 of 16 2650865.1 EXHIBIT A SCOPE OF WORK Agency is entering into this Agreement with Consultant at the request of the BAMx Members, so that Agency may assist the BAMx Members in securing access to consulting services related to electric transmission, power generation, regulatory and electric market design issues affecting the BAMx Members. Agency's primary role as to the Services provided under this Agreement, is to act as contract administrator and billing agent on behalf of the BAMx Members, as further described in the BAMx Agreement. For the purpose of administering this Agreement, each BAMx Member shall be represented by a designated representative (“Representative”). During the term of this Agreement, the BAMx Member Representatives are responsible for coordinating all requests for Services made to Consultant, and shall manage all related activities as further described herein. The BAMx Member Representatives are listed below:  Joyce Kinnear, City of Santa Clara  Debbie Lloyd, City of Palo Alto At any time a BAMx Member may designate a new or alternative Representative by providing written notice of such designation to Agency. The BAMx Members and Consultant intend to pursue the activities listed below during the term of this Agreement. Such activities will include monitoring, meeting participation, coordinating with affected or other participating parties, and, as necessary, preparing and submitting formal position submittals. The Scope of Work provided in accordance with this Agreement are described below: 1. Grid Planning Activities: a. CAISO Regionalization Process, Transmission Access Charge, Governance and Resource Adequacy; i. Coordination with the California Municipal Utilities Association and Northern California Power Agency on these activities b. CAISO/PG&E annual transmission expansion planning process; c. Support or oppose specific transmission additions; d. Greater Bay Area long term studies; e. CAISO local capacity technical study process; f. Other regional and sub-regional transmission planning activities; g. CAISO Tariff and BPM Change Management Process; h. Generator Interconnection Procedure; i. Transmission cost minimization; j. Impacts due to potential generation retirements; Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 15 of 16 2650865.1 k. Transmission for renewables deliverability issues; l. CTPG planning process; and m. Tracy to Bay development activities. 2. CPUC and CEC transmission matters: a. Integrated Energy Policy Report; b. Resource adequacy issues; c. Renewable Portfolio Standard issues; d. Long Term Procurement issues; e. Approval of CPCNs and PTCs for new transmission lines; and f. Renewable Energy Transmission Initiative (RETI 2.0). 3. CAISO Market Issues a. CAISO markets proceedings and implementation matters; b. Resource Adequacy / Local Capacity/ Flexible Capacity/ Deliverability; c. LMP congestion and losses incidence and impacts; and d. Regionalization and New Participating Transmission Owner Issues. 4. Communicate Regularly with BAMx Members a. Client meetings, telephone conferences and written summaries of activities on key issues. Consulting Services Agreement between XX-VEN-20XX-XXXX NCPA and Flynn Resource Consultants, Inc. Rev’d 5/4/16 Page 16 of 16 2650865.1 EXHIBIT B COMPENSATION SCHEDULE AND HOURLY FEES Compensation for all Services performed pursuant to this Agreement, including hourly fees and expenses, shall not exceed the amount specified in Section 2 of this Agreement. The compensation schedule and hourly fees for Services are as follows: Labor Category Hourly Rate Principal $300.00 per hour Managing Consultant $280.00 per hour Senior Consultant – Power Engineer $270.00 per hour Senior Consultant $245.00 per hour Consultant $210.00 per hour Associate Consultant $190.00 per hour Analyst $135.00 per hour Support Services $65.00 per hour Each year, effective on the anniversary of the Effective Date of this Agreement, the applicable hourly rates for each labor category shall increase by three percent (3.0%), rounded to the nearest five dollars ($5.00). For any month during which Consultant’s provision of Services causes Consultant to use specialized modeling software and/or tools, the following charges shall apply: Category Cost per Month Power Flow Modeling $225.00 per month Short Circuit Modeling $650.00 per month OASIS DATA $950.00 per month Market Modeling $3,000.00 per month Each year, effective on the anniversary of the Effective Date of this Agreement, the applicable monthly cost for use of specialized modeling software and/or tools shall increase by three percent (3.0%), rounded to the nearest five dollars ($5.00). Travel (at coach rates), food, and miscellaneous expenses, except automobile mileage, associated with the provision of Services hereunder shall be billed at cost. Automobile mileage shall be billed at the current rate as approved by the Internal Revenue Service. NOTE: Notwithstanding the foregoing, as a public agency, Agency shall not reimburse Consultant for travel, food and related costs in excess of those permitted by the Internal Revenue Service. City of Palo Alto (ID # 8157) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Approval of Police Department Purchase of Radio Consoles Title: Approval of the Purchase of Police Radio Consoles for the SVRCS Regional 700 MHz Trunked Radio System in an Amount Not-to-Exceed $917,000 With an Option for Utilities to Purchase two Additional Consoles for an Amount Not-to-Exceed $72,000 From: City Manager Lead Department: Police RECOMMENDED MOTION Staff recommends that Council consider the following motion: 1. Approve and authorize the City Manager or his designee to execute the purchase of radio consoles and accessories for the Police, Utilities and Public Works Departments in an amount not to exceed $917,000 with an option for Utilities to purchase two additional consoles for an amount not to exceed $72,000. RECOMMENDATION Staff recommends that City Council approve and authorize the City Manager or his designee to execute the purchase of radio consoles and accessories for the Police, Utilities and Public Works Departments in an amount not to exceed $917,000 with an option for Utilities to purchase two additional consoles for an amount not to exceed $72,000. DISCUSSION The City Council approved the City of Palo Alto’s (CPA) participation in the Silicon Valley Regional Communications System (SVRCS) on June 22, 2015. This 700 MHz radio system will be utilized by all Santa Clara County Municipal and County agencies as well as the Valley Transportation Agency (VTA). It will provide interoperable communications for Police and Fire and enhanced capabilities for Public Works, Utilities and all other CPA radio users. The Motorola 700 MHz system is a digital trunked radio system that conforms to the P251 standard. The migration to the new system requires the purchase of new consoles and the 1 Project 25 (P25) standards were developed to enable Public Safety entities to communicate with each other using an open architecture model. City of Palo Alto Page 2 equipment that controls access to radio channels and talk groups as well as the ability to transmit, receive and patch talk groups and channels together. Palo Alto is in the West Cell of the SVRCS (there are three cells - West, Central and South) and the infrastructure for the West Cell is nearly complete. The cities of Sunnyvale and Santa Clara are operating on the new system. Palo Alto plans on timing the migration to SVRCS to coincide with our neighbors in Mountain View and Los Altos implementation as we share critical public safety technology with those cities. Radio interoperability is the final component of full redundancy between the three cities public safety data and voice systems. Palo Alto anticipates moving Utilities and Public Works to SVRCS in the fourth quarter of 2017 and Public Safety to the system in the first quarter of 2018. Public Safety users will need to communicate on multiple frequencies with the remaining agencies in the County during the transition period (completion of the Central Cell is scheduled for 2019) and with our neighbors in San Mateo County who remain on legacy systems. Fire will have a continued need to communicate on VHF frequencies for the foreseeable future when traveling outside of Santa Clara County. Cost permitting, the City plans to maintain three legacy analog channels (a Police UHF channel, a Fire VHF Channel and a Local Government UHF channel) for disaster recovery. RESOURCE IMPACT A requirement of the agreement between the participating SVRCS entities is that each municipality or agency purchases their own radios and consoles. SVRCS competitively bid the radio system and Motorola was awarded the contract. The contract includes preferred equipment pricing for all SVRCS members. Long-term maintenance of the consoles will be covered by SVRCS. Because Palo Alto has its own Utilities and several locations for radio dispatch, the console equipment requirements are considerably higher than other municipalities of a similar size. The purchase will be funded from the Radio Infrastructure CIP (TE-05000-080). The CIP is funded from multiple sources, the CPA Capital Budget, Utilities and Stanford. Council allocated funding for SVRCS participation and the necessary console purchases in May 2015. The cost breakdown by department is listed below. Most of the core system costs are included in the Emergency Dispatch Center quote. LOCATION COST Emergency Dispatch Center $568,928.45 Electric Utilities Control Center $156,030.86 Water, Gas Utilities Dispatch $75,807.66 Public Works Dispatch $116,147.84 TOTAL $916,914.81 *Optional 2 additional UCC consoles $71,839.75 City of Palo Alto Page 3 POLICY IMPLICATIONS Expenditure of funds is consistent with City policy. ENVIRONMENTAL REVIEW The equipment being supplied is in conformance with all applicable emissions laws and regulations. Attachments:  ATTACHMENT A - Motorola Proposal 051117  ATTACHMENT B - JPA Agreement SVRIA Motorola Solutions, Inc. 1001 BAYHILL DRIVE, 2ND FLOOR SAN BRUNO, CA 94066 May 11, 2017 City of Palo Alto 275 Forest Avenue Palo Alto, CA 94301 Attn: Charles Cullen Subject: City of Palo Alto Dispatch Console Dear Mr. Cullen: Motorola Solutions, Inc. ("Motorola") is pleased to present to the City of Palo Alto an updated proposal for five MCC 7500 Dispatch Consoles at the Police dispatch, two MCC7100 consoles at Utilities, and consolettes and desksets for Utilities and Public Works. The proposal contains: • Cover Letter • System Description • Statement of Work • Acceptance Test Plan • Service/Warranty • Equipment List • Pricing Summary and Payment Terms The proposal is based upon and subject to the terms and conditions of the contract between the County of Santa Clara on behalf of the Silicon Valley Regional Interoperability Authority and its members and Motorola Solutions (“SVRIA contract”). The incentives offered are based on the SVRIA contract and subject to the terms and conditions of the contract. You may accept the proposal by issuing a purchase order consistent with the requirements of the SVRIA contract. The proposal is valid until June 30, 2017. Motorola appreciates the opportunity to respond to your communications needs and stands ready to address any questions you may have regarding our submittal. If you have any questions concerning the quotation, please call Sr. Account Executive, Jeff Van Dell, at 650-280-3110. Sincerely, MOTOROLA SOLUTIONS, INC. Mike DeBenedetti Area Sales Manager The design, technical, and cost information furnished with this proposal is proprietary information of Motorola Solutions, Inc. (Motorola). Such information is submitted with the restriction that it is to be used only for the evaluation of the proposal, and is not to be disclosed publicly or in any manner to anyone other than those required to evaluate the proposal, without the express written permission of Motorola Solutions, Inc. MOTOROLA, MOTO, MOTOROLA SOLUTIONS, and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. SYMBOL is a trademark owned by Symbol Technologies, Inc., which is a wholly owned subsidiary of Motorola Solutions, Inc. All other trademarks are the property of their respective owners. © 2012 Motorola Solutions, Inc. All rights reserved. CITY OF PALO ALTO MAY 11, 2017 DISPATCH CONSOLE REVISED – MAY 11, 2017 City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Table of Contents i TABLE OF CONTENTS Section 1 System Description ............................................................................................................................ 1-1 1.1 System Overview ............................................................................................................... 1-1 1.2 MCC 7500 Dispatch Console Description .......................................................................... 1-1 1.2.1 Architecture and Components ........................................................................................ 1-3 1.2.1.1 Telephone/Headset Port ........................................................................................ 1-4 1.2.1.2 Console Logging .................................................................................................... 1-4 1.2.1.3 Conventional Channel Gateway (CCGW) .............................................................. 1-6 1.2.1.4 Conventional Site Controller (CSC) ........................................................................ 1-6 1.2.1.5 Auxiliary Inputs/Outputs ......................................................................................... 1-6 1.2.2 Additional MCC 7500 Console Dispatch System Features ............................................ 1-7 1.2.2.1 Integrated with the ASTRO 25 Network ................................................................. 1-7 1.2.2.2 Proven Graphical User Interface ............................................................................ 1-7 1.2.2.3 Centralized Network Configuration and Fault Management ................................... 1-8 1.2.2.4 Mission Critical Audio and Tones ........................................................................... 1-9 1.2.2.5 Reliability and Availability ....................................................................................... 1-9 1.2.3 MCC 7100 Dispatch Console Component Description .................................................. 1-9 Section 2 Equipment List ................................................................................................................................... 2-1 2.1 City of Palo Alto Equipment................................................................................................ 2-1 Section 3 Statement of Work ............................................................................................................................. 3-1 3.1 Overview ............................................................................................................................ 3-1 3.2 Assumptions ....................................................................................................................... 3-2 3.3 Contract .............................................................................................................................. 3-2 3.3.1 Contract Award (Milestone) ............................................................................................ 3-2 3.3.2 Contract Administration .................................................................................................. 3-2 3.3.3 Project Kickoff ................................................................................................................ 3-3 3.4 Contract Design Review ..................................................................................................... 3-3 3.4.1 Review Contract Design ................................................................................................. 3-3 3.4.2 Design Approval (Milestone) .......................................................................................... 3-4 3.5 Order Processing ............................................................................................................... 3-4 3.5.1 Process Equipment List .................................................................................................. 3-4 3.6 Manufacturing and Staging ................................................................................................ 3-5 3.6.1 Manufacture Motorola Fixed Network Equipment .......................................................... 3-5 3.6.2 Manufacture Non-Motorola Equipment .......................................................................... 3-5 3.6.3 Ship to Staging (Milestone) ............................................................................................ 3-5 3.6.4 Stage System ................................................................................................................. 3-5 3.6.5 Perform Staging Acceptance Test Procedures .............................................................. 3-6 3.6.6 Ship Equipment to Field ................................................................................................. 3-6 3.6.7 CCSi Ship Acceptance (Milestone) ................................................................................ 3-6 3.6.8 Develop Templates ........................................................................................................ 3-6 3.7 System Installation ............................................................................................................. 3-7 City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Table of Contents ii 3.7.1 Install Fixed Network Equipment .................................................................................... 3-7 3.7.2 Fixed Network Equipment Installation Complete ............................................................ 3-7 3.7.3 Console Installation ........................................................................................................ 3-7 3.7.4 Console Installation Complete ........................................................................................ 3-8 3.7.5 System Installation Acceptance (Milestone) ................................................................... 3-8 3.8 System Optimization .......................................................................................................... 3-8 3.8.1 Optimize System FNE .................................................................................................... 3-8 3.8.2 Link Verification .............................................................................................................. 3-8 3.8.3 Completion Criteria: ........................................................................................................ 3-9 3.8.4 Optimization Complete ................................................................................................... 3-9 3.9 Training .............................................................................................................................. 3-9 3.9.1 Perform Training ............................................................................................................. 3-9 3.10 Audit and Acceptance Testing ........................................................................................... 3-9 3.10.1 Perform R56 Installation Audit .................................................................................... 3-9 3.10.2 Perform Functional Testing ...................................................................................... 3-10 3.10.3 System Acceptance Test Procedures (Milestone) ................................................... 3-10 3.11 Finalize ............................................................................................................................. 3-10 3.11.1 Cutover ..................................................................................................................... 3-10 3.11.2 Resolve Punchlist ..................................................................................................... 3-11 3.11.3 Transition to Service/Project Transition Certificate................................................... 3-11 3.11.4 Finalize Documentation ............................................................................................ 3-11 3.11.5 Final Acceptance (Milestone) ................................................................................... 3-12 3.12 Project Administration ...................................................................................................... 3-12 3.12.1 Project Status Meetings ........................................................................................... 3-12 3.12.2 Progress Milestone Submittal ................................................................................... 3-12 3.12.3 Change Order Process ............................................................................................. 3-12 Section 4 Acceptance Test Plan ............................................................................................................................ i Section 5 Acceptance Test Plan ........................................................................................................................ 5-2 5.1 MCC 7100/7500 Trunked Resources ................................................................................. 5-3 5.1.1 Console Priority .............................................................................................................. 5-3 5.1.2 Call Alert ......................................................................................................................... 5-4 5.1.3 Talkgroup Patch ............................................................................................................. 5-5 5.1.4 Alert Tones - Talkgroup .................................................................................................. 5-6 5.1.5 Talkgroup Selection and Call ......................................................................................... 5-7 5.2 Signoff Certificate ............................................................................................................... 5-1 Section 6 Training .............................................................................................................................................. 6-2 6.1 Overview ............................................................................................................................ 6-2 6.2 Training Approach .............................................................................................................. 6-2 6.3 Courses Proposed ............................................................................................................. 6-3 6.4 Detailed Course Descriptions ............................................................................................. 6-4 6.4.1.1 MCC 7500 Operator Course Description ............................................................... 6-4 6.4.1.2 MCC 7500 Supervisor Course Description ............................................................ 6-6 City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Table of Contents iii Section 7 Warranty and Maintenance ................................................................................................................ 7-1 7.1 The Motorola Service Delivery Team ................................................................................. 7-1 7.2 Warranty Services .............................................................................................................. 7-2 7.2.1 Dispatch Service ............................................................................................................ 7-2 7.2.2 OnSite Infrastructure Response ..................................................................................... 7-2 7.2.3 Network Preventative Maintenance ................................................................................ 7-2 7.2.4 Infrastructure Repair with Advanced Replacement ........................................................ 7-3 7.2.5 Technical Support Service ............................................................................................. 7-3 7.2.6 Network Monitoring Service ........................................................................................... 7-3 7.2.7 Security Monitoring Service ............................................................................................ 7-4 7.2.8 Security Update Service (SUS) ...................................................................................... 7-4 7.3 Summary ............................................................................................................................ 7-5 Section 8 Pricing Summary................................................................................................................................ 8-1 8.1 City of Palo Alto Dispatch Consoles ................................................................................... 8-1 8.2 Payment Schedule Infrastructure & Consoles .................................................................... 8-4 City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted System Description 1-1 SECTION 1 SYSTEM DESCRIPTION 1.1 SYSTEM OVERVIEW Motorola is pleased to present the City of Palo Alto with the system design for an MCC 7500 dispatch console system to aid the public safety officers and users within the City in improving their safety and providing effective voice communications. This design allows Palo Alto to operate on the new MCC 7500 consoles and SVRIA system while using the existing conventional channels (repeaters) that are used today. Requirements for the system are described herein and are delineated throughout this system description. This MCC 7500 IP-based console design interfaces with the existing conventional resources used by the City. This design ensures that the current and future migration strategies of the City are tied into one gradual transition while upholding the safety of the City’s public safety officers. The City of Palo Alto radio console system will be connected into the SVRCS ASTRO 25 Master Site via the trunking system’s IP transport. Below is a high level overview of what is included in this proposal: • 5 MCC 7500 Operator Positions at Palo Alto Main Dispatch • 2 APX 7500 Consolettes and antenna system for Back Up at Palo Alto Main Dispatch • 2 MCC 7100 Operator Positions at Utilities Dispatch • 2 Optional MCC 7100 Operator Positions at Utilities Dispatch • 2 APX 7500 Consolettes and antenna system for Back Up at Utilities Dispatch • 3 APX 7500 Consolettes, antenna system, and 3 MCD 5000 Desket Remotes for Utilites • 5 APX 7500 Consolettes, antenna system, and 5 MCD 5000 Deskset Remotes for Public Works Additionally, Motorola understands the continued need to show value in leveraging investments for the communication center. Motorola is pleased to provide an additional benefit to the City of Palo Alto. Motorola has included a full PremierOne CAD Seat License within the purchase of each MCC7500 Console. If Palo Alto would like to turn on the use of these licenses in the future, it will require, PremierOne CAD Server license along with hardware, implementation, training and provisioning services. 1.2 MCC 7500 DISPATCH CONSOLE DESCRIPTION The MCC 7500 Dispatch Console is a mission critical IP command and control solution designed to ensure optimal quality audio and reliable communication. Console positions are connected directly to the IP network which supports communication with both trunked and conventional radios. Each console is centrally configured and managed from the network manager. The dispatch system includes an MCC 7500 Dispatch Console, a voice processor module (VPM) and associated peripheral hardware. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted System Description 1-2 The MCC 7500 Console system for the City of Palo Alto consists of the following equipment: • Five (5) MCC 7500 Operator Positions. • Five (5) 19-inch non-touch screen LED monitors. • Ten (10) Desktop Speakers. • Ten (10) Headset Jacks. • Ten (10) Noise Canceling Dual Muff Headset. • Five (5) Footswitch. • Two (2) Site Switches. • Two (2) Site Routers. • One (1) Conventional Site Controller. • One (1) SDM 3000 AUX I/O. • Three (3) Enhanced Conventional Channel Gateways. • Two (2) APX 7500 Consolettes. • NICE Logging Equipment. • Spares. The MCC 7100 Console system for Water and Gas Utilities Dispatch consists of the following equipment: • Two (2) MCC 7100 Operator Positions. • Two (2) 19-inch non-touch screen LED monitors. • Four (4) Desktop Speakers. • Four (4) Headset Jacks. • Four (4) Noise Canceling Single Muff Headset. • Two (2) Footswitches. • Two (2) Site Switches. • Two (2) Site Routers. • One (1) Conventional Site Controller. • One (1) SDM 3000 AUX I/O. • One (1) Enhanced Conventional Channel Gateways. • Two (2) APX 7500 Consolettes. • One (1) NICE Playback Station. • Two (2) Optional MCC 7100 Operator Positions. The APX 7500 Consolettes for Utilities consists of the following equipment: • Three (3) APX 7500 Consolettes. • Three (3) MCD 5000 Desksets. • Three (3) Wireless Headsets. • Antenna System. The APX 7500 Consolettes for Public Works consists of the following equipment: • Five (5) APX 7500 Consolettes. • Five (5) MCD 5000 Desksets. • One (1) Six Channel Control Station Combiner. • Antenna System. • One (1) 7.5 foot Rack. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted System Description 1-3 1.2.1 Architecture and Components Figure 1-1: MCC 7500 Typical Operator Position The MCC 7500’s flexible IP architecture enables interfaces and components to be distributed where they are needed. CCGW’s can be located at conventional-only Radio sites or they can be located at Trunking Radio sites, the master site, or at console sites if that is where the conventional stations will reside. Aux I/O Servers are placed anywhere in the zone, closest to where they are needed The VPM connects to the console site LAN switch and communicates with the dispatch console PC via Ethernet. Each dispatch position has its own PC and its own VPM. The VPM is designed to be located at the Dispatch position. The VPM provides all the audio processing services and encryption/decryption services for the VPM-based radio console. It is capable of supporting audio level adjustments, summing and filtering. It is also capable of supporting multiple simultaneous streams of audio. The VPM can support multiple simultaneous encryption/decryption sessions using multiple algorithms and multiple secure keys. VPM Encryption/decryption capabilities The addition of secure capability to the dispatch position allows true end to end encryption in the radio system. In this dispatch center design, the MCC7500 VPMs has been equipped with the AES encryption algorithm. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted System Description 1-4 Figure 1-2: MCC 7500 Hardware and Architecture with VPM 1.2.1.1 Telephone/Headset Port The Telephone/Headset Port allows an external telephone set to be connected to the dispatch console. The dispatch console’s headsets can then be used to communicate on both the radio system and the telephone set. 1.2.1.2 Console Logging Motorola has partnered with NICE Systems to provide a highly-reliable, robust logging solution that can be tailored to meet the demanding needs of mission-critical entities. The MCC 7000 series dispatch console system proposed to the City of Palo Alto includes a logging recorder subsystem that enables the recording of local analog and telephony and replay of trunked audio that is recorded at the SVRCS Master Logger and other information associated with real-time conversations over the network. These capabilities will provide the City of Palo Alto personnel with clear audio and enough information to easily understand the context and content of any recorded transmission. This proposal includes a analog channel logging recorder capable of recording 21 simultaneous conversations. In addition to recording audio, the logging recorder has the ability to capture the following information if supported: • Talkgroup and channel information. • User identification such as unit ID and alias. • Call type such as Talkgroup Call, Telephone Patch Call, Emergency Call, etc. • Non-voice events such as Call Alerts, Radio Status Check, Radio Message, etc. This information is available for display to the user upon playback, and can be searched by the user in order to retrieve the desired call. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted System Description 1-5 The logging recorder’s capacity is based on the number of radio transmissions it needs to record simultaneously, not on the number of channels that it will record. A call can be saved either as a complete call (audio and any information associated with the call) or as a simple .wav file. Files saved as complete calls must be played using the Scenario Replay application included with the logging recorder. Files saved as .wav files can be played on any application that supports them. The NICE Inform – Playback and Incident Management NICE Inform is a full-spectrum incident information management solution that captures, consolidates, manages, and analyzes incident information from multimedia sources for faster incident reconstruction, greater insight and improved response. NICE Inform is a browser-based application suite for organizations that pieces together calls in a highly visual and intuitive way; all laid out in a time sequence on a graphical display. It is a modular suite of applications comprised of: Reconstruction Licenses for - Search / Playback / Save functionality for quick multimedia and multi- source search and playback of calls. Organizer License - Organize and manage audio files as well as other media files (such as photos, video, etc.) in a secure folder. Also provides digital authentication of files and a Media Player for exporting recordings in a secure manner to third parties. Monitor License - For Supervisor visibility to real-time communications in the call center. Administrator applications - includes system administrator, user administration, and audit applications. Long Term Logging Port Long term audio recording is used to record a portion of the inbound and outbound audio present on a specific dispatch console. These recordings are typically archived for long-term storage, and provide a historical record of the radio communications made at a given dispatch console. The long term logging port allows an external logging recorder to be connected to a dispatch console. The audio that appears on this output is configurable, but is typically the audio that was transmitted and/or received at that dispatch console. The configuration of audio to be presented at this port is tied to the physical dispatch console, so that no matter what user is logged into the console, the same type of audio is logged. The long term logging port can be configured to log any combination of the audio sources listed below: • Audio received from the currently selected radio resources (note that the level of this audio is not affected by either the individual volume setting of the radio resource or the master volume control on the speaker or headset jack). • Microphone audio being transmitted to the currently selected radio resources by this dispatch console user. • Microphone audio being transmitted to unselected radio resources by this dispatch console user. • Any tones generated by the dispatch console that appear in its speakers (trunking tones, emergency tones, etc.). • Tones generated by an external paging encoder. Note that this output may be used with an instant recall recorder as well as a long term logging recorder. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted System Description 1-6 1.2.1.3 Conventional Channel Gateway (CCGW) Conventional channels are much more integrated into the trunking systems than in previous radio – console configurations. The zone controller manages conventional channels in a manner similar to how it manages trunked talk groups. The physical interface to the analog conventional stations also changes from previous radio systems. Doing this provides two key benefits: 1. It allows the conventional audio to use the same transport network as the trunked audio. 2. It reduces the number of individual interface devices in the radio system. The portion of the router hardware and software that supports the conventional stations is called the Conventional Channel Gateway (CCGW). Conventional Channel Gateways (CCGWs) are used to interface analog and ASTRO25 conventional channels to the ASTRO 25 radio system infrastructure. CCGWs provide 4-wire analog interfaces for analog channels and V.24 and IP digital interfaces for ASTRO 25 conventional channels. The high density version of the ECCGW contains eight analog ports and eight V.24 ports plus an Ethernet port. Up to sixteen conventional channels can be connected to the analog and V.24 ports. The sixteen channels can be mixtures of analog, MDC 1200, ACIM Link, digital or mixed mode. In addition to the sixteen channels connected to ports, up to sixteen IP based channels can be supported. This brings the total number of channels supported on the high density version to thirty-two. Motorola is providing the Enhanced Conventional channel Gateway (ECCGW) to allow for the MCC7500 to interface to Palo Alto’s existing analog channels as well as share channels with Los Altos and Mountain View. 1.2.1.4 Conventional Site Controller (CSC) The CSC allows dispatch console users to continue to access and control local conventional channels if connectivity to the radio system’s controller is lost. This mode of operation is often called “fallback operation” or “site conventional operation”. All dispatch consoles, archiving interface servers and CCGWs continuously monitor their connections to the radio system’s controller. If they detect that the connections have failed, they check their configuration data to see if a CSC is present in their console site. If a CSC does exist, they will automatically switch over to it. Any archiving interface servers located at the console site with the CSC will also continue to record calls on local conventional channels. 1.2.1.5 Auxiliary Inputs/Outputs The SDM3000 RTU is used to support most dispatch console Aux I/O needs. The SDM3000 RTU is rack mountable in a standard 19 inch rack and is one rack unit high. SDM3000 RTUs can be physically located at console sites, trunking RF sites or analog conventional RF sites. The dispatch consoles and RTUs communicate with each other across the radio system’s IP transport network. This allows much greater flexibility in putting Aux I/Os where they are needed. The SDM3000 RTU (Table 1-1 next page) is capable of supporting up to 16 outputs and 48 inputs. Expansion chassis (each being the same physical size as the SDM3000 RTU) can be added to increase the number of inputs and outputs as follows: City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted System Description 1-7 Table 1-1: Auxiliary Inputs/Outputs Number of Output Relays Number of Input Buffers Single SDM3000 RTU 16 48 Single SDM3000 RTU with 32 96 1 expansion chassis 1.2.2 Additional MCC 7500 Console Dispatch System Features The MCC 7500 is a feature-rich, modular platform that has been configured to maximize the utility of the system to your unique needs. The following sections provide discussion of the key MCC 7500 IP Dispatch Console features. 1.2.2.1 Integrated with the ASTRO 25 Network The MCC 7500 IP Dispatch Console is seamlessly integrated into the ASTRO 25 Mission Critical Trunking Network. The console connects directly to the SVRCS Master Site via an IP backbone. This IP approach eliminates the need for space-consuming backroom electronics. All dispatch activity is performed over IP. The physical space needed to accommodate the MCC 7500 console position is no more than required for a personal computer. Both trunked talk groups and conventional radio channels can be accessed and controlled from one MCC 7500 IP Dispatch Console over the same network, thus reducing overall transport costs. All conventional resources become shared resources within the ASTRO 25 network, reducing the need for duplicate fixed network equipment. Inherent integration with the ASTRO 25 network means: • Voice quality is optimized, eliminating the potential for audio degradation. • Quality of service is maintained, regardless of the size of the system. • IP network redundancy ensures call traffic delivery. • Rapid call set up times that remain constant, regardless of the size of the system. • Improved bandwidth efficiencies reduce transport costs. • Flexibility in usage of the operator configuration – any operator can do their job from any position in the network. • Inherent access to all system resources within the network by eliminating equipment and coverage constraints, providing dispatch priority to reach any user when needed. 1.2.2.2 Proven Graphical User Interface The MCC 7500’s intuitive graphical user interface (GUI) optimizes user efficiency. The MCC 7500 user interface is an enhanced version of Motorola’s proven radio dispatch GUI. For new users, the graphical icons and unsurpassed flexibility make the MCC 7500 console GUI easy to learn and operate. The MCC 7500 GUI is highly configurable and customizable by agency or user to meet dynamic needs and requirements. The MCC 7500 GUI makes the most use of monitor space, maximizing the number of resources a supervisor is able to easily view and control. Features include: • Six (6) screen configurations (folders) for added resource capacity, for shift changes, or for differing radio dispatch scenarios and/or responsibilities. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted System Description 1-8 • Sixteen different radio patch configurations per MCC 7500 IP Dispatch Console. • Call history log for up to 1000 calls. Figure 1-3: Radio Dispatch GUI The radio console computer and software are the user interface to the ASTRO 25 IP network. Figure 1-3 (above) is a screenshot of the MCC 7500 IP Dispatch Console’s Graphical User Interface (GUI). 1.2.2.3 Centralized Network Configuration and Fault Management Centralized configuration is a unique MCC 7500 IP Dispatch Console feature that speeds console set up, enhancement, or expansion efforts and makes the most efficient use of resources. • Configuration of the MCC 7500 IP Dispatch Console positions is accomplished via the User Configuration Manager (UCM). • There is no need to separately maintain or manage configuration databases solely for the radio dispatch equipment. • Redundancy and potential errors from entering radio IDs and other data at multiple locations are eliminated. • Console configuration changes are immediately and automatically distributed to radio dispatch positions. • Call traffic and performance reports for each console can be generated from the Network Manager. • Historical reports can assist in making informed decisions regarding radio console changes for optimal effectiveness and efficiency. • Centralized fault management allows reduced service times, and quicker resolution of issues. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted System Description 1-9 The MCC 7500 IP Dispatch Console is designed to continuously monitor its application software and important hardware elements (PC, voice card, and secure card, VPM) to make sure it is operating efficiently at all times. Network connections and control paths between the consoles and various elements are also monitored to make sure they are operating efficiently. 1.2.2.4 Mission Critical Audio and Tones The MCC 7500 IP Dispatch Console is designed: • To minimize the impact of any momentary glitches in IP audio packet delivery. • With Robust error mitigation methods in place so call audio is not degraded even when the system is heavily loaded in a crisis. This improves dispatcher accuracy to minimize communication errors and repeated transmissions. • To optimize the quality of tones sent to the radio users to improve the accuracy of their interpretation and response. Special protocols are used in the MCC 7500 IP software to enhance the quality of Alert Tones and Channel Marker tones used in trunking, which can be subject to distortion from the Project 25 IMBE vocoder. 1.2.2.5 Reliability and Availability The MCC 7500 IP Dispatch Console and services are optimized for real-time audio, essential for mission critical operations. The MCC 7500 is designed to prioritize emergency calls over other traffic. Queuing of voice is kept to a minimum and calls are transmitted in 450 milliseconds or less. For added assurance of reliable communications, MCC 7500 IP Dispatch Console sites support: • Redundant WAN links on ECOMM to the master site. • A Conventional Site Controller is used to ensure conventional channels remain operational. 1.2.3 MCC 7100 Dispatch Console Component Description Figure 1-5: The MCC 7100 Console Software can be Used on Both Laptop and Desktop Computers The MCC 7100 IP dispatch console is a Motorola mission critical wire-line radio dispatch console system. The MCC 7100 is built on the MCC 7500 high-tier radio dispatch console platform and re-uses the MCC 7500 GUI. The MCC 7100 console offers mobility and versatility at a reduced capacity and lower pricing than the MCC 7500 console. The console provides dispatch users with reliable and City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted System Description 1-10 convenient access to radio resources within the ASTRO 25 infrastructure. The MCC 7100 provides 20 simultaneous voice streams with encryption, eight patches, and 200 Auxiliary Inputs and Outputs. The current design logically places these PCs within the Radio Network Infrastructure (RNI). The MCC 7100 can optionally be placed outside of the RNI through a firewall. When deployed outside the RNI, the MCC 7100 supports up to 10 simultaneous encrypted voice streams. The MCC 7100 supports cohabitation with Microsoft Office, Text Messaging Client and Fire Alerting Clients. A Software Development Kit for the MCC 7100 Dispatch API is available if the City of Palo Alto wishes to use a custom graphical user interface (GUI) on the dispatch console. The MCC 7100 console delivers true wire-line capability including Console Priority to give dispatchers immediate access to a talkgroup or conventional channel. The MCC 7100 requires no external voice processing hardware (no VPM hardware) to perform dispatch operations. Audio vocoding and encryption are performed under the Windows Operating System. The MCC 7100 supports software based end-to-end encryption. Software based encryption is supported with a key file import for systems with the included Key Management Facility system. The reduced hardware configuration is ideal for installation in the limited spaces. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Equipment List 2-1 SECTION 2 EQUIPMENT LIST 2.1 CITY OF PALO ALTO EQUIPMENT QTY NOMENCLATURE DESCRIPTION 1 SQM01SUM0273 MASTER SITE CONFIGURATION 1 CA02629AA ENH: EXPAND 7.15 2 UA00156AA ADD: MCC7500 CONSOLE LICENSES (QTY 5) 1 B1905 MCC 7500 ASTRO 25 SOFTWARE 5 B1933 MOTOROLA VOICE PROCESSOR MODULE 5 CA01642AA ADD: MCC 7500 BASIC CONSOLE FUNCTIONALITY SOFTWARE LICENSE 5 CA01643AA ADD: MCC 7500 / MCC 7100 TRUNKING OPERATION 5 CA00147AF ADD: MCC 7500 SECURE OPERATION 5 CA00182AB ADD: AES ALGORITHM 5 CA01644AA ADD: MCC 7500 /MCC 7100 ADV CONVL OPERATION 5 CA00140AA ADD: AC LINE CORD, NORTH AMERICAN 5 DSE000166 ELO 1929LM 19IN LED COLOR MONITOR 5 TT2833 COMPUTER, Z440 WORKSTATION WINDOWS 7 (NON RETURNABLE) 5 T7449 WINDOWS SUPPLEMENTAL TRANS CONFIG 7 DSRMP615A SPD, TYPE 3, 120V RACK MOUNT, 15A PLUG-IN W/ (6) 15A NEMA 5-15 OUTLETS 10 B1912 MCC SERIES DESKTOP SPEAKER 10 B1913 MCC SERIES HEADSET JACK 10 RLN6099A HDST MODULE BASE W/PTT, 25' CBL 10 RMN5080B SUPRAPLUS NC DUAL MUFF HEADSET 5 DSTWIN6328A PROVIDES ONE DUAL PEDAL FOOTSWITCH FOR USE WITH MOTOROLA MCC 7500 DISP 5 T7885 MCAFEE WINDOWS AV CLIENT 2 CLN1856 2620-24 ETHERNET SWITCH 2 SQM01SUM0205 GGM 8000 GATEWAY 2 CA01616AA ADD: AC POWER 1 F4543 SITE MANAGER BASIC 1 VA00874 ADD: AUX I-O SERV FW CURR ASTRO REL 1 V266 ADD: 90VAC TO 260VAC PS TO SM 3 V592 AAD TERM BLCK & CONN WI 1 T7038 GCP 8000 SITE CONTROLLER 1 CA00303AA ADD: QTY (1) SITE CONTROLLER 1 X153AW ADD: RACK MOUNT HARDWARE 1 CA01136AA ADD: MCC 7500 CONVEN SITE OPER 3 SQM01SUM0205 GGM 8000 GATEWAY 3 CA01616AA ADD: AC POWER 3 CA02086AA ADD: HIGH DENSITY ENH CONV GATEWAY City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Equipment List 2-2 1 TRN7343 SEVEN AND A HALF FOOT RACK 2 DSTSJ100BT SPD, RJ-48 8 PIN, 10/100 BASE T TSJ PROTECTS/PASSES ON ALL 8 PIN 1 DSTSJADP RACK MOUNT GROUND BAR, 19 IN FOR TSJ AND WPH SERIES DATA SPDS 4 QLN3437 FIELD ADD MCC 7500 SDK TECHNICAL SUPPORT 2 L30URS9PW1 N APX7500 SINGLE BAND 7/800 2 G806 ADD: ASTRO DIGITAL CAI OPERATION 2 G51 ENH: SMARTZONE OPERATION APX 2 GA00580 ADD: TDMA OPERATION 2 G361 ADD: P25 TRUNKING SOFTWARE 2 L999 ADD: FULL FP W/05/KEYPAD/CLOCK/VU 2 W969 ADD: MULTIPLE KEY ENCRYPTION OPERATION 2 G843 ADD: AES ENCRYPTION APX 2 W382 ADD: CONTROL STATION DESK GCAI MIC 2 G996 ENH: OVER THE AIR PROVISIONING 2 CA01598 ADD: AC LINE CORD US 2 GA00249AB ADD: 3 YEAR SERVICE FROM THE START COMPREHENSIVE 2 HKN6184C CABLE CH, PROGRAMMING,USB 2 HKN6233C APX CONSOLETTE RACK MOUNT KIT 2 DSANT790F2 TELEWAVE (763-869MHZ) 2.5DB GAIN, FIBERGLASS OMNI COLLINEAR ANTENNA 4 DS245173 245173 COLD SHRINK WEATHERPROOFKIT, 1/2 TO 1/2 4 DDN1089 L4TNF-PSA TYPE N FEMALE PS FOR 1/2 IN CABLE 250 L1705 LDF4-50A CABLE: 1/2" LDF HELIAX POLY JKT PER FOOT 4 DDN1088 L4TNM-PSA TYPE N MALE PS FOR 1/2 IN CABLE 6 DSGKSUNV GK-SUNV SMALL UNIVERSAL GROUNDING KIT 4 DSISNEMPC2MA RF SPD, 125MHZ-1.0GHZ, COAXIAL NUCLEAR EMP, NM ANT NF EQUIPMENT SIDE 4 DDN9682 F4PNMV2-HC 1/2" TYPE N MALE PLATED CONNECTOR 1 BVN1013 MKM 7000 Console Alias Manager Software 1 T8150 PREMIERONE CAD LICENSES 5 CA02728AA ADD: PREMIERONE CAD CLIENT WITH MAPPING LICENSE UTILITIES 2 B1939 MCC 7100 IP Dispatch Position Main Model 1 B1940 MCC 7100 DVD 2 CA01642AB ADD: MCC 7100 BASIC CONSOLE FUNCTIONALITY SOFTWARE LICENSE 2 CA01644AA ADD: MCC 7500 /MCC 7100 ADV CONVL OPERATION 2 CA01643AA ADD: MCC 7500 / MCC 7100 TRUNKING OPERATION 2 CA02180AA ADD: MCC 7100 SECURE OPERATION 2 CA02092AA ADD: SOFTWARE AES, DES-OFB, ADP ENCRYPT KEY FILE MGMT 2 HKVN4159A 10 CHANNEL SW LICENSE 2 DSTG191 TECH GLOBAL EVOLUTION SERIES 19INCH NON TOUCH 2 TT2833 COMPUTER, Z440 WORKSTATION WINDOWS 7 (NON RETURNABLE) 2 T7449 WINDOWS SUPPLEMENTAL TRANS CONFIG 4 DSRMP615A SPD, TYPE 3, 120V RACK MOUNT, 15A PLUG-IN W/ (6) 15A NEMA 5-15 OUTLETS 2 B1941 USB AUDIO INTERFACE MODULE 2 CDN6673 CREATIVE LABS INSPIRE A60 4 B1913 MCC SERIES HEADSET JACK City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Equipment List 2-3 2 DSTWIN6328A PROVIDES ONE DUAL PEDAL FOOTSWITCH FOR USE WITH MOTOROLA MCC 7500 DISP 2 T7885 MCAFEE WINDOWS AV CLIENT 2 CLN1856 2620-24 ETHERNET SWITCH 2 SQM01SUM0205 GGM 8000 GATEWAY 2 CA01616AA ADD: AC POWER 1 F4543 SITE MANAGER BASIC 1 VA00874 ADD: AUX I-O SERV FW CURR ASTRO REL 1 V266 ADD: 90VAC TO 260VAC PS TO SM 3 V592 AAD TERM BLCK & CONN WI 1 T7038 GCP 8000 SITE CONTROLLER 1 CA00303AA ADD: QTY (1) SITE CONTROLLER 1 X153AW ADD: RACK MOUNT HARDWARE 1 CA01136AA ADD: MCC 7500 CONVEN SITE OPER 1 SQM01SUM0205 GGM 8000 GATEWAY 1 CA01616AA ADD: AC POWER 1 CA02086AA ADD: HIGH DENSITY ENH CONV GATEWAY 1 TRN7343 SEVEN AND A HALF FOOT RACK 1 DSTSJ100BT SPD, RJ-48 8 PIN, 10/100 BASE T TSJ PROTECTS/PASSES ON ALL 8 PIN 1 DSTSJADP RACK MOUNT GROUND BAR, 19 IN FOR TSJ AND WPH SERIES DATA SPDS 2 L30URS9PW1 N APX7500 SINGLE BAND 7/800 2 G806 ADD: ASTRO DIGITAL CAI OPERATION 2 G51 ENH: SMARTZONE OPERATION APX 2 G361 ADD: P25 TRUNKING SOFTWARE 2 GA00580 ADD: TDMA OPERATION 2 G996 ENH: OVER THE AIR PROVISIONING 2 L999 ADD: FULL FP W/05/KEYPAD/CLOCK/VU 2 W969 ADD: MULTIPLE KEY ENCRYPTION OPERATION 2 G843 ADD: AES ENCRYPTION APX 2 W382 ADD: CONTROL STATION DESK GCAI MIC 2 CA01598 ADD: AC LINE CORD US 2 GA00249AB ADD: 3 YEAR SERVICE FROM THE START COMPREHENSIVE 1 HKN6184C CABLE CH, PROGRAMMING,USB 2 HKN6233C APX CONSOLETTE RACK MOUNT KIT 2 DSANT790F2 TELEWAVE (763-869MHZ) 2.5DB GAIN, FIBERGLASS OMNI COLLINEAR ANTENNA 4 DS245173 245173 COLD SHRINK WEATHERPROOFKIT, 1/2 TO 1/2 4 DDN1089 L4TNF-PSA TYPE N FEMALE PS FOR 1/2 IN CABLE 250 L1705 LDF4-50A CABLE: 1/2" LDF HELIAX POLY JKT PER FOOT 4 DDN1088 L4TNM-PSA TYPE N MALE PS FOR 1/2 IN CABLE 6 DSSG1212B2U SG12-12B2U, SUREGROUND KIT FOR 1/2 INCH CABLE 4 DSISNEMPC2MA RF SPD, 125MHZ-1.0GHZ, COAXIAL NUCLEAR EMP, NM ANT NF EQUIPMENT SIDE 4 DDN9682 F4PNMV2-HC 1/2" TYPE N MALE PLATED CONNECTOR 2 DS12086719 CHATSWORTH 19W INCH ADJUSTABLE TIE-DOWN TOWER BRACKET- BLACK 2 DDN9748 19 INCH BLACK SHELF 1 DSRMP615A SPD, TYPE 3, 120V RACK MOUNT, 15A PLUG-IN W/ (6) 15A NEMA 5-15 OUTLETS City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Equipment List 2-4 1 DDN1698 ADDITIONAL NICE INFORM RECONSTRUCTION CONCURRENT USER LICENSE 1 TT2833 COMPUTER, Z440 WORKSTATION WINDOWS 7 (NON RETURNABLE) 1 T7885 MCAFEE WINDOWS AV CLIENT 1 DSTG191 TECH GLOBAL EVOLUTION SERIES 19INCH NON TOUCH UTILITIES OPTIONAL 2 MCC 7100s 2 B1939 MCC 7100 IP Dispatch Position Main Model 1 B1940 MCC 7100 DVD 2 CA01642AB ADD: MCC 7100 BASIC CONSOLE FUNCTIONALITY SOFTWARE LICENSE 2 CA01644AA ADD: MCC 7500 /MCC 7100 ADV CONVL OPERATION 2 CA01643AA ADD: MCC 7500 / MCC 7100 TRUNKING OPERATION 2 CA02180AA ADD: MCC 7100 SECURE OPERATION 2 CA02092AA ADD: SOFTWARE AES, DES-OFB, ADP ENCRYPT KEY FILE MGMT 2 HKVN4159A 10 CHANNEL SW LICENSE 2 DSTG191 TECH GLOBAL EVOLUTION SERIES 19INCH NON TOUCH 2 TT2833 COMPUTER, Z440 WORKSTATION WINDOWS 7 (NON RETURNABLE) 2 T7449 WINDOWS SUPPLEMENTAL TRANS CONFIG 2 DSRMP615A SPD, TYPE 3, 120V RACK MOUNT, 15A PLUG-IN W/ (6) 15A NEMA 5-15 OUTLETS 2 B1941 USB AUDIO INTERFACE MODULE 2 CDN6673 CREATIVE LABS INSPIRE A60 4 B1913 MCC SERIES HEADSET JACK 2 DSTWIN6328A PROVIDES ONE DUAL PEDAL FOOTSWITCH FOR USE WITH MOTOROLA MCC 7500 DISP 2 T7885 MCAFEE WINDOWS AV CLIENT UTILITIES CONSOLETTES AND REMOTES 3 L30URS9PW1 N APX7500 SINGLE BAND 7/800 3 G806 ADD: ASTRO DIGITAL CAI OPERATION 3 G51 ENH: SMARTZONE OPERATION APX 3 G361 ADD: P25 TRUNKING SOFTWARE 3 GA00580 ADD: TDMA OPERATION 3 G996 ENH: OVER THE AIR PROVISIONING 3 L999 ADD: FULL FP W/05/KEYPAD/CLOCK/VU 3 W969 ADD: MULTIPLE KEY ENCRYPTION OPERATION 3 G843 ADD: AES ENCRYPTION APX 3 W382 ADD: CONTROL STATION DESK GCAI MIC 3 CA01598 ADD: AC LINE CORD US 3 GA00249AB ADD: 3 YEAR SERVICE FROM THE START COMPREHENSIVE 1 HKN6184C CABLE CH, PROGRAMMING,USB 3 HKN6233C APX CONSOLETTE RACK MOUNT KIT 3 DSANT790F2 TELEWAVE (763-869MHZ) 2.5DB GAIN, FIBERGLASS OMNI COLLINEAR ANTENNA 6 DS245173 245173 COLD SHRINK WEATHERPROOFKIT, 1/2 TO 1/2 6 DDN1089 L4TNF-PSA TYPE N FEMALE PS FOR 1/2 IN CABLE 250 L1705 LDF4-50A CABLE: 1/2" LDF HELIAX POLY JKT PER FOOT 6 DDN1088 L4TNM-PSA TYPE N MALE PS FOR 1/2 IN CABLE 6 DSSG1212B2U SG12-12B2U, SUREGROUND KIT FOR 1/2 INCH CABLE 6 DSISNEMPC2MA RF SPD, 125MHZ-1.0GHZ, COAXIAL NUCLEAR EMP, NM ANT NF EQUIPMENT SIDE 6 DDN9682 F4PNMV2-HC 1/2" TYPE N MALE PLATED CONNECTOR City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Equipment List 2-5 1 TRN7343 SEVEN AND A HALF FOOT RACK 1 DSTSJ100BT SPD, RJ-48 8 PIN, 10/100 BASE T TSJ PROTECTS/PASSES ON ALL 8 PIN 1 DSTSJADP RACK MOUNT GROUND BAR, 19 IN FOR TSJ AND WPH SERIES DATA SPDS 2 DSRMP615A SPD, TYPE 3, 120V RACK MOUNT, 15A PLUG-IN W/ (6) 15A NEMA 5-15 OUTLETS 3 F2380 MCD 5000 DESKSET 3 FHN7469 MCD 500 DESKSET / RGU POWER SUPPLY 3 FKN8695 ETHERNET CABLE 10' WITH RED & BLACK LABELS 3 FHN7470 MCD 5000 DESKSET HEADSET JACK BOX & CABLE 3 RMN5077B SUPRAPLUS NC DUAL MUFF HEADSET 3 DSCA12CD PTT ADAPTER FOR ALL H SERIES HEADSETS 1 F7979 MCD 5000 DESKSET RADIO GATEWAY UNIT (RGU) 1 FHN7469 MCD 5000 DESKSET / RGU POWER SUPPLY WITH USA POWER CORD 1 FKN8695 ETHERNET CABLE 10' WITH RED & BLACK LABELS 3 FKN8695 ETHERNET CABLE 10' WITH RED & BLACK LABELS 1 CLN1856 2620-24 ETHERNET SWITCH PUBLIC WORKS 5 L30URS9PW1 N APX7500 SINGLE BAND 7/800 5 G806 ADD: ASTRO DIGITAL CAI OPERATION 5 G51 ENH: SMARTZONE OPERATION APX 5 G361 ADD: P25 TRUNKING SOFTWARE 5 GA00580 ADD: TDMA OPERATION 5 G996 ENH: OVER THE AIR PROVISIONING 5 L999 ADD: FULL FP W/05/KEYPAD/CLOCK/VU 5 W969 ADD: MULTIPLE KEY ENCRYPTION OPERATION 5 G843 ADD: AES ENCRYPTION APX 5 W382 ADD: CONTROL STATION DESK GCAI MIC 5 CA01598 ADD: AC LINE CORD US 5 GA00249AB ADD: 3 YEAR SERVICE FROM THE START COMPREHENSIVE 5 HKN6184C CABLE CH, PROGRAMMING,USB 5 HKN6233C APX CONSOLETTE RACK MOUNT KIT 1 DSHC111W106F HC111W1-06F, 746-806 MHZ 6 CH HYBRID CNTRL STATION COMBINER 1 DSANT790F2 TELEWAVE (763-869MHZ) 2.5DB GAIN, FIBERGLASS OMNI COLLINEAR ANTENNA 6 DS245173 245173 COLD SHRINK WEATHERPROOFKIT, 1/2 TO 1/2 6 DDN1089 L4TNF-PSA TYPE N FEMALE PS FOR 1/2 IN CABLE 250 L1705 LDF4-50A CABLE: 1/2" LDF HELIAX POLY JKT PER FOOT 6 DDN1088 L4TNM-PSA TYPE N MALE PS FOR 1/2 IN CABLE 9 DSGKSUNV GK-SUNV SMALL UNIVERSAL GROUNDING KIT 6 DSISNEMPC2MA RF SPD, 125MHZ-1.0GHZ, COAXIAL NUCLEAR EMP, NM ANT NF EQUIPMENT SIDE 6 DDN9682 F4PNMV2-HC 1/2" TYPE N MALE PLATED CONNECTOR 1 TRN7343 SEVEN AND A HALF FOOT RACK 1 DSTSJ100BT SPD, RJ-48 8 PIN, 10/100 BASE T TSJ PROTECTS/PASSES ON ALL 8 PIN 1 DSTSJADP RACK MOUNT GROUND BAR, 19 IN FOR TSJ AND WPH SERIES DATA SPDS 2 DSRMP615A SPD, TYPE 3, 120V RACK MOUNT, 15A PLUG-IN W/ (6) 15A NEMA 5-15 OUTLETS City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Equipment List 2-6 5 F2380 MCD 5000 DESKSET 5 FHN7469 MCD 5000 DESKSET / RGU POWER SUPPLY WITH USA POWER CORD 5 FKN8695 ETHERNET CABLE 10' WITH RED & BLACK LABELS 2 F7979 MCD 5000 DESKSET RADIO GATEWAY UNIT (RGU) 2 FHN7469 MCD 5000 DESKSET / RGU POWER SUPPLY WITH USA POWER CORD 10 FKN8695 ETHERNET CABLE 10' WITH RED & BLACK LABELS 1 CLN1856 2620-24 ETHERNET SWITCH NRX RECORDER BUNDLE 1 TT2671 32 CHANNEL NRX BASE BUNDLE 1 DDN1693 ANALOG AUDIO BOARD - 24 PORTS 21 TT05771AA ADD: ANALOG CHANNEL FLAG 1 DDN1690 ANI-ALI DRIVER 1 DDN7532 SNMP MANAGEMENT APPLICATION 1 DDN2109 1TB LFF DRIVE FOR NRX SERVER BUNDLE OR EXPAN 1 DDN1691 ACTIVITY DETECTION BY EXTERNAL TRIGGER (SQUELCH) (24 INPUTS) (MAX 1) 1 TT05767AB ADD: 32 CHANNEL PARALLEL RECORDING BUNDLE - BASE SYSTEM 1 DDN1693 ANALOG AUDIO BOARD - 24 PORTS 21 TT05771AA ADD: ANALOG CHANNEL FLAG 1 DDN1690 ANI-ALI DRIVER 1 DDN2109 1TB LFF DRIVE FOR NRX SERVER BUNDLE OR EXPAN 1 DDN1691 ACTIVITY DETECTION BY EXTERNAL TRIGGER (SQUELCH) (24 INPUTS) (MAX 1) INFORM BUNDLES 1 TT2672 INFORM R7.0 TURNKEY BUNDLE SERVER, 10 CHANNEL LIC, 1 RECON, 1 MONITOR 2 TT05786AB ADD: ADDITIONAL 10 INFORM CHANNEL LICENSES 3 DDN2102 REDUNDANT 10 CHANNEL NICE INFORM VOICE CHANNEL LICENSE INFORM OPTIONS 1 DDN1697 INFORM MATRIX SERVER LICENSE 2 DDN1698 ADDITIONAL NICE INFORM RECONSTRUCTION CONCURRENT USER LICENSE 3 DDN1699 ADDITIONAL NICE INFORM MONITOR CONCURRENT USER LICENSES, PRICE PER LIC 5 DDN1700 NICE INFORM VERIFY CONCURRENT USER LICENSE 3 DDN1701 NICE INFORM ORGANIZER CONCURRENT USER LICENSES, PRICE PER LICENSE 1 DDN1702 NICE INFORM MEDIA PLAYER LICENSE - PRICE PER INFORM SERVER 1 DDN1870 INFORM REPORTER MODULE LICENSE QA COMPONENTS 3 DDN1871 INFORM EVALUATOR MODULE LICENSE 20 DDN1872 INFORM OPERATOR LICENSE 20 DDN1873 USER REGISTRATION APPLICATION LIC 1 DDN2093 17IN LCD DRAWER WITH KEYBOARD AND MOUSE, KVM 8 PORTS, CABLES NICE SPARES 1 DDN2116A SPARES TO SUPPORT ML350 GEN 9 NRX LOGGERS 1 DQNRXANALOGBOARD ANALOG AUDIO BOARD - 24 PORTS City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-1 SECTION 3 STATEMENT OF WORK 3.1 OVERVIEW This Statement of Work (SOW) describes the deliverables to be furnished to City of Palo Alto. The tasks described herein will be performed by Motorola and City of Palo Alto to implement the solution described in the System Description. It describes the actual work involved in installation, identifies the installation standards to be followed, and clarifies the responsibilities for both Motorola and City of Palo Alto during the project implementation. Specifically, this SOW provides: • A summary of the phases and tasks to be completed within the project lifecycle. • A list of the deliverables associated with the project. • A description of the responsibilities for both Motorola and City of Palo Alto. • The qualifications and assumptions taken into consideration during the development of this project. This SOW provides the most current understanding of the work required by both parties to ensure a successful project implementation. It is understood that this SOW is a working document, and that it will be revised as needed to incorporate any changes associated with contract negotiations, Contract Design Review (CDR), and any other change orders that may occur during the execution of the project. The City of Palo Alto console project consists of: • Five MCC7500 Operator Positions. • One Conventional Site Controller. • Three Enhanced Conventional Channel Gateway (ECCGW) to support up to 24 Conventional Channels. • Two Back up APX 7500 Consolettes. • Antenna System. • Connection to SVRIA Master Site. • Aux I/O equipment. • NICE Logging equipment. • Spares. The Utilities console project consists of: • Two MCC 7100 Operator Positions priced in Table 7-2: Pricing Summary for Utilities Water and Gas Dispatch. • Two Optional MCC 7100 Operator Positions priced in Table 7-3: Pricing Summary for Utilities Optional Two MCC 7100. • One Conventional Site Controller. • Two Back up APX 7500 Consolettes and antenna system. • One Enhanced Conventional Channel Gateway (ECCGW) to support up to 8 Conventional Channels. • Connection to Palo Alto Main Dispatch. • Aux I/O equipment. • 3 APX 7500 Consolettes and antenna system priced in Table 7-4: Pricing Summary for Utilities Consolettes and Remotes. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-2 • 3 MCD 5000 Remote Desksets priced in Table 7-4: Pricing Summary for Utilities Consolettes and Remotes. The Public Works consoles project consists of: • Five APX7500 Consolettes. • Five MCD 5000 Remote Desksets. • Antenna System. • 6 Channel Control Station Combiner. • One Ethernet Switch. • 7.5’ Rack 3.2 ASSUMPTIONS Motorola has based the system design on information provided by City of Palo Alto and an analysis of their system requirements. All assumptions have been listed below for review. Should Motorola’s assumptions be deemed incorrect or not agreeable to City of Palo Alto, a revised proposal with the necessary changes and adjusted costs may be required. Changes to the equipment or scope of the project after contract may require a change order. • All work is to be performed during normal work hours, Monday through Friday 8:00 a.m. to 5:00 p.m. • Motorola is making the assumptions that the MCC 7500 dispatch centers and MCC7100 console will connect to the new SVRIA Master site. • Dispatch Centers, Utilities and Public Works Sites meets or exceeds R56 site standards. The City of Palo Alto is responsible for providing a master ground at each location. • AC power and battery backup for all sites is provided by the City of Palo Alto. • Redundant link connectivity on ECOMM is required. The Motorola demark should be located in the equipment room. • The SVRIA ECOMM committee will allocate the link connectivity. The City of Palo Alto must coordinate the link requirements with the ECOMM committee. • Any site/location upgrades or modifications are the responsibility of Palo Alto. Motorola can support this effort with a change order if required. 3.3 CONTRACT 3.3.1 Contract Award (Milestone) • The City of Palo Alto and Motorola execute the contract and both parties receive all the necessary documentation. 3.3.2 Contract Administration Motorola Responsibilities: • Assign a Project Manager, as the single point of contact with authority to make project decisions. • Assign resources necessary for project implementation. • Set up the project in the Motorola information system. • Schedule the project kickoff meeting with City of Palo Alto. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-3 Customer Responsibilities: • Assign a Project Manager, as the single point of contact responsible for City of Palo Alto-signed approvals. • Assign other resources necessary to ensure completion of project tasks for which City of Palo Alto is responsible. Completion Criteria: • Motorola internal processes are set up for project management. • Both Motorola and City of Palo Alto assign all required resources. • Project kickoff meeting is scheduled. 3.3.3 Project Kickoff Motorola Responsibilities: • Conduct a project kickoff meeting during the CDR phase of the project. • Ensure key project team participants attend the meeting. • Introduce all project participants attending the meeting. • Review the roles of the project participants to identify communication flows and decision-making authority between project participants. • Review the overall project scope and objectives with City of Palo Alto. • Review the resource and scheduling requirements with City of Palo Alto. • Review the Project Schedule with City of Palo Alto to address upcoming milestones and/or events. • Review the teams’ interactions (Motorola and City of Palo Alto), meetings, reports, milestone acceptance, and City of Palo Alto’s participation in particular phases. Customer Responsibilities: • City of Palo Alto’s key project team participants attend the meeting. • Review Motorola and City of Palo Alto’s responsibilities. Completion Criteria: • Project kickoff meeting completed. • Meeting notes identify the next action items. 3.4 CONTRACT DESIGN REVIEW 3.4.1 Review Contract Design Motorola Responsibilities: • Meet with City of Palo Alto project team. • Review the operational requirements and the impact of those requirements on various equipment configurations. • Establish a defined baseline for the system design and identify any special product requirements and their impact on system implementation. • Review the System Design, Statement of Work, Project Schedule, and Acceptance Test Plan, and update the contract documents accordingly. • Discuss the proposed Cutover Plan and methods to document a detailed procedure. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-4 • Submit design documents to City of Palo Alto for approval. These documents form the basis of the system, which Motorola will manufacture, assemble, stage, and install. • Prepare equipment layout plans for staging. • Establish demarcation point (supplied by the Motorola system engineer) to define the connection point between the Motorola-supplied equipment and City of Palo Alto-supplied link(s) and external interfaces. Customer Responsibilities: • City of Palo Alto’s key project team participants attend the meeting. • Make timely decisions, according to the Project Schedule. Completion Criteria: • Complete Design Documentation, which may include updated System Description, Equipment List, system drawings, or other documents applicable to the project. • Incorporate any deviations from the proposed system into the contract documents accordingly. • The system design is “frozen” in preparation for subsequent project phases such as Order Processing and Manufacturing. • A Change Order is executed in accordance with all material changes resulting from the Design Review to the contract. 3.4.2 Design Approval (Milestone) • The City of Palo Alto executes a Design Approval milestone document. 3.5 ORDER PROCESSING 3.5.1 Process Equipment List Motorola Responsibilities: • Validate Equipment List by checking for valid model numbers, versions, compatible options to main equipment, and delivery data. • Enter order into Motorola’s Customer Order Fulfillment (COF) system. • Create Ship Views, to confirm with City of Palo Alto the secure storage location(s) to which the equipment will ship. Ship Views are the mailing labels that carry complete equipment shipping information, which direct the timing, method of shipment, and ship path for ultimate destination receipt. • Create equipment orders. • Reconcile the equipment list to the Contract. • Procure third-party equipment if applicable. Customer Responsibilities: • Approve shipping location. Completion Criteria: • Verify that the Equipment List contains the correct model numbers, version, options, and delivery data. • Trial validation completed. • Bridge the equipment order to the manufacturing facility. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-5 3.6 MANUFACTURING AND STAGING 3.6.1 Manufacture Motorola Fixed Network Equipment Motorola Responsibilities: • Manufacture the Fixed Network Equipment (FNE) necessary for the system based on equipment order. Customer Responsibilities: • None. Completion Criteria: • FNE shipped to either the field or the staging facility. 3.6.2 Manufacture Non-Motorola Equipment Motorola Responsibilities: • Procure non-Motorola equipment necessary for the system based on equipment order. Customer Responsibilities: • None. Completion Criteria: • Ship non-Motorola manufactured equipment to the field and/or the staging facility. 3.6.3 Ship to Staging (Milestone) • Ship all equipment needed for staging to Motorola’s factory staging facility in Schaumburg, Illinois [Customer Center for Solutions Integration (CCSi)]. 3.6.4 Stage System Motorola Responsibilities: • Set up and rack the console system equipment as it will be configured in the field at City of Palo Alto Dispatch Center. • Cut and label cables according to the approved CDR documentation. • Label the cables with to/from information to specify interconnection for field installation and future servicing needs. • Power up, program, and test all staged equipment. • Confirm system configuration and software compatibility to the existing system. • Load application parameters on all equipment according to input from Systems Engineering. • Complete programming of the Fixed Network Equipment. • Program the approved templates into the Console-programming template tool. • Inventory the equipment with serial numbers and installation references. • Complete system documentation. • Third party subsystems may be staged at the manufacturer’s facilities and integrated in the field. • Provide a Factory Acceptance Test Plan. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-6 Customer Responsibilities: • Provide information on existing system interfaces as may be required. • Provide information on room layouts or other information necessary for the assembly to meet field conditions. • Review and approve proposed Factory Acceptance Test Plan. Completion Criteria: • System staging completed and ready for testing. 3.6.5 Perform Staging Acceptance Test Procedures Motorola Responsibilities: • Test and validate system software and features. • Functional testing of standard system features. • Conduct console system testing. • Power-up equipment and perform standardized functionality tests. • Perform system burn-in 24 hours a day during staging to isolate and capture any defects. Customer Responsibilities: • Approve Factory Acceptance Testing. 3.6.6 Ship Equipment to Field Motorola Responsibilities: • Pack system for shipment to final destination. • Arrange for shipment to the field. Customer Responsibilities: • None. Completion Criteria: • Equipment ready for shipment to the field. 3.6.7 CCSi Ship Acceptance (Milestone) • All equipment shipped to the field. 3.6.8 Develop Templates Motorola Responsibilities: • Motorola assists City of Palo Alto in defining console template. • Motorola participates in a meeting to finalize any changes among user groups. • Program the approved template into console-programming template tool. • Program sample radios with approved templates and deliver for City of Palo Alto evaluation. Customer Responsibilities: • Approve console programming template. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-7 Completion Criteria: • Console Template completed and approved by City of Palo Alto. 3.7 SYSTEM INSTALLATION 3.7.1 Install Fixed Network Equipment Motorola Responsibilities: • Motorola will be responsible for the installation of all fixed equipment contained in the equipment list and outlined in the System Description based upon the agreed to floor plans, where the physical facility improvement is complete (if applicable) and the site is ready for installation. All equipment will be properly secured to the floor and installed in a neat and professional manner, employing a standard of workmanship consistent with its own R-56 installation standards and in compliance with applicable National Electrical Code (NEC), EIA, Federal Aviation Administration (FAA)/Transport Canada, and FCC standards and regulations. • During field installation of the equipment, any required changes to the installation will be noted and assembled with the final ‘as-built’ documentation of the console system. • Receive and inventory all equipment. • Bond the supplied equipment to the site ground system in accordance with Motorola’s R56 standards. • Install the Conventional Site Controller. • Install the Enhanced Conventional Channel Gateways (ECCGWs). • Connect the Palo Alto Dispatch Center to SVRIA Master Site. • Will not remove existing equipment • Will not relocate existing equipment to a location designated by City of Palo Alto. • Will not dispose of existing equipment. Customer Responsibilities: • Provide secure storage for the Motorola-provided equipment, at a location central to the sites. Motorola coordinates the receipt of the equipment with City of Palo Alto designated contact, and inventory all equipment. • Provide access to the site, as necessary. • Provide Master ground system at all locations. Completion Criteria: • Fixed Network Equipment installation completed and ready for optimization. 3.7.2 Fixed Network Equipment Installation Complete • All fixed network equipment installed and accepted by City of Palo Alto. 3.7.3 Console Installation Motorola Responsibilities: • Install the console in the space provided by City of Palo Alto. • Connect City of Palo Alto-supplied, previously-identified circuits into the console, to a demarcation point located within 25 feet of the console interface. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-8 • Terminate the audio outputs for the logged talkgroups onto a punch block, and then terminate these outputs into the logging recorder. • Connect the appropriate equipment to City of Palo Alto-supplied ground system in accordance with Motorola’s R56 Site Installation standards. • Perform the console programming, based on the console template. Customer Responsibilities: • Provide demarcation point located within 25 feet of the console interface. Completion Criteria: • Console installation is complete. 3.7.4 Console Installation Complete • Console installation completed and accepted by City of Palo Alto. 3.7.5 System Installation Acceptance (Milestone) • All equipment installations are completed and accepted by City of Palo Alto. 3.8 SYSTEM OPTIMIZATION 3.8.1 Optimize System FNE Motorola Responsibilities: • Motorola System Technologist will optimize the console system. • Verify that all equipment is operating properly and that all electrical and signal levels are set accurately. • Verify communication interfaces between devices for proper operation. • Set up the consoles on the radio system to perform the dispatching operation. Customer Responsibilities: • Provide access/escort to the site. • Provide required radio ID and alias information to enable alias database setup for interface to console. • Dispatchers to use the existing conventional system icons for dispatching until cutover. Completion Criteria: • System FNE optimization is complete. 3.8.2 Link Verification Motorola Responsibilities: • Perform test to verify Dispatch Center link performance, prior to the interconnection of the Motorola-supplied equipment to the link equipment. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-9 Customer Responsibilities: • Make available the required links which meet the specifications supplied by Motorola at the CDR. • City of Palo Alto is responsible for coordination with SVRIA EComm for provisioning of backhaul including T1/TDM or Ethernet QoS as applicable and identified during CDR. 3.8.3 Completion Criteria: • Link verification successfully completed. 3.8.4 Optimization Complete • System optimization is completed. Motorola and City of Palo Alto agree that the equipment is ready for acceptance testing. 3.9 TRAINING 3.9.1 Perform Training Motorola Responsibilities: • Finalize training schedules purchased as part of this project with City of Palo Alto Project Manager. • Conduct the training classes outlined in the Training Plan. Customer Responsibilities: • Attend training classes. • Comply with the prerequisites in the Training Plan. Completion Criteria: • All training classes completed. 3.10 AUDIT AND ACCEPTANCE TESTING 3.10.1 Perform R56 Installation Audit Motorola Responsibilities: • Perform R56 site-installation quality audits, verifying proper physical installation and operational configurations. • Create site evaluation report to verify site meets or exceeds requirements, as defined in Motorola’s Standards and Guidelines for Communication Sites (R56). Customer Responsibilities: • Provide access/escort to the site. • Witness tests. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-10 Completion Criteria: • All R56 audits completed successfully. 3.10.2 Perform Functional Testing Motorola Responsibilities: • Verify the operational functionality and features of the console system supplied by Motorola, as contracted. • If any major task as contractually described fails, repeat that particular task after Motorola determines that corrective action has been taken. • Document all issues that arise during the acceptance tests. • Document the results of the acceptance tests and present to City of Palo Alto for review. • Resolve any minor task failures before Final System Acceptance. Customer Responsibilities: • Witness the functional testing. Completion Criteria: • Successful completion of the functional testing. • City of Palo Alto approval of the functional testing. 3.10.3 System Acceptance Test Procedures (Milestone) • City of Palo Alto approves the completion of all the required tests. 3.11 FINALIZE 3.11.1 Cutover Motorola Responsibilities: • Motorola and City of Palo Alto develop a mutually agreed upon cutover plan based upon discussions held during the CDR. • During cutover, follow the written plan and implement the defined contingencies, as required. • Conduct cutover meeting(s) with user group representatives to address both how to mitigate technical and communication problem impact to the users during cutover and during the general operation of the system. Customer Responsibilities: • Attend cutover meetings and approve the cutover plan. • Notify the user group(s) affected by the cutover (date and time). • Conduct a roll call of all users working during the cutover, in an organized and methodical manner. Completion Criteria: • Successful migration from the old console system to the new MCC7500 console system. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-11 3.11.2 Resolve Punchlist Motorola Responsibilities: • Work with the City of Palo Alto to resolve punchlist items, documented during the Acceptance Testing phase, in order to meet all the criteria for final system acceptance. Customer Responsibilities: • Assist Motorola with resolution of identified punchlist items by providing support, such as access to the sites, equipment and system, and approval of the resolved punchlist item(s). Completion Criteria: • All punchlist items resolved and approved by City of Palo Alto. 3.11.3 Transition to Service/Project Transition Certificate Motorola Responsibilities: • Review the items necessary for transitioning the project to warranty support and service. • Provide a Customer Support Plan detailing the warranty support, associated with the Contract equipment. Customer Responsibilities: • Participate in the Transition Service/Project Transition Certificate (PTC) process. Completion Criteria: • All service information has been delivered and approved by the City of Palo Alto. 3.11.4 Finalize Documentation Motorola Responsibilities: • Provide an electronic as-built system manual on a Compact Disc (CD). The documentation will include the following: − System-Level Diagram. − Site Block Diagram. − Site Floor Plan. − Site Equipment Rack Configurations. − Functional Acceptance Test Plan Test Sheets and Results. − Equipment Inventory List. − Console Programming Template. Drawings are created utilizing AutoCAD design software and will be delivered in Adobe PDF format. All other system manual documents converted from native format to Adobe PDF format to be included on the System Manual CD. Customer Responsibilities: • Receive and approve all documentation provided by Motorola. Completion Criteria: • All required documentation is provided and approved by the City of Palo Alto. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Statement of Work 3-12 3.11.5 Final Acceptance (Milestone) • All deliverables completed, as contractually required. • Final System Acceptance received from the City of Palo Alto. 3.12 PROJECT ADMINISTRATION 3.12.1 Project Status Meetings Motorola Responsibilities: • Motorola Project Manager, or designee, will attend all project status meetings with City of Palo Alto, as frequently as determined during the CDR. • Record the meeting minutes and supply the report. • The agenda will include the following: − Overall project status compared to the Project Schedule. − Product or service related issues that may affect the Project Schedule. − Status of the action items and the responsibilities associated with them, in accordance with the Project Schedule. − Any miscellaneous concerns of either City of Palo Alto or Motorola. Customer Responsibilities: • Attend meetings. • Respond to issues in a timely manner. Completion Criteria: • Completion of the meetings and submission of meeting minutes. 3.12.2 Progress Milestone Submittal Motorola Responsibilities: • Submit progress (non-payment) milestone completion certificate/documentation. Customer Responsibilities: • Approve milestone, which will signify confirmation of completion of the work associated with the scheduled task. Completion Criteria: • The City of Palo Alto approval of the Milestone Completion document(s). 3.12.3 Change Order Process • Either Party may request changes within the general scope of this Agreement. If a requested change causes an increase or decrease in the cost, change in system configuration or adds time to the project’s timeline required to perform this Agreement, the Parties will agree to an equitable adjustment of the Contract Price, Performance Schedule, or both, and will reflect the adjustment in a change order. Neither Party is obligated to perform requested changes unless both Parties execute a written change order. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted i SECTION 4 ACCEPTANCE TEST PLAN Motorola has provided Acceptance Test Plan documentation on the following pages. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Acceptance Test Plan 5-2 SECTION 5 ACCEPTANCE TEST PLAN Palo Alto System Type In-Plant Draft www.motorolasolutions.com/services/government Representative 1 Name Field Program Manager (XXX) XXX-XXXX Representative 2 Name Field Engineer (XXX) XXX-XXXX City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Acceptance Test Plan 5-3 5.1 MCC 7100/7500 TRUNKED RESOURCES 5.1.1 Console Priority 1. DESCRIPTION Console Operator Positions have ultimate control of transmitted audio on an assigned voice channel resource. The Console Position has the capability to take control of an assigned voice channel for a talkgroup call so that the operator's audio overrides any subscriber audio. Console priority is a feature that enables dispatchers to gain immediate access to an assigned voice channel so that a central point of audio control exists. SETUP RADIO-1 - TALKGROUP 1 RADIO-2 - TALKGROUP 1 CONSOLE-1 - TALKGROUP 1 VERSION #1.020 2. TEST Step 1. Initiate a Talkgroup call from RADIO-1 on TALKGROUP 1. Keep this call in progress until the test has completed. Step 2. Observe that RADIO-2 receives the call. Step 3. While the call is in progress, key up CONSOLE-1 on TALKGROUP 1. Step 4. Observe that RADIO-2 is now receiving audio from CONSOLE-1 on TALKGROUP 1. Step 5. De-key CONSOLE-1. Step 6. Verify RADIO-2 now receives RADIO-1 audio. Step 7. End the TALKGROUP 1 call from RADIO-1. Pass____ Fail____ City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Acceptance Test Plan 5-4 MCC 7100/7500 Trunked Resources 5.1.2 Call Alert 1. DESCRIPTION Call Alert Page allows a subscriber/dispatcher to selectively alert another radio unit. The initiating subscriber/console will receive notification as to whether or not the call alert was received. Units receiving a Call Alert will sound an alert tone and show a visual alert indication. The display will also show the individual ID of the initiating subscriber/console unit. SETUP RADIO-1 - TALKGROUP 1 CONSOLE-1 - TALKGROUP 1 VERSION #1.030 2. TEST Step 1. Using CONSOLE-1, select the call alert button in the "Private Call" resource window. Step 2. Enter the ID of RADIO-1 and send the call alert to RADIO-1. Step 3. Verify that RADIO-1 receives the alert and that the ID or alias of the console is shown. Step 4. Turn off RADIO-1. Step 5. Using CONSOLE-1, send the call alert to RADIO-1 again. Step 6. Verify that after trying to page RADIO-1, the console displays "Can not send call alert - target not found" in the summary/status list. Pass____ Fail____ City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Acceptance Test Plan 5-5 MCC 7100/7500 Trunked Resources 5.1.3 Talkgroup Patch 1. DESCRIPTION Talkgroup Patch allows a dispatcher to merge several talkgroups together on one voice channel to participate in a single conversation. This can be used for situations involving two or more talkgroups that need to communicate with each other. Using the Patch feature, the console operator can talk and listen to all of the selected talkgroups grouped; in addition, the members of the individual talkgroups can also talk or listen to members of other talkgroups. Patched talkgroups can communicate with the console dispatcher and other members of different talkgroups because of the "supergroup" nature of the Patch feature. NOTE : If "secure" and "clear" resources are patched together, one repeater for each mode may be assigned per site. SETUP RADIO-1 - TALKGROUP 1 RADIO-2 - TALKGROUP 2 RADIO-3 - TALKGROUP 1 RADIO-4 - TALKGROUP 2 CONSOLE-1 - TALKGROUP 1 and TALKGROUP 2 Note: All 4 Radios must have the same home zone. VERSION #1.010 2. TEST Step 1. Using CONSOLE-1 create a patch between TALKGROUP 1 and TALKGROUP 2. Step 2. Initiate a patch call from CONSOLE-1. Step 3. Verify RADIO-1, RADIO-2, RADIO-3, and RADIO-4 can monitor the call. Step 4. Initiate several calls between the radios and verify successful communication. Step 5. Dissolve the patch created in step 1. Pass____ Fail____ City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Acceptance Test Plan 5-6 MCC 7100/7500 Trunked Resources 5.1.4 Alert Tones - Talkgroup 1. DESCRIPTION Pre-defined alert tones can be transmitted on the selected Radio Resource to subscribers which can alert members of a channel / talkgroup to a particular event or signify to radio users special instructions are to follow. The Console has the ability to send an Alert-Tone signal on selected conventional or talkgroup resources. SETUP RADIO-1 - TALKGROUP 1 RADIO-2 - TALKGROUP 1 CONSOLE-1 - TALKGROUP 1 VERSION #1.040 2. TEST Step 1. Select TALKGROUP 1 on CONSOLE-1. Step 2. Select Alert Tone 1 and depress the Alert Tone button. Step 3. Verify that RADIO-1 and RADIO-2 hear Alert Tone 1. Step 4. Repeat Steps 2-3 for Alert Tone 2 and 3. Pass____ Fail____ City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Acceptance Test Plan 5-7 MCC 7100/7500 Trunked Resources 5.1.5 Talkgroup Selection and Call 1. DESCRIPTION The Talkgroup Call is the primary level of organization for communications on a trunked radio system. Dispatchers with Talkgroup Call capability will be able to communicate with other members of the same talkgroup. This provides the effect of an assigned channel down to the talkgroup level. When a Talkgroup Call is initiated from a subscriber unit, the call is indicated on each dispatch operator position that has a channel control resource associated with the unit's channel/talkgroup. SETUP RADIO-1 - TALKGROUP 1 RADIO-2 - TALKGROUP 2 RADIO-3 - TALKGROUP 1 RADIO-4 - TALKGROUP 2 CONSOLE-1 - TALKGROUP 1 CONSOLE-2 - TALKGROUP 2 VERSION #1.010 2. TEST Step 1. Initiate a wide area call from CONSOLE-1 on TALKGROUP 1. Step 2. Observe that RADIO-1 and RADIO-3 will be able to monitor the call. Dekey the console and have either radio respond to the call. Step 3. Observe that all consoles with TALKGROUP 1 can monitor both sides of the conversation. Step 4. Initiate a wide area call from CONSOLE-2 on TALKGROUP 2. Step 5. Observe that RADIO-2 and RADIO-4 will be able to monitor the call. Dekey the console and have either radio respond to the call. Step 6. Observe that all consoles with TALKGROUP 2 can monitor both sides of the conversation. Pass____ Fail____ City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Acceptance Test Plan 5-1 5.2 SIGNOFF CERTIFICATE By their signatures below, the following witnesses certify they have observed the system Acceptance Test Procedures. Signatures WITNESS: Please Print Name: ________________________________________ Initials: Please Print Title: ________________________________________ WITNESS: Please Print Name: ________________________________________ Initials: Please Print Title: ________________________________________ WITNESS: Please Print Name: ________________________________________ Initials: Please Print Title: ________________________________________ ___________________________________Date: _______ ___________________________________Date: _______ ___________________________________Date: _______ ________ ________ ________ City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Training 6-2 SECTION 6 TRAINING 6.1 OVERVIEW Motorola Solutions understands that the successful implementation and use of your communications system depends on effective training. We have developed a training proposal for the City of Palo Alto to ensure a comprehensive understanding of your proposed system and all user equipment. We are leveraging over 75 years of training experience working with customers just like you to provide recommendations for your consideration. The training proposal detailed in the following pages incorporates customer feedback coupled with a best practices systematic approach to produce effective course delivery and content. Our commitment to the City of Palo Alto is to provide unsurpassed services that ensure the equipment operates efficiently for the life of the system, and in doing so, directly train your personnel to acquire a level of knowledge to utilize the system at its maximum potential. City of Palo Alto personnel will gain in-depth understanding of the power of your new system through education and proficient daily use. Our high-quality training focuses attention on student needs. Training is complemented by our detailed documentation and available continuing education program. We will collaborate with the City of Palo Alto to develop a final customized training plan that fits your needs and assures that System Administrators, Maintenance Technicians and End Users are skilled in using your new system. 6.2 TRAINING APPROACH Our training solution delivers a combination of online training and field based instructor led training at the City of Palo Alto locations using the operational equipment and classrooms. Motorola Solutions will employ knowledgeable and experienced instructors, well-designed courseware and integrated lab activities. Training is based upon several key criteria: • Course design is driven by an analysis of student needs and focuses on how-to rather than theory. • Learning objectives are based upon what students need to accomplish on the job and focus on specific applications or components. • Hands-on lab opportunities using the City of Palo Alto specific job aids are incorporated into training to maximize the transfer of skills and the retention/reuse of information. Our instructors bring invaluable experience and first-hand knowledge of public safety systems into their training approach. This experience and knowledge provides them a better understanding of and City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Training 6-3 insight into the practical aspects of the role of the City of Palo Alto Managers, Technicians and End Users. Each has a proven ability to communicate with novice as well as expert personnel. 6.3 COURSES PROPOSED Motorola Solutions has identified the following course(s) that are necessary to achieve the training goals for the City of Palo Alto. Course description files for the recommended courses are provided in the matrix below and/or in the training appendix. Class delivery for instructor-led courses in the field will be tailored for your system and features. Specifically, our proposed training plan addresses the following categories as identified in your request for proposal: • Console End Users & Supervisors. It is recommended that students bring their laptop computers for all System Administrator and Technician classes. Course Target Audience No. of Sessions Duration (days) Location Date No. of Attendees MCC7500 Console Operator 3 training consoles Dispatch Operators 3 (4 hr sessions) 1.5 Palo Alto, CA Prior to cut over 20 (6-7 per session) Course Synopsis: This course provides participants with an introduction to the dispatch console, its basic operation and tailored job aids which will be available for assistance in operation. Through facilitation and hands-on activities, the user learns how to perform common tasks associated with the console operation. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Training 6-4 Course Target Audience No. of Sessions Duration (days) Location Date No. of Attendees MCC7500 Console Operator & Admin Utilizing the Interactive End User Tool Kit 3 training consoles Dispatch Supervisors 1 (8 hour session) 1 Palo Alto, CA Prior to cut over 3 Operator Course Synopsis: This course provides participants with an introduction to the dispatch console, its basic operation and tailored job aids which will be available for assistance in operation. Through facilitation and hands-on activities, the user learns how to perform common tasks associated with the console operation. Admin Course Synopsis: This course provides participants with the knowledge and skills to manage and utilize the MCC 7500 console administrator functions. Through facilitation and hands-on activities, the participant learns how to customize the console screens. Note: The first half of the day is the operator course. The second half of the day is the admin course and also teaches the supervisors how to manipulate the Interactive End User Tool Kit. 6.4 DETAILED COURSE DESCRIPTIONS 6.4.1.1 MCC 7500 Operator Course Description 44 hhoouurrss DDeelliivveerryy MMeetthhoodd Instructor-led TTaarrggeett AAuuddiieennccee Dispatch Console Operators, Supervisors, System Administrators, and Support Personnel CCoouurrssee SSyynnooppssiiss This course provides participants with an introduction to the dispatch console, its basic operation and tailored job aids which will be available for assistance in operation. Through facilitation and hands-on activities, the user learns how to perform common tasks associated with the console operation. CCoouurrssee OObbjjeeccttiivveess • Perform basic operational tasks of the dispatch console • Utilize the provided job aids to perform specific tasks associated with the console • Understand a high level view of the system configuration • High-level overview of the customer system configuration • General console operation • Proper operating procedures for specific customer features RReeccoommmmeennddeedd PPrreerreeqquuiissiitteess None. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Training 6-5 KKeeyy TTooppiiccss • Overview • Communicating with Radios • Advanced Signaling Features • Resource Groups • Working with Configurations • Working with Aux IOs • Troubleshooting City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Training 6-6 6.4.1.2 MCC 7500 Supervisor Course Description DDuurraattiioonn 4 hours Operator, plus 4 hours Admin Delivery Method Instructor-led TTaarrggeett AAuuddiieennccee Dispatch Supervisors, System Administrators AAddmmiinn CCoouurrssee SSyynnooppssiiss This course provides participants with the knowledge and skills to manage and utilize the MCC 7500 console administrator functions. Through facilitation and hands-on activities, the participant learns how to customize the console screens. CCoouurrssee OObbjjeeccttiivveess • Understand the menu items and tool bar icons • Edit folders, multiselect/patch groups, auxiliary input output groups, windows and toolbars • Add/delete folders RReeccoommmmeennddeedd PPrreerreeqquuiissiitteess None KKeeyy TTooppiiccss • Introduction • Configurations • Folders and Resource Setup • Customizing Folders • Auto Starting the MCC 7500 Dispatch Console • Editing Preferences • Configuring the Toolbar • Setting Up Aux IOs • Resource Groups City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Warranty and Maintenance 7-1 SECTION 7 WARRANTY AND MAINTENANCE Motorola has over 75 years of experience supporting mission critical communications for public safety and public service agencies. Motorola’s technical and service professionals use a structured approach to life cycle service delivery and provide comprehensive maintenance and support throughout the life of the system. The value of support is measured by system availability, which is optimized through the use of proactive processes, such as preventive maintenance, fault monitoring and active response management. System availability is a function of having in place a support plan delivered by highly skilled support professionals, backed by proven processes, tools, and continuous training. 7.1 THE MOTOROLA SERVICE DELIVERY TEAM Customer Support Manager Your Motorola Customer Support Manager provides coordination of support resources to enhance the quality of service delivery and to ensure your satisfaction. The Customer Support Manager (CSM) is responsible to oversee the execution of the Warranty and Service Agreement and ensure that Motorola meets its response and restoration cycle time commitments. The CSM will supervise and manage the Motorola Authorized Servicer’s functions. Motorola System Technologists The Motorola System Technologists (ST) are available to assist Motorola’s Authorized Servicers when needed for network health and operations. Motorola System Support Center Located in Schaumburg, Illinois, the System Support Center (SSC) is a key component to the overall management and system maintenance. As detailed in this Customer Support Plan, the following services are provided by the System Support Center: • Network Monitoring. • Dispatch Service. • Infrastructure Repair with Advanced Replacement. • Technical Support. Motorola Local Service Provider Motorola’s authorized service centers are staffed with trained and qualified technicians. Motorola has proven experience to deliver mission critical network support  Extensive Experience – Motorola has over 70 years of experience supporting mission critical communications and the Public Safety community.  Capacity to Respond – Motorola’s network of local service centers, repair depots, system support center and parts support enable Motorola to provide quick and effective service delivery.  Flexibility and Scalability – Motorola’s Support Plans are customized to meet individual Customer needs.  Skills and Process – Motorola uses a well- established, structured, and disciplined approach to provide service delivery. Motorola’s team of well-trained and committed people understands the communications technology business. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Warranty and Maintenance 7-2 They provide rapid response, repair, restoration, installations, removals, programming, and scheduled preventive maintenance tasks for site standards compliance and RF operability. Motorola’s authorized service centers are assessed annually for technical and administrative competency. Motorola places great emphasis on ensuring that consoles systems, such as the one proposed for the City of Palo Alto, meet high standards for design, manufacture, and performance. To enhance the value of the console system being acquired, Motorola offers customized warranty and optional post-warranty services as outlined in this section. 7.2 WARRANTY SERVICES Motorola will provide warranty services per the existing SVRIA Contract terms and conditions. In addition to the Standard Commercial Warranty, the service products that comprise the Custom Warranty package are listed below along with a brief description. In addition to the Standard Commercial Warranty, the service products that comprise the Custom Warranty package are listed below along with a brief description. 7.2.1 Dispatch Service Motorola’s Dispatch Service ensures that trained and qualified technicians are dispatched to diagnose and restore your communications network. Following proven response and restoration processes, the local authorized service center in your area is contacted and a qualified technician is sent to your site. An automated escalation and case management process is followed to ensure that technician site arrival and system restoration comply with contracted response and restore times. Once the issue has been resolved, the System Support Center verifies resolution and with your approval, closes the case. Activity records are also available to provide a comprehensive history of site performance, issues, and resolution. 7.2.2 OnSite Infrastructure Response Motorola OnSite Infrastructure Response provides local, trained and qualified technicians who arrive at your location to diagnose and restore your communications network. Following proven response and restore processes, Motorola Dispatch contacts the local authorized service center in your area and dispatches a qualified technician to your site. An automated escalation and case management process ensures that technician site arrival and system restoration comply with contracted response times. The field technician restores the system by performing first level troubleshooting on site. If the technician is unable to resolve thes issue, the case is escalated to the System Support Center or product engineering teams as needed. 7.2.3 Network Preventative Maintenance Network Preventative Maintenance provides an operational test and alignment on your infrastructure or fixed network equipment to ensure that it meets original manufacturer’s specifications. Trained technicians: • Physically inspect equipment. • Remove dust and foreign substances. • Clean filters. • Measure, record, align and adjust equipment to meet original manufacturer’s specifications. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Warranty and Maintenance 7-3 This service is performed based on a schedule agreed upon between you and Motorola. Network Preventative Maintenance proactively detects issues that may result in system malfunctions and operational interruptions. 7.2.4 Infrastructure Repair with Advanced Replacement Infrastructure Repair with our Advanced Replacement upgrade supplements your spares inventory with Motorola’s centralized inventory of critical equipment. In advance of Motorola repairing the malfunctioning unit, a replacement unit is sent to you within 24 hours to ensure a spare unit is available. Upon receipt of the malfunctioning unit, Motorola repairs the unit and replace it in our centralized inventory. 7.2.5 Technical Support Service Motorola Technical Support service provides an additional layer of support through centralized, telephone consultation for issues that require a high level of communications network expertise and troubleshooting capabilities. Technical Support is delivered by the System Support Center (SSC). The SSC is staffed with trained, skilled technologists specializing in the diagnosis and swift resolution of network performance issues. These technologists have access to a solutions database as well as in house test labs and development engineers. Technical Support cases are continuously monitored against stringent inbound call management and case management standards to ensure rapid and consistent issue resolution. Technical Support service translates into measurable, customer-specific metrics for assured network performance and system availability. 7.2.6 Network Monitoring Service Network Monitoring Service can help keep your network at optimum availability so it is ready to serve mission critical communications needs. By watching over the network continuously, Network Monitoring Service takes action whenever needed, and resolves network problems. We often intervene and correct the problem before you even know a problem exists. Network Monitoring Service provides improved productivity and enhanced network performance, which in turn helps to increase your technology Return-On-Investment. Using a combination of network monitoring software, automated alerts, and remote diagnostics inquiries, our System Support technologists actively monitor your network to maximize network uptime and overall preparedness…for the expected and unexpected. Upon receiving an alert, our team immediately performs a series of diagnostics to assess the problem. Often the situation can be resolved remotely, but when additional attention is required, local field technicians are dispatched immediately to your site to achieve restoration. Motorola’s Network Monitoring service is a vital component of an intelligent communication support plan that keeps your business operating smoothly, your costs down, and assures maximum preparedness at all times. Specifically, Network Monitoring Service provides: • Improved network availability. • Remote and timely resolution to minimize downtime. • Cost efficiencies. • Optimize time at site due to assessment and knowledge transfer before dispatch. • Minimize unnecessary trips to site. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Warranty and Maintenance 7-4 • Mitigate need for 24x7 operations monitoring center. • Detailed Reports. 7.2.7 Security Monitoring Service Security elements such as anti-virus, firewalls, and Intrusion Detection Systems (IDS) are a good first step, but they are not enough to secure your network. Radio network operators must take additional steps to reduce vulnerabilities to potential attack and protect critical radio network infrastructure. Motorola’s ASTRO 25 Security Monitoring is a complete solution that reduces the risk of network availability being impacted by a security threat. Specialized security analysts provide uninterrupted monitoring of the radio network security elements utilizing advanced correlation and visualization tools to detect, characterize, and respond to events that are specifically applicable to government and public safety radio networks. Our security analysts have direct and immediate access to Motorola engineers for rapid resolution. This level of service ensures the operational impact that security events may cause to your network are minimized or eliminated. 7.2.8 Security Update Service (SUS) Commercial security software updates are often designed without RF systems in mind and could cause inadvertent harm to your radio network, disrupting mission-critical communications and putting your first responders and citizens at risk. The Motorola Security Update Service assures that commercial anti-virus definitions, operating system software patches, and Intrusion Detection Sensor signature files are compatible with your ASTRO 25 network and do not interfere with network functionality (Table 7-1 below). Our expert network security technologists analyze, perform testing, and validate the latest security software updates in a dedicated test lab and provide continuous monitoring of updates to provide you regular electronic updates upon completion of successful testing. Table 7-1: Security Update Service (SUS) SUS SUS Platinum Anti-virus Definition Update   Minor Release (patch release)   Information Assurance Remediation  Major Release (system release) Hardware Refresh Implementation Services Regional Partner Invoicing available available • Anti-virus definitions and intrusion detection sensor updates for Motorola supplied equipment from applicable original equipment manufacturer. • Minor releases may include commercial OS and application security updates, patches and service pack updates for Microsoft Windows and Server OS, Red Hat Linux, Sun Solaris and any Motorola software service packs that may be available. • Recommendations for IA remediation may include, but is not limited to the following: provide security software updates; provide operating system security updates or patches; implement configuration changes; upgrade to a later ASTRO 25 System Release (upgrade expense not included), or recommending a compensating control. • Regional partner invoicing provides ability to separate invoicing across multiple agencies. City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Warranty and Maintenance 7-5 7.3 SUMMARY Whether it’s a routine service call, or a disaster situation, Motorola understands its responsibility and takes pride in its commitment to deliver proven response service to the public safety community. Motorola has the capability to provide the technical, administrative, and consultative repair services needed to support, enhance, and maintain the effectiveness of your communications network. Motorola’s goal is to provide City of Palo Alto with the qualified resources, to maintain and improve system operation and availability, and to deliver world class service support (Table 7-2 below). Table 7-2: Warranty Summary Warranty Service Overview Warranty Year Dispatch Service  On Site Infrastructure Response  Network Preventative Maintenance  Infrastructure Repair with Advanced Replacement  Technical Support Service  Network Monitoring Service  Security Monitoring Service  Security Update Service (SUS)  City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Pricing Summary 8-1 SECTION 8 PRICING SUMMARY 8.1 CITY OF PALO ALTO DISPATCH CONSOLES The proposed pricing is based the SVRIA contract with Motorola Solutions, Inc. The incentives offered are based on the purchase of a certain minimum amount of equipment and services under the SVRIA contract (Table 7-1 through 7-5 below). Table 7-1: Pricing Summary for the City of Palo Alto Dispatch Console System Equipment List Price Discount Price System Licenses $12,000 $9,600 Operator Software $105,575 $87,353 Operator Hardware $100,231 $84,539 Operator Encryption $20,000 $16,400 Network Equipment $15,320 $12,256 Conventional Radio Interface $43,464 $34,803 Backup Control Stations $23,084 $17,846 Radio and 911 Audio Logging $146,933 $132,240 Equipment Subtotal $466,607 $395,037 Implementation Services and Above Warranty Services Implementation Services Project Management $72,632 Engineering and System Technologist $104,717 Install $73,867 Training $13,296 Freight $3,161 Above Warranty Services $36,825 Implementation Services and Above Warranty Services Subtotal $304,498 Console System Before Incentives $699,535 Section III.C - Agency Migration Incentive - with coverage expansion ($157,395) Console System with Incentives $542,140 Estimated Sales Tax @ 8.75%(Taxes are Customer's Responsibility) $26,788.45 CONSOLE SYSTEM TOTAL $568,928.45 City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Pricing Summary 8-2 Table 7-2: Pricing Summary for Utilities Water and Gas Dispatch Dispatch Console System Equipment List Price Discount Price Operator Software $34,580 $28,382 Operator Hardware $15,100 $13,221 Operator Encryption $10,100 $8,282 Network Equipment $15,320 $12,256 Conventional Radio Interface $22,946 $18,377 Backup Control Stations $23,141 $17,918 Radio Logging $7,957 $7,162 Equipment Subtotal $129,144 $105,598 Implementation Services and Above Warranty Services Implementation Services Project Management $21,005 Engineering and System Technologist $31,655 Install $23,144 Freight $844 Above Warranty Services $9,844 Implementation Services and Above Warranty Services Subtotal $86,492 Console System Before Incentives $192,090 Section III.C - Agency Migration Incentive - with coverage expansion ($43,220) Console System with Incentives $148,870 Estimated Sales Tax @ 8.75% (Taxes are Customer's Responsibility) $7,160.86 CONSOLE SYSTEM TOTAL $156,030.86 Table 7-3: Pricing Summary for Utilities Optional Two MCC 7100 MCC7100 Console List Price Discount Price Operator Software $34,680 $28,462 Operator Hardware $14,484 $12,668 Operator Encryption $10,100 $8,282 Equipment Subtotal $59,264 $49,412 Implementation Services and Warranty Implementation Services City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Pricing Summary 8-3 Project Management $9,829 Engineering and System Technologist $11,888 Install $12,243 Freight $395 Above Warranty Services $4,606 Implementation Services and Above Warranty Services Subtotal $38,961 Console System Before Incentives $88,373 Section III.C - Agency Migration Incentive - with coverage expansion ($19,884) Console System with Incentives $68,489 Estimated Sales Tax @ 8.75% (Taxes are Customer's Responsibility) $3,350.75 CONSOLE SYSTEM TOTAL $71,839.75 Table 7-4: Pricing Summary for Utilities Consolettes and Remotes Dispatch Console System Equipment List Price Discount Price Consolettes and antenna system $35,379 $27,381 Desksets $11,530 $11,014 Equipment Subtotal $46,909 $38,395 Implementation Services and Warranty Implementation Services Project Management $4,605 Engineering and System Technologist $8,772 Install $38,798 Freight $307 Above Warranty Services $3,579 Implementation Services and Above Warranty Services Subtotal $56,061 Console System Before Incentives $94,456 Section III.C - Agency Migration Incentive - with coverage expansion ($21,253) Console System with Incentives $73,204 Estimated Sales Tax (Taxes are Customer's Responsibility) $2,604.66 CONSOLE SYSTEM TOTAL $75,807.66 City of Palo Alto May 11, 2017 Dispatch Console Use or disclosure of this proposal is subject to the restrictions on the cover page. Motorola Solutions Confidential Restricted Pricing Summary 8-4 Table 7-5: Pricing Summary for Public Works Consolettes and Remotes Dispatch Console System Equipment List Price Discount Price Consolettes and antenna systems $59,658 $47,066 Desksets $13,990 $13,540 Equipment Subtotal $73,648 $60,606 Implementation Services and Warranty Implementation Services Project Management $7,005 Engineering and System Technologist $12,053 Install $58,765 Freight $487 Above Warranty Services $5,650 Implementation Services and Above Warranty Services Subtotal $83,960 Console System Before Incentives $144,566 Section III.C - Agency Migration Incentive - with coverage expansion ($32,527) Console System with Incentives $112,038 Estimated Sales Tax (Taxes are Customer's Responsibility) $4,109.84 CONSOLE SYSTEM TOTAL $116,147.84 8.2 PAYMENT SCHEDULE INFRASTRUCTURE & CONSOLES • Customer will make payments to Motorola within thirty (30) days after the date of each invoice. • Customer will make payments when due in the form of a check, cashier’s check, or wire transfer drawn on a U.S. financial institution and in accordance with the following milestones. Total Contract Price Fixed Network Equipment (FNE) (not including Subscribers and Subscriber Related Services Contract Price) 1. 20% of the FNE Contract Price upon completion of detailed design review. 2. 35% of the FNE Contract Price upon completion of staging for FNE equipment at Motorola staging facility and shipment. 3. 20% of the FNE Contract Price upon completion of FNE installation. 4. 10% of the FNE Contract Price upon system acceptance. 5. 15% of the FNE Contract Price upon final acceptance. RD:SSG JOINT POWERS AGREEMENT FOR THE SILICON VALLEY REGIONAL INTEROPERABILITY AUTHORITY Restatement __________, 2016 RD:SSG 2 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 THIS JOINT POWERS AGREEMENT FOR THE SILICON VALLEY REGIONAL INTEROPERABILITY AUTHORITY (the “Agreement”) originally entered into as of November 2009, (“Effective Date”) by and among the public agencies executing this Agreement (collectively, “Members” and individually, “Member”) and restated as of this __ day of ___________2016 (“Restatement Date”) RECITALS A. WHEREAS, in 2001, the Cities of Campbell, Cupertino, Gilroy, Los Altos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Palo Alto, Santa Clara, San Jose, Saratoga, and Sunnyvale; the Towns of Los Gatos and Los Altos Hills; the South Santa Clara County Fire District; the County of Santa Clara; San Jose State University; and the Santa Clara Valley Water District (collectively, the “Network Participants”) entered into an agreement to exercise their joint contracting and purchasing powers pursuant to Government Code Section 6502 (the “Joint Funding Agreement”), so as to jointly hire consultants for the conceptual design and implementation strategy for an interoperable communications network, to jointly purchase a radio and data communications system or network to provide interoperability for the Network Participants, to integrate this system or network with other nearby regional public safety communications systems, to participate in regional interoperability projects, to jointly fund activities and projects related to interoperability; and to jointly apply for grants and funding to facilitate the accomplishment of these goals; B. WHEREAS, the campaign to accomplish the above goals came to be known as the Silicon Valley Regional Interoperability Project (“SVRIP”); C. WHEREAS, the SVRIP has been very successful but many new projects and opportunities have arisen and the joint exercise of powers under the Joint Funding Agreement is no longer sufficient to address the expanded opportunities and objectives of the SVRIP; D. WHEREAS, the undersigned desire to create an independent joint powers authority to implement and operate the SVRIP and other projects, and to formally articulate the goals and purposes of the Authority; E. WHEREAS, a SVRIP Executive Director, employed by the City of San Jose consistent with the Joint Funding Agreement, has been appointed by the SVRIP steering committee to assist in the formation and operation of the Authority; F. WHEREAS, pursuant to the Joint Exercise of Powers Act, Title 1, Division 7, Chapter 5, of the California Government Code, Government Code Section 6500 et seq., two or more public agencies may by agreement jointly exercise any power common to the contracting agencies; and G. WHEREAS, the Members have determined that the public interest will be served by the joint exercise of their common powers through this Agreement and the creation of a joint powers authority for the purposes described herein; and. H. Whereas, the Santa Clara Valley Transportation Authority has requested to become a Member of the Joint Powers Authority and the Board of Directors RD:SSG 3 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 desires to include their membership in an amendment of the Joint Powers Agreement. NOW THEREFORE, in consideration of the promises, terms, conditions, and covenants contained herein, the Members agree as follows: ARTICLE 1 – DEFINITIONS 1. Certain terms used in this Agreement shall be defined as follows: 1.1. "Agency" or “Public Agency” shall have the meaning provided in Government Code Section 6500. 1.2. "Agreement" shall mean this Agreement that establishes the Silicon Valley Regional Interoperability Authority. 1.3. “Annual Operating Costs” shall mean the day to day expenses of the Authority (other than systems maintenance expenses) which shall include without limitation, personnel (except systems maintenance personnel), overhead, legal and accounting services, and similar costs for the fiscal year; as such term may be further defined in the policies of the Authority 1.4. “Annual Systems Maintenance Costs” shall mean consulting and maintenance services for existing hardware and software; systems maintenance personnel costs; system site/facility maintenance; parts, software/firmware, labor and equipment for regular maintenance; and noncapital replacements for the fiscal year; as such term may be further defined in the policies of the Authority. 1.5. "Authority" shall mean the Silicon Valley Regional Interoperability Authority. 1.6. "Board" shall mean the Board of Directors which is the governing body of the Silicon Valley Regional Interoperability Authority. 1.7. "Central County Agencies" shall include the City of Santa Clara, the City of Sunnyvale, and the City of Milpitas. 1.8. “Overhead” shall mean the Authority’s ongoing necessary administrative costs (such as system site/facility rent, office rent, utilities, office supplies, and insurance) which are not separately budgeted as part of a specific project, program, or service. 1.9. "Members" shall mean the public agencies which are signatories to this Agreement prior to the Effective Date. Unless otherwise indicated, actions or approvals of a Member are deemed to be those of the legislative body of the Member, plus the addition of the Santa Clara Valley Transportation Authority (“VTA”) as of the Restatement Date. 1.10. "Multiple Agency Directorship" shall mean any seat on the Board of Directors which represents more than one Member. RD:SSG 4 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 1.11. "Northwest County Agencies" shall include the City of Mountain View, the City of Palo Alto, the City of Los Altos and the Town of Los Altos Hills. 1.12. Restatement Date shall mean the date that this Agreement is formally unanimously agreed to by all of the Member Agencies. 1.13. “Smaller Member” shall mean any Member whose population is less than 15,000. 1.14. "South County Agencies" shall include the City of Gilroy and the City of Morgan Hill. 1.15. "Southwest County Agencies" shall include the City of Cupertino, the City of Campbell, the City of Saratoga, the Town of Los Gatos and the City of Monte Sereno. 1.16. "Working Committee" shall mean the committee described in Article 6 of this Agreement. ARTICLE 2 – CREATION AND PURPOSES 2. The Silicon Valley Regional Interoperability Authority is created as described in this Article. 2.1. Creation of Authority and Jurisdiction. Pursuant to the Joint Exercise of Powers Act, the Members hereby create the Silicon Valley Regional Interoperability Authority, a public entity separate and distinct from each of the Members, to exercise the powers common to the Members and as otherwise granted by the Joint Exercise of Powers Act. The jurisdiction of the Authority shall be all territory within the geographic boundaries of the Members; however the Authority may undertake any action outside such geographic boundaries as is necessary or incidental to the accomplishment of its purposes. 2.2. Purpose of Authority. The purpose of the Authority is to enhance and improve communications, data sharing and other technological systems, tools and processes for protection of the public and public safety and to facilitate related local and regional cooperative efforts. 2.3. Purpose of Agreement. The purpose of this Agreement is to create the Authority; to facilitate the implementation of the Authority’s projects, systems and services; to provide for the Authority’s acquisition of real, personal and intangible property, to provide for the Authority’s administration, planning, design, financing, regulation, permitting, environmental evaluation, public outreach, construction, operation, and maintenance of the Authority’s projects, systems and services; and to provide for any necessary or convenient related support services. RD:SSG 5 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 ARTICLE 3 – POWERS 3. The Authority shall have all powers necessary or reasonably convenient to carry out the purposes herein, subject to the limitations in this Article. 3.1. The Authority shall have all powers necessary or reasonably convenient to carry out the purposes herein, including, but not limited to, the following powers: 3.1.1. To obtain and secure funding from any and all available public and private sources including local, state, and federal government, including but not limited to, bond issuances, lease purchase agreements, grants, public and private contributions, public and private loans, and other funds; 3.1.2. To manage and operate any projects, systems, and services transferred or assigned to the Authority and fulfill any existing obligations incurred under the Joint Funding Agreement that are transferred or assigned to the Authority; 3.1.3. To plan, design, finance, acquire, construct, operate, regulate, and maintain systems, equipment, facilities, buildings, structures, software, databases, and improvements; 3.1.4. To lease real, personal and intangible property; 3.1.5. To acquire, hold, or dispose of real, personal or intangible property by negotiation, dedication or eminent domain; 3.1.6. To own, lease, sublease, acquire, operate, maintain and dispose of materials, supplies, and equipment of all types including, but not limited to intangible property such as radio frequencies; 3.1.7. To conduct studies, tests, evaluations, investigations, and similar activities; 3.1.8. To develop and/or adopt standards and specifications; 3.1.9. To obtain permits, rights, licenses and approvals, including FCC licenses; 3.1.10. To enter into agreements; 3.1.11. To contract for services from Members, including but not limited to in-kind services; 3.1.12. To employ consultants, contractors, and staff and to adopt personnel rules and regulations; 3.1.13. To adopt bylaws, rules and regulations; 3.1.14. To delegate certain powers; 3.1.15. To acquire and maintain insurance of all types; 3.1.16. To accept, hold, invest, manage, and expend monies pursuant to the Joint Exercise of Powers Act; RD:SSG 6 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 3.1.17. To work with elected officials and local, regional, state and federal agencies, including joint powers agencies and consortia, to pursue funding, enter agreements, and otherwise act to carry out the purposes of the Authority; 3.1.18. To incur debts, liabilities or obligations, provided that no debt, liability, or obligation shall constitute a debt, liability or obligation of the Members, either jointly or severally; 3.1.19. To charge for services, programs, and/or system use by means of subscriber fees or similar charges; 3.1.20. Subject to applicable legal authority, to cause assessments, fees or charges to be levied in accordance with applicable State and Federal law; 3.1.21. To issue bonds and sell or lease any type of real or personal property for purposes of debt financing; 3.1.22. To sue and be sued; 3.1.23. To conduct public outreach and education; 3.1.24. To participate in pilot and demonstration projects; 3.1.25. To reimburse Authority officers, employees and officials for expenses incurred as permitted by law; and 3.1.26. To exercise all powers incidental to the foregoing. 3.1.27. In addition to those powers common to each of the members and the powers conferred by the Joint Exercise of Powers Act, the Authority shall have those powers that may be conferred upon it by subsequently enacted legislation. 3.2. Limitation on Eminent Domain Power. The Authority’s power of eminent domain shall be exercised to acquire real property only in the manner prescribed by the California Code of Civil Procedure, including the requirements of Sections 1245.230 and 1245.240 of the Code of Civil Procedure (as such statutes and requirements may be amended) which provide that prior to the exercise of such power the Board adopt, by a 2/3 vote of the entire Board, a resolution finding that (1) the public interest and necessity require the proposed project; (2) the proposed project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; and (3) the property described in the resolution is necessary for the proposed project. Further, the Authority shall not exercise such power in the jurisdiction of a municipal or county Member in absence of a resolution approved by a majority of the Member’s governing body evidencing the Member’s consent to the Authority’s exercise of eminent domain. 3.3. No Authority Taxing Power. The Authority shall not exercise any power it possesses to impose taxes on the public, although it may receive the proceeds of taxes imposed by other entities. RD:SSG 7 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 3.4. Restriction on Exercise of Powers. Pursuant to Section 6509 of the Joint Exercise of Powers Act, the Authority has designated a general law city as the Member for determination of the restrictions upon the Authority in exercising the common powers under this Agreement and the City of Cupertino shall serve as such Member. In the event that the City of Cupertino ceases to be a Member, the Board may designate by resolution another general law city Member as the Member for determination of the restrictions upon the Authority in exercising the common powers. 3.5. Unless expressly provided to the contrary herein, the Authority does not intend, by virtue of Section 3.4 or this Agreement, to subject itself to the internal policies or ordinances of any Member (e.g., Member purchasing or sunshine ordinances). ARTICLE 4 – MEMBERSHIP 4. The Members of the Authority are the public agencies who enter into this Agreement prior to the Effective Date plus the addition of VTA as of the Restatement Date. In the event a city or town listed as represented by a Multiple Agency Directorship does not enter into this Agreement prior to the Effective Date, the city or town will not be a Member and the listed entities in the applicable Multiple Agency Directorship will be deemed amended to reflect this fact without further action. Admission of a new Member shall not require amendment to this Agreement, however, after the Effective Date new Members may be admitted only pursuant to the procedures described in Sections 4.1 and 4.2. Members may withdraw pursuant to the procedures described in Sections 4.3. 4.1. A Public Agency may be considered for membership in the Authority after the Effective Date, by presenting an adopted resolution of the Public Agency’s governing body to the Board which includes a request to become a Member of the Authority. 4.2. The Authority shall accept new Members upon a majority affirmative vote of the entire Board, payment of any Board determined fees and charges, including a pro-rata share of organization, planning, project, and other costs and charges and upon satisfaction of any conditions established by the Board as a prerequisite for membership. At the time of admission, the Board shall adopt a resolution assigning the new Member to be represented by one of the existing Multiple Agency Directorships and amend the listed entities in the applicable Multiple Agency Directorship shall be amended to reflect this fact. Each proposed Member shall also enter into a membership agreement, upon the date of execution of which it shall be bound to the terms of this Agreement as a Member. 4.3. Withdrawal. Any Member may withdraw from this Agreement upon at least 6 (six) months written notice to the Authority and the Members. Any Director who is an elected official of the withdrawing Member and any Working Committee member who is an official, officer or employee of the withdrawing Member shall be deemed to have resigned as of the date of receipt of the written notice. RD:SSG 8 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 4.3.1. A withdrawing Member shall have no interest or claim in the assets of the Authority absent an Authority approved written agreement which contains express provisions to the contrary. 4.3.2. Any withdrawing Member shall be obligated to pay an equitable share, consistent with the cost sharing principles herein, of all debts, liabilities and obligations of the Authority incurred prior to the effective date of the withdrawal; as such share is determined by the Board, as a condition precedent to such withdrawal. 4.3.3. Provided, however, that the withdrawing Member’s obligations under Section 4.3.2 shall not extend to debts, liabilities and obligations of the Authority that are secured or otherwise committed pursuant to specific project, service, or program agreements (“limited scope agreements”) that expressly omit the withdrawing Member. The specific pro-rata share of the withdrawing Member of the debts, liabilities and obligations of the Authority that are secured or otherwise committed pursuant to a limited scope agreement shall be determined by the terms of those agreements and the withdrawing Member shall comply with all withdrawal terms of such agreement. 4.3.4. A withdrawing or withdrawn Member’s payment obligation with respect to its share of debts, liabilities and obligations shall survive withdrawal of the Member and survive termination of this Agreement. 4.3.5. If a Member who is represented by a Multiple Agency Directorship withdraws, the listed entities in the applicable Multiple Agency Directorship may be amended to reflect this fact by a resolution of the Board. ARTICLE 5 – BOARD OF DIRECTORS; ORGANIZATION 5. The Authority shall be governed by a Board of Directors (the "Board") consisting of eleven (11) Directors. The term of a Director’s appointment shall be three (3) years although Directors may be appointed for a shorter term consistent with the Board’s bylaws. Directors may be appointed to multiple successive terms. An alternate shall be appointed for each Director. Alternates shall serve as Directors in the absence of their respective Directors and shall exercise all rights and privileges thereof. Notwithstanding the above, each Director and each alternate for such Director shall serve at the pleasure of the Member(s) they represent and may be removed by such Member(s) at any time without any right to notice thereof. 5.1. Directors and alternates shall be appointed by the represented Member(s) as follows and, at the time of such appointment and for the duration of such appointment, each shall be an elected official of a Member: 5.1.1. Two Directors shall represent the County of Santa Clara. 5.1.2. Two Directors shall represent the City of San Jose. RD:SSG 9 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 5.1.3. One Director shall represent the Central County Agencies. 5.1.4. One Director shall represent the Northwest County Agencies. 5.1.5. One Director shall represent the South County Agencies. 5.1.6. One Director shall represent the Southwest County Agencies. 5.1.7. One Director shall be appointed by the City Selection Committee (as formed pursuant to Government Code Section 50270 et seq.) for Santa Clara County. The Director shall be an elected official of a Member who does not have an elected official on the Board at the time of appointment. The Director appointed in this manner may be removed by the Member that he or she serves. 5.1.8 Two Directors shall be appointed by the Santa Clara Valley Transportation Authority (“VTA”) Board of Directors. One Director shall be the VTA’s General Manager or his or her designated Executive Level Staff Member. The other VTA Director shall be an elected member of the VTA Board of Directors or an elected VTA Policy Advisory Committee Member. The elected Director shall not be from a City or Town with a current member on the Board of Directors of the Authority. Future Directors appointed to any seat may not be from the cities or town already represented by the VTA Directors. Each directorship described in Sections 5.1.3 through 5.1.6 shall be a Multiple Agency Directorship and an action by a majority of the represented Members shall appoint and remove such Directors. If the Director (or his or her Alternate) shall fail to attend 70% of the meetings of the Board during the fiscal year, the Directorship shall be deemed vacant and the Authority shall send notice of the vacancy to the represented Member(s). If a Director shall cease to be an elected official of a Member, his or her seat shall be deemed vacant. If a Director shall cease to be an employee of VTA, his or her seat shall be deemed vacant. If the City Selection Committee or the represented Members of a Multiple Agency Directorship fail to select a Director within ninety (90) days of a vacancy, the Board may appoint an interim Director from the elected officials of the represented Members (or of those Members who do not have an elected official on the Board in the case of the City Selection Committee’s directorship) to serve until the appointment of the new Director is completed. 5.2. Each member of the Board shall have one vote. A majority of the members of the entire Board shall constitute a quorum for the transaction of business. Except where a supermajority is required by statute, this Agreement or a RD:SSG 10 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 resolution of the Board, actions of the Board shall require the affirmative vote of a majority of the entire Board (i.e., six (6) affirmative votes). 5.3. The Board shall elect annually a Chair from among its membership to preside at meetings and shall appoint a Secretary who may, but need not, be a Director. The Board may, from time to time, elect such other officers as the Board shall deem necessary or convenient to conduct the affairs of the Authority. 5.4. Meetings. The Board shall hold at least two regular meetings each year. The Board shall by resolution establish the date, hour and location at which its regular meetings shall be held. All meetings of the Board shall be held in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq. The Secretary shall cause minutes of all open meetings of the Board to be kept and shall cause a copy of the minutes to be forwarded to each Director and the Members within thirty (30) days. 5.5. Bylaws. The Board, at its initial meeting, shall adopt by resolution rules of procedure (“bylaws”), not inconsistent with the provisions of this Agreement, to govern the conduct of its meetings. Such rules of procedure shall be in accordance with the Ralph M. Brown Act. Amendments to the Bylaws shall be reviewed by the Working Committee and comments from the Working Committee, if any, shall be presented to the Board at the time of Board consideration of the amendments. 5.6. Political Reform Act Compliance. Directors of the Board, members of the Working Committee and designated officials and employees shall comply with the Political Reform Act of 1974, Government Code Section 81000 et seq. 5.7. Executive Director. The Executive Director shall report to and take direction from the Board and shall have such authority as is specified by resolution of the Board. Where authorized by the Working Committee, the Executive Director may sign agreements, applications and other documents on behalf of the Authority. The Executive Director shall be designated as a Government Code Section 6505.1 officer who has charge of, handles, and has access to, the Authority's property and shall file with the Authority an official bond in the amount set by the Board. The premiums for such bond may be paid or reimbursed by the Authority. 5.7.1. The SVRIP Executive Director shall serve as the Authority’s Executive Director during the term of the existing employment agreement between the City of San Jose and the SVRIP Executive Director or until an Executive Director is selected pursuant to Section 6.7. 5.8. General Counsel. The Authority shall have a General Counsel. The General Counsel shall report to and take direction from the Board. The Board may designate one of the Authority's or a Member’s employees as General Counsel or contract for such legal services with an independent contractor. 5.9. Policies. The Board may, upon the recommendation of the Working Committee, adopt policies regarding personnel, conflicts of interest and other matters that are necessary or convenient for the efficient operation of the Authority. RD:SSG 11 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 5.10. In addition to such duties as may be necessary or desirable for the implementation of this Agreement, the Board shall have the duty to do the following within the times specified or, if no time is specified, within a reasonable time: 5.10.1. The Board shall hold an initial Board meeting within sixty (60) days of the Effective Date, and adopt an initial budget, work plan, initial policies, and bylaws with or without a Working Committee recommendation; 5.10.2. The Board shall adopt a work plan for each fiscal year; 5.10.3. The Board shall select a General Counsel; 5.10.4. The Board shall direct the Working Committee to evaluate the need for such insurance protection as is necessary to protect the interests of the Authority and its Members, and acquire and maintain if necessary, liability, errors and omissions, property and/or other insurance. ARTICLE 6 – WORKING COMMITTEE 6. Pursuant to Government Code Section 6508, the Authority delegates certain powers related to program development, policy formulation and program implementation to the Working Committee described herein. Specifically, the Working Committee shall have the composition, powers and duties described in this Article and the implied powers necessary therefor. 6.1. The Working Committee shall ensure that a budget and work plan are timely prepared and by March 31 of each year, shall review and recommend the budget and work plan to the Board for approval. Copies of the recommended budget and work plan shall be promptly sent to the Members and the Directors. The budget shall indicate the anticipated sources of revenues and the anticipated uses of such revenues. The work plan shall outline the activities and priorities of the Authority for the following year. 6.2. The Working Committee may apply for and accept all grants and sub-grants that are consistent with the approved work plan, provided that either (a) the amount of matching funds required, if any, does not exceed that threshold provided in the approved work plan and budget, or (b) a Member or other entity volunteers to provide the matching funds without a guarantee of reimbursement. 6.3. The Working Committee may take action to implement or modify any projects, programs or services, provided the projects, programs or services are consistent with the budget and the parameters and thresholds in the work plan. Any projects, programs and services that are not consistent with the work plan and budget shall be reviewed by the Working Committee and recommended to the Board for approval. 6.4. The Working Committee shall let for bid, if required, and award all contracts consistent with the approved work plan, provided that the amount of funds RD:SSG 12 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 required, if any, does not exceed that threshold provided in the approved work plan and budget. The Working Committee may approve any contract amendment, provided that the additional costs to the Authority for such amendment do not exceed the threshold provided in the Authority’s contracting policy and sufficient funds are available in the approved budget. 6.5. The Working Committee shall approve all agreements with Members and other public agencies and all other contracts that are consistent with applicable law and the approved work plan. 6.6. The Working Committee shall recommend a conflict of interest policy and personnel rules, when necessary, and any amendments of those policies to the Board for approval. 6.7. The Working Committee shall adopt policies regarding purchasing and consultants. In addition, the Working Committee may adopt policies on other issues that are necessary or convenient for the efficient operation of the Authority. 6.8. The Working Committee shall recommend an Executive Director, subject to the Board’s approval and approval of the contract between the Authority and Executive Director. 6.9. The Working Committee shall have thirteen (13) Committee Members, unless such number is increased by a resolution adopted by an affirmative vote of 2/3 of the entire Board. Each Committee Member shall serve at the pleasure of the appointing entity identified in Section 6.9.1 and may be removed at any time by that appointing entity without notice. Each Committee Member must be an official, officer, or employee of a Member, but no single Member may have more than three (3) Working Committee Members serving at one time. A Committee Member may also be removed by the Member who he or she serves upon notice to the Authority. If a Committee Member shall fail to attend 70% of the meetings of the Working Committee during the fiscal year, his or her seat shall be deemed vacant and the Authority shall send notice of the vacancy to the appointing entity. If a Committee Member shall cease to be an official, officer, or employee of a Member, his or her seat shall be deemed vacant. If an appointing entity shall fail to appoint a Committee Member within ninety (90) days of a vacancy, the Working Committee may, by majority vote, appoint an interim Committee Member from the officials, officers, or employees of the Members to serve until the appointment of the new Committee Member is completed. 6.9.1. Working Committee Members shall be appointed by the following entities (or successor entities approved pursuant to a resolution of the Working Committee) as follows: 6.9.1.1. Two City Managers appointed by the Santa Clara County/City Managers Association. 6.9.1.2. One fire chief appointed by the Santa Clara County Fire Chiefs Association. RD:SSG 13 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 6.9.1.3. One police chief appointed by the Santa Clara County Police Chiefs Association. 6.9.1.4. The Santa Clara County Executive or his or her designee. 6.9.1.5. Two members appointed by the San Jose City Manager. 6.9.1.6. The Director of Communications for Santa Clara County or his or her designee. 6.9.1.7. One communications manager appointed by the Public Safety Communications Managers Association (of Santa Clara County). 6.9.1.8. Two at-large members appointed by the Working Committee. 6.9.1.9. Two Committee Members appointed by VTA’s General Manager. 6.9.2. Meetings of the Working Committee shall be conducted in compliance with the Ralph M. Brown Act. The Working Committee may adopt by resolution rules of procedure, not inconsistent with the provisions of this Agreement, to govern the conduct of its meetings. 6.9.3. A majority of the Committee Members shall constitute a quorum for the transaction of business and actions of the Working Committee shall require the affirmative vote of a majority of the entire Working Committee (i.e., as of the Effective Restatement Date, seven (7) Committee Members). ARTICLE 7 – FISCAL MATTERS AND FUNDING 7. The Authority shall comply with the fiscal and recordkeeping requirements of the Joint Exercise of Powers Act and shall take such other actions as necessary or desirable to address the fiscal, funding and budgeting needs of the Authority. 7.1. Treasurer and Auditor. The Treasurer and Auditor/Controller of Santa Clara County, respectively, are designated the Treasurer and Auditor of the Authority with the powers, duties, and responsibilities specified in the Joint Exercise of Powers Act, including, without limitation, Sections 6505 and 6505.5 thereof; provided however, the Board may revoke this designation by adopting a resolution appointing one or more of the Authority's or a Member’s officers or employees to either or both of the positions of Treasurer or Auditor as provided in Sections 6505.6 of the Joint Exercise of Powers Act. 7.2. Accounts and Reports. The Board shall establish and maintain such funds and accounts as may be required by generally accepted public accounting practice. The books and records of the Authority shall be open to inspection at all reasonable times to the Members and their respective representatives. The accounts shall be prepared and maintained by the Treasurer and/or Auditor of the Authority. The Auditor shall, within one hundred twenty (120) days after the close of each fiscal year, cause an independent audit of all financial activities for RD:SSG 14 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 such fiscal year to be prepared in accordance with Government Code Section 6505. The Authority shall promptly deliver copies of the audit report to each Director and the Members. 7.3. Budget. The Board shall adopt an initial budget consistent with Section 5.10 and adopt subsequent budgets no later than April 30th of each year thereafter. Adoption of the budget shall require an affirmative vote of 2/3 of the entire Board. 7.4. Fiscal Year. The fiscal year of the Authority shall be the period from July 1st of each year to and including the following June 30th. 7.5. Debts, Liabilities and Obligations. The debts, liabilities, and obligations of the Authority shall not constitute debts, liabilities, or obligations of the Members, either jointly or severally. 7.6. Initial Contribution for Annual Operating Costs. Within thirty (30) days of the Effective Date, each Member except the City of Los Altos Hills and the City of Monte Sereno shall make an initial operating costs contribution of $13,157 to the Authority. The City of Los Altos Hills and the City of Monte Sereno shall each make an initial operating costs contribution of $8,000. Notwithstanding the above, any Member who has already contributed the identified amount pursuant to the Joint Funding Agreement for the 2009-2010 fiscal year need not make such initial operating costs contribution. Within thirty (30) days of the Restatement Date, the VTA shall make a contribution towards operating costs of $13,157 to the Authority. 7.7. Initial Contribution for Annual Maintenance Costs. Within thirty (30) days of the Effective Date, each Member shall make an initial systems maintenance contribution of the amount required pursuant to the City Manager’s Association approved maintenance assessment formula. 7.7.1. The City Managers’ Association approved maintenance assessment formula provides the following population allocation percentages: Campbell - 2.21%, Cupertino - 3.02% , Gilroy - 2.60%, Los Altos - 1.60%, Los Altos Hills - 0.48%, Los Gatos - 1.67%, Milpitas – 3.76%, Monte Sereno - 0.20% , Morgan Hill - 2.02%, Mountain View – 4.16%, Palo Alto – 3.50% , San Jose – 53.47%, Santa Clara – 6.12%, Saratoga - 1.76%, and Sunnyvale – 7.66%; and unincorporated Santa Clara County - 5.78%. 7.7.2. The following contributions are due based on the above percentages: Campbell - $3,315, Cupertino - $4,530, Gilroy - $3,900, Los Altos - $2,400, Los Altos Hills - $720, Los Gatos - $2,505, Milpitas – $5,640, Monte Sereno - $300, Morgan Hill - $3,030, Mountain View – $6,240, Palo Alto – $5,250 , San Jose – $80,205, Santa Clara – $9,180, Saratoga - $2,640, and Sunnyvale – $11,490, and unincorporated Santa Clara County - $8,670. 7.7.3. Notwithstanding the above, any Member who has already contributed the identified amount pursuant to the Joint Funding Agreement RD:SSG 15 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 for the 2009-2010 fiscal year need not make such initial maintenance contribution. 7.8. Annual Operating Costs. Each year, the Working Committee shall propose projected Annual Operating Costs, which projected costs shall be adopted by the Board prior to or during approval of the budget. 7.8.1. Population Share. Half of the adopted Annual Operating Costs shall be allocated to the Members based on their respective population (the “Population Share”). Each Member shall pay a portion of the Population Share which shall be determined based on that Member’s population. The Population Share, each Member’s share of the Population Share shall be determined pursuant to the funding policy adopted by the Board at its initial meeting, as may be amended. The funding policy shall specify the accepted method for calculating each Member’s population (e.g., census data). Notwithstanding the foregoing, on or after the Restatement Date, the Working Committee shall commission or obtain a cost allocation study which considers usage, overhead, and other reasonable cost factors and with that data shall propose, subject to the adoption of the Board, an allocation methodology for the VTA that is not based on population. 7.8.2. Membership Share. Half of the adopted Annual Operating Costs shall be allocated to the Members based on the principle that Members share these costs equally, except that the Smaller Members shall pay 60% of a Full Share (the “Membership Share”). Each Member except the Smaller Members shall pay an equal full share of the adopted Annual Operating Costs (Full Share”) the Smaller Members shall pay 60% of a Full Share. The total of all shares shall be 100% of the Membership Share. A Full Share shall be calculated according to the formula implementing the above principle contained in the funding policy adopted by the Board at its initial meeting, as may be amended. 7.9. Annual Systems Maintenance Costs. Each year, the Working Committee shall propose projected Annual Systems Maintenance Costs, which projected costs shall be approved by the Board prior to or during approval of the budget. 7.9.1. Each Member shall pay a share of the adopted Annual Systems Maintenance Costs based on the principle that Members shall share systems maintenance costs based on system and service usage and that until sufficient data is available regarding Member usage, Member population data is an acceptable proxy for usage. 7.9.2. Each Member’s share of the adopted Annual Systems Maintenance Costs shall be calculated according to the formula implementing the principles in Section 7.9.1 contained in the funding policy adopted by the Board at its initial meeting, as may be amended. 7.10. Other Projects, Programs and Services. In the event that a project, program, service, or reserve fund is approved which has costs that are not RD:SSG 16 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 Annual Operating Costs or the Annual Systems Maintenance Costs, the Working Committee shall either (a) develop a proposed cost allocation formula for the non-overhead costs based on the principle that costs shall be assessed to Members based on usage but, if usage data or projected usage data is not available, until sufficient data is available, Member population and entity type data are acceptable proxies for usage or (b) conduct or obtain a cost allocation study which considers usage, overhead, and other reasonable cost factors. The Board shall approve any such proposed cost allocation. 7.11. Limited Scope Agreements. Where a project or program is intentionally designed to be limited in scope such that it only provides benefits to particular Members, the Authority may enter into specific project or program agreements that provide for cost sharing by the particular affected Members; provided however, both the Board and Working Committee must approve such agreements. 7.12. Contributions on Behalf of Members. Special Districts or other parties may tender to the Authority those contributions due from a Member on that Member’s behalf. ARTICLE 8 –GENERAL PROVISIONS 8. The following general provisions apply to this Agreement. 8.1. Term and Termination. This Agreement shall be effective as of the Effective Date. It shall remain in effect until the purposes of the Authority are fully accomplished, or until terminated by the vote of a majority of the governing bodies of the Members; provided, however, that this Agreement may not be terminated, until (a) all bonds or other instruments of indebtedness issued by the Authority and the interest thereon, if any, have been paid in full or provision has been made for payment in full and (b) all outstanding obligations and liabilities of the Authority have been paid in full or provision has been made for payment in full, except as set forth in Section 8.2. 8.2. Disposition of Property upon Termination. In the event of termination of the Authority pursuant to Section 8.1 herein and where there will be a successor public entity which will carry on the functions of the Authority and assume its assets and liabilities, the assets of the Authority shall be transferred to the successor public entity. If upon termination pursuant to Section 8.1, there is no successor public entity which will carry on the functions of the Authority and assume its assets, the assets shall be returned to the Members as follows: (a) all real property and any improvements thereon shall be conveyed to the Member which owned the property prior to the formation of the Authority, and (b) all other assets shall be divided among the Members in proportion to their respective contributions during the term of this Agreement. If upon termination pursuant to Section 8.1, there is a successor public entity which will carry on some of the functions of the Authority and assume some of RD:SSG 17 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 the assets, the Authority's Board shall allocate the assets between the successor public entity and the Members. 8.3. Indemnification. To the fullest extent allowed by law, the Authority shall defend, indemnify, and save harmless the Members and their governing bodies, officers, agents, and employees from all claims, losses, damages, costs, injury, and liability of every kind, nature, and description directly or indirectly arising from the performance of any of the activities of the Authority or the activities undertaken pursuant to this Agreement. 8.4. Liability of Board, Officers and Employees. The Directors, Working Committee Members, officers, and employees of the Authority shall use ordinary care and reasonable diligence in the exercise of their powers, and in the performance of their duties pursuant to this Agreement. They shall not be liable to the Members for any mistake of judgment or other action made, taken, or omitted by them in good faith, nor for any action made, taken, or omitted by any agent, employee, or independent contractor selected with reasonable care, nor for loss incurred through the investment of the Authority's funds, or failure to invest the same. 8.5. To the extent authorized by California law, no Director, Working Committee Member, officer, or employee of the Authority shall be responsible for any action made, taken, or omitted, by any other Director, Working Committee Member, officer, or employee. No Director, Working Committee Member, officer, or employee of the Authority shall be required to give a bond or other security to guarantee the faithful performance of his or her duties pursuant to this Agreement, except as required herein pursuant to Government Code Section 6505.1. The funds of the Authority shall be used to defend, indemnify, and hold harmless the Authority and each Director, Working Committee Member, officer, or employee of the Authority for actions taken in good faith and within the scope of his or her authority. Nothing herein shall limit the right of the Authority to purchase insurance to provide coverage for the foregoing indemnity. 8.6. Successors: Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Members. No Member may assign any rights or obligations hereunder without the unanimous consent of the governing bodies of the other Members; provided, further, that no such assignment may be made if it would materially and adversely affect (a) the rating of bonds issued by the Authority, or (b) bondholders holding such bonds. 8.7. Amendments. This Agreement may be amended only upon approval of all the governing bodies of the Members. So long as any bonds of the Authority are outstanding and unpaid, or funds are not otherwise set aside for the payment or redemption thereof in accordance with the terms of such bonds and the documentation relating thereto, this Agreement shall not be amended, modified or otherwise revised, changed or rescinded, if, in the judgment of the Board, such action would (a) materially and adversely affect (1) the rating of bonds issued by the Authority, or (2) bondholders holding such bonds, or (b) limit or reduce the RD:SSG 18 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 obligations of the Members to make, in the aggregate, the payments which are for the benefit of the owners of such bonds. 8.8. No Third Party Beneficiaries. This Agreement is intended solely for the benefit of the Authority and its Members. No third party shall be deemed a beneficiary of this Agreement or have any rights hereunder against the Authority or its Members. 8.9. Dispute Resolution. In the event that any party to this Agreement should at any time claim that another party (or parties) has breached or is breaching this Agreement, the complaining party shall file with the governing body of claimed breaching party, and with the Authority, a written claim of said breach, describing the alleged breach and otherwise giving full information respecting the same. The Board shall thereupon, at a reasonable time and place, specified by it, give each of these parties to the dispute an opportunity to be heard on the matter, and shall, upon conclusion of said hearing, give the Members a full report of its findings and recommendations. Said report, findings and recommendations shall be deemed advisory only, shall not in any way bind any of the parties to the dispute, and shall not be deemed to establish any facts, either presumptively or finally. Upon receipt of said report and recommendations, if any party to the dispute should be dissatisfied with or disagree with the same, that party shall provide written notice to the other parties within ten (10) business days, and the parties to the dispute or their representatives shall meet at a reasonable time and place to be determined by them, for the purpose of resolving their differences. No action for breach of this Agreement, and no action for any legal relief because of any such breach or alleged breach of this Agreement shall be filed or commenced by any party unless and until such party has first given to the other parties a reasonable time, after the parties to the dispute have met to resolve their differences, within which to cure any breach or alleged breach. 8.10. Notices. Any notices to Members required by this Agreement shall be delivered or mailed, U.S. first class, postage prepaid, addressed to the principal office of the respective Members. Notices under this Agreement shall be deemed given and received at the earlier of actual receipt, or the second business day following deposit in the United States mail, as required above. Any Member may amend its address for notice by notifying the other Members pursuant to this Section. 8.11. Severability. Should any part, term, or provision of this Agreement be decided by the courts to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining portions or provisions shall not be affected thereby. 8.12. Liberal Construction. The provisions of this Agreement shall be liberally construed as necessary or reasonably convenient to achieve the purposes of the Authority. 8.13. Headings. The headings used in this Agreement are for convenience only and have no effect on the content, construction, or interpretation of the Agreement. RD:SSG 19 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 8.14. Counterparts. This Agreement may be executed in any number of counterparts, and by different parties in separate counterparts, each of which, when executed and delivered, shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. 8.15. Non-Waiver. No waiver of the breach or default of any of the covenants, agreements, restrictions, or conditions of this Agreement by any Member shall be construed to be a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, or conditions of this Agreement. No delay or omission of exercising any right, power or remedy in the event of breach or default shall be construed as a waiver thereof, or acquiescence therein, or be construed as a waiver of a variation of any of the terms of this Agreement or any applicable agreement. 8.16. Agreement Complete. The foregoing constitutes the full and complete Agreement of the parties. There are no oral understandings or agreements not set forth in writing above. Any such agreements merge into this Agreement. This document continues on the following page. RD:SSG 20 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives. City of Campbell By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ City of Cupertino By: _______________________ Name: _______________________ Title: _______________________ City of Gilroy By: _______________________ Name: _______________________ Title: _______________________ City of Los Altos By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ RD:SSG 21 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 Town of Los Altos Hills By: _______________________ Name: _______________________ Title: _______________________ Town of Los Gatos By: _______________________ Name: _______________________ Title: _______________________ City of Milpitas By: _______________________ Name: _______________________ Title: _______________________ City of Monte Sereno By: _______________________ Name: _______________________ Title: _______________________ City of Morgan Hill By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ RD:SSG 22 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 City of Mountain View By: _______________________ Name: _______________________ Title: _______________________ City of Palo Alto By: _______________________ Name: _______________________ Title: _______________________ City of San Jose By: _______________________ Name: _______________________ Title: _______________________ City of Santa Clara By: _______________________ Name: _______________________ Title: _______________________ County of Santa Clara By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ RD:SSG 23 T-15939\ 592861_3 Silicon Valley Regional Interoperability Project JPA Agreement Restatement 5-30-16 City of Saratoga By: _______________________ Name: _______________________ Title: _______________________ City of Sunnyvale By: _______________________ Name: _______________________ Title: _______________________ Santa Clara Valley Transportation Authority By: _______________________ Name:_______________________ Title:_________________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ Approved as to form: By: _______________________ Name: _______________________ Title: _______________________ City of Palo Alto (ID # 8174) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Aquatics Contract Title: Approval of a Contract Amendment with Team Sheeper for Operational Management of Rinconada Pool's Lap and Open Swim Programs as well as Oversight of Rinconada Masters and Palo Alto Stanford Aquatics Programs From: City Manager Lead Department: Community Services Recommendation Staff recommends that the City Council authorize the City Manager to amend the Team Sheeper’s swim contract from August 14, 2017 through December 31, 2018 to include:  operational management of Rinconada’ s lap and open swim programs; and  oversight of Rinconada Masters and Palo Alto Stanford Aquatics (PASA) programs. Executive Summary Beginning in 2015, the City has struggled to hire and retain adequate pool staff to meet community demand for the Lap Swim, Learn-to-swim and Family Recreation Swim programs. In 2015, the Community Services Department (CSD) entered into an emergency contract with an outside vendor to mitigate its Learn-to-swim staffing shortages. Working on a very short timeline, CSD was able to write and approve a contract with Team Sheeper Inc., a professional third party aquatics service provider who mobilized quickly to provide qualified professional swim instructors and lifeguards to support the Palo Alto aquatics programs. In search of a more sustainable and reliable solution for community aquatics services, in December 2015, CSD issued a Request for Proposals (RFP) for the following services: 1) Learn-to-swim lessons; 2) Youth Competitive Swim Team; 3) Adult Masters Swim Team; and 4) aquatics facilities operation, including recreational swim, lap swim, and pool rentals. Firms were invited to submit a proposal for one or all of the above services and attend a pre-bid meeting. Two proposals were received, one from the Palo Alto Family YMCA and the other from Team Sheeper Inc.; both bidders were invited to present their proposals and respond to questions from the consultant review team. The consultant review team was represented by five City staff, a Recreation Supervisor from City of Palo Alto Page 2 the City of Mountain View, a Recreation Supervisor from the City of Milpitas, and a pool user (lap swim). After careful review of both proposals, discussions with the consultant review team and interviews of the two potential service providers, the proposals were scored and Team Sheeper prevailed as the preferred contractor. Although Team Sheeper was the preferred contractor responding to the RFP, staff also evaluated what staff and resource requirements would be needed if the City were to operate the Aquatics program in-house as a City-run aquatics program at the same level of programming Team Sheeper proposed, which included significant expansions of the swim lesson program as well as additional year round hours for lap swim and recreation swim. Staff also considered the option of maintaining the status quo with a summer-only recreational swim program and continuing to contract swimming lessons as we have done for the past two summers. Staff has now completed this evaluation. Staff reviewed management alternatives using the following criteria:  City and Customer Costs  Quality of Service and Customer Satisfaction  Diversity of Programming and Accessibility In conducting this evaluation, it became clear that Team Sheeper could provide high quality programming, expand open and recreational swim programs, and provide more youth swim lessons at a lower cost than an in-house model primarily because an in- house model would require additional fulltime benefitted employees. Staff recommends expanding the public-private partnership with Team Sheeper, Inc. that we entered into in January 2017. The current contract is limited to providing swim lessons and summer swim camps in 2017 and expires on December 31, 2017. The proposed contract amendment would add: summer swim lessons for 2018 (at City negotiated fees without subsidizing Team Sheeper), summer swim camps, expanded recreational and lap swim programming, oversight of PASA and Rinconada Masters, and day-to-day management of the City aquatics program at lower cost to the City. Discussion On January 9, 2017, City Council approved and authorized an agreement between the City of Palo Alto and Team Sheeper, Inc. for the City’s Learn to Swim Program in the 2017 calendar year. Team Sheeper began offering swim lessons through that contract in April of this year and lessons will continue through October. This summer, Team Sheeper will also be offering a swim camp as part of this contract. Community feedback for the expanded program has been positive. In order to alleviate staffing challenges, staff is recommending expanding Team Sheeper’s current contract to include swim lessons and camps for 2018 as well as lifeguards and pool oversight for the recreational and lap swim programs from August 14, 2017 through December 31, 2018. Additionally, staff would like to structure PASA’s and Rinconada Masters’ contracts as City of Palo Alto Page 3 subcontracts under Team Sheeper’s contract. This relationship structure will allow for a clear process for managing day-to-day scheduling at the pool under one operator in collaboration with CSD staff. Staff recommends structuring the contract as a services agreement to allow the City to maintain an active role in determining scheduling and pricing. In this agreement, the City will continue to be responsible for facility maintenance and repairs and Team Sheeper will provide light cleaning and maintenance each day. Staff recommends using a revenue share model for the services added to this contract so there would not be any additional cost associated with this contract beyond the one- time 2017 swim lesson subsidies (See Attachment C Staff Report 7552 for details). Because Team Sheeper’s staff will be collecting revenues at the points of entry for Rinconada Pool, staff recommends that Team Sheeper use their own Point of Sale (POS) and registration system to collect pool entries and to register participants for memberships, classes, and camps. In order to reduce the City’s risk and limit access to personal customer information, staff does not recommend providing Team Sheeper’s staff with access to the City’s POS and registration system, Enjoy Online, used across all other CSD program areas. Outreach Staff has engaged residents and Rinconada Pool users to ensure that this contract model is established in a way that preserves Rinconada’s quality customer experience. Over the last several months, staff has held formal community meetings, informal discussions at the pool with residents and customers, and conducted surveys of swim lesson participants, to solicit feedback on the aquatics program and potential changes. Staff also organized a focus group consisting of lap swimmers to discuss potential adjustments to the lap swim program including schedule and pricing changes. In synthesizing the information from these sources, it has become clear that pool users would like to ensure that the City shares control over Rinconada’s scheduling and pricing with Team Sheeper. Staff has incorporated this feedback into the contract amendment, requiring both Team Sheeper’s and the City’s approval to make scheduling and price changes. As has occurred in the past, schedule changes are likely to occur quarterly and price adjustments are likely to occur annually. The current Municipal Fee Schedule proposed for FY 2018 continues the past practice of authorizing a range for various charges; fees are anticipated to remain within these levels. Operating Changes Associated with this Proposed Agreement If this agreement is adopted there will be several modest changes for residents including pricing, membership options and slight schedule changes. Pricing Fall 2017 Resident Pricing City of Palo Alto Page 4 City of Palo Alto Page 5 Fall 2017 Non-resident Pricing One notable change from the proposed fee structure is a transition from a 10 pack swim option to a monthly pass program. Team Sheeper’s POS and registration system is set up to offer monthly passes and does not offer 10 packs. During the negotiation process staff reviewed the impact of this change and found it reasonable. The monthly pass price was set by City staff to provide a reasonable price break to heavy pool users and was agreed to by Team Sheeper. If this contract amendment is approved, City staff will refund aquatics 10 pack customers the cost of any remaining 10 pack swims during the fall of 2017. City of Palo Alto Page 6 Scheduling Changes Team Sheeper has agreed to maintain “block schedules” for much of the existing weekly programming and has proposed additional recreational swim programming which can be seen in this draft fall 2017 Schedule: Current Summer Fall - Rinconada Pool 6:00am 6:30am 7:00am 7:30am 8:00am 8:30am 9:00am 9:30am 10:00am 10:30am 11:00am 11:30am 12:00pm 12:30pm 1:00pm 1:30pm 2:00pm 2:30pm 3:00pm 3:30pm 4:00pm 4:30pm 5:00pm 5:30pm 6:00pm 6:30pm 7:00pm 7:30pm 8:00pm 8:30pm Saturday Lap Swim (14 lanes) Lap Swim (7 lanes) Rec Swim (7 lanes) Lap Swim (14 lanes) Masters (14 lanes) Sunday Lap Swim (14 lanes)Lap Swim (14 lanes) Masters (14 lanes) Monday Tuesday Wednesday Thursday Friday Masters (14 lanes)Lap Swim (14 lanes) Masters (14 lanes)Lap Swim (14 lanes) Masters (14 lanes) Lap Swim (14 lanes) Masters (14 lanes) PASA (7 lanes) Lap Swim (7 lanes) PASA (14 lanes) Masters (14 lanes) Lap Swim (14 lanes) PASA (7 lanes) Lap Swim (7 lanes) Lap Swim (14 lanes) Lap Swim (14 lanes) PASA (14 lanes) PASA (14 lanes) PASA (14 lanes) Lap Swim (7 lanes) Rec Swim (7 lanes) Lap Swim (14 lanes) Masters (14 lanes) PASA (7 lanes) Lap Swim (7 lanes) Masters (14 lanes) PASA (14 lanes) (4 lanes)(10 lanes)(4 lanes)(10 lanes) (7 lanes) PASA (14 lanes) Lap Swim (14 lanes) (7 lanes) Lap Swim (14 lanes) (7 lanes)(7 lanes) City of Palo Alto Page 7 To visualize the minor schedule changes, the 2016 fall schedule is below: Current Summer Fall - Rinconada Pool 6:00am 6:30am 7:00am 7:30am 8:00am 8:30am 9:00am 9:30am 10:00am 10:30am 11:00am 11:30am 12:00pm 12:30pm 1:00pm 1:30pm 2:00pm 2:30pm 3:00pm 3:30pm 4:00pm 4:30pm 5:00pm 5:30pm 6:00pm 6:30pm 7:00pm 7:30pm 8:00pm 8:30pm Sunday Masters (14 lanes)Lap Swim (14 lanes) Masters (14 lanes)Lap Swim (14 lanes) Masters (14 lanes)Lap Swim (14 lanes)Lap Swim (14 lanes) Monday Tuesday Wednesday Thursday Friday Saturday Lap Swim (14 lanes) PASA (14 lanes) Lap Swim (14 lanes) Maintenance Masters (14 lanes) PASA (14 lanes) PASA (7 lanes) Lap Swim (7 lanes) PASA (14 lanes) Masters (14 lanes) Maintenance Lap Swim (14 lanes) PASA (14 lanes) PASA (7 lanes) Lap Swim (7 lanes) Maintenance Lap Swim (14 lanes) (7 lanes) Lap Swim (14 lanes) PASA (14 lanes) Masters (14 lanes) Maintenance Lap Swim (14 lanes) (7 lanes)(7 lanes) PASA (14 lanes) (7 lanes) Masters (14 lanes) Masters (14 lanes) PASA (14 lanes) Maintenance Lap Swim (14 lanes) Lap Swim (14 lanes) Lap Swim (14 lanes) PASA (7 lanes) Lap Swim (7 lanes)(4 lanes)(10 lanes)(4 lanes)(10 lanes) Lap Swim (14 lanes) Masters (14 lanes) The most noteworthy changes between last year’s schedule and this year’s proposed schedule are: 1) PASA has indicated that they would like to moderately reduce their early afternoon hours and regular Sunday hours at Rinconada which will allow time for additional recreational and lap swim hours throughout the fall; and 2) lap swim lanes will be reduced on Saturday and Sunday afternoons to accommodate added recreational swim times. The tentative 2017 summer swim schedule can also be seen in Exhibit A. At the conclusion of the fall season, Team Sheeper will work with City staff to develop a winter schedule as they will do for all remaining seasons for the duration of the contract. Other Contract Terms In order to keep prices accessible to all residents, the contract negotiated in January of this year included City payments to Team Sheeper of $6 for every resident group lesson City of Palo Alto Page 8 participant and $28 for every resident private lesson participant during the 2017 lesson season. It also included a 10 percent revenue share for lesson revenues. This contract amendment would eliminate any City payments to Team Sheeper to subsidize swim lessons for the 2018 lesson season. Any proposed price changes between 2017 and 2018 must be approved by City staff as well as Team Sheeper. As part of this contract amendment, staff negotiated a revenue share of up to 12 percent based on the number of lessons provided during the year. Because the City will remain involved in scheduling and pricing; to ensure the pool is not overly crowded; and that lesson fees remain affordable; Team Sheeper’s earning capacity will be limited, and therefore City staff propose the revenue share arrangement below. The table uses swim lessons as the driver for the revenue share because it is easy to monitor and is the prime generator of aquatics revenues. Swim lessons sold in CY Gross revenue share to City from all programs 11,000 or less 1% 11,001-12,000 2% 12,001-13,000 3% 13,001-14,000 4% 14,001-15,000 5% 15,001-16,000 6% 16,001-17,000 7% 17-001-18,000 8% 18,001-19,000 9% 19,001-20,000 10% 20,001-21,000 11% 22,000 or more 12% City staff will continue to be closely involved with aquatics programming to ensure the sustained success of the services and satisfaction of users. This contract proposal also includes provisions that Team Sheeper will provide staff with customer statistics on a monthly basis including resident and non-resident use of classes, camps, memberships and daily entrants. Additionally, Team Sheeper will provide the City with an annual report which will include customer feedback and survey data. It is anticipated that Team Sheeper will provide oversight and management of PASA and Rinconada Masters use of Rinconada Pool. Subcontracts with these programs have been drafted and the City is helping facilitate negotiations between Team Sheeper, PASA and Rinconada Masters to ensure these longstanding programs thrive in this new operating model. For reference the draft subcontract terms for PASA and Rinconada Masters can be found in Exhibit B. City of Palo Alto Page 9 The subcontract with PASA is nearly complete and provides PASA with the same pool space and schedule as they have had while contracting directly with the City. It also asks for a modest increase in pool use fees. Fees for PASA will increase from approximately $4 per lane per hour to $5 per lane per hour under this subcontract. Staff continues to work with Rinconada Masters on their subcontract. The subcontract will provide their group with the same schedule and pool space as they have today. It also asks for a modest increase in pool use fees as well as lifeguards on deck during Masters workouts. Staff is working to establish a subcontract with Rinconada Masters that will raise their fees from approximately $1.50 per lane per hour to $2 per lane per hour. Fees for Rinconada Masters are exceptionally low because the Masters serves a very small group of users. Growing the Masters program is a priority for the Community Services Department and staff will continue to work with the Masters to encourage more participation during the contract term. Contract Duration This contract is set as a short duration contract, expiring on December 31, 2018. This will give the City time to assess the contract model and contract terms. Staff will begin a new RFP process during the spring of 2018 and will use data and community feedback from this contract as part of our evaluation of the new operating model. Impact on City Staff Currently the pool is managed by approximately 5 FTE, one fulltime and the remaining part-time positions all represented by the Service Employees International Union (SEIU). The Human Resources Department notified SEIU of the impact to their union members and addressed all concerns related to the transition of staff and placement of other impacted employees. No lay-offs of fulltime staffing are anticipated as an appropriate vacancy remains elsewhere in CSD. For the hourly employees, Team Sheeper would like to interview any interested hourly lifeguard and swim instructor employees for positions with their organization, and staff understands that Team Sheeper’s pay and benefits exceed that of the City’s for lifeguard and instructor positions. Team Sheeper uses both year-round and seasonal employees at its other pools and estimates that at least 70 percent of seasonal staff consists of local high school and college students. If they operate Rinconada Pool, they expect a similar portion of local students to work during summers. City of Palo Alto Page 10 Resource Impact The City will need to adjust the FY 2018 budget for Aquatics to reflect changes caused by this contract amendment. Forecasted Fiscal Impact FY 2016 FY 2017 FY 2018 FY 2018 FY 2019 Actuals Current Budget Proposed Budget* CSD Rec. Revised Budget Contract (Est.) City Provided Program Revenue 424,352 555,993 555,994 100,000 0 Revenue Share 0 0 0 45,000 125,000 Total Revenue 424,352 555,993 555,994 145,000 125,000 Salaries and Benefits 445,231 500,974 391,394 208,500 35,000 PAUSD Charges for Summer Pool Rental 20,626 21,250 21,250 21,888 25,000 Contract Fees 75,000 143,947 0 85,000 0 Other Operating Expenditures 39,245 42,245 40,606 37,106 0 Total Program Expenditures 580,102 708,416 453,250 352,494 60,000 Net General Fund Program Impact Surplus/(Subsidy) ($155,750) ($152,423) $102,744* ($207,494) $65,000 Maintenance & Utility Costs 320,000 320,000 320,000 320,000 320,000 * The City was in active negotiations during the budget process; therefore, the proposed budget was not adjusted from FY 2017 with the exception of holding vacant the Recreation Coordinator position for one year as to allow the department to work through the service delivery model. The proposed budget did not, however, reflect the final financial implications should the City commence operations with Team Sheeper. The proposed budget anticipated that adjustments to both reduce revenues and expenses would be necessary should a contract with Team Sheeper be executed. Revenues and actual expenses will be monitored and adjustments brought forward during FY 2018 as necessary. There are several one-time expenses associated with implementing this contract amendment, these include:  Refunding aquatics 10 pack customers any remaining pool entries; expected to cost approximately $35,000 and occur during FY 2018;  Paying Team Sheeper approximately $85,000 for remaining swim lesson subsidies for the 2017 swim lesson program; 2018 swim lessons have been negotiated to be provided at City rates with no subsidy payment; and City of Palo Alto Page 11  Continuing the in-house aquatics program through August 13, 2017 – this contract amendment would have Team Sheeper begin providing management of the lap and recreational swim programs on August 14, 2017. Because the expanded contract will not begin until August 14th, the City can expect to incur approximately $173,000 in salaries and benefits for July and August and will bring in an estimated $100,000 in revenues for aquatics programs in July and August. While the one-time expenses totaling $120,000 described above will increase the net General Fund impact in FY 2018; moving to a public-private partnership model will provide significant savings in FY 2019 and beyond. The intent of the recommendations in this staff report is to provide an enhanced level of service at or below current cost to the General Fund. Contracting with Team Sheeper will meet this goal. Policy Implications This proposal is aligned with Comprehensive Plan goal G1: Effective and Efficient Delivery of Community Services. City of Palo Alto Page 12 Exhibit A Tentative Summer Schedule for 2017 Attachments:  Attachment A: Exhibit B C17161146 PSA TS SUMMER 2017 AQUATICS PROGRAM Amendment 5.31.17 v3.docx  Exhibit B Subcontract Terms  Attachment B: Exhibit C ID# 7552 Sheeper DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 1 EXHIBIT B CITY OF PALO ALTO CONTRACT NO. C17161146 (AS AMENDED) FIRST AMENDED AGREEMENT BETWEEN THE CITY OF PALO ALTO AND TEAM SHEEPER, INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this 1st day of June, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and TEAM SHEEPER, INC. a California corporation, located at 501 Laurel Street, Menlo Park, CA 94025 ("CONTRACTOR"). RECITALS The following recitals are a substantive portion of this Agreement. A.CITY intends to provide its Recreation Aquatics Program and desires to engage aCONTRACTOR to provide certified swim instructors and certified lifeguards to provide swim lessons, swim camps, and lifeguarding services offered at Rinconada Pool, 777 Embarcadero Road, Palo Alto, CA 94301 and other locations in connection with the Project (“Services”). B.CONTRACTOR 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 CONTRACTOR to providethe Services as more fully described in Exhibit “A”, attached to and made a part of thisAgreement. D.CITY and CONTRACTOR have already entered into a contract (C17161146) in January 2017 for CONTRACTOR to provide aquatics services to CITY. CITY and CONTRACTORintend that this contract will fully replace that contract. E.CITY and CONTRACTOR recognize that this First Amended Agreement contains new consideration to effectuate this amendment. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree that the Original Agreement is amended to read in its entirety as follows: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONTRACTOR shall perform the Services described at Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 2 performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 2018 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. CONTRACTOR 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 CONTRACTOR in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONTRACTOR. 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 CONTRACTOR. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid by CITY to CONTRACTOR for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed One Hundred Thirteen Thousand Dollars ($113,000). CONTRACTOR agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exceed One Hundred Forty Three Thousand Dollars ($143,000). The applicable rates and schedule of payment are set out at Exhibit “C”, 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”. CONTRACTOR 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. At the conclusion of each Aquatic Season, CONTRACTOR will invoice the CITY for payment for any additional services authorized by the CITY. The CONTRACTOR’s payment voucher will then be submitted to the fiscal section for payment at which point the CITY has 30 working days from the last date of the payment voucher to render payment to the CONTRACTOR. Invoices must include CONTRACTOR name, address, contract number, date of services, compensation amount. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONTRACTOR or under CONTRACTOR’s supervision. CONTRACTOR 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. CONTRACTOR represents that it, its employees and subcontractor’s, if permitted, have and shall maintain during the term of this Agreement all DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 3 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 CONTRACTOR 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. CONTRACTOR 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. CONTRACTOR 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. CONTRACTOR is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONTRACTOR’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, CONTRACTOR 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, CONTRACTOR 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 CONTRACTOR, and any person employed by or contracted with CONTRACTOR 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 CONTRACTOR are material considerations for this Agreement. CONTRACTOR shall not assign or transfer any interest in this Agreement nor the performance of any of CONTRACTOR’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. CONTRACTOR 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. CONTRACTOR shall be responsible for directing the work of any subcontractor’s and for any compensation due to or from subcontractors. CITY assumes no responsibility whatsoever concerning compensation. CONTRACTOR shall be fully responsible to CITY for all acts and DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 4 omissions of a subcontractor. CONTRACTOR shall change or add subcontractors only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONTRACTOR will assign Tim Sheeper as the project manager to have supervisory responsibility for the performance, progress, and execution of the Services and as the project coordinator to represent CONTRACTOR 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. CONTRACTOR, 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 Stephanie Douglas, Community Services Department, 1305 Middlefield Road, Palo Alto, CA 94303, Telephone (650) 329-2107. The project manager will be CONTRACTOR’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 products, 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. CONTRACTOR agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONTRACTOR waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONTRACTOR 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. CONTRACTOR 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. CONTRACTOR will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONTRACTOR’s records pertaining to matters covered by this Agreement. CONTRACTOR further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONTRACTOR 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 CONTRACTOR, its officers, employees, agents or contractors (including all subcontractors) under this Agreement, regardless of whether or not it is DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 5 caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONTRACTOR 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 CONTRACTOR’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. CONTRACTOR, 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". CONTRACTOR 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 CONTRACTOR retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONTRACTOR, CONTRACTOR shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONTRACTOR’s receipt of such notice. CONTRACTOR 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 CONTRACTOR's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 6 CONTRACTOR 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 sixty (60) days prior written notice thereof to CONTRACTOR. Upon receipt of such notice, CONTRACTOR will immediately discontinue its performance of the Services. 19.2. CONTRACTOR may terminate this Agreement or suspend its performance of the Services by giving sixty (60) days prior written notice thereof to CITY. 19.3. Upon such suspension or termination, CONTRACTOR 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 CONTRACTOR or its contractors, if any, or given to CONTRACTOR 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, CONTRACTOR 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 CONTRACTOR, CITY will be obligated to compensate CONTRACTOR only for that portion of CONTRACTOR’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONTRACTOR: Attention of the project director DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 7 at the address of CONTRACTOR recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONTRACTOR further covenants that, in the performance of this Agreement, it will not employ subcontractors or persons having such an interest. CONTRACTOR 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 CONTRACTOR is a “CONTRACTOR” as that term is defined by the Regulations of the Fair Political Practices Commission, CONTRACTOR 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, CONTRACTOR certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONTRACTOR shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONTRACTOR shall comply with the following zero waste requirements: (a)All printed materials provided by CONTRACTOR to CITY generated from apersonal 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 CONTRACTOR on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 8 packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONTRACTOR, at no additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONTRACTOR shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 This Project is not subject to prevailing wages. CONTRACTOR is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. OR 26.1 CONTRACTOR is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. CONTRACTOR shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 9 adopted prevailing wage rates as a minimum. CONTRACTOR shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. 26.2 CONTRACTOR shall comply with the requirements of Exhibit “E” for any contract for public works construction, alteration, demolition, repair or maintenance. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and CONTRACTORs of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONTRACTOR’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONTRACTOR, CITY shares with CONTRACTOR personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONTRACTOR shall maintain reasonable DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 10 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. CONTRACTOR shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 All unchecked boxes do not apply to this agreement. 27.11 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement CONTRACT No. C17161146 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee TEAM SHEEPER, INC. Officer 1 By: Name: Tim Sheeper Title: CEO Officer 2 (Required for Corp. or LLC) By: Name: Carole Hayworth Title: CFO Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1”: PROGRAM DESCRIPTIONS EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 11 EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 12 EXHIBIT “A” SCOPE OF SERVICES CONTRACTOR agrees to provide certified swim instructors to teach private, semi-private and group swim lessons to registered participants in the Palo Alto Recreation Aquatics Program as well as to provide lifeguarding services for the City of Palo Alto (as detailed more specifically below) offered at Rinconada Pool, 777 Embarcadero Road, Palo Alto, CA 94301 and other pools in Palo Alto. CONTRACTOR also I.General Standards For CONTRACTOR 1.Provide Quality Services a)Conduct the programs in a safe manner. b)Provide one Certified Lifeguard on deck whenever program participants are in water. c)Not allow participants to be in the pool without at least one Certified Lifeguard present on the pool deck and providing supervision. d)Swim Instructors and Certified Lifeguards are: i.Knowledgeable and experienced in the subject and age group being taught based on the specific training program for lifeguards and swim instructors followed CONTRACTOR. ii.Reliable and punctual iii.Start and end lessons on time iv.Expected to notify CONTRACTOR’s staff supervisor prior to the work shift if running late or unable to attend. CONTRACTOR is responsible for finding a replacement or providing a make-up lesson. v.Organized and prepared to teach at the start of each lesson e)Program Evaluations i.CONTRACTOR will coordinate with City staff to create a single evaluation to be distributed to participants. ii.The last week of lessons, evaluations will be distributed to participants. CONTRACTOR will communicate with participants the importance of completing the evaluation. CONTRACTOR will provide responses to CITY staff. f)Process all registrations for swim lesson program 2.Provide excellent Customer Service a)Build rapport with customers by greeting all participants and parents and create a welcoming and professional atmosphere. b)Address customer and City staff questions and concerns within 24 hours and provide follow-up if needed. 3.Maintain Quality Instructors a)Meet the City of Palo Alto background requirements for all employees b)Appear for lessons wearing appropriate attire that is clean, presentable and clearly identified as Palo Alto Swim and Sport staff. DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 13 c)Swim instructors and Certified Lifeguards will not use cell phones during work shifts i.e., while on the pool deck and in front of customers, except in an emergency. d)Provide consistency with quality standards for all instructors 4.Manage administrative tasks a)Take attendance and confirm registration numbers with City staff. b)CCONTRACTOR shall provide its own cash registers, computers, and other equipment necessary to process and record payments, registrations, schedules, and other administrative functions. 5.Maintain Proactive and Consistent Communication with CITY staff a)Communicate problems and issues immediately with the City of Palo Alto Contract Project Manager via phone, email or in person. b)Inform City staff of participant injuries and complete necessary accident reports within 24 hours. Accident forms should be available on site. c)Respond in a timely manner to emails and phone calls within 24 hours. d)Establish and maintain working relationships with City staff and customers. City staff consists but is not limited to Community Center front desk staff, Aquatics Coordinator, Supervisors, and the Contracts Administration Team. 6.Submit Invoices for payments. Invoices will include: a)CONTRACTOR address, b)date, c)invoice number, d)“bill to” information, e)registration numbers, session dates and location, and f)total amount to be paid. 7.Adhere to Department’s Aquatics Manual Policies and Procedures a)Responsible for knowing the CITY’S policies and procedures with regard to swim lessons and pool deck entry (i.e. waiting lists, cancellation, refund, satisfaction, etc.) b)Instructors are responsible for verifying that only registered participants are permitted to participate in programs. c)Ensure only swim staff use the pool office. d)Observe and enforce all pool rules. 8.Provide an annual report covering the period of September 1st through August 31st no later than October 15th of each year during the Contract Term to staff which will be presented to the CITY’S Parks & Recreation Commission for review and comment by the Commission at its October meeting. The annual report should include the following items: •Total program hours by program area •Participation statistics by program area including resident and non-resident percentages •Customer satisfaction survey results •User group feedback by program area or rental •Gross revenues and revenue shares between CONTRACTOR and the CITY DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 14 •Risk management documentation •Training certifications listed by staff members. II.Specific Programs to be Staffed and Run by CONTRACTOR 1.CONTRACTOR shall staff and run swim lessons and swim camps for various ages (including children) and skill levels. CONTRACTOR shall adhere to the following standards: a)If a lesson is missed by the CONTRACTOR, a make-up lesson is required to be provided by CONTRACTOR during a time that is convenient for the participant. CONTRACTOR is responsible for contacting participants to reschedule or make-up the lesson(s). b)At the end of each lesson the CONTRACTOR will: i.Monitor and ensure participants are picked up by an authorized adult. ii.Keep facility neat by putting away all equipment from pool deck, empty trash cans, pick up trash from pool deck, remove and replace pool covers on appropriate reels after each use. 2.Beginning August 14, 2017, CONTRACTOR shall provide lifeguarding staff to oversee all scheduled Open/Recreational and Lap Swim programs. CONTRACTOR shall provide the following services: a)Keep facility neat by putting away all equipment from pool deck, empty trash cans, pick up trash from pool deck, remove and replace pool covers on appropriate reels after each use. b)Maintain cleanliness of pools, locker rooms, lobby and office space daily including: i.Sweeping pool deck and indoor spaces ii.Mopping and cleaning locker rooms c)Take out trash at end of day and during sessions as needed i.Pick up trash from pool deck ii.Light cleaning of lobby and other indoor space d)Accept fees for service from pool users using the CONTRACTOR’s point-of-sale system. CONTRACTOR shall also accept any legacy, City-issued single-entry Rinconada Pool tickets. 3.Beginning on a date mutually acceptable between CITY and CONTRACTOR, CONTRACTOR shall provide or subcontract for Masters Swimming and Youth Swim Club programs. a)CITY authorizes CONTRACTOR to subcontract with the Palo Alto Swim Club to provide the Youth Swim Club program. b)CITY authorizes CONTRACTOR to subcontract with Rinconada Masters to provide the Masters Swimming program. c)CONTRACTOR is not authorized to provide the Masters Swimming and Swim Club programs itself without approval from the City’s Project Manager. 4.CONTRACTOR may offer pool parties in accordance with this Agreement and shall provide the following services: DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 15 a) Keep facility neat by putting away all equipment from pool deck, empty trash cans, pick up trash from pool deck, remove and replace pool covers on appropriate reels after each use. b) Maintain cleanliness of pools, locker rooms, lobby and office space daily including: i. Sweeping pool deck and indoor spaces ii. Mopping and cleaning locker rooms c) Take out trash at end of day and during sessions as needed i. Pick up trash from pool deck ii. Light cleaning of lobby and other indoor space d) Accept reservations and fees for service from pool users using the CONTRACTOR’s point-of-sale system. III. City’s Responsibilities 1. CITY shall provide clean and safe facility for scheduled lessons at Rinconada Pool and a Palo Alto Unified School District Pool to be determined by the CITY and PAUSD. a. Use of Rinconada Lap Pool and Children’s Pool will be limited to mutually agreed upon schedules 2. CITY shall provide access to a phone line and internet access at Rinconada Pool 3. CITY shall oversee program delivery which includes but is not limited to: a. Work with CONTRACTOR on private and group lessons offerings, cancellations, and customer inquiries/concerns b. Provide support to CONTRACTOR’s staff to ensure the success of the class c. Provide essential information to deliver program (rosters, attendance sheets, waiting lists, etc.) 4. CITY shall develop and maintain proactive and consistent communication and rapport with CONTRACTOR a. Respond in a timely manner to emails and phone calls b. Communicate and resolve issues and concerns immediately 5. CITY shall provide excellent customer service to CONTRACTOR staff and customers DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 16 EXHIBIT A-1 PROGRAM DESCRIPTIONS Weekly Perpetual Lessons Perpetual/weekly lessons are the optimum method for maintaining the focus of developing as a swimmer on a year-round basis. To learn a complex skill, and to master the physical movement patterns, consistent and continual practice is necessary. Perpetual lessons allow families to understand the aquatics is a year-round sport/activity and that the joys of aquatics and developing as a swimmer does not only have to be limited to the summer months. We promote keeping aquatics and swim school in the weekly family schedule much like a family would a sports team or music lessons. We also offer the opportunity to have concentrated daily lessons over the course of a week during the summer months. Levels Waterbabies: For ages 6 months to under 3 years. Parent participation class where babies are introduced to the water through songs and games. Each game that we play together as a group can be adjusted to accommodate a parent’s comfort level and the swimming ability of the child. This is a 30-minute group class with a 6:1 ratio. Water Tots: For ages 2 years old. Water Tot’s is a class without parent participation for students who are comfortable in the water are ready to learn the next set of swimming skills. The student to teacher ratio of 3:1 allows a small, safe learning environment to introduce fundamental water skills. This class focuses on building comfort, water safety, and skills such as: breathing, floating, bobs, jumps and, of course, fun. Swimming Principles: Children learn to be safe, independent swimmers and begin to learn proper head and body position that will lead to success in the strokes to come. Skills include floating independently on back and front, and breath control. Level 1: Designed to continue water safety skills as well as develop body position and kicks. Swimmers must be water safe and able to kick in streamline for 5 yards to pass. Level 2: Designed to continue water safety skills as well as develop a strong foundation for Freestyle. Swimmers learn to kick in streamline for 10 yards, rolling onto their back for a breath. Level 3: Designed to develop a strong foundation for Freestyle. Swimmers learn to kick in streamline for 10 yards with a side breath. Freestyle: Swimmers learn freestyle beginning with body position, efficient flutter kicks, freestyle arms, and side breathing. Backstroke: Swimmers continue to review and improve their freestyle while learning backstroke. They develop body position, rotation, effective kicks and backstroke arms. Breaststroke: Swimmers will begin to learn the difference between short axis and long axis strokes, with an emphasis on the importance of a proper kick and glide. Each of the four parts of breaststroke will be isolated to yield a successful breaststroke. Butterfly: Students learn the importance of a full body dolphin kick and undulation, timing of kicks with pull and recovery. Lessons Advanced: Swimmers continue to refine all four strokes as well as develop more advanced techniques, including starts, turns and finishes. Lessons Elite: The goals for swimmers in the class are to become proficient in all four competitive strokes, swim terminology, and receive coaching in and out of the water. DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 17 Swim Camp Whether just learning to swim or developing strokes, your child receives a daily, 45-minute, level-appropriate lesson from a trained Swim School instructor (ratio 4:1). A child’s swim level is assessed on the first day of camp, and campers with similar abilities are grouped together. More advanced swimmers also get a workout-style swim session in a 25-yard format to practice what they have learned. Daily hands-on lessons in small focused groups invariably lead to rapid advancement in a child’s swim skills. In addition to swim instruction, campers have daily swim-related workouts, free swim time for land and camp games, crafts, and lunch. Your child should come home healthy-tired but able to have loads of fun the entire week! Sample Daily Activities 8:45 Camper check-in 9:00 Camp games, settle in for Director address 9:30 Group A: Swim lesson, Group B: Land games for swim strength and conditioning followed by a healthy snack 10:15 Group A: Healthy snack followed by land games for swim strength and conditioning. Group B: Swim lesson plus, for more advanced swimmers, a swim work-out 11:00 Transition out of pool (sunscreen!) 11:15 Lunch from home enjoyed on the benches or picnic-style on the grass 11:45 Camper choice: land games, crafts, relax with friends 12:45 Transition to free swim 1:00 Free swim 1:50 Get ready for pick-up or transfer to extended care Is This Camp for You? For ages 5 to 12 years (on the first day of camp) For campers who HAVE COMPLETED kindergarten Camp is for kids who are comfortable in the water, enjoy social group situations, and respond well to instruction Ideal before any family vacation that includes water activities! Pre-K Camp Palo Alto Swim and Sport offers Pre-K Aquatics camp for kids age 4.5-6! For our little ones, Camp Palo Alto provides fun, instruction, and encouragement in a safe, friendly environment. Each camper receives a daily 45-minute swim lesson from a Palo Alto Swim School instructor, plus has time for land games, crafts and a light lunch. They’ll enjoy community and team fun while developing a love of water and swim skills. Your child should come home healthy-tired but not destroyed for the rest of the day! When you check out each day, stick around to enjoy Open Swim with your child. Spending time in the pool together reinforces what they’ve learned and improves their feel for the water. Open Swim starts at noon! Sample Daily Schedule 8:45 Check-in 9:00 Welcome and games 9:45 Crafts and snack 10:45 Fun stretching 11:00 Swim lesson 11:45 Dry off, get ready for lunch DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 18 12:00 Lunch time with friends and counselors 12:30 Story time 1:00 Free swim in Baby Pool or play games 1:50 Pick up or transfer to extended care For ages 4.5 to 6 years (on the first day of camp) For campers who have NOT COMPLETED kindergarten, or who need extra assistance Campers are toilet trained and can manage the toilet independently 4:1 child-to-adult ratio both during swim lessons and with counselors on land Ideal before any family vacation that includes water activities! Morning Extended Camp We are pleased to offer early Extended Camp from 8:00 to 8:45 a.m., so you can drop off your kids and be on your way! You can be sure that check-in will be fast and your child will receive great care for a happy start to the day! Afternoon Extended Camp Extended camp is just the ticket for your child to rest and re-energize, play social games, read, advance some new skills or listen to music! Tried and true, our counselors provide a safe and lively afternoon of new and varied activities, full of opportunities for the campers to mix and mingle or have some quiet time; build and create; or have fun with more sports! The kids won’t miss a beat, as they seamlessly transition to the afternoon segment of their day of excitement. Pool Parties Have a birthday party or special event at the pool! Reserve two hours of fun for your family and friends! Party includes: Swim admission for 12 kids and 4 adult chaperones (over age 18), 2 large picnic tables reserved for your group Masters Swim We welcome swimmers of all abilities, age 18 and up, who are interested in regular structured workouts. Previous experience in competitive swimming is not necessary. Masters swimmers include beginners, triathletes, former collegiate athletes, nationally ranked competitors and everything in between — all ages, shapes, and sizes. Every workout is different and you’ll learn something each and every time. Along with ongoing conditioning at workouts, the team provides stroke instruction, intra-club activities, competitions, and social events throughout the year. We focus on developing swimming skills, enhancing the enjoyment of swimming through regular workouts and professional instruction, and the promotion of lifetime fitness through swimming. Youth Swim Team Year round competitive swim team offering high quality professional coaching and technique instruction for all ages and abilities. The goal is to provide every member an opportunity to improve swimming skills and achieve success at his or her level of ability, from novice to international competitor. We are constantly growing and training young swimmers to maintain a well-rounded competitive swim team. Lap Swim Lanes are dedicated to lap swimming in the deep pool at Rinconada seven days per week year round. Two lifeguards are on duty at all times. We observe circle swimming when there are DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 19 more than two swimmers per lane. The number of lanes for Lap Swimming varies according to scheduled activities in each pool, but during the times below, you will find designated lap lanes. Look for the yellow cones on deck. If you are registered to pay for laps monthly, you can come to Recreation Swim any time. Choose to swim laps or play with your kids—your time in the pool is already paid for. Even drop-in fees are good all day for both Laps and Open/Recreation Swim. Open/Recreation Swim Lifeguards are on duty at all times during open swim. No registration required, just drop in (or use a pass) to play in the round pool and deep pool; many open swim sessions include use of the diving boards. Children 5 years and younger must have a parent/guardian (16+) in the pool, within arm’s reach at all times. Children 6 – 12 years must have a parent/guardian (16+) on the pool deck supervising them, unless they are attending a registered class or program. DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 20 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONTRACTOR shall perform the Services during the specified Aquatics Seasons. The duration of each Aquatics Season may be increased or decreased by mutual written agreement of the project managers for CONTRACTOR and CITY so long as all work is completed within the term of the Agreement. CONTRACTOR Program Aquatics Seasons Offered Weekly perpetual swim lessons Spring, Summer, and Fall Swim camps Summer Lap swim Spring, Summer, Fall, and Winter (all seasons) Open/Recreational swim Spring, Summer, Fall and Optional Winter Masters Swim Spring, Summer, Fall, and Winter (all seasons) Youth Swim Team Spring, Summer, Fall, and Winter (all seasons) Pool Parties Spring, Summer, and Fall, but only in times not in conflict with any other program. Specific dates and duration of Aquatics Seasons (and associated registration periods) will be determined by the CITY in consultation with CONTRACTOR at least 30 days in advance of the first day each registration period. DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 21 EXHIBIT “C” COMPENSATION I. Revenue Sharing CONTRACTOR will collect revenue from customers for all programs they provide under this agreement and any Rinconada Pool subcontracts they hold subject to the prices listed in this agreement. A. From March 1, 2017 through December 31, 2017, CONTRACTOR will pay 10% of gross revenues (excluding subsidy payments from the City) from all swim camps and swim lessons performed under this agreement to the CITY. From August 14, 2017 through December 31, 2017, CONTRACTOR will pay as much as 12% of all revenues collected from other programs under this contract, including lap swim, open/recreational swim, lane rental fees from Masters Swim and Youth Swim Team, and pool parties, based upon the table below. Payments to the City must occur at the end of June, the end of August and end of December, 2017. B. Beginning on January 1, 2018, CONTRACTOR will pay gross revenues of as much as 12% of all revenues collected from all programs provided on behalf of the City of Palo Alto with the CITY based upon the following table: Number of Swim Lessons Sold in a calendar year Percent of all gross revenue from all programs under this contract owed to City 11,000 or fewer 1% 12,000 2% 13,000 3% 14,000 4% 15,000 5% 16,000 6% 17,000 7% 18,000 8% 19,000 9% 20,000 10% 21,000 11% 22,000 or more 12% The percent of gross revenue is not a graduated rate (e.g. for the first 11,000 swim lessons, 1% revenue is owed, for the next thousand swim lessons, 2% is owed). The percent of gross revenue that is applicable for a given year applies to all gross revenue. For example, if 21,000 lessons are sold in a calendar year, 11% of all gross revenue would be owed to the CITY. Projections of enrollment and revenue share shall be provided to the CITY at the end of every month. Revenue share payments for 2018 shall be paid to the CITY no later than January 31, DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 22 2019. II. Temporary Subsidy for Swim Lessons for City Residents CONTRACTORSwim lessons shall be subsidized by the CITY for City Residents for lessons that occur from the start of the contract term through December 31, 2017. Beginning January 1, 2018 swim lessons will no longer be subsidized. The subsidy rates are as follows: • CITY to compensate CONTRACTOR Six Dollars ($6) per resident participant per group lesson for up to 9,000 ($54,000) individual group lessons, and • CITY to compensate CONTRACTOR Twenty Eight Dollars ($28) per resident participant per private lesson for up to 2,100 ($58,800) private lessons. In no case shall the total subsidy provided to CONTRACTOR exceed One-Hundred and Thirteen-Thousand Dollars ($113,000). CONTRACTOR shall keep accurate records of all swim lessons it submits for CITY subsidy, subject to periodic audit by CITY. III. City Residents “City of Palo Alto residents” as used in this Exhibit are only those people who can prove residence in the City of Palo Alto by showing a valid state-issued identification with an address in the City; or a utility bill from the City of Palo Alto; or in the case of students, a current identification card from a Palo Alto Unified School District school. IV. Additional Lifeguard Services In the event Additional Lifeguard Services are authorized by the CITY, the total compensation for additional services will be at a rate of $25 per hour for regular staff lifeguards. If regular staff lifeguards are not available, use of lead or head lifeguards may be provided at a rate of $40 per hour. In no case shall the total compensation for Additional Lifeguard Services exceed Thirty Thousand Dollars ($30,000.00) during the period covering March 1, 2017 through August 13, 2017. V. Rinconada Pool Tickets CONTRACTOR shall accept any legacy Rinconada Pool single-use tickets for admission to the pool without any other compensation from the CITY. CONTRACTOR is not required to accept legacy 10-pack cards for pool admission. V. Prices for Services CONTRACTOR agrees to charge no more than the following prices during the specified periods: A. Swim Lesson Prices through December 31, 2017:  Resident Group lessons: $16/lesson  Non-Resident Group Lessons: $22/lesson  Resident Private: $35/lesson  Non-Resident Private: $63/lesson  Semi-private lessons may be offered during the term of this agreement based upon mutual agreement between CONTRACTOR and the CITY. If semi-private lessons are offered, private lesson pricing may be adjusted up to reflect a reasonable price break between the three class sizes. DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 23 B. Camp Prices through December 31, 2017:  $40/ Week for Morning Extended Camp  $355/week for Camp  $165/week for Afternoon Extended Camp C. Lap Swim and Rec Swim Prices through December 31, 2017 • Resident o Adult: $6 per day o Youth (17 and under): $4 per day o Family (up to 5 immediate family members from the same household, 2 adults maximum): $15 per day o Senior (60 years+): $4 per day o Monthly pass: $45 (30% senior discount) • Non-Resident o Adult: $7 per day o Youth (17 and under): $5 per day o Family (up to 5 immediate family members from the same household, 2 adults maximum): $18 per day o Senior (60 years+): $6 per day o Monthly pass: $56 (25% senior discount) D. Pool Party Prices through December 31, 2017  $100 for 2 hours of pool use and admission for up to 12 children and 4 adults (18 and over).  $4 for each additional child and $6 for each additional adult  Maximum 20 people total per party (children plus adults) E. Pool Lane Rental Fees through December 31, 2017 (for use with subcontractorss)  $5 per lane per hour for subcontractors providing Masters Swim and/or Youth Swim Team programs. F. New price categories, discounts, memberships, and/or promotional prices may be implemented upon written mutual agreement between CONTRACTOR and the CITY. G. All maximum prices may increase annually beginning January 1, 2018 upon written mutual agreement between CONTRACTOR and the CITY. VI. Additional Services The CONTRACTOR shall provide additional services only by advanced, written authorization from the CITY. The CONTRACTOR, 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 CONTRACTOR’S proposed maximum compensation, including reimbursable expense, for such services. The additional services scope, schedule and maximum compensation DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 24 shall be negotiated and agreed to in writing by the CITY’s project manager and CONTRACTOR prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. VII. Facility Use. If the CONTRACTOR uses the City’s facility for any purpose other than a mutually agreed upon and scheduled class under this agreement, then the CONTRACTOR pays all fees and charges as specified in the City’s Municipal Fee Schedule. VIII. No 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. CONTRACTOR shall not be reimbursed for any expenses. DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 25 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONTRACTORS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 166347BA-C55D-401A-ABE1-EF269E58C234 Professional Services Rev. April 27, 2016 26 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONTRACTOR 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 CONTRACTOR SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP City of Palo Alto Page 1 Exhibit C City of Palo Alto (ID # 7552) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/9/2017 Summary Title: Aquatics Swim Leson Contract with Team Sheeper Title: Approve and Authorize the City Manager to Execute an Agreement Between the City of Palo Alto and Team Sheeper LLC, for the Learn to Swim Program for Summer 2017 at an Amount Not to Exceed $143,000 From: City Manager Lead Department: Community Services Recommendation Staff recommends that Council authorize the City Manager to approve a contract with Team Sheeper Inc. for operation of the 2017 Learn to Swim Program (swim lessons) in an amount not to exceed $143,000 (including a $30,000 contingency for supplemental services if needed) (Attachment A). Executive Summary The City of Palo Alto (City) offers a year-round Aquatics Program that includes adult lap swim, a youth competitive swim team and an adult competitive Masters Swim team. During the summer months, the City also offers a Learn-to-Swim program as well as family recreation swim. The City has experienced difficulty hiring and retaining qualified aquatics staff to meet the needs of the community, especially during summer months when more aquatics programs are offered. In Summer 2015, an emergency third-party agreement was required to avoid potential pool closures and the cancellation of swim classes due to the City’s difficulty in staffing the Aquatics Program. In December 2015, after receiving direction from the Finance Committee and subsequently the full Council, staff released a Request for Proposal (RFP) to solicit bids for aquatics management services to improve the City Aquatics Program. In our evaluation of the bids and our in-house aquatics program, we identified opportunities to not just maintain the aquatics program but to better meet community requests to expand and enhance aquatics programming for Palo Alto. The objective of the RFP and our analysis was to consider alternatives for how we might best achieve the following: City of Palo Alto Page 2 Exhibit C 1) Expand the recreational swimming season to open both pools for recreation swimming in mid-April and keep the pool open through late October. 2) Adjust and add open hours for lap swim and recreational swimming programs to better meet customer demands for pool use outside of 9 to 5 weekday hours. 3) Expand the swim lesson season to match the expanded recreational swim season and adjust swim lesson offerings to provide more evening and weekend lessons. The City received two proposals, one from the Palo Alto Family YMCA and the other from Team Sheeper Inc. Of the two proposals Team Sheeper Inc. offered a lower cost and greater diversity of programs and services while providing high quality of service. In May 2016, Council approved a limited contract with Team Sheeper Inc. to manage the Learn-to-Swim program for the summer of 2016 season (Attachment B). This contract ensured that the City was able to provide the community with high quality and reliable swim lessons during the summer months. The contract now before Council builds on the successful 2015 and 2016 Learn-to-Swim program with Team Sheeper expanding the program to offer individuals and families more swim lesson opportunities throughout the 2017 calendar year, in spring, summer and fall. These enhancements will provide residents significantly more opportunities for children to learn to swim throughout the year. Using Team Sheeper to provide an expanded swim lesson program will require an increase in swim lesson fees, which the City has historically held exceptionally low. The new fees will be comparable to neighboring cities. The City’s Fee Reduction Program will continue to be available for low income families and residents with a disability. In addition, CSD staff are investigating additional scholarship programs through the Beyond Barriers Athletic Foundation. The Community Services Department budget can absorb the cost of the contract without impacting the General Fund due to realizing cost savings by not staffing the Learn-to-Swim program and by reallocating department salary savings in FY 2017. Staff, with the community and regular users of Rinconada Pool, will continue to evaluate options to improve Palo Alto aquatics programming and management. Because there are numerous stakeholders and some heightened concerns about pool schedule changes from the status quo, staff are only recommending an expanded swim lesson program at this time, which has limited impacts to the pool schedule for current swimmers. Staff plans to conduct additional community outreach and return to Council with further analysis and aquatics recommendations in the spring of 2017 in an effort to increase access and availability to Rinconada Pool for Palo Alto residents. Background During the summer season, which runs from mid-June through mid-August, the City of Palo Alto Aquatics Program offers a variety of activities for the community including: City of Palo Alto Page 3 Exhibit C •Family recreation swim, •Adult lap swim, •Learn-to-Swim lessons, •Facility rentals for private pool parties, •Youth competitive swim team (PASA - Palo Alto Stanford Aquatics), and •Adult competitive swim team (Rinconada Masters). The City has existing contracts to provide the Rinconada Masters and Palo Alto Stanford Aquatics (PASA) programs, while City staff has historically provided staffing for the remaining programs. The majority of the aquatics programs are held at the City-owned Rinconada pool with some summer swim lessons also taking place at the JLS Middle School pool. Throughout the rest of the year (mid-September through mid-May), the only aquatics activities that are offered at Rinconada pool are adult lap swim, PASA, and the Rinconada Masters. For the past two summers (2015 and 2016), the City has struggled to hire and retain adequate pool staff to meet community demand for the Lap Swim, Learn-to-Swim and Family Recreation Swim. In 2015, CSD entered into an emergency contract with an outside vendor to mitigate its Learn-to-Swim staffing shortages. Working on a very short timeline, CSD was able to write and approve a contract with Team Sheeper Inc., a professional third party aquatics service provider who was able to mobilize quickly and provide qualified professional swim instructors and lifeguards to support the Palo Alto aquatics programs. There are several reasons the City aquatics program is experiencing difficulty hiring and retaining staff. The biggest challenge has been that the City currently only has the ability to hire part-time staff to work under 1,000 hours each per year but Rinconada has a need for employees who can work year round to staff the lap swim program. This issue leads to staffing shortages outside of the summer season. In addition, pay rates for lifeguards and swim instructors are not as competitive compared to other employment opportunities for high school and college students. The majority of the aquatics employees are students and after summer they have limited work availability. Following the 2015 summer swim season, CSD staff conducted program evaluations of the summer lessons that Team Sheeper Inc. had provided. Parents of participants were pleased with the experience and felt their children had made progress and improved their techniques over the course of the lessons. Because the 2015 Team Sheeper program was well received by the community and because of continuing staffing shortages, CSD entered into another short-term limited contract with Team Sheeper Inc. to manage the Learn-to- Swim program for the Summer 2016 season as well as to provide lifeguarding hours for short-staffed lap swim sessions as needed. City of Palo Alto Page 4 Exhibit C Provision of aquatics services for cities in the region is delivered in a number of ways. For example, the City of Menlo Park contracted out their entire aquatics program to Team Sheeper, Inc. and it now operates in a public-private partnership as Menlo Swim & Sport. The City of Morgan Hill has a unique partnership with the YMCA to run their recreation programs. As partners, the City of Morgan Hill and YMCA partner to provide high quality health and fitness, youth, teen, family, and senior programs including aquatics for residents and the surrounding community to enjoy. Currently, the City of Palo Alto provides a hybrid program where the Aquatics program is predominantly run in house with the exception of our Master’s and PASA programs which are provided by contractors. In December 2015, after receiving direction from the Finance Committee and Council, CSD issued a Request for Proposals (RFP) for the following services: 1) Learn-to-Swim lessons; 2) Youth Competitive Swim Team; 3) Adult Master Swim Team; and 4) aquatics facilities operation, including recreational swim, lap swim, and pool rentals. Firms were invited to submit a proposal for one or all of the above services and attend a pre-bid meeting. Two proposals were received one from the Palo Alto Family YMCA and the other from Team Sheeper Inc. Of the two proposals Team Sheeper Inc. offered a lower cost and greater diversity of programs and services while providing high quality of service. Staff proceeded to evaluate short and long term alternatives for future Aquatics Program delivery with Team Sheeper Inc. Team Sheeper has the experience, staffing levels, and innovative programming to not only maintain the City’s aquatics program at its current level of service, but also expand it and add additional new programs if the City so desires. In May 2016 Council approved a new short term contract with Team Sheeper Inc. to provide the 2016 Summer Learn-to-Swim program. They again performed very well providing high quality swim lessons for families. Discussion Team Sheeper Inc. is an aquatics operations and management company. Their RFP response proposed full operational and management services to the City of Palo Alto for a year-round aquatics program at Rinconada Pool. They are committed to collaborating with existing programs at Rinconada pool in the effort to support and strengthen Rinconada’s programs including Rinconada Masters, PASA, swim lessons, lap Swim and family recreation swim. Staff has discussed the Aquatics RFP responses and analysis as well as our interest in contracting with Team Sheeper Inc. to oversee aquatics programs at Rinconada Pool with the Parks and Recreation Commission at their September 27, 2016 and November 13, 2016 regular meetings. The staff reports and minutes from the September PRC meetings can be seen in Attachment C. As Council is aware we have heard from a number of resident and non-resident swimmers from the Rinconada Masters Program and Lap Swim Program who are concerned about City of Palo Alto Page 5 Exhibit C potential schedule changes from the status quo. Staff is sensitive to this concern, and is taking additional time to listen to all stakeholders. Staffs’ goal is to improve programs and services for residents, and better meet the needs and interests of residents that results in an increase in overall access to Rinconada Pool and an enhanced experience for more people. Staff have conducted several community surveys and are also engaging in in-person intercept surveys at the pool, and we will continue to bring the swimming community together in the months ahead in collaboration with the Parks and Recreation Commission in order to arrive at a balanced overall recommendation for a year-round Rinconada Pool operation. While the evaluation of Team Sheeper’s role in overseeing the City of Palo Alto’s overall aquatics program is ongoing, staff believes that we have enough information and alignment of community interest to expand the swim lesson program at this time with Team Sheeper. This change will have minimal impact on the pool schedule for Rinconada Masters, Palo Alto Stanford Aquatics and Lap Swim programs and therefore staff feels confident in making this recommendation now. In so doing, staff will be able to include the expanded swim lesson program in the 2017 Summer Camp and Aquatics Enjoy! Catalog, which will be distributed in January allowing families to have significantly more options for swim lessons beginning as early as April 2017. Swim Lesson Program Currently, Rinconada’s round children’s pool sits unused most of the spring and fall. Team Sheeper proposes opening the round children’s pool to the public for swim lessons beginning in April and ending in October of 2017. This would allow the City to more than double the number of swim lessons provided in 2016. The expanded swim lesson program provides a number of benefits to families. First and foremost is that children will have the opportunity to learn to swim in advance of summer and after summer, participate in a new summer swim camp program, and participate in weekly ongoing swim lessons throughout spring, summer and fall. Team Sheeper’s learn to swim program titled “Palo Alto Swim and Sport” will promote life-long fitness, healthy habits and safety. Team Sheeper’s staff will work with students to develop proper swim technique through focused learning and goal oriented rewards. The spring through fall lesson program will instill the habit of swimming that becomes a way of life for children as they grow through adolescence into adulthood. The scope of service for the contract before Council can be seen in Attachment A. These changes will also come with an increase in swim lesson fees for customers. The City has held prices exceptionally low in the past, which has meant that lessons are heavily subsidized and has consequently limited the number of lessons we have offered. This contract continues to offer subsidies for Palo Alto residents, but customer prices are not as low as they have been in previous years. We do not believe that continuing to hold prices as low as they have been, and strongly limiting the number of lessons, is in the best interest of City of Palo Alto Page 6 Exhibit C the majority of residents. Below are the current swim lesson fees compared to the recommended fees: Swim Lesson Program 2016 Price Proposed Price in the 2017 Enjoy! Catalog Price Increase 2016 to 2017 Per Lesson Team Sheeper's Revenue Per Lesson Proposed City Subsidy Per Lesson 2017 Resident Group Lessons $11 $16 $5 $22 $6 Non-Resident Group Lessons $12 $22 $10 $22 $0 Private Resident Lessons $24 $35 $11 $63 $28 Private Non-Resident Lessons $26 $63 $37 $63 $0 In order to mitigate price increases, this contract includes a $6 City subsidy for group lessons and a $28 subsidy for private lessons for Palo Alto residents in 2017. Despite this subsidy, prices would still increase from $11 to $16 per group lesson and $24 to $35 per private lesson. In staffs’ review of other local public and private pools we found the average price per lesson for group lessons was $13 for public pools and $35 for private pools. The City’s current pricing structure is not sustainable and should increase regardless of management changes. (Benchmark pricing is detailed in Appendix D.) The 2015 and 2016 contracts with Team Sheeper included subsidies for swim lessons of $12 for group lessons and $39 for private lessons. By reducing the City subsidy and sharing in the increased cost with residents in this upcoming contract year, we will be able to offer substantially more lessons than in the past. The Parks and Recreation Commission (PRC) and staff have made clear (on September 27 and November 16 during staff presentations on aquatics,) that group youth swim lesson pricing should not be a barrier to learning to swim. Staff believes that the recommended subsidy should maintain lesson accessibility for Palo Alto’s families. In addition, the Fee Reduction program currently available to low income youth residents will continue to be available through the Team Sheeper program. City of Palo Alto Page 7 Exhibit C Group Lessons Proposed Fee City Subsidy level Subsidy as a % of fee Expected Enrollment (~9,000)* $ 22.00 $ 1.00 5% $9,000 $ 22.00 $ 2.00 9% $18,000 $ 22.00 $ 3.00 14% $27,000 $ 22.00 $ 4.00 18% $36,000 $ 22.00 $ 5.00 23% $45,000 $ 22.00 $ 6.00 27% $54,000 $ 22.00 $ 7.00 32% $63,000 $ 22.00 $ 8.00 36% $72,000 $ 22.00 $ 9.00 41% $81,000 $ 22.00 $ 10.00 45% $90,000 $ 22.00 $ 11.00 50% $99,000 *Enrollment in group swim lessons in 2016 was 4,500 Private Lessons Proposed Fee City Subsidy level Subsidy as a % of fee Expected Enrollment (~2,100)* $ 63.00 $ 18.00 29% $37,800 $ 63.00 $ 20.00 32% $42,000 $ 63.00 $ 22.00 35% $46,200 $ 63.00 $ 24.00 38% $50,400 $ 63.00 $ 26.00 41% $54,600 $ 63.00 $ 28.00 44% $58,800 $ 63.00 $ 30.00 48% $63,000 $ 63.00 $ 32.00 51% $67,200 $ 63.00 $ 34.00 54% $71,400 $ 63.00 $ 36.00 57% $75,600 $ 63.00 $ 38.00 60% $79,800 *Enrollment in private swim lessons in 2016 was 1,300 This year, we are also recommending that the public use Team Sheeper’s registration system for swim lesson enrollment. While the Learn-to-Swim program will still be advertised in the City’s Enjoy! Catalog, families will be directed to register through Team Sheeper in person at Rinconada Pool or using their website. This change will allow swim staff to quickly adjust children’s schedules and swim levels without having to involve City staff. City of Palo Alto Page 8 Exhibit C City staff and the PRC will continue to evaluate Team Sheeper’s proposal to manage the overall aquatics program for the City of Palo Alto. As part of the evaluation staff will compare resource requirements if the City were to operate the Aquatics program in-house at a similar level of programming as Team Sheeper has proposed. Some of the analysis and community outreach has been done and can be seen in the September and November PRC staff reports in Attachment C. At this time, as the evaluation and analysis continue, staff is only recommending Team Sheeper to manage an expanded swim lesson program with minimal impacts to the current pool schedule while we continue community outreach and analysis for any additional aquatics program changes. Staff have developed a communications plan to reach all pool user groups, including lap swimmers, Masters swimmers, recreational swimmers and adults who have previously registered a child in Palo Alto’s learn to swim program. The communications plan includes: •A frequently asked questions flyer will be displayed at the pool entrance and locker rooms, posted on the aquatics web page and emailed to lap swimmers, Masters swimmers and past Learn to Swim participants. •Staff will host “coffee at the pool” events at various times to allow informal conversations to occur between staff and pool users. Staff will be available to answer questions, respond to concerns and provide accurate information on the latest status of the Aquatics program. •Individual meetings with the CSD Director or Assistant Director will occur as requested by community members or groups. •Community meetings will be scheduled to coincide with decision-making points in the process. The first community meeting will occur in January 2017. •Regular updates will be posted on the Aquatics web page and sent via email to all user groups. •Specific outreach to residents currently not in an existing aquatics program (lap, Masters, or Learn to Swim), will be achieved through the Aquatics website, Community Services Department website and focus groups. •The Parks and Recreation Commission will receive monthly updates at their regularly scheduled meetings. Updates may be informal or agendized for discussion or action. Timeline •December 12, 2016 – Agreement for calendar year 2017 expanded Learn-to-Swim contract with Team Sheeper Inc. •April 1, 2017 – Learn-to-Swim group and private lessons begin Resource Impact The contract cost to the City to utilize the professional services of Team Sheeper Inc. for the 2016 Summer Learn-to-Swim is $113,000; the proposed agreement also includes a $30,000 contingency for additional supplemental aquatics services if needed, bringing the total not to exceed amount to $143,000. The Community Services Department budget can City of Palo Alto Page 9 Exhibit C absorb the cost of the contract without impacting the General Fund due to realizing cost savings by not staffing the Learn-to-Swim program and by reallocating department salary savings in FY 2017. By contracting with Team Sheeper, the City will receive less revenue than anticipated in lesson registrations. In 2016, swim lesson revenues totaled approximately $75,000; however, this will be offset by a revenue share with Team Sheeper Inc. of approximately $36,000 in this new contract. As discussed above, the plan for longer term service delivery and resource impacts for the Aquatics Program will be continue to be evaluated during the coming months. Staff will explore the costs, opportunities and challenges of continuing to offer in-house aquatics programs versus a more comprehensive agreement with Team Sheeper Inc. to oversee the City’s aquatics program. Staff anticipates returning to Council in Spring 2017 with further aquatics recommendations. Policy Implications This proposal is aligned with Comprehensive Plan goal G1: Effective and Efficient Delivery of Community Services. Environmental Review The recommendation in this report does not constitute a project requiring review under the California Environmental Quality Act (CEQA). City of Palo Alto (ID # 8101) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Contract for Purchase of a Ford F-550 Sewer Rodder Title: Approval of a Purchase Order With National Auto Fleet Group, in the Amount of $214,782 for the Purchase of a 2017 Ford F-550 XL 4WD With a Knapheide 14' Value Master Platform With Weco Industries Equipment and Approve Budget Amendments in the Wastewater Collection Fund and Vehicle Replacement and Maintenance Fund From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager to execute a purchase order with National Auto Fleet Group in the amount of $214,782 for the purchase of a 2017 Ford F-550 XL 4WD with a Knapheide 14’ Value Master Platform with Weco Industries Equipment; and 2. Amend the Fiscal Year 2017 Budget Appropriation Ordinance for a. the Wastewater Collection Fund by: i. Increasing the transfer to the Vehicle Replacement and Maintenance Fund in the amount of $126,268; and ii. Decreasing the Rate Stabilization Reserve in the amount of $126,268; and b. the Vehicle Replacement and Maintenance Fund by: i. Increasing the transfer from the Wastewater Collection Fund by $126,268; and ii. Increasing the Scheduled Vehicle and Equipment Replacement Fiscal Year 2016 project VR-16000 in the amount of $89,782; and iii. Increasing the fund balance by $36,486. City of Palo Alto Page 2 Background The Vehicle and Equipment Use, Maintenance, and Replacement Policy section 4- 1 provides for the on-going replacement of City fleet vehicles and equipment. Replacements are scheduled using guidelines based on age, mileage accumulation and obsolescence. The policy prescribes a replacement interval for trucks with service bodies of ten years or 100,000 miles. In accordance with the policy, the Fleet Review Committee reviews all vehicles proposed for replacement and authorized this replacement during the Fiscal Year 2016 budget process. Approval was based on:  An examination of each vehicle’s current usage;  An analysis of each vehicle’s operating and replacement costs;  A comparison of the age, mileage, operating cost and performance of each vehicle with others in the class; and  An analysis of alternatives to ownership, such as mileage reimbursement; pooling/sharing; the reassignment of another underutilized vehicle, or renting. Vehicle 8790, a 1990 GMC 4000 truck with a robotic sewer rodder is well beyond it’s useful life; will be out of compliance with California Air Resources Board regulations when the approved extension expires May 1, 2017; and is no longer manufactured due to safety concerns. Discussion Staff recommends replacing the vehicle used by Utilities to clean out sewer mains with a 2017 Ford F-550 XL 4WD with a Knapheide 14’ Value Master Platform with Weco Industries Equipment. The original model has now been replaced with this current model, which includes the latest safety revisions. The replacement vehicle can be used for tasks beyond just rodding and is also capable of accessing City alleyways that the old equipment was unable to reach. Bid Process Section 2.30.360 (j) of the Palo Alto Municipal code identifies the process that allows the use of Intergovernmental Cooperative Purchasing agreements. Bids for this purchase were obtained through the National Joint Purchasing Alliance City of Palo Alto Page 3 (NJPA), which is an approved cooperative group. A Request for Quotation was sent to NJPA on September 28, 2016, and a quote was received from National Auto Fleet Group on February 6, 2017, (Attachment A). Staff recommends that council approve a purchase order with National Auto Fleet Group for one 2017 Ford F-550 XL 4WD with Knapheide 14’ Value Master Platform with Weco Industries Equipment. Resource Impact The Scheduled Vehicle and Equipment Replacement Fund Fiscal Year 2016 CIP (VR-16000) does not have sufficient funding to purchase this vehicle. Traditionally, vehicle procurements are pre-funded through annual charges to the department/fund that benefits from the vehicle. This vehicle was estimated to be replaced at a cost of $125,000 which was allocated for the replacement of this vehicle in VR-16000. The current vehicle is no longer manufactured and additional safety features and functionality, including accessing alleyways, reflects the main reasons the cost of this vehicle increased significantly to $214,782 from the original replacement estimate, an increase of $89,782. Therefore, additional funding of $89,782 to the Scheduled Vehicle and Equipment Replacement Fiscal Year 2016 CIP project (VR-16000) in the Vehicle Replacement and Maintenance Fund is recommended to be appropriated for the purchase of this vehicle. This increased expense is offset by a transfer of $126,268 from the Wastewater Collection Fund. To date, $88,514 has been collected from the Wastewater Collection Fund for this vehicle, leaving a shortfall of $126,268 to fund the full replacement cost. Policy Implications Authorization of the contract does not represent any change to the existing policy. Environmental Review This vehicle will meet the EPA 2017 Emissions standards. Attachments:  Attachment A - NJPA Quote ID#2884 Attachment A National Auto Fleet Group A Division of Chevrolet of Watsonville 490 Auto Center Drive, Watsonville, CA 95076 (855) 289-6572 • (855) BUY-NJ PA• (831) 480-8497 Fax Fl e et@N ati on a IAuto Fl e etG ro up. com 05/16/2017 Raul Juarez City of Palo Alto 3201 East Bayshore Rd. Palo Alto, CA 94303 Dear Raul Juarez, Quote ID 2884 National Auto Fleet Group is pleased to quote the following vehicle(s) for your consideration. One (1) New/Unused (2017 Ford Super Duty F-550 DRW (FSH) XL 4WD Reg Cab 193" WB 108" CA with Knapheide 14' Value-Master Platform with Weco Industries Equipment,) and delivered to your specified location, each for (1) One Unit NJPA Ford Contract Price Knapheide 14 ' Value-Master Platform Weco Industries Equipment Tax (9.00%) CA Tire Fee Freight Total -per your attached specifications: $ $ $ $ $ $ $ 40,735.74 5,002.00 148,552.48 17,486.12 10.50 2,995.00 214,781.84 This vehicle(s) is available under the National Joint Powers Alliance Bid Number 120716. Please reference this Bid Number on all Purchase Orders to National Auto Fleet Group. Payment terms are Net 30 days after receipt of vehicle. Thank you in advance for your consideration. Should you have any questions, please do not hesitate to call. esse Cooper National Fleet Manager -Office (855) 289-6572 / Fax (831) 480-8497 KNAPHEIDE SINCE 1848 The Knapheide Manufacturing Company 1848 Westphalia Strasse I PO Box 7140 Quincy, IL 62305-7140 www.knapheide.com For questions, please contact: Michael Zehnle mzehnle@knapheide.com (217) 592-5364 Customer Information: Customer: National Auto Fleet Group Customer Number: 21792 Quote Information: End Customer: Njpa Coop Contact: Nell Carroll Quote Date: 02/03/2017 Vehicle Information: Quote Expiration: 08/02/2017 Quoted Qty: 1 Year: 201 7 Ax.le: Dual Rear Wheel Engine: A 6.8-G Make: Ford CA: 108 Inches Fuel Type: Gas Model: F5H-F550-21 Wheel Base: 193 inches Transmission: Automatic Delivery Information: QUOTATION Quote Number: L0803-17 Bid Spec: PALO AL TO Quote Terms: NET 30 DAYS (Subject to Credit Approval) Cab: Regular GVWR: 19.500 2/4 WD: 4 Wheel Dnve Total Price Includes F.O.B.: Vacaville, CA 95688 Installer Location: Tracy, CA Ship Via: INSTALLER Drop Ship Code: 88WNW9 Base Quote Information: 9!Y 1 1 1 1 1 1 1 1 1 1 1 1 (CONTINUED) Item Description 14' Value-Master Platform Overall length -• • • -1 4'·3" Overall width-• ----95. 75" Platform Floor· • • --.1 25" treadplate Side rails·· --• • ·5.88" 12 Ga. HS End Rail, front-··· -5.88" 12 Ga. HS Notes/Specifications with treadplate steel floor Painted black electrodeposition gray epoxy primer. Undercoating -• • • • -Complete undercoating Platform finish paint · Oven-cured black paint Platform lights-----11 rectangular, sealed Cross sills (12"spc.)--5.44" 11 Ga. HS formed Long sills (34"spc.) --7" structural channel Platform prime paint --Complete immersion in Cushion strips -· • • -2"x3" nom. dense ylw. pin Tapered rear skirt/rear end rail combination, 12Ga. WARRANTY: Standard Knapheide Limited Warranty 40" Drop-In Bulkhead Platform Light Kit LED Mud Flaps w/Anti-Sail Class V Receiver Hitch Pintle Hook Mountng Plate Pintle Hook/2" Ball Combo 7-Way Trailer Plug Flat POI Weight Slip Deliver Completed Unit to Installer Information with punched window; painted single stage Knaphelde black brackets REESE 45156 BUYERS 10050 INCL HW 8520 Weco Industries, LLC 4971 Allison Pkwy Suite A Vacaville, CA 95688 Knapheide Truck Equipment Center (Tracy) 405 Gandy Dancer Road Tracy, CA 95377 ph:209-855-8400 fx:209-835-2128 Quote Number: L0803-17 Page: Base Items Continued The following options may be added or deleted: Opt# ~ Item Description Notes/Specifications 2 60" Underbody Toolbox 2 Rostra Backup Camera Kit 60"L ¥ 18"0 x 18"H 1 each side Painted black 250-8081 Total --~5, 002 Freight Total Sell Price $5,002 Price $1 ,111 $722 Prices Subject lo the following; Price shown reflects the latest price in U.S. Dollars. Cancellation charges will be pro-rated depending on the degree of completion or order. Cancellation charges as follows; 1. Quoted price good on orders received through expiration date. 2. Price applies to quantity quoted only • any change in quantity may result in a price change. 3. Price subject to all state, local and federal excise taxes. 4. Prices subject to change. • Design Completed • Order In Shop • Fabrication Complete • Product Complete Knapheide thanks you for the opportunity to quote. Quote Number: L0803-17 -Current Engineering Rate x Hours Needed To Complete The Design -50% Of The Quoted Price -75% Of The Quoted Price -100% Of The Quoted Price Page: 2 PALO ALTO US JETTER LABOR SELL ITEMS TO BE SUPPLIED BY NATIONAL AUTO FLEET GROUP 2017 FSSO SUPER DUTY DRW 4WD 108 CA, 19500 GVWR MUD TIRES LONG BED, ALUMINIUM 14 FOOT WITH KICK PLATE CREW CAB FOLD UP REAR SEAT LED FLASHERS IN GRILL ( REPLACES LED LIGHT BAR FRONT FACING) MOUNT ONE TOOL BOX, BOTH SIDES, AS BIG AS SPACE PERMITS, IN FRONT OF REAR WHEELS PINTLE HITCH WITH D-RINGS ITEMS TO BE SUPPLIED BY WECO 4025-600 DUAL POWER OUT REELS $75,783.48 INSTALLATION $5,000.00 INVERTER 5000 KW WITH 2 DUAL ELECTRICAL OUTLETS ( REPLACES GENERATOR) $880.00 $650.00 50 FOOT RETRACTABLE ELECTRIC CORD & REEL, MOUNTED ON TOP OF TOOL BOX $330.00 $704.00 ARROW BOARD RETRACTABLE WANCO WLP9086-LSA $1,200.00 $2,900.00 ROOF MOUNTED WIRELESS SPOTLIGHT MODEL GOLIGHT WIRELESS $440.00 $850.00 VACUUM 55 GAL 2 MOTORS, 2HP EACH, 230 CFM DP55230 $0.00 $800.00 MOUNT VACUUM 55 GALLON DRUM $330.00 $0.00 IGLOO WATER BOTTLE AND MOUNT $0.00 $200.00 LONG TOOL MOUNT (SHOVELS, BROOM) ON KICK PLATE $220.00 $400.00 STORAGE BOXES FOR EQUIPMENT CCTV(NEED SIZE) $1,500.00 $800.00 ABOVE CAB WORK .LIGHTS, LED, ALL FOUR CORNERS (4 LED) $440.00 $900.00 BACK UP CAMERA SYSTEM $550.00 $515.00 TWO CONE HOLDERS FRONT BUMPER 99DTCH $110.00 $50.00 DUAL REEL 5/8" AND 3/4" WITH 500 FEET OF HOSE $0.00 $0.00 TWO 300 GALLON VERTICALLY MOUNTED WATER TANKS $0.00 $0.00 HATZ 4 CYLINDER {TIER 4) 74 HP $0.00 $0.00 4000 PSI 25 GMP OUTPUT 5/8" HOSE $0.00 $0.00 3600 PSI 25 GPM OUTPUT 3/4" HOSE HYDRAULIC POWER REEL IN AND OUT 3/4" WARTHOG 3/4" GENERAL PURPOSE NOZZLE 5/8" CHAIN CUTIER 5/8" WARTHOG 5/8" GENERAL PURPOSE NOZZLE 15 FOOT FILL HOSE 11/2" AIR GAP FILL TUBE 10000 lbs WINCH WARN MODEL 87840 FRONT BUMPER WARN MODEL 85801 LIGHT IN REAR MIDDLE OF FLATBED TO LIGHT UP MANHOLE FREIGHT SUB-TOTALS GRAND TOTAL (RESALE NO TAX) OPTION !coMMANDER VAPOROOTER MACHINE FREIGHT SUB-TOTALS GRAND TOTAL (RESALE NO TAX) WHR-3/4-PKG 54043-00-F 52837-00-F WHR-5/8-PKG 54042-00-F FH-2.5-15 Is $0.00 $0.00 $0.00 $0.00 $0.00 $2,495.00 $0.00 $640.00 $0.00 $2,095.00 $0.00 $2,495.00 $0.00 $540.00 $0.00 $120.00 $0.00 $0.00 $550.00 $975.00 $330.00 $2,425.00 $110.00 $225.00 $0.00 $2,995.00 $11,990.00 $99,557.48 $111,547.481 4,000.00 I s 36,ooo.oo I $0.00 $0.00 $15,990.00 $ 135,557.48 $151,547.481 12/1912016 Sell. service. aro del 1ver letter In order to Finalize your Quote, please submit this purchase packet to your governing body for Purchase Order Approval. Once you issue a Purchase Order please send by: Fax: (831) 480-8497 Mail: National Auto Fleet Group 490 Auto Center Drive Watsonville, CA 95076 Email: Fleet@nationalautofleetgroup.com We will then send a W-9 if you need one Please contact our main office with any questions: 1-855-289-6572 Vehicle Configuration Options ENGINE Code Description ENGINE: 6.8L 3-VALVE SOHC EFI NA V10, -inc: CNG/Propane gaseous engine prep, hardened engine intake and valve seats, This package does not include CNG/Propane fuel tanks, lines, etc. Vehicle will be equipped withe standard factory 99Y gasoline fuel system, Additional equipment combined w/Certified calibration reflash 1s TRANSMISSION Code 44P TIRES Code TGB PRIMARY PAINT required, from an external upfitter, to convert the vehicle to a CNG/Propane fueled vehicle. See Alternative Fuel Buyers Guide: www.ford.com/altfuelbuyersguide (STD) Description TRANSMISSION: TORQSHIFT 6-SPEED AUTOMATIC (6R140), -inc: Se!ectShift (STD) Description TIRES: 225/70RX19.5G BSW MAX TRACTION, -inc: 4 traction tires on the rear and 2 traction tires on the front, Not recommended for over the road applications: could incur irregular front tire wear and/or NVH, Optional spare is 225!70Rx19.5G BSW traction htt.:s ·1/www. natiooalautofteetg, oup. com/Order R equest/SSD Pr int/2884 ?w s=true&se"' true&ssdT ype,, BooyU pfitQuote 3/7 12J19l2016 PAINT SCHEME SEAT TYPE Code AS AXLE RATIO Code X8L ADDITIONAL EQUIPMENT Code 62R 531 68M 67X l76C OPTION PACKAGE SHIP THRU CODES !Code tOescription OXFORD WHITE SEIi. service. and deliver letter !Description STANDARD PAINT Description MEDIUM EARTH GRAY, HD VINYL 40/20/40 SPLIT BENCH SEAT, -inc· center armrest, cupholder. storage and driver's side manual lumbar Description LIMITED SLIP W/4.88 AXLE RATIO Description TRANSMISSION POWER TAKE-OFF PROVISION, -inc: transmission mounted live drive and stationary mode PTO TRAILER TOW PACKAGE, -inc: aftermarket trailer brake wiring kit, Trailer Brake Controller not included, NOTE: Salespersons Source Book or Ford RV Trailer Towing Guide should be consulted for specific trailer towing or camper limits and corresponding required equipment, axle ratios and model availability GVWR: 19,500 LB PAYLOAD PLUS UPGRADE PACKAGE. -inc: upgraded frame. rear-axle and low deflection/high capacity springs, Increases max RGAWR to 14. 706. NOTE: See Order Guide Supplemental Reference for further details on GVWR EXTRA HEAVY-SERVICE SUSPENSION PACKAGE. -inc: pre-selected extra heavy- service front springs (see Order Guide Supplemental Reference for springs/FGAWR of specific vehicle configurations). Recommended only on vehicles which will permanently utilize aftermarket equipment such as heavy-duty winches, brush guards or other apparatus which loads the front axle to the specified Gross Axle Weight Rating (GAWR), NOTE 1: May result in a deterioration of ride quality, NOTE 2: Vehicle ride height will increase withe addition of this package EXTERIOR BACKUP ALARM (PRE-INSTALLED), -inc: Custom accessory 'Description ORDER CODE 660A !Description hltps:i/www.nabonalautofleelgroup.com/OrderRequestlSSDPr1nt/2884?ws=true&se=true&ssdType=BodyUpfltQuote 4l7 12/19/2016 Sell. service. Md deliver letter 2017 Fleet/Non-Retail Ford Super Duty F-550 DRW XL 4WD Reg Cab 193" WB 108" CA WINDOW STICKER ! 2017 Ford Super Duty F-550 DRW XL 4WD Reg Cab 193" WB 108" CA I CODE FSH 99Y 44P TGB 21 AS X8L 62R 531 68M 67X 76C 660A MODEL 2017 Ford Super Duty F-550 DRW XL 4WD Reg Cab 193" WB 108" CA OPTIONS ENGINE: 6.8L 3-VALVE SOHC EFI NA V10, -inc: CNG!Propane gaseous engine prep, hardened engine intake and valve seats, This package does not include CNG/Propane fuel tanks, lines, etc. Vehicle will be equipped withe standard factory gasoline fuel system, Additional equipment combined w/Cerlified calibration reflash is required, from an external upfitter, to convert the vehicle to a CNG/Propane fueled vehicle, See Alternative Fuel Buyers Guide: www.ford.com/al!fuelbuyersguide (STD) TRANSMISSION: TORQSHIFT 6-SPEED AUTOMATIC (6R140), -inc: SelectShift (STD) TIRES: 225/70RX19.5G SSW MAX TRACTION, -inc: 4 traction hres on the rear and 2 traction tires on the front, Not recommended for over the road applications; could incur irregular front tire wear and/or NVH, Optional spare is 225/70Rx19.5G SSW traction OXFORD WHITE STANDARD PAINT MEDIUM EARTH GRAY, HO VINYL 40/20/40 SPLIT BENCH SEAT. -inc: center armrest, cupholder, storage and driver's side manual lumbar LIMITED SLIP W/4.88 AXLE RATIO TRANSMISSION POWER TAKE-OFF PROVISION. -inc: transmission mounted live drive and stationary mode PTO TRAILER TOW PACKAGE, -inc: afterrnarket trailer brake wiring kit, Trailer Brake Controller not included, NOTE: Salespersons Source Book or Ford RV Trailer Towing Guide should be consulted for specific trailer towing or camper limits and corresponding required equipment. axle ratios and model availability GVWR: 19,500 LB PAYLOAD PLUS UPGRADE PACKAGE, -inc: upgraded frame, rear-aide and low deflection/high capacity springs, Increases max RGAWR to 14, 706, NOTE: See Order Guide Supplemental Reference for further details on GVWR EXTRA HEAVY-SERVICE SUSPENSION PACKAGE, -inc: pre-selected extra heavy-service front springs (see Order Guide Supplemental Reference for springs/FGAWR of specific vehicle conf,guratlons), Recommended only on vehicles Which will permanently utilize aftermarket equipment such as heavy-duty winches, brush guards or other apparatus which loads the front axle to the specified Gross Axle Weight Rating (GAWR), NOTE 1: May result in a deterioration of ride quality, NOTE 2: Vehicle nde height will increase withe addition of this package EXTERIOR BACKUP ALARM (PRE-INSTALLED). -inc; Custom accessory ORDER CODE 660A SUBTOTAL Advert/ AdJustments Manufacturer Destination Charge TOTAL PRICE Est City: NIA MPG Est Highway; NIA MPG Est Highway Cruising Range: NIA mt MSRP $41 ,915.00 $0.00 $0.00 $215.00 $0.00 $0.00 $0.00 $360.00 $280.00 $45.00 $1 ,155.00 $1 25.00 $140.00 $0.00 $44,235.00 $0.00 $1 ,195.00 $45,430.00 Any performance-related calculations are offered solely as guidelines. Actual unit performance will depend on your operating conditions. httpsJ/www.na~onalautofleetgroup.com/OrderRequest/SSDPrint/2884?ws=true&se-true&ssdType=BodyUplitQuote ----·------------- 517 12/19/2016 Standard Equipment MECHANICAL Sell, service, and deliver letter Engine: 6.8L 3-Valve SOHC EFI NA V10 -inc: CNG/Propane gaseous engine prep, hardened engine intake and valve seats, This package does not include CNG/Propane fuel tanks. lines, etc, Vehicle will be equipped withe standard factory gasoline fuel system. Additional equipment combined w/Certified calibration reflash is required. from an external upfitter. to convert the vehicle to a CNG/Propane fueled vehicle, See Alternative Fuel Buyers Guide: www.ford.com/altfuelbuyersgulde Transmission: TorqShift 6-Speed Automatic (6R140) -inc: SelectShift 4.88 Axle Ratio GVWR: 18,000 lbs Payload Package 50-State Emissions System Transmission w/Oil Cooler Manual Transfer Case Part-Time Four-Wheel Drive 78-Amp/Hr 750CCA Maintenance-Free Battery w/Run Down Protection HD 200 Amp Alternator Towing w/Harness and Trailer Sway Control 10810# Maximum Payload HD Shock Absorbers Front And Rear Anti-Roll Bars Firm Suspension Hydraulic Power-Assist Steering 40 Gal. Fuel Tank Single Stainless Steel Exhaust Dual Rear Wheels Manual Locking Hubs Front Suspension w/Coil Springs Leaf Rear Suspension w/Leaf Springs 4-Wheel Disc Brakes w/4-Wheel ABS, Front And Rear Vented Discs Upfitter Switches EXTERIOR Wheels: 19.5" Argent Painted Steel -inc: manual locking hubs Tires: 225170Rx19.5G BSW AS Clearcoat Paint Black Front Bumper w/Black Rub Strip/Fascia Accent and 2 Tow Hooks Black Fender Flares Black Side Windows Trim and Black Front Windshield Trim Black Door Handles Black Manual Side Mirrors w/Manual Folding Manual Extendable Trailer Style Mirrors Fixed Rear Window Light Tinted Glass Variable Intermittent Wipers Aluminum Panels Front Splash Guards Black Grille https./Jwww.nationaiautotleetgroup.com/OrderReqoest/SSOPrint/2884?ws=true&se:lrue&ssdType=BodyU~IQuote 6/7 -----------------------------------------·------ 12/19/2016 Sell, service. and deltv81' letter Front License Plate Bracket Fully Automatic Aero-Composite Halogen Daytime Running lights Preference Setting Headlamps w/Delay-Off Cab Clearance Lights ENTERTAINMENT !Radio: AM/FM Stereo -inc: 4 speakers jFixed Antenna j 1 LCD Monitor In The Front INTERIOR 4-Way Driver Seat -inc: Manual Recline and Fore/Aft Movement 4-Way Passenger Seat -inc: Manual Recline and Fore/Aft Movement Manual Tilt/Telescoping Steering Column Gauges -inc: Speedometer, Odometer, Oil Pressure, Engine Coolant Temp, Tachometer, Transmission Fluid Temp, Engine Hour Meter, Trip Odometer and Trip Computer Manual Air Conditioning Illuminated Locking Glove Box Interior Trim -inc: Chrome Interior Accents Full Cloth Headliner Urethane Gear Shift Knob HD Vinyl 40/20/40 Split Bench Seat -inc: center armrest, cupholder. storage and driver's side manual lumbar Day-Night Rearview Mirror Passenger Visor Vanity Mirror 2 12V DC Power Outlets Front Map Lights Fade-To-Off Interior Lighting Full Vinyl/Rubber Floor Covering Underhood Lights Instrument Panel Bin and Covered Dashboard Storage Manual 1st Row Windows Systems Monitor Tnp Computer Outside Temp Gauge Analog Display Manual Adjustable Front Head Restraints Air Filtration SAFETY Driveline Traction Control Side Impact Beams Dual Stage Driver And Passenger Seat-Mounted Side Airbags Dual Stage Driver And Passenger Front Airbags w/Passenger Off Switch Safety Canopy System Curtain 1st Row Airbags Outboard Front Lap And Shoulder Safety Belts -inc: Height Adjusters https:/lwww.nat1onalau1olleetgroup.com/Orde<RequestiSSOPrinl/2884?ws=tru6&se=true&ssdType= BodyUpfi!QucAe 7(1 ----.. ------------------- City of Palo Alto (ID # 8065) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Contract for Caltrain Corridor Video Management System Title: Approval of a Contract With G4S Secure Integration in the Amount of $1,413,734 to Provide Design and Construction of a Video Management System Along the Caltrain Corridor, Capital Improvement Program Project PE- 18001, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed $136,246 in Total Value and a System Maintenance Agreement for a 5-Year Term in an Amount Not-to-Exceed $225,000 Annually, Subject to CPI Increases and Appropriation of Funds Through the Annual Budget Process From: City Manager Lead Department: Community Services Recommended Motion Staff recommends that Council: 1. Approve and authorize the City Manager or his designee, subject to Council approval of the FY 2018 capital budget, to execute the attached contract with G4S Secure Integration LLC (Attachment A) in an amount not-to- exceed $1,413,754 for design and construction of the Caltrain Corridor Video Management System Capital Improvement Program project, PE- 18001; 2. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with G4S Secure Integration LLC for related additional, but unforeseen work that may develop during the project, the total value of which shall not exceed $136,246; and 3. Authorize the City Manager or his designee to negotiate and execute a future general services contract with G4S for a term of five years in an amount not-to-exceed $225,000 annually, subject to annual increases based on CPI and appropriation of funds through the annual budget process, for maintenance and monitoring of the camera system upon its City of Palo Alto Page 2 completion. Executive Summary Since the first teen suicide cluster in the city that occurred between May 2009 and January 2010, the City of Palo Alto has become increasingly involved in youth suicide prevention and youth wellbeing. The City is engaged on three fronts: a) providing youth programs and services that support the health and wellness of Palo Alto's youth; b) creation of Project Safety Net, a broad based community collaborative; and c) programs to restrict access to the Caltrain rail line and (d) assembly of a Lethal Mean Restriction Advisory Workgroup, tasked with independently reviewing suicide prevention best practices in an advisory capacity. This report focuses on the programs to restrict access to the Caltrain rail line as the City is at an important decision point regarding the sustainability and effectiveness of track guards compared to a comprehensive investment in camera intrusion detection. The report explains in chronological order what the City has done to date and the respective costs to restrict access to the rail line. These efforts include fencing, brush removal, track guards and cameras. Staff recommends that future investment focus on fencing and cameras and to draw down over time of the track guard program for a more effective and fiscally sustainable plan in FY 2018 and beyond. This report recommends approval of a design-build contract to install a video monitoring system, and authorization of a future contract for maintenance and offsite monitoring of the video system upon completion of the construction work. Background Between May 2009 and February 2010, the Palo Alto community experienced the first of two teen suicide clusters on the rail corridor involving Caltrain. Despite unprecedented suicide prevention efforts by the community and the City, an additional cluster of youth suicides occurred again in 2015 also involving Caltrain. This prompted a request for an Epi-Aid Investigation in 2016 conducted by the CDC, who deemed the suicides as a public health emergency with the Santa Clara County, which includes those occurring in Palo Alto. The community response to the tragedy of teen suicide has been extensive and ongoing. The City’s role has been multilayered on this important issue, and has included the formation of Project Safety Net (PSN), a community collaborative made up of the City of Palo Alto, the Palo Alto Unified School District (PAUSD), City of Palo Alto Page 3 parents, students, community leaders, health care professionals, faith communities and many youth serving non-profit agencies. The Project Safety Net community collaborative has defined goals and objectives that allow all segments of the community to be involved and make a positive difference for youth wellbeing in Palo Alto. Among the suicide prevention best practices and strategies learned through PSN and the Advisory Workgroup is the importance of reducing access to lethal means for suicide. Lethal means restriction is a universal prevention strategy, which limits access to lethal means for making a suicide attempt to prevent its occurrence. For our community, this has meant reducing access to the Caltrain right-of-way. Although the City does not own or control the trains that run through Palo Alto, the City has taken substantial steps and assumed a majority of the cost to-date to reduce access to the rail line. Since 2009, the City has taken the lead in implementing measures to restrict access to the rail line. This has included funding private security guards at crossings, installing lighting and signage, brush removal along the right of way, new fencing on the east side with enhanced climb resistant design, and most recently, piloting the test of an intrusion detection system (IDS) using cameras and thermal detection sensors. These efforts have been comprehensive and expensive, yet their effectiveness is difficult to evaluate. Details of these efforts are outlined below. Track Watch After the first two teen suicides on the rail line, a dedicated group of community volunteers began to come and stand watch at key rail crossings. This effort came to be known as Track Watch. The City initially supported the Track Watch volunteers by providing 1) training on procedures and safety (in cooperation with Caltrain and San Mateo County Sheriff Transit Bureau) and 2) equipment such as reflective safety vests. Due to safety concerns and the inability to sustain volunteers, beginning in November 2009, the Palo Alto Police Department retained a private security firm to be on site seven days a week. The mission of such private staff was to “observe and report” any unsafe conditions they observed. It is important to understand that such private staff are “monitors” more than “guards” – meaning they are not authorized to physically intervene with a person on the tracks, etc. Their mission is to notify 9-1-1 Communications so that law enforcement can respond and take any needed actions and so that Caltrain can slow or stop trains. In 2010, the City accepted donations to offset the costs for the contracted security efforts with total donations reaching $75,000 City of Palo Alto Page 4 which fully funded the cost of security personnel present from November 2009 through June 2010. Donations to support contracted security monitors ceased thereafter and the City has assumed the full costs from that time through to present day. From November 2009 to October 2014, monitors were stationed at the Charleston and Meadow crossings for approximately 7 hour shifts in the evening. This evening-only level of service at two locations resulted in a cost for rail security services of approximately $5,000 per month. To address additional suicide incidents, in October 2014, the City increased its rail security services to include the Churchill crossing and, in November 2014, the City increased its rail security services to include the California Avenue Station. In response to a teen suicide at the Alma crossing in April 2016, security services were added at this fifth location. This resulted in the City of Palo Alto having contract security monitors at a total of five locations. Additionally, the City increased the original scope by hiring rail security monitors to be present 24- hours per day to help further mitigate the risk of incidents involving both Caltrain and freight trains. The City currently budgets $1.7 million annually to fund the services described above. Physical Barriers Typically, fencing improvements would not be the responsibility of a city, but rather of the rail operator who is responsible for the operations of the trains and rail corridor. The most effective physical barrier along any rail corridor would be grade separation, where pedestrian access to the tracks is not possible. While this has been identified as an important strategy in Palo Alto for a variety of reasons, the cost and long term horizon puts it far into the future. The City has been working with Caltrain on several elements to enhance the physical barriers to the rail corridor. These have primarily been fencing enhancements and vegetation removal along the east side of the four mile corridor through Palo Alto. In summer 2015, the City paid for the removal of a large amount of brush and vegetation in preparation for new fencing, but also worked to ensure that as much of the vegetation screen as possible was maintained. The City conducted extensive outreach to the residents living along Alma, developed a door hanger and flyer and went door to door to explain the City of Palo Alto Page 5 vegetation removal and fence installation. The City also held a community open house in 2015 to provide additional information and to answer questions about the fencing and vegetation removal. At the City’s request, Caltrain installed 8-foot tall welded wire fences between the Oregon Expressway and the San Francisquito Creek on the east side of the corridor at a cost of $420,000 that was paid for by Caltrain. The City upgraded the fencing by asking Caltrain to install 18-inch tall curved winglets on top of the fencing on the east side to make it more difficult to climb. The winglets cost $108,000, and this was paid for by the City. The City also paid for the needed vegetation removal to speed up the timeline for fencing installation at cost of $168,000 (Staff Report ID#6043). The City of Palo Alto Utilities also increased the wattage of pre-existing street lighting in the area and installed new light fixtures to further illuminate the area during the evening. The cumulative cost incurred to date by the City for physical barriers is $276,000. Intrusion Detection System (IDS) & Cameras On June 27, 2016, Council approved the purchase of the experimental “Intrusion Detection System” (IDS) installed at the Meadow crossing (Staff Report ID#6946). The pilot system uses a combination of visible, thermal infrared cameras, and other technology that can detect objects in the intersection and roughly 1,000 feet north and south along the rail right of way. The IDS is monitored by a private firm at a remote location. The IDS operators have the same core mission as the human monitors at the tracks: observe any unsafe condition and report to the Palo Alto 9-1-1 Communications Center, so that law enforcement can respond and so that Caltrain can slow or stop trains. The IDS technology utilizes artificial intelligence and other software that is able to 1) assist the human IDS operators by directing their attention to the location (screen/view) of a potential hazard and 2) distinguish humans from animals and other objects down the corridor, along the right-of-way and at intersections. Evaluation of the IDS system has shown the technology to be superior to human monitors physically on site along the tracks. Part of this is due to the human City of Palo Alto Page 6 factors and limits of eyesight and other sensory constraints. For example, the period of highest concern for youth suicide is during darkness, where human monitors at the tracks can of course see very little. The long-distance cameras and sensors of the IDS combined with the automatic detection algorithms provide not only a significantly longer viewing distance but result in much lower fatigue and stress on the monitor. During the evaluation period of the IDS, the system was able to discern unsafe conditions that were missed by human monitors on site at the tracks in numerous instances. While it may or may not be true that a “human presence” at the tracks could provide a deterrent to someone contemplating suicide, it is absolutely clear that the IDS provides a more effective means of notifying law enforcement and Caltrain, especially in darkness. The ability of a human to maintain focus and concentration in the comfort of a monitoring center compared to the fatigue and stress of standing in the elements in the dark of night is one reason why rail systems utilize IDS or related camera installations. Discussion Given the success of the IDS pilot program and the unsustainable costs of Track Guards, staff released a Request for Proposals (RFP No. 166714) for Design/Build Services on January 4, 2017, and two proposals were submitted. An evaluation committee comprised of Public Works, Office of Emergency Services and Utilities Department staff reviewed each firm’s submittal in response to the criteria identified in the RFP. On March 16, 2017, both firms made presentations to the evaluation committee. G4S Secure Integration LLC (G4S) was unanimously selected as the top candidate. Staff recommends awarding the contract to G4S based on project team experience, proposed work plan and previous work on transit facilities. G4S Scope of Services The contract with G4S includes design and installation of integrated video systems at four key Caltrain crossing locations (Palo Alto Avenue, Churchill Avenue, Meadow Drive, and Charleston Road). The design-build delivery method allows the City to rely on the expertise of the designer/contractor to determine the best approach and option to provide a cost-efficient and reliable video monitoring City of Palo Alto Page 7 system. The scope includes preliminary design submittals, construction documents, permitting through the Utilities Department for electrical and fiber connections, and purchase and installation of all supplies, materials and equipment to provide a turn-key system. Close coordination with the Utilities Department will be required. While the City anticipates all equipment will be installed in the City’s right-of-way, installation may also include compliance with PCJPB/Caltrain safety requirements. Additionally, staff intends to enter into maintenance and monitoring contract with G4S at a later time after completion of construction. Summary of Solicitation Process Proposed Length of Project 6 months Number of Consultants Contacted 166 Number of Builder Exchanges 6 Number of websites 1 (PlanetBids) Number of days to respond 55 days Number of Proposals received 2 Responding Companies Tyco Integrated Security, G4S Secure Integration LLC Proposed Fee Range $1,388,414 to $1,389,682 The cost of installing cameras at all four Palo Alto crossings is $1,550,000 in one time capital costs (including the change order authorization amount of $136,246). The ongoing annual cost for remote monitoring, maintenance, fiber subscription and power is estimated to be $325,000. The human Track Watch program costs $1,700,000 annually at the current level of service. As outlined in the Police Department’s section of the FY 2018 Proposed Operating Budget, City staff recommends decreasing funding for the Track Watch program after the IDS system is installed. The Project Safety Net Community Collaborative initiated a “Means Restriction Advisory Committee” to advise the City and Caltrain on suicide prevention best practices, including a transition to the adoption of new technology and appropriate conditions to any changes regarding the Track Monitoring program to occur safely and responsibly. The Means Restriction Advisory Committee is comprised of the following national experts on suicide education, prevention and intervention based both locally and out-of-state: City of Palo Alto Page 8  Rebecca Bernert, PhD (Co-chair)-- Assistant Professor and Director, Suicide Prevention Research Laboratory, Stanford University School of Medicine, Department of Psychiatry and Behavioral Sciences  Shashank V. Joshi, MD (Co-chair) – Associate Professor and Director, School Mental Health Services, Lucile Packard Children’s Hospital, Stanford University School of Medicine, Department of Psychiatry and Behavioral Sciences, & HEARD Alliance  Lauren Barley - Parent Advocate, Business Researcher and Strategist  Paul Muller, Acting President and Board Member, The Bridge Rail Foundation  Mary Ojakian, Board Member, SF Bay Area Chapter, American Foundation for Suicide Prevention  Patricia Lau, MPA - Webster House Enrichment Program  Kenneth Dueker, JD – Director of Emergency Services, City of Palo Alto  Morton Silverman, MD-Senior Advisor, Suicide Prevention Resource Center & Jed Foundation  Patrick Sherry, PhD – Research Professor, University of Denver; Author of Mineta Transportation Institute Report The Means Restriction Advisory Committee and the international literature in suicidology identify four types of best practices for prevention at suicide hotspots. These include (a) restricting access to lethal means; (b) encouraging help-seeking behavior by placing signs and telephones at hotspot locations; (c) increasing the likelihood of intervention by a third party through surveillance and staff training; and (d) encouraging responsible media reporting of suicide through guidelines for journalists. There is strong evidence that reducing access to means (e.g., by way of physical deterrents, such as installation of suicide barriers at bridge sites) prevents death by suicide, with some evidence of positive improvement on overall suicide rates. Importantly, evidence does not support suicides thereby occurring at other locations. The evidence is weaker though promising for other approaches. The effectiveness of human track monitors as a means of deterrence is not clearly supported by empirical evidence as a first-line prevention strategy. We can say with certainty that Track Guard services are not the panacea to this complex City of Palo Alto Page 9 and challenging issue of suicide prevention. Investment in the health and wellbeing of Palo Alto’s youth and teens must be multi-faceted and, well beyond track security services, inclusive of community, school, parent and student efforts across the Palo Alto community, as seen in the work of Project Safety Net. It is also important to appreciate that track security services with human monitors are subject to human limitations. There are inherent challenges with human monitors who can be distracted, tired, absent, need breaks and can see very little in the dark of night. Staff believes an intrusion detection camera system is a more effective alternative to human monitors as a long-term strategy, particularly in combination with other evidence-based approaches within suicide prevention that utilize emerging technologies and that promise to aid real-time risk surveillance and emergency triage. West-Side Fencing The City has surveyed the west side of the rail corridor to assess how to close gaps where there is inadequate or no fencing. This will be more difficult due to the proximity to residential backyards. Caltrain has agreed to amend their contract to install fencing along the west-side portion of their right-of-way. Staff will walk the corridor with Caltrain staff and identify areas along the west-side that need new fencing installed. Once the locations have been identified, an agreement will be brought to Council for approval to pay for the fencing. Staff has asked Caltrain for a timeline estimate of west side fence installation, but no dates have been provided for this work to occur. The City’s initial cost estimate is approximately $700,000. Timeline/Next Steps Once the contract is approved, the Notice to Proceed will be issued. Staff anticipates the design/build process to take approximately six months. Resource Impact Funding for this contract is available in CIP project PE-18001, CalTrain Corridor Video Management System Installation, contingent on Council adoption of the FY 2018 Capital Budget on June 27, 2017. Staff is evaluating whether a reimbursment from the Fiber Optics Fund is possible to fund this capital investment, and fiber connection fee costs have not been finalized. Additional appropriation changes to PE-18001 may be required and staff will return to Council with recommendations related to the Fiber Optics Fund and west-side fencing costs. City of Palo Alto Page 10 Policy Implications This action aligns with the City’s ongoing efforts of safety and security for Palo Alto residents. Environmental Review This project is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301 Class 1 of the CEQA Guidelines as repair, maintenance and/or minor alteration of the existing facilities and no further environmental review is necessary. Attachments:  A - G4S Design Build Contract     Design‐Build Contract  1 2016      CONTRACT                      DESIGN‐BUILD CONTRACT    Contract No. C17166714        City of Palo Alto    Caltrain Corridor Video Management System   Design‐Build Project     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  2 2016      CONTRACT  DESIGN‐BUILD CONTRACT  TABLE OF CONTENTS      SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS ................................................................... 4  1.1 Recitals .............................................................................................................................................. 4  1.2 Definitions ......................................................................................................................................... 4  SECTION 2 THE PROJECT ............................................................................................................................. 4  SECTION 3 THE CONTRACT DOCUMENTS ................................................................................................... 5  3.1 List of Documents ............................................................................................................................. 5  3.2 Order of Precedence ......................................................................................................................... 5  SECTION 4 DBE’S DUTY ............................................................................................................................... 6  4.1 Relationship of Trust and Confidence ............................................................................................... 6  4.2 Scope of Services .............................................................................................................................. 6  4.3 Design Services ................................................................................................................................. 6  4.4 Construction Services ........................................................................................................................ 7  4.5 DBE’s Subcontractors ........................................................................................................................ 8  4.6 Coordination of Work ....................................................................................................................... 9  4.7 DBE’s Representative ........................................................................................................................ 9  SECTION 5  PROJECT TEAM .......................................................................................................................... 9  SECTION 6 TIME OF COMPLETION ............................................................................................................ 10  6.1 Time is of Essence ........................................................................................................................... 10  6.2 Commencement of Work ................................................................................................................ 10  6.3 Contract Time .................................................................................................................................. 10  6.4 Liquidated Damages ........................................................................................................................ 10  6.5 Adjustments to Contract Time ........................................................................................................ 10  SECTION 7 COMPENSATION TO DBE ........................................................................................................ 11  7.1 Contract Sum .................................................................................................................................. 11  7.2 Full Compensation .......................................................................................................................... 11  SECTION 8 STANDARD OF CARE ............................................................................................................... 11  SECTION 9 INDEMNIFICATION .................................................................................................................. 11  9.1 Hold Harmless ................................................................................................................................. 11  9.2 Survival ............................................................................................................................................ 12  SECTION 10 NONDISCRIMINATION ............................................................................................................ 12  SECTION 11 INSURANCE AND BONDS ........................................................................................................ 12  SECTION 12 PROHIBITION AGAINST TRANSFERS ........................................................................................ 12  SECTION 13 NOTICES .................................................................................................................................. 13  13.1 Method of Notice ............................................................................................................................ 13  13.2 Notice Recipients ............................................................................................................................ 13  13.3 Change of Address .......................................................................................................................... 14  SECTION 14 DEFAULT .................................................................................................................................. 14  14.1 Notice of Default ............................................................................................................................. 14  14.2 Opportunity to Cure Default ........................................................................................................... 14     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  3 2016      CONTRACT  SECTION 15 CITY’S RIGHTS AND REMEDIES ................................................................................................ 14  15.1 Remedies Upon Default .................................................................................................................. 14  15.2 Delays by Sureties ........................................................................................................................... 15  15.3 Damages to City .............................................................................................................................. 15  15.4 Suspension by City .......................................................................................................................... 16  15.5 Termination Without Cause ............................................................................................................ 16  15.6 DBE’s Duties Upon Termination ...................................................................................................... 17  SECTION 16 DBE’S RIGHTS AND REMEDIES ................................................................................................ 17  16.1 DBE’S Remedies .............................................................................................................................. 17  16.2 Damages to DBE .............................................................................................................................. 18  SECTION 17 ACCOUNTING RECORDS .......................................................................................................... 18  17.1 Financial Management and City Access .......................................................................................... 18  17.2 Compliance with City Requests ....................................................................................................... 18  SECTION 18 INDEPENDENT PARTIES ........................................................................................................... 18  SECTION 19 NUISANCE ............................................................................................................................... 18  SECTION 20 PERMITS AND LICENSES .......................................................................................................... 18  SECTION 21 WAIVER ................................................................................................................................... 19  SECTION 22 GOVERNING LAW AND VENUE ............................................................................................... 19  SECTION 23 COMPLETE AGREEMENT ......................................................................................................... 19  SECTION 24 SURVIVAL OF CONTRACT ........................................................................................................ 19  SECTION 25 PREVAILING WAGES ................................................................................................................ 19  SECTION 26 NON APPROPRIATION ............................................................................................................. 20  SECTION 27 AUTHORITY ............................................................................................................................. 20  SECTION 28 COUNTERPARTS ...................................................................................................................... 20  SECTION 29 SEVERABILITY .......................................................................................................................... 20  SECTION 30 STATUTORY AND REGULATORY REFERENCES ......................................................................... 20  SECTION 31 WORKERS’ COMPENSATION CERTIFICATION ......................................................................... 20           DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  4 2016      CONTRACT  DESIGN‐BUILD CONTRACT    THIS DESIGN‐BUILD CONTRACT (“Contract” or “Agreement”) entered into on June 19, 2017 (“Execution Date”) by and  between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and G4S Secure Integration  LLC, a Design‐Build Entity ("DBE"), is made with reference to the following:    R E C I T A L S:    A. City is a municipal corporation duly organized and validly existing under the laws of the State of California  with the power to carry on its business as it is now being conducted under the statutes of the State of California and  the Charter of City.    B. DBE is a General Contractor and Limited Liability Corporation duly organized and in good standing in the State  of Delaware, DBE’s License Number 975846. DBE represents that it is duly licensed by the State of California and has  the background, knowledge, experience and expertise to perform the obligations set forth in this Design‐Build  Contract.    C. On January 4, 2017, City issued a Request for Proposals (“RFP”) to DBEs for the Video Management System  Design‐Build Project (“Project”).  In response to the RFP, DBE submitted a Proposal.    D. City and DBE desire to enter into this Design‐Build Contract to provide the Design‐Build Services for the  Project, and other such services as identified in the Contract Documents for the Project upon the following terms and  conditions.    NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for  other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually  agreed by and between the undersigned parties as follows:    SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS.    1.1 Recitals.    All of the recitals are incorporated herein by reference.    1.2 Definitions.    Capitalized terms shall have the meanings set forth in the RFP, this Design‐Build Contract and/or in the  General Conditions.  If there is a conflict between the definitions in the RFP, this Design‐Build Contract or in  the General Conditions, the definitions in this Design‐Build Contract shall prevail.  SECTION 2 THE PROJECT.    The Project is the Video Management System Design‐Build Project, located at various locations in, Palo Alto, CA.  94301 as identified in the Contract Documents.       DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  5 2016      CONTRACT  SECTION 3 THE CONTRACT DOCUMENTS.    3.1  List of Documents.  The Contract Documents (sometimes collectively referred to as “Agreement” or “Contract”) consist of the following  documents which are hereby incorporated by reference.       1) Change Orders    2) Field Orders    3) Design‐Build Contract    4) Special Provisions, if any    5) General Conditions    6) Approved Design Documents (to be developed by DBE)    7) Bridging Documents (as defined in RFP Attachment B – Scope of Services) as amended by the following  exhibit(s) which are attached hereto and incorporated herein:    a) Exhibit A, “Scope of Services”, dated June 1, 2017    8) Addenda or amendments to RFP       9) City’s Request for Proposals and Attachments thereto    10) Payment and Performance Bonds    11) DBE's Proposal    12) Reports listed in the Contract Documents    13) Public Works Department’s Standard Drawings and Specifications (most current version at time of  Proposal)    14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time  of Proposal)    15) City of Palo Alto Traffic Control Requirements    16) City of Palo Alto Truck Route Map and Regulations      3.2  Order of Precedence.    For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this  Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section.  If a  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  6 2016      CONTRACT  claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to  decide which document or provision shall govern as may be in the best interests of the City.  SECTION 4 DBE’S DUTY.    4.1 Relationship of Trust and Confidence.  DBE accepts the relationship of trust and confidence established  between it and City by this Contract.  DBE agrees to furnish the Design‐Build Services necessary for the design and  completion of the Project and agrees to furnish efficient business administration and superintendence, and to use its  best efforts to complete the Project in the best and soundest way and in the most efficient and economical manner  consistent with the best interest of City.     4.1.1 DBE represents that it is an independent DBE and that it is familiar with the type of Design‐Build  Services it is undertaking.    4.1.2 Neither DBE nor any of its agents or employees shall act on behalf of or in the name of City unless  authorized in writing by City’s Representative.    4.1.3 DBE shall perform its obligations with integrity, ensuring at a minimum that conflicts of interest,  including but not limited to conflicts of interests on the part of the Design Professionals employed by DBE,  shall be avoided.    4.2 Scope of Services.  DBE shall be responsible for procuring or providing the Design‐Build Services for the  Project consistent with the Scope of Services (RFP Attachment B) and any City‐approved modifications thereto  (“Bridging Documents”), including Exhibit A hereto, and the Contract Documents.  DBE shall exercise reasonable skill  and judgment in the procurement and provision of the Design‐Build Services, consistent with the applicable industry  practices and in compliance with the terms and conditions of the Contract Documents.       4.3 Design Services.    4.3.1  Design Professionals.  DBE shall provide all Design Services required for the Project. Architectural and  engineering services must be provided by licensed, independent Design Professionals retained by DBE or by  licensed employees of DBE, or as permitted by the law of the State of California.  DBE may not engage the  services of any Design Professional for this Project without obtaining the City’s prior written approval, which  approval will not be unreasonably withheld.  City’s approval will not be deemed to create any contractual  relationship between City and any such Design Professional, except that the City must be considered a third  party beneficiary of such Design Professional’s services for the Project.  DBE must bind its Design  Professionals in the same manner as DBE is bound to the City under this Contract, including, but not limited  to, the insurance and indemnity requirements applicable to Design Professionals set forth herein.  City will  not issue the Notice to Proceed with Design Services until it has received acceptable evidence that all Design  Professionals are covered by insurance as specified in the Contract Documents. All Design Services must be  guided by the Bridging Documents approved by City.    4.3.2  Project Schedule.  Within ten (10) days following full execution of the Contract, DBE must prepare  and submit for City’s review and approval a preliminary Project Schedule showing the timing and sequencing  of the Design‐Build Services required to design and construct the Project.  Unless otherwise specified by City,  the preliminary Project Schedule should include the major phases for the Design Services and for the  Construction Services, including, but not limited to, completion of Design Development Documents;  Construction Documents; procurement of Subcontractors; construction; final close out; as well as any other  milestones applicable to this Project.  The Project Schedule shall be updated for City’s review and approval  upon completion of each milestone included in the Project Schedule.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  7 2016      CONTRACT  4.3.3  Design Development Documents.  Within 60 calendar days following execution of the Contract, DBE  shall prepare and submit for City’s review and approval the Design Development Documents.  The Design  Development Documents must be based on the Bridging Documents, but must further define the Project,  including drawings and outline specifications fixing and describing the Project size, character and site  relationships, and other appropriate elements describing the structural, architectural, mechanical and  electrical systems.  The Design Development Documents shall include, as applicable, plans, sections and  elevations; criteria and sizing of major components; equipment sizes and capacities and approximate layouts,  including required spaces and clearances; typical details; materials selections and general quality levels.   When submitting the Design Development Documents to City, the DBE shall specify in writing, for City’s  approval, all material changes and from the Bridging Documents and the preliminary Project Schedule. Two  printed sets and one reproducible set of Design Development Documents must be provided to the City.    4.3.4  Construction Documents.  Within 30 calendar days following City’s approval of the Design  Development Documents, DBE must prepare and submit for City’s review and approval, Construction  Documents setting forth in detail the quality levels of and the requirements for construction of the Project,  and consisting of drawings and specifications that comply with applicable codes, laws, and regulations in  effect at the time of their preparation at the location of the Project.  The Construction Documents must also  include all necessary bid and contract documents for procuring and providing the Construction Services, all of  which are subject to approval by City and its legal counsel. When submitting the Construction Documents,  the DBE shall identify in writing all for City’s approval, all material changes and deviations that have taken  place since City approval of the Design Development Documents and Project Schedule. Two printed sets and  one reproducible set of Construction Documents must be provided to the City. City’s approval of Design  Documents does not operate to relieve DBE from responsibility for its errors or omissions, including, but not  limited to, any failure to comply with the requirements of the Bridging Documents. DBE is solely responsible  for any such errors or omissions, which must be promptly corrected at DBE’s sole expense, and without  entitlement to any adjustment of the Contract sum or Contract Time.    4.3.5  Ownership of Documents.    4.3.5.1  Ownership of Tangible Documents.  City shall receive ownership of the property rights,  except for copyrights, of all documents, drawings, specifications, electronic data and information prepared,  provided or procured by DBE, as part of the Design Services.    4.3.5.2  Use of Documents in Event of Termination.  In the event of a termination of this Contract,  City shall have the right to use, to reproduce, and to make derivative works of the Design Documents to  complete the Project, regardless of whether there has been a transfer of copyright to City.    4.3.5.3  City’s Use of Documents After Completion of Project.  After completion of the Project, City  may reuse, reproduce or make derivative works from the Design Documents solely for the purposes of  maintaining, renovating, remodeling or expanding the Project.     4.3.5.4  All Rights Secured. DBE shall obtain from its Subcontractors and Design Professionals rights and  rights of use that correspond to the rights given by DBE to City in this Contract and DBE shall provide  evidence that such rights have been secured.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  8 2016      CONTRACT  4.4 Construction Services.    4.4.1  DBE shall provide all labor, materials, equipment and services necessary to perform and timely  complete the Construction Services in strict accordance with the Contract Documents, including, but not  limited to, the Construction Documents, and in an economic and efficient manner in the best interests of  City. DBE shall not begin the Construction Services until City has received the required payment and  performance bonds, evidence of the required insurance coverage, and has issued a Notice to Proceed with  the Construction Services.    4.4.2  DBE is responsible for supervising and directing all aspects of the Work to facilitate the efficient and  timely completion of the Work. DBE is solely responsible for, and required to exercise full control over,  construction means, methods, techniques, sequences, procedures, and coordination of all portions of the  Work, except to the extent that the Contract Documents provide other specific instructions.    4.4.3  DBE shall provide sufficient and competent Subcontractors, administration, staff, and skilled workforce  necessary to perform and timely complete the Work in accordance with the Contract Documents and the  City‐approved Construction Documents.    4.4.4  DBE shall, at all times during performance of the Work, provide a qualified full‐time superintendent,  acceptable to City, and assistants, as necessary, who must be physically present at the Project site while any  aspect of the Work is being performed.  DBE and its subcontractors of every tier must use a “skilled and  trained workforce,” as that term is defined in subdivision (c)(1)(B) of Section 22164 of the Public Contract  Code, to perform all Work on the Project that falls within an apprenticeable occupation in the building and  construction traces. DBE will provide City with evidence on a monthly basis while the Work is being  performed that DBE and its subcontractors are complying with this requirement.    4.4.5  DBE must, at all times, ensure that the Work is performed in a good workmanlike manner and in full  compliance with the Contract Documents and all applicable laws, regulations, codes, standards, and permits.      4.4.6  DBE is solely responsible to City for the acts or omissions of any party or parties performing portions of  the Work or providing equipment, materials or services for or on behalf of DBE or its Subcontractors.    4.4.7  DBE shall promptly correct, at DBE’s sole expense, any Work that is deficient or defective in  workmanship, materials, and equipment.    4.4.8  DBE shall keep such full and detailed accounts as may be necessary for proper financial management under  this Contract. City shall be afforded access to all DBE's records, books, correspondence, instructions, drawings,  receipts, vouchers, memoranda and similar data relating to Change Order work performed on the basis of actual cost.  DBE shall preserve all such records for a period of three years after the Final Payment or longer where required by  law.    4.4.9  DBE shall provide periodic written reports to City on the progress of the Work in such detail as is required by  City and as agreed to by City and DBE.    4.5 Design‐Build Team and Subcontractors.    4.5.1 All members of the DBE’s Design‐Build Team (“DBT”) must be bound to the terms of this Contract.  All Work which is not performed by DBE or DBT members with its own duly licensed forces shall be  performed by Subcontractors.  DBE must provide each Subcontractor with a complete set of the Construction  Documents and any approved modifications thereto.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  9 2016      CONTRACT  4.5.2 DBE shall require every Subcontractor and material supplier to be bound to the provisions of the  Contract Documents as they apply to the Subcontractor’s or material supplier’s portion(s) of the Work, and to  likewise bind their Subcontractors or material suppliers.  City reserves the right to reject any Subcontractor or  material supplier based upon City’s reasonable belief that the Subcontractor or material supplier is not  adequately qualified, or whose performance is unacceptable to the City, or who has a history of unacceptable  performance on other public works projects. Nothing in these Contract Documents creates a contractual  relationship between a Subcontractor or material supplier and City, but City shall be deemed to be a third‐ party beneficiary of the contract between DBE and each Subcontractor.      4.5.3 If the Contract is terminated, each subcontract agreement shall be assigned by DBE to City, subject  to the prior rights of any surety, provided that the City accepts such assignment by written notification, and  assumes all rights and obligations of DBE pursuant to each such subcontract agreement.    4.5.4   All Subcontractors bidding on contracts for the Work shall be afforded the applicable protections  contained in the Subletting and Subcontracting Fair Practices Act (Public Contract Code Section 4100 et seq.).   Following award of the Design‐Build Contract, with the exception of Subcontractors listed in the Proposal, the  DBE must proceed as follows in awarding construction subcontracts with a value exceeding one‐half of 1  percent of the contract price allocable to Construction Services as set forth in Chapter 8 of the Proposal:    4.5.4.1  Provide public notice of availability of Work to be subcontracted by advertising notices  inviting bids at least once in a daily newspaper of general circulation in the City, not less than five  days prior to the date set for receiving bids, including a fixed date and time on which qualifications,  statements, bids, or proposals will be due.    4.5.4.2  Establish reasonable qualification criteria and standards.    4.5.4.3  Award the subcontract either on a Best Value basis or to the lowest responsible bidder. The  process may include prequalification or short‐listing.      4.5.5 In a contract between the DBE and a Subcontractor, and in a contract between a Subcontractor and  any Subcontractor thereunder, the percentage of retention proceeds withheld may not exceed the  percentage specified in the Design‐Build Contract. Notwithstanding the foregoing, if the DBE provides written  notice to any Subcontractor, prior to or at the time the bid is requested, that a performance bond may be  required and the Subcontractor subsequently is unable or refuses to furnish the bond to the DBE, then the  DBE may withhold from any payment to the Subcontractor, retention proceeds in excess of the percentage  specified in the Design‐Build Contract.    4.6 Coordination of Work.  City reserves the right to perform or to have performed other work on or adjacent to  the Project site while the Work is being performed.  DBE is responsible for coordinating its Work with other work  being performed on or adjacent to the Project site, and shall avoid hindering, delaying, or interfering with the work of  other contractors.  To the full extent permitted by law, DBE and each member of the DBT shall hold harmless and  indemnify City against any and all claims arising from or related to DBE’s or any DBT member’s or subcontractor’s  avoidable, negligent, or willful hindrance of, delay to, or interference with the work of another contractor or City’s  own forces.     4.7 DBE’s Representative.  DBE shall designate a person who shall be DBE's primary  authorized representative for this Project, subject to City’s approval, which shall not  unreasonably be withheld.  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  10 2016      CONTRACT  SECTION 5 PROJECT TEAM.    In addition to DBE, City has retained, or may retain, a Design Consultant or other consultants and contractors to  provide professional and technical consultation for the design and construction of the Project.  The Contract requires  that DBE operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team  and other contractors retained by City to construct other portions of the Project.    SECTION 6 TIME OF COMPLETION.    6.1 Time Is of Essence.    Time is of the essence with respect to all time limits set forth in the Contract Documents.    6.2 Commencement of Work.    DBE shall commence the Design‐Build Services on the date(s) specified in City’s Notice(s) to Proceed.       6.3 Contract Time.    The Design‐Build Services must begin on the date specified on the City’s Notice to Proceed with Design  Services and shall be completed, including all Construction Services,   not later than      .   within one hundred eighty (180) calendar days after the commencement date specified in City’s  Notice to Proceed with Design Services.    By executing this Design‐Build Contract, DBE expressly waives any claim for delayed early completion.    6.4 Liquidated Damages.  Pursuant to Government Code Section 53069.85, if DBE fails to achieve Substantial Completion of the entire  Work within the Contract Time, including any approved extensions thereto, City may assess liquidated  damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the  amount of five hundred dollars ($500) per day, or as otherwise specified in the Special Provisions. Liquidated  damages may also be separately assessed for failure to meet milestones specified elsewhere in the Contract  Documents, regardless of impact on the time for achieving Substantial Completion.  The assessment of  liquidated damages is not a penalty but considered to be a reasonable estimate of the amount of damages  City will suffer by delay in completion of the Work.  The City is entitled to setoff the amount of liquidated  damages assessed against any payments otherwise due to DBE, including, but not limited to, setoff against  release of retention.  If the total amount of liquidated damages assessed exceeds the amount of unreleased  retention, City is entitled to recover the balance from DBE or its sureties.  Beneficial occupancy or use of the  Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to  assess liquidated damages.    6.4.1 Other Remedies.    City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are  caused by any reason other than DBE’s failure to achieve Substantial Completion of the entire Work within  the Contract Time.    6.5 Adjustments to Contract Time.    The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change  Order approved in accordance with the requirements of the Contract Documents.  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  11 2016      CONTRACT  SECTION 7 COMPENSATION TO DBE.     7.1 Contract Sum.    DBE shall be compensated for satisfactory completion of the Design‐Build Services in compliance with the  Contract Documents the Contract Sum of One Million, Four Hundred Thirteen Thousand, Seven Hundred Fifty  Four Dollars ($1,413,754), as a Guaranteed Maximum Price, which is to be fully inclusive of all costs, direct or  indirect, and including overhead, profit, and incidentals (“GMP”).         7.2 Full Compensation.    The Contract Sum shall be full compensation to DBE for all Design‐Build Services provided by DBE and, except  as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of  the nature of the Design‐Build Services or from the acts of the elements or any unforeseen difficulties or  obstructions which may arise or be encountered in performance of the Design‐Build Services until its  Acceptance by City, all risks connected with the Design‐Build Services, and any and all expenses incurred due  to suspension or discontinuance of the Design‐Build Services, except as expressly provided herein.  The  Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the  Contract Documents.   SECTION 8 STANDARD OF CARE.    DBE agrees that the Design‐Build Services shall be performed by qualified, experienced and well‐supervised personnel.   All Design‐Build Services performed in connection with this Design‐Build Contract shall be performed in a manner  consistent with the standard of care under California law applicable to those who specialize in providing such services  for projects of the type, scope and complexity of the Project.     SECTION 9 INDEMNIFICATION.    9.1 Hold Harmless.      9.1.1  To the fullest extent permitted by law, DBE 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 liabilities 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 the DBE, its officers, employees, agents or contractors under this Agreement, regardless  of whether or not it is caused in part by an Indemnified party.    Notwithstanding the above, nothing in this section shall be construed to require DBE to indemnify an  Indemnified Party from Claims arising from the active negligence, sole negligence, or willful misconduct of an  Indemnified Party.      DBE shall pay City for any costs City incurs to enforce this provision.  Nothing in the Contract Documents shall  be construed to give rise to any implied right of indemnity in favor of DBE against City or any other  Indemnitee.    Pursuant to Public Contract Code Section 9201, City shall timely notify DBE upon receipt of any third‐party  claim relating to the Contract. The indemnity obligations set forth in this subsection 9.1.1 do not apply to  “design professionals,” as that term is used in Civil Code section 2782.8, who are subject to the indemnity  obligations in subsection 9.1.2, below.  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  12 2016      CONTRACT    9.1.2  To the fullest extent permitted by law, any Design Professional providing Design Services for the  Project, as DBE, as a member of the Design‐Build Team, or on behalf of DBE, shall protect, indemnify, defend  and hold harmless City, its Council members, officers, employees and agents (each an “Indemnified Party”)  from and against any and all demands, claims, or liability of any nature, including death or injury to any  person, property damage or any other loss, including all costs and expenses of whatever nature including  attorney fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to or relate to  the negligence, recklessness, or willful misconduct of the Design Professional, its officers, employees, agents  or subconsultants under this Agreement, regardless of whether or not such liability for such Claims may have  been caused in part by an Indemnified Party. DBE shall pay City for any costs to enforce this provision.  Nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor  of a Design Professional against the City or any other Indemnitee.    9.2 Survival.    The acceptance of DBE’s services and duties by City shall not operate as a waiver of the right of  indemnification.  The provisions of this Section 9 shall survive the expiration or early termination of this  Agreement.    SECTION 10 NONDISCRIMINATION.    As set forth in Palo Alto Municipal Code section 2.30.510, DBE 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. DBE acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto  Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply  with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.    SECTION 11 INSURANCE AND BONDS.    DBE must procure professional liability insurance, as further specified in Article 11 of the General Conditions, covering  all Design Services provided under this Contract. DBE must provide a Performance Bond and a Payment Bond, using  the City forms provided with this Contract, each for an amount equal to the DBE’s price for delivery of the  Construction Services. Within ten (10) business days following issuance of the Notice of Award, DBE shall provide City  with evidence satisfactory to the City that DBE has obtained insurance and has sufficient bonding capacity to provide  Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions.      SECTION 12 PROHIBITION AGAINST TRANSFERS.    City is entering into this Design‐Build Contract in reliance upon the stated experience and qualifications of the DBE and  its Design Professionals and Subcontractors as set forth in DBE’s Proposal.  Accordingly, DBE shall not assign,  hypothecate or transfer this Design‐Build Contract or any interest therein directly or indirectly, by operation of law or  otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent  shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any  other legal or equitable remedy available to the City.    The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of DBE or of any  general partner or joint venturer or syndicate member of DBE, if the DBE is a partnership or joint venture or syndicate  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  13 2016      CONTRACT  or co‐tenancy shall result in changing the control of DBE, shall be construed as an assignment of this Design‐Build  Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity.     SECTION 13 NOTICES.    13.1 Method of Notice.    All notices, demands, requests or approvals to be given under this Design‐Build Contract shall be given in writing and  shall be deemed served on the earlier of the following:  (i) On the date delivered if delivered personally;  (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and   addressed as hereinafter provided;   (iii) On the date sent if sent by facsimile transmission;   (iv) On the date sent if delivered by electronic mail; or   (v) On the date it is accepted or rejected if sent by certified mail.     13.2 Notice Recipients.     All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from DBE  to City shall include the Project name and the number of this Design‐Build Contract and shall be addressed to  City at:      To City:  City of Palo Alto     City Clerk     250 Hamilton Avenue     P.O. Box 10250     Palo Alto, CA 94303     Copy to:   City of Palo Alto     Public Works Engineering Services     250 Hamilton Avenue     Palo Alto, CA 94301     Attn: Holly Boyd            City of Palo Alto     Utilities Engineering     250 Hamilton Avenue     Palo Alto, CA 94301     Attn:             In addition, copies of all Claims by DBE under this Design‐Build Contract shall be provided to the following:    Palo Alto City Attorney’s Office  250 Hamilton Avenue  P.O. Box 10250  Palo Alto, California 94303       All Claims shall be delivered personally or sent by certified mail.    All notices, demands, requests or approvals from City to DBE shall be addressed to:  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  14 2016      CONTRACT       DBE Name:   G4S Secure Integration     Contact Name: Vince Vorster     Title:    Senior Manager, Business Development     Address:  3073 Teagarden Street        San Leandro, CA 94577     Phone/Fax:  510.714.1612     Email:    vince.vorster@usa.g4s.com    13.3 Change of Address.    In advance of any change of address, DBE shall notify City of the change of address in writing.  Each party  may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice  shall be provided.    SECTION 14 DEFAULT.    14.1 Notice of Default.    In the event that City determines, in its sole discretion, that DBE has failed or refused to perform any of the  obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents,  City may give written notice of default to DBE in the manner specified for the giving of notices in the Design‐ Build Contract, with a copy to DBE’s performance bond surety.    14.2 Opportunity to Cure Default.  Except for emergencies, DBE shall cure any default in performance of its obligations under the Contract  Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written  notice. However, if the breach cannot be reasonably cured within such time, DBE will commence to cure the  breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and  continuously prosecute such cure to completion within a reasonable time, which shall in no event be later  than ten (10) Days after receipt of such written notice.    SECTION 15 CITY'S RIGHTS AND REMEDIES.    15.1 Remedies Upon Default.    If DBE fails to cure any default of this Design‐Build Contract within the time period set forth above in Section  14, then City may pursue any remedies available under law or equity, including, without limitation, the  following:    15.1.1 Delete Certain Services.    City may, without terminating the Design‐Build Contract, delete certain portions of the Design‐Build Services,  reserving to itself all rights to Losses related thereto.    15.1.2 Perform and Withhold.    City may, without terminating the Design‐Build Contract, engage others to perform the Design‐Build Services  or portion thereof that has not been adequately performed by DBE and withhold the cost thereof to City  from future payments to DBE, reserving to itself all rights to Losses related thereto.    15.1.3 Suspend the Design‐Build Contract.    City may, without terminating the Design‐Build Contract and reserving to itself all rights to Losses related  thereto, suspend all or any portion of this Design‐Build Contract for as long a period of time as City  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  15 2016      CONTRACT  determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the  Contract Sum or Contract Time, and shall have no liability to DBE for damages if City directs DBE to resume  Design‐Build Services.    15.1.4 Terminate the Design‐Build Contract for Default.    City shall have the right to terminate this Design‐Build Contract, in whole or in part, upon the failure of DBE  to promptly cure any default as required by Section 14.  City’s election to terminate the Design‐Build Contract  for default shall be communicated by giving DBE a written notice of termination in the manner specified for  the giving of notices in the Design‐Build Contract.  Any notice of termination given to DBE by City shall be  effective immediately, unless otherwise provided therein.    15.1.5 Invoke the Performance Bond.    City may, with or without terminating the Design‐Build Contract and reserving to itself all rights to Losses  related thereto, exercise its rights under the Performance Bond.    15.1.6 Additional Provisions.    All of City’s rights and remedies under this Design‐Build Contract are cumulative, and shall be in addition to  those rights and remedies available in law or in equity.  Designation in the Contract Documents of certain  breaches as material shall not waive the City’s authority to designate other breaches as material nor limit  City’s right to terminate the Design‐Build Contract, or prevent the City from terminating the Agreement for  breaches that are not material.  City’s determination of whether there has been noncompliance with the  Design‐Build Contract so as to warrant exercise by City of its rights and remedies for default under the  Design‐Build Contract, shall be binding on all parties.  No termination or action taken by City after such  termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract  Documents upon such termination; and City may proceed against DBE to recover all liquidated damages and  Losses suffered by City.    15.2 Delays by Sureties.    Time being of the essence in the performance of the Work, if DBE’s surety fails to arrange for completion of  the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the  notice of termination, DBE’s surety shall be deemed to have waived its right to complete the Work under the  Contract, and City may immediately make arrangements for the completion of the Work through use of its  own forces, by hiring a replacement DBE, or by any other means that City determines advisable under the  circumstances.  DBE and its surety shall be jointly and severally liable for any additional cost incurred by City  to complete the Work following termination.  In addition, City shall have the right to use any materials,  supplies, and equipment belonging to DBE and located at the Worksite for the purposes of completing the  remaining Work.    15.3 Damages to City.    15.3.1 For DBE's Default.    City will be entitled to recovery of all Losses under law or equity in the event of DBE’s default under the  Contract Documents.     15.3.2 Compensation for Losses.   In the event that City's Losses arise from DBE’s default under the Contract Documents, City shall be entitled  to deduct the cost of such Losses from monies otherwise payable to DBE.  If the Losses incurred by City  exceed the amount payable, DBE shall be liable to City for the difference and shall promptly remit same to  City.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  16 2016      CONTRACT  15.4 Suspension by City      15.4.1 Suspension for Convenience.    City may, at any time and from time to time, without cause, order DBE, in writing, to suspend, delay, or  interrupt the Design‐Build Services in whole or in part for such period of time, up to an aggregate of fifty  percent (50%) of the Contract Time.  The order shall be specifically identified as a Suspension Order by City.   Upon receipt of a Suspension Order, DBE shall, at City’s expense, comply with the order and take all  reasonable steps to minimize costs allocable to the Design‐Build Services covered by the Suspension Order.   During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or,  by Change Order, delete the Design‐Build Services covered by the Suspension Order.  If a Suspension Order is  canceled or expires, DBE shall resume and continue with the Design‐Build Services.  A Change Order will be  issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such  suspension.    A Suspension Order shall not be the exclusive method for City to stop the Design‐Build Services.    15.4.2 Suspension for Cause.  In addition to all other remedies available to City, if DBE fails to perform or correct work in accordance with  the Contract Documents, City may immediately order the Design‐Build Services, or any portion thereof,  suspended until the cause for the suspension has been eliminated to City’s satisfaction.  DBE shall not be  entitled to an increase in Contract Time or Contract Price for a suspension occasioned by DBE’s failure to  comply with the Contract Documents.  City’s right to suspend the Design‐Build Services shall not give rise to a  duty to suspend the Design‐Build Services, and City’s failure to suspend the Design‐Build Services shall not  constitute a defense to DBE’s failure to comply with the requirements of the Contract Documents.    15.5 Termination Without Cause.    City may, at its sole discretion and without cause, terminate this Design‐Build Contract in part or in whole  upon written notice to DBE. Upon receipt of such notice, DBE shall, at City’s expense, comply with the notice  and take all reasonable steps to minimize costs to close out and demobilize.  The compensation allowed  under this Paragraph 15.5 shall be the DBE’s sole and exclusive compensation for such termination and DBE  waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits,  loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind  resulting from termination without cause.  Termination pursuant to this provision does not relieve DBE or its  sureties from any of their obligations for Losses arising from or related to the Design‐Build Services  performed by DBE.     15.5.1 Compensation.    Following such termination and within forty‐five (45) Days after receipt of a billing from DBE seeking payment  of sums authorized by this Paragraph 15.5.1, City shall pay the following to DBE as DBE’s sole compensation  for performance of the Design‐Build Services:    .1 For Services Performed.  The amount of the Contract Sum allocable to the portion of the Design‐ Build Services properly performed by DBE as of the date of termination, less sums previously paid to DBE.    .2 For Close‐out Costs.  If termination is effective after the Construction Services have commenced on  the site, reasonable costs of DBE and its Subcontractors:  (i) Demobilizing and  (ii) Administering the close‐out of its participation in the Project (including, without limitation,  all billing and accounting functions, not including attorney or expert fees) for a period of no longer  than thirty (30) Days after receipt of the notice of termination.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  17 2016      CONTRACT  .3 For Fabricated Items.  Previously unpaid cost of any items delivered to the Project Site which were  fabricated for subsequent incorporation in the Work.    .4 Profit Allowance.    An allowance for profit calculated as four percent (4%) of the sum of the above  items, provided DBE can prove a likelihood that it would have made a profit if the Design‐Build Contract had  not been terminated.    .5 Emergency Termination.  The compensation provided in this provision does not apply to  termination for emergency pursuant to Section 2.6 of the General Conditions.    15.5.2 Subcontractors.      DBE shall include provisions in all of its subcontracts, purchase orders and other contracts permitting  termination for convenience by DBE on terms that are consistent with this Design‐Build Contract and that  afford no greater rights of recovery against DBE than are afforded to DBE against City under this Section.    15.6 DBE’s Duties Upon Termination.    Upon receipt of a notice of termination for default or for convenience, DBE shall, unless the notice directs  otherwise, do the following:  (i) Immediately discontinue the Design‐Build Services to the extent specified in the notice;  (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may  be necessary for completion of such portion of the Work that is not discontinued;  (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of  termination, of all subcontracts, purchase orders and contracts that are outstanding, including,  without limitation, the terms of the original price, any changes, payments, balance owing, the status  of the portion of the Design‐Build Services covered and a copy of the subcontract, purchase order or  contract and any written changes, amendments or modifications thereto, together with such other  information as City may determine necessary in order to decide whether to accept assignment of or  request DBE to terminate the subcontract, purchase order or contract;  (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that  City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all  subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by  assignment; and  (v) Thereafter do only such Design‐Build Services as may be necessary to preserve and protect Design‐ Build Services already in progress and to protect materials, plants, and equipment on the Project Site  or in transit thereto.  Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in  effect as to any Claim, indemnity obligation, warranties, guarantees, submittals of As‐Built Documents,  instructions, or manuals, or other such rights and obligations arising prior to the termination date.    SECTION 16 DBE'S RIGHTS AND REMEDIES.    16.1 DBE’s Remedies.    DBE may terminate this Design‐Build Contract only upon the occurrence of one of the following:    16.1.1 For Work Stoppage.     The Work is stopped for sixty (60) consecutive Days, through no act or fault of  DBE, any Subcontractor, or  any employee or agent of DBE or any Subcontractor, due to issuance of an order of a court or other public  authority other than City having jurisdiction or due to an act of government, such as a declaration of a  national emergency making material unavailable.  This provision shall not apply to any work stoppage  resulting from the City’s issuance of a suspension notice issued either for cause or for convenience.  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  18 2016      CONTRACT    16.1.2 For City's Non‐Payment.     If City does not pay DBE undisputed sums within ninety (90) Days after receipt of notice from DBE, DBE may  terminate the Design‐Build Contract (30) days following a second notice to City of DBE’s intention to  terminate the Design‐Build Contract.    16.2 Damages to DBE.   In the event of termination for cause by DBE, City shall pay DBE the sums provided for in Paragraph 15.5.1  above.  DBE agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim  for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue,  lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind.    SECTION 17 ACCOUNTING RECORDS.    17.1 Financial Management and City Access.    DBE shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial  management under this Design‐Build Contract in accordance with generally accepted accounting principles  and practices. City and City's accountants  during normal business hours, may  inspect, audit and copy DBE's  records, books, estimates, take‐offs, cost reports, ledgers, schedules, correspondence, instructions, drawings,  receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. DBE  shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final  resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by  law.    17.2 Compliance with City Requests.    DBE's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing  or maintenance of any legal action or proceeding by DBE against City and to DBE's right to receive further  payments under the Contract Documents.  City many enforce DBE’s obligation to provide access to City of its  business and other records referred to in Section 17.1 for inspection or copying by  issuance of a writ or a  provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits  submitted to such court, without the necessity of oral testimony.    SECTION 18 INDEPENDENT PARTIES.    Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other  party.  City, its officers or employees shall have no control over the conduct of DBE or its respective agents,  employees, subconsultants, or Subcontractors, except as herein set forth.    SECTION 19 NUISANCE.    DBE shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the  performance of services under this Design‐Build Contract.    SECTION 20 PERMITS AND LICENSES.    Except as otherwise provided in the Special Provisions and Bridging Documents, The DBE shall provide, procure and  pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  19 2016      CONTRACT  carry out and complete the Design‐Build Services.  Payment of all costs and expenses for such licenses, permits, and  fees shall be included in one or more Proposal items. No other compensation shall be paid to the DBE for these items  or for delays caused by non‐City inspectors or conditions set forth in the licenses or permits issued by other agencies.    SECTION 21 WAIVER.    A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be  a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether  of the same or a different character.    SECTION 22 GOVERNING LAW AND VENUE.    This Design‐Build Contract shall be construed in accordance with and governed by the laws of the State of California,  and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place.    SECTION 23 COMPLETE AGREEMENT.    This Agreement represents the entire and integrated agreement between the parties and supersedes all prior  negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a  written instrument, which is signed by the parties.    SECTION 24 SURVIVAL OF CONTRACT.    The provisions of the Design‐Build Contract which by their nature survive termination of the Design‐Build Contract or  Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to  audit DBE’s books and records, shall remain in full force and effect after Final Completion or any termination or  suspension of the Design‐Build Contract.    SECTION 25 PREVAILING WAGES.         The DBE is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of  Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code.  Pursuant to the provisions of  Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of  per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type  of worker needed to execute the contract for this Project from the Director of the Department of Industrial  Relations.  Copies of these rates may be obtained at the Purchasing Office of the City of Palo Alto.  DBE shall provide a  copy of prevailing wage rates to any staff or Subcontractor hired, and shall pay the adopted prevailing wage rates as a  minimum.  DBE shall comply with the provisions of Sections 1775, 1776, 1777.5, 1810, and 1813 of the Labor Code.    Pursuant to Labor Code section 1771.1, for any public works contract subject to Chapter 1 of Part 7 of Division 2 of the  California Labor Code, for any Proposal submitted on or after March 1, 2015 and for any contract entered into on or  after April 1, 2015, a contractor or subcontractor shall not be qualified to bid on or to be listed in a bid proposal  subject to the requirements of section 4104 of the California Public Contract Code, unless that contractor or  subcontractor is currently registered and qualified to perform public work pursuant to section 1725.5 of the California  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  20 2016      CONTRACT  Labor Code. Notice: Pursuant to California Labor Code section 1771.4, this Project is subject to compliance  monitoring and enforcement by the California Department of Industrial Relations.    SECTION 26 NON APPROPRIATION.    This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal  Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City  does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the  event that funds are only appropriated for a portion of the fiscal year and funds for this Design‐Build Contract are no  longer available.  This section shall take precedence in the event of a conflict with any other covenant, term,  condition, or provision of this Agreement.     SECTION 27 AUTHORITY.    The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do  so on behalf of their respective legal entities.    SECTION 28 COUNTERPARTS    This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a  single binding agreement.    SECTION 29 SEVERABILITY.    In case a provision of this Design‐Build Contract is held to be invalid, illegal or unenforceable, the validity, legality and  enforceability of the remaining provisions shall not be affected.      SECTION 30 STATUTORY AND REGULATORY REFERENCES.      With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the  reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise  required by law.      SECTION 31 WORKERS’ COMPENSATION CERTIFICATION.      Pursuant to Labor Code Section 1861, by signing this Contract, DBE certifies as follows: “I am aware of the provisions  of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’  compensation or to undertake self‐insurance in accordance with the provisions of that code, and I will comply with  such provisions before commencing the performance of the Work on this Contract.”       DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  21 2016      CONTRACT  EXHIBITS:   A:   SCOPE OF SERVICES    ATTACHMENTS:  PERFORMANCE BOND FORM   PAYMENT BOND FORM     IN WITNESS WHEREOF, the parties have caused this Design‐Build Contract to be executed the  date and  year first above written.           CITY OF PALO ALTO    ____________________________   Purchasing Manager   City Manager      APPROVED AS TO FORM:    ____________________________  Senior Asst. City Attorney    APPROVED:    ____________________________  Public Works Director        DBE      By:___________________________    Name:________________________    Title:__________________________    Date: _________________________          DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB Louie Enriquez Vice President, Operations 6/5/2017   EXHIBIT A  SCOPE OF SERVICES  CALTRAIN CORRIDOR VIDEO MANAGEMENT SYSTEM  JUNE 1, 2017    1.0 PROJECT OVERVIEW     The purpose of this project is to meet the City of Palo Alto’s objective of deploying a cost‐ efficient and reliable system for effective video monitoring of key Caltrain crossings in the City  of Palo Alto (City).  Work will occur at the following locations:     Palo Alto Avenue Caltrain Crossing   Churchill Avenue Caltrain Crossing   Meadow Drive Caltrain Crossing   Charleston Avenue Caltrain Crossing   Emergency Operations Center    Integrated video systems will be installed at four crossings, and head end equipment will be  installed at the Emergency Operations Center (EOC).      G4S Secure Integration (referred to herein as “G4S” or “DBE”) will provide services for the  design, construction, and maintenance as described within this document.      1.1 Governing Standards and Codes.  During the design and construction of this project, G4S shall comply with the following  standards and codes:   All applicable Local and State codes, regulations, rules and ordinances   Standards included in the Contract Documents   All applicable ANSI/EIA/TIA standards   National Electric Code (NEC)   City of Palo Alto Utilities Standard Specifications and Drawings   City of Palo Alto Public Works Standard Specifications and Drawings   Caltrain Requirements    2.0 DESIGN SERVICES     2.1 DESIGN OBJECTIVE  G4S will provide design services with the purpose of:   Verifying the solution meets the City’s objectives.   Verifying the project meets the Palo Alto Municipal Code (PAMC) and the City’s permit  requirements.   Verifying the project meets Peninsula Corridor Joint Powers Board (PCJPB) safety  requirements.  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB    Verifying the constructability of the solution.      2.2 DESIGN PARAMETERS  G4S will base the design on the following functional and technical performance criteria.      2.2.1 Functional Performance Criteria  The solution shall be designed around the following functional performance criteria:     1. Provides a means to deter, detect, and respond to persons and objects within the areas  of interest.   2. Provides automatic alerts to off‐site operators upon a pre‐configured event or set of  events from cameras using video analytics when alert criteria are met.  3. Provides live video alert monitoring from an off‐site location upon an actionable event  within the immediate area of the intersection.  4. Provides live video monitoring from an off‐site location upon an actionable event of  objects within 1,000 feet of the camera’s direct line of site.  5. Deters persons through the use of visual signage at each intersection notifying persons  that the area is under video surveillance.  6. Enables remote system operators to respond to alerts in accordance with established  incident response plans.    7. Allows off‐site operators the ability to make live voice announcements/directions to  persons in the immediate area.  8. Stores recorded video for up to 31 days at centralized location.   9. Provides uninterruptible power for up to 72 hours during power outage at  server/storage appliance location.   10. Provides uninterruptible power for up to 3 hours during power outage at camera  locations.     2.2.2 Technical Performance Criteria  The solution shall be designed around the following technical performance criteria:    1. Cameras that meet IP protocol.   2. Cameras to produce a minimum resolution of 1080p.  3. Ability to view the area with a combination of both fixed and PTZ cameras.    4. Ability to view objects up to 1,000 feet in variable lighting and weather conditions.  5. Ability to manually and automatically position the PTZ camera to view area of interest  based on event.   6. Ability of fixed cameras to view as much of intersection as possible.  7. Ability to use Intelligent Video Analytics (IVA) to automatically detect various behaviors  and create alerts.    8. Ability to use City’s existing dark fiber optic cabling for data transmissions.  9. Ability to store video data on a local NVR for up to one (1) month.  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB   10. Video Management System that has the ability to be monitored at both City and third‐ party monitoring vendor’s facilities.     2.3 DESIGN DELIVERABLES  G4S shall submit the following design documents:    1. Site Survey Report.  2. Design Development Documents.  3. Construction Documents.  4. Planning Documents.    2.3.1 Site Survey Report  The site survey report shall contain an analysis of the existing conditions, including existing  utilities, lighting conditions, and potential connection points.    2.3.2 Preliminary Design Development Documents  The design development documents shall identify the locations, types, power source,  communication source, cable routing, cabling infrastructure, camera field of views, and other  items deemed appropriate by G4S for review and approval by the City.       2.3.3 Final Construction Documents  The construction documents shall have all the necessary information for installation,  configuration, and testing of the solution.     2.3.4 Planning Documents  The planning documents shall include the following:  1. Work Plans  2. Issue Resolution Plan  3. Risk Management Plan  4. Escalation Plan   5. Traffic Control Plans  6. Permitting Plan  7. Test Plan  8. Training Plan  9. Submittal Plan    2.4 DESIGN PROCESS   G4S shall follow the process described below to progress the proposed conceptual design  package (Attachment A attached hereto) into the final construction documents.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB   2.4.1 Kickoff Meeting  G4S shall hold a kickoff meeting to review all contract documents, the proposed conceptual  design, the project schedule, and items requiring immediate attention. Prior to the kickoff, G4S  will coordinate with the City on the agenda and logistics for this meeting.    2.4.2 Functional and Technical Requirements Meeting  G4S shall hold a meeting to establish the functional and technical requirements of the technical  solution. Results will be documented and used for incorporation into the final testing and  acceptance plans.      2.4.3 Site Surveys   G4S shall complete a site survey of the following sites:   City E‐911 and/or Security Monitoring Center where servers will be located.   Four (4) Caltrain intersections along Alma Street  o Palo Alto Avenue  o Churchill Avenue  o West Meadow Drive  o West Charleston Road    G4S shall document its findings and submit a site survey report for incorporation into the  preliminary design development documents.      2.4.4 Design Development Documents  G4S shall use information gathered during the initial meetings and findings from the site  surveys to prepare the preliminary design development documents for review by City staff.   G4S shall respond to City’s comments and incorporate appropriate changes into the final  construction documents.    2.4.5 Final Construction Documents  Once comments have been incorporated, G4S shall have a professional engineer registered in  the State of California review and stamp the electrical and structural drawings.    G4S shall then submit the construction documents to the appropriate City departments in order  to obtain necessary permits and approvals.  G4S shall submit site specific traffic control plans to  the City at least three weeks prior to installation work.        G4S shall contact Caltrain directly to obtain all applicable documents required for coordination.   G4S shall submit the applicable forms, procedures, and other necessary information to Caltrain  for their review.      3.0 CONSTRUCTION SCOPE  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB   Once the necessary permits have been obtained and coordination with Caltrain is complete,  G4S shall begin construction.  G4S shall inspect each site and prepare a list of damage to  existing facilities that could be later misidentified as damage resulting from our work.  G4S shall  photograph or video tape existing conditions to document conditions prior to commencement  of installation work.    3.1 Installation  During the installation period, work along Alma Street shall be performed between 9 a.m. and 4  p.m. Monday through Friday, excluding City holidays.  G4S will request prior approval for any  other work shifts, such as weekend, holidays, or changes in work hours.      G4S shall first construct the Charleston Avenue Caltrain Crossing site as the Pilot Test Location.   G4S will use this location to demonstrate the operation of the cameras and video management  system.   G4S will gain acceptance by the City on this site’s configuration prior to beginning  deployment of equipment at the remaining project sites.    3.2 Site Acceptance Testing  G4S shall perform a Site Acceptance Test at each location in accordance with the approved test  plan to verify the system meets the test criteria.     3.3 Final System Acceptance Testing  G4S shall perform a Final System Acceptance Test after all sites have been completed.     3.4 TRAINING  G4S shall provide the System Operator Training in accordance with the City approved training  plan.  G4S shall provide eight (8) hours of training, for up to five (5) persons designated by the  City, at an on‐site location on the operation of the designed systems deployed under this  project.  G4S will provide instructors during normal business hours at a location designated by  the City.       The training will include the following modules:     Technical, Legal, and Ethical parameters of appropriate system use.   Operation   Troubleshooting    4.0 WARRANTY AND MAINTENANCE SERVICES     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB   4.1 Warranty  G4S shall provide a two (2) year warranty on any G4S provided material and labor beginning the  day the item is accepted. G4S shall remove the defective equipment and install replacement  equipment during this warranty period.  G4S shall respond to telephone requests for service  within four (4) hours and provide on‐site service within one (1) business day during business  hours for critical system warranty issues.  This provision supplements the warranty provisions in  the General Conditions.     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     ATTACHMENT A  CONCEPTUAL DESIGN    1.0 PROJECT OVERVIEW     The purpose of this project is to meet the City of Palo Alto’s objective of deploying a cost‐ efficient and reliable Video Management System for effective video monitoring of key Caltrain  crossings in the City of Palo Alto (City).  Work will occur at the following locations:     Palo Alto Avenue Caltrain Crossing   Churchill Avenue Caltrain Crossing   West Meadow Drive Caltrain Crossing   West Charleston Avenue Caltrain Crossing   Emergency Operations Center    Integrated video systems will be installed at four crossings, and head end equipment will be  installed at the Emergency Operations Center (EOC).      G4S Secure Integration (referred to herein as “GS4” or “DBE”) has developed the following  conceptual design based on comments received from the City during the proposal process.     2.0 CONCEPTUAL DESIGN    2.1 West Charleston Avenue Caltrain Crossing (Pilot Site Location)          DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB   This location will be first to configure, test, and demonstrate the operation of the CCTV cameras  and VMS.  G4S will gain acceptance by the City of Palo Alto on this site’s configuration prior to  beginning deployment of CCTV cameras at the other project sites.    1. There is 120V power available at pole 7057 on the southwest corner of the  intersection.  G4S will extend service conductors from this location to one (1) new pad‐ mounted equipment enclosure that G4S will provide.   G4S will install the equipment  enclosure near the base of pole 7057.   G4S will install one (1) 20‐amp double‐duplex  outlet inside the equipment enclosure to power the equipment.  G4S will install one (1)  wall‐mounted fiber optic patch panel, one (1) POE network switch, one (1) UPS, and one  (1) camera power supply inside the equipment enclosure.  2. A 6‐strand 8.3/125 single‐mode OSP fiber optic cable will be furnished and installed to  the equipment enclosure at pole 7057 by the City of Palo Alto.  The fiber optic cable will  be coiled and left for our system utilization.  G4S will terminate the fiber optic cable  with six (6) LC‐type single‐mode fiber optic connectors and one (1) LC coupler patch  panel inside the equipment enclosure.   3. G4S will mount four (4) CCTV cameras and one (1) audio speaker on pole 7057.  Power  and communication cabling will be installed in conduit from the pole‐mounted  equipment to the equipment enclosure.  G4S will install rigid metal conduit to the  surface of the pole and PVC underground‐rated conduit to the equipment enclosure  from the pole.  G4S will terminate the power and communication cabling on the pole  inside weather‐proof enclosures.   4. G4S will provide traffic control required by the City of Palo Alto during installation work  at this intersection.  This will include the method‐of‐procedure (MOP) submitted to the  City of Palo Alto for review and approval, drawings/site plans, and schedule.    Refer to Section 3.0 ‐ Major Materials List (below) for the materials that will be installed at this  location.    2.2 West Meadow Drive Caltrain Crossing      DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB   1. There is 120V power available at pole 2177 on the southwest corner of the  intersection.  G4S will extend service conductors from this location to one (1) new pad‐ mounted equipment enclosure that G4S will provide.   G4S will install the equipment  enclosure near the base of pole 2177.   G4S will install one (1) 20‐amp double‐duplex  outlet inside the equipment enclosure to power the equipment.  G4S will install one (1)  wall‐mounted fiber optic patch panel, one (1) POE network switch, one (1) UPS, and one  (1) camera power supply inside the equipment enclosure.  2. A 6‐strand 8.3/125 single‐mode OSP fiber optic cable will be furnished and installed to  the equipment enclosure at pole 2177 by the City of Palo Alto.  The cable will be coiled  and left for our system utilization.  G4S will terminate the cable with six (6) LC‐type  single‐mode fiber optic connectors and one (1) LC coupler patch panel inside the  equipment enclosure.  3. G4S will mount four (4) CCTV cameras and one (1) audio speaker on pole 2177.  Power  and communication cabling will be installed in conduit from the pole‐mounted  equipment to the equipment enclosure.  G4S will install rigid metal conduit to the  surface of the pole and PVC underground‐rated conduit to the equipment enclosure  from the pole.  G4S will terminate the power and communication cabling on the pole  inside weather‐proof enclosures.   4. G4S will provide traffic control required by the City of Palo Alto during installation work  at this intersection.  This will include the method‐of‐procedure (MOP) submitted to the  City of Palo Alto for review and approval, drawings/site plans, and schedule.  5. G4S will remove the existing prototype Intrusion Detection System that was installed by  CSC Integrations in a manner that 1) preserves such equipment in good condition for  use by the City in another future deployment and 2)minimizes the time that the area is  not covered (downtime) as the old equipment is demobilized and the new equipment is  brought online. Furthermore, this location shall be the last of the sites installed.    Refer to Section 3.0 ‐ Major Materials List (below) for the materials that will be installed at this  location    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB   2.3 Churchill Avenue Caltrain Crossing      1. There is 120V power available at the traffic signal pole on the southwest corner of the  intersection.  G4S will extend service conductors from this location to one (1) new pad‐ mounted equipment enclosure that G4S will provide.   G4S will install the equipment  enclosure near the base of the traffic signal pole.   G4S will install one (1) 20‐amp  double‐duplex outlet inside the equipment enclosure to power the equipment.  G4S will  install one (1) wall‐mounted fiber optic patch panel, one (1) POE network switch, one (1)  UPS, and one (1) camera power supply inside the equipment enclosure.     2. A 6‐strand 8.3/125 single‐mode OSP fiber optic cable will be furnished and installed to  the equipment enclosure by the City of Palo Alto.  The cable will be coiled and left for  our system utilization.  G4S will terminate the cable with six (6) LC‐type single‐mode  fiber optic connectors and one (1) LC coupler patch panel inside the equipment  enclosure.  3. G4S will mount four (4) CCTV cameras and one (1) audio speaker on the traffic signal  pole.  Power and communication cabling will be pulled inside the pole from the  equipment to the equipment enclosure.  G4S will install PVC underground‐rated conduit  to the equipment enclosure from the pole.  G4S will terminate the power and  communication cabling at the pole equipment inside weather‐proof enclosures.   4. G4S will provide traffic control required by the City of Palo Alto during installation work  at this intersection.  This will include the method‐of‐procedure (MOP) submitted to the  City of Palo Alto for review and approval, drawings/site plans, and schedule.    Refer to Section 3.0 ‐ Major Materials List (below) for the materials that will be installed at this  location.  2.4 Palo Alto Avenue Caltrain Crossing    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB       1. There is existing 120V power on an existing wooden pole in the heavy‐planted area on  the West side of Alma, near the intersection of Everett and Alma. G4S will extend  service conductors from this location to two (2) new pad‐mounted equipment  enclosures that G4S will provide.  G4S will install the two (2) equipment enclosures  individually near the base of two (2) new wooden poles.  One (1) wooden pole will be  installed on the Southwest corner of the intersection outside of the Caltrain ROW.  One  (1) wooden pole will be installed 80 ft. South of the intersection, inside the heavy‐ planted area, outside of the Caltrain ROW fence.  G4S will install one (1) equipment  enclosure near the base of each of the two (2) new wooden poles.   In each equipment  enclosure, G4S will install one (1) 20‐amp double‐duplex outlet to power the  equipment.  G4S will install one (1) wall‐mounted fiber optic patch panel, one (1) POE  network switch, one (1) UPS, and one (1) camera power supply inside each of the two  (2) equipment enclosures.  2. G4S will provide a 1300 ft. directional bore and two (2) 2” underground conduits from  the Southeast corner of the Everett and Alma intersection, servicing the two (2) wooden  pole locations.  The directional bore will include crossing under Alma street at the  Everett intersection, and then continue under the heavy‐planted area on the West side  of Alma to the first wooden pole location.  A handhole shall be placed at the first  wooden pole, and then the directional bore shall continue to the second wooden pole  on the Southwest corner of the Palo Alto and Alma intersection.  3. G4S will furnish and install 1300 ft. of 6‐strand 8.3/125 single‐mode fiber optic cable  from the existing fiber optic cable trunk located in an above‐ground signal enclosure  located on the Southeast corner of the Everett and Alma intersection, to the two (2)  equipment enclosures at each wooden pole location.  G4S will fusion splice the 6‐strand  single‐mode fiber optic cable to the existing fiber optic cable trunk.  G4S will furnish and  install one (1) weather‐proof splice case to house the fusion splice.  4. G4S will mount three (3) CCTV cameras and one (1) audio speaker on the wooden pole  located on the Southwest corner of the Palo Alto and Alma intersection.  G4S will mount  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB   one (1) CCTV camera on the wooden pole in the heavy‐planted area South of the  intersection.  Power and communication cabling will be installed in conduit from the  pole‐mounted equipment to the equipment enclosures located at the base of each  wooden pole.  G4S will install rigid metal conduit to the surface of the poles and PVC  underground‐rated conduit to the equipment enclosures from each wooden pole.  G4S  will terminate the power and communication cabling on the poles inside weather‐proof  enclosures.   5. G4S will provide traffic control required by the City of Palo Alto during installation work  at these intersections.  This will include the method‐of‐procedure (MOP) submitted to  the City of Palo Alto for review and approval, drawings/site plans, and schedule.    Refer to Section 3.0 ‐ Major Materials List (below) for the materials that will be installed at this  location.    2.5  Emergency Operations Center  1. G4S will install one (1) VMS server with integral storage and one (1) audio system server  in an existing equipment rack provided by the City of Palo Alto.  G4S will install a one (1)  new UPS and one (1) KVM with LCD monitor within the equipment rack.  2. G4S will install the Cat6 network patch cabling from the rack‐mounted equipment to the  existing network switch provided by the City of Palo Alto.     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB   3.0 MAJOR MATERIALS LIST    Item Manufacturer Description Qty  1 Avigilon Avigilon Control Center Enterprise Software 1  2 Avigilon Stentofon AlphaCom Integration Module 1  3 Avigilon Network Video Server/Recorder 1  4 APC UPS: Server 1  5 APC UPS: Battery Set 1  6 CSC KVM Switch 1  7 Comnet Managed Ethernet Switch  5  8 Alpha Tech Rugged UPS System w/batt 5  9 Avigilon Outdoor Multisensor camera 4  10 Avigilon Video Analytics Appliance. 4 port, 2TB 9  11 Avigilon 7k HD Pro Camera  8  12 FLIR PTZ Thermal/Visible Light Camera 5  13 G4S Camera Site Signage 5  14 Zenitel XE1 Exchange 1  15 Zenitel Network Horn Loudspeaker 4  16 Zenitel Desk Master w/Handset & Display  2      DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  22 2016  BOND FORMS  PERFORMANCE BOND     WHEREAS, the City Council of the City of Palo Alto, State of California (“City”) and       ,                         (“Principal”) have entered into a Design‐Build Contract dated      , and identified as       (“Agreement”), which is  hereby referred to and made a part hereof whereby Principal agrees to design and build certain designated public  improvements; and     WHEREAS, Principal is required under the terms of said Agreement to furnish a surety bond for the faithful  performance of said agreement.     NOW, THEREFORE, Principal and _______________________________________________, as Surety,  incorporated under the Laws of the State of      , and duly authorized to transact business as an admitted surety,  under the Laws of the State of California, are held and firmly bound unto City in the penal sum of       dollars  ($     ) for the Construction Services, for the payment whereof Principal and Surety bind themselves, their heirs,  executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.    The condition of this obligation is such that if the Principal, Principal’s heirs, executors, administrators, successors, or  assigns shall promptly and faithfully keep and perform the covenants, conditions, and provisions of the above‐ mentioned Agreement and any alteration thereof, with or without notice to the Surety, and if Principal shall satisfy all  claims and demands incurred under such Agreement and shall fully protect, indemnify, defend, and hold harmless  City, its officers, agents, and employees from all claims, demands, or liabilities which may arise by reason of Principal’s  failure to do so, and shall reimburse and repay City all outlay and expenses which City may incur in making good any  default, then this obligation shall be null and void; otherwise, it shall remain in full force and effect.    As part of the obligations secured hereto, and in addition to the face amount specified therefore, there shall be  included costs and reasonable expenses and fees, including reasonable attorney’s fees incurred by City in successfully  enforcing such obligations, all to be taxed as costs and included in any judgment rendered.  Surety shall be liable for  any liquidated damages for which the Principal may be liable under its Agreement with the City, and such liquidated  damages shall be part of the obligations secured hereto, and in addition to the face amount specified therefore.    The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the  Agreement or to the work to be performed thereunder or the specifications accompanying the same, shall in any way  affect its obligations on this security, and it does hereby waive notice of any such change, extension of time,  alteration, or addition to the terms of the Agreement or to the work or to the Contract Documents.  Surety hereby  waives the provisions of California Civil Code Section 2845 and 2849.  The City is the principal beneficiary of this bond  and has all rights of a party hereto.    / /    / /    / /    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  23 2016  BOND FORMS   IN WITNESS WHEREOF, this instrument has been duly executed by the Principal Surety above named on  _______________, 20_____.                      _______________    Phone Number:     ______          Name of Surety                   _________                            Signature of Surety    By:                    Its:           Typed or Printed Name      Title              _________                       Name of DBE/Principal          ________    Signature of DBE/Principal             By:                     Its:              Typed or Printed Name      Title      CERTIFICATE OF ACKNOWLEDGMENT  (Civil Code § 1189)    STATE OF     )    COUNTY OF    )     On          , before me,     , a notary public in and for said County,  personally appeared     , who proved to me on the basis of satisfactory evidence to be  the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they  executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument  the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.     I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and  correct.      WITNESS my hand and official seal.             (Seal)      DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  24 2016  BOND FORMS  PAYMENT BOND     WHEREAS, the City Council of the City of Palo Alto, State of California (“City”) and      , (“Principal”), have  entered into a Design‐Build Contract dated      , and identified as       (“Agreement”), which is hereby referred to  and made a part here of, whereby Principal agrees to design and build certain designated public improvements; and     WHEREAS, under the terms of said Agreement, Principal is required before entering upon the performance of  the work to file a good and sufficient payment surety bond with City to secure the claims to which reference is made  in Titles 1 and 3 (commencing with Section 8000) of Part 6 of Division 4 of the Civil Code of the State of California.     NOW, THEREFORE, Principal and ________________________________________________, as Surety,  incorporated under the laws of the State of _______________________________, and duly authorized to transact  business as an admitted surety, under the Laws of the State of California, are held and firmly bound unto City in the  penal sum of       dollars ($     ), this amount being not less than one hundred percent of the total amount  payable for the Construction Services by the terms of the Agreement per Civil Code section 9554, for the payment  whereof Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly  and severally, firmly by these presents.       The condition of this obligation is such that if Principal, Principal’s Subcontractors, heirs, executors,  administrators, successors, or assigns shall fail to pay any of the persons, companies, or corporations, referred to in  Section 9100 of the California Civil Code, as amended, with respect to any work of labor performed or materials  supplied by any such persons, companies, or corporations, which work, labor, or materials are covered by the above‐ mentioned Agreement and any amendments, changes, change order, additions, alterations, or modifications thereof,  or any amounts due under the California Unemployment Insurance Code with respect to such work or labor, or for any  amounts required to be deducted, withheld, and paid over to the Employment Development Department from the  wages of employees of the Principal and its Subcontractors pursuant to Section 13020 of the Unemployment  Insurance Code, as amended, with respect to such work and labor, the Surety will pay for the same, in an amount not  exceeding the sum herein above specified, and also, in case suit is brought upon this bond, the Surety will pay  reasonable attorney’s fees in an amount to be fixed by the court.       It is hereby expressly stipulated and agreed that this surety bond shall inure to the benefit of any and all  persons, companies, and corporations entitled named in Section 9100 of the California Civil Code, as amended, so as  to give a right of action to them or their assigns in any suit brought upon this surety bond.       The Surety hereby stipulates and agrees that no amendment, change, change order, addition, alteration, or  modification to the terms of the Agreement of the work to be performed thereunder or the Contract Documents  accompanying the same, shall in any way affect its obligations on this surety bond, and it does hereby waive notice of  any such amendment, change, change order, addition, alteration, or modification to the terms of the Agreement or to  the work performed thereunder or to the Contract Documents accompanying the same.  Surety hereby waives the  provisions of California Civil Code Sections 2845 and 2849.  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  25 2016  BOND FORMS   IN WITNESS WHEREOF, this instrument has been duly executed by the Surety and Principal above named on  ______________, 20___.                 __         Phone Number:     ______________          Name of Surety                       __                      Signature of Surety    By:                    Its:             Typed or Printed Name      Title                     __                Name of DBE/Principal              Signature of DBE/Principal             By:                     Its:              Typed or Printed Name      Title            CERTIFICATE OF ACKNOWLEDGMENT  (Civil Code § 1189)    STATE OF     )  COUNTY OF    )     On          , before me,     , a notary public in and for said County,  personally appeared     , who proved to me on the basis of satisfactory evidence to be  the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they  executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument  the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.     I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and  correct.      WITNESS my hand and official seal.           DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  26 2016    PART 6 – GENERAL CONDITIONS                      CITY OF PALO ALTO  DESIGN‐BUILD  GENERAL CONDITIONS    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  27 2016    PART 6 – GENERAL CONDITIONS  GENERAL CONDITIONS  TABLE OF CONTENTS      ARTICLE 1 – PRELIMINARY PROVISIONS ............................................................................................................ 30  1.1 DEFINITIONS .................................................................................................................................... 30  1.2 OWNERSHIP AND USE OF DOCUMENTS .......................................................................................... 36  1.3 INTERPRETATION OF CONTRACT DOCUMENTS .............................................................................. 36  ARTICLE 2 – CITY’S RIGHTS AND OBLIGATIONS ................................................................................................. 38  2.1 INFORMATION AND SERVICES PROVIDED BY CITY .......................................................................... 38  2.2 ACCESS TO PROJECT SITE ................................................................................................................. 38  2.3 CITY'S RIGHT TO STOP THE WORK ................................................................................................... 39  2.4 CITY’S RIGHT TO CARRY OUT THE WORK ......................................................................................... 39  2.5 ACCESS TO MUNICIPAL SERVICES CENTER ...................................................................................... 39  2.6 EMERGENCY TERMINATION OF CONTRACT .................................................................................... 39  ARTICLE 3 – DBE’S RIGHTS AND OBLIGATIONS .................................................................................................. 39  3.1 REVIEW OF THE SITE, CONTRACT DOCUMENTS AND FIELD CONDITIONS ...................................... 39  3.2 SUPERVISION AND CONSTRUCTION PROCEDURES ......................................................................... 40  3.3 RESPONSIBILITY FOR THE WORK ..................................................................................................... 41  3.4 LABOR, WORKMANSHIP, MATERIALS AND MANUFACTURED ITEMS ............................................. 41  3.5 DBE'S WARRANTY ............................................................................................................................ 42  3.6 CONSTRUCTION METHODS AND PROCEDURES .............................................................................. 42  3.7 TAXES .......................................................................................................................................... …..42  3.8 LEGAL REQUIREMENTS .................................................................................................................... 42  3.9 PROJECT STAFF ................................................................................................................................ 43  3.10 SCHEDULES REQUIRED OF DBE ........................................................................................................ 43  3.11 DOCUMENTS AND SAMPLES AT PROJECT SITE ................................................................................ 45  3.12 SUBMITTALS .................................................................................................................................... 45  3.13 TRADE NAMES, SUBSTITUTIONS ...................................................................................................... 47  3.14 DAILY REPORTS BY DBE .................................................................................................................... 48  3.15 CUTTING AND PATCHING ................................................................................................................ 48  3.16 ACCESS TO THE WORK ..................................................................................................................... 49  3.17 ROYALTIES AND PATENTS ................................................................................................................ 49  3.18 PERMITS AND LICENSES ................................................................................................................... 49  3.19 DIFFERING SITE CONDITIONS .......................................................................................................... 49  3.20 INSPECTIONS .................................................................................................................................... 50  3.21 STOP NOTICES .................................................................................................................................. 51  3.22 PARKING .......................................................................................................................................... 51  3.23 USE OF THE PROJECT SITE AND CLEAN UP ...................................................................................... 51  3.24 ENVIRONMENTAL CONTROLS .......................................................................................................... 52  3.25 TEMPORARY WATER, LIGHT AND POWER ....................................................................................... 58  3.26  CITY TRUCK ROUTE ORDINANCE ..................................................................................................... 58  3.27 UNFAIR BUSINESS PRACTICE CLAIMS .............................................................................................. 58  3.28 EXISTING UTILITIES .......................................................................................................................... 58  ARTICLE 4 – ADMINISTRATION OF THE CONTRACT ........................................................................................... 59  4.1 CONTRACT ADMINISTRATION BY CITY, DESIGN CONSULTANT AND CONSTRUCTION    MANAGER ........................................................................................................................................ 59  4.2 CLAIMS ............................................................................................................................................. 60  4.3 RESOLUTION OF CONTRACT DISPUTES ............................................................................................ 63  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  28 2016    PART 6 – GENERAL CONDITIONS  ARTICLE 5 – SUBCONTRACTORS ........................................................................................................................ 66  5.1 DBE’S AWARD OF SUBCONTRACTS .................................................................................................. 66  5.2 SUBCONTRACTOR RELATIONS ......................................................................................................... 66  5.3 CONTINGENT ASSIGNMENT OF SUBCONTRACTS ............................................................................ 67  5.4 DBE AND SUBCONTRACTOR RESPONSIBILITY .................................................................................. 68  ARTICLE 6 – CONSTRUCTION BY CITY OR BY SEPARATE CONTRACTORS ............................................................ 68  6.1 CITY’S RIGHT TO PERFORM CONSTRUCTION AND TO AWARD SEPARATE CONTRACTS .................. 68  6.2 MUTUAL RESPONSIBILITY ................................................................................................................ 68  6.3 CITY’S RIGHT TO CLEAN UP .............................................................................................................. 69  ARTICLE 7 – CHANGES ...................................................................................................................................... 69  7.1 CHANGES .......................................................................................................................................... 69  7.2 CHANGE ORDERS AND CHANGE ORDER REQUESTS ........................................................................ 70  7.3 FIELD ORDERS .................................................................................................................................. 74  7.4 DISPUTES REGARDING CHANGES ..................................................................................................... 75  ARTICLE 8 – CONTRACT TIME ............................................................................................................................ 75  8.1 COMMENCEMENT OF THE WORK ................................................................................................... 75  8.2 PROGRESS AND COMPLETION ......................................................................................................... 75  8.3 CONSTRUCTION HOURS ................................................................................................................... 76  8.4 HOLIDAYS ......................................................................................................................................... 76  8.5 DELAY ............................................................................................................................................... 77  ARTICLE 9 – PAYMENTS AND COMPLETION ...................................................................................................... 79  9.1 SCHEDULE OF VALUES...................................................................................................................... 79  9.2 PROGRESS PAYMENT ....................................................................................................................... 79  9.3 APPLICATION FOR PAYMENT ........................................................................................................... 79  9.4 CERTIFICATE FOR PAYMENT ............................................................................................................ 81  9.5 DEPOSIT OF SECURITIES IN LIEU OF RETENTION AND DEPOSIT OF RENTENTION INTO ESCROW ... 82  9.6 BENEFICIAL OCCUPANCY ................................................................................................................. 82  9.7 SUBSTANTIAL COMPLETION ............................................................................................................ 84  9.8 FINAL COMPLETION AND FINAL RETENTION ................................................................................... 84  ARTICLE 10 – PROTECTION OF PERSONS AND PROPERTY .................................................................................. 85  10.1 SAFETY PRECAUTIONS AND PROGRAMS ......................................................................................... 85  10.2 SAFETY OF PERSONS AND PROPERTY .............................................................................................. 86  10.3 EMERGENCIES .................................................................................................................................. 87  10.4 TRENCH SAFETY ............................................................................................................................... 87  ARTICLE 11 – INSURANCE AND BONDS ............................................................................................................. 88  11.1 DBE'S INSURANCE ............................................................................................................................ 88  11.2 BOND REQUIREMENTS .................................................................................................................... 90  ARTICLE 12 – DEFECTIVE WORK ........................................................................................................................ 91  12.1 UNCOVERING OF WORK .................................................................................................................. 91  12.2 CORRECTION OF DEFECTIVE WORK AND GUARANTEE TO REPAIR PERIOD .................................... 91  12.3 ACCEPTANCE OF DEFECTIVE WORK ................................................................................................. 92  ARTICLE 13 – STATUTORY REQUIREMENT ......................................................................................................... 93  13.1 STATE LABOR LAW ........................................................................................................................... 93  13.2 WORKDAY ........................................................................................................................................................ 93       DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  29 2016    PART 6 – GENERAL CONDITIONS  ATTACHMENTS:  A: FIELD ORDER  B: CHANGE ORDER REQUEST  C: CONTRACT CHANGE ORDER   DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  30 2016    PART 6 – GENERAL CONDITIONS  ARTICLE 1 – PRELIMINARY PROVISIONS    1.1 DEFINITIONS    Terms appearing in the Contract Documents with initial capitalization shall have the meanings set forth  below:     ACCEPTANCE:  The point after Final Completion when DBE has fully performed all of the  requirements of the Contract Documents and the Work is accepted by City in writing.     ADDENDA, ADDENDUM:  Written or graphic information (including, without limitation, Drawings  or Special Provisions and technical specifications) prepared and issued by City Engineer prior to the  deadline for submission of Proposals, which modify or interpret the Request for Proposals by additions,  deletions, clarifications or corrections.     AGREEMENT:  The Design‐Build Contract and all Contract Documents incorporated therein; also  referenced as the “Contract.”     ALLOWABLE COSTS:   Actual and direct costs for performing Extra Work, including labor, materials,  supplies, and equipment, as further specified herein, in Article  7 – Changes.      ALLOWANCE:  An amount included in the Request for Proposals that may or may not be included  in the Project, or for portions of the Design‐Build Services where the amount or scope of the Design‐Build  Services cannot be ascertained at the time of Proposal submissions.       ALTERNATE(S):  Those portions of the Proposal setting forth the price(s) for optional or alternative  items not covered by the Base Proposal.     APPLICABLE CODE REQUIREMENTS:  All applicable federal, state and municipal laws, statutes,  building codes, ordinances and regulations of governmental authorities having jurisdiction over the Project,  Work, Site, DBE or City.     APPLICATION FOR PAYMENT:  An itemized application for payment prepared and submitted by  DBE for review and approval by City, which is prepared, submitted and accompanied by supporting  documentation in accordance with the requirements of the Contract Documents.       APPROVE, APPROVED or APPROVAL:  Whether capitalized or not capitalized, shall mean, unless  otherwise stated, either an express approval contained in a written statement signed by the approving  authorized individual or deemed approved in accordance with the terms, conditions and procedures set  forth in the Contract Documents.  All such approvals by or on behalf of City (including, without limitation,  approvals by Construction Manager) may be granted or withheld in the sole discretion of City.     AS‐BUILT DOCUMENTS:  The Project Drawings showing the condition of the Work as actually built,  including, without limitation, the locations of mechanical, electrical, plumbing, HVAC or similar portions of  the Work that are shown diagrammatically in the Construction Documents approved by City.  These  documents must be maintained by DBE on the Site and delivered, along with an electronic version of the  set, to City upon Final Completion.     BASE PROPOSAL PRICE:  The sum stated in the Proposal to provide the Design‐Build Services,  exclusive of any Alternate(s).     BENEFICIAL OCCUPANCY:  City's right, at its option and convenience, to occupy or otherwise make  use of all or any part of the Work prior to either Substantial Completion, Final Completion, or Acceptance.      DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  31 2016    PART 6 – GENERAL CONDITIONS   BRIDGING DOCUMENTS:  The criteria and requirements set forth in the  Scope of Services  provided as Attachment B to the RFP, and all attachments and appendices thereto, including any  modifications approved by City in writing.     CERTIFICATE FOR PAYMENT: The form for approval by the Construction Manager of DBE's  Application for Payment.      CHANGE:  Additions, deletions, or other modifications to the Work, which may or may not involve  Extra Work and which may or may not involve an adjustment (increase or decrease) to the Contract Sum or  the Contract Time under the terms of the Contract Documents.     CHANGE ORDER:  A duly authorized written instrument signed by City, or by City and DBE, which  operates to amend the scope of Work, and which may also amend the Contract Sum or the Contract Time.     CHANGE ORDER REQUEST:  DBE's written request for a Change Order.     CITY:  City of Palo Alto, a California chartered municipal corporation.     CITY ENGINEER:  City Engineer of City of Palo Alto or its designee.     CLAIM:  A separate written demand by DBE for an extension of the Contract Time, and/or for  payment of money or damages arising from Work done by, or on behalf of DBE which has been prepared  and submitted in compliance with the Contract Documents.       CLIENT DEPARTMENT:  Department or Division of City of Palo Alto identified as the end user of the  facilities.     COMPENSABLE DELAY: A Delay for which DBE may be entitled under the Contract Documents to  both an extension of the Contract Time and an adjustment of the Contract Sum for additional  compensation.       CONSTRUCTION DOCUMENTS:  The final Design Documents prepared by DBE and approved by  City for construction of the Project.     CONSTRUCTION MANAGER: The City designated employee, project manager or an individual,  partnership, corporation, joint venture or other legal entity under contract with City to perform  construction management services for the Project.  The term "Construction Manager" means Construction  Manager or Construction Manager's authorized representative.    CONSTRUCTION SCHEDULE: The Approved graphical representation of DBE’s as‐planned schedule  for performance of the Work, and all Approved updates thereto, prepared in accordance with the  requirements of the Contract Documents and that provides for Substantial Completion of the Work within  the Contract Time.     CONSTRUCTION SERVICES:  All of the Work required to construct the Project in accordance with  the Approved Construction Documents, including, but not limited to all services required to be performed  or customarily provided by a licensed general contractor, and excluding Design Services.     CONTRACT:  The Design‐Build Contract and all Contract Documents incorporated therein.     CONTRACT DISPUTE: A dispute arising out of or related to the Design‐Build Contract or the  interpretation, enforcement or breach thereof, except as specified in Article 4 herein.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  32 2016    PART 6 – GENERAL CONDITIONS   CONTRACT DISPUTE RESOLUTION PROCESS: The process of resolution of Contract Disputes, and,  upon election of City, disputes as set forth in Article 4 of these General Conditions.     CONTRACT DOCUMENTS: This term shall be as defined in Section 3 of the Design‐Build Contract.     CONTRACT SUM: The total amount of compensation stated in the Design‐Build Contract that is  payable to DBE for the performance of the Work in accordance with the Contract Documents, including  adjustments made by Change Order.      CONTRACT TIME:  The total number of days set forth in the Design‐Build Contract within which  Substantial Completion of the Work must be achieved by DBE, including any adjustments of time (increases  or decreases) made by Change Order.      DBE MARKUP:  A fixed sum calculated as ten percent (10%) of applicable Allowable Costs incurred  by DBE or Subcontractor for performing Extra Work with its own forces, which is deemed to be full  compensation for DBE’s or Subcontractor’s indirect costs associated with Extra Work, including, overhead,  profit, and other indirect costs not included in the Allowable Costs.  DBE Markup is separate from and does  not include Subcontractor Markup as defined herein.      DAY: Whether capitalized or not, unless otherwise specifically provided, means calendar day,  including weekends and legal holidays.     DEFECTIVE WORK: Work by DBE that is unsatisfactory, faulty, omitted, incomplete, deficient or  does not conform to the Applicable Code Requirements, the Contract Documents, the directives of City or  the requirements of any inspection, reference standard, test, code or approval specified in the Contract  Documents.     DELAY:  Whether capitalized or not, includes any circumstances involving disruption, hindrance, or  interference in the performance of the Work within the Contract Time.      DELETED WORK:  Work that is eliminated due to a Change in the Work requested by City or DBE  for which City is entitled to a deductive adjustment in the Contract Sum.      DESIGN‐BUILD ENTITY or DBE:  The partnership, corporation, joint venture or other legal entity  under contract to provide both the Design Services and the Construction Services for the Project.     DESIGN‐BUILD TEAM or DBT: The DBE itself and the individuals and other entities identified by the  DBE in its Proposal as members of its team, which may include Design Professionals, a general contractor  and subcontractors.     DESIGN‐BUILD SERVICES:  All of the Construction Services and the Design Services which must be  performed to completely design and construct the Project in accordance with the Contract Documents.     DESIGN CONSULTANT:  The individual(s) or firm(s) responsible for preparing the Bridging  Documents for the Project.  The term "Design Consultant" means Design Consultant or Design Consultant's  authorized representative, but does not mean the DBE, the architect of record or the engineer of record  for the Project.     DESIGN DEVELOPMENT DOCUMENTS:  The Design Documents prepared by DBE and approved by  City for preparation of the final Construction Documents.     DESIGN DOCUMENTS:  The plans and specifications developed by DBE as part of the Design  Services, including, collectively, the Design Development Documents and Construction Documents.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  33 2016    PART 6 – GENERAL CONDITIONS   DESIGN PROFESSIONAL:  An architect, engineer, landscape architect or land surveyor licensed and  in good standing under the applicable provisions of the Business and Professions Code, who is retained by  DBE to provide Design Services for the Project.     DESIGN SERVICES:  All services necessary to design the Project in conformance with the Bridging  Documents, including, but not limited to all services required to be provided by or under the direction of a  Design Professional, and excluding the Construction Services.     DRAWINGS:  The graphic and pictorial portions of the Contract Documents showing the design,  location, and dimensions of the Work, generally including plans, elevations, subparagraphs, details,  schedules and diagrams.  The term “Drawings” may be used interchangeably with "Plans."     ESCROW AGENT:  A state or federally chartered bank in the State of California which holds  securities pursuant to an escrow agreement as set forth in Section 9.5 of these General Conditions.     EXCUSABLE DELAY:  A Delay for which DBE may be entitled under the Contract Documents to an  extension of time, but not compensation.       EXISTING IMPROVEMENTS:  All improvements located on the Site as of the date of execution of  the Design‐Build Contract, whether above or below the surface of the ground, including but not limited to  existing buildings, utilities, infrastructure improvements and other facilities.     EXTRA WORK:  Additional Work or costs due to a Change in the Work that is not described in or  reasonably inferable from the Contract  Documents, which may be the basis for an adjustment of the  Contract Sum and/or the Contract Price under the terms of the Contract Documents.  Extra Work shall not  include additional Work or costs arising from DBE’s failure to perform any of its duties or obligations under  the Contract Documents.      FIELD ORDER:  A written instrument signed by the City or its Construction Manager that authorizes  and directs performance of the Work described therein, and which may or may not include adjustments  (increase or decrease) to the Contract Sum and/or Contract Time.     FINAL COMPLETION:  Full completion of all Work required by the Contract Documents, including  all punch list items, and submission of Record Documents, all to City’s satisfaction.      FINAL PAYMENT:  Final payment of the Contract Sum following Final Completion, including release  of undisputed retention, less any amounts withheld or offset pursuant to the Contract Documents,  including, but not limited to, liquidated damages, unreleased stop notices, amounts subject to setoff, and  up to 150% of unresolved third‐party claims for which DBE is required to indemnify City, and up to 150% of  any amounts in dispute as authorized by Public Contract Code Section 7107.        FRAGNET: A “Fragnet”, sometimes referred to as “time impact analysis,” is a contemporaneous,  fragmentary scheduling network, which graphically identifies the sequencing of all critical and non‐critical  new activities and/or activity revisions affected by a Change Order or Delay, with logic ties to all affected  existing activities noted on the Construction Schedule.  Its objective is to isolate and quantify any time  impact of a specific issue, determine and demonstrate any such specific Delay in relation to past and/or  other current Delays and to provide a method for incorporating adjustments to the Contract Time into the  Construction Schedule.     GENERAL CONDITIONS:  That portion of the Contract Documents relating to the administrative  procedures to be followed by DBE in carrying out the Work.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  34 2016    PART 6 – GENERAL CONDITIONS   HAZARDOUS SUBSTANCES:  Refers to, without limitation, the following:  any chemical, material or  other substance defined as or included within the definition of hazardous substances, hazardous materials,  hazardous wastes, extremely hazardous substances, toxic substances, toxic material, restricted hazardous  waste, special waste, universal wastes or words of similar import under any Environmental Law.     LOSSES:  Any and all losses, costs, liabilities, Claims, damages, liquidated damages, actions,  judgments, settlements, expenses, fines and penalties.  "Losses" do not include attorneys' fees.      NOTICE OF AWARD:  Written notice issued by City notifying DBE of issuance of the Design‐Build  Contract.     NOTICE TO PROCEED:  Written notice issued by City to DBE to begin the Design‐Build Services.     PERFORMANCE BOND, PAYMENT BOND:  The performance and payment bonds to be provided by  DBE for the Construction Services.     PLANS:  The graphic and pictorial portions of the Contract Documents showing the design,  location and dimensions of the Work, generally including plans, elevations, subparagraphs, details,  schedules and diagrams.  The term “Plans” may be used interchangeably with "Drawings."     PRE‐CONSTRUCTION MEETING: A meeting held with the Project Team prior to beginning  construction in order to review Contract Documents and clarify roles, responsibilities and authority of the  Project Team.     PROJECT:  The total design and construction, of which the Design‐Build Services provided by DBE  under the Contract Documents may be the whole or part and which may include Work performed by City’s  own forces or by Separate Contractors, of the public improvement(s) specified in the RFP.     PROJECT TEAM: Collectively, the DBE, City, Design Consultant, Construction Manager and other  consultants and Contractors providing professional and technical consultation for the design and  construction of the Project.     PROPOSAL:  The written proposal submitted to City by the DBE in response to City’s Request for  Proposals.     PROPOSER:  An individual or entity that submits a Proposal.     RECORD DOCUMENTS:  The term “Record Documents” refers to, collectively, the As‐Built  Documents, warranties, guarantees and other documents required to be submitted by DBE as a condition  of Final Completion.     REQUEST FOR INFORMATION: A written instrument, prepared by DBE, which requests an  interpretation or clarification of the Design‐Build Services or a response to a question concerning the  Design‐Build Services.  A Request for Information does not entitle DBE to an adjustment in the Contract  Sum unless it requires Extra Work and DBE requests and is entitled to such an adjustment in accordance  with the provisions of the Contract Documents.     REQUEST FOR INFORMATION RESPONSE:  A written instrument, prepared by City or the Design  Consultant, which sets forth an interpretation or clarification or a response to a DBE question concerning  the Design‐Build Services.     REQUEST FOR PROPOSALS or RFP:  The City’s formal, written request for Design‐Build Services for  the Project and the Contract Documents provided with or incorporated into the RFP.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  35 2016    PART 6 – GENERAL CONDITIONS   SCHEDULE OF VALUES: A detailed, itemized breakdown of the Contract Sum, which provides for a  fair and reasonable allocation of the dollar values to each of the various parts of the Design‐Build Services.      SEPARATE CONTRACTOR: A person or firm under separate contract with City or other entity  performing other Work at the Site.     SITE: The physical site or sites located within City where the Project is to be constructed, including  all adjacent areas for staging, storage, parking and temporary offices.     SPECIAL PROVISIONS: The portions of the Contract Documents consisting of additional written  requirements for materials, equipment, standards, skill, quality for the Design‐Build Services.  These  provisions may also contain amendments, deletions or additions to the General Conditions.     STATEMENT OF CONTRACT DISPUTE: The DBE’s written statement prepared in accordance with  Article 4 of these General Conditions required as a condition of its initiating the Contract Dispute  Resolution Process set forth in the Design‐Build Contract.     SUBCONTRACTOR:  A person or firm that has a contract with a DBE to perform a portion of the  Work. The term "Subcontractor" includes suppliers and vendors and is referred to throughout the Contract  Documents as if singular in number and means a Subcontractor or an authorized representative of the  Subcontractor.  “Subcontractor” includes Subcontractors of any tier.     SUBCONTRACTOR MARKUPS:  A fixed sum calculated as fifteen percent (15%) of the  Subcontractor’s Allowable Costs incurred by Subcontractor for performing Extra Work, which is deemed to  be full compensation for DBE’s indirect costs for having the Extra Work performed by the Subcontractor,  including, overhead, profit, and other indirect costs not included in Allowable Costs.  Subcontractor  Markup is separate from and does not include DBE Markup as defined herein.      SUBMITTALS:  All shop drawings, samples, exemplars, product data and other submittals required  to be submitted to the City by DBE under the Contract Documents.     SUBSTANTIAL COMPLETION, SUBSTANTIALLY COMPLETE:  As determined by City, the point at  which the Work is sufficiently complete to be occupied and utilized by City for its intended purpose, and  DBE has fulfilled its obligations under the Contract Documents, except for minor punchlist items which do  not impair City's ability to so occupy and utilize the Project.     SUPERINTENDENT:  The person appointed by DBE, subject to approval by City, to supervise and  coordinate DBE's own forces and Subcontractors in all aspects of the Construction Services.     UNEXCUSED DELAY: Any Delay in the path of activities that is critical to Substantial Completion of  the Work within the Contract Time and which Delay is not attributable to the City.  An Unexcused Delay  shall not entitle DBE to either an extension of the Contract Time or an adjustment of the Contract Sum.  To  the extent an Unexcused Delay is concurrent with an Excused Delay, the Excusable Delay shall be  conclusively deemed an Unexcused Delay.     WORK:  All labor, materials, equipment, services, permits, fees, licenses and taxes, and all other  things necessary for DBE to fully perform its obligations for providing the Design‐Build Services for the  Project, including, without limitation, any changes or additions requested by City, in accordance with the  Contract Documents and all Applicable Code Requirements.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  36 2016    PART 6 – GENERAL CONDITIONS  1.2 OWNERSHIP AND USE OF DOCUMENTS     1.2.1 All originals, copies and electronic forms of Plans and Drawings, technical specifications,  (including, without limitation, the Bridging Documents) shall not be used by DBE, or any Subcontractor, for  any purpose other than providing the Design‐Build Services for the Project.  DBE and Subcontractors are  granted a limited license, revocable at will by City, to use and reproduce applicable portions of the Contract  Documents appropriate to and for providing Design‐Build Services under the Contract Documents;  provided however, that such use shall not reduce City’s rights to use and ownership of the documents.     1.2.2 DBE shall keep on the Site of the Project, at all times, a complete set of City approved,  permitted Contract Documents for use by City.      1.2.3 Proposed Changes or refinements and clarifications to the Approved Construction  Documents will be provided to DBE in the form of reproducible prints. DBE shall, at its own expense and  without adjustment to the Contract Sum, reproduce and distribute such prints as are necessary for the  complete pricing of the Change and for performance of the Work.     1.2.4 DBE shall include a provision in all contracts with Subcontractors who perform Work on  the Project, protecting and preserving City’s rights to ownership and use of documents as set forth in this  Section 1.2.      1.3 INTERPRETATION OF CONTRACT DOCUMENTS     1.3.1 The Contract Documents are complementary and what is required by one shall be as  binding as if required by all.     1.3.2 In general, the Drawings will show dimensions, positions, and type of construction to be  completed; and the Special Provisions and technical specifications will define materials, quality and  standards. Any Work called for on the Drawings and not mentioned in the Special Provisions and technical  specifications, or vice versa, shall be performed as though fully set forth in both. Work not particularly  detailed, marked or specified, shall be the same as similar parts that are detailed, marked or specified.     1.3.3 Unless otherwise stated in the Contract Documents, technical words and abbreviations  contained in the Contract Documents are used in accordance with commonly understood construction  industry meanings and non‐technical words and abbreviations are used in accordance with their commonly  understood meanings.     1.3.4 The Contract Documents may omit modifying words such as "all" and "any," and articles  such as "the" and "an."  If a modifier or an article is not included in one statement and appears in another  it is not intended to affect the interpretation of either statement.  The use of the word "including," when  following any general statement, shall not be construed to limit such statement to specific items or matters  set forth immediately following such word or to similar items or matters whether or not non‐limiting  language (such as "without limitation," "but not limited to," or words of similar import) is used with  reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably  fall within the broadest possible scope of such general statement.     1.3.5 Whenever the context so requires, the use of the singular number shall be deemed to  include the plural and vice versa.  Each gender shall be deemed to include the other gender, and each shall  include corporation, partnership, trust, or other legal entity whenever the context so requires.  The  captions and headings of the various subdivisions of the Contract Documents are intended only as a matter  of reference and convenience and in no way define, limit, or prescribe the scope or intent of the Contract  Documents or any subdivision thereof.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  37 2016    PART 6 – GENERAL CONDITIONS   1.3.6 Any cross‐references indicated between various subparagraphs or Drawings and  Documents are provided for the DBE’s convenience and shall not be all‐inclusive.     1.3.7 Unless specifically noted to the contrary, all Work, equipment, casework, mechanical,  electrical and similar devices of whatever nature in the Contract Documents shall be completely installed,  hooked‐up, made operational and made functional for the purpose such are intended, and all costs  therefore are included in the Contract Sum.     1.3.8 Figured dimensions on scale Drawings and on full size Drawings shall govern over scale  Drawings without figured dimensions. The Drawings shall not be scaled to determine dimensions, and  (except in the case of diagrammatic Drawings) shall be calculated from figures shown on the Drawings.   Obvious discrepancies between scale and figured dimensions, unless marked "not to scale," must be  brought to the Construction Manager's attention before proceeding with the Work affected by the  discrepancy.     1.3.9 If there is a conflict between any of the Contract Documents, DBE shall immediately bring  such conflict to the attention of City, whose decisions regarding such conflict shall be final and binding as  to the requirements of the Contract Documents.  In the event of any conflicts between or among the  Applicable Code Requirements, the more stringent shall govern.  In the event a conflict between any of the  Contract Documents is not resolved by the order of precedence established in the Contract Documents,  the highest standard of quality and skill, the most stringent requirements, and the most specific provision  of the Contract Documents shall govern and shall be required in the performance of the Design‐Build  Services.      1.3.10 The general character of the Design‐Build Services is shown in the Bridging Documents,  but Changes, modifications, clarifications and refinements may be made in details when needed to more  fully explain the Work.  Provided that they are a logical evolution of the Bridging Documents that were  provided with the Request for Proposals or were reasonably inferable as necessary to provide a completed  and fully operational system, facility or structure, the same shall be considered part of the scope of the  Design‐Build Services to be provided without adjustment in the Contract Sum or the Contract Time.       1.3.11 Where on any Drawing a portion of the Work is drawn out and the remainder is indicated  in outline, the drawn‐out parts shall apply also to all other like portions of the Work.     1.3.12 DBE will provide all necessary professional services, labor, equipment, transportation and  incidentals required to complete the Design‐Build Services, even if the Contract Documents do not describe  the Work in complete detail.     1.3.13 Drawings and diagrams for mechanical, plumbing and electrical Work shall be considered  as diagrammatic only and shall not to be used for any structural guidance or physical layout, unless  specifically detailed or dimensioned, and DBE shall be responsible to provide any and all numbers and  lengths of mechanical, plumbing or electrical fittings, wire, conduit, connections, attachments or similar  materials needed to complete the Work, at no adjustment to the Contract Sum or Contract Time, whether  or not they exceed the numbers of such pieces or the lengths indicated by the Drawings.      1.3.14 City, in its sole discretion, will interpret the Contract Documents and make the  determination of whether or not DBE has fulfilled the requirements of the Contract Documents.  Such  interpretations and decisions of City shall be final and binding upon DBE.     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  38 2016    PART 6 – GENERAL CONDITIONS  ARTICLE 2 – CITY’S RIGHTS AND OBLIGATIONS    2.1 INFORMATION AND SERVICES PROVIDED BY CITY     2.1.1 Except as otherwise provided in the Special Provisions and Bridging Documents, DBE shall  obtain and pay for any permits, easements and governmental approvals, including City building and related  permits, for the use or occupancy of permanent structures required in connection with the Design‐Build  Services.       2.1.2 Requests for Information Responses, Approvals and decisions required of City, Design  Consultant or Construction Manager under the Contract Documents shall be provided by the Construction  Manager to DBE upon request in a timely manner in order to avoid unreasonable Delay in the orderly and  sequential progress of the Design‐Build Services. Notwithstanding the foregoing, failure by City, Design  Consultant, Construction Manager or City’s other consultants to provide Request for Information  Response, Approvals or decisions shall not be considered as a basis for DBE to seek adjustment in the  Contract Time until ten (10) Days after DBE has delivered written notice to City and to the person from  whom such information, Approval or decision is requested, including the following:     (i) The notice must include the following statement: “You are hereby notified that certain  information, approval or decision described herein has not been provided in accordance with Paragraph  2.1.2 of the General Conditions and if not provided within ten (10) Days from this notice may result in  additional cost or a request for time extension due to Delay.”     (ii) A detailed description of the information, approval or decision required, accompanied by  copies of DBE’s prior written request(s).      (iii) The date by which the information, approval or decision must be received so as to not  result in Delay to the Project, which shall in no event be earlier than ten (10) Days after the date of  City’s receipt of such notice.     2.1.3 City’s failure to provide the requested information, approval or decision within ten (10) days  following receipt of the above notification will not entitle DBE to an increase in the Contract Sum or  Contract Time unless the delay was unreasonable under the circumstances and DBE requests an increase in  the Contract Sum and/or Contract Time by submitting a Change Order Request in compliance with Article 7  herein.  DBE will not be entitled to an increase in the Contract Time if the City’s delay in responding was 1)  reasonable under the circumstances, 2) caused by DBE’s failure to timely or properly submit its request for  information, or 3) the requested information was already provided or available to the DBE.    2.2 ACCESS TO PROJECT SITE(S)    City will make available, no later than the commencement date designated in the current construction  Schedule accepted by City, the lands and facilities upon which the Work is to be performed, including such  access and other lands and facilities designated in the Contract Documents, for use by DBE.    2.3 CITY'S RIGHT TO STOP THE WORK    If DBE fails to correct Defective Work as required by Section 12.2 of these General Conditions, fails to  perform the Work in accordance with the Contract Documents, or violates any Applicable Code  Requirement, City may, without terminating the Contract, direct DBE to stop the Work, or any portion  thereof, until the cause for such order has been eliminated by DBE.  DBE shall not be entitled to any  adjustment of Contract Time or Contract Sum as a result of any such order.  City shall have no duty or  responsibility to DBE or any other party to exercise the right to stop the Work.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  39 2016    PART 6 – GENERAL CONDITIONS  2.4 CITY’S RIGHT TO CARRY OUT THE WORK    If DBE fails to carry out the Work in accordance with the Contract Documents, fails to provide sufficient  labor, materials, equipment, tools and services to maintain the Construction Schedule, or otherwise fails to  comply with any requirement of the Contract Documents, and fails within the time specified in the  Contract Documents, after receipt of notice from City to promptly commence and thereafter diligently  continue to completion the correction of such failure, City may, without prejudice to other remedies City  may have and without terminating the Contract, correct such failure at DBE's expense.  In such case, City  shall be entitled to deduct from payments then or thereafter due DBE the cost of correcting such failure,  including compensation for the additional services and expenses of City and City's consultants made  necessary thereby.  If payments then or thereafter due DBE are not sufficient to cover such amounts, DBE  shall pay the additional amount to City.    2.5 ACCESS TO MUNICIPAL SERVICE CENTER     For all Projects which require DBE access to City’s Municipal Service Center (MSC), all DBEs shall provide  and all DBE’s personnel shall at all times display, in the form of badges, identification which shall include  the DBE’s name, the employee’s name, City’s Project Managers name and telephone number, and the  name and number of the Project being performed.  Badge identification information shall correspond with  information contained in the bearer’s driver license or with other City approved identification.  Any  discrepancies, or failure of DBE’s personnel to display proper identification, will in result their removal  from the Project, or in refusal of access to the MSC.    2.6 EMERGENCY TERMINATION OF CONTRACT    The Design‐Build Contract is subject to termination as provided by Section 4410 and Section 4411 of the  Government Code of the State of California, being portions of the Emergency Termination of Public  Contract Act of 1949.  In the event that the Design‐Build Contract is terminated pursuant to said section,  compensation to the DBE shall be determined on the basis of the reasonable value of the Design‐Build  Services completed, including preparatory work.  As an exception of the foregoing, in the case of any fully  completed separate item or portion of the work for which there is a separate unit or contract price, the  unit or contract price shall control.    ARTICLE 3 – DBE’S RIGHTS AND OBLIGATIONS    3.1 REVIEW OF THE SITE, CONTRACT DOCUMENTS AND FIELD CONDITIONS      3.1.1 DBE warrants that it is satisfied as to character, quality, and quantities of surface and  subsurface materials or obstacles to be encountered insofar as reasonably ascertainable from a careful  inspection of the Site (including, without limitation, Existing Improvements on the Site) and from the  geological investigation reports, data and similar information, if any, made available to DBE by City. Any  failure by DBE to take such information or conditions into consideration will not relieve DBE from  responsibility for estimating the difficulty and cost of successfully completing the Work within the Contract  Sum and Contract Time.     3.1.2 DBE warrants and represents that it has carefully reviewed the Proposal and Contract  Documents prior to submitting its Proposal and executing the Contract. The DBE shall not be entitled, and  conclusively waives any right, to an adjustment in the Contract Sum or Contract Time for any additional or  unforeseen costs or Delay in the performance of Work due to conditions in Contract Documents  constituting errors, omissions, conflicts, ambiguities, lack of coordination or noncompliance with  Applicable Code Requirements, if such conditions were either discovered by DBE or could have been  reasonably discovered by DBE or its Subcontractors in the exercise of care and diligence in the review of  the Contract  Documents, subject to the limitations of Public Contract Code Section 1104.     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  40 2016    PART 6 – GENERAL CONDITIONS   3.1.3 If DBE discovers what it perceives to be errors, omissions, conflicts, ambiguities, lack of  coordination or noncompliance with Applicable Code Requirements in the Contract Documents, then DBE  shall, within two (2) days of discovery, notify City or the Construction Manager in writing stating both of  the following:     (i) A detailed description of the conditions discovered.     (ii) DBE’s request for clarification, further details or correction of the Contract Documents.    Failure by DBE to provide written notice within the period of time required shall result in DBE waiving any  right to adjustment in the Contract Sum or Contract Time on account thereof.     3.1.4 If DBE believes it is entitled to an adjustment of the Contract Sum or Contract Time for  Extra Work based upon additional written or verbal instructions, information, or direction from City, Design  Consultant, or Construction Manager, it may submit a Change Order Request pursuant to Article 7 of the  General Conditions within ten (10) days of receipt of such instructions, information, or direction.     3.1.5 The DBE shall take field measurements of the existing field conditions verified. DBE shall  carefully compare the field conditions with the Contract Documents and other information known to DBE  before commencing the Work.  DBE shall promptly report in writing to the Construction Manager any  errors, inconsistencies, or omissions the DBE discovers.      3.1.6 If DBE performs any portion of the Work which it knows, or in the exercise of care and  diligence should have known, involves an error, omission, conflict, ambiguity, lack of coordination or  noncompliance with Applicable Code Requirements, without notifying and obtaining the written Approval  of City or before obtaining a written clarification, interpretation, instruction or decision from Construction  Manager, then any Work that is performed that is not in conformance with the clarifications,  interpretation, instruction or decision of City, Design Consultant or Construction Manager  shall be  removed or replaced and DBE shall be responsible for the resultant Losses with no adjustment in the  Contract Sum or Contract Time.     3.1.7 Existing improvements at the Site, for which no specific description is made on the  Drawings, but which could be reasonably assumed to interfere with the satisfactory completion of the  Work, shall be removed and disposed of by DBE, but only upon the specific direction and control of City.  Without limitation to the foregoing, and notwithstanding any information provided by City pertaining to  groundwater elevations and/or geological and soils conditions encountered, it is understood that it is DBE’s  responsibility to determine and allow for the elevation of groundwater, and the geological and soils  conditions at the date of performance of the Work.    3.2 SUPERVISION AND CONSTRUCTION PROCEDURES     3.2.1 DBE shall supervise, coordinate and direct the Construction Services using DBE's best skill  and attention and shall provide supervision sufficient to assure proper coordination and timely completion  of the Work.  DBE and its subcontractors shall be solely responsible for and have control over construction  means, methods, techniques, safety, sequences, procedures and the coordination of all portions of the  Work.     3.2.2 DBE shall be responsible for the accurate layout of all portions of the Work and shall  verify all dimensions on the Drawings and shall report to City any discrepancies before proceeding with  related Work.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  41 2016    PART 6 – GENERAL CONDITIONS   3.2.3 DBE may be assigned working space adjacent to the Site, and all field offices, materials  and equipment shall be kept within this area. DBE shall be responsible for leaving the space in as good  condition as DBE found it, or restoring it to the condition it was in prior to DBE commencing the Work.     3.2.4 DBE shall be responsible to City for acts and omissions of DBE's agents, employees, and  Subcontractors, and their respective agents and employees. Unless otherwise stated in or a contrary  intention is reasonably inferable from the Contract Documents, references to DBE, when used in reference  to an obligation bearing upon performance of the Project, shall be deemed to include DBE’s  Subcontractors.     3.2.5 DBE shall not be relieved of its obligation to perform the Work in accordance with the  Contract Documents by the act(s) or omission(s) by City in the administration of the Contract, or by tests,  inspections or Approvals required or performed by persons or firms other than DBE.    3.3 RESPONSIBILITY FOR THE WORK     3.3.1 DBE shall be in charge of and responsible for all portions of the Work of the Contract, and  shall be responsible for conforming such portions to the requirements of the Contract Documents and  readying such portions to receive subsequent Work.       3.3.2 DBE shall at all times maintain good discipline and order among its employees and  Subcontractors.  DBE shall provide competent, fully qualified personnel to perform the Work, and shall  ensure that each Subcontractor engaged on the Site arranges the storage of materials and equipment and  performance of its Work so as to interfere as little as possible with Separate Contractors or other persons  engaged in work for City on the Site.     3.3.3 During the installation of Work, DBE shall insure that existing facilities, fences, and other  structures are all adequately protected.  Upon Final Completion of all Work, all facilities that may have  been damaged shall be restored to a condition acceptable to City.     3.3.4 DBE is responsible for the security of the Site and all Work provided under the terms of  this Contract, as well as all Work provided by Separate Contractors that occurs on the Site at any time prior  to Final Completion and Acceptance of the Work by City.    3.4 LABOR, WORKMANSHIP, MATERIALS AND MANUFACTURED ITEMS    DBE shall provide and pay for all labor, materials, equipment, tools, construction equipment and  machinery, water, heat, utilities, transportation and other facilities and services necessary for proper  execution and completion of the Work, whether temporary or permanent and whether or not  incorporated or to be incorporated in the Work.  Unless otherwise provided in the Contract Documents or  otherwise Approved by the Construction Manager, all articles, equipment and materials incorporated in  the Work shall be new, of good quality, undamaged and not defective.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  42 2016    PART 6 – GENERAL CONDITIONS  3.5 DBE'S WARRANTY     3.5.1 In addition to the guarantee to repair referenced in Article 12 and any specific warranty  mentioned in the Project specifications, DBE warrants to City that all materials and equipment used in or  incorporated into the Work will be of good quality, new and free of liens, Claims and security interests of  third parties; that all labor, installation, materials and equipment used or incorporated into the Work will  be of good quality and free from defects; and that the Work will conform with the requirements of the  Contract Documents and Applicable Code Requirements.  If required by City, DBE shall furnish satisfactory  evidence as to the kind and quality of materials and equipment.  Manufactured items installed in the Work  and not specifically covered in the Contract Documents are to be installed in strict accordance with  manufacturers' current printed instructions.     3.5.2  All materials to be incorporated in the Work shall be protected from damage during  delivery, storage, and handling, and after installation until Acceptance of the Work, and DBE shall, without  charge to City, be responsible for all damage to the materials or the Work due to DBE's failure to provide  such proper protection.    3.6 CONSTRUCTION METHODS AND PROCEDURES     3.6.1 The methods and procedures adopted by DBE and its subcontractors shall be such as to  secure a quality of Work satisfactory to City and to enable completion of the Work in the time agreed  upon.  If at any time such methods and procedures appear inadequate, City may order DBE to improve the  character or increase efficiency, and DBE shall conform to such order; but the failure of City to order such  improvement of methods or increase of efficiency will not relieve DBE from its obligation to perform the  Work in accordance with the Contract Documents or within the Contract Time.     3.6.2 If the Contract Documents give specific instructions concerning construction means,  methods, techniques, sequences or procedures, DBE shall be fully and solely responsible for the Site safety  for implementing such means, methods, techniques, sequences or procedures. If DBE determines that such  means, methods, techniques, sequences or procedures may not be safe, DBE shall give written notice to  City and shall not proceed with that portion of the Work without further written instruction by City.    3.7 TAXES     3.7.1 DBE and Subcontractors are responsible for paying all sales, consumer, business license,  use, income and payroll, and similar taxes for the Work or portions thereof provided by DBE and  Subcontractors.     3.7.2 All DBEs and Subcontractors for Design‐Build Contracts equal to or greater than $5  million dollars shall be required to obtain a sub permit with the California Board of Equalization for a direct  allocation of any and all applicable use tax to the City of Palo Alto, where the jobsite is located.  DBE  and  applicable Subcontractors shall apply for and comply with all of the conditions of the sub permit pursuant  to Section 260.020 of the California State Board of Equalization, Chapter 2, “Compliance Policy and  Procedures Manual:  Registration, subchapter DBEs,” as may be amended from time to time.    3.8 LEGAL REQUIREMENTS     3.8.1 DBE shall perform the Work in accordance with all Applicable Code Requirements, even  though such requirements are not specifically referenced in the Contract Documents.      3.8.2 When the Work required by the Contract Documents is in conflict with any Applicable  Code Requirement, DBE shall notify Construction Manager and shall not proceed with the Work until  Construction Manager provides direction to the DBE.     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  43 2016    PART 6 – GENERAL CONDITIONS  3.9 PROJECT STAFF     3.9.1 DBE shall employ a complete and competent project staff for the duration of the  Construction Services, which shall include separate individuals designated to act as Superintendent, project  manager, project engineer(s) and administrative assistant(s), plus such other persons necessary to  diligently prosecute the Work.  DBE shall not replace the designated Superintendent or project manager  without a minimum seven (7) Day written notice.  Any Project staff member and any replacement member  shall be subject to the approval of City, which may be granted or withheld in its sole discretion.  Upon  notice from City requesting replacement of any Project staff member who is unsatisfactory to City, DBE  shall in a timely manner, but in no event longer than three (3) Days after notification, replace such member  with a competent member satisfactory to City.  Failure by DBE to comply with the provisions of this  Paragraph shall entitle City, at its option exercised in its sole discretion, to terminate the Contract or  suspend the Work until DBE complies with this Paragraph.  All costs or damages associated with such  termination or suspension shall be borne by DBE, without adjustment in the Contract Sum or Contract  Time.     3.9.2 The Superintendent shall be at the Site at all times during the performance of the Work.   The Superintendent shall represent DBE and communications given to and acknowledged by the  Superintendent shall be binding on DBE.  Further, communications issued by or received from the  Superintendent shall be deemed as binding on DBE. The Superintendent must be able to read, write and  communicate fluently in English.        3.10 SCHEDULES REQUIRED OF DBE    DBE shall submit a preliminary Construction Schedule to City in a form approved by the Construction Manager  at the Pre‐Construction Meeting, based on and consistent with the last schedule approved by the City during  design development.       3.10.2 Updated Construction Schedules for the Construction Services shall be submitted in the  form and frequency required by the Construction Manager.      3.10.3 The Construction Schedule and Construction Schedule updates shall meet the following  requirements:     .1 Schedules must be suitable in format and clarity for monitoring progress of the Work     and shall utilize the critical path method of scheduling.      .2 Schedules must provide necessary data about the timing for City's decisions and     City‐furnished items.     .3 Schedules must be in sufficient detail to demonstrate adequate planning and staffing for    the Work.       .4 Schedules must represent a practical plan to complete the Work within the Contract     Time. If at any time during the Work, any activity is not completed by its latest      scheduled completion date, DBE shall notify the Construction Manager within       five (5) Days of DBE's plans to reorganize the work force to return to the       schedule and prevent Delays on any other activity.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  44 2016    PART 6 – GENERAL CONDITIONS    .5 An updated Construction Schedule shall be submitted with each progress payment     request, but no less frequently than monthly, and shall include all of the following:      (i) A written narrative report detailing the actual progress of the Work as of the     date of submission;      (ii) The expected progress of the Work as of such date according to the approved     Construction Schedule;     (iii) The reasons for any variance between the approved Construction Schedule and    the updated Construction Schedule; and     (iv) If required, DBE’s recovery plan for placing the Work back on Schedule, at     DBE’s expense.    Failure to timely comply with the above requirements may be grounds for rejection of a request for  extension of time.     3.10.4 DBE shall plan, develop, supervise, control and coordinate the performance of the Work  so the progress, sequence and timing of the Work conform to the current accepted Construction Schedule.   DBE shall continuously obtain from Subcontractors information and data about the planning for and  progress of the Work, the ordering and fabrication of materials, required Submittals, and the delivery of  equipment, shall coordinate and integrate such information and data in updated Construction Schedules  and Record Documents, and shall monitor the progress of the Work and the delivery of equipment.  DBE  shall act as the expediter of potential and actual delays, interruptions, hindrances or disruptions for its own  forces and those forces of Subcontractors, regardless of tier.  DBE shall cooperate with City in the  development of the Construction Schedule and updated Construction Schedules.     3.10.5 City's review, comments, requests for revisions, or acceptance of any schedule or  scheduling data shall not:      (i) Relieve DBE from its sole responsibility for the feasibility of the schedule and to     plan for, perform, and complete the Work within the Contract Time;     (ii) Transfer responsibility for any schedule from DBE to City; nor      (iii) Imply City’s agreement with any assumption upon which such schedule is based or any     matter underlying or contained in such schedule.     3.10.6 Failure of City to discover errors or omissions in Construction Schedules that it has  reviewed or Approved, or to inform DBE that DBE, Subcontractors, or others are behind schedule, or to  direct or enforce procedures for complying with the Construction Schedule, shall not relieve DBE from its  sole responsibility to perform and complete the Work within the Contract Time and shall not be a cause for  an adjustment of the Contract Time or the Contract Sum.     3.10.7 DBE shall cooperate with and coordinate its Construction Schedule with work of City and  City’s Separate Contractors.       DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  45 2016    PART 6 – GENERAL CONDITIONS  3.11 DOCUMENTS AND SAMPLES AT PROJECT SITE     3.11.1 DBE shall maintain one (1) set of As‐Built Documents at the Site, which shall be kept up to  date on a daily basis during the performance of the Work. All performed changes, deletions or additions in  the Work from that shown in the Contract Documents shall be recorded accurately and completely in the  Record Documents.  Upon Final Completion and as a condition to Final Payment, each sheet of the As‐Built  Documents and other Record Documents shall be signed and attested to by the DBE’s Superintendent as  being complete and accurate.       3.11.2 DBE shall, at all times during performance of the Work, also maintain the following at the  Site:     (i) The latest updated Construction Schedule approved by City;     (ii) Shop Drawings, product data, and samples; and     (iii) All other required Submittals.    At all times during the course of the Project, these documents shall be available to City, the Construction  Manager and the Design Consultant to audit, excerpt, or copy as they see fit.  Upon Final Completion or  termination of the Design‐Build Contract, these documents shall be delivered to City in the format  requested by the City.       3.11.3 It shall be the responsibility of DBE to maintain a current and complete record of all  Changes performed during the progress of the Project construction.  The record shall be in the form of a  complete set of prints of the As‐Built Documents on which daily recordings are made by DBE, indicating in  detail and dimension each variation from the original set of Contract Documents for all of the Work.  At the  completion of construction, DBE shall, as a requirement of the Final Completion of the Work, certify that to  the best of its knowledge, the As‐Built Documents are true and accurate, and that the indications thereon  represent all Changes performed during the construction of the Project.  At Final Completion, the As‐Built  and other Record Documents shall become the property of City.     3.11.4 DBE, in concert with the Design Consultant and the Construction Manager, shall review  DBE's As‐Built Documents for conformance with all current Changes prior to presenting its monthly  Application For Payment. The monthly progress payment statement will not be accepted or processed by  City unless the As‐Built Documents are current and complete, and Approved by City.     3.11.5 At Final Completion, the DBE shall provide the fully As‐Built Documents to the City. These  As‐Built Documents will become the permanent property of City at Final Completion.  If the As‐Built  Documents are prepared on a computer, then the revised computer files shall also be provided to City in  the file format specified by City.     3.12 SUBMITTALS     3.12.1 Submittals are not Contract Documents.  Their purpose is to demonstrate, for those  portions of the Work for which Submittals are required, how DBE proposes to conform to the information  given and the design concept expressed in the Contract Documents.  Prior to starting Work, DBE shall  provide to City an initial schedule for submission of the Submittals for which shop drawings are required by  the Contract Documents.  For each required shop drawing, DBE shall provide to City the date for the  drawing's intended Submittal to the Design Consultant for review.  The date required for its return to avoid  Delay in any activity beyond the scheduled start date shall also be given.     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  46 2016    PART 6 – GENERAL CONDITIONS   3.12.2 All shop drawings and other Submittals shall be provided at DBE's expense, and at the  time required by the Contract Documents or requested by the Construction Manager.     3.12.3 DBE shall review, approve, and submit to the Construction Manager, all Submittals  required by the Contract Documents to be submitted and reviewed by the Design Consultant.  Submittals  to the Construction Manager without evidence thereon of DBE’s approval shall be returned, without  review, for resubmission in accordance with these requirements.  Submittals shall be provided within the  time frame specified in the Special Provisions and technical specifications in accordance with the  Construction Schedule, and in such sequence as to cause no Delay in the Work or in the activities of City or  of Separate Contractors. Submittals made by DBE which are not required by the Contract Documents, may  be returned without action by the Construction Manager or Design Consultant.  Submittal to the  Construction Manager and Design Consultant must include a statement, in writing, identifying any  deviations from the Contract Documents required due to manufacturing or installation limitations  contained in the Submittal.    3.12.4 All Submittals shall be submitted in two (2) sets, accompanied by letters of transmittal,  and addressed to the Construction Manager for review.  Unless otherwise specified in the Contract  Documents, Submittals consisting of Drawings or Plans shall be in the form of six (6) copies.  The Submittal  must be prepared and submitted in accordance with all applicable provisions in the Contract Documents.  If  the Submittal involves a request for substitution of items specified in the Bridging Documents or City‐ approved Construction Documents, the request shall be clearly identified on the Submittal that it is a  "Request for Substitution." Unless so clearly marked, Submittals shall not be considered as a request for  substitution. The Construction Manager shall return to DBE three (3) marked‐up prints.  Submittals shall  include all relevant catalog sheets, material lists, manufacturer’s brochures, technical bulletins,  specifications, diagrams, or product samples, necessary to describe a system, product, or item.  The letter  of transmittal shall include a list of the accompanying documents and the numbers of the sheets  submitted.  All sheets shall be marked with the name of the Project and the name of DBE, shall be  numbered consecutively, and shall be referenced to the sheets or paragraphs of the Contract Documents,  referenced by sheet or subparagraph affected.  Submittals shall be combined for singular assemblies, items  or materials.     3.12.5 No Work requiring a Submittal shall be performed by DBE until the Submittal has been  reviewed and approved by City, Construction Manager or Design Consultant, as appropriate, and the  Design Consultant has documented the exceptions noted on the Submittal.  DBE shall allow twenty (20)  Days for review of timely and complete Submittals.  Once the Submittal is returned to DBE by the  Construction Manager with a statement that it has been reviewed and no exceptions are taken or further  action requested, such Work shall be performed in accordance with the Submittal and the Contract  Documents.      3.12.6 DBE's Submittals represent that DBE has determined or verified materials and field  measurements and conditions related thereto and that it has checked and coordinated the information  contained within such Submittals with the requirements of the Contract Documents and Submittals for  related Work.     3.12.7 If DBE discovers any conflicts, omissions or errors in Submittals, DBE shall notify the  Construction Manager and receive instruction before proceeding with the affected Work.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  47 2016    PART 6 – GENERAL CONDITIONS   3.12.8 DBE shall remain solely responsible, notwithstanding City, Construction Manager or  Design Consultant’s review or approval of Submittals, for deviations (including, without limitation, those  arising from standard shop practice) from the Contract Documents, unless DBE has specifically informed  City, Construction Manager or Design Consultant in writing of such deviation at the time of transmitting the  Submittal and City, Construction Manager or Design Consultant has given written approval of such  deviation.  No adjustment in the Contract Sum or Contract Time shall be permitted with respect to any  such deviations that are noted in writing by DBE and as to which City, Construction Manager or Design  Consultant takes no exception or approves.     3.12.9 After review of DBE's Submittals by City, Construction Manager or Design Consultant, as  appropriate, the Construction Manager will transmit to DBE one set of Submittals.  If the Submittals are  found to be incomplete or incorrect, DBE shall resubmit after corrective action has been taken. DBE shall  reimburse City, or City may withhold from payments due DBE, sums owing by City for any fees charged by  City, Construction Manager or Design Consultant or City’s other consultants for more than two (2) reviews  of a Submittal, or for accelerated review in a shorter time than set forth in the approved Construction  Schedule, if requested by DBE or caused by late Submittals by DBE.  The return of a Submittal due to failure  to comply with the Contract Documents or for correction or additional information shall be considered a  review.      3.12.10  Review of Submittals by City, Construction Manager or Design Consultant will be general  and for conformance with design intent, and shall not relieve DBE from the responsibility for proper fitting  and construction of the Work, nor from furnished materials and Work required by the Contract which may  not be indicated on the reviewed Submittals.     3.12.11 Submittals shall be in English, be of good quality, and be of a size and scale to clearly  show all necessary details.  Submittals shall show in detail the size, sections and dimensions of all  members; the arrangement and construction of all connections, joints and other pertinent details; and all  holes, straps and other fittings required by other Separate Contractors for attaching their Work.  When  required by City, Construction Manager or Design Consultant, engineering computations shall be  submitted.  DBE shall be responsible for delivering duplicates of Submittals to all other persons whose  Work is dependent thereon.     3.12.12  DBE shall, at all times, maintain at the Site a complete file of all City, Construction  Manager or Design Consultant‐reviewed Submittals.    3.13 TRADE NAMES, SUBSTITUTIONS     3.13.1 Any request by the DBE for substitution of “or equal” items specified in the Bridging  Documents shall be made within 35 days of award of the Contract, unless otherwise specified in these  Contract Documents, and shall be governed by Public Contract Code Section 3400.       3.13.2 If City accepts for use in the Project a substitute material or process which in the opinion  of City, Construction Manager or Design Consultant is not the equal of that specified, a Change Order shall  be issued issuing a credit to City for the difference in value.     3.13.3 Substitutions by DBE that are incorporated into the Work without the prior review and  Approval by City, Construction Manager or Design Consultant in accordance with the requirements of the  Contract Documents shall be deemed to be Defective Work.       3.13.4 The specified completion time shall not be affected by any circumstance developing from  the substitution provisions of this Section.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  48 2016    PART 6 – GENERAL CONDITIONS  3.14 DAILY REPORTS BY DBE     3.14.1 At the end of each working day during provision of the Construction Services, DBE shall  submit a daily report to the Construction Manager (on a form provided by or accepted by the Construction  Manager) listing:     (i) Labor ‐ Names of workers, classification, hourly rates and hours worked.     (ii) Material ‐ Description and list of quantities of materials used.      (iii) Equipment ‐ Type of equipment, size, identification number, and hours of operation,     including loading and transportation, if applicable.     (iv) Inspection and Testing Activities ‐ Name, City or company and items involved.      (v) Areas of Work ‐ The areas of the Site on which Work was performed and a detailed     description of the stage, status and progress of the Work in each such area at the     beginning and end of the day.      (vi) Accidents, Delays, Defective Work ‐ Description in detail of any injuries to workers,     accidents, Delays, or Defective Work that were encountered.      (vii) Other Services and Expenditures ‐ Description in such detail as City may require of other     services and expenditures.     3.14.2 Reports by Subcontractors that comply with the requirements of this Section 3.14 shall  also be submitted to the Construction Manager through DBE at the end of each working day.      3.14.3 Submission of daily reports by DBE and Subcontractors performing Work on the Site shall  be a condition precedent to DBE's right to payment under the Contract.     3.14.4 Facts, notice or information contained in daily reports of DBE or its Subcontractors,  whether known or not known to City or Construction Manager, shall under no circumstances be considered  evidence of compliance by DBE with any of the specific written notice requirements of the Contract  Documents.    3.15 CUTTING AND PATCHING     3.15.1 DBE shall do all cutting, fitting, or patching of the Work required to make all parts of the  Work join properly and to allow the Work to join the work of Separate Contractors shown in, or reasonably  implied by, the Contract Documents.     3.15.2 DBE shall not endanger the Work, the Project, Existing Improvements, or adjacent  property by cutting, digging, or otherwise. DBE shall not cut or alter the work of any Separate Contractor  without the prior written consent of City.     3.15.3 In all cases, cutting shall be performed under the supervision of competent workers  skilled in the applicable trade and shall cause the openings to be cut as small as possible to minimize  unnecessary damage.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  49 2016    PART 6 – GENERAL CONDITIONS  3.16 ACCESS TO THE WORK     3.16.1 City, Construction Manager, Design Consultant, their consultants and other persons  authorized by City shall at all times have access to the Work wherever it is in preparation or progress.  DBE  shall provide safe and proper facilities for such access and for inspection.     3.16.2 City may, at any time, and from time to time during the performance of the Work, enter  the Project for the purpose of installing any necessary other work by City labor or other contracts or for  any other purpose.  DBE shall cooperate with City and not interfere with other work being done by or on  behalf of City.    3.17 ROYALTIES AND PATENTS    DBE shall pay all royalties and license fees required for the performance of the Work.  DBE shall  immediately notify City if it learns of any circumstances that may constitute an infringement of patent  rights and shall defend and indemnify City and the members of the Project Team in accordance with the  indemnity requirements of the Design‐Build Contract against Losses, liabilities, suits or Claims resulting  from DBE's or any Subcontractor's or infringement of patent rights.    3.18 PERMITS AND LICENSES    The DBE shall comply with all provisions of any permits necessary to accomplish the Work as specified in  this Contract.  DBE shall obtain and be responsible for the cost of all permits and applications related to the  construction of the Project.    3.19 DIFFERING SITE CONDITIONS    3.19.1  Except as provided in this Section 3.19, DBE agrees to solely bear the risk, including any additional  costs and Delay of any and all concealed and unknown site conditions, without adjustment to the Contract  Sum or Contract Time.  This provision is applicable if the Project involves digging trenches or other  excavations that extend deeper than four (4) feet below the surface.  DBE shall promptly, and before the  following conditions are disturbed, provide written notice to City if the DBE finds any of the following  conditions:    .1   Material that DBE believes may be a hazardous waste, as defined in Section 25117 of the  Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site  in accordance with the provisions of existing law.    .2   Subsurface or latent physical conditions at the Site differing from those indicated by  information about the Site made available to Proposers prior to the deadline for submitting  Proposals.     .3   Unknown physical conditions at the Site of any unusual nature, differing materially different  from those ordinarily encountered and generally recognized as inherent in work of the character  provided for in the Contract Documents.     3.19.2   City shall promptly investigate any of the above the conditions and if City finds that the  conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in DBE’s  cost of, or the time required for, performance of any part of the Work, shall issue a Change Order under  the procedures described in the Contract Documents.  The City may, acting in its sole discretion, extend the  applicable deadline for submitting a Change Order Request when it is based upon differing conditions  subject to Public Contract Code Section 7104.    3.19.3   In the event that a dispute arises between the City and the DBE regarding any of the matters  specified in subsection 3.19.1, above, DBE shall not be excused from any scheduled completion date  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  50 2016    PART 6 – GENERAL CONDITIONS  provided for in the Contract Documents, but shall proceed with all Work to be performed under the  Contract.  DBE shall retain any and all rights provided either by the Contract or by law which pertain to the  resolution of disputes between DBE and City.      3.20 INSPECTIONS     3.20.1 In order to allow for inspection by City and other agencies, or any inspection required  elsewhere in the Special Provisions and technical specifications, DBE shall notify City in writing three (3)  Days in advance of the permanent concealment of any materials or Work.     3.20.2 Whenever DBE desires to carry on the Construction Services of this Design‐Build Contract  at hours other than those specifically required by the City or 8:00 AM to 6:00 PM, Monday through Friday  or from 9:00 AM to 5:00 PM on Saturdays, it shall request authorization in writing from City for such Work  at least twelve (12) Days in advance and, if approved to proceed, DBE agrees to pay the costs incurred by  the City to provide inspectors during these times and the costs incurred for the Construction Manager,  Design Consultant and/or other City consultants whose presence at the Site is necessary. City offices are  closed on alternate Fridays commencing January 12, 2001, and every other Friday thereafter.  Inspections  by City Building Department may not be available on these days.     3.20.3 If any Work is concealed or performed without the prior notice specified above, then the  Work shall be subject to such tests or exposure as may be necessary to prove to City that the materials  used and the Work done are in conformity with the Contract Documents.  All labor and equipment  necessary for exposing and testing shall be furnished by DBE at its expense.  DBE shall replace, at its own  expense and without reimbursement by City, any materials or Work damaged by exposure and any faulty  materials or work evidenced by such exposure or testing, and shall be responsible for any Delay caused  thereby.     3.20.4 When, in order to comply with the intent of the Contract Documents, inspection must be  made at the plant or mill of the manufacturer or fabricator of material or equipment, DBE shall notify City a  sufficient length of time in advance to allow for arrangements to be made for such inspection. If required  testing and/or inspection must be conducted at a location more than one hundred (100) miles from the  Site, DBE shall be responsible for the additional travel costs required for testing and/or inspection at such  location.     3.20.5 Any inspection or approval by any representative or agent of City will not relieve DBE of  the responsibility of incorporating into the Work only those materials which conform to the Contract  Documents, and any nonconforming materials shall be removed from the Site whenever identified, at  DBE’s sole expense.     3.20.6  When DBE believes it has achieved either Substantial or Final Completion of the Work,  DBE shall notify City and the Construction Manager in writing and request a Substantial or Final Completion  inspection of the Work.  City, Design Consultant and Construction Manager will make such inspection as  soon thereafter as possible.      DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  51 2016    PART 6 – GENERAL CONDITIONS  3.21 STOP NOTICES    DBE must promptly pay its Subcontractors in accordance with the subcontract requirements and California  prompt payment statutes.  If any stop notice or other claim is served, filed or recorded in connection with  the Work, City shall have the option, in its sole discretion, to permit DBE immediately and at its own  expense obtain a bond executed by a good and sufficient surety, in accordance with Civil Code section  9364, in a sum equal to one hundred twenty‐five percent (125%) of the amount of such stop notice or  claim.  Such bond shall guarantee the payment of any amounts which the claimant may recover on the  stop notice or claim, together with the claimant’s costs of suit in any action to enforce such stop notice or  claim if the claimant recovers therein. This remedy shall be in addition to all other rights and remedies of  City under the Contract Documents and applicable law, including, without limitation, the right to withhold  funds from sums due to DBE. DBE shall timely notify City of DBE's receipt of any stop notice or other  third‐party claim, valid or invalid, relating to the Contract Documents.    3.22 PARKING    DBE shall provide and maintain suitable parking areas, for use by all construction workers and others  performing work or furnishing services in connection with the Project, as required to avoid any need for  parking personal vehicles where they may interfere with public traffic, construction activities or public  parking.  The Construction Manager shall approve the location of all off‐site parking in the City.    3.23 USE OF THE PROJECT SITE AND CLEAN UP     3.23.1 DBE shall confine operations at the Site to areas permitted by Applicable Code  Requirements and the Contract Documents.  DBE shall not encumber the Site with materials or equipment  so that Separate Contractors' work is hindered or impeded due to such encumbrances.     3.23.2 DBE shall, during performance of the Construction Services, keep the Site and  surrounding area free from the accumulation of excess dirt, dust, waste materials, water and rubbish  caused by DBE or any Subcontractors.  DBE shall continuously and daily remove all excess dirt, waste  material, water and rubbish caused by DBE and all tools, equipment, machinery and surplus materials from  the Site and surrounding area at end of each day.  Adequate cleanup will be a condition for progress  payments.     3.23.3 Personnel of DBE shall not occupy, live upon, or otherwise make use of the Site during  any time that Work is not being performed at the Site, except as otherwise provided in the Contract  Documents.     3.23.4 Upon Final Completion of the Work, DBE shall remove all construction facilities,  appurtenances, tools, material and other articles from the Site.  The entire area, including all fixed  equipment, floors, surfaces and hardware shall be cleaned and restored to their original condition in  accordance with the Special Provisions and technical specifications.     3.23.5 In addition to water sprinkling, temporary enclosures and anti‐dust sweeping compounds  should be used to limit dust and dirt rising and to keep the Site clean.     3.23.6 Construction materials shall be neatly stacked by DBE when not in use. Loose materials,  whether on the Site or in transit, shall be covered to prevent dust.  DBE shall promptly remove splattered  concrete, asphalt, oil, paint, corrosive liquids and cleaning solutions from the affected surfaces to prevent  marring or other damage to the Work.     3.23.7 Volatile wastes shall be properly stored in covered metal containers and removed daily.   All other trash receptacles shall be promptly emptied when full.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  52 2016    PART 6 – GENERAL CONDITIONS   3.23.8 DBE shall promptly and legally transport and dispose of removed and demolished items  and waste materials not identified to be recycled or reused in compliance with local ordinances and anti‐ pollution laws.  No rubbish or waste materials shall be burned, buried, or otherwise disposed of on the  Site.     3.23.9 The DBE shall provide sanitary facilities at the Site, which shall be of reasonable capacity,  properly maintained throughout the construction period, and obscured from public view to the greatest  practical extent.  DBE shall require all personnel to use the sanitary facilities.  Sanitary facilities shall be on  a portable trailer and shall be removed from the Site at the end of each workday.  For sewer lining projects,  DBE shall provide additional sanitary facilities on a portable trailer to be used by the residents during lining  installation (one sanitary facility per each 30 meters [100 feet]).  DBE shall remove the sanitary facilities as  soon as relief holes are cut and notices of completion are delivered.    3.24 ENVIRONMENTAL CONTROLS    Full compensation for conforming to the requirements of this Section shall be considered as included in the  prices paid for the various contract items of Work involved and no additional compensation will be  allowed.     3.24.1 AIR POLLUTION CONTROL.  DBE shall comply with all air pollution control rules,  regulations, ordinances and statutes which apply to any work performed pursuant to the Contract,  including rules promulgated by the Bay Area Air Quality Management District, the California Department of  Public Health or any other applicable agency.  In the absence of any applicable air pollution control rules,  regulations, ordinances or statutes governing solvents, all solvents, including but not limited to the solvent  portions of paint thinners, curing compounds, parts cleaners and degreasers and liquid asphalt used on the  Project shall comply with the applicable material requirements of the Bay Area Air Quality Management  District. All containers of paint thinner, curing compound parts cleaners and degreasers or liquid asphalt  shall be labeled to indicate that the contents fully comply with said requirements.  Material to be disposed  of shall not be disposed of onsite (i.e. used up inappropriately or burned).  Compressed gases contained  within cylinders or aerosol cans shall never be released for any purpose other than that intended by the  manufacturer.      .1 Mold.  The DBE shall take steps to prevent mold from developing on the Site, or     being released into the air and shall promptly decontaminate any areas of mold that     develop.      .2 VOC’s.  Only construction materials that emit low levels of volatile organic compounds     (VOC) shall be used within indoor areas.  Adequate ventilation of packaged dry products     shall be used prior to installation.  DBE is responsible to ventilate the building      during the application of wet products (e.g., paints, glues, sealants), which release their     highest levels of VOC's during the curing period immediately after the application.  Also,     wet products shall be applied before installing materials that act as "sinks" such as      carpets, fabric, ceiling tiles, movable partitions, furniture, etc. in order to reduce the      chance of the "sinks" absorbing contaminants and slowly releasing them into the      building  over time.     .3 Off‐Gassing. DBE is responsible for identifying specific materials that require  more  complex ventilation to accelerate off‐gassing.  In addition to paints, glues and  sealants, those  materials that generally require temporary ventilation include, without limitation: composite  wood products, plastics, waterproofing, insulation, fireproofing, caulking, acoustical ceilings,  resilient flooring and wood preservatives.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  53 2016    PART 6 – GENERAL CONDITIONS  .4 Barriers.  Barriers shall be used to prevent the migration of airborne pollutants from  areas under construction and to mitigate any construction noise that may disrupt  occupant activities. If effective controls for pollution emissions cannot be practically  implemented, activities involving significant airborne pollutants shall be scheduled during  off‐hours at DBE’s expense. The Site shall be ventilated with fresh outside air during and  immediately after the noxious activity.     .5 Exhaust.  DBE shall install temporary exhaust systems in construction areas to  prevent  contaminated air from entering the building's return‐air system, including, without limitation:      (i) Removing windows in a space.       (ii) Using available or dedicated exhaust systems (e.g., kitchen or toilet exhaust)      that are not tied into the building's overall return‐air system.    .6 Treated wood waste (TWW).  TWW is any wood treated with preserving chemicals that  protect the wood from insect attack or fungal decay (typically railroad ties, power poles,  or bollards) shall be managed by DBE to minimize dust generation.  DBE shall never grind  TWW and shall be properly dispose TWW at a permitted TWW disposal facility. If DBE  size‐reduces the TWW then DBE shall collect all dust generated for proper offsite  disposal.    .7 Contaminated Soil Removal.  Unless approved by the City, contaminated soils that are  being removed shall be loaded directly into truck trailers that shall transport the soils  directly to disposal facilities and not stockpiled onsite or elsewhere.  If the City approves  the temporary stockpiling of soils onsite, then DBE shall cover the soil with visqueen (or  other suitable material) within 1 hour.     The building shall be flushed with full outdoor air for seven (7) Days prior to occupancy.   Full capacity of the HVAC system shall be used for at least 2.5 ACH (air changes per hour),  provided by temporary fans.  During this time, the interiors shall be thoroughly cleaned,  the HVAC ducts vacuumed, and air and HVAC system filters replaced.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  54 2016    PART 6 – GENERAL CONDITIONS   3.24.3 WATER POLLUTION CONTROL.      .1 DBE shall at a minimum use applicable Best Management Practices listed in the California  Stormwater Quality Association Construction Handbook  http://www.cabmphandbooks.com/Construction.asp to prevent the pollution of storm  drains and watercourses by discharges of materials other than uncontaminated storm  water. Prohibited discharges include storm water runoff discharges that may threaten to  cause pollution, contamination or nuisance, sanitary waste, sediment and debris from  erosion and other substances resulting from construction activities.  Sanitary wastes will  not be permitted to enter any storm drain or watercourse and must be routed to the  sanitary sewer system.  No sediment, debris or construction materials will be permitted  to enter sanitary sewers.    .2 DBE shall provide effective and continuous control of water pollution, including Work in  small or multiple units, on an out of phase schedule or with modified  construction  procedures. DBE shall determine which methods are most effective in achieving control  of water pollution as a result of DBE's operations.  DBE shall coordinate water pollution  control work with all other Work performed by DBE and Separate Contractors.    .3 Before starting any Work on the Project, DBE shall submit to the Construction Manager  for acceptance a Storm Water Pollution Prevention Plan (SWPPP) for effective control of  storm water pollution.  Such plan shall show the schedule and detailed description for  the storm water pollution prevention and erosion control work or practices included in  the Design‐Build Contract and for all storm water pollution control measures which DBE  proposes to employ in connection with construction of the Project to minimize the  effects of their operations upon storm drains, adjacent streams, and other bodies of  water. DBE shall not perform any clearing and grubbing or earthwork on the Project,  other than that specifically authorized in writing by the Construction Manager, until such  SWPPP has been approved by a City representative or the Construction Manager. DBE  shall revise and bring up to date said SWPPP at any time the Construction Manager  makes written request for such revisions.    .4 City shall not be liable to DBE for failure to accept all or any portion of any originally  submitted or revised SWPPP, or for any Delays to the Work due to DBE's failure to submit  an acceptable SWPPP. DBE assumes sole responsibility for all costs associated with  treatment of storm water polluted as a result of DBE’s Site activities, whether treatment  is initiated by DBE or City.     .5 DBE may request the Construction Manager to waive the requirement for submission of a  written SWPPP when the nature of DBE's operation is such that pollutant discharge or  soil erosion is not likely to occur.  Waiver of this requirement will not relieve DBE from  responsibility for compliance with the other provisions of this Section. Waiver of the  requirement for a written SWPPP will not preclude City requiring submittal of a SWPPP at  a later time if the Construction Manager deems it necessary because of the effect of  DBE's operations.    .6 Where erosion damage which will cause storm water pollution is probable due to the  nature of the material or the season of the year, DBE's operation shall be so scheduled  that permanent erosion control features will be installed concurrently with or  immediately following grading operations.    .7 All storm water pollution control work required elsewhere in the Contract Documents  which may be accomplished under the various contract items of Work will be measured  and paid for as provided in said items of Work elsewhere in these Contract Documents.  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  55 2016    PART 6 – GENERAL CONDITIONS     3.24.4 URBAN RUNOFF. At a minimum, the following specific Best Management Practices which  address the potential pollution impacts of urban runoff shall apply to all projects undergoing construction  in City. The Best Management Practices listed below (in addition to those listed in the technical  specifications) are required by City, and shall apply at the time of demolition of an existing structure or  commencement of construction until receipt of a certificate of occupancy or certificate of completion:     .1 Sediment and construction waste from construction sites and parking areas shall not   leave the Site.     .2 Any sediments or other construction materials which are tracked off the Site shall be   removed the same day. Straw wattles or another temporary sediment barrier shall be   installed around the perimeter of the Site to prevent the sediment from leaving the Site.     .3 On an emergency basis only, plastic covering may be utilized to prevent erosion of an   otherwise unprotected area, along with runoff devices to intercept and safely convey   the runoff.     .4 Excavated soil shall be located on the Site in a manner that eliminates the possibility of   sediment running into the street, storm drains, water bodies, or adjoining properties.   Material stockpiles shall be covered within 1 hour of stockpiling the material until the   material is either used or removed.     .5 No washing of construction vehicles shall be allowed on or adjacent to the Site.      .6 Drainage controls shall be utilized as needed, depending on the extent of proposed   grading and topography of the Site, including, but not limited to the following: (i)   detention ponds or sedimentation ponds; and (ii) dikes, berms or ditches; and (iii) down   drains, chutes or flumes.     3.24.5  STORM WATER POLLUTION PREVENTION DURING ROADWORK. To avoid storm water  pollution, DBE shall plan roadwork and pavement construction as follows:    .1 Apply concrete, asphalt, and seal coat during dry weather to prevent contaminants from    contacting storm water runoff.    .2 Cover storm drain inlets and manholes when paving or applying seal coat, slurry seal, fog  seal, etc.    .3 Always park paving machines over drip pans or absorbent materials.    .4 When making saw‐cuts in pavement, use as little water as possible.  Cover each catch     basin completely with filter fabric during the sawing operation.  Shovel or vacuum the     slurry residue from the pavement and remove from the Site.    3.24.6 STORMWATER POLLUTION. To avoid stormwater pollution, DBE shall plan roadwork and  pavement construction as follows:    .1 Apply concrete, asphalt, and seal coat during dry weather to prevent contaminants from    contacting stormwater runoff.    .2 Cover storm drain inlets and personnel access holes when paving or applying seal coat,     slurry seal, fog seal, etc.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  56 2016    PART 6 – GENERAL CONDITIONS  .3 Always park paving machines over drip pans or absorbent materials, since they tend to     drip continuously.    .4 When making saw‐cuts in pavement, use as little water as possible.  Cover each catch     basin completely with filter fabric during the sawing operation and contain the slurry by     placing straw bales, sand bags, or gravel dams around the catch basin.  After the liquid     drains or evaporates, shovel or vacuum the slurry residue from the pavement or gutter     and remove from the Site.    3.24.7 DRAINAGE CONTROL.  DBE shall provide for the drainage of storm water and such water as  may be applied or discharged on the Site in performance of the Work. Drainage facilities shall be adequate  to prevent damage to the Work, Site and adjacent property.  Also drainage facilities shall be constructed to  minimize the potential pollution to the ocean.    Existing drainage channels and conduits shall be cleaned, enlarged or supplemented as necessary  to carry all increased runoff attributable to DBE's operations.  Dikes shall be constructed as necessary to  divert increased runoff from entering adjacent property (except in natural channels), to protect City's  private property and utility owner's facilities and the Work, and to direct water to drainage channels or  conduits.  Retention of drainage on the Site shall be provided as necessary to prevent downstream  flooding.    3.24.8 DUST CONTROL.  As elsewhere provided herein, the DBE shall be responsible for all dust  alleviation and control measures necessary and required for the public safety and convenience during the  life of the contract. The DBE shall use reclaimed water to control dust from unpaved surfaces as needed on  a daily basis or as directed by the Construction Manager.  The water shall be applied at a limited rate so as  to avoid the creation of runoff from the site.  The DBE shall not use water to flush down paved or  impervious surfaces as a means of dust control.  Paved or impervious surfaces shall be swept with a street  sweeper as needed to control dust on the site.  Compensation for water applied as alleviation and/or  prevention of dust nuisance and street sweeping shall be considered as included in the prices paid for the  various contract items of work and no additional allowance will be made therefore.    3.24.9   SPECIAL HAZARDOUS SUBSTANCES AND PROCESSES.  DBE shall  comply with the  provisions of all applicable hazardous materials Standards including but not limited to California Code of  Regulations (CCR) Title 8,  Chapter 4, Group 16 (CalOSHA Control of Hazardous Substances), CCR Title 22,  Division 4.5, (hazardous waste management standards), California Health & Safety Code Division 20,  Section 6.5 (hazardous waste control), California Fire Code, Code of Federal Regulations (CFR) 49 (DOT  regulations), CFR 40, Part 60 (U.S. hazardous waste standards) and applicable sections of the Palo Alto  Municipal Code.  DBE shall at all times maintain an inventory of hazardous materials stored onsite and all  applicable Material Safety Data Sheets (MSDSs) available for review by the City.    For City‐generated hazardous waste removal, the City will take full generator status for the  hazardous wastes as described under CCR 22.  The City will obtain any EPA Identification numbers for the  project and will sign each manifest as the generator before the material is transported.  DBE shall fully  manage the hazardous wastes for the City including the removing, storing, transporting and disposing of  the hazardous wastes.  For construction activities that remove existing hazardous wastes, such as, asbestos  removal, contaminated soil removal, lead paint removal or other contamination abatement projects, DBE  shall develop a hazardous materials management plan (HMMP).  The HMMP shall contain sufficient  information that shall demonstrate how the DBE will remove, secure and store, transport to a permitted  disposal facility.  DBE shall submit the HMMP to the City for approval.  At a minimum, the HMMP shall  include:   Project map that shall show hazardous waste removal areas, storage areas (including all      fencing, gates, locks, structures etc;   Hazardous waste expected inventory including quantities and types of wastes;  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  57 2016    PART 6 – GENERAL CONDITIONS   Security program – how the DBE will keep hazardous materials secure from public     contact;   Monitoring and inspection program;   Inventory of emergency equipment onsite;    Transportation Plan includes how the DBE plans to package and transport the       hazardous wastes;   Disposal facility name and location;   Any other information that would reasonably describe DBE hazardous waste       removal, storage and disposal plans.     City has the sole right to reject the hazardous waste transporter and/or disposal facility from   DBE’s consideration.     Hazardous wastes that are generated from DBE’s activities while completing the project  (i.e.  equipment maintenance fluids, empty oil or solvent drums, etc. shall be the sole responsibility of the DBE who is the  generator of the wastes under the Hazardous Waste Generator Regulations CCR Title 22. Wastes must be handled,  recycled or disposed of in the United States.     3.24.10  ENVIRONMENTAL PURCHASING POLICY.  The DBE shall comply with the City of Palo Alto’s  Environmental Purchasing Policy, as amended from time to time.  A copy is available at the City’s Purchasing  Division.     3.24.11  ZERO WASTE REQUIREMENTS.  The DBE shall comply with waste reduction, reuse,  recycling and disposal requirements of the City’s Zero Waste Program.  Zero Waste best practices include first  minimizing and reducing waste; second, reusing waste and third, recycling or composting waste.  In particular, DBE  shall comply with the following zero waste requirements:     All printed materials provided by DBE to City generated from a personal computer and  printer including but not limited to, proposals, quotes, invoices, reports, and public  education materials, shall be double‐sided and printed on a minimum of 30% or greater  post‐consumer content paper, unless otherwise approved by the City’s Project Manager.  Any submitted materials printed by a professional printing company shall be a minimum  of 30% or greater post‐consumer material and printed with vegetable based inks.   Goods purchased by DBE on behalf of the City shall be purchased in accordance with the  City’s Environmental Purchasing Policy including but not limited to Extended Producer  Responsibility requirements for products and packaging. A copy of this policy is on file at  the Purchasing Office.   Reusable/returnable pallets shall be taken back by the DBE, at no additional cost to the  City, for reuse or recycling. DBE shall provide documentation from the facility accepting  the pallets to verify that pallets are not being disposed.       3.24.12  SOUND CONTROL.    .1 DBE shall comply with the City’s Noise Ordinance set forth in Chapter 9.10 of the Palo  Alto Municipal Code, except as modified in the Special Provisions and technical  specifications.  Copies of the Noise Ordinance are available in the Purchasing Division.    .2 Each internal combustion engine used for any purpose on the Site or otherwise within  the City of Palo Alto shall be equipped with a muffler of a type recommended by the  manufacturer. No internal combustion engine shall be operated on the Project without  said muffler.  This requirement in no way relieves DBE from responsibility for complying  with local ordinances regulating noise level.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  58 2016    PART 6 – GENERAL CONDITIONS  .3 The noise level requirement shall apply to all equipment on the Work or related to the  job, including but not limited to trucks, transit mixers or transient equipment that may or  may not be owned by DBE. The use of loud sound signals shall be avoided in favor of light  warnings except those required by safety laws for the protection of personnel.    .4 Prior to starting construction, all equipment to be used on the Project shall be inspected  and tested for compliance with the requirements of this Project.  Sound blankets or other  sound mitigation equipment approved by the Construction Manager shall be required to  bring equipment into compliance with the requirements of this Project.     3.25 TEMPORARY WATER, LIGHT AND POWER    Water for any purpose shall be obtained by DBE, at its expense, from City.  DBE is to contact the  Construction Manager for a phone number and contact person.  In no case may DBE obtain water from  unmetered fire hydrants. The costs of obtaining water shall be included in the prices paid for the various  contract items of work included and no additional compensation will be allowed therefore, unless  otherwise specified in the Contract Documents. The City imposes a penalty for taking water from an  unmetered fire hydrant. The penalty shall be deducted from the payment due DBE. DBE shall purchase  power from the City, at DBE’s expense.    3.26  CITY TRUCK ROUTE ORDINANCE    The DBE and any Subcontractors or suppliers shall at all times comply with the requirements of the City of  Palo Alto Truck Route Ordinance set forth in Chapter 10.48 of the Palo Alto Municipal Code.    3.27 UNFAIR BUSINESS PRACTICES CLAIMS    DBE offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have  under Section 4 of the Clayton Act (15 U.S.C. Sec. 15), or under the Cartwright Act (Chapter 2 (commencing  with Section 16700) of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of  goods, services, or materials pursuant to the Contract Documents. This assignment shall be made and  become effective at the time City tenders Final Payment to DBE, without further acknowledgment by the  parties. DBE shall incorporate this provision in all Subcontractor contracts.    3.28 EXISTING UTILITIES    3.28.1 Prior to the start of any grinding or any excavation, the DBE shall be responsible for  notifying Underground Services Alert (USA) 800‐642‐2444 at least 5 days prior to beginning underground  work so that existing utilities can be marked in the field. The DBE is responsible for the location of all  utilities, both public and private. DBE shall give specific address for grinding or excavation location.  Each  location shall be marked by the DBE in the field with white paint.    3.28.2 The DBE shall acknowledge that the marking of underground utilities is only approximate,  and he shall take all necessary precautions to avoid damaging these utilities.    3.28.3 All Underground Services Alert marking shall be removed by the DBE.  Any utilities  damaged or altered in any way during the performance of the work under this contract shall be promptly  reported to the Engineer, and shall be restored to their original condition at the DBE's expense.     3.28.4 If the DBE comes into contact with any existing utilities during his operations, he shall  notify the Engineer before proceeding with the work involved.    3.28.5 Pursuant to Government Code Section 4215, if, during the performance of the Work, DBE  discovers utility facilities not identified by City in the Contract Documents, DBE shall immediately provide  written notice to City and the utility.  City assumes responsibility for the timely removal, relocation, or  protection of existing main or trunkline utility facilities located on the Project site, if such utilities are not  identified in the Contract Documents.  DBE shall be compensated in accordance with the provisions of the  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  59 2016    PART 6 – GENERAL CONDITIONS  Contract Documents for the costs of locating, repairing damage not due to DBE’s failure to exercise  reasonable care, and removing or relocating such utility facilities not indicated in the plans or specifications  with reasonable accuracy and for equipment on the Project necessarily idled during such work.  DBE shall  not be assessed liquidated damages for delay in completion of the Work, to the extent such delay was  caused by City’s failure to provide for removal or relocation of such utility facilities.    ARTICLE 4 – ADMINISTRATION OF THE CONTRACT    4.1 CONTRACT ADMINISTRATION BY CITY, DESIGN CONSULTANT AND CONSTRUCTION MANAGER      4.1.1 City and the Construction Manager will provide administration of the Contract as  provided in the Contract Documents.      4.1.2 No actions taken by City, Construction Manager or Design Consultant shall relieve   DBE of its obligations described in the Contract Documents.      4.1.3 The Construction Manager will be present on the Site during the performance of the   Work primarily for the purposes of providing administration, inspection and expediting communications   between City, Design Consultant and DBE.        4.1.4 Neither City, Design Consultant nor Construction Manager will have control over, will be  in charge of, or will be responsible for construction means, methods, techniques, safety, sequences or  procedures or for safety precautions and programs in connection with the Work, all of which are the sole  responsibility of DBE.        4.1.5 Unless otherwise provided in the Contract Documents or when direct communications  have been specifically authorized, communications between DBE and City or Design Consultant shall be in  writing through Construction Manager.  Communications by DBE or Subcontractors and with Separate  Contractors shall be through the Construction Manager.  DBE shall not rely on oral or other non‐written  communications.      4.1.6 Based on the Construction Manager’s Site visits and evaluations of DBE's Applications For  Payment, the Construction Manager will review and recommend to City for City approval the amounts, if  any, due DBE.      4.1.7 Construction Manager will make recommendations to City to reject the Work, or any  portion thereof, which does not conform to the Contract Documents.  City alone shall have the authority to  stop the Work or any portion thereof.  Whenever City considers it necessary or advisable, City will have the  authority to require additional inspection or testing of the Work in accordance with the Contract  Documents, whether or not such Work is fabricated, installed or completed.  However, no authority of City  conferred by the Contract Documents nor any decision made in good faith either to exercise or not  exercise such authority, nor any recommendation by the Construction Manager, shall give rise to a duty or  responsibility of City or the Construction Manager to DBE or its Subcontractors.       4.1.8 Construction Manager’s authority includes, but is not limited to the following:    .1 Conduct or direct inspections to determine suitability of the Project or portion  thereof for Beneficial Occupancy.      .2 Assist City in determining the dates of Substantial Completion and Final  Completion;    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  60 2016    PART 6 – GENERAL CONDITIONS  .3 Review any records, written warranties and related documents required by the  Contract Documents and assembled by DBE; and    .4 Make recommendations to City for issuance of Final Payment upon DBE's  compliance with the requirements of the Contract Documents.       4.1.9 City, with the assistance of recommendations from the Design Consultant and/or  Construction Manager, shall be the ultimate interpreter of the requirements of the Contract Documents  and the judge of performance thereunder by DBE.  Such decisions by City will be final and binding upon  DBE.    4.2 CLAIMS      4.2.1 Accrual of Claim.  A Claim accrues and arises upon issuance of a decision by the City or  Construction Manager denying, in whole or in part, a Change Order Request, which was previously  submitted in compliance with these Contract Documents.  A Claim that demands an extension of time or  an increase in the Contract Sum does not accrue unless DBE has previously submitted such demand(s) in a  Change Order Request. All Claims are subject to the provisions of Public Contract Code section 9204, which  is incorporated by reference herein.     4.2.2 Claims must be submitted in writing.  All Claims and all supporting documentation and  certifications, as further detailed below, must be filed within fourteen (14) Days after the Claim arises.  Any  Claim which is not submitted prior to Final Payment is deemed waived.     4.2.3 A Claim must include the following:    .1 A statement that it is a Claim and must clearly specify the amount with respect to Claims  for payment, and must specify the days with respect to Claims for an extension of the  Contract Time;    .2 A detailed description of the act, error, omission, Differing Site Condition, event or other  circumstance giving rise to the Claim; and    .3 A statement demonstrating that a Change Order Request was submitted in a timely  manner as required by Section 7.2 of these General Conditions.      .4 All documents necessary to substantiate the Claim, including, without limitation:     (i). A detailed cost breakdown in the form required for submittal of Change Order  Requests and subject to the provisions in Article 7 of these General Conditions  prohibiting  adjustment to the Contract Sum be based upon any methodology  such as total cost or modified total cost methodologies that purports to  calculate DBE’s additional costs based on the difference between DBE’s Proposal  and DBE’s actual cost to perform the Work.     (ii). Copies of actual job cost records demonstrating that the costs have been  incurred.    (iii). If the Claim is based on an error, omission, conflict or ambiguity in the Contract  Documents: (i) a sworn statement by DBE and any Subcontractor involved in the  Claim, to the effect that the error, omission, conflict or ambiguity was not  discovered prior to submission of the Proposal, and (ii) if not discovered, a  statement demonstrating that the error, omission, conflict or ambiguity could  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  61 2016    PART 6 – GENERAL CONDITIONS  not have been discovered by DBE, its Subcontractor(s) or in exercise of the  degree of care required of them under the Contract Documents for review of  the Contract Documents prior to submission of the Proposal.    .5 If the Claim involves a request for adjustment of the Contract Time, written  documentation demonstrating that DBE has complied with the requirements of the  Contract Documents pertaining to proving the right to an extension of time and  demonstrating that DBE is entitled to an extension of time under the Contract  Documents.    .6 A written certification signed by a responsible managing officer of DBE’s organization,  who has the authority to sign subcontracts and purchase orders on behalf of DBE and  who has personally investigated and confirmed the truth and accuracy of the matters set  forth in such certification, in the following form:     I hereby certify under penalty of perjury under the laws of the State of California  that I am a managing officer of      and that I have reviewed the Claim presented  herewith on DBE’s behalf and/or on behalf of         and that the following statements  are true and correct.     (i) The facts alleged in or that form the basis for the Claim are true and  accurate; and,     (ii) DBE does not know of any facts or circumstances, not alleged in the  Claim, that by reason of their not being alleged render any fact or statement alleged in  the Claim materially misleading;  and,     (iii) DBE has, with respect to any request for money or damages alleged in  or that  forms the basis for the Claim, reviewed the job cost records  (including those  maintained by DBE and by any Subcontractor of any Tier, that is asserting all or any  portion of the Claim) and confirmed with reasonable certainty that the Losses or damages  suffered by DBE and/or  such Subcontractor were in fact suffered in the amounts and  for the reasons alleged in the Claim; and,     (iv) DBE has, with respect to any request for extension of time or claim of  Delay, disruption, hindrance or interference alleged in or that forms the basis for the  Claim, reviewed the job schedules (including those maintained by DBE and by any  Subcontractor involved in the Claim) and confirmed on an event‐by‐event basis that the  delays or disruption suffered by DBE and /or such Subcontractor were in fact  experienced   for the durations, in the manner, and with the consequent effects on the time and/or  sequence of performance of the Work, as alleged in the Claim; and,      (v) DBE has not received payment from City for, nor has DBE previously  released City from, any portion of the Claim.        Signature: ___________________________        Name: ______________________________        Title:  _______________________________        Company: ___________________________        Date: _______________________________  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  62 2016    PART 6 – GENERAL CONDITIONS    4.2.4 Failure to submit any of the information, documentation or certifications required herein  shall result in the Claim being returned to DBE without any obligation for the City to take further  action.      4.2.5 Claims shall be first submitted to City via the Construction Manager for decision by City.    4.2.6 Notwithstanding the submission of any Claim or the existence of any dispute regarding  any Claim, unless otherwise directed by City, DBE shall not delay, slow or stop performance of the  Work, but shall diligently proceed with performance in accordance with the Contract Documents  and City will continue to make payments as required by the Contract Documents.     4.2.8 No Claim may be asserted unless DBE has strictly complied with the requirements of  Section 4.2 of these General Conditions, which shall be considered conditions precedent to DBE’s  rights to assert the Claim and to initiate the Contract Dispute Resolution Process set forth below  with respect to such Claim.     4.2.9 Claims shall be responded to by City in writing within forty‐five (45) Days of receipt of the  Claim.       4.2.10 If DBE disputes City’s response, or if City fails to respond within the prescribed time set  forth above, DBE may so notify City, in writing, within fifteen (15) Days of City’s response or within  fifteen (15) Days of City’s failure to respond, and demand an informal conference to meet and  confer for settlement of the issues in dispute. Upon demand, City shall schedule a meet and  confer conference within thirty (30) Days (unless such time is extended by mutual agreement) for  discussion of settlement of the dispute.      4.2.11 If the Claim is not fully resolved during the meet and confer conference, as to those  portions of the Claim which remain in dispute, DBE commence the Contract Dispute Resolution  Process set forth below by filing a Statement of Contract Dispute with the City within thirty (30)  Days after receipt of City’s written response to the Claim, or within thirty (30) days following the  meet and confer conference if the parties have participated in a meet and confer conference. If  DBE fails to submit a Statement of Contract Dispute within the applicable thirty (30) day period,  City’s written response will become final and binding upon DBE, and DBE shall be deemed to have  waived and release any further right to pursue the Claim.     4.2.13 The Claim procedures set forth herein do not apply to the following:      (i) Penalties or forfeitures prescribed by statute or regulation imposed by a   governmental agency.     (ii) Tort claims for personal injury or death.     (iii) False claims liability under California Government Code Section 12650, et seq.     (iv) Defects in the Work first discovered by City after Final Payment by City to DBE.     (v) Stop notices.     (vi) The right of City to specific performance or injunctive relief to compel  performance of any provision of the Contract Documents.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  63 2016    PART 6 – GENERAL CONDITIONS  4.3 RESOLUTION OF CONTRACT DISPUTES.      Contract Disputes shall be resolved by the parties in accordance with the Contract Dispute Resolution Process set  forth in this Section 4.3 of the General Conditions  in lieu of any and all rights under the law that either party have  its rights adjudged by a trial court or jury. All Contract Disputes shall be subject to the Contract Dispute Resolution  Process set forth in this Section 4.3, which shall be the exclusive recourse of DBE and City for such Contract  Disputes. The Contract Dispute Resolution Process will be modified to comport with Public Contract code section  9204 with respect to claims subject to the provisions of section 9204.      4.3.1 Non‐Contract Disputes.  Contract Disputes shall not include any of the following:    (i) Penalties or forfeitures prescribed by statute or regulation imposed by a governmental  agency;  (ii) Third party tort claims for personal injury, property damage or death relating to any  Work performed by DBE or its Subcontractors or Sub‐Subcontractors of any tier;  (iii) False claims liability under California Government Code Section 12650, et. seq.;  (iv) Defects in the Work first discovered by City after Final Payment by City to DBE;  (v) Stop notices; or  (vi) The right of City to specific performance or injunctive relief to compel performance of  any provision of the Contract Documents.      4.3.2 Litigation, City Election.      Matters that do not constitute Contract Disputes shall be resolved by way of an action filed in the  Superior Court of the State of California, County of Santa Clara, and shall not be subject to the  Contract Dispute Resolution Process. However, the City reserves the right, in its sole and absolute  discretion, to treat such disputes as Contract Disputes. Upon written notice by City of its election  as provided in the preceding sentence, such dispute shall be submitted by the parties and finally  decided pursuant to the Contract Dispute Resolution Process in the manner as required for  Contract Disputes, including, without limitation, City’s right under Paragraph 4.3.5 to defer  resolution and final determination until after Final Completion of the Work.      4.3.3 Submission of Contract Dispute.      .1 By DBE.    DBEs may commence the Contract Dispute Resolution Process upon City's written response  denying all or part of a Claim pursuant to Section 4.2 of the General Conditions.  DBE shall submit  a written Statement of Contract Dispute (as set forth below) to City within thirty (30) Days after  receipt of City’s written response to the Claim, or within thirty (30) days following the meet and  confer conference if the parties have participated in a meet and confer conference.  Failure by  DBE to submit its Statement of Contract Dispute in a timely manner shall result in City’s decision  by City on the Claim becoming final and binding.  DBE’s Statement of Contract Dispute shall be  signed under penalty of perjury and shall state with specificity the events or circumstances giving  rise to the Contract Dispute, the dates of their occurrence and the asserted effect on the Contract  Sum and the Contract Time.  The Statement of Contract Dispute shall include adequate supporting  data to substantiate the disputed Claim, in compliance with the Change Order Request  requirements set forth herein.        .2 By City.    City's right to commence the Contract Dispute Resolution Process shall arise at any time following  City's actual discovery of the circumstances giving rise to the Contract Dispute.  City may also  assert a Contract Dispute in response to a Contract Dispute asserted by DBE.  A Statement of  Contract Dispute submitted by City shall state the events or circumstances giving rise to the  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  64 2016    PART 6 – GENERAL CONDITIONS  Contract Dispute, the dates of their occurrence and the damages or other relief claimed by City as  a result of such events.      .3 Contract Dispute Resolution Process.    The parties shall utilize each of the following steps in the Contract Dispute Resolution Process in  the sequence they appear below.  Each party shall participate fully and in good faith in each step  in the Contract Dispute Resolution Process, and good faith effort shall be a condition precedent to  the right of each party to proceed to the next step in the process.      4.3.4 Direct Negotiations.    Designated representatives of City and DBE shall meet as soon as possible (but not later than ten  (10) Days after receipt of the Statement of Contract Dispute) in a good faith effort to negotiate a  resolution to the Contract Dispute. Each party shall be represented in such negotiations by an  authorized representative with full knowledge of the details of the Claims or defenses being  asserted by such party in the negotiations, and with full authority to resolve such Contract Dispute  then and there, subject only to City’s obligation to obtain administrative and/or City Council  approval of any agreed settlement or resolution.  If the Contract Dispute involves the assertion of  a right or claim by a Subcontractor against DBE that is in turn being asserted by DBE against City  (“Pass‐Through Claim”), then the Subcontractor shall also have a representative attend the  negotiations, with the same authority and knowledge as described above.  Upon completion of  the meeting, if the Contract Dispute is not resolved, the parties may either continue the  negotiations or any party may declare negotiations ended.  All discussions that occur during such  negotiations and all documents prepared solely for the purpose of such negotiations shall be  confidential and privileged pursuant to California Evidence Code Sections 1119 and 1152.      4.3.5 Deferral of Contract Disputes.    Following the completion of the negotiations required by Paragraph 4.3.4, above, all unresolved  Contract Disputes shall be deferred pending Final Completion of the Project, subject to City’s right,  in its sole and absolute discretion, to require that the Contract Dispute Resolution Process  proceed prior to Final Completion.  All Contract Disputes that have been deferred until Final  Completion shall be consolidated within a reasonable time after Final Completion and thereafter  pursued to resolution pursuant to this Contract Dispute Resolution Process. The parties can  continue informal negotiations of Contract Disputes; provided, however, that such informal  negotiations shall not be alter the provision for deferring final determination and resolution of  unresolved Contract Disputes until after Final Completion.      4.3.6 Mediation.    If the Contract Dispute remains unresolved after negotiations pursuant to Paragraph 4.3.4, above,  the parties shall submit the Contract Dispute to non‐binding mediation before a mutually  acceptable third party mediator.    .1 Qualifications of Mediator.  The parties shall endeavor to select a mediator who is a  retired judge or an attorney with at least five (5) years of experience in public works  Design‐Build Contract law and in mediating public works construction disputes.  In  addition, the mediator shall have at least twenty (20) hours of formal training in  mediation skills.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  65 2016    PART 6 – GENERAL CONDITIONS  .2 Submission to Mediation and Selection of Mediator.  The party initiating mediation of a  Contract Dispute shall provide written notice to the other party of its decision to  mediate.  In the event the parties are unable to agree upon a mediator within fifteen (15)  Days after the receipt of such written notice, then the parties shall submit the matter to  JAMS at its San Francisco Regional Office for selection of a mediator in accordance with  the current Mediation Rules, except that if any such Mediation Rules conflict with or are  inconsistent with provisions of these Contract Documents, the provisions of the Contract  Documents shall control.    .3 Mediation Process.  The location of the mediation shall be at the offices of the mediator  or City, at the City’s election.  The costs of mediation shall be shared equally by the  parties.  The mediator shall provide an independent assessment on the merits of the  Contract Dispute and recommendations for resolution.  All discussions that occur during  the mediation and all documents prepared solely for the purpose of the mediation shall  be confidential and privileged pursuant to California Evidence Code Sections 1119 and  1152.  If the mediator declares that the parties are at impasse and notifies the parties in  writing that the mediation has concluded, DBE may, within sixty (60) days thereafter,  submit a written request that those portions of its Claim that remain unresolved be  submitted to binding arbitration as set forth below.  If DBE fails to request binding  arbitration within the 60‐day period, its Claim shall be deemed waived.      4.3.7 Binding Arbitration.    .1 Process. Any Claim submitted for binding arbitration, as set forth above, shall be  determined by arbitration at the San Francisco JAMS’ offices, and administered by JAMS  pursuant to its Engineering and Construction Arbitration Rules & Procedures for  Expedited Arbitration. Judgment on the Award may be entered in any court having  jurisdiction. This clause shall not preclude parties from seeking provisional remedies in  aid of arbitration from a court of appropriate jurisdiction within Santa Clara County, and  no other place.   .2 Waiver of Jury Trial.  DBE and City each voluntarily waives its right to a jury trial with  respect to any Contract Dispute that is subject to binding arbitration in accordance with  the provisions of this Paragraph 4.3.  DBE shall include this provision in its contracts with  its Subcontractors who provide any portion of the Work.    4.3.7 Non‐Waiver.      Participation in the Contract Dispute Resolution Process shall not waive, release or compromise any  defense of City, including, without limitation, any defense based on the assertion that the rights or Claims  of DBE that are the basis of a Contract Dispute were previously waived by DBE due to DBE’s failure to  comply with the Contract Documents, including, without limitation, DBE’s failure to comply with any time  periods for providing notice of requests for adjustments of the Contract Sum or Contract Time or for  submission of Claims or supporting documentation of Claims.      DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  66 2016    PART 6 – GENERAL CONDITIONS  ARTICLE 5 – SUBCONTRACTORS     5.1 DBE'S AWARD OF SUBCONTRACTS      5.1.1 DBE shall comply with the Subletting and Subcontracting Fair Practices Act, Public  Contract Code Sections 4100 through 4114.  Nothing herein shall be deemed to entitle DBE, without the  written approval of City, to substitute other Subcontractors for those named in DBE's List of Subcontractors  contained in the completed Proposal; and, except with such approval, no such substitution shall be made.  Should DBE violate any of the provisions of the Subletting and Subcontracting Fair Practices Act, such  violation shall be deemed a violation of the Design‐Build Contract, entitling City, without limitation to any  other rights or remedies under the law, to suspend or terminate the Design‐Build Contract.        5.1.2 Except as hereinafter provided, any increase in the cost of the Work or Contract Time  resulting from the replacement or substitution of a Subcontractor, shall be borne solely by DBE and  without any adjustment in Contract Sum or Contract Time.        5.1.3 Where a hearing is held pursuant to the provisions of Chapter 2, Division 5, Title 1 of the  Public Contract Code (commencing with Subparagraph 4100), by the awarding authority or a duly  appointed hearing officer, City’s representative shall prepare and certify a statement of all costs incurred  by City for investigation and conduct of the hearing, including the costs of any hearing officer and reporter  appointed.  The statement shall then be sent to DBE who shall reimburse City for such costs.  If not paid  separately, such reimbursement may be deducted from any money due and owing to DBE.       5.2 SUBCONTRACTOR RELATIONS      5.2.1 Prior to the execution of each subcontract agreement, DBE shall make available to each  proposed Subcontractor, copies of the Contract Documents.  In addition to requiring all members of the  Design‐Build Team to be bound by the terms of this Contract, DBE must incorporate the terms of these  Contract Documents into each subcontract, so that each Subcontractor will be bound by the terms of these  Contract Documents, including, but not limited to, the provisions for dispute resolution.  Within thirty (30)  Days of the Notice To Proceed, DBE shall provide City with a complete listing of all Subcontractors, which  shall include, but not be limited to, the Work contracted for, Subcontractor’s name, address, telephone  and facsimile numbers, form for doing business (i.e, sole proprietor, corporation, partnership), point‐of‐ contact and Subcontractor’s license classification and number.      5.2.2 Any part of the Work performed for DBE by a first Tier Subcontractor shall be pursuant to  a written subcontract.  Each such subcontract shall require that the Subcontractor:      (i) Perform the Work in accordance with the terms of the Contract Documents.    (ii) Assume toward DBE all the obligations and responsibilities which DBE assumes towards  City by the Contract Documents.    (iii) Preserve and protect the rights of City under the Contract Documents with respect to the  Work to be performed by the Subcontractor so that subcontracting thereof will not  prejudice such rights.     (iv) Waive all rights that the Subcontractor may have against City for damages caused by fire   or other perils covered by builder's risk property insurance carried by DBE or City,   except for such rights Subcontractor may have to the proceeds of such insurance held   by City under Article 11 of these General Conditions.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  67 2016    PART 6 – GENERAL CONDITIONS   (v) Afford City and entities and agencies designated by City the same rights and remedies   with respect to access to and the right to audit and the right to copy at City's cost all of   the Subcontractor's books, records, contracts, correspondence, instructions, drawings,   receipts, vouchers, purchase orders and memoranda relating to the Work and requiring   the Subcontractor to preserve all such records and other items for a period of at least   three (3) years after Final Completion.    (vi) Recognize the rights of City under Section 5.3 of the General Conditions, Contingent  Assignment of Subcontracts, including, without limitation, City’s right to elect to accept  assignment of the subcontract and to retain Subcontractor pursuant to the terms of the  subcontract, to complete the unperformed obligations under the subcontract and, if  requested by City, to execute a written agreement on terms acceptable to City  confirming that the Subcontractor is bound to City under the same terms as the  subcontract.    (vii) Submit Applications for payment, requests for Change Orders and extensions of time and  Claims, and to comply with all other notice and submission requirements of the Contract  Documents, sufficiently in advance to allow DBE time to comply with its obligations under  the Contract Documents.    (viii) Purchase and maintain insurance in accordance with the requirements of the Contract  Documents and reserving the right to City to purchase, in its sole discretion, such  insurance pursuant to an City Controlled Insurance or other form of wrap‐up program.     (ix) Provide the same defense indemnification of the City as is required of the DBE.     (x) Agree to participate in the dispute resolution procedures specified in the Construction   Contract, at the election of City.    5.2.3 DBE shall promptly, after execution, furnish to City true, complete, and executed copies  of all subcontracts, and any change orders and modifications thereto. Progress payments shall not be made  for items of Work for which City has not received executed subcontracts and, if applicable, Change Orders.      5.2.4 Nothing contained in the Contract Documents shall create any contractual relationship   between any Subcontractor and City, except when, and only to the extent that, City elects to accept the   assignment of the subcontract with such Subcontractor pursuant to Section 5.3, Contingent Assignment   of Subcontracts.  Notwithstanding the foregoing, City is deemed a third party beneficiary of each   subcontract agreement.    5.2.5 City and the Construction Manager shall have the right to communicate with DBE’s  Subcontractors with respect to matters that are related to DBE’s performance of its obligations under the  Contract Documents. DBE shall be provided with a copy of all such written communications. Such  communications shall not create or be interpreted as creating any contractual relationship between City or  the Construction Manager and any such Subcontractor.     5.3 CONTINGENT ASSIGNMENT OF SUBCONTRACTS    In the event of any suspension or termination of the Design‐Build Contract, DBE is hereby deemed to have  offered to assign to City all its interest in contracts with Subcontractors now or hereafter entered into by  DBE for performance of any part of the Work.  The assignment will be effective upon acceptance by City in  writing and only as to those contracts which City designates in writing. City may accept, at its sole election,  said assignment at any time during the course of the Work and prior to Final Completion in the event of a  suspension or termination of DBE's rights under the Contract Documents. Such assignment is part of the  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  68 2016    PART 6 – GENERAL CONDITIONS  consideration to City for entering into the Contract with DBE and may not be withdrawn prior to Final  Completion.    5.4 DBE AND SUBCONTRACTOR RESPONSIBILITY    DBE shall be responsible to City for acts and omissions of DBE's agents, employees, and of DBE’s  Subcontractors, and their respective agents and employees. Unless otherwise stated in or a contrary  intention is reasonably inferable from the Contract Documents, references to DBE, when used in reference  to an obligation bearing upon performance of the Work, shall be deemed to include DBE’s Subcontractors.    ARTICLE 6 – CONSTRUCTION BY CITY OR BY SEPARATE CONTRACTORS     6.1 CITY'S RIGHT TO PERFORM CONSTRUCTION AND TO AWARD SEPARATE CONTRACTS      6.1.1 City reserves the right to award separate contracts for, or to perform with its own forces,  construction or operations related to the Work or other construction or operations at or affecting the Site,  including portions of the Work which have been deleted by modification.  DBE shall cooperate with City's  forces and Separate Contractors.      6.1.2 City shall provide coordination of the activities of City forces and of each Separate  Contractor with the Work of DBE.  DBE shall participate with City and Separate Contractors in joint review  of construction schedules and Project requirements when directed to do so.  DBE shall make necessary  revisions to the Construction Schedule after such joint review.      6.1.3 Without limitation upon any of the rights or remedies of City under the Contract  Documents or under law arising from a default by DBE, in the event that DBE fails to have personnel on Site  to supervise the Work, City shall have the right, in its sole discretion, but not the responsibility, upon  twenty‐four (24) hours’ telephonic notice to DBE, to provide such supervision on a temporary basis. DBE  shall, notwithstanding City’s providing such temporary supervision, remain solely responsible for all actions  of its personnel and Subcontractors and shall defend and indemnify City in accordance with the Design‐ Build Contract against any Losses arising therefrom. City shall have the right, in its discretion, to deduct  from the sums owing to DBE the reasonable cost of such temporary supervision.       6.2 MUTUAL RESPONSIBILITY      6.2.1 DBE shall be responsible for affording Separate Contractors reasonable opportunity for  introduction and storage of their materials and equipment and performance of their activities.  DBE shall  schedule and coordinate its Design‐Build Services with the construction and operations of Separate  Contractors as required by the Contract Documents.     6.2.2 If a portion of the Work is dependent upon the proper execution or results of other  construction or operations by Separate Contractors, DBE shall inspect such other construction or  operations before proceeding with its portion of the Work. DBE shall promptly report to City apparent  discrepancies or defects which render the other construction or operations unsuitable to receive the DBE’s  Work.  Unless otherwise directed by City, DBE shall not proceed with the portion of the Work affected until  apparent discrepancies or defects have been corrected. Failure of DBE to so report within a reasonable  time after discovering such discrepancies or defects shall constitute an acknowledgment that the other  construction or operations by City or Separate Contractors is suitable to receive the Work, except as to  defects not then reasonably discoverable.      6.2.3 In the event of Delays, improperly timed activities or Defective Work by the DBE or the  Separate Contractors, the costs of such occurrences shall be borne by the party responsible therefor.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  69 2016    PART 6 – GENERAL CONDITIONS    6.2.4 If DBE wrongfully causes damage to completed or partially completed construction or to  property of City or Separate Contractors, DBE shall promptly remedy damage as provided in Paragraph  12.2 of these General Conditions.      6.2.5 If a dispute, or other matters in question arise between DBE and a Separate Contractor,  these occurrences shall be subject to the provisions of Section 4.2 and 4.3 of the General Conditions.  DBE  shall immediately notify the Construction Manager in writing of such occurrences.     6.3 CITY’S RIGHT TO CLEAN UP    If a dispute arises between DBE and Separate Contractors as to the responsibility under their respective  contracts for maintaining the Site and surrounding areas free from waste materials and rubbish, City may  clean up and allocate the cost between those firms it deems, in its sole discretion, to be responsible.  ARTICLE 7 – CHANGES     7.1 CHANGES      7.1.1 City may, at any time and without notice to DBE’s sureties, order Changes in the Work  without invalidating the Design‐Build Contract and without relieving DBE’s sureties of their obligations to  City.        7.1.2 City shall receive a deductive adjustment in the Contract Sum for Changes that result in a  reduction in the cost to perform the Work and shall be entitled to an adjustment reducing the Contract  Time for Changes that enable the DBE to complete the Work earlier than the Contract Time.      7.1.3 Unless such rights have been waived and provided that DBE has complied with the  requirements of the Contract Documents with respect to, without limitation, complete and timely  submission of all notices, requests and supporting documentation, DBE shall receive an additive  adjustment to the Contract Sum for Changes that increase the cost to perform the Work and/or an  adjustment extending the Contract Time for Excusable Delay (subject to offset for concurrent Unexcused  Delay).     7.1.4 DBE will not be entitled to a change in the Contract Sum or Contract Time for work that is  encompassed within the scope of the Bridging Documents, the Construction Documents, or for conditions  that were disclosed or discernable prior to submission of DBE’s proposal. DBE shall not be entitled to an  adjustment of the Contract Sum or Contract Time for Changes that are not authorized by an Approved  Change Order or Field Order signed by City or Construction Manager.  All Changes in the Work that are the  basis of an adjustment to the Contract Sum or Contract Time must be authorized in advance, in writing, by  City or Construction Manager.  Accordingly, no verbal directions, course of conduct between the parties or  express or implied Acceptance of Changes or Work, and no claim that the City has been unjustly enriched  (whether or not there has been such enrichment) shall be the basis for an adjustment to the Contract Sum  or Contract Time if DBE has not obtained advance written authorization to perform the Change in the  manner required herein.     7.1.5  City or the Construction Manager may authorize and direct Changes by requesting that  DBE submit a Change Order Request or by issuing a Field Order.  A Field Order may be issued to direct  performance of Work under the following circumstances:      .1 When there is a dispute as to whether or not the Work described therein  constitutes or includes a Change or Extra Work,   .2 When there is a dispute regarding the basis or amount of compensation for  Changed or Extra Work,  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  70 2016    PART 6 – GENERAL CONDITIONS  .3 When there is a dispute regarding whether or how the Contract Time should be  adjusted, or  .4 As otherwise deemed necessary by City to ensure the timely performance of the  Work and timely completion of the Project.      The purpose of a Field Order is to ensure the timely performance of the Work and timely completion of the  Project, and issuance of a Field Order shall not be construed as an acknowledgment by City that the Work  described constitutes a Change or Extra Work if that is in fact not the case.      7.1.6 City can make whatever Changes that it determines in its sole discretion are necessary  and in its best interests and under no circumstances shall the number (individual or cumulative value) or  scope of Changes become a basis for DBE to claim that the Design‐Build Contract has been rescinded,  terminated, abandoned or should be reformed nor shall such circumstances be the basis for DBE, or any  Subcontractor to recover any compensation or damages not permitted by, or in excess of that allowed  under, the Contract Documents.      7.1.7 City shall have authority to order minor Changes in the Work that do not increase the  cost or time to perform the Work, and which are consistent with the intent of the Contract Documents.   Such changes may be directed by a Field Order, and shall be binding on City and DBE.  DBE shall carry out  such written orders promptly.     7.2 CHANGE ORDER REQUESTS AND CHANGE ORDERS       7.2.1 DBE may request adjustments to the Contract Sum or Contract Time or the terms of a  Field Order by submitting a written Change Order Request if, and only if, DBE follows the procedures  specified in the Contract Documents, including, without limitation, the procedures set forth in this Section  7.2.  A Change Order Request must be submitted within ten (10) Days after the occurrence of the  circumstances giving rise thereto. At the City’s election, the DBE shall submit all Change Order requests on  a form prepared by the City. The Change Order Request must clearly describe the circumstances that are  the basis of the Change, with reference, to the particular provisions of the Contract Documents involved,  and also to all other directly relevant documents, including, but not limited to, related Requests for  Information and responses thereto, and Field Orders.  A Change Order Request seeking an adjustment to  the Contract Sum must identify the proposed basis of compensation, the amount of the requested  adjustment, and a detailed breakdown of the amount requested.  A Change Order Request seeking an  adjustment to the Contract Time must include all information required by the Contract Documents,  including, but not limited to strict compliance with Section 8.5 of the General Conditions pertaining to  requests for extension of Contract Time.  A request for an extension of Contract Time must be  accompanied by a "Fragnet" or “time impact analysis," which identifies all critical and non‐critical activities  affected by the Change Order Request and showing logic ties into all existing affected activities noted on  the latest approved, updated Construction Schedule.  Change Order Requests must be submitted to the  Construction Manager.  Incomplete Change Order Requests or requests that are not submitted on the  City’s Change Order Request Form will be returned without review.          7.2.2 Adjustments to the Contract Sum, whether increases or decreases, shall be computed at  City's sole election on the basis of one or more of the following methods:    .1 Unit Pricing:  Unit prices stated in the Contract Documents or approved  Schedule of Values or agreed upon by City and DBE, which shall be deemed to  include all Allowable Costs, DBE Markup and Subcontractor Markup.    .2 Lump Sum Pricing: A lump sum agreed upon by City and DBE, based on the  estimated Allowable Costs, DBE Markup, and Subcontractor Markup computed  in accordance with this Section.  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  71 2016    PART 6 – GENERAL CONDITIONS    .3 Time and Materials:  Work performed on a time and materials basis shall be  calculated as the sum of Allowable Costs, plus applicable DBE Markup, as set  forth herein.    The above methods are the exclusive methods for calculating adjustments to the Contract Sum.  Under no  circumstances will adjustment to the Contract Sum be based upon any methodology such as total cost or  modified total cost methodologies that purports to calculate DBE’s additional costs based on the difference  between DBE’s total actual Project or line item costs and its original Proposal estimate for the Project or  any original Proposal estimate line item.      7.2.3 Changes involving Extra Work that City elects to have performed on a time and material  basis, whether performed by DBE's forces or the forces of Subcontractors, shall be compensated by an  increase in the Contract Sum based on actual Allowable Costs and applicable Markup, as set forth herein.  When Work is performed on a time and material basis, by DBE or any of its Subcontractors, DBE shall  submit on a daily basis to the Construction Manager daily time and material tickets which include the  identification number assigned to the Change; the location and description of the Change; the classification  of labor employed (and names and social security numbers if requested); the materials used; the  equipment rented (not tools); and such other receipts, invoices, or other evidence of cost as the  Construction Manager may require. The Construction Manager may require authentication of all time and  material tickets and invoices by persons designated by the Construction Manager for such purpose.  The  failure of DBE to provide any required authentication shall, if City elects to treat it as such, constitute a  waiver by DBE of any right to adjustment of the Contract Sum for the cost of all or that portion of the Extra  Work covered by a non‐authenticated ticket or subsequent invoice.  The adjustment to the Contract Sum  for the Extra Work will be based on the total sum of Allowable Costs for performance of that Extra Work  and applicable Markup as provided herein.        7.2.4 Allowable Costs include and are limited to the sum of direct, actual costs necessarily  incurred by DBE and any Subcontractors that actually perform Extra Work, and are strictly limited to the  following:    .1 Labor.  The actual costs for straight‐time (and the premium time portion of overtime, if  approved in writing in advance by City or the Construction Manager) wages or salaries for  employees performing the Extra Work, whether at the Site, or at fabrication sites off the  Site, plus employer payments collectively referred to as "Fringe Benefits and Payroll  Taxes," of payroll, taxes and insurance, health and welfare pension, vacation,  apprenticeship funds, and other direct costs required by Federal, State or local laws, as  well as assessments or benefits required by lawful collective bargaining agreements.  The  use of employees with a labor classification, which would increase the Allowable Costs  will not be permitted unless DBE establishes the necessity for such additional costs.   Labor costs for equipment operators and helpers shall be payable under this Paragraph  only when such costs are not included in the invoice for equipment rental.    .2 Material.  The actual cost of materials, supplies and consumable items which are  required for the Work at invoice or lowest current price at which such materials are  locally available and delivered to the Site in the quantities involved, including sales tax,  freight and delivery.  City reserves the right to approve materials and sources of supply,  or to supply materials to DBE, if necessary, for the Work.  No Markup shall be applied to  any material provided by City.  Material re‐stocking charges shall be limited to 5% of the  amount of material. All discounts, rebates and refunds from the sale of surplus materials  and consumable items shall accrue to City, and DBE shall make provision so that they  may be obtained.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  72 2016    PART 6 – GENERAL CONDITIONS  .3 Tool and Equipment Rental.  Rental charges actually incurred for necessary machinery  and equipment, whether owned or hired, as authorized in writing by City or the  Construction Manager, exclusive of hand tools. No payment will be made for the use of  tools that have a replacement value of $500 or less.  When the equipment is owned by  DBE, the rental rate shall be as listed for such equipment in the California Department of  Transportation publication entitled "Labor Surcharge and Equipment Rental Rates,"  which is in effect on the date the Work is accomplished.  When equipment is not listed in  said publication, the rate to be paid shall be as herein defined, or a suitable rental rate  for such equipment will be established by the Construction Manager.  Regardless of  ownership, the rates to be used in determining equipment rental cost shall not exceed  listed rates prevailing locally at equipment rental agencies or distributors at the time the  work is performed.  The rental rates paid shall include the cost of fuel, oil, lubrication,  supplies, small tools, necessary attachments, repairs and maintenance of any kind,  depreciation, storage, insurance and all incidentals.  If equipment is used intermittently,  when not in use it shall be returned to its rental source unless DBE elects to keep it at the  Site at no expense to City.  The reported rental time for equipment already at the Site  shall be the duration of its use on the Extra Work, commencing at the time it is first put  into actual operation on the Extra Work, plus the time required to move it from its  previous site and back, or to a closer site.    .4 Royalties and Permits.  Costs of royalties and permits solely related to the Extra or  Deleted Work.    .5 Insurance and Bonds.  Additional costs of insurance and bonds, not to exceed two  percent (2%) of the total of Parts .1 through .4, above.     7.2.5 Allowable Costs shall not include any of the following, which are deemed to be included  in DBE's Markup:      (i) Superintendent(s)      (ii) Assistant Superintendent (s)      (iii) Project Engineer(s), Assistant Project Engineer(s).      (iv) Project Manager(s), Assistant Project Manager(s).      (v) Scheduler(s), Administrative Assistant(s), Health and Safety personnel.     (vi) Estimator(s), Clerk(s), Secretary(s), Accountant(s) or any Home Office personnel.     (vii) Drafting or detailing.     (viii) Small tools (with a replacement value under $500).     (ix) Home or field office expenses, including staff, materials, and supplies.     (x) Trailer or storage rental and expense, whether on the Site or off the Site.     (xi) Data processing personnel and equipment.      (xii) Site fencing.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  73 2016    PART 6 – GENERAL CONDITIONS   (xiii) Utilities, including, without limitation, gas, electric, sewer, water, telephones.     (xiv) Telephone, cell phone, radios, computer, tablet devices, facsimile, e‐mail and copier.     (xv) Overhead, administrative, or general expenses of any kind.    (xvi) Loss of efficiency or productivity, or other impact cost due to the effect of the Extra Work  on the performance of other Work or the Work of other trades on the Project.     (xvii) Capital expenses, including interest on capital employed in connection with Extra Work.    (xviii) Legal costs.      (xix) Federal, State, or local income and franchise taxes.      (xx) Profit.    (xxi) Costs incurred more than twenty (20) Days prior to submission of a Change Order  Request seeking compensation for those costs.     (xxii) Cost of any item not specifically and expressly included in Allowable Costs.     7.2.6 DBE Markup for Extra Work is to be calculated as ten percent (10%) of the Allowable  Costs DBE or Subcontractor actually incurred to perform the Work with its own forces.  Subcontractor  Markup by DBE for Extra Work performed by Subcontractor is to be calculated as fifteen percent (15%) of  the total Subcontractor Allowable Costs incurred for Extra Work.  The total amount of markup for Extra  Work may not exceed twenty‐five percent (25%) of the total Allowable Costs.      7.2.7 Change Order Requests or requests for payment for time and material work directed by a  Field Order must include a complete breakdown of actual costs, including credits, and shall itemize all  Allowable Costs, subcontract costs if applicable, DBE Markup, and Subcontractor Markup if applicable. All  claimed costs must be fully documented and objectively verifiable. In connection with the foregoing, DBE  must generate and maintain complete and accurate cost accounting records that will reflect:    .1 The actual Allowable Costs incurred or saved for each individual item of Extra Work or  Deleted Work, and    .2 On an event‐by‐event basis, the effect of each Delay that forms the basis of any request  for extension of time, regardless of scope, number, complexity, cumulative effect or time  of issuance or occurrence.      7.2.8 The Contract Sum will be adjusted for direct Allowable Costs incurred due to Excusable  Delay only if and to the extent allowed by the Contract for Compensable Delay.  Such adjustments in the  Contract Sum shall be DBE’s sole and exclusive remedy and recovery for Excusable Delay, including any  alleged disruption, hindrance, interference, loss of productivity, labor or material cost escalations,  inefficiency, acceleration, impact costs, extended or extraordinary overhead (direct or indirect), home  office overhead, or other Losses or damages due to Delay, of any kind.      DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  74 2016    PART 6 – GENERAL CONDITIONS    7.2.9 City has the right to increase or decrease the quantity of any unit price item for which an  estimated quantity is stated in the Contract Documents, and the Contract Sum will be adjusted accordingly.   7.2.10  Allowance Adjustments: An Allowance is an amount included in the Proposal for Work  that may or may not be included in the Project, depending on conditions that will not become known until  after Proposal time.  If the Contract Sum includes an Allowance and the cost of performing the Work  covered by that Allowance is greater or less than the stated amount, the Contract Sum shall be increased  or decreased accordingly by the amount of the difference.  The Contract Sum shall also be adjusted by the  amount of any unused Allowance that was specifically and expressly included in the original Contract Sum.      7.2.11  Change Orders:  Approved Change Order Requests and Changes directed by a Field  Order, including adjustments to Contract Sum and Contract Price, shall be incorporated into a Change  Order for approval by the City.   City shall prepare each Change Order for execution by DBE and the City.   Change Orders shall be in substantially the same form as Attachment B to the General Conditions.  An  Approved Change Order becomes binding upon City and DBE when fully executed by both parties.  Full  execution of a Change Order is deemed full resolution, settlement, accord and satisfaction with respect to  any and all pending or future Claims for cost and extensions of time that were asserted, or that could have  been asserted, in connection with the Work covered by the Change Order, whether known or unknown at  the time of execution of the Change Order, and that are related to the subject matter of the Change Order,  including, without limitation, all Claims, costs or damages for Delay, disruption, hindrance, interference,  extended or extraordinary direct and indirect overhead, multiplicity of Changes, loss of productivity, labor  or material cost escalations, inefficiency, the impact of the Change on the Work, legal expenses, consultant  costs, interest, lost profits or revenue, bond or insurance costs, currency fluctuations, changes in taxes or  other related Claims, costs or damages. Change Orders shall be executed by DBE in the form approved by  the City Council or its authorized designee, and without any express reservation of rights by DBE to reserve  for the future the right to assert or recover from City any such Claims, costs or damages.      7.2.12 If DBE fails to timely execute a Change Order, the City may unilaterally approve the  Change Order to increase the Contract Sum and/or to extend the Contract Time.  DBE may dispute the  terms of a unilaterally‐approved Change Order, in whole or in part, by submitting a Claim in accordance  with the Dispute Resolution Procedures set forth herein within fourteen (14) days after the Change Order  is approved by the City.  If DBE fails to submit a Claim within that 14‐day period, with respect to all or part  of the unilaterally‐approved Change Order, those portions of the Change Order which have not been  disputed by timely submission of a Claim shall be deemed to have the same effect as if the Change Order  was fully executed by both parties as set forth above.       7.3 FIELD ORDERS    A Field Order will include a description of the Work to be performed, and the selected basis for adjusting  the Contract Sum (increase or decrease) as set forth herein  (i.e., unit pricing if applicable, lump sum, or  time and materials).  A Field Order may or may not include the total amount of the City’s proposed  adjustment to the Contract Sum or Contract Time, and may also include a not‐to‐exceed limit for any  increases to the Contract Sum.  Upon receipt of a Field Order, DBE shall, within a reasonable time, proceed  with the Work described in the Field Order.  If DBE disputes the proposed basis or amount of adjustment to  the Contract Sum or Contract Time, it may request to change the disputed portions of the Field Order by  submitting a Change Order Request within ten (10) Days following issuance of the disputed Field Order.  Failure by DBE to submit a timely Change Order Request seeking modification of the terms of the Field  Order shall be deemed full acceptance of and agreement to all of the terms of the Field Order, and a  release and waiver of any right to subsequently dispute any or all of the terms of that Field Order.  Field  Orders shall be in substantially the same form as Attachment A to the General Conditions. DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  75 2016    PART 6 – GENERAL CONDITIONS   7.4 DISPUTES REGARDING CHANGES    No dispute, disagreement, nor failure of the parties to reach agreement regarding the amount, if any, of  any adjustment to the Contract Sum or Contract Time, shall relieve DBE from the obligation to proceed  with performance of the Design‐Build Services, including, without limitation, performance of Work directed  by a Field Order or as modified by a Change Order, promptly and expeditiously.  DBE shall not delay, slow,  interrupt, or suspend the performance of any Design‐Build Services or any Change because of a dispute  between the parties, including, but not limited to, disputes pertaining to an adjustment in the Contract  Sum or Contract Time.  If DBE disputes the rejection of any Change Order Request in whole or in part,  DBE’s exclusive remedy is to submit a Claim in compliance with the Dispute Resolution Procedures set forth  in Article 4 herein.  ARTICLE 8 – CONTRACT TIME     8.1 COMMENCEMENT OF THE WORK    Commencement of the Design‐Build Services shall begin on the date specified in the Notice to Proceed.     8.2 PROGRESS AND COMPLETION    8.2.1 DBE agrees that the Contract Time is reasonable for performing the Design‐Build Services  and that DBE is able to perform the Work within the Contract Time.    .1 The Construction Schedule may reflect a period of performance that is shorter than the  Contract Time; provided however, that the difference shall be deemed as float and  nothing in this Paragraph or in any other provision of the Contract Documents shall be  construed as creating any contractual right, express or implied, on the part of DBE to  finish the Project earlier than the Contract Time and under no circumstances shall City be  liable to DBE for any costs, damages or compensation due to the inability of DBE to  complete the Design‐Build Services earlier than the Contract Time, regardless of the  cause, including, without limitation, acts or omissions (intentional or negligent) of City.    .2 DBE has included in its Proposal price the costs of all DBE and Subcontractor overhead  (direct and indirect) for the entire duration of the Contract Time. The above costs are  included in DBE’s Proposal notwithstanding DBE's anticipation of completion in fewer  days than established by the Contract Time.    .3 No increase in the Contract Sum shall be made or granted for Delay if DBE completes the  Design‐Build Services before expiration of the Contract Time.    .4 No reduction in the Contract Sum shall be made nor will DBE be required to remain on  the Project Site if the Design‐Build Services is completed before expiration of the  Contract Time.    .5 The Construction Manager will schedule and hold weekly progress meetings and other  meetings to be required by progress of the Work as determined by the Construction  Manager.  DBE and/or DBE's designee shall be present at each meeting.  DBE may also be  required to request attendance by representatives of DBE’s suppliers, manufacturers and  Subcontractors.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  76 2016    PART 6 – GENERAL CONDITIONS    8.2.2 Except by agreement or instruction of City in writing, DBE shall not commence operations  on the Site or elsewhere prior to the effective date of insurance required by Article 11 to be furnished by  DBE.  DBE’s obligations to commence the Design‐Build Services and to complete the Design‐Build Services  within the Contract Time shall not be changed by the effective date of such insurance.      8.2.3 DBE shall proceed expeditiously with adequate forces and shall achieve Substantial  Completion within the Contract Time.  If City determines and notifies DBE that DBE’s progress is such that  DBE will not complete the Design‐Build Services within the Contract Time, DBE shall, immediately and at no  additional cost to City, take all measures necessary, including working such overtime and additional shifts  (other than City’s normal working hours of 8:00 AM to 6:00 PM, Monday through Friday and 9:00 AM to  6:00 PM on Saturday), to ensure that the Work is Substantially Completed within the Contract Time.  Upon  receipt of such notice from City, DBE shall immediately respond in writing setting forth a detailed plan for  accelerating the Work in a manner acceptable to City.  DBE shall not be entitled to any reimbursement or  payment of costs, expenses or damages incurred as a result of an acceleration of the Work. City may also  take all necessary measures to prevent the need for subsequent accelerations of the Work.  DBE shall  reimburse City, or City may withhold from payment due to DBE, sums expended by City to perform such  measures.      8.2.4. During unfavorable weather, wet ground or other unsuitable construction conditions,  DBE shall confine the operations to Work that will not be affected adversely by such conditions.  No  portion of the Work shall be constructed under conditions which would affect adversely the quality thereof  or be detrimental to the quality of water discharges, unless special means or precautions are taken by DBE  to perform the Work in a proper and satisfactory manner.    8.3 CONSTRUCTION HOURS    Work shall be performed during the hours of 8:00 AM to 6:00 PM Monday through Friday and 9:00 AM to  6:00 PM on Saturday, unless otherwise specified in the Special Provisions or approved in writing by the City  Engineer.  Construction is prohibited on Sundays and holidays defined in Section 8.4 below.     8.4 HOLIDAYS     No work may be performed on the City holidays identified:    January 1 (New Year’s Day)  Third Monday in January (Martin Luther King Day)  Third Monday in February (Washington’s Birthday)  Last Monday in May (Memorial Day)  July 4 (Independence Day)  First Monday in September (Labor Day)  Second Monday in October (Columbus Day)  November 11 (Veteran’s Day)  Fourth Thursday in November (Thanksgiving Day)  Day after Thanksgiving  December 25 (Christmas Day)    In the event that any of the aforementioned days falls on a Sunday, the following Monday shall be  considered a holiday.  In the event that any of the above days falls on a Saturday, then the preceding Friday  shall be considered a holiday.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  77 2016    PART 6 – GENERAL CONDITIONS   8.5 DELAY      8.5.1 DBE may request an extension of the Contract Time for an Excusable Delay or a  Compensable Delay, subject to the following:     .1 In order to avoid double counting concurrent Delays, if an Excusable Delay and a   Compensable Delay occur concurrently, the maximum extension of the Contract Time   shall be the number of days from the commencement of the first Delay to the cessation   of the Delay which ends last.     .2 If an Unexcused Delay occurs concurrently with either an Excusable Delay or a   Compensable Delay, the maximum extension of the Contract Time shall be the number   of Days, if any, by which the Excusable Delay or the Compensable Delay exceeds the   Unexcused Delay.    .3 If an Unexcused Delay occurs concurrently with both an Excusable Delay and a  Compensable Delay, the maximum extension of the Contract Time shall be the number of  Days, if any, by which the number of Days of Excusable Delay, as determined pursuant  these General Conditions, exceeds the number of Days of the Unexcused Delay.      8.5.2 As a condition precedent to DBE's right to an extension of Time adjusting the Contract  Time and the Contract Sum for Compensable Delay, DBE must provide written notice to City within ten (10)  Days of the date that DBE learned of the Delay or should have learned of the Delay in exercise of diligence  and reasonable care, setting forth:      (i) A description of the Delay;      (ii) A statement that the Delay is critical to completion; and     (iii) The probable effect of the Delay in terms of the number of Days' extension DBE   believes are required to the Contract Time.    The written notice required by this Paragraph is necessary for City to adequately monitor the progress of  the Design‐build Services, to differentiate between critical and non‐critical Delays, and to prioritize its  actions in a manner that is appropriately targeted to mitigate the effect of Delays.  Accordingly, DBE’s  failure to provide written notice in the manner required by this Paragraph 8.5.2 shall constitute DBE’s  waiver of the right to an adjustment of the Contract Sum and Contract Time on account thereby, regardless  of whether the circumstances of the Delay may have been known or suspected by City or the Construction  Manager and that no other form of notice (including, without limitation, meeting minutes, log entries or  schedule updates) shall suffice as constituting notice to City in accordance with this Paragraph 8.5.2.    8.5.3 Adequate supporting data for a request for extension of time shall include both of the  following:    (i) All relevant scheduling data including a Fragnet, and  (ii) A detailed, event‐by‐event description of the impact of each event on completion of  Work.  Documentary support for any related increase in the Contract Sum must include  both of the following:   (a) A detailed cost breakdown, and   (b) Supporting cost data in such form and including such information and  other  supporting data as required for submission of Change Order Requests.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  78 2016    PART 6 – GENERAL CONDITIONS    8.5.4 City may order Changes, whether or not resulting in Extra Work and regardless of the  extent and number of Changes, or may suspend the Design‐Build Services.      8.5.5 The determination of whether a Delay is an Excusable Delay, Compensable Delay or  Unexcused Delay shall not be affected by the fact that any earlier Delay occurred, regardless of fault or  causation.      8.5.6 All time limits stated in the Contract Documents are of the essence.     8.5.7 Excusable Delay means any Delay to the path of activities that is critical to Substantial  Completion of the Work within the Contract Time caused by conditions beyond the control or  foreseeability, and without the fault or negligence of DBE or its Subcontractors, such as, but not  limited to: war, embargoes, fire, unavoidable casualties, unusual delays in transportation, national  emergency, and stormy and inclement weather conditions that are unusual and unseasonable and  in which the Work cannot continue.  Without limitation to the foregoing, the financial inability of  DBE or any Subcontractor, shall not be deemed conditions beyond DBE's control or foreseeability.   DBE may claim an Excusable Delay only if all Work on a critically scheduled activity is stopped for  more than six (6) hours of a normal eight (8) hour work day, or if three to six hours are lost in one  work day, then it may be claimed for one‐half day.    8.5.7.1 Excusable Delay does not include Delay caused by weather conditions which are  normal for the location of the Project, as determined by weather records for the  preceding five (5) year period.    8.5.7.2 Excusable Delay does not include Delay caused by DBE’s failure to order  equipment and materials sufficiently in advance of the time needed for the Work.     8.5.7.3 Excusable Delay does not include Delay caused by DBE’s failure to provide  adequate notification to utility companies for connections or services necessary for the  timely performance and completion of the Work.    8.5.7.4 Excusable Delay does not include Delay caused by foreseeable conditions DBE  could have ascertained from reasonably diligent inspection of the Site and/or review of  the Contract Documents.     8.5.8 Compensable Delay means any Excusable Delay to the path of activities that is critical to  DBE’s Substantial Completion of the Work within the Contract Time, which Delay is all of the following:  (i) Solely due to acts or omissions within the City’s control, including but not limited to  Changes requested by City that involve Extra Work;    (ii) Not due, in whole or in part, to the fault or negligence or breach of DBE or any  Subcontractor; and      (iii) Not concurrent with another Excusable Delay or any Unexcused Delay.     8.5.9 Compensation for delay shall be limited to actual, direct, reasonable, and substantiated  Project costs, and shall not include home office overhead, or markup for overhead and profit.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  79 2016    PART 6 – GENERAL CONDITIONS       ARTICLE 9 – PAYMENTS AND COMPLETION      9.1 SCHEDULE OF VALUES     Within thirty (30) Days after signing the Contract, but in any event not later than fourteen (14)  Days  following receipt of the Notice to Proceed, DBE shall submit to City through the Construction Manager a Schedule of  Values reflecting cost breakdown of the Contract Sum in a form approved by the Construction Manager.  The  Schedule of Values shall itemize as separate line items the cost of each scheduled Design Services and Construction  Services activity and all other costs, including warranties, Record Documents, insurance, bonds, overhead and  profit, the total of which shall equal the Contract Sum and shall be made out in a form approved by the  Construction Manager.  The Schedule of Values, when approved by City, shall become the basis for determining the  cost of Design‐Build Services requested on DBE's Applications For Payment.  DBE shall submit a statement based  upon this breakdown, and if required, itemized in such form and supported by such evidence as the Construction  Manager may direct, showing DBE's right to the payment claimed.     9.2 PROGRESS PAYMENT      9.2.1 City shall retain five percent (5%) of the undisputed amount due on each progress  payment, or the percentage stated in the Request for Proposals, whichever is greater, as retention to  ensure full and complete performance of the Design‐Build Services.  Subject to City’s right of withholding  under Paragraph 9.4.2 of these General Conditions, City agrees to pay to DBE within thirty (30) Days of  receipt of a properly submitted Application for Payment an amount equal to ninety‐five percent (95%), or a  lesser amount if corresponding to a higher retention percentage, if applicable, of the sum of the following,  excepting therefrom any amounts which are disputed by City:     (i) Construction Manager’s determination of the value, expressed as a percentage of the   Contract Sum, of the Work in permanent place that has been tested and accepted as of   the end of the preceding month.     (ii) Construction Manager’s determination of the value of materials suitably stored but not   yet incorporated into the Work, subject to Paragraph 9.3.6 of these General Conditions.      (iii) Less amounts previously paid.      9.2.2 At any Time after fifty percent (50%) of the Construction Services has been determined  by Construction Manager to be completed, City may in its sole discretion, make any of the remaining progress  payments in accordance with the calculation in Paragraph 9.2.1 of these General Conditions based on one hundred  percent (100%) of City’s determination of the value of the Work in place and of stored materials not yet  incorporated into the Work.    9.2.3 Progress payments shall not be construed as City's Acceptance of any or all of the Design‐ Build Services and shall not be a waiver of any or all rights City has under the Contract Documents.     9.3 APPLICATION FOR PAYMENT      9.3.1 At the end of each month, DBE shall submit to City an itemized Application for Payment,  requesting payment for Design‐Build Services as of the end of that month that is calculated in accordance  with the formula for payment set forth in Paragraph 9.2.1 of these General Conditions.  The Application for  Payment shall be prepared:      (i) Utilizing the format as designated by City or the Construction Manager.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  80 2016    PART 6 – GENERAL CONDITIONS    (ii) Itemized in accordance with the Approved Schedule of Values.    (iii) Showing the results of a successful system test (for example a pressure test for gas  project) of the system installed or completed in the pay period covering the Application  for Payment.     (iv) Including such data substantiating DBE's right to payment as City may reasonably   require, such as invoices, payrolls, daily time and material records, and, if  securities  are deposited in lieu of retention pursuant to Section 9.5, a certification of the  market value of all  such securities as of a date not earlier than five (5) Days prior to the  date of the Application for  Payment.      (v) Showing itemized amounts for Change Orders, Modifications and retention.        9.3.2 Applications for Payment shall not include requests for payment on account of increases  to the Contract Sum which have not been authorized by Change Orders or amounts DBE does not intend to  pay a Subcontractor because of a dispute or other reason.      9.3.3 If required by City, an Application for Payment shall be accompanied by all of the  following:    (i) A summary showing payments that DBE will make to Design Professionals or  Subcontractors covered by such application.    (ii) Conditional waivers and releases of claims and stop notices from DBE and each  Subcontractor listed in the current Application for Payment covering sums requested in  the current Application for Payment.    (iii) Unconditional waivers and releases of claims and stop notices, from DBE and each  Subcontractor listed in the preceding Application for Payment covering sums disbursed  pursuant to that preceding Application for Payment.      9.3.4 DBE warrants that, upon submittal of an Application for Payment, all Design‐Build  Services for which Certificates for Payment have been previously issued and payment has been received  from City, shall be free and clear of all claims, stop notices, security interests and encumbrances in favor of  DBE or Subcontractors or other persons or firms entitled to make claims by reason of having provided  labor, materials or equipment relating to the Design‐Build Services.      9.3.6 At the sole discretion of City, the Construction Manager may approve for inclusion in  DBE’s Application for Payment the cost of materials to be incorporated in the Work but not yet  incorporated in the Work and already delivered and suitably stored either at the Site or at some other  appropriate location acceptable to City. In such case, DBE shall furnish evidence satisfactory to City:    (i) Of the cost of such materials.    (ii) That such materials are under the exclusive control of DBE, or if not, that title to the  materials is in City’s name, free of any lien or encumbrance and that the materials are safely and  suitably stored in a bonded warehouse with appropriate insurance coverage satisfactory to City to  cover any Loss.    (iii) Photographs of such materials if requested by the City.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  81 2016    PART 6 – GENERAL CONDITIONS  Any payment pursuant to this Paragraph shall not be construed as an inspection or acceptance of the  materials nor shall it relieve DBE of its continuing and sole responsibility for the care and protection of such  materials nor shall it relieve DBE from sole responsibility for any loss or damage to the materials from any  cause whatsoever nor act as a waiver of the right of City to require strict fulfillment by DBE with all terms  of the Contract Documents.      9.3.7 City shall have the right, in its sole discretion, to make payments of monies owing to DBE  by means of direct payment to Subcontractors of any unpaid work performed by any Subcontractor or by  joint payment to DBE and to Subcontractors.  The making of such payments shall not be construed as the  assumption of any obligation on the part of City or as creating any contractual relationship between City  and any Subcontractor and shall not relieve DBE of any of its obligations under the Contract Documents.     9.3.8 If the Contract Sum includes an Allowance from the Proposal and the cost of performing  the Design‐Build Services covered by that Allowance is greater or less than the amount of that Allowance,  the Contract Sum shall be increased or decreased accordingly.       9.4 CERTIFICATE FOR PAYMENT      9.4.1   Approval of all or any part of an Application for Payment may be withheld, a Certificate  For Payment may be withheld or all or part of a previous Certificate For Payment may be nullified and that  amount withheld from a current Certificate For Payment in order to protect City against actual or  threatened loss as a result of any of the following:       (i) Defective Work not remedied or failure to pass required system tests.     (ii) Third‐party claims against DBE or City arising from the acts or omissions of DBE, its Design  Professionals or Subcontractors.      (iii) Stop notices.     (iv) Failure of DBE to make timely payments due Subcontractors for material or labor.     (v) A reasonable doubt that the Design‐Build Services can be completed for the balance of  the Contract Sum then unpaid.      (vi) Damage to City or Separate Contractor for which DBE is responsible.      (vii) Reasonable evidence that the Project will not be completed within the Contract Time.      (viii) Failure of DBE to maintain and update As‐Built or Record Documents.     (ix) Failure of DBE to timely submit Construction Schedules, reports, Submittals or their  updates as required by the Contract Documents.      (x) Performance of Work by DBE without Approved Submittals.     (xi) Liquidated or actual damages assessed in accordance with the Design‐Build Contract.     (xii) Any other failure of DBE to perform an obligation under the Contract Documents.     9.4.2 Subject to the withholding provisions of Paragraph 9.4.2 and when any or all of the noted  deficiencies or others have been removed, City shall pay DBE the amount set forth in the Certificate for  Payment in accordance with its normal disbursement procedures.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  82 2016    PART 6 – GENERAL CONDITIONS    9.4.3 Neither City nor the Construction Manager shall have an obligation to pay or to see to the  payment of money to a Design Professional or Subcontractor, except as may otherwise be required by Law.      9.4.4 Neither a Certificate for Payment nor any payment (progress or final) shall be construed   as a waiver of any rights arising from Defective Work.      9.4.5 City may, at any time, require that payment of any undisputed amount is contingent  upon DBE furnishing City with a release of all claims against City which are related to those undisputed  payments.  Any disputed amount may be expressly excluded from such release.     9.4.6 The City may require a tri‐party agreement among the City, the DBE, and the DBE's surety  as a condition to making full progress payments if the Work is behind schedule, in order to avoid  exoneration of the surety bond or impairment of the surety's security.     9.5 DEPOSIT OF SECURITIES IN LIEU OF RETENTION AND DEPOSIT OF RETENTION INTO ESCROW       9.5.1 At the request and expense of DBE, a substitution of securities may be made as found in  Government Code Section 16430 and as authorized by the Public Contract Code Section 22300 in lieu of  monies retained by City under Section 9.2 of these General Conditions to ensure performance under the  Contract Documents. Securities equivalent in value to the retention amount required by the Contract  Documents for each Certificate For Payment shall be deposited by DBE with a state or federally chartered  bank in the State of California ("Escrow Agent"), which shall hold such securities pursuant to the escrow  agreement referred to in Paragraph 9.5.3 until Final Payment is due in accordance with Section 9.8.   Securities shall be valued as often as conditions of the securities market warrant, but in no case less than  once per month. DBE shall deposit additional securities so that the current market value of the total of all  deposited securities shall be at least equal to the total required amount of retention.      9.5.2 Alternatively to Paragraph 9.5.1 of these General Conditions, and at the request and  expense of DBE, City shall deposit retention directly with the Escrow Agent. DBE may direct the investment  of such deposited retention into interest bearing accounts or securities, and such deposits or securities  shall be held by the Escrow Agent upon the same terms provided for securities deposited by DBE.      9.5.3 A prerequisite to the substitution of securities in lieu of retention or the deposit of  retention into escrow shall be the execution by DBE, City, and the Escrow Agent of an Escrow Contract for  Deposit of Securities in Lieu of Retention and Deposit of Retention forms provided by City. The terms of  such escrow agreement are incorporated into the requirements of this Section 9.5.      9.5.4 Release of funds or securities from escrow to DBE shall be made upon receipt by Escrow  Agent of written notification by City that the DBE has complied with all requirements and procedures  applicable to the Contract.    9.5.5 City has the right to draw upon the securities in the event of default by DBE, as  determined by City pursuant to the provisions of these Contract Documents.  Within seven (7) days  following receipt of the City’s written notice of such default, Escrow Agent must immediately convert the  securities to cash and distribute the cash as instructed by City.     9.6 BENEFICIAL OCCUPANCY      9.6.1 City reserves the right, at its option and convenience, to occupy or otherwise make use of  all or any part of the Work, at any time prior to issuing the Certificate of Substantial Completion, upon  seven (7) Days notice to DBE.  Such occupancy or use is herein referred to as "Beneficial Occupancy."   Beneficial Occupancy shall be subject to the following conditions:    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  83 2016    PART 6 – GENERAL CONDITIONS   .1 City, Design Consultant and Construction Manager will make an inspection of the   portion  of the Work to be beneficially occupied and prepare a list of items to be   completed or corrected prior to issuing the Certificate of Substantial Completion.     .2 Beneficial Occupancy by City shall not be construed by DBE as Acceptance by City   of that portion of the Work which is to be occupied.  City may, however, at its sole   option,  relieve DBE of Contract requirements to protect Work being beneficially   occupied by City where such relief is specifically designated by City in writing.    .3 Beneficial Occupancy by City shall not constitute a waiver of City’s right to assess  liquidated damages as otherwise provided in these Contract Documents.     .4 DBE shall provide, in the areas beneficially occupied and on a continual basis (if   required), utility services, heating, and cooling for systems which are in operable   condition at the time of Beneficial Occupancy.  All responsibility for the operation and   maintenance of equipment shall remain with DBE while the equipment is so  operated.   DBE shall submit to City an itemized list of each piece of equipment so  operated with the date  operation commences.     .5 The Guarantee to Repair Periods, as defined in Section 12.2 of these General   Conditions, will commence upon the first dates of actual occupancy or use of portions of   the Work to which the City has taken Beneficial Occupancy and to equipment or   systems  fully utilized.     .6 City shall pay all normal operating and maintenance costs resulting from its use of   equipment in areas beneficially occupied.     .7 City shall pay all utility costs which arise out of the Beneficial Occupancy.     .8 DBE shall not be responsible for providing security in areas beneficially occupied.     .9 City shall use its best efforts to prevent its Beneficial Occupancy from interfering with   the conduct of DBE's remaining Work.     .10 DBE shall not be required to repair damage caused by City in its Beneficial   Occupancy.     .11 Except as provided in this Section 9.6 of these General Conditions, there shall be no   added cost to City due to Beneficial Occupancy.     .12 DBE shall continue to maintain all insurance required by the Contract in full force   and effect.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  84 2016    PART 6 – GENERAL CONDITIONS   9.7 SUBSTANTIAL COMPLETION      9.7.1 When DBE gives notice to City that the Work, or portion thereof designated by City for  separate delivery, is Substantially Complete, unless City determines that the Work or designated portion  thereof is not sufficiently complete to warrant an inspection to determine Substantial Completion, Design  Professional or Construction Manager will inspect the Work, or such designated portion thereof, and  prepare and give to DBE a comprehensive list of items, if any, to be completed or corrected before  establishing Substantial Completion. DBE shall promptly proceed to complete and correct items on the list.   Failure to include an item on such list does not alter the responsibility of DBE to complete all Work in  accordance with the Contract Documents.  City will then make a further inspection to determine whether  the Work or such designated portion thereof is Substantially Complete.  If City's inspection discloses any  item, whether or not included on the list, which must be completed or corrected before Substantial  Completion, DBE shall, before City’s issuance of the Certificate of Substantial Completion, complete or  correct such item.  DBE shall then submit a request for another inspection by City to determine Substantial  Completion.      9.7.2 When City determines that the Work or such designated portion thereof is Substantially  Complete, City will prepare a Certificate of Substantial Completion on City's form, which when signed by  City shall establish the date of Substantial Completion and the responsibilities of City and DBE for security,  maintenance, heat, utilities, insurance, completion of minor items and correction or repair of the Work or  such designated portion thereof.  Unless otherwise provided in the Certificate of Substantial Completion,  the Guarantee To Repair Period for the Work (which is defined in Article 12, Section 12.2.1), or such  designated portion thereof covered by the Certificate of Substantial Completion, excluding any systems  provided by Separate Contractors which are not yet fully operational or accepted by City, shall commence  on the date of Substantial Completion of the Work or such designated portion thereof.  The Guarantee To  Repair Period for systems which become fully operational or Accepted subsequent to Substantial  Completion will begin on the later of the date they are operational or Acceptance of the Project by City.       9.8 FINAL COMPLETION AND FINAL PAYMENT      9.8.1 Upon receipt of notice from DBE that the Work is ready for final inspection, City will  make such inspection.  City will file a notice of completion with the County Clerk within ten (10) Days after  Acceptance by City. Thirty‐five (35) Days after filing the notice of completion, the City may release the final  retention provided the requirements in this paragraph are met.      9.8.2 Without limitation to any other provisions of the Contract Documents, before Final  Payment (including release of undisputed retention) for Design‐Build Services under this Design‐Build  Contract is authorized, the DBE shall have completed the Design‐Build Services in accordance with the  Contract Documents and all applicable standards of care and the following requirements of the Contract  Documents must be fulfilled by DBE:    (i) The submittal of an application for Final Payment, together with supporting  documentation,  as required by Section 9.3 of these General Conditions.    (ii) Completion and delivery by DBE to City of all required written guarantees, warranties,  operation and maintenance manuals, As‐Built Documents and other Record Documents,  drawings, schedules, certificates and such other documents as required by the Contract  Documents.  All approvals and acceptances shall have been made pursuant to Applicable  Code Requirements.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  85 2016    PART 6 – GENERAL CONDITIONS  (iii) Delivery by DBE to City of an affidavit, signed under penalty of perjury, stating that all  workers and persons employed, all firms supplying the materials, and all Design  Professionals and Subcontractors have been paid in full; and that there are no bills  outstanding against the Work for either labor or materials, except certain items, to be set  forth in such affidavit covering disputed claims or items in connection with which notices  to withhold have been filed under the provisions of the statutes of the State of California.    (iv) Completion of all construction Work, including corrective and punch list items, in a  manner acceptable to City.  All rubbish, tools, scaffolding and surplus materials and  equipment have been removed from the Site.    (v) Submission of conditional releases of claims and stop notices from DBE and its  Subcontractors with no reservation of rights for disputed claims or amounts.      (vi) If a Stop Notice(s) is received by the City after the Notice of Completion has been filed  and prior to Final Payment, the City may, at its election, withhold the amount specified in  the Stop Notice plus reasonable cost of any litigation pursuant to Civil Code Section 9358  from the Final Payment or require the DBE to supply a stop notice release bond in the  amount of 125% of the stop notice amount from a Surety acceptable to the City.      9.8.3 For purposes of determining the last day for submission of a Claim pursuant to Article 4,  the date of Final Payment is deemed to be the date that the City acts to release undisputed retention as  part of Final Payment, either by transmitting a written request to the retention Escrow Agent or by  transmitting a payment directly to DBE, whichever occurs first.  Acceptance of Final Payment by DBE shall  constitute a complete waiver of all Claims, except those previously made in writing and identified by DBE  as unsettled at the time of the Application for Final Payment.     9.8.4 DBE shall pay or cause to be paid to Subcontractors, the amount stated in the conditional  releases within five (5) Days after receipt of the Final Payment, and shall promptly thereafter furnish  evidence of such payment to City.    ARTICLE 10 – PROTECTION OF PERSONS AND PROPERTY     10.1 SAFETY PRECAUTIONS AND PROGRAMS      10.1.1 DBE shall be solely and completely responsible for initiating, maintaining and supervising  all safety precautions and programs on the Site in connection with the performance of the Design‐Build  Contract, including safety of all persons for the duration of the Work, on a 24‐hour day, 7‐day week basis.      10.1.2 Prior to the start of construction, DBE shall submit to Construction Manager a copy of  DBE's safety program for the Project. A copy of this program shall be maintained on Site at all times. The  safety program shall include, at a minimum:      (i) Management policy, illness and injury prevention program (as described below).       (ii) Safety meetings.      (iii) Accident investigation.      (iv) Basic accident causes.      (v) Safety inspection check list.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  86 2016    PART 6 – GENERAL CONDITIONS    (vi) Fire prevention and control.      (vii) Report forms.      (viii) Employee safety manual.     10.2 SAFETY OF PERSONS AND PROPERTY      10.2.1 The DBE shall be solely and completely responsible for job site conditions and safety  during the life of the Contract.  This obligation shall include the safety of all persons within or affected by  the line of construction and all private property affected by the work      10.2.2  At its sole expense, DBE shall furnish, erect and maintain such temporary fences,  barricades, signs, lights, ramps, and temporary construction of whatever nature as may be necessary to  provide access to abutting properties and to warn the public of the work in progress and of any dangerous  conditions as may exist due to the work in progress. The DBE's responsibility shall be continuous and not  be limited to working hours or days, and shall not cease until formal acceptance of the work by the City  except that if the City should make partial acceptance of the work, the DBE's responsibility for the portion  of the work so accepted shall thereupon cease, except for latent errors in the work or faulty construction.        10.2.3  The duty of the Construction Manager, its agents, or employees, to conduct construction  review of the DBE's performance and operations is not intended to, and does not include review of or  responsibility for the adequacy of the DBE's safety measures and procedures in, on, or adjacent to the site  of the Work.       10.2.4  DBE shall protect persons and property on the Site at all times.  DBE shall have available at  the Site copies or suitable extracts of "Construction Safety Orders" and "General Industrial Safety Orders"  issued by the California Division of Industrial Safety.  DBE shall comply with provisions of these and all  other applicable laws, ordinances, and regulations.      10.2.5 DBE shall immediately respond to notice from City of unsafe conditions, shall take  adequate precautions for safety of persons on the Site, and shall provide adequate protection to prevent  injury or Loss to the following:      (i) Employees involved in the Work and other persons who may be affected thereby.     (ii) The Work in place and materials and equipment to be incorporated therein, whether in  storage on or off the Site, under care, custody, or control of DBE or Subcontractors.      (iii) Other property at the Site and adjoining property(ies).      10.2.6 DBE shall promptly remedy damage and Loss (other than damage or Loss insured under  property insurance required by the Contract Documents) to property caused in whole or in part by DBE or  its Subcontractors or anyone for whose acts they may be liable and for which DBE is responsible.        10.2.7 DBE shall erect and maintain, as required by existing conditions and performance of the  Work, adequate safeguards for safety and protection of persons and property, including providing  adequate lighting and ventilation, posting danger signs and other warnings against hazards, promulgating  safety regulations and notifying owners and users of adjacent sites and utilities.     10.2.8 When use or storage of hazardous materials, equipment, or unusual methods are  necessary for execution of the Work, DBE shall exercise the utmost care and carry on such activities only  under the supervision of properly qualified personnel.     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  87 2016    PART 6 – GENERAL CONDITIONS    10.2.9 DBE shall be required to provide at the Site a member of DBE's organization, typically the  Superintendent, whose responsibility it shall be to provide instruction to persons present on the Site about  prevention of accidents and overall jobsite safety.  DBE shall notify City in writing if DBE replaces the  person responsible for safety.       10.2.10 DBE shall be responsible for locating, providing, and coordinating the storage and staging  of materials and equipment on‐Site and off‐Site and shall not load/store or permit any part of the Work on  the Site to be loaded/stored so as to endanger the safety of persons or property.      10.2.11 DBE shall protect its materials and the Work from damage in a manner satisfactory to  City and shall make good, without charge to City, all damage due to negligence in providing proper  protection.      10.2.12 DBE shall take necessary precautions to guard against and eliminate possible fire hazards  and to prevent damage to the Work, building materials, equipment, temporary field offices, storage sheds  and public and private property.      10.2.13 DBE shall not permit the possession or use of alcohol or controlled substances on the  Site.      10.2.14 Explosives may be used only when authorized in writing by City.  Explosives shall be  handled, used and stored in accordance with applicable regulations.     10.3 EMERGENCIES    In an emergency affecting the safety of persons or property, DBE shall immediately act to prevent or  minimize damage, injury or loss.  DBE shall immediately notify the Construction Manager and City, which  notice may be oral, followed within twenty‐four (24) hours after occurrence of the incident by written  confirmation, of the occurrence of such an emergency and DBE's action.       10.4 TRENCH SAFETY     In accordance with the California Labor Code, where the work will involve trenches five feet or more in  depth and the estimated or Proposal cost of excavation is in excess of $25,000, the DBE shall submit to and  receive from the City of Palo Alto, or its designee, the acceptance of a detailed plan showing design of  shoring, bracing, sloping, or other provisions to be made for worker protection from the hazards of caving  ground.  Such plan shall be submitted at least five (5) days before the DBE intends to begin work on the  trenches.    If such plan varies from the shoring system standards established by the Construction Safety Orders of the  State of California Division of Industrial Safety, the plan shall be prepared by a registered civil or structural  engineer.    The DBE shall not use shoring, sloping, or protective systems less effective than that required by the  Construction Safety Orders of the Division of Industrial Safety.  The City shall not be responsible or liable for the safety of such trenching or trenching plans.    Whenever the work called for on these plans or Contract Documents involves the construction of a  pipeline, sewer, sewage disposal system, boring and jacking pits, or similar trenches or excavations, which  are five feet or deeper, DBE shall include in its Proposal Price, the cost of design and construction of  adequate sheeting, shoring, and bracing, or equivalent method, for the protection of life or limb, which  shall conform to applicable safety orders.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  88 2016    PART 6 – GENERAL CONDITIONS  ARTICLE 11 – INSURANCE AND BONDS     11.1 DBE'S INSURANCE      11.1.1 DBEs, at its sole expense, shall for the term of the Contract obtain and maintain insurance  in the amounts for the coverage specified below, or as modified by the Special Provisions (if applicable),  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.     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      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: DBE, 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 DBE 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 DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF  COVERAGE CANCELLATION; AND    B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR DBE’S AGREEMENT  TO INDEMNIFY CITY.    C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL.                     II. DBE MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE.     III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL       INSUREDS”    A. PRIMARY COVERAGE    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  89 2016    PART 6 – GENERAL CONDITIONS  WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,  INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR  CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE  ADDITIONAL INSUREDS.    B. CROSS LIABILITY    THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE  POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST  ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT  INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.    C. NOTICE OF CANCELLATION    1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY 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         11.1.2 DBE shall furnish City with the certificates of insurance and with original endorsements  affecting coverage required under this Contract within ten (10) business days following issuance of the  Notice of Award.  The certificates and endorsements for each insurance policy shall be signed by a person  who is authorized by that insurer to bind coverage on its behalf.      11.1.3  Design Professionals and Subcontractors:  DBE shall include all Subcontractors and as  insureds under its policies, or shall furnish separate certificates and endorsements for each Design  Professional or Subcontractor in compliance with this Article.  All coverages for Design Build Professional or  Subcontractors shall be subject to all of the requirements stated herein.      11.1.4 At the request of City, DBE shall submit to City copies of the policies obtained by DBE. In  the event DBE does not comply with these insurance requirements, City may, at its option, provide  insurance coverage to protect City; and the cost of such insurance shall be paid by DBE and may be  deducted from the Contract Sum.    11.1.5 The requirements of this Section may only be modified in writing by the City’s Risk   Manager.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  90 2016    PART 6 – GENERAL CONDITIONS   11.2 BOND REQUIREMENTS      11.2.1 Prior to commencing Construction Services on the Project, DBE shall file with City good  and sufficient Payment and Performance Bonds each in the amount of 100% of the Contract Sum for the  Construction Services.  The bonds shall be in substantially the same form as attached to the Contract or  such other form as required by City and shall be signed by both DBE and Surety and properly notarized.   Should any bond required hereunder or any surety on such bond become or be determined by City to be  insufficient, it shall be replaced within ten (10) Days by a bond that fully complies with the requirements of  this Section 11.2. No further payments to DBE for Work performed shall be made or due until DBE has fully  complied with the requirements of this Section 11.2.       11.2.2  The Payment Bond shall remain in effect at least until the time for filing a claim on a stop  notice has expired pursuant to the California Civil Code.  The Performance Bond provided by DBE shall  remain in effect for the duration of the period of all warranties required by the Contract Documents and  shall assure faithful performance of all DBE’s obligations under the Contract Documents, including, without  limitation, all obligations that survive Final Completion or termination, such as, but not limited to DBE’s  warranty and indemnity obligations.       11.2.3 DBE shall promptly furnish such additional security as may be required by City to protect  its interests and those interests of persons or firms supplying labor or materials to the Work.      11.2.4 Surety companies used by DBE shall be, on the date the Contract is signed by City and at  all times while the bonds are in effect, either California Admitted Sureties or listed in the latest published  United States Treasury Department list of Companies Holding Certificates of Authority as Acceptable  Sureties on Federal Bonds and as Acceptable Reinsuring Companies and either have a current A.M. Best A  VIII rating or be an admitted surety that meets the requirements of Code of Civil Procedure Section  995.660.      11.2.5 The premiums for all Bonds are included in the Contract Sum and shall be paid by DBE.      11.2.6 The bonds shall name City as obligee.      11.2.7  Change Orders, Field Orders, Modifications, Changes in the Work and adjustments in the  scope of Work Contract Sum or Contract Time shall in no way release or exonerate DBE or its sureties from  their obligations and notice thereof shall be waived by such sureties.      11.2.8 City and the Construction Manager shall have the right to communicate with DBE’s  sureties with respect to matters that are related to DBE’s performance of its obligations under the Contract  Documents.  DBE shall be provided with a copy of all such written communications.  Such communications  shall not create or be interpreted as creating any contractual relationship between City or the Construction  Manager and any such surety.      11.2.9 In the event of a significant (15% or more) increase in Contract Sum, replacement bonds  totaling the new Contract Sum may be required by City.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  91 2016    PART 6 – GENERAL CONDITIONS  ARTICLE 12 – DEFECTIVE WORK     12.1 UNCOVERING OF WORK      12.1.1 If a portion of the Work is covered contrary to Construction Manager’s request or  direction, or contrary to the requirements of the Contract Documents, it must, if required in writing by  City, be uncovered for City's observation and be replaced at DBE's expense without adjustment of the  Contract Time or the Contract Sum.      12.1.2 If a portion of the Work has been covered, which is not required by the Contract  Documents to be observed or inspected prior to its being covered and which City has not specifically  requested to observe prior to its being covered, City may request to see such Work and it shall be  uncovered and replaced by DBE.  If such Work is in accordance with the Contract Documents, the costs of  uncovering and replacing the Work shall be added to the Contract Sum by Change Order; and if the  uncovering and replacing of the Work extends the Contract Time, an appropriate adjustment of the  Contract Time shall be made by Change Order.  If such Work is not in accordance with the Contract  Documents, DBE shall pay such costs and shall not be entitled to an adjustment of the Contract Time or the  Contract Sum.     12.2 CORRECTION OF DEFECTIVE WORK AND GUARANTEE TO REPAIR PERIOD      12.2.1 In addition to any specific warranty mentioned in these Contract Documents, the DBE  shall guarantee that all material, apparatus, equipment, and workmanship used, installed, or incorporated  in the work is free from defects, and agrees to replace at no expense to the City any and all defective Work  or materials which become evident within one (1) year (“Guarantee To Repair Period”), unless a longer  period of time is specified in the Special Provisions and technical specifications, commencing as follows:     (i) For any Work not described as incomplete in the Certificate of Substantial Completion,   on the date of Substantial Completion.     (ii) For space beneficially occupied or for separate systems fully utilized prior to Substantial   Completion pursuant to Section 9.6, from the first date of such Beneficial Occupancy or   actual use, as established an appropriate written authorization for Beneficial Occupancy.     (iii) For all Work other than (I) or (ii) above, from the date of filing of notice of completion   pursuant to Section 9.8 above.      12.2.2 DBE shall (i) correct Defective Work that becomes apparent during the progress of the  Work or during the Guarantee To Repair Period and (ii) replace, repair, or restore to City's satisfaction any  other parts of the Work and any other real or personal property which is damaged or destroyed as a result  of Defective Work or the correction of Defective Work, without any expense whatsoever to City.  City will  give notice of observed Defective Work with reasonable promptness, and DBE shall promptly commence  such correction, replacement, repair or restoration upon notice from City, but in no case later than seven  (7) Days after receipt of such notice. DBE shall diligently and continuously prosecute such correction to  completion. DBE shall bear all costs of such correction, replacement, repair, or restoration and all Losses  resulting from such Defective Work, including additional testing, inspection and compensation for City's or  City's services and expenses.  DBE shall perform corrective Work at such times that are acceptable to City  and in such a manner as to avoid, to the extent practicable, disruption to City's activities.  Ordinary wear  and tear, unusual abuse or neglect are excepted from this guarantee.  DBE shall notify City upon  completion of repairs.     12.2.3 If immediate correction of Defective Work is required for life safety or the protection of  property or, if in the opinion of City, Defective Work creates a dangerous condition or requires immediate  corrections or attention to prevent further Loss to City or to prevent interruption of operations of City, City  DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  92 2016    PART 6 – GENERAL CONDITIONS  will attempt to give immediate notice to DBE.  If DBE cannot be contacted or does not comply with City's  request for correction within a reasonable time as determined by City, City or Separate Contractors under  City's direction, may, notwithstanding the provisions of this Article, proceed to make such corrections or  provide such attention; and the costs of such correction or attention shall be charged against DBE.  Such  action by City will not relieve DBE of the guarantees provided in this Article or elsewhere in the Design‐ Build Contract.  DBE shall replace, repair or restore to City's satisfaction any other parts of the Work and  any other real or personal property, which is damaged or destroyed as a result of such Defective Work or  the correction of such Defective Work.      12.2.4 DBE shall promptly remove from the Site those portions of the Work and materials which  are not in accordance with the Contract Documents and which are neither corrected by DBE nor accepted  by City.     12.2.5 If DBE fails to commence correction of Defective Work within seven (7) Days as required  in Section 12.2.3 after notice from City or fails to diligently prosecute such correction to completion, City  may correct the Defective Work in accordance with Section 2.4; and, in addition, City may remove the  Defective Work and store salvageable materials and equipment at DBE's expense.      12.2.6 If DBE fails to pay the costs of such removal and storage as required by Paragraphs 12.2.4  and 12.2.5 within seven (7) Days after written demand, City may, without prejudice to other remedies, sell  such materials at auction or at private sale or otherwise dispose of such material.  DBE shall be entitled to  the proceeds of such sale, if any, in excess of the costs and damages for which DBE is liable to City,  including compensation for City's services and expenses.  If such proceeds of sale do not cover costs and  damages for which DBE is liable to City, the Contract Sum shall be reduced by such deficiency.  If there are  no remaining payments due DBE or the remaining payments are insufficient to cover such deficiency, DBE  shall promptly pay the difference to City.      12.2.7 DBE's obligations under this Article are in addition to and not in limitation of its warranty  under Section 3.5 or any other obligation of DBE under the Contract Documents.  Enforcement of DBE's  express warranties and guarantees to repair contained in the Contract Documents shall be in addition to  and not in limitation of any other rights or remedies City may have under the Contract Documents or at law  or in equity for Defective Work.  Nothing contained in this Article shall be construed to establish a period of  limitation with respect to other obligations of DBE under the Contract Documents, which may be longer  specified periods.  Establishment of the Guarantee To Repair Period relates only to the specific obligation  of DBE to correct the Work and in no way limits either DBE's liability for Defective Work or the time within  which proceedings may be commenced to enforce DBE's obligations under the Contract Documents.     12.3 ACCEPTANCE OF DEFECTIVE WORK    Notwithstanding the provisions of Section 12.2 of these General Conditions, City shall have the option, at  its sole discretion and by notice to DBE, to accept Defective Work instead of requiring its removal or  correction, in which case the Contract Sum shall be reduced by an amount equal to the difference between  the value to City the Work would have had were it complete, correct and in conformity with the Contract  Documents and the value to City of such Defective Work.  Such option shall be exercised solely by notice to  DBE and shall not be implied from any act or omission by City or Construction Manager.  If there are no  remaining payments of the Contract Sum to be made to DBE, or if the remaining payments and retention  are insufficient to cover the amount of the reduction of the Contract Sum, DBE shall promptly pay to City  the amount of any such deficiency.    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  93 2016    PART 6 – GENERAL CONDITIONS  ARTICLE 13 – STATUTORY REQUIREMENT     13.1 STATE LABOR LAW     DBE, its agents, and employees shall be bound by and comply with all applicable provisions of the Labor  Code and such federal, state and local laws which affect the conduct of the Work.  If prevailing wages are  required for this Project, copies of the prevailing rate of per diem wages may be obtained at the Purchasing  Office of the City of Palo Alto.  DBE must post or require its subcontractors to post job site notices, as  prescribed by regulation pursuant to California Labor Code Section 1771.4.  [Add Labor requirements?]         13.2 WORK DAY    DBE shall not permit any worker to labor more than eight (8) hours during any one (1) Day or more than  forty (40) hours during any one (1) calendar week, unless overtime is paid pursuant to Labor Code Section  1861 or except as otherwise permitted by law.  DBE shall forfeit to City, as a penalty, twenty‐five dollars  ($25.00) for each worker employed in the execution of this Design‐Build Contract by DBE, or any  Subcontractor, for each Day during which such worker is required or permitted to Work more than eight  (8) hours in any one (1) Day and forty (40) hours in any one (1) calendar week in violation of the terms of  this Paragraph or in violation of the provisions of any law of the State of California.  Such forfeiture  amounts may be deducted from the Contract Sum.  DBE and each Subcontractor shall keep, or cause to be  kept, an accurate record showing the actual hours worked each Day and each calendar week by each  worker employed on the Project, which record shall be kept open at all reasonable hours to the inspection  of City, its officers and agents, and to the inspection of the appropriate enforcement agency or  representative and the State of California.                 DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  94 2016    PART 6 – GENERAL CONDITIONS  FIELD ORDER  CITY OF PALO ALTO  DEPARTMENT OF PUBLIC WORKS  _____________________________ Project    This Field Order, issued pursuant to Article 7 of the Contract General Conditions directs and authorizes DBE to proceed with the  Work described below.  Upon receipt of this Field Order, DBE shall, within a reasonable time, proceed with the Work described in  the Field Order.  Unless otherwise stated below, this Field Order shall not be construed as an acknowledgment by City that the  Work described constitutes a Change or Extra Work. If DBE disputes the proposed basis or amount of adjustment to the Contract  Sum or Contract Time, it may request to change the disputed portions of this Field Order by submitting a Change Order Request  within ten (10) Days following issuance of this Field Order.  Failure by DBE to submit a timely Change Order Request seeking  modification of the terms of this Field Order shall be deemed full acceptance of and agreement to all of the terms herein, and a  release and waiver of any right to subsequently dispute any or all of the terms of this Field Order. Project Number:     Field Order Number:  XXX  Contract Number:     Issuance Date:  __/__/____  DBE's Name:    Prepared by:     Description of Work:  Title: __________ Ref:   1.   City has determined that the above Work:  ___ is Extra Work  ___ is not Extra Work    City has determined that DBE is:  __not entitled to an extension of time  __ entitled to an extension of ___ days    Basis of Extra Work Cost:            Unit Cost*         Lump Sum: $_______________            Time and Materials*            Other*  *The Contract Sum will be [increased][decreased] by an amount not  to exceed: $____________________________  1. Consultant shall sign prior to DBE and return to City.  Indicate N/A  if not applicable.    Consultant Approval:     Title: Senior Project Manager   Date:   2. DBE shall sign and return to City for City approval signatures.    DBE Approval:     Title: Project Manager   3. Signature required on all Field Orders.      City Approval:________________________  Title: Project Manager   Date: ________________________________ Date:________________________________  4. Division Head signature required for Field Orders exceeding  $15,000.    City Approval:     Title: Assistant Director of Public Works   5. Department Head signature required for Field Orders exceeding  $25,000.    City Approval       Title: Director of Public Works   Date:________________________________ Date:_______________________________  Distribution: [] DBE  [] Division Head  [] File  [] Consultant  [] Project Manager  [] Inspector         DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  95 2016    PART 6 – GENERAL CONDITIONS  CHANGE ORDER REQUEST  CITY OF PALO ALTO  DEPARTMENT OF PUBLIC WORKS    Contract Change Order Request Project Title: Project No.: Contract Number: Date: DBE: Change Order Request No.: Description of Change Order Request (Attach additional sheets as needed) Reason for Change Order Request: Description of Work to be Performed: Requested Change to Contract Sum:  No cost change: N/A  Increase cost by $ __________  Decrease cost by $ __________ Request for Extension of Contract Time (check one):  No Change to Contract Time  Time Extension Requested for ___ days* o ___ days Excusable Delay o ___ days Compensable Delay  Decrease time by _ days * Include all information and documentation required by Section 8.5 of the Contract General Conditions Basis for requested change in cost:  Unit pricing  Lump sum: $_____________________________  Time and Materials not to exceed: * $_________  Compensable Delay Costs: $________________  Other:___________________________________ * Final value shall not exceed amount shown without additional written CO authorization. Complete Time and Materials Breakdown on following page Reference Documents:* RFI: ASI: Field Order: Specifications: Plans: Other: (specify): * Provide specific number/section/sheet references as applicable DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  96 2016    PART 6 – GENERAL CONDITIONS  Line Time and Materials Breakdown (Reference Section 7.2 of General Conditions for Allowable Costs and markup) Added Credit All lines shall be filled in (zero values acceptable) DBE’S WORK 1. Material (attach itemized quantity and unit cost) 2. Labor (attached itemized hours and rates) 3. Equipment (attach invoices) 4. Royalties and Permits 5. Additional insurance and bond costs, not to exceed two percent (2%) of lines 1-4 6. Subtotal 7. DBE’s markup on work performed by Contactor’s forces, not to exceed ten percent (10%) of line 6 8. Subtotal for DBE’s Work (sum of lines 6 and 7) SUBCONTRACTED WORK (Provide separate breakdown for each subcontract)1 9. Material (attach itemized quantity and unit cost) 10. Labor (attach itemized hours and rates) 11. Equipment (attach invoices) 12. Royalties and Permits 13. Additional insurance and bond costs, not to exceed two percent (2%) of lines 9-12 14. Subtotal 15. Subcontractor’s markup on work performed by Subcontractor’s forces, not to exceed ten percent (10%) of line 14 16. Subtotal 17. General DBE’s Subcontractor Markup, not to exceed fifteen percent (15%) of line 16 18. Subtotal for Subcontracted Work (sum of lines 14 and 16) 19. TOTAL (sum of lines 8 and 18) Contract Change Order Request – continued DBE CERTIFICATION: By signing below, the undersigned DBE certifies under penalty of perjury that its statements and representations in this Change Order Request are true and correct. DBE warrants that this Change Order Request is comprehensive and complete with respect to the Change in the Design-Build Services described herein, and agrees that any costs, expenses, or time extension request, including, but not limited to, compensation for delay, lost productivity, inefficiency, or disruption, which is not included with this Change Order Request, shall be deemed waived. DBE understands that submission of claims which have no basis in fact or which DBE knows to be false may violate the False Claims Act, as set forth in Government Code Sections 12650 et seq.                                                                     1 Attach additional copies of this page as required to summarize additional subcontracts. DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  97 2016    PART 6 – GENERAL CONDITIONS  Submitted by DBE: Signature: By: Title: Date: Design Consultant Recommendation By: Title: Date: Recommendation: Construction Manager Recommendation By: Title: Date: Recommendation: City Approval – Division Head Signature required on all Change Order Requests By: Title: Brad Eggleston Assistant Director, Public Works Engineering Date: City Approval – Department Head Signature required when any individual Change Order Request exceeds $10,000. By: Title: Mike Sartor Director of Public Works Date: DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  98 2016    PART 6 – GENERAL CONDITIONS  CONTRACT CHANGE ORDER  CITY OF PALO ALTO  DEPARTMENT: PUBLIC WORKS ENGINEERING  _____________________________ Project      Contract Change Order # Project Title:  Project No.:   Contract  Number:   Date:   DBE:  Change Order:     Description of Change Order   Background Information:   Change Order Justification:   Description of Work to be Performed:   Incorporates Field Order Number(s):     Cost  Time  This Change Order will:     No cost change: N/A    Increase cost by  $ 0.00    Decrease cost by  $ N/A   This Change Order will:     Not change time     Increase time by    days  o ___ days Excusable Delay  o ___ days Compensable Delay     Decrease time by    days    The date of completion as of this Change Order is          G/L account number (s):    Basis for change in cost:     Unit price(s)     Lump sum    Time and Materials     Compensation for Compensable Delay     Other:          DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  99 2016    PART 6 – GENERAL CONDITIONS  Contract Change Order – continued DBE CERTIFICATION: By signing below, DBE agrees that this Change Order constitutes full resolution, settlement, accord and satisfaction with  respect to any and all pending or future Claims for cost and extensions of time that were asserted, or that could have been asserted, in  connection with the Work or Design‐Build Services covered by this Change Order, as more fully set forth in Article 7 of the Contract General  Conditions.      FAILURE TO EXECUTE:  If DBE fails to promptly execute this Change Order after it has been submitted for DBE’s signature, the City may  unilaterally approve this Change Order as set forth in Article 7 of the Contract General Conditions. DBE may dispute the terms of a unilaterally‐ approved Change Order, in whole or in part, by submitting a Claim in accordance with the Dispute Resolution Procedures set forth herein  within fourteen (14) days after the Change Order is approved by the City.  If DBE fails to submit a Claim within that 14‐day period, with respect  to all or part of the unilaterally‐approved Change Order, those portions of the Change Order which have not been disputed by timely  submission of a Claim shall be deemed to have the same effect as if the Change Order was fully executed by both parties as set forth above.    Accepted for DBE: Accepted for City of Palo Alto:  By:  By:   Title:  Title:   Public Works Engineering ‐ Sr. Project Manager  Date:  Date:       PC O  No .   AS I   FO   CO R   CO   Description Amount Reason for Change                                                                               Total for this Change Order $   0.00           Scope of Work or Services DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build Contract  100 2016    PART 6 – GENERAL CONDITIONS  Document Preparation  By:   Title:   Date:       City Approval – Division Head  Signature required on all Change Orders  By :     Title : Brad Eggleston  Assistant Director, Public Works Engineering  Date:         City Approval – Department Head:  Signature required when any individual Change Order exceeds  $10,000.  By:     Title: Mike Sartor   Director of Public Works  Date:         Contract Change Order – continued   Summary of Amounts Payable Under Contract (For Internal Purposes Only)  Original Contract Sum: $  0.00   Previous Change Orders $  0.00   This Change Order $  0.00   Revised Contract Sum: $  0.00   Compare to:      Original Contract Authorization: $  0.00 Contingency:   Contract Amendment  Authorizations $  0.00 Contingency added:   Contingency Authorizations: $  0.00 Used to date (  Total Authorized Funding: $  0.00 Balance remaining  Change Orders shall not be initiated for Council‐approved contracts if the revised Contract Sum exceeds the total authorized funding amount.     DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build RFP Package  101 2014  PART 7 – SPECIAL PROVISIONS                        CITY OF PALO ALTO  DESIGN‐BUILD  SPECIAL PROVISIONS  VIDEO MANAGEMENT SYSTEMS  DESIGN‐BUILD PROJECT   DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB     Design‐Build RFP Package  102 2014  PART 7 – SPECIAL PROVISIONS    SPECIAL PROVISIONS      These Special Provisions apply to this Project in addition to the General Conditions.    Terms used in  these Special Provisions which are defined in the General Conditions have the meanings assigned to  them in the General Conditions.       SECTION 1 – PROJECT STAFF    [Insert special site use requirements or restrictions if applicable.]   GENERAL CONDITIONS.    1. The following provisions in the Design‐Build General Conditions are not applicable to this Project and  will have no force and effect.    [List]   2. The following provisions in the Design‐Build General Conditions are modified to read as follows:     [List]    END OF SECTION    DocuSign Envelope ID: F07A4E21-10E4-4620-8F30-C92BF0EE9ECB City of Palo Alto (ID # 8187) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: CSD Grant Acceptance and Budget Amendment of the General Fund Title: Acceptance of the Institute of Museums and Library Services Grant and Sherrie Innis Estate Bequest and Approve Budget Amendment in the General Fund From: City Manager Lead Department: Community Services Recommendation Staff recommends that Council approve: 1. The acceptance of grant funding from the Institute of Museum and Library Services (IMLS) in the amount of $34,140.73, and 2. The acceptance of a bequest of $54,350.06 from the Sherrie Innis Estate for improvements to the ceramics studio at the Palo Alto Art Center. 3. An amendment to Fiscal Year 2017 Budget Appropriation Ordinance for the General Fund budget by: a. Increasing the Community Services Department revenue estimates for grants by $34,140.73; and b. Increasing the Community Services Department revenue estimates for donations and contributions by $54,350.06; and c. Increasing the Community Services Department appropriation by $88,490.79 Background Council approved the acceptance of a grant in FY15 from the Institute of Museum and Library Services for Creative Ecology at the Palo Alto Art Center in staff report ID #5996. The Creative Ecology Program began at the Art Center in June 2015 and ran through May 2017. The grant is reimbursement based and has now been fully reimbursed. Three reimbursements were made in October 2015, June 2016, and January 2017. The Community Services Department’s budget now needs to be adjusted to accept the final reimbursement from January 2017 as revenue and adjust the Department’s expenditures in 2017 to offset expenditures paid during the year for this program. City of Palo Alto Page 2 Discussion Creative Ecology is an innovative art and science residency program that promotes learning about and appreciation of the natural world through the creative process, engaging artists, art and science educators, and the larger community. This unique STEM education and exhibition opportunity is intended to provide a model for the museum field. The Palo Alto Art Center received the final reimbursement of $34,140.73 for the grant in support of this program in January 2017. The Community Services Department’s budget now needs to be adjusted to accept the final reimbursement from January 2017 as revenue and adjust the Department’s expenditures in 2017 to offset expenditures paid during the year for this program. In addition, the ceramics studio at the Palo Alto Art Center has five kilns, 22 wheels, and several other large pieces of equipment that will need repair and replacement in the near future. The ceramics program does not have funds budgeted for major equipment replacement and repair. The bequest of $54,350.06 from the Sherrie Innis Estate will be contributed towards these needs. The bequest was distributed to the Art Center in September 2016. The Community Services Department’s budget now needs to be adjusted to accept the bequest as revenue and adjust the Department’s expenditures in 2017 to offset expenditures related to this bequest. Resource Impact Fiscal Year 2017 General Fund budget will need to be amended by: 1. Increasing the Community Services Department revenue estimates for grants by $34,140.73; and 2. Increasing the Community Services Department revenue estimates for donations and contributions by $54,350.06; and 3. Increasing the Community Services Department appropriation by $88,490.79 Timeline Both funding sources will be used during FY17 and FY18 to support the needs discussed above at the Palo Alto Art Center. City of Palo Alto (ID # 8243) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: SECOND READING: Adoption of an Ordinance Dedicating 36.5 Acres of Land at the Former ITT Property Title: SECOND READING: Adoption of an Ordinance Dedicating 36.5 Acres of Land at the Former ITT Property Antenna Field to Become Part of the Baylands Nature Preserve (FIRST READING: June 5, 2017 PASSED: 9 -0) From: City Manager Lead Department: City Clerk This Ordinance was first heard on June 5, 2017 and was passed 9-0 without changes. Attachments:  Attachment A: ITT Ordinance NOT YET ADOPTED 2017-03-08 Park Dedication Ordinance 36.5 Acres Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Dedicating 36.5 Acres of Land Adjacent to Baylands Nature Preserve For Park, Playground, Recreation or Conservation Purposes The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Section 22.08.420 of Chapter 22.08 of Title 22 of the Palo Alto Municipal Code is hereby added to read, as follows: “22.08.420 ITT Antenna Field – Addition to Baylands Nature Preserve. That certain parcel of land known as the ITT Antenna Field (addition to Baylands Nature Preserve), as delineated and described in Exhibit A-29 and attached hereto, is hereby reserved for park, playground, recreation or conservation purposes.” SECTION 2. The Council hereby finds that dedication of this site as parkland is exempt from the requirements of the California Environmental Quality Act (“CEQA”) under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that it will have a significant impact on the environment. In addition, the adoption of this ordinance is exempt under CEQA Guidelines Section 15308 because it is an action to assure the maintenance, restoration, enhancement, or protection of the environment. // // // // // // // // // // // NOT YET ADOPTED 2017-03-08 Park Dedication Ordinance 36.5 Acres SECTION 3. This ordinance shall become effective upon the expiration of thirty (30) days from its passage. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Community Services NOT YET ADOPTED 2017-03-08 Park Dedication Ordinance 36.5 Acres EXHIBIT A-28 APPENDIX A TO CHAPTER 22.08 OF TITLE 22, PARKS All of that certain real property situate in the City of Palo Alto, County of Santa Clara, State of California, and being more particularly described as follows: Parcel One: Beginning at the most Southerly corner of the 151.61 acre parcel of land shown on that certain Record of Survey Map which was filed on August 15, 1969, in Book 258 of Maps, at Pages 4 and 5, records of Santa Clara County, California; thence from said point of beginning along the general Westerly line of said 151.61 acre parcel North 40° 34’ 12” West 1003.28 feet, and North 38° 59’ 40” West 27.39 feet to a point thereon; thence leaving said general Westerly line South 89° 39’ 37” East 1244.50 feet; thence North 11° 41’ 22” East 592.28 feet; thence North 11° 29’ 20” West 502.06 feet; thence North 18° 14’ 16” West 734.92 feet; thence South 82° 14’ 05” West 222.04 feet; thence North 72° 38’ 46” West 335.26 feet; thence North 79° 14’ 55” West 665.06 feet; thence South 14° 50’ 40” West 676.45 feet; thence North 87° 58’ 26” West 121.20 feet to a point on said general Westerly line above described; thence along said general Westerly line as shown on said Map North 16° 20’ 32” West 384.11 feet, South 79° 39’ 28” West 60.00 feet, North 05° 00’ 10” East 195.67 feet, North 85° 31’ 57” East 127.37 feet and North 10° 35’ 30” West 540.33 feet; thence continuing along the general Northerly line of said 151.61 acre parcel as shown on said Map, North 33° 31’ 50” East 179.72 feet, North 63° 59’ 20” East 17.73 feet, South 37° 17’ 50” East 277.53 feet, North 52° 42’ 10” East 375.72 feet, South 88° 07’ 10” East 224.11 feet, North 66° 47’ 40” East 179.79 feet, North 41° 59’ 20” East 112.05 feet, North 13° 58’ 00” East 203.07 feet, and South 88° 58’ 50” East 1113.34 feet to the Northeasterly corner of said 151.61 acre parcel; thence along the general Easterly line of said parcel, South 00° 50’ 58” West 2690.96 feet, South 06° 31’ 50” East 354.00 feet South 79° 03’ 20” East 93.06 feet, South 22° 53’ 30” East 145.20 feet, South 76° 27’ 30” East 132.00 feet to the most Easterly corner of said 151.61 acre parcel; thence along the Southeasterly line of said parcel as shown on said Map, South 70° 24’ 00” West 1317.52 feet to the point of beginning. Parcel Two: Commencing at the most Southerly corner of the 151.61 acre parcel of land shown on that certain Record of Survey Map, recorded August 15, 1969, in Book 258 of Maps, at Pages 4 and 5, records of Santa Clara County, California; thence along the Southwesterly line of said parcel as shown on said Map, North 40° 34’ 12” West 1003.28 feet, and North 38° 59’ 40” West 27.39 feet, thence leaving said Southwesterly line South 89° 39’ 37” East 401.49 feet to the true point of beginning of lands to be described herein; thence from said true point of beginning and continuing South 89° 39’ 37” East 843.01 feet; thence North 11° 41’ 22” East 592.28 feet; thence North 11° 29’ 20” West 502.06 feet; thence North 18° 14’ 16” West 734.92 feet; thence South 82° 14’ 05” West 222.04 feet; thence North 72° 38’ 46” West 335.26 feet; thence South 24° 07’ 42” West 525.95 feet; thence South 05° 08’ 41” East 1360.48 feet to the true point of beginning. NOT YET ADOPTED 2017-03-08 Park Dedication Ordinance 36.5 Acres Parcel Three: Beginning at a point on the general Westerly line of the 151.61 acre parcel of land shown on that certain Record of Survey Map, filed on August 15, 1969, in Book 258 of Maps, at Pages 4 and 5, records of Santa Clara County, California, said point of beginning being the Southerly terminus of the course designated as “North 05° 00’ 10” East 98.90 feet”, shown on the Northerly portion of said general Westerly line as same is delineated upon Sheet 1 of said Map, and said point of beginning being marked on the ground by 3/4 inch iron pipe monument and tag “RCE 5597”; thence from said point of beginning and continuing along said general Westerly line of said 151.61 acre parcel North 05° 00’ 10” East 98.90 feet, North 84° 59’ 50” West 38.65 feet, North 16° 20’ 32” West 122.01 feet, South 84° 59’ 50” East 83.06 feet, North 05° 00’ 10” East 15.00 feet, and South 84° 59’ 50” East 195.69 feet; thence leaving said general Westerly line of said 151.61 acre parcel, South 87° 58’ 26” East 739.73 feet; thence South 05° 08’ 41” East 396.83 feet; thence South 84° 04’ 53” West 287.98 feet; thence North 72° 39’ 01” West 729.32 feet returning to said general Westerly line of said 151.61 acre parcel; thence along said general Westerly line North 16° 23’ 50” West 25.00 feet to the point of beginning. Parcel Four: Parcel A: Commencing at a point on the general Westerly line of the 151.61 acre parcel of land shown on that certain Record of Survey Map filed on August 15, 1969, in Book 258 of Maps, at Pages 4 and 5, records of Santa Clara County, California, said point of beginning being the Southerly terminus of the course designated as “North 05° 00’ 10” East 98.90 feet” as shown on the Northerly portion of said general Westerly line as same is delineated upon Sheet 1 of said Map, and said point of beginning being marked on the ground by a 3/4 inch iron pipe monument and Tag “RCE 5597”; thence from a point of beginning and continuing along said general Westerly line of said 151.61 acre parcel North 05° 00’ 10” East 98.90 feet, North 84° 59’ 50” West 38.65 feet, North 16° 20’ 32” West 122.01 feet, South 84° 59’ 50” East 83.06 feet, North 05° 00’ 10” East 15.00 feet, and South 84° 59’ 50” East 195.69 feet; thence leaving said general Westerly line of said parcel, South 87° 58’ 26” East 121.20 feet to the true point of beginning of the parcel of land to be described herein; thence from said true point of beginning North 14° 50’ 40” East 676.45 feet; thence South 79° 14’ 55” East 665.06 feet; thence South 24° 07’ 42” West 525.95 feet; thence South 05° 08’ 41” East 71.97 feet; thence North 87° 58’ 26” West 618.53 feet to the true point of beginning. Parcel B: Beginning at a point on the general Westerly line of the 151.61 acre parcel as shown on the above described Record of Survey Map, which point of beginning is located along said general Westerly line North 40° 34’ 12” West 1003.28 feet, and North 38° 59’ 40” West 27.39 feet from the most Southerly corner of said parcel as shown on said Map; thence from said point of beginning and continuing along said general Westerly line North 38° 59’ 40” West 681.93 feet, thence tangent to the preceding course on the arc of a curve to the right having a radius of 900.05 feet and a central angle of 22° 35’ 50”, an arc distance of 354.98 feet, thence North 16° 23’ 50” West 241.03 feet; thence leaving said general Westerly line South 72° 39’ 01” East 729.32 feet; thence North 84° 04’ 53” East 287.98 feet; thence South 05° 08’ 41” East 891.68 feet; thence North 89° 39’ 37” West 401.49 feet to the point of beginning. APN: 008-04-001 NOT YET ADOPTED 2017-03-08 Park Dedication Ordinance 36.5 Acres NOT YET ADOPTED 2017-03-08 Park Dedication Ordinance 36.5 Acres This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend abc City Boundary Former ITT Property 0' 1200' Fo r m e r I T T P r o p e r t y Ar e a M a p CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto RRivera, 2016-05-25 17:52:19Baylands Former ITT Property (\\cc-maps\gis$\gis\admin\Personal\RRivera.mdb) City of Palo Alto (ID # 7526) City Council Staff Report Report Type: Action Items Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Public Hearing: Adoption of a Resolution Confirming Weed Abatement & Assessment Title: PUBLIC HEARING: Adoption of a Resolution Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein From: City Manager Lead Department: Fire Recommendation Staff recommends Council (1) hold a public hearing to hear and consider objections from affected property owners of proposed assessments related to completed weed abatement work, and (2) adopt the attached resolution confirming the report and ordering abatement costs to be a special assessment on the properties specified in the report. Background The Weed Abatement Division of Santa Clara County Agriculture and Environmental Management administers the contract for weed abatement within the City of Palo Alto, in accordance with an agreement established on April 18, 1977 between the City and County. On January 9, 2017, in accordance with Palo Alto Municipal Code Chapter 8.08, the City Council declared weeds to be a nuisance and ordered that the nuisance be abated. A public hearing was held on February 6, 2017, to consider objections to the proposed destruction or removal of the weeds. No objections were noted. Once the above steps had been taken, the County Weed Abatement Division instructed its contractor to abate weeds on City and private properties within Palo Alto. That work has now been completed. Property owners were notified the third week in January 2017 that weeds were to be abated by April 30th, 2017, either by the owners or by the County. If the property owners chose to have the County abate the weeds, the abatement charges would be levied against the respective properties as an assessment by the County Assessor. The County has since informed the property owners of the costs for destroying and removing the weeds. City of Palo Alto Page 2 The City Clerk has published the required notice of this hearing in the Palo Alto Weekly. The cost report by the County Weed Abatement Division has been posted on the City Hall Plaza bulletin board for ten days prior to this hearing. Discussion Property owners may object to the charges for weed abatement being levied against their properties. The charge consists of the contractor’s cost plus 150 percent administrative charges, in accordance with Palo Alto’s contract with Santa Clara County (CMR #7527, December 12, 2016). A representative from the County Weed Abatement Division will be present at the public hearing with the records of weed abatement that have taken place. Should there be any modifications in the proposed assessments as a result of the hearing; changes in the assessment spread will be made as necessary. After any recalculations are completed, and Council adopts the attached resolution confirming the abatements and ordering those costs to be imposed as liens on the abated properties, the assessments will be submitted to the County Assessor for entry on the October tax roll upon which general City taxes are to be collected. RESOURCE IMPACT There is no direct fiscal impact of this action to the City. The assessments identified on Exhibit “A” of the resolution, totaling $32,509.02, will be imposed as liens on the properties listed and will not be borne by the City. POLICY IMPLICATIONS This procedure is consistent with existing City policies. ENVIRONMENTAL ASSESSMENT The Santa Clara County Counsel has determined the Weed Abatement Program to be Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15308. Attachments:  Attachment A: Resolution Confirming Weed Abatement Report and Ordering Cost of Abatement NOT YET APPROVED 170608 th 020619 1 Resolution No. _____ Resolution Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein R E C I T A L S A. The Council of the City of Palo Alto has heretofore declared weeds growing on certain properties within the City to be a public nuisance by Resolution No. 9657, dated January 9th, 2017; and B. The Council on February 6th, 2017 did adopt Resolution No. 9666 thereby ordering the weed nuisance abated; and C. Subsequent to the giving of said notice, the Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has caused to be abated the weeds on the herein described properties; and D. The Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has filed his report and assessment list for weed abatement as provided by law and a hearing has been duly set and noticed, for objections to said report and assessment list and for confirmation; and E. The Council has duly considered the report and assessment list and any objections thereto. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The report and assessment list is in all respects complete and correct and is hereby confirmed. The amounts of the cost for abating the nuisance are confirmed and those remaining unpaid, as shown on Exhibit “A” attached hereto and incorporated herein, shall constitute special assessments against the respective parcels of land and are a lien on the property for the amount of the respective assessment. SECTION 2. All written or oral protests or objections to said report and assessment list are overruled or denied. SECTION 3. The unpaid assessments shown on Exhibit “A” shall be entered upon the 2016-2017 tax roll against the parcels of land and shall be collected at the same time and in the same manner as general City taxes, be subject to the same interest and penalties, and be subject to the same procedure and sale in case of delinquency. All laws and ordinances NOT YET APPROVED 170608 th 020619 2 applicable to the levy, collection, and enforcement of City taxes are hereby made applicable to this special assessment. SECTION 4. Santa Clara County has determined the weed abatement program to be categorically exempt from CEQA pursuant to CEQA Guidelines Section 15308. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Deputy City Attorney City Manager _____________________________ Fire Chief _____________________________ Director of Administrative Services NOT YET APPROVED 170608 th 020619 3 EXHIBIT A NOT YET APPROVED 170608 th 020619 4 NOT YET APPROVED 170608 th 020619 5 NOT YET APPROVED 170608 th 020619 6 City of Palo Alto (ID # 8171) City Council Staff Report Report Type: Action Items Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: FY 2017 Water and Refuse Rate Public Hearing Title: PUBLIC HEARING AND PROPOSITION 218 HEARING: Staff Recommendation That the City Council Adopt two Resolutions: 1) Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service From Fire Hydrants), W-4 (Residential Master-Metered and General Non- Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) to Increase Rates up to 4 Percent, and Repeal the Drought Surcharges Effective July 1, 2017; and 2) Amending Rate Schedule R-1 (Residential Refuse Rates) to Increase Monthly Refuse Service Rates by 5 Percent Effective July 1, 2017 From: City Manager Lead Department: Utilities Recommendation Staff requests that the City Council: 1. Adopt a resolution (Attachment B): a. Amending Utility Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) (Attachment C) to increase rates up to 4% effective July 1, 2017; and b. Removing the drought surcharge effective July 1, 2017. 2. Adopt a resolution (Attachment D) amending Utility Rate Schedule R-1 (Residential Refuse Rates) (Attachment E) to increase monthly refuse service rates by 5% effective July 1, 2017. Executive Summary The City mailed a Notice of Public Hearing (Attachment A) regarding the Water and Refuse rate changes to property owners and customers as of May 5, 2017, informing the public that the proposed rate changes would be considered for Council adoption at a Public Hearing on June 19, 2017 at 6 pm, and inviting the public to provide comment or protest. Council may adopt the proposed rates unless written protests are filed by a majority of the affected customers. City of Palo Alto Page 2 Any approved rate changes will become effective July 1, 2017. Background On April 4, 2017, Utilities and Public Works staff presented the Finance Committee two reports:  Utilities Advisory Commission Recommendation That the City Council Adopt: (1) a Resolution Approving the Fiscal Year 2018 Water Utility Financial Plan; and (2) a Resolution Increasing Water Rates by Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service From Fire Hydrants), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) and Removing the Drought Surcharge (ID #7854) (Attachment F); and  Finance Committee Discussion and Recommendation That Council Adopt (As Part of the Fiscal Year 2018 Annual Budget) a Resolution Amending the Residential Refuse Rates for Fiscal Year 2018 to Cover Program Costs and Keeping All Other Rates the Same (ID #7724) (Attachment G) As required by Article XIIID of the State Constitution (added by Proposition 218), a Notice of Public Hearing regarding the proposed Water and Refuse rate changes was sent to affected property owners and customers 45 days prior to the June 19 Public Hearing. All residents and other interested persons may submit written or oral testimony at the hearing, and may also submit written protests to any or all of the proposed rate increases. While in prior years rate change proposals have been considered during the Budget Adoption Hearing, this year the Budget Adoption Hearing will occur on June 27th. The Public Hearing at which Council will consider adoption of the proposed water and refuse rates must be opened on June 19 as stated in the notice, but may be continued, if needed, to June 27 after the hearing is opened. Discussion Water Rates The attached water rate change will result in a 2-4% rate decrease for most customers whose usage remains similar to pre-drought consumption, because the 4% increase to base water rates is offset by the removal of the drought surcharges currently in effect. The UAC reviewed the Water Financial Plan and Rate Proposals at its meeting on March 1, 2017, and unanimously recommended approval of the proposed rates and financial plan while expressing concern that Palo Alto water utility rates were higher than comparison cities. The Finance Committee reviewed the Water Financial Plan and Rate Proposals at its meeting on April 4, 2017, and recommended a lower increase to base rates, 3%, but recommended that staff perform whatever noticing is required to enable Council to adopt a 4% increase on June 19, 2017. The attached notice was formatted to enable Council to consider and adopt either a 3% or a 4% rate change. The Finance Committee also requested that additional information be provided to regarding why Palo Alto water utility rates were higher than other communities. City of Palo Alto Page 3 Staff provided information on water utility benchmarking at the May 18, 2017 Finance Committee meeting (Attachment I). With this information, the Finance Committee recommended the City Council approve the Utilities Department budget with the understanding it reflects a 4% rate increase and drought surcharge elimination. Refuse Rates The Refuse Rate proposal to increase residential monthly refuse service rates by 5% for FY 2018 as presented to the Finance Committee (Attachment C) was approved unanimously (4-0). There is no change proposed for commercial refuse rates. Excerpted minutes of the April 4, 2017 Finance Committee meeting are provided as Attachment H. Timeline After the Public Hearing is opened and testimony from members of the public accepted, City Council may choose to: 1. Close the hearing and take action; or 2. Close the hearing and defer action until the Budget Adoption Hearing on June 27th; or 3. Continue the hearing until the Budget Adoption Hearing on June 27th, then on the 27th reconvene the hearing, take any additional water and refuse rate testimony, close the hearing, and take action. The latter option has been used in prior years when the Budget Adoption process has spanned multiple City Council meetings. It is customary in such circumstances to continue to accept written protests up until the hearing is closed. Unless written protests are filed by a majority of affected customers, Council may vote on the proposed rate actions. If approved, they would become effective July 1, 2017. Resource Impact Resource impacts related to the proposed Water and Refuse rate actions are detailed fully in the attached Finance Committee reports. Policy Implications The proposed water rate adjustments are consistent with Council-adopted Reserve Management Practices that are part of the Financial Plans, and were developed using a cost of service study and methodology consistent with the California Constitution’s cost of service requirements. There are no policy changes contained in the adoption of the proposed new Refuse Rates. Environmental Review The Council’s adoption of the proposed FY 2018 Water and refuse rate adjustments is exempt from CEQA review under Public Resources Code Section 21080(b)(8) as an adoption of rates to City of Palo Alto Page 4 meet operating expenses, purchase supplies, meet reserve needs and obtain capital improvement funds). After reviewing this staff report and all attachments presented, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. Attachments:  Attachment A: NOTICE OF PUBLIC HEARING  Attachment B: Resolution Adopting Water Rates and Deactivation of Drought Surcharge effective July 1, 2017  Attachment C: Water Utility Rate Schedules W-1, W-2, W-4 and W-7  Attachment D: Resolution Amending Refuse Rate Schedule  Attachment E: Refuse Utility Rate Schedule R-1  Attachment F: Staff Report 7854 - FY 2018 Water Utility Rate Proposal  Attachment G: Staff Report 7724 - FY 2018 Refuse Rate Proposal  Attachment H: Excerpted Action Minutes of April 4, 2017 Finance Committee Meeting  Attachment I: Water Utility Benchmarking Study NOTICE OF PUBLIC HEARING – PROPOSED WATER AND REFUSE RATE CHANGES May 5, 2017 On June 19, 2017, the Palo Alto City Council will consider proposed changes to the City’s water and refuse service rates that, if approved, will become effective on July 1, 2017. The City’s utility rates and charges are evaluated annually to determine if adequate revenues will be collected to pay for operations and maintenance costs, provide funds for important capital improvement programs and maintain adequate reserves. Please visit our website for additional background information on the proposed changes: www.CityofPaloAlto.org/RatesOverview WATER RATES Water rates are designed to recover the City’s costs of buying and distributing water while maintaining adequate financial reserves. These costs have been increasing, particularly the City’s wholesale cost of water. The City’s water supplier, the San Francisco Public Utilities Commission (SFPUC), is at the end of a ten-year, $4.6 billion dollar capital improvement program to replace aging infrastructure in the Hetch Hetchy water system and improve its seismic reliability. Each year the SFPUC issues new debt to fund the next phase of the project, which increases its debt service costs. The SFPUC passes these costs on to the City and to other water agencies served by the Hetch Hetchy system. As water usage has decreased during California’s long running drought, collection of these fixed debt costs translates to higher per unit costs for all customers. As of July 1, 2017 the SFPUC wholesale water rate is expected to increase by roughly $0.36/CCF.1 The City is including that increase in the proposed rate increases shown below, and continues to implement an aggressive program to upgrade its own water distribution pipelines, as well as a multi-year project to rehabilitate and seismically strengthen its reservoirs. The City also recently completed a project to rehabilitate wells and build a new reservoir to bolster its emergency water supply system. The City’s water rate schedules currently consist of three components: 1.a “volumetric” commodity charge for each CCF1 of water consumed during the billing period; 2.a monthly service charge for each customer, based on water meter size; and 3.a drought surcharge, currently equal to 20% of the volumetric charge. No changes are proposed to the monthly water service charges this year. The drought surcharge is proposed to be deactivated as of July 1, 2017. The proposed changes to the volumetric rates are shown below. On June 19, the City Council will consider a four percent rate increase, although it may choose to set the increase at some lower rate. Rates are set to recover costs, and a smaller increase will require a reduction in the water utility’s operations, maintenance and/or capital budgets, or an increase in reserve withdrawals. It should be noted that the combination of the Volumetric Water Charge increase and deactivation of the Drought Surcharge will result in a net savings for customers who maintain similar consumption levels. For information, both a three percent and four percent rate increase is shown below: Current and Proposed Volumetric Water Charges Rate Schedule Applicable Volume Current Rates Proposed Rates @ 3% Proposed Rates @ 4% Rate Change Rate Change ($ per CCF) ($ per CCF) ($ per CCF) ($ per CCF) ($ per CCF) W-1 – Residential First 6 CCF Over 6 CCF $6.30 8.82 $6.57 9.09 $0.27 0.27 $6.66 9.18 $0.36 0.36 W-2 – Hydrant All CCF 7.32 7.59 0.27 7.68 0.36 W-4 – Residential Master-Metered and General Non- Residential All CCF 7.32 7.59 0.27 7.68 0.36 W-7 – Non-Residential Irrigation All CCF 8.72 8.99 0.27 9.08 0.36 1 1 CCF = one hundred cubic feet of water ATTACHMENT A REFUSE RATES Refuse rates are designed to recover the City’s costs of collecting, processing, recycling, composting, and disposing of materials collected curbside, as well as providing weekly street sweeping, household hazardous waste collection programs and extensive waste diversion services. The proposed changes to the Residential refuse rates are part of a Council-approved three year plan to fully recover the cost of providing refuse service. Originally, the plan called for a rate increase of 8% in fiscal year 2018. This has been adjusted to a proposed 5% rate increase. All Residential refuse service costs are included in one monthly charge based on the size of a customer’s garbage cart. Current and Proposed Monthly Residential Refuse Rates (Schedule R-1) Cart Size Current Rates ($ per month) Proposed Rate ($ per month) Change ($ per month) Minican/20 gallon $26.48 $27.81 $1.33 32 gallon 47.69 50.07 2.38 64 gallon 95.38 100.15 4.77 96 gallon 143.07 150.22 7.15 No changes to Commercial refuse rates are proposed at this time. For information about the services included in the refuse rates, please visit CityofPaloAlto.org/RefuseRates YOUR OPPORTUNITY TO GET INVOLVED After reading the information in this letter and reviewing our website, you may wish to provide input to the City Council. Proposed rate changes will be considered by the City Council at a public hearing to be held: June 19, 2017 at 6:00 pm, Council Chambers 250 Hamilton Avenue, Palo Alto, California, 94301 The City welcomes your feedback at the hearing. All residents and other interested persons are invited to submit written or oral testimony at this hearing. You may also submit a written protest against any or all of the proposed charges outlined above. The City must receive your signed, written protest prior to the close of the public hearing on June 19, 2017. Please include information identifying your parcel, such as the Assessor’s Parcel Number(s) of the property or properties you own, or, at a minimum, your street address. You may also include your City of Palo Alto Utilities account number(s) for open account(s) you have with the City that are subject to the proposed rate adjustments. Protests are limited to one per parcel. You may submit protests directly to the City Clerk at either at the June 19, 2017 public hearing, or mail or deliver written protests in advance to: City Clerk, 250 Hamilton Avenue, Palo Alto, California 94301 The City Clerk will follow the guidelines for the submission and tabulation of protests adopted by the City Council on May 12, 2008 (Resolution #8815). If written protests are filed by a majority of the affected customers of a utility (water or refuse) or with respect to a majority of the parcels affected by a utility’s proposed rate increase, the rate increase will not be imposed for that utility. OTHER PROPOSED RATE CHANGES – ELECTRICITY At the June 19 public hearing, the City Council will also consider changes to the City’s electricity rates. Although the written protest process described above is set forth by the California Constitution and only applies to changes to the City’s water and refuse rates, the City welcomes your feedback on any of the proposed rate changes. For more detailed information on all of the changes, please visit www.CityofPaloAlto.org/RatesOverview. For assistance in determining the cost of the proposed rate adjustments to you, please call the City of Palo Alto Utilities Customer Service Center at (650) 329-2161. Attachment B *NOT YET APPROVED * 170216 jb 6053919 Resolution No. _________ Resolution of the Council of the City of Palo Alto Increasing Water Rates by Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) and Repealing Resolution No. 9542 to Deactivate the Level 2 Drought Surcharges R E C I T A L S A. On January 17, 2014 the Governor of the State of California proclaimed a State of Emergency due to severe drought conditions. On April 1, 2015 the Governor issued an Executive Order proclaiming that severe drought conditions continued to exist, and ordering the State Water Resources Control Board to adopt regulations imposing mandatory water use restrictions on water suppliers to achieve a 20% reduction in statewide potable water use through February 28, 2016, or as continued or modified by the Governor. B. On May 5, 2015, the State Water Resources Control Board adopted regulations imposing upon Palo Alto a mandatory 24% reduction in potable water consumption from Jun 1, 2015 through February 28, 2016. This action by the Board triggered the City Council’s authority to activate one of the three drought surcharges available in its water rate schedules. C. On August 17, 2015, Council adopted Resolution 9542 which established that the Level 2 (20%) drought surcharges set forth on the City's schedule of water rates would be collected on all City of Palo Alto Utilities water customer bills as of September 1, 2015, and declared that the surcharge would remain in effect until rescinded or modified by the City Council. D. On May 9, 2016 Governor Brown issued an Executive Order calling for the State Water Resources Control Board to adjust emergency water conservation regulations through the end of January 2017, in recognition of the different water supply conditions across the state. The State Board subsequently revised its regulations allowing suppliers to self-certify that there would be no supply shortfall, assuming 3 additional dry years. . The San Francisco Regional Water System (RWS) supply availability enabled the City of Palo Alto to self-certify a conservation standard of zero which remains in effect. E. While the State’s emergency regulation remains in effect, hydrological conditions as of February 2017 indicate that the State will be largely out of drought conditions, and customer demand has started to rise from peak conservation levels. Water storage in the RWS is at maximum capacity. F. Staff therefore recommends the deactivation of the level 2 drought surcharge at this time, via the repeal of Resolution No. 9542. Attachment C *NOT YET APPROVED * 170216 jb 6053919 G. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. H. On June 19, 2017, the City Council held a full and fair public hearing regarding the proposed rate increase and considered all protests against the proposals. I. As required by Article XIII D, Section 6 of the California Constitution and applicable law, notice of the June 19, 2017 public hearing was mailed to all City of Palo Alto Utilities water customers by May 5, 2017. J. The City Clerk has tabulated the total number of written protests presented by the close of the public hearing, and determined that it was less than fifty percent (50%) of the total number of customers and property owners subject to the proposed water rate amendments, therefore a majority protest does not exist against the proposal. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-1 (General Residential Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-1, as amended, shall become effective July 1, 2017. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-2 (Water Service from Fire Hydrants) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-2, as amended, shall become effective July 1, 2017. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-4 (Residential Master-Metered and General Non-Residential Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-4, as amended, shall become effective July 1, 2017. SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-7 (Non-Residential Irrigation Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-7, as amended, shall become effective July 1, 2017. SECTION 5. The City Council finds as follows: a.Revenues derived from the water rates approved by this resolution do not exceed the funds required to provide water service. b.Revenues derived from the water rates approved by this resolution shall not be used for any purpose other than providing water service, and the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. Attachment C * NOT YET APPROVED * 170216 jb 6053919 c. The amount of the water rates imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the water service attributable to the parcel. SECTION 6. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product. SECTION 7. Each of the rate schedules adopted by this resolution includes a structure of drought surcharges that correspond to different levels of water use reduction in the City. Effective July 1, 2017, each of the drought surcharges in the water rate schedules adopted by this resolution are deactivated and shall not be added to applicable water rates, unless and until such time as Council again approves both their use and the appropriate reduction level. SECTION 8. The Council finds that the adoption of this resolution changing water rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Deputy City Attorney City Manager ___________________________ Director of Utilities __________________________ Director of Administrative Services GENERAL RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-1-1 Effective 7-1-20176 dated 97-1-20165 Sheet No W-1-1 A. APPLICABILITY: This schedule applies to all separately metered single family residential water services. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides water Sservices. C. RATES: Per Meter Monthly Service Charge: Per Month For 5/8-inch meter ..................................................................................................... $ 16.77 For 3/4 inch meter ..................................................................................................... 22.60 For 1 inch meter ........................................................................................................ 34.26 For 1 1/2 inch meter .................................................................................................. 63.40 For 2-inch meter ........................................................................................................ 98.37 For 3-inch meter ........................................................................................................ 209.11 For 4-inch meter ........................................................................................................ 372.31 For 6-inch meter ........................................................................................................ 762.81 For 8-inch meter ........................................................................................................ 1,403.94 For 10-inch meter ...................................................................................................... 2,219.92 For 12-inch meter ....................................................................................................... 2,919.34 Commodity Rate: (To be added to Service Charge and applicable to all pressure zones.) Per Hundred Cubic Feet (ccf) Per Month All Pressure Zones Tier 1 usage ........................................................................................................................$6.6630 Tier 2 usage (All usage over 100% of Tier 1) ........................................................................ 89.182 Attachment C GENERAL RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-1-2 Effective 7-1-20176 dated 97-1-20165 Sheet No W-1-2 Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable Commodity Rate for Tier 1 and Tier 2 water usage when the City Council has determined that a water reduction level is in effect for the City as described in Section D.3. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Tier 1 0.20 0.43 0.64 Tier 2 0.58 1.21 1.85 Temporary unmetered service to residential subdivision developers, per connection ........................................................................ $6.00 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Calculation of Usage Tiers Tier 1 water usage shall be calculated and billed based upon a level of 0.2 ccf per day rounded to the nearest whole ccf, based on meter reading days of service. As an example, for a 30 day bill, the Tier 1 level would be 0 through 6 ccf. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. GENERAL RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-1-3 Effective 7-1-20176 dated 97-1-20165 Sheet No W-1-3 3. Drought Surcharge During period of water shortage or restrictions on local water use, the City Council may, by resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought Surcharge is to recover revenues lost as a result of reduced consumption. {End} WATER SERVICE FROM FIRE HYDRANTS UTILITY RATE SCHEDULE W-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-2-1 Effective 7-1-20176 dated 97-1-20165 Sheet No W-2-1 A. APPLICABILITY: This schedule applies to all water taken from fire hydrants for construction, maintenance, and other uses in conformance with provisions of a Hydrant Meter Permit. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides water sServices. C. RATES: 1. Monthly Service Charge. METER SIZE 5/8 inch ........................................................................................................................... 50.00 3 inch ........................................................................................................................... 125.00 2. Commodity Rate: (per hundred cubic feet) ................................................................ $7.6832 3. Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable Commodity Rate when the City Council has determined that a water reduction level is in effect for the City as described in Section D.5. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.26 0.53 0.77 D. SPECIAL NOTES: 1. Monthly charges shall include the applicable monthly service charge in addition to usage billed at the commodity rate. 2. Any applicant using a hydrant without obtaining a Hydrant Meter Permit or any permittee using a hydrant without a Hydrant Meter Permit shall pay a fee of $50.00 for each day of such use in WATER SERVICE FROM FIRE HYDRANTS UTILITY RATE SCHEDULE W-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-2-2 Effective 7-1-20176 dated 97-1-20165 Sheet No W-2-2 addition to all other costs and fees provided in this schedule. A hydrant permit may be denied or revoked for failure to pay such fee. 3. A meter deposit of $750.00 may be charged any applicant for a Hydrant Meter Permit as a prerequisite to the issuance of a permit and meter(s). A charge of $50.00 per day will be added for delinquent return of hydrant meters. A fee will be charged for any meter returned with missing or damaged parts. 4. Any person or company using a fire hydrant improperly or without a permit, or who draws water from a hydrant without a meter installed and properly recording usage shall, in addition to all other applicable charges be subject to criminal prosecution pursuant to the Palo Alto Municipal Code. 5. During period of water shortage or restrictions on local water use, the City Council may, by resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought Surcharge is to recover revenues lost as a result of reduced consumption. {End} RESIDENTIAL MASTER-METERED AND GENERAL NON-RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-4-1 Effective 7-1-20176 dated 97-1-20165 Sheet No W-4-1 A. APPLICABILITY: This schedule applies to non-residential water service in the City of Palo Alto and its distribution area. This schedule is also applicable to multi-family residential customers served through a master meter. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides water Sservices. C. RATES: Per Meter Monthly Service Charge Per Month For 5/8-inch meter .................................................................................... $ 16.77 For 3/4-inch meter .................................................................................... 22.60 For 1-inch meter .................................................................................... 34.26 For 1 ½-inch meter .................................................................................... 63.40 For 2-inch meter .................................................................................... 98.37 For 3-inch meter .................................................................................... 209.11 For 4-inch meter .................................................................................... 372.31 For 6-inch meter .................................................................................... 762.81 For 8-inch meter .................................................................................... 1,403.94 For 10-inch meter .................................................................................... 2,219.92 For 12-inch meter .................................................................................... 2,919.34 Commodity Rates: (to be added to Service Charge) Per Hundred Cubic Feet (ccf) Per Month All Pressure Zones Per ccf ............................................................................................................ $ 7.6832 RESIDENTIAL MASTER-METERED AND GENERAL NON-RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-4-2 Effective 7-1-20176 dated 97-1-20165 Sheet No W-4-2 Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable Commodity Rate when the City Council has determined that a water reduction level is in effect for the City as described in Section D.2. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.26 0.53 0.77 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Drought Surcharge During period of water shortage or restrictions on local water use, the City Council may, by resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought Surcharge is to recover revenues lost as a result of reduced consumption. {End} NON-RESIDENTIAL IRRIGATION WATER SERVICE UTILITY RATE SCHEDULE W-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-7-1 Effective 7-1-20167 dated 97-1-20165 Sheet No W-7-1 A. APPLICABILITY: This schedule applies to non-residential water service supplying dedicated irrigation meters in the City of Palo Alto and its distribution area. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides water Sservices. C. RATES: Per Meter Monthly Service Charge Per Month For 5/8-inch meter .................................................................................... $ 16.77 For 3/4-inch meter .................................................................................... 22.60 For 1-inch meter .................................................................................... 34.26 For 1 1/2 inch meter .................................................................................... 63.40 For 2-inch meter .................................................................................... 98.37 For 3-inch meter .................................................................................... 209.11 For 4-inch meter .................................................................................... 372.31 For 6-inch meter .................................................................................... 762.81 For 8-inch meter .................................................................................... 1,403.94 For 10-inch meter .................................................................................... 2,219.92 For 12-inch meter .................................................................................... 2,919.34 Commodity Rates: (to be added to Service Charge) Per Hundred Cubic Feet (ccf) Per Month All Pressure Zones Per ccf ............................................................................................................ $ 89.0872 Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable Commodity Rate when the City Council has determined that a water reduction level is in effect for the City as described in Section D.2. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). NON-RESIDENTIAL IRRIGATION WATER SERVICE UTILITY RATE SCHEDULE W-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-7-2 Effective 7-1-20167 dated 97-1-20165 Sheet No W-7-2 Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.53 1.25 2.02 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Drought Surcharge During period of water shortage or restrictions on local water use, the City Council may, by resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought Surcharge is to recover revenues lost as a result of reduced consumption. {End} 170601 jb 6053967 Attachment D Resolution No. xxxx Resolution of the Council of the City of Palo Alto Increasing Refuse Rates by Amending Utility Rate Schedule R-l (Domestic Refuse Collection) R E C I T A L S A. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the City Council may by resolution adopt rules and regulations governing utility services, fees and charges. B. As required by Article XIII D, Section 6 of the California Constitution and applicable law, on June 19, 2017 the Council held a full and fair public hearing regarding the proposed refuse rate increase and considered all protests against the proposal. C. As required by Article XIII D, Section 6 of the California Constitution and applicable law, notice of the June 19, 2017 public hearing was mailed to all City of Palo Alto Utilities refuse customers by May 5, 2017. D. The City Clerk has tabulated the total number of written protests presented by the close of the public hearing, and determined that it was less than fifty percent (50%) of the total number of customers and property owners subject to the proposed refuse rate amendments, therefore a majority protest does not exist against the proposal. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R-1 (Domestic Refuse Collection) is hereby amended to read in accordance with Sheets R-1-1, R-1-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedules, as amended, shall become effective on July 1, 2017. SECTION 2. The rates contained in the attached Rate Schedules shall be in effect until Council adopts a new rate structure. SECTION 3. The Council finds that the revenue derived from the authorized adjustments of the refuse collection rates shall not be used for any purpose other than providing refuse service, and the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. 170601 jb 6053967 SECTION 4. The Council finds that the amount of the refuse rates imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the refuse service attributable to the parcel. SECTION 5. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product. SECTION 6. The Council finds that the adoption of this resolution changing refuse rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the relevant staff reports and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: _____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: _____________________________ ____________________________ Senior Deputy City Attorney City Manager ____________________________ Director of Administrative Services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onthlyRefuse Services Cost Garbage Cart Sizes 0LQLFDQJDOORQFDUW  JDOORQFDUW  JDOORQFDUW JDOORQFDUW   0LQLFDQVHUYLFHFDQQRWEHFRPELQHGZLWKDQ\RWKHUFDUWVHUYLFH   6WDQGDUGFDUWVHUYLFHLVRQHJDOORQFDUW D. SPECIAL ITEM CHARGES:  6WRYHZDVKHUGU\HUZDWHUKHDWHUSLFNXS   )UHH]HUUHIULJHUDWRUDLUFRQGLWLRQHUJDUEDJHFRPSDFWRUSLFNXS   8SKROVWHUHGIXUQLWXUHSLFNXS SHUXQLW    CITY OF PALO ALTO UTILITIES,VVXHGE\WKH&LW\&RXQFLO  (IIHFWLYH7 6XSHUVHGHV5DWH6FKHGXOH5GDWHG 66KHHW1RR-1-2  0DWWUHVVSLFNXS   7LUHSLFNXS SHUWLUHOLPLWRIWLUHV   3DOOHWSLFNXS  ³6XUFKDUJHVSHFLDO´IHH VHH(EHORZ DSSOLHVZKHQVSHFLDOLWHPLVQRWFROOHFWHGXQGHUWKHDQQXDO&OHDQ8S'D\3URJUDPJXLGHOLQHVE. SPECIAL LABOR CHARGES:  5HWXUQWULS QH[WGD\VHUYLFH ««««««««««««««««««««  5HWXUQWULS VDPHGD\VHUYLFH ««««««««««««««««««««  ([WUDFROOHFWLRQ IRUVHUYLFHRIDGGLWLRQDOPDWHULDOFKDUJHGSHUFXELF\DUG   0LVFHOODQHRXVSHUVRQVHUYLFHUDWH SXOORXWVHUYLFH  PLQ 6XUFKDUJHVSHFLDO RQHWLPHSLFNXSRIODUJHRUQRQVWDQGDUGLWHPVRUGHOLYHU\RIFRQWDLQHUVIRUVSHFLDOHYHQWV ««««  5HSDLUUDWH PLQPDWHULDO %DFNVLGH\DUGFROOHFWLRQRIJDUEDJH PRQWKO\FKDUJHSHUUHVLGHQFH±DYDLODEOHWRFXUUHQWEDFNVLGH\DUGVHUYLFHFXVWRPHURQO\ «««««« F. SPECIAL CART CHARGES:JDOORQFDUWUHQWDO «««««««««««JDOORQFDUWUHQWDO «««««««««««JDOORQFDUWUHQWDO «««««««««««JDOORQFDUWSXUFKDVH JDOORQFDUWSXUFKDVH««««««««««««««««««««««« JDOORQFDUWSXUFKDVH««««««««««««««««««««««« JDOORQFDUWSXUFKDVH«««««««««««««««««««««««&DUWZDVK««««««««««««««««««««««««««««&RPSRVWFDUWFRQWDPLQDWLRQ HQWLUHFDUWGXPSHG 5HF\FOLQJFDUWFRQWDPLQDWLRQ HQWLUHFDUWGXPSHG ««««««««««««'DPDJHGFDUWH[FKDQJH RQHDOORZHGSHUFXVWRPHUHDFKFDOHQGDU\HDUDWQRFRVW 0RQWKO\NH\VHUYLFH FXVWRPHUSURYLGHGORFN «««««««««««««««/RFN &ROOHFWRUSURYLGHG ««««««««««««««««««««««&DUWORFNLQVWDOODWLRQ«««««««««««««««««««««««« 0RQWKO\FKDUJHIRUHDFKDGGLWLRQDOFDUWRIVHUYLFHDERYHWKUHHFDUWVIRUWKHFRPSRVWDEOHPDWHULDOVRUUHF\FOLQJFDUW City of Palo Alto (ID # 7854) Finance Committee Staff Report Report Type: Action Items Meeting Date: 4/4/2017 City of Palo Alto Page 1 Summary Title: FY 2018 Water Financial Plan and Rate Proposals Title: Utilities Advisory Commission Recommendation That the City Council Adopt: (1) a Resolution Approving the Fiscal Year 2018 Water Utility Financial Plan; and (2) a Resolution Increasing Water Rates by Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service From Fire Hydrants), W-4 (Residential Master-Metered and General Non- Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) and Removing the Drought Surcharge From: City Manager Lead Department: Utilities Recommendation Staff and the Utilities Advisory Commission (UAC) request that the Finance Committee recommend that the Council: 1.Adopt a resolution (Attachment A) approving the fiscal year (FY) 2018 Water Utility Financial Plan (Attachment B); and 2.Transfer $1.877 million from the Rate Stabilization Reserve to the Operations Reserve; and 3.Adopt a resolution (Attachment C) increasing water rates by amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) and removing the drought surcharge; Executive Summary The FY 2018 Water Utility Financial Plan includes projections of the utility’s costs and revenues for FY 2018 through FY 2027. Costs are projected to rise by about 3% per year over the next several years, primarily due to increasing water supply costs. As a result, staff projects the need for a 4% water rate increase on July 1, 2017 and 6% rate increases in FY 2019 through FY 2023. Uncertainty about the persistence of lower water usage achieved during the recent drought makes these rate projections uncertain. The 4% increase for 2017 is needed to bring the unit cost of water in line with the San Francisco Public Utilities Commission (SFPUC)’s preliminary ATTACHMENT F City of Palo Alto Page 2 estimates of FY 2018 wholesale water costs ($4.37/CCF). In addition, as discussed in last year’s financial plan, staff still recommends the transfer of $1.877 million from the Rate Stabilization Reserve to the Operations Reserve in FY 2017. This action will reduce the Rate Stabilization Reserve to zero. The UAC reviewed the Water Financial Plan and Rate Proposals at its meeting on March 1, 2017, and unanimously recommended approval of the proposed rates and financial plan. Background Every year staff presents the UAC with Financial Plans for its Electric, Gas, Water, and Wastewater Collection Utilities and recommends any rate adjustments required to maintain their financial health. These Financial Plans include a comprehensive overview of the utility’s operations, both retrospective and prospective, and are intended to be a reference for UAC and Council members as they review the budget and staff’s rate recommendations. Each Financial Plan also contains a set of Reserves Management Practices describing the reserves for each utility and the management practices for those reserves. The Finance Committee reviewed preliminary financial forecasts at its March 21, 2017 meeting. Staff has not revised the preliminary projections presented at that meeting. Discussion Staff’s annual assessment of the financial position of the City’s water utility is completed to ensure adequate revenue to fund operations, in compliance with the cost of service requirements set forth in the California Constitution (Proposition 218). This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. The current rate proposals are also based on the cost of service methodology described in the 2012 Palo Alto Water Cost of Service & Rate Study, the 2015 Study update, and the 2015 Drought Rate memorandum completed by Raftelis Financial Consultants. Staff proposes to adjust water rates to the levels shown in Tables 1 and 2, below, effective July 1, 2017, to recover projected increases in the wholesale cost of water the City purchases from the San Francisco Public Utilities Commission. These changes are projected to increase the system average water rate by roughly 4%. These rate changes are included in the proposed amended rate schedules in Attachment D. Prices are increasing by the same amount across all rates as the underlying commodity cost is the same for all customers. City of Palo Alto Page 3 Table 1: Water Consumption Charges in $/CCF (Current and Proposed) Current (7/1/16) Proposed (7/1/17) Change* $/CCF % W-1 (Residential) Volumetric Rates ($/CCF) Tier 1 Rates 6.30 6.66 0.36 6% Tier 2 Rates 8.82 9.18 0.36 4% W-2 (Construction) Volumetric Rates ($/CCF) Uniform Rate 7.32 7.68 0.36 5% W-4 (Commercial) Volumetric Rates ($/CCF) Uniform Rate 7.32 7.68 0.36 5% W-7 (Irrigation) Volumetric Rates ($/CCF) Uniform Rate 8.72 9.08 0.36 4% Table 2: Current and Proposed Monthly Service Charge (No Change) Meter Size Monthly Service Charge ($/month based on meter size) Residential (W-1) Commercial (W-4) Irrigation (W-7) Fire Services (W-3) 5/8” $16.77 N/A 3/4” $22.60 N/A 1” $34.26 N/A 1 ½” $63.40 N/A 2” $98.37 $3.79 3” $209.11 N/A 4” $372.31 $23.42 6” $762.81 $68.03 8” $1,403.94 $144.97 10” $2,219.92 $260.70 12” $2,919.34 $421.11 Bill Impact of Proposed Rate Changes Table 5 shows the impact of the proposed July 1, 2017 rate changes on residential bills. The average increase is projected to be about four percent, which is related to commodity cost increases. The increase represents the difference between what was projected by staff during the FY 2017 forecasting process ($4.01/ccf) to the current estimate of what the FY 2018 SFPUC W-25 (Wholesale Use with Long-Term Contract) rate will be. While staff forecast $4.01/ccf based on preliminary figures provided by the SFPUC, the final rate SFPUC adopted for FY 2017 was $4.10/ccf, with reserves used to cover the difference in the City’s costs vs. revenues. City of Palo Alto Page 4 In early January, the SFPUC provided a preliminary range for their FY 2018 increase to the W-25 wholesale rate ($4.10 to $4.37/ccf). The SFPUC will not determine the final rate until May or June. However, in order to have the City’s rates in place for July 1, staff must provide notice to customers by the end of April. Staff has chosen to conservatively forecast at the high end of the SFPUC estimate. To calculate the rate increase needed as a result of the City’s increased commodity costs, staff, in coordination with the City’s cost of service consultant, applied the per unit commodity cost to the volumetric component of the rates, based on the analysis and methodology from the cost of service study. The per-unit commodity cost is the same for all classes of customers and across all usage levels. As this proposed increase only reflects changes to commodity costs, volumetric rates will increase by the same amount per ccf, regardless of customer type or usage tier. Table 5 shows the impact of the proposed changes. As the State has removed mandatory usage restrictions for California agencies, the SFPUC has adequate water supplies, and as the Water Fund’s reserves are within guideline levels, staff is recommending that Council deactivate the drought surcharge at this time. The bill comparison below assumes the deactivation of the drought surcharge. Table 5: Impact of Proposed Rate Changes on Residential Bills (no drought surcharge) Usage (CCF/month) Bill under Existing Rates (7/1/16) Bill under Proposed Rates (7/1/17) Change $/mo. % 4 $41.97 $43.41 $1.44 3.4% (Winter median) 7 63.39 65.91 2.52 4.0% (Annual median) 9 81.03 84.27 3.24 4.0% (Summer median) 14 125.13 130.17 5.04 4.0% 25 222.15 231.15 9.00 4.1% Table 6 shows the impact of the proposed July 1, 2017 rate changes on various representative commercial customer bills. As with residential rates, this comparison assumes the discontinuation of the drought surcharge. City of Palo Alto Page 5 Table 6: Impact of Proposed Rate Changes on Commercial Bills Usage (CCF/month) Bill under Current Rates (7/1/16) Bill under Proposed Rates (7/1/17) Change $/mo. % Commercial (W-4) (5/8” meters) (Annual median) 12 $104.61 $108.93 $4.32 4% (Annual average) 64 485.25 508.29 23.04 5% Irrigation (W-7) (1 ½” meters) (Winter median) 9 142 145 3 2% (Summer median) 37 386 399 13 3% (Winter average) 56 552 572 20 4% (Summer average) 199 1,799 1,870 72 4% FY 2018 Financial Plan’s Projected Rate Adjustments for the Next Five Fiscal Years Table 7 shows the projected rate adjustments over the next five years and their impact on the annual median residential water bill. Table 7: Projected Rate Adjustments, FY 2018 to FY 2022 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Water Utility 4% 6% 6% 6% 6% Estimated Bill Impact ($/mo)* $3.24 $5.06 $5.36 $5.68 $6.02 * estimated annual impact on median residential water bill, which is currently $81.03. The main driver for the increase in the water utility’s costs (and therefore rates) over the next several years is the cost of water. Wholesale water costs are adopted by the SFPUC, and generally change on an annual basis. Last year the SFPUC’s wholesale rate rose by 9%, and current projections range from 0% to 7%. Over the forecast period, though, it is projected to rise by two to three percent per year. If lower usage persists from the drought, the magnitude of future increases will be difficult to predict. What is certain is that the SFPUC’s costs to operate the Regional Water System are primarily fixed costs, so the water rate charged to wholesale customers like the City of Palo Alto is highly dependent on usage by users of the Regional Water System. The City’s FY 2018 Water Utility Financial Plan assumes that, while the drought has ended and usage has started to increase, based on CPAU’s experience, consumption is not anticipated to return to pre-drought levels. The Water Utility may also see a $1 million increase in operating costs for a capital lease for emergency generators for wells and pump stations. Aside from that, operating and CIP costs are projected to rise roughly 2% to 4% annually over that time. There remains some uncertainty in the forecasts of capital costs for the water utility in coming years. Water main replacement costs have risen substantially in recent years, and it is possible higher CIP expenditures will be required in the future. Higher bid costs and delays in project schedules have resulted in a projected deferment of main replacement projects by two years, City of Palo Alto Page 6 starting in FY 2017, meaning that capital investment costs will be lower for those two years. This delay in main replacement, along with the proposed rate trajectory, should allow for the Operations Reserve to remain well within the reserve guidelines throughout the forecast period. Water Bill Comparison with Surrounding Cities Table 8 compares water bills for residential customers to those in surrounding communities as of February 1, 2017 (under current the City’s current water rates). Palo Alto customers have the highest monthly bills of the group, although bills for smaller water users are lower than in some surrounding communities. It is unclear at this time what water rate changes may be implemented in these communities for FY 2018. Table 8: Residential Monthly Water Bill Comparison Usage (CCF/month) Residential monthly bill comparison ($/month)* As of February 2016 Palo Alto Menlo Park Mountain View Hayward Redwood City Santa Clara 4 43.69 44.46 46.47 34.63 33.37 19.80 (Winter median) 7 67.18 63.03 65.43 53.68 45.20 34.65 (Annual median) 9 87.24 75.43 78.07 66.38 53.09 44.55 (Summer median) 14 137.39 107.95 119.47 98.13 73.81 69.30 25 247.72 180.33 229.94 206.08 119.91 123.75 Based on the FY 2013 BAWSCA survey, the fraction of SFPUC as the source of potable water supply was 100% for Palo Alto, 95% for Menlo Park, 100% for Redwood City, 87% for Mountain View, 10% for Santa Clara and 100% for Hayward. Changes from Preliminary Financial Forecast After presenting the preliminary financial forecast to the UAC on February 1, 2017, staff re- evaluated reserve and cost positions and determined a commodity-only increase could be performed without negatively impacting the financial health of the utility. The final SFPUC wholesale rate is not determined until May or June, well after Palo Alto needs to propose and notice its rate changes to the public under Proposition 218. In the future, staff may recommend that the SFPUC Schedule W-25 (Wholesale Cost with Long-Term Contract) commodity cost to Palo Alto be automatically passed -through to ratepayers, similar to how gas commodity costs are passed through on a monthly basis. Allowing commodity costs to automatically adjust via a pass-through charge would better match revenues to the City’s wholesale costs and avoid having to reconcile SFPUC’s commodity cost changes many months after they are imposed. California law implementing Prop. 218 (Government Code 53766) allows for automatic adjustments that pass-through increases or decreases in the City’s wholesale water costs, so long as customers are informed of the rate adjustment at least 30 days in advance of each rate adjustment. Customers would be informed of the City’s initial intent to automatically adjust City of Palo Alto Page 7 these costs via the standard Proposition 218 notice and hearing process. If no majority protest occurred and Council adopted the proposed rates, future changes to the wholesale rate could be passed through to customers upon 30 days’ notice to customers, and such notice is typically included on the utility bill. The automatic pass-through adjustment would need to be reapproved, via a new Proposition 218 notice and public hearing process, every five years. Changes from Last Year’s Financial Forecast Table 9 compares current rate projections to those projected in the last two year’s Financial Plans. As shown, the FY 2018 rate projections are somewhat lower than projected last year. The cumulative projected increase in rates through FY 2026 is similar to last year’s projections. In this year’s projection, however, higher reserves allow rates to be increased gradually over the entire forecast period, rather than increased quickly in FY 2018, FY 2019, and FY 2020, as in last year’s projection. The overall rate increase over the forecast period is higher than projected in the FY 2016 Financial Plan, however, and this is due to the high likelihood of some of the water conservation habits established during the drought persisting long term, leading to lower consumption. Table 9: Projected Water Rate Trajectory for FY 2018 to FY 2027 Projection FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Current (FY 2018 Financial Plan) 4% 6% 6% 6% 6% 6% 2% 2% 2% 1% Last year (FY 2017 Financial Plan) 9% 9% 6% 2% 2% 2% 3% 5% 3% N/A Two years ago (FY 2016 Financial Plan) 8% 8% 3% 1% 2% 3% N/A N/A N/A N/A Commission Review and Recommendation The UAC reviewed this proposal at its March 1, 2017 meeting. Staff noted that the rate projection had changed since the February 1, 2017 meeting as a result of new projections for the balance of the Operations Reserve. The original six percent increase was amended down to a four percent increase instead. After brief discussion the UAC voted to recommend that the Council adopt resolutions approving the FY 2018 Water Financial Plan and increasing water rates by amending Rate Schedules W-1, W-2, W-4 and W-7. The vote was unanimous (7-0). The draft excerpted minutes from the UAC’s March 1, 2017 meeting are provided as Attachment E. Timeline Assuming the Finance Committee supports staff’s recommendation, notification of the rate increases will be sent to customers as required by Article XIIID of the State Constitution (added by Proposition 218). The Financial Plans and rate schedules will then go to the City Council with City of Palo Alto Page 8 the FY 2018 budget for adoption, at which time the public hearing required by Article XIIID of the State Constitution will be held. All residents and other interested persons may submit written or oral testimony at the hearing, and may also submit written protests to any or all of the proposed rate increases. Council may adopt the proposed rates unless written protests are filed by a majority of the affected customers. Assuming the rate changes are approved, they will become effective July 1, 2017. Resource Impact Normal year sales revenues for the Water Utility are projected to increase by roughly 4% ($1 million) as a result of these rate increases. See the attached FY 2018 Water Financial Plan for a more comprehensive overview of projected cost and revenue changes for the next ten years. Policy Implications The proposed water rate adjustments are consistent with Council-adopted Reserve Management Practices that are part of the Financial Plans, and were developed using a cost of service study and methodology consistent with the cost of service requirements of Proposition 218. Environmental Review The Finance Committee’s review and recommendation to Council on the FY 2018 Water Financial Plans and rate adjustments does not meet the definition of a project requiring California Environmental Quality Act (CEQA) review, under Public Resources Code Section 21065 and is exempt from CEQA review under Public Resources Code Section 21080(b)(8) as an adoption of rates to meet operating expenses, purchase supplies, meet reserve needs and obtain capital improvement funds). Attachments:  Attachment A: Resolution Approving the FY 2018 Water Financial Plan  Attachment B: Proposed FY 2018 Water Financial Plan  Attachment C: Resolution of the Council of the City of Palo Alto Increasing Water Rates by Amending Rate Schedules W-1, W-2, W-4, and W-7 and Deactivating the Level 2 Drought Surcharge  Attachment D: Proposed Amendments to Rate Schedules W-1_W-2_W-4, and W-7 effective 7-1-2017  Attachment E: Excerpt of Draft March 1, 2017 Utilities Advisory Commission Minutes Attachment A * NOT YET APPROVED * 170216 jb 6053918 Resolution No. ______ Resolution of the Council of the City of Palo Alto Approving the FY 2018 Water Utility Financial Plan R E C I T A L S A. Each year the City of Palo Alto (“City”) regularly assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations. This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. It does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates. The City adopts Financial Plans to summarize these projections. B. The City uses reserves to protect against contingencies and to manage other aspects of its operations, and regularly assesses the adequacy of these reserves and the management practices governing their operation. The status of utility reserves and their management practices are included in Reserves Management Practices attached to and made part of the Financial Plans. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby adopts the FY 2018 Water Utility Financial Plan. SECTION 2. The Council hereby approves the transfer of $1.877 million in FY 2018 from the Rate Stabilization Reserve to the Operations Reserve, as described in the FY 2018 Water Utility Financial Plan approved via this resolution. SECTION 3. The Council finds that the adoption of this resolution does not meet the definition of a project requiring California Environmental Quality Act (CEQA) review, under / / / / / / / / / / Attachment A * NOT YET APPROVED * 170216 jb 6053918 California Public Resources Code 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Deputy City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services FY 2018 WATER UTILITY FINANCIAL PLAN FY 2018 TO FY 2027 ATTACHMENT B WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 2 | P a g e FY 2018 WATER UTILITY FINANCIAL PLAN FY 2018 TO FY 2027 TABLE OF CONTENTS Section 1: Definitions and Abbreviations................................................................................ 4 Section 2: Executive Summary and Recommendations ........................................................... 4 Section 2A: Overview of Financial Position .................................................................................. 4 Section 2B: Summary of Proposed Actions .................................................................................. 5 Section 3: Detail of FY 2018 Rate and Reserves Proposals ....................................................... 5 Section 3A: Rate Design ............................................................................................................... 5 Section 3B: Current and Proposed Rates ..................................................................................... 6 Section 3C: Bill Impact of Proposed Rate Changes ...................................................................... 8 Section 3D: Proposed Reserve Transfers ................................................................................... 10 Section 4: Utility Overview .................................................................................................. 10 Section 4A: Water Utility History ............................................................................................... 10 Section 4B: Customer Base ........................................................................................................ 11 Section 4C: Distribution System ................................................................................................. 11 Section 4D: Cost Structure and Revenue Sources ...................................................................... 11 Section 4E: Reserves Structure ................................................................................................... 12 Section 4F: Competitiveness ...................................................................................................... 13 Section 5: Utility Financial Projections ................................................................................. 13 Section 5A: Load Forecast .......................................................................................................... 13 Section 5B: FY 2012 to FY 2016 Cost and Revenue Trends ........................................................ 15 Section 5C: FY 2016 Results ....................................................................................................... 16 Section 5D: FY 2017 Projections ................................................................................................ 16 Section 5E: FY 2018 – FY 2027 Projections ................................................................................ 16 Section 5F: Risk Assessment and Reserves Adequacy ............................................................... 18 Section 5G: Alternate ScenarIOS ................................................................................................ 19 WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 3 | P a g e Section 5H: Long-Term Outlook ................................................................................................. 19 Section 6: Details and Assumptions ..................................................................................... 20 Section 6A: Water Purchase Costs ............................................................................................. 20 Section 6B: Operations .............................................................................................................. 21 Section 6C: Capital Improvement Program (CIP) ....................................................................... 22 Section 6D: Debt Service ............................................................................................................ 24 Section 6E: Other Revenues ....................................................................................................... 26 Section 6F: Sales Revenues ........................................................................................................ 26 Section 7: Communications Plan .......................................................................................... 26 Appendices ......................................................................................................................... 28 Appendix A: Water Utility Financial Forecast Detail ................................................................. 29 Appendix B: Water Utility Capital Improvement Program (CIP) Detail ..................................... 31 Appendix C: Water Utility Reserves Management Practices ..................................................... 33 Appendix D: Description of Water Utility Operational Activities ............................................... 36 Appendix E: Sample of Water Utility Outreach Communications ............................................. 37 WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 4 | P a g e SECTION 1: DEFINITIONS AND ABBREVIATIONS BAWSCA Bay Area Water Supply and Conservation Agency CCF The standard unit of measurement for water delivered to water customers, equal to one hundred cubic feet, or roughly 748 gallons. CIP Capital Improvement Program CPAU City of Palo Alto Utilities Department O&M Operations and Maintenance RFC Raftelis Financial Consultants, Inc. SFPUC San Francisco Public Utilities Commission SFWD San Francisco Water Department UAC Utilities Advisory Commission WSIP The SFPUC’s Water System Improvement Program to seismically strengthen the transmission lines of the Hetch Hetchy regional water system. SECTION 2: EXECUTIVE SUMMARY AND RECOMMENDATIONS This document presents a Financial Plan for the City’s Water Utility for the next ten years. This Financial Plan provides revenues to cover the costs of operating the utility safely over that time while adequately investing for the future. It also addresses the financial risks facing the utility over the short term and long term, and includes measures to mitigate and manage those risks. SECTION 2A: OVERVIEW OF FINANCIAL POSITION Overall costs in the Water Utility are expected to rise by about 3% per year from fiscal year (FY) 2017 to 2027. Excluding FY 2018 (which, unlike a normal year, does not include a water main replacement project), most costs are projected to rise by two to three percent annually through the projection period. The costs for the Water Utility are shown in Table 1 below. Table 1: Expenses for FY 2016 to FY 2027 (Thousand $’s) Expenses ($000) FY 2016 (act.) FY 2017 (est.) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Water Purchases 17,626 19,246 21,347 22,756 22,850 22,933 23,016 23,120 23,367 23,625 23,890 24,495 Operations 15,895 17,601 18,064 18,535 19,023 19,475 19,905 20,349 20,798 21,260 21,734 22,220 Capital Projects 9,082 4,110 4,082 10,314 10,067 10,364 10,671 10,986 11,310 11,645 11,989 12,343 TOTAL 42,603 40,610 43,494 51,605 51,940 52,773 53,591 54,455 55,475 56,529 57,613 59,059 This proposed financial plan projects that the rate increases shown in Table 2 are needed to ensure that revenues cover rising costs and reserves remain healthy. The table also shows rate projections from last year’s Financial Plan. Last year’s plan projected earlier, more aggressive rate increases. However, the delay of the planned FY 2017 and FY 2018 water main replacement projects resulted in an increase in reserves, which enabled the more gradual WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 5 | P a g e increases projected in the current plan. This also means that the Rate Stabilization Reserve will be drawn down over a longer time frame than projected in last year’s financial plan. Table 2: Projected Water Rate Trajectory for FY 2018 to FY 2027 Projection FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Current 4% 6% 6% 6% 6% 6% 2% 2% 2% 1% Last year 9% 9% 6% 2% 2% 2% 3% 5% 3% N/A 2 years 8% 8% 3% 1% 2% 3% N/A N/A N/A N/A The Water Utility has a Rate Stabilization Reserve that can be used to smooth rate increases over several years. This Financial Plan projects that these reserves will be exhausted by the end of FY 2017. The Water Utility also has a Capital Improvement Program (CIP) Reserve that can be used to offset one-time unanticipated capital costs. This Financial Plan assumes that the CIP Reserve will be used for unanticipated capital expenses or returned to the Operations Reserve by the end of FY 2020. Table 3 shows the projected reserve transfers over the forecast period. Table 3: Transfers To/(From) Reserves for FY 2017 to FY 2027 ($000) Reserve FY 2017 FY 2018 FY 2019 to FY 2027 Capital Improvement - (2,726) Rate Stabilization (1,877) - - Operations 1,867 - 2,726 SECTION 2B: SUMMARY OF PROPOSED ACTIONS Staff proposes the following actions for the Water Utility in FY 2018: 1. Increase rates by 4%, reflecting proposed increases to SFPUC wholesale rates. This is described in more detail in Section 3B: Current and Proposed Rates. 2. Transfer $1.877 million from the Rate Stabilization Reserve to the Operations Reserve. See Section 3D: Proposed Reserve Transfers for more details. SECTION 3: DETAIL OF FY 2018 RATE AND RESERVES PROPOSALS SECTION 3A: RATE DESIGN The Water Utility’s rates are evaluated and implemented in compliance with the cost of service requirements and procedural rules set forth in the California Constitution under Article 13 (per Proposition 218). Current rates were structured based on staff’s assessment of the financial position of the Water Utility, and updated using the methodology from the March 2012 Palo Alto Water Cost of Service & Rate Study by Raftelis Financial Consultants, Inc. (Staff Report 2676), as well as Raftelis’ 2015 Memorandum: Proposed Water Rates updating the 2012 Study and analyzing drought rates (Staff Report 5951). Staff plans to review and update this cost of service study in 2 to 3 years, unless any major changes occur to the utility’s operations or customer base that would necessitate an earlier study. Before conducting any new cost of WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 6 | P a g e service study, staff will review current rates and the scope of the study with the Utilities Advisory Commission (UAC) and Council to determine the City’s policy priorities. In 2015 Council adopted a drought surcharge to assist the water utility in recovering its costs due to decreased revenue due to lower water consumption resulting from conservation measures. Recent rains have dramatically improved the water supply outlook for the Hetch Hetchy system, eliminating local drought impacts. Mandatory usage restrictions have been lifted by the State of California, and while voluntary measures may still remain in place , customers’ usage of water has started to increase. The increasing usage, the end of the drought, and the healthy level of Operations reserves indicate to staff that the drought surcharge can be removed at this time. SECTION 3B: CURRENT AND PROPOSED RATES The current rates and surcharges were effective on July 1, 2016. Rates were adjusted in accordance with the results of an updated cost of service study performed by Raftelis Financial Consultants, Inc. (RFC) in 2015. The 2015 study both developed the drought surcharges and validated the City’s water rate methodology and structure in light of court decisions interpreting provisions of the State Constitution applicable to water rates. RFC recommended only minor adjustments to ensure that peaking costs were equitably allocated to each customer class and residential rate tier. CPAU has five rate schedules: one for separately metered residential customers (W-1), one for commercial and master-metered multi-family residential customers (W-4), and specific schedules for irrigation-only services (W-7), services to fire sprinkler systems in buildings and private hydrants (W-3), and for service to fire hydrant rental meters used for construction (W- 2). All customers pay a monthly service charge based on the size of their inlet meter. This charge represents meter reading, billing, and other customer service costs, but also the cost of maintaining the capability to deliver a peak flow for that customer corresponding to their meter size. All customers are also charged for each CCF (one hundred cubic feet) of water used. Separately metered residential customers are charged on a tiered basis, with the first 0.2 CCF per day (6 CCF for a 30 day billing period) charged at the base price per CCF, and all additional units charged a higher price per CCF. Commercial customers pay a uniform price for each CCF used, and a higher price for separately metered irrigation service. Table 4 shows the current and proposed consumption charges. The average increase is projected to be about four percent, which is related to commodity cost increases. The increase represents the difference between what was projected by staff during the FY 2017 forecasting process ($4.01/ccf) to the current estimate of what the FY 2018 SFPUC W-25 (Wholesale Use with Long-Term Contract) rate will be. While staff forecast $4.01/ccf based on preliminary figures provided by the SFPUC, the final rate adopted for FY2017 was $4.10/ccf, with reserves used to cover the difference in cost vs. revenues. In early January, the SFPUC provided a preliminary range for their FY 2018 increase to the W-25 wholesale rate ($4.10 to $4.37/ccf). The SFPUC will not determine the final rate until May or WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 7 | P a g e June. However, in order to have rates in place for July 1, staff must notice customers by the end of April. Staff has chosen to conservatively forecast at the high end of the SFPUC estimate. The SFPUC does not typically provide it’s final, annual change to its wholesale rate until the City’s retail rate is already proposed to Council for adoption. To meet Palo Alto’s timeline to increase rates by July 1, staff has historically set retail rates based on early estimates from the SFPUC, which are subject to change. Changes in the SFPUC’s wholesale rate require staff to reconcile costs and revenues well after the fact. To calculate the rate increase needed as a result of the City’s increased commodity costs, staff, in coordination with the City’s cost of service consultant, applied the per-unit commodity cost to the volumetric component of the rates, based on the analysis and methodology from the cost of service study. The per-unit commodity cost is the same for all classes of customers and across all usage levels. As this proposed increase only reflects changes to commodity costs, volumetric rates will increase by the same amount per ccf, regardless of customer type or usage tier. California law implementing Prop. 218 (Government Code 53766) allows for automatic adjustments that pass-through increases or decreases in the City’s wholesale water costs, so long as customers are informed of the rate adjustment at least 30 days in advance of each rate adjustment. Customers would be informed of the City’s initial intent to automatically adjust these costs via the standard Proposition 218 notice and hearing process. If no majority protest occurred and Council adopted the proposed rates, future changes to the wholesale rate could be passed through to customers upon 30 days’ notice, which is typically included on the utility bill. The automatic pass-through adjustment would need to be reapproved, via a new Prop. 218 notice and public hearing process, every five years. Table 4: Current and Proposed Water Consumption Charges Current (7/1/16) Proposed (7/1/17) Change* $/CCF % W-1 (Residential) Volumetric Rates ($/CCF) Tier 1 Rates 6.30 6.66 0.36 6% Tier 2 Rates 8.82 9.18 0.36 4% W-2 (Construction) Volumetric Rates ($/CCF) Uniform Rate 7.32 7.68 0.36 5% W-4 (Commercial) Volumetric Rates ($/CCF) Uniform Rate 7.32 7.68 0.36 5% W-7 (Irrigation) Volumetric Rates ($/CCF) Uniform Rate 8.72 9.08 0.36 4% Table 5 shows the current monthly service charges for all rate schedules. Staff is not recommending a change to the monthly service charge schedule at this time, as they are not affected by the SFPUC’s wholesale water rate changes. WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 8 | P a g e Table 5: Current Monthly Service Charges Meter Size Monthly Service Charge ($/month based on meter size) Residential (W-1) Commercial (W-4) Irrigation (W-7) Fire Services (W-3) 5/8” $16.77 N/A 3/4” $22.60 N/A 1” $34.26 N/A 1 ½” $63.40 N/A 2” $98.37 $3.79 3” $209.11 N/A 4” $372.31 $23.42 6” $762.81 $68.03 8” $1,403.94 $144.97 10” $2,219.92 $260.70 12” $2,919.34 $421.11 SECTION 3C: BILL IMPACT OF PROPOSED RATE CHANGES Table 6 shows the impact of the estimated July 1, 2017 rate changes on the median residential bill. The average increase is projected to be about four percent, but some customers may see slightly higher or lower increases due to slight changes in the composition of the utility’s costs. To allow for effective comparison, the sample bills shown in Table 6 do not include the temporary drought surcharge, since this would make the bills based on the July 1, 2016 rates appear artificially high and obscure the effects of the increases to long-term rates effective July 1, 2017. In reality, though, many customers will see a decrease in their bills due to the removal of the drought surcharge. This is shown in Table 7. Table 6: Impact of Proposed Water Rate Changes on Residential Bills (no surcharge) Usage (CCF/month) Bill under Current Rates (7/1/16) Bill under Proposed Rates (7/1/17) Change $/mo. % 4 $41.97 $43.41 $1.44 3.4% (Winter median) 7 63.39 65.91 2.52 4.0% (Annual median) 9 81.03 84.27 3.24 4.0% (Summer median) 14 125.13 130.17 5.04 4.0% 25 222.15 231.15 9.00 4.1% WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 9 | P a g e Table 7: Impact of Proposed Water Rate Changes on Residential Bills (with 20% drought surcharge) Usage (CCF/month) Bill under Current Rates (7/1/16) Bill under Proposed Rates (7/1/17) Change $/mo. % 4 $43.69 $43.41 ($0.28) -0.6% (Winter median) 7 67.18 65.91 (1.27) -1.9% (Annual median) 9 87.24 84.27 (2.97) -3.4% (Summer median) 14 137.39 130.17 (7.22) -5.3% 25 247.72 231.15 (16.57) -6.7% Error! Reference source not found. shows the impact of the proposed July 1, 2017 rate changes on various representative commercial customer bills. As for the residential comparison in Table 6 above, this comparison does not include the drought surcharge. A comparison with the existing 20% surcharge is shown in Table 9. Table 8: Impact of Proposed Water Rate Changes on Commercial Bills (no surcharge) Usage (CCF/month) Bill under Current Rates (7/1/16) Bill under Proposed Rates (7/1/17) Change $/mo. % Commercial (W-4) (5/8” meters) (Annual median) 12 $104.61 $108.93 $4.32 4% (Annual average) 64 485.25 508.29 23.04 5% Irrigation (W-7) (1 ½” meters) (Winter median) 9 142 145 3 2% (Summer median) 37 386 399 13 3% (Winter average) 56 552 572 20 4% (Summer average) 199 1,799 1,870 72 4% Table 9: Impact of Proposed Water Rate Changes on Commercial Bills (with 20% drought surcharge) Usage (CCF/month) Bill under Current Rates (7/1/16) Bill under Proposed Rates (7/1/17) Change $/mo. % Commercial (W-4) (5/8” meters) (Annual median) 12 $110.97 $108.93 ($2.04) -2% (Annual average) 64 519.17 508.29 (10.88) -2% Irrigation (W-7) (1 ½” meters) (Winter median) 9 153 145 (8) -5% (Summer median) 37 432 399 (33) -8% (Winter average) 56 622 572 (50) -8% (Summer average) 199 2,047 1,870 (177) -9% WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 10 | P a g e SECTION 3D: PROPOSED RESERVE TRANSFERS In the FY 2017 Financial Plan, staff proposed transferring $1.87 million from the Rate Stabilization Reserve to the Operations Reserve in FY 2017. This transfer will exhaust the Rate Stabilization Reserve, as planned for and discussed in Section 4E: Reserves Structure, and is included in the financial projections in this Financial Plan. It will enable CPAU to maintain adequate Operations Reserve levels while moderating the pace of increase in water rates. However, a proposed $4 million transfer from the CIP Reserve to the Operations Reserve was also discussed in the FY 2016 Financial Plan. As the Operations reserve is projected to end the year at its maximum allowed level, this transfer is no longer required at this time. These funds will be retained for unexpected CIP expenses. The impact of these transfers on reserves levels can be seen in Section 4E: Reserves Structure and Appendix A: Water Utility Financial Forecast Detail. SECTION 4: UTILITY OVERVIEW This section provides an overview of the utility and its operations. It is intended as general background information and to help readers better understand the forecasts in Section 5: Utility Financial Projections and Section 6: Details and Assumptions. SECTION 4A: WATER UTILITY HISTORY The Water Utility was established on May 9, 1896, two years after the city was incorporated. Voters of the 750 person community approved a $40,000 bond to buy local, private water companies who operated one or more shallow wells to serve the nearby residents. The city grew and the well system expanded until nine wells were in operation in 1932. Palo Alto began receiving water from the San Francisco Water Department (SFWD) in 1937 to supplement these sources. A 1950 engineering report noted, “the capricious alternation of well waters and the San Francisco Water Department water…has made satisfactory service to the average customer practically impossible”. By 1950, only eight wells were still in operation. Despite this, groundwater production increased in the 1950’s leading to lower groundwater tables and water quality concerns. In 1962, a survey of water softening costs to CPAU customers determined that CPAU should purchase 100% of its water supply needs from the SFWD. A 20-year contract was signed with San Francisco, and CPAU’s wells were placed in standby condition. The SFWD later became known as the SFPUC. Since 1962 (except for some very short periods) CPAU’s entire supply of potable water has come from the SFPUC. As the city grew, so did the number of mains in the water system. The system of mains expanded along with the town, while existing sections of the system continued to age. In the mid-1980s, the number of breaks in cast iron mains installed during the 1940s and earlier started to accelerate. In FY 1994, to combat deterioration of older sections of the system, an analysis of cost effective system improvements was performed and the rate of main replacement was increased from one mile per year to three. A plan to replace 75 miles of deficient mains within 25 years was begun. WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 11 | P a g e Figure 1: Cost Structure (FY 2016) 42% 37% 21% Water Purchases Operations Capital In 1999, a study of system reliability concluded that major upgrades were needed to the distribution system to provide adequate water supply during a natural disaster. This ultimately resulted in the $40 million Emergency Water Supply and Storage Project, completed in 2013, which involved a new underground reservoir in El Camino Park, the siting and construction of several emergency supply wells, and the upgrade of several existing wells and the Mayfield pump station. Upon completion, the City began to focus its reliability efforts on its system of water storage reservoirs and transmission lines in the Foothills. At the same time that CPAU was evaluating the reliability of its own system, the SFPUC, in consultation with BAWSCA members, was evaluating the reliability of the Hetch Hetchy water system, which crosses two major fault lines between the Sierras and the Bay Area. That evaluation concluded that major upgrades to the system were required. This planning process culminated in the SFPUC’s $4.8 billion Water System Improvement Project (WSIP), which is ongoing. The SFPUC continues to evaluate its aging system for other needed infrastructure improvements. SECTION 4B: CUSTOMER BASE CPAU’s Water Utility provides water service to the residents and businesses of Palo Alto, plus a handful of residential customers not in Palo Alto (Los Altos Hills, primarily). Nearly 20,300 customers are connected to the water system, approximately 16,500 (81%) of which are separately metered residential customers and 3,800 (19%) of which are commercial, master- metered residential, irrigation and fire service customers. Judging from seasonal consumption patterns, between 35% and 50% of Palo Alto’s water is used for irrigation, and that consumption is heavily weather dependent. It also varies significantly by season. As a result of these two factors, there is significant variability in the amount of water that is demanded from the system month to month and year to year. SECTION 4C: DISTRIBUTION SYSTEM To deliver water to its customers, the utility owns roughly 233 miles of mains (which transport the water from the SFPUC meters at the city’s borders to the customer’s service laterals and meters), eight wells (to be used in emergencies), five water storage reservoirs (also for emergency purposes) and several tanks used to moderate pressure and deal with peaks in flow and demand (due to fire suppression, heavy usage times, etc.). These represent the vast majority of the infrastructure used to distribute water in Palo Alto. SECTION 4D: COST STRUCTURE AND REVENUE SOURCES As shown in Figure 1, water purchase costs accounted for roughly 42% of the Water Utility’s costs in FY 2016. Operational costs represented roughly 37%, and capital investment was responsible for the remaining 21%. These percentage distributions are projected to WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 12 | P a g e Figure 2: Revenue Structure (FY 2016) 99% 1% Sales of Water Other Revenue remain roughly the same over the forecast period. The Water Utility receives nearly all of its revenue from sales of water and the remainder from capacity and connection fees, interest on reserves, and other sources. As rates increase over the next several years, the percentage of revenue from sales of water is expected to increase as well. Appendix A: Water Utility Financial Forecast Detail shows more detail on the utility’s cost and revenue structures. Roughly 15% of the utility’s revenues come from fixed service charges, though most of its costs are fixed. This is typical for California water utilities, and conforms to the Best Management Practices (BMPs) of the California Urban Water Conservation Council (CUWCC), a statewide conservation council of environmental groups, state agencies, and water utilities to which the City is a signatory. One of CUWCC’s BMPs is that a utility’s revenue from fixed service charges constitutes at most 30% of the utility’s total revenue from all charges1. SECTION 4E: RESERVES STRUCTURE CPAU maintains six reserves for its Water Utility to manage various types of contingencies. These are summarized below, but see Appendix C: Water Utility Reserves Management Practices for more detailed definitions and guidelines for reserve management:  Reserve for Commitments: A reserve equal to the utility’s outstanding contract liabilities for the current fiscal year. Most City funds, including the General Fund, have a Commitments Reserve.  Reserve for Reappropriations: A reserve for funds dedicated to projects reappropriated by the City Council, nearly all of which are capital projects. Most City funds, including the General Fund, have a Reappropriations Reserve.  Capital Improvement Program (CIP) Reserve: The CIP reserve can be used to accumulate funds for future expenditure on CIP projects and is anticipated to be empty unless a major one-time CIP expenditure is expected in future years. This CIP can also act as a contingency reserve for the CIP. This type of reserve is used in other utility funds (Electric, Gas, and Wastewater Collection) as well.  Rate Stabilization Reserve: This reserve is intended to be empty unless one or more large rate increases are anticipated in the forecast period. In that case, funds can be accumulated to spread the impact of those future rate increases across multiple years. 1 See http://www.cuwcc.org/Resources/Memorandum-of-Understanding/Exhibit-1-BMP-Definitions-Schedules- and-Requirements/BMP-1-Utility-Operations-Programs WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 13 | P a g e This type of reserve is used in other utility funds (Electric, Gas, and Wastewater Collection) as well.  Operations Reserve: This is the primary contingency reserve for the Water Utility, and is used to manage yearly variances from budget for operational water supply costs. This type of reserve is used in other utility funds (Electric, Gas, and Wastewater Collection) as well.  Unassigned Reserve: This reserve is for any funds not assigned to the other reserves and is normally empty. SECTION 4F: COMPETITIVENESS Table 10 shows the current water bills for residential customers compared to what they would be under surrounding communities’ rate schedules. CPAU has the highest monthly bills of the group, although bills for smaller water users are less than in some surrounding communities. Note that Palo Alto’s rates include the Level 2 (20%) drought surcharge currently in effect.2 Table 10: Residential Monthly Water Bill Comparison Usage (CCF/month) Residential monthly bill comparison ($/month)* As of February 2017 Palo Alto Menlo Park Mountain View Hayward Redwood City Santa Clara 4 43.69 44.46 46.47 34.63 33.37 19.80 (Winter median) 7 67.18 63.03 65.43 53.68 45.20 34.65 (Annual median) 9 87.24 75.43 78.07 66.38 53.09 44.55 (Summer median) 14 137.39 107.95 119.47 98.13 73.81 69.30 25 247.72 180.33 229.94 206.08 119.91 123.75 * All comparisons use the 5/8” meter size. SECTION 5: UTILITY FINANCIAL PROJECTIONS SECTION 5A: LOAD FORECAST Figure 3 shows 40 years of water consumption history. Average water use has trended downward over time even as Palo Alto’s population has grown. Significant water use reductions over the 40-year history were in response to requests to reduce water use in the 1976-77 and 1988-92 drought periods. During these periods, customers invested in efficient equipment and modified behavior to achieve the water reduction goals. More recently, water sales decreased substantially during the 2007-2009 recession and during the current drought. Water use is down by similar amounts among both commercial and residential customers. Both summertime and wintertime use have decreased for all customer classes. 2 The City’s water rate schedules allow for drought surcharges to be activated by Council at Level One (10%-15% water use reduction level), Level Two (20%), or Level Three (25%) WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 14 | P a g e Figure 3: Historical Water Consumption Figure 4 shows the forecast of water consumption through FY 2027, as denoted by the dotted line. Figure 4: Forecast Water Consumption California has until recently been experiencing drought conditions, and the State had mandated a 24% water use restriction for Palo Alto up until May 2016. Customers continue to conserve, but water usage has been increasing. Based on patterns experienced in previous droughts and in recognition of continued state-level calls for conservation, this forecast assumes consumption will only return to 50% of its pre-drought levels, then resume with the previous trend of decreasing usage over time. WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 15 | P a g e SECTION 5B: FY 2012 TO FY 2016 COST AND REVENUE TRENDS Figure 5 and the tables in Appendix A: Water Utility Financial Forecast Detail show how costs have changed during the last five years as well as how they are projected to change over the next decade. The annual expenses for the water utility rose substantially between 2012 and 2016. The increases were primarily related to water purchase costs, which increased 18% from $14.9 million in FY 2012 to $17.6 million in FY 2016. A more in-depth discussion of water purchase costs will be found in Section 6A: Water Purchase Costs. Operations cost increased by about 3% annually, while CIP costs stayed relatively flat, except in FY 2013 when water main replacement projects were delayed to permit completion of a backlog of projects budgeted in prior years. Figure 5: Water Utility Expenses, Revenues, and Rate Changes: Actual Costs through FY 2016 and Projections through FY 2027 Actual Projected WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 16 | P a g e SECTION 5C: FY 2016 RESULTS Forecasted revenues for FY 2016 were only slightly lower than projected ($39.4 million vs. $39.6 million) due to customers conserving more than requested during the drought. Savings in CIP spending as well as operations and maintenance expenses were the main drivers. Table 11 summarizes the variances from forecast. Table 11: FY 2016, Actual Results vs. Financial Plan Forecast Net Cost/ (Benefit) Type of change Lower sales revenues $175,000 Revenue decrease Capital improvement costs lower than expected ($1,957,000) Cost savings Admin and general costs lower than expected ($715,000) Cost savings Operations and maintenance costs lower than expected (852,000) Cost savings Net Cost / (Benefit) of Variances ($3,349,000) SECTION 5D: FY 2017 PROJECTIONS The most notable change from the FY 2017 budget identified at this time is the deferral of Water Main Replacement Project 27. Originally budgeted at $6.2 million, this project is now anticipated to start in FY 2019. Also deferred to FY 2019 will be the design phase of Project 28, budgeted at $585,000. Table 12 summarizes the changes from last year’s forecast. Table 12: FY 2016 Change in Projected Results, 2016 Forecast vs 2017 Forecast Net Cost/ (Benefit) Type of Change Higher purchase costs $343,000 Cost increase Higher sales and misc. revenues (interest income, fees) ($327,000) Revenue increase Capital project deferments ($6,106,000) Cost decrease Higher Operations budgets $536,000 Cost increase Net Cost / (Benefit) of Variances ($5,553,000) SECTION 5E: FY 2018 – FY 2027 PROJECTIONS As can be seen in Figure 5 above, costs for the Water Utility are not projected to change significantly through the rest of the forecast period. Water supply costs are the largest component, but generally projected to grow steadily by two to three percent over the coming years. Operations and capital investment costs are also expected to increase at the same rate of inflation used in the City’s long-term financial plans (2.5% to 3.0% per year), though there is still uncertainty with regard to the utility’s future costs for main replacement. See Section 6: Details and Assumptions for more detail on the costs that make up these projections, as well as the various assumptions underlying the projections. As shown in Figure 5, above, revenues are currently below normal year expenses. Revenues match expenses in FY 2017 and FY 2018 due to delays in water main replacement projects, WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 17 | P a g e leading to much lower annual CIP spending in those years. As main replacement resumes, revenues are projected to be below expenses in the future and will require annual rate increases of around 6% per year through FY 2023 to bring revenues up to match annual expenses. This forecast assumes the use of the Rate Stabilization Reserve to spread the increases over multiple years. Reserves trends based on these revenue projections are shown in Figure 6 below. The Rate Stabilization Reserve is projected to have a zero balance by the end of FY 2017, and the CIP Reserve is projected to decrease by $2.7 million by the end of FY 2019. Assuming these increases in revenue, the Operations Reserve, the main contingency reserve, is expected to remain above the minimum reserve level and will be adequate to meet all identified risks, as discussed in Section 5F: Risk Assessment and Reserves Adequacy. These projections assume that drought restrictions are not re-imposed by the State. The forecast also assumes that water main projects can be resized such that costs do not increase by more than inflation. Figure 6: Water Utility Reserves Actual Reserve Levels for FY 2016 and Projections through FY 2027 WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 18 | P a g e SECTION 5F: RISK ASSESSMENT AND RESERVES ADEQUACY The Water Utility currently has one contingency reserve, the Operations Reserve, and this Financial Plan maintains reserves within the approved reserve maximum and minimum guidelines throughout the forecast period, as shown in Figure 7. Reserve levels also exceed the short term risk assessment for the utility. Figure 7: Operations Reserve Adequacy Table 13 summarizes the risk assessment calculation for the Water Utility through FY 2022. The same methodology is used for FY 2023 through FY 2027 as well. The risk assessment includes the revenue shortfall that could accrue due to: 1. Lower than forecasted sales revenue; and 2. An increase of 10% of planned system improvement CIP expenditures for the budget year. WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 19 | P a g e Table 13: Water Risk Assessment ($000) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total non-commodity revenue $18,406 $18,239 $19,829 $21,415 $23,129 Max. revenue variance, previous ten years 13% 13% 13% 13% 13% Risk of revenue loss $1,819 $1,802 $1,959 $2,116 $2,285 CIP Budget $4,110 $4,082 $10,314 $10,067 $10,364 CIP Contingency @10% $411 $408 $1,031 $1,007 $1,036 Total Risk Assessment value $2,230 $2,210 $2,991 $3,123 $3,322 SECTION 5G: ALTERNATE SCENARIOS At its February 2017 meeting, staff presented an earlier scenario with a 6% rate increase in FY 2018 followed by 6% rate increases in outer years. However, with the Operations reserve projected to be above the target level and well within the guideline levels adopted by Council, staff feels that a lower rate increase would be feasible, and is only proposing to increase City retail rates to match the increase in SFPUC wholesale water rates. SECTION 5H: LONG-TERM OUTLOOK CPAU has put its Water Utility on strong footing by investing in its distribution system infrastructure and emergency water facilities over the last 20 years. The Water System Master Plan, recently completed and under review, will give CPAU a better picture of the long-term outlook for its infrastructure and will result in a plan for an appropriate schedule for infrastructure replacement and upgrades. In addition, CPAU’s water supplier, the SFPUC, has replaced and seismically strengthened its water transmission infrastructure, which will benefit Palo Alto and all Hetch Hetchy customers over the long term. The opportunities for CPAU’s Water Utility over the long term may be in alternative water supplies such as recycled water, groundwater, and water from the Santa Clara Valley Water District. These alternatives have been analyzed in the past, and will be analyzed again in an upcoming update to the Water Integrated Resource Plan. Some of these alternatives may provide cost savings or increased drought protection. Climate change may begin to present challenges for the Water Utility over the next 20 to 40 years. Availability of water from SFPUC’s Regional Water System may change with changing seasonal precipitation patterns. Water consumption patterns may change. Consumption could increase due to drier weather or decrease as customers become even more focused on water conservation. Droughts may become more frequent. The risk of wildfire in the foothills could increase, possibly threatening utility infrastructure or placing greater demands on it. Sea level rise could result in greater exposure of utility infrastructure to saltwater intrusion or the need to protect infrastructure from inundation, possibly resulting in higher maintenance and replacement costs. It could also affect the groundwater aquifer that the utility relies on in emergencies. Any of these could result in increases to the costs of operating the Water Utility. As part of the Sustainability/Climate Action Plan, CPAU is currently working on a Climate Change Adaptation Roadmap that will begin to assess some of these risks. WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 20 | P a g e SECTION 6: DETAILS AND ASSUMPTIONS SECTION 6A: WATER PURCHASE COSTS CPAU purchases all of the potable water supplies from the SFPUC, which owns and operates the Hetch Hetchy Regional Water System. CPAU is one of several agencies that purchase water from the SFPUC, all of whom are members of the Bay Area Water Supply and Conservation Agency (BAWSCA). Palo Alto uses roughly 7% of the water delivered by the SFPUC to BAWSCA member agencies. The Hetch Hetchy Regional Water System begins with a system of reservoirs and tunnels in the high Sierra in Yosemite County and is transported by a gravity-fed pipeline to the Bay Area. Currently, the SFPUC is in the midst of a $4.8 billion bond-financed capital improvement program (the Water System Improvement Program, or WSIP) to seismically retrofit the facilities that transport water to the Bay Area. As of December 2016, nearly 60% of the program (by dollar value) had been completed, while 40% was under construction.3 This has resulted in large increases in the annual debt service costs assigned to wholesale customers like Palo Alto. The wholesale customer debt service share of the WSIP is increasing from $53 million in FY 2010 to over $200 million in FY 2020. As a result, the SFPUC’s wholesale water rate has already increased from $1.43 per CCF in FY 2009 to $4.10 per CCF in FY 2017, and is forecasted to increase to over $5.00 per CCF by FY 2025. Figure 8 shows the SFPUC’s actual wholesale water rate since FY 2009 and a projection through FY 2027. Note that the wholesale water rate decreased in FY 2014, but the apparent rate decrease is due to a part of the debt being directly paid by the BAWSCA agencies. This cost is paid in addition to the wholesale water rate and adds about $0.35 to $0.45 per CCF to the wholesale rate. The SFPUC’s water rate projections show a less steeply increasing rate trajectory after all of the debt for the WSIP has been issued. Parts of SFPUC’s system not included in the WSIP also may need rehabilitation. Some of these projects are already included in the SFPUC’s rate projections, but the SFPUC is conducting condition assessments of other “up-country” facilities, located in the Sierras in the coming years. If the these assessments identify other facilities that need replacement, it may result in additional rate increases beyond FY 2020 as new debt is issued to finance the projects. In January 2016, the SFPUC provided an early estimate for FY 2018 wholesale water rates of $4.37 per CCF. Staff has yet to receive a new estimate, but there is much uncertainty surrounding continued lower water usage by the BAWSCA agencies. While drought restrictions ended in May 2016, customers’ behavior changes and wet weather may keep water usage low. SFPUC’s rates will invariably need to increase since its costs are almost entirely fixed with no relation to the quantity of water that delivered by the system. As shown in Figure 8, this year’s projection of SFPUC wholesale rates has increased from the previous year’s projection. As the drought ostensibly ended in FY 2017 and sales have started 3 Second Quarter FY 2017 WSIP Regional Quarterly Report, http://www.sfwater.org/index.aspx?page=307 WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 21 | P a g e increasing, rate projections are projected to level out. However, if snow and rain do not materialize in future years, current calls for restricted usage may continue or even be increased. Figure 8: Historical and Projected SFPUC Wholesale Water Rate SECTION 6B: OPERATIONS CPAU’s Water Utility operations include the following activities:  Administration, a category that includes charges allocated to the Water Utility for administrative services provided by the General Fund and for Utilities Department administration, as well as debt service and other transfers. Additional detail on Water Utility debt service is provided in Section 6D: Debt Service  Customer Service  Engineering work for maintenance activities (as opposed to capital activities)  Operations and Maintenance of the distribution system; and  Resource Management Appendix D: Description of Water Utility Operational Activities includes detailed descriptions of the work associated with each of these activities. From FY 2012 to FY 2016 Operations costs (excluding debt service, rent, and transfers) increased 3.5% per year on average (see Figure 9). The increases were driven by allocated charges, which increased by 6% per year on average and increases in other Operations costs, which increased by roughly 4% per year. Debt service costs increased by $2.4 million per year as a result of a bond issued to finance the Emergency Water Supply and Storage Project. Transfers WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 22 | P a g e have varied from year to year, but are expected to remain relatively low and stable through the forecast period. In FY 2017 Operations costs are projected to increase by $1 million for a capital lease of emergency generators for various wells and pump stations. This is a new ongoing cost. Aside from that, only inflationary increases are projected for Operations costs. Underlying these projections are assumptions for salary and benefit costs, consumer price index, and other cost projections that match the City’s long-range financial forecast. Figure 9: Historical and Projected Operational Costs SECTION 6C: CAPITAL IMPROVEMENT PROGRAM (CIP) The Water Utility’s CIP consists of the following types of projects:  Customer connections, which represents the cost when the Water Utility installs new services or upgrades existing services at a customer’s request in response to development or redevelopment. CPAU charges a fee to these customers to cover the cost of these projects.  Ongoing projects, which represent the cost of replacing aging and under-recording meters and degraded boxes and covers, minor replacements of various types of distribution system equipment, and the cost of capitalized tools and equipment. Actual Regio nal Water Syste m Projected WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 23 | P a g e  One time projects, or large, non-recurring replacement of system assets (such as reservoir rehabilitation)  Water main replacement, which represents the ongoing replacement of aging water mains, and sometimes the services associated with those mains. Table 14 shows the FY 2017 projected budget and the five year CIP spending plan, although these figures are preliminary pending budget discussions starting in May. The ‘committed’ column represents funds committed to contracts for which work has not yet been completed or invoices paid. Table 14: Budgeted Water Utility CIP Spending ($000) The water main replacement program funds the replacement of deteriorating water mains. The water system consists of over 236 miles of mains, approximately 2000 fire hydrants, and over 20,000 metered service connections spanning 9 pressure zones over a 26 square mile service area. CPAU utilizes an asset management database in conjunction with hydraulic modeling software to prioritize capital improvements. Mains are selected by researching the maintenance history of the system and identifying those that are undersized, corroded, and subject to recurring breaks. CPAU uses a scoring system based on criticality in order to prioritize which mains to replace first, and coordinates with the Public Works street maintenance program to avoid cutting into newly repaved streets. CPAU replaces approximately 3 miles of main per year, or 1.3% of the system. Costs for the water main replacement program are increasing for a variety of reasons:  Fire Code regulations now mandate fire sprinklers for new residential units. To accommodate increased fire flows, new main replacement projects require larger diameter pipe.  CPAU has switched to high-density polyethylene (HDPE) for its mains. Installation costs for this material are slightly higher, though lifecycle costs are lower, and the material performs better. Joints in distribution mains are the most likely place for failure, and sections of HDPE pipe can be fused together rather than connected with fittings. In the long run, this will reduce losses and maintenance costs.  To take full advantage of HDPE’s fusibility, CPAU is now replacing the services along with the water mains with new HDPE services. In the past, the existing services were reconnected, regardless of the material. This new practice costs more in the short run, but will provide long term benefits.  Lastly, costs have escalated after the recession. WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 24 | P a g e These factors have created some uncertainty in future water main replacement costs. If the cost of water main replacement continues at its current levels, water main replacement budgets will need to be increased by $1M to $2M per year to keep up the current pace of main replacement. However, CPAU is nearing the end of a long term water main replacement program initiated in 1993 to replace the oldest and most degraded parts of the system. Roughly 25% of the system has been replaced, and the rate of water leaks has decreased 50%. CPAU initiated a master planning process in FY 2015 to evaluate the current state of the distribution system and determine the necessary rate of main replacement in future years, and it was completed in 2016. Currently the utility replaces about 1.3% of the system each year, which is an 80-year replacement cycle. Increases in CIP cost are a partial reason for the projected two year delay in projects. The most recent project, when put out for bid, resulted in very few contractors competing, and project bids were larger than budgeted. Staff will redesign this and future projects into smaller segments to keep budgets lower, while not compromising on overall system integrity. The other reason for delay is the University Avenue Business District project, and getting coordination amongst all departments is taking more time than expected. Finally, there has been an ongoing issue with keeping and maintaining qualified staff to design and work on projects. One project not included in this forecast is the seismic strengthening of a large water transmission line in the foothills. Staff has engaged a consultant to investigate alternatives for this project. The consultant is analyzing an alternative that involves installing a valve and hose system that could be used to bypass breaks in the line while they are repaired after an earthquake. This is a relatively low cost alternative that would not substantially affect the financial forecast. The study is not finalized yet, however, and if it is determined that the entire pipeline needs to be replaced, it could cost between $15 million and $20 million, which would likely require bond financing and would substantially affect the financial forecast. Ongoing Projects and Customer Connections are projected to cost approximately $2.5 million in FY 2018 and increase by 3.5% per year through the end of the forecast period. Actual expenses for these projects fluctuate annually depending on how many defective meters are discovered and replaced during routine maintenance, as well as how much development and redevelopment is going on that prompts the replacement or upgrade of water services. It is worth noting that property owners pay a fee for water service replacement or expansion during redevelopment, so when the number of projects go up (meaning higher costs for this activity), so does fee revenue. Aside from customer connections, the CIP plan for FY 2017 to FY 2022 is funded by utility rates and capacity fees. The details of the plan are shown in Appendix B: Water Utility Capital Improvement Program (CIP) Detail. SECTION 6D: DEBT SERVICE The Water Utility’s annual debt service is roughly $3.2 million per year. This is related to two bond issuances, one requiring payments through 2026, the other through 2035. CPAU is in compliance with all covenants on both bonds. WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 25 | P a g e The first bond is the 2009 Water Revenue Bond, Series A, issued for $35 million to finance construction of the Emergency Water Supply and Storage project (the El Camino Reservoir, new wells, rehabilitation of existing wells and tanks, etc.) and to be retired by 2035. As part of the ‘Build America’ bond program, there is an interest payment subsidy from the Federal Government of 35%. There is always the possibility that the federal government will choose to stop payment on this subsidy. The automatic federal spending cuts under the Budget Control Act (BCA) of 2011 have already reduced the subsidy by $50,000 per year, and if planned cuts through 2021 proceed without amendment, staff estimates that the subsidy would be reduced by over $200,000 per year by 2021. The Bipartisan Budget Act of 2013, which relieved some of the discretionary spending cuts in the 2011 BCA, did not affect automatic cuts to the subsidy, and actually extended the automatic cuts through 2023. The second bond issuance is the 2011 Utility Revenue Refunding Bond, Series A, which is to be retired in 2026. This $17.2 million issuance refinanced an earlier Water and Gas Utility bond issuance, the 2002 Utility Revenue Bonds, Series A, which was issued to finance various capital improvements for both systems. The Water Utility’s share of the issuance was roughly $7.8 million. The cost of debt service for the Water Utility’s share of these bond issuances for the financial forecast period is shown in Table 15: Table 15: Water Utility Debt Service ($000) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 2009 Water Revenue Bonds, Series A (net of grants) 2,012 2,031 2,046 2,064 2,079 2,101 2,151 2,151 2011 Utility Revenue Bonds, Series A 657 656 654 656 657 657 657 658 Both the 2009 and 2011 Bonds include the following covenants: 1) net revenues plus Available Reserves shall at least equal 125% of the maximum annual debt service, and 2) Available Reserves shall be at least 5 times the maximum annual debt service. Note that “Available Reserves,” as defined for both bonds, include the reserves for the Gas and Electric systems, not just the Water system. This Financial Plan maintains compliance with these covenants throughout the forecast period, as shown in Appendix A: Water Utility Financial Forecast Detail. The net revenues (but not the reserves) of the Water Utility are also pledged for one other bond as shown in Table 16 below, even though the Water Utility is not responsible for the debt service payments. The Water Utility’s reserves or net revenues would only be called upon if the responsible utilities are unable to make their debt service payments. Staff does not currently foresee this occurring. Requirements of the California Constitution require that any amounts advanced from one utility to pay debt service for another utility must be repaid by the borrowing fund. Table 16: Other Issuances Secured by the Water Utility’s Revenues or Reserves Bond Issuance Responsible Utilities Annual Debt Service ($000) Secured by Water Utility’s: Net Revenues Reserves 1995 Series A Utility Revenue Bonds Storm Drain $680 Yes No WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 26 | P a g e SECTION 6E: OTHER REVENUES The Water Utility receives most of its revenues from sales of water. The next largest source is connection and capacity fees, which in FY 2016 represented 51% of revenue from sources other than water sales. The remainder consisted of a variety of miscellaneous charges, transfers and interest income. Revenues from connection and capacity fees have more than doubled since FY 2009. Connection fees are charged to new developments that need new or replacement service connections, while capacity fees are charged to development that put additional demands on the water distribution system. Revenue from these sources decreased slightly during the recession, but has increased substantially since then. Staff is forecasting lower revenue from these sources in subsequent years, but has increased connection fees that are expected to offset these reductions to some extent. Other revenue sources are projected to stay stable through the forecast period, though interest income always fluctuates depending on changes in interest rates. Some uncertainty also exists related to the Federal government’s commitment to continuing to pay the interest subsidy on the Build America Bonds. SECTION 6F: SALES REVENUES Sales revenue projections are based on the load forecast in Section 5A: Load Forecast and the projected rate changes shown in Figure 5. Except where stated otherwise, these load forecasts are based on normal precipitation. Precipitation can vary substantially, however, even in non- drought years, and this can affect revenues substantially. In dry years customers use more water, increasing revenues, and in wet years they use less. These variations happen in the winter, since summers have virtually no local precipitation regardless of whether it is a dry or wet year. The variations are most likely related to winter irrigation demand. SECTION 7: COMMUNICATIONS PLAN In FY 2018, communications will continue to focus on water utility rate increases, including the reasons why and how rates may change contingent upon continued drought conditions. The City will also communicate how infrastructure costs and rising rates from our wholesale water supplier, the San Francisco Public Utilities Commission, increases CPAU costs and must be recovered through rate increases. Rates communications will include a substantial update to information on a webpage dedicated to Utilities rates, “breaking news” on the Utility home webpage, discussion in the Proposition 218 rate adjustment notice, bill inserts, print ads, videos for web and television, social media posts and frequent educational updates to internal and external stakeholders (customer service, marketing, City Manager’s Office, UAC, City Council, business and residential customers). Other communications vehicles will include financial plans, presentations to UAC, Finance Committee, City Council and any media coverage as a result of the rate increases. CPAU will continue its outreach about drought conditions and importance of water use efficiency, tying in the message that although rates are increasing, efficient usage WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 27 | P a g e should mean that a customer should not see a significant increase in water utility costs on their bills. Water conservation outreach will include bill inserts, web updates, email newsletters, videos for the web and television, presentations to customer groups and the use of social media. To keep customers apprised of the status and accomplishments of CIP projects, a network of project web pages are maintained. Traffic is driven to the website via ads in publications, newspaper inserts, and through the comprehensive portfolio of outreach strategies as outlined above. Safety topics are also emphasized year-round. For all utility outreach, while print materials and website pages still feature prominently, CPAU is placing more emphasis on digital advertising content, direct mail, community safety/emergency preparation events and presentations. WATER UTILITY FINANCIAL PLAN F e b r u a r y 2 0 1 6 28 | P a g e APPENDICES Appendix A: Water Utility Financial Forecast Detail Appendix B: Water Utility Capital Improvement Program (CIP) Detail Appendix C: Water Utility Reserves Management Practices Appendix D: Description of Water Utility Operational Activities Appendix E: Sample of Water Utility Outreach Communications APPENDIX A: WATER UTILITY FINANCIAL FORECAST DETAIL 1 FISCAL YEAR FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 2 3 WATER SUPPLY 4 Purchases 5,538,305 5,532,947 5,507,153 4,671,433 4,127,085 4,164,524 4,388,840 4,618,793 4,548,794 4,477,618 4,407,222 4,342,411 4,307,346 4,274,401 4,242,367 4,274,975 5 Sales 5,062,873 5,097,392 5,047,148 4,433,016 3,858,825 3,852,185 4,037,731 4,318,572 4,253,123 4,186,573 4,120,753 4,060,155 4,027,369 3,996,565 3,966,613 3,997,101 6 7 BILL AND RATE CHANGES 8 Variable Charge (Supply)38%11%-16%25%22%9%7%2%2%2%2%2%2%2%2%2% 9 Variable Charge (Distribution)-12%17%30%-16%10%5%0%9%9%9%9%8%2%1%1%0% 10 Service Charge (Distribution)72%75%9%0%-10%3%0%7%8%8%8%7%1%1%1%1% 11 Change in System Average Rate 12%22%8%0%11%7%3%6%6%6%6%6%2%2%2%1% 12 Change in Average Residential Bill 12%21%7%-1%17%4%-3%5%5%5%5%4%1%1%1%1% 13 14 STARTING RESERVES 15 Reappropriations (Non-CIP)20,000 - - - - - - - - - - - - - - - 16 Commitments (Non-CIP)765,000 714,000 2,000 347,000 347,000 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 17 Restricted for Debt Service 3,348,000 3,225,000 3,225,000 3,331,000 3,316,000 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 18 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 1,000,000 - - - - - - - - - - - - 19 Capital Reserve - - - - 4,000,000 2,726,096 2,726,096 2,726,096 2,726,096 - - - - - - - 20 Rate Stabilization Reserve 10,639,000 7,996,000 17,272,000 20,133,000 6,567,000 1,877,437 - - - - - - - - - - 21 Operations Reserve - - - - 11,663,836 14,606,828 12,734,948 13,741,252 11,719,450 11,584,505 10,055,718 10,036,283 11,372,030 12,259,805 12,625,012 12,452,508 22 Unassigned - - - - - - 4,645,111 2,536,339 - - - - - - - - 23 TOTAL STARTING RESERVES 15,772,000 12,935,000 21,499,000 24,811,000 25,893,836 22,686,828 23,582,622 22,480,154 17,922,013 15,060,972 13,532,185 13,512,750 14,848,497 15,736,272 16,101,479 15,928,975 24 25 REVENUES 26 Net Sales 30,673,882 36,647,924 39,029,262 33,654,549 36,136,644 38,472,811 38,957,254 43,554,523 45,527,612 47,631,527 49,893,912 52,045,952 52,530,594 52,972,178 53,425,127 54,321,702 27 Other Revenues and Transfers In 5,892,133 6,811,461 4,053,920 7,504,848 3,258,936 3,376,354 3,433,864 3,492,074 3,550,893 3,611,902 3,677,134 3,743,736 3,831,586 3,921,772 4,014,356 4,109,403 28 TOTAL REVENUES 36,566,015 43,459,385 43,083,182 41,159,397 39,395,579 41,849,165 42,391,118 47,046,597 49,078,505 51,243,429 53,571,045 55,789,688 56,362,180 56,893,950 57,439,483 58,431,104 29 30 EXPENSES 31 Water Purchases 14,889,399 16,605,351 15,705,288 15,669,935 17,626,020 19,242,650 21,347,331 22,755,908 22,849,411 22,932,958 23,015,268 23,119,511 23,365,972 23,624,549 23,889,660 24,494,388 32 Operating Expenses 33 Administration 34 Allocated Charges 2,003,116 2,422,880 2,366,077 2,342,985 2,953,291 2,278,910 2,336,257 2,395,035 2,455,296 2,516,847 2,579,804 2,644,346 2,710,515 2,778,341 2,847,864 2,919,126 35 Rent 2,156,887 1,911,963 2,192,454 2,249,457 1,803,087 2,876,500 2,962,795 3,051,679 3,143,229 3,237,526 3,334,652 3,434,691 3,537,732 3,643,864 3,753,180 3,865,775 36 Debt Service 3,385,986 3,219,165 3,220,208 3,218,869 3,222,606 3,219,316 3,222,669 3,220,858 3,220,638 3,222,843 3,223,563 3,224,553 3,224,553 3,224,553 3,224,553 3,224,553 37 Transfers and Other Adjustments 301,963 2,241,793 335,808 63,612 (74,782) 383,630 391,302 399,129 407,111 415,253 423,558 432,030 432,030 432,030 432,030 432,030 38 Subtotal, Administration 7,847,952 9,795,801 8,114,546 7,874,923 7,904,202 8,758,356 8,913,023 9,066,700 9,226,274 9,392,469 9,561,576 9,735,619 9,904,830 10,078,787 10,257,626 10,441,484 39 Resource Management 552,972 557,910 570,040 488,331 592,744 955,380 987,746 1,020,939 1,055,358 1,085,650 1,113,619 1,142,552 1,172,547 1,203,329 1,234,919 1,267,339 40 Operations and Mtc 4,900,606 4,944,064 4,986,274 5,283,426 5,038,570 5,835,064 6,037,842 6,245,861 6,461,794 6,649,627 6,821,437 6,999,319 7,183,933 7,373,416 7,567,897 7,767,508 41 Engineering (Operating)301,278 338,659 381,502 358,128 282,472 372,459 385,617 399,118 413,142 425,250 436,259 447,663 459,507 471,664 484,143 496,952 42 Customer Service 1,544,608 1,584,759 1,677,926 1,821,447 2,076,559 2,106,862 2,181,487 2,258,058 2,337,605 2,406,207 2,468,516 2,533,069 2,600,120 2,668,946 2,739,594 2,812,112 43 Allowance for Unspent Budget - - - - - (427,532) (441,610) (456,050) (471,013) (484,354) (496,795) (509,652) (522,968) (536,631) (550,651) (565,038) 44 Subtotal, Operating Expenses 15,147,415 17,221,192 15,730,288 15,826,254 15,894,546 17,600,589 18,064,105 18,534,625 19,023,161 19,474,849 19,904,612 20,348,569 20,797,968 21,259,512 21,733,529 22,220,358 45 Capital Program Contribution 9,366,201 1,068,841 8,335,605 8,580,372 9,082,021 4,110,131 4,082,150 10,314,204 10,066,974 10,364,408 10,670,600 10,985,862 11,310,465 11,644,682 11,988,797 12,343,106 46 TOTAL EXPENSES 39,403,015 34,895,385 39,771,182 40,076,561 42,602,588 40,953,371 43,493,586 51,604,738 51,939,546 52,772,216 53,590,481 54,453,941 55,474,405 56,528,743 57,611,987 59,057,851 47 9.04 11.04 48 ENDING RESERVES 49 Reappropriations (Non-CIP)- - - - - - - - - - - - - - - - 50 Commitments (Non-CIP)714,000 2,000 347,000 347,000 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 51 Restricted for Debt Service 3,225,000 3,225,000 3,331,000 3,316,000 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 52 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 - - - - - - - - - - - - - 53 Capital Reserve - - - 4,000,000 2,726,096 2,726,096 2,726,096 2,726,096 - - - - - - - - 54 Rate Stabilization Reserve 7,996,000 17,272,000 20,133,000 6,567,000 1,877,437 - - - - - - - - - - - 55 Operations Reserve - - - 11,663,836 14,606,828 12,734,948 13,741,252 11,719,450 11,584,505 10,055,718 10,036,283 11,372,030 12,259,805 12,625,012 12,452,508 11,825,761 56 Unassigned - - - - - 4,645,111 2,536,339 - - - - - - - - - 57 TOTAL ENDING RESERVES 12,935,000 21,499,000 24,811,000 25,893,836 22,686,828 23,582,622 22,480,154 17,922,013 15,060,972 13,532,185 13,512,750 14,848,497 15,736,272 16,101,479 15,928,975 15,302,228 58 59 OPERATIONS RESERVE 60 Min (60 days of non-capital expenses)- - - 5,230,611 5,447,741 6,320,551 6,805,571 7,121,003 7,223,351 7,318,139 7,409,255 7,506,449 7,620,837 7,739,213 7,860,713 8,040,147 61 Target (90 days of non-capital expenses)- - - 9,395,240 8,849,765 9,527,750 10,273,411 10,734,869 10,891,793 11,037,461 11,177,725 11,327,238 11,511,321 11,701,700 11,897,086 12,179,700 62 Max (120 days of non-capital expenses)- - - 13,559,870 12,251,790 12,734,948 13,741,252 14,348,735 14,560,236 14,756,784 14,946,195 15,148,027 15,401,806 15,664,187 15,933,458 16,319,253 63 Risk Assessment Value 2,481,768 2,677,436 2,229,786 2,210,426 2,990,773 3,122,798 3,321,829 3,535,280 3,739,581 3,798,452 3,858,547 3,919,900 3,982,541 64 65 DEBT SERVICE COVERAGE RATIO 66 Net Revenues (125% of Debt Service)787%951%876%878%940%1044%1123%1182%1200%1216%1231%1248%1270%1292%1315%1349% 67 Available Reserves (5x Debt Service)*2.7 5.7 6.6 6.9 6.0 6.2 5.9 4.5 3.6 3.1 3.1 3.5 3.8 3.9 3.9 3.7 *For the purposes of debt covenants, the unrestricted reserves of other utilities may be counted toward the available reserves for meeting this measure. A ratio below 5x means that this utility is relying on the reserves of other utilities to meet its debt covenants. Appendix A (continued) 1 FISCAL YEAR FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 2 3 REVENUES 4 Net Sales 84%84%91%82%92%92%92%93%93%93%93%93%93%93%93%93% 5 Other Revenues and Transfers In 16%16%9%18%8%8%8%7%7%7%7%7%7%7%7%7% 6 TOTAL REVENUES 100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100% 7 8 EXPENSES 9 Water Purchases 38%48%39%39%41%47%49%44%44%43%43%42%42%42%41%41% 10 Operating Expenses 11 Administration 12 Allocated Charges 5%7%6%6%7%6%5%5%5%5%5%5%5%5%5%5% 13 Rent 5%5%6%6%4%7%7%6%6%6%6%6%6%6%7%7% 14 Debt Service 9%9%8%8%8%8%7%6%6%6%6%6%6%6%6%5% 15 Transfers and Other Adjustments 1%6%1%0%0%1%1%1%1%1%1%1%1%1%1%1% 16 Subtotal, Administration 20%28%20%20%19%21%20%18%18%18%18%18%18%18%18%18% 17 Resource Management 1%2%1%1%1%2%2%2%2%2%2%2%2%2%2%2% 18 Operations and Mtc 12%14%13%13%12%14%14%12%12%13%13%13%13%13%13%13% 19 Engineering (Operating)1%1%1%1%1%1%1%1%1%1%1%1%1%1%1%1% 20 Customer Service 4%5%4%5%5%5%5%4%5%5%5%5%5%5%5%5% 21 Allowance for Unspent Budget 0%0%0%0%0%-1%-1%-1%-1%-1%-1%-1%-1%-1%-1%-1% 22 Subtotal, Operating Expenses 38%49%40%39%37%43%42%36%37%37%37%37%37%38%38%38% 23 Capital Program Contribution 24%3%21%21%21%10%9%20%19%20%20%20%20%21%21%21% 24 TOTAL EXPENSES 100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100% 25 26 RISK ASSESSMENT DETAIL 27 Distribution Revenue Variance 1,623,731 1,769,234 1,818,772 1,802,211 1,959,352 2,116,101 2,285,389 2,468,220 2,640,995 2,667,405 2,694,079 2,721,020 2,748,230 28 10% CIP Program Contingency 858,037 908,202 411,013 408,215 1,031,420 1,006,697 1,036,441 1,067,060 1,098,586 1,131,047 1,164,468 1,198,880 1,234,311 29 Total Risk Asssessment Value 2,481,768 2,677,436 2,229,786 2,210,426 2,990,773 3,122,798 3,321,829 3,535,280 3,739,581 3,798,452 3,858,547 3,919,900 3,982,541 30 Projected Operations Reserve 11,663,836 14,606,828 12,734,948 13,741,252 11,719,450 11,584,505 10,055,718 10,036,283 11,372,030 12,259,805 12,625,012 12,452,508 11,825,761 31 Operations Reserve, % of Risk Value 470%546%571%622%392%371%303%284%304%323%327%318%297% 32 33 OPERATIONS RESERVE 34 Min (60 days of non-capital expenses)- - - 5,230,611 5,447,741 6,320,551 6,805,571 7,121,003 7,223,351 7,318,139 7,409,255 7,506,449 7,620,837 7,739,213 7,860,713 8,040,147 35 Target (90 days of non-capital expenses)- - - 9,395,240 8,849,765 9,527,750 10,273,411 10,734,869 10,891,793 11,037,461 11,177,725 11,327,238 11,511,321 11,701,700 11,897,086 12,179,700 36 Max (120 days of non-capital expenses)- - - 13,559,870 12,251,790 12,734,948 13,741,252 14,348,735 14,560,236 14,756,784 14,946,195 15,148,027 15,401,806 15,664,187 15,933,458 16,319,253 37 Risk Assessment Value 2,481,768 2,677,436 2,229,786 2,210,426 2,990,773 3,122,798 3,321,829 3,535,280 3,739,581 3,798,452 3,858,547 3,919,900 3,982,541 38 39 DEBT SERVICE COVERAGE RATIO 40 Net Revenues (125% of Debt Service)787%951%876%878%940%1044%1123%1182%1200%1216%1231%1248%1270%1292%1315%1349% 41 Available Reserves (5x Debt Service)*2.7 5.7 6.6 6.9 6.0 6.2 5.9 4.5 3.6 3.1 3.1 3.5 3.8 3.9 3.9 3.7 42 *For the purposes of debt covenants, the unrestricted reserves of other utilities may be counted toward the available reserves for meeting this measure. A ratio below 5x means that this utility is relying on the reserves of other utilities to meet its debt covenants. WATER UTILITY FINANCIAL PLAN J u n e 1 6 , 2 0 1 4 31 | P a g e APPENDIX B: WATER UTILITY CAPITAL IMPROVEMENT PROGRAM (CIP) DETAIL Project #Project Name Reappropriated / Carried Forward from Previous Years Current Year Funding Proposed Budget Amendments Spending, Current Year Remaining in CIP Reserve Fund Commitments FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 ONE TIME PROJECTS WS-07000 Regulation Station Imp.1,092,430 - (135,541) (136,529) 820,360 624,149 - - - - - WS-07001 Water Recycling Facilities 193,358 200,000 2,291 - 395,649 - - - - - - WS-08001 Water Reservoir Coating 1,919,605 - (304,403) (823,254) 791,948 1,088,707 - - - - - WS-09000 Seismic Water System 4,452,355 - (317,178) (431,985) 3,703,192 2,213,969 - - - - - WS-13003 GPS Equipment Upgrade - - - - - - - - - - - WS-13004 Asset Mgmt. Mobile Sys.- - - - - - - - - - - WS-13006 Meter Shop Renovations - - - - - - - - - - - WS-15004 Water System Master Plan 202,469 - (681) (358) 201,430 46,592 - - - - - WS-08002 Emergency Water Supply 601,701 - - - 601,701 330,493 - - - - - Subtotal, One-time Projects 8,461,919 200,000 (755,513) (1,392,126) 6,514,280 4,303,910 - - - - - WATER MAIN REPLACEMENT PROGRAM WS-20000 WMR - Project 32 - - - - - - - - - - - WS-11000 WMR-Project 25 1,165,085 - (725,386) (270,754) 168,945 - - - - - - WS-12001 WMR- Project 26 5,904,489 - (18,731) (51,224) 5,834,534 1 - - - - - WS-13001 WMR - Project 27 568,065 5,680,651 (6,206,216) (42,500) - - - 6,216,841 - - - WS-14001 WMR - Project 28 - 585,107 (585,107) - - - - 585,107 5,851,070 - - WS-15002 WMR - Project 29 - - - - - - - - 602,660 6,026,602 - WS-16001 WMR - Project 30 - - - - - - - - - 620,740 6,207,400 WS-19001 WMR - Project 31 - - - - - - - - - - 639,362 Subtotal, Water Main Replacement Prog.7,637,639 6,265,758 (7,535,440) (364,478) 6,003,479 1 - 6,801,948 6,453,730 6,647,342 6,846,762 WATER UTILITY FINANCIAL PLAN J u n e 1 6 , 2 0 1 4 32 | P a g e Appendix B: Water Utility Capital Improvement Program (CIP) Detail (Continued) Project #Project Name Reappropriated / Carried Forward from Previous Years Current Year Funding Budget Amendments Spending, Current Year Remaining in CIP Reserve Fund Commitments FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 ONGOING PROJECTS WS-80014 Services/Hydrants - 400,000 - (171,657) 228,343 50,533 412,000 424,360 437,091 450,204 463,710 WS-80015 Water Meters 252,092 565,000 - (26,213) 790,879 - 565,000 500,000 515,000 530,450 546,364 WS-02014 W-G-W Utility GIS Data 82,817 366,025 (0) (87,607) 361,235 295,211 402,628 442,890 456,177 469,862 483,958 WS-13002 Equipment/Tools 20,685 50,000 - - 70,685 - - - - - - WS-11003 Dist. Sys. Improvements 131,508 739,000 (602) (5,000) 864,906 163,985 247,000 254,000 261,620 269,469 277,553 WS-11004 Supply Sys. Improvements 95,884 239,000 (190) (73,156) 261,538 8,136 247,000 254,000 261,620 269,469 277,553 Subtotal, Ongoing Projects 582,986 2,359,025 (792) (363,633) 2,577,586 517,865 1,873,628 1,875,250 1,931,508 1,989,454 2,049,138 CUSTOMER CONNECTIONS (FEE FUNDED) WS-80013 Water System Extensions 18,736 690,000 - (320,117) 388,619 112,897 710,700 732,021 753,981 776,601 799,899 Subtotal, Customer Connections 18,736 690,000 - (320,117) 388,619 112,897 710,700 732,021 753,981 776,601 799,899 GRAND TOTAL 16,701,281 9,514,783 (8,291,745) (2,440,354)15,483,964 4,934,673 2,584,328 9,409,219 9,139,219 9,413,397 9,695,799 Funding Sources Connection/Capacity Fees 690,000 - 902,280 929,348 957,228 985,946 1,015,524 Other Utility Funds (Asset Mgmt, GIS Systems)244,109 - 268,418 295,260 304,118 313,242 322,640 Utility Rates 9,514,783 (8,291,745) 1,413,630 8,184,611 7,877,873 8,114,209 8,357,635 CIP-RELATED RESERVES DETAIL 6/30/2016 (Actual) 6/30/2017 (Unaudited) Reappropriations (excl. Bond Funded)10,529,905 10,549,291 Commitments (excl. Bond Funded)6,171,376 4,934,673 WATER UTILITY FINANCIAL PLAN J u n e 1 6 , 2 0 1 4 33 | P a g e APPENDIX C: WATER UTILITY RESERVES MANAGEMENT PRACTICES The following reserves management practices shall be used when developing the Water Utility Financial Plan: Section 1. Definitions a) “Financial Planning Period” – The Financial Planning Period is the range of future fiscal years covered by the Financial Plan. For example, for the Water Utility Financial Plan delivered in conjunction with the FY 2015 budget, FY 2015 to FY 2021 is the Financial Planning Period. b) “Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers to the Utility’s Unrestricted Net Assets. c) “Net Assets” - The Government Accounting Standards Board defines a Utility’s Net Assets as the difference between its assets and liabilities. d) “Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital assets (net of related debt) or restricted for debt service or other restricted purposes. Section 2. Reserves The Water Utility’s Fund Balance is reserved for the following purposes: a) For existing contracts, as described in Section 3 (Reserve for Commitments) b) For operating and capital budgets re-appropriated from previous years, as described in Section 4 (Reserve for Re-appropriations) c) For cash flow management and contingencies related to the Water Utility’s Capital Improvement Program (CIP), as described in Section 5 (CIP Reserve) d) For rate stabilization, as described in Section 6 (Rate Stabilization Reserve) e) For operating contingencies, as described in Section 7 (Operations Reserve) f) Any funds not included in the other reserves will be considered Unassigned Reserves and shall be returned to ratepayers or assigned a specific purpose as described in Section 8 (Unassigned Reserves). Section 3. Reserve for Commitments At the end of each fiscal year the Reserve for Commitments will be set to an amount equal to the total remaining spending authority for all contracts in force for the Water Utility at that time. Section 4. Reserve for Re-appropriations At the end of each fiscal year the Reserve for Re-appropriations will be set to an amount equal to the amount of all remaining capital and non-capital budgets, if any, that will be re- appropriated to the following fiscal year in accordance with Palo Alto Municipal Code Section 2.28.090. WATER UTILITY FINANCIAL PLAN J u n e 1 6 , 2 0 1 4 34 | P a g e Section 5. CIP Reserve The CIP Reserve is used to manage cash flow for capital projects and acts as a reserve for capital contingencies. Staff will manage the CIP Reserve according to the following practices: a) The following guideline levels are set forth for the CIP Reserve. These guideline levels are calculated for each fiscal year of the Financial Planning Period based on the levels of CIP expense budgeted for that year. Minimum Level 12 months of budgeted CIP expense Maximum Level 24 months of budgeted CIP expense b) Changes in Reserves: Staff is authorized to transfer funds between the CIP Reserve and the Reserve for Commitments when funds are added or removed from to that reserve as a result of a change in contractual commitments related to CIP projects. Any other additions to or withdrawals from the CIP reserve require Council action. c) Minimum Level: i) Funds held in the Reserve for Commitments may be counted as part of the CIP Reserve for the purpose of determining compliance with the CIP Reserve minimum guideline level. ii) If, at the end of any fiscal year, the minimum guideline is not met, staff shall present a plan to the City Council to replenish the reserve. The plan shall be delivered by the end of the following fiscal year, and shall, at a minimum, result in the reserve reaching its minimum level by the end of the next fiscal year. For example, if the CIP Reserve is below its minimum level at the end of FY 2017, staff must present a plan by June 30, 2018 to return the reserve to its minimum level by June 30, 2019. In addition, staff may present, and the Council may adopt, an alternative plan that takes longer than one year to replenish the reserve, or that does so in a shorter period of time. d) Maximum Level: If, at any time, the CIP Reserve reaches its maximum level, no funds may be added to this reserve. If there are funds in this reserve in excess of the maximum level staff must propose to transfer these funds to another reserve or return them to ratepayers in the next Financial Plan. Staff may also seek City Council to approve holding funds in this reserve in excess of the maximum level if they are held for a specific future purpose related to the CIP. Section 6. Rate Stabilization Reserve Funds may be added to the Rate Stabilization Reserve by action of the City Council and held to manage the trajectory of future year rate increases. Withdrawal of funds from the Rate Stabilization Reserve requires Council action. If there are funds in the Rate Stabilization Reserve at the end of any fiscal year, any subsequent Water Utility Financial Plan must result in the withdrawal of all funds from this Reserve by the end of the next Financial Planning Period. WATER UTILITY FINANCIAL PLAN J u n e 1 6 , 2 0 1 4 35 | P a g e Section 7. Operations Reserve The Operations Reserve is used to manage normal variations in costs and as a reserve for contingencies. Any portion of the Water Utility’s Fund Balance not included in the reserves described in Section 3-Section 6 above will be included in the Operations Reserve unless this reserve has reached its maximum level as set forth in Section 7(d) below. Staff will manage the Operations Reserve according to the following practices: a) The following guideline levels are set forth for the Operations Reserve. These guideline levels are calculated for each fiscal year of the Financial Planning Period based on the levels of Operations and Maintenance (O&M) and commodity expense forecasted for that year in the Financial Plan. Minimum Level 60 days of O&M and commodity expense Target Level 90 days of O&M and commodity expense Maximum Level 120 days of O&M and commodity expense b) Minimum Level: If, at the end of any fiscal year, the funds remaining in the Operations Reserve are lower than the minimum level set forth above, staff shall present a plan to the City Council to replenish the reserve. The plan shall be delivered within six months of the end of the fiscal year, and shall, at a minimum, result in the reserve reaching its minimum level by the end of the following fiscal year. For example, if the Operations Reserve is below its minimum level at the end of FY 2014, staff must present a plan by December 31, 2014 to return the reserve to its minimum level by June 30, 2015. In addition, staff may present, and the Council may adopt, an alternative plan that takes longer than one year to replenish the reserve. c) Target Level: If, at the end of any fiscal year, the Operations Reserve is higher or lower than the target level, any Financial Plan created for the Water Utility shall be designed to return the Operations Reserve to its target level within four years. d) Maximum Level: If, at any time, the Operations Reserve reaches its maximum level, no funds may be added to this reserve. Any further increase in the Water Utility’s Fund Balance shall be automatically included in the Unassigned Reserve described in Section 8, below. Section 8. Unassigned Reserve If the Operations Reserve reaches its maximum level, any further additions to the Water Utility’s Fund Balance will be held in the Unassigned Reserve. If there are any funds in the Unassigned Reserve at the end of any fiscal year, the next Financial Plan presented to the City Council must include a plan to assign them to a specific purpose or return them to the Water Utility ratepayers by the end of the first fiscal year of the next Financial Planning Period. For example, if there were funds in the Unassigned Reserves at the end of FY 2015, and the next Financial Planning Period is FY 2016 through FY 2021, the Financial Plan shall include a plan to return or assign any funds in the Unassigned Reserve by the end of FY 2016. Staff may present an alternative plan that retains these funds or returns them over a longer period of time. WATER UTILITY FINANCIAL PLAN J u n e 1 6 , 2 0 1 4 36 | P a g e APPENDIX D: DESCRIPTION OF WATER UTILITY OPERATIONAL ACTIVITIES This appendix describes the activities associated with the various operational activities referred to in Section 6B: Operations of this Financial Plan. Administration: Accounting, purchasing, legal, and other administrative functions provided by the City’s General Fund staff, as well as shared communications services, CPAU administrative overhead, and billing system maintenance costs. This category also includes Water Utility debt service and rent paid to the General Fund for the land associated with reservoirs and various other facilities. Customer Service: This category includes the Water Utility’s share of the call center, meter reading, collections, and billing support functions. Billing support encompasses staff time associated with bill investigations and quality control on certain aspects of the billing process. It does not include maintenance of the billing system itself, which is included in Administration. This category also includes CPAU’s key account representatives, who work with large commercial customers who have more complex requirements for their water services. Engineering (Operating): The Water Utility’s engineers focus primarily on the CIP, but a small portion of their time is spent assisting with distribution system maintenance. Operations and Maintenance: This category includes the costs of a variety of distribution system maintenance activities, including:  investigating reports of damaged mains or services and performing emergency repairs;  testing and operating valves;  monitoring water quality and reservoir levels;  monitoring the status of the different pressure zones;  flushing water at hydrants and other closed end points of the system;  building and replacing water services for new or redeveloped buildings; and  testing and replacing meters to ensure accurate sales metering. This category also includes a variety of functions the utility shares with other City utilities, including:  the Field Services team (which does field research of various customer service issues);  the Cathodic Protection team (which monitors and maintains the systems that prevent corrosion in metal tanks and reservoirs); and  the General Services team (which manages and maintains equipment, paves and restores streets after gas, water, or sewer main replacements, and provides welding services) Resource Management: This category includes water procurement, contract management, water resource planning, interaction with BAWSCA, the SFPUC, and the SCVWD, and tracking of legislation and regulation related to the water industry. J u n e 1 6 , 2 0 1 4 37 | P a g e APPENDIX E: SAMPLE OF WATER UTILITY OUTREACH COMMUNICATIONS Attachment C * NOT YET APPROVED * 170216 jb 6053919 Resolution No. _________ Resolution of the Council of the City of Palo Alto Increasing Water Rates by Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) and Repealing Resolution No. 9542 to Deactivate the Level 2 Drought Surcharges R E C I T A L S A. On January 17, 2014 the Governor of the State of California proclaimed a State of Emergency due to severe drought conditions. On April 1, 2015 the Governor issued an Executive Order proclaiming that severe drought conditions continued to exist, and ordering the State Water Resources Control Board to adopt regulations imposing mandatory water use restrictions on water suppliers to achieve a 20% reduction in statewide potable water use through February 28, 2016, or as continued or modified by the Governor. B. On May 5, 2015, the State Water Resources Control Board adopted regulations imposing upon Palo Alto a mandatory 24% reduction in potable water consumption from Jun 1, 2015 through February 28, 2016. This action by the Board triggered the City Council’s authority to activate one of the three drought surcharges available in its water rate schedules. C. On August 17, 2015, Council adopted Resolution 9542 which established that the Level 2 (20%) drought surcharges set forth on the City's schedule of water rates would be collected on all City of Palo Alto Utilities water customer bills as of September 1, 2015, and declared that the surcharge would remain in effect until rescinded or modified by the City Council. D. On May 9, 2016 Governor Brown issued an Executive Order calling for the State Water Resources Control Board to adjust emergency water conservation regulations through the end of January 2017, in recognition of the different water supply conditions across the state. The State Board subsequently revised its regulations allowing suppliers to self-certify that there would be no supply shortfall, assuming 3 additional dry years. . The San Francisco Regional Water System (RWS) supply availability enabled the City of Palo Alto to self-certify a conservation standard of zero which remains in effect. E. While the State’s emergency regulation remains in effect, hydrological conditions as of February 2017 indicate that the State will be largely out of drought conditions, and customer demand has started to rise from peak conservation levels. Water storage in the RWS is at maximum capacity. F. Staff therefore recommends the deactivation of the level 2 drought surcharge at this time, via the repeal of Resolution No. 9542. Attachment C * NOT YET APPROVED * 170216 jb 6053919 G. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. H. On ____, 2017, the City Council held a full and fair public hearing regarding the proposed rate increase and considered all protests against the proposals. I. As required by Article XIII D, Section 6 of the California Constitution and applicable law, notice of the ________ 2017 public hearing was mailed to all City of Palo Alto Utilities water customers by _______, 2017. J. The City Clerk has tabulated the total number of written protests presented by the close of the public hearing, and determined that it was less than fifty percent (50%) of the total number of customers and property owners subject to the proposed water rate amendments, therefore a majority protest does not exist against the proposal. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-1 (General Residential Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-1, as amended, shall become effective July 1, 2017. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-2 (Water Service from Fire Hydrants) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-2, as amended, shall become effective July 1, 2017. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-4 (Residential Master-Metered and General Non-Residential Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-4, as amended, shall become effective July 1, 2017. SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-7 (Non-Residential Irrigation Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-7, as amended, shall become effective July 1, 2017. SECTION 5. The City Council finds as follows: a. Revenues derived from the water rates approved by this resolution do not exceed the funds required to provide water service. b. Revenues derived from the water rates approved by this resolution shall not be used for any purpose other than providing water service, and the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. Attachment C * NOT YET APPROVED * 170216 jb 6053919 c. The amount of the water rates imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the water service attributable to the parcel. SECTION 6. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product. SECTION 7. Each of the rate schedules adopted by this resolution includes a structure of drought surcharges that correspond to different levels of water use reduction in the City. Effective July 1, 2017, each of the drought surcharges in the water rate schedules adopted by this resolution are deactivated and shall not be added to applicable water rates, unless and until such time as Council again approves both their use and the appropriate reduction level. SECTION 8. The Council finds that the adoption of this resolution changing water rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Senior Deputy City Attorney City Manager ___________________________ Director of Utilities __________________________ Director of Administrative Services GENERAL RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-1-1 Effective 7-1-20176 dated 97-1-20165 Sheet No W-1-1 A. APPLICABILITY: This schedule applies to all separately metered single family residential water services. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides water services. C. RATES: Per Meter Monthly Service Charge: Per Month For 5/8-inch meter ..................................................................................................... $ 16.77 For 3/4 inch meter ..................................................................................................... 22.60 For 1 inch meter ........................................................................................................ 34.26 For 1 1/2 inch meter .................................................................................................. 63.40 For 2-inch meter ........................................................................................................ 98.37 For 3-inch meter ........................................................................................................ 209.11 For 4-inch meter ........................................................................................................ 372.31 For 6-inch meter ........................................................................................................ 762.81 For 8-inch meter ........................................................................................................ 1,403.94 For 10-inch meter ...................................................................................................... 2,219.92 For 12-inch meter ....................................................................................................... 2,919.34 Commodity Rate: (To be added to Service Charge and applicable to all pressure zones.) Per Hundred Cubic Feet (ccf) Per Month All Pressure Zones Tier 1 usage ........................................................................................................................$6.6630 Tier 2 usage (All usage over 100% of Tier 1) ........................................................................ 89.182 ATTACHMENT D GENERAL RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-1-2 Effective 7-1-20176 dated 97-1-20165 Sheet No W-1-2 Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable Commodity Rate for Tier 1 and Tier 2 water usage when the City Council has determined that a water reduction level is in effect for the City as described in Section D.3. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Tier 1 0.20 0.43 0.64 Tier 2 0.58 1.21 1.85 Temporary unmetered service to residential subdivision developers, per connection ........................................................................ $6.00 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Calculation of Usage Tiers Tier 1 water usage shall be calculated and billed based upon a level of 0.2 ccf per day rounded to the nearest whole ccf, based on meter reading days of service. As an example, for a 30 day bill, the Tier 1 level would be 0 through 6 ccf. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. GENERAL RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-1-3 Effective 7-1-20176 dated 97-1-20165 Sheet No W-1-3 3.Drought Surcharge During period of water shortage or restrictions on local water use, the City Council may, by resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought Surcharge is to recover revenues lost as a result of reduced consumption. {End} WATER SERVICE FROM FIRE HYDRANTS UTILITY RATE SCHEDULE W-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-2-1 Effective 7-1-20176 dated 97-1-20165 Sheet No W-2-1 A. APPLICABILITY: This schedule applies to all water taken from fire hydrants for construction, maintenance, and other uses in conformance with provisions of a Hydrant Meter Permit. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides water services. C. RATES: 1. Monthly Service Charge. METER SIZE 5/8 inch ........................................................................................................................... 50.00 3 inch ........................................................................................................................... 125.00 2.Commodity Rate: (per hundred cubic feet) ................................................................ $7.6832 3. Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable Commodity Rate when the City Council has determined that a water reduction level is in effect for the City as described in Section D.5. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.26 0.53 0.77 D. SPECIAL NOTES: 1.Monthly charges shall include the applicable monthly service charge in addition to usage billed at the commodity rate. 2.Any applicant using a hydrant without obtaining a Hydrant Meter Permit or any permittee using a hydrant without a Hydrant Meter Permit shall pay a fee of $50.00 for each day of such use in WATER SERVICE FROM FIRE HYDRANTS UTILITY RATE SCHEDULE W-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-2-2 Effective 7-1-20176 dated 97-1-20165 Sheet No W-2-2 addition to all other costs and fees provided in this schedule. A hydrant permit may be denied or revoked for failure to pay such fee. 3.A meter deposit of $750.00 may be charged any applicant for a Hydrant Meter Permit as a prerequisite to the issuance of a permit and meter(s). A charge of $50.00 per day will be added for delinquent return of hydrant meters. A fee will be charged for any meter returned with missing or damaged parts. 4. Any person or company using a fire hydrant improperly or without a permit, or who draws water from a hydrant without a meter installed and properly recording usage shall, in addition to all other applicable charges be subject to criminal prosecution pursuant to the Palo Alto Municipal Code. 5.During period of water shortage or restrictions on local water use, the City Council may, by resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought Surcharge is to recover revenues lost as a result of reduced consumption. {End} RESIDENTIAL MASTER-METERED AND GENERAL NON-RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-4-1 Effective 7-1-20176 dated 97-1-20165 Sheet No W-4-1 A. APPLICABILITY: This schedule applies to non-residential water service in the City of Palo Alto and its distribution area. This schedule is also applicable to multi-family residential customers served through a master meter. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides water services. C. RATES: Per Meter Monthly Service Charge Per Month For 5/8-inch meter .................................................................................... $ 16.77 For 3/4-inch meter .................................................................................... 22.60 For 1-inch meter .................................................................................... 34.26 For 1 ½-inch meter .................................................................................... 63.40 For 2-inch meter .................................................................................... 98.37 For 3-inch meter .................................................................................... 209.11 For 4-inch meter .................................................................................... 372.31 For 6-inch meter .................................................................................... 762.81 For 8-inch meter .................................................................................... 1,403.94 For 10-inch meter .................................................................................... 2,219.92 For 12-inch meter .................................................................................... 2,919.34 Commodity Rates: (to be added to Service Charge) Per Hundred Cubic Feet (ccf) Per Month All Pressure Zones Per ccf ............................................................................................................ $ 7.6832 RESIDENTIAL MASTER-METERED AND GENERAL NON-RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-4-2 Effective 7-1-20176 dated 97-1-20165 Sheet No W-4-2 Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable Commodity Rate when the City Council has determined that a water reduction level is in effect for the City as described in Section D.2. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.26 0.53 0.77 D. SPECIAL NOTES: 1.Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2.Drought Surcharge During period of water shortage or restrictions on local water use, the City Council may, by resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought Surcharge is to recover revenues lost as a result of reduced consumption. {End} NON-RESIDENTIAL IRRIGATION WATER SERVICE UTILITY RATE SCHEDULE W-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-7-1 Effective 7-1-20167 dated 97-1-20165 Sheet No W-7-1 A. APPLICABILITY: This schedule applies to non-residential water service supplying dedicated irrigation meters in the City of Palo Alto and its distribution area. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides water services. C. RATES: Per Meter Monthly Service Charge Per Month For 5/8-inch meter .................................................................................... $ 16.77 For 3/4-inch meter .................................................................................... 22.60 For 1-inch meter .................................................................................... 34.26 For 1 1/2 inch meter .................................................................................... 63.40 For 2-inch meter .................................................................................... 98.37 For 3-inch meter .................................................................................... 209.11 For 4-inch meter .................................................................................... 372.31 For 6-inch meter .................................................................................... 762.81 For 8-inch meter .................................................................................... 1,403.94 For 10-inch meter .................................................................................... 2,219.92 For 12-inch meter .................................................................................... 2,919.34 Commodity Rates: (to be added to Service Charge) Per Hundred Cubic Feet (ccf) Per Month All Pressure Zones Per ccf ............................................................................................................ $ 89.0872 Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable Commodity Rate when the City Council has determined that a water reduction level is in effect for the City as described in Section D.2. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). NON-RESIDENTIAL IRRIGATION WATER SERVICE UTILITY RATE SCHEDULE W-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-7-2 Effective 7-1-20167 dated 97-1-20165 Sheet No W-7-2 Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.53 1.25 2.02 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Drought Surcharge During period of water shortage or restrictions on local water use, the City Council may, by resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought Surcharge is to recover revenues lost as a result of reduced consumption. {End} Attachment E EXCERPTED DRAFT MINUTES OF THE MARCH 1, 2017 UTILITIES ADVISORY COMMISSION ITEM 3: ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend that the City Council Adopt: (1) a Resolution Approving the Fiscal Year 2018 Water Utility Financial Plan; and (2) a Resolution Increasing Water Rates by Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-4 (Residential Master-Metered and General Non-Residential Water Service, and W-7 (Non-Residential Irrigation Water Service) and Removing the Drought Surcharge Acting Senior Resource Planner Eric Keniston gave a presentation on the financial forecasts for the water utility. Forecasted rate increases for July 1, 2017 had decreased from 6% to 4% from the last year’s forecast. Future year rate increases were projected to be roughly 6% per year. Cost increases by rising wholesale costs due to major capital expenditures for seismic improvements and rehabilitation to the Hetch Hetchy water system. Expenditures were projected to be lower than normal in FY 2017 and FY 2018 due to delays in water main replacement investments. This would result in an increase in reserves, which would allow rate increases to be phased in over multiple years. Lastly, water demand had decreased during the drought, but with recent precipitation and an end to mandatory reduction requirements, demand was beginning to slowly rise again. It was not clear whether it would return to pre- drought levels. As a result, staff would recommend removing the drought surcharge. Commissioner Schwartz said it was important to remove the drought surcharge given the recent precipitation. Keniston said that even with the 4% rate increase, the removal of the drought surcharge meant that customers would see an overall decrease in their bills. ACTION: Commissioner Schwartz moved, seconded by Commissioner Trumbull to recommend that the City Council adopt the staff recommendation. The motion carried unanimously (6-0, with Vice Chair Danaher and Commissioners Trumbull, Forssell, Danaher, Schwartz, Ballantine, and Johnston voting yes and Commissioner Cook absent). City of Palo Alto (ID # 7724) Finance Committee Staff Report Report Type: Action Items Meeting Date: 4/4/2017 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Finance Committee Recommendation to Adopt the Refuse Rates for FY 2018 Title: Finance Committee Discussion and Recommendation That Council Adopt (As Part of the Fiscal Year 2018 Annual Budget) a Resolution Amending the Residential Refuse Rates for Fiscal Year 2018 to Cover Program Costs and Keeping All Other Rates the Same From: City Manager Lead Department: Public Works Recommendation Staff recommends the Finance Committee: Recommend Council adopt (as part of the Fiscal Year 2018 Annual Budget) the attached resolution (Attachment A) amending Utility Rate Schedule R-1 (Residential Refuse Rates)(Attachment B). Executive Summary Staff proposes a 5% increase in FY 2018 to complete the three-year plan of residential rate adjustments,balancing residential sector revenues and expenses (SR #5566). The proposed residential rate increase of 5% is less than the previously projected third-year rate increase of 8%due to program expense reductions. The 5% residential rate increase brings residential revenues fully in line with that sector’s expenses, consistent with state law requirements. Staff is not proposing any changes to the commercial rate at this time. Background Refuse Services Residential and commercial refuse rates pay for more than just garbage ATTACHMENT G City of Palo Alto Page 2 collection,including the following: ·Garbage service –Curbside collection of the black garbage cart, processing the garbage at the Sunnyvale Material and Recovery Transfer (SMaRT) Station and landfilling the residual at Kirby Canyon Landfill in San Jose. ·Recycling service –Curbside collection of the blue recycling cart, sorting the recyclables into saleable commodities at the GreenWaste Recovery Charles Street Material Recovery Facility (MRF). ·Compost service –Curbside collection of the green cart;processing and anaerobic digestion of yard trimmings and food scraps at the Zero Waste Energy Development (ZWED) facility in north San Jose to produce compost and green energy. ·Street Sweeping service –Weekly street sweeping services during the leaf season and bi-weekly sweeping the rest of the year. ·Annual Clean Up Day – Once a year each single-family residential refuse customer can contact GreenWaste to pick up four large items that cannot fit in the black garbage cart, in addition to contained garbage, recyclables and yard trimmings. ·Zero Waste Palo Alto support – Residents and businesses can contact Zero Waste staff to gain valuable information on home composting, reducing food waste and zero waste events. ·Household Hazardous Waste (HHW) service –Weekly collection program at the HHW Station located at the Palo Alto Regional Water Quality Control Plant. ·Palo Alto Landfill post closure maintenance and monitoring – Ongoing maintenance and monitoring at the now-closed Palo Alto Landfill. The cost of refuse services for each program area is listed in Table 1. Zero waste program support is included in the “Solid Waste” category. Table 1.Refuse Program Costs Preliminary Budget FY 2018 $31.1 million* Solid Waste Recycling Compost Landfill Hazardous Waste Street Sweeping $15.6 m $4.0 m $5.6 m $3.9 m $0.6 m $1.4 m *The final FY 2018 budget amounts may differ from these estimates. Single-Family Residential Refuse Rates (R-1) City of Palo Alto Page 3 In 2015, the City contracted with a consultant to prepare a Solid Waste Rate Structure and Analysis Report. The report noted the revenue collected from residential refuse customers was less than the cost to service the residential customers. The Finance Committee approved staff’s proposed plan to increase residential rates 28% (for most customers) over three years to provide sufficient revenue to cover all residential expenses by FY 2018 (SR #5566). Residential rates were increased 9% in FY 2016, 9% in FY 2017,and in FY 2018 staff proposes a 5% increase to complete the three-year balancing plan. Discussion Commercial Rates (RC) No changes are recommended to commercial rates at this time. Single-Family Residential Rates This proposed 5%rate increase is less than the previously projected increase of 8% primarily due to GreenWaste depreciation expenses and reductions in the Sunnyvale Materials and Recycling Transfer (SMaRT) Station debt services budget. As the initial projected FY 2018 budget of $31.1 million is roughly $300,000 more than the FY 2017 budget of $30.8 million, a 5% rate increase is all that is needed to fully fund the residential sector refuse expenses. Although a small proportion of customers will “downsize” their garbage cart, staff does not anticipate this significantly impacting overall revenue. Table 2 lists the various garbage cart sizes available and current corresponding rates and recommended rate increases. Table 2: Recommended FY 2018 Adjustments (R-1 Single-Family Residential Rate Schedule) Cart Size Current Rates (monthly) Recommended FY 2018 Rates (monthly) Dollar Increase Percentage Increase 20 gal $26.48 $27.81 $1.33 5% 32 gal $47.69 $50.07 $2.38 5% 64 gal $95.38 $100.15 $4.77 5% 96 gal $143.07 $150.22 $7.15 5% To cover projected expenses through FY 2021, staff projects residential rate increases of 5% in FY 2018, 3% in FY 2019, 3% in FY 2020, and 3% in FY 2021. City of Palo Alto Page 4 The City offers one of the most comprehensive Refuse,Zero Waste, street sweeping and household hazardous waste collection programs in the region. Nonetheless, the City’s least expensive rate option, a mini-can,is priced within the range of neighboring cities (Table 3). The Palo Alto rates are proposed for July 1, 2017. Cities with lower monthly rates generally offer fewer services. Table 3: Regional Single-Family Residential Monthly Rate+Comparison City Least Expensive Rate Palo Alto $27.81 Menlo Park $13.99 Mountain View $20.05 San Jose $32.07* Santa Clara $19.93 Sunnyvale $38.23* +As of March 2017 * Does not offer a minican/20 gallon cart To minimize the need for rate increases, staff implemented several significant cost saving measures in recent years, including but not limited to (1) accelerating the filling and closing of the City’s landfill; (2) contracting street sweeping operations and moving to less frequent sweeping during the non-leaf season; and (3) improvements and efficiencies gained in the City’s household hazardous waste collection program. Note, approximately two-thirds of Refuse Program expenses are based on CPI increases built into respective agreements. The projections for FY 2018 and near- term future are based on these 3% CPI increases and are addressed in the recommended rates. Timeline Refuse Rate Implementation Schedule Task Schedule Finance Committee final rate approval as part of the budget process April 4, 2017 Proposition 218 notices mailed May 1, 2017 Council approval June 12, 2017 New Refuse Rates take effect July 1, 2017 City of Palo Alto Page 5 Resource Impact The impacts of the proposed FY 2018 refuse rate increases will implement the third year of a three-year phased program to realign rates between the residential, commercial and roll-off sectors so that residential revenues are sufficient to cover expenses. Rates in all sectors are sufficient to cover expenses and continue rebuilding refuse reserves to appropriate levels. Policy Implications There are no policy changes contained in the adoption of the proposed new Refuse Rates. Environmental Clearance/CEQA Adjustments of rates are statutorily exempt from the California Environmental Quality Act (CEQA) (Section 21083, Public Resources Code; Reverence Section 21080(b)(8), Public Resource Code. Attachments: ·Attachment A: Refuse Rates Resolution ·Attachment B: R1 7-1-2017 Attachment A Resolution No. ______ Resolution of the Council of the City of Palo Alto Amending the Utility Rate Schedule R-l for a Refuse Rate Increase RECITIALS A. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the City Council may by resolution adopt rules and regulations governing utility services and the fees and charges therefore; and B. The Council has considered the need for an adjustment in refuse collection rates to avoid a decrease in the Refuse Fund Rate Stabilization Reserve levels; and C. Pursuant to Article XIIID Sec. 6 of the California Constitution, on June XX, 2017 the Council of the City of Palo Alto held a public hearing to consider all protests against the proposed refuse rate fee increases; and D. The total number of written protests presented by the close of the public hearing was less than fifty percent (50%) of the total number of customers subject to the proposed refuse rate fee increases. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R- l (Domestic Refuse Collection) is hereby amended to read in accordance with Sheets R-l-l, R-1-2,attached hereto and incorporated herein. The foregoing Utility Rate Schedules, as amended, shall become effective on July 1, 2017. SECTION 2. The rates contained in the attached Rate Schedules shall be in effect until Council adopts a new rate structure. SECTION 3. The Council finds that the revenue derived from the authorized adjustments of the refuse collection rates shall be used only for the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. / / / / / / / / SECTION 4. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b)(8). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: _______________________________________________________ City Clerk Mayor APPROVED AS TO FORM:APPROVED: _______________________________________________________ City Attorney City Manager _____________________________ Director of Public Works / City Engineer _____________________________ Director of Administrative Services DOMESTIC REFUSE COLLECTION 87,/,7<5$7(6&+('8/(5 CITY OF PALO ALTO UTILITIES ,VVXHGE\WKH&LW\&RXQFLO (IIHFWLYH 6XSHUVHGHV5DWH6FKHGXOH5GDWHG 6KHHW1RR-1-1 A. APPLICABILITY: 7KLV VFKHGXOH DSSOLHVWRHDFKRFFXSLHGGRP HVWLF GZHOOLQJ DVUHTXLUHGE\&LW\  RUGLQDQFHLQFOXGLQJVHSDUDWHVLQJOHIDPLO\GRPHVWLFGZHOOLQJDQGPXOWLXQLWGZHOOLQJV XQLWVRUOHVV $QRFFXSLHGGZHOOLQJXQLWLVGHILQHGDVDQ\KRPHDSDUWPHQWXQLWFRWWDJHIODWRUGXSOH[XQLWKDYLQJ NLWFKHQ EDWKDQGVOHHS LQJ IDFLOLWLHV DQGWR ZKLFKJDVRUHOHF WULF VHUYLFH LVEH LQJUHQGHUHG B. TERRITORY: :LWKLQWKHLQFRUSRUDWHGOLPLWVRIWKH&LW\RI3DOR$OWRDQGRQODQGRZQHGRUOHDVHGE\WKH&LW\ C. RATES: 7KHUHIXVHUDWHVEHORZSURYLGHZHHNO\FROOHFWLRQSURFHVVLQJDQGGLVSRVDORIP DWHULDOVSURSHUO\ GHSRVLWHGLQWKHQXPEHURIJDUEDJHFRQWDLQHUVLQGLFDWHGEHORZDVZHOODVZHHNO\FROOHFWLRQDQG SURFHVVLQJRIUHF\FODEOHVIURP EOXHFDUWV VWDQ GDUGVHUYLFHLQFOXGHVRQHJDOORQEOXHFDUW  ZHHNO\FROOHFWLRQDQGSURFHVVLQJRIFRPSRVWDEOHV \DUGWULPPLQJVIRRGVFUDSVDQGIRRGVRLOHGSDSHU  IURPJUHHQFDUWV VWDQGDUGVHUYLFH LQFOXGHVRQHJDOORQJUHHQFDUW RQJRLQJ PDLQWHQDQFHRIWKHFORVHG3DOR$OWR/DQGILOO]HURZDVWHSURJUDPVVWUHHWVZHHSLQJVHUYLFHWKH KRXVHKROGKD]DUGRXVZDVWHSURJUDPDQGWKHDQQXDO&OHDQ8S'D\ MonthlyRefuse Services Cost Garbage Cart Sizes 0LQLFDQJDOORQFDUW  JDOORQFDUW  JDOORQFDUW JDOORQFDUW   0LQLFDQVHUYLFHFDQQRWEHFRPELQHGZLWKDQ\RWKHUFDUWVHUYLFH   6WDQGDUGFDUWVHUYLFHLVRQHJDOORQFDUW D. SPECIAL ITEM CHARGES:  6WRYHZDVKHUGU\HUZDWHUKHDWHUSLFNXS   )UHH]HUUHIULJHUDWRUDLUFRQGLWLRQHUJDUEDJHFRPSDFWRUSLFNXS   8SKROVWHUHGIXUQLWXUHSLFNXS SHUXQLW    Attachment B CITY OF PALO ALTO UTILITIES,VVXHGE\WKH&LW\&RXQFLO  (IIHFWLYH 6XSHUVHGHV5DWH6FKHGXOH5GDWHG 6KHHW1RR-1-2  0DWWUHVVSLFNXS  7LUHSLFNXS SHUWLUHOLPLWRIWLUHV   3DOOHWSLFNXS   ³6XUFKDUJHVSHFLDO´IHH VHH(EHORZ DSSOLH VZKHQVSHFLDOLWHPLVQRWFROOHFWHGXQGHUWKH DQQXDO&OHDQ8S'D\3URJUDPJXLGHOLQHVE. SPECIAL LABOR CHARGES:  5HWXUQWULS QH[WGD\VHUYLFH ««««««««««««««««««««  5HWXUQWULS VDPHGD\VHUYLFH ««««««««««««««««««««  ([WUDFROOHFWLRQ IRUVHUYLFHRIDGGLWLRQDOPDWHULDOFKDUJHGSHUFXELF\DUG   0LVFHOODQHRXVSHUVRQVHUYLFHUDWH SXOORXWVHUYLFH  PLQ 6XUFKDUJHVSHFLDO RQHWLPHSLFNXSRIODUJHRUQRQVWDQGDUGLWHPVRUGHOLYHU\RIFRQWDLQHUVIRUVSHFLDOHYHQWV ««««  5HSDLUUDWH PLQPDWHULDO %DFNVLGH\DUGFROOHFWLRQRIJDUEDJH PRQWKO\FKDUJHSHUUHVLGHQFH±DYDLODEOHWRFXUUHQWEDFNVLGH\DUGVHUYLFHFXVWRPHURQO\ «««««« F. SPECIAL CART CHARGES: JDOORQFDUWUHQWDO ««««««««««« JDOORQFDUWUHQWDO ««««««««««« JDOORQFDUWUHQWDO ««««««««««« JDOORQFDUWSXUFKDVH JDOORQFDUWSXUFKDVH«««««««««««««««««««««««  JDOORQFDUWSXUFKDVH«««««««««««««««««««««««  JDOORQFDUWSXUFKDVH«««««««««««««««««««««««  &DUWZDVK««««««««««««««««««««««««««««  &RPSRVWFDUWFRQWDPLQDWLRQ HQWLUHFDUWGXPSHG 5HF\FOLQJFDUWFRQWDPLQDWLRQ HQWLUHFDUWGXPSHG «««««««««««« 'DPDJHGFDUWH[FKDQJH RQHDOORZHGSHUFXVWRPHUHDFKFDOHQGDU\HDUDWQRFRVW  0RQWKO\NH\VHUYLFH FXVWRPHUSURYLGHGORFN ««««««««««««««« /RFN &ROOHFWRUSURYLGHG «««««««««««««««««««««« &DUWORFNLQVWDOODWLRQ««««««««««««««««««««««««  0RQWKO\FKDUJHIRUHDFK DGGLWLRQDOFDUWR IVHUYLFHDERYHWKUHHFDUWVIRUWKHFRP SRVWDEOHPDWHULDOVRUUHF\FOLQJFDUW FINANCE COMMITTEE ACTION MINUTES Page 1 of 2 Special Meeting Tuesday, April 4, 2017 Chairperson Filseth called the meeting to order at 7:02 P.M. in the Community Meeting Room, 250 Hamilton Avenue, Palo Alto, California. Present: Filseth (Chair), Fine, Holman, Tanaka Absent: Oral Communications None. Action Items 1.Finance Committee Discussion and Recommendation That Council Adopt (as Part of the Fiscal Year 2018 Annual Budget) a Resolution Amending the Residential Refuse Rates for Fiscal Year 2018 to Cover Program Costs and Keeping all Other Rates the Same. MOTION: Council Member Fine moved, seconded by Council Member Holman to recommend the City Council adopt (as part of the Fiscal Year 2018 Annual Budget) a Resolution amending Utility Rate Schedule R-1 (Residential Refuse Rates). MOTION PASSED: 4-0 The Committee took a break from 8:04 P.M. to 8:06 P.M. 2.Utilities Advisory Commission Recommendation That the City Council Adopt: (1) a Resolution Approving the Fiscal Year 2018 Water Utility Financial Plan; and (2) a Resolution Increasing Water Rates by Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water ATTACHMENT H ACTION MINUTES Page 2 of 2 Finance Committee Action Minutes April 4, 2017 Service From Fire Hydrants), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) and Removing the Drought Surcharge. MOTION: Council Member Tanaka moved, seconded by Council Member Fine to recommend the City Council: 1. Adopt a Resolution approving the Fiscal Year (FY) 2018 Water Utility Financial Plan; and 2. Transfer $1.877 million from the Rate Stabilization Reserve to the Operations Reserve; and 3. Adopt a Resolution increasing water rates by amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-4 (Residential Master-Metered and General Non-Residential Water Service), and removing the drought surcharge with the following change: A. That the increase in water rates be 3 percent beginning July 1, 2017 MOTION PASSED: 4-0 MOTION: Council Member Tanaka moved, seconded by Council Member Fine to authorize Staff the ability to notice the increase in water rates at an amount up to 4 percent. MOTION PASSED: 4-0 City of Palo Alto (ID # 8057) Finance Committee Staff Report Report Type: Action Items Meeting Date: 5/18/2017 City of Palo Alto Page 1 Summary Title: Follow-up Information on Water Utility Rate Comparisons Title: Follow-up Information on Water Utility Rate Comparisons From: City Manager Lead Department: Utilities Recommendation This is a discussion item and no action is required. Background At its April 4, 2017 meeting, the Finance Committee requested more information on why water bills for Palo Alto’s residential customers were higher than those of surrounding agencies. This report provides background on water utility benchmarking efforts undertaken since 2010. In addition, preliminary insights from a 2014 staff benchmarking effort are discussed. Discussion Staff has attached an April 15, 2014 Finance Committee staff report (Staff Report ID 4480, Discussion of Water Utility Benchmarking Studies and Future Work Plan) summarizing the results of past efforts in 2010 and 2013 (Attachment A). To supplement that report, Attachment B provides an informal 2014 staff analysis comparing CPAU water utility rates with several nearby agencies. The findings of the 2010, 2013 and 2014 benchmarking studies are largely consistent. Some of the key insights are: 1.As indicated by these analyses, it has long been recognized that water utility rates in Palo Alto are higher than some nearby agencies. It should be noted that CPAU’s relatively low electric and gas utility rates typically result in lower total utility bills for customers; however, water rates are relatively high and have been regularly reviewed over the past several years. 2.Comparison among agencies can be difficult due to varying system sizes, and benchmarking is complicated by factors unique to each agency such as geography, residential/commercial customer mix, and capital improvement practices. 3.Single family residential customer usage in Palo Alto is relatively high among the ATTACHMENT I City of Palo Alto Page 2 comparison agencies, 25-35% above median, contributing to higher monthly bills. 4. Single family residential customers represent 41% of overall CPAU consumption, contrasting with 24% and 27% in Mountain View and Santa Clara, respectively. That means that a greater share of the water utility’s fixed costs are allocated to single-family customers than in other service territories since Palo Alto’s single-family customers use a greater share of system capacity than other agencies’ customers do. 5. Debt service currently constitutes roughly 7% of CPAU rates, primarily related to the El Camino Reservoir and related emergency storage projects. Many other systems have no debt service. 6. Operating costs are relatively high per square mile of urban service area. Salary and benefit costs are relatively high due to a greater number of employees than any comparison agencies. In part, the greater number of employees had to do with the greater number of miles of water main per customer, due to the less dense nature of Palo Alto’s urban core. Even with the Foothills areas omitted, Palo Alto has a lower population and customer density than other cities. Employee counts are much more comparable between Palo Alto and other cities when compared on the basis of number of employees per mile of water main. 7. Capital spending for distribution and water supply (excluding recycled water) was found to be substantially higher on an absolute (rather than normalized) dollar basis in Palo Alto, even though Palo Alto was the smallest of the five agencies in the study. That included both cash investments in capital spending and debt service costs (see Attachment B). Benchmarking is a complex exercise due to the different physical layouts of different systems, different consumption characteristics of the populations, and different methods of accounting, making it hard to discern clear, simple reasons for cost differences. Even choosing a basis for cost comparison can be challenging. For example, differences in consumption patterns can heavily skew comparison on a cost per CCF basis. Differences in the ratio of commercial to residential customers can skew a comparison on a cost per customer basis. A cost per mile of main comparison basis can be helpful for some types of costs, but hides differences in density of the service territories that affect customer bills, since customers in a less dense service territory require a greater length of water main to serve each customer, leading to higher bills for each customer in a less dense territory. These differences are addressed in the 2014 benchmarking study. Benchmarking is an ongoing effort, as is cost-effectiveness review and implementation of operational changes. Staff is continuing to review opportunities for improving efficiency and minimizing customer rates, and will report to the Committee and Council as this effort proceeds. Timeline Staff plans to schedule further discussions of this topic in the fall of 2017. Resource Impact City of Palo Alto Page 3 These discussions will be accomplished with existing staff. No additional resources are required. Policy Implications There are no policy implications associated with a discussion of water utility operating costs and rates. Environmental Review Discussion of water utility operating costs and rates does not meet the California Environmental Quality Act’s definition of a project, pursuant to Public Resources Code Section 21065, thus no environmental review is required. Attachments:  Attachment A: Staff Report ID 4480, Water Utilities Benchmarking Review and Future Work Plan  Attachment B: Comparison of Capital Spending by Water Utility  Attachment C: Final Excerpted Minutes of the April 15, 2014 Finance Committee Meeting City of Palo Alto (ID # 4480) Finance Committee Staff Report Report Type: Action Items Meeting Date: 4/15/2014 City of Palo Alto Page 1 Summary Title: Water Utility Benchmarking Review and Future Work Plan Title: Discussion of Water Utility Benchmarking Studies and Future Work Plan From: City Manager Lead Department: Utilities Recommendation This report presents two benchmarking studies previously done of the City’s Water Utility, and presents some possible future areas for analysis. No action is required, but staff requests input on its work plan regarding future benchmarking for the Water Utility. Executive Summary The Water Utility’s rates have been rising over the last several years, primarily due to seismic upgrades to the Hetch Hetchy system that are leading to steeply increasing wholesale water costs, a large investment in the utility’s emergency water supply and storage system, and the levels of investment required to maintain and replace Palo Alto’s aging distribution mains. The rising water rates have led to increased interest in the difference between Palo Alto’s rates and the rates of those neighboring agencies who also receive water from the Hetch Hetchy system. Two benchmarking studies of the Water Utility have been performed in the last several years. The first, completed in 2010 and based on Fiscal Year (FY) 2009, focused only on the Water Utility. The second was done as part of an organizational assessment done by SAIC for the City and delivered on March 18, 2014. The common theme in these studies is that Palo Alto has older water infrastructure than other agencies and has higher levels of capital investment and operations and maintenance expense as a result. Staff is planning to complete a deeper analysis of some of these questions in 2014, and has listed some topics for further investigation later in this report. Staff would like the Finance Committee’s comments on its work plan. ATTACHMENT A City of Palo Alto Page 2 Background This report is offered in response to a recommendation by the Finance Committee during the FY 2014 budget process in May of 2013. The Finance Committee asked staff to return at a later date for a review of the City’s water costs. This topic has been discussed in depth once before, in 2010, and a recent analysis by SAIC also addressed some of these issues. In addition, staff did some of its own preliminary analysis in late 2013 in an attempt to delve more deeply into some of the issues raised by these two studies. Staff presented some of this preliminary analysis to the Utilities Advisory Commission (UAC) at its January 8, 2014 meeting, and the UAC recommended completing more in-depth analysis before proceeding to the Finance Committee. Staff concurs, and is providing this report as background for the Finance Committee on the results of previous benchmarking efforts, and to provide an opportunity for the Committee to communicate any specific questions it would like to have addressed. Discussion The City has completed two benchmarking studies in the last several years related to the City’s Water Utility. 2010 Benchmarking Study In 2010 the City hired HF&H Consultants to perform a benchmarking study that focused solely on the Water Utility. This study sought to answer the following questions: 1. Why are the City of Palo Alto Utilities’ (CPAU’s) water rates higher than neighboring utilities? 2. How does the Water Utility budget compare with other neighboring utilities? 3. What qualitative and quantitative information explains the differences in major cost categories, such as water purchase costs, operations costs, staff costs, and capital costs? 4. How do the neighboring utilities compare with respect to the state of their respective utility infrastructures, emergency preparedness, and reliability? 5. What are CPAU customers getting for the extra money collected for water utility services? HF&H compared the Water Utility with Redwood City, Mountain View, Milpitas, Hayward, Santa Clara, and California Water Service Company’s Bear Gulch District. The consultant found that CPAU’s rates were higher than average for several reasons: City of Palo Alto Page 3 1. The Water Utility puts more staff resources and capital into maintaining and replacing its older facilities. 2. Economies of scale are greater for the comparison cities. 3. Palo Alto’s service area is more broadly spread, with more pumping zones, all of which makes it more expensive to serve. 4. Palo Alto experiences more seasonal variation in its demand, which requires a higher level of operating capability. 5. Palo Alto provides a higher quality of service, with a lower number of complaints received and a lower number of system outages. 6. Palo Alto’s cost of water supplies is higher than some of the agencies that purchase some water from Santa Clara Valley Water District and/or pump groundwater. HF&H’s Water Utility Benchmarking Study was presented to the Finance Committee on November 2, 2010 (CMR: 393:10). That report is provided as Attachment A. 2014 SAIC Organizational Assessment On March 18, 2014, the Finance Committee received a report from SAIC Energy, Environment & Infrastructure, LLC describing an organizational assessment of CPAU as a whole. The report found that CPAU was a “well-run, reliable, and innovative organization,” and that its water utility was “performing well,” though it should continue its efforts to manage O&M costs and water supply costs. To form these conclusions SAIC benchmarked the Water Utility against a number of other water utilities across California and in other parts of the country. The results are shown in the table below that was taken from the SAIC study. City of Palo Alto Page 4 Benchmarking Results from SAIC Study CPAU Results (CY 2011) Measure Better than Average At or Near Average Worse Than Average Water Revenue per Million Gallons Delivered (Fig. 3-17) √ Net Income per Revenue Dollar (Fig. 3-18) √ Retail Water Customers per FTE (Fig. 3-19) √ O&M Expense per Million Gallons (Fig. 3-20) √ O&M Expense per Water Retail Customer (Fig. 3-21) √ O&M Expense per Mile of Water Main (Fig. 3-22) √ A&G Expense per Retail Water Customer (Fig. 3-23) √ A&G Expense per Million Gallons Processed (Fig. 3-24) √ Million Gallons per Day Delivered per FTE (Fig. 3-25) √ Average Monthly Residential Water Bill (Fig. 3-26) √ SAIC noted that CPAU was worse than average on Operation and Maintenance (O&M) expense per mile of water main and in water delivered per Full-Time Equivalent (FTE). The consultant attributed higher O&M expense to the higher attention paid to its older water infrastructure, noting that CPAU, unlike most other utilities, is currently implementing an aggressive water distribution system infrastructure replacement program. The consultant also urged caution in interpreting the water delivery numbers, since Palo Alto appears to directly allocate administrative and customer service FTEs to its utility in contrast to other utilities that do an indirect allocation of overhead costs. This artificially deflates CPAU’s water delivery per FTE. Future Staff Work Plan Staff has done some preliminary analysis of the Water Utility’s typical comparison agencies, and has come to similar initial conclusions as HF&H and SAIC. Palo Alto was developed earlier than the comparison cities and has maintained lower growth rates than its neighbors, which is likely responsible for its substantially older infrastructure. This older infrastructure requires higher levels of Capital Improvement Program (CIP) and O&M investment. Palo Alto has been aware of this need for a long time. In 1990 an in-depth assessment of infrastructure costs was performed that found that CPAU’s aging water infrastructure required an increased level of investment to maintain the health of the system. As the accelerated main replacement program ramped up, CPAU’s rates went from being comparable to its neighboring agencies to City of Palo Alto Page 5 being above them. By 2000, CPAU’s average residential bill was as high relative to other agencies as it is today. This suggests that infrastructure, both for SFPUC’s regional water system and CPAU’s local distribution system, is the main driver of CPAU’s high water rates relative to other agencies. Staff has also found some other avenues that are worth investigating, including the following: 1. CPAU bills are not necessarily the highest for all customer classes and usage levels. This is because allocations of system costs between residential and non-residential customers appear to differ from utility to utility. Presumably these differences in allocations are due to different service territory characteristics, since most utilities use similar cost allocation methodologies. 2. Different agencies have different ratios of units of water delivered per mile of water main, which affects rates. The lower cost comparison agencies tended to deliver more water per mile of main, meaning that the maintenance costs for each mile of main were spread over more sales units, leading to lower rates. This is reflective of the fact that Palo Alto is more spread out than its neighboring cities, as noted in the 2010 Benchmarking Study, meaning that more mains are required to deliver water to the same number of customers. Staff plans to extend its preliminary analysis over the course of 2014 to answer a variety of other questions, if possible. Since the data required to answer these questions is not easily found in a comparable format in public documents, it will require the cooperation of other agencies. The extent to which staff can answer these questions depends on the extent to which these agencies are willing to take the time to extract the data and answer clarifying questions about it. Some of the questions staff will seek to answer are: 1. Taking into account the physical differences between service territories, how do CPAU’s O&M costs compare to those for other BAWSCA agencies? 2. How do CPAU’s administration, allocated overhead, and customer service costs compare to other BAWSCA agencies? 3. How do CPAU’s salaries and benefits compare to other BAWSCA agencies? 4. How are costs allocated between residential and non-residential customer classes for comparable BAWSCA agencies, and what drives those allocations? 5. How would costs need to change for rates to become competitive? Staff welcomes comments on these questions and suggestions for additional avenues of inquiry to be incorporated into the study. City of Palo Alto Page 6 Timeline Staff plans to complete its review by December 2014 and will return to the UAC and Finance Committee with its conclusions. Resource Impact Staff estimates it will require approximately 0.1 FTE in 2014 to complete this analysis. This will be absorbed with existing staff. Environmental Review The Finance Committee’s discussion of these benchmarking studies does not meet the definition of a project, pursuant to Section 21065 of the California Environmental Quality Act, thus no environmental review is required. Attachments:  Attachment A: CMR 393:10 Water Utility Benchmark Study (PDF) TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES ATTENTION: FINANCE COMMITTEE DATE: NOVEMBER 2, 2010 CMR: 393:10 SUBJECT: Water Utility Benchmark Study This report is informational only and no action is required. EXECUTIVE SUMMARY Staff has received comments in various forums that the City’s water rates have been among the highest in the region. The water utility benchmarking study was conducted by an outside consultant to obtain an independent assessment of the factors that could explain this difference. This study compared the City’s water utility with six nearby water suppliers. The study revealed that the City does have higher water purchase cost than average as it gets all of its water supplies from San Francisco, which is more expensive than groundwater or other supplies from the Santa Clara Valley Water District. In addition, due to its size, Palo Alto does not benefit from the economies of scale available to larger agencies. Palo Alto’s water system is more expensive than average to operate since the City is spread out and includes sparser development in hillier terrain. Palo Alto’s main distribution pipelines are also the oldest within the group, and older infrastructure is more expensive to maintain and replace. Another objective of the benchmarking study was to identify benefits that Palo Alto rate payers may receive from the higher rates they pay. The study indicates that Palo Alto provides a higher quality of service based on the lower number of complaints received and fewer system outages. BACKGROUND During its review of the Utilities long-term financial projections and the review of the Fiscal Year (FY) 2011 budget in the Spring of 2010, the Utilities Advisory Commission (UAC) and the Finance Committee recommended that a benchmark study for the Water Utility be prepared. Staff engaged a consultant (HF&H Consultants, LLC) to complete the benchmarking study. This report summarizes the findings of the study, which staff presented to the UAC at its October 6, 2010 meeting. CMR: 393:10 Page 1 of 6 ATTACHMENT A Current Rates and Bills For further background information the following two figures compare monthly bills using current water rates. Several cities implemented water rate increases in FY 2011 while Palo Alto has not increased water rates since July 1, 2009. These later water rate increases were not incorporated in the bill comparisons provided in the consultant report. The figure below represents monthly bills for single-family residential customers using current water rates. Hayward is shown twice in the following two figures, outer city rates (Hayward-O) and inner city rates (I). Palo Alto  Redwood City  Mountain View  Milpitas  Hayward ‐I Hayward ‐O Santa Clara  Bear Gulch ‐MP  $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 Mo n t h l y  Bi l l  ($ ) Usage Per Monthly Bill (CCF) Single Family Residential Monthly Bills Benchmark City Comparisons    5/8" meter  Water bills for non-residential customers are shown in the chart below for different usage levels. Note that although bills in Palo Alto are higher than average, they are not the highest in the group of comparator cities. CMR: 393:10 Page 2 of 6 Palo Alto Redwood City  Mountain View  Milpitas  Hayward ‐I Hayward ‐O Santa Clara  Bear Gulch ‐MP  $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 0 250 500 750 1000 1250 1500 1750 2000 Mo n t h l y  Bi l l  ($ ) Usage Per Monthly Bill (CCF) Commercial Monthly Bills Benchmark City Comparisons   5/8" meter  DISCUSSION Study Objectives and Approach Given the concerns expressed by the UAC and the Council Finance Committee about Palo Alto’s water rates, staff initiated a benchmark study for the Water Utility in May 2010. The objective of the study was to develop benchmarks to provide insight into key questions such as: o Why are Palo Alto water rates higher than neighboring cities? o How does Palo Alto’s water utility budget compare with others? o What qualitative and quantitative factors explain the differences? o How does Palo Alto’s infrastructure, emergency preparedness and reliability compare with its neighbors? o What benefits do Palo Alto rate payers receive from higher rates? Six neighboring cities with comparable size and location were selected for the benchmark comparisons. The scope of the study was defined to capture information from readily available documents on the benchmarks identified in the first phase and then, as a potential second phase, to conduct further evaluation of the most informative benchmarks. HF&H Consultants, LLC completed the first phase of the study and then staff followed up with further surveying and CMR: 393:10 Page 3 of 6 compiling additional information from the benchmark cities. The Water Utility Benchmark Study is provided as Attachment A. The study focused on areas such as: o Rate structures and related charges o Service area and customer characteristics o Operating and capital budgets o Infrastructure condition o Staffing and operational requirements o Quality of service Study Conclusions 1. Service Area and Infrastructure Benchmarks The benchmark cities selected have the overall characteristics shown in the following table: City Population Service Area (square miles) Water Deliveries (million gallons per day) Palo Alto 63,400 26.0 12.3 Hayward 150,878 62.5 18.6 Milpitas 70,817 13.6 11.2 Mountain View 74,762 12.0 11.4 Redwood City 83,895 35.0 10.4 Santa Clara 117,242 19.3 22.2 California Water Company’s Bear Gulch District (serves parts of Menlo Park, Atherton and Woodside) 57,108 45.3 13.1 The study concluded that Palo Alto’s population is smaller than average and, therefore, does not benefit from economies of scale, suggesting higher costs to serve its customers. In addition, Palo Alto is less densely populated which may imply higher cost per capita for service. Palo Alto has larger single family home lot sizes suggesting higher water use for irrigation. This results in a higher ratio of peak to average usage translating to costlier service requirements. 2. Water Use Benchmarks Palo Alto’s overall average water usage per account is about the same as the average for the group. Comparing single family water use per account with the average for the group yields a similar result. However, Palo Alto’s single-family residential customers water use per account is actually the second highest after Bear Gulch, which has very different characteristics (much larger average lot size). This provides one reason for higher average residential water bills. Palo Alto’s fraction of “lost and unaccounted for” water (total sales volumes divided by total purchase volumes) is in line with the industry average of 8-9%. Santa Clara’s fraction of lost and unaccounted for water was extremely low and could partly explain their low water rates. Staff examined Santa Clara’s policy regarding minimizing their water losses. Staff will further investigate whether similar emphasis on reducing water losses could have a significant impact on Palo Alto’s costs. CMR: 393:10 Page 4 of 6 3. Operations and Maintenance (O&M) Benchmarks O&M benchmarks can be used to determine how efficient water distribution operations are. The study found that Palo Alto mains are the oldest average age in the benchmark cities. This suggests that the City’s infrastructure is more expensive to maintain. In addition, Palo Alto has a higher variation between peak and minimum month flows, which would suggest the need for greater infrastructure needs (and cost) to meet peak flow requirements, and greater operational cost to serve a wider range of flows. Palo Alto has a greater number of employees per gallon delivered and per account. However, other cities use staff from other departments for services such as meter reading and billing and pay for these services in the form of an allocation, rather than directly in employee costs. In addition, Palo Alto does its own engineering design in-house while other entities contract out for these services. Overall, Palo Alto’s operations costs are somewhat higher than average, which is consistent with the higher level of service provided and Palo Alto’s lower economy of scale. 4. Quality of Service Benchmarks Palo Alto receives below average complaints for taste, odor, turbidity, and high or low pressure problems. These factors indicate that customer satisfaction is higher than average in Palo Alto. In addition, Palo Alto has fewer outages per gallon of water delivered and per mile of main suggesting better system maintenance and operations. 5. Utility Infrastructures, Emergency Preparedness, and Reliability Palo Alto plans to replace its water utility infrastructure within the average service lives of the facilities, which is a more aggressive replacement plan than other utilities. Palo Alto’s incidence of main breaks, leaks, and outages is below average, which is further evidence of higher/better reliability. Although Palo Alto has less storage capacity than average, and, therefore, could be viewed as less reliable, the City is in the process of constructing additional storage. 6. Other Conclusions Water purchase costs Palo Alto currently pays more for water than the average benchmark comparator since some of the agencies use less expensive groundwater or treated water from the Santa Clara Valley Water District. In addition, other agencies supplement their supplies with recycled water, the full cost of which may not be included in their water utility budgets. Palo Alto is currently entirely reliant on the San Francisco Public Utilities Commission (SFPUC) for its drinking water supply. The cost of SFPUC’s water will increase steeply in the next few years before leveling off. In anticipation of these cost increases, Palo Alto has set its rates to generate reserves to smooth out the increased cost. Capital costs (past, present and projected) Since Palo Alto’s main distribution lines are the oldest within the group, Palo Alto has aggressively invested in facilities to improve system reliability and in programs to improve its water use efficiency. Palo Alto’s Capital Improvement Plan (CIP) expenditure levels are CMR: 393:10 Page 5 of 6 generally higher than other benchmark cities. Some of the benchmark cities also receive significant revenues from connection fees that are used to fund capital improvements. Rent Palo Alto's Water Utility pays rent to the City's General Fund for its use of land. Palo Alto's costs in this category are generally higher than other cities. ATTACHMENTS A. Water Utility Benchmark Study B. Draft minutes from the UAC October 6,2010 meeting PREPARED BY: REVIEWED BY: DEPARTMENT APPROVAL: CITY MANAGER APPROVAL: CMR: 393:10 IPEKCONNOLLY -'C- Senior Resource Planner 1':11 SHIV A SWAMINATHAN "'(;ib Senior Resource Planner DEBBIE LLOYD J) L Acting Assistant Director, Resource Management ~Pclt-~ JAMES KEENE City Manager Page 6 of6 HF&H CONSULTANTS, LLC Managing Tomorrow’s Resources Today 201 North Civic Drive, Suite 230 Robert D. Hilton, CMC Walnut Creek, California 94596 John W. Farnkopf, PE Tel: (925) 977-6950 Laith B. Ezzet, CMC Fax: (925) 977-6955 Richard J. Simonson, CMC hfh-consultants.com Marva M. Sheehan, CPA TECHNICAL MEMORANDUM To: Ipek Connolly, City of Palo Alto Jane Ratchye, City of Palo Alto From: John Farnkopf, HF&H Consultants, LLC Sima Mostafaei, HF&H Consultants, LLC Greg Trueblood, HF&H Consultants, LLC Date: September 21, 2010 Subject: Water Utility Benchmarking Study This technical memorandum summarizes the results of our benchmarking study performed for the City of Palo Alto Utilities (CPAU) to assist in its rate-setting process and potentially other purposes such as operational performance evaluation. This study evaluated benchmarks at a reconnaissance level based on readily available data within the project schedule and contract budget. This technical memorandum contains the following sections: I. Introduction II. Service Area Benchmarks III. Water Use Benchmarks IV. O&M Benchmarks V. Quality of Service Benchmarks VI. Expense and Revenue Benchmarks VII. Rate Benchmarks VIII. Customer Bill Benchmarks IX. Findings X. Concluding Remarks and Possible Next Steps Additional detail is included in the appendix. I. Introduction As part of its process of continuous self-assessment, the CPAU compares its utility rates with similar neighboring cities. It has been observed and reported that the City’s water rates have been among the highest in the region. The need for a benchmarking study stemmed from the desire by the CPAU to obtain an independent assessment of the City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 2 factors that explain this difference. The purpose of the study is to provide answers to the following questions: 1) Why are CPAU water rates higher than other neighboring utilities? 2) How does the CPAU water utility budget compare with other neighboring utilities? 3) What qualitative and quantitative information explains the differences in major cost categories (e.g., water purchase costs, operations costs, staff costs, capital costs (past, present, and projected), transfers out). 4) How do the neighboring utilities compare with respect to the state of their respective utility infrastructures, emergency preparedness and reliability? 5) What are CPAU customers getting for the extra money collected for water utility services? In this study, the City of Palo Alto’ water utility was compared with six other water suppliers: the Cities of Redwood City, Mountain View, Milpitas, Hayward, and Santa Clara and California Water Service Company’s Bear Gulch District.1 Within this group, there is considerable variation in size, as shown below. As can be seen, there are some disproportionate relationships. For example, Palo Alto’s and Cal Water’s surface areas are large given their populations; Santa Clara’s surface area for its population is comparatively small. Such examples illustrate the difficulty in making statistical comparisons with a sample size of seven in which there may be outliers that can skew the statistics and when data were not always available for all seven agencies. In the text of this report, Palo Alto is compared against the mean for the group and the highest and lowest individual values. This comparison is intended to simplify understanding each benchmark. Readers are urged, however, to also review the appendix, which shows the values for each agency. In this way, the affects of disproportionate relationships, outlier values, and missing data can aid in drawing conclusions. Documents from readily available sources were used in preparing this study. For most but not all of the seven agencies, the following documents were reviewed: • Budgets • Comprehensive Annual Financial Reports 1 Cal Water is unusual among the agencies studied. It is the only member of the group that is a regulated water company; all the others are cities. It serves a disproportionately high single-family residential population in affluent portions of Menlo Park, Atherton, and Woodside whose customers have large lots. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 3 • Capital improvement programs • Urban Water Management Plans • Drinking Water Reports • Master fee schedules • Official statements • General Plans • Service Efforts and Accomplishments Report and other reports specific to Palo Alto only • Written responses provided by cities to the survey conducted by CPAU staff Over 60 published source documents exceeding 5,000 pages were relied upon. In a few cases, telephonic interviews were also conducted. In addition to HF&H’s research, CPAU staff conducted additional targeted surveys and interviews to supplement in areas of the greatest interest such as the condition of infrastructure, past and projected capital improvement programs, funding sources, areas of staff deployment, and capital improvement plan implementation. In view of the large volume of data and limited resources available for research and analysis, this study should be regarded as a reconnaissance level study, as was intended within the scope of services for this project. The data extracted from these documents represents a recent timeframe, but not the same timeframe for each benchmark or for each agency. As such, the report represents conditions typically ranging from the last few years up to the current year, depending on the benchmark. Whereas benchmarks concerning historical trends can extend into prior decades, benchmarks concerning rates reflect rates that are either currently in effect or adopted but not yet effective. II. Service Area and Infrastructure Benchmarks Service area benchmarks compare general differences in the service areas that could lead to differences in providing service. Infrastructure benchmarks combined with service area benchmarks allow for additional definition of the physical differences among the agencies. Figure 1 summarizes the key benchmarks that were evaluated. Palo Alto’s population ranks it smaller in the sample and, as a result, Palo Alto does not benefit from the economies of scale available to larger agencies. Palo Alto also appears to be less densely developed compared to the mean for the group based on the number of residents and accounts per square mile and the miles of main per square mile. In effect, Palo Alto’s water utility infrastructure may be spread over a larger area. It is likely that Palo Alto may have significant undeveloped open space compared to the other agencies.2 2 This could be verified by reviewing land use data. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 4 Figure 1. Service Area and Infrastructure Benchmarks Benchmark Palo Alto Mean Palo Alto vs. Mean High Low Significance of Benchmark Service area characteristics Population 63,400 88,300 -28%150,878 57,108 Size affects economies of scale. Population growth over last ten years 8.6%8.2%4%17.9%-1.7%Growth affects need to expand. Accounts 19,443 21,777 -11%32,382 16,463 Size affects economies of scale. Surface area (square miles) 26.0 30.5 -15%62.5 12.0 Size affects economies of scale. Residents per square mile 2,438 3,717 -34%6,230 1,261 Population density; larger is denser. Accounts per square mile 748 900 -17%1,436 405 Development density; larger is denser. Average Temperature (deg F)58.0 57.0 2%59.2 48.6 Irrigation needs; lower is cooler. Average annual precipitation (in) 15.37 16.35 -6%19.81 14.03 Irrigation needs; lower is drier. Infrastructure Miles of distribution mains 219 262 -16%350 175 Accounts per mile of main 89 84 5%98 57 Infrastructure density; larger is denser. Miles of main per square mile 8.42 10.51 -20%15.28 5.60 Infrastructure density; larger is denser. Average age of distribution mains (years)61 45 34%61 33 Age affects need for O&M and R&R Capital Assets (net book value) Capital assets per account $3,288 $3,085 7%$5,087 $1,541 Investment Capital assets per hcf $10.65 $10.14 5%$19.73 $5.51 Capital assets per square mile $2,458,500 $2,553,050 -4%$3,528,231 $798,273 Infrastructure concentration Palo Alto’s average temperature is slightly above average and its precipitation is slightly below average, the combined effect of which is a slightly higher irrigation requirement for similar landscapes. Land use is also a significant influence in irrigation water use.3 Larger lots in hotter, drier climates can lead to higher irrigation water use. The values reported by the agencies indicated that Palo Alto’s distribution mains are the oldest within the group. Older infrastructure is more expensive to maintain and replace. The value of Palo Alto’s capital assets per account and per unit of water delivered is slightly higher than the mean. Because of Palo Alto’s sparser development, the value of its capital assets per square mile is slightly less than the mean. III. Water Use Benchmarks Water use benchmarks can indicate relative water use efficiency. More efficient water use is presumed to be less expensive to supply per account. Palo Alto’s single-family residential water use is near average for the group. Palo Alto’s multi-family use is much less than average because it has fewer, smaller multi-family accounts. Palo Alto’s commercial, institutional, and industrial (CII) use is somewhat above average. Overall, for all its classes, Palo Alto’s average use per account is near the average. 3 A review of land use data could indicate differences in average lot size, which would assist in understanding differences in irrigation among the agencies. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 5 Figure 2. Water Use Benchmarks Losses are an indicator of a number of broad conditions. Systems with low losses can have better maintained distribution mains with pressures held within recommended limits so that leaks and breaks are minimized. Systems with low losses can also indicate better controlled reservoirs with fewer spills and more accurate and better maintained meters. Based on published sources,4 Palo Alto’s water losses are below average.5 City staff partially attributes the low losses to inaccurate SFPUC master meters, which under- record deliveries to the City; other factors are also pending further review. Other agencies in the group reported low losses due to under-recording SFPUC meters. As a result of the lack of accurate data on losses, it is not possible to make meaningful comparisons about losses. However, based on Palo Alto’s internal water loss reports, Palo Alto’s losses are within industry norms. IV. O&M Benchmarks Operations and Maintenance (O&M) benchmarks indicate how service area and water use characteristics affect O&M. Palo Alto’s O&M benchmarks suggest areas that could lead to higher operating costs. For example, the employee data indicate that Palo Alto uses more employees per millions of gallons delivered than the average for the group and has fewer accounts per employee. Benchmarks relying on the number of employees are problematic because of the differences among the agencies in how they account for staff. For example, the CPAU includes its meter reading staff as part of its water utility; other cities provide these staff from other departments, which may result in undercounting their water utility staff. In other cases, attributions of public works or other non-water utility staff to an agency’s water utility may use approximate formulae rather than direct attribution from time 4 Bay Area Water Supply and Conservation Agency Annual Survey, FY 2008-09. 5 Palo Alto has subsequently verified that the water losses are in the 8% to 9% range, in line with industry average. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 6 sheets. Palo Alto also provides its own design staff, whereas some of the other agencies contract design work to consultants. Figure 3. O&M Benchmarks Benchmark Palo Alto Mean Palo Alto vs. Mean High Low Significance of Benchmark Operations and maintenance Mgd per employee 0.28 0.36 -22%0.49 0.28 Efficiency; larger is more efficient. Accounts per employee 445 576 -23%745 445 Efficiency; larger is more efficient. Miles of main per O&M employee 8.4 12.7 -34%17.7 8.4 Efficiency; larger is more efficient. Mgd per O&M employee 0.47 0.72 -35%1.07 0.47 Efficiency; larger is more efficient. O&M employees as a percent of total employees 59%52%15%64%40% Load factors Peak month to average monthly demand 1.50 1.45 4%1.70 1.25 Design conditions; smaller is better. Peak month to minimum monthly demand 3.21 2.52 28%4.26 1.57 Operational extremes; smaller is better. Mgd per booster pump station 2.05 1.64 25%2.65 0.22 Pumping cost; larger is more expensive. Square miles per pressure zone 3.25 4.28 -24%10.42 1.22 Pumping cost; smaller is more expensive. Square miles per booster pump 4.33 4.05 7%8.93 0.77 Pumping cost; smaller is more expensive. Days of Storage 0.85 1.35 -37%2.04 0.84 Emergency preparedness; larger is better. Gallons of potable storage per account 540 854 -37%1,071 540 Emergency preparedness; larger is better. Load factors indicate a higher variation of flow between peak and minimum month flows. Higher load factors can require greater operational skill, instrumentation, etc. in serving a wider range of flows. Higher load factors will also lead to designing larger, more expensive facilities to meet peak flows. In Palo Alto’s case, its hillier and more extended service area calls for higher pumping rates with the associated increase in power cost. Palo Alto’s distribution system storage is below average compared with the group. Further evaluation of this metric is needed to confirm that the data are comparable (some of the other agencies in the sample have raw water storage that may have been included with their treated water storage). We note that the City is currently constructing additional storage that is not included in this report. V. Quality of Service Benchmarks O&M practices are ultimately reflected in the quality of service, which reflects customer complaints and outages. Based on recent Drinking Water Reports submitted to the Department of Public Health, Palo Alto’s complaints are overall below average, specifically in taste and odor, turbidity, and high or low pressure. Palo Alto also has fewer outages per million gallons per day (mgd) and per mile of main. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 7 Figure 4. Quality of Service Benchmarks VI. Expense and Revenue Benchmarks Palo Alto’s service area characteristics (specifically population size and distribution and infrastructure age) contribute toward more costly operations. In meeting its operational challenges, Palo Alto provides a comparatively high level of service. This level of service comes at a cost, however, as indicated by the financial benchmarks in Figure 5. Figure 5. Financial Benchmarks Benchmark Palo Alto Mean Palo Alto vs. Mean High Low Significance of Benchmark Expenses Total expenses (excl non-oper revenue)$25,903,000 $21,548,215 20%$27,088,382 $17,006,605 Magnitude of expenditures Budgeted expenses per account $1,332 $1,013 32%$1,332 $837 Cost of providing service; lower is cheaper. Operations O&M cost per account $338 $288 17%$444 $150 Cost of operations. Salary and benefits per employee $123,822 $119,191 4%$143,833 $96,667 Salary cost. Average cost of purchased water ($/hcf)$0.17 $0.15 12%$0.17 $0.12 Supply cost. Cost of purchased water as % of total budget 40%49%-18%58%34%Cost of supply (SFPUC and SCVWD).Recent Annual CIP (within last 10 years)$4,100,000 $2,925,000 40%$4,400,000 $750,000 Magnitude of expenditures Current Annual Capital Improvements Annual CIP expense $6,298,750 $4,432,725 42%$6,298,750 $2,125,000 Magnitude of expenditures Annual CIP expense per account $324 $218 48%$370 $66 Annual CIP expense per hcf $1.05 $0.69 52%$1.11 $0.23 Annual CIP expense per employee $144,136 $101,568 42%$144,136 $41,262 Annual CIP expense per mile of main $28,761 $19,160 50%$29,975 $6,071 Annual CIP expense compared to depreciation 538%337%60%558%108%Funding depreciation Debt service as a percent of total budget 14%7%100%14%3%Indebtedness. Debt service, per account $184 $83 122%$184 $28 Indebtedness. Rent as a percent of expenses 7%3%148%8%0% Revenues Total annual revenue per account $1,489 $1,108 34%$1,489 $859 Customer cost; larger is more expensive. Connection fee revenue as a percent of rate rev 2.4%2%42%8%0%Cost recovery from growthConnection fees per 3/4" connection $3,600 $3,825 -6%$5,726 $1,787 Contributes toward funding capital projects. Palo Alto’s overall budgeted operating and capital expenses per account are 32% higher than the mean. Although O&M costs per account are 17% higher, salary costs are close to average per employee. Palo Alto’s cost of water is slightly above average because its sole source of supply is the SFPUC and less expensive alternatives such as groundwater are not currently being used. Palo Alto’s cost of purchased water as a percent of the total budget is not as high because Palo Alto has other expenses (e.g., debt service, rent paid on land for water infrastructure) that are not present to such a degree in the other agencies’ budgets. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 8 Palo Alto’s annual capital expenditures are higher for all of the benchmarks. The amount by which Palo Alto’s average annual CIP currently exceeds depreciation indicates that Palo Alto’s CIP more than keeps up with depreciation and is much higher than the average for the group. Palo Alto’ Water Fund pays rent to the General Fund. Other agencies have a similar charge (although they may not characterize it as rent). Palo Alto’s charge is higher than the mean. Palo Alto’s annual revenues per account need to cover its higher expenses. We note that Palo Alto’s connection fees, which produce revenue from growth to offset capital expenses, are near average; the associated revenue is dependent on growth rates that vary among the agencies. Revenue from connection fees can fund significant portions of capital improvement programs, thereby taking some of the pressure off rates. VII. Rate Benchmarks Rate benchmarks aid in understanding the impact of costs on rates and the question of whether rates are commensurate with costs and the level of service. For this benchmark, there are two components: quantity charges and service charges, the sum of which comprises the bill. A customer’s quantity charge will depend on its water use, and the service charge depends on the size of the service. The combined structure of these two rate components must be designed to meet the agency’s rate-making objectives, among which are typically revenue sufficiency and water conservation. Figure 6 graphically compares the current adopted residential quantity charges for each of the members of the group, some of which rates have not increased recently (e.g., Palo Alto) and some of which have increased significantly. All of the members have tiered rates.6 Palo Alto’ rates are initially higher than the other agencies in the group but not for demand beyond 25 hcf, at which point Mountain View’s and Redwood City’s rates are higher. Hence, claims that “Palo Alto’s rates are the highest” are over simplify the case. Figure 7 provides benchmarks related to rate design, which are useful in understanding the relationship between each member’s costs and the rate structure designed to generate revenue to recover its costs. Palo Alto’s residential quantity charges have fewer tiers than the average. Palo Alto’s residential tiers step up quickly, which provides a strong price signal but the ratio of the top tier to lowest tier is not as great as the average. Palo Alto’s quantity charges are generally higher, but that is consistent with also having lower service charges for the majority of its customers. For an average residential 6 Santa Clara’s minimum charge structure effectively provides the first 3 hcf at no cost; hence, the quantity charge for its first tier is $0.00/hcf. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 9 customer, only 6% of the bill comes from the service charge, which is well within the California Urban Water Conservation Council’s guidelines. Figure 7 also shows benchmarks for the service charges, which are graduated in proportion to the size of the service. Palo Alto’s service charges are all much lower than average (i.e., again, Palo Alto’s rates are not always the highest). Lower service charges provide stronger price signals to encourage water use efficiency because more of the revenue must be recovered from the quantity charge. The California Urban Water Conservation Council guidelines call for generating at least 70% of rate revenue from quantity charges. At 94%, Palo Alto is the highest in the group, which evidences a very potent conservation orientation. Figure 6. Comparison of Residential Quantity Charges $0 $1 $2 $3 $4 $5 $6 $7 $8 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 Qu a n t i t y C h a r g e ( $ / H C F ) HCF Per Monthly Bill Mountain View Palo Alto CWS Bear Gulch Milpitas Hayward Santa Clara Redwood City City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 10 Figure 7. Rate Benchmarks Benchmark Palo Alto Mean Palo Alto vs. Mean High Low Significance of Benchmark Rates Structures - - Quantity charge price signal - residential - - Number of tiers 2.00 2.71 -26%4.00 1.00 Component of variable price signal. Slope of tiers from lowest to highest ($/hcf)$0.239 $0.098 143%$0.239 $0.000 Higher slope produces stronger price signal Ratio of top tier to lowest tier 1.42 2.06 -31%4.09 1.00 Higher ratio produces stronger price signal. Quantity charge price signal - non-residential Number of tiers 1.00 1.57 -36%3.00 1.00 Component of price signal. Slope of tiers from lowest to highest ($/hcf)$0.000 $0.021 -100%$0.129 $0.000 Higher slope produces stronger price signal Ratio of top tier to lowest tier 1.00 1.22 -18%1.99 0.90 Higher ratio produces stronger price signal. Service charges For 5/8 inch meter $5.00 $11.55 -57%$22.41 $5.00 For 3/4 inch meter $5.00 $14.39 -65%$27.03 $5.00 For 1 inch meter $6.50 $21.81 -70%$45.05 $6.50 For 1 1/2 inch meter $12.27 $37.68 -67%$90.10 $12.27 For 2 inch meter $19.37 $58.96 -67%$144.15 $19.37 For 3 inch meter $77.65 $135.56 -43%$270.29 $58.70 For 4 inch meter $130.60 $222.53 -41%$450.49 $92.25 For 6 inch meter $260.43 $411.49 -37%$900.97 $184.70 For 8 inch meter $383.67 $604.00 -36%$996.05 $294.05 Average monthly bills Single-family residential - average Monthly consumption (hcf)14 13 4%26 9 Average water use per residence. Monthly quantity charge $72.64 $46.29 57%$105.96 $21.24 Customer cost for water. Service: 3/4"$5.00 $14.39 -65%$27.03 $5.00 Lower charge recovers less fixed cost. Total $77.64 $60.69 28%$124.65 $34.41 Lower is less expensive. Quantity charge portion 94%73%28%94%47%Conservation signal; CUWCC prefers > 70% Annual SFR bills as percent of MHI 0.74%0.67%10%0.83%0.47%Affordability; EPA threshold = 2%. VIII. Customer Bill Benchmarks The combination of the quantity and service charge structures yields bills for customers that depend on their monthly water use and service connection size. Figures 8 and 9 graph bills for ranges of consumption for residential customers (assuming a 3/4” service and monthly consumption up to 70 hcf per month7 ) and non-residential customers (assuming a 3” service and monthly consumption up to 1,000 hcf per month). Palo Alto’s residential bills are not the highest for use below 12 hcf per month; at some point to the right of Figure 9, Mountain View’s and Redwood City’s rates will produce higher bills than Palo Alto’s rates. 7 In calculating residential bills, the average monthly flow per single-family residence was used for each agency. Hence, the bills reflect both the differences in rate structure as well as the differences in average use per account. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 11 Figure 8. Residential Customer Bills $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 Mo n t h l y B i l l ( $ ) Usage Per Monthly Bill (HCF) Palo Alto CW Bear Gulch Milpitas Hayward Santa Clara Redwood City M Mountain View Figure 9 shows that Palo Alto’s non-residential bills are never the highest in large part because Palo Alto’s service charges for larger services are well below average. However, Palo Alto’s non-residential bills are higher than the mean. Figure 10 presents a comparison of average single-family residential water bills in relation to the population of the agency’s service area. This graph also shows a trend line for the group. By plotting bills versus population, it is possible to see how the size of the agency affects its costs. As the smallest agencies in the group, Cal Water and Palo Alto will not benefit from the economies of scale that the larger agencies receive. Palo Alto is not the only member of the group above the trend line. The agencies below the trend line may also benefit from other advantages, such as later development with correspondingly younger infrastructure, which would not require as much capital investment to maintain. It is also possible that regardless of the age of their infrastructure, the agencies below the trend line are simply not making the investment that is being made by those above the trend line. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 12 Figure 9. Non-Residential Customer Bills $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Mo n t h l y B i l l ( $ ) Usage on Monthly BIll (HCF) Mountain View Palo Alto Redwood City Hayward MilpitasCW Bear Gulch Santa Clara Figure 10. Population versus Average Single-Family Residential Water Bill Palo Alto Redwood City Mountain View Milpitas HaywardSanta Clara CWS -Bear Gulch $- $20 $40 $60 $80 $100 $120 $140 50,000 70,000 90,000 110,000 130,000 150,000 Mo n t h l y B i l l Population City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 13 IX. Findings The purpose of this benchmarking study was to provide answers to the following questions: Why are CPAU water rates higher than other neighboring utilities? As a precursor to answering this question, it is important to distinguish between the components of the rates, some of which are not higher in Palo Alto when compared to the members in the group. Palo Alto’s highest residential and non-residential volume charges are lower than Mountain View’s and Redwood City’s. Moreover, all of Palo Alto’s service charges are lower than the average. It is also important to distinguish between rates and bills. The City’s residential volume rates are generally higher; however, based on assumptions about the size of the connection and average monthly water consumption at each agency, customer bills vary. Water bills for low-use residential customers compared to the average are only slightly higher. Water bills for high-use residential customers are lower in Palo Alto than in Mountain View and Redwood City, but higher than the other agencies. For the average residential customer, it is true that Palo Alto’s bills are higher than the average for the group. Part of the reason is due to Palo Alto’s rates and part is due to Palo Alto’s average water use. The following benchmarks help explain why Palo Alto’s rates are generally higher than average: 1) Palo Alto puts more staff resources and capital into maintaining and replacing its older facilities. 2) Palo Alto’s population and water sales are below average. Economies of scale are greater for other members of the group. 3) Palo Alto’s service area is more broadly spread with more pumping zones. Sparser development in hillier terrain is more expensive to serve because of the cost of constructing the infrastructure and the cost of O&M, particularly pumping. 4) Palo Alto experiences more seasonal variation in its demand, which requires a higher level of operating capability, particularly in operating pumping, storage, SCADA, and water quality monitoring equipment. 5) Palo Alto provides a higher quality of service based on the lower number of complaints received and system outages. 6) Palo Alto’s cost of water supplies is higher compared to some of the agencies that purchase water from SCVWD, pump groundwater, and use recycled water. 7) Palo Alto’s utility pays rent for land occupied by water facilities. Some other cities have similar, lower charges. How does the CPAU water utility budget compare with other neighboring utilities? The CPAU budget for FY 2009 is 20% above average in total dollars and 32% above average when measured in terms of dollars per account. O&M and debt service are a City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 14 greater percentage of Palo Alto’s budget than average but its cost of purchased water is smaller portion of the budget than average. What qualitative and quantitative information explains the differences in major cost categories (e.g., water purchase costs, operations costs, staff costs, capital costs (past, present, and projected), transfers out)? This question raises a number of specific points: 1) Water purchase costs – Palo Alto is currently almost entirely reliant on the SFPUC for its water supply, with no less expensive options used at present (e.g., local wells or treated water from the SCVWD). The SFPUC’s cost of water will increase steeply in the next few years before leveling off. Palo Alto has set its rates to generate reserves in anticipation of increases in the cost of water among other cost increases. Palo Alto also does not use significant amounts of groundwater, which is significantly cheaper than SFPUC water. In addition, agencies, including Palo Alto, supplement their supplies with recycled water, the full cost of which may not be included in their water utility budgets. 8 2) Operating costs – Palo Alto’s operating costs are somewhat higher than average, which is consistent with the higher level of service that appears to be provided and the Palo Alto’s lower economy of scale. 3) Staff costs – Our reconnaissance level analysis indicates that while salary costs are comparable to other members of the group, Palo Alto attributes a larger number of staff to its water utility. As a result, Palo Alto may have higher salary costs, although a careful review of direct and allocated staff should be conducted to confirm this9 4) Capital costs (past, present, and projected) – Palo Alto has invested in facilities and programs to improve its water use efficiency and reliability. By doing so, Palo Alto has a greater margin of safety during supply shortages. It is possible in the future that Palo Alto will be able to offset some of this investment with revenue from the lease of its unused SFPUC entitlement to other BAWSCA members. . 5) Transfers out – Very little information was available about transfers out (or in) to the general fund, reserves, or other enterprises. Further analysis should look at transfers to determine (1) the types of transfers that are made within each water utility (e.g., to operating and capital reserves, (2) the minimum and target balance for each reserve within each water utility, and (3) the types of transfers made outside each water utility. 8 More expensive recycled water is used on the golf course and Greer Park. 9 Subsequent inquiries have revealed CPAU has larger number of directly assigned staff. Other utilities tend to have staff residing in the general fund and then the cost is allocated to the water utility. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 15 Summarizing the key points from the benchmark categories in this report adds to the answer: Benchmark Category Key Findings Service Area and Infrastructure • Hillier topography, sparser development, and drier, hotter climate. • Capital investment is above average. • Smaller size has lower economies of scale. Water Use • Single-family use is near average • CII use is above average. • Overall use is average. Operations and Maintenance • Fully staffed for meter reading, customer service, design. • Higher peak flows. • Less storage and more pumping. Quality of Service • Fewer taste, odor, and pressure complaints. • Fewer service interruptions. Financial • Higher current O&M expenses. • Higher historic and projected capital expenses. • Rents charged for land occupied by water utility These findings indicate reasons for why Palo Alto’s costs are higher and its quality of service is superior. How do the neighboring utilities compare with respect to the state of their respective utility infrastructures, emergency preparedness, and reliability? Palo Alto plans to replace its water utility infrastructure within the average service lives of the facilities. Palo Alto has the oldest infrastructure of those agencies for which data were available, with younger/recent growth cities having relatively new infrastructure. All agencies are focused on replacing old infrastructure, with Palo Alto having one of the more aggressive capital improvement programs. In some cases, agencies are or will be converting their customer meters to automated reading technology. The overall effect is an increased level of capital improvements that will be funded from a combination of debt and cash. All of the members of the group provide emergency contacts at all times. All agencies have on-call crews that allow for quick responses to leaks. Another measure of emergency preparedness is evidenced by the amount of daily storage that is available; Palo Alto’s is below average but is constructing more. Palo Alto’s incidence of main breaks, leaks, and outages is below average, which is further evidence of reliability. What are CPAU customers getting for the extra money collected for water utility services? The average residential customer is paying $16.95 or 28% more per month in Palo Alto compared with other members of the group. Part of the reason is due to the higher use by Palo Alto’s average customer: Palo Alto residents pay more for more water. In addition to providing an above-average quantity of water, there are indications that Palo Alto provides an above-average quality of service based on below- average complaints and that Palo Alto’s facilities are in above-average repair. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 16 Determining whether the above-average cost is commensurate with an above-average level of service can be approached in various ways. For example, contingent valuation techniques could be used to poll customers to find out if they would be willing to pay a specified amount less for a specified lower level of service. Customers could also be surveyed to determine their satisfaction level, as has been done by the City for the past seven years. The most recent Service Efforts and Achievements Report notes: Operating expense for the water utility totaled $19.4 million, including $8.4 million in water purchases (26% more than five years ago). The average residential water bill has increased 27% over the five-year period. Average residential water usage per capita is down 9% from five years ago. 81% of surveyed residents rate water quality as good or excellent.10 At a point when costs are climbing and demand is declining, Palo Alto’s rate payers express a commendable level of satisfaction. X. Concluding Remarks and Possible Next Steps The City is one of a few California cities that provides a broad range of utility services. In actively seeking to improve its services, the City continuously compares itself with other municipalities. The present benchmarking study is the latest of such efforts. This study focused on the City’s water utility, which the City’s previous studies identified as having comparatively high rates. Comments received on the draft report noted areas where additional work may be required to completely answer certain questions, to provide greater detail, and to further support conclusions. The following are some examples of these comments: • Water losses – The low water losses reported in this study came from the most recent published sources. City staff is aware that meter inaccuracy in the SFPUC’s master meters is the primary cause for the low losses. Additional work is needed to resolve this discrepancy. In addition to reviewing the underlying meter data, meter calibration and replacement programs could also be compared among the survey group. • Reserves – Rates generate revenue not only for current cash flow but also to fund operating, capital, and other reserves. Palo Alto has set its rates in anticipation of increases in the SFPUC’s cost of water and other cost increases that may exceed what has been done by other members in the group. Additional work is needed to compare information on the types of reserves, fund balances, target balances, and annual contributions to reserves. • Non-rate revenue - This report notes that revenue from other non-rate sources such as connection fees may provide funding for other agencies that helps hold their rates down. Additional work is needed to determine how differences in non-rate revenue among the survey group accounts for differences in rates. 10 Service Efforts and Accomplishments Report. City of Palo Alto. December 14, 2009. Page v. City of Palo Alto Water Utility Benchmarking Study HF&H Consultants, LLC September 21, 2010 17 • Confirmation - This report relies on our interpretation of information that should be confirmed by each member in the survey group. All of the data in the appendix could be submitted to each member for review and confirmation. • Timeframe – It should be recognized that the analysis is sensitive to the timeframe for which data were available. Using data for another timeframe could lead to different findings. A more detailed investigation would use data from multiple years, rather than for a snapshot of the most recent year (which varied by benchmark and by agency), in order to spot any trends and to take short-term anomalies out of the evaluation. The conclusions reached in the current study could change if additional information were available or time were available to confirm that our interpretation of data is correct. Moreover, it should be recognized that the analysis is sensitive to the timeframe for which data were available. Using data for another timeframe could lead to different findings. HFH Consultants, LLC 9/22/2010 1 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 1. BENCHMARKS Benchmark Palo Alto Redwood City Mountain View Milpitas Hayward Santa Clara CWS Bear Gulch Mean Palo Alto vs. Mean High Low Population 63,400 83,895 74,762 70,817 150,878 117,242 57,108 88,300 -28%150,878 57,108 Surface area (square miles) 26.0 35.0 12.0 13.6 62.5 19.3 45.3 31 -15%63 12 Water deliveries (million gallons per day) 12.3 10.4 11.4 11.2 18.6 22.2 13.1 Service area characteristics Population 63,400 83,895 74,762 70,817 150,878 117,242 57,108 88,300 -28%150,878 57,108 Population growth over last ten years 8.6%1.1%-1.7%8.9%17.9%14.4%8.2%4%17.9%-1.7% Accounts 19,443 23,110 17,229 16,463 32,382 25,481 18,329 21,777 -11%32,382 16,463 Surface area (square miles) 26.0 35.0 12.0 13.6 62.5 19.3 45.3 30.5 -15%62.5 12.0 Residents per square mile 2,438 2,397 6,230 5,207 2,414 6,075 1,261 3,717 -34%6,230 1,261 Accounts per square mile 748 660 1,436 1,211 518 1,320 405 900 -17%1,436 405 Average Temperature (deg F)58.0 59.2 58.0 48.6 58.9 59.0 57.0 2%59.2 48.6 Average annual precipitation (in) 15.37 19.81 15.80 15.04 18.03 14.03 16.35 -6%19.81 14.03 Infrastructure Miles of distribution mains 219 265 175 203 350 295 324 262 -16%350 175 Accounts per mile of main 89 87 98 81 93 86 57 84 5%98 57 Miles of main per square mile 8.42 7.57 14.58 14.93 5.60 15.28 7.15 10.51 -20%15.28 5.60 Average age of distribution mains (years)61 33 45 43 45 34%61 33 Capital Assets (net book value) Capital assets per account $3,288 $4,345 $2,279 $2,385 $1,541 $2,672 $5,087 $3,085 7%$5,087 $1,541 Capital assets per hcf $10.65 $19.73 $7.08 $7.18 $5.51 $6.27 $14.54 $10.14 5%$19.73 $5.51 Capital assets per square mile $2,458,500 $2,869,170 $3,271,835 $2,886,913 $798,273 $3,528,231 $2,058,424 $2,553,050 -4%$3,528,231 $798,273 Water use characteristics Total water supply in mgd (incl losses)12.30 10.43 11.37 11.21 18.57 22.24 13.14 14.18 -13%22.24 10.43 Applied water over service area (feet)0.83 0.52 1.66 1.44 0.52 2.02 0.51 1.07 -23%2.02 0.51 Average flow per account (gpd) Single-family residential 345 260 241 276 234 323 645 332 4%645 234 Multi-family residential 748 1,183 1,249 673 2,521 935 2,963 1,467 -49%2,963 673 Commercial/Institutional/Industrial 2,061 1,125 1,450 2,136 1,474 3,210 1,039 1,785 15%3,210 1,039 Average 603 433 606 590 483 847 688 607 -1%847 433 Flow distribution by class Single-family residential 41.5%46.3%24.6%30.1%34.0%24.7%82.1%40.5%3%82.1%24.6% Multi-family residential 13.6%22.3%27.2%11.0%18.0%20.5%1.7%16.3%-17%27.2%1.7% Commercial/Institutional/Industrial 40.2%27.2%39.9%45.6%32.2%51.8%12.1%35.6%13%51.8%12.1% Subtotal 95.3%95.9%91.8%86.7%84.2%97.1%95.9%92.4%3%97.1%84.2% Losses 4.7%4.1%8.2%13.3%15.8%2.9%4.1%7.6%-38%15.8%2.9% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0% HFH Consultants, LLC 9/22/2010 2 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 1. BENCHMARKS Benchmark Palo Alto Redwood City Mountain View Milpitas Hayward Santa Clara CWS Bear Gulch Mean Palo Alto vs. Mean High Low Operations and maintenance Mgd per employee 0.28 0.34 0.32 0.36 0.49 0.36 -22%0.49 0.28 Accounts per employee 445 745 492 629 566 576 -23%745 445 Miles of main per O&M employee 8.4 17.7 12.5 10.6 14.2 12.7 -34%17.7 8.4 Mgd per O&M employee 0.47 0.70 0.81 0.56 1.07 0.72 -35%1.07 0.47 O&M employees as a percent of total employees 59%48%40%64%46%52%15%64%40% Load factors Peak month to average monthly demand 1.50 1.49 1.53 1.38 1.28 1.25 1.70 1.45 4%1.70 1.25 Peak month to minimum monthly demand 3.21 2.43 2.36 1.88 1.89 1.57 4.26 2.52 28%4.26 1.57 Mgd per booster pump station 2.05 1.04 2.24 2.65 0.22 1.64 25%2.65 0.22 Square miles per pressure zone 0.00 0.00 0.00 0.00 0.00 0.00 #DIV/0!- - Square miles per booster pump 0.00 0.00 0.00 0.00 0.00 0.00 #DIV/0!- - Days of Storage 0.85 2.04 1.50 1.45 1.51 1.23 0.84 1.35 -37%2.04 0.84 Gallons of potable storage per account 540 919 987 990 868 1,071 600 854 -37%1,071 540 Quality of service Complaints per total mgd Taste and Odor 0.49 1.32 0.45 0.05 0.94 0.81 -40%1.32 0.05 Color 1.22 1.14 0.80 0.48 0.40 1.01 20%1.22 0.40 Turbidity 0.33 1.50 0.54 0.00 0.04 0.60 -46%1.50 - Worms and other 0.16 0.00 0.00 0.00 0.00 0.04 300%0.16 - Pressure (High or Low)0.00 0.18 3.21 0.00 0.00 0.85 -100%3.21 - Other 0.00 2.99 0.00 1.83 0.09 1.23 -100%2.99 - Total 2.20 7.12 4.99 2.37 1.48 4.54 -52%7.12 1.48 Breaks, leaks, outages per mile of main Per mgd 3.66 1.41 11.33 6.09 4.00 6.62 -45%11.33 1.41 Per mile of main 0.21 0.09 0.63 0.32 0.30 0.39 -47%0.63 0.09 Expenses Total expenses (excl non-oper revenue)$25,903,000 $22,171,090 $17,762,098 $17,006,605 $27,088,382 $21,945,000 $18,961,329 $21,548,215 20%$27,088,382 $17,006,605 Budgeted expenses per account $1,332 $959 $1,031 $1,033 $837 $861 $1,034 $1,013 32%$1,332 $837 Operations O&M cost per account $338 $444 $381 $247 $150 $192 $267 $288 17%$444 $150 Salary and benefits per employee $123,822 $143,833 $112,442 $96,667 $119,191 4%$143,833 $96,667 Average cost of purchased water ($/hcf)$0.17 $0.15 $0.16 $0.16 $0.16 $0.12 $0.15 $0.15 12%$0.17 $0.12 Cost of purchased water as % of total budget 40%34%51%51%55%58%51%49%-18%58%34% Recent Annual CIP (within last 10 years)$4,100,000 $2,000,000 $4,400,000 $750,000 $4,000,000 $2,300,000 $2,925,000 40%$4,400,000 $750,000 Current Annual Capital Improvements Annual CIP expense $6,298,750 $3,200,000 $3,420,000 $6,085,000 $2,125,000 $5,467,600 $4,432,725 42%$6,298,750 $2,125,000 Annual CIP expense per account $324 $138 $199 $370 $66 $215 $218 48%$370 $66 Annual CIP expense per hcf $1.05 $0.63 $0.62 $1.11 $0.23 $0.50 $0.69 52%$1.11 $0.23 Annual CIP expense per employee $144,136 $103,226 $97,714 $41,262 $121,502 $101,568 42%$144,136 $41,262 Annual CIP expense per mile of main $28,761 $12,075 $19,543 $29,975 $6,071 $18,534 $19,160 50%$29,975 $6,071 Annual CIP expense compared to depreciation 538%168%207%442%108%558%337%60%558%108% Debt service as a percent of total budget 14%4%3%7%100%14%3% Debt service, per account $184 $37 $28 $83 122%$184 $28 Rent as a percent of expenses 7%0%0%0%8%5%0%3%148%8%0% HFH Consultants, LLC 9/22/2010 3 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 1. BENCHMARKS Benchmark Palo Alto Redwood City Mountain View Milpitas Hayward Santa Clara CWS Bear Gulch Mean Palo Alto vs. Mean High Low Revenues Total annual revenue per account $1,489 $1,140 $1,069 $961 $859 $892 $1,348 $1,108 34%$1,489 $859 Connection fee revenue as a percent of rate rev 2.4%0.5%0.1%0.0%8.3%0.5%0.0%2%42%8%0% Connection fees per 3/4" connection $3,600 $1,787 $4,620 $1,910 $5,726 $5,305 $3,825 -6%$5,726 $1,787 Rates Structures - - Quantity charge price signal - residential - - Number of tiers 2.00 4 3 2 4 1 3 2.71 -26%4.00 1.00 Slope of tiers from lowest to highest ($/hcf)$0.239 $0.093 $0.205 $0.098 $0.029 $0.000 $0.026 $0.098 143%$0.239 $0.000 Ratio of top tier to lowest tier 1.42 2.93 4.09 2.10 1.60 1.00 1.26 2.06 -31%4.09 1.00 Quantity charge price signal - non-residential Number of tiers 1.00 2 3 1 2 1 1 1.57 -36%3.00 1.00 Slope of tiers from lowest to highest ($/hcf)$0.000 $0.129 $0.017 $0.000 $0.003 $0.000 $0.000 $0.021 -100%$0.129 $0.000 Ratio of top tier to lowest tier 1.00 1.63 1.99 1.00 0.90 1.00 1.00 1.22 -18%1.99 0.90 Service charge structure Service charge multipliers For 5/8 inch meter $5.00 $18.02 $5.60 $22.41 $9.00 $8.40 $12.45 $11.55 -57%$22.41 $5.00 For 3/4 inch meter $5.00 $27.03 $5.60 $23.82 $12.20 $8.40 $18.69 $14.39 -65%$27.03 $5.00 For 1 inch meter $6.50 $45.05 $11.20 $33.83 $18.50 $13.40 $24.20 $21.81 -70%$45.05 $6.50 For 1 1/2 inch meter $12.27 $90.10 $18.20 $42.67 $40.60 $24.20 $35.74 $37.68 -67%$90.10 $12.27 For 2 inch meter $19.37 $144.15 $33.90 $55.69 $71.40 $34.10 $54.13 $58.96 -67%$144.15 $19.37 For 3 inch meter $77.65 $270.29 $58.70 $149.09 $180.20 $96.60 $116.42 $135.56 -43%$270.29 $58.70 For 4 inch meter $130.60 $450.49 $92.25 $188.93 $357.00 $134.20 $204.26 $222.53 -41%$450.49 $92.25 For 6 inch meter $260.43 $900.97 $184.70 $288.32 $629.80 $263.90 $352.33 $411.49 -37%$900.97 $184.70 For 8 inch meter $383.67 $900.97 $294.05 $377.74 $871.80 $403.70 $996.05 $604.00 -36%$996.05 $294.05 HFH Consultants, LLC 9/22/2010 4 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 1. BENCHMARKS Benchmark Palo Alto Redwood City Mountain View Milpitas Hayward Santa Clara CWS Bear Gulch Mean Palo Alto vs. Mean High Low Average monthly bills Single-family residential - average Monthly consumption (hcf)14 10 10 11 9 13 26 13 4%26 9 Monthly quantity charge $72.64 $27.05 $28.81 $21.24 $30.00 $38.36 $105.96 $46.29 57%$105.96 $21.24 Service: 3/4"$5.00 $27.03 $5.60 $23.82 $12.20 $8.40 $18.69 $14.39 -65%$27.03 $5.00 Total $77.64 $54.08 $34.41 $45.06 $42.20 $46.76 $124.65 $60.69 28%$124.65 $34.41 Quantity charge portion 94%50%84%47%71%82%85%73%28%94%47% Annual SFR bills as percent of MHI 0.74%0.74%0.47%0.58%0.83%0.66%0.67%10%0.83%0.47% Single-family residential - half of average Monthly consumption (hcf)7 5 5 6 5 7 13 7 4%13 5 Monthly quantity charge $33.27 $14.40 $11.78 $21.24 $34.00 $19.18 $51.90 $26.54 25%$51.90 $11.78 Service: 3/4"$5.00 $27.03 $5.60 $23.82 $12.20 $8.40 $18.69 $14.39 -65%$27.03 $5.00 Total $38.27 $41.43 $17.38 $45.06 $46.20 $27.58 $70.59 $40.93 -7%$70.59 $17.38 Quantity charge portion 87%35%68%47%74%70%74%65%34%87%35% Single-family residential - two times average Monthly consumption (hcf)28 21 19 22 19 26 52 27 4%52 19 Monthly quantity charge $157.00 $60.60 $66.29 $50.28 $67.40 $73.98 $228.44 $100.57 56%$228.44 $50.28 Service: 3/4"$5.00 $27.03 $5.60 $23.82 $12.20 $8.40 $18.69 $14.39 -65%$27.03 $5.00 Total $162.00 $87.63 $71.89 $74.10 $79.60 $82.38 $247.13 $114.96 41%$247.13 $71.89 Quantity charge portion 97%69%92%68%85%90%92%85%14%97%68% - - Multi-family residential (1 1/2" meter)- - Monthly consumption (hcf)30 48 51 27 102 38 120 59 -49%119.81 27.21 Monthly quantity charge $104.73 -$14.67 $34.07 $21.24 $33.50 $38.36 $107.48 $46.39 126%107.48 (14.67) Service: 1 1/2"$12.27 $90.10 $18.20 $42.67 $40.60 $24.20 $35.74 $37.68 -67%90.10 12.27 Total $117.00 $75.43 $52.27 $63.91 $74.10 $62.56 $143.22 $84.07 39%143.22 52.27 Quantity charge portion 90%-19%65%33%45%61%75%50%79%0.90 (0.19) Commercial/Institutional/Industrial Monthly consumption (hcf)83 45 59 86 60 130 42 72 15%130 42 Monthly quantity charge $334.62 $290.50 $341.57 $349.00 $217.63 $132.54 $164.87 $261.53 28%$349.00 $132.54 Service: 3"$77.65 $270.29 $58.70 $157.45 $180.20 $96.60 $116.42 $136.76 -43%$270.29 $58.70 Total $412.27 $560.79 $400.27 $506.45 $397.83 $229.14 $281.29 $398.29 4%$560.79 $229.14 Quantity charge portion 81%52%85%69%55%58%59%65%24%85%52% HF Consultants, LLC 9/22/2010 1 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 2. RATE STRUCTURES AND BILLS Monthly Service Charge Resi Non-Resi For 5/8 inch meter $5.00 $18.02 $5.60 $22.41 $23.64 $9.00 $8.40 $12.45 For 3/4 inch meter $5.00 $27.03 $5.60 $23.82 $25.14 $12.20 $8.40 $18.69 For 1 inch meter $6.50 $45.05 $11.20 $33.83 $35.77 $18.50 $13.40 $24.20 For 1 1/2 inch meter $12.27 $90.10 $18.20 $42.67 $45.10 $40.60 $24.20 $35.74 For 2 inch meter $19.37 $144.15 $33.90 $55.69 $58.82 $71.40 $34.10 $54.13 For 3 inch meter $77.65 $270.29 $58.70 $149.09 $157.45 $180.20 $96.60 $116.42 For 4 inch meter $130.60 $450.49 $92.25 $188.93 $199.48 $357.00 $134.20 $204.26 For 6 inch meter $260.43 $900.97 $184.70 $288.32 $304.49 $629.80 $263.90 $352.33 For 8 inch meter $383.67 $900.97 $294.05 $377.74 $398.94 $871.80 $403.70 $996.05 For 10 inch meter $383.67 $900.97 $429.15 $546.80 $577.47 $1,050.40 $498.30 $1,431.82 For 12 inch meter $640.20 $2,054.36 For 14 inch meter $2,801.39 Residential Flow Charges, Per HCF, Per month Tier 1 0-7 $3.95 0-10 $2.40 0-3 $1.65 0-20 $1.77 0-8 $2.90 All Units $2.74 0-10 $3.65 Tier 2 7+$5.62 11-25 $3.05 4-25 $3.41 20+$3.72 9-25 $3.40 11-36 $3.86 Tier 3 26-50 $4.98 25+ $6.77 26-60 $4.25 36+$4.58 Tier 4 50+ $7.03 60+$4.65 Commercial Flow Charges, Per HCF, Per month Tier 1 All Units $4.95 0-15 $3.05 0-20 $3.41 All Units $4.04 0-200 $3.65 All Units $2.74 All Units $3.92 Tier 2 15+$4.98 21-200 $3.67 200+$4.20 Tier 3 200+$6.77 Tier 4 Bear GulchPalo Alto Redwood City Mountain View Milpitas Hayward Santa Clara HF Consultants, LLC 9/22/2010 1 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 3. SERVICE AREA CHARACTERISTICS Palo Alto Redwood City Mountain View Milpitas Hayward Santa Clara CWS Bear Gulch Service Area Characteristics Population [5]63,400 83,895 74,762 70,817 150,878 117,242 57,108 # of Households [4]28,291 29,301 33,680 19,376 48,561 44,729 Occupancy Per Household [4]2.33 2.65 2.29 3.54 3.13 2.63 Population, 1999 [5]58,400 83,000 76,025 65,000 128,000 102,500 65,830 10-year Population Increase 9%1%-2%9%18%14%-13% Median Household Income [1]126,741$ 88,163$ 88,637$ 93,531$ 60,689$ 85,571$ Average Temperature [3]58.0 59.2 58.0 48.6 58.9 59.0 Average annual precipitation (in) [3]15.37 19.81 15.80 15.04 18.03 14.03 Number of SFPUC Connections [5]5 13 6 4 4 2 8 Area size (square miles) [5]26.00 35.00 12.00 13.60 62.50 19.30 45.30 Number of Accounts [5] Single-family residential 14,804 18,616 11,620 12,232 27,001 17,005 16,723 Multi-family residential 2,243 1,969 2,476 1,839 1,327 4,883 76 Commercial/Institutional/Industrial 2,396 2,525 3,133 2,392 4,054 3,593 1,530 Total accounts 19,443 23,110 17,229 16,463 32,382 25,481 18,329 [1] American Community Survey, 2008 [3] 2005 Urban Water Management Plan (For each respective jurisdiction) [4] California Department of Finance, City/County Population and Housing Estimates, 1/1/2009 (Table 2, E-5) [5] BAWSCA 08-09 survey HF Consultants, LLC 9/22/2010 1 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 4. FACILITIES Palo Alto Redwood City Mountain View Milpitas Hayward Santa Clara CWS Bear Gulch Miles of Mains [5]219 265 175 203 350 295 324 Average age, years 61.00 33.00 44.70 43.10 Number of Booster Pump Stations [5]6 10 5 7 59 Number of Treatment Plants --1 Number of pressure zones [5]8 14 3 6 37 Age distribution of mains 0-10 years 8%4% 11-20 years 9%9% 21-30 years 5%10% 31-40 years 13%30% 41-50 years 38%25% 50-60 years 25%20%45% >70 years 2%2% 100%100% Storage Reservoirs Number reservoirs [5]6 12 2 5 6 7 35 Local Storage (mg) [5]10.5 21.24 17 16.3 28.1 27.3 11 Wells Number of wells 3 7 1 5 27 Capacity (gpm)3575 [5] BAWSCA 08-09 survey HF Consultants, LLC 9/22/2010 1 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 5. OPERATIONS Palo Alto Redwood City Mountain View Milpitas Hayward Santa Clara CWS Bear Gulch Employees Efficiency/Supply 3.00 3.00 3.00 1.00 Administrative 2.00 4.00 3.70 Engineering 7.00 2.00 4.50 Customer Service/Meter Reading 5.70 7.00 7.00 13.50 Other 2.00 14.00 15.00 O&M 26.00 15.00 14.00 33.00 20.80 Total (FTE)43.70 31.00 35.00 0.00 51.50 45.00 Sources of Supply [5] SFPUC 100%100%86%65%100%12%89% SCVWD 11%35%0%17%0% Local 3%0%0%71%11% Consumption by class (hcf) [5] Single-family residential 2,491,120 2,358,295 1,365,679 1,645,525 3,083,003 2,682,139 5,264,948 Multi-family residential 818,496 1,136,209 1,509,045 603,880 1,632,319 2,227,045 109,867 Commercial/Institutional/Industrial 2,409,832 1,385,607 2,216,207 2,493,279 2,916,640 5,627,166 775,960 Subtotal 5,719,448 4,880,111 5,090,931 4,742,684 7,631,962 10,536,350 6,150,775 Losses 281,893 210,903 457,025 728,091 1,428,455 316,566 262,269 Total 6,001,341 5,091,014 5,547,956 5,470,775 9,060,417 10,852,916 6,413,044 Losses as a percent of total supplies 4.7%4.1%8.2%13.3%15.8%2.9%4.1% Consumption by class (mgd) [5] Single-family residential 5.11 4.83 2.80 3.37 6.32 5.50 10.79 Multi-family residential 1.68 2.33 3.09 1.24 3.35 4.56 0.23 Commercial/Institutional/Industrial 4.94 2.84 4.54 5.11 5.98 11.53 1.59 Subtotal 11.72 10.00 10.43 9.72 15.64 21.59 12.61 Losses 0.58 0.43 0.94 1.49 2.93 0.65 0.54 Average Daily Demand (mgd) [5]12.30 10.43 11.37 11.21 18.57 22.24 13.14 [5] BAWSCA 08-09 survey, Table 4A HF Consultants, LLC 9/22/2010 1 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 6. FINANCIAL Palo Alto Redwood City Mountain View Milpitas Hayward Santa Clara CWS Bear Gulch Revenue from rates Quantity charge revenue 28,948,000$ 17,675,000$ 18,423,146$ 15,828,000$ 24,900,000$ 22,737,489$ 24,716,456$ Service charge revenue -$ 8,661,000$ -$ -$ 2,900,000$ -$ -$ Total rate revenue 28,948,000$ 26,336,000$ 18,423,146$ 15,828,000$ 27,800,000$ 22,737,489$ 24,716,456$ Non-Operating Revenue Non-Operating Revenue $334,000 $295,000 $417,000 $500,000 $264,387 Connection fee revenue $682,000 $120,000 $10,000 $2,300,000 $113,000 Interest Income $1,265,000 $744,887 PILOT (franchise fees, rent)$1,900,000 $0 $0 $2,180,000 $1,167,000 Total non-operating revenue $4,181,000 $1,159,887 $10,000 $417,000 $4,980,000 $1,280,000 $264,387 Expenses Salaries & Benefits $5,411,000 $4,458,810 $2,364,447 $5,790,743 $4,350,000 Operating & Maintenance Costs $6,563,000 $10,271,562 $6,561,190 $4,072,073 $4,846,550 $4,895,000 $4,886,474 Water Purchased $10,354,000 $7,440,718 $9,093,359 $8,722,000 $14,800,000 $12,700,000 $9,717,855 Administrative Expenses $1,474,449 $3,859,955 Transfers to the General Fund $0 $1,848,085 $741,518 Property and other taxes $497,045 Debt Service $3,575,000 $633,100 $0 $909,571 Total expenses $25,903,000 $22,171,090 $17,762,098 $17,006,605 $27,088,382 $21,945,000 $18,961,329 Net Revenue $7,226,000 $5,324,797 $671,048 ($761,605)$5,691,618 $2,072,489 $6,019,514 HF Consultants, LLC 9/22/2010 1 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 7. CAPITAL IMPROVEMENTS Palo Alto Redwood City Mountain View Milpitas Hayward Santa Clara CW Bear Gulch Main replacement Annual historical main replacement (feet)8,000 Annual projected main replacement (feet)15,840 Capital Assets [1]12,075,000$ 20,582,045$ 4,915,623$ 4,915,623$ 4,446,473$ 2,859,744$ 4,003,286$ Land And Construction in Progress 51,846,000$ 79,838,908$ 34,346,397$ 34,346,397$ 45,445,587$ 65,235,120$ 89,243,321$ Depreciable Assets 63,921,000$ 100,420,953$ 39,262,020$ 39,262,020$ 49,892,060$ 68,094,864$ 93,246,607$ Total capital assets (net book value)1,171,000$ 1,908,781$ 1,653,293$ 1,376,544$ 1,976,578$ 979,338$ 2,177,634$ Depreciation Expense [1]2.3%2.4%4.8%4.0%4.3%1.5%2.4% Depreciation as a percent of depreciable assets 44.3 41.8 20.8 25.0 23.0 66.6 41.0 Replacement cycle (years)$2,458,500 $2,869,170 $3,271,835 $2,886,913 $798,273 $3,528,231 $2,058,424 Capital assets (net book value) per square mile $10.65 $19.73 $7.08 $7.18 $5.51 $6.27 $14.54 Capital assets (net book value) per hcf $3,288 $4,345 $2,279 $2,385 $1,541 $2,672 $5,087 Capital Improvements $27,414,000 $3,200,000 $3,420,000 $5,300,000 $2,155,000 $2,513,000 Budgeted Capital Improvements $3,500,000 FY 04-05 $2,900,000 FY 05-06 FY 06-07 FY 07-08 $6,085,000 $2,000,000 FY 08-09 $27,414,000 $3,420,000 $2,000,000 FY 09-10 $8,173,000 $2,000,000 FY 10-11 $5,067,000 $2,000,000 $5,834,000 FY 11-12 $6,338,000 $2,000,000 $5,958,000 FY 12-13 $5,617,000 $2,000,000 $5,927,000 FY 13-14 $2,500,000 $6,463,000 FY 14-15 $2,500,000 $3,156,000 FY 15-16 $6,298,750 $3,200,000 $3,420,000 $6,085,000 $2,125,000 $5,467,600 [1] FY 2009 CAFR for each Jurisdiction, respectively HF Consultants, LLC 9/22/2010 1 Benchmark Matrix 7Sep10 v4 City of Palo Alto - Water Utility Benchmark Study 8. SERVICE QUALITY Palo Alto Redwood City Mountain View Milpitas Hayward Santa Clara CWS Bear Gulch Complaints Reported (1) Taste and Odor 6 15 5 1 21 Color 15 13 9 9 9 Turbidity 4 17 6 0 1 Worms and other 2 0 0 0 0 Pressure (High or Low)0 2 36 0 0 Illnesses (Waterborne)0 0 0 0 0 Other (Specify) (2)34 0 34 2 Total 27 0 81 56 44 33 0 System Problems (1) Service Connection Breaks/ Leaks 32 4 86 - Main Breaks/Leaks 13 12 27 89 Water Outages --2 0 - Boil Water Orders ---0 - Total 45 0 16 127 113 89 0 (1) From Report to the Drinking Water Program, 2008 (2) Santa Clara: hardness and entrained air. (2) Mountain View: fluoride, NHCL2, filtrations, particle, gasket degradation and testing. (2) Hayward: Air in Water and Solids 125 ATTACHMENT B EXCERPTED DRAFT MINUTES OF UTILITIES ADVISORY COMMISSION Meeting of October 6, 2010 ITEM 4: DISCUSSION: Water Benchmarking Study Senior Resource Planner Shiva Swaminathan presented the Water Benchmarking Study results to the UAC. Commissioner Keller asked about the City’s water losses and the relation to inaccurate master meter data. Staff explained that Palo Alto has both internal and external master meters and has requested that SFPUC calibrate its meter. Staff also explained that while the City’s losses were at an industry standard level, further study will be done to see if we can learn from Santa Clara which has low lost and unaccounted for levels. The Commissioners and staff discussed the anticipated water increases over the next few years (7-8% per year) and how these anticipated increases are communicated to the Council annually. Commissioner Melton also stated that every opportunity be taken to educate the Council about increasing water rates. Commissioner Cook asked if staff had looked at groundwater as an alternative source. Staff replied that this had been evaluated and ruled out because the sustainable yield from the groundwater, according to a consultant report, is only 500 acre-feet per year, or less than 5% of the City’s total usage. It can, however, use groundwater for emergencies and during a drought. 1 Comparison Agencies ATTACHMENT B 2 Statistical Information 2013 Consumption (in CCF) Population Single Family Per Account Multifamily Per Unit Nonresidential Palo Alto 66,368 2,442,016 160 741,684 69 1,913,692 Mountain View 77,839 1,338,585 111 1,376,460 80 2,250,719 Redwood City 80,875 2,252,558 119 825,507 75 1,500,632 Santa Clara 120,250 2,603,029 152 2,106,663 98 5,736,888 Hayward 151,582 2,913,392 105 1,300,217 75 2,964,826 3 Comparison Bases Per Square Mile basis Per CCF basis Per Customer Account basis Per Mile of Main basis Pros: Allows cost comparisons without being skewed by usage patterns or characteristics of the customer base. Helps highlight differences in system characteristics, such as higher density of development. Pros: Provides lowest common denominator for the costs underlying the volumetric rates. Pros: Shows financial impact on each customer account, allowing comparison between cities whose customers use different amounts of water on average. Pros: Allows comparison between differently sized cities based on system characteristics. Cons: Must account for large uninhabited areas within agency boundaries. (Excluded in this report, due to the help of Claire Lin, Summer Intern with the City of Palo Alto) Cons: Higher water consumption can result in lower rates with no change in costs, which can hide the underlying cost disparities. Cons: Difficult to compare multi- family and commercial customer classes on this basis, since multi-family and commercial accounts vary greatly in size and water use. Cons: Not all costs are related to pipeline maintenance. Differences in pipeline density can obscure underlying differences in operational costs. •All metrics are presented on per square mile of urban area basis to enable better comparisons between cities Comparison bases considered for this report 4 Water Consumption and Revenues Collected by Customer Class 49% 26% 48% 29% 40% 15% 29% 19% 23% 22% 36% 45% 33% 48% 38% 48% 27% 49% 25% 41% 15% 28% 18% 20% 18% 38% 45% 33% 55% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% PA MTV RC SC HW Single Family Revenues Multifamily Revenues Nonresidential Revenues Single Family Water Consumption Multifamily Water Consumption Nonresidential Water Consumption 5 Single Family Residential Customers Annual Bill $253 $61 $117 $82 $68 $260 $130 $231 $86 $126 $182 $90 $114 $77 $71 $45 $22 $40 $19 $22 $417 $234 $244 $212 $245 $1,157 $537 $747 $476 $532 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 PA MTV RC SC HW Distribution Capital Investment Distribution Operations (Non-Salary)Distribution Operations (Salary) Non-revenue Water Water 6 Multifamily Residential Customers Annual Bill $105 $45 $79 $55 $63 $108 $96 $156 $57 $111 $75 $67 $77 $51 $65 $45 $22 $40 $19 $22 $146 $168 $152 $134 $224 $480 $398 $505 $316 $486 $0 $100 $200 $300 $400 $500 $600 PA MTV RC SC HW Distribution Capital Investment Distribution Operations (Non-Salary)Distribution Operations (Salary) Non-revenue Water Water 7 Nonresidential Customers Annual Bill $1,070 $414 $753 $656 $337 $1,097 $885 $1,485 $684 $599 $767 $612 $735 $618 $352 $45 $22 $40 $19 $22 $1,905 $1,722 $1,789 $1,827 $1,303 $4,884 $3,655 $4,803 $3,804 $2,613 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 PA MTV RC SC HW Distribution Capital Investment Distribution Operations (Non-Salary)Distribution Operations (Salary) Non-revenue Water Water 8 Total Costs per Square Mile $728,723 $264,140 $493,984 $280,730 $211,016 $747,057 $565,444 $973,829 $293,061 $390,789 $522,762 $390,872 $481,866 $264,549 $220,705 $112,384 $60,925 $125,367 $43,272 $43,320 $1,328,659 $1,113,810 $1,199,339 $790,393 $830,317 $3,439,586 $2,395,192 $3,274,386 $1,672,005 $1,696,147 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 PA MTV RC SC HW Distribution Capital Investment Distribution Operations (Non-Salary)Distribution Operations (Salary) Non-revenue Water Water 9 Budgeted Capital Spending (FY 2009-2013) * Estimated based on total budgeted in CIP budgets $1,410,170 $634,930 $685,437 $254,740 $449,585 $1,634,686 $1,772,123 $226,214 $257,381 $362,308 $1,036,416 $287,849 $253,398 $445,472 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Palo Alto Mountain View Redwood City* Santa Clara Hayward* Distribution Supply Recycled Water Other 10 Total Cost per CCF $1.52 $0.62 $1.01 $0.47 $0.71 $1.56 $1.34 $1.98 $0.49 $1.32 $1.09 $0.92 $0.98 $0.44 $0.75 $3.00 $2.78 $2.70 $1.39 $2.95 $7.17 $5.67 $6.67 $2.79 $5.73 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 Palo Alto Mountain View Redwood City Santa Clara Hayward Distribution Capital Investment Distribution Operations (Non-Salary)Distribution Operations (Salary)Water* 11 Total Cost per Mile of Main $36,039 $18,415 $19,273 $15,428 $16,834 $36,945 $39,420 $37,994 $16,105 $31,175 $25,853 $27,250 $18,800 $14,538 $17,607 $5,558 $4,247 $4,891 $2,378 $3,456 $65,708 $77,650 $46,792 $43,436 $66,239 $170,103 $166,983 $127,751 $91,885 $135,310 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Palo Alto Mountain View Redwood City Santa Clara Hayward Distribution Capital Investment Distribution Operations (Non-Salary)Distribution Operations (Salary) Non-revenue Water Water 12 Total Cost per Connection $419 $184 $229 $207 $170 $429 $394 $452 $216 $315 $301 $272 $224 $195 $178 $65 $42 $58 $32 $35 $764 $776 $557 $582 $669 $1,977 $1,668 $1,521 $1,230 $1,367 $0 $500 $1,000 $1,500 $2,000 $2,500 Palo Alto Mountain View Redwood City Santa Clara Hayward Distribution Capital Investment Distribution Operations (Non-Salary)Distribution Operations (Salary) Non-revenue Water Water FINAL MINUTES Finance Committee Special Meeting Minutes 4/15/2014 FINANCE COMMITTEE FINAL EXCERPT Special Meeting Tuesday, April 15, 2014 5.Discussion of Water Utility Benchmarking Studies and Future Work Plan. Valerie Fong, Utilities Director noted the Agenda Item was for discussion only. Staff wished to inform the Finance Committee (Committee) regarding their plans to conduct additional studies. Committee input regarding topics to review would be appreciated. Lalo Perez, Director of Administrative Services and Chief Financial Officer added that the Committee requested Staff return with more information. Jon Abendschein, Senior Resource Manager reported that Staff provided summaries of two benchmarking studies conducted over the last few years. The first was a 2010 study that concluded in 2010. The study reviewed six comparison agencies and publicly available information and conducted interviews with staff at those utilities. The City had a higher replacement cost for facilities and higher Operations and Maintenance (O&M) costs because Palo Alto's facilities were substantially older than neighboring agencies' facilities. The consultant discussed the characteristics of the City's service territory and said Palo Alto was geographically spread out, it had more hilly terrain and was more seasonally varied. Those characteristics required a higher level of operating capability and higher expenses. The consultant noted a higher quality of service, for example, a lower number of outages and fewer complaints. The second survey was an organizational assessment focused on all Palo Alto utilities, which included a benchmarking study of Palo Alto Utilities against utilities nationwide. The second study also found higher O&M expenses. Palo Alto also had more Full Time Employees (FTE) per unit of water delivered than other utilities. The study cautioned that this measure was affected by the fact that the City directly allocated administrative FTEs to the Water Fund; whereas, other utilities utilized an indirect allocation. Staff also reviewed the Fiscal Year (FY) 2012 Bay Area Water Supply and Conservation Agency (BAWSCA) annual survey and FY 2012 financial statements for comparison cities. Palo Alto residents did have higher water use per capita than other BAWSCA agencies. Climate and property characteristics explained the higher usage. The City's older system ATTACHMENT C FINAL MINUTES Finance Committee Special Meeting Minutes 4/15/2014 resulted in higher O&M and Capital Improvement Program (CIP) expenses. Staff presented their preliminary analysis to the Utilities Advisory Commission (UAC), which recommended that Staff complete a more in- depth analysis. Over the summer Staff planned on performing an in-depth review of data from neighboring cities. The City's rates were higher than many comparison agencies because of the higher cost of Hetch Hetchy water. However, some comparison agencies also utilized Hetch Hetchy water. The question was why the City's costs were higher than the costs of comparison agencies who used Hetch Hetchy water. One explanation was that the City was delivering a higher level of service to its customers. Ideally Staff determined methods to modify costs such that rates were competitive with comparison agencies' rates. As much of the needed information was not public record, Staff had to rely on cooperation from neighboring agencies to obtain data. Garth Hall, Utilities Advisory Commissioner indicated the UAC agreed with the next steps that Staff identified and agreed that Staff was halfway through an important exercise. Palo Alto was known as having higher water rates. Substantive comparisons of these topics produced much needed information. Council Member Holman noted each comparison city was larger than Palo Alto in terms of population. It appeared as though the City was not comparing its utility with a comparable population. Mr. Abendschein explained that each utility was different, and the ones listed were the closest comparators to Palo Alto. Council Member Holman felt the City was making an argument that suited its purpose. Mr. Abendschein reported economy of scale was not the only factor in any of the benchmarking studies. There were many other factors discussed in the comparison of Palo Alto to other utilities. Council Member Holman requested clarification of the statement that Palo Alto experienced more seasonal variation in demand, which required a higher level of operating capability. Mr. Abendschein indicated Palo Alto lot sizes tended to be larger than in other cities, resulting in more seasonal irrigation. Council Member Holman interpreted seasonal variation as different weather. Seasonal variation did not seem logical when reviewing the comparison cities. Mr. Abendschein stated there was a great deal of hidden information in the FINAL MINUTES Finance Committee Special Meeting Minutes 4/15/2014 words seasonal variation. Seasonal variation included the peakier loads associated with larger lot sizes and slightly warmer and dryer microclimate for Palo Alto Council Member Holman requested Staff compare Palo Alto to entities that purchased water from Santa Clara Valley Water District. Palo Alto did have more FTEs per unit of water; however, Palo Alto provided very good utility services. She suggested Staff determine whether service would suffer if there were fewer FTEs. She was interested in a comparison of salary and benefit costs to other BAWSCA agencies. The next steps needed to include analysis of the allocation of costs between residential and non-residential customer classes. The presentation mentioned a cost comparison of BAWSCA agencies; however, she did not find a comparison related to allocation. Ms. Fong remarked that the presentation was an attempt to provide a broad overview. The Staff report indicated that Staff would ask that question. Council Member Burt inquired whether Staff intended to determine the degree to which direct allocation of administrative services affected the cost per unit delivered. Mr. Abendschein advised that was the ideal next step. Staff intended on performing that analysis to the extent that the information was available. Council Member Burt noted in the 2010 report that Palo Alto's percentage of lost and unaccounted for water aligned with the industry average of eight to nine percent; however, Santa Clara County's rate was extremely low. The 2010 benchmark study indicated that factor could be a significant cause for Santa Clara County's lower water rate. Mr. Abendschein agreed it could make some difference; however, there were many factors to consider. Council Member Burt did not believe a single factor would explain the entire rate difference. He asked if the purchase of water accounted for half of the City's costs. Mr. Abendschein indicated by 2020, water purchases would total approximately half of costs. Council Member Burt stated three to four percent of total cost was not insignificant but it could be 10 percent of the difference in cost. Mr. Abendschein recommended the Committee use caution regarding outliers and measurement quality. Ms. Fong reported Staff had some of the same questions as the Committee. FINAL MINUTES Finance Committee Special Meeting Minutes 4/15/2014 That was one question Staff wanted to investigate. Council Member Burt assumed the economics of recycling wastewater for irrigation had improved drastically and would become even more economical by 2020. He asked if Staff would analyze that as a factor in the City's higher water rates and whether use of recycled wastewater helped close the gap in rates. Ms. Fong was not sure a recycled water project was financially viable on its own. A recycled water project relied on grants. However, Staff said they would review use of recycled water as a factor. Council Member Burt recalled that the Santa Clara Valley Water District volunteered to participate in the City's recycled water project. The economics were going to be very different in 2020. He requested Staff include that as a topic for analysis. He wanted a clear explanation of the respective cost impacts of having storage for emergency water supply and serving the customers in the foothills area. Staff indicated costs were higher because the City had to store water. The report needed to state costs were higher because the City stored water for emergencies and other cities did not. That comparison was not provided either. He preferred Staff not utilize the table in the recent benchmarking study because the casual reader might misread the benchmark on net revenue and think it was a bragging point. With respect to the accelerated main replacement program, he asked if the rate of spending would need to continue or would it end once replacement was complete. Mr. Abendschein advised that the study of the distribution system would address the rate of replacement. Council Member Burt requested an explanation as to why Menlo Park or San Carlos were not utilized as comparators. Mr. Abendschein reported the 2010 benchmark study did include Menlo Park. Council Member Burt asked if Menlo Park would be included in the next evaluation and how the City compared in 2010. Mr. Abendschein would need to review the study to answer that question. Council Member Burt generally recollected that Palo Alto had higher rates than Menlo Park; yet, Palo Alto had a better economy of scale. Mr. Hall remarked that Palo Alto was more advanced than many other utilities in terms of pipe replacement programs. There was a general consensus among water utility professionals that cities had neglected replacement programs. When Staff began benchmarking, it would be helpful to have some type of assessment of where other cities were in terms of FINAL MINUTES Finance Committee Special Meeting Minutes 4/15/2014 replacement. Many utilities utilized bond financing for capital programs, while the City utilized cash. Council Member Burt believed the City needed to convey the value of line replacement to the community. Chair Berman inquired whether the Hayward designations of outer versus inner meant a more concentrated population in a smaller geographic area. Mr. Abendschein explained that a different set of rules applied to water utilities selling water outside their boundaries. Hayward essentially acted as a private water seller to people outside their service territory, and the utility charged those customers higher rates. Vice Mayor Kniss left the meeting at 9:23 P.M. City of Palo Alto (ID # 7806) City Council Staff Report Report Type: Action Items Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Southgate RPP Program Resolution Title: PUBLIC HEARING: Adoption of a Resolution for the Creation of a New Residential Preferential Parking (RPP) Program in the Southgate Neighborhood Bounded by Churchill Avenue, Caltrain Rail Corridor, Sequoia Avenue, and El Camino Real and Finding of Exemption From Review Under the California Environmental Quality Act (CEQA) Pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council conduct a public hearing and take the following action(s): 1. Adopt the resolution included in Attachment A to implement the Southgate Residential Preferential Parking (RPP) Program as a one-year pilot and direct staff to make corresponding changes to the RPP Administrative Guidelines; and 2. Find the program exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations. The Planning and Transportation Commission recommended this action on April 26, 2017. Executive Summary Beginning in early 2014, the City has been actively addressing parking and transportation challenges throughout the City using a multi-faceted approach focused on parking management, parking supply, and transportation demand management programs. Parking management strategies included the development of a city-wide Residential Preferential Parking (RPP) ordinance, which was adopted in December 2014, establishing procedures for establishment of individual neighborhood RPP programs. So far, the City has adopted neighborhood programs in residential areas surrounding Downtown and California Avenue. City of Palo Alto Page 2 On May 9, 2016, City Council directed staff to move forward with the implementation of an RPP program in the Southgate neighborhood. Since that time, staff reached out to staff of Palo Alto High School to discuss their contribution to parking intrusions in the neighborhood, added to the parking supply along El Camino Real, conducted a public meeting, worked with a small number of stakeholders, and conducted a neighborhood survey. Consistent with the positive response to the neighborhood survey, the attached draft resolution would establish an RPP district within the area bounded by Churchill Avenue, Caltrain Rail Corridor, Sequoia Avenue, and El Camino Real. Within that area, permits would be required to park any vehicle on-street in excess of two (2) hours between 8:00 a.m. and 5:00 p.m. Monday through Friday (except City holidays). All area households would be eligible for one (1) annual permit sticker free of charge and could purchase up to three (3) additional annual permit stickers at a cost of $50 each. Residents could also purchase up to two (2) transferable annual permit hangtags for $50 each and up to 50 transferable one-day permit hangtags per year for $5 each. The transferable permit hangtags may be used on any vehicle, including a visitor’s. There are only two businesses that Staff is aware of within the proposed RPP program area and employees of these businesses would be eligible to purchase transferable one-day permit hangtags for $5 and transferable six-month permit hangtags for $74.50 during the one-year pilot period. Discounted six-month permit hangtags would be available to low-income employees for $25 during the one-year pilot period. A maximum of 20 annual employee permits would be available under the Southgate RPP Program. If the program is made permanent by City Council after the initial pilot period, staff will likely recommend that the permit fees be set annually by the Municipal Fee Schedule. If the City Council approves the resolution, staff would initiate permit sales, arrange for installation of signs, and conduct outreach such that enforcement could begin around October 1, 2017. The program is envisioned as a one-year pilot, and adjustments could be made at the conclusion of the pilot based on experiences during that year. Background Per Palo Alto Municipal Code Chapter 10.50, residents may self-organize and request the formation of an RPP district in their neighborhood. The process, as outlined in the Ordinance, is as follows: 1. Residents must request a petition from the Planning and Community Environment Department. The petition includes a narrative portion and a signature form to demonstrate resident support. City of Palo Alto Page 3 2. The Director of Planning and Community Environment reviews all petitions received by March 31 of each year. 3. Following receipt of the petitions, Staff reviews and brings forward the complete petitions to the Planning and Transportation Commission for prioritization. (For this past year, the Planning and Transportation Commission provided feedback on prioritization at its April 27, 2016 meeting.) 4. After prioritization, Staff initiates work on the priority RPP program(s). The assumption has been that limited resources preclude the simultaneous processing of all requests (hence the need for prioritization). Staff’s work includes gathering additional information, community outreach, and stakeholder engagement. This process includes parking occupancy counts and a stakeholder process to develop a program that meets the needs of all parties as best as possible. 5. At the end of the community outreach and stakeholder engagement process, the City Attorney prepares a draft resolution(s) outlining the parameters of the new program(s). 6. Staff brings the proposed RPP program(s) to the Planning and Transportation Commission by the end of the same calendar year. The PTC reviews the draft resolution and makes recommendations to City Council regarding the new RPP program(s). 7. Following these steps, the City Council will hold a public hearing to review the proposed resolution and to adopt, modify, or reject the proposed RPP program(s). As of the March 31, 2016 petition deadline, staff had received a petition from the Southgate neighborhood. The petition included the area bounded by Churchill Avenue, Caltrain Rail Corridor, Sequoia Avenue, and El Camino Real. Residents noted the quality of life and general health safety and welfare of the residents of Southgate has been severely impacted by nonresident parking. Staff presented this petition, along with three others, to the Planning and Transportation Commission on April 27, 2016 for prioritization, as required in the city-wide RPP ordinance. The commission voted 5-0-2 for a motion that read: Council should find budget for all four [RPP programs], but to prioritize them that Evergreen [Park] and Southgate are top priority and that Crescent Park and Edgewood are secondary priorities. City Council Direction Staff presented the four RPP petitions and the recommendation of the Planning and Transportation Commission to City Council on May 9, 2016. On an 8-0 vote, with Councilmember Kniss not participating, City Council passed the following motion and directed staff to move forward with the Southgate RPP program: A. Direct the Finance Committee to identify a budget allocation for implementation City of Palo Alto Page 4 of Residential Preferential Parking Programs (RPP) for the Southgate and Evergreen Park Neighborhoods and attempt to align deployment of both RPP programs; and B. Implement an RPP in the Southgate neighborhood through a stakeholder process including looking at engineering, enforcement, and Transportation Demand Management (TDM) solutions with Palo Alto Unified School District (PAUSD) where appropriate; and C. Implement an RPP in Evergreen Park through a stakeholder process including parking management options and determining how many permits to be sold for low income workers as well as retail and personal service workers from the adjacent California Avenue district; and D. Recommend that the Crescent Park neighborhood be added to the Downtown RPP eligibility area and if the neighborhood is not annexed, the residents can come back as the third priority for a separate RPP; and E. Edgewood Plaza would be fourth priority; and F. Direct Staff to explore options including sharing permits so that low income workers as well as retail and personal service employees can afford permits. The staff report from this meeting is available at <http://www.cityofpaloalto.org/civicax/filebank/documents/52162>. The minutes from this meeting are available at <http://www.cityofpaloalto.org/civicax/filebank/documents/52738>. Public Outreach In the evening of July 28, 2016, Staff convened a community workshop at the PAUSD administration building to introduce the concept of the RPP program to neighborhood residents, property owners, and business owners. Staff presented information on the city-wide RPP ordinance, parameters of the existing Downtown RPP program and gathered feedback from attendees at a break-out session following the presentation. Many attendees disagreed with the workshop format and requested that future meetings include a group question and answer period immediately following the presentation. Feedback varied, but some of the key topics included: Availability and number of employee parking permits Category of business eligible for employee parking permits Hours of enforcement Requirements for transportation demand management Types and prices of resident parking permits Presentations and notes from the public meetings are available at http://paloalto.parkingguide.com/southgate-rpp-program/. City of Palo Alto Page 5 Survey of Residents and Property Owners On March 13, 2017, Staff mailed out 232 surveys to all residential properties and property owners within the proposed Southgate RPP Program area, which is bounded by the Caltrain railroad corridor to the east, the centerline of Churchill Avenue to the north, the southern edge of properties along the south side of Sequoia Avenue to the south, and the centerline of El Camino Real to the west. The surveys were due back to the City by the end of the day on March 31, 2017. As of March 31, Staff had received 128 returned surveys with 95 voting in favor of RPP implementation as described in the survey. The RPP program design elements included in the mail survey are listed below: • Permits would be required to park any vehicle on-street in excess of two (2) hours between 8:00 a.m. and 5:00 p.m. Monday through Friday (except City holidays). • All area households would be eligible for one (1) annual permit sticker free of charge and could purchase up to three (3) additional annual permit stickers at a cost of $50 each. Residents could also purchase up to two (2) transferable annual permit hangtags for $50 each, and up to 50 transferable one-day permit hangtags per year for $5 each. The transferable permit hangtags may be used on any vehicle, including a visitor’s. • Employees of businesses located within the area would be eligible to purchase transferable one-day permit hangtags for $5 and six-month transferable permits hangtags for $74.50. Discounted six-month permit hangtags would be available to low-income employees for $25. A maximum of 10 annual employee permits would be available in the Southgate RPP Program. The results of the mail surveys can be found in Table 1. Table 1: Results of Southgate RPP Program Mail Survey Total Mailed Total Returned Yes Response No Response Not Returned Yes Response Rate Southgate 232 128 95 33 104 74% Source: Palo Alto Planning & Community Environment, April 2017 Discussion Staff used the results of the initial data collection and community workshop to begin to draft the Southgate RPP Program structure. Important elements considered, included the following: What areas should be included in the RPP program area? During which hours should the RPP program be enforced? How should enforcement be accomplished? What types of resident parking permits should be issued, how much should they cost, and what quantity will each household be permitted to purchase? City of Palo Alto Page 6 Should employee motor vehicles be permitted to park on neighborhood streets? If so, how many should be permitted at one time? What types of employee parking permits should be issued, how much should they cost, and what quantity will be available? What types of businesses should be permitted to purchase employee permits? How should employee permits be allocated? Should employee parking permits be phased out over time? Should the RPP program include eligibility areas to the south and east or should it be assumed that these neighborhoods would be part of future RPP programs? District Boundaries & Zone Structure Staff recommends that the boundaries of the Southgate RPP Program be the Caltrain railroad corridor to the east, the centerline of Churchill Avenue to the north, the southern edge of properties along the south side of Sequoia Avenue to the south, and the centerline of El Camino Real to the west. All streets within these boundaries should be part of the Southgate RPP Program and all dwelling units, employees, and businesses within these boundaries should be eligible for parking permits. All existing parking restrictions within the Southgate area, with the exception of loading zones and areas where parking is prohibited for safety reasons, should be nullified and RPP restrictions put in place. A map of the proposed program area is included as Attachment B. Enforcement Hours Staff recommended that enforcement hours for the Southgate RPP Program be Monday through Friday from 8:00 am to 5:00 pm. This would mean that Southgate RPP parking permits would be required to park any motor vehicle on-street in excess of two (2) hours during these enforcement hours. Resident Parking Permits Staff recommends that all Southgate RPP Program dwelling units be eligible for one (1) annual permit sticker free of charge and up to three (3) additional annual permit stickers at a cost of $50 each during the one-year pilot period. Dwelling units would also be eligible for up to two (2) transferable annual permit hangtags for $50 each and up to 50 transferable one-day permit hangtags per year for $5 each during the one-year pilot period. The transferable permit hangtags may be used on any vehicle, including a visitor’s. As provided in Palo Alto Municipal Code section 10.50.100, individuals are not permitted to sell, rent, or lease any permit for any value or consideration. If the program is made permanent by City Council, staff will likely recommend that the permit fees be set annually by the Municipal Fee Schedule. Parking Occupancy and Supply City of Palo Alto Page 7 The parking occupancy surveys (Attachment E) in the Southgate neighborhood documented a total of 338 motor vehicles parked from 7:00 am to 9:00 am and a total supply of 478 on-street parking spaces. This represents a 71% morning occupancy rate. A total of 424 motor vehicles were parked on-street from 12:00 pm to 2:00 pm, representing an 89% lunch-time occupancy rate. From 5:00 pm to 7:00 pm, a total of 258 motor vehicles were parked on-street, representing a 54% evening occupancy rate. This clearly shows the impact of Palo Alto High School and PAUSD students, employees and visitors on the neighborhood parking supply. With a mid-day occupancy rate of over 85%, many blocks do not have any available on-street spaces during the lunch-time hours. Employee Parking Permits Employees of the two businesses located within the Southgate RPP Program would be eligible to purchase transferable one-day permit hangtags for $5 and six-month transferable permit hangtags for $74.50 during the one-year pilot period. Reduced-price six-month permit hangtags would be available to low-income employees for $25 during the one-year pilot period. A maximum of 20 six-month employee permits would be available in the Southgate RPP Program. Future permit fees would be set by the Municipal Fee Schedule and updated on an annual basis. If the program is made permanent by City Council, staff will likely recommend that the permit fees be set annually by the Municipal Fee Schedule. Eligibility Areas Staff does not recommend the establishment of Eligibility Areas for the Southgate RPP program. In the Downtown RPP area, Eligibility Areas are streets just outside of the designated RPP district that can administratively opt into the program when their blocks begin to experience increased parking occupancy. This allows the program to expand quickly to address spillover from the designated RPP district. Planning and Transportation Commission Summary The Planning and Transportation Commission (PTC) reviewed this item on April 26, 2017. The minutes for this are included in Attachment F. The PTC voted 6-1 to recommend approve of the RPP to Council. The dissenting commissioner actually supported the pilot RPP program for this neighborhood and cited a need to address parking congestion and challenges navigating neighborhood streets due to parking in the area. However, the commissioner expressed reservations with some of the data and parking survey results presented to the commission. Specifically, the parking occupancy survey occurred prior to implementation of infrastructure improvements in the area and modifications to the adjacent high school's parking permit program. Additionally, the threshold for residential occupancy was a discussion topic among the commission which some supported at 85% occupancy, while others suggested the standard should be lower in a residential neighborhood such as Southgate. The commission, however, unanimously supported the pilot program, though program implementation and questions regarding the data collection specifically was the reason for the one dissenting perspective. City of Palo Alto Page 8 Southgate RPP Resolution The draft Southgate RPP Program resolution is modeled after the Evergreen Park-Mayfield RPP Program resolution. It is included as Attachment A. Policy Implications: The following Comprehensive Plan goals, programs and policies are relevant to the implementation of the Evergreen Park-Mayfield RPP program: POLICY T-2: Consider economic, environmental, and social cost issues in local transportation decisions. POLICY T-45: Provide sufficient parking in the University Avenue/Downtown and California Avenue business districts to address long-range needs. PROGRAM T-50: Continue working with merchants, the Chamber of Commerce, neighbors, and a parking consultant to explore options for constructing new parking facilities or using existing parking more efficiently. PROGRAM T-51: Work with merchants to designate dedicated employee parking areas. POLICY T-46: Minimize the need for all-day employee parking facilities in the University Avenue/Downtown and California Avenue business districts and encourage short-term customer parking. POLICY T-47: Protect residential areas from the parking impacts of nearby business districts. PROGRAM T-52: Evaluate options to ensure maximum use of the City parking structures in the University Avenue/Downtown and California Avenue areas. PROGRAM T-53: Discourage parking facilities that would intrude into adjacent residential neighborhoods. City of Palo Alto Page 9 Resource Impact Costs associated with establishment of a new RPP district will include those associated with installing signs, ordering/printing permit stickers and hangtags, providing permit fulfilment through a website, associated customer service, and increased parking enforcement. Staff is working on an estimate of these costs, which will be available with any necessary contract amendments for the City Council’s consideration. Staff included an expense budget of $165,499 in the proposed Fiscal Year 2018 Operating Budget for Southgate RPP and $192,400 in the Fiscal Year 2018 Proposed Capital Budget in anticipation of the implementation of RPP districts. Staff anticipates this will be sufficient for the pilot program and will return to Council with an additional funding request as program elements are better defined if necessary. Timeline If the Council adopts the resolution, staff expects that the program could be in place and ready for enforcement around October 1, 2017. Environmental Review: This program is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the adoption and implementation of this program may have a significant effect on the environment and Section 15301 in that this proposed resolution will have a minor impact on existing facilities. Attachments: Attachment A - Draft Southgate RPP Program Resolution (PDF) Attachment B - Southgate RPP District Boundary (JPG) Attachment C - RPP Administrative Guidelines Approved 2017-03-01 (PDF) Attachment D - Citywide RPP Ordinance (PDF) Attachment E - Parking Occupancy Survey Maps (PDF) Attachment F: April 26, 2017 Draft PTC Minutes (PDF) NOT YET APPROVED 1 Resolution No. Resolution of the Council of the City of Palo Alto Establishing the Southgate Residential Preferential Parking District Under Chapter 10.050 of the Palo Alto Municipal Code and Rescinding Conflicting Parking Restrictions Within the RPP District R E C I T A L S A. California Vehicle Code Section 22507 authorizes the establishment, by city council action, of permit parking programs in residential neighborhoods for residents and other categories of parkers. B. On December 15, 2014 the Council adopted Ordinance No. 5294, adding Chapter 10.50 to Title 10 (Vehicles and Traffic) of the Palo Municipal Code. This Chapter establishes the city‐wide procedures for RPP Programs in the city. C. On May 9, 2016, the City Council directed city staff to implement a residential preferential parking program in the Southgate area. D. In July 2016, a stakeholders’ group comprised of Southgate residents met and made its recommendations to the City on the particular rules to be applied to the Southgate RPP Program. E. On April 26, 2017, the Planning and Transportation Commission held a public hearing to consider the proposed Southgate Residential Preferential Parking (RPP) Program. F. The Council desires to establish the area for the Southgate Residential Preferential Parking (RPP) Program pilot and to rescind existing parking restrictions that conflict with the restrictions established by this RPP district. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES, as follows: SECTION 1. Findings. The criteria set forth in Section 10.50.030 for designating a Residential Preferential Permit Zone have been met as follows: 1) That non‐resident vehicles do, or may, substantially interfere with the use of on‐street or alley parking spaces by neighborhood residents; 2) That the interference by the non‐resident vehicles occurs at regular and frequent intervals, either daily or weekly; 3) That the non‐resident vehicles parked in the area of the proposed district create traffic congestion, noise, or other disruption (including shortage of parking spaces for residents and their visitors) that disrupts neighborhood life; 4) Other alternative parking strategies are not feasible or practical. NOT YET APPROVED 2 SECTION 2. Trial Period. The Trial Period for the Southgate RPP Program shall be for one year, and reevaluated at that time. The RPP Program shall remain in force until the City Council takes action to extend, modify, or rescind. The City Council shall consider whether to make this RPP Program and its parking programs permanent, modify the Program and/or its parking regulations, or terminate it no later than September 30, 2018. SECTION 3. Hours and Days of Enforcement. The parking regulations shall be in effect Monday through Friday from 8:00 AM to 5:00 PM. During the regulated days and hours of enforcement, no person shall park a motor vehicle in the Southgate RPP Program area for more than two continuous hours, except for electric motor vehicles parked at an electric vehicle changing station, which shall be regulated by signage installed at the charging station. A vehicle lawfully displaying a Resident Parking Permit or an Employee Parking Permit shall be exempt from the two‐hour limit. Vehicles exempt from the parking regulations contained in Chapter 10.50 are exempt from this restriction. Outside of these enforcement hours, any motor vehicle may park in the Southgate RPP Program area, subject to other applicable parking regulations. SECTION 4. Parking Permits. A. Employee Parking Permits. The City may issue Employee Parking Permits for the use by employees working in the businesses located within the area identified in the Exhibit A Southgate RPP Program area map. Employee Parking Permits shall be subject to the following regulations: a. Duration. Employee Parking Permits will be available in the form of transferable six‐month hangtags and one‐day hangtags. b. Commuting Only. Employee Parking Permits are for the exclusive use by employees working for Southgate businesses while commuting to work. c. Maximum Number of Permits Issued. A maximum of 10 six‐month Employee Parking Permits will be available under the Southgate RPP Program. B. Resident Parking Permits. 1. Each dwelling unit within the Southgate RPP Program area may receive up to four (4) annual permit stickers as well as up to two (2) transferable annual permit hangtags. 2. Each dwelling unit within the Southgate RPP Program area may receive up to 50 transferable one‐day permit hangtags per year, which may be used on any vehicle including household visitor vehicles. C. Applicability. 1. The restrictions of the Southgate RPP Program, adopted by this resolution, shall apply to the city blocks identified in Table 1, which are meant to specify those areas visually represented in the Exhibit A Southgate RPP Program area map. NOT YET APPROVED 3 Table 1 STREET BLOCKS ENFORCED Castelleja Avenue 1500 and 1600 Churchill Avenue 0000 El Camino Real (service road) 1500 and 1600 Escobita Avenue 1500 and 1600 Madrono Avenue 1500 and 1600 Manzanita Avenue 200 and 300 Mariposa Avenue 1500 and 1600 Miramonte Avenue 100, 200, 300, 400 and 500 Portola Avenue 1500 and 1600 Sequoia Avenue 200, 300, and 400 SECTION 5. Other Matters. A. Cost of Parking Permits. During the initial trial period of one year the cost of Parking Permits shall be: a. Resident Parking Permits i. Resident Annual Sticker – First free; additional $50/each/year; ii. Resident Annual Hangtag – $50/each/year; iii. Resident One‐day Hangtag – $5/each. b. Employee Parking Permits 1. Employee Six‐month Hangtag – $74.50/each/six‐months; 2. Low‐income Reduced‐price Employee Six‐month Hangtag – $25/each/six‐months; 3. Employee One‐day Hangtag – $5/each. B. Future permit fees would be set by the Municipal Fee Schedule and updated on an annual basis. SECTION 6. CEQA. This resolution is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the adoption and implementation of this resolution may have a significant effect on the environment and Section 15301 in that this proposed resolution will have a minor impact on existing facilities. NOT YET APPROVED 4 SECTION 7. Effective Date. This resolution shall take effect immediately upon its passage. Enforcement shall commence, pursuant to Chapter 10.50 and the California Vehicle Code, when signage is posted. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Assistant City Attorney City Manager Director of Planning and Community Environment NOT YET APPROVED 5 EXHIBIT A   Version 3.0  City of Palo Alto  Residential Preferential Parking (RPP) Administrative Guidelines    Revised and Approved March 1, 2017      PURPOSE     The City of Palo Alto is committed to preserving the quality of life of its residential neighborhoods. On  December 2, 2014, City Council adopted a City‐wide Residential Preferential Parking (RPP) Ordinance  which allows any neighborhood within the City to petition for an RPP Program, where neighborhood  parking is regulated for non‐permit holders. Three documents govern the creation of an RPP Program in  the City of Palo Alto:  1. Chapter 10.50 of the Palo Alto Municipal Code, which outlines the criteria which must be met  and the process which must be taken for a residential neighborhood to initiate an RPP Program;  2. A neighborhood‐specific Resolution, which must be adopted by the City Council and outlines the  specific characteristics of the individual RPP Program;  3. The document within, “Residential Preferential Parking (RPP) Administrative Guidelines,” which  provides additional detail on RPP Program implementation. The Residential Preferential Parking  (RPP) Administrative Guidelines (Administrative Guidelines) may be modified by the Planning  and Community Environment Director, and provide detail on policies and procedures related to  RPP Programs.    All three documents work in concert to govern the development and operation of the City’s RPP  Programs, and all should be reviewed prior to an RPP Program’s initiation.    PARKING PERMIT POLICIES    Parking Permit Sales  RPP Program parking permits are sold online at www.cityofpaloalto.org/parking.      Resident Parking Permit Eligibility  The requirements to obtain a Resident Parking Permit are:    A completed application form (online) in the residents’ name and address.    A current DMV motor vehicle registration for each motor vehicle for which the applicant is  requesting a Resident Parking Permit.    Proof of residency/ownership in the resident’s/owner’s name reflecting the permit address in  the RPP Program area. Acceptable proof of residency shall be a driver’s license, the vehicle  registration, a utility bill, car insurance policy, lease agreement or a preprinted personal check  with the resident’s name and address.     Resident Parking Permit Types  The types of Resident Parking Permits available in an RPP Program are outlined in the specific RPP  Program Resolution. All Resident Parking Permit types may be used anywhere in the RPP Program area  noted on the parking permit itself. Use of a Resident Parking Permit outside of the designated RPP  Program area may result in a citation.   1. Annual Resident Parking Permit Stickers can be purchased by RPP Program area residents. These  are decals affixed to a specific motor vehicle and are not transferable between motor vehicles.    Version 3.0  Annual Resident Parking Permit Stickers are intended for use by the residents of a specific  property within the RPP Program area.  2. Annual Resident Parking Permit Hangtags can be purchased by RPP Program area residents for  guests. These are annual permits hung from the rear view mirror that may be used for a nanny,  baby‐sitter, caregiver, household employee, or other regular visitor to the property. Annual  Resident Parking Permit Hangtags must be purchased by the resident of the property and may  be transferred between motor vehicles.   3. Daily Resident Parking Permit Hangtags can be purchased by RPP Program area residents for  visitors. These are one‐day permits hung from the rear‐view mirror that may be used for events  or gatherings at a household. Daily permits must be purchased by a resident of the household  and are only valid for a single day use.    Employee Parking Permit Eligibility  All employees who work at a registered, code‐compliant business within an RPP Program area are  eligible to purchase Employee Parking Permits, unless otherwise restricted by the RPP Program  Resolution.  The City may immediately revoke all permits issued to businesses and employees at  businesses that are unregistered and/or operating in violation of the Palo Alto Municipal Code and/or  state and federal regulations.      The requirements to obtain a parking permit as an employee are:    Employed at a business within the RPP Program area and;   A completed application form (online) with the employee’s name and address;   A current DMV vehicle registration for each vehicle for which the applicant is requesting a  parking permit; and   Proof of employment at a business registered with the Palo Alto Business Registry in the  employee’s name, which includes an address within the RPP Program area. Acceptable proof of  employment shall be a paystub, W‐2 or letter from the employer.     Employee Parking Permit Types  The types of Employee Parking Permits available in an RPP Program are outlined in the specific RPP  Program Resolution. All Employee Parking Permit types may only be used in the Employee Parking Zone  noted on the parking permit itself. Use of an Employee Parking Permit outside of the designated  Employee Parking Zone may result in a citation.   1. Annual Employee Parking Permit Stickers are decals affixed to a specific motor vehicle and are  not transferable between motor vehicles.   2. Six‐month Employee Parking Permit Stickers are decals affixed to a specific motor vehicle and  are not transferable between motor vehicles.   3. Annual Employee Parking Permit Hangtags can be purchased for employees. These are annual  permits hung from the rear view mirror that may be transferred between motor vehicles.   4. Six‐month Employee Parking Permit Hangtags can be purchased for employees. These are six‐ month permits hung from the rear view mirror that may be transferred between motor vehicles.   5. Daily Employee Parking Permit Hangtags can be purchased for employees or visitors. These are  one‐day scratch‐off permits hung from the rear view mirror that may be transferred between  motor vehicles.  6. Contractor Permit Cards can be purchased by contractors working in the RPP Program area at  the Development Center. These are one‐week or one‐month permits placed on the passenger‐ side dashboard that are not transferable between motor vehicles.    Version 3.0  Reduced Price Employee Parking Permits  Certain employees may be eligible for a reduced‐price permit if they meet either of the income  requirements listed below. Proof of income must be provided at the time of purchase, and  information may be audited at any time by the City.  a. Option A: Employees who earn an annual income which is exactly or less than $50,000.  The City will evaluate this limit annually and adjust for inflation.  b. Option B: Employees who earn a pre‐tax hourly wage which is equal to or less than  double the governing city or state minimum wage (whichever is greater).     Submittal requirements provided for proof of income include: tax return, two consecutive wage  statements and/or a letter from employer.    Prorated Parking Permit Cost and Refunds  Annual and Six‐month Resident and Employee Parking Permit fees may be pro‐rated for purchase  midway through the permit period (i.e. 50% discount). Refunds will only be granted within the first half  of the permit period. The permit holder must remove the current RPP parking permit and return it to  Revenue Collections in order to qualify for a refund. If an employee with an Annual or Six‐month  Employee Parking Permit is terminated, the employer may transfer the remaining balance of the unused  permit to another employee by returning the original permit and transferring the balance of time to a  new one. The new permit will expire on the same date as the original permit.    Other Policies  1. The City of Palo Alto is not responsible for the loss of or damage to any vehicle or its contents.  2. Parking a motor vehicle unmoved longer than 72 consecutive hours on any City street is in  violation of PAMC 10.60.07(d). Parking permits shall not exempt motorists from this  requirement.   3. Resident Parking Permits may be issued only for passenger non‐commercial and passenger  commercial (i.e., SUVs, small pick‐up trucks, etc.) vehicles registered to residents residing within  the RPP program area. Vehicles defined as oversized by the City’s Oversized Vehicle Parking  ordinance, such as commercial trucks, boat trailers, RVs (camping trailers, motor homes, etc.),  trailers and work‐type commercial vehicles, including taxis and limousines, are not eligible for  Resident Parking Permits.   4. Temporary RPP parking permits can be printed online once an applicant has submitted payment  for a permit. The temporary RPP parking permit must be displayed on the front dashboard of  the motor vehicle.  5. The permit must be affixed on the outside of the rear windshield driver’s side lower left corner,  or left side of the bumper. Do not place your permit in any other location. Placing your permit in  another location or behind tinted windows shall invalidate your parking exemption.  6. RPP parking permits are not valid in any City parking garage or lot, and City‐issued garage or lot  permits are not valid in RPP program areas. RPP parking permits are only valid for the RPP  program area for which they are issued.  7. Possession of an RPP parking permit does not guarantee a parking space. It is understood that a  greater amount of parking permits may be issued than there are available on‐street parking  spaces. This may create an environment of natural competition for on‐street parking between  neighborhood residents and other permit holders.    Version 3.0  8. When obtaining a new motor vehicle, the permit holder must surrender the current valid RPP  parking permit to Revenue Collections in order to receive a new permit for the new vehicle. If  the permit does not come off intact, pieces will be accepted.  9. There is an RPP parking permit replacement fee of $10.00 for permits reissued for any reason  prior to the normal renewal period.  10. Any attempt to alter an RPP parking permit shall immediately render the permit invalid.     Exceptions for a Parking Permit Sticker   Company Cars – A Resident Parking Permit Sticker may be issued for residents who use company cars for  their primary motor vehicle. To obtain a permit, the person must be a legal resident within the RPP  program area who has a motor vehicle for his/her exclusive use and under his/her control where said  motor vehicle is registered to his/her employer and he/she presents a valid employee identification card  or other proof of employment that is approved by the Planning and Community Environment Director.    Leased Cars – A Resident Parking Permit Sticker may be issued for a resident who has a leased car.  To obtain a permit, the person must be a legal resident within the residential permit parking  area who has a motor vehicle registered to a vehicle‐leasing company and/or leased to the  resident’s employer, providing said vehicle is for the resident’s exclusive use and provides proof  or the lease agreement which is approved by the Planning and Community Environment Director.     The requirements to obtain a Resident Parking Permit Sticker for a company or leased car are:    A completed application form in the resident’s name and address.    A current DMV vehicle registration for each vehicle for which the applicant is requesting a  parking permit.    Proof of residency/ownership in the resident’s/owner’s name reflecting the permit address in  the permit area. Acceptable proof of residency shall be a driver’s license, the vehicle  registration, a utility bill, car insurance policy, lease agreement or a preprinted personal check  with the resident’s name and address.     Caregivers – Caregivers may be issued a Resident Parking Permit Sticker the address of the resident  receiving the care is within the RPP program area.     The requirements to obtain a Resident Parking Permit Sticker for a caregiver are:    A completed application form in both the resident’s and caregiver’s name and address.    A current DMV vehicle registration for each vehicle for which the applicant is requesting a  parking permit.    Proof of residency/ownership in the resident’s/owner’s name reflecting the permit address in  the permit area. Acceptable proof of residency shall be a utility bill, car insurance policy, lease  agreement or a preprinted personal check with the resident’s name and address.    A letter from the resident identifying the permit applicant as the caregiver.     Fine for Violations   The fine for violation of Chapter 10.50 of the Palo Alto Municipal Code is set within the City’s  Comprehensive Fee Schedule.    Misuse of RPP Parking Permits     Version 3.0  Any person selling, fraudulently using, reproducing or mutilating an RPP parking permit shall be guilty of  an infraction and shall be subject to a citation for each offense and the forfeiture of all parking permits  in conflict, or such other fine or penalty as the City Council may set by ordinance.    Neighborhood Support for RPP District Implementation  As outlined in the ordinance, the Planning and Community Environment Director may choose to conduct  a survey of a proposed neighborhood to determine whether support exists for the creation of a new RPP  program. The survey may be conducted either prior to the recommendation of a new RPP program to  Council, or during a trial period of the program, but before final implementation. The survey shall be  conducted electronically or by mail via USPS. Each residential unit with a separate mailing address will  be allowed one (1) vote either in favor or against the creation of a new RPP program. The recommended  threshold for the creation of a new RPP program is a vote of 70% of the returned surveys in favor of the  program, however the Planning and Community Environment Director may seek direction from City  Council regardless of the vote results.    Eligibility Areas  As outlined in the ordinance, the City Council may adopt a resolution identifying particular areas as RPP  Program Eligibility Areas. Following the identification of the RPP Program Eligibility Areas, residents  within these areas may petition the  Planning and Community Environment Director to be annexed into  an existing RPP program. The petition must include the following:  • A completed application form (online) including the residents’ names and addresses.   • A current DMV vehicle registration of each vehicle for which any RPP District parking permit had  previously been approved in the applicants’ names.    Upon the receipt of a petition that includes the above information for a simple majority, or 50%+1 of the  identified segment’s residential units, the Planning and Community Environment Director may choose to  conduct a survey of the proposed neighborhood to determine whether additional support exists for  annexation into the existing RPP District. The survey shall be conducted electronically or by mail via  USPS. Each residential unit with a separate mailing address will be allowed one (1) vote either in favor or  against the creation of a new RPP program. The recommended threshold for the creation of a new RPP  program is a vote of 70% of the returned surveys in favor of the program, however the Planning and  Community Environment Director may seek direction from City Council regardless of the vote results.  Approval of annexation for RPP Program Eligibility Areas may take effect without Council action.     Opt Out Procedures  Current residents in an existing RPP program area that no longer wish to participate in the RPP program  may petition to opt out between January 1st and March 31st of each year. The petition will be approved  at the discretion of the  Planning and Community Environment Director. The petition is available as a  standard form online, and must include the following:   A description of or map showing the proposed opt‐out area.   A completed application form (online) including the petitioners’ names and addresses.   A current DMV vehicle registration of each vehicle for which any RPP program parking permit  had previously been issued in the petitioners’ names.    Upon the receipt of a petition that includes the above information for a simple majority, or 50%+1 of the  opt‐out area’s residential units, the Planning and Community Environment Director may choose to  conduct a survey of the proposed opt‐out area residential units to determine whether the required  support exists for opting out of the RPP program. The survey shall be conducted electronically or by mail    Version 3.0  via USPS. Each residential unit with a separate mailing address will be allowed one (1) vote either in  favor or against the creation of a new RPP program. The recommended threshold for opting out of an  existing RPP program is a vote of 70% of the returned surveys in favor of opting out, however the  Planning and Community Environment Director may seek direction from City Council regardless of the  vote results.     Effective upon approval of the opt‐out petition, residential units within the opt‐out area will no longer  be entitled to obtain Resident Parking Permits for the respective RPP program. Approval of an opt‐out  petition does not exempt residents of the opt‐out area from RPP program parking regulations or any  other parking regulations. Also upon approval of the opt‐out petition, the Planning and Community  Environment Director shall provide written notice electronically or via USPS to all residential units  impacted by the opt‐out, including the effective date of the opt‐out, the expiration date of any  remaining valid parking permits, and contact information for further inquiries or concerns.      Parking Occupancy Study Requirements  During the course of new RPP program initiation, the Planning and Community Environment Director  will conduct parking occupancy studies for the proposed RPP program area and adjacent areas.  These studies will be conducted at various hours of the day and days of the week and be compared  to an inventory calculation to show percentages of occupancy by block face. Weekday studies  will not be conducted on Mondays, Fridays or holidays.         Version 3.0  Neighborhood Petition Form  City of Palo Alto Residential Parking Permit Program Request Form     The purpose of this form is to enable neighborhoods to request to be annexed to an existing Residential  Preferential Parking area or initiate a new Residential Preferential Parking Program in accordance with  the City of Palo Alto’s adopted Residential Parking Permit Program Policy and Procedures. This form  must be filled out in its entirety and submitted with any request to:     City of Palo Alto   Transportation Division  250 Hamilton Avenue, Floor 5  Palo Alto, CA 94301    Feel free to attach additional sheets containing pictures, occupancy maps, additional testimony or  additional text if the space provided is insufficient.     1. Requesting Individual’s Contact Information     Name: ____________________________________________   Address: ____________________________________________   Phone Number: _______________________________________   Email: _______________________________________       2. Please describe the nature of the overflow parking problem in your neighborhood.  1. What streets in your neighborhood do you feel are affected by overflow parking?   2. How often does the overflow occur?  3. Does the impact vary from month to month, or season to season?                          3. Can you identify a parking impact generator that is the cause of overflow parking in the  neighborhood? Are there any facilities (churches, schools, shopping centers, etc.) near this location  that generate a high concentration of vehicle and pedestrian traffic? Please list your understanding of  the causes:          Version 3.0      4. Please describe how a Residential Parking Permit Program will be able to eliminate or reduce  overflow parking impacting the neighborhood. Please include your suggestion for the boundary of the  program:                           5. Is there neighborhood support for submittal of this Residential Parking Permit Program application?  Have you contacted your HOA/Neighborhood Association?                    Version 3.0  Neighborhood Petition Form (Street by Street Basis)    THE UNDERSIGNED BELOW AGREE TO THE FOLLOWING:     1. All persons signing this petition do hereby certify that they reside on the following street, which is  being considered for residential preferential parking: ______________________________________     2. All persons signing this petition do hereby agree that the following contact person(s) represent the  neighborhood as facilitator(s) between the neighborhood residents and City of Palo Alto staff in matters  pertaining to this request:     Name: _________________________ Address: ___________________ Phone #: __________________   Name: _________________________ Address: ___________________ Phone #: __________________   Name: _________________________ Address: ___________________ Phone #: __________________     ONLY ONE SIGNATURE PER HOUSEHOLD    Name (Please Print)  Address  Phone Number  Signature   1.________________ _________________________ __________________ ___________________   2.________________ _________________________ __________________ ___________________   3.________________ _________________________ __________________ ___________________   4.________________ _________________________ __________________ ___________________   5.________________ _________________________ __________________ ___________________   6.________________ _________________________ __________________ ___________________   7.________________ _________________________ __________________ ___________________   8.________________ _________________________ __________________ ___________________   9.________________ _________________________ __________________ ___________________   10._______________ _________________________ __________________ ___________________   11._______________ _________________________ __________________ ___________________   12._______________ _________________________ __________________ ___________________   13._______________ _________________________ __________________ ___________________   14._______________ _________________________ __________________ ___________________   15._______________ _________________________ __________________ ___________________   16._______________ _________________________ __________________ ___________________   17._______________ _________________________ __________________ ___________________   18._______________ _________________________ __________________ ___________________   19._______________ _________________________ __________________ ___________________   20._______________ _________________________ __________________ ___________________  21._______________ _________________________ __________________ ___________________   22._______________ _________________________ __________________ ___________________   23._______________ _________________________ __________________ ___________________   24._______________ _________________________ __________________ ___________________  25._______________ _________________________ __________________ ___________________   26._______________ _________________________ __________________ ___________________   27._______________ _________________________ __________________ ___________________   28._______________ _________________________ __________________ ___________________  29._______________ _________________________ __________________ ___________________   30._______________ _________________________ __________________ ___________________   Ordinance No. 5294 Ordinance of the Council of the City of Palo Alto Amending Title 10 (Vehicles and Traffic) of the Palo Alto Municipal Code by Adding Chapter 10.50 (Residential Preferential Parking Districts) and Section 10.04.086 (Parking Enforcement Contractor) The City Council of the City of Palo Alto does 0 RDAIN as follows: Section 1. Chapter 10.50 (Residential Preferred Parking Districts) is hereby added to Title 10 (Vehicles and Traffic) of the Palo Alto Municipal Code to read as follows: Sections: RESIDENTIAL PREFERENTIAL PARKING DISTRICTS Purpose Definitions RFP Designation Criteria Initiation by City Council Initiation by Neighborhood Petition 10.50.010 10.50.020 10.50.030 10.50.040 10.50.050 10.50.060 10.50.070 10.50.080 10.50.090 10.50.100 Establishment of Residential Preferential Parking Districts Administration of Districts Annexation of New Areas to Existing Districts Modification or Termination of Districts Violations and Penalties 10.50.010 Purpose. Residential preferential parking districts are intended to restore and enhance the quality of life in residential neighborhoods by reducing the impact of parking associated with nearby businesses and institutional uses. The procedures and standards in this chapter are intended to provide flexibility so that the city council may adopt, after consultation with residents and neighboring businesses and institutions, parking programs that appropriately protect each neighborhood's unique characteristics. Residential preferential parking districts should be designed to accommodate non-residential parking when this can be done while meeting the parking availability standards determined by the city to be appropriate for the district in question. Residential preferential parking programs may be designed to reduce non-residential parking over time to give non-residential parkers time to find other modes of transportation or parking locations. 10.50.020 Definitions. The following words and phrases shall have the following meanings: 140826 jb 01312SOC 1 December 9, 2014 a) "Director" shall mean the director of planning and community environment. b) "Dwelling unit" shall mean a self-contained house, apartment, stock cooperative unit, or condominium unit occupied by a single household exclusively for residential purposes. These residential purposes may include lawful home occupations. c) "Employee permit" shall mean a permit issued to an employee working at a business located within an RPP District or as defined in an RPP district specific resolution. d) "Guest permit" shall mean a permit issued to a Resident on an annual basis for use by a person visiting a residence in an RPP District or for workers providing services such as caregiving, gardening, repair maintenance and construction, to the Resident. The number of Guest permits issued to Residents shall be specified in administrative regulations adopted by the Director. e) "Non-resident vehicle" shall mean a vehicle operated by a person whose destination is not to a residence within the Residential Preferential Parking District. f) "Resident" shall mean a natural person living in a dwelling unit in an RPP District. g) "Residential Preferential Parking District" or "RPP District" shall mean a geographical area in which the city council has established a preferential parking permit system pursuant to California Vehicle Code section 22507. h) "Visitor permit" shall mean a temporary 24-hour permit issued to a Resident for use by a person visiting a residence in an RPP District. 10.50.030 RPP Designation Criteria The council may designate an area as a Residential Preferential Parking District based upon the following criteria: (1) That non-resident vehicles do, or may, substantially interfere with the use of on-street or alley parking spaces by neighborhood residents; (2) That the interference by the non-resident vehicles occurs at regular and frequent intervals, either daily or weekly; (3) That the non-resident vehicles parked in the area of the proposed district create traffic congestion, noise, or other disruption (including shortage of parking spaces for residents and their visitors) that disrupts neighborhood life; ( 4) Other alternative parking strategies are not feasible or practical. 10.50.040 Initiation by City Council The city council may, by motion, initiate consideration of a RPP District by directing staff to undertake the analysis and outreach process set forth in Section · 10.50.0SO(d) and (e). 10.50.050 Initiation by Neighborhood Petition Residents may request the formation of an RPP District in their neighborhood. The request shall be made, and considered, in the following manner: (a) Form of Application. 140826 jb 0131250C 2 December 9, 2014 (1) The director shall establish a standard form for the application for the formation of a new RPP District, as well as a list of submittal requirements for use by interested residents. These requirements shall include a narrative describing the nature and perceived source of non-residential parking impact, as well as suggested district boundaries. The director shall also approve a standard form for use in demonstrating resident support for the application. (2) Residents shall initiate a request for establishment of an RPP District by neighborhood petition by completing the official application form. (3) Residents are encouraged to consult with the employers and employees thought to be the source of the parking impact as they develop their proposals. (b) Timing and Review of Applications. Each calendar year, the Director of Planning and Community Environment shall review all applications received prior to March 31st of that year to determine whether the RPP District criteria established in this Chapter are met. ( c) Prioritization of Applications. Applications determined by the Director to meet the criteria in paragraph (b) above shall be presented to the Planning and Transportation Commission. The commission shall review the requests and recommend to the director which proposal or proposals should be given priority for review and possible implementation in the current calendar year. In making its recommendations, the commission shall consider the severity of non-residential parking impact, the demonstrated level of neighborhood support, and the staff resources needed to process requests. ( d) Staff Review of Applications and Community Outreach. Once an application has been selected for council consideration during the current calendar year, staff shall promptly review the application, gather additional information and conduct a community outreach program. At a minimum the review process shall include the following: (1) The City shall complete parking occupancy studies to quantify the nature of the problem identified in the petition. Data shall be collected when schools in the Palo Alto Unified School District and Stanford University are in session, unless these institutions are irrelevant to the problem to be addressed. (2) Upon completion of the consultation and outreach process, the city attorney shall prepare a draft resolution containing the proposed boundaries and hours of enforcement. Staff shall undertake a survey of resident support within the RPP District. The results of this survey shall be included in and reported to the planning and transportation commission and the city council. ( e) Planning and Transportation Commission Review. Staff shall bring the proposed RPP District to the planning & transportation commission no later than September of the calendar year in which consideration began. The commission shall review the draft resolution at a noticed public hearing and make a recommendation to the city council regarding the RPP District. This recommendation may include 140826 jb 0131250C 3 December 9, 2014 proposed modifications of the boundaries. The commission's recommendation shall be forwarded to the city council no later than September 30th. 10.50.060 Establishment of Residential Preferential Parking Districts (a) Adoption of Resolution Establishing District. Following the completion of the procedures described in Section 10.50.050, the City Council shall hold a public hearing on a proposed resolution to establish the residential preferential parking district. The resolution may specify a trial period of up to two years. Any such trial period shall begin running after the signs have been posted and permits issued. The council may adopt, modify, or reject the proposed resolution. (b) Resolution. The resolution shall specify: (1) The findings that the criteria set forth in Section 10. 50.030 have been met. (2) The term of the trial period, if applicable. (3) The boundaries and name of the residential preferential parking district. The boundary map may also define areas which will become subject to the regulations of the residential preferential parking district in the future if the council approves a resident petition for annexation as provided in Section 10.50.080 below. ( 4) Hours and days of enforcement of parking regulations and other restrictions that shall be in effect for non-permit holders, such as two-hour parking limits, overnight parking limits, or "no re-parking" zones. (5) The number of permits, if any, to be issued to merchants or other non- residential users, which number may be scheduled to reduce over time. (6) Resident permit rates which are set by City Council policy will be uniform across each district. (7) Such other matters as the Council may deem necessary and desirable, including but not limited to fee rates and whether non-residential parking permits are allowed to be issued and transferred. ( c) Permanent Adoption. Before the expiration of the trial period, if applicable, the city council shall hold a noticed public hearing and determine whether the RPP District should be made permanent as originally adopted, modified or terminated. The council's action shall be in the form of a resolution. 10.50.070 Administration of Districts (a) Issuance and Fees. (1) No permit will be issued to any applicant until that applicant has paid all of his or her outstanding parking citations, including all civil penalties and related fees. (2) A residential parking permit may be issued for a motor vehicle if the following requirements are met: A. The applicant demonstrates that he or she is currently a resident of the area for which the permit is to be issued. 140826 jb 0131250C 4 December 9, 2014 B. The applicant demonstrates that he or she has ownership or continuing custody of the motor vehicle for which the permit is to be issued. C. Any motor vehicle to be issued a permit must have a vehicle registration indicating registration within the area for which the permit is to be issued. (3) Visitor or guest parking permits may be issued for those vehicles or to those individuals or households that qualify for those permits under the resolution establishing the RPP District. ( 4) Employee parking permits may be issued to those individuals and for those vehicles that qualify for such permits under the resolution establishing the RPP District. (b) No Guarantee of Availability of Parking. A parking permit shall not guarantee or reserve to the permit holder an on-street parking space within the designated residential preferential parking zone. ( c) Restrictions and Conditions. Each permit issued pursuant to this Section shall be subject to each and every condition and restriction set forth in this Chapter and as provided for in the resolution establishing the specific RPP District, as may be amended from time to time. The issuance of such permit shall not be construed to waive compliance with any other applicable parking law, regulation or ordinance. (d) Exemptions. The following vehicles are exempt from RPP District parking restrictions in this Chapter: · (1) A vehicle owned or operated by a public or private utility, when used in the course of business. (2) A vehicle owned or operated by a governmental agency, when used in the course of official government business. (3) A vehicle for which an authorized emergency vehicle permit has been issued by the Commissioner of the California Highway Patrol, when used in the course of business. ( 4) A vehicle parked or standing while actively delivering materials or freight. (5) A vehicle displaying an authorized exemption permit issued by the City of Palo Alto. (6) A vehicle displaying a State of California or military-issued disabled person placard or license plates. (7) A vehicle parked for the purpose of attending or participating in an event taking place at a school within the Palo Alto Unified School District or another event venue within the RPP District, provided that the vehicle is parked within two blocks of the venue, the venue has requested and received approval from the City at least fourteen days before the event date, and the venue distributes notices to all addresses within a two -block radius of the venue. The RPP District Resolution shall specify the covered venues and number of permitted events per year. (8) All vehicles are exempt from parking restrictions pursuant to this Chapter on the following holidays: January 1, July 4, Thanksgiving Day, and December 25. 140826 jb 0131250C 5 December 9, 2014 ( e) Authority of Staff a. The director is authorized to adopt administrative regulations that are consistent with the purposes of this Chapter. Prior to adoption the director shall conduct a noticed public meeting soliciting input on such guidelines. b. The Police Department or private parking enforcement contractor as approved by the Chief of Police shall have the authority to enforce the administrative regulations established pursuant to this Chapter. 10.50.080 Annexation of New Areas to Existing Districts Residents of any block may petition the director for annexation into a contiguous RPP District. The petition shall be on forms provided by the department. If the petition meets the criteria established in administrative regulations adopted by the director, a resolution annexing it to the RPP District shall be prepared by the city attorney and submitted to the city council, together with the director's recommendation on the proposed annexation. The city council may approve, deny, or modify the annexation. 10.50.090 Modification or Termination of Districts (a) Opting out. After final adoption of an RPP District, Residents may file an application with the director to opt out of the RPP District. The minimum number of blocks and percentage of units supporting the opt-out shall be specified by the director in the administrative guidelines. Applications for opting out shall be made in the form and manner prescribed by the director and shall be acted up on by the director. Any opt out application shall be filed within ninety (90) days after council adoption of the resolution establishing the RPP District. (b) Dissolution. The city council following a noticed public hearing may adopt a resolution dissolving the RPP District: (1) Upon receipt and verification of a petition signed by 50% or more of all the households within an approved RPP District boundary, or (2) Upon findings by the City Council that the criteria for designating the RPP District are no longer satisfied. 10.50.100 Violations and Penalties (a) No person shall park a vehicle adjacent to any curb in a residential preferential parking zone in violation of any posted or noticed prohibition or restriction, unless the person has a valid and current residential preferential parking permit, visitor permit, guest permit or employee permit for that vehicle, or is otherwise exempt. Violations of this sub-section shall be punishable by a civil penalty under Chapter 10.60.010. (b) No person shall sell, rent, or lease, or cause to be sold, rented, or leased for any value or consideration any RPP District parking permit, visitor permit or guest permit. Upon violation of this subsection, all permits issued to for the benefit of the 140826 jb 0131250C 6 December 9, 2014 dwelling unit or business establishment for which the sold, rented, or leased permit was authorized shall be void. Violation of this sub-section (b) shall be punishable as a n infraction. ( c) No person shall buy or otherwise acquire for value or use any RPP District parking permit, guest permit or visitor permit except as provided for in this chapter. Violation of this sub-section (c) shall be punishable as an infraction. SECTION 2. Section 10.04.086 (Parking Enforcement Contractor) of Title 10 (Vehicles and Traffic) of the Palo Alto Municipal Code is hereby added to read as .follows: 10.04.086 Parking Enforcement Contractor "Parking Enforcement Contractor" means any duly qualified company that the City has entered into a contract with and that has been approved by the Chief of Police to provide enforcement of Chapter 10.50 relating to Palo Alto Municipal Code infractions only in parking zones. Enforcement includes both the issuance and processing of citations for RPP District parking violations. SECTION 3. Section 10.08.015 (Authority of Parking Enforcement Contractor) of Title 10 (Vehicles and Traffic) of the Palo Alto Municipal Code is hereby added to read as follows: 10.08.015 Authority of Parking Enforcement Contractor The City may enter into a contract with a duly qualified company, approved by the Chief of Police, to provide enforcement of Chapter 10.50 relating to RPP District parking violations (as permissible by the Palo Alto Municipal Code). SECTION 4. Section 10.60.010 (Parking violations punishable as civil penalties) of Title 10 (Vehicles and Traffic) of the Palo Alto Municipal Code is amended to read as follows: 10.60.010 Parking Violations Punishable as Civil Penalties Except as otherwise provided, violations of any provision of Chapters 10.36, 10.40, 10.44, 10.46, aru:l 10.47. and 10.50 of this Title 10 (hereinafter referred to as a "parking violation") shall be punishable by a civil penalty (hereinafter referred to as a "parking penalty"). These parking penalties, together with any late payment penalties, administrative fees, and other related charges shall be established by ordinance or resolution of the city council. SECTION 5. CEQA. T~is ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuantto Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the adoption and implementation of this Ordinance may have 140826 jb 0131250C 7 December 9, 2014 a significant effect on the environment and Section 15301 in that this proposed ordinance will have a minor impact on existing facilities. SECTION 6. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable. SECTION 7. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: December 2, 2014 PASSED: December 15, 2014 AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID SHEPHERD NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ~ Interim City Clerk APPROVED: 140826 jb 01312SOC 8 December 9, 2014 Park Blvd El Camino Real Alma St Bryant St Emerson St El Camino Real Park Blvd Ash St Churchill Ave Birch St High St College Ave Gran t Ave Stanfo rd Av e Seale Ave Oxford Ave Cambridge Ave Castilleja Ave Lowell Ave Olmsted Rd Sherman Ave S California Ave Oregon Ave Kellogg Ave Leland A ve She ridan Ave Mariposa Ave Serra St Tennyson Ave Coleridge Ave N C alif ornia Ave Miramonte Ave Ramona St Madrono Ave Santa Rita Ave Rinconada Ave Escobita Ave Sequoia Ave Park A ve N els o n R d Portola Ave New Mayfi eld Ln Sam Mcdonald Rd Jacaranda Ln Nevada Ave Melville Ave Embarcadero Rd Park Blvd Emerson St Ash St Birch St Sheridan Ave Ramona St Oregon Expy High St W:\San Jose N Drive\Projects\_SJ16_Projects\SJ16_1668_Palo_Alto_On_Call\Graphics\GIS\MXD\AM_Occupancy.mxd City of Palo AltoSouthgate & Evergreen ParkAM Peak Parking Occupancy Rates AM (7-9 AM) Occupancy 0-49% Occupancy 50-84% Occupancy 85%+ Occupancy No Parking Anytime No Stopping Anytime Study Area NN.T.S. Data Collected May 24, 2016 Park Blvd El Camino Real Alma St Bryant St Emerson St El Camino Real Park Blvd Ash St Churchill Ave Birch St High St College Ave Gran t Ave Stanfo rd Av e Seale Ave Oxford Ave Cambridge Ave Castilleja Ave Lowell Ave Olmsted Rd Sherman Ave S California Ave Oregon Ave Kellogg Ave Leland A ve She ridan Ave Mariposa Ave Serra St Tennyson Ave Coleridge Ave N C alif ornia Ave Miramonte Ave Ramona St Madrono Ave Santa Rita Ave Rinconada Ave Escobita Ave Sequoia Ave Park A ve N els o n R d Portola Ave New Mayfi eld Ln Sam Mcdonald Rd Jacaranda Ln Nevada Ave Melville Ave Embarcadero Rd Park Blvd Emerson St Ash St Birch St Sheridan Ave Ramona St Oregon Expy High St W:\San Jose N Drive\Projects\_SJ16_Projects\SJ16_1668_Palo_Alto_On_Call\Graphics\GIS\MXD\Midday_Occupancy.mxd City of Palo AltoSouthgate & Evergreen ParkAM Peak Parking Occupancy Rates Midday (12-2 PM) Occupancy 0-49% Occupancy 50-84% Occupancy 85%+ Occupancy No Parking Anytime No Stopping Anytime Study Area NN.T.S. Data Collected May 24, 2016 Park Blvd El Camino Real Alma St Bryant St Emerson St El Camino Real Park Blvd Ash St Churchill Ave Birch St High St College Ave Gran t Ave Stanfo rd Av e Seale Ave Oxford Ave Cambridge Ave Castilleja Ave Lowell Ave Olmsted Rd Sherman Ave S California Ave Oregon Ave Kellogg Ave Leland A ve She ridan Ave Mariposa Ave Serra St Tennyson Ave Coleridge Ave N C alif ornia Ave Miramonte Ave Ramona St Madrono Ave Santa Rita Ave Rinconada Ave Escobita Ave Sequoia Ave Park A ve N els o n R d Portola Ave New Mayfi eld Ln Sam Mcdonald Rd Jacaranda Ln Nevada Ave Melville Ave Embarcadero Rd Park Blvd Emerson St Ash St Birch St Sheridan Ave Ramona St Oregon Expy High St N:\Projects\_SJ16_Projects\SJ16_1668_Palo_Alto_On_Call\Graphics\GIS\MXD\PM_Occupancy.mxd City of Palo AltoSouthgate & Evergreen ParkAM Peak Parking Occupancy Rates PM (5-7 PM) Occupancy 0-49% Occupancy 50-84% Occupancy 85%+ Occupancy No Parking Anytime No Stopping Anytime Study Area NN.T.S. Data Collected May 24, 2016 Park Blvd El Camino Real Alma St Bryant St Emerson St El Camino Real Park Blvd Ash St Churchill Ave Birch St High St College Ave Gran t Ave Stanfo rd Av e Seale Ave Oxford Ave Cambridge Ave Castilleja Ave Lowell Ave Olmsted Rd Sherman Ave S California Ave Oregon Ave Kellogg Ave Leland A ve She ridan Ave Mariposa Ave Serra St Tennyson Ave Coleridge Ave N C alif ornia Ave Miramonte Ave Ramona St Madrono Ave Santa Rita Ave Rinconada Ave Escobita Ave Sequoia Ave Park A ve N els o n R d Portola Ave New Mayfi eld Ln Sam Mcdonald Rd Jacaranda Ln Nevada Ave Melville Ave Embarcadero Rd Park Blvd Emerson St Ash St Birch St Sheridan Ave Ramona St Oregon Expy High St \\Fpsj03.fpainc.local\data\Projects\_SJ16_Projects\SJ16_1668_Palo_Alto_On_Call\Graphics\GIS\MXD\Overnight_Occupancy.mxd City of Palo AltoEvergreen ParkOvernight Parking Occupancy Rates Overnight (11:30 PM) Occupancy 0-49% Occupancy 50-84% Occupancy 85%+ Occupancy Study Area NN.T.S. Data Collected October 4, 2016 Oregon AveRamona StSanta Rita Ave Ramona St Colorado Ave O r e g o n A v e El Dorado Ave N California AveWashington Ave Rinconada Ave El Camino Real Sherman Ave Santa Rita Ave Palo Alto Sq S California Ave Acacia Ave Ol m s t e d R d Ca mbridge Ave Staunton Ct Pepper Ave J a c ar an da L n Page Mill Rd New Mayfield Ln Birch St Sheri d an Ave Olive Av e Oxfo rd Ave Gr a nt Ave Park Blvd Ash St Stan ford Ave College Av e Ore g o n Ex py Alma St W:\San Jose N Drive\Projects\_SJ16_Projects\SJ16_1668_Palo_Alto_On_Call\Graphics\GIS\MXD\Mayfield_AM_Occupancy.mxd City of Palo AltoMayfieldAM Peak Parking Occupancy Rates AM (7-9 AM) Occupancy 0-49% Occupancy 50-84% Occupancy 85%+ Occupancy No Parking Anytime No Parking 5 PM-8 AM Study Area NN.T.S. Data Collected November 17, 2016 Oregon AveRamona StSanta Rita Ave Ramona St Colorado Ave O r e g o n A v e El Dorado Ave N California AveWashington Ave Rinconada Ave El Camino Real Sherman Ave Santa Rita Ave Palo Alto Sq S California Ave Acacia Ave Ol m s t e d R d Ca mbridge Ave Staunton Ct Pepper Ave J a c ar an da L n Page Mill Rd New Mayfield Ln Birch St Sheri d an Ave Olive Av e Oxfo rd Ave Gr a nt Ave Park Blvd Ash St Stan ford Ave College Av e Ore g o n Ex py Alma St N:\Projects\_SJ16_Projects\SJ16_1668_Palo_Alto_On_Call\Graphics\GIS\MXD\Mayfield_Midday_Occupancy.mxd City of Palo AltoMayfieldMidday Peak Parking Occupancy Rates Midday (12-2 PM) Occupancy 0-49% Occupancy 50-84% Occupancy 85%+ Occupancy No Parking Anytime No Parking 5 PM-8 AM Study Area NN.T.S. Data Collected November 17, 2016 Oregon AveRamona StSanta Rita Ave Ramona St Colorado Ave O r e g o n A v e El Dorado Ave N California AveWashington Ave Rinconada Ave El Camino Real Sherman Ave Santa Rita Ave Palo Alto Sq S California Ave Acacia Ave Ol m s t e d R d Ca mbridge Ave Staunton Ct Pepper Ave J a c ar an da L n Page Mill Rd New Mayfield Ln Birch St Sheri d an Ave Olive Av e Oxfo rd Ave Gr a nt Ave Park Blvd Ash St Stan ford Ave College Av e Ore g o n Ex py Alma St N:\Projects\_SJ16_Projects\SJ16_1668_Palo_Alto_On_Call\Graphics\GIS\MXD\Mayfield_PM_Occupancy.mxd City of Palo AltoMayfieldPM Peak Parking Occupancy Rates PM (5-7 PM) Occupancy 0-49% Occupancy 50-84% Occupancy 85%+ Occupancy No Parking Anytime No Parking 5 PM-8 AM Study Area NN.T.S. Data Collected November 17, 2016 Oregon AveRamona StSanta Rita Ave Ramona St Colorado Ave O r e g o n A v e El Dorado Ave N California AveWashington Ave Rinconada Ave El Camino Real Sherman Ave Santa Rita Ave Palo Alto Sq S California Ave Acacia Ave Ol m s t e d R d Ca mbridge Ave Staunton Ct Pepper Ave J a c ar an da L n Page Mill Rd New Mayfield Ln Birch St Sheri d an Ave Olive Av e Oxfo rd Ave Gr a nt Ave Park Blvd Ash St Stan ford Ave College Av e Ore g o n Ex py Alma St N:\Projects\_SJ16_Projects\SJ16_1668_Palo_Alto_On_Call\Graphics\GIS\MXD\Mayfield_Overnight_Occupancy.mxd City of Palo AltoMayfieldOvernight Parking Occupancy Rates Overnight (11:30 PM) Occupancy 0-49% Occupancy 50-84% Occupancy 85%+ Occupancy No Parking Anytime No Parking 5 PM-8 AM Study Area NN.T.S. Data Collected November 17, 2016 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Planning & Transportation Commission 1 Action Agenda: April 26, 2017 2 Council Chambers 3 250 Hamilton Avenue 4 6:00 PM 5 6 Call to Order / Roll Call 6:05pm 7 8 Chair Alcheck: Welcome to our Planning Commission meeting, Planning and Transportation 9 Commission (PTC) meeting on April 26th. Secretary will you please open or take roll call? 10 11 Yolanda Cervantes, Administrative Assistant: Chair Alcheck, Commissioner Gardias, 12 Commissioner Lauing, Commissioner Monk, Commissioner Rosenblum, Commissioner Summa, 13 Vice-Chair Waldfogel. All present. 14 15 Chair Alcheck: Thank you. 16 17 Oral Communications 18 The public may speak to any item not on the agenda. Three (3) minutes per speaker.1,2 19 20 Chair Alcheck: Why don’t we, do we have any speaker cards for Oral Communications? 21 Individuals want to speak on any topic of their choosing. Ok, we do not have any so I will move 22 on. 23 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Agenda Changes, Additions, and Deletions 2 The Chair or Commission majority may modify the agenda order to improve meeting management. 3 4 Chair Alcheck: Are there any Agenda changes, additions, and deletions? Nope? Ok. 5 6 City Official Reports 7 1. Assistant Directors Report, Meeting Schedule and Assignments 8 9 Chair Alcheck: Then why don't we begin with the Assistant Directors Report? 10 11 Jonathan Lait, Assistant Director: Sure and I just have one thing to report and that is the parcel 12 map that the Planning Commission, Planning and Transportation Commission (PTC) looked at 13 regarding the Bowman School at 689 Arastradero. That’s going to go to the City Council on May 14 8th. And if there’s interest in Commission representation at that meeting that would be 15 Commissioner Gardias to represent the Commission. And so that's the only announcement I 16 have. 17 18 Chair Alcheck: Ok, so I think it's worth noting that our next meeting is a joint meeting with City 19 Council on May 8th. 20 21 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Lait: Yes. Thank you. That’s also on May 8th so I guess you’ll all be in attendance for that 1 and that will start I believe it's at six o'clock. If it's earlier I’ll let you know and I should also 2 mention on May 1st the City Council is going to have a discussion regarding the Comp Plan Land 3 Use and Transportation Elements and so that's obviously something that's of interest to the 4 Commission. That's going to be on May 1st. 5 6 Chair Alcheck: Ok and I’ll just provide a little background on the joint session in anticipation of 7 the joint session Asher and I met with the Mayor and Vice-Mayor to discuss possible agenda 8 topics and we did create an outline and we sent it to them. And I think are you creating a 9 report about that or does that not get circulated? 10 11 Mr. Lait: Yeah very briefly it's everything you said, but the short title not the expanded 12 explanation. 13 14 Chair Alcheck: Right. 15 16 Mr. Lait: Yeah. 17 18 Chair Alcheck: Ok, anyway so you'll see that obviously ahead of that meeting. And hopefully 19 we'll have a really informative and efficient hour long session with them. Yeah? 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Rosenblum: Is there anything you need help preparing? In the past I know that 2 we've done different things, but like I think in the past we've had a memo from the Commission 3 on everything that was accomplished that was split. The work was split on those things among 4 us. 5 6 Chair Alcheck: Yeah. 7 8 Commissioner Rosenblum: This time do you need any help or are you guys covering it? 9 10 Chair Alcheck: No, it's true. And so typically in the past these meetings have taken place 11 towards the end of the calendar year and outgoing the outgoing Chair would typically put 12 together a memo detailing everything that the Commission accomplished during that year. 13 Because of the timing not having been at the end of calendar year and me not being the Chair 14 last year we sort of opted to approach the meeting differently. We're going to talk a lot about 15 the future as opposed to the past and ways to accomplish some of our big priorities over the 16 next year and those topics. So I'm looking forward to it. I think we're going to have to have a 17 good meeting. And so that's all I want to say about that. Any other questions? No? Ok, good. 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Study Session 1 Public Comment is Permitted. Five (5) minutes per speaker.1,3 2 3 None 4 Action Items 5 Public Comment is Permitted. Applicants/Appellant Teams: Fifteen (15) minutes, plus three (3) minutes rebuttal. 6 All others: Five (5) minutes per speaker.1,3 7 2. Review and Recommendation to the City Council for the Creation of a New 8 Residential Preferential Parking (RPP) Program in the Southgate Neighborhood 9 Bounded by Churchill Avenue, Caltrain Rail Corridor, Sequoia Avenue, and El Camino 10 Real. 11 12 Chair Alcheck: Alright why don’t we move to the next item which is the Southgate residential… 13 the Southgate Residential Preferential Parking (RPP) Program. 14 15 Jonathan Lait, Assistant Director: Great, thank you Chair. And I'll just introduce Philip Kamhi 16 he's joined our City about a month ago and is already wading into the very complex and 17 interesting topic of parking management here in the City of Palo Alto. So he's here to present 18 tonight's item on the Southgate RPP and I’m sure you’re going to enjoy it. 19 20 Phillip Kamhi, Transportation Programs Manager: Thank you. So as John said I am Philip Kamhi. 21 I'm the Transportation Programs Manager. This is I believe my completion of my fourth week 22 at the end of this week. 23 24 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Lait: And he's already picked up the requisite stress and fatigue cold that comes along with 1 the first month of employment. 2 3 Mr. Kamhi: So the Southgate RPP program if I can get to go to the next slide… alright. So this 4 program was modeled after the other RPP programs using the same administrative guidelines 5 and the resolution was modeled after it, but per the RPP citywide ordinance the criteria to 6 establish a new RPP program is that nonresident vehicles do interfere with the use of on street 7 parking, that the interference by nonresident vehicles occurs at regular or frequent, regular and 8 frequent intervals, and that the nonresident vehicles create traffic congestion, noise or other 9 disruption including shortage of parking spaces. And further it recommends that staff look at 10 other alternative strategies and identify that there's not any other strategies that are feasible to 11 address the issues. 12 13 So this timeline is really interesting for me especially coming into this program just last month, 14 but I realized a little bit later on as I was working on this that this actually came before the 15 Planning and Transportation Commission (PTC) before and PTC did recommend Southgate to be 16 a RPP. It was in April 2016 PTC recommended RPP for Evergreen Park and Southgate; however, 17 in May a City Council recommended to implement Evergreen Park and for Southgate to 18 implement engineering and Transportation Demand Management (TDM) measures in order to 19 address the Southgate parking issues. And as a result of that staff did do some TDM measures 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. and engineering. Both added approximately 90 new parking spaces along El Camino Real. And 1 also redid the Palo Alto High School (Paly) permit system working in partnership with Paly High 2 essentially establishing a preference for students that live further out from the school to get 3 permits so that students that live closer can use other alternative means, walking or biking, so 4 that the students living further can drive. 5 6 So following that implementation of the new engineering and TDM measures in March of 2017 7 the residents and property owners again did a survey. And that survey, I’ll show, share the 8 results of it, but they did vote to pass per the RPP criteria which is a 70 percent threshold. And 9 then here we are today in April at the PTC. The plan is for this item to go to City Council on 10 June 19th and if approved, if it's established and is approved enforcement could begin in 11 October of 2017. 12 13 So for the Parking Occupancy Study the study reviews three different times: morning, 14 afternoon, and evening. The morning occupancy rate was determined to be 71 percent. The 15 lunchtime occupancy rate was determined to be 89 percent. And 85 percent is typically the 16 standard threshold that we use for best practices to determine now this is for downtown areas 17 typically, but 85 percent usually means that there's not necessarily a parking spot on every curb 18 on every corner. And 54 percent evening occupancy rate so it's really obvious that the parking 19 is mostly impacted during the middle of the day. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 So these are the survey that I referenced that was conducted last month, self-administered by 2 the members of the area. Staff mailed out 232 surveys. We received 128 surveys back which is 3 approximately fifty-five percent and 95 of those voted yes which is seventy-four percent of the 4 respondents. And I just want to emphasize that this survey happened after we implemented 5 new parking spaces and TDM measures. 6 7 So I’ll get into the draft program design. And as I mentioned this is modeled after the other 8 current existing RPP programs and in particular the Evergreen so the ordinance is taken from 9 that, the resolution, the administrative guidelines as well. These are all attachments, but 10 they're all taken from the other RPP program. Just to give you context of the borders we 11 defined the Southgate district and it’s from the original plot of the center line of El Camino, the 12 center line of Churchill to the north, the Caltrain railroad corridor and then the southern edge 13 of properties along the south side of Sequoia. And those two businesses that are shown it looks 14 like it's white in the screen it should be yellow, but it's on the top in the corner of Churchill and 15 El Camino and on the bottom of El Camino and Sequoia are businesses and they were both part 16 of the original plot. 17 18 So the program and this is where I have to correct something in the staff report, on Page 6 of 19 your report which is enforcement hours it says that the program would be Monday through 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Friday from 8:00 am to 6:00 pm. That's incorrect and inconsistent with the resolution in the 1 report. It would be 8:00 to 5:00 pm. And the resident parking permit stickers resident would 2 get one free and up to three additional for $50 each. Resident parking permit hanging tags 3 they’d get up to two annual and $50 each and fifty daily per year at $5 each. And we're 4 recommending 10 total employee parking permits that would be sold at in six month periods as 5 well for $74.50 or $25 for low income. And with that I’ve got your recommendation is in front 6 of you and I'm happy to take any questions. 7 8 Chair Alcheck: Ok. We have one speaker card here for Item Number 2. If anybody else would 9 like to speak on the item please fill out a speaker card. We will allot five minutes to Jim McFall. 10 11 Jim McFall: Good evening, Jim McFall, Southgate resident and a member of the Southgate 12 Neighborhood Parking Committee. Thank you for the chance to speak this evening. Phil did a 13 good job of covering the process so he's covered most of my points so I have just a few minor 14 items to add. Should note that it was one year ago tomorrow night that we were here with you 15 to discuss RPP programs in several neighborhoods and in which you recommended covering a 16 program in Southgate. So we're happy to be back for that. We started working with staff over 17 two years ago on the process and at that time we had a survey done for ourselves for the 18 neighborhood and 95 percent of the people surveyed supported approaching the City for an 19 RPP program. And as you heard tonight with the survey that story that staff did last month we 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. had a 74 percent supporting percentage by neighbors who responded which as far as I'm aware 1 is quite a bit higher than any other neighborhood that's received a RPP program so far in Palo 2 Alto. 3 4 A couple of comments about the neighborhood, it's very geographically distinct. It's defined by 5 the streets that he mentioned and Caltrain. And one of the defining characteristics is the 6 narrowness of the streets. All the streets are 24 feet wide or less with one exception and so the 7 point there is when cars park on both sides of the streets they become virtually or realistically 8 one way streets. And so that exacerbates congestion and traffic and we also have the Castilleja 9 bike boulevard that goes right through the neighborhood and so we've got lots of kids going to 10 Paly biking and walking and so it raises significant safety concerns. The neighborhood really 11 was not designed in the Twenty's for anywhere close to double loaded or double parked 12 streets. And so that really was the genesis for concerns raised by neighbors over the recent 13 years. 14 15 I'd also note that at your meeting last on January where you discussed the Evergreen Park RPP 16 program Commission Members did discuss what's going to happen with cars parking in that 17 area particularly on the north end of Evergreen Park along Park Boulevard and it was noted by I 18 think several of you that it was very likely those cars were going to migrate to Southgate. We 19 agree entirely with that and in addition Paly continues to grow. They're looking to add another 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 300 students over the next several years and as well as I'm sure you know Stanford is planning 1 to grow over two million square feet of new building area as well as 3,100 housing units. So 2 there's going to be continual pressure over the next several decades for parking and traffic and 3 resulting in congestion. So I think staff has done a great job of covering the issues in the staff 4 report and I strongly encourage the Commission to implement the Southgate RPP program. 5 Thank you. 6 7 Chair Alcheck: Ok, thank you. Why don't we begin with a round of comments or questions for 8 staff and why don’t we start at that end? Mr. Gardias will you kick us off? 9 10 Commissioner Gardias: Sure. Thank you very much for coming. Congratulations on your job 11 and (interrupted) 12 13 Mr. Kamhi: Thank you. 14 15 Commissioner Gardias: You have big shoes to fill. I think you will replace Jessica’s… 16 17 Mr. Kamhi: Yes. 18 19 Commissioner Gardias: Position, right? 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Kamhi: Yes, somewhat. It’s a little bit changed. 2 3 Commissioner Gardias: Congratulations. 4 5 Mr. Kamhi: Thank you. 6 7 Commissioner Gardias: She was very liked by the neighborhoods and maybe because of her 8 hard work the RPP programs we’re moving on. 9 10 Mr. Kamhi: [Unintelligible]. 11 12 Commissioner Gardias: But a with your help I'm sure that they will expand further so thank you 13 for the (interrupted) 14 15 Mr. Kamhi: Thank you. 16 17 Commissioner Gardias: For preparing this for us. Could you start with enlightening us with 18 telling us what’s the timing of the similar program on the Evergreen, in the Evergreen? Because 19 I think it’s going to be key. We just heard that cars once they are pretty much banned from 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Southgate they may move to the other neighborhood or maybe across the railroad tracks. 1 That's another possibility. So I would like to understand what is the perspective timing of the 2 pilot or implementation on Evergreen and because from my perspective I probably would like 3 to see them at the same time. 4 5 Mr. Kamhi: Yeah. 6 7 Commissioner Gardias: So that's let's start with this and I have other questions. 8 9 Mr. Kamhi: Sure. Unfortunately I think probably my guess is that was staff's initial plan was to 10 have them go at the same time which is why last April you heard both of the programs at the 11 same time. Unfortunately we're currently signing for Evergreen and Mayfield. So that signage 12 is getting put up currently and is set to go into enforcement in early May. So unfortunately 13 they are not going to happen at the same time unless this can happen overnight. Yeah. 14 15 Commissioner Gardias: So Evergreen is will be enforced once this one is in piloted so pretty 16 much there maybe opposite effect, right? So Evergreen will be already RPP? 17 18 Mr. Kamhi: Yes. 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Gardias: So those cars out of Evergreen may move to eventually to this area? 1 2 Mr. Kamhi: Yeah, that is possible. 3 4 Commissioner Gardias: Ok, so that's the risk. Are there any other risk of having them not time 5 the same moment? 6 7 Mr. Kamhi: Yeah, I’m not sure if there's other risks other than them just continuing to be 8 impacted [unintelligible] that they believe they are. They self-selected to do this. At their 9 request after we did make modifications so I believe they feel that they are currently impacted 10 by both Paly and Stanford parking. And I would anticipate that there would be impact from the 11 Evergreen RPP Program in this area. 12 13 Commissioner Gardias: Ok, so let me just run by some couple of other questions by you. So in 14 the staff report and let me direct you to the right, to the right paragraph. So this is the same 15 Page 6 that you referred to before and paragraph is Parking Occupancy And Supply. You're 16 providing us with the numbers and then at the prior meetings I was always asking about the 17 numbers and I was recommending to build the balance sheet of the assets and then liabilities. 18 So assets would be pretty much areas of the neighborhood from the perspective maybe of 19 attractiveness and then see how many who's parking at those places. So here what you're 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. saying is that… You say, you're saying that this clearly shows the impact of Palo Alto High 1 School and Palo Alto Unified School District (PAUSD) students, employees, and visitors so I just 2 want to make sure that this is the right statement. I observed this so I believe this is right, but 3 then I just want to make sure if there are any other factors in the spaces taken outside of the 4 neighbors. The reason is like this because I would like to understand once this will be 5 implemented then pretty much we will have ability to award the parking permits to the 6 businesses. 7 8 Mr. Kamhi: Yeah. 9 10 Commissioner Gardias: And I think that those businesses are also from the outside of the 11 neighborhood, am I right? 12 13 Mr. Kamhi: Well there's actually two businesses that are in the original plat. They are part of 14 the neighborhood. They’re two small businesses. 15 16 Commissioner Gardias: So those two businesses on the corners (interrupted) 17 18 Mr. Kamhi: Yes. 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Gardias: Of El Camino those will be only two entitled to park in this 1 neighborhood? 2 3 Mr. Kamhi: Yes. Yeah. And it will be a limit. We're recommending a limit of 10 permits. 4 5 Commissioner Gardias: So there will be no other businesses allowed know from the outset? 6 7 Mr. Kamhi: No. Yeah. 8 9 Commissioner Gardias: So pretty much I’d like to understand then so it seems to me that given 10 this restrictions the parking spaces will be taken only by those two businesses and then of 11 course the neighborhood owners. 12 13 Mr. Kamhi: Yeah. 14 15 Commissioner Gardias: So it will result with 166 Paly students per your arithmetic that you have 16 on Page Number 6 parking somewhere else or take taking different means of transportation? 17 18 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Kamhi: Yeah and I just want to clarify it's probably not just Paly students. It's probably also 1 quite a bit of Stanford students with the proximity of Stanford. But yeah, they would have to 2 park elsewhere. 3 4 Commissioner Gardias: So once you conduct this pilot I would like to understand where did 5 those people go? And that was that's my continuous ask if we’re going to work together you'll 6 hear me asking about the same thing. I would like to understand if we place restrictions in one 7 place those cars are either taken off the street or maybe not. So I would like to you to tell me 8 pretty much where did they go? 9 10 Mr. Kamhi: Yeah. 11 12 Commissioner Gardias: Did they move to another neighborhood? Did they move to Stanford? 13 Did people started taking buses? So I know that you may not be precise, but probably some 14 good observation may provide the right result. 15 16 Mr. Kamhi: Yeah. Yeah I think we can at least pull some inferences from maybe there we see 17 higher ridership in transit or maybe Stanford tells us that there's more permits being sold on 18 their campus. 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Gardias: Yes, but there is also a possibility that Old Palo Alto may become the 1 secondary parking ground. 2 3 Mr. Kamhi: Right or we could see another neighborhood get impacted. 4 5 Commissioner Gardias: Yes. So I would like to ensure to make sure that pretty much your 6 observation includes this 166 Paly students and PAUSD and the other visitors (interrupted) 7 8 Mr. Kamhi: Yeah. 9 10 Commissioner Gardias: Where would they be going to? 11 12 Mr. Kamhi: Yeah. 13 14 Commissioner Gardias: Ok, so that's my ask to you. So once you're going to come back to us in 15 a year or so just please just tell us where, what happened with those cars. Another item I 16 would like to ask you and is I’d like to understand the cost. I know that there is a comment in 17 this staff report that you are still looking at the cost, but what we talked at one of the prior 18 meetings about understanding of the true cost. And I did somewhere analysis and hold on a 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. second, let me see, maybe I can just get to them. So I can provide you with readouts. If not I 1 will just tell you directly from my head. 2 3 So I think that you have 478 parking spaces and then based on your observation there is 258 4 that are local. I would like to those people would be paying for $75 for six months which will 5 just up $150 per year if they just to get one additional permit and I when I did the calculations 6 which I unfortunately don't have in front of me it was around 20 few thousand dollars of 7 revenue and I just eyeballed and I said ok probably fully burdened cost to service this this RPP is 8 going to be $50,000. So we are $25,000 short and then probably similar result maybe in other 9 RPPs. So I'd like to understand the impact of the cost. 10 11 Mr. Kamhi: Yeah. 12 13 Commissioner Gardias: So when you're going to visit us please just provide this how much this 14 is under and we would like to also understand or I would like to understand how much it would 15 take to break it even. 16 17 Mr. Kamhi: Ok. 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Gardias: Would we need to increase the fee for the annual parking permit or just 1 take some other measures? Thank you. 2 3 Mr. Kamhi: Yep. Thank you. 4 5 Commissioner Lauing: Ok, good report; very thorough. And I take it from your comments that 6 there are really no substantive changes from the last RPP? 7 8 Mr. Kamhi: That's correct. So the only major change is from 6:00 pm and that's why the report 9 changed actually. Originally Evergreen was to 5:00 pm as well and it was later changed to 6:00 10 pm. This one is the opposite. It really should be 5:00 pm. That was what the neighborhood 11 requested. 12 13 Commissioner Lauing: Ok on package, Packet Page 8 where you're talking about the cost of 14 these things was this also identical to the last one or where there any changes based on 15 neighborhood or? 16 17 Mr. Kamhi: [Unintelligible]. 18 19 Commissioner Lauing: Page 2 of your report is Packet Page 8. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Kamhi: I believe that these are the same costs as the other program, but I'm sorry that I 2 cannot tell you definitively (interrupted) 3 4 Commissioner Lauing: As well as the number of annual permits and things like that? Is that just 5 sort of a pick up to? 6 7 Mr. Kamhi: Yes, that's all consistent. 8 9 Commissioner Lauing: Ok. So (interrupted) 10 11 Mr. Kamhi: I believe that these costs are consistent. 12 13 Commissioner Lauing: So there's some data in the, in there that suggests these are fine? 14 15 Mr. Kamhi: Yes. 16 17 Commissioner Lauing: We're not getting (interrupted) 18 19 Mr. Kamhi: I think that (interrupted) 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Lauing: Huge objections and we’re not getting (interrupted) 2 3 Mr. Kamhi: I think our goal is to have the cost all be equitable against, across the different 4 programs. 5 6 Commissioner Lauing: Yeah. Ok on Packet Page 10 I had a couple questions on the public 7 outreach just process wise. I was surprised at that last sentence of the first paragraph where 8 you say that the attendees many attendees disagreed with the format and requested that the 9 future meetings include a group question and answer period. That seems like a really simple 10 change. So why wasn't that part of it to begin with? 11 12 Mr. Kamhi: Unfortunately, I cannot tell you that because this is before my time, but I concur. 13 14 Commissioner Lauing: Ok, and then you list here below that feedback varied and you tell us 15 about the subject, but was there any pertinent granularity that you could give us on what the 16 debates were or anything like that? 17 18 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Kamhi: Unfortunately I cannot provide a lot of detail other than what's here not having 1 been at the meetings. Just I received summaries of the meetings and this is pretty much the 2 bulk of what was expressed as important to me. 3 4 Commissioner Lauing: Ok, and then the last question in that area is do you know was there 5 when you sent out these surveys to the people and it got a great response, but for the ones 6 that they didn't come back did they get a second reminder? Remember to fill out your survey? 7 8 Mr. Kamhi: Again unfortunately I cannot speak to that because that was before my time, but I 9 do think we did receive a pretty good response for a survey of this type. 10 11 Commissioner Lauing: Yeah, you did. I just wondered if the second people who didn't respond 12 got a reminder because we all get lots of mail and sometimes it's like you got to get this in 13 (interrupted) 14 15 Mr. Kamhi: Right. 16 17 Commissioner Lauing: In two days and we sent you one before and… 18 19 Mr. Kamhi: Yeah. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Lauing: I’m asking these questions just for a future orientation. 2 3 Mr. Kamhi: Yeah, I think that's a good question. I'll add that there is an opt out procedure so if 4 this neighborhood so desired to opt out of this program at a future date they would need to get 5 50 plus 1 percent of their residents to petition and they could opt out of the program if they at 6 such a time decided it was not necessary. Yeah. 7 8 Commissioner Lauing: Yeah… [unintelligible] the tone of my comments is just to make sure that 9 they have every chance to (interrupted) 10 11 Mr. Kamhi: Yes. 12 13 Commissioner Lauing: Vote on things and every chance to give us feedback like please take 14 some questions at the end. 15 16 Mr. Kamhi: I think specifically this neighborhood had a lot of time to prepare for this coming 17 because they had requested it over a year ago then voted for it. And I'm sorry I don't have the 18 survey results from that original survey, but then were notified that a year later that this would 19 be coming. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Lauing: Ok. On package page, Packet Page 16 you’re listing it’s 2a. The trial 2 period is to be reevaluated after one year. At least in this document I didn't see that there was 3 a list of criteria that are going to be evaluated to see if it's a success or failure, one of which 4 would be my colleague’s comment on (interrupted) 5 6 Mr. Kamhi: Yeah. 7 8 Commissioner Lauing: Impact on other neighborhoods, but it could be what's the definition of 9 success here or what do we have to change if we get “negative feedback”? 10 11 Mr. Kamhi: Yeah, I definitely agree with that. We wouldn't want a… we would want your 12 feedback on what defines success. We also want to hear what the residents how the residents 13 feel about it and also the people that are not able to park in that area now. So I think that 14 that's a very salient point. 15 16 Commissioner Lauing: But does the City have a list right now of maybe from one of the prior 17 ones? 18 19 Mr. Kamhi: That I cannot speak to. Sorry about that. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Lauing: Ok. Oh, I’m sure Jonathan’s listening too so [unintelligible]. What was 2 that? 3 4 [Mr. Lait or Mr. Kamhi]: I heard the response. 5 6 Commissioner Lauing: You guys are all talking like you have attorneys sitting next to you saying 7 you can't talk about anything. 8 9 Mr. Kamhi: Yeah, I know. I know. I get to do this on (interrupted) 10 11 Commissioner Lauing: I don’t see any attorneys around. 12 13 Mr. Kamhi: [Unintelligible], but I will tell you that there's definitely criteria that I'd want to look 14 for and one of those is just the visual. Go out there and see what's the street look like now and 15 go out and see the neighborhoods surrounding and see what does it look like now, but then 16 there's also the consideration of the members of the public and what their desires are. So I 17 think probably it might require another public workshop or going out and getting into the 18 community and talking to them about the impacts, talking to Paly, talking to Stanford to find 19 out how it's impacted them. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Lauing: Yeah so just in general with these things if you're coming back and say 2 hey, it was a great success because what you fill in the blanks with what we see and visuals are 3 great. I mean you can't beat your eyes, but if there's any data that's even better so. 4 5 Mr. Kamhi: Yes. 6 7 Commissioner Lauing: I think that’s it. Yep, that’s all. Thank you. 8 9 Vice-Chair Waldfogel: Thank you. Hey thanks very for moving this along really fast for this is 10 fast paced for a City program. So I actually really appreciate that. I will support this RPP. A 11 couple comments, I hope we're not setting a precedent that 85 percent parking in a residential 12 neighborhood is a threshold for anything in a pure residential neighborhood. This isn't adjacent 13 to any business district and I think that we’d have other residential neighborhoods up in arms if 14 they believe that that's a any kind of defining number. 15 16 I do appreciate that we're making some concessions to medical and dental businesses in this 17 neighborhood. We've heard from that community before and that seems like an appropriate 18 concession to make. And then just to echo Commissioner Gardias’ question about timing. Is 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. there any possibility we could expedite implementation to align with Evergreen Park if the City 1 Council were to move quickly or? 2 3 Mr. Kamhi: I will say that we can and would be happy to try and expedite it, but the signage is 4 being put up right now in Evergreen and enforcement is set to start on May 1 so there's 5 (interrupted) 6 7 Vice-Chair Waldfogel: Right, I understand it we couldn't be concurrent. 8 9 Mr. Kamhi: No we couldn't, but it is possible for us to assuming that Council’s supportive it is 10 possible for us to do it faster than October 1. 11 12 Vice-Chair Waldfogel: Ok, that’s all I have. Thank you very much. Really appreciate it. 13 14 Mr. Kamhi: Thank you. 15 16 Commissioner Monk: Thank you, Assistant Director Lait and Mr. Kamhi for your presentation 17 today and to the community members that came out and spoke on behalf of this RPP program. 18 So maintaining our neighborhood integrity is something that I support. I myself live in the 19 Downtown district that has the RPP program in place. I think that it has a lot of merit to it and 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. it's an important program particularly in the neighborhood that I live and, but it's not without 1 flaws that we'll get into in a little bit. And I just want to make sure that the residents really 2 know what they're getting into in promoting this program for themselves. 3 4 Not living in a commercial district I can see that there's different requirements or different 5 interests that are at play here. From what I understand these are residents who live in narrow, 6 the neighborhood is characterized by narrow streets and I have experienced those streets 7 myself visiting people that live in that area and I appreciate exactly what's going on on those 8 streets. And it's difficult for folks to even get in and out of their own driveways because if a car 9 is parked across the street they can't even get in and out sometimes. So but does that apply to 10 the entire area that we're referring to? I think it applies to maybe two or three of the streets. I 11 don't know if limiting it to certain streets would make a difference or not and if it's going to 12 then cause over spill on to other neighboring streets so it's a little bit a complex issue, but I do 13 appreciate that the issue that you're dealing with. 14 15 So what I would like Council to consider when they're looking at this is what is the policy behind 16 the RPP? Is it to have more available open spaces on our streets? Is it to accommodate the 17 parking needs of our City? I'm not seeing an actual policy behind the RPP. If there is one I'd 18 love for you to point it out to me. In the Downtown it's very apparent. We're more than 85 19 percent occupancy rate so that merited it. I don't know what it is in general. So what I'd like 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. the Council to do is consider what is a healthy balance of parked cars in our neighborhoods? I 1 agree with Commissioner [Note-Vice-Chair] Waldfogel that 85 percent in a strictly residential 2 area is far too condensed with parked cars, but what is a good healthy number that we're 3 looking to achieve? So I would like Council to look at that. 4 5 As far as the criteria from this survey I hear that 55 percent return rate is a good rate of return. 6 Is that correct on these? 7 8 Mr. Kamhi: For the survey? 9 10 Commissioner Monk: Right. 11 12 Mr. Kamhi: I would think so, 55 percent of (interrupted) 13 14 Commissioner Monk: So 55 percent return the surveys and of that 74 percent support it. Is that 15 a good representation? Is that enough for us to say yes these, this is representative of that 16 community and that we should go, move forward with this program? 17 18 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Kamhi: So per the guidelines it's for in order to petition they need over 50 percent in order 1 to approve in the survey and this is just per the guidelines it's 70 percent of respondents. So I 2 would say per the guidelines yes. 3 4 Commissioner Monk: Right so (interrupted) 5 6 Mr. Kamhi: But I think you do have a good question as to whether there should be a guideline 7 for how many respondents we receive having that be a percentage greater than X is a fair 8 question. 9 10 Commissioner Monk: So I would like to say moving forward that we might want to look at some 11 guidelines because under the current guidelines any minority of residents in a particular 12 neighborhood can come forward and get this pushed through without having really any 13 overriding policy to support it. Just because they want to implement it to me doesn't seem it's 14 too arbitrary and I would like to see some guidelines put in place. 15 16 And then going back to that 85 percent threshold for supporting this program and we're 17 understanding that it's in this area the biggest issue is in the daytime hours by the students 18 from Paly also them loitering, causing other issues as well, so it's not just the 85 plus. There's 19 just other issues associated with the who actually is parking there. And I want to make sure 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. that I'm reading this correctly so I'm looking at Packet Page 39 where it has the midday 1 occupancy rate. Is that the correct place for us to look at the occupancy rate? 2 3 Mr. Kamhi: Yeah, yes for the midday. 4 5 Commissioner Monk: And that's where you said it was a 89 percent, correct? 6 7 Mr. Kamhi: Yes. 8 9 Commissioner Monk: But that map there has a much broader area so I'm not seeing where the 10 area that we're talking to which is bounded by Sequoia, El Camino, Churchill and I don't see the 11 other street. Park, correct. 12 13 Mr. Kamhi: So I would state that (interrupted) 14 15 Commissioner Monk: So I'm the area that we're referring to tonight is Southgate, but the study 16 that is the 89 percent occupancy rate is Southgate and Evergreen, correct? 17 18 Mr. Kamhi: No, I believe it is just Southgate. And I think that the reason why this looks a little 19 bit misleading is because you see a lot of green areas, but I'd also want to recognize that there's 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. a lot of yellow areas which could be up to, it could be in the mid eighty's and there's a lot of red 1 areas. I believe that it's 89 percent overall. 2 3 Commissioner Monk: So the yellow areas that go 50 to 84 percent occupancy is a pretty big 4 jump and I don't think that you're presenting us with the best picture of what's happening in 5 that neighborhood. 6 7 Mr. Kamhi: Yeah, it is. 8 9 Commissioner Monk: So I appreciate that the neighborhood is impacted in the middle of the 10 day. I have no doubt that there's Paly students parking there, but this isn't really illustrative of 11 to what's going on. 12 13 Mr. Kamhi: Yeah. 14 15 Commissioner Monk: So I don't know that I'm convinced that there's an 89 percent occupancy 16 rate in the area that we're talking about midday. 17 18 Mr. Kamhi: So the 89 percent (interrupted) 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Monk: Because this even at a maximum is 84 so there's a little bit of a 1 discrepancy. 2 3 Mr. Kamhi: So the way I was understand that and just note that this was before my time as 4 well, but the way that this survey was done is overall how much curb space. So it’s however 5 many vehicles versus how much curb space is available. And I know that this map shows you by 6 area, but that's not necessarily reflective of where the most curb space is and how that shakes 7 out through the area. 8 9 Commissioner Monk: When you bring this to Council I think getting more clarity on the 12, are 10 you planning on doing another study before this goes to Council? This is the study we're relying 11 on? 12 13 Mr. Kamhi: No, yeah I don't believe s we’re planning (interrupted) 14 15 Commissioner Monk: So if there's any way that you could clarify looking back at your data that 16 12:00 to 2:00 pm occupancy rate and really let them know what's happening on which streets I 17 think would be really helpful. 18 19 Mr. Kamhi: Yeah, I agree. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Monk: And so I just want to be clear you said that the TDM was implemented 2 and then the survey was conducted after the TDM was implemented. It was a year later? 3 4 Mr. Kamhi: Yeah the TDM and the engineering was done in August-September. 5 6 Commissioner Monk: Of last year? 7 8 Mr. Kamhi: Yeah and then the I can go back to the… maybe I can’t, it’s not letting me go back, 9 but… 10 11 Commissioner Monk: And so is engineering where they took out some of the red curbed on El 12 Camino and created more spacing? 13 14 Mr. Kamhi: Yes. Yeah. 15 16 Commissioner Monk: And so we were saying that that really has not had an impact on this 17 neighborhood at all? 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Kamhi: I would say that now first I have to note that the occupancy study was done before 1 that. So this occupancy study was done before (interrupted) 2 3 Commissioner Monk: This was done in May and the TDM and the engineering was done later 4 on in the year? 5 6 Mr. Kamhi: Yes, that's correct. So the TDM was done in September. 7 8 Commissioner Monk: So we don't have any data points on the impact of the TDM, is that right? 9 10 Mr. Kamhi: That's right. What we have is the residents coming forward and saying that they 11 still needed this. And that was in March of 2017. If I could though one earlier question you had 12 about impacts if I'm just assuming that what you were saying is the impacts if we were to 13 implement RPP in some of the areas potentially the red areas or the yellow areas I just want to 14 mention that I believe that that would have impact to the other areas similar to we expect 15 there'll be an impact from Evergreen RPP program. 16 17 Commissioner Monk: But we haven't measured the impact from the Evergreen program to this, 18 to Southgate, right? 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Kamhi: Well, Evergreen’s not (interrupted) 1 2 Commissioner Monk: Oh it hasn’t (interrupted) 3 4 Mr. Kamhi: It’s not, it’s not even in place. It's just getting signed right now. 5 6 Commissioner Monk: Oh, ok. I didn’t know if it had gotten implemented yet. 7 8 Mr. Kamhi: So we would be able to do that quite soon. 9 10 Commissioner Monk: So do we have any idea what this program will cost to implement and 11 what type of revenue we can expect to generate to have it sustain itself? 12 13 Mr. Kamhi: I think this is somewhat a question that we received earlier, but I think that we're 14 not sure and that's why it's a pilot program at this point is part of that is determining costs. 15 We're not sure how many people are going to buy permits. We're still determining the cost of 16 signage and enforcement. So. 17 18 Commissioner Monk: So I think when this goes to Council it would be helpful for them to know 19 what it costs for all the signage, for the enforcement, the contractors, anticipated number of 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. permits because in this instance there really won’t it'll just be residents that’ll be purchasing 1 and there's a free one to each home. 2 3 Mr. Kamhi: Yeah. 4 5 Commissioner Monk: They also mostly have driveways so I don't see a huge amount of revenue 6 generation from here [unintelligible] of looking at what those costs were I think would be 7 something the City would want to (interrupted) 8 9 Mr. Kamhi: Right it’s a question of (interrupted) 10 11 Commissioner Monk: The City Council would want to know. 12 13 Mr. Kamhi: Do they just take the free permit and then park in their driveway? Do they buy 14 multiple permits and plan on parking on the streets? Do they buy visitor permits? Do we sell 15 10 employee permits that we're allotting? 16 17 Commissioner Monk: Right. 18 19 Mr. Kamhi: Those are all the questions that we have and really would establish the impact. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Monk: So I think just coming up with some figures of a range and then just 2 looking at the overall cost. And then lastly I wanted to advocate for the 8:00 to 5:00 program 3 as you had mentioned it was different in here. I understand that two hours is kind of the 4 standard. I just want to point out to the residents that I do live in this area and most likely you 5 have friends that come they always are there for two hours and 10 minutes. It is really 6 prohibitive. I don't know where people stand on that. I don't know if it's enforceable to do 7 three hours or something like that, but just please be aware that if you're not planning on 8 buying a permit or having permits the two hours could get quite cumbersome because you 9 can't just move your car across the street or to another block. You have to move out of the 10 zone. So that is something that you just really need to be aware of. And I don't know if as a 11 community we want to look at a different policy to the zone policy and just moving it across the 12 block or not, but it could be a bit of a challenge so just be aware of that with anyone who 13 comes to service your home or overnight guests or to come visit you because at five dollars a 14 day it does add up when you have family or friends coming and visiting. 15 16 I'd also like to suggest to Council to consider more conformity with all the other programs. This 17 one is $50. I understand that might be going up to $75. Downtown is $50, College Terrace is 18 $40, Crescent Park pays $100. They all have different time zones. So I would like Council to 19 come up with some sort of decision on whether or not they want to look at each neighborhood 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. individually and respect their unique characteristics or if they want to have a broader policy and 1 bring all the programs a little bit more conformity citywide. So depending on which way they 2 want to go is something they should take a decision on. 3 4 Mr. Kamhi: Yeah I concur with that. I think we'd like to see more equivalent programs across 5 the board. 6 7 Commissioner Monk: Ok and then finally my last comment; I do want to see this is a pilot 8 program that after a year that it's very well noted to all the residents that after one year it's 9 over and if there's any changes that they’re informed of it. We were not communicated that 10 well within our Downtown program that it had that it finished and we were now on to a 11 permanent program. So please ensure good communication after the pilot program that it’s 12 really a pilot program and that if there's another survey that can be sent out to see if the 13 neighbors have any concerns or modifications to that program for the following year. Also I 14 was told that if after the pilot program in the event that they don't want to move forward for 15 some reason are they then precluded from forever asking for it? Because I was told that 16 something like let's say after a year they say we don't want to keep this anymore, but in five 17 years they want to re-up it. Can they do that? 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Kamhi: I didn't see anything in the municipal code or guidelines that says that they could 1 not. 2 3 Commissioner Monk: Ok. Alright, thank you so much. 4 5 Commissioner Summa: Hi. So welcome to our new staff member and thank you very much for 6 the staff report and for moving pretty quickly on this. And I'm very happy and pleased for the 7 neighborhood because I think they really want it. And I think you've really done what Council 8 asked you to do with this RPP and, but I do have a couple of questions. And the first thing I 9 wanted to bring up was I know in the Downtown area there were residents and this is a general 10 question for staff, there were residents that had submitted letters from attorneys with 11 concerns about whether this was legal with the state law about residential parking permit 12 programs. And I hadn't ever heard about what happened about that, but I just wanted to get 13 reassurance and clarification that whether the staff was concerned at all about the position 14 that the those attorneys took. 15 16 [Albert Yang-Senior Assistant City Attorney]: This is something that our office reviewed and we 17 were comfortable with the program that City was going forward with. 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Summa: Ok, thank you. So a few things; I understand that the ordinance the 1 citywide residential ordinance does allow for customization for different neighborhoods which I 2 so I understand it's written that way. I'm a little concerned that somehow this creates a bit 3 some neighborhoods are kind of winners and some are kind of losers. So that's just a little 4 concern of mine. 5 6 And then let's see… I do think it's probably the case that the two hour parking in Southgate 7 won't result in too much of an impact. In some neighborhoods that are actually closer to 8 downtown areas it does so, but it seems like that would be appropriate and will probably work 9 here. I share some of the concerns of my colleagues especially I think 85 percent block 10 coverage is a little bit high for a residential neighborhood. 11 12 So and then the rest my questions are about the two businesses. I note that those are zoned 13 differently. They’re RM-15 so I don't know the history of how they became medical, but I am a 14 little concerned about what would happen in the future if they so I don't know if they were 15 grandfathered in as medical or if they have a Conditional Use Permit (CUP) that would affect 16 any future uses there and whether that whether the 5 the 10 permits does that mean if the one 17 business shows up first they can take all 10 or does each business get 5? That seemed kind of 18 un… like it might become problematic. And then I didn't see much analysis or maybe any 19 analysis of how completely parked those buildings are now. They both have pretty big parking 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. lots so if you could clarify how that's going to work with 5 and 5 or if one could get all 10 which 1 doesn't quite seem fair, how in the future if the use changes we would address that? 2 3 And I'm just I’m making the I'm assuming that the Southgate permits will be marked like S.G. or 4 something so I'm assuming that they wouldn't be able to park with a permit in Evergreen. I'm 5 sure that they're marked differently or something just visually. 6 7 Mr. Kamhi: That's correct. 8 9 Commissioner Summa: Ok. And then let's see… yeah, so and why is the rate so this is my other 10 question, I just didn't know this. Why is the rate so different than Downtown? 11 12 Mr. Kamhi: I believe we are planning to make all of the rates consistent as mentioned 13 previously and a couple times (interrupted) 14 15 Commissioner Summa: Ok. 16 17 Mr. Kamhi: I think that we are playing on making the rates consistent. 18 19 Commissioner Summa: Ok with [unintelligible], ok. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Kamhi: I think it has to do with trying to right size the ship if you would. 2 3 Commissioner Summa: Yeah. Ok. 4 5 Mr. Kamhi: And if I can to your earlier question about the employers we actually don't 6 anticipate that we're going to sell out the employer permits. We're really anticipating that 7 there's, they are as you mentioned they both have their own parking lots. And we really don't 8 they're very small businesses one is a plastic surgery clinic and one's an In Vitro Fertilization 9 (IVF) clinic. We really don't think that they're going to have a lot of employees that cannot park 10 in their lots and that are needing to use the employer permits, but we do want to keep it 11 available for them. 12 13 Commissioner Summa: Ok, but is it going to be five and five for each business respectively or? 14 15 Mr. Kamhi: I don't believe that that has been defined. 16 17 Commissioner Summa: Ok. 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Kamhi: I think that is something that could be approached if there was a concern of actually 1 impacting it, but we don't anticipate that we're actually going to even sell them out. 2 3 Commissioner Summa: Ok and so since that zone is not zoned for medical office in the future 4 do you know the answer to the question about whether it's a CUP or if it's grandfathered in and 5 if it could change to a more intense use which might result in the nearest by neighbors having a 6 real density problem with two hour parking? 7 8 Mr. Lait: So I don't know if there's a CUP or any kind of entitlement and I'm kind of poking 9 around now to see what I can find out about that property. 10 11 Commissioner Summa: Yeah. 12 13 Mr. Lait: But as far as a non-conforming use let’s assume that it's a legal non-conforming use. 14 The another use could occupy that site, but if it's a more intense use in terms of say parking 15 then that would be something that we would not allow. But we could we would allow uses to 16 swap out as long as they had a similar parking requirement or less. 17 18 Commissioner Summa: Ok, so in other words it wouldn't couldn't someday become a densely 19 occupied software company or something. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Lait: Well, I mean if it's permitted as an office building then or medical office and medical 2 office I have to take a look at the code as far as which one has a higher parking ratio. I think 3 medical may. They’re different. 4 5 Commissioner Summa: Yeah. 6 7 Mr. Lait: So I can take a look at that. And so if it were if it required more parking for the general 8 office then no, if it required less parking then that would not be precluded. 9 10 Commissioner Summa: Ok I would just look out for that because changes in those two 11 businesses could really affect the closest by neighbors especially. Other than that I'm very 12 happy for the neighborhood. So thank you very much. 13 14 Commissioner Rosenblum: [Unintelligible – speaks completely off microphone starting at 15 54:40]. 16 17 Mr. Kamhi: Thank you. 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Rosenblum: [Unintelligible main priorities for the City didn’t have anyone 1 unintelligible so it’s great to have you]. 2 3 Mr. Kamhi: Thank you. 4 5 Commissioner Rosenblum: [Unintelligible-off microphone One thing that was brought up this is 6 different from a lot of these other areas that had parking unintelligible in that there’s not a lot 7 of businesses that are adjacent. So the big unintelligible adjacent hasn’t really been addressed 8 which is unintelligible. So to what extent did you guys unintelligible but I assume this is coming 9 here tonight unintelligible I would assume that the difference the reason why it’s so full at 10 midday]. 11 12 Mr. Kamhi: Yes it did predate me, but however yes there were discussions and there was 13 actually what we would call TDM improvements to Paly’s permit. Paly’s actual permit process 14 which was establishing a range based permit system on Paly so they don't have somebody from 15 Evergreen driving to Southgate and parking. Hopefully they have people driving from further 16 that would get priority on the permits. Does that make sense? 17 18 Commissioner Rosenblum: I'm not sure I completely [grok] what you just said. So can you 19 restate please? 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Kamhi: Sure. So staff worked with Paly in order to establish a system for how students 2 would be assigned parking permits based on their location so that students are within close 3 biking and walking range would not have priority for permits. 4 5 Commissioner Rosenblum: Yeah, yeah. 6 7 Mr. Kamhi: The permits priority would go to students that are further out. 8 9 Commissioner Rosenblum: And so now that this is about to become probably a reality my guess 10 is I am in support of this I'll just say and I'm my guess is that because we've seen this once and 11 we supported it that we will also support again. Has Paly expressed concerns about obviously 12 some portion of either students or parents, staff are parking this neighborhood and now 13 they've implemented some TDM measures so has there been further, has there been follow up 14 with them after they've implemented these TDM measures and is there any concern or 15 consternation that this is coming into effect? 16 17 Mr. Kamhi: Unfortunately I cannot speak to that, but I do know that we do have regular 18 discussions with Paly in particular about walking and biking. We have Safe Routes to School 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. team that actually coordinates quite a bit with them on helping their students and making sure 1 they're safe walking and biking paths to their school. So that is a focus. 2 3 Commissioner Rosenblum: Yeah, but I’m not (interrupted) 4 5 Mr. Kamhi: But I can’t speak to whether the TDM they've seen an impact that's alleviated all of 6 their concerns with students parking there, but I do want to add that we really think that it's 7 not just Paly students parking in this area. We also think it's Stanford students that are avoiding 8 paying the permit price. 9 10 Commissioner Rosenblum: And by the way I'm not, my question is more I think that we owe it 11 to our the neighbors to have a discussion, let them know this taking place, and get the reaction. 12 That should be part of the package that goes to Council. In the case of Paly they should have 13 sufficient parking for their staff for example. If their students live too close to get a permit I 14 don't think that they should be parking in the neighborhood for example. I think the parents if 15 there's a two hour limit while I agree that two hour limits can be harsh I think it's sufficient, but 16 I do think they’re a major entity and the neighbor and they're probably the source of some of 17 this traffic. So both Stanford and Paly need to be clearly informed that this is coming down, 18 down the road and that should be included in the Council package, just the communications 19 and if there's been any response. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 My next area kind of reflects a couple of comments that were already made, but I think the 2 packet should include learnings in particular from the Downtown RPP. And the reason I say the 3 Downtown RPP was there was a lot of thought that was put into the mix of businesses and 4 residents. There's been some time to collect dissatisfaction. So for example I live also in the 5 Downtown RPP area. To me the streets are now easy to park on. It's been great for me. 6 Sometimes people complain that their visitors have been ticketed. There are people who are 7 doing work in our neighborhood that get ticketed. So I feel badly the folks that come and do 8 clean water monitoring at the stream that goes through our neighborhood now are getting 9 ticketed and that's terrible. They’re a nonprofit. Things like that, just things where the 10 everyday life is disrupted more than some people thought it might have been. And so you do 11 have neighbors grumbling like geez I didn't think that now my mother gets ticketed every time 12 she comes here and I always forget. So things do go wrong and so I think as part of the package 13 should be an attempt to consolidate learnings and we should get better at this each time we go 14 and so the package doesn't include that. 15 16 And to the response about we don't know what the costs will be or the revenue will be we 17 should know the cost and revenue right now of the Downtown RPP so that should be included. 18 And then people can do the math themselves and they can scale it based on the size of this. So 19 I don't think that's a good answer. I think that we have enough data right now because we 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. have these programs implemented that you should at least include that. We're going to be 1 losing money on each of these as they're currently priced and so the City should know how 2 much money we're losing. 3 4 And then finally there was a little bit of discussion what the goals should be. So what does 5 success look like? And for me personally I may be a little different from others up here on a 6 couple dimensions, but I'll just say Southgate’s a little different. Its streets are much narrower. 7 And so to me there's a safety issue in Southgate that is not as apparent in other places 8 especially because it is a bike route. And so it's very narrow and so success to me is probably 9 some kind of safety dimension, but I'm not going to be able to be that helpful around how to 10 define it. But some capacity that’s probably lower than other neighborhoods. Capacity 11 utilization that's probably lower than other neighborhoods; however, in general I do support 12 the Donald Shoup golden rule that 85 percent capacity is what you want to have a situation 13 where on every block face there's an empty space. And so you don't want to have people 14 circling around the block. You don't want to have people that are simply unable to park 15 anywhere near their place of residence; however, I also don't think that the goal is streets clear 16 of cars. 17 18 And so Donald Shoup has done a lot of research in this area. He is America's expert on parking 19 programs and I think we would do well to follow a lot of his recommendations and the golden 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. rule is 85 percent. And so I think it's stood the places that have implemented his philosophies 1 quite well, but in this case I would say it's a bit different. It is so narrow that there's something 2 it's not just an issue of people not finding parking it's an issue of just basic safety and getting 3 around. So I'm not sure if that's helpful, but I would say this neighborhood’s goal should be 4 lower than probably other neighborhoods with standard street width. 5 6 Those are all of my questions and comments. I think like I said I think this package is quite 7 good. I would just say before it goes to Council I think you owe them some comparative data 8 and you probably owe them the feedback that you've gotten from the neighbors so Paly and 9 Stanford. 10 11 Chair Alcheck: Ok, thank you. I have a few questions and comments. I'll start with the 12 businesses. I think it seems like we've chosen an arbitrary number and I would suggest that we 13 look at this from the perspective of the landowner as opposed to the business user, figure out 14 what are the and this might be sort of more applicable to the Planning Staff, but figure out 15 what are the what would be the requirements for parking based on any of the applicable uses 16 under our current zoning for that property. And then if the property is under parked then sort 17 of see what that number is. Because an under parked property elsewhere would have the 18 opportunity to park in sort of the streets adjoining the business. In this particular case we’re 19 going to make that impossible. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 So if for example it's over parked for any of its contemplated uses under our current zoning 2 then what does it need any permits for? And if it's under parked substantially even though it's 3 current use doesn't really you don’t feel like there's a significant need based on its current user 4 if you're going to codify this it seems like you'd want to not really think about the current user 5 you’d want to be thinking about the landowner who may have an empty building when the 6 lease of the current user is up and then can't lease it because the parking is problematic. So I'd 7 like us to move away from sort of an arbitrary number and just have some reasoning. I would 8 recommend I would support an amendment if we were looking at the recommendation that's 9 in front of us as is I would sort of support an amendment to having a more analytical approach 10 to the number we choose for the employee parking permits. We may not need them at all. 11 12 I want to echo I mean some of the comments tonight were about consistency. I want to just 13 echo that. In addition to the inconsistencies and cost are the, is the Evergreen neighborhood 14 are dwelling units in the Evergreen neighborhood do they also have the opportunity for six 15 permits? 16 17 Mr. Kamhi: Yes. 18 19 Chair Alcheck: And then how’s (interrupted) 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Kamhi: Permit distribution is the same. 2 3 Chair Alcheck: And how is that and what is that in the Downtown RPP. 4 5 Mr. Kamhi: I'm sorry, I’m not sure. Offhand I believe it's the same. 6 7 Chair Alcheck: Is it six? Ok and then I don't know, but I think Crescent Park is like two, but it's a 8 slightly different program. 9 10 Mr. Kamhi: Yeah, the no overnight parking program is the one that's different. 11 12 Chair Alcheck: Yeah. Ok. I think I would also suggest that the radio silence from the school is 13 just strikes me as sort of odd just not understanding this position from the school on 14 (interrupted) 15 16 Mr. Kamhi: Just to clarify on that I really would not say that it's been radio silence. I just can't 17 speak as to whether there's been comments received on it since then. If there had been any 18 negative comments about it I would assume that I would have heard so. 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: No I think I mean I think throughout our experience with this particular 1 neighborhood I don't think we've heard from the school. So I can speak for it. 2 3 Mr. Kamhi: Well I would say that we definitely did engage the school on this issue and that's 4 what led to the changes in their permit system. So. 5 6 Chair Alcheck: You mean the addressing some of the community concerns changed their 7 system? 8 9 Mr. Kamhi: Yes, yes. 10 11 Chair Alcheck: Yeah, no I can appreciate that. 12 13 Mr. Kamhi: Right. 14 15 Chair Alcheck: I just mean are they concerned with what some of the… with some of the 16 consequences of the RPP will be. And I mean the radio silence in that regard just and I think 17 one of our Commissioners sort of brought it up tonight which is about the data. And I would 18 agree I don't know that these color charts are helpful. I think you could you have the data so 19 you could easily actually include a percentage on the block. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Kamhi: Yep. 2 3 Chair Alcheck: So for example if let’s just take twelve to two so if the if one side of Castilleja 4 Avenue which is yellow and red and the other side which is green and red you could probably 5 just put the percentages in. You could say it's 76, 45, you could… that might be more helpful. 6 And this might just be me, but I'm not that persuaded by our process that essentially let me try 7 to say this eloquently. There is a way for this the community to disengage from this RPP by 8 having 50 plus 1 individuals say so. 9 10 Mr. Kamhi: Yep. That’s correct. 11 12 Chair Alcheck: And even though we have this seven, here I’m trying to pull it up. Even though 13 we have this response rate of 74 percent and it's in line with our sort of current guidelines 14 essentially less than 50 percent of the actual residents are suggesting they want it, 95 out of 15 232. And I'm not suggesting that we shouldn't support this program or that there isn't a need 16 here, but it's just so shockingly low. Just it just strikes me as so odd and if this community is so 17 if this is so problematic in this community I don't understand there’s 230 homes. Why are we 18 hearing from so few of them? Maybe that's maybe nobody has time? Maybe that's what that 19 is or I don’t know. It just strikes me as 74 percent is a great number. If we had 74 percent of 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. people responding I would be even more excited. There's just something odd about the fact 1 that only 95 people have responded, but maybe not. Maybe that's just typical. 2 3 Ok, I'll just say one more thing and this applies I think to the timeline essentially. I remember 4 when we went over this I think at our last meeting when we suggested that this was a zone that 5 should move forward with an RPP it was basically in light of the fact that we were we strongly 6 encouraged one in Evergreen. And there was this notion that we anticipated that the I guess 7 southern blocks of the Southgate area would probably be impacted once the Evergreen got 8 started. So I guess what I'm trying to say is I find the data that we're using to sort of create… I 9 think when you in my opinion when you approach the City Council with the numbers I think 10 that there should be an asterisk around your data for two reasons. Number one it's likely to it 11 likely would have been much different if Evergreen was already in play. 12 13 Mr. Kamhi: Yep. 14 15 Chair Alcheck: And also it doesn't reflect that some of the changes that have taken place since 16 you did the survey. And so it's… it doesn't really serve the purposes of the discussion because 17 we don't really know if it's accurate. I don't know that that necessarily is a reason not to 18 support the RPP, but I would just suggest that. 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Ok so [those are] the end of my comments and questions. If there are others who would like to 1 speak why don’t you light up the board and I'll call on you. And if someone wants to make a 2 Motion at any time they can and if anybody wants to make an amendment at any time we can 3 entertain that as well as in this process. Ok, I have Commissioner Lauing. 4 5 MOTION 6 7 Commissioner Lauing: But I did the light correctly. That’s good. Just to get the discussion going 8 I would move to adopt a resolution. 9 10 SECOND 11 12 Chair Alcheck: I'll second that Motion. 13 14 Commissioner Lauing: And just to speak very briefly to it I think that the one year pilot gives us 15 time to get a lot of data including the items that you mentioned Chair Alcheck in terms of the 16 some of the specifics and it's not too far out that we would be penalizing businesses for 17 example in the in the short term. So I think we get that that data including other things we've 18 talked about tonight like budgets, revenue, things like that. So I think in general you've done 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. your job and Council has asked for implementation of a program I think the program 1 implication as is not withstanding I thought the constructive comments from up here tonight. 2 3 Chair Alcheck: Ok. I'm going to allow individuals who have sort of lit up the board to speak. 4 Commissioner Rosenblum. Second, did you light up? 5 6 Commissioner Rosenblum: Yeah just I’m in support of the Motion, but I was just going to give 7 two things first. Commissioner Summa I just looked it up that we’re talking about four permits 8 and in Downtown area it's also four plus we have the hangars that we can get. So I just wanted 9 to correct the record. It’s not six it's four. 10 11 But also just in terms of turning in surveys by mail and getting them back I think that the 12 number they got back is extraordinarily high. It's very rare to get anything close to this so I 13 think we are dealing with a pretty good survey and pretty good representation of neighborhood 14 sentiment so just I wanted to say that I felt quite good actually about the percentage that came 15 back that we're looking at the true neighborhood sentiment at this period of time. 16 17 Commissioner Lauing: But it's why I asked if they were sent a reminder to those that didn't 18 respond in the first time and if we really wanted a turn out we could have City or 19 Commissioners volunteering to go door to door because it's only 200 doors. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Rosenblum: Yeah. 2 3 Commissioner Lauing: So. 4 5 Chair Alcheck: I have another light, it’s Commissioner Monk. Is that your light? No. Is it yours? 6 I haven’t… our names don't really line up with the light. That’s… Anybody else? Yeah. 7 8 Commissioner Monk: So have a question not related to the Motion, but what happens after one 9 year? Is this truly a pilot that gets reevaluated after a year? 10 11 Mr. Kamhi: I, well I should say it wouldn't be reevaluated at the end of one year it would be re-12 up, it would be evaluated in an ongoing basis throughout the pilot and we can report back as 13 you'd like to hear about the program's successes, challenges, and also the impacts to the 14 neighbors. 15 16 Commissioner Monk: So if we vote yes to support this creation of a RPP program today it will 17 continue indefinitely beyond one year. 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Kamhi: That's not my understanding. This is a my understanding is this is a pilot program 1 for one year to be reevaluated for the program's success. 2 3 Commissioner Monk: Alright. 4 5 Mr. Kamhi: That’s my under (interrupted) 6 7 Commissioner Monk: So I'm new at this myself so I don't know if it's appropriate to make some 8 sort of amendment that it does get reevaluated after a year to see that it (interrupted) 9 10 Commissioner Lauing: In the recommendation under Number 1 it says it's a one year pilot. 11 12 Commissioner Monk: Right. So was the Downtown, but then it just sort of converted into this 13 program. So that's what’s not really clear to me. 14 15 Commissioner Lauing: I mean after the one year pilot then (interrupted) 16 17 Commissioner Monk: It's not clear to me what happened. 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Kamhi: I can't speak to that for certain, but I do believe that it was reevaluated the 1 Downtown after the first year. This was definitely before my time, but I do believe it was 2 reevaluated. I believe that it had to come to Council to be extended. 3 4 Commissioner Monk: And there was an opportunity for public comment? 5 6 Mr. Kamhi: Yes. That was a public (interrupted) 7 8 Commissioner Monk: So I would just [unintelligible] make sure that then after a year that there 9 would be opportunity for public comment that persons impacted would be properly and 10 effectively notified. 11 12 Mr. Kamhi: Yeah. 13 14 Commissioner Monk: Because that was not the case I don't think for Downtown residents. 15 16 UNFRIENDLY AMENDMENT #1 17 18 Chair Alcheck: Ok, I’d like to make an amendment and I'd prefer if we, you treat it as an 19 Unfriendly so we could just quickly get it out of the way if there’s support for it or not. Which 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. would be that we revise the recommendation, recommended vote, recommended program to 1 reflect more analytical review of the employee parking permits as opposed to the sort of 10 2 that are in the current report. 3 4 Commissioner Lauing: Would that language… 5 6 Chair Alcheck: So ideally what I'd like to do is to suggest that as Unfriendly and then if anybody 7 feels… you know what I mean? What I'd like you to do is treat that as Unfriendly. 8 9 Commissioner Lauing: But if I accepted it as friendly we can still talk about it. 10 11 Chair Alcheck: You’re right, but it would amend your Motion and we'd be voting on that 12 together which won’t give individuals the opportunity. We can do that. You’re entitled to that. 13 14 Commissioner Lauing: Is that language understandable in terms of what different action you 15 would take? 16 17 Chair Alcheck: I can be more specific. What I'm suggesting is that the parcel that is the business 18 entity be evaluated to determine whether it's under parked for its possible uses and if so for 19 the number of employee permits to have some relationship to that scenario. 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Mr. Lait: So I think we understand the sentiment. I don't know what… Phillip can speak to why 2 we came up with 10 and I understand your interest in having it be rooted in something a little 3 more analytical just sort of back of the envelope research of this now looks like there's 10 4 parking spaces at 1515 El Camino Real which is the property that we're one of the two 5 commercial properties that we're talking about or commercial uses. And just looking up the 6 square footage of the building on some online sources it looks like it's about just over 8,000 7 square feet. Medical use is a 1:250 use. That has a requirement of 32 parking spaces for that 8 building for the uses that are there now. I mean this is back of the envelope stuff, no floor 9 plans. 10 11 Chair Alcheck: Right. 12 13 Mr. Lait: Details. And if there's 10 onsite there's a deficiency of 22 parking spaces for that use. 14 I’ve also learned about some other interesting things about the site in terms of it was previously 15 zoned CN and the City actually initiated the change to RM-15. So there's some interesting 16 history with that, but so that's an example for the one. I haven't done any [unintelligible] 17 looked at the other one. 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: So yeah. So essentially what I'm suggesting is that we allot employee permits in 1 the number that the that the office or medical office [unintelligible] I should use the zoning 2 designation building is deficient as opposed to 10 because I don't want to create a scenario 3 where that building is somehow under… struggling (interrupted) 4 5 Commissioner Lauing: Yeah, I'm just trying to do the right wordsmithing now is all. 6 7 Chair Alcheck: Yeah. 8 9 Mr. Kamhi: So if I can I believe that both of the businesses were talked to and that was based 10 on estimated demand although we think that it's 10 or less for those two buildings and 11 although I really cannot speak definitively on this; however, this is recommending two percent 12 of the entire parking inventory for employees. 13 14 Chair Alcheck: Yeah so to be really clear it’s one thing in my opinion to speak to a business 15 owner, it’s another thing to speak to a land owner. And if you're a land owner I highly doubt 16 you would ever say you know what I don't… You wouldn’t walk away from an opportunity to 17 potentially have access to parking if your building was “under parked” and that's never been an 18 issue for this land owner up until now. And I unless the business owner owns the property then 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. it strikes me as… Anyway so what again I there may be other sort of opinions here and I see a 1 light. 2 3 Commissioner Lauing: Ok, so let's go the other direction then and let's say that it’s Unfriendly. 4 5 Chair Alcheck: Yes. I would prefer that. 6 7 Commissioner Lauing: Because it's kind of complicating the Motion a little bit. 8 9 Chair Alcheck: Yeah. I'd like to make an Unfriendly (interrupted) 10 11 Commissioner Lauing: And my point on it was I think that your concern is taken care of in the 12 year during which we have the data and it could be adjusted after the pilot. 13 14 Mr. Kamhi: If I can also if we were to determine that there was a significant impact that we 15 hadn't anticipated we could come back to you immediately following program implementation 16 and that's what we should do on our in our ongoing analysis of how this is performing is report 17 back to if there's any significant issues. 18 19 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: Yeah, ok so here's what I’d like to do. I'd like to basically I’ll propose my 1 language again and we’ll treat it as an Unfriendly and then we can take a vote on it or if there's 2 people who'd like to speak to it. 3 4 Vice-Chair Waldfogel: So I’ll second it as an Unfriendly. 5 6 RESTATED UNFRIENDLY AMENDMENT #1 7 8 Chair Alcheck: Ok. That would be great. Thank you. And to before you second it I'll just be 9 really specific what I'm suggesting and I appreciate what you're saying about one year, but this 10 lease could be a year and then we find it like… Ideally what I'd like to do is suggest that the 11 employee parking have a relationship to the zoning requirements for parking related to the 12 parcel. That's my very specifically language. 13 14 SECOND 15 16 Vice-Chair Waldfogel: I’ll second that. 17 18 Chair Alcheck: Ok, great. I believe I have a light from Commissioner Summa? Ok, good. 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Summa: So Jonathan I just have a question. You were talking about the building 1 just now on the corner of Churchill and El Camino, right? So the other building has a big parking 2 lot and I actually think this is kind of the flipside of what I brought up because I was sort of 3 asking for this also, but I was thinking why do they need to have any? If it hasn't been 4 established that they have any need why do it? So it may be that all 10… I mean it would be 5 interesting to know, but my intent behind that was not to put more commercial parking in the 6 neighborhood. I believe that Council direction was to park adjacent merchants and but I do 7 think that these medical uses are also neighborhood serving. So I don't think it would hurt to 8 be more precise with that analysis because 10 seem kind of arbitrary to me and that's why I 9 brought up the questions I have. But just I want to be clear that my intention was not to put 10 more commercial parking into the neighborhood streets. 11 12 Chair Alcheck: Ok, Commissioner [Note-Vice-Chair] Waldfogel. 13 14 Vice-Chair Waldfogel: Thank you. Let me just say why I don't support this. I mean I think that 15 these are good points that can be addressed if or when the use is changed, but the current uses 16 seem to be properly accommodated if some new development or some use were to change at 17 this site I could see a new discussion happening, but I just don't think we need to anticipate that 18 today. Because we just don't know what those other things might look like. 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: Ok if (interrupted) 1 2 Mr. Kamhi: If I can the other clinic which is the IVF it looks like they have five parking spaces 3 within their lot. There's a separate building which is actually not considered part of this district 4 that's on the corner that has a larger lot. 5 6 VOTE 7 8 Chair Alcheck: Yeah. Ok. So just to be clear I'm not suggesting more or less parking. I'm just 9 suggesting the approach to those parking permits have an evaluation that’s based on what our 10 City would require that particular zoned parcel to have which could very likely be under parked. 11 Ok, I don't want to keep speaking to it. I'd rather just put it to a vote. So I'm going to just safely 12 assume that you all know what we're voting on. This is the amendment, the Unfriendly 13 Amendment. All those in favor of this Unfriendly Amendment please raise your hand. Ok. 14 Alright, all those opposed? Alright, the nay’s have it. 15 16 UNFRIENDLY AMENDMENT #1 FAILED (2-5, Chair Alcheck and Commissioner Summa supported) 17 18 VOTE 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: Ok, then let's move forward with our current Motion. All those in favor of 1 moving forward with the recommendation as written in the staff packet please raise your hand. 2 That is and all those opposed. Ok, we have six in favor and one dissenting. Would you care to 3 speak to your dissent? 4 5 MOTION PASSED (6-1, Commissioner Monk opposed) 6 7 Commissioner Monk: So I do want to support this Motion. I think this neighborhood is in dire 8 need of some way to address the congestion on the streets and the parking. As I said I've been 9 there myself and it is incredibly difficult to get in and out of driveways and to navigate those 10 narrow alley, the narrow streets. Also having a bike lane there and having it as a bike boulevard 11 it's important to have a program in place. I don't know that this is the answer to those 12 problems and not having any insight as to what effect the TDM and the engineering has had 13 leaves me with the question as to what is the occupancy rates that we are looking at because 14 what we were provided with was done months prior to that and so we don't have data points 15 to really know what's happening currently or since the TDM was done. So as much as I do think 16 this neighborhood does need a program I don't know if it needs it on every street or if there's 17 an alternative solution that I'd like to see help this neighborhood navigate its parking problems 18 a little bit more easily. 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Chair Alcheck: Ok, thank you. For the purposes of clarity the Unfriendly Amendment was 1 supported by Chair Alcheck and Commissioner Summa and all the other Commissioners 2 opposed. And the Motion was supported by all the Commissioners with the exception of 3 Commissioner Monk. Ok, just to clear I didn’t call the names out. So there you go. Ok, that 4 concludes item agenda, Agenda Item Number 2. 5 6 Commission Action: Motion made by Commissioner Ed Lauing to Recommend 7 to the City Council the Creation of a new Residential Preferential Parking (RPP) 8 Program in the Southgate Neighborhood Bounded by Churchill Avenue, 9 Caltrain Rail Corridor, Sequoia Avenue, and El Camino Real. Motion was 10 seconded by Chair Alcheck. Motion passed 6-1 (Monk against) 11 Approval of Minutes 12 Public Comment is Permitted. Five (5) minutes per speaker.1,3 13 3. March 29, 2017 Draft Planning & Transportation Commission Meeting Minutes 14 15 Chair Alcheck: I'd like to ask if anybody would like to make a Motion to approve the draft 16 minutes from the March 29th meeting. 17 18 MOTION 19 20 Commissioner [Woman]: I’ll make that Motion. 21 22 Chair Alcheck: Second? Can I get a second? 23 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 SECOND 2 3 Commissioner [Man]: I’ll second. 4 5 Chair Alcheck: Thank you. Alright, all of those in favor of approving the draft or excuse me, 6 approving the minutes please raise your hand. Great, so it’s unanimous. 7 8 MOTION PASSED (6-0) 9 10 Commission Action: March 29th meeting minutes were approved 7-0. 11 Committee Items 12 13 Chair Alcheck: Aright that concludes our meeting. Are there any committee items in need of 14 reporting? 15 16 Commissioner Summa: Just briefly actually the Citizen Advisory Committee (CAC) did meet. It 17 was our penultimate meeting. I was not there. I could not attend, but I understand that the 18 recommendation to refer the Implementation Element to Council was approved and also the 19 Governance Element which the CAC didn't work on it was written by staff. We have one more 20 meeting and then staff will wrap it up with in a bow for us. 21 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 1 Commissioner Questions, Comments or Announcements 2 3 Chair Alcheck: Ok. Are there any Commissioner questions, comments, or announcements? 4 5 Commissioner Gardias: A quick question if you could just disclose what’s the proposed agenda 6 for the meeting with the Council? I know that there will be an email, but I think it would not 7 hurt if you could just tell us about the three topics that will be on the agenda. Thank you. 8 9 Jonathan Lait, Assistant Director: Yeah, I can let me just pull up the report. 10 11 Chair Alcheck: Just to be clear the agenda that we've put together essentially reflects a 12 discussion that Commissioner [Note-Vice-Chair] Waldfogel and I had with Vice-Mayor Kniss and 13 Mayor Scharff and then there's essentially a summary of some of the points that we came up 14 with and I is it unedited? 15 16 Mr. Lait: No, no. Well you're about to hear. 17 18 Chair Alcheck: Ok, yeah. I don’t know so this is good news. 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Mr. Lait: You’ll be surprised maybe. But it's along the lines of I believe what was discussed and 1 it starts off with introduction. There's new obviously Commissioners and Council so there's an 2 introduction moment which is expected to last a few minutes. And then there is a Council led 3 discussion on Planning and Transportation Commission (PTC) priorities and the focus for 2017. 4 And another discussion on the PTC process improvement opportunities is another Council led 5 discussion. And it ends with a summary and conclusions. Hopefully the Mayor will summarize 6 sort of the essence of the conversation. So that's the topic. It's about an hour long study 7 session so there's a lot to potentially talk about in that time. 8 9 Chair Alcheck: Any other comments, questions, announcements? Alright, oh sorry. 10 11 Commissioner Gardias: Yes my in the same regard so in terms of the priorities for 2017 is there 12 a list from either Council’s side or from a Commission’s side? 13 14 Chair Alcheck: I can respond to that. I think our the objective was to give the City Council 15 Members the opportunity to articulate their perspectives on the priorities for 2017 to us. And 16 in essence giving us an opportunity to seek clarity during that Council led discussion if there was 17 issues that they've identified. So for example during our meeting with the leadership they in 18 essence can't develop the priorities without consulting all the Council Members and so the in 19 the absence of having an actual meeting. So they could have a meeting and then they could 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. bring those priorities and there would be a list to our meeting, but I believe that the objective is 1 essentially to develop that list in a discussion format. So my sense is that… Mayor Scharff has 2 his own set of priorities, but other Council Members may also sort of voice some of their 3 priorities in that discussion. And I'm hoping that we'll have the opportunity to ask questions of 4 clarity or guidance if for some if there's if any of you feel like that would be helpful. I think 5 they’re allotting 30 minutes to the discussion on priorities and or 25 minutes on the discussion 6 of priorities and then 25 minutes on process improvement opportunities. 7 8 Commissioner Gardias: Yes. So thank you. I think that if I may ask Jonathan would it be 9 possible that staff giving the schema of the of the upcoming meeting is it possible that staff 10 could prepare its priorities? Does staff can staff articulate priorities for 2017 or maybe even an 11 encroaching 2018 is there some is there this is would it be possible? And then circulate this to 12 us and of course share it with Council. It would just give us opportunity to maybe use it in 13 building our perspective because your priorities would probably reflect your capabilities within 14 you currently operate. 15 16 Mr. Lait: Alright. So I think that this is an opportunity to hear from Council what the Council 17 thinks the priorities ought to be for the PTC. We have our staff responsibilities that the Council 18 has asked us to put forth for the work program that we do so I think it's a slightly different 19 conversation. I would imagine the types of things that the Council might be interested in 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. talking about probably relate in part to the Comp Plan effort that the Commission will be 1 spending time on over the summer, but I think that's the opportunity to hear from the Mayor 2 and the City Council as far as what the heading of that discussion is to hear from the Council the 3 Mayor what it believes are the priorities for the PTC. And presumably that's being done with 4 the understanding that there's there may be workload implications and things of that matter 5 for our Department which would presumably be part of the conversation too. 6 7 Commissioner Gardias: Yes it is a different discussion I totally agree with this. What I where I 8 was getting with this question I would like to pretty much understand which maybe you can 9 answer over the email or verbally is there anything else that staff there is there any other 10 priority beyond the list that is published in the packet? 11 12 Mr. Lait: Yeah I wouldn't necessarily call those all priorities. Those are a combination of I mean 13 those are just work products that are coming to the Commission. Yeah there's a mountain of 14 work that we're working on whether it's the Transportation Division or a Long Range Planning 15 Program and the Current Planning Program which is some of the stuff that you're seeing on that 16 list. So I don't know that I've received the latest feedback from the City Council's retreat where 17 I think they talked about some of the priorities, but I can certainly have that conversation with 18 Director Gitelman when she returns next week. 19 20 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Commissioner Gardias: Yes. If you could share it with us if there is of course anything to share 1 that would just help us in preparation. Thank you. 2 3 Chair Alcheck: Ok, with that I would like to conclude our March or April 26th meeting. The time 4 is 7:47; excuse me, 7:37. Thank you all for being here. 5 Adjournment 7:37pm 6 _______________________ 1. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson’s presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non-speaking members agree not to speak individually. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Palo Alto Planning & Transportation Commission 1 Commissioner Biographies, Present and Archived Agendas and Reports are available online: 2 http://www.cityofpaloalto.org/gov/boards/ptc/default.asp. The PTC Commission members are: 3 4 Chair Michael Alcheck 5 Vice Chair Asher Waldfogel 6 Commissioner Przemek Gardias 7 Commissioner Ed Lauing 8 Commissioner Susan Monk 9 Commissioner Eric Rosenblum 10 Commissioner Doria Summa 11 12 Get Informed and Be Engaged! 13 View online: http://midpenmedia.org/category/government/city-of-palo-alto or on Channel 26. 14 15 Show up and speak. Public comment is encouraged. Please complete a speaker request card 16 located on the table at the entrance to the Council Chambers and deliver it to the Commission 17 Secretary prior to discussion of the item. 18 19 Write to us. Email the PTC at: Planning.Commission@CityofPaloAlto.org. Letters can be 20 delivered to the Planning & Community Environment Department, 5th floor, City Hall, 250 21 Hamilton Avenue, Palo Alto, CA 94301. Comments received by 2:00 PM two Tuesdays preceding 22 the meeting date will be included in the agenda packet. Comments received afterward through 23 2:00 PM the day of the meeting will be presented to the Commission at the dais. 24 25 Material related to an item on this agenda submitted to the PTC after distribution of the 26 agenda packet is available for public inspection at the address above. 27 Americans with Disability Act (ADA) 28 It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a 29 manner that is readily accessible to all. Persons with disabilities who require materials in an 30 appropriate alternative format or who require auxiliary aids to access City meetings, programs, 31 or services may contact the City’s ADA Coordinator at (650) 329-2550 (voice) or by emailing 32 ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 33 24 hours in advance of the meeting, program, or service. 34 City of Palo Alto (ID # 7877) City Council Staff Report Report Type: Action Items Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Fiscal Year 2018 CDBG Allocations Title: PUBLIC HEARING: Human Relations Commission Recommends Adoption of the 2017-18 Action Plan and Associated 2017-18 Funding Allocations and Adoption of a Resolution Approving the use of Community Development Block Grant Funds for Fiscal Year 2017-18 Consistent with the Human Relation Commission's Recommendation From: City Manager Lead Department: Planning and Community Environment Recommendation Staff and the Human Relations Commission recommend that the City Council hold a public hearing and take the following actions: 1. Adopt the attached funding Resolution allocating CDBG funding as recommended in the draft 2017/2018 Action Plan and as described in this report; 2. Allocate CDBG funding as recommended in the draft 2017/2018 Action Plan and as described in this report including the contingency plan policies recommended by the Human Relations Commission (HRC); 3. Authorize the City Manager to execute the 2017/2018 CDBG application and 2017/2018 Action Plan for CDBG funds, any other necessary documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds; and 4. Authorize staff to submit the 2017/2018 Action Plan to HUD no later than August 16, 2017 based on revised HUD guidance City of Palo Alto Page 2 Executive Summary The City of Palo Alto receives funds annually from the U.S. Department of Housing and Urban Development (HUD) as an entitlement city under the Community Development Block Grant (CDBG) program. The CDBG program is the principal Federal program providing localities with grants to devise innovative and constructive neighborhood approaches to improve the physical, economic, and social conditions in their communities through “the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income.” HUD requirements include preparation of a five-year strategic plan of action, referred to as a Consolidated Plan, to address priority housing and community development needs and to set goals for attaining identified objectives. An Action Plan is prepared annually to identify specific projects to be funded in that year that implement the strategies identified in the Consolidated Plan. Currently the CDBG program is guided by the 2015-2020 Consolidated Plan adopted by Council May 4, 2015. The draft 2017/2018 Action Plan (Attachment B) was made available for Public review from May 15, 2017 through June 15, 2017. Council is being asked to review the draft 2017/2018 Action Plan with funding recommendations. This year’s Annual Action Plan submittal will be delayed. HUD issued a notice (CPD-16-18) on December 15, 2016 that developed revised procedures to streamline the application process should the U.S. Congress not appropriate HUD funds by the first day of the upcoming fiscal year. In prior years, grantees submitting plans 45 days before the start of the program year were subject to revising the SF-424 form and potentially completing a substantial amendment if funding levels were significantly different than planned. Per Notice CPD-16-18, HUD is advising grantees to not submit the Annual Action Plan before HUD releases the entitlement funding allocation amounts. HUD has approved the delay in the submission of Annual Action Plans until 60 days after the allocations are announced or until August 16, 2017 (whichever comes first). The City plans to submit its Annual Action Plan to HUD in accordance with HUD’s notice. Background The CDBG program is authorized under Title I of the Housing and Community Development Act of 1974, as amended. As an entitlement city under the CDBG program, the City of Palo Alto receives funds annually on a formula grant basis. Palo Alto has historically expended all of its CDBG funds on projects benefiting low- and very-low-income persons. HUD regulations require all CDBG funded activities meet one of the three national objectives:  Benefit low-and very-low-income persons; City of Palo Alto Page 3  Aid in the prevention or elimination of slums or blight; or  Meet other community development needs having a particular urgency, or posing a serious and immediate threat to the health or welfare of the community. All of the funded projects in Palo Alto meet the first objective of benefiting low-and very-low- income persons. Palo Alto has five primary CDBG program activity areas in which to allocate funds: Public Services, Planning and Administration, Economic Development, Housing, and Public Facilities. Federal regulations limit the amount that can be spent on Administration and Public Services. No more than 20 percent of the City’s entitlement grant and estimated program income for the following year can be spent on Administration and no more than 15 percent may be spent on Public Services. The allocations for Administrative activities and Public Services are both proposed to be at the maximum levels in Fiscal Year (FY) 2017/2018, which are $103,105 for Administration and $76,489 for Public Services. Public Service activities include services for homeless persons, housing and emergency services to low income individuals with disabilities, and services to victims of domestic violence. CDBG federal appropriations for Fiscal Year 2017/2018 have not yet been determined. Currently, HUD is requesting a 14% reduction in funds for formula application grants from FY17. For budgeting purposes, City staff has estimated the City’s HUD Entitlement Grant for FY18 based on a 14% reduction in funds from FY17. Consolidated Plan The 2015-2020 Consolidated Plan is a 5-year strategic plan of action that addresses priority housing and community development needs. It also sets specific goals for attaining identified objectives. Each year, an Annual Action Plan is prepared to identify specific projects to be funded to implement the Consolidated Plan. The Consolidated Plan and the Annual Action Plan updates are required by HUD in order for the City to receive federal funding from programs such as the CDBG. Currently the CDBG program is guided by the 2015-2020 Consolidated Plan adopted by Council May 4, 2015. The Consolidated Plan is available on the City website: http://www.cityofpaloalto.org/civicax/filebank/documents/49948. Action Plan HUD requires submittal of an Annual Action Plan, implementing the Consolidated Plan, no later than 45 days prior to the start of the program year, or May 15th of every year, that identifies the specific projects to be funded to implement strategies identified in the Consolidated Plan. As discussed above, HUD delayed the Annual Action Plan submittal date this year due to the expectation that the U.S. Congress may not appropriate HUD CDBG funds by the beginning of the new fiscal year. The last day to submit the Annual Action Plan is August 16, 2017 and the City plans to submit its Annual Action Plan in accordance with the revised deadlines. City of Palo Alto Page 4 CDBG Applications Currently, the CDBG program operates under a two-year funding request cycle. Applications for Fiscal Years 2017/2018 and 2018/2019 were made available in November 2016. A notice of CDBG funding availability was published in the Palo Alto Weekly on November 18, 2016 with completed applications due January 6, 2017. Mandatory pre-proposal conferences were conducted on December 7 and December 15, 2016 to assist applicants with program regulations and project eligibility questions. Because the City did not receive sufficient funding applications for the housing and public facilities category during the regular two-year funding process, the City made available applications for multi-family housing rehabilitation and public facilities projects only in January 2017. A notice of CDBG funding availability for multi-family housing rehabilitation projects was published in the Palo Alto Weekly on January 13, 2017 with completed applications due February 3, 2017. A mandatory pre-proposal conference was conducted on January 19, 2017 to assist applicants with program regulations. The CDBG applications considered for funding for Fiscal Year 2017/2018 are identified on the attached chart (Attachment C). On February 17, 2017 the Selection Committee, comprised of three representatives of the Human Relations Commission (HRC) as well as City Staff from the Planning & Community Environment Department, met to review eight (8) funding applications, which included one (1) new application that was received from La Comida in response to the City’s Request for Proposals (RFP) for Multi-Family and Public Facility Rehabilitation Projects. The proposed programs and projects were reviewed based on available funding and the funding criteria for consideration. The Selection Committee reviewed each proposal and provided funding recommendations to City staff. The Selection Committee’s funding recommendations were presented to the full HRC on March 9, 2017. Meeting minutes are available online: http://www.cityofpaloalto.org/civicax/filebank/documents/57059. At that meeting, the HRC gave the economic development and public facilities category applicants the opportunity to revise their funding request because it was discovered that there would be an additional $26,589 to allocate for these two categories. The Downtown Streets Team submitted a revision to their original funding application for their Workforce Development Program. During this process, La Comida informed the City that they were withdrawing their application because they were unable to secure a site for their new kitchen facilities. As a result, the City re-issued the RFP for Multi-Family and Public Facility Rehabilitation Projects and received one application from the Community Working Group for the rehabilitation of the Opportunity Center, including exterior painting and new flooring for the Center. In addition, the City is proposing to implement a minor home repair program for income-eligible homeowners as part of a pilot program. The intention is for the City to partner with a local non-profit to carry out the rehabilitation activities. The City will issue an RFP if funding is approved for this program. City of Palo Alto Page 5 The HRC Selection Committee reconvened on May 4, 2017 to review the revised Downtown Streets funding request and the new requests from the Community Working Group for their Opportunity Center project and the City’s pilot minor home repair program. In addition, the Selection Committee made a recommendation for a contingency plan for when the actual CDBG allocation is known. The contingency plan is further described in the Discussion section of the report. The Selection Committee’s recommendations were presented to the HRC on May 11, 2017 and were approved unanimously and are reflected in Table 1 below. Applicants awarded CDBG allocations for programs which begin in FY 18 are required to enter into a one-year agreement for FY 18 (Year 1) with consideration for second year renewal in FY 19 (Year 2). An increase or decrease in the City’s total CDBG allocation from HUD for Year 2 can result in an equivalent proportional change for subrecipients in Year 2. Funding is contingent upon the satisfactory accomplishments of contract goals as determined by City staff. The funding available for Public Services and Planning & Administration were approximately 1% less and 5% less, respectively, than in FY 17. The Selection Committee recommended funding reduction for the majority of the Public Service agencies and a slight reduction for Planning & Administration activities in FY 18. The following summarizes the change in funding compared to Fiscal Year 2017:  Public Service – several of the agencies received a slight reduction in funding while two agencies experienced a slight increase in funding. The funding reductions were based on the Selection Committee’s goal of minimizing funding cuts and maintaining services to Palo Alto residents.  Planning & Administration – Project Sentinel and CDBG administration received slightly less funding (7% and 4% respectively) than Fiscal Year 2017.  Economic Development – The funding for the Downtown Streets Team increased to $336,400. This is a 14% increase in funding.  Housing/Public Facilities Rehabilitation – Community Working Group was recommended for $220,000 in funding for painting the exterior of the Opportunity Center and replacing the flooring. The Opportunity Center provides many essential services to homeless low income residents. City staff recommends adding funding in the amount of $108,589 for a new home repair program for very low and low income homeowners earning no more than 80% of area median income. Eligible repairs will include making repairs to address health and safety issues, as well as accessibility upgrades. Citizen Participation A Citizen Participation Plan is a required component of the CDBG Program. HUD regulations require CDBG recipient agencies to prepare and implement a plan that provides adequate opportunity for citizens to participate in an advisory role in the planning, implementation, and assessment of the CDBG program. On October 18, 2010 the City adopted an amended Citizen City of Palo Alto Page 6 Participation Plan and shifted the CDBG advisory role from a separate Citizens Advisory Committee to the established Human Relations Commission (HRC). In summary, the intention of the new plan was to provide a collaborative link between the CDBG funding process and the Human Service Resource Allocation Process (HSRAP). The HRC is now charged with reviewing funding recommendations for the City’s two human service funding sources. A sub-committee comprised of staff and three members of the HRC was established to review the CDBG funding applications and to provide recommendations to the full commission. While both CDBG and HSRAP are operating on a two-year funding cycle, final CDBG funding recommendations need to be reviewed annually since the budget is contingent upon funding allocations received from HUD. The CDBG Selection Committee met on February 17, 2017 and May 3, 2017 at City Hall to discuss the Fiscal Year 2017/2018 CDBG budget, reviewed the multi- family housing rehabilitation application received, and recommended funding amounts based on the estimated funds available. On March 9, 2017 the HRC considered the funding recommendations of the subcommittee at a public hearing and considered revised funding recommendations on May 11, 2017. Commitment of Funds HUD regulations require that CDBG funds be expended in a timely manner. Specifically, the regulatory requirement is that no more than 1.5 times a jurisdiction’s annual entitlement grant amount remains in the City’s Letter of Credit 60 days prior to the end of the program year. In an effort to reduce the backlog of unspent CDBG funds, HUD employs monetary sanctions against jurisdictions that exceed this timeliness requirement. For this reason, all funding applications are scrutinized to ensure the readiness of the program or project to move forward and expend funds in a timely manner. Discussion Palo Alto’s CDBG program continues to be directed towards expanding and maintaining existing affordable housing supply, promoting housing opportunities and choices, and providing supportive services for targeted low-income groups including persons who are homeless, persons with disabilities, the elderly, and other special needs groups. Moreover, the CDBG program places a high priority to expand the goal of creating economic opportunities for low- income persons. 2015-2020 Consolidated Plan Per HUD requirements, the City is required to prepare a Consolidated Plan every five years. The 2015-2020 plan outlines the following six specific goals: City of Palo Alto Page 7  Affordable Housing: Assist in the creation and preservation of affordable housing for low income and special needs households.  Homelessness: Support activities to end homelessness.  Community Services: Support activities that provide community services to low income and special needs households.  Strengthen Neighborhoods: Support activities that strengthen neighborhoods.  Fair Housing: Promote fair housing choice.  Economic Development: Expand economic opportunities for low income households. All of the proposed projects for CDBG funding for Fiscal Year 2017/2018, as presented in the draft 2017/18 Action Plan, address the priority housing and supportive service needs identified in the draft Consolidated Plan. Fiscal Year 2017/2018 Funds Available for Allocation CDBG federal appropriations for FY18 have not yet been determined. Currently, HUD is requesting a 14% reduction in funds for formula application grants from FY17. For budgeting purposes, City staff has estimated the City’s HUD Entitlement Grant for FY18 based on a 14% reduction in funds from FY17.Based on the foregoing; the total amount available for allocation in Fiscal Year 2017/2018 is estimated to be $844,583 as summarized below: $379,477 Estimated Fiscal Year 2017/2018 Entitlement Grant from HUD $329,057 Reallocated Funds from Previous Years: $ 16,946 – City of Palo Alto CDBG Admin (FY 2016) $ 874 – Catholic Charities, YWCA and Project Sentinel (FY2016) $ 65,939 – Microenterprise Assistance Program (FY 2014) $ 245,298 –Excess Program Income not previously allocated to a specific project (FY 2016) $136,049 Estimated Program Income from Palo Alto Housing Corporation that is generated from loan repayments and rental income in excess of expenses on specific properties acquired or rehabilitated with CDBG funds $ 844,583 ESTIMATED TOTAL AVAILABLE FOR ALLOCATION Of the $844,583 of CDBG funds anticipated to be available, the total amount is proposed to be used during Fiscal Year 2017/2018. The following summarizes the calculations for funding limitations that are placed on two funding categories: City of Palo Alto Page 8 Maximum Available for Public Services Estimated Fiscal Year 2017/2018 CDBG Entitlement Grant $379,477 Fiscal Year 2016/2017 Actual Program Income Received1 $130,451 Public Service Cap (15% of $509,928) $ 76,489 Maximum Available for Planning/Administration Estimated Fiscal Year 2017/2018 CDBG Entitlement Grant $379,477 Estimated Fiscal Year 2017/2018 Program Income $136,049 Planning/Admin Cap (20% of $515,526) $103,105 The difference between the funding caps and the amount proposed to be allocated during Fiscal Year 2017/2018, or $664,989, yields the amount that can be used to fund projects within the other three funding categories; Economic Development, Housing, and Public Facilities. Additional funding can be made available for these activities if less is provided for Administration or Public Services. Fiscal Year 201/2018 – Funding Requests and Recommendations Palo Alto’s CDBG program is operating under a two-year funding cycle. Funding for Fiscal Year 2017/2018 is contingent upon the CDBG allocation, program income, and any available funds for reallocation. Public Service and Administration Caps have been calculated in accordance with available funds. All of the agencies remain eligible and meet program goals and objectives. A list of the submitted applications and the funding recommendations for Fiscal Year 2017/18 is included in Attachment A. On March 9, 2017, the HRC recommended approval of the Selection Committee’s funding recommendations including the adjustments described above. As discussed previously, after the March 9th meeting, La Comida removed its funding request from consideration and the City reissued the RFP. On May 11, 2017, the HRC recommended approval of revised funding recommendations that included an increase funding request from Downtown Streets Team, funding for a rehabilitation project at the Opportunity Center and the creation of a Minor Repair Program. Table 1, Fiscal Year 2017/2018 Funding Recommendations, identifies the applications recommended for funding and the final allocation amounts recommended by the HRC. 1 Actual Program Income received in Fiscal Year 2016/2017 includes $130,451 from Palo Alto Housing Corporation loan repayments. City of Palo Alto Page 9 Table 1: Fiscal Year 2017/2018 Funding Recommendations Applicant Agency FY2017 Final Allocation FY 2018 Funding Request HRC Recommendations Public Services Palo Alto Housing Corporation – SRO Hotels Supportive Services $22,983 $ 49,457 $ 21,000 Catholic Charities of Santa Clara County – Long Term Care Ombudsman $5,012 $ 10,000 $ 7,000 LifeMoves- Opportunity Services Center $35,592 $ 50,000 $ 35,000 YWCA/Support Network – Domestic Violence Services $8,020 $ 10,000 $ 8,489 Silicon Valley Independent Living Center – Housing and Emergency Services $5,012 $ 5,032 $ 5,000 Sub-total $76,619 $124,489 $ 76,489 Admin/Fair Housing Services Project Sentinel – Fair Housing Services $30,941 $ 32,012 $ 28,810 City of Palo Alto - CDBG Administration $77,310 $ 85,000 $ 74,295 Sub-total $108,251 $117,012 $103,105 Economic Development Downtown Streets Inc. – Workforce Development Program $290,723 $336,400 $336,400 Sub-total $290,723 $336,400 $336,400 Public Facilities Rehabilitation Community Working Group – Opportunity Center Rehabilitation $220,000 $220,000 City of Palo Alto – Minor Home Repair Program $108,589 $108,589 Sub-total - $328,589 $328,589 Grand Total $754,418* $906,490 $844,583 City of Palo Alto Page 10 HRC Recommendation: Contingency Plan Although it was recommended at the March 9, 2017 HRC meeting that the Selection Committee would reconvene once the CDBG allocations were finalized if the difference in funding varied by more than 3%, it was requested that the Selection Committee recommend a contingency plan because of the short timeline to submit the Annual Action Plan and funding allocations to HUD. The Selection Committee has made recommendations for a contingency plan in the case of an increase in funding, as well as if there is a decrease in funding. It is recommended that the City Council approve this recommendation. In the case of funding increase, the following plan is recommended:  Public Services: Distribute the additional available amount in the public services cap until an applicant is fully funded. If an applicant reaches the funding amount requested, any remaining funds will be distributed to other applicants who have not yet reached the maximum funding amount.  Planning and Administration: Prioritize funding for Project Sentinel, once Project Sentinel is fully funded, any remaining funds are to be allocated to the City of Palo Alto for CDBG administration.  Economic Development: Maintain recommended funding levels for the Downtown Streets Team  Housing/Public Facilities Rehabilitation: Maintain recommended funding levels for the Opportunity Center and any additional funds will be allocated to the City of Palo Alto Minor Home Repair Program. In the case of a decrease in funding:  Public Services: Distribute any funding decrease proportionately among the remaining public service applicants, but maintain a minimum funding allocation of $5,000 for any applicant.  Planning and Administration: Maintain funding allocation for Project Sentinel, any decrease in funding will be absorbed by the City of Palo Alto for CDBG administration.  Economic Development: Maintain recommended funding levels for the Downtown Streets Team  Housing/Public Facilities Rehabilitation: Maintain recommended funding levels for the Opportunity Center and reduce funding for the City of Palo Alto Minor Home Repair Program Timeline Funding recommendations made by the City Council will be incorporated into the final 2017/2018 Action Plan. Subsequently, the adopted Action Plan will be submitted to HUD no later than August 16, 2017. As previously discussed, HUD delayed the Annual Action Plan submittal date this year, which is typically May 15th, due to the expectation that the U.S. City of Palo Alto Page 11 Congress may not appropriate HUD CDBG funds by the beginning of the new fiscal year. The last day to submit the Annual Action Plan is August 16, 2017 and the City plans to submit its Annual Action Plan in accordance with the revised deadlines. Resource Impact Several measures have been taken to ensure there is no General Fund subsidy for the administration of the CDBG Program. This includes streamlining the program to reduce staffing needs and revised monitoring guidelines to improve efficiency of the program. Currently, staff recovery from the CDBG entitlement grant is approximately $65,000. The total staff recovery from the CDBG entitlement grant proposed for Fiscal Year 2017/2018 is approximately 0.58 full time equivalency, or approximately $63,945, thus not further substantially impacting the General Fund. While the amount is not sufficient to cover the full cost of 1.0 full time equivalency position, it does cover the full staffing needs of administering the CDBG program. The Senior Housing/CDBG Planner assigned to CDBG works on CDBG administration for 0.10 FTE and the balance of their time, 0.90 FTE, is spent on affordable housing. In addition, an hourly Staff Specialist will spend 0.48 FTE on CDBG administration. On May 9th, 2017 the Finance Committee tentatively approved the Fiscal Year 2018 CDBG budget, which due to delays in submission deadlines, included a preliminary estimate of $818,000. As outlined in this staff report, a total allocation of $845,000 is recommended, which reflects increases to the Downtown Streets program ($19,000), and Public Facility projects ($7,589). A detailed discussion of these projects, including changes to preliminary proposals, is included in sections preceding. Contingent upon City Council review of the Action Plan, Staff will make corresponding adjustments to the Fiscal Year 2018 Operating Budget. Policy Implications All of the applications recommended for funding in Fiscal Year 2017/2018 are consistent with the priorities established in the City’s adopted 2015-2020 Consolidated Plan. Moreover, they are consistent with the housing programs and policies in the adopted Comprehensive Plan. Environmental Review For purposes of the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), budgeting in itself is not a project. Prior to commitment or release of funds for each of the proposed projects, staff will carry out the required environmental reviews or assessments and certify that the review procedures under CEQA, HUD and NEPA regulations have been satisfied for each particular project. Attachments: Attachment A: Resolution CDBG FY17-18 (PDF) Attachment B: Draft FY17-18 Annual Action Plan (PDF) Attachment C: Fiscal Year 17-18 CDBG Funding Recommendations (PDF) ATTACHMENT A Not Yet Approved 170531 jb AY/Planning/CDBG FY17-18 1 Resolution No. _____ Resolution of the Council of the City of Palo Alto Approving The Use of Community Development Block Grant Funds for Fiscal Year 2017/2018 R E C I T A L S A. On May 4, 2015, the Palo Alto City Council approved and adopted a document entitled “Consolidated Plan” which identified and established the Palo Alto housing and non-housing community development needs, objectives and priorities for the period July 1, 2015 to June 30, 2020. B. The 2017/2018 Action Plan, the annual funding update to the Consolidated Plan, was subjected to public review and commentary during the period from May 15, 2017 through June 15, 2017. C. The potential uses of Community Development Block Grant (CDBG) funds were evaluated in light of the needs and objectives identified in the Consolidated Plan and reflected in the recommendations and comments of the Human Relations Commission and other interested citizens. D. Under the CDBG program, the highest priority is given to activities which will benefit persons with low and moderate incomes. E. The City Council and the Finance Committee of the City Council have held publicly noticed public hearings on the proposed uses of the CDBG funds for fiscal year 2017/2018. F. CDBG funds allocated to the City for fiscal year 2017/2018 are proposed to implement the programs described in this resolution. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The uses of CDBG funds for fiscal year 2017/2018 are hereby approved and authorized for the following programs: Name of Program Amount 1. Catholic Charities of Santa Clara County – Long Term Care Ombudsman Program. Advocate for the rights of seniors and disabled residents in long term care facilities. $ 7,000 2. LifeMoves – Opportunity Services Center. Provide comprehensive, one-stop, multi-service day drop-in center for critical homeless services. $ 35,000 3. Palo Alto Housing Corporation – SRO Resident Support. Provide in-house SRO Service Coordinator for support counseling, employment assistance and crisis intervention. $ 21,000 ATTACHMENT A Not Yet Approved 170531 jb AY/Planning/CDBG FY17-18 2 4. Silicon Valley Independent Living Center – Housing and Emergency Services. Assist low-income individuals and families in search for affordable, accessible housing. $ 5,000 5. YWCA of Silicon Valley – Domestic Violence Services. Provide crisis intervention, emergency shelter, comprehensive case management, counseling/ therapy, children’s play therapy and legal services $ 8,489 6. Project Sentinel – Fair Housing Services. Provide fair housing services including complaint investigation, counseling, advocacy and community education $ 28,810 7. City of Palo Alto Department of Planning and Community Environment – CDBG Program Administration. $ 74,295 8. Community Working Group – Opportunity Center Rehabilitation. Make site improvements including exterior painting and flooring replacement. $ 220,000 9. Downtown Streets – Workforce Development Program. Provide comprehensive support services for homeless/ unemployed to secure employment. $ 336,400 10. City of Palo Alto – Pilot Minor Home Repair Program. Provide minor home repairs, including repairs that address health and safety issues and accessibility upgrades. $ 108,589 TOTAL $ 844,583 SECTION 2. The total amount set forth under Section 1 of this resolution represents the proposed estimated allocation of $379,477, in CDBG funds from the United States Department of Housing and Urban Development (HUD) for fiscal year 2017/2018, $136,049 in anticipated program income for fiscal year 2017/2018 from Palo Alto Housing Corporation, and a total of $329,057 in prior year resources (Catholic Charities, YWCA and Project Sentinel FY 2016 - $874; CDBG Administration, FY 2016 - $16,946; City of Palo Alto Microenterprise Assistance Program, FY 2013 - $65,939 and $245,298 in FY 2016 excess program income). SECTION 3. The City staff is hereby authorized to submit the 2017/2018 annual Action Plan update and appropriate application forms to HUD for the fiscal year 2017/2018 CDBG funds, and such money shall be spent as set forth in this resolution. The Mayor, City Manager and any other designated City staff or officials are hereby authorized to execute such application forms and any other necessary documents to secure these funds. The City Manager or designee is authorized to sign all necessary grant agreements with the program providers set forth in Section 1. ATTACHMENT A Not Yet Approved 170531 jb AY/Planning/CDBG FY17-18 3 SECTION 4. The funding amounts set forth in Section 1 of this resolution are based on estimated allocation amounts from the Federal Fiscal Year 2017 HUD appropriations; City Staff is authorized to make adjustments increasing or decreasing the funding amounts set forth herein as consistent with the adopted Citizen Participation Plan. SECTION 5. The City Council hereby finds that the fiscal year 2017/2018 CDBG program authorized under Section 1 of this resolution is not a project under the California Environmental Quality Act (CEQA). However, the Council further authorizes and directs City staff to prepare certifications that may be required, under CEQA and the National Environmental Policy Act (NEPA), for each project under the fiscal year 2017/2018 CDBG program prior to the release of funds for any such project. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager Senior Deputy City Attorney Director of Planning and Community Environment APPROVED AS TO CONTENT: Director of Administrative Services CDBG Coordinator Annual Action Plan 1 OMB Control No: 2506-0117 (exp. 07/31/2015) Attachment B DRAFT FISCAL YEAR 2018 ONE-YEAR ACTION PLAN Annual Update of the City’s Consolidated Plan for the Period July 1, 2017 to June 30, 2018 Public Review and Comment Period: May 15, 2017 – June 15, 2017 Prepared by the Department of Planning & Community Environment 205 Hamilton Avenue Palo Alto, CA 94301 Director Hillary Gitelman Eloiza Murillo-Garcia, Senior Planner T: (650) 329-2561 E: Eloiza.MurilloGarcia@cityofpaloalto.org Annual Action Plan 2 OMB Control No: 2506-0117 (exp. 07/31/2015) Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) Introduction HUD requires that entitlement jurisdictions complete a Consolidated Plan every five years. The Consolidated Plan includes an analysis of the jurisdiction’s market, affordable housing, and community development conditions. Additionally, entitlement jurisdictions must also submit an Annual Action Plan to report the distribution of federal entitlement program funding over the Consolidated Plan’s five year period that identifies how funding allocations help meet the goals covered in the Consolidated Plan and a Consolidated Annual Performance Evaluation Report (CAPER) to report the City’s performance. The City’s 2015-2020 Consolidated Plan was approved by Council on May 4, 2015. The five year goals from the Consolidated Plan include: 1. Assist in the creation and preservation of affordable housing for low income and special needs households. 2. Support activities to end homelessness. 3. Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low income and special needs households. 4. Promote fair housing choice. 5. Expand economic opportunities for low income households. The City of Palo Alto is an entitlement jurisdiction that receives federal funding from the Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG) Program. The purpose of CDBG funding is to help jurisdictions address their community development needs. CDBG grantees are eligible to use the resources they receive for Public Services, Community and Economic Development, Capital Improvement Projects (CIP) Public Facilities/Infrastructure, and CIP Housing Rehabilitation. Public Service projects provide social services and/or other direct support to individuals and households in need of assistance. Community and Economic Development projects are focused on assisting businesses and organizations with small business loans, façade improvements, and other initiatives. CIP Public Facilities/Infrastructure projects are those which aim to improve public facilities and infrastructure. CIP Housing Rehabilitation projects are for housing rehabilitation improvements of single and multi-unit housing. This year’s Annual Action Plan submittal will be delayed. HUD issued a notice (CPD-16-18) on December 15, 2016 that developed revised procedures to streamline the application process should the U.S. Congress not appropriate HUD funds by the first day of the upcoming fiscal year. In prior years, grantees submitting plans 45 days before the start of the program year Annual Action Plan 3 OMB Control No: 2506-0117 (exp. 07/31/2015) were subject to revising the SF-424 form and potentially completing a substantial amendment if funding levels were significantly different than planned. Per Notice CPD-16-18, HUD is advising grantees to not submit the Annual Action Plan before HUD releases the entitlement funding allocation amounts. HUD has approved the delay in the submission of Annual Action Plans until 60 days after the allocations are announced or until August 16, 2017 (whichever comes first). It further advised that a grantee may conduct citizen participation on its draft plan (with estimated funding amounts) if the grantee includes a “contingency provision” language in its Annual Action Plan to explain how it will adjust its proposed plan to match its actual allocation amounts, once actual amounts are known. The Human Relations Commission has recommended the following contingency plan for when the actual allocation is known: In the case of funding increase, the following plan is recommended: • Public Services: Distribute the additional available amount in the public services cap until an applicant is fully funded. If an applicant reaches the funding amount requested, any remaining funds will be distributed to other applicants who have not yet reached the maximum funding amount. • Planning and Administration: Prioritize funding for Project Sentinel, once Project Sentinel is fully funded, any remaining funds are to be allocated to the City of Palo Alto for CDBG administration. • Economic Development: Maintain recommended funding levels for the Downtown Streets Team • Housing/Public Facilities Rehabilitation: Maintain recommended funding levels for the Opportunity Center and any additional funds will be allocated to the City of Palo Alto Minor Home Repair program. In the case of a decrease in funding: • Public Services: Distribute any funding decrease proportionately among the remaining public service applicants, but maintain a minimum funding allocation of $5,000 for any applicant. • Planning and Administration: Maintain funding allocation for Project Sentinel, any decrease in funding will be absorbed by the City of Palo Alto for CDBG administration. • Economic Development: Maintain recommended funding levels for the Downtown Streets Team • Housing/Public Facilities Rehabilitation: Maintain recommended funding levels for the Opportunity Center and reduce funding for the City of Palo Alto Minor Home Repair Program Annual Action Plan 4 OMB Control No: 2506-0117 (exp. 07/31/2015) An estimated total of $844,583 is available for funding projects and programs during the 2017 Program Year which correlates with the City Fiscal Year 2018. The City anticipates receiving $379,477 from the federal Community Development Block Grant (CDBG) program. In addition, the City anticipates approximately $136,049 in program income and $ 329,057 in reallocated funds from previous years. Palo Alto has access to a variety of federal, state, and local resources to achieve its housing and community development priorities. Table A, Fiscal Year 2018 CDBG Budget, summarizes the uses of the funds proposed during Fiscal Year 2017. Specific funding resources will be utilized based on the opportunities and constraints of each particular project or program. Table A. Fiscal Year 2018 Budget Applicant Agency Budget Public Services Palo Alto Housing Corporation - SRO Hotels Supportive Services $21,000 Catholic Charities of Santa Clara County – Long Term Care Ombudsman Program $ 7,000 LifeMoves - Opportunity Center - Drop-In Center $35,000 YWCA/Support Network - Domestic Violence Services $8,489 Silicon Valley Independent Living Center – Housing and Emergency Services $ 5,000 Sub-total $76,489 Planning and Administration Project Sentinel – Fair Housing Services $28,810 City of Palo Alto Administration $74,295 Sub-total $103,105 Economic Development Downtown Streets Team – Workforce Development Program $336,400 Sub-total $336,400 Capital Improvement Projects Community Working Group – Opportunity Center Rehabilitation Project $220,000 City of Palo Alto- Minor Home Repair Program $108,589 Subtotal $328,589 Grand Total $844,583 Annual Action Plan 5 OMB Control No: 2506-0117 (exp. 07/31/2015) Summarize the objectives and outcomes identified in the Plan The City is part of the San Francisco Metropolitan Bay Area, located 35 miles south of San Francisco and 14 miles north of San José. The City is located within the County of Santa Clara, borders San Mateo County, and encompasses an area of approximately 26 square miles, one- third of which consists of open space. According to Quickfacts data provided by the U.S. Census Bureau (https://www.census.gov/quickfacts/table/PST045215/0655282), the City's total resident population is 66,853. The City has the most educated residents in the country and is one of the most expensive cities to live in. In Silicon Valley, the City is considered a central economic focal point and is home to over 7,000 businesses while providing jobs to more than 98,000 people. See Attachment 1 for a summary of the Needs Assessment in the 2015-2020 Consolidated Plan. Evaluation of past performance The City recognizes that the evaluation of past performance is critical to ensure the City and its subrecipients are implementing activities effectively and that those activities align with the City’s overall strategies and goals. The performance of programs and systems are evaluated to ensure the goals and projects are addressing critical needs in the community. Palo Alto has historically allocated CDBG funds to activities that benefit LMI persons, with a top priority to increase affordable housing opportunities in the City. However, due to Palo Alto’s expensive housing market coupled with a decrease in CDBG entitlement funds, it is becoming more difficult to create opportunities for affordable housing. As such, during this Consolidated Planning period the City will be focusing on rehabilitating existing affordable housing stock that is in need of repair. Planning Staff works closely with subrecipients to leverage resources and create opportunities for partnership and collaboration. The City’s subrecipients are challenged to think creatively about working together to address the needs in our community. Summary of Citizen Participation Process and consultation process Palo Alto encourages citizen participation through the Action Plan process. This includes consulting local organizations, holding public meetings, and encouraging public comment during the public review period. A total of three public hearings have been planned in order to allow for public input. The City actively reached out to all applicants and posted updates on the CDBG website. A 30-day comment period from May 15, 2017 through June 15, 2017 gave citizens an opportunity to offer comments on the draft Action Plan. The draft was be posted on the City’s CDBG website and copies were made available to the public at the Planning and Community Environment Department at Palo Alto City Hall. Summary of public comments Annual Action Plan 6 OMB Control No: 2506-0117 (exp. 07/31/2015) The City is currently soliciting feedback from the general public regarding the CDBG 2017 Action Plan. Summary of comments or views not accepted and the reasons for not accepting them The City accepts and responds to all comments that are submitted. Summary Please see discussion above. Annual Action Plan 7 OMB Control No: 2506-0117 (exp. 07/31/2015) PR-05 Lead & Responsible Agencies – 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Table 1 – Responsible Agencies Agency Role Name Department/Agency Lead Agency Palo Alto Planning and Community Environment Department Narrative (optional) The City of Palo Alto (City) is the Lead Agency for the United States Department of Housing and Urban Development (HUD) entitlement programs. The City’s CDBG Coordinator is responsible for the administration of HUD entitlements, which include the Community Development Block Grant Program (CDBG). By federal law, each jurisdiction is required to submit to HUD a five-year Consolidated Plan and Annual Action Plans listing priorities and strategies for the use of federal funds. The Consolidated Plan is a guide for how the City will use its federal funds to meet the housing and community development needs of its populations. For the 2015-2020 Consolidated Plan process, the City worked collaboratively with the County of Santa Clara (County) and other entitlement jurisdictions in the County to identify and prioritize housing and housing-related needs across the region, and strategies to meet those needs. The fiscal year 2017/18 Annual Action Plan represents the third year of CDBG funding of the 2015-2020 Consolidated Plan. Consolidated Plan Public Contact Information Eloiza Murillo-Garcia, Senior Planner City of Palo Alto Department of Planning and Community Environment 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 E-mail: eloiza.murillogarcia@cityofpaloalto.org Phone: (650) 329-2561 Annual Action Plan 8 OMB Control No: 2506-0117 (exp. 07/31/2015) AP-10 Consultation – 91.100, 91.200(b), 91.215(l) Introduction During Fiscal Year 2017-18, the City will continue to work with non-profit organizations to provide programs and services for low-income households; private industry, including financial and housing development groups, to encourage the development of affordable housing opportunities regionally and within the City; and other local jurisdictions, including the County of Santa Clara, in carrying out and monitoring regional projects in a coordinated and cost- effective manner. The City will provide technical assistance to the public service agencies it funds with CDBG dollars and will continue to attend the Regional CDBG/Housing Coordinators meetings. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The Santa Clara County Continuum of Care (CoC) is a multi-sector group of stakeholders dedicated to ending and preventing homelessness in the County. The CoC's primary responsibilities are to coordinate large-scale implementation of efforts to prevent and end homelessness in the County. The CoC is governed by the Santa Clara CoC Board (CoC Board), which stands as the driving force committed to supporting and promoting a systems change approach to preventing and ending homelessness in the County. The CoC Board is comprised of the same individuals who serve on the Destination: Home Leadership Board. Destination: Home is a public-private partnership committed to collective impact strategies to end chronic homelessness, and leads the development of community-wide strategy related to the CoC's work. The County's Office of Supportive Housing serves as the Collaborative Applicant for the CoC, and is responsible for implementing by-laws and protocols that govern the operations of the CoC. The Office of Supportive Housing is also responsible for ensuring that the CoC meets the requirements outlined under the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH). In the winter of 2015, Destination: Home and the CoC released a Community Plan to End Homelessness in Santa Clara County (the Plan), which outlines a roadmap for community-wide efforts to end homelessness in the County by 2020. The strategies and action steps included in the plan were informed by members who participated in a series of community summits designed to address the needs of homeless populations from April to August 2014. The Plan identifies strategies to address the needs of homeless persons in the County, including chronically homeless individuals and families, families with children, veterans, and Annual Action Plan 9 OMB Control No: 2506-0117 (exp. 07/31/2015) unaccompanied youth. Additionally, it also intended to address the needs of persons at risk of homelessness. The City is represented on the CoC by its Human Services Manager. Members of the CoC meet on a monthly basis in various work groups to ensure successful implementation components of the Plan action steps. A Community Plan Implementation Team, which includes members of the CoC and other community stakeholders, meets quarterly to evaluate progress toward the Plan's goals, identify gaps in homeless services, establish funding priorities, and pursue an overall systematic approach to address homelessness. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Palo Alto does not receive ESG funds. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities. The City consulted with various groups and organizations as part of the 2015-2020 Consolidated Plan process. Table 2, Agencies, groups, organizations who participated in the Consolidated Plan lists all of those parties who participated in the process. Annual Action Plan 10 OMB Control No: 2506-0117 (exp. 07/31/2015) Table 1 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Abilities United Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 2 Agency/Group/Organization Afghan Center Agency/Group/Organization Type Cultural Organization What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 3 Agency/Group/Organization Aging Services Collaborative Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 4 Agency/Group/Organization California Housing Odd Fellows Foundation Agency/Group/Organization Type Housing Services-Children Community/Family Services and Organizations What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Annual Action Plan 11 OMB Control No: 2506-0117 (exp. 07/31/2015) Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 5 Agency/Group/Organization Casa de Clara San Jose Catholic Worker Agency/Group/Organization Type Services-homeless Services-Health What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 6 Agency/Group/Organization Catholic Charities of Santa Clara County Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 7 Agency/Group/Organization City of Campbell Agency/Group/Organization Type Other government – Local What section of the Plan was addressed by Consultation? Strategic Plan and needs assessment Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 8 Agency/Group/Organization City of Cupertino Agency/Group/Organization Type Other government – Local Annual Action Plan 12 OMB Control No: 2506-0117 (exp. 07/31/2015) What section of the Plan was addressed by Consultation? Strategic Plan and Needs Assessment Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 9 Agency/Group/Organization City of Gilroy Agency/Group/Organization Type Other government – Local What section of the Plan was addressed by Consultation? Strategic Plan and Needs Assessment Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 10 Agency/Group/Organization City of Mountain View Agency/Group/Organization Type Other government – Local What section of the Plan was addressed by Consultation? Strategic Plan and Needs Assessment Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 11 Agency/Group/Organization Bill Wilson Center Agency/Group/Organization Type Services-Children What section of the Plan was addressed by Consultation? Strategic Plan and Needs Assessment Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. Agency/Group/Organization City of Palo Alto - Human Relations Commission Annual Action Plan 13 OMB Control No: 2506-0117 (exp. 07/31/2015) 12 Agency/Group/Organization Type Other government - Local Civic Leaders What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 13 Agency/Group/Organization City of San Jose Agency/Group/Organization Type Other government – Local What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 14 Agency/Group/Organization City of Santa Clara Agency/Group/Organization Type Other government – Local What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 15 Agency/Group/Organization City of Sunnyvale Agency/Group/Organization Type Other government – Local What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. Annual Action Plan 14 OMB Control No: 2506-0117 (exp. 07/31/2015) for improved coordination? 16 Agency/Group/Organization Coldwell Banker Agency/Group/Organization Type Business Leaders What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 17 Agency/Group/Organization Community School of Music and Arts Agency/Group/Organization Type Community Family Services and Organizations What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 18 Agency/Group/Organization Community Services Agency of Mountain View and Los Altos Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. Identify any Agency Types not consulted and provide rationale for not consulting There were no agency types that were not consulted during the Consolidated Plan process. Annual Action Plan 15 OMB Control No: 2506-0117 (exp. 07/31/2015) Other local/regional/state/federal planning efforts considered when preparing the Plan Table 3 – Other local / regional / federal planning efforts Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Regional Continuum of Care Council The CoC works to alleviate the impact of homelessness in the community through the cooperation and collaboration of social service providers. This effort aligns with the Strategic Plan’s goal to support activities to end homelessness. City of Palo Alto Housing Element (2015-2023) City of Palo Alto The Housing Element serves as a policy guide to help the City meet its existing and future housing needs. This effort aligns with the Strategic Plan’s goal to assist in the creation and preservation of affordable housing. 2012-2014 Comprehensive HIV Prevention & Care Santa Clara County HIV Planning Council for Prevention and Care This plan provides a roadmap for the Santa Clara County HIV Planning Council for Prevention and Care to provide a comprehensive and compassionate system of HIV prevention and care services for the County. This effort aligns with the Strategic Plan’s goal to support activities that strengthen neighborhoods through the provision of community services and public improvements. Annual Action Plan 16 OMB Control No: 2506-0117 (exp. 07/31/2015) Affordable Housing Funding Landscape & Local Best Cities Association of Santa Clara County and Housing Trust Silicon Valley This report provides a comparison of the different funding strategies available for affordable housing in the County, and the best practices for funding new affordable housing. This effort aligns with the Strategic Plan's goal to assist in the creation and preservation of affordable housing. Regional Housing Need Plan for the San Francisco B Association of Bay Area Governments This plan analyzes the total regional housing need for the County and all of the Bay Area. This effort aligns with the Strategic Plan's goal to assist in the creation and preservation of affordable housing Community Plan to End Homelessness in Santa Clara Destination: Home The Community Plan to End Homelessness in the County is a five-year plan to guide governmental actors, nonprofits, and other community members as they make decisions about funding, programs, priorities and needs. This effort aligns with the Strategic Plan’s goal to support activities to end homelessness. Palo Alto’s Infrastructure: Catching Up, Keeping U City of Palo Alto Infrastructure Blue Ribbon Plan This plan details recommendations for infrastructure maintenance and replace, as well as identifies potential sources of funding. This effort aligns with the Strategic Plan's goal to support activities that strengthen neighborhoods through the provision of communityservices and public improvements. Annual Action Plan 17 OMB Control No: 2506-0117 (exp. 07/31/2015) City of Palo Alto Comprehensive Plan (1998) City of Palo Alto This plan is the primary tool for guiding future development in Palo Alto. It provides a guide for long term choices and goals for the City future. This effort aligns with the Strategic Plan's goal to support activities that strengthen neighborhoods through the provision of community services and public improvements. Narrative The Entitlement Jurisdictions in Santa Clara County collaborated on preparation of their 2015- 2020 Consolidated Plans. The outreach and the regional needs assessment for these jurisdictions was a coordinated effort. The CoC and the County were involved in the formation of the Consolidated Plan and will be integral in its implementation. As standard practice, CDBG entitlement jurisdictions from throughout the County hold quarterly meetings known as the CDBG Coordinators Group. These meetings are often attended by HUD representatives and their purpose is to share information, best practices, new developments, and federal policy and appropriations updates among the local grantee staff, as well as to offer a convenient forum for HUD to provide ad-hoc technical assistance related to federal grant management. Meeting agendas cover such topics as projects receiving multi- jurisdictional funding, performance levels and costs for contracted public services, proposed annual funding plans, HUD program administration requirements, and other topics of mutual concern. These quarterly meetings provide the opportunity for the City to consult with other jurisdictions on its proposed use of federal funds for the upcoming Program Year. The CDBG Coordinators Group meetings are often followed by a Regional Housing Working Group meeting, which is open to staff of entitlement and non-entitlement jurisdictions. The Working Group provides a forum for jurisdictions to develop coordinated responses to regional housing challenges. Annual Action Plan 18 OMB Control No: 2506-0117 (exp. 07/31/2015) AP-12 Participation – 91.105, 91.200(c) Summary of citizen participation process and efforts made to broaden citizen participation On October 18, 2010, the Palo Alto City Council adopted an amended Citizen Participation Plan that utilizes the Human Relations Commission (HRC), rather than a separate Citizen Advisory Committee, to promote and encourage citizen participation in the planning, implementation and assessment of the CDBG Program. The HRC is uniquely positioned to understand and consider the needs of low and very low income persons, members of minority groups, the elderly, persons with disabilities, and residents of neighborhoods where CDBG activities may be undertaken. Thus far the revisions to the Citizen Participation Plan have promoted a more coordinate and effective response by the City to the human service needs in the community. A summary of public participation is outlined in Table 4, Citizen Participation Outreach. The Draft Action Plan was made available for a 30-day comment period to give citizens an opportunity to offer comments. Annual Action Plan 19 OMB Control No: 2506-0117 (exp. 07/31/2015) Citizen Participation Outreach Table 4 – Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response/attendan ce Summary of comments received Summary of comments not accepted and reasons URL (If applicable) 1 Public Meetings Non- targeted/broa d community The Human Relations Commission met on March 9, 2017 and May 11, 2017 to discuss the FY 17/18 funding allocations. Representatives from agencies requesting CDBG funds for FY 17/18 were present. 2 Public Meeting Non- targeted/broa d community The City Council held a public hearing in June 2017 to discuss the FY 17/18 funding allocations 3 Newspape r Ad Non-targeted A public hearing notice was published in the Palo Alto Weekly on May 12, 2017. There were no public comments received on the draft FY 18 Action Plan. Annual Action Plan 20 OMB Control No: 2506-0117 (exp. 07/31/2015) Expected Resources AP-15 Expected Resources – 91.220(c) (1, 2) In Fiscal Year 2018, Palo Alto will allocate approximately $844,583 to eligible activities that address the needs identified in the Consolidated Plan. The City received is final allocation amount from HUD on ____________. Table 5 - Expected Resources – Priority Table Progra m Source of Funds Uses of Funds Expected Amount Available Year 3 Expected Amount Available Reminder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG Public/Federal Funds Admin and Planning Economic Development Housing Public Services $379,477 $130,451 $329,057 $844,583 $0 CDBG funds will be used for the creation and preservation of affordable rental units, improvement s in lower income neighborhood s, and public services that benefit low income and special needs households. Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Leverage, in the context of the CDBG and HOME, means bringing other local, state, and federal financial resources to maximize the reach and impact of the City’s HUD Programs. HUD, like many other federal agencies, encourages the recipients of federal monies to demonstrate that efforts are being made to strategically leverage additional funds in order to achieve greater results. Leverage is also a way to increase project efficiencies and benefit from economies of scale that often come with combining sources of funding for similar or expanded scopes. Funds will be leveraged if financial commitments toward the costs of a project from a source other than the originating HUD program are documented. The City joined the Santa Clara County's HOME Consortium in 2015. HOME funds can be used to fund eligible affordable housing projects for acquisition, construction and rehabilitation. Starting in FY 2015-2016 developers of affordable housing projects were eligible to Annual Action Plan 21 OMB Control No: 2506-0117 (exp. 07/31/2015) competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto. If the City receives HOME dollars from its participation in the HOME consortium, the required 25 percent matching funds will be provided from the City’s Affordable Housing Fund, which is comprised of two sub-funds: the Commercial Housing Fund and the Residential Housing Fund. As of December 31, 2016, the Commercial Housing Fund had an available balance of approximately $4,774,293 and the Residential Housing Fund had an available balance of $5,635,945. To date, no projects within the City have been funded through the HOME Consortium. Moving forward, the City plans to increase outreach to developers in the City to provide additional information on the HOME Consortium and available funding. Other Federal Grant Programs In addition to the entitlement dollars listed above, the federal government has several other funding programs for community development and affordable housing activities. These include: the Section 8 Housing Choice Voucher Program, Section 202, Section 811, the Affordable Housing Program (AHP) through the Federal Home Loan Bank, and others. It should be noted that, in most cases, the City would not be the applicant for these funding sources as many of these programs offer assistance to affordable housing developers rather than local jurisdictions. County and Local Housing and Community Development Sources There are a variety of countywide and local resources that support housing and community development programs. Some of these programs offer assistance to local affordable housing developers and community organizations while others provide assistance directly to individuals. These resources are discussed below: Palo Alto Commercial Housing Fund: The Commercial Housing fund is used primarily to increase the number of new affordable housing units for Palo Alto’s work force. It is funded with mitigation fees required from developers of commercial and industrial projects. As of December 31, 2016 the Commercial Housing Fund had an available balance of approximately $4,774,293. Palo Alto Residential Housing Fund: The Residential Housing Fund is funded with mitigation fees provided under Palo Alto's Below Market Rate (BMR) housing program from residential developers and money from other miscellaneous sources, such as proceeds from the sale or lease of City property. As of December 31, 2016 the Residential Housing Fund had an available balance of $5,635,945. It should be noted that the City is in the process of renewing its current mitigation fees and expects some type of fee increase during FY 18. The increase will provide additional City funds for the development, acquisition, and rehabilitation of affordable housing throughout the City. Annual Action Plan 22 OMB Control No: 2506-0117 (exp. 07/31/2015) If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City has no surplus vacant land that would be available for the development of housing or services. Sixty-five percent of land in the City is open space. Discussion The City of Palo Alto’s (City) Fiscal Year (FY) 2017-2018 Action Plan covers the time period from July 1, 2017 to June 30 2018 (HUD Program Year 2017). The City’s FY 2018 entitlement amount is $379,477. Additionally, the City estimates approximately $136,049 in program income and an estimated $329,057 in available uncommitted funds from the prior program year, bringing the total estimated budget for FY 2017-2018 to $844,583. While U.S. Department of Housing and Urban Development (HUD) allocations are critical, they are not sufficient to overcome all barriers and address all needs that low income individuals and families face in attaining self-sufficiency. The City will continue to leverage additional resources to successfully provide support and services to the populations in need. Currently, the City is not eligible to receive direct funding under the HOME Investment Partnership Act (HOME), Emergency Solutions Grant (ESG), or Housing Opportunities. Annual Action Plan 23 OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Goals and Objectives AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information Table 2 – Goals Summary Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Affordable Housing 2015 2020 Affordable Housing Affordable Housing CDBG $328,589 Rental units rehabilitated: 104 Household Housing Units 2 Homelessness 2015 2020 Homeless Homeless CDBG: $56,000 Public Service activities for Low/Moderate Income Housing Benefit: 531 Households Assisted 3 Strengthen Neighborhoods 2015 2020 Non- Homeless Special Needs Non- Housing Community Development Community Services and Public Improvements CDBG $20,489 Public service activities other than Low/Moderate Income Housing Benefit: 298 Persons Assisted 4 Fair Housing 2015 2020 Non-Housing Community Development Fair Housing CDBG: $28,810 Public service activities other than Low/Moderate Income Housing Benefit: 15 Persons Assisted 5 Economic Development 2015 2020 Non-Housing Community Development Economic Development CDBG: $336,400 Jobs created/retained: 30 Jobs Annual Action Plan 24 OMB Control No: 2506-0117 (exp. 07/31/2015) Goal Descriptions Table 3 – Goal Descriptions 1 Goal Name Affordable Housing Goal Description Assist in the creation and preservation of affordable housing for low income and special needs households 2 Goal Name Homelessness Goal Description Support activities to end homeless. 3 Goal Name Strengthen Neighborhoods Goal Description Support activities the strengthen neighborhoods through the provision of community services and public improvements to benefit low income and special needs households. 4 Goal Name Fair Housing Goal Description Promote fair housing choice. 5 Goal Name Economic Development Goal Description Expanded economic opportunities for low income households. Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b): Not applicable. The City does not receive any HOME funds from HUD. In prior fiscal years, the City has funded a number of projects that have resulted in the production of new affordable housing units, rehabilitation of existing multi-family rental units, and acquisition of existing units. Annual Action Plan 25 OMB Control No: 2506-0117 (exp. 07/31/2015) AP-35 Projects – 91.220(d) The Consolidated Plan goals below represent high priority needs for the City of Palo Alto and serve as the basis for the strategic actions the City will use to meet these needs. The goals, listed in no particular order, are: 1. Assist in the creation and preservation of affordable housing for low income and special needs households. 2. Support activities to end homelessness. 3. Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low income and special needs households. 4. Promote fair housing choice. 5. Expand economic opportunities for low income households. Table 4 – Project Information # Project Name 1 Silicon Valley Independent Living Center 2 Catholic Charities 3 LifeMoves 4 PAHC Management & Services Corporation 5 YWCA of Silicon Valley 6 Project Sentinel 7 City of Palo Alto – Administration 8 Downtown Streets Inc. 9 Community Working Group – Opportunity Center Rehabilitation Project 10 City of Palo Alto – Minor Repair Program Annual Action Plan 26 OMB Control No: 2506-0117 (exp. 07/31/2015) Describe the reasons for allocation priorities and any obstacles to addressing underserved needs. The City awards CDBG funding to nonprofit agencies to provide public services and housing for low income and special needs households. The City operates on a two-year grant funding cycle for CDBG grants. The City allocates its CDBG funds to projects and programs that will primarily benefit 0-50% AMI households, the homeless and special needs populations. The allocation of funds is made based on the needs identified in the 2015-2020 Consolidated Plan. Annual Action Plan 27 OMB Control No: 2506-0117 (exp. 07/31/2015) Projects AP-38 Projects Summary Project Summary Information Table 5 – Project Summary 1 Project Name Silicon Valley Independent Living Center Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $5,000 Description Housing and Emergency Housing Services Target Date June 30, 2018 Estimate the number and type of families that will benefit from the proposed activities 20 persons will be assisted. Location Description Citywide. Planned Activities Silicon Valley Independent Living Center provides assistance for individuals with disabilities and their families to transition from homelessness, health care facilities, unstable or temporary housing to permanent affordable, accessible, integrated housing with emergency assistance, security deposits, rent, information & referral, and other basic essentials. 2 Project Name Catholic Charities Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $7,000 Description Long-Term Care Ombudsman Program Target Date June 30, 2018 Estimate the number and type of families that will benefit from the proposed activities 236 persons will be assisted. Annual Action Plan 28 OMB Control No: 2506-0117 (exp. 07/31/2015) Location Description Long-term care and skilled nursing facilities throughout the City. Planned Activities Catholic Charities assists in problem resolution and advocates for the rights of residents of long term care facilities in Palo Alto. The majority of the clients assisted are low-income, frail, elderly, and chronically ill. This program assists these vulnerable, dependent and socially isolated residents receive the care and placement to which they are entitled. 3 Project Name LifeMoves Target Area Goals Supported Homelessness Needs Addressed Homelessness Funding CDBG: $35,000 Description Opportunity Services Center Target Date June 30, 2018 Estimate the number and type of families that will benefit from the proposed activities 400 persons will be assisted. Location Description 33 Encina Way, Palo Alto, CA 94301 Planned Activities LifeMoves provides basic necessities for persons who are homeless or at-risk of becoming homeless. The Opportunity Services Center is a comprehensive, one-stop, multi-service, day drop-in center that provides critical services for homeless Palo Alto residents. Specifically, the facility provides showers, laundry, clothing, snacks, case management, and shelter/housing referral services. 4 Project Name PAHC Management & Services Corporation Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $21,000 Description SRO Resident Support Services Target Date June 30, 2018 Estimate the number and type of 131 persons will be assisted Annual Action Plan 29 OMB Control No: 2506-0117 (exp. 07/31/2015) families that will benefit from the proposed activities Location Description 439 Emerson Street and 735 Alma Street Palo Alto, CA 94301 Planned Activities Palo Alto Housing Corporation will provide counseling and supportive case management services for low-income residents of single room occupancy facilities in order to help them maintain housing stability. Activities include financial counseling, health maintenance, information and referral, problem solving, employment assistance, crisis intervention and case management. 5 Project Name YWCA of Silicon Valley Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $8,489 Description Domestic Violence Services Target Date June 30, 2018 Estimate the number and type of families that will benefit from the proposed activities 45 persons will be assisted Location Description Citywide Planned Activities Support Network for Battered Women, a Division of YWCA will provide individuals and families experiencing domestic violence, the program provides a bilingual domestic violence hotline, an emergency shelter, crisis counseling, legal assistance, court accompaniment, individual and group therapy, support groups, children’s therapy groups, preventative education, safety planning and community referrals. 6 Project Name Project Sentinel Target Area Goals Supported Fair Housing Needs Addressed Fair Housing Funding CDBG: $28,810 Annual Action Plan 30 OMB Control No: 2506-0117 (exp. 07/31/2015) Description Fair Housing Services Target Date June 30, 2018 Estimate the number and type of families that will benefit from the proposed activities 15 persons will be assisted. Location Description Citywide. Planned Activities Project Sentinel will provide community education and outreach regarding fair housing law and practices, investigation, counseling and legal referral for victims of housing discrimination, and analyses for City staff and officials regarding fair housing practices. California and federal fair housing laws assure specific protected classes the right to be treated in terms of their individual merits and qualifications in seeking housing. Unfortunately, some people are not aware of the law or their rights. 7 Project Name City of Palo Alto Target Area Goals Supported Affordable Housing Homelessness Strengthen Neighborhoods Fair Housing Economic Development Needs Addressed Affordable Housing Homelessness Community Services and Public Improvements Fair Housing Economic Development Funding CDBG: $74,295 Description Planning and Administration Target Date June 30, 2018 Estimate the number and type of families that will benefit from the proposed activities The City will provide general administrative support to the CDBG program. Location Description Citywide Planned Activities Administer the Administrative costs for the overall Annual Action Plan 31 OMB Control No: 2506-0117 (exp. 07/31/2015) management, coordination, and evaluation of the CDBG program, and the project delivery costs associated with bringing projects to completion. 8 Project Name Downtown Streets Inc. Target Area Goals Supported Economic Development Needs Addressed Economic Development Funding CDBG: $336,400 Description Workforce Development Program Target Date June 30, 2018 Estimate the number and type of families that will benefit from the proposed activities 30 jobs will be created for very low income and low income individuals. Location Description Citywide. Planned Activities The Workforce Development Program will provide a transition from unemployment and homelessness to regular employment and housing through case management, job training, mentoring, housing, and transportation assistance. Downtown Streets Team will screen and prepare applicants and will use their community connections to provide training and job opportunities. 9 Project Name Community Working Group – Opportunity Center Rehabilitation Target Area Goals Supported Strengthening Neighborhoods. Needs Addressed In 2015, the “Home Not Found” study documented a county population of 104,206 individuals who were experiencing homelessness. 5% of this population who were found to be persistently homeless incurred an average cost of $83,000 per year. Providing permanent, supportive housing for the persistently homeless was identified as a top priority for the County. The Opportunity Center has been providing permanent supportive housing for homeless for more than 10 years and has helped many people turn their lives in a new Annual Action Plan 32 OMB Control No: 2506-0117 (exp. 07/31/2015) direction. Funding $220,000 Description The proposed project will permit full re-panting of the exterior surfaces of the Opportunity Center, in order to prevent weather related damage, and will replace flooring in the hallways of the residential housing facility at the Center that have been damaged from more than 10 years of use. Target Date June 30, 2018 Estimate the number and type of families that will benefit from the proposed activities The residents of the Opportunity Center include approximately 100 adults and 15 children. Among the adults, approximately 60% have been found to have a disability that qualifies them for federal disability assistance. The children receive special assistance with school programs and transportation. Those who are currently homeless are provided day services Monday-Friday, including food, clothing, showers, laundry, case management support and access to on-site medical care. Location Description 33 Encina Avenue, Palo Alto, CA 94301 Planned Activities The proposed project will permit full re-panting of the exterior surfaces of the Opportunity Center, in order to prevent weather related damage, and will replace flooring in the hallways of the residential housing facility. Project Name Minor Repair Program Target Area Citywide Goals Supported Strengthen Neighborhoods Needs Addressed The Minor Repair Program will provide funds for low income Palo Alto homeowners to address health and safety issues and improve accessibility. Funding $108,589 Description The Minor Repair Program will provide funds to address health and safety and accessibility concerns for income qualified Palo Alto homeowners. To participate in the program, a homeowner must be low income. Target Date June 30, 2018 Annual Action Plan 33 OMB Control No: 2506-0117 (exp. 07/31/2015) Estimate the number and type of families that will benefit from the proposed activities 15 households will be assisted with minor homeowners Location Description City wide. Program will be administered by a non-profit partner. Planned Activities Complete home repairs that address health and safety concerns and provide accessibility to low income homeowners throughout the City of Palo Alto. Annual Action Plan 34 OMB Control No: 2506-0117 (exp. 07/31/2015) AP-50 Geographic Distribution – 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed. Not applicable. The City has not established specific target areas to focus the investment of CDBG funds. Table 10 - Geographic Distribution Target Area Percentage of Funds N/A N/A Rationale for the priorities for allocating investments geographically Not applicable. Discussion See discussion above. Annual Action Plan 35 OMB Control No: 2506-0117 (exp. 07/31/2015) Affordable Housing AP-55 Affordable Housing – 91.220(g) Introduction Palo Alto has identified affordable housing as the primary objective for the expenditure of CDBG funds in the Consolidated Plan. The City will continue to allocate the maximum funding available to activities and projects that meet this objective. While CDBG entitlement dollars are limited, the City does anticipate expending a significant portion of its CDBG funds on the preservation and rehabilitation of affordable housing. A detailed discussion of how HUD entitlements will be used to support affordable housing needs within the City is provided in AP- 20, with the number of households to be assisted itemized by goal. Table 11 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households to be Supported Homeless 0 Non-Homeless 15 Special-Needs 89 Total 104 Table 6 - One Year Goals for Affordable Housing by Support Type One Year Goals for the Number of Households to be Supported Rental Assistance 0 The Production of New Units 0 Rehabilitation of Existing Units 104 Total 104 Discussion Please see discussion above. Annual Action Plan 36 OMB Control No: 2506-0117 (exp. 07/31/2015) AP-60 Public Housing – 91.220(h) Introduction The Housing Authority of the County of Santa Clara (HACSC) assists approximately 17,546 households through the federal Section 8 Housing Choice Voucher program (Section 8). The Section 8 waiting list contains over 20,000 households (estimated to be a 10-year wait). HACSC also develops, controls, and manages more than 2,100 affordable rental housing properties throughout the County. HACSC’s programs are targeted toward LMI households and more than 80 percent of their client households are extremely low income families, seniors, veterans, persons with disabilities, and formerly homeless individuals. In 2008, HACSC entered a ten-year agreement with HUD to become a Moving to Work (MTW) agency. The MTW program is a federal demonstration program that allows greater flexibility to design and implement more innovative approaches for providing housing assistance. Additionally, HACSC has used LIHTC financing to transform and rehabilitate 535 units of public housing into HACSC-controlled properties. The agency is an active developer of affordable housing and has either constructed, rehabilitated, or assisted with the development of more than 30 housing developments that service a variety of households, including special needs households. Actions planned during the next year to address the needs to public housing Not applicable. HACSC owns and manages four public housing units, which are all located in the City of Santa Clara. Actions to encourage public housing residents to become more involved in management and participate in homeownership Although the majority of their units have been converted to affordable housing stock, HACSC is proactive in incorporating resident input into the agency’s policy-making process. An equitable and transparent policy-making process that includes the opinions of residents is achieved through the involvement of two tenant commissioners on the HACSC board. HACSC has been a MTW agency since 2008. In this time the agency has developed 31 MTW activities. The vast majority of its successful initiatives have been aimed at reducing administrative inefficiencies, which provides resources for programs aimed at LMI families. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance Not applicable. Annual Action Plan 37 OMB Control No: 2506-0117 (exp. 07/31/2015) Discussion Please see discussion above. Annual Action Plan 38 OMB Control No: 2506-0117 (exp. 07/31/2015) AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction The Santa Clara County region is home to the fourth-largest population of homeless individuals (6,556 single individuals) and the highest percentage of unsheltered homeless of any major city (75 percent of homeless people sleep in places unfit for human habitation). The homeless assistance program planning network is governed by the Santa Clara Continuum of Care (CoC), governed by the Destination: Home Leadership Board, who serves as the CoC Board of Directors. The membership of the CoC is a collaboration of representatives from local jurisdictions comprised of community-based organizations, the Housing Authority of Santa Clara, governmental departments, health service agencies, homeless advocates, consumers, the faith community, and research, policy and planning groups. For many years, the CoC utilized a homeless services system referred to as the Homeless Management Information System (HMIS). The HMIS monitored outcomes and performance measures for all the homeless services agencies funded by the County. Last year, the CoC and service providers transitioned to a new system referred to as Clarity. The system provides additional tools and resources to assist the CoC and service providers to track information regarding clients served. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs In January 2017, a Point in Time (PIT) count was conducted for Santa Clara County by the City of San Jose in conjunction with the County of Santa Clara. The PIT is an intense survey used to count the number of homeless living throughout Santa Clara County on the streets, in shelters, safe havens or in transitional housing, or in areas not meant for human habitation. The survey was conducted by hundreds of volunteers who asked those living on the streets, as well as the residents of shelters, safe havens and transitional housing, to respond to questions related to their needs. A portion of the survey addresses the needs of those surveyed. Palo Alto financially contributed to this effort. The next PIT is scheduled for January 2019. Addressing the emergency shelter and transitional housing needs of homeless persons In addressing the Consolidated Plan and the Continuum of Care strategic plans, Palo Alto will provide funding for essential services and operations to local emergency shelters and transitional housing facilities. The facilities provide shelter and services to homeless families with children, single parents with children, single men and women, victims of domestic violence and sexual abuse, homeless veterans, and the population living on the street. One example includes the Hotel de Zink rotating shelter, which provides overnight shelter to approximately 15 individuals every night. Annual Action Plan 39 OMB Control No: 2506-0117 (exp. 07/31/2015) Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again The City spends part of its CDBG funds and local funds toward a variety of public services to address the needs of homeless and very low income persons. Services provided include free food, clothing, medical care, legal assistance, and rental assistance. The City allocates funding to the following homeless service providers: CDBG Funded LifeMoves - Opportunity Services Center $35,000 The Opportunity Services Center facility in Palo Alto provides a clean, safe environment and resources for low income or homeless persons including bagged groceries, hot meals, a rotating church shelter program, information and referral, shower and laundry facilities, case management, and money management (payee) programs, clothing and health services. A daily hot meal is provided at a different location each day and bagged groceries are distributed daily at the Downtown Food Closet. The Hotel de Zink rotating church shelter program is housed at a different location each month. Downtown Streets Team – Workforce Development Program $336,000 This economic development program helps motivated graduates of the Downtown Streets Team programs move on to stable employment. The program includes mentoring, counseling, job readiness, job training, and assistance. Palo Alto Housing Corporation – SRO Tenant Counseling $21,000 Provides counseling and case-management services for the low-income residents and prospective residents of single room occupancy hotels in Palo Alto. Many SRO residents have a history of homelessness and special needs. The program plays a vital role in helping residents maintain their stability and housing. Community Work Group – Opportunity Center Rehabilitation Project $220,000 The CDBG funds will be utilized to re-paint the exterior surfaces of the Opportunity Center, in order to prevent weather related damage, and replace flooring in the hallways of the residential housing facility. City of Palo Alto – Minor Repair Program $108,589 The Minor Repair Program will provide funds to low income Palo Alto homeowners to address Annual Action Plan 40 OMB Control No: 2506-0117 (exp. 07/31/2015) health and safety issues and improve accessibility. To participate in the program, a homeowner must be low income. A non-profit partner will administer the program for the City. HSRAP Funded Abilities United – Disability Services: Amount Pending This organization provides services and activities for adults and children with mental and physical disabilities. Adolescent Counseling Services - Amount Pending Description pending. Community Working Group - Amount Pending Description pending Downtown Streets Team – Downtown Streets: Amount Pending Downtown Streets Team identifies motivated homeless individuals and provides them with jobs cleaning and beautifying the downtown area in exchange for housing and food vouchers. The program includes counseling, coaching and training to help program participants build self- esteem, confidence and connections in the community. Dreamcatchers - Amount Pending Description pending. KARA - Amount Pending Description pending La Comida de California – Hot Meals for The Elderly: Amount Pending Daily meal program for the elderly. LifeMoves – Amount Pending Description pending May View Health Center – Health Care for Low Income & Homeless Palo Alto residents: Amount Pending Basic primary health care services and health education and referral services for uninsured low- income and homeless individuals from the Palo Alto area. Momentum for Mental Health – Homeless Outreach Program: Amount Pending Momentum for Mental Health outreach program provides emergency on-call services to assist local mentally ill homeless persons. The agency provides services to City departments, libraries, community centers and local homeless service providers. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families Annual Action Plan 41 OMB Control No: 2506-0117 (exp. 07/31/2015) and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. Palo Alto Housing - Amount Pending Description pending Peninsula HealthCare Connection – Project Downtown Connect: Amount Pending Provider of health care services at the Opportunity Center of Palo Alto. Project Downtown Connect provides Section 8 vouchers to eligible homeless individuals and families. SALA – Legal Assistance to Elders: Amount Pending Senior Adults Legal Assistance (SALA) provides affordable legal assistance to elders. Vista Center for the Blind or Visually Impaired - Amount Pending Description pending Youth Community Service - Amount Pending Description pending Discussion Please see discussion above. Annual Action Plan 42 OMB Control No: 2506-0117 (exp. 07/31/2015) AP-75 Barriers to Affordable Housing – 91.220(j) Introduction The incorporated and unincorporated jurisdictions within the County face barriers to affordable housing that are common throughout the Bay Area. High on the list is the lack of developable land, which increases the cost of available lands and increases housing development costs. Local opposition is another common obstacle as many neighbors have strong reactions to infill and affordable housing developments. Their opposition is often based on misconceptions, such as a foreseen increase in crime; erosion of property values; increase in parking and traffic congestion; and overwhelmed schools. However, to ensure a healthy economy the region must focus on strategies and investment that provide housing for much of the region’s workforce – for example, sales clerks, secretaries, firefighters, police, teachers, and health service workers – whose incomes significantly limit their housing choices. It should be noted that in a constrained housing supply market, when housing developments produce housing that is relatively affordable, higher income buyers and renters generally outbid lower income households. A home’s final sale or rental price will typically exceed the projected sales or rental costs. Public subsidies are often needed to guarantee affordable homes for LMI households. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Palo Alto is addressing the barriers to affordable housing through the following programs and ordinances: Context-Based Design Codes The City adopted form-based codes in 2006 to ensure and encourage residential development by following context-based design guidelines to meet increased density needs. The code encourages the creation of walkable, pedestrian-oriented neighborhoods, following green building design principles, and increasing density along transit corridors and in mixed-use neighborhoods. The Context-Based Design Code allows for increased density and mixed-use buildings in a way that enhances neighborhood character and walkability. Density Bonus Ordinance Density bonus provisions are a tool for attracting and assisting developers in constructing affordable housing. Density bonuses allow a developer to increase the density of a development above what is allowed under standard zoning regulations and provides regulatory relief in the form of concessions. In exchange, a developer provides affordable units in the development. Annual Action Plan 43 OMB Control No: 2506-0117 (exp. 07/31/2015) In 2004, the California State Legislature lowered the thresholds required to receive a density bonus and increased the number of concessions a developer can receive. The City adopted a Density Bonus Ordinance in January 2014. The density bonus regulations allow for bonuses of 20 to 35 percent, depending on the amount and type of affordable housing provided. As required by state law, the regulations also allow for exceptions to applicable zoning and other development standards, to further encourage development of affordable housing. Below Market Rate Housing Program Established in 1974, the City’s BMR Housing Program has been instrumental in the production of affordable housing by requiring developers to provide a certain percentage of units as BMR in every approved project of three units or more. The program originally required that for developments on sites of less than five acres, the developer must provide 15 percent of the total housing units as BMR housing units. If the site was larger than five acres, the developer was required to provide 20 percent of the units as BMR housing. Several court cases have challenged the BMR, or “inclusionary zoning” ordinances in California. Two factors that have received recent attention by the courts include whether inclusionary housing is considered rent control, and whether inclusionary housing and related housing mitigation fees are considered exactions. As a result of ongoing litigation, many cities have suspended or amended the portions of their inclusionary housing requirements that require affordable units to be included in market rate rental developments and many cities have turned, instead, to the use of development impact fees charged on new, market-rate housing and/or commercial development. Known as “Housing Impact Fees” and “Commercial Linkage Fees,” these fees are based on an assessment of the extent to which the development of new market-rate housing or commercial uses, respectively, generates additional demand for affordable housing. The City is currently in the process of updating its Commercial and Residential Impact Fee Nexus Studies and the estimated completion date is June 2017. Discussion Please see above. Annual Action Plan 44 OMB Control No: 2506-0117 (exp. 07/31/2015) AP-85 Other Actions – 91.220(k) Introduction This section discusses the City’s efforts in addressing the underserved needs, expanding and preserving affordable housing, reducing lead-based paint hazards, and developing institutional structure for delivering housing and community development activities. Actions planned to address obstacles to meeting underserved needs The diminishing amount of available funds continues to be an obstacle to addressing the needs of underserved populations. To address this, the City supplements its CDBG funding with other resources and funds, including: • The City’s Human Service Resource Allocation Process (HSRAP) provides approximately $1,099,347 from the General Fund in support of human services. The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies. • The Palo Alto Commercial Housing Fund is utilized to increase the number of new affordable housing units for Palo Alto’s work force. It is funded with mitigation fees required from developers of commercial and industrial projects. • The Palo Alto Residential Housing Fund is funded with mitigation fees provided under Palo Alto’s BMR housing program from residential developers and monies from other miscellaneous sources, such as proceeds from the sale or lease of City property. • The City’s Below Market Rate Emergency Fund was authorized in 2002 to provide funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units. • HOME Program funds are available on an annual competitive basis through the State of California HOME program, and the County’s HOME Consortium. Actions planned to foster and maintain affordable housing The City will foster and maintain affordable housing by continuing the following programs and ordinances: • The Below Market Rate Emergency Fund which provides funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units. • The Commercial Housing Fund is utilized to increase the number of new affordable housing units for Palo Alto’s work force. • The Residential Housing Fund is used to assist new housing development and/or the acquisition, rehabilitation or the preservation of existing housing for affordable housing. • The Density Bonus Ordinance, adopted by the City Council in January 2014, allows for bonuses of 20 to 35 percent, depending on the amount and type of affordable housing Annual Action Plan 45 OMB Control No: 2506-0117 (exp. 07/31/2015) provided. • The City’s participation in the County's HOME Consortium allows developers of affordable housing projects in Palo Alto to be eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize the affordable project, including acquisition, construction and rehabilitation. Actions planned to reduce lead-based paint hazards The City’s housing and CDBG staff provides information and referral to property owners, developers, and non-profit organizations rehabilitating older housing about lead-based paint (LBP) hazards. Any house to be rehabilitated with City financial assistance is required to be inspected for the existence of LBP and LBP hazards. The City provides financial assistance for the abatement of LBP hazards in units rehabilitated with City funding. The City also requires that contractors are trained and certified in an effort to decrease the risk of potential use of LBP in new units. All development and rehabilitation projects must be evaluated according to HUD’s Lead Safe Housing Rule 24 CFR Part 35. Actions planned to reduce the number of poverty-level families The City, in its continuing effort to reduce poverty, will prioritize funding agencies that provide direct assistance to the homeless and those in danger of becoming homeless. In FY 2017-2018, these programs will include the following: • Downtown Streets Team is a nonprofit in the City that works to reduce homelessness through a “work first” model. Downtown Streets Team uses their community connections to provide training and job opportunities to homeless people, specifically in the downtown area. The Downtown Streets Team has helped 282 people find housing and 334 find jobs since its inception in 2005. The Downtown Streets Team has initiatives in Palo Alto, Sunnyvale, San Jose, and San Rafael. Actions planned to develop institutional structure The City is striving to improve intergovernmental and private sector cooperation to synergize efforts and resources and develop new revenues for community service needs and the production of affordable housing. Collaborative efforts include: • Regular quarterly meetings between entitlement jurisdictions at the CDBG Coordinators Meeting and Regional Housing Working Group. • Joint jurisdiction Request for Proposals and project review committees • Coordination on project management for projects funded by multiple jurisdictions • The established of the HOME Consortium with the county of Santa Clara and the cities of Gilroy and Cupertino to provide additional funding opportunities for affordable housing projects. Annual Action Plan 46 OMB Control No: 2506-0117 (exp. 07/31/2015) Recent examples include the effort by the County to create a regional affordable housing fund, using former redevelopment funds that could be returned to the County to use for affordable housing. Another effort underway involves the possible use of former redevelopment funds to create a countywide pool for homeless shelters and transitional housing. These interactions among agencies generate cohesive discussion and forums for bridging funding and service gaps on a regional scale. Actions planned to enhance coordination between public and private housing and social service agencies. The City benefits from region-wide network of housing and community development partners, such as the County and the CoC. To improve intergovernmental and private sector cooperation, the City will continue to participate with other local jurisdictions and developers in sharing information and resources. In addition to the actions listed above, the City will continue to coordinate with the City’s human services funding efforts to comprehensively address its community needs. Discussion Please see discussions above. Annual Action Plan 47 OMB Control No: 2506-0117 (exp. 07/31/2015) Program Specific Requirements AP-90 Program Specific Requirements – 91.220(l)(1,2,4) Introduction The charts below provide additional information regarding the CDBG program income and other CDBG program requirements. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $136,049 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan $0 3. The amount of surplus funds from urban renewal settlements $0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. $0 5. The amount of income from float-funded activities $0 Total Program Income: $136,049 Other CDBG Requirements 1. The amount of urgent need activities. 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100% Annual Action Plan 48 OMB Control No: 2506-0117 (exp. 07/31/2015) ATTACHMENT 1. SUMMARY OF NEEDS ASSESSMENT 2015-2020 CONSOLIDATED PLAN Annual Action Plan 49 OMB Control No: 2506-0117 (exp. 07/31/2015) Annual Action Plan 50 OMB Control No: 2506-0117 (exp. 07/31/2015) APPENDIX A: PUBLIC COMMENT RECEIVED Annual Action Plan 51 OMB Control No: 2506-0117 (exp. 07/31/2015) APPENDIX B: PUBLIC HEARING NOTICE Annual Action Plan 52 OMB Control No: 2506-0117 (exp. 07/31/2015) NOTICE OF PUBLIC REVIEW PERIOD AND PUBLIC HEARING ON PALO ALTO’S COMMUNITY DEVELOPMENT BLOCKGRANT (CDBG) PROGRAM This is to notify the general public and other interested parties that a 30-day public review period of the Draft Annual Action Plan for the allocation of Fiscal Year 2017 Community Development Block Grant (CDBG) funds, will begin on May 15, 2017 and end on June 15, 2017. The Draft Annual Action Plan describes the activities the City may fund under the 2018 CDBG Program. Collectively these activities are intended to meet Palo Alto’s affordable housing and community development objectives described in the 2015-2020 Consolidated Plan. Copies of the Draft Annual Action Plan will be available on May 15, 2017 at the Department of Planning and Community Environment, 250 Hamilton Avenue, 5th Floor, Palo Alto, CA 94301, on the City’s website http://www.cityofpaloalto.org/depts/pln/advance_planning/cdbg.asp or by calling Eloiza Murillo-Garcia, Senior Planner, at (650) 329-2561. Interested parties are encouraged to submit written comments on the proposed Draft Annual Action Plan during the public review period, or to comment at the public hearings and meetings described below. PUBLIC HEARING AND MEETING The Palo Alto City Council will hold a Public Hearing on June 19, 2017 to adopt the Annual Action Plan and the associated Fiscal Year 2017 CDBG allocations. The Public Hearing will be held at 6:00p.m., or as soon as possible thereafter, in City Hall Council Chambers, 250 Hamilton Avenue, Palo Alto. 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: ADA Coordinator, City of Palo Alto, 650-329-2550 (Voice) ada@cityofpaloalto.org Annual Action Plan 53 OMB Control No: 2506-0117 (exp. 07/31/2015) APPENDIX C: GRANTEE SF-424 AND CERTIFICATION OMB Number: 4040-0004 Expiration Date: 10/31/2019 * 1. Type of Submission: * 2. Type of Application: * 3. Date Received: 4. Applicant Identifier: 5a. Federal Entity Identifier: 5b. Federal Award Identifier: 6. Date Received by State: 7. State Application Identifier: * a. Legal Name: * b. Employer/Taxpayer Identification Number (EIN/TIN): * c. Organizational DUNS: * Street1: Street2: * City: County/Parish: * State: Province: * Country: * Zip / Postal Code: Department Name: Division Name: Prefix: * First Name: Middle Name: * Last Name: Suffix: Title: Organizational Affiliation: * Telephone Number: Fax Number: * Email: * If Revision, select appropriate letter(s): * Other (Specify): State Use Only: 8. APPLICANT INFORMATION: d. Address: e. Organizational Unit: f. Name and contact information of person to be contacted on matters involving this application: Application for Federal Assistance SF-424 Preapplication Application Changed/Corrected Application New Continuation Revision 06/23/2017 B-17-MC-06-0020 City of Palo Alto 94-6000389C 0505207820000 250 Hamilton Avenue Palo Alto CA: California USA: UNITED STATES 94301 Planning & Comm. Environment Long Range Planning Ms.Eloiza Murillo-Garcia Senior Planner 650-329-2561 650-329-2154 eloiza.murillogarcia@cityofpaloalto.org * 9. Type of Applicant 1: Select Applicant Type: Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: * Other (specify): * 10. Name of Federal Agency: 11. Catalog of Federal Domestic Assistance Number: CFDA Title: * 12. Funding Opportunity Number: * Title: 13. Competition Identification Number: Title: 14. Areas Affected by Project (Cities, Counties, States, etc.): * 15. Descriptive Title of Applicant's Project: Attach supporting documents as specified in agency instructions. Application for Federal Assistance SF-424 C: City or Township Government U.S. Department of Housing and Urban Development 14.218 The City of Palo Alto's Community Development Block Grant (CDBG) program for Fiscal Year 2018. View AttachmentsDelete AttachmentsAdd Attachments View AttachmentDelete AttachmentAdd Attachment * a. Federal * b. Applicant * c. State * d. Local * e. Other * f. Program Income * g. TOTAL . Prefix: * First Name: Middle Name: * Last Name: Suffix: * Title: * Telephone Number: * Email: Fax Number: * Signature of Authorized Representative:* Date Signed: 18. Estimated Funding ($): 21. *By signing this application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to comply with any resulting terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject me to criminal, civil, or administrative penalties. (U.S. Code, Title 218, Section 1001) ** The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement or agency specific instructions. Authorized Representative: Application for Federal Assistance SF-424 * a. Applicant Attach an additional list of Program/Project Congressional Districts if needed. * b. Program/Project * a. Start Date:* b. End Date: 16. Congressional Districts Of: 17. Proposed Project: 14th 14th Add Attachment Delete Attachment View Attachment 06/30/201807/01/2017 379,477.00 329,057.00 136,049.00 844,583.00 a. This application was made available to the State under the Executive Order 12372 Process for review on b. Program is subject to E.O. 12372 but has not been selected by the State for review. c. Program is not covered by E.O. 12372. Yes No Add Attachment Delete Attachment View Attachment ** I AGREE Mr.James Keene City Manager 650-329-2563 james.keene@cityofpaloalto.org * 20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes," provide explanation in attachment.) * 19. Is Application Subject to Review By State Under Executive Order 12372 Process? If "Yes", provide explanation and attach CERTIFICATIONS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing --The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti-displacement and Relocation Plan --It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Anti-Lobbying --To the best of the jurisdiction's knowledge and belief: 1.No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2.If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3.It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction --The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. Section 3 --It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. Signature/Authorized Official Date Specific CDBG Certifications The Entitlement Community certifies that: Citizen Participation --It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan --Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long-term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan --It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds --It has complied with the following criteria: 1.Maximum Feasible Priority.With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); 2.Overall Benefit.The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s) _____ , ______(a period specified by the grantee consisting of one, two, or three specific consecutive program years), shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; 3.Special Assessments.It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate-income (not low-income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Excessive Force --It has adopted and is enforcing: 1. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and 2. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction; Compliance With Anti-discrimination laws --The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. Lead-Based Paint --Its activities concerning lead-based paint will comply with the requirements of 24 CFR Part 35, subparts A, B, J, K and R; Compliance with Laws --It will comply with applicable laws. Signature/Authorized Official Date Title APPENDIX TO CERTIFICATIONS INSTRUCTIONS CONCERNING LOBBYING: A.Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Attachment C CITY OF PALO ALTO CDBG APPLICATIONS FISCAL YEAR 2018 AGENCY PROGRAM NAME FY 2017 FINAL FY 2018 REQUEST HRC RECOMMENDATIONS Public Services (15% CAP = $76,489) Palo Alto Housing Corp. SRO Resident Support Program $ 22,983 $ 49,457 $ 21,000 Catholic Charities of Santa Clara County Long-Term Care Ombudsman Program $ 5,012 $ 10,000 $ 7,000 LifeMoves (formerly Inn Vision) Opportunity Services Center $ 35,592 $ 50,000 $ 35,000 YWCA/Support Network Domestic Violence Services $ 8,020 $ 10,000 $ 8,489 Silicon Valley Independent Living Center Housing and Emergency Services $ 5,012 $ 5,032 $ 5,000 Public Service Total $ 76,619 $ 124,489 $ 76,489 Planning & Administration (20% CAP = $103,105) Project Sentinel Fair Housing Services $ 30,941 $ 32,012 $ 28,810 City of Palo Alto CDBG Administration $ 77,310 $ 85,000 $ 74,295 Planning & Administration Total $ 108,251 $ 117,012 $ 103,105 Economic Development Downtown Streets Workforce Development Program $ 290,723 $ 336,400 $ 336,400 Economic Development Total $ 290,723 $ 336,400 $ 336,400 Public Facilities/Housing Rehabilitation Community Working Group Opportunity Center Rehabilitation $ - $ 220,000 $ 220,000 City of Palo Alto Minor Home Repair Program $ - $ 108,589 $ 108,589 Public Facilities/Housing Rehab Total $ 278,825 $ 328,589 $ 328,589 GRAND TOTAL $ 754,418* $ 906,490 $ 844,583 *Includes $278,825 in FY17 CDBG funding for Midpen Palo Alto Gardens rehab project Estimated Funds Available $ 844,583 Available for Public Service (15% Cap) $ 76,489 Available for Planning/Admin (20% Cap) $ 103,105 Available for Economic Development/Public Facilities $ 664,992 City of Palo Alto (ID # 8283) City Council Staff Report Report Type: Action Items Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Policy and Services Committee Recommendation Regarding Aircraft Noise Title: Policy and Services Committee Recommendation to Reaffirm Palo Alto’s Position to Reduce Aircraft Noise and Direction on Further Near-Term Advocacy Steps, Including Sending a Letter From the Mayor to the United States Department of Transportation and Other Federal Officials From: City Manager Lead Department: City Manager Recommendation Staff recommends the City Council reaffirm Palo Alto’s position to reduce aircraft noise through approval of the attached letter from the Mayor to the United States Department of Transportation, direct staff to obtain expert opinion on aircraft noise monitoring strategy, meet with neighboring cities to establish a regional position on the issue of aircraft noise, and align resources to be prepared to respond to the Federal Aviation Administration’s (FAA) response to the reports of reports of the Select Committee on South Bay Arrivals and San Francisco International Airport (SFO)/Community Roundtable. Background On May 23, 2017 the Policy & Services Committee on the 3-0 vote with Vice Mayor Kniss absent recommended the City Council: A. Take into account the public comments made tonight and received in writing, and reaffirm the City’s position to reduce aircraft noise over the skies of Palo Alto; and B. Endorse and advocate a seat on the Select Committee's proposed Ad-Hoc Committee and any new permanent entities whose actions will impact Palo Alto and communicate that interest to Representative Eshoo; and C. Obtain an expert opinion on aircraft noise monitoring strategy and make a recommendation to Council; and D. Reach out to neighboring communities such as Portola Valley, Woodside, Menlo Park, Mountain View, Los Altos, Sunnyvale and East Palo Alto to establish a regional position on this issue; and City of Palo Alto Page 2 E. Be prepared to respond to the FAA Select Committee Report in the form of legal or professional representation; and F. Emphasize as a priority a focus on minimizing noise, the equitable dispersion of noise and improving technology and flight methods to minimize the noise in general; and G. Recognize that on the ground noise matters, even if it is within the vicinity of an airport and establish an objective standard for noise at certain elevations and flight methods; and H. Ask FAA to consider emissions from aircraft Discussion The attached draft letter from the Mayor to the United States Department of Transportation (DOT) addresses Policy & Services Committee recommendations A, B, F, G, and H. On May 17, 2017 Congressional Representatives Eshoo, Speier and Panetta issued a press release stating that “we have been advised that the FAA will send their completed document to the DOT within a month for final review and authorization. It is not known at this time how long the DOT will take to authorize the release of the response; we will continue to follow-up and will release the response as soon as we receive it.” The attached letter is timely, reaffirms the City’s position and expresses the Committee’s direction regarding inadequate noise measurements and health risks associated with aircraft emissions. Prior to and during the Policy & Services Committee meeting, staff received and acknowledged feedback from community members about the details of the Committee staff report. In order to ensure a timely message to the DOT and to proceed with other Committee recommendations, staff is not providing a summary or reconciliation of resident perspectives relative to the staff report. Staff will address resident feedback in the coming months. The Mayor’s letter does address the concerns of residents specifically with regards to inadequate noise measurements and health risks associated with aircraft emissions. Finally, by approving the staff report, Council will authorize staff to proceed with Committee recommendations C, D and E. Resources Impact At this time staff is not requesting any additional funding. The City has existing contracts and approved funding with Freytag & Associates (aviation consultants), Van Scoyoc & Associates (federal legislative consultants) and the ability to hire additional technical or legal consultants as needed. Staff resources from the City Manager’s Office, City Attorney’s Office and Public Works Department Airport Division are currently allocated to this project. Attachments:  Attachment A: Draft Letter from Mayor to DOT  Attachment B: May 23, 2017 Policy and Services Committee Staff Report June 19, 2017 Secretary Elaine L. Chao United States Department of Transportation 1200 New Jersey Ave, SE Washington D.C. 20590 Subject: FAA response to reports of the Select Committee on South Bay Arrivals and San Francisco International Airport/Community Roundtable Dear Secretary Chao, On behalf of the Palo Alto City Council, I would like to recognize the hard work of FAA staff to address aircraft noise over the skies of Palo Alto and Silicon Valley. This was evident by former Western Regional Director Glen Martin’s commitment to the local Select Committee meetings. Palo Alto is the Birthplace of Silicon Valley, the location for many of our nation’s top companies, neighbor to Stanford University and home to approximately 66,000 residents. Palo Alto places a high value on working with other communities to ensure the burdens of supporting Silicon Valley’s role in the national and international is reasonably distributed. However, at this time the impacts from aircraft noise are creating a disproportionate negative impact on the quality of life for people that live and work in our city. It is our understanding that in the coming weeks the FAA will submit their response to the reports of the Select Committee on South Bay Arrivals and San Francisco International Airport (SFO)/Community Roundtable for Department of Transportation (DOT) review. On several occasions the City has recommended that the FAA should: 1. Create more “points” for aircraft to use while entering SFO. There is currently one point (MENLO waypoint) used for flights coming in from the north, west, or south. This point centralizes all arrival aircraft and noise over Palo Alto. 2. Redirect flights arriving from the south to the east; away from the Pacific Ocean coast to the hills west of Interstate 5 and have aircraft enter the Bay from the east. 3. Shift the flights arriving from the north away from the Peninsula to the Bay. 4. Encourage the divisions and staff within FAA to work in partnership with each other to minimize noise through efficient organization of aircraft schedules and routes while also utilizing arrival descents that limit speed brakes. We sincerely hope the DOT takes these recommendations into account when reviewing the FAA’s response. Additionally, we ask that the DOT and FAA: 1. Create a permanent forum or committee to address aircraft noise and the health risk concerns of residents of cities not represented by the SFO Community Roundtable. Or amend the SFO Community Roundtable structure to be inclusive of cities beyond San Mateo County. 2. Adopt and apply supplemental metrics to recognize the limitations of Day-Night Average Sound Level (DNL) in addressing the effects of air traffic management. 3. Change the current 3,000 feet upper threshold for emission testing to 5,000 feet and use existing FAA resources and technology to conduct testing and modeling of Silicon Valley air quality. The Palo Alto City Council is committed to working with the FAA, SFO, San Jose International Airport, neighboring cities, counties and all stakeholders to ensure a reasonable solution is identified for Silicon Valley. Sincerely, Greg Scharff Mayor Cc: Dianne Feinstein, California Senator Kamala D. Harris, California Senator Anna G. Eshoo, Congresswoman California’s 18th Congressional District Michael Huerta, Federal Aviation Administration, Administrator Dennis Roberts, Federal Aviation Administration, Regional Administrator Palo Alto City Council James Keene, City Manager Molly Stump, City Attorney City of Palo Alto (ID # 8143) Policy and Services Committee Staff Report Report Type: Action Items Meeting Date: 5/23/2017 City of Palo Alto Page 1 Summary Title: Airplane Noise Update Title: Discuss the Topic of Aircraft Noise, Review Federal Legislative Updates and Recommend that City Council Reaffirm City's Positions to Reduce Aircraft Noise and Make Other Recommendations as Needed to Advance City’s Goals to Reduce Aircraft Noise Over the Skies of Palo Alto. From: City Manager Lead Department: City Manager Summary On November 17, 2016 the Report of the Select Committee on South Bay Arrivals, commissioned by congressional representatives Eshoo, Speier and Farr, along with San Francisco Airport (SFO) Community Roundtable’s Response to the Federal Aviation Administration (FAA) Initiative were issued by the respective governing entities to the aforementioned federal representatives. Both reports are attached and contain a series of recommendations in response to citizens’ concerns about airplane noise. In March 2017 Mayor Scharff, Vice Mayor Kniss, Councilmember Wolbach and Councilmember Fine met with FAA officials during their attendance at the National League of Cities Annual Legislative meeting in Washington, D.C. On May 17, 2017 Congressional Representatives Eshoo, Speier, and Panetta issued a press release which is attached. They stated that “We have been advised that the FAA will send their completed document to the Department of Transportation (DOT) within a month for final review and authorization. It is not known at this time how long the DOT will take to authorize the release of the response; we will continue to follow-up and will release the response as soon as we receive it.” Attached is an update on current FAA federal legislative matters. Recommendation Staff recommends that the Policy & Services Committee recommend that the City Council reaffirm the City’s positions to reduce aircraft noise over the skies of Palo Alto, seek a seat on the Select Committee's proposed Ad-Hoc Committee and any new permanent entity created to address aircraft noise, and have City Council confirm these recommendations before the City of Palo Alto Page 2 summer 2017 recess, if possible. At that time, the Committee Report can also alert the Council that a subsequent discussion before Council will be necessary once the City has received a response to the reports from the FAA through Congress. Secondarily staff recommends that the Committee discuss seeking membership in the SFO Community Roundtable as well as partnering with SFO’s Noise Abatement Office to install temporary noise monitors in Palo Alto and make the appropriate recommendations to City Council. Background Palo Alto is impacted by three arrival routes into SFO. These routes arrive from the north, west and south. The City has dedicated substantial staff time, hired noise and aviation consultants, and engaged our federal legislative consultants to advocate for our goals and support community engagement. On several occasions the City has recommended that the FAA should: 1. Create more “points” for aircraft to use while entering SFO. There is currently one point (MENLO waypoint) used for flights coming in from the north, west, or south. This point centralizes all arrival aircraft and noise over Palo Alto. 2. Redirect flights arriving from the south to the east; away from the Pacific Ocean coast to the hills west of Interstate 5 and have aircraft enter the Bay from the east. 3. Shift the flights arriving from the north away from the Peninsula to the Bay. 4. Encourage the divisions and staff within FAA to work in partnership with each other to minimize noise through efficient organization of aircraft schedules and routes while also utilizing arrival descents that limit speed brakes. These recommendations are reflected in City communications to the FAA, Select Committee and Congresswoman Eshoo’s office. All documents, letters, and reports can be found on the City’s website to this topic: www.cityofpaloalto.org/airplanenoise. Analysis of Select Committee and SFO Roundtable Reports The most significant problem raised by our citizens is noise. Airplane noise over Palo Alto is generated due to the convergence of three arrival routes into SFO over one geographic three dimensional point referred to as the MENLO waypoint. This waypoint is located near Willow Road and Highway 101. It is this waypoint and its proximity to the airport that aircraft use to navigate their approaches which leads to low altitude flights over Palo Alto and some other Midpeninsula cities. The three SFO routes that use this waypoint can be characterized as arrivals from the north, west and south. Northerly Arrivals This route brings aircraft over the Peninsula and completes a left banking U-turn over Palo Alto to then approach SFO. The Committee recommended that this route use the Bay for arrival, instead of the Peninsula, and complete a right banking U-turn. This would reduce the number of flights over the Midpeninsula and Palo Alto. The City’s position aligns with this City of Palo Alto Page 3 recommendation. The SFO Roundtable concurred with the Select Committee but was cautious with its recommendation due to the volume of airplane traffic using the Bay. Westerly Arrivals This route brings aircraft from Asia over Woodside and then making a left turn at or near the MENLO waypoint for the arriving final approach to SFO. The percent of flights using this route is substantially lower compared to the northerly and southerly routes. Additionally, as mentioned by various speakers during the Select Committee meetings, providing alternative route recommendations for this arrival is difficult due to air travel over the vast Pacific Ocean and the fuel capacity of aircraft in relation to changing weather patterns. The Committee recommended that FAA comply with existing noise abatement procedure with particular attention to night time flights. The City’s position mostly aligns with this recommendation. The SFO Roundtable concurred with the Select Committee report but acknowledged that due to a customized arrival plan, referred to as Ocean Tailored Arrival, some flights with FAA approval do fly at low altitudes and that there are limited options to further mitigate this arrival route. Southerly Arrivals This route brings aircraft over the Santa Cruz area to then fly over the South Bay, Los Altos, Los Altos Hills, and Palo Alto to then complete a left turn at or near the MENLO waypoint for the final to approach SFO. The Select Committee made four detailed recommendations regarding this route. They are simplified and noted here: 1. Design a new route using the former arrival route referred to as Big Sur; 2. Ensure arrivals cross the MENLO waypoint at or above 5,000 ft.; 3. Monitor and measure noise for this new route; 4. Design an entirely new route that takes maximum advantage of non-residential areas such as unpopulated areas, industrial areas, parkland, cemeteries, etc. The City’s position aligns with No. 4 of this recommendation. Numbers 1 to 3 are generally improvements for the Midpeninsula region but not long term solutions in reducing aircraft noise over Palo Alto. It is also important to note that during the Select Committee hearings the City recommended two specific proposals for southerly arrivals (in addition to our four standing positions). One proposal recommended using the full extent of the Bay and entering the Bay Area over Fremont and Milpitas at very high altitudes. The Committee and SFO Roundtable did recommend that the FAA consider transitioning nighttime flights from the south to the east. The other new suggestion was to divert some flights arriving from the Santa Cruz area to travel several miles south of Palo Alto at much higher altitudes. The Committee did not endorse the idea based on FAA advice that they lack the technology to have aircraft join a flight path at various points. Palo Alto, SFO Roundtable Membership and an Ongoing Forum to Address Aircraft Noise City of Palo Alto Page 4 Palo Alto’s recent history with the SFO Roundtable dates back to 2014 when the City requested membership but was not granted voting status. In 2016 the item reemerged with the SFO Roundtable placing the topic on their agenda without notifying the City. The item was not discussed due to the lack of support by Congresswoman Eshoo who was in the process of forming the Select Committee and stated that “Santa Clara County has 15 cities within its jurisdiction and adding only one city as voting member is not an equitable solution.” Additionally since the City was not aware about the SFO Roundtable’s desire to discuss the item the City asked that the item not be discussed at that time. To address the need and inequity between Santa Clara and San Mateo Counties, the Select Committee made to two recommendations. One being the formation of an “Ad-Hoc Committee consisting of two Members/Alternates from the Select Committee (or others yet to be named) from each County/Congressional District to be convened by the three members of Congress who empaneled the Select Committee over the short-term to continue work on the issues identified in the report.” Second, they recommended that “a permanent entity be established to address issues of aircraft noise in the three county area on an ongoing basis, and to provide a forum for community input.” The Policy & Services Committee may be interested in representation on and access to an ongoing entity that addresses aircraft noise and impacts. The SFO Roundtable is currently the only formal entity and the City could seek participation. Yet in light of the Select Committee report recommendations to create an Ad-Hoc Committee and possibly a new permanent entity, as well as no response from the FAA to the reports, should we pursue SFO Roundtable membership now? Noise Measurement and Monitoring The Select Committee acknowledged that the FAA’s established noise measurement metrics are inadequate and do not represent what is being experienced by citizens on the ground. The Committee report states that “the shortcomings exist in large measure because the cumulative noise level (over a 24-hour period) is not high enough to technically constitute a significant impact.” The report goes on to state that “the use of Day-Night Average Sound Level (DNL) alone is ill-suited to assess ground level impacts.” The Committee recommended that Congress require the FAA to adopt supplemental metrics for aircraft noise. Furthermore, the Select Committee recognized the need for before and after noise monitoring by making two recommendations. They requested the FAA and or SFO to monitor and document noise exposure from any feasible solutions before and after implementation and secondarily to establish a set of regional monitoring stations throughout the Bay Area and the three Congressional districts. Palo Alto does not have any SFO Noise Abatement Office sanctioned noise monitors located throughout the city. SFO has offered to install temporary noise monitors throughout Palo Alto. Staff has not yet requested these temporary monitors due to concerns regarding the City of Palo Alto Page 5 inadequate noise measurement metrics and varying expert opinions about the usefulness of noise monitors. Staff has invited SFO Noise Abatement Office staff to comment on this topic at the Committee meeting. Attachments:  Attachment A: Select Committee Report  Attachment B: SFO Roundtable Report  Attachment C: VSA Memo re Federal Legislation  Attachment D: FAA Graphic of SFO Arrivals  Attachment E: Congressional Representative Press Release City of Palo Alto (ID # 7860) City Council Staff Report Report Type: Informational Report Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Castilleja School Expansion Project EIR Scoping Report Title: EIR Scoping Report for the Castilleja School Expansion Project From: City Manager Lead Department: Planning and Community Environment Recommendation This is an informational report regarding the public “scoping” period for the Castilleja School Expansion Project Environmental Impact Report (EIR) and no action is recommended. Executive Summary Castilleja School Foundation has applied for a new Conditional Use Permit (CUP) and a Master Plan (Architectural Review) to allow an increase in student enrollment as well as redevelopment of the school campus in three phases. The City determined that an EIR will be required to assess potentially significant environmental impacts of the proposal and published an Initial Study and Notice of Preparation (NOP) on January 23, 2017, requesting public input on the scope of the EIR. Attachment A is the City’s Initial Study for the project. Attachment B is comprised of NOP extensions and the original NOP. Attachment C is a list of the dates and names of persons who submitted comments between publication of the first NOP and the end of the extended public scoping period on May 12, 2017. The City’s consultant compiled the comments received, which are provided in Attachment D. All of the comments received will be taken into consideration as the City and its consultants prepare a Draft EIR for public review. The Draft EIR will be available for public comment a minimum of 45 days, and will be the subject of one or more public hearings during that time. All substantive comments received on the Draft EIR will be included in a Final EIR together with written responses. The Final EIR must be completed and “certified” before the City Council can consider Castilleja’s applications. City of Palo Alto Page 2 Background Castilleja is a private girls school which has been located at 1310 Bryant Street in Palo Alto since 1910. The school is currently operating under a CUP approved by the City in the year 2000, which allows up to 415 students. In 2013, Castilleja informed the City that it had been exceeding this enrollment limit for several years. After City staff commenced enforcement action, on June 30, 2016, the Castilleja School Foundation submitted an application for a new CUP to resolve the violation. The CUP application and an associated Master Plan for campus redevelopment will be the subject of an EIR prepared pursuant to the California Environmental Quality Act (CEQA). CEQA is a State law that requires decision makers and the public to consider potentially significant environmental impacts prior to making decisions. On March 8, 2017, a scoping meeting for the Castilleja project was held during a Planning and Transportation Commission (PTC) meeting. The scoping meeting was held to obtain comments on the scope of the Environmental Impact Report (EIR) that will be prepared to evaluate Castilleja’s request for an expansion in enrollment and redevelopment of their existing campus in three phases. The March 8, 2017 PTC staff report is viewable here http://www.cityofpaloalto.org/civicax/filebank/documents/56245; it includes background regarding the school and prior CUPs. Meeting minutes and a video of the meeting are found via this link: http://www.cityofpaloalto.org/gov/boards/ptc/default.asp. The period for written comments on the scope of the EIR was extended twice at the applicant’s request to accommodate all interested parties, until the close of business on May 12, 2017. All comments received prior to May 12, 2017 have been compiled in Attachment D and will inform preparation of the Draft EIR. The City maintains a webpage providing project application status updates, notification of new webpage uploads including documents submitted to Council by interested parties (e.g. neighbors of Castilleja), documents the applicant submitted for the City’s consideration, and documents prepared by staff and the EIR consultant (Dudek). The webpage is viewable here: http://www.cityofpaloalto.org/gov/topics/castilleja_school.asp. Interested parties are encouraged to subscribe to this webpage to stay informed regarding this project. Timeline/Next Steps The March 8, 2017 PTC report cited above provides a detailed summary of the EIR process. Staff expects the Draft EIR will be published later this year, with one or more formal hearings on the Draft EIR immediately thereafter and formal hearings on the pending applications likely in 2018. In advance of the formal hearings of the project, study session reviews of the conceptual master plan by the Historic Resource Board and Architectural Review Board are tentatively City of Palo Alto Page 3 scheduled for September 2017. Attachments: Attachment A: Castilleja Initial Study 012317 (PDF) Attachment B, Part 1: Most Recent NOP Extension (DOCX) Attachment B, Part 2: NOP Extension (PDF) Attachment B, Part 3: First NOP (PDF) Attachment C: List of Scoping Comments Received (PDF) Attachment D: Compilation of Public Comments Received During the Scoping Period (DOCX) Castilleja School Conditional Use Permit and Master Plan Initial Study Prepared for: City of Palo Alto 250 Hamilton, 5th Floor, Palo Alto, California 94301 Contact: Amy French, Chief Planning Official Prepared by: 853 Lincoln Way, Suite 208 Auburn, California 95603 Contact: Katherine Waugh JANUARY 2017 Printed on 30% post-consumer recycled material. Castilleja School Initial Study 10056 i January 2017 TABLE OF CONTENTS Section Page No. ACRONYMS AND ABBREVIATIONS .................................................................................... II 1 INITIAL STUDY CHECKLIST ......................................................................................1 2 SUMMARY OF FINDINGS .............................................................................................5 2.1 Environmental Factors Potentially Affected ........................................................... 5 2.2 Environmental Determination ................................................................................. 5 3.1 Aesthetics ................................................................................................................ 7 3.2 Agriculture and Forestry Resources........................................................................ 8 3.3 Air Quality .............................................................................................................. 9 3.4 Biological Resources ............................................................................................ 12 3.5 Cultural Resources ................................................................................................ 16 3.6 Geology and Soils ................................................................................................. 17 3.7 Greenhouse Gas Emissions ................................................................................... 18 3.8 Hazards and Hazardous Materials ........................................................................ 19 3.9 Hydrology and Water Quality ............................................................................... 23 3.10 Land Use and Planning ......................................................................................... 27 3.11 Mineral Resources ................................................................................................ 28 3.12 Noise ..................................................................................................................... 28 3.13 Population and Housing ........................................................................................ 30 3.14 Public Services ...................................................................................................... 31 3.15 Recreation ............................................................................................................. 32 3.16 Transportation and Traffic .................................................................................... 33 3.17 Tribal Cultural Resources ..................................................................................... 34 3.18 Utilities and Service Systems................................................................................ 35 3.19 Mandatory Findings of Significance ..................................................................... 38 4 REFERENCES AND PREPARERS ..............................................................................40 4.1 References Cited ................................................................................................... 40 4.2 List of Preparers .................................................................................................... 41 FIGURES Figure 1 Regional Location ..................................................................................................43 Figure 2 Site and Vicinity ....................................................................................................45 Figure 3 Aerial Map .............................................................................................................47 Figure 4 Comprehensive Plan and Zoning Designations .....................................................49 Castilleja School Initial Study 10056 ii January 2017 ACRONYMS AND ABBREVIATIONS Acronym/Abbreviation Definition ACM Asbestos containing material APN Assessor’s Parcel Number BAAQMD Bay Area Air Quality Management District BMP Best management practices CDFW California Department of Fish and Wildlife CEQA California Environmental Quality Act DTSC Department of Toxic Substances Control EIR Environmental Impact Report LCM Lead-containing materials NPDES National Pollution Discharge Elimination System O3 Ozone PCB Polychlorinated biphenyls PM10 Coarse particulate matter PM2.5 Fine particulate matter RWCQB Regional Water Quality Control Board TDM Transportation Demand Management Castilleja School Initial Study 10056 1 January 2017 1 INITIAL STUDY CHECKLIST This Initial Study evaluates the potential environmental effects that would result from the proposed remodeling of the Castilleja School. This Initial Study has been prepared to satisfy the environmental review requirements under the California Environmental Quality Act (CEQA) applicable to the City of Palo Alto consideration of the proposed project. 1. Project title: Castilleja School Conditional Use Permit and Master Plan 2. Lead agency name and address: City of Palo Alto Department of Planning and Community Environment 250 Hamilton, 5th Floor, Palo Alto, California 94301 3. Contact person and phone number: Amy French, Chief Planning Official (650) 329-2336 4. Project location: 1310 Bryant Street and 1235 and 1263 Emerson Street, Palo Alto, CA 94301. Project site is 286,783 square feet comprised of three parcels: (1) APN 124-12-034 (1310 Bryant, school site), (2) APN 124-12-031 (1235 Emerson, “Emerson House” aka ‘Lockey/Alumnae House’, 75’ on Emerson St), and (3) APN 124-12-033 (1263 Emerson, “Head’s House’, 105’ on Emerson St). 5. Project sponsor’s name and address: Castilleja School Foundation Kathleen Layendecker 1310 Bryant Street, Palo Alto, CA 94301 6. General plan designation: Single Family Residential Castilleja School Initial Study 10056 2 January 2017 7. Zoning: R-1(10,000) 8. Description of project: Location: The proposed project will occur at the existing Castilleja school in Palo Alto, California, as shown in Figure 1, Regional Location, and Figure 2, Site and Vicinity. Construction and operation educational facilities is allowed under the project site’s single-family residential land use designation and R-1(10,000) zoning designation. Objectives: 1. Increase parking on-site. 2. Improve vehicular, pedestrian, and bicycle access for students and staff. 3. Reduce the number of service deliveries and relocate deliveries within the campus to decrease nuisance effects to neighbors. 4. Provide new structures that integrate state-of-the-art technology and teaching practices and retain flexibility to adapt to unanticipated changes. 5. Achieve better architectural compatibility with the adjacent neighborhoods and improve site aesthetics through landscaping. 6. Increase student enrollment from 438 to 540 students (the City Manager authorized enrollment of 438 students in excess of the 2000 Conditional Use Permit cap of 415 students, based upon (1) successful TDM/trip reduction and (2) entering into the Conditional Use Permit amendment process) 7. Ensure no increase in vehicle trips to and from the campus during AM and PM peak hours relative to existing (baseline) traffic volumes. 8. Improve the campus’s sustainability and energy efficiency. Description: Castilleja School is an all-girls private school in Palo Alto that has been educating 6th to 12th grade girls since 1907 and has been located at the current site since 1910. As shown in Figure 3, Existing Site, the school’s facilities include administrative buildings, chapel theater, classrooms, a gymnasium, pool, above ground parking area, playing area, and Castilleja School Initial Study 10056 3 January 2017 track. The project proposal is to demolish two homes on adjacent Castilleja-owned parcels (at 1235 and 1263 Bryant) and merge the two parcels into the Castilleja campus parcel via Parcel Map with Exception, and demolish four existing buildings within the current campus and replace them with a single building. The applicant seeks to expand enrollment and redevelop the existing campus in three construction phases: 1. Construct a below-grade parking structure under the merged parcels to accommodate 130 vehicles, re-route drop-off and pick-up through the garage, and increase enrollment to a maximum of 490 students; 2. Relocate the existing pool, complete bikeway station on Bryant Street Bicycle Boulevard, and increase enrollment to a maximum of 520 students; and 3. Relocate deliveries and waste pick-ups further from the street and below grade, reduce number of food service deliveries by 10%, implement sustainability plan, and increase enrollment to a maximum of 540 students. In order to accomplish the proposed project, Castilleja School Foundation has submitted an application to amend the school’s existing Conditional Use Permit and an Architectural Review application. Including future phase construction of a new campus building, the project would result in an increase in the total building square footage within the campus by 26,700 square feet, all of which would be below grade - above grade the square footage would remain the same. The applicant also proposes to increase the number of off-street parking spaces from 73 to 170. Of these, 130 would be below ground and 40 of which would be in surface parking lots. This would reduce the number of above ground spaces by 33 spaces. The amount of open space would also increase by 6,182 square feet. Finally, the school has proposed to meet a “no new AM or PM Peak hour trips” standard as a condition of project approval and the project includes a Transportation Demand Management Plan to achieve this. The project also includes implementation of a Sustainability Program at the school. 9. Surrounding land uses and setting (Briefly describe the project’s surroundings): The project site is surrounded by residential land uses, predominantly single-family residences. Embarcadero Road, a residential arterial, forms the northern boundary of the project site. Castilleja School Initial Study 10056 4 January 2017 10. Other public agencies whose approval is required (e.g., permits, financing approval, or participation agreement): The proposed project would not require discretionary approvals from any agency other than the City of Palo Alto. 11. Have California Native American tribes traditionally and culturally affiliated with the project area requested consultation pursuant to Public Resources Code section 21080.3.1? If so, has consultation begun?: No tribes that are traditionally and culturally affiliated with the project area have requested consultation pursuant to Public Resources Code section 20180.3.1. Castilleja School Initial Study 10056 5 January 2017 2 SUMMARY OF FINDINGS 2.1 Environmental Factors Potentially Affected This Initial Study considers the environmental issues identified in Appendix G of the CEQA Guidelines. Where impacts have the potential to be significant, those impacts will be analyzed within the project Environmental Impact Report (EIR). 2.2 Environmental Determination As shown in the Initial Study, the proposed project has the potential to have some significant impacts. Therefore, in the areas identified below, an EIR is appropriate to evaluate the potentially significant impacts. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a “Potentially Significant Impact,” as indicated by the checklist on the following pages. Aesthetics Agriculture and Forestry Resources Air Quality Biological Resources Cultural Resources Geology and Soils Greenhouse Gas Emissions Hazards and Hazardous Materials Hydrology and Water Quality Land Use and Planning Mineral Resources Noise Population and Housing Public Services Recreation Transportation and Traffic Tribal Cultural Resources Utilities and Service Systems Mandatory Findings of Significance Castilleja School Initial Study 10056 7 January 2017 EVALUATION OF ENVIRONMENTAL IMPACTS: 3.1 Aesthetics Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact I. AESTHETICS – Would the project: a) Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? a) Would the project have a substantial adverse effect on a scenic vista? b) Would the project substantially damage scenic resources including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) Would the project substantially degrade the existing visual character or quality of the site and its surroundings? d) Would the project create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? The proposed project has the potential to have significant impacts and thus Aesthetics will be analyzed in the project EIR. Castilleja School Initial Study 10056 8 January 2017 3.2 Agriculture and Forestry Resources Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact II. AGRICULTURE AND FORESTRY RESOURCES – In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Department of Conservation as an optional model to use in assessing impacts on agriculture and farmland. In determining whether impacts to forest resources, including timberland, are significant environmental effects, lead agencies may refer to information compiled by the California Department of Forestry and Fire Protection regarding the state’s inventory of forest land, including the Forest and Range Assessment Project and the Forest Legacy Assessment project; and forest carbon measurement methodology provided in Forest Protocols adopted by the California Air Resources Board. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? d) Result in the loss of forest land or conversion of forest land to non-forest use? e) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non-forest use? a) Would the project convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? b) Would the project conflict with existing zoning for agricultural use, or a Williamson Act contract? The proposed project site is located in an urban area and is currently developed. The site is not identified as prime farmland, unique farmland, or farmland of statewide importance and the project site is not under a Williamson Act contract (DOC 2014). It is designated Single Family Residential in the City’s General Plan. The site is not planned for or used for any agricultural purposes and there are no agricultural uses in the vicinity. The Castilleja School Initial Study 10056 9 January 2017 proposed modifications to the existing facility on the project site would not result in the conversion of any agricultural land, conflict with any agricultural use, or conflict with a Williamson Act contract. Therefore, no impact would occur as a result of the proposed project. c) Would the project conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? d) Would the project result in the loss of forest land or conversion of forest land to non-forest use? The project site is not zoned as forest land, does not contain forest land or forest resources, and does not support any forest uses. The proposed modifications to the existing facility on the project site would not result in the conversion of any forest land to a non-forest use. Therefore, no impact would occur as a result of the proposed project. e) Would the project involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non-forest use? The site is located an in urban area and does not support any farmland, agricultural, or forest uses. The proposed modifications to the existing facility on the project site would not result in conversion of any farm, agricultural, or forest land to non-agricultural or non-forest uses. Therefore, no impact would occur as a result of the proposed project. Mitigation Measures No mitigation measures are necessary. 3.3 Air Quality Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact III. AIR QUALITY – Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? Castilleja School Initial Study 10056 10 January 2017 Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact III. AIR QUALITY – Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? a) Would the project conflict with or obstruct implementation of the applicable air quality plan? The project site is located within the Santa Clara Valley, which is part of the San Francisco Bay Area Air Basin. The Bay Area Air Quality Management District (BAAQMD) has the primary responsibility for ensuring that the San Francisco Bay Area Air Basin attains and maintains compliance with federal and state ambient air quality standards. The BAAQMD regulates air quality through its permit authority over most types of stationary emission sources and through its planning and review process. The BAAQMD adopted the Bay Area 2005 Ozone Strategy (BAAQMD 2006) and the Bay Area 2010 Clean Air Plan (BAAQMD 2010), which are the applicable air quality plans for the region. These plans account for air quality emissions based on the land uses and zoning designated by the City. The uses on the project site are consistent with the designated land use and zoning and the project would not change the land use on the project site. Therefore, the project is consistent with these plans and the impact would be less than significant. b) Would the project violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Would the project result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? Castilleja School Initial Study 10056 11 January 2017 d) Would the project expose sensitive receptors to substantial pollutant concentrations? The San Francisco Air Basin is designated nonattainment for the federal 8-hour ozone (O3) standard, and is attainment or unclassified for all other federal standards. The area is designated nonattainment for state standards for 1-hour and 8-hour O3, 24-hour coarse particulate matter (PM10), annual PM10, and annual fine particulate matter (PM2.5). The BAAQMD has adopted CEQA Guidelines (BAAQMD 2011) that establish air pollutant emissions thresholds that identify whether a project would violate any applicable air quality standard or contribute substantially to an existing or projected air quality violation. The proposed project would expand existing school capacity by 102 students and would implement Transportation Demand Management measures to ensure that traffic volumes associated with the school would not increase. The school capacity screening size established by the BAAQMD for operational impacts is 2,460 students for a junior high and 2,390 students for a high school. The proposed project would accommodate many fewer students than the screening size, and thus would have a less than significant impact on air quality during project operation. However, it is possible that the project would exceed air quality standards during construction, resulting in potentially significant impacts. Thus, the air quality impacts of project construction will be analyzed in the project EIR. e) Would the project create objectionable odors affecting a substantial number of people? The project is not considered an odor generating facility as described in the BAAQMD CEQA Guidelines (BAAQMD 2011). The project would not generate odors that could affect a substantial number of people and there would be no impact during project operation. However project construction could generate objectionable odors that could affect the residential and commercial neighbors of the project site. The potential construction odor impacts of the project will be analyzed in the project EIR. Castilleja School Initial Study 10056 12 January 2017 3.4 Biological Resources Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact IV. BIOLOGICAL RESOURCES – Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? a) Would the project have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? The project site has been developed and operated as a school since the early 1900s. The project site does not contain any habitats or biological resources with the potential to support any plant or wildlife species that are designated as threatened or endangered; however, there is potential for nesting birds to be present in trees on site that are proposed for removal or may be trimmed or otherwise affected by construction and there is potential for roosting bats to be present within the existing building. Many species of Castilleja School Initial Study 10056 13 January 2017 migratory birds are considered to have special-status under the federal Migratory Bird Treaty Act while bats are protected under the California Fish and Game Code. If the proposed tree removal results in take of any migratory bird (as defined in federal code 50 CFR 10.13.), the effect would be considered a significant impact. In conformance with the California State Fish and Game Code and the provisions of the Migratory Bird Treaty Act, the project shall implement Mitigation Measure BIO-1 to reduce the impact to a less-than-significant level by requiring surveys by a qualified technician to evaluate the potential presence of nesting birds prior to tree removal and requiring protection of any active bird nest during construction. If the proposed building demolition resulted in the removal or disturbance of roosting, this would be a significant impact. Mitigation Measure BIO-2 requires the project applicant to complete a bat survey prior to demolition, and identifies protocols to be followed to ensure that impacts to bats are avoided. With implementation of Mitigation Measures BIO-1 and BIO-2, the project’s potential impacts to special status species would be less than significant. b) Would the project have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? c) Would the project have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? The project site was originally developed in 1910. The project site does not contain any riparian habitat, sensitive natural community, or federally protected wetlands as defined by Section 404 of the Clean Water Act. Therefore, the proposed project will have no impact. d) Would the project interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? Wildlife corridors are linear features that connect large patches of natural open space and provide avenues for the migration of animals. Habitat linkages are small patches that join larger blocks of habitat and help reduce the adverse effects of habitat fragmentation; they may be continuous habitat or discrete habitat islands that function as stepping stones for wildlife dispersal. Because the project site is surrounded by existing roads and Castilleja School Initial Study 10056 14 January 2017 development, it does not function as a potential wildlife corridor or habitat linkage. Therefore, the project will have a less-than-significant impact. e) Would the project conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? The project would require removal of trees regulated under the City’s Tree Ordinance. The project’s impact on tree resources is potentially significant and will be analyzed in the project EIR. f) Would the project conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? There are no adopted Habitat Conservation Plans or Natural Community Conservation Plans within the City of Palo Alto. Therefore, the project would have no impact related to conflict with the provisions of such plans. Mitigation Measures Mitigation Measure BIO-1: If feasible, vegetation on the project site shall be removed outside of the bird-nesting season. If the start of site clearing, tree removal, or building demolition occurs between February 1 and August 31, a pre-construction survey for nesting birds protected under the Migratory Bird Treaty Act shall be conducted by a qualified biologist to identify the location of nests in active use that were established prior to the start of project implementation activities. The pre-construction survey shall take place no more than 7 days prior to initiation of construction. All trees and shrubs on the site and on adjacent properties shall be surveyed, with particular attention to any trees or shrubs that would be removed or directly disturbed. If an active nest of a protected bird is found on site, the biologist shall, in consultation with the California Department of Fish and Wildlife (CDFW), determine whether construction work would affect the active nest or disrupt reproductive behavior. Criteria used for this evaluation shall include presence of visual screening between the nest and construction activities, and behavior of adult birds in response to the surveyors or other ambient human activity. If construction could affect the nest or disrupt reproductive behavior, the biologist shall, in consultation with CDFW, determine an appropriate construction-free buffer zone around the nest to remain in place until the young have fledged or other appropriate protective measures are taken to ensure no take of protected species occurs. If it is determined that construction will affect an active raptor nest or disrupt reproductive behavior, then avoidance is the only mitigation available. Construction shall Castilleja School Initial Study 10056 15 January 2017 not be permitted within 300 feet of such a nest until a qualified biologist determines that the subject nests are no longer active. Prior to issuance of a demolition permit or tree removal permit, the City of Palo Alto (City) shall verify that pre-construction surveys have been conducted within 10 days of the proposed start of demolition. If active bird nests are present, the City shall verify that CDFW has been consulted and either determined that construction will not affect an active bird nest or that appropriate construction-free buffer zones have been established or other appropriate protective measures have been taken. Mitigation Measure BIO-2: No earlier than 30 days prior to initiation of demolition activities, a pre-construction survey shall be conducted by a qualified biologist (i.e., a biologist holding a California Department of Fish and Wildlife (CDFW) collection permit and a Memorandum of Understanding with CDFW allowing the biologist to handle bats) to determine if active bat roosts or maternal colonies are present on or within 300 feet of the demolition area. Should an active maternity roost be identified, the roost shall not be disturbed and demolition and construction within 300 feet of the maternity roost shall be postponed or halted until the juveniles have fledged and the roost is vacated, as determined by a qualified biologist. Consultation with CDFW shall also be initiated. Under no circumstance shall an active roost be directly disturbed. If nonbreeding bat hibernacula are found on the project site, the individuals shall be safely evicted under the direction of a qualified bat biologist and with consultation with CDFW. These actions shall allow bats to leave during nighttime hours, thus increasing their chance of finding new roosts with a minimum of potential predation during daylight. If it is determined that demolition or construction will not affect roosting behavior or disrupt a maternal colony, demolition or construction may proceed without any restriction or mitigation measure. If it is determined that demolition or construction will affect an active bat roost or disrupt reproductive behavior, then avoidance is the only mitigation available. Under no circumstance shall an active roost be directly disturbed. Demolition or construction within 300 feet shall be postponed or halted until the roost is naturally vacated as determined by a qualified biologist. Prior to issuance of a demolition permit, the City of Palo Alto (City) shall verify that pre-construction surveys have been conducted within 30 days of the proposed start of demolition. If bats are present, the City shall verify that CDFW has been consulted and Castilleja School Initial Study 10056 16 January 2017 either determined that construction will not affect an active bat roost or disrupt a maternal colony, or that individuals in a nonbreeding bat hibernacula have been safely evicted. Due to regulations from the California Health Department, direct contact by construction workers with any bat is not allowed. 3.5 Cultural Resources Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact V. CULTURAL RESOURCES – Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in §15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to §15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d) Disturb any human remains, including those interred outside of dedicated cemeteries? a-d) Would the project cause a substantial adverse change in the significance of a historical resource as defined in §15064.5? Would the project cause a substantial adverse change in the significance of an archaeological resource pursuant to §15064.5? Would the project directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? Would the project disturb any human remains, including those interred outside of dedicated cemeteries? a-d) The proposed project has the potential to have significant impacts and thus Cultural Resources will be analyzed in the project EIR. Castilleja School Initial Study 10056 17 January 2017 3.6 Geology and Soils Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact VI. GEOLOGY AND SOILS – Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? iii) Seismic-related ground failure, including liquefaction? iv) Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? a-d) Would the project expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? iii) Seismic-related ground failure, including liquefaction? Castilleja School Initial Study 10056 18 January 2017 iv) Landslides? Would the project result in substantial soil erosion or the loss of topsoil? Would the project be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? Would the project be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? a-d) The proposed project has the potential to have significant impacts and thus Geology and Soils will be analyzed in the project EIR. e) Would the project have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? The project site is currently operated as a school and relies on the City’s sewer system in order to manage its waste water. There is no septic tanks on the project site nor would the proposed project require the use of alternative waste water disposal systems; therefore, the project would have no impact. 3.7 Greenhouse Gas Emissions Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact VII. GREENHOUSE GAS EMISSIONS – Would the project: a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases? a) )Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases? Although the project would not increase the total square footage of the school buildings, it would accommodate an increase in enrollment of 102 students. The project would Castilleja School Initial Study 10056 19 January 2017 reduce energy use at the campus by replacing four buildings with a new, more energy efficient, building. Additionally the project would implement Transportation Demand Management measures to ensure there is no increase in traffic over existing conditions. These factors would limit the potential for the project to result in increased greenhouse gas emissions. Further, the BAAQMD screening sizes for operational impacts related to greenhouse gas emissions is 46,000 square feet for junior high schools and 49,000 square feet for high schools. The proposed project is below these screening sizes. Operation of the proposed project would have a less than significant impact related to greenhouse gas emissions. However, the proposed project has the potential to result in significant impacts due to greenhouse gas emissions during construction and these potential impacts will be analyzed in the project EIR. 3.8 Hazards and Hazardous Materials Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact VIII. HAZARDS AND HAZARDOUS MATERIALS – Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d) Be located on a site that is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? Castilleja School Initial Study 10056 20 January 2017 Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact VIII. HAZARDS AND HAZARDOUS MATERIALS – Would the project: g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? a) Would the project create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? The project involves demolition of four existing buildings and the replacement of which by one singular building. The above ground square footage of the project is expected to remain the same while the below ground square footage would increase by 26,700. During construction, there is the potential for short-term use of hazardous materials and fuels including diesel fuel, gasoline, and other oils and lubricants. These hazardous materials would be handled, transported and disposed of in compliance with all existing local, state and federal regulations. Operation of the proposed project would not require the routine, use, transport or disposal of hazardous waste other than typical household materials, such as cleaning supplies. The types and quantities of these common household materials stored, used, and disposed of on-site would not increase substantially and would not pose a health risk to those utilizing the project site or adjacent users. The original main buildings present on the project site were constructed in 1910. Due its early date of construction, the buildings may contain asbestos containing materials (ACMs) and lead-based paints. Demolition of the existing buildings could result in hazards related to the release or disposal of these hazardous materials. Mitigation Measure HAZ-1 would require surveys and proper disposal methods to ensure that impacts remain less than significant. b) Would the project create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? As the school was originally built in 1910, there is a potential for ACMs, lead-based paints or other hazardous building materials to be present on the project site. Improper disposal of these hazardous materials during construction could lead to an accident causing the release of hazardous materials into the environment. Mitigation Measure Castilleja School Initial Study 10056 21 January 2017 HAZ-1 requires proper disposal methods, which would ensure that impacts would remain less than significant. Operation of the school does not include activities that could result in a release of hazardous materials into the environment. c) Would the project emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? The project site is a private school serving grades 6 through 12. The nearest off-site school is Palo Alto High School, approximately a quarter mile to the east. Additionally Stanford University is located just over a third of a mile away from the project site. Operation of the proposed project would not require the use of acutely hazardous materials beyond common household materials, such as cleaning supplies, used currently. During construction, there is a potential for hazardous building materials to be encountered, which could be released into the air and would require proper transportation and disposal off-site. Transportation and disposal of these materials would be required to comply with all local, state and federal regulations, some of which are expressed in Mitigation Measure HAZ-1. With implementation of this mitigation measure, which would ensure that appropriate measures are used to control the hazardous materials such that they are not released into the environment, students at the project site and nearby schools would not be exposed to hazardous materials, substances, or waste and this impact would be less than significant. d) Would the project be located on a site that is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? The project site and surrounding sites are not on the Department of Toxic Substance Control’s EnviroStor list; thus, it is not expected that the project would create a significant hazard to the public or the environment (DTSC, 2016). Therefore, the project will have no impact related to being located on or adjacent to a known hazardous materials site. e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? There are no airports within 2 miles of the project site and the site is not identified within a safety zone in the Palo Alto Airport Land Use Compatibility Plan. The Palo Alto Castilleja School Initial Study 10056 22 January 2017 Airport is located approximately 2.5 miles east of the project site. Therefore, no impact related to safety hazards associated with aircrafts would occur. f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? The nearest private airstrip to the project site is a helipad on the Stanford Medical building approximately 1.33 miles west of the project site. The helipad is for use by emergency helicopters only. The proposed project would increase the number of students at the project site but would not change the existing land use of the site, which has served as a school since 1910. Therefore, impacts related to hazards associated with a private airstrip are less than significant. g) Would the project impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? The proposed project involves modifications to the existing school facilities at the project site. The project would increase the school’s capacity but would implement Transportation Demand Management measures to ensure that the volume of AM and PM peak hour traffic trips accessing the site would not increase relative to existing conditions. The project would also alter vehicular access to the site, including access points for delivery trucks. This change in traffic patterns could interfere with emergency response or emergency evacuation plans. Therefore, this potential impact will be evaluated in the Transportation and Traffic section of the project EIR. h) Would the project expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? The project site is located in an urban area that is not identified as a high or medium fire hazard on the map in Section 18.4.2.2.3 in the Santa Clara County Hazard Mitigation Plan (Santa Clara County, 2012). Therefore, no impact related to fire risks would occur. Mitigation Measures Mitigation Measure HAZ-1: Prior to building demolition, the project applicant shall demonstrate to the satisfaction of the City of Palo Alto that a survey of the existing buildings has been conducted by a qualified environmental specialist who meets the requirements of the current U.S. Environmental Protection Agency regulations for suspected lead-containing materials (LCMs), including lead-based paint/coatings; asbestos containing materials (ACMs); and the presence of polychlorinated biphenyls Castilleja School Initial Study 10056 23 January 2017 (PCBs). Any demolition activities likely to disturb LCMs or ACMs shall be carried out by a contractor trained and qualified to conduct lead- or asbestos-related construction work. If found, LCMs and ACMs shall be disposed of properly. If PCBs are found, these materials shall be managed in accordance with the Metallic Discards Act of 1991 (California Public Resources Code, Sections 42160–42185) and other state and federal guidelines and regulations. Demolition plans and contract specifications shall incorporate any necessary abatement measures in compliance with the Metallic Discards Act, particularly Section 42175, Materials Requiring Special Handling, for the removal of mercury switches, PCB-containing ballasts, and refrigerants. 3.9 Hydrology and Water Quality Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact IX. HYDROLOGY AND WATER QUALITY – Would the project: a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off-site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? f) Otherwise substantially degrade water quality? g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? Castilleja School Initial Study 10056 24 January 2017 Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact IX. HYDROLOGY AND WATER QUALITY – Would the project: i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? a) Would the project violate any water quality standards or waste discharge requirements? f) Would the project otherwise substantially degrade water quality? The project site is fully developed and the proposed project would not substantially change the amount of impervious surface area on the project site. The project site consists of 148,000 square feet of buildings and 73 surface parking stalls. The project is proposing to add 26,700 square feet of interior space (all below grade), as well as reducing surface parking to 40 surface parking stalls (while providing 130 new below grade parking stalls) and increasing open space by 6,182 square feet. This translates to a 0.06% increase of permeable surfaces. The project would not alter existing grades in the area and would not change the drainage patterns on the site or lead to increased erosion or sedimentation. The National Pollution Discharge Elimination System (NPDES) program administered by the Bay Area Regional Water Quality Control Board (RWQCB) regulates Stormwater runoff water quality to control and reduce pollutants to water bodies from surface water discharge. The RWQCB worked with cities and counties throughout the region to prepare and adopt a Regional Municipal Stormwater Permit (Regional Permit). The Regional Permit for the City identifies minimum standards required for new development and redevelopment within the City limits. Additionally, the City’s standard conditions of approval include requirements for projects to develop and implement best management practices (BMPs) to control erosion during construction and permanent features to treat stormwater during project operation. The project would be required to comply with all city, state and federal standards pertaining to stormwater runoff and water quality. Therefore, impacts would be less than significant. Castilleja School Initial Study 10056 25 January 2017 b) Would the project substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (i.e., the production rate of pre-existing nearby wells would drop to a level that would not support existing land uses or planned uses for which permits have been granted)? As stated above in item (a), the project would slightly decrease impervious surface area, which would not substantially change the area available for groundwater recharge. The project would not rely on groundwater for its water. Therefore, the project would have no impact on groundwater supplies or groundwater recharge. c) Would the project substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off-site? d) Would the project substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? The project site is completely developed and there are no streams or rivers located on or adjacent to the project site that would be altered during project construction. The project proposes to slightly reduce the square footage of impervious surface area to the project site. The project would not substantially alter the existing drainage pattern of the site. This incremental change in impervious surface area would not substantially alter the rate or amount of runoff resulting in flooding on- or off-site or increase erosion or siltation on- or off-site. The project would have a less than significant impact related to alteration of the existing drainage pattern, increases in surface runoff, and potential to contribute to flooding. e) Would the project create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? The proposed project would slightly decrease impervious surface area and increase open space on the project site. This minor decrease in impervious surface area would allow for a slight decrease in the rate and volume of stormwater runoff from the site. The project would have no impact related to exceeding the capacity of the existing stormwater drainage system. Castilleja School Initial Study 10056 26 January 2017 g) Would the project place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Would the project place within a 100-year flood hazard area structures which would impede or redirect flood flows? The project does not propose to construct housing and is not located within a 100-year flood hazard zone (FEMA 2014). There would be no impact related to placing housing within a 100-year flood hazard area. The project site is not located within a 100-year flood hazard area in the map in Section 18.4.2.2.7 in the Santa Clara County Hazard Mitigation Plan (Santa Clara County, 2012). The project is not located within a 100-year flood hazard area and would have no impact related to placing structures within a 100-year flood hazard area that would impede or redirect flood flows. i) Would the project expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? The project site is not located near a levee or dam and is not within an area identified as a dam failure inundation area on the map in Section 18.4.2.2.7 in the Santa Clara County Hazard Mitigation Plan (Santa Clara County, 2012). The project site is not subject to flooding and construction of the project would result in no impact associated with exposure of people to flood-related hazards. j) Inundation by seiche, tsunami, or mudflow? The project site is located in Palo Alto on relatively flat ground and is not within close proximity to an open body of water or a hillside; therefore, there is no risk for seiche, tsunami, or mudflow hazards. No impacts related to these hazards would result from implementation of the proposed project. Castilleja School Initial Study 10056 27 January 2017 3.10 Land Use and Planning Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact X. LAND USE AND PLANNING – Would the project: a) Physically divide an established community? b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community conservation plan? a) Would the project physically divide an established community? b) Would the project conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? Figure 4 identifies the Comprehensive Plan land use designations and zoning designations for the project site and surrounding properties. The proposed project has the potential to have significant impacts related to compatibility with neighboring land uses and thus land use impacts will be analyzed in the project EIR. c) Would the project conflict with any applicable habitat conservation plan or natural community conservation plan? There are no adopted Habitat Conservation Plans or Natural Community Conservation Plans within the City of Palo Alto. Therefore, the project would have no impact related to conflict with the provisions of such plans. Mitigation Measures No mitigation measures are necessary. Castilleja School Initial Study 10056 28 January 2017 3.11 Mineral Resources Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XI. MINERAL RESOURCES – Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of a locally-important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan? a)Would the project result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b) Would the project result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan? The project site is designated Single Family Residential by the Palo Alto General Plan and has been used as the site for the Castilleja girls’ school since 1910. There are no known mineral resources within the project site and no mineral recovery activities have been known to occur on site. The proposed modifications to the existing facilities on the project site would not adversely affect any mineral resources of value to the state or region. The project would have no impact related to mineral resources. Mitigation Measures No mitigation measures are necessary. 3.12 Noise Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XII. NOISE – Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? Castilleja School Initial Study 10056 29 January 2017 Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XII. NOISE – Would the project result in: c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? a) Would the project result in exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b) Would the project result in exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? c) Would the project result in a substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d) Would the project result in a substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? The proposed project has the potential to have significant noise impacts and thus noise impacts will be analyzed in the project EIR. e) Would the project be located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) Would the project be within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? Castilleja School Initial Study 10056 30 January 2017 The proposed project is not located within an airport land use plan or within two miles of a public or private airport/airstrip, other than the emergency helipad at the Stanford Medical building approximately 1.33 miles from the project site. The proposed modifications to the existing facility at the project site would result in no impacts associated with exposure to noise from airports and airstrips. 3.13 Population and Housing Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XIII. POPULATION AND HOUSING – Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? a) Would the project induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? The proposed project would increase the school’s student capacity and is expected to require a slight increase in school staff. However, the project would not construct new housing, would not generate a substantial number of new jobs, and would not extend new roads or infrastructure to the site or any adjacent undeveloped or underdeveloped areas. Thus, the project would be unable to encourage further growth, neither directly nor indirectly. Thus, the project would have no impact. b) Would the project displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? c) Would the project displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? The proposed project does not involve the demolition of housing and thus will not displace people or housing. Thus, the project will have no impact. Castilleja School Initial Study 10056 31 January 2017 3.14 Public Services Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XIV. PUBLIC SERVICES a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times, or other performance objectives for any of the public services: Fire protection? Police protection? Schools? Parks? Other public facilities? a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times, or other performance objectives for any of the public services: Fire protection? Police protection? The project site currently operates as a private school and receives services from the City Fire and Police Departments. The project would add approximately 26,700 square feet to the project site and increase enrollment by 102 students but would not cause a substantial increase in the population that would demand additional service. The project would have a less than significant impact on the provision of fire protection and police services. Schools? The project would expand an existing school but would not generate a new population that would increase the demand for local schools; in fact, the proposed expansion of the school would allow for an increase in enrollment at the campus of 102 new students. Therefore, the project would have no impact on other schools in the area. Parks? The project would not generate a new population that would increase the demand for local parks. Expanding the school would allow the facility to increase enrollment by 102 students. This would not cause a substantial increase in the population that would require parks. Furthermore, the school provides its own range of recreational and open space Castilleja School Initial Study 10056 32 January 2017 services for its students. The City’s standard conditions of approval require fees to address any increased need for parks. Payment of the development fees for parks would ensure that the project’s impact is less than significant. Other public facilities? The project would not generate a new population that would increase the demand for other public facilities. The City’s standard conditions of approval require fees to address any increased need for community facilities. Payment of development fees for community facilities and libraries would ensure that the project’s impact on these services is less than significant. 3.15 Recreation Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XV. RECREATION a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of recreational facilities, which might have an adverse physical effect on the environment? The proposed project includes its own recreation areas to support the students living and attending the school. The reconfiguration of the campus and recreational facilities is included in the proposed project and the environmental impacts associated with this reconfiguration are discussed in the corresponding sections of this Initial Study and will be addressed in the individual chapters of the project EIR. As the school would provide its own recreation areas, there would be no impact on existing neighborhood and regional parks. Castilleja School Initial Study 10056 33 January 2017 3.16 Transportation and Traffic Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XVI. TRANSPORTATION/TRAFFIC – Would the project: a) Conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of the circulation system, taking into account all modes of transportation including mass transit and non-motorized travel and relevant components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? b) Conflict with an applicable congestion management program, including, but not limited to level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e) Result in inadequate emergency access? f) Conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian facilities, or otherwise decrease the performance or safety of such facilities? a) Would the project conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of the circulation system, taking into account all modes of transportation including mass transit and non-motorized travel and relevant components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? b) Would the project conflict with an applicable congestion management program, including, but not limited to level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? Castilleja School Initial Study 10056 34 January 2017 c) Would the project result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Would the project substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e) Would the project result in inadequate emergency access? f) Would the project conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian facilities, or otherwise decrease the performance or safety of such facilities? The proposed project has the potential to have significant impacts and thus Traffic and Transportation impacts will be analyzed in the project EIR. 3.17 Tribal Cultural Resources Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XVII. TRIBAL CULTURAL RESOURCES a) Would the project cause a substantial adverse change in the significance of a tribal cultural resource, defined in Public Resources Code section 21074 as either a site, feature, place, cultural landscape that is geographically defined in terms of the size and scope of the landscape, sacred place, or object with cultural value to a California Native American tribe, and that is: a) Listed or eligible for listing in the California Register of Historical Resources, or in a local register of historical resources as defined in Public Resources Code section 5020.1(k), or b) A resource determined by the lead agency, in its discretion and supported by substantial pursuant to criteria set forth in subdivision (c) of public resources Code Section 5024.1. In applying the criteria set forth in subdivision (c) of Public Resources Code Section 5024.1, the lead agency shall consider the significance of the resource to a California Native American tribe. Castilleja School Initial Study 10056 35 January 2017 a) Would the project cause a substantial adverse change in the significance of a tribal cultural resource, defined in Public Resources Code section 21074 as either a site, feature, place, cultural landscape that is geographically defined in terms of the size and scope of the landscape, sacred place, or object with cultural value to a California Native American tribe, and that is: a) Listed or eligible for listing in the California Register of Historical Resources, or in a local register of historical resources as defined in Public Resources Code section 5020.1(k), or b) A resources determined by the lead agency, in its discretion and supported by substantial pursuant to criteria set forth in subdivision (c) of public resources Code Section 5024.1. In applying the criteria set forth in subdivision (c) of Public Resources Code Section 5024.1, the lead agency shall consider the significance of the resource to a California Native American tribe. Although no Native American tribes that are traditionally and culturally affiliated with the project area have requested notification from the City of Palo Alto regarding proposed projects, analysis of the potential for the project to have significant impacts to Tribal Cultural Resources will be analyzed in the project EIR. 3.18 Utilities and Service Systems Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XVIII. UTILITIES AND SERVICE SYSTEMS – Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? Castilleja School Initial Study 10056 36 January 2017 Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XVIII. UTILITIES AND SERVICE SYSTEMS – Would the project: e) Result in a determination by the wastewater treatment provider, which serves or may serve the project that it has adequate capacity to serve the project’s projected demand in addition to the provider’s existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project’s solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid waste? a) Would the project exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b) Would the project require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? e) Would the project result in a determination by the wastewater treatment provider, which serves or may serve the project that it has adequate capacity to serve the project’s projected demand in addition to the provider’s existing commitments? Wastewater from the project site is treated at the Regional Water Quality Control Plant owned and operated by the City. The Regional Water Quality Control Plant is permitted under NPDES permit No. CA0037834. Wastewater flows on the project site are treated at the Regional Water Quality Control Plant in accordance with the NPDES permit. The project would expand the existing school, allowing for enrollment of an additional 102 students. The project would also replace four existing buildings with one new structure. The new building would include water-efficient toilets and faucets to help reduce on-site water consumption and wastewater generation. The expanded school would connect to existing wastewater infrastructure and all flows would be directed to the Regional Water Treatment Plant. The project applicant would be required to submit calculations prepared by a registered engineer to show that the on-site and off-site sewer systems are capable of serving the needs of the development and adjacent properties, prior to issuance of building permits. This would ensure that sufficient wastewater infrastructure and capacity exists to serve the projected demand and this impact would be less than significant. Castilleja School Initial Study 10056 37 January 2017 c) Would the project require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? The expansion of the existing school would not require additional stormwater infrastructure. The project would decrease impervious surface area on the project site by 0.06 percent, which would result in a slight reduction in the rate and volume of stormwater runoff. The project would not require construction or expansion of existing facilities. The project would be adequately served by existing infrastructure and the impact would be less than significant. d) Would the project have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? Expanding the existing school would slightly increase water demand at the project site. The project would replace older fixtures with newer water efficient fixtures, which would reduce the project’s water demand. Additionally, standard conditions of approval require the applicant to submit calculations by a registered civil engineer to show that the on-site and off-site water systems are capable of serving the needs of the development and adjacent properties during peak flow demands. This would ensure that sufficient water supply is available to serve the project site and the impact would be less than significant. f) Would the project be served by a landfill with sufficient permitted capacity to accommodate the project’s solid waste disposal needs? The expansion of the existing school would not generate an additional population that would generate additional solid waste. Waste generated in the City is sent to the Sunnyvale Material Recovery Transfer station and ultimately the Kirby Canyon Landfill (Permit 43-AN-0008). The Kirby Canyon Landfill can accept 2,600 tons per day and has a remaining capacity of 16,191,600 cubic yards (CalRecycle 2015). The project’s current solid waste generation is adequately served by the landfill and the project’s solid waste generation is not expected to change substantially as a result of the proposed project. Therefore, the project would have a less-than-significant impact. g) Would the project comply with federal, state, and local statutes and regulations related to solid waste? The project would be required to comply with the green building requirements set forth in the Green Building programs required by the State of California and the City of Palo Alto. The project is proposed to attain a LEED Silver certification. This would ensure that water conservation and solid waste reduction measures are included in the project Castilleja School Initial Study 10056 38 January 2017 and that the project meets all local, state and federal regulations related to solid waste. Therefore, impacts would be less than significant. 3.19 Mandatory Findings of Significance Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact XIX. MANDATORY FINDINGS OF SIGNIFICANCE a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited, but cumulatively considerable? (“Cumulatively considerable” means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal, or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited, but cumulatively considerable? (“Cumulatively considerable” means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? The proposed project has the potential to have significant impacts as identified throughout this Initial Study. These potentially significant impacts will be analyzed in Castilleja School Initial Study 10056 39 January 2017 the project EIR. Cumulative impacts will be discussed within the appropriate chapters; all impact discussions will include both direct and indirect effects. Castilleja School Initial Study 10056 40 January 2017 4 REFERENCES AND PREPARERS 4.1 References Cited 14 CCR 15000–15387 and Appendices A through L. Guidelines for Implementation of the California Environmental Quality Act, as amended. BAAQMD (Bay Area Air Quality Management District). 2006. Bay Area 2005 Ozone Strategy. Vol. 1. Final. Adopted January 4, 2006. Accessed January 2016. http://www.baaqmd.gov/~/media/ Files/Planning%20and%20Research/Plans/2005%20Ozone%20Strategy/ adoptedfinal_vol1.ashx. BAAQMD. 2010. Bay Area 2010 Clean Air Plan. September 15, 2010. Accessed January 2016. http://www.baaqmd.gov/~/media/files/planning-and-research/plans/2010-clean-air-plan/ cap-volume-i-appendices.pdf?la=en. BAAQMD. 2011. California Environmental Quality Act Air Quality Guidelines. May 2011. CDC (California Department of Conservation). 2014. “Santa Clara County Important Farmland Map 2012” [map]. 1:100,000. California Department of Conservation, Division of Land Resource Protection, Farmland Mapping and Monitoring Program. June 2013. Accessed December 2016. ftp://ftp.consrv.ca.gov/pub/dlrp/FMMP/pdf/2012/scl12.pdf. California Public Resources Code, Section 21000–21177. California Environmental Quality Act, as amended. California Public Resources Code, Sections 42160–42185. Metallic Discards Act of 1991. CalRecycle 2017. Solid Waste Facility Listing: Kirby Canyon Recycle and Disposal Facility. http://www.calrecycle.ca.gov/SWFacilities/Directory/43-AN-0008/Detail/ Accessed January 2017. City of Palo Alto 2011. Comprehensive Plan Land Use Designation Map updated 3/11/2011 DTSC, 2017. EnviroStor database. http://www.envirostor.dtsc.ca.gov/public/ Accessed January 2017. FEMA (Federal Emergency Management Agency). 2014. “National Flood Hazard Layer kmz files” [Google Earth data]. April 2014. Santa Clara County, 2012. Santa Clara County Hazard Mitigation Plan. Castilleja School Initial Study 10056 41 January 2017 4.2 List of Preparers DUDEK 853 Lincoln Way, Suite 208 Auburn, California 95603 Katherine Waugh, AICP, Senior Project Manager Kimberly Asbury, Environmental Analyst Castilleja School Initial Study 10056 42 January 2017 INTENTIONALLY LEFT BLANK Milpitas SanJose MountainView PaloAlto Gilroy Campbell LosBanos Atwater Turlock Modesto Salida Oakdale Ceres SanRamon BlackhawkDanville MoragaTown Alamo DiscoveryBayOrinda Lafayette WalnutCreek Clayton Brentwood PleasantHill OakleyConcord Carmel ValleyVillage DelMonteForestMontereySeaside Marina PrunedaleElkhorn Salinas Hollister AptosHills-LarkinValley Interlaken SantaCruz SoquelAptos Corralitos Felton DayValley ScottsValley BenLomond BoulderCreek MorganHill LexingtonHills SanJose LosGatos Saratoga Cupertino LosAltosHills LosAltos SantaClaraSunnyvale PortolaValley Woodside Atherton SanCarlosHalfMoonBay MenloPark BelmontEl Granada RedwoodCity Montara Hillsborough SanMateo FosterCity Burlingame San Bruno Pacifica South SanFrancisco SanFrancisco NewarkFremont Union City Hayward PleasantonFairview Livermore DublinSanLeandroCastroValley Alameda Oakland Berkeley Antioch VineHill Richmond BethelIslandMartinezPittsburg WestPittsburg Pinole Rodeo Hercules Manteca Linden Stockton Lodi Lockeford Tracy Lathrop Mill Valley SanRafael Lagunitas-ForestKnolls Lucas Valley-Marinwood Inverness Novato Benicia Vallejo Santa C r u z County Santa Clara County Merce d C o u n t y San MateoCounty San Francisco County MarinCounty Co n t r a C o s t a Co u n t y St a n i s l a u s C o u n t y Contra Costa C o u n t y Sacramento County Fresn o C o u n t y Mo Sa n Be San B e n i t o C o u n t y Merc e d C o u n t y as C o u n t y Cal a v e r a s C o u n t y Merced C o u n t y Me r c e d C o u n t y Montere y County San Benito County Santa C l a r a C o u n t y S a n t a C l a r a C o u n t y Santa C r u z C o u n t y Santa Clara County Stanislau s C o u n t y Sta St a n i s l a u s C o u n t y aq u i n C o u n t y San J o a q u i n C o u n t y Sa n J o a q u i n C o u n t y Stanis l a u s C o u n t y Santa CruzCounty San Mateo County Alameda Coun t y Alameda County Ala m e d a C o u n t y Sa n J o a q u i n C o u n t y Pacific Ocean 35 165 219 49 183 185 237 160 129 88 108 9 99 68 130 156 12 84 92 26 120 140 33 25 152 4 132 1 101 880 280 205 238 5 680 580 Regional Map FIGURE 1 Castilleja School Conditional Use Permit and Master Plan Initial Study Da t e : 1 / 1 7 / 2 0 1 7 - L a s t s a v e d b y : t f r i e s e n - P a t h : Z : \ P r o j e c t s \ j 1 0 0 5 6 0 1 \ M A P D O C \ D O C U M E N T \ I S \ F i g u r e _ 1 _ R e g i o n a l . m x d Project Site 02010Miles Castilleja School Initial Study 10056 44 January 2017 INTENTIONALLY LEFT BLANK 82 101 Vicinity Map Figure 2 Castilleja School Conditional Use Permit and Master Plan Initial Study SOURCE: ESRI 2015 Da t e : 1 / 1 7 / 2 0 1 7 - L a s t s a v e d b y : t f r i e s e n - P a t h : Z : \ P r o j e c t s \ j 1 0 0 5 6 0 1 \ M A P D O C \ D O C U M E N T \ I S \ F i g u r e _ 2 _ V i c i n i t y . m x d 0 2,0001,000 Feet Project Site Castilleja School Initial Study 10056 46 January 2017 INTENTIONALLY LEFT BLANK Aerial Map Castilleja School Conditional Use Permit and Master Plan Initial Study SOURCE: Bing Maps 2015 Da t e : 1 / 1 7 / 2 0 1 7 - L a s t s a v e d b y : t f r i e s e n - P a t h : Z : \ P r o j e c t s \ j 1 0 0 5 6 0 1 \ M A P D O C \ D O C U M E N T \ I S \ F i g u r e _ 3 _ A e r i a l M a p . m x d 0 200100Feet Project Site Boundary Figure 3 Castilleja School Initial Study 10056 48 January 2017 INTENTIONALLY LEFT BLANK R-1 R-1 RM-15 RM-15 R-2 R-2 R-2 R-2 R-2 R-1 R-1 (10000) PF PF R-1 CD-S(P) AMF DHS RT-35 R-2 CC HI G H S T CHA N N I N G A V E W A V E R L E Y S T TEN N Y S O N A V E EMBARC A D E R O R D CHU R C H I L L A V E AL M A S T B R Y A N T S T E M E R S O N S T MEL V I L L E A V E LIN C O L N A V E KING S L E Y A V E C O W P E R S T R A M O N A S T W E B S T E R S T LA N E A TA S S O S T COL E R I D G E A V E LA N E 5 9 LA N E D LA N E B U N N A M E D S T R E E T LOW E L L A V E KEL L O G G A V E WHIT M A N C T B Y R O N S T Land Use and Zoning Designations Castilleja School Conditional Use Permit and Master Plan Initial Study SOURCE: City of Palo Alto Da t e : 1 / 2 0 / 2 0 1 7 - L a s t s a v e d b y : t f r i e s e n - P a t h : Z : \ P r o j e c t s \ j 1 0 0 5 6 0 1 \ M A P D O C \ D O C U M E N T \ I S \ F i g u r e _ 4 _ C o m p r e h e n s i v e _ P l a n _ Z o n i n g.m x d 0 410205Feet Project Site Boundary Zoning Designations Land Use Designations Single Family Residential Village Residential Mixed Use/Coordinated Area Plan (CAP) Regional/Community Commercial Major Institution/Special Facility School District Lands Public Park Figure 4 Castilleja School Initial Study 10056 50 January 2017 INTENTIONALLY LEFT BLANK 1 City of Palo Alto Development of Planning and Community Environment California Environmental Quality Act REVISED NOTICE OF PREPARATION This Notice of Preparation has been revised to extend the public comment period from April 15, 2017 to May 12, 2017 and to clarify that the project has been determined to have potential environmental impacts in the resource area of aesthetics. No changes in the proposed project have been made. TO: Responsible and Trustee Agencies, Organizations, and Interested Parties FROM: City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 Contact: Amy French, Chief Planning Official SUBJECT: Notice of Preparation of a Draft Environmental Impact Report (EIR) for the Castilleja School Conditional Use Permit Amendment, Master Plan, Parcel Map with Exception and a Variance to allow the pedestrian access and vehicle ramp into the subterranean garage to encroach into the Embarcadero Road special setback and the Emerson Street side setback, and some subterranean parking to encroach into the Embarcadero Road and side setbacks. AGENCIES: The City of Palo Alto requests that public agencies provide comments regarding the scope and content of the EIR as it relates to an agency’s statutory responsibilities in connection with the proposed project in accordance with California Code of Regulations, Title 14, Section 15082(b). ORGANIZATIONS AND INTERESTED PARTIES: The City of Palo Alto requests comments and concerns from organizations and interested parties regarding the environmental effects associated with construction and operation of the proposed project. PROJECT TITLE: Castilleja School PROJECT LOCATION: 1310 Bryant Street and 1235 and 1263 Emerson Street, Palo Alto, CA 94301. Project site is 286,783 sf comprised of three parcels: (1) APN 124-12-034 (1310 Bryant, school site), (2) APN 124-12-031 (1235 Emerson, “Emerson House” aka ‘Lockey/Alumnae Notice of Preparation of an EIR Castilleja School Conditional Use Permit and Master Plan 2 House’, 75’ on Emerson St), and (3) APN 124-12-033 (1263 Emerson, “Head’s House’, 105’ on Emerson St). PROJECT DESCRIPTION: Castilleja School is an all-girls private school in Palo Alto that has been operating since 1907. Currently, the school serves grades 6 through 12. The school’s facilities include an administrative building, a maintenance facility, a chapel theater, classrooms, a gymnasium, pool, above ground parking areas, athletic fields, and a dining hall. The project proposal is to demolish two homes on adjacent Castilleja-owned parcels (at 1235 and 1263 Bryant) and merge the two parcels into the Castilleja campus parcel via Parcel Map with Exception, and demolish four existing buildings and replace them with a single building. The applicant seeks to expand enrollment and redevelop the existing campus in three construction phases: 1. Construct a below-grade parking structure under the merged parcels to accommodate 130 vehicles, re-route drop-off and pick-up through the garage, and increase enrollment to a maximum of 490 students; 2. Relocate the existing pool, complete bikeway station on Bryant Street Bicycle Boulevard, and increase enrollment to a maximum of 520 students; and 3. Relocate deliveries and waste pick-ups further from the street and below grade, reduce number of food service deliveries by 10%, implement sustainability plan, and increase enrollment to a maximum of 540 students. In order to accomplish the proposed project, Castilleja School Foundation has submitted an application to amend the school’s existing Conditional Use Permit and an Architectural Review application. Including future phase construction of a new campus building, the project would result in an increase in the total building square footage within the campus by 26,700 square feet, all of which would be below grade - above grade the square footage would remain the same. The applicant also proposes to increase the number of off-street parking spaces from 73 to 170. Of these, 130 would be below ground and 40 of which would be in surface parking lots. This would reduce the number of above ground spaces by 33 spaces. The amount of open space would also increase by 6,182 square feet. Finally, the project includes a Transportation Demand Management Plan to offset transportation impacts and a proposal for no net new automobile trips, as well as a Sustainability Program. Additional project details and figures are provided in the Initial Study, which is available for review at the City of Palo Alto website for this project: http://www.cityofpaloalto.org/gov/topics/castilleja_school.asp POTENTIAL ENVIRONMENTAL EFFECTS: As documented in the Initial Study, the following areas of potentially significant environmental impact will be analyzed in the Draft EIR: Aesthetics, Air Quality (project construction only), Biological Resources (trees and Notice of Preparation of an EIR Castilleja School Conditional Use Permit and Master Plan 3 migratory birds), Cultural Resources, Geology and Soils, Greenhouse Gas Emissions, Land Use and Planning, Noise, Traffic, and Tribal Cultural Resources. Potential cumulative impacts and potential for growth inducement will be addressed; alternatives, including the No Project Alternative, will be evaluated. SCOPING MEETING: The City of Palo Alto held a scoping meeting as part of the Planning and Transportation Commission’s regularly scheduled meeting on March 8, 2017 at the City of Palo Alto Council Chambers, located in City Hall at 250 E. Hamilton Avenue. The meeting agenda, staff report and video of the meeting are posted to the City’s website: http://www.cityofpaloalto.org/gov/boards/ptc/default.asp. Interested parties attended and presented concerns. This NOP and Initial Study as well as future CEQA documents for this project will be available for review at the City’s website for this project: http://www.cityofpaloalto.org/gov/topics/castilleja_school.asp If you require additional project information, please contact Amy French, Chief Planning Official, at amy.french@cityofpaloalto.org PUBLIC REVIEW PERIOD: This NOP is available for public review and comment pursuant to California Code of Regulations, Title 14, Section 15082(b), for 30 days. The comment period for the NOP began January 23, 2017 and ends on May 12, 2017. The City has thrice extended the public comment period beyond the 30-days mandated by state law. RESPONSES AND COMMENTS: Please indicate a contact person for your agency and send your responses and comments to: Amy French, Chief Planning Official City of Palo Alto PCE Department 250 Hamilton Avenue Palo Alto, California 94301 (650) 329-2336 amy.french@cityofpaloalto.org 1  City of Palo Alto Development of Planning and Community Environment California Environmental Quality Act REVISED NOTICE OF PREPARATION This Notice of Preparation has been revised to extend the public comment period and to clarify that the project has been determined to have potential environmental impacts in the resource area of aesthetics. No changes in the proposed project have been made. TO: Responsible and Trustee Agencies, Organizations, and Interested Parties FROM: City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 Contact: Amy French, Chief Planning Official SUBJECT: Notice of Preparation of a Draft Environmental Impact Report (EIR) for the Castilleja School Conditional Use Permit Amendment, Master Plan, Parcel Map with Exception and a Variance to allow the pedestrian access and vehicle ramp into the subterranean garage to encroach into the Embarcadero Road special setback and the Emerson Street side setback, and some subterranean parking to encroach into the Embarcadero Road and side setbacks. AGENCIES: The City of Palo Alto requests that public agencies provide comments regarding the scope and content of the EIR as it relates to an agency’s statutory responsibilities in connection with the proposed project in accordance with California Code of Regulations, Title 14, Section 15082(b). ORGANIZATIONS AND INTERESTED PARTIES: The City of Palo Alto requests comments and concerns from organizations and interested parties regarding the environmental effects associated with construction and operation of the proposed project. PROJECT TITLE: Castilleja School PROJECT LOCATION: 1310 Bryant Street and 1235 and 1263 Emerson Street, Palo Alto, CA 94301. Project site is 286,783 sf comprised of three parcels: (1) APN 124-12-034 (1310 Bryant, school site), (2) APN 124-12-031 (1235 Emerson, “Emerson House” aka ‘Lockey/Alumnae House’, 75’ on Emerson St), and (3) APN 124-12-033 (1263 Emerson, “Head’s House’, 105’ on Emerson St). Notice of Preparation of an EIR  Castilleja School Conditional Use Permit and Master Plan  2 PROJECT DESCRIPTION: Castilleja School is an all-girls private school in Palo Alto that has been operating since 1907. Currently, the school serves grades 6 through 12. The school’s facilities include an administrative building, a maintenance facility, a chapel theater, classrooms, a gymnasium, pool, above ground parking areas, athletic fields, and a dining hall. The project proposal is to demolish two homes on adjacent Castilleja-owned parcels (at 1235 and 1263 Bryant) and merge the two parcels into the Castilleja campus parcel via Parcel Map with Exception, and demolish four existing buildings and replace them with a single building. The applicant seeks to expand enrollment and redevelop the existing campus in three construction phases: 1. Construct a below-grade parking structure under the merged parcels to accommodate 130 vehicles, re-route drop-off and pick-up through the garage, and increase enrollment to a maximum of 490 students; 2. Relocate the existing pool, complete bikeway station on Bryant Street Bicycle Boulevard, and increase enrollment to a maximum of 520 students; and 3. Relocate deliveries and waste pick-ups further from the street and below grade, reduce number of food service deliveries by 10%, implement sustainability plan, and increase enrollment to a maximum of 540 students. In order to accomplish the proposed project, Castilleja School Foundation has submitted an application to amend the school’s existing Conditional Use Permit and an Architectural Review application. Including future phase construction of a new campus building, the project would result in an increase in the total building square footage within the campus by 26,700 square feet, all of which would be below grade - above grade the square footage would remain the same. The applicant also proposes to increase the number of off-street parking spaces from 73 to 170. Of these, 130 would be below ground and 40 of which would be in surface parking lots. This would reduce the number of above ground spaces by 33 spaces. The amount of open space would also increase by 6,182 square feet. Finally, the project includes a Transportation Demand Management Plan to offset transportation impacts and a proposal for no net new automobile trips, as well as a Sustainability Program. Additional project details and figures are provided in the Initial Study, which is available for review at the City of Palo Alto website for this project: http://www.cityofpaloalto.org/gov/topics/castilleja_school.asp POTENTIAL ENVIRONMENTAL EFFECTS: As documented in the Initial Study, the following areas of potentially significant environmental impact will be analyzed in the Draft EIR: Aesthetics, Air Quality (project construction only), Biological Resources (trees and migratory birds), Cultural Resources, Geology and Soils, Greenhouse Gas Emissions, Land Use and Planning, Noise, Traffic, and Tribal Cultural Resources. Potential cumulative impacts and Notice of Preparation of an EIR  Castilleja School Conditional Use Permit and Master Plan  3 potential for growth inducement will be addressed; alternatives, including the No Project Alternative, will be evaluated. SCOPING MEETING: The City of Palo Alto held a scoping meeting as part of the Planning and Transportation Commission’s regularly scheduled meeting on February 8, 2017 at the City of Palo Alto Council Chambers, located in City Hall at 250 E. Hamilton Avenue. The meeting agenda, staff report and video of the meeting are posted to the City’s website:   http://www.cityofpaloalto.org/gov/boards/ptc/default.asp. Interested parties attended and presented concerns. This NOP and Initial Study as well as future CEQA documents for this project will be available for review at the City’s website for this project: http://www.cityofpaloalto.org/gov/topics/castilleja_school.asp If you require additional project information, please contact Amy French, Chief Planning Official, at amy.french@cityofpaloalto.org PUBLIC REVIEW PERIOD: This NOP is available for public review and comment pursuant to California Code of Regulations, Title 14, Section 15082(b), for 30 days. The comment period for the NOP began January 23, 2017 and ends on April 15, 2017. The City has twice extended the public comment period beyond the 30-days mandated by state law. RESPONSES AND COMMENTS: Please indicate a contact person for your agency and send your responses and comments to: Amy French, Chief Planning Official City of Palo Alto PCE Department 250 Hamilton Avenue Palo Alto, California 94301 (650) 329-2336 amy.french@cityofpaloalto.org 1  City of Palo Alto Development of Planning and Community Environment California Environmental Quality Act REVISED NOTICE OF PREPARATION This Notice of Preparation has been revised to extend the public comment period and to clarify that the project has been determined to have potential environmental impacts in the resource area of aesthetics. No changes in the proposed project have been made. TO: Responsible and Trustee Agencies, Organizations, and Interested Parties FROM: City of Palo Alto 250 Hamilton Avenue Palo Alto, California 94301 Contact: Amy French, Chief Planning Official SUBJECT: Notice of Preparation of a Draft Environmental Impact Report (EIR) for the Castilleja School Conditional Use Permit Amendment, Master Plan, Parcel Map with Exception and a Variance to allow the pedestrian access and vehicle ramp into the subterranean garage to encroach into the Embarcadero Road special setback and the Emerson Street side setback, and some subterranean parking to encroach into the Embarcadero Road and side setbacks. AGENCIES: The City of Palo Alto requests that public agencies provide comments regarding the scope and content of the EIR as it relates to an agency’s statutory responsibilities in connection with the proposed project in accordance with California Code of Regulations, Title 14, Section 15082(b). ORGANIZATIONS AND INTERESTED PARTIES: The City of Palo Alto requests comments and concerns from organizations and interested parties regarding the environmental effects associated with construction and operation of the proposed project. PROJECT TITLE: Castilleja School PROJECT LOCATION: 1310 Bryant Street and 1235 and 1263 Emerson Street, Palo Alto, CA 94301. Project site is 286,783 sf comprised of three parcels: (1) APN 124-12-034 (1310 Bryant, school site), (2) APN 124-12-031 (1235 Emerson, “Emerson House” aka ‘Lockey/Alumnae House’, 75’ on Emerson St), and (3) APN 124-12-033 (1263 Emerson, “Head’s House’, 105’ on Emerson St). Notice of Preparation of an EIR  Castilleja School Conditional Use Permit and Master Plan  2 PROJECT DESCRIPTION: Castilleja School is an all-girls private school in Palo Alto that has been operating since 1907. Currently, the school serves grades 6 through 12. The school’s facilities include an administrative building, a maintenance facility, a chapel theater, classrooms, a gymnasium, pool, above ground parking areas, athletic fields, and a dining hall. The project proposal is to demolish two homes on adjacent Castilleja-owned parcels (at 1235 and 1263 Bryant) and merge the two parcels into the Castilleja campus parcel via Parcel Map with Exception, and demolish four existing buildings and replace them with a single building. The applicant seeks to expand enrollment and redevelop the existing campus in three construction phases: 1. Construct a below-grade parking structure under the merged parcels to accommodate 130 vehicles, re-route drop-off and pick-up through the garage, and increase enrollment to a maximum of 490 students; 2. Relocate the existing pool, complete bikeway station on Bryant Street Bicycle Boulevard, and increase enrollment to a maximum of 520 students; and 3. Relocate deliveries and waste pick-ups further from the street and below grade, reduce number of food service deliveries by 10%, implement sustainability plan, and increase enrollment to a maximum of 540 students. In order to accomplish the proposed project, Castilleja School Foundation has submitted an application to amend the school’s existing Conditional Use Permit and an Architectural Review application. Including future phase construction of a new campus building, the project would result in an increase in the total building square footage within the campus by 26,700 square feet, all of which would be below grade - above grade the square footage would remain the same. The applicant also proposes to increase the number of off-street parking spaces from 73 to 170. Of these, 130 would be below ground and 40 of which would be in surface parking lots. This would reduce the number of above ground spaces by 33 spaces. The amount of open space would also increase by 6,182 square feet. Finally, the project includes a Transportation Demand Management Plan to offset transportation impacts and a proposal for no net new automobile trips, as well as a Sustainability Program. Additional project details and figures are provided in the Initial Study, which is available for review at the City of Palo Alto website for this project: http://www.cityofpaloalto.org/gov/topics/castilleja_school.asp POTENTIAL ENVIRONMENTAL EFFECTS: As documented in the Initial Study, the following areas of potentially significant environmental impact will be analyzed in the Draft EIR: Aesthetics, Air Quality (project construction only), Biological Resources (trees and migratory birds), Cultural Resources, Geology and Soils, Greenhouse Gas Emissions, Land Use and Planning, Noise, Traffic, and Tribal Cultural Resources. Potential cumulative impacts and Notice of Preparation of an EIR  Castilleja School Conditional Use Permit and Master Plan  3 potential for growth inducement will be addressed; alternatives, including the No Project Alternative, will be evaluated. SCOPING MEETING: The City of Palo Alto will hold a scoping meeting as part of the Planning and Transportation Commission’s regularly scheduled meeting on February 8, 2017. The meeting will start at 6:00 p.m. and will be held at the City of Palo Alto Council Chambers, located in City Hall at 250 E. Hamilton Avenue. The meeting agenda will be posted to the City’s website:  http://www.cityofpaloalto.org/gov/boards/ptc/default.asp. Interested parties are welcome to attend and present environmental information or concerns that you believe should be addressed in the EIR. This NOP and Initial Study as well as future CEQA documents for this project will be available for review at the City’s website for this project: http://www.cityofpaloalto.org/gov/topics/castilleja_school.asp If you require additional project information, please contact Amy French, Chief Planning Official, at amy.french@cityofpaloalto.org PUBLIC REVIEW PERIOD: This NOP is available for public review and comment pursuant to California Code of Regulations, Title 14, Section 15082(b), for 30 days. The comment period for the NOP begins January 23, 2017 and ends on March 15, 2017. The City has extended the public comment period beyond the 30-days mandated by state law. RESPONSES AND COMMENTS: Please indicate a contact person for your agency and send your responses and comments to: Amy French, Chief Planning Official City of Palo Alto PCE Department 250 Hamilton Avenue Palo Alto, California 94301 (650) 329-2336 amy.french@cityofpaloalto.org Castilleja EIR Scoping Comments Summary Commenter Date 1 Kathryn Verwillow 3/7/2017 2 David Nudell 3/7/2017 3 Theresia Gouw 3/7/2017 4 Terrie McDonald 3/6/2017 5 Meimei Pan 3/6/2017 6 Pat Marriot 3/5/2017 7 Daniel Marshall 3/4/2017 (10:28 p.m.) 8 Daniel Marshall (2) 3/4/2017 (10:20 p.m.) 9 Ana Marshall 3/4/2017 10 Barbara Lindsay 3/4/2017 11 Joe and Diane Rolfe 3/4/2017 12 Kimberley Wong, on behalf of PNQLnow.org 2/6/2017 13 Laurie and Duco Pasmooij 3/2/2017 14 Kitty Price 3/8/2017 15 Jim Poppy (James Poppy) 4/14/2017 16 Jim Poppy (James Poppy) (continued) 4/14/2017 17 James Poppy (2) 5/2/2017 18 James Poppy (3) (email with attachment) 5/1/2017 19 Deborah Goldeen 3/8/2017 20 Bill Burch 3/2/2017 21 Debbie Nichols 3/1/2017 22 Jim Midgal 3/1/2017 23 Matt Apfel 3/2/2017 24 Stan Shore 4/11/2017 25 Stan Shore (continued) 4/11/17 (continued) 26 Stan Shore (2) 4/10/2017 27 Stan Shore (3) 1/26/2017 28 Stan Shore (4) 1/30/2017 29 Doria Summa 3/13/2017 30 Debby Fife 3/11/2017 31 Tom Shannon 1/31/2017 32 Tom Shannon (2) 5/12/2017 33 Diana Lee 5/11/2017 34 Mary Slvester 4/7/2017 35 Neva Yarkin 3/3/2017 36 Hank Sousa (letter to editor ‐ enclosure to Yarkin) not dated 37 Rob Levitsky (newspaper article‐enclosure to  Yarkin) 2/10/2017 38 Mary Slvester (paper article‐ Yarkin) 2/10/2017 39 Neslen Ng (paper article‐Yarkin) 2/10/2017 Dudek Page 1 of 5 06/01/17 Castilleja EIR Scoping Comments Summary Commenter Date 40 Kimberley Wong (paper article‐Yarkin) 2/10/2017 41 PNQL  (paper article‐Yarkin) 2/10/2017 42 Neva Yarkin 3/3/2017; 2/14/17 43 Neva Yarkin 3/4/2017 44 Neva Yarkin 5/3/2017; identical  letter sent 5/4/2017  as well 45 Neva Yarkin 5/10/2017 46 Kerry Yarkin 3/1/2017 47 Lynn Pieron 3/21/2017 48 Nanci Kauffman 3/6/2017 49 Hongmei Lu & Robert Hallewell                                 4/22/2017 50 Bruce McLeod 5/12/2017 51 Bruce McLeod (continued) 52 Al Kendrick 5/11/2017 53 Devon Cohn 4/27/2017 54 Eric Nordman 5/2/2017 55 Megan Barton 4/26/2017 56 Andie Reed 5/3/2017 57 Nelson Ng and Kimberly Wong 5/11/2017 58 Nelson Ng and Kimberly Wong (continued) 5/11/2017 59 Kimberley Wong (email and letter) 5/11/2017 61 Leila H Moncharsh 5/12/2017 62 Carla McLeod 5/15/2017 63 Alan Cooper (2) 5/12/2017 (submitted  comments from march  8 2017) 64 Rob Levitsky 5/9/2017 (3 emails) 65 Rob Levitsky (2) 5/10/2017 66 Rob Levisky (3) 5/10/2017 67 Annie Yamashita 5/12/2017 68 Mary Sylvester 5/12/2017 69 Wallace Whittier 5/12/2017 70 Alan Cooper 5/12/2017 71 Anna Jaklitsch 4/26/2017 72 Leila H. Moncharsh 1/30/2017 73 FORM 74 Duco Pasmooij 3/8/2017 75 Paige McClellan 3/6/2017 76 Karen Hohner 3/8/2017 77 Carloyn H. Way 3/7/2017 Dudek Page 2 of 5 06/01/17 Castilleja EIR Scoping Comments Summary Commenter Date 78 Carole Borie 3/7/2017 79 Bethany Liou not dated 80 Jose Heribeto Rocha 3/7/2017 81 Stephanie and Bob Day not dated 82 Phillip C. Yang 3/7/2017 83 Megan Miller 3/3/2017 84 Liza Fitzgerald 3/7/2017 85 GD Ramkumar 3/6/2017 86 Tom Dickson 3/6/2017 87 Ward Vercruysse 3/6/2017 88 Yuko and Ashmeet Sidana 3/5/2017 89 Caroline and Michael Flexer 3/2/2017 90 Joyce Hanna 3/2/2017 91 Megan and Michael Parker 3/1/2017 92 Jessica Radomiski 3/1/2017 93 Ahmed Elgasseir 3/1/2017 94 Kathy Burch 3/1/2017 95 PTC Scoping Meeting 3‐08‐17 96 Peter Costello 3/8/2017 97 Roy Wang 3/8/2017 98 Carolyn Schmarz 3/8/2017 99 Rita Vrhel 3/8/2017(meeting)  and 4/14/2017  (comment letter)  100 Barbara Hazlett 3/8/2017 101 Lisa VanDusen 3/8/2017 102 Nancy Tuck 3/8/2017 103 Christine Stone 3/8/2017 104 Bruce McCleod 3/8/2017 105 Carolina Abassi 3/8/2017 106 Katie Hanna Dickson 3/8/2017 107 Julia Ishiyama 3/8/2017 108 Lisa Carr 3/8/2017 109 Terrie McDonald 3/8/2017 110 Jeanine Marsten 3/8/2017 111 Gerry Marshall 3/8/2017 112 Martin O'Malley 3/8/2017 113 Kathleen Hughes 3/8/2017 114 Kris Loew 3/8/2017 115 Dan Chapman 3/8/2017 116 Deglin Kenealy 3/8/2017 117 William Powar 3/20/2017 (letter) and  3/8/2017 (meeting) 118 Bill Ross 3/8/2017 Dudek Page 3 of 5 06/01/17 Castilleja EIR Scoping Comments Summary Commenter Date 119 Catherine Garber 3/8/2017 120 Nanci Kauffman 3/8/2017 121 Rob Levitsky 3/8/2017 122 Kimberly Wong 3/8/2017 123 Alan Cooper 3/8/2017 124 Nelson Ng 3/8/2017 125 Carla Befera 3/8/2017 126 Dave Lyons 3/8/2017 127 Tolu Akinoza 3/8/2017 128 Diane Guint 3/8/2017 129 Keith Bennett 3/8/2017 130 Chi Wong 3/8/2017 131 Annie Yamashita 3/8/2017 132 Sarah Cody 3/8/2017 133 Mindi Romanovsky 3/8/2017 134 Lee Price  3/31/2017 (letter) and  3/8/2017 (meeting) 135 Kerry Yarkin 3/8/2017 136 Rob Steinberg 3/8/2017 137 NO GARAGE petition 4/30/2017 138 Kyle D'Souza 4/30/2017 139 Annie Kaufman 4/30/2017 140 Rob Levitsky 4/30/2017 141 Angela Heile 4/30/2017 142 Tareq Aisamman 4/30/2017 143 Kamakshi Duvvuru 4/30/2017 144 Donald Abuy 4/30/2017 145 Red Daly 4/30/2017 146 Nelson Ng 4/30/2017 147 Kimberley Wong 4/30/2017 148 Thomas O'Malley 4/30/2017 149 William Powar 4/30/2017 150 Jeanie Waltuch 4/30/2017 151 Chi Wong 4/30/2017 152 Patricia Wong 4/30/2017 153 Pamela McCroskey 4/30/2017 154 Joseph Rolfe 4/30/2017 155 Diane Rolfe 4/30/2017 156 Carrol Reid 4/30/2017 157 Shinu Singh 4/30/2017 158 Polina Levitan 4/30/2017 159 Steven Levitan 4/30/2017 160 John Myers Jr 4/30/2017 161 yvonne m myers 4/30/2017 162 Erik Jurney 4/30/2017 Dudek Page 4 of 5 06/01/17 Castilleja EIR Scoping Comments Summary Commenter Date 163 Michael Manneh 4/30/2017 164 Yulia Shore 4/30/2017 165 Jared Wilcox 4/30/2017 166 Robert Yamashita 4/30/2017 167 Annie  Yamashita 4/30/2017 168 Lucia Ugarte 4/30/2017 169 Anwar Khan 4/30/2017 170 Michael m Lyzwa Sr 4/30/2017 171 Thomas m Joseph 4/30/2017 172 Kiana Brown 4/30/2017 173 Kelsey Townsend 4/30/2017 174 Phillip b Coulson 4/30/2017 175 Kelley Luyken 4/30/2017 176 Jack Lane 4/30/2017 177 Antonia Fuentes 4/30/2017 178 Denise New (SP?) 4/30/2017 179 Alanna Conguan (sp?) 4/30/2017 180 Ashley Galvez 4/30/2017 181 Al Kendrick (x2) 4/30/2017 182 Josefin Kendrick 4/30/2017 183 Jacqueline Taylor 4/30/2017 184 James Poppy 4/30/2017 185 Mary Sylvester 4/30/2017 186 Elizabeth Olson 4/30/2017 187 William Macy Jr 4/30/2017 188 Arthur Whitney 4/30/2017 189 Hank Sousa 4/30/2017 Dudek Page 5 of 5 06/01/17 ATTACHMENT D: EIR Scoping Comments A hard copy of Attachment D will be provided to City Councilmembers as a stand-alone document. The document is also available on the City’s website at www.cityofpaloalto/castilleja City of Palo Alto (ID # 7952) City Council Staff Report Report Type: Informational Report Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: FY 2016 Utilities Strategic Plan Performance Update Title: City of Palo Alto Utilities Strategic Plan Performance Update for Fiscal Year 2016 From: City Manager Lead Department: Utilities This report is provided for the Council’s information and no action is required. The report was provided to the Utilities Advisory commission at its March 1, 2017 meeting. Executive Summary This update on implementation of the Utilities Strategic Plan covers the 12-month period from July 2015 through June 2016. The Council-approved Utilities Strategic Plan, adopted by Council in 2011 and updated in 2013 and 2015, (Attachment A) uses a Balanced Scorecard concept with four main perspectives (“Four Perspectives”) with strategic objectives to be achieved for each. As the Utilities Department has initiated a new strategic planning effort, this performance report provides a valuable foundation for understanding the activities undertaken and goals established for the current strategic plan. To translate these objectives into plans for action, performance measures were identified for each objective. A summary of the performance measures and status for each of the Four Perspectives is shown below: Internal Business Process Perspective People & Technology Perspective Performance Measure Status Performance Measure Status Interruption Duration Met Employee Satisfaction Met Emergency Response Time Met Certification & Training Met Gas Incident Rate Met Tools & Technologies N/A Gas Safety Awareness Met New Technology Evaluation Met Infrastructure Backlog Not yet met Call Wait Time Met Financial Perspective Billing Adjustments Met Performance Measure Status Emergency Notification Met High Credit Ratings Met Program Participant Satisfaction Met Maintain Reserves Not yet met Competitive Commodity Bids Met Recover Fixed Charges Met City of Palo Alto Page 2 Unaccounted Gas & Water Met Full Value from Redwood Gas Met Customer & Community Perspective Strategic Initiatives Not yet met Performance Measure Status Water Use Reduction per capita Met Service Restoration Not yet met Efficiency Achievement Not yet met System Interruptions Met Satisfaction Not yet met Competitive Bill Met Rate Change Met PAG Gas Participation N/A Greenhouse Gas Reductions N/A The Balanced Scorecard Performance Measures Result (Attachment B) provides a more detailed description of the objectives and performance measures within each of the Four Perspectives. The (+) “plus” or (-) “minus” listed after each measure on the chart in Attachment B is an indicator of the degree to which the measure has been achieved. Where “TBD”, or “to be determined” is noted, it indicates that staff continues to evaluate benchmark goals for a performance measure, which must be done prior to assessing progress towards achieving the performance measure. It should be noted that the Four Perspectives are presented above, and throughout this report, in no particular order. They are not arranged in order of importance and no single item is weighted more heavily than another. BACKGROUND On July 18, 2011, the Council approved the 2011 Utilities Strategic Plan (Staff Report #1880). In implementing the Utilities Strategic Plan, staff regularly reviews the objective measures and initiatives and recommends any appropriate updates on an annual basis. In addition, on a semi- annual basis, staff reports progress on implementation of the plan to the UAC and Council. The Balanced Scorecard tracking methodology was chosen by Staff to assist in performance measurement and to promote better understanding of the City of Palo Alto Utilities’ (CPAU’s) strategic business processes. The performance scorecard will evolve over time and respond to changes in the business climate, with potential new measures added and others modified or completely removed. Utilities managers meet on a regular basis to review the overall Utilities Strategic Plan and evaluate the strategic objectives, performance measures, and targets, and strategic initiatives. From time to time, management will recommend changes to keep the Utilities Strategic Plan aligned with changing environments and priorities. The Council approved changes to the Performance Measures and Strategic Initiatives of the Utilities Strategic Plan in August 2013 (Staff Report #3950) and May 2015 (Staff Report #5709). No additional changes are proposed at this time, in light of the upcoming major update to the Strategic Plan. Given the rapid pace of change, emerging issues and technological advancements within the utility industry in the past several years, Utilities will review and reestablish the department’s City of Palo Alto Page 3 strategic priorities in 2017. Utilities will engage with the UAC, staff and other stakeholders in updating the strategic plan to ensure it aligns with the communities’ sustainability goals and addresses emerging issues for utilities of the future, while ensuring safe and reliable services today. DISCUSSION The Four Perspectives used in the Strategic Plan are:  Customer and Community  People and Technology  Finance  Internal Business Processes Each of the Four Perspectives represents a specific viewpoint and ensures CPAU’s business activities are aligned with the Strategic Plan. The Customer and Community Perspective represents customer satisfaction and delivery of services to stakeholders. People and Technology includes employee training and development as well as keeping pace with technological advancements in the utilities industry. The Finance Perspective focuses on CPAU having a strong financial base and delivering cost-effective services. The Internal Business Processes Perspective covers operational goals and outlines the key processes necessary to deliver services to customers. Each of the Four Perspectives of the Utilities Strategic Plan includes strategic initiatives which are key programs or projects required to achieve one or more objectives and the overall strategic plan. Many of the original strategic initiatives were completed and eight new ones were added when Council approved updates to the Strategic Plan in May 2015, resulting in 13 active initiatives. Strategic initiatives aim to significantly change the way CPAU does business, require significant resources to complete, and have a defined timeline. A summary of performance under each of the Four Perspectives follows. CUSTOMER AND COMMUNITY PERSPECTIVE Four strategic objectives are measured from this perspective: service reliability, customer satisfaction with CPAU’s responsiveness, competitive bills compared to neighboring communities and care for the environment. CPAU has achieved three performance measures, two measures are no longer applicable and measures were not met in these categories. Performance Measures Service reliability performance measures: C1.1 an average restoration time after an outage of 90 minutes or less per interrupted customer C1.2 an average number of 0.9 or fewer interruptions per customer per year City of Palo Alto Page 4 CPAU did not meet the target of less than 90 minutes restoration time. The average time to restore service per interrupted customer for fiscal year 2016 was 165 minutes. There were two extended outages during this period. The first outage affected 209 households near San Antonio Road in October 2015. Since the outage occurred around midnight, it took the crews longer than normal to organize and troubleshoot. It took approximately eight hours to identify and repair the faulty underground cable. Underground utilities are more difficult to inspect, diagnose and repair increasing outage times. The second major outage affected 310 households near Arastradero Road in December 2015. The outage lasted approximately ten hours due to a failed electrical switch which required replacement. CPAU experienced 26 total outages in fiscal year 2016, which is seven more outages experienced in fiscal year 2015 (19 total outages). In addition to specific conditions that may be unique to each outage, aging infrastructure and crew member staffing and retention may continue to present challenges for CPAU to improve its restoration times in the near term. Even though restoration time was longer than anticipated, CPAU’s performance measurement for average interruptions per customer of 0.24 is well below the top quartile of industry standard of 0.9 interruptions per customer. Customer satisfaction performance measure: C2.0 to be rated 85% or higher in overall customer satisfaction In 2016, RKS Research and Consulting conducted a residential electric utility customer satisfaction survey. Even though CPAU fell slightly short of the target of 85% or above in customer satisfaction, the overall results were positive and CPAU have trended upward in customer satisfaction with reliability, cost and concern for the environment compared to other RKS surveys. The average overall satisfaction score for CPAU electric residential customer was 82% which is significantly higher than the statewide municipal average of 71%. CPAU’s image on “concern for the environment” is first rate. This is reinforced by the survey when customers were asked whether they were willing to pay slightly more for carbon offsets, the supporters outnumbered opponents by about 2:1. CPAU also stood out in its customers’ support for having a municipally owned utility. A majority of the customers saw “great benefit” resulting from the City having its own utility. Approximately 75% of the customers also believed they would be worse off in reliability, customer service and cost of electricity if the utility was investor-owned. Customer paying a reasonable bill performance measures: C3.1 residential bill is less than the average bills in neighboring communities C3.2 rate increases are less than 10% (electric, gas, wastewater) and 20% (water) CPAU met both “reasonable bill” performance targets. The total average residential bill including electric, gas, water and wastewater services in Palo Alto was $188.04, which is 8.9% below the average bill of $204.86 in neighboring jurisdictions (i.e. Menlo Park, Mountain View, Santa Clara and Redwood City). CPAU’s bill for electric (<50%), gas (<31%) and wastewater (<48%) are below the average of neighboring cities; however, CPAU’s water bill is 27% higher and represents the largest portion of the total utility bill (40%). City of Palo Alto Page 5 CPAU also met the performance measure of a “less than 10%” rate increase for electric, gas, and wastewater and a “less than 20%” rate increase for water. For FY 2016, CPAU increased rates for water and wastewater services by 12% and 9% respectively. CPAU did not recommend any rate adjustments for electric and gas services. PaloAltoGreen Gas performance measures: C4.1 20% of customer participation C4.2 10% greenhouse gas reductions The PaloAltoGreen Gas (PAGG) program is scheduled to be terminated at the end of FY 2017 in anticipation of the newly adopted Carbon Neutral Gas Plan. Council approved the Carbon Neutral Gas Plan (staff report #7441), enabling the City to achieve a carbon-neutral gas supply portfolio starting in FY 2018 with a rate impact not to exceed ten cents per therm. CPAU is in the process of developing an implementation plan for the Carbon Neutral Gas Plan to eliminate/offset greenhouse gas emissions associated with their natural gas use. Prior to PAGG termination, approximately 900 customers including all City facilities were enrolled in the program. As a result of PAGG, there was a 6% or 9,000 metric tonnes reduction in greenhouse gas emissions in FY 2016. CPAU will eliminate and/or replace these performance measures in the next strategic plan update. Strategic Initiatives Under the Customer and Community perspective there are three strategic initiatives. 1. To establish more mechanisms for eliciting feedback from customers. CPAU conducts annual or bi-annual customer surveys through independent research companies, which allow customers to rate their satisfaction and value of the utility services they receive. Customers are asked to provide written feedback via paper and online surveys after participation in events and workshops. The CPAU website encourages the public to contact CPAU by phone or email at any time to provide feedback or ask questions, and CPAU’s communication with customers via social media channels has grown considerably over the past few years. Staff is currently in the process of developing new customer feedback cards that can be placed at key public-facing locations such as Customer Service counters and carried with Field Service, Meter Reading, Engineering and Maintenance employees while in the field. In addition to customer surveys, CPAU Communications staff are exploring ways to record feedback through a more formal process that will allow CPAU to report out on general customer satisfaction, deliver praise for employees and use critical, constructive feedback in an effort to continually improve upon the services we offer the community. Additionally, as part of the billing system improvements and redesign of the My Utilities Account web portal, we hope to include a user’s feedback mechanism to make it easier for users to give us feedback. City of Palo Alto Page 6 2. Improving the electronic bill presentment, payment functionality, and enhancing the utility’s online capabilities. The Information Technology and Utilities departments deployed an interactive voice response (IVR) system to enhance CPAU’s customer service call center operations and provide 24x7 communication and payment options to customers. Some of the IVR features include retrieval of outstanding account balance and payment history, payment by credit card, and customer satisfaction survey. Thus far, 12% of total customer calls have been diverted to the IVR system to transact business instead of requesting for assistance from a customer service representative. CPAU is also embarking on a new customer service online portal. CPAU issued a request for proposal (RFP) in 2016 for the next generation customer portal (My Utilities Account 2.0). The new customer portal will provide customers a more user friendly and mobile experience. Some of the new features include rate calculator, notification alerts, recurring payments, e-billing and meter self reads. The new customer engagement portal is scheduled to be rolled out in 2018. 3. Reevaluate the cost-effectiveness of fuel switching especially for new construction and evaluate whether new programs or incentives should be offered, consistent with all applicable legal requirements. On August 2015, City Council approved a ten-point work plan to evaluate and implement greenhouse gas reduction strategies by reducing natural gas and gasoline use through electrification measures related to electric vehicles, and electric heat-pump based technologies to replace water and space heating appliances in the community. The work plan consists of two phases over a five year period. The first phase is already underway which will determine the scope of the analysis and identify any staff and/or consulting resources required to complete it. Phase I will contain additional information to inform Council’s decisions about whether to pursue or not pursue those actions related to fuel switching either identified initially in the Colleagues Memo or in the Phase I analysis. The second phase will involve detailed analysis of proposed actions and measures identified in the first phase and the development of an implementation plan. Staff provided UAC an update of phase one in March 2017 (UAC Report). PEOPLE AND TECHNOLOGY PERSPECTIVE CPAU measures its success in attracting and retaining of employees, training and development, and implementation and evaluation of technologies. So far, CPAU has successfully reached three of four performance measures in these categories. Staff has not been able to identify a consistent and reliable metric for the tools & technologies performance measure. Performance Measures Employee attraction and retention performance measure: PT1.0 Improvement from prior year’s employee satisfaction survey In the FY 2016 CPAU employee survey, there were 137 participants or a 60% response rate which is the highest response rate since we began the surveys in FY2012. The survey provided CPAU a better understanding of employee priorities, satisfaction and engagement within the City of Palo Alto Page 7 organization. 71% of the employees reported either being “very satisfied” or “satisfied” compared to 62% in FY 2015. Most employees agree that CPAU generally develops and promotes employees from within the department. In addition, managers are actively engaged with employees in their career development. However, CPAU received lower marks for employee retention, length of time to fill vacancies, and transparency for advancement opportunities in certain workgroups. Management will collaborate with HR to identify and rectify some of these shortcomings over the upcoming year. As part of the citywide professional development and succession planning effort, the City will continue to seek academies and classes to improve skills and knowledge and implement cross training programs. Training and development performance measure: PT2.0 100% of Operations personnel have the appropriate certification and training for their assigned work area CPAU is committed to provide ongoing training and development for all employees to ensure safety and best practices are implemented in each CPAU employee’s current job. CPAU met its performance target of having 100% of Operations personnel with the appropriate certification and training required for working in their assigned areas to fulfill annual and periodic requirements to comply with various mandated State of California regulations. In January, Operations rolled out an on-line training system that complies with CAL/OSHA requirements and also addresses the unique Utilities related field safety requirements. The new system allows the department flexibility to structure trainings for staff as needed rather than restricted to costly one-time on-site sessions. Additionally, Operations has a few staff who are Operational Qualification certified by the Department of Transportation to proctor the classroom training sessions. Ensuring workgroups have necessary tools and technologies performance measure target: PT3.0 Employees have adequate tools and technologies to perform their jobs Even though CPAU has not been able to identify a consistent and reliable metric to measure employees’ tools and technologies, the City and department continue to seek and add new solutions to assist employees with their work and improve operational efficiencies. The Information Technology Department rolled out Microsoft Office 365 to all City staff. Office 365 enables staff to access files, share documents, and collaborate with colleagues from wherever they are and across multiple devices. Documents created in Word, Excel or PowerPoint and saved on OneDrive can be opened and edited on personal devices or a browser. Collaborating with colleagues is easier with co-authoring, which helps one cut through the complexity of managing feedback and versions from multiple people. Under a shared document, one can see what others are typing and negotiate changes in real-time. In addition, CPAU has issued an RFP to track emergency equipment and excess inventory outside of the City’s warehouse. With the use of bar code scanning on a mobile phone or tablet, this will provide staff efficiencies in City of Palo Alto Page 8 complying with City inventory policies. The vendor software includes mobile enabled applications to capture data in the field. The anticipation is that after the inventory implementation, CPAU can expand the mobile applications to include data collection of necessary work details while crews are in the field and integration with the ERP system. Finally, the City has embraced digital signatures as an acceptable replacement for wet signatures on official and non-official documents. CPAU has identified several customer service documents that can be converted and incorporated with an internal workflow through DocuSign, allowing Customer Service staff to quickly respond to and efficiently process customer applications. Evaluation of new technologies performance measure target: PT4.0 Evaluate at least three new technologies per year CPAU’s Program for Emerging Technologies, or PET, (www.cityofpaloalto.org/UTLInnovation) provides the opportunity for local businesses and organizations to submit proposals for innovative and impactful products to CPAU for review as a prospective partner. The goal is to find and nurture creative products and services that will manage and better use electricity, gas, water and fiber optic services. In FY 2016, CPAU met the performance measure by evaluating 14 applications, of which, five were approved and five are pending review. Three of the five approved projects were letters of support from CPAU for federal funding to develop prototype applications. The projects are in support of solar water heating, community solar, and power measurement of the electrical distribution system. Another approved project was establishment of an Advanced Distribution Management System (ADMS) testbed. The testbed will accelerate development and adoption of ADMS applications to optimize the performance of the distribution grid. The fifth project was an integrated energy storage system for residential and small commercial customers. The energy storage system will serve as a power backup supply and contribute to CPAU’s demand response program. Strategic Initiatives There are two strategic initiatives under the People and Technology perspective. 1. Update the five year department-wide succession plan. Public agencies including utilities across the nation are facing a retirement wave and anticipate losing 35 to 50 percent of their workforce within the next five years. Recruiting and retaining qualified personnel (92 percent), succession planning (80 percent), and staff development (79 percent) are ranked as the most important issues for the second year in a row by state and local government human resources managers.1 This creates not only a challenge but also offers an opportunity for our employees to grow in knowledge and advance through the organization. 1 “Survey Findings – State and Local Government Workforce: 2016 Trends” by Center for State & Local Government Excellence, available at: http://slge.org/wp-content/uploads/2016/05/State-and-Local-Government-Workforce-2016-Trends.pdf City of Palo Alto Page 9 As part of professional development and succession planning, the City hosted a leadership academy to teach fundamentals of supervision and leadership. 30 CPAU employees across all divisions (Administration, Customer Support, Engineering, Operations and Resource Management) participated and graduated from the academy. The academy consisted of 10 modules covering communication, decision-making, training, team-building, establishing expectations and management of change, time and stress. The City received positive feedback and reinforcement techniques from the participants and management. The City will continue to seek other leadership training opportunities and host another academy in 2017. 2. Develop a Utilities-specific smart grid and IT strategic plan. CPAU is in the process of re- evaluating the feasibility of an Advanced Metering Infrastructure (AMI) system and associated smart grid technologies and programs. The prior 2012 smart grid assessment recommended CPAU undertake pilot scale smart grid projects and defer major investments in smart grid for several years. After implementing pilot scale projects over the past several years, the City has released an RFP in 2016 for consulting services to develop a smart grid/AMI business case and Utilities IT strategic roadmap. The consultant will perform cost benefit analysis including capital costs, life of capital equipment, recurring expenses, cost savings, system reliability, operational efficiencies and customer benefits as part of the AMI business case. Under the IT strategic roadmap, the consultant will identify technology trends in the market place and develop a 10 year technology roadmap that includes prioritization of technology projects, resource requirements, estimated one-time and recurring project costs, and implementation timeline. Staff plans to present the findings and recommendations of the AMI business case and technology roadmap to the UAC by end of 2017. FINANCIAL PERSPECTIVE Under this perspective, the performance measures involve maintaining financial strength, designing rate structures that balance costs of service with the promotion of conservation and providing an investment return to the community. CPAU has met 2 of 3 performance goals under this perspective. Performance Measures High credit rating performance measure target: F1.1 At least AA by Standard and Poor’s (S&P) F1.2 At least Aa3 by Moody’s The City maintains S&P’s highest credit rating, Triple A, for the 1999 utility revenue bond, 2007 Clean Energy Renewable bond, 2009 water revenue bond and 2011 utility revenue bond. The 2011 utility revenue bond was refinancing of the 2002 revenue bonds for water and gas utilities. S&P cited the following factors in conferring the AAA rating: 1) very strong historical and projected debt service coverage; 2) extremely strong cash balances and strong reserve City of Palo Alto Page 10 policies; 3) low debt levels, with capital needs to be funded on a pay-as-you-go basis and 4) strong economic base with very high income levels. Maintain adequate Operations Reserve levels for all utilities performance measure target: F2.0 Within guidelines in Council-adopted long-term financial plans The Gas, Wastewater Collection and Water Funds either met or exceeded the minimum guidelines in June 2016 and short-term risk assessment level. The Electric Fund was slightly below the minimum guideline level due to a combination of higher costs and lower revenues. As a result of the extended drought, hydroelectric resources were lower than average. The City had to purchase additional higher-priced energy in the markets. In addition, customer sales were 1% lower than expected. Electricity consumption has declined slowly as a result of a continuing focus on energy efficiency, as well as the adoption of more stringent appliance efficiency standards and energy standards in building codes. CPAU had to increase overall electric rates by 11% in FY 2017 to offset increasing costs and bring reserves back within the guidelines. Strategic Initiatives There is one strategic initiative under the financial perspective. 1. Complete Electric cost of service analysis (COSA) by end of CY 2015. – Completed The City completed the electric COSA in 2016 (the previous electric COSA was updated in 2007). The primary goal of the COSA was to ensure costs are allocated equitably among customers and rate designs are cost of service-based and in alignment with Council guidelines. As a result of the COSA, there were several design changes to ensure rates were aligned to the cost of serving customers. The number of tiers was reduced from three to two for the residential rate because two tiers were required to capture differences in commodity costs and seasonal capacity needs, instead of three. A minimum charge was added to all rate classes to recover the minimum direct costs of customer service, metering, and billing. The municipal rate class was repealed because it shared similar characteristics to other non-residential classes. The cost of electricity and operational expenses of streetlights and traffic signals were transferred from the Electric Fund to the General Fund in alignment with cost of service principles as well. UTILITIES INTERNAL BUSINESS PROCESS PERSPECTIVE The largest number of performance measure targets fall under this perspective. Twelve were met and three were not met. Performance Measures The targets for the following measures were met, including: BP1.1 Restore electrical power in less than 60 minutes BP1.2 Respond to emergency calls in less than 30 minutes City of Palo Alto Page 11 BP2.1 Zero reportable gas incidents BP2.2 Customer gas safety awareness of 90% or higher BP4.1 Average phone wait time of less than 90 seconds BP4.2 Number of billing adjustments of less than 2,958 BP5.0 Reporting significant outages within 30 minutes BP6.0 Customers satisfaction of 90% or higher with program experiences BP7.0 Minimum of 3 competitive bids for each electric fixed-price purchase transaction BP8.0 Reduce lost and unaccountable volumes of gas and water BP9.0 100% of full value received from Redwood gas pipeline BP11.0 Meet the state’s 20% per capita water use reduction by 2020 The following measures were not met: BP3.0 Zero backlog of infrastructures beyond their useful lives Replacing aging infrastructure plays an important role in being able to provide a safe and reliable distribution. Electric replacement of aging infrastructure, in particular rebuild of underground districts, has been delayed over the last several years due to staffing shortages in Engineering and Operations and increasing customer requests. Due to challenges in hiring qualified employees, CPAU has either executed or is evaluating short-term contracts with construction and engineering firms to bring the backlog to a manageable level. The Gas utility has zero backlog and is currently up to date with gas main replacement projects. The Water Reservoir Coating Improvement and Seismic Upgrade projects have been temporarily suspended due to associated escalating costs and new findings of the reservoirs. Staff will conduct an overall water system study to determine if the City’s emergency water storage and supplies can be reconfigured and whether the reservoir(s) require replacement. The Wastewater utility will complete Sewer System Rehabilitation (SSR) / Augmentation Project 24/25/26 in 2017. Capital Improvement project SSR 24/25 was delayed because of unexpectedly high bid proposals. Unexpected high costs were attributed to increased labor rates and material prices on high-density polyethylene main pipes. As a result, CPAU had to revise the scope and re-issue a new bid for SSR 24/25/26 in order to stay within the project budget. The final bid came in at 2% below estimate as opposed to 20% above estimate from the original bid. BP10.0 100% of strategic initiatives completed This performance measure has not yet been met. Strategic initiatives are specific programs or projects required to achieve key objectives in the overall strategic plan. Strategic initiatives are updated and re-prioritized as business needs change over time. When the strategic plan was developed in 2011, CPAU identified 17 initiatives. Since then, 13 of the initial 17 initiatives have been completed including redesign of PaloAltoGreen, reassessment of gas laddering strategy, development of communications plan, implementation of new technologies program and reevaluation City of Palo Alto Page 12 of Calaveras Reserves. Nine new initiatives have been added to the strategic plan and three of them have been completed including evaluation of fuel-switching, infrastructure master studies, new financial policies and completion of the electric COSA. Of the 26 total initiatives, 10 are still considered outstanding (Attachment C). Staff may propose to replace or add new initiatives in future updates. BP12.0 Meet energy efficiency achievement goals In FY 2016, CPAU exceeded its natural gas and water efficiency goals, but fell just short of meeting its electricity goal due to startup costs for new programs and reallocation of resources to focus on water efficiency during the California drought. CPAU offers incentives and education programs for customers to encourage energy and water efficiency, customer-owned renewable generation and enrollment in voluntary green energy programs. The table below summarizes the FY 2016 goals and achievements. As shown, the achievements for gas and water efficiency exceeded the goals set for FY 2016. Electricity savings was 0.01% short of achieving its target of 0.60%. Goals versus Achievements Resource FY 2016 Savings Goals (% of load) FY 2016 Savings Achieved (% of load) FY 2016 Savings Achieved Electricity 0.60% 0.59% 5,548 MWh Gas 0.55% 1.08% 289,442 therms Water 0.91% 1.96% 74,603 CCF Strategic Initiatives Below are updates of four strategic initiatives for the internal business process perspective. 1. Develop a plan to complete a new electric transmission interconnection. The City continues to have ongoing discussions with Stanford, SLAC National Accelerator Laboratory (SLAC), the Department of Energy (DOE), Pacific Gas and Electric (PG&E), and the California Independent System Operator to evaluate alternative transmission connections. The proposed 60 kilovolt (kV) transmission line would provide an interconnection between two existing corridors – the 230kV line in west serving SLAC and the 115kV line in the east serving the City. The new 60kV would provide SLAC, Stanford and the City transmission service reliability improvements and potential cost savings. Even though the feasibility studies to date have indicated the proposed interconnection feasible, would strengthen the local transmission system, could improve power quality, and could provide for the participants’ current and forecasted electric load, much work remains to move this project forward. Additional joint evaluation of various issues, including, but not limited to, the method by which the City can provide electric transmission service to Stanford; land use City of Palo Alto Page 13 and environmental analysis under the California Environmental Quality Act (CEQA); siting issues and easement acquisition; and possibly the negotiation of separate agreements with other parties such as PG&E, the Western Area Power Administration (WAPA), and the DOE. There is an alternative to the SLAC 230kV connection that will provide redundant transmission service to the City. The alternative is a PG&E project that would connect the Adobe Creek Substation near San Antonio Road with PG&E’s Ames Substation in Mountain View. Although the PG&E alternative would provide the redundant service and come at minimal cost to the City, it does not provide the same level of local system benefits or offer the opportunity for the City to avoid any transmission access charges. This alternative has been proposed by PG&E to the California Independent System Operator and is currently on hold pending the results of the City’s negotiations on the SLAC project. 2. Update the Water Integrated Resource Plan (WIRP) including a comprehensive evaluation of the use of groundwater by end of CY 2015. The WIRP is a roadmap for the City of Palo Alto’s future potable water supply. CPAU updated the WIRP guidelines in January 2017. The following potable water supply alternatives were evaluated: 1) water from the San Francisco Public Utilities Commission (SFPUC); 2) groundwater (with or without groundwater recharge); 3) treated water from the Santa Clara Valley Water District (SCVWD); and 4) Demand Side Management (DSM). The evaluation concluded that DSM is the best resource, but potable water supplies are still needed. While SFPUC water is more expensive, it has higher water quality than groundwater or treated water from the SCVWD. In addition, groundwater and SCVWD treated water supplies may increase in cost and aren’t likely to offer additional protection in droughts. The 2017 WIRP guidelines were approved by UAC in January 2017 and scheduled for Council approval in March 2017. Recycled water is being evaluated outside of the WIRP in the Recycled Water Strategic Plan process that will include an evaluation of direct and indirect potable reuse as well as the feasibility and advisability of expanding the existing non-potable recycled water distribution system. The WIRP will be updated again in a couple years after the recycled water strategic plan is completed. 3. Participate actively in Northern California Power Agency’s (NCPA) on-going allocation of cost, including new cost allocation studies if undertaken, to ensure that the City’s costs are fair. CPAU staff continues to actively participate in studies and efforts to allocate costs to Palo Alto and its other members as part of the annual budget process. Additionally, CPAU staff has been assigned to an NCPA committee to review how to best allocate new revenues coming into NCPA as a result of expansion services to non-NCPA members. This effort may lead to a reduction of Palo Alto’s share of costs at NCPA. CPAU continues to evaluate alternative scheduling service providers for its renewable energy contracts. Staff will assess the merits of acquiring scheduling coordination services from an entity other than NCPA including the impacts on current CPAU staff. A recommendation is expected to be made during the FY 2018 timeframe. City of Palo Alto Page 14 4. Complete environmental impact report (EIR) and financial plan for expanding recycled water system. The Final EIR to expand the recycled water distribution system to serve non- potable uses in Palo Alto, including the Stanford Research Park, was certified by Council on September 28, 2015 (Staff Report #5962). Palo Alto and the Santa Clara Valley Water district have embarked on a project to initiate preliminary design of the recycled water distribution system expansion and develop a business plan to confirm the economic feasibility of constructing the pipeline. The work is expected to be completed in 2018. Attachments:  Attachment A: Utilities Strategic Objectives  Attachment B: Balanced Scorecard Performance Measure Results FY 2016  Attachment C: Utilities Strategic Initiatives Update March 2017 Utilities Strategic Plan – Strategic Objectives  Approved by Council July 18, 2011 (Staff Report 1880)  Updated by Council August 5, 2013 (Staff Report 3950)  Updated by Council May 11, 2015 (Staff Report 5709)  1  Strategic  Objective  Objective Statement Performance  Measure  2015 Target Strategic  Initiative  Customer and Community Perspective   C1. “I receive  safe and reliable  service.”  Customers expect that Utilities services are provided on a continuous basis,  without interruption.  In addition, customers expect that the Utilities  delivery systems are safe and will not harm them or put them in any danger.   We will listen to our customers and seek to understand their reliability and  safety concerns and implement programs and projects to address them.  Average time to  restore service per  interrupted  customer  Less than 90  minutes  Number of electric  system interruptions  per year for average  customer  Ranks in the top  quartile  nationwide (less  than 0.9)  C2. “Be  responsive to all  my utilities‐ related service  needs.”  We understand that the customer wants clear, accurate bills with easy  methods of payment;  access to usage history and enough understanding to  efficiently manage usage; to feel quickly and completely “taken care of”  when they have concerns, questions or requests and to  be communicated  with effectively both as individuals and as CPAU’s owners.  One of the ways  to achieve this is to elicit feedback from customers to help improve service.  Customer  satisfaction scores  on annual surveys  for overall value.   Residential and  commercial surveys  alternate every other  year.  Ranking in the top  two utilities  statewide  Establish  mechanisms to  elicit customer  feedback on their  satisfaction with  all interactions  with CPAU.   C3. “I expect to  pay a reasonable  bill”  We understand that customers expect their bills to be comparable to those  in surrounding communities and do not expect to pay more than PG&E  customers. Customers believe it is reasonable to pay slightly more in  exchange for increased reliability, safety and protection of the environment.   However, customers’ overall bills for Utilities services must remain  reasonable and be reasonably stable and should not increase significantly in  any one year.  Customers also want their bills to provide useful information  about their consumption of resources in addition to the rate so that they can  The average  combined residential  customer bill for  electricity, water,  gas, and wastewater  services   Less than the  average of bills for  comparable  services in nearby  communities (MP,  MV, SC, Hayward,  RC, Roseville, and  Alameda).  Improve the  electronic bill  presentment,  payment  functionality and  enhance the  utility’s online  capabilities.  ATTACHMENT A Utilities Strategic Plan – Strategic Objectives  Approved by Council July 18, 2011 (Staff Report 1880)  Updated by Council August 5, 2013 (Staff Report 3950)  Updated by Council May 11, 2015 (Staff Report 5709)  2  Strategic  Objective  Objective Statement Performance  Measure  2015 Target Strategic  Initiative  understand how they can influence their total cost for Utilities services.  For  natural gas service, Palo Alto’s supply cost has been relatively stable due to a  laddered gas portfolio purchasing strategy; however, this strategy needs to  be re‐evaluated as gas prices are currently low and are projected to stay low  for the foreseeable future.  Although, the average bill for all services should  be comparable to those in surrounding communities, staff will continue to  monitor and report the bills for each service separately on a quarterly basis.  Annual rate change Maximum of 10%  per year for  electric and  wastewater  services.   Maximum of 20%  per year for water  service.    C4. “Care for  our  environment”    Our community wants its customer‐owned utility to offer choices for them  to manage their resource use in ways that reflect their environmental  values.  Utilities will improve existing programs and develop new programs  to meet customer needs and allow customers to manage their own  environmental footprint.  Percentage of  customers  participating in the  PaloAltoGreen Gas  program    20% of customers  Re‐evaluate the  cost‐effectiveness  of electrification  especially for new  construction and  evaluate whether  new programs or  incentives can or  should be offered,  consistent with all  applicable legal  requirements.  Percentage of  Greenhouse gas  reductions  10% GHG  reductions  Internal Business Process Perspective  Safety and Reliability  BP1. Ensure a  reliable supply of  utility resources  We will implement strategies that ensure the reliable supply of utility  resources to meet present and future needs.  To provide opportunities for  economic development within Palo Alto, we must provide sufficient  resources that meet the short and long‐term needs of our customers.  To  achieve this we will maintain the utility system components, and provide for  Duration of electric  system interruption  per year for average  customer  Ranks in the top  quartile  nationwide (less  than 60 minutes  per customer)  Develop a plan to  complete a new  electric  transmission  interconnection.  Utilities Strategic Plan – Strategic Objectives  Approved by Council July 18, 2011 (Staff Report 1880)  Updated by Council August 5, 2013 (Staff Report 3950)  Updated by Council May 11, 2015 (Staff Report 5709)  3  Strategic  Objective  Objective Statement Performance  Measure  2015 Target Strategic  Initiative  adequate utility resource supplies to our current and future customers.   We  will also develop new management practices and organizational structure to  ensure compliance with regulatory requirements.  Response time to all  emergency calls  Under 30 minutes Complete the  Water Integrated  Resource Plan  (WIRP) including a  comprehensive  evaluation of the  use of  groundwater by  end of CY 2015.  BP2. Operate  the utility  systems safely  We will continue to ensure the safety of our customers, employees and the  community by the ongoing implementation of a safety programs. Protecting  customers and employees from injury and customer’s property from  damage is essential for delivering quality utility services to our customers.  The safety programs will be implemented by updating safety procedures,  educating customers via outreach materials and workshops, correcting  system deficiencies, operating in accordance with existing safety rules, and  ensuring that products delivered to customers are safe.  AGA (American Gas  Association)  Incidence Rate   Zero reportable  incidents    Customer awareness  of gas safety issues  90% of customers  responding to   annual gas  customer safety  awareness survey  BP3. Replace  infrastructure  before the end  of its useful life  We will continue to implement a long‐term strategy for replacing  infrastructure before the end of its useful life.  Reliable delivery of utility  services to our customers is critical for the success of business and the  quality of life for our residents.  To accomplish this, we will focus on  reducing any  backlog of infrastructure work and replace infrastructure  systems in a manner that spreads the expense across multiple years  resulting in program with even expenditures patterns in future years when  possible.  Backlog of  infrastructure  elements whose  ages are beyond  their useful lives.  Zero Complete long  range Gas and  Water master  infrastructure  plans by end of  CY2015.   Customer Service Excellence   BP4. Serve  customers  promptly and  We will provide customers with the highly responsive service they desire.   We will do this by reviewing and improving our processes for managing  accounts, handling payments, resolving billing issues, responding to  Average phone wait  time  Less than 90  seconds    Utilities Strategic Plan – Strategic Objectives  Approved by Council July 18, 2011 (Staff Report 1880)  Updated by Council August 5, 2013 (Staff Report 3950)  Updated by Council May 11, 2015 (Staff Report 5709)  4  Strategic  Objective  Objective Statement Performance  Measure  2015 Target Strategic  Initiative  completely information and field service requests and notifying customers during  service disruptions.  We will identify ways to streamline these processes and  implement changes.  Specifically, we will review, document and improve  business processes that have been identified as having long customer  response times.  Number of billing  adjustments  10% reduction  from number in  2009.  BP5. Communic ate clearly and  pro‐actively with  all our  stakeholders  We will proactively communicate with all our stakeholders, including all  customer groups, civic leaders, community groups and the press.  To achieve  this objective we will provide the information needed for our stakeholders  to effectively access, understand and utilize all utilities services and  programs.  In addition, we will design communication vehicles and  dissemination processes that will enable our residents to be educated  owners of their municipal utilities system.    Time until informing  the public and local  media of a disruption  affecting all sensitive  major customers  Less than 60  minutes after  becoming aware  of a disruption    BP6. Offer  programs to  meet the needs  of customers  and the  community  We will assist customers to lower their cost of utilities services and support  the environment.  We will assist customers facing economic hardship by  offering bill payment assistance programs.  We will educate customers on  the reasons for and their means of compliance with our safety and  regulatory requirements.  We will also identify all customer groups, identify  any gaps in service provision to those customers, and propose new  programs or changes to existing programs to close those gaps.  Participant*  satisfaction with  Utilities programs  (*rebate recipients,  workshop attendees,  callers, etc.)  At least 90% of  program  participants  satisfied with their  experience     Utilities Strategic Plan – Strategic Objectives  Approved by Council July 18, 2011 (Staff Report 1880)  Updated by Council August 5, 2013 (Staff Report 3950)  Updated by Council May 11, 2015 (Staff Report 5709)  5  Strategic  Objective  Objective Statement Performance  Measure  2015 Target Strategic  Initiative  Reduce Costs   BP7. Negotiate  supply contracts  to minimize  financial risk  We will continue to negotiate supply contracts to acquire supply resources  while managing supply portfolio cost uncertainty to meet rate and reserve  objectives and following sound risk management practices.  To ensure that  we are buying commodities at as competitive prices as possible, we will  negotiate contracts with new counterparties to continue to have a sufficient  set of credit‐worthy trading partners.  We will continue to develop long‐ term acquisition policies and plans (LEAP) and update those plans at least  every three years.  We will also determine all that is necessary to execute a  gas prepay transaction as that is one clear way to lower the cost of gas  supply resources.  Number of  competitive bids  received for each  fixed‐price  transaction.  Minimum of three  bids for electric  power   Participate  actively in  Northern  California Power  Agency’s (NCPA)  on‐going  allocation of cost,  including new cost  allocation studies  if undertaken, to  ensure that the  City’s costs are  fair.  Evaluate  alternative  providers for  services provided  by NCPA as  appropriate.    BP8. Reduce  cost of delivering  service through  best  management  practices  We will reduce the cost of delivering service to customers.  We will identify  opportunities to better coordinate between Utilities and other City  departments to improve efficient delivery of services.  We will perform  benchmarking studies to identify potential modifications to procedures,  practices, materials, and plans and to ensure that we are following best  practices.   One best practice is to increase calibration and replacement  schedules for gas and water meters since the meters slow over time causing  actual usage to be under‐recorded, resulting in lost revenue.  “lost and  unaccounted for”  volumes of gas and  water   80% of 2009  levels.  Complete Water  benchmarking  study by end of FY  2015.  Utilities Strategic Plan – Strategic Objectives  Approved by Council July 18, 2011 (Staff Report 1880)  Updated by Council August 5, 2013 (Staff Report 3950)  Updated by Council May 11, 2015 (Staff Report 5709)  6  Strategic  Objective  Objective Statement Performance  Measure  2015 Target Strategic  Initiative  BP9. Maximize  value of existing  generation  assets  Palo Alto owns significant supply resource assets including a portion of the  Calaveras Hydroelectric Project, a contract with the Western Area Power  Administration, a permanent allocation of water from the regional water  system managed by San Francisco, and allocated capacity on a gas  transportation pipeline.  We will seek out both daily and operational and  long‐term opportunities to optimize the value of these assets to enhance  revenue and/or to reduce costs.  We will work with joint‐owners of our  resource assets to leverage those resources and advocate to maintain or  improve the value of existing resources into the future (LEAP and GULP  strategies).  Value harvested  from Redwood gas  pipeline capacity  100%   BP10.  Manage  implementation  of strategic plan  Completing the strategic plan is only the beginning of getting value from the  strategic planning process.  Ongoing management of the strategies and  initiatives and reporting on progress of those initiatives is essential to  achieving positive results from the strategy.  We will report to the UAC and  Council on this plan’s progress twice annually and we will review and revise  the objectives and develop new initiatives on an annual basis.  Number of strategic  initiatives completed 100%     Environmental Sustainability  BP11. Increase  the  environmental  sustainability of  all Utilities  activities  Adding sustainable resources to the supply portfolios will help the City meet  its Climate Protection Plan goals by reducing the carbon footprint of the  utility services provided to our customers.  We will achieve this by acquiring  renewable resources and promoting the development of local renewable  resources within the rate objectives in the Long‐term Electric Acquisition  Plan (LEAP).  Sustainable practices will be pursued not just for the supply  portfolios, but across all the Utilities day‐to‐day operations.   Meet the state’s  20% per capita water  use reduction by  2020 target    20% by 2020  Complete EIR and  financial plan for  expanding  recycled water  system    BP12. Promote  efficient use of  resources  Resource efficiency programs meet our customers’ desire for environmental  solutions that save money as well as contributing towards the Climate  Protection Plan goals.  We will promote resource efficiency by dedicating the  tactical staffing and budgetary resources necessary to reach maximum  Actual electric  energy efficiency  achievement   At least as high as  goals Council set in  December 2012  Include all cost  effective water  efficiency  measures in 2015  Utilities Strategic Plan – Strategic Objectives  Approved by Council July 18, 2011 (Staff Report 1880)  Updated by Council August 5, 2013 (Staff Report 3950)  Updated by Council May 11, 2015 (Staff Report 5709)  7  Strategic  Objective  Objective Statement Performance  Measure  2015 Target Strategic  Initiative   deployment of economically feasible resource efficiency.   We will revise and  document our long‐term efficiency strategies by updating our 10‐year  Energy Efficiency goals every three years and updating our water efficiency  goals every five years in the Urban Water Management Plan.  To maximize  the savings potential for new development, coordinate with the City’s  Economic Development Manager to ensure that new developments  incorporate energy saving features in the design phase.  Actual gas energy  efficiency  achievement  At least as high as  goals Council set in  December 2012   Urban Water  Management Plan  (UWMP).  People and Technology Perspective  PT1. Be an  attractive place  to work  We will create a positive values‐based work environment which attracts and  retains qualified staff.  To achieve this objective we will try to better  understand employees desires and incentives, and will articulate our values  both internally and as we recruit.  Employee  satisfaction rating  Improvement  from prior year’s  level    PT2. Obtain,  develop and  train employees  to ensure an  adequate and  qualified  workforce  A properly sized, trained and certified workforce is essential to our  effectiveness.  We will identify skill and staffing gaps at the individual and  organizational levels and seek to fill those gaps through the effective use of  opportunities including hiring, mentorship programs, role rotations,  knowledge transfer opportunities, long‐term developmental assignments  and both internal and external training opportunities.  We will plan for  workforce succession and provide cross‐training opportunities for  employees to improve employee satisfaction and build a more robust work  force.  Percentage of  operations personnel  that has appropriate  certification and  training required for  working in all areas  they may be  assigned  100% Update the 5‐year  succession plan  for each division.  PT3. Ensure  employees have  adequate tools  to perform job  duties   As major users of technology assets, we must have access to quality and  timely delivered IT services. We must build and maintain an effective  relationship with the City’s IT division that includes clear, frequent  communication as well as productive coordination.  We will collaborate with  IT to identify barriers to providing support for technology projects and  remove them.  In those instances in which our immediate technology needs  cannot be addressed by the City’s IT division in a timely or sufficiently‐ comprehensive fashion, we will utilize external expertise.   Employees have  adequate tools and  training to perform  their jobs  100% of  employees   Develop a  Utilities‐specific  smart grid and IT  strategic plan.  Utilities Strategic Plan – Strategic Objectives  Approved by Council July 18, 2011 (Staff Report 1880)  Updated by Council August 5, 2013 (Staff Report 3950)  Updated by Council May 11, 2015 (Staff Report 5709)  8  Strategic  Objective  Objective Statement Performance  Measure  2015 Target Strategic  Initiative  PT4. Investigate  and adopt  innovative  technologies  Our customers value Utilities embracing new technologies that will help  reduce costs and/or meet Climate Protection Plan goals.  We will innovate  by researching technologies and cultivating relationships with entrepreneurs  and academics to identify new cost‐effective and environmentally  sustainable technologies to consider adopting.  New technologies, programs,  and projects identified in the smart grid strategic plan will be implemented.  Number of new  technologies  evaluated per year  by an in‐depth study  or pilot project  Three   Financial Perspective   F1. Maintain  financial  strength   Maintaining a high credit rating reduces the cost of borrowing if needed for  capital projects.  We will continue best practices for financial management,  adhere to energy risk management policies and guidelines to minimize  financial risk, and maintain sufficient reserves to cover debt obligations as  required to retain CPAU’s current favorable bond rating so that the cost of  capital is low for any bond funded capital projects.  Credit rating At least AA as  determined by  Fitch Ratings or  Standard and  Poor’s or at least  Aa3 as determined  by Moody’s    F2. Maintain  adequate  reserves  Maintaining adequate cash reserves contributes to maintaining our overall  financial health and retaining our current favorable bond rating.  We will  maintain Rate Stabilization Reserves levels within Council‐approved  guidelines and sufficient to provide rate stability as desired by ratepayers.   During the annual budget and rate setting process, the risks that each  Utilities fund is exposed to will be identified along with the trajectory of  costs and revenues to allow Council to determine appropriate reserve levels  and rate adjustments.    Operations Reserve  levels  Within guidelines  in Council‐adopted  long‐term  Financial Plans    Utilities Strategic Plan – Strategic Objectives  Approved by Council July 18, 2011 (Staff Report 1880)  Updated by Council August 5, 2013 (Staff Report 3950)  Updated by Council May 11, 2015 (Staff Report 5709)  9  Strategic  Objective  Objective Statement Performance  Measure  2015 Target Strategic  Initiative  F3. Implement  rate structures  that balance cost  of service and  resource  conservation  Retail rates should be designed so that the revenues from a customer group  match the cost to serve those customers.  Rates consist of fixed charges and  volumetric charges, which are based on usage.  Fixed costs consist of  customer‐related costs (meter reading, billing, etc.) and costs related to  capital projects and operations while variable costs include the cost of  buying supplies (water, gas, or electricity).  When fixed costs are recovered  through charges based on usage, costs will not be recovered if customers  reduce usage more than projected.  To address this problem we will  examine alternate rate structures that strike a balance between the two  competing objectives (cost of service and resource efficiency) to ensure that  certain fixed costs are recovered with a fixed charge, but other costs are  recovered with charges that vary depending on usage (volumetric charges).    Complete Electric  cost of service  analysis (COSA) by  end of CY 2015.   10 Maintain adequate reservesMaintain financial strength Implement rate structures that balance cost of service and resource conservation Fi n a n c i a l Re s o u r c e s Pe o p l e a n d Te c h n o l o g y Be an attractive place to work Obtain, develop and train employees to ensure an adequate and qualified workforce Ensure employees have adequate tools to perform job duties Values: Honesty and Integrity Teamwork Accountability Quality of Service “Be responsive to all my Utilities services- related needs” “I receive safe and reliable service” “I expect to pay a reasonable bill” “Care for our environment” Vision: We Deliver Extraordinary Value to Our Customers Strategic Destination: We will earn the high satisfaction of our customers with our cost- competitive provision of safe, reliable and environmentally sustainable utility services Cu s t o m e r Operate the Utilities systems safely Reliability and Safety Customer Service Excellence Manage Cost Environmental Sustainability Serve customers promptly and completely Offer programs to meet the needs of customers and the community Communicate clearly and proactively with all our stakeholders Negotiate supply contracts to minimize financial risk Reduce cost of delivering service through best management practices In t e r n a l B u s i n e s s P r o c e s s e s Increase the environmental sustainability of all Utilities operations Promote efficient use of resources Investigate and adopt innovative technologies Ensure a reliable supply of utility resources Replace infrastructure before the end of its useful life Maximize value of existing generation assets Manage implementation of strategic plan   Balanced Scorecard Performance Measure Results Attachment - B Measure ID Strategic Objective Objective Statement Performance Measure 2015 Target Measure Goal Value FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Score (Values: +, - , TBD) C1.1 C1. “I receive safe and reliable service.” Customers expect that Utilities services are provided on a continuous basis, without interruption. In addition, customers expect that the Utilities delivery systems are safe and will not harm them or put them in any danger. We will listen to our customers and seek to understand their reliability and safety concerns and implement programs and projects to address them. Average time to restore service per interrupted customer Less than 90 minutes <90 113 min 139 min 38.69 263.57 164.78 - C1.2 Number of electric system interruptions per year for average customer Ranks in the top quartile nationwide (less than .9) <0.9 0.13 0.25 0.41 0.18 0.24 + C2 C2. “Be responsive to all my utilities-related service needs.” We understand that the customer wants clear, accurate bills with easy methods of payment; access to usage history and enough understanding to efficiently manage usage; to feel quickly and completely “taken care of” when they have concerns, questions or requests and to be communicated with effectively both as individuals and as CPAU’s owners. One of the ways to achieve this is to elicit feedback from customers to help improve service. Customer satisfaction scores on annual surveys for overall value. Ranking in 85-90% >85% 81% Commercial 86% Residential 85% Water Customers 87% Commercial 82% Residential - C3.1 C3. “I expect to pay a reasonable bill” We understand that customers expect their bills to be comparable to those in surrounding communities and do not expect to pay more than PG&E customers. Customers believe it is reasonable to pay slightly more in exchange for increased reliability, safety and protection of the environment. However, customers’ overall bills for Utilities services must remain reasonable and should not increase significantly in any one year. Customers also want their bills to provide useful information about their consumption of resources in addition to the rate so that they can understand how they can influence their total cost for Utilities services. The average combined residential customer bill for electricity, water, gas, and wastewater services. Less than the average of bills for comparable services in nearby communities (MP, MV, SC, Hayward, RC, Roseville, and Alameda). Total bill calculation for each month for CPAU and for comparator agencies - this changes every year so Measure Goal Value is not a constant CPAU: E - $42.76 G - $51.03 W - $51.19 WW - $27.91 Tot - $172.89 Nearby community average: $158.93 CPAU: E - $42.76 G - $37.49 W - $62.16 WW - $29.31 Tot - $171.72 Nearby community average: $166.35 CPAU: E - $42.76 G - $38.89 W - $67.35 WW - $29.31 Tot - $178.31 Nearby community average: $177.06 CPAU: E - $42.76 G - $37.39 W - $67.35 WW - $29.31 Tot - $177.22 Nearby community average: $191.63 CPAU: E - $42.76 G - $37.98 W - $75.35 WW - $31.95 Tot - $188.04 Nearby community average: $204.86 + C3.2 Annual rate change Maximum of 10% per year for electric, gas, and wastewater Utilities service. Maximum of 20% per year for water Utility service. <10% for E, G, WWC <20% for W Effective 7/1/11: E 0% G 0% W 12.5% WW 0% Effective 7/1/12: E 0% G -10%* W 15% WW 5% *Gas supply rates change monthly Effective 7/1/13: E 0% G 0%* W 7% WW 0% *Gas supply rates change monthly Effective 7/1/14: E 0% G 0%* W 0% WW 0% *Gas supply rates change monthly Effective 7/1/15: E 0% G 0% W 12% WW 9% *Gas supply rates change monthly **Drought surcharge added 9/1/15 still in effect + C4.1 C4. “Care for our environment” Our community wants its customer-owned utility to offer choices for them to manage their resource use in ways that reflect their environmental values. Utilities will improve existing programs and develop new programs to meet customer needs and allow customers to manage their own environmental footprint. Percentage of customers participating in the PaloAltoGreen Gas program 20% Customers Top rank nationally E - 24% E - 18% E - 18% G - 3.2% G - 3.8% N/A Customer and Community Perspective 1 Balanced Scorecard Performance Measure Results Attachment - B Measure ID Strategic Objective Objective Statement Performance Measure 2015 Target Measure Goal Value FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Score (Values: +, - , TBD) C4.2 Percentage of greenhouse gas reductions 10% greenhouse gas reductions N/A N/A N/A 1.3% 5.6% N/A 2 Balanced Scorecard Performance Measure Results Attachment - B Measure ID Strategic Objective Objective Statement Performance Measure 2015 Target Measure Goal Value FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Score (Values: +, - , TBD) BP1.1 BP1. Ensure a reliable supply of utility resources We will implement strategies that ensure the reliable supply of utility resources to meet present and future needs. To provide opportunities for economic development within Palo Alto, we must provide sufficient resources that meet the short and long-term needs of our customers. To achieve this we will maintain the utility system components, and provide for adequate utility resource supplies to our current and future customers. We will also develop new management practices and organizational structure to ensure compliance with regulatory requirements. Duration of electric system interruption per year for average customer Ranks in the top quartile nationwide (less than 60 minutes per customer) <60 15 min 34 min 15.78 min 46.85 39.48 + BP1.2 Response time to all emergency calls Under 30 minutes <30m 22 min 23 min 22 min 22 Min 19 min + BP2.1 BP2. Operate the utility systems safely We will continue to ensure the safety of our customers, employees and the community by the ongoing implementation of a safety programs. Protecting customers and employees from injury and customer’s property from damage is essential for delivering quality utility services to our customers. The safety programs will be implemented by updating safety procedures, educating customers via outreach materials and workshops, correcting system deficiencies, operating in accordance with existing safety rules, and ensuring that products delivered to customers are safe. AGA (American Gas Association) Incidence Rate Zero reportable incidents 0 00000 + BP2.2 Customer awareness of gas safety issues 90% of customers responding to annual gas customer safety awareness survey >90% 96.70% 96% 96% 94.6% 97.0% + BP3 BP3. Replace infrastructure before the end of its useful life We will continue to implement a long-term strategy for replacing infrastructure before the end of its useful life. Reliable delivery of electric service to our customers is critical for the success of business and the quality of life for our residents. To accomplish this, we will focus on reducing the backlog and replaces infrastructure systems in a manner that spreads the expense across multiple years resulting in program with even expenditures patterns in future years. Backlog of infrastructure elements whose age is beyond its useful life Zero E - $0 G - $0 W - $0 WWC - $0 E - $7M G - $1M W - $3M WW - $5M E $7M G $0 W $7M WW $5M E $6.4 M G $0 M W $4 M WW $3 M E $4 M G $0 M W $2 M WW $3 M E $3.7M G $0M W $2.1 M WW $2.6 M - Internal Business Process Perspective Safety and Reliability 3 Balanced Scorecard Performance Measure Results Attachment - B Measure ID Strategic Objective Objective Statement Performance Measure 2015 Target Measure Goal Value FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Score (Values: +, - , TBD) BP4.1 BP4. Serve customers promptly and completely We will provide customers with the highly responsive service they desire. We will do this by reviewing and improving our processes for managing accounts, handling payments, resolving billing issues, responding to information and field service requests and notifying customers during service disruptions. We will identify ways to streamline these processes and implement changes. Specifically, we will review, document and improve business processes that have been identified as having long customer response times. Average phone wait time 90 seconds or less <90 sec 134 sec 107 sec 63 sec 68 sec 62 sec + BP4.2 Number of billing adjustments 10% reduction from number in 2009 FY09 - 3286 90% - 2,958 1,365 1,340 2,743 1,449 1,165 + BP5 BP5. Communicate clearly and pro- actively with all our stakeholders We will proactively communicate with all our stakeholders, including all customer groups, civic leaders, community groups and the press. To achieve this objective we will provide the information needed for our stakeholders to effectively access, understand and utilize all utilities services and programs. In addition, we will design communication vehicles and dissemination processes that will enable our residents to be educated owners of their municipal utilities system. Time until informing the public and local media of a disruption affecting all sensitive major customers Less than 90 60 30 minutes after becoming aware of a disruption <60m < 90 min <30 Min <30 Min <30 Min <30 min + BP6 BP6. Offer programs to meet the needs of customers and the community We will assist customers to lower their cost of utilities services and support the environment. We will assist customers facing economic hardship by offering bill payment assistance programs. We will educate customers on the reasons for and their means of compliance with our safety and regulatory requirements. We will also identify all customer groups, identify any gaps in service provision to those customers, and propose new programs or changes to existing programs to close those gaps. Participant* satisfaction with Utilities programs (*rebate recipients, workshop attendees, callers, etc.) At least 90% of program participants satisfied with their experience >90% Average of all workshops: 94% Average of all workshop: 95% Average of all workshop: 95% Average of all workshop: 95% Workshops & Home Energy Genie: 93.83%+ BP7 BP7. Negotiate supply contracts to minimize financial risk We will continue to negotiate supply contracts to acquire supply resources while managing supply portfolio cost uncertainty to meet rate and reserve objectives and following sound risk management practices. To ensure that we are buying commodities at as competitive prices as possible, we will negotiate contracts with new counterparties to continue to have a sufficient set of credit-worthy trading partners. We will continue to develop long-term acquisition policies and plans (LEAP) and update those plans at least every three years. We will also determine all that is necessary to execute a gas prepay transaction as that is one clear way to lower the cost of gas supply resources. Number of competitive bids received for each fixed-price transaction. Minimum of three electric bids > 3 E - 2.75 bids E - 2.4 E - 3.5 bids E - 4.6bids E - 3.9 bids + BP8 BP8. Reduce cost of delivering service through best management practices We will work towards reducing the cost of delivering service to customers. We will identify opportunities to better coordinate between Utilities and other City departments to improve efficient delivery of services. We will perform benchmarking studies to identify potential modifications to procedures, practices, materials, and plans and to ensure that we are following best practices. One best practice is to increase calibration and replacement schedules for gas and water meters since the meters slow over time so that the actual usage is under-recorded, resulting in lost revenue. “lost and unaccounted for” volumes of gas and water 80% of 2009 levels. 2009 G - 2.6% W - 5.0% G - 2.8% W - 8.2% G-2.1% W-7.8% G-2.5% W-8.6% G-2.3% W-5.0% G-0.0% W-4.9% - Customer Service Excellence Reduce Costs 4 Balanced Scorecard Performance Measure Results Attachment - B Measure ID Strategic Objective Objective Statement Performance Measure 2015 Target Measure Goal Value FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Score (Values: +, - , TBD) BP9 BP9. Maximize value of existing generation assets Palo Alto owns significant supply resource assets including a portion of the Calaveras Hydroelectric Project, a contract with the Western Area Power Administration, a permanent allocation of water from the regional water system managed by San Francisco, and allocated capacity on a gas transportation pipeline. We will seek out both daily and operational and long-term opportunities to optimize the value of these assets to enhance revenue and/or to reduce costs. We will work with joint-owners of our resource assets to leverage those resources and advocate to maintain or improve the value of existing resources into the future (LEAP and GULP strategies). Value harvested from Redwood gas pipeline capacity 100% 100% 99% 100% 100% 100% 100% + BP10 BP10. Manage implementation of strategic plan Completing the strategic plan is only the beginning of getting value from the strategic planning process. Ongoing management of the strategies and initiatives and reporting on progress of those initiatives is essential to achieving positive results from the strategy. We will report to the UAC and Council on plan progress twice annually and we will review and revise the objectives and develop new initiatives on an annual basis. Number of strategic initiatives completed 100% or 26 100% 8 8 10 13 16 - BP11 BP11. Increase the environmental sustainability of the supply portfolios Adding sustainable resources to the supply portfolios will help the City meet its Climate Protection Plan goals by reducing the carbon footprint of the utility services provided to our customers. We will achieve this by acquiring renewable resources and promoting the development of local renewable resources within the rate objectives in the Long-term Electric Acquisition Plan (LEAP). Meet states 20% per capita water use reduction by 2020 20% of baseline (2015) level 4,611,979 CCF N/A N/A N/A N/A 19.6% 29.2% + BP12 BP12. Promote efficient use of resources Resource efficiency programs meet our customers’ desire for environmental solutions that save money as well as contributing towards the Climate Protection Plan goals. We will promote resource efficiency by dedicating the tactical staffing and budgetary resources necessary to reach maximum deployment of economically feasible resource efficiency. We will revise and document our long-term efficiency strategies by updating our 10-year Energy Efficiency goals every three years and updating our water efficiency goals every five years in the Urban Water Management Plan. Actual annual energy efficiency achievement as percentage of electric and gas load E - Goals Council set in December 2012 G - Goals Council set in December 2012 E - 0.60% G - 0.50% E - 1.52% G - 0.73% E - 0.85% G - 1.13% E - 0.87% G - 1.16% E - 0.65% G - 0.92% E - 0.59% G - 1.08% - Environmental Sustainability 5 Balanced Scorecard Performance Measure Results Attachment - B Measure ID Strategic Objective Objective Statement Performance Measure 2015 Target Measure Goal Value FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Score (Values: +, - , TBD) PT1 PT1. Be an attractive place to work We will create a positive values-based work environment which attracts and retains qualified staff. To achieve this objective we will try to better understand employees desires, work with City management to establish sufficient compensation, benefits, and incentives, and will articulate our values both internally and as we recruit.Employee satisfaction rating Improvement from 2012 baseline level 100% 62.7% - Satisfied 12.7% - Neutral 66.3% - Satisfied 12.5% - Neutral 72.5%- Satisfied 5%- Neutral 62.4%- Satisfied 15.6%- Neutral 70.8%- Satisfied 8.9%- Neutral + PT2 PT2. Develop and train employees to ensure a qualified workforce A properly trained and certified workforce is essential to our effectiveness. We will identify skill gaps at the individual and organizational levels and seek to fill those gaps through the effective use of opportunities including mentorship programs, role rotations, knowledge transfer opportunities and both internal and external training opportunities. We will plan for workforce succession and provide cross-training opportunities for employees to improve employee satisfaction and build a more robust work force. Percentage of operations personnel that has appropriate certification and training required for working in all areas they may be assigned 100% 100% 100% 100% 100% 100% 100% + PT3 PT3. Ensure employees have adequate tools to perform job duties As major users of technology assets, we must have access to quality and timely delivered IT services. We must build and maintain an effective relationship with the City’s IT division that includes clear, frequent communication as well as productive coordination. We will collaborate with IT to identify barriers to providing support for technology projects and remove them. In those instances in which our immediate technology needs cannot be addressed by the City’s IT division in a timely or sufficiently-comprehensive fashion, we will utilize external expertise. Employees have adequate tools and training to perform their jobs 100% of employees 100% N/A N/A N/A N/A N/A N/A PT4 PT4. Investigate and adopt innovative technologies Our customers value Utilities embracing new technologies that will help reduce costs and/or meet Climate Protection Plan goals. We will innovate by researching technologies and cultivating relationships with entrepreneurs and academics to identify new cost-effective and environmentally sustainable technologies to consider adopting. Review of Utilities Technology needs was completed in 2014 and a technology strategic plan is expected to be completed by the end of CY 2015. New technologies, programs, and projects identified in the plan will be implemented in the subsequent years. Number of new technologies evaluated per year Three >3 N/A 13 15 15 14 + People and Technology Perspective 6 Balanced Scorecard Performance Measure Results Attachment - B Measure ID Strategic Objective Objective Statement Performance Measure 2015 Target Measure Goal Value FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Score (Values: +, - , TBD) F1 F1. Maintain financial strength Maintaining a high credit rating reduces the cost of borrowing if needed for capital projects. We will continue best practices for financial management, adhere to energy risk management policies and guidelines and maintain sufficient reserves to cover debt obligations as required to retain CPAU’s current favorable bond rating so that the cost of capital is low for any bond funded capital projects. Credit rating At least AA as determined by Fitch Ratings or Standard and Poor’s or at least Aa3 as determined by Moody’s <=AA or <=Aa3 S&P = AAA Moody's = Aa2 S&P = AAA Moody's = Aa2 S&P = AAA Moody's = Aa2 S&P = AAA Moody's = Aa2 S&P = AAA Moody's = Aa2 + F2 F2. Maintain adequate reserves Operations Reserve levels Within guidelines in Council-adopted long- term financial plans Above rate stabilization reserve levels All RSRs are above minimum guideline levels. All RSRs are above minimum guideline levels. All RSRs are above minimum guideline levels. All reserves are within Operations reserve guideline levels. E - Below G - Above W - Above WWC - Within - F3 F3. Implement rate structures that balance cost of service and resource conservation Retail rates should be designed so that the revenues from a customer group match the cost to serve those customers. Rates consist of fixed charges and volumetric charges, which are based on usage. Fixed costs consist of customer-related costs (meter reading, billing, etc.) and costs related to capital projects and operations while variable costs include the cost of buying supplies (water, gas, or electricity). When fixed costs are recovered through charges based on usage, costs will not be recovered if customers reduce usage more than projected. To address this problem we will implement rate structures that strike a balance between the two competing objectives (cost of service and resource efficiency) to ensure that certain fixed costs are recovered with a fixed charge, but other costs are recovered with charges that vary depending on usage (volumetric charges). Fixed charges on Utilities rates By 2013, adequate to cover 100% of the fixed costs of meter reading, billing, and other customer-related costs E - 100% G - 100% W - 100% WWC - 100% E - NA G - 100% W - 100% WWC - 100% E - NA G - 100% W - 100% WWC - 100% E - NA G - 100% W - 100% WWC - 100% E - NA G - 100% W - 100% WWC - 100% E - 100%* G - 100% W - 100% WWC - 100% + Financial Perspective 7 Attachment - C 1 Strategic Initiatives of the Utilities Strategic Plan  (as of March 2017)    For the customer and community perspective:  1.  Establish mechanisms to elicit customer feedback on their satisfaction with all interactions  with CPAU.   The Utilities Communication Plan has been redrafted for 2013 and includes plans for  further expanding available mechanisms for eliciting customer feedback.  Due to staffing  and resource limitations, we do not anticipate fully implementing mechanisms for  immediate feedback after all customer interactions until 2014.  Meanwhile, the  CMUA/RKS survey of residential customers was conducted in 2012 which gave some  generalized feedback on customer satisfaction.  We have gotten more specific feedback  via evaluations at workshops, events and as part of programs such as the backflow  prevention device inventory program.  We are redesigning the My Utilities Account web  portals to include a user’s feedback mechanism and we are upgrading our MyCPAU  Mobile App to make it easier for users to give us feedback.    2.  Improve the electronic bill presentment, payment functionality and enhance the utility’s  online capabilities.   Replace bill redesign with improve the electronic bill presentment, payment  functionality and enhancing the utility’s mobile web capabilities. Improved “My Utilities  Account” portal design with updated electronic bill presentment, greater payment  functionality, and streamlined user interfaces in FY2013‐2014.    19. Reevaluate the cost‐effectiveness of electrification especially for new construction and  evaluate whether new programs or incentives can or should be offered consistent with all  applicable and legal requirements.   On August 2015, City Council approved a ten‐point work plan to evaluate and  implement greenhouse gas reduction strategies by reducing natural gas and gasoline  use through electrification measures.  The work plan consists of two phases over a five  year period.  The first phase is already underway which will determine the scope of the  analysis and identify any staff and/or consulting resources required to complete it.      For the people and technology perspective:  6.  Update the 5‐year succession plan for each division.   A succession organizational chart is being created for each division to identify skill set  gaps and employees eligible for retirement.    7.  Develop a Utilities‐specific smart grid and IT strategic plan.   The Utilities‐specific IT strategic plan is on hold pending completion of the citywide IT  strategic plan.    Attachment - C 2 For the financial perspective:    None pending    For the internal business process perspective:  11. Develop a plan to complete a new electric transmission interconnection.   Staff will continue to provide updates to the UAC on the feasibility of a second electric  transmission line source for the City by connecting the City’s Quarry Substation to the  SLAC National Accelerator Laboratory 230 kV Substation.    20. Complete long range Gas and Water master infrastructure plans by end of CY 2015.   Master Plan for the Water Utility to address infrastructure replacement priorities has  been completed. This data is now being incorporated in the CIP planning for the next CIP  cycle. In addition, an analysis of gas pipe materials is in progress and will be used to  complete a gas master planning process next year.    21. Participate actively in Northern California Power Agency (NCPA) on‐going allocation of cost,  including new cost allocation studies if undertaken, to ensure that the City’s costs are fair.   Evaluate alternative providers for services provided by NCPA as appropriate.   CPAU staff continues to actively participate in studies and efforts to allocate costs to  Palo Alto and its other members as part of the annual budget process.    22. Complete Environmental Impact Report (EIR) and financial plan for expanding recycled  water system.    The Environmental Impact Report was certified by Council in September 2015.  Palo Alto  and the Santa Clara Valley Water district have embarked on a project to initiate  preliminary design of the recycled water distribution system expansion and develop a  business plan to confirm the economic feasibility of constructing the pipeline in 2018.    23. Complete Water benchmarking study by the end of FY 2015.   Staff conducted a benchmark in 2014 comparing CPAU water rates with several nearby  agencies.  The preliminary findings were shared with Finance Committee in May 2017.  3.  Reassess the gas portfolio laddering purchasing strategy.   Gas purchasing strategy was changed and approved by Council in November 2011; Staff  will present changes to Gas Utility Long‐term Plan, reserve guidelines, and  implementation timeline in 2012.  4.  Redesign the PaloAltoGreen program.    The new PaloAltoGreen Gas program was approved by Council on April 21, 2014 (Staff  Report 4596) and will be launched by October 2014.  Attachment - C 3 5.  Implement an annual employee satisfaction survey.   An employee satisfaction survey was completed for Utilities in October 2011.  8.  Develop a process to evaluate and implement new technology through targeted programs  and consider creating a fund for innovative projects and pilots.   The Emerging Technologies Pilot and Demonstration Program was approved by Council  in January 2012.  9.  Re‐evaluate the need for and purpose of the Calaveras (stranded cost) Reserve.   The name and purpose of the Calaveras Reserve has been changed to Electric Special  Project Reserve with new guidelines.  10. Evaluate the appropriate fraction of fixed costs to be collected by fixed charges.   Staff will bring forward rate structure revisions based on cost of service for gas and  water in FY 2016 budget.    12. Prepare a Utilities Communications Plan that incorporates increased use of neighborhood  and business organizations and schools to disseminate program and educational  information.   The Utilities Communication Plan has been drafted and is a working document that is  being constantly updated.    13. Pursue gas prepay transactions to leverage the City’s low cost of capital and tax‐exempt  status to acquire low cost gas supply resources.   After unanimous support from the UAC and Finance Committee, the Council approved a  long‐term prepay transaction with MuniGas on September 15, 2014 (Staff Report 5006).  14. Actively participate in citywide efforts to improve the procurement process.   Utilities is a member of the City’s procurement design team which is tasked to make  recommendations to improve sole source process, increase Cal Card usage, and  implement departmental BID process.  15. Evaluate and implement opportunities to maximize the value of the Calaveras project in the  new electric market framework.   Staff is now able to capture virtually all of the value of the Redwood gas pipeline, the  pipeline from Malin, and Oregon to PG&E Citygate.  16. Develop a program to ensure that the strategic plan is pursued and that objectives and  initiatives are managed.   A balanced scorecard has been implemented to track the performance measures and  initiatives in the strategic plan.  17. Develop implementation plans to achieve the long‐term water and energy efficiency goals  and implement programs as outlined in the implementation plans.   The Urban Water Management Plan was adopted by Council in June 2011.  18. Develop a comprehensive Utilities financial policy by January 2014 to provide direction for  future cost of service studies and rate‐setting priorities.   Staff developed new comprehensive Financial Plans for the Electric, Gas, Wastewater  Collection and Water Funds, which were approved by Council on June 9, 2014 (Staff  Report 4799).      Attachment - C 4 24. Complete Electric cost of service analysis (COSA) by end of CY 2015.   The electric cost of service and rate study was completed in April 2016.  The  recommended rates changes by customer class to recover revenue were implemented  in FY 2016.  25. Include all cost effective water efficiency measures in 2015 Urban Water Management Plan  (UWMP).   The updated 2015 UWMP including new demand management measures to meet new  State requirements for potable water use reductions was approved by Council in May  2016.  26. Complete the Water Integrated Resource Plan (WIRP) including a comprehensive evaluation  of the use of groundwater by end of CY 2015.   The 2017 Water Integrated Resources Plan was approved by Council in March 2017.    City of Palo Alto (ID # 8192) City Council Staff Report Report Type: Informational Report Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Utilities Strategic Plan Title: Informational Report to Council on the Development of a New Utilities Department Strategic Plan and Key Drivers From: City Manager Lead Department: Utilities Request This report is provided for the Council’s information and no action is required. Executive Summary The City of Palo Utilities Department (CPAU) has embarked on a process to update and refresh its Strategic Plan. The goal of the Strategic Plan is to ensure maximum alignment between CPAU’s resources and activities with the City Council’s policy direction, citywide organizational culture, employee and stakeholder interests, and customer service expectations. The Strategic Plan also is intended to guide CPAU in successfully advancing the City’s vision and priorities over the next five to ten years. The Strategic Plan development process will address specific CPAU goals, objectives and initiatives; revisit the vision and/or mission statements; and result in the identification of tactical action items a refined system for tracking performance and supporting adaptability to changing conditions into the future. Background On July 18, 2011, the Council approved the 2011 Utilities Strategic Plan (Staff Report #1880). Council updated the Strategic Plan through approved changes to the Performance Measures and Strategic Initiatives of the Utilities Strategic Plan in August 2013 (Staff Report #3950) and May 2015 (Staff Report #5709). The most recent update of CPAU’s progress towards meeting its Performance Measures and Strategic Initiatives is included in the June 19, 2017 City Council packet (Staff Report #8192). Recognizing that several internal and external factors have significantly changed since the last major Strategic Plan update in 2011 and that the utility industry continues to increase in complexity, staff felt the necessity to conduct a thorough update of the Strategic Plan. To assist City of Palo Alto Page 2 in this effort, earlier this year staff issued a Request for Proposals (RFP) to retain consulting support services. Specifically through the RFP, staff sought assistance in the following areas:  Engagement of key stakeholder to facilitate input into the Strategic Plan;  Identification of key emerging issues facing CPAU in the next two, five and ten years;  Perform high level SWOT (strengths, weaknesses, opportunities and threats) analysis of CPAU’s ability to achieve organizational goals;  Refinement of vision, mission and values consistent with key stakeholder and community interests;  Development of measureable goals, objectives, and implementation plan; and,  Development of an approach to monitoring, managing, and communicating progress that achieves the objectives of this RFP. After a thorough evaluation process, one vendor was selected to assist CPAU in the development of the Strategic Plan. Additionally, a second vendor will be retained to assist staff in the facilitating CPAU employee engagement and communication of several issues including the development of the Strategic Plan. The contract dollar amount for each agreement is expected to be within the City Manager’s contracting authority of less than $85,000 per year. Discussion The focus of the Strategic Plan update will be on how to balance all stakeholder needs and expectations while addressing several key drivers, challenges and opportunities including:  Increased sustainability and/or climate action goals and/or requirements;  New legislative and regulatory requirements;  Emerging technologies and smart grid applications;  Changing workforce and retention challenges;  Physical and cyber security threats;  Proliferation of distributed energy resources;  Changes to the availability and feasibility of long-term supply resources; and  Competition in providing utilities services. The Strategic Plan development process will engage a wide variety of stakeholders, including the City Council, Utilities Advisory Commission, interdepartmental leadership, community members, customers and all levels of CPAU staff. This inclusive approach will be focused on maintaining effective engagement throughout Strategic Plan development, and sustainable focus on implementation after adoption. The Strategic Plan will also need to address consistency and coordination with City and other CPAU initiatives either in place or in process, along with State and Federal legislative and regulatory requirements, such as:  City’s Sustainability Action Plan, City of Palo Alto Page 3  Smart Grid/Information Technology Strategic and Implementation Plan,  Recycled Water Plan,  Water Integrated Resource Plan,  Electric Long-term Electric Acquisition Plan/Integrated Resource Plan,  Gas Carbon Neutral Plan  Second electric transmission interconnection plan  Utilities Compliance  Utilities Workforce Sustainability  Capital improvement of the utility infrastructure Attachment A provides a more detailed list of such key drivers, policies and mandates or compliance directives. Next Steps The vendor selected to develop the Strategic Plan will start in July 2017 along with the employee engagement process. The figure below, illustrates the process staff intends to use to develop the Strategic Plan and engage stakeholders, including Council, throughout the process. The majority of the work is expected to happen through the remainder of 2017 and staff plans to seek Council approval of the new Strategic Plan in early 2018. Staff will return to Council in August 2018 with an update. Figure 1: City of Palo Alto Utilities Department – 2017/18 Strategic Planning Approach Attachments:  Attachment A: Strategic Plan Key Drivers Page 1 of 3 No. Policy/Regulation Impact Latest Update CITYWIDE/DEPARTMENTWIDE Sustainability and Climate Action Plan Framework for greenhouse gas (GHG) emission reductions November 2016 Palo Alto Municipal Code Palo Alto Municipal Code governing legislation. Title 2: Administrative Code includes electric and gas wholesale commodity procurement. Title 12: Public Works and Utilities January 2017 Strategic Plan 5-year Utilities strategic plan including mission, vision, performance measures and strategic initiatives. May 2015 City of Palo Alto Utilities (CPAU) Rules & Regulations Defines operating rules and responsibilities for interaction with customers October 2014 Smart Grid Smart grid assessment and utility strategic technology work plan May 2017 Legislative Guidelines Annual establishment of legislative priorities and guidelines. February 2017 UTILTY-SPECIFIC POLICIES & PLANS Long-Term Electric Acquisition Plan (LEAP) 10-year electric integrated resource plan including objectives, strategies and implementation plan for the acquisition and management of hydroelectric, renewable, and carbon neutral resources. Updated every 3 to 5 years. April 2012 Gas Utility Long-Term Plan Gas utility long-term plan including objectives, strategies and implementation plan for the acquisition and management of gas supply resources. March 2012 Water Integrated Resources Plan Assessment of new water resources and the preservation of existing supplies March 2017 Urban Water Management Plan A 20-year planning horizon to ensure adequate water supplies are available to meet existing and future water demands. May 2016 Carbon Neutral Plan Definition, strategies, resources and price cap for achieving carbon neutrality for electric supply portfolio. March 2013 Carbon Neutral Gas Plan Carbon neutral gas plan to reduce greenhouse gas emissions by natural gas November 2016 ATTACHMENT A Page 2 of 3 Electric Financial Plan Annual electric financial plan and rate proposal May 2016 Gas Financial Plan Annual gas financial plan and rate proposal May 2016 Water Financial Plan Annual water financial plan and rate proposal May 2016 Wastewater Financial Plan Annual wastewater financial plan and rate proposal May 2016 UTILITY-SPECIFIC OPERATIONS & REGULATIONS Fed OSHA 1910 for other safety orders Occupational Safety and Health Administration, employers are responsible for providing a safe and healthful workplace. Ongoing Cal OSHA Title 8 Construction and General Safety Orders Minimum standards for workplace safety and health Ongoing California Public Utilities Commission (CPUC) Public Orders – Operations & Engineering: GO 95 GO 128 GO 165 GO 174 GO95 - construction guidelines for overhead electric lines. GO 128 - construction guidelines for underground electric lines. GO 165 - inspection cycle on overhead transformers, switches, capacitors, poles, and etc. GO 174 - Rule for Electric Utility Substations including inspection cycles Ongoing California State Public Utilities Code • Part 1 Article 8: Public benefits program • Part 1 Article 14: Power source Disclosure • Part 1 Article 16: RPS Program • Section 2827: Net energy metering • Section 9621: Integrated Resource Planning Codes and legislative mandates for the procurement, management and reporting of electricity and related services Ongoing Department of Transportation Regulations Title 49 of the Code of Federal Regulations: Parts 40 and 199:workplace drug and alcohol testing (HR responsibility) Parts 190-192: natural gas pipeline regulations Federal regulations applicable to gas pipeline safety Ongoing Page 3 of 3 NERC/WECC Reliability Standards National electric distribution provider reliability standards Ongoing Safe Drinking Act Environmental Protection Agency – Safe Drinking Water Act and applicable code – Chapter 7 Ongoing California Energy Commission - Public Utilities Code California code of regulations applicable to electric and gas services providers Ongoing INDIVIDUAL PROJECTS & PROGRAMS Electric Energy Efficiency Goals 10-year efficiency goals and measures. Updated every 5 years. March 2017 Cap-and-trade program Policy for use of state allocated allowances to support GHG emission reduction of electric and gas usage to relieve the impact on ratepayers January 2015 Water, Gas, and Electric Demand-Side Management Programs Annual CPAU achievements of electric, natural gas, and water efficiency programs May 2016 Low Carbon Fuel Standard Use of Low Carbon Fuel Standard Credits to Encourage Electric Vehicles March 2016 Electrification (Fuel Switching) Greenhouse gas reduction strategies by reducing natural gas and gasoline use through electrification August 2015 Local Solar Plan Increase installation of local solar PV facilities to provide 4% of city electric needs by 2023 April 2014 Second Electric Transmission Line Construction of new secondary 60kV electric transmission line between CPA, DOE, SLAC Stanford and/or PG&E. January 2016 Fiber to the Premises Expansion of fiber network to premises to provide faster and more cost-effective broadband services May 2017 Recycled Water Collaborating with Santa Clara Valley Water District to expand the regional use of recycled water as an alternative local water supply. December 2016 City of Palo Alto (ID # 8175) City Council Staff Report Report Type: Informational Report Meeting Date: 6/19/2017 City of Palo Alto Page 1 Summary Title: Clarification to FY2017 Muni Fee Schedule for Development Services Title: Clarification to FY2017 Municipal Fee Schedule for Development Services From: City Manager Lead Department: Development Services Department Recommendation This is an informational item; no Council action is required. Executive Summary This is an Informational Report clarifying the definitions of “Project” and “Maintenance” items in building construction. This report responds to a request from the December 12, 2016 Council hearing for the Adoption of an Ordinance Amending the FY 2017 Municipal Fee Schedule to Reflect Development Services Cost of Services Study and FY 2017 Annual Adjustment. During that same meeting, Council also directed that proposed changes to Special Event fees be removed from the fee schedule prior to the second reading. After reviewing the Fee Schedule proposal and the Council’s comments, the Development Services Department and Fire Marshal have chosen not to re-introduce the “Special Event” fee in question in the proposed FY 2017 fee schedule. The Fire Marshal will continue to work with the Special Events Committee (headed by the Palo Alto Police Department) to ensure the public safety at large events, but has no control over the fees charged by the other departments involved. Background and Discussion “Projects” and “Maintenance” Definitions The California Building Code (CBC) requires building permits when any owner or owner’s agent intends to construct, enlarge, alter, repair, move demolish or change the occupancy of a building or structure or to install, enlarge, alter, repair, remove, convert or replace any City of Palo Alto Page 2 electrical, gas, mechanical or plumbing system. A permit is to be obtained from the Development Services department to ensure that the work performed is in compliance with the code. Within the CBC, there are exceptions to when a permit is required. For building permits, the following exceptions apply to structures: 1. One-story detached accessory structures used as storage sheds and playhouses and similar uses with a floor area not greater than 120 square feet, s.f. 2. Fences not over 7-feet high. 3. Retaining walls that are not over 4-feet in height measured from the bottom of the footing to the top of the wall. 4. Sidewalks and driveways not more than 30 inches above the adjacent grade and not over any basement or story below. 5. Painting, papering, tiling, carpeting, cabinets, counter tops and similar finish work. 6. Swings and other playground equipment accessory to detached one and two family dwellings. 7. Non-fixed and movable fixtures, cases, racks, counters and partitions not over 5 feet and 9 inches in height. For Electrical Residential Permits: 1. Minor repairs and maintenance, including the replacement of lamps or the connection of approved portable electrical equipment. For Gas & Mechanical Residential Permits: 1. Portable heating appliance 2. Replacement of any minor part that does not alter the equipment to make is unsafe. 3. Portable ventilation equipment 4. Portable cooling unit 5. Steam, hot or chilled water piping within any heating or cooling equipment For Plumbing Residential Permits: 1. The stopping of leaks in drains, water, waste or vent piping. 2. The clearing of stoppages or repairing leaks in pipes, valves or fixtures and the removal and reinstallation of water closets (toilets). New building construction, additions to existing buildings, remodeling kitchens and bathrooms are the most common residential projects that apply for building permits. These projects often combine the aspects of multiple construction disciplines, such as structural engineering, architectural life safety, mechanical, electrical and plumbing design and construction. Even small projects of kitchen and bathroom remodels can encompass multiple construction trades in its design and construction. City of Palo Alto Page 3 Some components, such as faucet and toilet replacements, repairing of plumbing piping and mechanical duct leaks are often performed on an individual basis. Unless performed as part of a larger project, this type of work is considered a maintenance item, which may be exempt from permit requirements. Even though some of the maintenance items do not require building permits, the work is required to comply with the applicable code and state regulations. Council had a question about the need for a permit to replace a single fixture in a bathroom or kitchen. Single fixture replacements fall in the category of maintenance and do not trigger the need for a building permit. Upon review of the building sub-permits (e.g., Plumbing, Mechanical and Electrical stand-alone permits) that were issued in 2016, there were no records of a single fixture permit, e.g., water-closet, faucet, receptacle outlet, etc., found to be issued. However, when work combines multiple construction trades, e.g. bathroom “like for like” remodels, and work that combines construction trades with minor structural alterations, e.g., kitchen remodel that relocates a bearing wall, or adds a window to an exterior wall, then the proposed work will be considered a project that does require a building permit, which includes plan review and field inspections. Fire Marshal’s Review of Special Events Staff has revisited their permitting process in response to the council’s question about the extent to which permits are needed for special events. It was council’s desire to reduce hurdles and unnecessary obstacles in the permitting of special events. While the previously proposed “Special Event” fee was removed, the Fire Department is bound by the California Fire code to permit and evaluate all tents and membrane structures having an area in excess of 400 square feet (CFC Sec. 3103.2). In response to council’s direction, staff has simplified the approval process and will simply continue using the existing tent permit fee structure from the 2016 fee schedule. Staff feels they can work with applicants to properly inspect these tents within the existing fee structure. Attachments:  City Council Action Minutes_12.12.16 CITY OF PALO ALTO CITY COUNCIL ACTION MINUTES Page 1 of 9 Special Meeting December 12, 2016 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:08 P.M. Present: Burt, DuBois arrived at 5:50 P.M., Filseth, Holman, Kniss, Scharff, Schmid, Wolbach Absent: Study Session 1. Discussion of the Challenges and Accomplishments of the City Council. Special Orders of the Day 2. This item has been removed and will not be heard. Agenda Changes, Additions and Deletions Agenda Item Number 8- 450 Bryant Street [16PLN-92]… removed from the Agenda due to the withdrawal of the Appeal by the Appellant. Minutes Approval 3. Approval of Action Minutes for the November 21 and 28, 2016 Council Meetings. MOTION: Council Member DuBois moved, seconded by Council Vice Mayor Scharff to approve the Action Minutes for the November 21 and 28, 2016 Council Meetings. MOTION PASSED: 8-0 Consent Calendar MOTION: Council Member DuBois moved, seconded by Vice Mayor Scharff to approve Agenda Item Numbers 4-7, 9-20. ACTION MINUTES Page 2 of 9 City Council Meeting Action Minutes: 12/12/16 4. Resolution 9650 Entitled, “Resolution of the Council of the City of Palo Alto Declaring the Results of the Consolidated Municipal Election Held on November 8, 2016.” 5. Approval of Site Finalization of Lot D, Located at Hamilton Avenue and Waverley Street, for the new Downtown Parking Garage, and Approval of a Contract With Watry Design, Inc. in the Amount of $1,899,591 to Provide Design and Environmental Assessment Services for the new Downtown Parking Garage, Capital Improvement Program Project, PE-15007. 6. Approval of a Contract With RossDrulisCusenbery Architecture, Inc. in the Amount of $7,007,992 to Provide Design and Environmental Assessment Services for the new Public Safety Building, Capital Improvement Program Project, PE-15001 and new California Avenue Area Parking Garage Capital Improvement Program Project, PE-18000. 7. Resolution 9651 Entitled, “Resolution of the Council of the City of Palo Alto Amending Utilities Rule and Regulation 27, Generating Facility Interconnections.” 8. 450 Bryant Street [16PLN-92]: Consideration of an Appeal and Adoption of Findings of Approval by the Director of Planning and Community Environment for Architectural Review of an Expansion to a Category 2 Historic Resource (Avenidas) and Associated Approval of a Mitigated Negative Declaration and Mitigation, Monitoring and Reporting Plan. 9. Resolution 9652 Entitled, “Resolution of the Council of the City of Palo Alto Approving the Standard Form Edison Electric Institute Master Power Purchase and Sale Agreement, With Special Terms and Conditions ("Standard Form Electric Master Agreement"), and the Standard Form Master Renewable Energy Certificate Purchase and Sale Agreement ("Standard Form Master REC Agreement").” 10. Review and Approve the Process to Solicit Applications for a Stakeholder Committee to Advise the Council Regarding a Potential Tax and Other Funding Options for Transportation Programs and Projects. 11. Approval of a Contract With Pierce Manufacturing Inc. in the Amount of $399,915 for the Purchase of a Type III Wildland Fire Engine; and Approval of Budget Appropriation Amendments in the General Fund and the Vehicle Replacement and Maintenance Fund. ACTION MINUTES Page 3 of 9 City Council Meeting Action Minutes: 12/12/16 12. Approval of a Contract With Pierce Manufacturing Inc. in the Amount of $680,666 for the Purchase of a Triple Combination 1500 GPM Fire Pumper. 13. Adoption of Annual Amendments to the Employment Agreements Between the City of Palo Alto and Council Appointed Officers (City Manager, City Attorney, City Auditor and City Clerk). 14. Approval of Amendment Number Nine to the Agreement With the County of Santa Clara for Abatement of Weeds to Change the Method for Setting Abatement Fees and Costs. 15. Approve and Authorize the City Manager to Execute Contract Amendment Number One to Contract Number C14150749 in the Amount of $138,719 for Project Consultant MIG for Additional Services; and Approve a Budget Amendment in the Capital Improvement Fund (Project PE-13003). 16. Approval of Contract Number C17166591 With Artist Susan Zoccola, LLC in the Not-to-Exceed Amount of $90,000 for the Design Development, Fabrication and Installation of Artwork Associated With the Charleston-Arastradero Corridor Project. 17. Ordinance 5403 Entitled, “Ordinance of the Council of the City of Palo Alto Approving Revisions to the Architectural Review Findings in Palo Alto Municipal Code Chapter 18.76 and Approval of an Exemption Under Sections 15061 and 15305 of the California Environmental Quality Act (CEQA) Guidelines (FIRST READING: November 14, 2016 PASSED: 7-0 Berman, Kniss absent).” 18. Approval of a Contract With Anderson Pacific Engineering Construction, Inc. in the Amount of $5,992,000 for the Matadero Storm Water Pump Station Upgrade Project, Capital Improvement Program Project SD-13003, and Adoption of a Categorical Exemption Under Sections 15302 and 15303 of the California Environmental Quality Act Guidelines (CEQA). 19. Approval of Amendment Number Four to the Palo Alto-Stanford Fire Protection Agreement With the Board of Trustees of the Leland Stanford Junior University Extending the Term to June 30, 2017 for an Additional Fee of $4,841,415, and Approval of a Related Budget Amendment Reducing the General Fund Budget Stabilization Reserve to Offset a Reduction in FY 2016 Fire Department Revenues. ACTION MINUTES Page 4 of 9 City Council Meeting Action Minutes: 12/12/16 20. Approval of: 1) a Professional Services Agreement With RMC Water and Environment for Development of a Recycled Water Strategic Plan in a Total Amount Not-to-Exceed $2,000,000; and 2) a Cost Sharing Agreement With the Santa Clara Valley Water District Under Which the District Will Fund 90 Percent of Strategic Plan Consultant Costs; and 3) an Amendment to the Fiscal Year 2017 Budget Appropriation for the Wastewater Treatment Fund. MOTION PASSED: 8-0 Action Items 21. PUBLIC HEARING: Adoption of two Ordinances to Update the City's Below Market Rate (BMR) Housing Program as Recommended by the Finance Committee: (1) Repealing Municipal Code Section 16.47 (Non-residential Projects) and 18.14 (Residential Projects) and Adding a new Section 16.65 (Citywide Affordable Housing Requirements) and; (2) Establishing Housing Impact Fees and Housing In-Lieu Fees for Residential, Nonresidential, and Mixed Use Developments. The Proposed Ordinances are Exempt From the California Environmental Quality Act (CEQA) per Sections 15378(b)(4), 15305 and 15601(b)(3) of the State CEQA Guidelines. The BMR Ordinance and Fees Were Recommended for Adoption by the Planning and Transportation Commission on November 30, 2016. Public Hearing opened at 7:58 P.M. Public Hearing closed at 8:25 P.M. MOTION: Council Member DuBois moved, seconded by Council Member Holman to: A. Adopt an Ordinance updating the City’s Below Market Rate (BMR) Housing Program by repealing Municipal Code Section 16.47 (non-residential projects) and 18.14 (residential projects) and adding a new Section 16.65 (Citywide Affordable Housing Requirements); and B. Adopt an Ordinance establishing housing impact fees and housing in-lieu fees for residential, nonresidential, and mixed use developments; and C. Find these actions exempt from the California Environmental Quality Act (CEQA) per Sections 15378(b)(4), 15305 and 15601(b)(3) of the State CEQA Guidelines. ACTION MINUTES Page 5 of 9 City Council Meeting Action Minutes: 12/12/16 AMENDMENT: Council Member Schmid moved, seconded by Vice Mayor Scharff to add to the Motion, “accept the Planning and Transportation Commissions’ recommendation that Market Rate Rental Housing be charged a fee of $20 per square foot.” AMENDMENT PASSED: 6-2 Filseth, Holman no AMENDMENT: Vice Mayor Scharff moved, seconded by Council Member Kniss to add to the Motion, “retain Hotel fee at $20.37 per square foot.” AMENDMENT FAILED: 4-4 Burt, DuBois, Holman, Schmid no AMENDMENT: Council Member Wolbach moved, seconded by Vice Mayor Scharff to add to the Motion, “lower the fee for Office/R&D to $40 per square foot.” AMENDMENT FAILED: 3-5 Kniss, Scharff, Wolbach yes AMENDMENT: Council Member Wolbach moved, seconded by Vice Mayor Scharff to add to the Motion, “set the fee for market rate single family attached to $35 per square foot with a reevaluation after one year.” AMENDMENT FAILED: 2-6 Scharff, Wolbach yes AMENDMENT: Council Member Wolbach moved, seconded by Council Member Kniss to add to the Motion, “retain the fee for market rate single family attached and market rate single family detached.” AMENDMENT FAILED: 2-6 Kniss, Wolbach yes MOTION AS AMENDED RESTATED: Council Member DuBois moved, seconded by Council Member Holman to: A. Adopt an Ordinance updating the City’s Below Market Rate (BMR) Housing Program by repealing Municipal Code Section 16.47 (non- residential projects) and 18.14 (residential projects) and adding a new Section 16.65 (Citywide Affordable Housing Requirements); and B. Adopt an Ordinance establishing housing impact fees and housing in- lieu fees for residential, nonresidential, and mixed use developments; and C. Find these actions exempt from the California Environmental Quality Act (CEQA) per Sections 15378(b)(4), 15305 and 15601(b)(3) of the State CEQA Guidelines; and ACTION MINUTES Page 6 of 9 City Council Meeting Action Minutes: 12/12/16 D. Accept the Planning and Transportation Commissions’ recommendation that Market Rate Rental Housing be charged a fee of $20 per square foot. MOTION AS AMENDED PASSED: 5-3 Kniss, Scharff, Wolbach no 22. PUBLIC HEARING: Adoption of an Ordinance Amending the FY 2017 Municipal Fee Schedule to Reflect Development Services Cost of Services Study and FY 2017 Annual Adjustment. Public Hearing opened at 9:35 P.M. Public Hearing closed at 9:41 P.M. MOTION: Vice Mayor Scharff moved, seconded by Mayor Burt to adopt an Ordinance to update the Fiscal Year 2017 Municipal Fee Schedule to adjust Development Services Municipal Fees, based on the completion of a Cost of Services Study and adjusted by the annual inflator applied to Municipal Fees from Fiscal Year 2016 to Fiscal Year 2017 with the exception of Fees that could impact community events. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct Staff to return to the Finance Committee with a definition of a ‘Project’ versus maintenance.” MOTION RESTATED: Vice Mayor Scharff moved, seconded by Mayor Burt to adopt an Ordinance to update the Fiscal Year 2017 Municipal Fee Schedule to adjust Development Services Municipal Fees, based on the completion of a Cost of Services Study and adjusted by the annual inflator applied to Municipal Fees from Fiscal Year 2016 to Fiscal Year 2017 with the exception of Fees that could impact community events. Direct Staff to return to the Finance Committee with a definition of a “Project” versus maintenance. MOTION AS AMENDED PASSED: 8-0 23. Resolution 9653 Entitled, “Resolution of the Council of the City of Palo Alto, Colleagues’ Memo Reaffirming Palo Alto’s Commitment to a Diverse, Supportive, Inclusive, and Protective Community.” MOTION: Council Member Holman moved, seconded by Council Member Wolbach to adopt a Resolution affirming Palo Alto’s commitment to a diverse, supportive, inclusive and protective community including the addition to Section 1, Paragraph Four, “living, working, and visiting” after “privileges of everyone.” ACTION MINUTES Page 7 of 9 City Council Meeting Action Minutes: 12/12/16 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “refer the subject matter of this Memorandum to the Human Relations Commission, for recommendation of implementation measures and additional elements that should be considered by the Council in the future.” (New Part B) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion Part A, “and” with “or.” MOTION AS AMENDED RESTATED: Council Member Holman moved, seconded by Council Member Wolbach to: A. Adopt a Resolution affirming Palo Alto’s commitment to a diverse, supportive, inclusive and protective community including the addition to Section 1, Paragraph Four, “living, working, or visiting” after “privileges of everyone;” and B. Refer the subject matter of this Memorandum to the Human Relations Commission, for recommendation of implementation measures and additional elements that should be considered by the Council in the future. MOTION AS AMENDED PASSED: 8-0 24. Colleagues’ Memo Regarding Support Funding for the Barron Park Donkey Project. MOTION: Council Member Holman moved, seconded by Council Member Kniss to: A. Direct and authorize the City Manager to prepare and execute a Memorandum of Agreement with Acterra to make an initial grant of $10,000 for donkey-related expenses, and, upon successful private fundraising by the Barron Park Donkey Project of $10,000, provide an additional City grant of $5,000; and B. Amend the Fiscal Year 2017 Budget Appropriation Ordinance for the General Fund budget by: i. Increasing the Community Services Department appropriation for grants and subsidies in the amount of $15,000; and ii. Decreasing the Non-Departmental City Council Contingency appropriation in the amount of $15,000. MOTION PASSED: 8-0 ACTION MINUTES Page 8 of 9 City Council Meeting Action Minutes: 12/12/16 Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements Mayor Burt announced that the City received a Certificate of Recognition from the Silicon Valley Council of Nonprofits recognizing Palo Alto as the 2016 Change Maker of the Year for the City’s advocacy regarding Buena Vista Mobile Home Park. Council Member DuBois reported his attendance as well as the attendance of Council Members Filseth and Wolbach at the Council Town Hall meeting last week in the College Terrace neighborhood. The event was well attended. He announced another Council Town Hall meeting, taking place on Wednesday night in the Barron Park neighborhood. Mayor Burt reported his participation in a panel at the American Water Summit in Florida. Other panelists included the Mayor of Flint, Michigan. Summit participants were shocked by the high price of water in Palo Alto, but also impressed by the numerous initiatives funded by the revenue generated by this price. He reported his attendance at the East Palo Alto Reorganization. The East Palo Alto City Council expressed it sincere appreciation for Palo Alto’s efforts to transfer a portion of Palo Alto’s Individual Supply Guarantee (water) to East Palo Alto. James Keene, City Manager expressed his appreciation to the Council for their countless hours dedicated to the City and their efforts to care for both the current and future Palo Alto community. Closed Session 25. CONFERENCE WITH CITY ATTORNEY- EXISTING LITIGATION Subject: City of Palo Alto v. Public Employee Relations Board (PERB) (International Association of Fire Fighters, Local 1319, Real Party), Cal Court of Appeal No. H041407, on Appeal From PERB Case No. SF-CE-869-M Authority: Government Code Section 54956.9(d)(1) CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees Pursuant to Merit System Rules and Regulations (James Keene, Molly Stump, Rumi Portillo, Eric Nickel, Dennis Burns) Employee Organizations: Palo Alto Fire Chiefs’ Association; International Association of Fire Fighters (IAFF), Local 1319; Palo Alto ACTION MINUTES Page 9 of 9 City Council Meeting Action Minutes: 12/12/16 Police Officers’ Association (PAPOA); Palo Alto Police Managers’ Association (PAPMA) Government Code Section 54957.6(a). MOTION: Vice Mayor Scharff moved, seconded by Council Member Holman to go into Closed Session. MOTION PASSED: 8-0 Council went into Closed Session at 11:06 P.M. Council returned from Closed Session at 11:44 P.M. Mayor Burt announced that the Council voted 8-0 to authorize the City Attorney to file a Petition for Review with the California Supreme Court in the matter of City of Palo Alto v. Public Employee Relations Board (PERB)(International Association of Fire Fighters, Local 1319, Real Party), Cal Court of Appeal No. H041407, on Appeal From PERB Case No. SF-CE-869-M. Adjournment: The meeting was adjourned at 11:45 P.M.