Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2017-06-27 City Council Agenda Packet
City 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. Tuesday, June 27, 2017 Special Meeting Council Chambers 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 11 days preceding the meeting. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. 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 Agenda Changes, Additions and Deletions City Manager Comments 5:00-5:10 PM Oral Communications 5:10-5:25 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Minutes Approval 5:25-5:30 PM 1. Approval of Action Minutes for the June 12, 2017 Council Meeting Consent Calendar 5:30-5:35 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 2. Approval of Seven On-call Consulting Services Contracts Totaling $1.9 Million Over a Three-year Term (Approximately $630,000 per Year) to Provide Continued Support for Application Processing, Environmental Review, Historic Evaluations, and Long Range Planning Projects in the Department of Planning & Community Environment 2 June 27, 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. 3. Approval of a Contract With Graham Contractors, Inc. in the Amount of $1,386,065 for the FY 2018 Preventive Street Maintenance CIP Project PE-86070, Thermoplastic Lane Marking and Striping CIP Project PO-11001, and University Avenue Parking Improvements CIP Project PF-14003, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed $138,606 in Total Value 4. Approval of a Purchase Order With Folsom Lake Ford in the Amount of $304,651 for the Purchase of Eight 2017 Ford Explorer Police Patrol Vehicles 5. Approval of a Contract With JJR Construction, Inc. in the Amount of $655,651 for the FY 2017 University Circle Concrete Repair, Capital Improvements Program Project PE-86070, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to- Exceed $65,565 in Total Value 6. Approval of Contract Number C17161815 With Granite Construction Company in the Amount of $8,649,191 for the Construction of Neighborhood Traffic Safety and Bicycle Boulevard Improvements Along; Amarillo Avenue, Bryant Street, East Meadow Drive, Montrose Avenue, Moreno Avenue, Louis Road, Palo Alto Avenue, and Ross Road, Consistent With Approved Concept Plans and the City's Adopted Bicycle + Pedestrian Transportation Plan and Approval of an Appropriation Budget Amendment in the Fiscal Year 2018 Capital Improvement Fund 7. Approval of Contract Number C18167839 With Anderson Pacific Engineering Construction, Inc. in the Total Amount of $1,129,700 to Construct the Secondary Clarifiers No. 3 and No. 5 Mechanisms Replacement Project at the Regional Water Quality Control Plant - Capital Improvement Program Project WQ-80021, and Authorization for the City Manager to Negotiate and Execute Change Orders Not-to- Exceed $102,700 in Total Value 8. Approval of a Contract With SimplexGrinnell, Inc. in an Amount Not- to-Exceed $250,185 for the Repair of the City Hall Fire Sprinkler System, and Authorization for the City Manager to Negotiate and Execute Change Orders in an Amount Not-to-Exceed $17,235 in Total Value 9. Authorize the City Manager to Execute an Agreement Between the City of Palo Alto and Intermedix, for Ambulance Service Billing, for a One- year Period Through September 30, 2018, With the Option to Renew 3 June 27, 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. for Four Additional One-Year Periods Through September 30, 2022 for the Amount of $160,000 per Year, Not-to-Exceed $800,000 10. Approval of Contract Number C17168057 With Carbon Activated Corporation in the Total Amount of $105,809 for the Installation and Supply of Anthracite and Sand for the Dual Media Filter Project at the Regional Water Quality Control Plant, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to- Exceed $9,619 in Total Value 11. Approval of Agreement No. C17168334 Between the City of Palo Alto and the Midpeninsula Community Media Center, Inc. for Cablecasting and Web Streaming Services From July 1, 2017 Through June 30, 2018, in the Amount of $135,000, With two One-year Options to Extend (for a Potential 3 Year Total Not-to-Exceed Amount of $405,000) 12. Approval of a Purchase Order With Owen Equipment in the Amount of $477,330 for the Purchase of a 2017 Freightliner Combination Single Engine Sewer Cleaner and Approve Budget Amendments in the Storm Drain Fund and Vehicle Replacement and Maintenance Fund 13. Adoption of a Resolution Summarily Vacating Public Utility Easement at 144 Kellogg Avenue 14. Adoption of a Resolution Determining the Proposed Calculation of the Appropriations Limit for Fiscal Year 2018 15. Adoption of Fiscal Year 2018 Investment Policy 16. SECOND READING: Adoption of an Ordinance Requiring Expedited Permitting Procedures for Electric Vehicle Charging Stations (AB 1236) (FIRST READING: June 12, 2017 PASSED 9-0) 17. QUASI-JUDICIAL: 305 N. California Avenue [17PLN-00015]: Request for a Hearing on the Director's Tentative Denial of a Conditional Use Permit for Operation of the new Mozart School of Music at an Existing Church Facility. Environmental Assessment: in Accordance With the California Environmental Quality Act (CEQA) Guidelines Section 15270 CEQA Does not Apply to Projects Which a Public Agency Disapproves. Zoning District: R-1 (10,000) 18. Approval of a Contract With Canopy for $395,130 for a Three-year Term to Support Palo Alto's Urban Forestry Programs, Assist With Implementation of Programs Within the Urban Forest Master Plan, 4 June 27, 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. Improve the Canopy in South Palo Alto, and Educate the Public About Trees Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 5:35-10:00 PM 19. PUBLIC HEARING: Adoption of Budget Ordinance for Fiscal Year (FY) 2018, Including Adoption of Operating and Capital Budgets and Municipal Fee Schedule; Adoption of the Following Resolutions: 1) Approving the FY 2018 Electric Financial Plan; 2) Adopting an Electric Rate Increase and Amending Electric Rate Schedules E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU, and E-14; 3) Approving the FY 2018 Gas Utility Financial Plan; 4) Approving the FY 2018 Wastewater Collection Utility Financial Plan; 5) Adopting a Dark Fiber Rate Increase and Amending Dark Fiber Rate Schedules EDF-1 and EDF-2; 6) Approving the FY 2018 Water Utility Financial Plan; and 7) Amending Resolution 9671 to Modify Permit Fees for the Downtown Residential Preferential Parking (RPP) Program and Finding the Action Exempt From the California Environmental Quality Act; and Amending Salary Schedules for the Management and Professional Group, the Services Employees International Union, and the Limited Hourly Group 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. 5 June 27, 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 Standing Committee Meetings Sp. Rail Committee Meeting June 28, 2017 WILL BE PRODUCED ON JUNE 22, 2017 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Third Quarter FY 2017 Financial Report Semiannual Update on the Status of Capital Improvement Program Projects Storm Water Management Oversight Committee Recruitment Flyer Public Letters to Council Set 1 Set 2 CITY OF PALO ALTO OFFICE OF THE CITY CLERK June 27, 2017 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the June 12, 2017 Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: Attachment A: 06-12-17 DRAFT Action Minutes (DOCX) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 10 Special Meeting June 12, 2017 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:12 P.M. Present: DuBois, Filseth, Fine, Holman, Kniss, Kou, Scharff, Tanaka, Wolbach Absent: Agenda Changes, Additions and Deletions None. Special Orders of the Day 1. Appointment of Three Candidates to the Library Advisory Commission for Terms Ending May 31, 2020. First Round of voting for three positions on the Library Advisory Commission with terms ending May 31, 2020: Voting For Doug Hagan: DuBois, Filseth, Fine, Holman, Kniss, Kou, Scharff, Tanaka, Wolbach Voting For Amy Murphy: DuBois, Filseth, Fine, Holman, Kniss, Kou, Scharff, Tanaka, Wolbach Voting For Brigham Wilson: DuBois, Filseth, Fine, Holman, Kniss, Kou, Scharff, Tanaka, Wolbach Beth Minor, City Clerk announced that Doug Hagan with 9 votes, Amy Murphy with 9 votes and Brigham Wilson with 9 votes were appointed to the Library Advisory Commission. Minutes Approval 2. Approval of Action Minutes for the May 22, 2017 Council Meeting. DRAFT ACTION MINUTES Page 2 of 10 City Council Meeting Draft Action Minutes: 6/12/17/17 MOTION: Council Member Wolbach moved, seconded by Mayor Scharff to approve the Action Minutes for the May 22, 2017 Council Meeting. MOTION PASSED: 9-0 Consent Calendar MOTION: Council Member Kou moved, seconded by Council Member Holman, third by Council Member XX to pull Agenda Item Number 8- QUASI- JUDICIAL: 260 California Avenue [16PLN-00289]… to be heard on June 27, 2017. MOTION FAILED DUE TO THE LACK OF A THIRD MOTION: Council Member Tanaka moved, seconded by Council Member XX, third by Council Member XX to pull Agenda Item Number 6- Approval of the Renewal of a Public-Private Partnership… MOTION FAILED DUE TO THE LACK OF A SECOND MOTION: Council Member Tanaka moved, seconded by Council Member XX, third by Council Member XX to pull Agenda Item Number 3- Approval of a Contract With AECOM… MOTION FAILED DUE TO THE LACK OF A SECOND Council Members DuBois, Holman, and Kou registered no votes on Agenda Item Number 8- QUASI-JUDICIAL: 260 California Avenue [16PLN-00289]… Council Member Tanaka registered no votes on Agenda Item Numbers 3- Approval of a Contract With AECOM… and 6- Approval of the Renewal of a Public-Private Partnership… MOTION: Mayor Scharff moved, seconded by Vice Mayor Kniss to approve Agenda Item Numbers 3-8. 3. Approval of a Contract With AECOM in the Amount of $330,000 for the Development of the Baylands Comprehensive Conservation Plan (PG-17000). 4. Approval of Amendment Number 2 to Contract Number S15155738 Between the City of Palo Alto and American Reprographics Company, LLC for Document Scanning Services to Increase Costs by $414,726 for a Total Amount Not-to-Exceed $847,961 and Amend Other Terms and Conditions. DRAFT ACTION MINUTES Page 3 of 10 City Council Meeting Draft Action Minutes: 6/12/17/17 5. Adoption of an Ordinance Requiring Expedited Permitting Procedures for Electric Vehicle Charging Stations (AB 1236). 6. Approval of the Renewal of a Public-Private Partnership Agreement Between the City of Palo Alto and TheatreWorks, Palo Alto Players and West Bay Opera for the use of the Lucie Stern Community Theatre. 7. Approval of a Contract With Tandem Creative in the Amount of $90,000 for Graphic Design and Printing for the Quarterly Production of the Enjoy! Catalog Classes and Activities Guide and Annual Summer Camp Guide. 8. QUASI-JUDICIAL: 260 California Avenue [16PLN-00289]: Request for a Hearing on the Tentative Approval of a Conditional Use Permit to Allow the Sale of Beer, Wine, and Liquor in Conjunction With a Restaurant With an Outdoor Seating Area and Deferral of Director's Action to the City Council of an Architectural Review Application Pursuant to Palo Alto Municipal Code (PAMC) Section 18.40.170. Environmental Assessment: Exempt From the Provisions of the California Environmental Quality Act (CEQA) per Guideline Section 15301 (Existing Facilities). MOTION FOR AGENDA ITEM NUMBERS 3 AND 6 PASSED: 8-1 Tanaka no MOTION FOR AGENDA ITEM NUMBERS 4-5, 7 PASSED: 9-0 MOTION FOR AGENDA ITEM NUMBER 8 PASSED: 6-3 DuBois, Holman, Kou no Action Items 9. PUBLIC HEARING: Resolution 9682 Entitled, “Resolution of the Council of the City of Palo Alto Confirming the 2017-18 Report of the Palo Alto Downtown Business Improvement District Advisory Board and Levying Assessments for Fiscal Year 2018 on Businesses in the Downtown Business Improvement District.” Public Hearing opened and closed without public comment at 6:12 P.M. MOTION: Mayor Scharff moved, seconded by Vice Mayor Kniss to adopt a Resolution confirming the report of the Advisory Board and levying an assessment for Fiscal Year 2018 on the Downtown Palo Alto Business Improvement District. DRAFT ACTION MINUTES Page 4 of 10 City Council Meeting Draft Action Minutes: 6/12/17/17 MOTION PASSED: 9-0 10. PUBLIC HEARING / QUASI-JUDICIAL: Resolution 9683 Entitled, “744- 748 San Antonio Avenue [15PLN-00314]: Review and Certification of a Final Environmental Impact Report (EIR), Adoption of California Environmental Quality Act (CEQA) Findings Including a Statement of Overriding Considerations, Adoption of a Mitigation Monitoring and Reporting Plan, and Consideration of the Applicant’s Request for Approval of a Major Architectural Review to Allow the Demolition of Three Existing Buildings at 744 and 748 San Antonio Avenue and Construction of two Five-Story Hotels (Courtyard by Marriott With 151 Rooms and AC by Marriott With 143 Rooms). The Site Will Include Surface and two Levels of Basement Parking, requiring approval of a parking reduction. A Draft EIR was Circulated for Public Comment From March 27, 2017 to May 10, 2017 and a Final EIR was Provided to Agencies and Commenters on May 31, 2017. On June 1, 2017, the Architectural Review Board Recommended Approval of the Project.” Public Hearing opened at 6:59 P.M. Public Hearing closed at 7:55 P.M. MOTION: Council Member Fine moved, seconded by Vice Mayor Kniss to: A. Adopt a Resolution certifying the Final Environmental Impact Report, adopting California Environmental Quality Act (CEQA) findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program; and B. Adopt a Record of Land Use Action approving an Architectural Review application, including a parking reduction, based on findings and subject to conditions of approval as recommended by the Architectural Review Board on June 1, 2017. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONER to add to the Motion, “direct Staff to work with the Applicant to strengthen the Transportation Demand Management (TDM) measures which shall include shuttle service to the San Francisco International Airport (SFO).” (New Part C) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONER to add to the Motion, “add to Conditions of Approval, 40. Logistics Plan, address queueing and idling.” (New Part D) DRAFT ACTION MINUTES Page 5 of 10 City Council Meeting Draft Action Minutes: 6/12/17/17 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONER to add to the Motion, “add to Conditions of Approval, require the Lighting Plan and signage to return to the Architectural Review Board sub-committee to address light spilling away from the building.” (New Part E) AMENDMENT: Council Member Holman moved, seconded by Council Member DuBois to add to the Motion, “add to Conditions of Approval, limit underground parking to one level.” (New Part F) AMENDMENT PASSED: 8-1 Fine no AMENDMENT: Council Member Wolbach moved, seconded by Council Member Holman to add to the Motion, “direct the Applicant to direct half of the money saved from reducing underground parking to one level towards additional transportation mitigation measures.” (New Part G) AMENDMENT PASSED: 7-2 Fine, Tanaka no INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONER to add to the Motion Part G, “with preference to relieving congestion on San Antonio Road.” MOTION AS AMENDED RESTATED: Council Member Fine moved, seconded by Vice Mayor Kniss to: A. Adopt a Resolution certifying the Final Environmental Impact Report, adopting California Environmental Quality Act (CEQA) findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program; and B. Adopt a Record of Land Use Action approving an Architectural Review application, including a parking reduction, based on findings and subject to conditions of approval as recommended by the Architectural Review Board on June 1, 2017; and C. Direct Staff to work with the Applicant to strengthen the Transportation Demand Management (TDM) measures which shall include shuttle service to the San Francisco International Airport (SFO); and D. Add to Conditions of Approval, 40. Logistics Plan, address queueing and idling; and DRAFT ACTION MINUTES Page 6 of 10 City Council Meeting Draft Action Minutes: 6/12/17/17 E. Add to Conditions of Approval, require the Lighting Plan and signage to return to the Architectural Review Board sub-committee to address light spilling away from the building; and F. Add to Conditions of Approval, limit underground parking to one level; and G. Direct the Applicant to direct half of the money saved from reducing underground parking to one level towards additional transportation mitigation measures with preference to relieving congestion on San Antonio Road. MOTION AS AMENDED PASSED: 8-1 Kou no Council took a break from 9:47 P.M. to 9:54 P.M. 11. Comprehensive Plan Update: Review of the Introduction, Governance, and Implementation Sections Recommended by the Citizens Advisory Committee and Referral of the Entire Draft Comprehensive Plan Update to the Planning & Transportation Commission. MOTION: Mayor Scharff moved, seconded by Council Member Filseth to: A. Refer the draft Introduction, Governance, Implementation and Glossary Sections to the Planning and Transportation Commission; and B. Refer the Transportation (with the exception of Programs T1.2.1 and T.1.24.1), Land Use, Natural Environment, Safety, and Business & Economics Elements to the Planning and Transportation Commission; and C. Refer the entire draft of the Comprehensive Plan Update to the Planning and Transportation Commission (PTC) for review and recommendation within 90 days of receipt of an updated draft document reflecting the Council’s direction. AMENDMENT: Council Member DuBois moved, seconded by Council Member Holman to replace in the Motion Part C, “90 days of receipt” with “120 days from September 1.” AMENDMENT RESTATED: Council Member DuBois moved, seconded by Council Member Holman to replace in the Motion Part C, “90 days” with “120 days.” AMENDMENT FAILED: 3-6 DuBois, Holman, Kou yes DRAFT ACTION MINUTES Page 7 of 10 City Council Meeting Draft Action Minutes: 6/12/17/17 AMENDMENT: Council Member DuBois moved, seconded by Council Member Holman to add to the Motion, “restore the original language in Goal G-5.” AMENDMENT FAILED: 4-5 DuBois, Filseth, Holman, Kou yes AMENDMENT: Council Member Holman moved, seconded by Council Member XX to add to the Motion, “remove from Policy L-7.2 ‘or replacement of features in kind.’” AMENDMENT FAILED DUE TO THE LACK OF A SECOND AMENDMENT: Council Member Tanaka moved, seconded by Council Member XX to add to the Motion, “add to Governance Element, Framework for Local Decision-Making, Budget Section, Paragraph 3, ‘at a transaction level’ after ‘and revenues.’” AMENDMENT RESTATED: Council Member Tanaka moved, seconded by Council Member XX to add to the Motion, “the City should consider putting its data at a transaction level.” AMENDMENT RESTATED AND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONER to add to the Motion, “direct Staff to create a Program to consider putting its data at a transaction level on the Open Data Portal.” (New Part D) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONER to add to the Motion, “replace in Policy T-1.5, ‘of fleets of autonomous, shared, electric motor’ with ‘autonomous, shared, clean.’” (New Part E) MOTION AS AMENDED RESTATED: Mayor Scharff moved, seconded by Council Member Filseth to: A. Refer the draft Introduction, Governance, Implementation and Glossary Sections to the Planning and Transportation Commission; and B. Refer the Transportation (with the exception of Programs T1.2.1 and T.1.24.1), Land Use, Natural Environment, Safety, and Business & Economics Elements to the Planning and Transportation Commission; and C. Refer the entire draft of the Comprehensive Plan Update to the Planning and Transportation Commission (PTC) for review and recommendation within 90 days of receipt of an updated draft document reflecting the Council’s direction; and DRAFT ACTION MINUTES Page 8 of 10 City Council Meeting Draft Action Minutes: 6/12/17/17 D. Direct Staff to create a Program to consider putting its data at a transaction level on the Open Data Portal; and E. Replace in Policy T-1.5, “of fleets of autonomous, shared, electric motor” with “autonomous, shared, clean.” MOTION AS AMENDED PASSED: 9-0 Inter-Governmental Legislative Affairs None. Council Member Questions, Comments and Announcements Council Member Holman inquired whether there is a need for a City Council Budget Hearing on June 26, 2017. Mayor Scharff advised that he will discuss this possibility with the City Manager. Council Member Holman commented that the City Council frequently meets on the fourth Monday of the month. Council Member Tanaka inquired regarding the submittal deadline for Council Member Questions pertaining to Agenda Items. James Keene, City Manager noted that the 5:00 P.M. deadline on the Wednesday preceding Council meetings allows Staff time to coordinate a response to such questions in a timely manner. Council Member Tanaka stated that he was not previously informed of the 5:00 P.M. portion of the deadline. Mr. Keene commented that recent Council Member Questions have required more than the typical one hour limit of Staff time to address. Council Member Tanaka commented that he submits questions in order to reduce the amount of time Council spends on each Agenda Item during Council meetings. Mr. Keene suggested a discussion of capacity be scheduled to ensure expectations are met. This guidance should come from the City Council. Mayor Scharff shared that he too was not aware of the 5:00 P.M. deadline but felt that this information has now been communicated to the City Council. DRAFT ACTION MINUTES Page 9 of 10 City Council Meeting Draft Action Minutes: 6/12/17/17 Mr. Keene advised that this deadline was put in place when the City transitioned to producing Council Packets eleven days prior to Council meetings. The earlier question submittal deadline allows Staff to respond in the Council Packet produced each Thursday. Mayor Scharff inquired how Staff prioritized its time in responding the Council Member Questions and whether Council Members should prioritize their questions. Mr. Keene suggested this topic be discussed by the Policy and Services Committee. Council Member Holman wondered when Council Members can ask questions pertaining to Agenda Items delivered “Late Packet.” She shared that the Policy and Services Committee typically reviews the City Council Procedures and Protocols Handbook annually. She recalled that this did not take place in 2016 and stated that this review must take place in 2017. Mr. Keene suggested this discussion cover effectively informing the City Council, and the Staff’s ability to effectively support the City Council fairly and equally both to understand what the City Council needs and the capacity of Staff to support these needs. Council Member Holman requested confirmation that scheduling this topic with the Policy and Services Committee is managed by the Policy and Services Committee Chair and the City Manager. Mayor Scharff confirmed this procedure and that this discussion will be scheduled. Vice Mayor Kniss attended the Air & Waste Management Association Conference in Pittsburg, PA last week. The topic of climate change was discussed at length. She shared that numerous attendees from around the country do not believe in climate change. One attendee from Oklahoma discussed the challenges of complying with government regulations. She encouraged Council Members to attend similar conferences outside of the Bay Area to get a better understanding of different ways of thinking and understand the support of the current United States President. Her attendance at the Conference was sponsored by the Bay Area Air Quality Management District. Council Member Wolbach requested the Council meeting be adjourned in honor of former Children’s Theater Director, Pat Briggs. DRAFT ACTION MINUTES Page 10 of 10 City Council Meeting Draft Action Minutes: 6/12/17/17 Council Member DuBois shared that he reserves time for Council meetings every Monday and that Tuesday and Wednesday Council meetings can be a challenge. He requested Council meetings be scheduled on Mondays whenever possible. Council Member Fine shared that the Golden State Warriors won the National Basketball Association Finals during the Council meeting. Mayor Scharff announced the Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG)’s staff will merge effective July 1, 2017. Adjournment: The meeting was adjourned in honor of Pat Briggs at 11:10 P.M. City of Palo Alto (ID # 7909) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Award of PCE On-Call Contracts Title: Approval of Seven On-Call Consulting Services Contracts Totaling $1.9 Million over a Three Year Term (Approximately $630,000 per Year) to Provide Continued Support for Application Processing, Environmental Review, Historic Evaluations, and Long Range Planning Projects in the Department of Planning & Community Environment From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute the following contracts totaling $1.9M over a three-year term (approximately $630,000 per year) for staff support associated with application processing, environmental review, and long range planning projects, with the understanding that the use of the contracts must be consistent with the funding available in the adopted budget(s): a. Contract C18168697 with Arnold Mammarella Architecture and Consulting for an amount not to exceed $750,000 (Individual Reviews, architectural consulting, plan check, project management) ; b. Contract C18168707 with Metropolitan Planning Group for an amount not to exceed $500,000 (project management, large projects, Individual Reviews); c. Contract C18168709 with Placeworks for an amount not to exceed $100,000 (long range planning); d. Contract C18167468 with Michael Baker International for an amount not to exceed $250,000 (project management, plan check); e. Contract C18168713 with ICF for an amount not to exceed $100,000 (environmental); f. Contract C18168714 with Rincon for an amount not to exceed $100,000 (environmental); g. Contract C18168715 with Dudek for an amount not to exceed $100,000 (environmental), and; City of Palo Alto Page 2 2. Authorize the City Manager to amend the contracts above, as needed over the course of the term of the contracts, as long as the cumulative total of all the contracts listed above does not exceed $1.9 million. Executive Summary The Planning and Community Environment Department (PCE) routinely uses “on-call” consultants to secure specific expertise and to help with fluctuations in the day-to-day workload. The current contracts are now expiring. The department released a Request for Proposals (RFP) to create an “on-call” consultant list for planning and environmental support services, allowing the Department to access specific expertise and consultant support on an as needed basis. The department intentionally awards contracts to a group of companies to provide a broad range of available expertise and to provide the City with more competitive pricing on a project-by-project basis. The majority of the cost for on-call contracts is offset by fees for service, as listed in the Municipal Fee Schedule. Very few projects, like long range planning work, will not be covered by fees. The department does not expect to utilize the full, combined contract capacity of all these contracts, but finds it beneficial to have a broad pool of consultants and a high enough contract value to direct the work where it makes the most sense. As contracts are utilized and staff learns more about the capabilities and performance of each firm, assignments are based upon the department’s experience and the cost to deliver the service. This results in heavy use of some consultants and very light use of others, all within the department’s approved budget. Staff now requests Council to authorize the City Manager or his designee to execute the attached three-year contracts with the selected consultants. Amounts proposed for each contract are based on staff’s experience with each of these firms and the expected need for their type of expertise. The firms with the broadest range of experience with the City are proposed at a higher amount. Contracts with firms that are new to the Planning and Community Environment Department are also included, expanding the expertise available and protecting the City from becoming closely tied to one or two particular firms. Background PCE has historically maintained contracts with several consultants to provide the various on-call services. The department relies on the use of on-call service providers to meet performance objectives and to address fluctuations in workload related to development activity (applications submitted) and additions to the department’s work program. Consultants are primarily used for residential architectural reviews, project reviews, environmental evaluations, plan checks for building permits, and historic evaluations, all of which involve the collection of fees that offset the costs of the contracts that are used to support the work. Consultants can also be used for long range planning work that is not fee-supported. Discussion City of Palo Alto Page 3 From time to time the Planning Division requires assistance from consultants with environmental review or other professional planning expertise. PCE has been using the services of contract planners to access specific skills and as a way to increase the Department’s capacity when workloads are heavy or staff vacancies exist. The Department’s existing contracts are expiring, although staff anticipates that the need for consultant planning services to support day-to-day Department activities will remain strong. New contracts are needed to ensure continued service delivery that is efficient, reliable, accurate, responsive, and cost-effective. Consultants are used as project managers to manage applications for planning entitlements or as independent technical consultants. These activities are supported by fees listed in the Municipal Fee Schedule. The City issued an RFP on February 23, 2017 to identify consultants with extensive experience working with public entities to provide expertise in project planning and environmental review services. Proposals were due to the City by March 23, 2017. Fourteen proposals were received. Based on the department’s evaluation of proposals, seven were selected for the provision of planning and environmental services. The department selects a pool of on-call consultants in order to keep selected firms competitive in the areas of capabilities and pricing. Contract limits are intentionally high, allowing staff to utilize the best consulting firm for each project but few of these contracts will be used to their capacity. On-call contracts are only utilized when the need arises and sufficient budget exists to cover the costs. The department does not expect to utilize the full, combined contract capacity of these on-call contracts, but finds it beneficial to have a broad pool of consultants from which to choose. Appropriate assignments can be made quickly, avoiding delays for project applicants. As staff learns more about the capabilities and performance of each firm, decisions on which consultant to use for a specific project are based upon the department’s experience with each firm and the cost to deliver the service. Selected consultants are: Arnold Mammarella Architecture and Consulting, Metropolitan Planning Group, Placeworks, Michael Baker International, ICF, Rincon, and Dudek. Executing contracts with the firms selected as a result of the RFP will create an “on call” list of consultants that can be used on short notice when the Department’s workload requires their assistance. This will allow Department staff to quickly access the professional skills and assistance that is needed in a particular situation. Once the “on-call” contracts are executed, the consultants will be utilized as needed and will be chosen for a project dependent upon project need and firm expertise. These will be three year, on-call contracts, with a cumulative contract limit of $1.9 million. These Consultants selected are not guaranteed work, but are available if/as needed for work up to the contracted amount over the course of the three year term. No work will be issued unless there is sufficient funding available in the Adopted Operating Budget. The consultants’ work under each individual contract will have to be authorized by the City in advance, allowing flexibility to address program need. City of Palo Alto Page 4 Staff requests Council authorization to amend these contracts, if needed, over the course of the contract term as long as the cumulative $1.9 million is not exceeded. Should the need arise to exceed the cumulative total, staff will return to Council for authorization to do so. Resource Impact Approval of the recommended contracts will allow the Department to continue its current practice of utilizing consultants, since existing contracts are expiring. Use of consultants for specific assistance is an efficient and effective use of resources, allowing the Department to quickly access needed technical skills and address fluctuations in workload. The cost of the contracts is partially off-set by fees collected by the Department for application processing. The Municipal Fee Schedule includes flat fees for some application types, like Individual Reviews (two story homes), and these fees would offset the cost of related work under these contracts. Applications that are processed on a cost-recovery basis utilize other, separate contracts that are paid for by project applicants and would not be affected by these contracts. Use of contractors for planning work is contingent on (1) approved contracts with capacity to support the required scope; and (2) availability of funding in the Department’s approved budget. No work will be assigned to consultants under these contracts unless there is sufficient operating budget to cover the costs. One third of the cost the department expects to expend of the recommended contracts is included in the Fiscal Year 2018 Base Operating Budget, and is expected to be sufficient to cover the cost of services needed to support routine current planning work and incidental long range planning activities. No additional funds for “on-call” services are needed or requested for Fiscal Year 2018. Attachments: Attachment A: Arnold Mammarella Contract C18168697 for On-call services Attachment B: Metropolitan Planning Group Contract C18168707 for On-call Services Attachment C: Placeworks Contract C18168709 Attachment D: Michael Baker Contract C18167468 for On-call Services Attachment E: ICF Contract C18168713 for On-call Services Attachment F: Rincon Contract C18168714 for On-call Services Attachment G: Dudek Contract C18168715 for On-call Services CITY OF PALO ALTO CONTRACT NO. C18168697 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ARNOLD MAMMARELLA ARCHITECTURE & CONSULTING 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 ARNOLD MAMMARELLA ARCHITECTURE & CONSULTING, a sole proprietor, located at 1563 Solano Avenue, #411, Berkeley, CA, 94707, Telephone (510) 763- 4332 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide on-call Planning and Environmental support (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in 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. Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. 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. DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 2 SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Seven Hundred Fifty Thousand Dollars ($750,000.00). 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 DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 3 similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: Margaret Netto 332 Clifton Avenue San Carlos, CA 94070 CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 4 of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Arnold Mammarella to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Jodie Gerhardt, Planning & Community Environment Department, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329-2575. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 5 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY 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 DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 6 expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 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 DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 7 SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally 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 DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 8 additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 This Project is not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 9 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 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: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 10 CONTRACT No. C18168697 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: ARNOLD MAMMARELLA ARCHITECTURE & CONSULTING Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER (for on-call contracts only) EXHIBIT “B”: SCHEDULE OF PERFORMANCE (Not Applicable) EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Arnold Mammarella Principal Professional Services Rev. April 27, 2016 11 EXHIBIT “A” SCOPE OF SERVICES ON-CALL PLANNING SUPPORT From time to time the Planning Division requires additional environmental review services, professional planning services, and technical expertise. Consultants are needed as project managers (planning entitlements) or as independent technical consultants. The City is issuing this Request for Proposals (RFP) to identify consultants with extensive experience working with public entities to provide project planning services and environmental review services. The consultants may provide expertise in planning review, historic preservation review, and/or environmental review, and do not necessarily need to be qualified in all three areas in order to be selected. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the City of Palo Alto’s Conflict of Interest Code and the California Political Reform Act. Invoices shall be submitted electronically to PCEContracts@cityofpaloalto.org. The City retains the right to reject any or all of CONSULTANT’s staff. Services CONSULTANT shall provide the following services, as needed: Process, review and manage routine and complex development entitlements, including re- zonings, Coordinated Area Plans, subdivision maps, architectural reviews, and historic preservation reviews, and associated environmental review as needed. Implement the Comprehensive Plan, the Zoning Code, Coordinated Area Plans, Historic Preservation Ordinance, and other City documents, policies, and programs, including the Single Family Individual Review program, as may be applicable, to ensure compliance with its guidelines. Coordinate work related to planning applications for projects in environmentally sensitive areas. Coordinate with Planning staff and staff of other city departments, consultants, and outside agencies during project reviews and processing. Visit project sites. Prepare written staff reports, ordinances, resolutions, records of land use action, development permit decision letters, conditions of approval, development agreements, environmental documents, and/or other related documents. Attend and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. Attend CITY’s Development Review Committee (DRC) and preliminary review meetings as needed. Prepare and deliver verbal presentations to the Planning and Transportation Commission, City Council, Architectural Review Board, and/or other City Boards and Committees as needed. DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 12 Coordinate implementation of development applications during the construction phase (conditions of approval, etc.), as well as tracks conditions after developments have been occupied, to ensure continued compliance with approval conditions and mitigation measures. Prepare maps, graphs, models, presentations, power points, reports, and supporting technical documents. Respond to inquiries from general public, city staff, and other public agencies about the projects assigned and the City’s Comprehensive Plan, the Zoning Code, design guidelines, Coordinated Area Plans, and other City documents, policies, and programs. Coordinate annexation applications including related plan services, pre-zoning and other LAFCO related documents. Work with the Code Enforcement Division to resolve code issues. Perform green building related tasks, including but not limited to the review of development plans for compliance with the City’s and State green building requirements. Oversee the monitoring and maintenance of applicable hardware, software, telephone, and/or other related inventory items. Perform related duties and responsibilities, including assistance staffing the planning counter, when required. Prepare CEQA and/or NEPA studies and documents, (EIR, MND, ND and CE), in accordance with Local, State, and Federal Statutes Provide accurate and defensible environmental determinations. Review and/or prepare (and/or uses sub-consultants, as needed) technical documents including but not limited to the following: - Cultural and Historical Evaluations - Biological studies - Noise Studies - Air Quality Studies - Transportation Studies - Water Quality/Supply Studies - Stormwater/Wastewater Control and Management - Hazards and Hazardous Materials Studies - Green House Gas emissions - Prepares Environmental Mitigation Studies/Reports Coordinate with Planning Staff, other city departments, sub-consultants, and outside agencies Coordinate and distribute environmental documents and notices Provide electronic and printed copies of all environmental documents Prepare Mitigation Monitoring and Reporting Program (MMRP) Present and attend public meetings, when applicable and upon request Respond to public inquiries as directed by planning staff Perform related duties and responsibilities as required Services will be provided by CONSULTANT positons in line with, but not limited to the following Job Descriptions: DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 13 Planner Five or more years of professional planning work experience in the public sector. Demonstrable experience in project management in current and/or long range planning, including preparation of notices of completeness and decision letters, staff reports, and (for the long range planning consultants) documents such as General Plan Amendments, Zoning Amendments, Specific Plans, and other planning studies. Ability to work independently, follows direction, seeks clarification prior to completion of work assignment, analyzes quantitative data and qualitative information, and thinks creatively and critically. Demonstrable experience dealing with the public, architects, and applicants during the public review process of entitlement applications. Ability to write well-organized reports regarding complex planning issues. Ability to make professional presentations to the Council, City Commissions, and boards. Ability to coordinate and provide assistance, plan checking, and site inspections. For the green building consultants, ensure compliance with State and the City’s sustainability requirements. Ability to staff the front counter and answer basic zoning and development questions. Environmental Planner Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) evaluating EIRs for consistency and compliance with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. Environmental Professional Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) writing EIRs consistent and compliant with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 14 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. ISSUE DATE Purchase Requisition No. 1A. MASTER AGREEMENT NUMBER 1B. TASK ORDER NO. 2. CONSULTANT 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT $__________________________________ 5. BUDGET CODE: __________COST CENTER________ COST ELEMENT______________ WBS/CIP___ _______PHASE_____________ 6. CITY PROJECT MANAGER’S NAME/DEPARTMENT_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: WORK TO BE PERFORMED SCHEDULE OF WORK BASIS FOR PAYMENT & FEE SCHEDULE DELIVERABLES REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________ ----------------------------------------------------------------------------------------------------------------------------------- I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: ______________________ BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE (Not Applicable) DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D 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. B. Professional printing, copying, and scanning; project supplies specifically for presentation or similar client use; shipping, mailing or courier expense are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $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: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D Professional Services Rev. April 27, 2016 17 EXHIBIT “C-1” SCHEDULE OF RATES The hourly rates for consultant team members are as follows for personnel classification Additional personnel, if used in the future for additional services, shall be based on similar negotiated rates. The hourly rates shall be valid for a period of three years. Project Manager (Arnold Mammarella) $120 Consulting Architect/Urban Design Planner (Arnold Mammarella) $120 On-Call Environmental Planner (Margaret Netto) $105 DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D 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: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D 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: F2C6C9BA-79C1-4E09-B1B6-65A2A0E8CC1D CITY OF PALO ALTO CONTRACT NO. C18168707 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND METROPOLITAN PLANNING GROUP 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 METROPOLITAN PLANNING GROUP, a California corporation, located at 307 Orchard City Drive, Suite 100, Campbell, CA 95008, (“CONSULTANT”). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide on-call Planning and Environmental support (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in 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. Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. 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. DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 Professional Services Rev. April 27, 2016 2 SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Five Hundred Thousand Dollars ($500,000.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. 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 DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 Professional Services Rev. April 27, 2016 3 similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. 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 Heather Bradley as the Principal in Charge to have supervisory responsibility for the performance, progress, and execution of the Services and Sheldon Ah Sing as the project Team Leader to DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 Professional Services Rev. April 27, 2016 4 represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Jodie Gerhardt, Planning & Community Environment Department, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329-2575. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 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: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 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: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 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: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 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: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 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: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 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: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 Professional Services Rev. April 27, 2016 10 CONTRACT No. C18168707 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: METROPOLITAN PLANNING GROUP Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: SCHEDULE OF PERFORMANCE (Not Applicable) EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 PRESIDENT Geoff Bradley Principal Heather Bradley Professional Services Rev. April 27, 2016 11 EXHIBIT “A” SCOPE OF SERVICES ON-CALL PLANNING SUPPORT From time to time the Planning Division requires additional environmental review services, professional planning services, and technical expertise. Consultants are needed as project managers (planning entitlements) or as independent technical consultants. The City is issuing this Request for Proposals (RFP) to identify consultants with extensive experience working with public entities to provide project planning services and environmental review services. The consultants may provide expertise in planning review, historic preservation review, and/or environmental review, and do not necessarily need to be qualified in all three areas in order to be selected. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the City of Palo Alto’s Conflict of Interest Code and the California Political Reform Act. Invoices shall be submitted electronically to PCEContracts@cityofpaloalto.org. The City retains the right to reject any or all of CONSULTANT’s staff. Services CONSULTANT shall provide the following services, as needed: Process, review and manage routine and complex development entitlements, including re- zonings, Coordinated Area Plans, subdivision maps, architectural reviews, and historic preservation reviews, and associated environmental review as needed. Implement the Comprehensive Plan, the Zoning Code, Coordinated Area Plans, Historic Preservation Ordinance, and other City documents, policies, and programs, including the Single Family Individual Review program, as may be applicable, to ensure compliance with its guidelines. Coordinate work related to planning applications for projects in environmentally sensitive areas. Coordinate with Planning staff and staff of other city departments, consultants, and outside agencies during project reviews and processing. Visit project sites. Prepare written staff reports, ordinances, resolutions, records of land use action, development permit decision letters, conditions of approval, development agreements, environmental documents, and/or other related documents. Attend and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. Attend CITY’s Development Review Committee (DRC) and preliminary review meetings as needed. Prepare and deliver verbal presentations to the Planning and Transportation Commission, City Council, Architectural Review Board, and/or other City Boards and Committees as needed. DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 Professional Services Rev. April 27, 2016 12 Coordinate implementation of development applications during the construction phase (conditions of approval, etc.), as well as tracks conditions after developments have been occupied, to ensure continued compliance with approval conditions and mitigation measures. Prepare maps, graphs, models, presentations, power points, reports, and supporting technical documents. Respond to inquiries from general public, city staff, and other public agencies about the projects assigned and the City’s Comprehensive Plan, the Zoning Code, design guidelines, Coordinated Area Plans, and other City documents, policies, and programs. Coordinate annexation applications including related plan services, pre-zoning and other LAFCO related documents. Work with the Code Enforcement Division to resolve code issues. Perform green building related tasks, including but not limited to the review of development plans for compliance with the City’s and State green building requirements. Oversee the monitoring and maintenance of applicable hardware, software, telephone, and/or other related inventory items. Perform related duties and responsibilities, including assistance staffing the planning counter, when required. Prepare CEQA and/or NEPA studies and documents, (EIR, MND, ND and CE), in accordance with Local, State, and Federal Statutes Provide accurate and defensible environmental determinations. Review and/or prepare (and/or uses sub-consultants, as needed) technical documents including but not limited to the following: - Cultural and Historical Evaluations - Biological studies - Noise Studies - Air Quality Studies - Transportation Studies - Water Quality/Supply Studies - Stormwater/Wastewater Control and Management - Hazards and Hazardous Materials Studies - Green House Gas emissions - Prepares Environmental Mitigation Studies/Reports Coordinate with Planning Staff, other city departments, sub-consultants, and outside agencies Coordinate and distribute environmental documents and notices Provide electronic and printed copies of all environmental documents Prepare Mitigation Monitoring and Reporting Program (MMRP) Present and attend public meetings, when applicable and upon request Respond to public inquiries as directed by planning staff Perform related duties and responsibilities as required Services will be provided by CONSULTANT positons in line with, but not limited to the following Job Descriptions: DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 Professional Services Rev. April 27, 2016 13 Planner Five or more years of professional planning work experience in the public sector. Demonstrable experience in project management in current and/or long range planning, including preparation of notices of completeness and decision letters, staff reports, and (for the long range planning consultants) documents such as General Plan Amendments, Zoning Amendments, Specific Plans, and other planning studies. Ability to work independently, follows direction, seeks clarification prior to completion of work assignment, analyzes quantitative data and qualitative information, and thinks creatively and critically. Demonstrable experience dealing with the public, architects, and applicants during the public review process of entitlement applications. Ability to write well-organized reports regarding complex planning issues. Ability to make professional presentations to the Council, City Commissions, and boards. Ability to coordinate and provide assistance, plan checking, and site inspections. For the green building consultants, ensure compliance with State and the City’s sustainability requirements. Ability to staff the front counter and answer basic zoning and development questions. Environmental Planner Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) evaluating EIRs for consistency and compliance with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. Environmental Professional Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) writing EIRs consistent and compliant with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 Professional Services Rev. April 27, 2016 14 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. ISSUE DATE Purchase Requisition No. 1A. MASTER AGREEMENT NUMBER 1B. TASK ORDER NO. 2. CONSULTANT 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $_____________ BALANCE REMAINING IN MASTER AGREEMENT $________________________________ 5. BUDGET CODE: ____________ COST CENTER______________ COST ELEMENT_____________WBS/CIP__________PHASE__ 6. CITY PROJECT MANAGER’S NAME/DEPARTMENT_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: WORK TO BE PERFORMED SCHEDULE OF WORK BASIS FOR PAYMENT & FEE SCHEDULE DELIVERABLES REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________ ----------------------------------------------------------------------------------------------------------------------------------- I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: ______________________ BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 Professional Services Rev. April 27, 2016 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE (Not Applicable) DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 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: Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $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: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 Professional Services Rev. April 27, 2016 17 EXHIBIT “C-1” SCHEDULE OF RATES M-GROUP STAFF HOURLY RATE Admin Analyst Planning Tech $60 - $80 Assistant Planner Assistant Urban Designer $80 - $100 Associate Planner Associate Urban Designer Associate Environmental Planner Historic Preservation Specialist $100 - $125 Senior Planner Senior Urban Designer Environmental Planner Project Manager $125 - $145 Principal Planner $145 - $175 Principal in Charge $175 - $250 Hourly rates are subject to annual adjustment. M-Group hourly rates above include all mileage and travel expenses. Sub-consultants include a 10% administration fee. CEQA documents will be charged on a separate budget on a project-by-project basis, depending on the scope of work. DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 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: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 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: 1FCEC9D0-D101-40BB-8595-0D3A402EE817 CITY OF PALO ALTO CONTRACT NO. C18168709 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND PLACEWORKS, INC. 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 PLACEWORKS, INC., a California corporation, located at 1625 Shattuck Avenue, Suite 300 Berkeley, CA 94709 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide on-call Planning and Environmental support (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in 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. Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. 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. OR DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 2 The term of this Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached at Exhibit “B” unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed One Hundred Thousand Dollars ($100,000.00). 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. DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 3 All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. 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. DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 4 SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Steve Novak as the Principal in Charge to have supervisory responsibility for the performance, progress, and execution of the Services and Terri McCracken as the Project Manager to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Jodie Gerhardt, Planning & Community Environment Department, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329-2575. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work 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 once payment has been received by CONSULTANT. 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 once payment has been received by CONSULTANT. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 5 Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY 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, DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 6 including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 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 DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 7 SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally 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. DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 8 (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 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 DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 9 parties. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 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: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 10 CONTRACT No. C18168709 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: PLACEWORKS, INC. Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: SCHEDULE OF PERFORMANCE (Not Applicable) EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 x R. Jackson Keith McCann CEO Professional Services Rev. April 27, 2016 11 EXHIBIT “A” SCOPE OF SERVICES ON-CALL PLANNING SUPPORT From time to time the Planning Division requires additional environmental review services, professional planning services, and technical expertise. Consultants are needed as project managers (planning entitlements) or as independent technical consultants. The City is issuing this Request for Proposals (RFP) to identify consultants with extensive experience working with public entities to provide project planning services and environmental review services. The consultants may provide expertise in planning review, historic preservation review, and/or environmental review, and do not necessarily need to be qualified in all three areas in order to be selected. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the City of Palo Alto’s Conflict of Interest Code and the California Political Reform Act. Invoices shall be submitted electronically to PCEContracts@cityofpaloalto.org. The City retains the right to reject any or all of CONSULTANT’s staff. Services CONSULTANT shall provide the following services, as needed: Process, review and manage routine and complex development entitlements, including re- zonings, Coordinated Area Plans, subdivision maps, architectural reviews, and historic preservation reviews, and associated environmental review as needed. Implement the Comprehensive Plan, the Zoning Code, Coordinated Area Plans, Historic Preservation Ordinance, and other City documents, policies, and programs, including the Single Family Individual Review program, as may be applicable, to ensure compliance with its guidelines. Coordinate work related to planning applications for projects in environmentally sensitive areas. Coordinate with Planning staff and staff of other city departments, consultants, and outside agencies during project reviews and processing. Visit project sites. Prepare written staff reports, ordinances, resolutions, records of land use action, development permit decision letters, conditions of approval, development agreements, environmental documents, and/or other related documents. Attend and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. Attend CITY’s Development Review Committee (DRC) and preliminary review meetings as needed. Prepare and deliver verbal presentations to the Planning and Transportation Commission, City Council, Architectural Review Board, and/or other City Boards and Committees as needed. DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 12 Coordinate implementation of development applications during the construction phase (conditions of approval, etc.), as well as tracks conditions after developments have been occupied, to ensure continued compliance with approval conditions and mitigation measures. Prepare maps, graphs, models, presentations, power points, reports, and supporting technical documents. Respond to inquiries from general public, city staff, and other public agencies about the projects assigned and the City’s Comprehensive Plan, the Zoning Code, design guidelines, Coordinated Area Plans, and other City documents, policies, and programs. Coordinate annexation applications including related plan services, pre-zoning and other LAFCO related documents. Work with the Code Enforcement Division to resolve code issues. Perform green building related tasks, including but not limited to the review of development plans for compliance with the City’s and State green building requirements. Oversee the monitoring and maintenance of applicable hardware, software, telephone, and/or other related inventory items. Perform related duties and responsibilities, including assistance staffing the planning counter, when required. Prepare CEQA and/or NEPA studies and documents, (EIR, MND, ND and CE), in accordance with Local, State, and Federal Statutes Provide accurate and defensible environmental determinations. Review and/or prepare (and/or uses sub-consultants, as needed) technical documents including but not limited to the following: - Cultural and Historical Evaluations - Biological studies - Noise Studies - Air Quality Studies - Transportation Studies - Water Quality/Supply Studies - Stormwater/Wastewater Control and Management - Hazards and Hazardous Materials Studies - Green House Gas emissions - Prepares Environmental Mitigation Studies/Reports Coordinate with Planning Staff, other city departments, sub-consultants, and outside agencies Coordinate and distribute environmental documents and notices Provide electronic and printed copies of all environmental documents Prepare Mitigation Monitoring and Reporting Program (MMRP) Present and attend public meetings, when applicable and upon request Respond to public inquiries as directed by planning staff Perform related duties and responsibilities as required Services will be provided by CONSULTANT positons in line with, but not limited to the following Job Descriptions: DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 13 Planner Five or more years of professional planning work experience in the public sector. Demonstrable experience in project management in current and/or long range planning, including preparation of notices of completeness and decision letters, staff reports, and (for the long range planning consultants) documents such as General Plan Amendments, Zoning Amendments, Specific Plans, and other planning studies. Ability to work independently, follows direction, seeks clarification prior to completion of work assignment, analyzes quantitative data and qualitative information, and thinks creatively and critically. Demonstrable experience dealing with the public, architects, and applicants during the public review process of entitlement applications. Ability to write well-organized reports regarding complex planning issues. Ability to make professional presentations to the Council, City Commissions, and boards. Ability to coordinate and provide assistance, plan checking, and site inspections. For the green building consultants, ensure compliance with State and the City’s sustainability requirements. Ability to staff the front counter and answer basic zoning and development questions. Environmental Planner Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) evaluating EIRs for consistency and compliance with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. Environmental Professional Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) writing EIRs consistent and compliant with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 14 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. ISSUE DATE Purchase Requisition No. 1A. MASTER AGREEMENT NUMBER 1B. TASK ORDER NO. 2. CONSULTANT 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT $__________________________________ 5. BUDGET CODE: ___________COST CENTER_________________ COST ELEMENT______________ WBS/CIP___ _______PHASE__ 6. CITY PROJECT MANAGER’S NAME/DEPARTMENT______________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: WORK TO BE PERFORMED SCHEDULE OF WORK BASIS FOR PAYMENT & FEE SCHEDULE DELIVERABLES REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________ ----------------------------------------------------------------------------------------------------------------------------------- I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: ______________________ BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE (Not Applicable) DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 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. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $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: 77D40C08-D195-4889-868C-94FDBD790940 Professional Services Rev. April 27, 2016 17 EXHIBIT “C-1” SCHEDULE OF RATES Billing Rates 2017 PLACE WORKS RATE/HOUR Principal $210 – $325 Associate Principal $190 – $225 Senior Associate/Senior Scientist $160 – $200 Associate/Scientist $120 – $170 Project Planner/Project Scientist $95 – $125 Planner/Assistant Scientist $85 – $100 Graphics Specialist $65 – $135 Clerical/Word Processing $45 – $160 Intern $65 – $85 Travel Standard hourly rates Mileage IRS rate, currently $0.54¢ per mile Mark-up on Subconsultants 10% Other Expenses (including bridge tolls) Actual costs without mark-up DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 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: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 77D40C08-D195-4889-868C-94FDBD790940 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: 77D40C08-D195-4889-868C-94FDBD790940 Certificate Of Completion Envelope Id: 77D40C08D1954889868C94FDBD790940 Status: Completed Subject: Please DocuSign: C18168709 Placeworks OnCall Contract.docx Source Envelope: Document Pages: 19 Signatures: 2 Envelope Originator: Supplemental Document Pages: 0 Initials: 0 Christopher Anastole Certificate Pages: 5 AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Payments: 0 250 Hamilton Ave Palo Alto , CA 94301 chris.anastole@cityofpaloalto.org IP Address: 12.220.157.20 Record Tracking Status: Original 5/26/2017 6:35:06 AM Holder: Christopher Anastole chris.anastole@cityofpaloalto.org Location: DocuSign Signer Events Signature Timestamp R. Jackson rjackson@placeworks.com x Security Level: Email, Account Authentication (None)Using IP Address: 74.202.14.18 Sent: 5/26/2017 6:43:54 AM Resent: 6/1/2017 10:10:43 AM Viewed: 6/2/2017 3:51:19 PM Signed: 6/2/2017 3:52:35 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Keith McCann kmccann@placeworks.com CEO Security Level: Email, Account Authentication (None)Using IP Address: 74.202.14.18 Sent: 6/2/2017 3:52:37 PM Viewed: 6/2/2017 3:57:47 PM Signed: 6/2/2017 4:41:41 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Robin Ellner robin.ellner@cityofpaloalto.org Admin Associate III City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/2/2017 4:41:43 PM Electronic Record and Signature Disclosure: Accepted: 2/11/2015 9:51:24 AM ID: efb775a7-f39e-4c9f-817a-5ec939666ecf Carbon Copy Events Status Timestamp Sherry Nikzat Sherry.Nikzat@CityofPaloAlto.org Sr. Management Analyst City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/2/2017 4:41:43 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign ID: Notary Events Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/2/2017 4:41:43 PM Certified Delivered Security Checked 6/2/2017 4:41:43 PM Signing Complete Security Checked 6/2/2017 4:41:43 PM Completed Security Checked 6/2/2017 4:41:43 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure CONSUMER DISCLOSURE From time to time, City of Palo Alto (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of this document. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. Electronic Record and Signature Disclosure created on: 10/1/2013 8:33:53 AM Parties agreed to: Robin Ellner How to contact City of Palo Alto: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: david.ramberg@cityofpaloalto.org To advise City of Palo Alto of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at david.ramberg@cityofpaloalto.org and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.. In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign. To request paper copies from City of Palo Alto To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to david.ramberg@cityofpaloalto.org and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Palo Alto To inform us that you no longer want to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your DocuSign account, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an e-mail to david.ramberg@cityofpaloalto.org and in the body of such request you must state your e-mail, full name, IS Postal Address, telephone number, and account number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software Operating Systems: Windows2000? or WindowsXP? Browsers (for SENDERS): Internet Explorer 6.0? or above Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0, NetScape 7.2 (or above) Email: Access to a valid email account Screen Resolution: 800 x 600 minimum Enabled Security Settings: •Allow per session cookies •Users accessing the internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection ** These minimum requirements are subject to change. If these requirements change, we will provide you with an email message at the email address we have on file for you at that time providing you with the revised hardware and software requirements, at which time you will have the right to withdraw your consent. Acknowledging your access and consent to receive materials electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know by clicking the 'I agree' button below. By checking the 'I Agree' box, I confirm that: • I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC CONSUMER DISCLOSURES document; and • I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and • Until or unless I notify City of Palo Alto as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by City of Palo Alto during the course of my relationship with you. CITY OF PALO ALTO CONTRACT NO. C18167468 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND MICHAEL BAKER INTERNATIONAL, INC. 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 MICHAEL BAKER INTERNATIONAL, INC., a Pennsylvania Corporation, authorized to do business in California, with an office located at 2729 Prospect Park Drive, Suite 200; Rancho Cordova, CA 95670 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide on-call Planning and Environmental support (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in 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. Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. 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. DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 2 SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00). 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 DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 3 professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all applicable 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. DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 4 SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Tad Stearn as the Managing Director to have supervisory responsibility for the performance, progress, and execution of the Services and Darcy Kremin, Katrina Hardt-Holoch and Patrick Hindmarsh as the Project managers to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Jodie Gerhardt, Planning Department, 250 Hamilton avenue, Palo Alto, CA 94303, Telephone: (650) 329-2575. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work, therefore, CONSULTANT shall not be held liable for any modification or reuse of the CITY-owned work product for purposes outside its original intent. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 5 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY 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 DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 6 caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 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 DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 7 at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally 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 DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E 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 CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 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 DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 9 of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 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: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 10 CONTRACT No. C18167468 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: MICHAEL BAKER INTERNATIONAL, INC. Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER (for on-call contracts only) EXHIBIT “B”: SCHEDULE OF PERFORMANCE (Not Applicable) EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Tad Stearn Vice President Pam Warfield Assistant Secretary Professional Services Rev. April 27, 2016 11 EXHIBIT “A” SCOPE OF SERVICES ON-CALL PLANNING SUPPORT From time to time the Planning Division requires additional environmental review services, professional planning services, and technical expertise. Consultants are needed as project managers (planning entitlements) or as independent technical consultants. The City is issuing this Request for Proposals (RFP) to identify consultants with extensive experience working with public entities to provide project planning services and environmental review services. The consultants may provide expertise in planning review, historic preservation review, and/or environmental review, and do not necessarily need to be qualified in all three areas in order to be selected. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the City of Palo Alto’s Conflict of Interest Code and the California Political Reform Act. Invoices shall be submitted electronically to PCEContracts@cityofpaloalto.org. The City retains the right to reject any or all of CONSULTANT’s staff. Services CONSULTANT shall provide the following services, as needed: Process, review and manage routine and complex development entitlements, including re- zonings, Coordinated Area Plans, subdivision maps, architectural reviews, and historic preservation reviews, and associated environmental review as needed. Implement the Comprehensive Plan, the Zoning Code, Coordinated Area Plans, Historic Preservation Ordinance, and other City documents, policies, and programs, including the Single Family Individual Review program, as may be applicable, to ensure compliance with its guidelines. Coordinate work related to planning applications for projects in environmentally sensitive areas. Coordinate with Planning staff and staff of other city departments, consultants, and outside agencies during project reviews and processing. Visit project sites. Prepare written staff reports, ordinances, resolutions, records of land use action, development permit decision letters, conditions of approval, development agreements, environmental documents, and/or other related documents. Attend and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. Attend CITY’s Development Review Committee (DRC) and preliminary review meetings as needed. DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 12 Prepare and deliver verbal presentations to the Planning and Transportation Commission, City Council, Architectural Review Board, and/or other City Boards and Committees as needed. Coordinate implementation of development applications during the construction phase (conditions of approval, etc.), as well as tracks conditions after developments have been occupied, to ensure continued compliance with approval conditions and mitigation measures. Prepare maps, graphs, models, presentations, power points, reports, and supporting technical documents. Respond to inquiries from general public, city staff, and other public agencies about the projects assigned and the City’s Comprehensive Plan, the Zoning Code, design guidelines, Coordinated Area Plans, and other City documents, policies, and programs. Coordinate annexation applications including related plan services, pre-zoning and other LAFCO related documents. Work with the Code Enforcement Division to resolve code issues. Perform green building related tasks, including but not limited to the review of development plans for compliance with the City’s and State green building requirements. Oversee the monitoring and maintenance of applicable hardware, software, telephone, and/or other related inventory items. Perform related duties and responsibilities, including assistance staffing the planning counter, when required. Prepare CEQA and/or NEPA studies and documents, (EIR, MND, ND and CE), in accordance with Local, State, and Federal Statutes Provide accurate and defensible environmental determinations. Review and/or prepare (and/or uses sub-consultants, as needed) technical documents including but not limited to the following: - Cultural and Historical Evaluations - Biological studies - Noise Studies - Air Quality Studies - Transportation Studies - Water Quality/Supply Studies - Stormwater/Wastewater Control and Management - Hazards and Hazardous Materials Studies - Green House Gas emissions - Prepares Environmental Mitigation Studies/Reports Coordinate with Planning Staff, other city departments, sub-consultants, and outside agencies Coordinate and distribute environmental documents and notices Provide electronic and printed copies of all environmental documents Prepare Mitigation Monitoring and Reporting Program (MMRP) Present and attend public meetings, when applicable and upon request Respond to public inquiries as directed by planning staff Perform related duties and responsibilities as required DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 13 Services will be provided by CONSULTANT positons in line with, but not limited to the following Job Descriptions: Planner Five or more years of professional planning work experience in the public sector. Demonstrable experience in project management in current and/or long range planning, including preparation of notices of completeness and decision letters, staff reports, and (for the long range planning consultants) documents such as General Plan Amendments, Zoning Amendments, Specific Plans, and other planning studies. Ability to work independently, follows direction, seeks clarification prior to completion of work assignment, analyzes quantitative data and qualitative information, and thinks creatively and critically. Demonstrable experience dealing with the public, architects, and applicants during the public review process of entitlement applications. Ability to write well-organized reports regarding complex planning issues. Ability to make professional presentations to the Council, City Commissions, and boards. Ability to coordinate and provide assistance, plan checking, and site inspections. For the green building consultants, ensure compliance with State and the City’s sustainability requirements. Ability to staff the front counter and answer basic zoning and development questions. Environmental Planner • Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) evaluating EIRs for consistency and compliance with CEQA; and (3) monitoring mitigation compliance • Ability to manage the environmental review process in close coordination with City staff and outside agencies. • Experience working with the public, applicants and the City’s various commissions and boards during the public review process. • Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. Environmental Professional Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) writing EIRs consistent and compliant with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 14 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. ISSUE DATE Purchase Requisition No. 1A. MASTER AGREEMENT NUMBER 1B. TASK ORDER NO. 2. CONSULTANT 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT $__________________________________ 5. BUDGET-CODE:_______________COST-CENTER_____________COST- ELEMENT_____________WBS/CIP___ _______PHASE___ 6. CITY PROJECT MANAGER’S NAME/DEPARTMENT_________________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: WORK TO BE PERFORMED SCHEDULE OF WORK BASIS FOR PAYMENT & FEE SCHEDULE DELIVERABLES REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________ ----------------------------------------------------------------------------------------------------------------------------------- I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: ______________________ BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE (Not Applicable) DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E 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. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $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: 4F954F7B-B6D8-4308-A365-3D5B087F794E Professional Services Rev. April 27, 2016 17 EXHIBIT “C-1” SCHEDULE OF RATES Staff Role Hourly Rate Project Director $250 Project Manager $150–$195 Senior Transportation Planner $185 Senior Planner $120–$180 Associate Planner $95–$105 Assistant Planner $80–$95 Senior Biologist $120 Certified Arborist $125 Associate Biologist $90 Senior Cultural Resources Manager $130 Architectural Historian/Cultural Resources Technician $90–$105 Senior Air Quality/GHG/Noise Specialist $125 Associate Air Quality/GHG/Noise Specialist $85–$105 GIS Manager $125 GIS Analyst $95 Technical Editor $100 Administrative Specialist $75 Note: All types of reimbursables, for example, travel and production costs associated with individual projects, will be included in project-specific proposal DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E 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: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 4F954F7B-B6D8-4308-A365-3D5B087F794E 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: 4F954F7B-B6D8-4308-A365-3D5B087F794E CITY OF PALO ALTO CONTRACT NO. C18168713 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ICF JONES & STOKES, INC. 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 ICF JONES & STOKES, INC., a Delaware corporation, authorized to do business in California, located at 75 East Santa Clara Street, Suite 300, San Jose, CA. 95113 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide on-call Planning and Environmental support (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in 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. Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. 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. DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 2 SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed One Hundred Thousand Dollars ($100,000.00). 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 DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 3 similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: Hexagon Transportation Consultants, Inc. Baseline Environmental Consulting 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. DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 4 SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Erin Efner as the Project Director to have supervisory responsibility for the performance, progress, and execution of the Services and Shilpa Trisal as the Project Manager to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Jodie Gerhardt, Planning & Community Environment Department, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (6500 329-2575. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. In addition to the rights granted under this Section 14, the CONSULTANT may also provide Consultant Property. The term “Consultant Property” shall mean all pre-existing material, including, but not limited to, any products, software, materials and methodologies proprietary to CONSULTANT or provided by CONSULTANT or its suppliers and any trade secrets, know-how, methodologies and processes related to CONSULTANT’s products or services, all of which shall remain the sole and exclusive property of CONSULTANT or its suppliers. Subject to the terms of this Agreement, CONSULTANT grants to the CITY a non-exclusive, non-transferable, irrevocable license to use the Consultant Property contained in the deliverables provided hereunder for the purposes of this Agreement. 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. DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 5 SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY 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 DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 6 Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 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: DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 7 To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally 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 DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 8 personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 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. DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 9 SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 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. DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 10 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: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 11 CONTRACT No. C18168713 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: ICF JONES & STOKES, INC. Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: SCHEDULE OF PERFORMANCE (Not Applicable) EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Contracts Administrator Trina Prince Jodi Young Manager, Contracts Professional Services Rev. April 27, 2016 12 EXHIBIT “A” SCOPE OF SERVICES ON-CALL PLANNING SUPPORT From time to time the Planning Division requires additional environmental review services, professional planning services, and technical expertise. Consultants are needed as project managers (planning entitlements) or as independent technical consultants. The City is issuing this Request for Proposals (RFP) to identify consultants with extensive experience working with public entities to provide project planning services and environmental review services. The consultants may provide expertise in planning review, historic preservation review, and/or environmental review, and do not necessarily need to be qualified in all three areas in order to be selected. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the City of Palo Alto’s Conflict of Interest Code and the California Political Reform Act. Invoices shall be submitted electronically to PCEContracts@cityofpaloalto.org. The City retains the right to reject any or all of CONSULTANT’s staff. Services CONSULTANT shall provide the following services, as needed: Process, review and manage routine and complex development entitlements, including re- zonings, Coordinated Area Plans, subdivision maps, architectural reviews, and historic preservation reviews, and associated environmental review as needed. Implement the Comprehensive Plan, the Zoning Code, Coordinated Area Plans, Historic Preservation Ordinance, and other City documents, policies, and programs, including the Single Family Individual Review program, as may be applicable, to ensure compliance with its guidelines. Coordinate work related to planning applications for projects in environmentally sensitive areas. Coordinate with Planning staff and staff of other city departments, consultants, and outside agencies during project reviews and processing. Visit project sites. Prepare written staff reports, ordinances, resolutions, records of land use action, development permit decision letters, conditions of approval, development agreements, environmental documents, and/or other related documents. Attend and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. Attend CITY’s Development Review Committee (DRC) and preliminary review meetings as needed. Prepare and deliver verbal presentations to the Planning and Transportation Commission, City Council, Architectural Review Board, and/or other City Boards and Committees as needed. DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 13 Coordinate implementation of development applications during the construction phase (conditions of approval, etc.), as well as tracks conditions after developments have been occupied, to ensure continued compliance with approval conditions and mitigation measures. Prepare maps, graphs, models, presentations, power points, reports, and supporting technical documents. Respond to inquiries from general public, city staff, and other public agencies about the projects assigned and the City’s Comprehensive Plan, the Zoning Code, design guidelines, Coordinated Area Plans, and other City documents, policies, and programs. Coordinate annexation applications including related plan services, pre-zoning and other LAFCO related documents. Work with the Code Enforcement Division to resolve code issues. Perform green building related tasks, including but not limited to the review of development plans for compliance with the City’s and State green building requirements. Oversee the monitoring and maintenance of applicable hardware, software, telephone, and/or other related inventory items. Perform related duties and responsibilities, including assistance staffing the planning counter, when required. Prepare CEQA and/or NEPA studies and documents, (EIR, MND, ND and CE), in accordance with Local, State, and Federal Statutes Provide accurate and defensible environmental determinations. Review and/or prepare (and/or uses sub-consultants, as needed) technical documents including but not limited to the following: - Cultural and Historical Evaluations - Biological studies - Noise Studies - Air Quality Studies - Transportation Studies - Water Quality/Supply Studies - Stormwater/Wastewater Control and Management - Hazards and Hazardous Materials Studies - Green House Gas emissions - Prepares Environmental Mitigation Studies/Reports Coordinate with Planning Staff, other city departments, sub-consultants, and outside agencies Coordinate and distribute environmental documents and notices Provide electronic and printed copies of all environmental documents Prepare Mitigation Monitoring and Reporting Program (MMRP) Present and attend public meetings, when applicable and upon request Respond to public inquiries as directed by planning staff Perform related duties and responsibilities as required Services will be provided by CONSULTANT positons in line with, but not limited to the following Job Descriptions: DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 14 Planner Five or more years of professional planning work experience in the public sector. Demonstrable experience in project management in current and/or long range planning, including preparation of notices of completeness and decision letters, staff reports, and (for the long range planning consultants) documents such as General Plan Amendments, Zoning Amendments, Specific Plans, and other planning studies. Ability to work independently, follows direction, seeks clarification prior to completion of work assignment, analyzes quantitative data and qualitative information, and thinks creatively and critically. Demonstrable experience dealing with the public, architects, and applicants during the public review process of entitlement applications. Ability to write well-organized reports regarding complex planning issues. Ability to make professional presentations to the Council, City Commissions, and boards. Ability to coordinate and provide assistance, plan checking, and site inspections. For the green building consultants, ensure compliance with State and the City’s sustainability requirements. Ability to staff the front counter and answer basic zoning and development questions. Environmental Planner Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) evaluating EIRs for consistency and compliance with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. Environmental Professional Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) writing EIRs consistent and compliant with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 15 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. ISSUE DATE Purchase Requisition No. 1A. MASTER AGREEMENT NUMBER 1B. TASK ORDER NO. 2. CONSULTANT 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT $__________________________ 5. BUDGET CODE: ___________COST CENTER_______________ COST ELEMENT_____________WBS/CIP__________PHASE___ 6. CITY PROJECT MANAGER’S NAME/DEPARTMENT____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: WORK TO BE PERFORMED SCHEDULE OF WORK BASIS FOR PAYMENT & FEE SCHEDULE DELIVERABLES REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________ ----------------------------------------------------------------------------------------------------------------------------------- I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: ______________________ BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 16 EXHIBIT “B” SCHEDULE OF PERFORMANCE (Not Applicable) DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 17 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services, additional services, and reimbursable expenses shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $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: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 18 EXHIBIT “C-1” SCHEDULE OF RATES Labor Classification Per Hour Senior Project Director $290 Project Director $260 Technical Director $235 Senior Technical Analyst $225 Managing Consultant $210 Senior Consultant III $195 Senior Consultant II $170 Senior Consultant I $155 Associate Consultant III $145 Associate Consultant II $140 Associate Consultant I $120 Assistant Consultant $110 Administrative Technician $75 Technician $75 Intern $65 Other Direct Expenses Copy Center Services: - Color printing (8.5” x 11”—11” x 17”) - Black & White printing (8.5” x 11”—11” x 17”) $0.16 to $0.32/page $0.08 to $0.16/page Automobile mileage at current IRS rate $0.535/mile Laptop computer (field projects only) $10.00/day A general and administrative charge of 10% will be applied to all other direct costs, inclusive of subcontractor charges. These rates are valid for a period of two years from the issuance of the contract, assumed to be issued no later than December 31, 2017. Hourly rates may be escalated after this two year period at a rate no greater than 5% per year, depending upon promotions, staff re-classifications and overhead and administrative expense changes. DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 19 Hexagon Transportation Consultants, Inc BASELINE Environmental Consulting Labor Classification Per Hour President $270 Principal $225 Senior Associate II $210 Senior Associate I $195 Associate II $175 Associate I $160 Planner/Engineer II $140 Planner/Engineer I $125 Admin/Graphics $105 Technician $75 Billing rates shown are effective January 1, 2017 and subject to change January 1, 2018. Direct expenses are billed at actual costs, with the exception of mileage, which is reimbursed at the current rate per mile set by the IRS. Labor Classification Per Hour Bruce Abelli-Amen, PG, CHg $210 Patrick Sutton $170 Cem Atabek $170 Billing rates are effective January 1, 2017 and would remain valid for the duration of this contract. DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 20 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 76927118-CA14-466E-8422-676C0B17C22D Professional Services Rev. April 27, 2016 21 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: 76927118-CA14-466E-8422-676C0B17C22D CITY OF PALO ALTO CONTRACT NO. C18168714 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND RINCON CONSULTANTS, INC. 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 RINCON CONSULTANTS, INC., a California corporation, located at 449 15th Street, Suite 303, Oakland, California, 94612, Telephone (510) 834-4455 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide on-call Planning and Environmental support (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in 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. Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. 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. DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 2 SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed One Hundred Thousand Dollars ($100,000.00). 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 DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 3 similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: Hexagon Transportation Consultants, Inc. 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 Karly Kaufman DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 4 as the Program Manager to have supervisory responsibility for the performance, progress, and execution of the Services and Matthew Long & Jonathan Berlin as the project manager to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Jodie Gerhardt, Planning & Community Environment Department, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329-2575. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 5 to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY 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. DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 6 SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 7 SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally 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 DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 8 additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 This Project is not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 9 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 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: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 10 CONTRACT No. C18168714 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: RINCON CONSULTANTS, INC. Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: SCHEDULE OF PERFORMANCE (Not Applicable) EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Michael G. Gialketsis President Principal/Secretary Richard Daulton Professional Services Rev. April 27, 2016 11 EXHIBIT “A” SCOPE OF SERVICES ON-CALL PLANNING SUPPORT From time to time the Planning Division requires additional environmental review services, professional planning services, and technical expertise. Consultants are needed as project managers (planning entitlements) or as independent technical consultants. The City is issuing this Request for Proposals (RFP) to identify consultants with extensive experience working with public entities to provide project planning services and environmental review services. The consultants may provide expertise in planning review, historic preservation review, and/or environmental review, and do not necessarily need to be qualified in all three areas in order to be selected. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the City of Palo Alto’s Conflict of Interest Code and the California Political Reform Act. Invoices shall be submitted electronically to PCEContracts@cityofpaloalto.org. The City retains the right to reject any or all of CONSULTANT’s staff. Services CONSULTANT shall provide the following services, as needed: Process, review and manage routine and complex development entitlements, including re- zonings, Coordinated Area Plans, subdivision maps, architectural reviews, and historic preservation reviews, and associated environmental review as needed. Implement the Comprehensive Plan, the Zoning Code, Coordinated Area Plans, Historic Preservation Ordinance, and other City documents, policies, and programs, including the Single Family Individual Review program, as may be applicable, to ensure compliance with its guidelines. Coordinate work related to planning applications for projects in environmentally sensitive areas. Coordinate with Planning staff and staff of other city departments, consultants, and outside agencies during project reviews and processing. Visit project sites. Prepare written staff reports, ordinances, resolutions, records of land use action, development permit decision letters, conditions of approval, development agreements, environmental documents, and/or other related documents. Attend and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. Attend CITY’s Development Review Committee (DRC) and preliminary review meetings as needed. Prepare and deliver verbal presentations to the Planning and Transportation Commission, City Council, Architectural Review Board, and/or other City Boards and Committees as needed. DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 12 Coordinate implementation of development applications during the construction phase (conditions of approval, etc.), as well as tracks conditions after developments have been occupied, to ensure continued compliance with approval conditions and mitigation measures. Prepare maps, graphs, models, presentations, power points, reports, and supporting technical documents. Respond to inquiries from general public, city staff, and other public agencies about the projects assigned and the City’s Comprehensive Plan, the Zoning Code, design guidelines, Coordinated Area Plans, and other City documents, policies, and programs. Coordinate annexation applications including related plan services, pre-zoning and other LAFCO related documents. Work with the Code Enforcement Division to resolve code issues. Perform green building related tasks, including but not limited to the review of development plans for compliance with the City’s and State green building requirements. Oversee the monitoring and maintenance of applicable hardware, software, telephone, and/or other related inventory items. Perform related duties and responsibilities, including assistance staffing the planning counter, when required. Prepare CEQA and/or NEPA studies and documents, (EIR, MND, ND and CE), in accordance with Local, State, and Federal Statutes Provide accurate and defensible environmental determinations. Review and/or prepare (and/or uses sub-consultants, as needed) technical documents including but not limited to the following: - Cultural and Historical Evaluations - Biological studies - Noise Studies - Air Quality Studies - Transportation Studies - Water Quality/Supply Studies - Stormwater/Wastewater Control and Management - Hazards and Hazardous Materials Studies - Green House Gas emissions - Prepares Environmental Mitigation Studies/Reports Coordinate with Planning Staff, other city departments, sub-consultants, and outside agencies Coordinate and distribute environmental documents and notices Provide electronic and printed copies of all environmental documents Prepare Mitigation Monitoring and Reporting Program (MMRP) Present and attend public meetings, when applicable and upon request Respond to public inquiries as directed by planning staff Perform related duties and responsibilities as required Services will be provided by CONSULTANT positons in line with, but not limited to the following Job Descriptions: DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 13 Planner Five or more years of professional planning work experience in the public sector. Demonstrable experience in project management in current and/or long range planning, including preparation of notices of completeness and decision letters, staff reports, and (for the long range planning consultants) documents such as General Plan Amendments, Zoning Amendments, Specific Plans, and other planning studies. Ability to work independently, follows direction, seeks clarification prior to completion of work assignment, analyzes quantitative data and qualitative information, and thinks creatively and critically. Demonstrable experience dealing with the public, architects, and applicants during the public review process of entitlement applications. Ability to write well-organized reports regarding complex planning issues. Ability to make professional presentations to the Council, City Commissions, and boards. Ability to coordinate and provide assistance, plan checking, and site inspections. For the green building consultants, ensure compliance with State and the City’s sustainability requirements. Ability to staff the front counter and answer basic zoning and development questions. Environmental Planner Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) evaluating EIRs for consistency and compliance with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. Environmental Professional Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) writing EIRs consistent and compliant with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 14 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. ISSUE DATE Purchase Requisition No. 1A. MASTER AGREEMENT NUMBER 1B. TASK ORDER NO. 2. CONSULTANT 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT $_______________________________ 5. BUDGET CODE: _________COST CENTER_________________ COST ELEMENT______________ WBS/CIP___ _______PHASE___ 6. CITY PROJECT MANAGER’S NAME/DEPARTMENT_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: WORK TO BE PERFORMED SCHEDULE OF WORK BASIS FOR PAYMENT & FEE SCHEDULE DELIVERABLES REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________ ----------------------------------------------------------------------------------------------------------------------------------- I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: ______________________ BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 15 EXHIBIT “B” SCHEDULE OF PERFORMANCE (Not Applicable) DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E 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. B. Direct costs associated with the execution of a project are billed at cost plus 15% to cover General and Administrative services. Direct costs include, but are not limited to, laboratory and drilling services charges, subcontractor services, authorized travel expenses, permit charges and filing fees, printing and graphic charges, mailings and postage, performance bonds, sample handling and shipment, rental equipment and vehicles other than covered by the above charges, etc. 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 DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 17 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: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 18 EXHIBIT “C-1” SCHEDULE OF RATES Professional classification includes: environmental scientists, urban planners, biologists, geologist s, marine scientists, cultural resources experts and other professionals. Expert witness services consisting of depositions or in court testimony is charged at the hourly rate of $295. Photocopying and Printing Photocopies will be charged at a rate of $0.16/copy for single‐sided copies and $0.32 for double‐sided copies. Colored copies will be charged at a rate of $1.50/copy for single‐sided and $3.00/copy for color, double‐sided or 11”×17” copies. Oversized maps or display graphics will be charged at a rate of $8.00/square foot. Transportation fees Company‐owned vehicles will be billed $85/day for light‐duty vehicles and trucks $135/day for 4‐WD/off road vehicles, plus $0.65/mile for mileage over 50. Mileage rate of $0.65/mile applies to all miles incurred in employee‐owned vehicles. Labor Categories Hourly Rate Principal II $220 Principal I $205 Senior Supervisor II $185 Supervisor I $175 Senior Professional II $155 Senior Professional I $145 Professional IV $130 Professional III $115 Professional II $100 Professional I $89 Environmental Technician/Field Aide $78 Senior GIS Specialist $125 GIS/CADD Specialist II $110 GIS/CADD Specialist I $95 Graphic Designer $90 Technical Editor $100 Clerical/Administrative Assistant II $80 Clerical/Administrative Assistant I $68 DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 19 Equipment Schedule for Environmental Sciences and Planning Services Equipment Day Rate Environmental Site Assessment Brass Sample Sleeves, Bailers, Disposable Bailers $25 Water Level Indicator, DC Purge Pump $40 Hand Auger Sampler $55 Oil‐Water Interface Probe $85 Four Gas Monitor or Photo‐Ionization Detector $120 Soil Vapor Extraction Monitoring Equipment $140 Flame Ionization Detector $200 Soil Vapor Extraction Monitoring Equipment $140 Natural Resources & Multi-Services Field Equipment Trimble GPS (sub‐meter accuracy) $190 Pettersson Bat Ultrasound Detector/Recording Equipment $150 Spotting or Fiberoptic Scope $150 Amphibian Survey Field Package (digital camera, GPS, thermometer, decon chlorine, waders, float tube, hand net) $150 Remote Field Package (digital camera, GPS, thermometer, binoculars, field computer and mifi, Delorme Satellite Beacon, 24‐Hour Safety Phone) $125 Sound Level Metering Field Package: anemometer, tripod and digital camera $100 Construction Monitoring Field Package (digital camera, GPS, thermometer, binoculars, field computer, safety equipment) $95 Minnow Trap $85 Infrared Sensor Digital Camera or Computer Field Equipment $50 Scent Station $20 Laser Rangefinder/Altitude $10 Net, Hand/Large Seine $10 / $50 Mammal Trap, Large/Small $1.50 /$.50 Insurance, Hazard & Safety Fees L & H Dive Insurance $50 person Hazard Premium (In or Underwater ONLY per/hour) 1.25 x hourly Level C Health and Safety $60 person DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 20 Shown below is subcontractor Hexagon’s hourly rate schedule for each category of professional and administrative staff that is proposed for the project. These rate schedules will be used as the basis of the fee negotiation. 1. Direct expenses are billed at actual costs, with the exception of mileage, which is reimbursed at the current rate per mile set by the IRS. 2. Billing rates shown are effective January 1, 2017 and subject to change January 1, 2018. Labor Categories Hourly Rate President $270 Principal $225 Senior Associate II $210 Senior Associate I $195 Associate II $175 Associate I $160 Planner/Engineer II $140 Planner/Engineer I $125 Administrative/Graphics $105 Senior CAD Tech $95 Technician $75 DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 21 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 22 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: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 23 EXHIBIT “E” DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONSULTANT without proof that CONSULTANT and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONSULTANT and its listed subcontractors to comply with the requirements of SB 854. CITY provides notice to CONSULTANT of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is required to post all job site notices prescribed by law or regulation and CONSULTANT is subject to SB 854-compliance monitoring and enforcement by DIR. CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONSULTANT and its listed subcontractors, in connection with the Project. The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONSULTANT and its listed subcontractors, respectively. At the request of CITY, acting by its project manager, CONSULTANT and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY’s request. CITY requests CONSULTANT and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. If the certified payroll records are not produced to the project manager within the 10-day period, DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E Professional Services Rev. April 27, 2016 24 then CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONSULTANT. Inform the project manager of the location of CONSULTANT’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. DocuSign Envelope ID: 06DAE539-B9DF-4E1F-B1AB-FBB1B19DE24E CITY OF PALO ALTO CONTRACT NO. C18168715 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND DUDEK 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 DUDEK, a California corporation, located at 853 Lincoln Way, Suite #208, Auburn, California, 95603, Telephone (530) 887-8500 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide on-call Planning and Environmental support (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in 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. Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. 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 DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 2 made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed One Hundred Thousand Dollars ($100,000.00). 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: F3723ED7-BF66-4627-8BFC-B57B053E197D 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. Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: Fehr & Peers W-Trans Hexagon Transportation Consultants 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. DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 4 SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Stephanie Strelow as the Principal in Charge to have supervisory responsibility for the performance, progress, and execution of the Services and Katherine Waugh as the Project Manager to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Jodie Gerhardt, Planning & Community Environment Department, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329-2575. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 5 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY 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 DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 6 expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 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 DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 7 SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally 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 DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 8 additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 This Project is not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 9 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 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: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 10 CONTRACT No. C18168715 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: DUDEK Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER EXHIBIT “B”: SCHEDULE OF PERFORMANCE (Not Applicable) EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Frank Dudek President Dave Carter Chief Financial Officer Professional Services Rev. April 27, 2016 11 EXHIBIT “A” SCOPE OF SERVICES ON-CALL PLANNING SUPPORT From time to time the Planning Division requires additional environmental review services, professional planning services, and technical expertise. Consultants are needed as project managers (planning entitlements) or as independent technical consultants. The City is issuing this Request for Proposals (RFP) to identify consultants with extensive experience working with public entities to provide project planning services and environmental review services. The consultants may provide expertise in planning review, historic preservation review, and/or environmental review, and do not necessarily need to be qualified in all three areas in order to be selected. CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the City of Palo Alto’s Conflict of Interest Code and the California Political Reform Act. Invoices shall be submitted electronically to PCEContracts@cityofpaloalto.org. The City retains the right to reject any or all of CONSULTANT’s staff. Services CONSULTANT shall provide the following services, as needed: Process, review and manage routine and complex development entitlements, including re- zonings, Coordinated Area Plans, subdivision maps, architectural reviews, and historic preservation reviews, and associated environmental review as needed. Implement the Comprehensive Plan, the Zoning Code, Coordinated Area Plans, Historic Preservation Ordinance, and other City documents, policies, and programs, including the Single Family Individual Review program, as may be applicable, to ensure compliance with its guidelines. Coordinate work related to planning applications for projects in environmentally sensitive areas. Coordinate with Planning staff and staff of other city departments, consultants, and outside agencies during project reviews and processing. Visit project sites. Prepare written staff reports, ordinances, resolutions, records of land use action, development permit decision letters, conditions of approval, development agreements, environmental documents, and/or other related documents. Attend and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. Attend CITY’s Development Review Committee (DRC) and preliminary review meetings as needed. Prepare and deliver verbal presentations to the Planning and Transportation Commission, City Council, Architectural Review Board, and/or other City Boards and Committees as needed. DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 12 Coordinate implementation of development applications during the construction phase (conditions of approval, etc.), as well as tracks conditions after developments have been occupied, to ensure continued compliance with approval conditions and mitigation measures. Prepare maps, graphs, models, presentations, power points, reports, and supporting technical documents. Respond to inquiries from general public, city staff, and other public agencies about the projects assigned and the City’s Comprehensive Plan, the Zoning Code, design guidelines, Coordinated Area Plans, and other City documents, policies, and programs. Coordinate annexation applications including related plan services, pre-zoning and other LAFCO related documents. Work with the Code Enforcement Division to resolve code issues. Perform green building related tasks, including but not limited to the review of development plans for compliance with the City’s and State green building requirements. Oversee the monitoring and maintenance of applicable hardware, software, telephone, and/or other related inventory items. Perform related duties and responsibilities, including assistance staffing the planning counter, when required. Prepare CEQA and/or NEPA studies and documents, (EIR, MND, ND and CE), in accordance with Local, State, and Federal Statutes Provide accurate and defensible environmental determinations. Review and/or prepare (and/or uses sub-consultants, as needed) technical documents including but not limited to the following: - Cultural and Historical Evaluations - Biological studies - Noise Studies - Air Quality Studies - Transportation Studies - Water Quality/Supply Studies - Stormwater/Wastewater Control and Management - Hazards and Hazardous Materials Studies - Green House Gas emissions - Prepares Environmental Mitigation Studies/Reports Coordinate with Planning Staff, other city departments, sub-consultants, and outside agencies Coordinate and distribute environmental documents and notices Provide electronic and printed copies of all environmental documents Prepare Mitigation Monitoring and Reporting Program (MMRP) Present and attend public meetings, when applicable and upon request Respond to public inquiries as directed by planning staff Perform related duties and responsibilities as required Services will be provided by CONSULTANT positons in line with, but not limited to the following Job Descriptions: DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 13 Planner Five or more years of professional planning work experience in the public sector. Demonstrable experience in project management in current and/or long range planning, including preparation of notices of completeness and decision letters, staff reports, and (for the long range planning consultants) documents such as General Plan Amendments, Zoning Amendments, Specific Plans, and other planning studies. Ability to work independently, follows direction, seeks clarification prior to completion of work assignment, analyzes quantitative data and qualitative information, and thinks creatively and critically. Demonstrable experience dealing with the public, architects, and applicants during the public review process of entitlement applications. Ability to write well-organized reports regarding complex planning issues. Ability to make professional presentations to the Council, City Commissions, and boards. Ability to coordinate and provide assistance, plan checking, and site inspections. For the green building consultants, ensure compliance with State and the City’s sustainability requirements. Ability to staff the front counter and answer basic zoning and development questions. Environmental Planner Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) evaluating EIRs for consistency and compliance with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. Environmental Professional Demonstrable CEQA experience in terms of (1) writing Initial Studies, CEQA resolutions, and related material; (2) writing EIRs consistent and compliant with CEQA; and (3) monitoring mitigation compliance Ability to manage the environmental review process in close coordination with City staff and outside agencies. Experience working with the public, applicants and the City’s various commissions and boards during the public review process. Historic preservation expertise on staff or via a subconsultant, to provide historic resource evaluations and cultural resource analysis for CEQA documents. DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 14 DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 15 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. ISSUE DATE Purchase Requisition No. 1A. MASTER AGREEMENT NUMBER 1B. TASK ORDER NO. 2. CONSULTANT 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT $__________________________________ 5. BUDGET CODE: _______________ COST CENTER_______________ COST ELEMENT______________WBS/CIP___ _______PHASE___ 6. CITY PROJECT MANAGER’S NAME/DEPARTMENT_______________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: WORK TO BE PERFORMED SCHEDULE OF WORK BASIS FOR PAYMENT & FEE SCHEDULE DELIVERABLES REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________ ----------------------------------------------------------------------------------------------------------------------------------- I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: ______________________ BY:__________________________________ BY:____________________________________ Name ________________________________ Name __________________________________ Title_________________________________ Title___________________________________ Date _________________________________ Date ___________________________________ DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 16 EXHIBIT “B” SCHEDULE OF PERFORMANCE (Not Applicable) DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 17 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all services, additional services, and reimbursable expenses shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $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: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 18 EXHIBIT “C-1” SCHEDULE OF RATES Labor Category Hourly Rate Dudek Principal - Environmental $240 Senior Project Manager/Specialist II – Environmental $225 Senior Project Manager - Engineering $210 Senior Hydrogeologist III/Engineer III $210 Environmental Specialist/Planner V $175 Environmental Specialist/Planner IV $165 Environmental Specialist/Planner III $155 Environmental Specialist/Planner II $140 Sr. Hydrogeologist I/Engineer I $180 Project Engineer lI/Technician II $145 Environmental Specialist/Archaeologist II $135 Environmental Specialist/Archaeologist I $125 Analyst I $95 Planning Assistant I $85 Fehr & Peers Principal $205 - $325 Senior Associate $160 - $320 Associate $140 - $220 Hexagon President $270 Principal $225 Senior Associate II $210 Senior Associate I 195 Associate II $175 Associate I $160 Planner/Engineer II $140 Planner/Engineer I $125 W-Trans Principal $205 – $250 Associate Principal $185 – $200 Senior Engineer/Planner $160 – $190 Engineer/Planner $130 – $150 Associate Engineer/Planner I $120 – $130 Associate Engineer/Planner II $95 – $115 DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 19 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: F3723ED7-BF66-4627-8BFC-B57B053E197D Professional Services Rev. April 27, 2016 20 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: F3723ED7-BF66-4627-8BFC-B57B053E197D City of Palo Alto (ID # 7957) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: FY 2018 Preventive Maintenance Project Title: Approval of a Contract With Graham Contractors, Inc. in the Amount of $1,386,065 for the FY 2018 Preventive Street Maintenance CIP Project PE- 86070, Thermoplastic Lane Marking and Striping CIP Project PO-11001, and University Avenue Parking Improvements CIP Project PF-14003, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed $138,606 in Total Value From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute the attached contract with Graham Contractors, Inc. (Attachment A) in an amount not to exceed $1,386,065 for the FY 2018 Preventive Maintenance Project (Capital Improvement Program projects PE-86070, PO-11001, and PF-14003) for street maintenance; and 2. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Graham Contractors, Inc. for related additional but unforeseen work that may develop during the project, the total value of which shall not exceed $138,606. Background Public Works Engineering Services Division manages construction contracts for concrete repair, preventive maintenance, resurfacing and reconstruction of various city streets annually. In recent years, additional Capital Improvement Program (CIP) projects are being built through the annualized resurfacing City of Palo Alto Page 2 contracts due to the complexity of construction and benefit of being included in a larger project. All City of Palo Alto streets are surveyed annually by the Public Works Engineering Services staff and rated by a computerized pavement maintenance management system (PMMS) and the Metropolitan Transportation Commission’s (MTC) pavement analysis program Street Saver. All streets have been coordinated with the Utilities Department and Planning and Community Environment Department’s Transportation Division to eliminate the cutting of newly resurfaced streets. Extensive public outreach will be conducted before and during the construction phase to keep the community informed throughout the process, including sending flyers to adjacent residences and businesses and posting notices on Nextdoor and the City’s website. Discussion Project Description The $1,386,065 expenditure for this contract includes preventive maintenance of approximately 23 lane-miles of public streets (1.8 million square feet), 2,400 tons of asphalt road base repairs and 358,000 linear feet of crack sealing. This contract also includes thermoplastic striping in coordination with the Public Works Public Services Division. The streets and other work sites included in this contract are listed in Attachment B. Additionally, this contract includes work on University Avenue Parking District Parking Lots C and K. The Parking Lot C work however, will be postponed to allow coordination with the anticipated construction on the Avenidas building next door. Additional maps of the FY 2018 Street Maintenance Program and current 5-year plan for street repaving are available on the Street Maintenance Program homepage located at www.cityofpaloalto.org/streets. Bid Process On April 14, 2017, a notice inviting formal bids (IFB) for the FY 2018 Preventive Maintenance Project was posted at City Hall and sent to 10 builder’s exchanges and 523 contractors through the City’s eProcurement system. The bidding period City of Palo Alto Page 3 was 25 calendar days. Bids were received from two qualified contractors on May 9, 2017 as listed on the attached Bid Summary (Attachment C). Summary of Bid Process Bid Name/Number FY 18 Preventive Maintenance Project IFB #168150 Proposed Length of Project 70 calendar days Number of Bid Packages Downloaded by Builder’s Exchanges 9 Number of Bid Packages Downloaded by Contractors 16 Total Days to Respond to Bid 25 Pre-Bid Meeting? No Number of Bids Received: 2 Base Bid Price Range $1,359,757 to $1,378,313 The apparent low bidder was selected based upon the total of the base bids plus add alternate 1. Bids ranged from $1,386,065 to $1,437,000 and 11% to 14% under the engineer’s estimate. Staff has reviewed all bids submitted and recommends the base bid and add alternate one, totaling $1,386,065 submitted by Graham Contractors, Inc. be accepted, and Graham Contractors, Inc. be declared the lowest responsible bidder. The contingency amount of $138,606, which equals ten percent of the total contract, is requested for related, additional, but unforeseen work, which may develop during the project. Staff reviewed other similar projects performed by the lowest responsible bidder, Graham Contractors, Inc.; including projects performed for the City and did not find any significant complaints with their previous work. Staff also checked with the Contractor’s State License Board and confirmed the contractor has an active license on file. Resource Impact Funding for the FY 2018 Preventive Maintenance Project is available in the following CIP projects, subject to Council’s approval of the FY 2018 Capital Budget: PE-86070 Street Maintenance Program, PO-11001 Thermoplastic Lane City of Palo Alto Page 4 Marking and Striping, and PF-14003 University Avenue Parking District Parking Improvements. Funding Allocations Funding Source Contract Contingency Total Funding 1 PE-86070 $1,275,065 $127,506 $1,402,571 2 PO-11001 $50,000 $5,000 $55,000 3 PF-14003 $61,000 $6,100 $67,100 Totals $1,386,065 $138,606 $1,524,671 Policy Implications This project is in conformance with City of Palo Alto’s Comprehensive Plan and does not represent any changes to existing City policies. Environmental Review Street resurfacing projects are categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301(c) of the CEQA Guidelines as repair, maintenance or minor alteration of existing facilities, and no further environmental review is necessary. Attachments: Attachment A: Construction Contract Attachment B: Street List Attachment C: Bid Summary Invitation for Bid (IFB) Package 1 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C18168150 City of Palo Alto FY18 Street Preventive Maintenance Project Attachment A Invitation for Bid (IFB) Package 2 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….…………..6 1.1 Recitals…………………………………………………………………………………………………………………….6 1.2 Definitions……………………………………………………………………………………………………………….6 SECTION 2 THE PROJECT………………………………………………………………………………………………………...6 SECTION 3 THE CONTRACT DOCUMENTS………………………………………………………………………………..7 3.1 List of Documents…………………………………………………………………………………………….........7 3.2 Order of Precedence……………………………………………………………………………………………......7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………..8 4.1 Contractor's Duties…………………………………………………………………………………………………..8 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..8 5.1 Contractor's Co-operation………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………….......8 6.1 Time Is of Essence…………………………………………………………………………………………………….8 6.2 Commencement of Work…………………………………………………………………………………………8 6.3 Contract Time…………………………………………………………………………………………………………..8 6.4 Liquidated Damages…………………………………………………………………………………………………8 6.4.1 Other Remedies……………………………………………………………………………………………………..9 6.5 Adjustments to Contract Time………………………………………………………………………………….9 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………………….9 7.1 Contract Sum……………………………………………………………………………………………………………9 7.2 Full Compensation……………………………………………………………………………………………………9 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..9 8.1 Standard of Care…………………………………………………………………………………..…………………9 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..…10 9.1 Hold Harmless……………………………………………………………………………………………………….10 9.2 Survival…………………………………………………………………………………………………………………10 SECTION 10 NON-DISCRIMINATION……..………………………………………………………………………………10 10.1 Municipal Code Requirement…………….………………………………..……………………………….10 SECTION 11 INSURANCE AND BONDS.…………………………………………………………………………………10 Invitation for Bid (IFB) Package 3 Rev. March 17, 2017 CONSTRUCTION CONTRACT 11.1 Evidence of Coverage…………………………………………………………………………………………..10 SECTION 12 PROHIBITION AGAINST TRANSFERS…………………………………………………………….…11 12.1 Assignment………………………………………………………………………………………………………….11 12.2 Assignment by Law.………………………………………………………………………………………………11 SECTION 13 NOTICES …………………………………………………………………………………………………………….11 13.1 Method of Notice …………………………………………………………………………………………………11 13.2 Notice Recipents ………………………………………………………………………………………………….11 13.3 Change of Address……………………………………………………………………………………………….12 SECTION 14 DEFAULT…………………………………………………………………………………………………………...12 14.1 Notice of Default………………………………………………………………………………………………….12 14.2 Opportunity to Cure Default…………………………………………………………………………………12 SECTION 15 CITY'S RIGHTS AND REMEDIES…………………………………………………………………………..13 15.1 Remedies Upon Default……………………………………………………………………………………….13 15.1.1 Delete Certain Services…………………………………………………………………………………….13 15.1.2 Perform and Withhold……………………………………………………………………………………..13 15.1.3 Suspend The Construction Contract…………………………………………………………………13 15.1.4 Terminate the Construction Contract for Default………………………………………………13 15.1.5 Invoke the Performance Bond………………………………………………………………………….13 15.1.6 Additional Provisions……………………………………………………………………………………….13 15.2 Delays by Sureties……………………………………………………………………………………………….13 15.3 Damages to City…………………………………………………………………………………………………..14 15.3.1 For Contractor's Default…………………………………………………………………………………..14 15.3.2 Compensation for Losses…………………………………………………………………………………14 15.4 Suspension by City……………………………………………………………………………………………….14 15.4.1 Suspension for Convenience……………………………………………………………………………..14 15.4.2 Suspension for Cause………………………………………………………………………………………..14 15.5 Termination Without Cause…………………………………………………………………………………14 15.5.1 Compensation………………………………………………………………………………………………….15 15.5.2 Subcontractors………………………………………………………………………………………………..15 15.6 Contractor’s Duties Upon Termination………………………………………………………………...15 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES……………………………………………………………16 16.1 Contractor’s Remedies……………………………………..………………………………..………………….16 Invitation for Bid (IFB) Package 4 Rev. March 17, 2017 CONSTRUCTION CONTRACT 16.1.1 For Work Stoppage……………………………………………………………………………………………16 16.1.2 For City's Non-Payment…………………………………………………………………………………….16 16.2 Damages to Contractor………………………………………………………………………………………..16 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….…16 17.1 Financial Management and City Access………………………………………………………………..16 17.2 Compliance with City Requests…………………………………………………………………………….17 SECTION 18 INDEPENDENT PARTIES……………………………………………………………………………………..17 18.1 Status of Parties……………………………………………………………………………………………………17 SECTION 19 NUISANCE……………………………………………………………………………………………………….…17 19.1 Nuisance Prohibited……………………………………………………………………………………………..17 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………….17 20.1 Payment of Fees…………………………………………………………………………………………………..17 SECTION 21 WAIVER…………………………………………………………………………………………………………….17 21.1 Waiver………………………………………………………………………………………………………………….17 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS……………………………….18 22.1 Governing Law…………………………………………………………………………………………………….18 22.2 Compliance with Laws…………………………………………………………………………………………18 22.2.1 Palo Alto Minimum Wage Ordinance…………….………………………………………………….18 SECTION 23 COMPLETE AGREEMENT……………………………………………………………………………………18 23.1 Integration………………………………………………………………………………………………………….18 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………..18 24.1 Survival of Provisions……………………………………………………………………………………………18 SECTION 25 PREVAILING WAGES………………………………………………………………………………………….18 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………….19 26.1 Appropriation………………………………………………………………………………………………………19 SECTION 27 AUTHORITY……………………………………………………………………………………………………….19 27.1 Representation of Parties…………………………………………………………………………………….19 SECTION 28 COUNTERPARTS………………………………………………………………………………………………..19 28.1 Multiple Counterparts………………………………………………………………………………………….19 SECTION 29 SEVERABILITY……………………………………………………………………………………………………19 29.1 Severability………………………………………………………………………………………………………….19 SECTION 30 STATUTORY AND REGULATORY REFERENCES …………………………………………………..19 Invitation for Bid (IFB) Package 5 Rev. March 17, 2017 CONSTRUCTION CONTRACT 30.1 Amendments of Laws…………………………………………………………………………………………..19 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….….19 31.1 Workers Compensation…………………………………………………………………………………….19 SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS………………………………..…20 32.1 General Notice to Contractor…………………………………………………………………………….20 32.2 Labor Code section 1771.1(a)…………………………………………………………………………….20 32.3 DIR Registration Required…………………………………………………………………………………20 32.4 Posting of Job Site Notices…………………………………………………………………………………20 32.5 Payroll Records…………………………………………………………………………………………………20 Invitation for Bid (IFB) Package 6 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on June 27, 2017 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and Graham Contractors, Inc. ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a Corporation duly organized and in good standing in the State of California, Contractor’s License Number 315789 and Department of Industrial Relations Registration Number 1000006175. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On April 14, 2017, City issued an Invitation for Bids (IFB) to contractors for the FY18 Street Preventive Maintenance (“Project”). In response to the IFB, Contractor submitted a Bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the FY18 Prevent Maintenance Project, located at Various Streets, Palo Alto, CA. 94301 ("Project"). Invitation for Bid (IFB) Package 7 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Orders 3) Contract 4) Bidding Addenda 5) Special Provisions 6) General Conditions 7) Project Plans and Drawings 8) Technical Specifications 9) Instructions to Bidders 10) Invitation for Bids 11) Contractor's Bid/Non-Collusion Declaration 12) Reports listed in the Contract Documents 13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid) 14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid) 15) City of Palo Alto Traffic Control Requirements 16) City of Palo Alto Truck Route Map and Regulations 17) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 18) Performance and Payment Bonds 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Invitation for Bid (IFB) Package 8 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 4 CONTRACTOR’S DUTY. 4.1 Contractor’s Duties Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. SECTION 5 PROJECT TEAM. 5.1 Contractor’s Co-operation. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than . within Seventy calendar days (70) after the commencement date specified in City’s Notice to Proceed. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion. 6.4 Liquidated Damages. Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the amount of 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 Contractor, Invitation for Bid (IFB) Package 9 Rev. March 17, 2017 CONSTRUCTION CONTRACT including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of One Million Three Hundred Eighty Six Thousand Sixty Five Dollars ($1,386,065). [This amount includes the Base Bid and Additive Alternates 1.] 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents. SECTION 8 STANDARD OF CARE. 8.1 Standard of Care. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third-party claim relating to the Contract. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NON-DISCRIMINATION. 10.1 Municipal Code Requirement. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. 11.1 Evidence of coverage. Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Invitation for Bid (IFB) Package 11 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. 12.1 Assignment. City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City. 12.2 Assignment by Law. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice to Recipients. All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Holly Boyd AND [Include Construction Manager, If Applicable.] Invitation for Bid (IFB) Package 12 Rev. March 17, 2017 CONSTRUCTION CONTRACT City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be sent by registered mail or certified mail with return receipt requested. All notices, demands, requests or approvals from City to Contractor shall be addressed to: Graham Contractors, Inc. Attn: David Graham 860 Lonus Street San Jose, CA 95126 13.3 Change of Address. In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DEFAULT. 14.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety. 14.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. Invitation for Bid (IFB) Package 13 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 15 CITY'S RIGHTS AND REMEDIES. 15.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following: 15.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 15.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 15.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 15.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 15.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 15.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 15.2 Delays by Sureties. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally Invitation for Bid (IFB) Package 14 Rev. March 17, 2017 CONSTRUCTION CONTRACT 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 Contractor and located at the Worksite for the purposes of completing the remaining Work. 15.3 Damages to City. 15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 15.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City. 15.4 Suspension by City 15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents. 15.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor. Invitation for Bid (IFB) Package 15 Rev. March 17, 2017 CONSTRUCTION CONTRACT 15.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. .4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated. 15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 15.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, Invitation for Bid (IFB) Package 16 Rev. March 17, 2017 CONSTRUCTION CONTRACT submittals of as-built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date. SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. 16.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 16.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 16.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 16.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 17 ACCOUNTING RECORDS. 17.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. Invitation for Bid (IFB) Package 17 Rev. March 17, 2017 CONSTRUCTION CONTRACT 17.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 18 INDEPENDENT PARTIES. 18.1 Status of parties. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 19 NUISANCE. 19.1 Nuisance Prohibited. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 20 PERMITS AND LICENSES. 20.1 Payment of Fees. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 21 WAIVER. 21.1 Waiver. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. Invitation for Bid (IFB) Package 18 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS. 22.1 Governing Law. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place. 22.2 Compliance with Laws. Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract. 22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 23 COMPLETE AGREEMENT. 23.1 Integration. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 24 SURVIVAL OF CONTRACT. 24.1 Survival of Provisions. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 25 PREVAILING WAGES. This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the public works contract does not include a project of $25,000 or less, when the project is for construction work, or the contract does not include a project of $15,000 or less, when the project is for alteration, demolition, repair, or maintenance (collectively, ‘improvement’) work. Or Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work Invitation for Bid (IFB) Package 19 Rev. March 17, 2017 CONSTRUCTION CONTRACT 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 adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. SECTION 26 NON-APPROPRIATION. 26.1 Appropriations. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 27 AUTHORITY. 27.1 Representation of Parties. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 28 COUNTERPARTS 28.1 Multiple Counterparts. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 29 SEVERABILITY. 29.1 Severability. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. SECTION 30 STATUTORY AND REGULATORY REFERENCES. 30.1 Amendments to Laws. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise required by law. SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. 31.1 Workers Compensation. Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: Invitation for Bid (IFB) Package 20 Rev. March 17, 2017 CONSTRUCTION CONTRACT “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.” SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS. 32.1 General Notice to Contractor. City requires Contractor and its listed subcontractors to comply with the requirements of SB 854. 32.2 Labor Code section 1771.1(a) City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” 32.3 DIR Registration Required. City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. 32.4 Posting of Job Site Notices. City gives notice to Contractor and its listed subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to SB 854-compliance monitoring and enforcement by DIR. 32.5 Payroll Records. City requires Contractor and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: (i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its listed subcontractors, in connection with the Project. (ii) The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its listed subcontractors, respectively. Invitation for Bid (IFB) Package 21 Rev. March 17, 2017 CONSTRUCTION CONTRACT (iii) At the request of City, acting by its project manager, Contractor and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of City’s request. City requests Contractor and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. (iv) If the certified payroll records are not produced to the project manager within the 10-day period, then Contractor and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v) Inform the project manager of the location of contractor’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager City Manager APPROVED AS TO FORM: ____________________________ City Attorney or designee APPROVED: ____________________________ Public Works Director CONTRACTOR Officer 1 By:___________________________ Name:________________________ Title:__________________________ Date: _________________________ Officer 2 By:____________________________ Name:_________________________ Title:___________________________ Date:____________________________ ATTACHMENT B FY18 PREVENTIVE MAINTENANCE PROJECT STREET LIST STREET FROM TO 1 Abel Avenue Georgia Avenue Maybell Way 2 Amaranta Avenue Los Robles Avenue Maybell Avenue 3 Baker Avenue Georgia Avenue Maybell Avenue 4 Barbara Drive Seale Avenue North California Avenue 5 Barron Avenue Josina Avenue El Camino Real 6 Brett Harte Street Embarcadero Road Seale Avenue 7 Campana Drive Los Robles Avenue Florales Drive 8 Cerrito Way Los Robles Avenue El Cerrito Road 9 Cherry Oaks Avenue Arastradero Road End 10 College Avenue Amherst Street Stauton Court 11 Coulombe Drive Maybell Avenue Arastradero Road 12 Driscoll Court Maybell Avenue End 13 El Centro Street Barron Avenue La Jennifer Way 14 Embarcadero Road Bend City Dump 15 Encina Grande Drive Amaranta Avenue Verdosa Drive 16 Erstwild Court Walter Hays Drive End 17 Farimede Avenue Pomona Avenue Los Palos Avenue 18 Frandon Court Maybell Avenue End 19 Georgia Avenue Amaranta Avenue End 20 Glenbrook Drive Pomona Avenue End 21 Harbor Road Bend Harbor Parking Lot 22 Iris Way Heather Lane Primrose Way 23 Kelly Way Suzanne Drive Suzanne Drive 24 Kendall Avenue Josina Avenue El Camino Real 25 King Arthur's Court Arastradero Road End 26 La Donna Street Kendall Avenue Barron Avenue 27 Laguna Oaks Place Laguna Avenue End 28 Laguna Way Los Robles End 29 Lorabelle Court Mckellar lane End 30 Los Palos Avenue Arastradero Road Glenbrook Drive FY18 PREVENTIVE MAINTENANCE BASE BID ATTACHMENT B FY18 PREVENTIVE MAINTENANCE PROJECT STREET LIST 31 Los Palos Circle Los Palos Avenue End 32 Los Palos Place Los Palos Avenue End 33 Los Robles Avenue Manzana Lane End 34 Louis Road Greer Road East Meadow Drive 35 Magnolia Drive North Whitesell Street End 36 Mark Twain Street Seale Avenue Embarcadero Road 37 Newell Road Embarcadero Road North California Avenue 38 North California Avenue Newell Road Louis Road 39 Orme Street Los Robles Avenue End 40 Paradise Way Paradise Court McGregor Way 41 Paradise Way Paradise Way End 42 Pena Court Maybell Avenue End 43 Pomona Avenue Arastradero Road Glenbrook Drive 44 Primrose Way Heather Lane Embarcadero Road 45 Seale Avenue Mark Twain Street End 46 Shauna Lane Laguna Avenue End 47 Stanley Way Walter Hays Drive Channing Avenue 48 Suzanne Court Suzanne Drive End 49 Suzanne Drive Arastradero Road Kelly Way 50 Timlott Court Timlott Lane End 51 Verdosa Drive Encina Grande Florales Drive 52 Vista Avenue Verdosa Drive El Camino Real 53 Walnut Drive Lois Lane Embarcadero Road 54 Waverley Street North California Avenue Oregon Expressway 55 West Greenwich Place Newell Road End 56 Whitesell Street Matadero Avenue Magnolia Drive 57 Parking Lot C 58 Parking Lot K 59 Parking Lot K Ramona/Lytton Bryant/Lytton Waverley/Lytton ATTACHMENT C FY18 PREVENTIVE MAINTENANCE PROJECT BID SUMMARY BASE BID ITEMS QTY UNITS 1 MICROSURFACING SEAL TYPE I 88,508 SY $ 1.35 $ 119,485.80 $ 1.70 $ 150,463.60 $ 1.20 $ 106,209.60 2 MICROSURFACING SEAL TYPE II 113,858 SY $ 1.60 $ 182,172.80 $ 1.70 $ 193,558.60 $ 1.55 $ 176,479.90 33" BASE REPAIR USING 3/4" MAX MED W/15% RAP 2,435 TON $ 225.50 $ 549,092.50 $ 210.00 $ 511,350.00 $ 215.25 $ 524,133.75 4 CRACK SEALING 357,551 LF $ 0.50 $ 178,775.50 $ 0.44 $ 157,322.44 $ 0.48 $ 171,624.48 5 INERT SOLIDS RECYCLING 2,435 TON $ 5.00 $ 12,175.00 $ 5.00 $ 12,175.00 $ 1.32 $ 3,214.20 6 RESET VALVES (TBD BY ENGINEER)60 EA $ 600.00 $ 36,000.00 $ 800.00 $ 48,000.00 $ 345.00 $ 20,700.00 7 REMOVE & REPLACE BLUE PAVEMENT MARKERS 115 EA $ 30.00 $ 3,450.00 $ 20.00 $ 2,300.00 $ 21.00 $ 2,415.00 8 THERMOPLASTIC STRIPING, WHITE, 12" WIDE 3,890 LF $ 5.00 $ 19,450.00 $ 3.00 $ 11,670.00 $ 3.15 $ 12,253.50 9 THERMOPLASTIC STRIPING, YELLOW, 12" WIDE 2,325 LF $ 5.00 $ 11,625.00 $ 3.00 $ 6,975.00 $ 3.15 $ 7,323.75 10 THERMOPLASTIC STRIPING, WHITE, 4" WIDE 4,445 LF $ 2.00 $ 8,890.00 $ 1.00 $ 4,445.00 $ 1.05 $ 4,667.25 11 THERMOPLASTIC STRIPING, YELLOW, 4" WIDE 790 LF $ 2.00 $ 1,580.00 $ 1.00 $ 790.00 $ 1.05 $ 829.50 12 THERMOPLASTIC STRIPING, CALTRAINS DETAIL 2 4,265 LF $ 1.00 $ 4,265.00 $ 0.60 $ 2,559.00 $ 0.63 $ 2,686.95 13 THERMOPLASTIC STRIPING, CALTRAINS DETAIL 21 1,700 LF $ 2.00 $ 3,400.00 $ 1.00 $ 1,700.00 $ 1.05 $ 1,785.00 14 THERMOPLASTIC STRIPING, CALTRAINS DETAIL 22 21,135 LF $ 4.00 $ 84,540.00 $ 1.20 $ 25,362.00 $ 1.26 $ 26,630.10 15 THERMOPLASTIC STRIPING, CALTRAINS DETAIL 23 8,395 LF $ 4.00 $ 33,580.00 $ 1.20 $ 10,074.00 $ 1.26 $ 10,577.70 16 THERMOPLASTIC STRIPING, CALTRAINS DETAIL 27B 22,710 LF $ 2.50 $ 56,775.00 $ 0.40 $ 9,084.00 $ 0.42 $ 9,538.20 17 THERMOPLASTIC STRIPING, CALTRAINS DETAIL 39/39A 16,780 LF $ 2.50 $ 41,950.00 $ 0.60 $ 10,068.00 $ 0.63 $ 10,571.40 18 THERMOPLASTIC PAVING LEGENDS 466 EA $ 35.00 $ 16,310.00 $ 16.00 $ 7,456.00 $ 16.80 $ 7,828.80 19 BIKE SHARROW ON GREEN BACKING 4 EA $ 750.00 $ 3,000.00 $ 750.00 $ 3,000.00 $ 787.50 $ 3,150.00 20 10' WIDE SPEED BUMP WITH CHEVRON STRIPING 20 EA $ 500.00 $ 10,000.00 $ 90.00 $ 1,800.00 $ 94.50 $ 1,890.00 21 BIKE SHARROW 11 EA $ 500.00 $ 5,500.00 $ 60.00 $ 660.00 $ 63.00 $ 693.00 22 MISCELLANEOUS TRANSPORTATION IMPROVEMENTS 1 LS $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 30,000.00 23 TRAFFIC CONTROL 1 LS $ 129,800.00 $ 129,800.00 $ 125,950.00 $ 125,950.00 $ 213,897.28 $ 213,897.28 24 TREE TRIMMING 50 CREW HRS $ 29,500.00 $ 29,500.00 $ 275.00 $ 13,750.00 $ 231.00 $ 11,550.00 25 ADDITIONAL COST TO HAUL AC GRINDINGS CONTAINING PAVEMENT FABRIC 2,435 TON $ 3.00 $ 7,305.00 $ 7.00 $ 17,045.00 $ 6.30 $ 15,340.50 26 PROVIDE & INSTALL REGULATORY SIGNAGE (LOT K) 4 EA $ 275.00 $ 1,100.00 $ 245.00 $ 980.00 $ 258.00 $ 1,032.00 27 PROVIDE & INSTALL REGULATORY SIGNAGE (LOT C) 4 EA $ 275.00 $ 1,100.00 $ 245.00 $ 980.00 $ 258.00 $ 1,032.00 28 THERMOPLASTIC YIELD LIMIT LINES 2 EA $ 110.00 $ 220.00 $ 120.00 $ 240.00 $ 130.00 $ 260.00 $ 1,581,041.60 $ 1,359,757.64 $ 1,378,313.86 ADD ALTERNATE #1 QTY UNITS 1 VOLCANIC IN ORIGIN BLACK ROCK AGGREGATE 202,366 SY $ 0.18 $ 36,425.88 $ 0.13 $ 26,307.58 $ 0.29 $ 58,686.14 UNDER 14%11% APPARENT LOW BIDDER $ 1,617,467.48 $ 1,386,065.22 BASE BID + ADD ALT #1 VSS INTERNATIONAL, INC. VSS INTERNATIONAL, INC. $ 1,437,000.00 ENGINEER'S ESTIMATE GRAHAM CONTRACTORS, INC. TOTAL ENGINEER'S ESTIMATE GRAHAM CONTRACTORS, INC. City of Palo Alto (ID # 8206) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Contract for Purchase of Eight Ford Explorers Title: Approval of a Purchase Order With Folsom Lake Ford in the Amount of $304,651 for the Purchase of Eight 2017 Ford Explorer Police Patrol Vehicles From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve and authorize the City Manager to execute a purchase order with Folsom Lake Ford in the amount of $304,651 for the purchase of eight 2017 Ford Explorer Police patrol cars. 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 full size patrol sedans of five years or 100,000 miles. In accordance with the policy, the Fleet Review Committee reviews all vehicles proposed for replacement and authorized replacing eight patrol vehicles on May 22, 2017. The 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 City of Palo Alto Page 2 reimbursement; pooling/sharing; the reassignment of another underutilized vehicle, or renting. For many years the City, like the majority of public agencies, purchased Ford’s Crown Victoria for police patrol vehicles. In 2013, Ford discontinued the model, leaving the City to identify a new model for its patrol vehicles. Representatives from the Police and Public Works Departments coordinated to extensively evaluate all possible options for replacement, deciding on Ford’s Explorer. The departments favored the Explorer for its handling, comfort, safety and maintenance requirements. Updated safety features include improved crumple zones, additional airbags, and ballistic doors. The vehicles also have more space for the growing amount of electronics and gear officers are mandated to carry inside the cars. The City began purchasing Explorers for police in 2015 and six are now in service. Discussion The Ford Explorer is the best replacement for the Ford Crown Victoria available, and many local, state, and federal law enforcement agencies are including them in their fleets. Staff recommends replacing eight Ford Crown Victoria patrol vehicles, all of which meet and/or exceed the age and mileage criteria for replacement. The City’s police cars serve a critical function under emergency conditions and as a result, the wear on these vehicles is significantly more rigorous than under normal driving conditions. Bid Process Section 2.30.360 (k) of the Palo Alto Municipal Code identifies the process that allows the use of another governmental or public agency’s contract, which in this case is California State Contract 1-15-23-14B. As such this purchase is exempt from competitive bidding. After reviewing the documentation provided by Folsom Lake Ford (Attachment A), staff recommends the proposal submitted be accepted and the purchase order be awarded to Folsom Lake Ford in the amount of $304,651. Resource Impact The replacement and build-out of these vehicles is estimated to total $448,651, City of Palo Alto Page 3 $304,651 for the replacement and $144,000 for the buildout. Therefore, each vehicle is estimated to cost $56,000. Funds for these vehicles are available in the Vehicle Replacement and Maintenance Fund, Scheduled Vehicle and Equipment Replacement Fiscal Year 2018 Capital Improvement Program project (VR-18000), contingent upon the adoption of the Fiscal Year 2018 Capital Budget. Police Department vehicle replacements are funded via annual allocated charges from the Police Department General Fund budget. It is anticipated that approximately $65,000 has not been collected from the department for these vehicles. This gap will either by funded from the Vehicle Replacement and Maintenance Fund ending fund balance or factored into the development of the annual budget in order to ensure the Vehicle Replacement and Maintenance Fund remains financially stable. Policy Implications Authorization of the contract does not represent any change to the existing policy. Environmental Review The vehicles to be purchased are in conformance with all applicable emissions laws and regulations, and will replace older vehicles that are currently in operation. Accordingly, this purchase is exempt from the California Environmental Quality Act (CEQA) under the Section 15061(b)(3) of the CEQA Guidelines. Attachments: Attachment A - Quote 2017 ORDER 12-14 WEEKS STATE CONTRACT 1-15-23-14B $34,929.00 $ 3,143.61 TAX @ 9.0 % $ 8.75 CA TIRE FEE --------------- $38,081.36 X 8 UNITS --------------- $304,650.88 LESS $500.00 DISCOUNT 20 DAY PAYMENT INCLUDES PAINTED WHITE ROOF AND 2 FRONT DOORS 5/22/2017 FOlS:IR ::·lAKE FORD THE _FORD.SOURCE 12755 FOLSOM BLVD. ·• FOLSOM, CA 95630. • (916) 353-2000 K8A 4DR AWD POLICE .112.6" WB Gl SHADOW BLACK 9 CLTH BKTS/VNL R w EBONY BLACK 500A EQUIP GRP .PREM SINGLE CD 99R .3.7L V6 TIVCT 44C .6-SPD AUTO TRAN 53M SYNC SYSTEM 16D BADGE DELETE 17A AUX CLIMATE CTL 17T CARGO DOME LAMP 18X 100 WATT SIREN 21P WIRING KIT-RR 423 CAL EM NOT REQD 43D COURTESY DISABL 51V SPTLMP LED DUAL 55B BLIND SPOT INFO 59B KEY CODE B 60R NOISE SUPPRESS 63B SD MARKER LGHTS 66A FRONT HDLMP PKG .GRILL WIRING 66C REAR LIGHT PKG 76D DEFLECTOR PLATE 76R REVERSE SENSING 87R RR VIEW MIR/CAM \!'90G LH/RH PANEL IV 936 CAL SER VEH EXP FLEX-FUEL 153 FRT LICENSE BKT DANIEL A. RAIMONDI Fleet Director (916} 353-2000, Ext. 376 Toll· Free 1-800-655-0555 cen. (916) 825-1622 Fax (916) 353-2078 City of Palo Alto (ID # 7956) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: FY 2017 University Circle Concrete Repair Project Title: Approval of a Contract With JJR Construction, Inc. in the Amount of $655,651 for the FY 2017 University Circle Concrete Repair, Capital Improvements Program Project PE-86070, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed $65,565 in Total Value From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute the attached contract with JJR Construction, Inc. (Attachment A) in an amount not to exceed $655,651 for the University Circle Pavement Repair Project, as part of the Capital Improvement Program project PE-86070; and 2. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with JJR Construction, Inc. for related, additional but unforeseen work that may develop during the project, the total value of which shall not exceed $65,565; and 3. Amend the Fiscal Year 2018 Budget for the Capital Improvement Fund, which is being considered for adoption later in the June 27, 2017 agenda (CMR# 8186) by: a. Increasing revenue from Other Agencies in the amount of $21,970; and b. Increasing the Capital Improvement Program project PE-86070 appropriation by $21,970. City of Palo Alto Page 2 Background Public Works Engineering Services Division manages construction contracts for concrete repair, preventive maintenance, resurfacing and reconstruction of various City streets annually. All City streets are surveyed annually by Public Works Engineering staff and rated by a computerized maintenance management system (PMMS) and Metropolitan Transportation Commission’s (MTC) pavement analysis program Street Saver. The project has been coordinated with the City’s Utilities Department and Transportation Division of Planning and Community Environment Department to minimize the cutting of newly resurfaced streets. Extensive public coordination has been conducted with representatives from Valley Transportation Authority, Stanford’s Marguerite, Samtrans, MacArthur Park restaurant, and Sheraton Hotel. Staff will continue to keep the community informed throughout the process, including flyers sent to adjacent residences and businesses and notices posted on Nextdoor and the City’s website. Discussion Project Description In 2005, concrete slabs were replaced on University Circle as part of a resurfacing project. Since then, many of the concrete slabs have failed again and require further attention. On March 1, 2017, the City hired Mott MacDonald, LLC to provide a geotechnical investigation and pavement section design for University Circle. Their report outlined the findings of the geotechnical investigation and recommended three options for the pavement section replacement, including two flexible pavement section replacements with asphalt over aggregate base and full depth asphalt, and one rigid concrete pavement replacement. Staff selected the rigid pavement replacement option since the University Circle Pavement Repairs Project will not replace the entire surface of the circle; only failed concrete slabs will be removed and replaced. This project will replace 12,000 square feet of concrete pavement, install 870 square feet of new sidewalk and install and/or replace six curb ramps. The pavement repairs will be conducted in three phases, each within a different section of the circle (Attachment C). The contractor will have ten days to complete each phase. This phasing allows for full access to the businesses within University Circle and proper curing time for the concrete pavement. Stanford City of Palo Alto Page 3 Marguerite pick up and drop off will remain at the transit center and VTA bus stops will be temporarily relocated to Quarry Road during construction. The project also includes the construction of a new concrete sidewalk as well as adding Americans with Disabilities Act (ADA) compliant curb ramps to the island in front of Macarthur Park restaurant. A portion of the concrete work falls within Stanford University’s right-of-way. Staff met with Stanford’s representative to discuss the scope of the work. Stanford has agreed to compensate the City for the cost of the concrete work on their land (Attachment B) and provide an easement to the City when the work is completed. Staff will work with Stanford’s representative to secure the easement after construction is completed. Bid Process On April 13, 2017, a notice inviting formal bids (IFB) for the Palo Alto FY 2017 University Circle Pavement Repairs Project was posted at City Hall and sent to 10 builder’s exchanges and 525 contractors through the City’s eProcurement system. The bidding period was 34 calendar days. No bids were received from any contractors on May 16, 2017. Staff contacted contractors that received the bid package to inquire why they did not submit a bid proposal. All contractor responses were that due to the project’s construction window being in the busy summer construction season, they have already committed to other projects and do not have the staff to do this project. The project was scheduled intentionally during July and August because of Stanford University’s summer break. This will minimize the impacts to the Transit Center at the University Circle. Summary of Bid Process Bid Name/Number Palo Alto FY 2017 University Circle Pavement Repairs Project IFB# 168147 Proposed Length of Project 45 calendar days Number of Bid Packages Downloaded by Builder’s Exchanges 9 Number of Bid Packages Downloaded by Contractors 10 Total Days to Respond to Bid 34 days City of Palo Alto Page 4 Pre-Bid Meeting No Number of Bids Received: 0 Bid Price Range N/A Palo Alto Municipal Code 2.30.360(C) provides an exemption from the competitive solicitation requirement where competitive bids or requests for proposals have been solicited and no bid or proposal has been received, or where no bid or proposal meeting the requirements of the invitation to bid or request for proposal has been received, provided that, in the case of a public works project, the project is not otherwise required by the charter to be formally bid. Pursuant to this section, staff requested JJR Construction, Inc. provide a bid for the project. JJR Construction, Inc. provided a bid for $655,651. The bid is 34% above the engineer’s estimate of $489,958. Staff has reviewed the bid submitted and recommends that the bid totaling $655,651 submitted by JJR Construction, Inc. be accepted. The change order amount of $65,565, ten percent of the total contract amount, is requested for related, additional, but unforeseen work that may develop during the project. Alternatively, this project could be re-bid early in 2018 with construction in March and April. However, Stanford University will be in session and the likelihood for rainy weather is higher. The relocation of VTA bus stops to Quarry Road would be much more disruptive with Stanford in session, and rainy weather could cause the temporary bus stop location to be in place longer. Additionally, staff believes that the engineer’s estimate for this project was low and that rebidding in early 2018 would still result in bids at least 10% higher than the engineer’s estimate. Staff recommends awarding the contract now and moving forward with construction in July and August as planned. Staff reviewed similar projects performed by JJR Construction, Inc., including those performed for the City and did not find any significant complaints with their previous work. Staff also checked with the Contractor's State License Board and found the contractor to have an active license on file. Resource Impact The majority of funding for the Palo Alto University Circle Pavement Repairs Project is in Capital Improvement Program Project, PE-86070, Street Maintenance. However, an additional appropriation of $21,970 is required as the City of Palo Alto Page 5 result of an agreement with Stanford University to reimburse the City for costs related to the pavement repair project that will occur on Stanford’s land. Policy Implications This project is in conformance with the City of Palo Alto’s Comprehensive Plan and does not represent any changes to existing City policies. Environmental Review This project is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301(c) of the CEQA Guidelines as repair, maintenance and/or minor alteration of existing facilities, and no further environmental review is necessary. Attachments: Attachment A: Construction Contract Attachment B: Stanford Funding Agreement Attachment C: Project Phasing Invitation for Bid (IFB) Package 1 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C17168147 City of Palo Alto University Circle Pavement Repairs Project Attachment A Invitation for Bid (IFB) Package 2 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….…………..6 1.1 Recitals…………………………………………………………………………………………………………………….6 1.2 Definitions……………………………………………………………………………………………………………….6 SECTION 2 THE PROJECT………………………………………………………………………………………………………...6 SECTION 3 THE CONTRACT DOCUMENTS………………………………………………………………………………..7 3.1 List of Documents…………………………………………………………………………………………….........7 3.2 Order of Precedence……………………………………………………………………………………………......7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………..8 4.1 Contractor's Duties…………………………………………………………………………………………………..8 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..8 5.1 Contractor's Co-operation………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………….......8 6.1 Time Is of Essence…………………………………………………………………………………………………….8 6.2 Commencement of Work…………………………………………………………………………………………8 6.3 Contract Time…………………………………………………………………………………………………………..8 6.4 Liquidated Damages…………………………………………………………………………………………………8 6.4.1 Other Remedies……………………………………………………………………………………………………..9 6.5 Adjustments to Contract Time………………………………………………………………………………….9 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………………….9 7.1 Contract Sum……………………………………………………………………………………………………………9 7.2 Full Compensation……………………………………………………………………………………………………9 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..9 8.1 Standard of Care…………………………………………………………………………………..…………………9 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..…10 9.1 Hold Harmless……………………………………………………………………………………………………….10 9.2 Survival…………………………………………………………………………………………………………………10 SECTION 10 NON-DISCRIMINATION……..………………………………………………………………………………10 10.1 Municipal Code Requirement…………….………………………………..……………………………….10 SECTION 11 INSURANCE AND BONDS.…………………………………………………………………………………10 Invitation for Bid (IFB) Package 3 Rev. March 17, 2017 CONSTRUCTION CONTRACT 11.1 Evidence of Coverage…………………………………………………………………………………………..10 SECTION 12 PROHIBITION AGAINST TRANSFERS…………………………………………………………….…11 12.1 Assignment………………………………………………………………………………………………………….11 12.2 Assignment by Law.………………………………………………………………………………………………11 SECTION 13 NOTICES …………………………………………………………………………………………………………….11 13.1 Method of Notice …………………………………………………………………………………………………11 13.2 Notice Recipents ………………………………………………………………………………………………….11 13.3 Change of Address……………………………………………………………………………………………….12 SECTION 14 DEFAULT…………………………………………………………………………………………………………...12 14.1 Notice of Default………………………………………………………………………………………………….12 14.2 Opportunity to Cure Default…………………………………………………………………………………12 SECTION 15 CITY'S RIGHTS AND REMEDIES…………………………………………………………………………..13 15.1 Remedies Upon Default……………………………………………………………………………………….13 15.1.1 Delete Certain Services…………………………………………………………………………………….13 15.1.2 Perform and Withhold……………………………………………………………………………………..13 15.1.3 Suspend The Construction Contract…………………………………………………………………13 15.1.4 Terminate the Construction Contract for Default………………………………………………13 15.1.5 Invoke the Performance Bond………………………………………………………………………….13 15.1.6 Additional Provisions……………………………………………………………………………………….13 15.2 Delays by Sureties……………………………………………………………………………………………….13 15.3 Damages to City…………………………………………………………………………………………………..14 15.3.1 For Contractor's Default…………………………………………………………………………………..14 15.3.2 Compensation for Losses…………………………………………………………………………………14 15.4 Suspension by City……………………………………………………………………………………………….14 15.4.1 Suspension for Convenience……………………………………………………………………………..14 15.4.2 Suspension for Cause………………………………………………………………………………………..14 15.5 Termination Without Cause…………………………………………………………………………………14 15.5.1 Compensation………………………………………………………………………………………………….15 15.5.2 Subcontractors………………………………………………………………………………………………..15 15.6 Contractor’s Duties Upon Termination………………………………………………………………...15 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES……………………………………………………………16 16.1 Contractor’s Remedies……………………………………..………………………………..………………….16 Invitation for Bid (IFB) Package 4 Rev. March 17, 2017 CONSTRUCTION CONTRACT 16.1.1 For Work Stoppage……………………………………………………………………………………………16 16.1.2 For City's Non-Payment…………………………………………………………………………………….16 16.2 Damages to Contractor………………………………………………………………………………………..16 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….…16 17.1 Financial Management and City Access………………………………………………………………..16 17.2 Compliance with City Requests…………………………………………………………………………….17 SECTION 18 INDEPENDENT PARTIES……………………………………………………………………………………..17 18.1 Status of Parties……………………………………………………………………………………………………17 SECTION 19 NUISANCE……………………………………………………………………………………………………….…17 19.1 Nuisance Prohibited……………………………………………………………………………………………..17 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………….17 20.1 Payment of Fees…………………………………………………………………………………………………..17 SECTION 21 WAIVER…………………………………………………………………………………………………………….17 21.1 Waiver………………………………………………………………………………………………………………….17 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS……………………………….18 22.1 Governing Law…………………………………………………………………………………………………….18 22.2 Compliance with Laws…………………………………………………………………………………………18 22.2.1 Palo Alto Minimum Wage Ordinance…………….………………………………………………….18 SECTION 23 COMPLETE AGREEMENT……………………………………………………………………………………18 23.1 Integration………………………………………………………………………………………………………….18 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………..18 24.1 Survival of Provisions……………………………………………………………………………………………18 SECTION 25 PREVAILING WAGES………………………………………………………………………………………….18 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………….19 26.1 Appropriation………………………………………………………………………………………………………19 SECTION 27 AUTHORITY……………………………………………………………………………………………………….19 27.1 Representation of Parties…………………………………………………………………………………….19 SECTION 28 COUNTERPARTS………………………………………………………………………………………………..19 28.1 Multiple Counterparts………………………………………………………………………………………….19 SECTION 29 SEVERABILITY……………………………………………………………………………………………………19 29.1 Severability………………………………………………………………………………………………………….19 SECTION 30 STATUTORY AND REGULATORY REFERENCES …………………………………………………..19 Invitation for Bid (IFB) Package 5 Rev. March 17, 2017 CONSTRUCTION CONTRACT 30.1 Amendments of Laws…………………………………………………………………………………………..19 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….….19 31.1 Workers Compensation…………………………………………………………………………………….19 SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS………………………………..…20 32.1 General Notice to Contractor…………………………………………………………………………….20 32.2 Labor Code section 1771.1(a)…………………………………………………………………………….20 32.3 DIR Registration Required…………………………………………………………………………………20 32.4 Posting of Job Site Notices…………………………………………………………………………………20 32.5 Payroll Records…………………………………………………………………………………………………20 Invitation for Bid (IFB) Package 6 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on June 27, 2017 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and J. J. R. CONSTRUCTION, INC. ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a corporation duly organized and in good standing in the State of California, Contractor’s License Number 665645 and Department of Industrial Relations Registration Number 1000004118. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On April 13, 2017, City issued an Invitation for Bids (IFB) to contractors for the University Circle Pavement Repairs (“Project”). The City did not receive any Bids in response to the IFB, per Palo Alto Municipal Code (PAMC) Section 2.30.360 (C), the City requested a bid from Contractor and the Contractor submitted a Bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the University Circle Pavement Repairs Project, located at University Circle, Palo Alto, CA. 94301 ("Project"). Invitation for Bid (IFB) Package 7 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Orders 3) Contract 4) Bidding Addenda 5) Special Provisions 6) General Conditions 7) Project Plans and Drawings 8) Technical Specifications 9) Instructions to Bidders 10) Invitation for Bids 11) Contractor's Bid/Non-Collusion Declaration 12) Reports listed in the Contract Documents 13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid) 14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid) 15) City of Palo Alto Traffic Control Requirements 16) City of Palo Alto Truck Route Map and Regulations 17) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 18) Performance and Payment Bonds 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Invitation for Bid (IFB) Package 8 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 4 CONTRACTOR’S DUTY. 4.1 Contractor’s Duties Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. SECTION 5 PROJECT TEAM. 5.1 Contractor’s Co-operation. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than . within forty five calendar days (45) after the commencement date specified in City’s Notice to Proceed. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion. 6.4 Liquidated Damages. Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the amount of 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 Contractor, Invitation for Bid (IFB) Package 9 Rev. March 17, 2017 CONSTRUCTION CONTRACT including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of Six Hundred Fifty Five Thousand Six Hundred Fifty One Dollars and Twenty Five Cents($655,651.25). [This amount includes the Base Bid and Additive Alternates .] 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents. SECTION 8 STANDARD OF CARE. 8.1 Standard of Care. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third-party claim relating to the Contract. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NON-DISCRIMINATION. 10.1 Municipal Code Requirement. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. 11.1 Evidence of coverage. Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Invitation for Bid (IFB) Package 11 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. 12.1 Assignment. City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City. 12.2 Assignment by Law. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice to Recipients. All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Public Works Administration 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Holly Boyd AND [Include Construction Manager, If Applicable.] Invitation for Bid (IFB) Package 12 Rev. March 17, 2017 CONSTRUCTION CONTRACT City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be sent by registered mail or certified mail with return receipt requested. All notices, demands, requests or approvals from City to Contractor shall be addressed to: J.J.R. Construction, Inc. 1120 Ninth Ave San Mateo, CA 94402 Attn: Carlos Raposo 13.3 Change of Address. In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DEFAULT. 14.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety. 14.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. Invitation for Bid (IFB) Package 13 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 15 CITY'S RIGHTS AND REMEDIES. 15.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following: 15.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 15.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 15.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 15.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 15.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 15.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 15.2 Delays by Sureties. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally Invitation for Bid (IFB) Package 14 Rev. March 17, 2017 CONSTRUCTION CONTRACT 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 Contractor and located at the Worksite for the purposes of completing the remaining Work. 15.3 Damages to City. 15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 15.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City. 15.4 Suspension by City 15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents. 15.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor. Invitation for Bid (IFB) Package 15 Rev. March 17, 2017 CONSTRUCTION CONTRACT 15.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. .4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated. 15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 15.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, Invitation for Bid (IFB) Package 16 Rev. March 17, 2017 CONSTRUCTION CONTRACT submittals of as-built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date. SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. 16.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 16.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 16.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 16.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 17 ACCOUNTING RECORDS. 17.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. Invitation for Bid (IFB) Package 17 Rev. March 17, 2017 CONSTRUCTION CONTRACT 17.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 18 INDEPENDENT PARTIES. 18.1 Status of parties. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 19 NUISANCE. 19.1 Nuisance Prohibited. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 20 PERMITS AND LICENSES. 20.1 Payment of Fees. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 21 WAIVER. 21.1 Waiver. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. Invitation for Bid (IFB) Package 18 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS. 22.1 Governing Law. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place. 22.2 Compliance with Laws. Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract. 22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 23 COMPLETE AGREEMENT. 23.1 Integration. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 24 SURVIVAL OF CONTRACT. 24.1 Survival of Provisions. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 25 PREVAILING WAGES. This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the public works contract does not include a project of $25,000 or less, when the project is for construction work, or the contract does not include a project of $15,000 or less, when the project is for alteration, demolition, repair, or maintenance (collectively, ‘improvement’) work. Or Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work Invitation for Bid (IFB) Package 19 Rev. March 17, 2017 CONSTRUCTION CONTRACT 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 adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. SECTION 26 NON-APPROPRIATION. 26.1 Appropriations. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 27 AUTHORITY. 27.1 Representation of Parties. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 28 COUNTERPARTS 28.1 Multiple Counterparts. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 29 SEVERABILITY. 29.1 Severability. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. SECTION 30 STATUTORY AND REGULATORY REFERENCES. 30.1 Amendments to Laws. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise required by law. SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. 31.1 Workers Compensation. Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: Invitation for Bid (IFB) Package 20 Rev. March 17, 2017 CONSTRUCTION CONTRACT “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.” SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS. 32.1 General Notice to Contractor. City requires Contractor and its listed subcontractors to comply with the requirements of SB 854. 32.2 Labor Code section 1771.1(a) City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” 32.3 DIR Registration Required. City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. 32.4 Posting of Job Site Notices. City gives notice to Contractor and its listed subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to SB 854-compliance monitoring and enforcement by DIR. 32.5 Payroll Records. City requires Contractor and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: (i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its listed subcontractors, in connection with the Project. (ii) The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its listed subcontractors, respectively. Invitation for Bid (IFB) Package 21 Rev. March 17, 2017 CONSTRUCTION CONTRACT (iii) At the request of City, acting by its project manager, Contractor and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of City’s request. City requests Contractor and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. (iv) If the certified payroll records are not produced to the project manager within the 10-day period, then Contractor and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v) Inform the project manager of the location of contractor’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager City Manager APPROVED AS TO FORM: ____________________________ City Attorney or designee APPROVED: ____________________________ Public Works Director CONTRACTOR Officer 1 By:___________________________ Name:________________________ Title:__________________________ Date: _________________________ Officer 2 By:____________________________ Name:_________________________ Title:___________________________ Date:____________________________ DB2/ 31475881.1 060717sl 1 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY FOR INSTALLATION OF SIDEWALK AND CURB RAMPS WITHIN STANFORD RIGHT‐OF‐WAY PROJECT NO. PE‐86070 UNIVERSITY CIRCLE PAVEMENT REPAIRS PROJECT This Agreement (“Agreement”) is made and entered into this _______ day of ________________, 2017, by and between The Board of Trustees of the Leland Stanford Junior University, a body having corporate powers under the State of California, (hereinafter called “University”), and the City of Palo Alto, a California chartered municpal corporation (hereinafter referred to as “City”), collectively referred to herein as the “Parties.” The effective date of tyhis Agreement will be the last date that this Agreement is executed by the Parties. RECITALS A. City is undertaking a project referred to as the “University Circle Pavement Repairs Project,” which includes traffic control improvements, concrete pavement repair, curb repair, installation of curb ramps, installation of a new sidewalk along the MacArthur Park Restaurant and striping. B. University is the owner of the area in front of the MacArthur Park Restaurant, which is shown on Exhibit A attached hereto and referred to in this Agreement as the “Project Area”. The Project Area and the MacArthur Park Restaurant are leased to MacArthur Park Corporation (“Lessee”) pursuant to that certain Sublease dated as of March 23, 1981 (the “Lease”). C. City and University desire to have sidewalk and curb ramps installed in front of the MacArthur Park Restaurant (the “Project”) in conjunction with City’s University Circle Pavement Repairs Project. B. The Parties desire to enter into an agreement for City to perform the sidewalk and curb ramps installation on behalf of University, with University to reimburse City up to an amount specified herein. NOW, THEREFORE, for and in consideration of their mutual promises and covenants, and subject to the terms, conditions, and provisions hereinafter set forth, the Parties agree as follows: AGREEMENT 1. Term: The term of this Agreement is from July 10, 2017 to September 8, 2017 inclusive, subject to the provisions of Section 7 herein. 2. Permission to Perform Work: University grants to City a right of entry and all DocuSign Envelope ID: 716D01EE-E6BE-4588-8FC2-6D735846682B DB2/ 31475881.1 060717sl 2 necessary permissions to do work to install sidewalk and curb ramps in front of the MacArthur Park Restaurant. 3. Scope of Work: City will provide labor and equipment necessary to install the sidewalk and curb ramps in accordance with City specifications in the Project Area. 4. Funding: University shall reimburse City in an amount not to exceed Twenty‐One Thousand Nine Hundred Seventy Dollars ($21,970) for work performed under this Agreement. University shall make payment to City within thirty (30) days after City’s submission to University of a reasonably detailed invoice after completion of the work. 5. Conduct of Work: City shall conduct its work on the Project without unreasonable interference with the operations of Lessee and only during normal business hours (from 7AM‐ 6PM Monday through Friday, and 8AM‐6PM on Saturdays). City shall not store any construction materials or equipment in the Project Area. 6. Easement: Upon completion of the work contemplated by this Agreement, University shall convey and grant an easement to the City to locate, construct use, maintain, inspect and repair the public sidewalk and curb ramps over, on, under and across the Project Area. City shall continue to have all ownership and maintenance responsibilities over the sidewalk and curb ramp facilities located within the Project Area. 7. Indemnification: University shall defend, indemnify and hold harmless City, its officers, agents and employees from all claims, damages, suits or actions arising out of or relating to the matters covered by this Agreement to the extent that such claims, damages, suits or actions are due to the negligence or reckless acts or omissions or willful misconduct of University. Likewise, City shall defend, indemnify and hold University harmless from all claims, suits or actions arising out of or relating to the matters covered by this Agreement to the extent such claims, suits or actions are due to the negligence or reckless acts or omissions or willful misconduct of City. 8. Governing Law: This Agreement shall be governed and interpreted by the laws of the State of California. 9. Entire Agreement: This Agreement, including all exhibits, represents the entire agreement between the Parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. 10. Amendments: This Agreement may be modified only by a written amendment executed by the Parties. DocuSign Envelope ID: 716D01EE-E6BE-4588-8FC2-6D735846682B DB2/ 31475881.1 060717sl 3 11. Successors and Assigns: This Agreement shall be binding upon the respective successors and assigns of the parties hereto. IN WITNESS WHEREOF, the Parties hereto, by their duly authorized representatives, have affixed their hands on the day and year first above written. CITY OF PALO ALTO THE BOARD OF TRUSTEES OF LELAND STANFORD JUNIOR UNIVERSITY By: ______________________ By: ___________________________ J. Michael Sartor Leonie Batkin Director of Public Works Managing Director, Asset Management APPROVED AS TO FORM: ___________________________ Assistant City Attorney THE UNDERSIGNED, AS LESSEE UNDER THE LEASE, HEREBY CONSENTS TO THE FOREGOING AGREEMENT AND AGREES THAT CITY SHALL HAVE ACCESS TO THE PROJECT AREA TO COMPLETE THE PROJECT. MACARTHUR PARK CORPORATION By: Its: DocuSign Envelope ID: 716D01EE-E6BE-4588-8FC2-6D735846682B President DocuSign Envelope ID: 716D01EE-E6BE-4588-8FC2-6D735846682B City of Palo Alto (ID # 7885) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Neighborhood Traffic Safety and Bicycle Boulevard Project Construction Contract Title: Approval of Contract Number C17161815 With Granite Construction Company in the Amount of $8,649,191 for the Construction of Neighborhood Traffic Safety and Bicycle Boulevard Improvements Along Amarillo Avenue, Bryant Street, East Meadow Drive, Montrose Avenue, Moreno Avenue, Louis Road, Palo Alto Avenue, and Ross Road, Consistent with Approved Concept Plans and the City's Adopted Bicycle + Pedestrian Transportation Plan and Approval of an Appropriation Budget Amendment in the Fiscal Year 2018 Capital Improvement Fund From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council approve the following actions related to the award of the construction contract for the Amarillo Avenue-Moreno Avenue, Bryant Street Update, Louis Road-Montrose Avenue, and Ross Road neighborhood traffic safety and bicycle boulevard project. The project elements are consistent with prior concept plan approvals and the City’s adopted Bicycle + Pedestrian Transportation Plan, and constitute a portion of CIP Project PL- 04010: 1. Authorize the City Manager or his designee to execute the attached construction contract with Granite Construction Company (Attachment A) in an amount not to exceed $8,694,191 for the Base Bid elements of the Amarillo Avenue-Moreno Avenue, Bryant Street Update, Louis Road-Montrose Avenue, and Ross Road neighborhood traffic safety and bicycle boulevard project; 2. Authorize City Manager or his designee to negotiate and execute one or more change orders to the contract with Granite Construction Company for related, unforeseen work, City of Palo Alto Page 2 which may develop during the project, for a total value of not to exceed $869,419, or 10% of the Base Bid work, bringing the total construction contract award total to $9,563,610; and 3. Amend the Fiscal Year 2018 Budget appropriation Ordinance for the Capital Improvement Fund, which is being considered for adoption later in the June 27, 2017 agenda (CMR# 8186 ), by: a. Increasing the appropriation for CIP Project PL-04010 by $6,000,000; and, b. Decreasing the Infrastructure Reserve by $5,796,537; and, c. Increasing Revenue from Other Agencies by $203,463 for the award of Transportation Development Act Article 3 funds from the Santa Clara Valley Transportation Authority. Executive Summary The concept plans for this project were approved by the Council on May 9, 2016. Design and construction are being primarily funded by the Council Infrastructure Plan. The Bicycle + Pedestrian Transportation Plan (hereinafter “Plan”), adopted by Council in 2012, identifies a network of bicycle boulevards throughout the City. This network includes the Amarillo Avenue-Moreno Avenue, Bryant Street Update, Louis Road-Montrose Avenue, and Ross Road (AMBLUR) neighborhood traffic safety and bicycle boulevard project. As currently designed, the proposed project would advance the approved Plan by: Enhancing the existing Bryant Street Bicycle Boulevard from Palo Alto Avenue to East Meadow Drive, where it connects to the proposed Bryant Street Bicycle Boulevard extension, providing a continuous bicycle route from Menlo Park to Mountain View. Constructing the Ross Road Bicycle Boulevard from Garland Drive, which is just north of Oregon Expressway, to Louis Road, where it will connect to the proposed Louis Road- Montrose Avenue Bicycle Boulevard, providing a second north-south on-street bikeway for Palo Alto residents. Constructing the Louis Road-Montrose Avenue Bicycle Boulevard from Middlefield Road to the proposed Adobe Creek US 101 Overcrossing. A portion of this route was identified in the Bicycle + Pedestrian Transportation Plan, and was expanded with additional design funding from Google. This route connects the proposed Adobe Creek- US 101 Bicycle and Pedestrian Overcrossing to the proposed Ross Road Bicycle Boulevard, providing a system of connections within Palo Alto and, once the overcrossing is complete, to the San Francisco Bay Trail and employment centers in the City of Mountain View. City of Palo Alto Page 3 Constructing the Amarillo Avenue-Moreno Avenue Bicycle Boulevard from Middlefield Road to West Bayshore Road, providing an east-west connection across Palo Alto and enhancing the system by connecting to the Ross Road Bicycle Boulevard. These project elements are consistent with prior concept plan approvals from the City Council and represent a significant step towards Palo Alto’s vision of a system of neighborhood bicycle routes that provide continuous, low-stress on-street bikeways with travel time and safety improvements to support healthy transportation. The proposed improvements incorporate focused bicycle and pedestrian enhancements and traffic calming measures to reduce motor vehicle speeds, as well as intersection modifications, repaving, and improvements to arterial crossings to better serve a diversity of ages and abilities. The improvements also incorporate many suggestions developed through the City’s Safe Routes to Schools collaboration with the School district, parents and students. The total cost of the project ($9,563,610 including contingencies) represents approximately 47.5% of the $20 million originally set aside for Bicycle + Pedestrian Transportation Plan implementation in the City Council Infrastructure Plan, and represents approximately 54% of bike boulevard improvements that are currently being designed. Funding is available in overall FY 2018-2022 five-year CIP Project PL-04010 for this contract; however, only $5.0 million is currently recommended to be budgeted in Fiscal Year 2018 as part of the FY 2018 Proposed Capital Budget. Subject to the adoption of the Fiscal Year 2018 Budget which is scheduled later in the June 27, 2017 agenda, a Budget Amendment is being recommended in this memorandum to shift $6.0 million from the out years of the five-year CIP to FY 2018 for PL- 04010. This Budget Amendment advances necessary funds to construct the project and will not impact staff’s ability to implement other projects identified in PL-04010. Background The Bicycle + Pedestrian Transportation Plan was adopted by the City Council in July 2012. The Plan includes a proposed bikeway network of off-street multi-use paths, bicycle boulevards, bicycle lanes, and enhanced bikeway facilities. The plan has stated goals of increasing bicycle traffic for local and work commute trips by 100% by 2020 by providing improved facilities along the proposed bicycle network, which facilitates both north-south and east-west connectivity throughout Palo Alto. A copy of the Proposed Bikeway Network is provided in Attachment B. Implementation of the Plan started in 2013 with City Council authorization of up to $1.2M per year over five years as part of the Capital Improvement Program (CIP). With this commitment of funds, 18 projects are currently being studied and designed for implementation. Since award of consultant contracts in April 2014, bicycle network implementation has focused primarily on bicycle boulevards and enhanced bikeways, although transportation staff has also been City of Palo Alto Page 4 coordinating with Public Works and Community Services staff to deliver transportation projects through public works and parks contracts for street resurfacing and park improvements. Staff has also been working to implement data-driven spot improvements in response to customer requests, and seeks to ensure ongoing rehabilitation and maintenance of the bicycle and pedestrian network and incorporation of green infrastructure and storm water treatment where feasible. Concept planning was initiated for this project in 2014. Funding for the Concept Plan was provided by both the City of Palo Alto and Google, Inc., which requested that the City consider bicycle boulevards in the southern part of Palo Alto where connections could be made to Mountain View. Bicycle Boulevards Purpose and Benefits The City pioneered the creation of the first “bicycle boulevard” – turning Bryant Street north of East Meadow Drive, a residential street, into a street that prioritized bicycle safety and circulation in 1982. The Comprehensive Plan defines a bicycle boulevard as a “low volume through-street where bicycles have priority over automobiles, conflicts between bicycles and automobiles are minimized, and bicycle travel time is reduced by the removal of stop signs and other impediments to bicycle travel. The removal of stop signs is especially important in Palo Alto, due to the large number of stop signs on local and collector streets.” Key characteristics that make bicycle boulevards attractive and safer for people who bicycle are: • Low traffic volumes • Low vehicle speeds • Discouragement of non-local motor vehicle traffic • Free-flow travel for people on bicycles by assigning the right-of-way to the bicycle boulevard at intersections wherever possible • Traffic control to help bicycles cross major streets One important feature of bicycle boulevards that greatly improves cycling efficiency is reduction in the number of stop signs; this measure improves travel time and reduces fatigue. Reducing cyclist fatigue increases the feasible length of a trip by bicycle, and is especially important to people who are hauling trailers, carrying children, groceries, or parcels, thereby encouraging more trips by bicycle. Funding currently exists for the construction of this project. The Council-approved Concept Plan Line served as the basis for the Final Design, helping to determine the level of effort for a contract to construct these routes. A detailed cost estimate for the Amarillo Avenue-Moreno Avenue, Bryant Street Update, Louis Road-Montrose Avenue, and Ross Road neighborhood traffic safety and bicycle boulevard project was developed as part of the Final Design phase of City of Palo Alto Page 5 work. As part of the approval of the City’s Infrastructure Plan, the City Council allocated $20.0 million towards the implementation of the 2012 Bicycle + Pedestrian Transportation Plan. Alta Planning + Design, Inc. was the planning and design consultant for this project. In March 2014 Council awarded an 18-month concept planning contract to Alta Planning + Design, Inc. for planning and preliminary environmental assessment of the Bryant Street bicycle boulevard update, Greer Road bicycle boulevard, Moreno Avenue-Amarillo Avenue bicycle boulevard, Ross Road bicycle boulevard, and Homer Avenue-Channing Avenue enhanced bikeway. City Council Staff Report 4372 for this contract award can be found here: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=39437. In December 2015, Amendment One was executed, which extended the term of the contract until March 2016 at no costs to the city. On March 28, 2016, Amendment Two was approved, which extended the term of the contract until March 2017 at no cost to the City. This concept planning contract was completed and the Concept Plan was adopted by City Council on May 9, 2016. At this meeting, City Council also approved a final design contract with Alta Planning + Design, Inc. and a California Environmental Quality Act (CEQA) exemption for the Amarillo Avenue-Moreno Avenue, Bryant Street Update, Louis Road-Montrose Avenue, and Ross Road neighborhood traffic safety and bicycle boulevard project. City Council Staff Report 6904 for the Concept Plan adoption and final design contract award can be found here: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=52165. A detailed summary of the project is included in this report. Amarillo Avenue-Moreno Avenue, Bryant Street Update, Louis Road-Montrose Avenue, and Ross Road (AMBLUR) Neighborhood Traffic Safety and Bicycle Boulevard Project The City released the Palo Alto Bicycle Boulevards Request for Proposals (RFP) on October 1, 2013. The RFP scope included ten bicycle boulevards and enhanced bikeway projects. On March 17, 2014, Council awarded an 18-month contract to Alta Planning + Design, Inc. in the amount of $400,000 for planning and preliminary environmental assessment of the Bryant Street bicycle boulevard update (from Palo Alto Avenue to 100 feet north of East Meadow Drive); the Greer Road bicycle boulevard (from Edgewood Drive to Louis Road); the Moreno Avenue- Amarillo Avenue bicycle boulevard (from Middlefield Road to West Bayshore Road); the Ross Road bicycle boulevard (from North California Avenue to Louis Road); and the Homer Avenue- Channing Avenue enhanced bikeway (from Alma Street to Guinda Avenue). On December 28, 2015, Amendment One was executed, which extended the term of the contract until March 8, 2016. The amended contract expired on March 8, 2016. On March 28, 2016, Amendment Two was approved, which extended the term of the contract until March 2017 at no cost to the city. This extension was required to complete the planning, community outreach, conceptual design, and preliminary environmental assessment for the Greer Road bicycle boulevard and Homer Avenue-Channing Avenue enhanced bikeway. This concept planning contract was completed and the Concept Plan was adopted by City Council on May 9, 2016. At this meeting, City Council also approved a final design contract with Alta Planning + Design, Inc. and a California City of Palo Alto Page 6 Environmental Quality Act (CEQA) exemption for the Amarillo Avenue-Moreno Avenue, Bryant Street Update, Louis Road-Montrose Avenue, and Ross Road neighborhood traffic safety and bicycle boulevard project. The final design contract is substantially complete and 100% plans, specifications and estimates were transmitted to Staff on April 28, 2017. An IFB was posted on Planet Bids on May 2, 2017 and bids were due to the City by May 30, 2017. An optional pre-bid meeting was held at City Hall on May 15, 2017. Community Outreach Community outreach and public participation was instrumental to concept plan development since the beginning of the neighborhood traffic safety and bicycle boulevard projects, and has continued throughout the final design process. The development of the Concept Plans included many community meetings, ride-a-longs, and other events that helped shape the location and types of improvements that each plan recommends. Detailed information on community engagement efforts during the concept planning phase is included in City Council Staff Report 6904: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=52165. During the final design phase of the project, PABAC continued to provide valuable input, and an open house was held at the Mitchell Park Community Center in November 2016. In addition a dedicated project website and e-mail list has been maintained throughout the planning and design process. Bryant Street Extension, Maybell Avenue, Stanford Avenue, Park Boulevard, and Wilkie Way, Neighborhood Traffic Safety and Bicycle Boulevard Project Once construction of the AMBLUR project is complete, 7.1 miles of bicycle boulevards will have been constructed, representing approximately 15.4% of the 2012 Bicycle + Pedestrian Transportation Plan. The second phase of the project, which includes the Bryant Street Extension, Maybell Avenue, Stanford Avenue, Park Boulevard, and Wilkie Way neighborhood traffic safety and bicycle boulevard project is slated for construction in summer 2018. This project is currently in the final design phase and is being designed by Fehr & Peers. The construction documents for this project are anticipated to be complete in late 2017, and an invitation for bids will be released in the fall with construction anticipated to begin in summer 2018. Upon the completion of both projects, 13.1 miles of bike boulevards will have been added to the City’s bicycle network. These projects in addition to other pending enhanced bikeways in 2018 represent a 62.5% buildout of major projects in the Bicycle + Pedestrian Transportation Plan. Discussion City of Palo Alto Page 7 On May 2, 2017, a notice inviting formal bids (IFB) for Neighborhood Traffic Safety & Bicycle Boulevard Project was posted on Planet Bids. The bidding period was 35 calendar days. Bids were received from 2 qualified contractors on June 6, 2017. A Bid Summary is included in Attachment C. Summary of Bid Process Bid Name/Number Neighborhood Traffic Safety & Bicycle Boulevard Project Proposed Length of Project 365 calendar days Total Days to Respond to Bid 35 Pre-Bid Meeting? Yes, an optional meeting was held on May 15, 2017 at City Hall. Number of Bids Received: 2 Base Bid Price Range From a low of $8,694,191 to a high of $10,662,379 Base bids ranged from a low of $8,694,191 to a high of $10,662,379. The higher bids are indicative of a changing economic climate and many local construction projects are quickly driving up construction prices. Staff has reviewed all bids submitted and recommends that the base bid totaling $8,694,191 submitted by Granite Construction Company be accepted and that Granite Construction Company be declared the lowest responsible bidder. The change order amount of $869,419 which equals 10 percent of the total contract is requested for related, additional, but unforeseen work which may develop during the project, bring the total contract to $9,563,610. Granite Construction Company has previous experience working with the City of Palo Alto on many Public Works projects. Staff has also checked with the Contractor's State License Board and found that the contractor has an active license on file. Project Summary This construction project includes 7.1 miles of neighborhood traffic calming and bicycle boulevards. The project includes the construction of 5 raised intersections, 3 raised crosswalks, 11 traffic circles, and both new and refreshed crosswalks throughout the project area. Chicanes, slotted speed humps, curb extensions, medians, and ADA curb ramps at crosswalks will be installed throughout the project area. In addition to the 11 intersections that will undergo redesign with the addition of traffic circles, 4 additional intersections will undergo redesign with curb extensions to encourage slower speeds and safer conditions for all roadway users. All in street medians, traffic circles, and other obstructions have been designed with mountable curbs and can be easily traversed by Fire Department and other emergency vehicles. City of Palo Alto Page 8 In street chicanes with new street trees will be installed along Ross Road, providing both traffic calming, shade and neighborhood beautification. Landscaping is also included in several of the curb extensions project-wide, in addition to green storm water infrastructure to reduce the amount of urban stormwater pollution that enters the San Francisco Bay. Bicycle oriented roadway markings such as sharrows and Bicycle Boulevard legends, in coordination with wayfinding signage will demarcate routes and orient cyclists and pedestrians to local institutions and regional destinations. Finally, a new off-street shared-use path will be constructed as part of the project. Stop signs along bicycle boulevards are turned to ease movement by bicycles to the maximum extent feasible. Traffic calming is introduced along the corridors to reduce vehicle speeds and prevent non-local traffic. The following street extents will be constructed to provide critical bicycle linkages in and through Palo Alto: 1. Enhance the existing Bryant Street Bicycle Boulevard from Palo Alto Avenue to East Meadow Drive, where it connects to the proposed Bryant Street Bicycle Boulevard extension. This corridor provides a continuous bicycle route from Menlo Park to Mountain View. 2. Construct the Ross Road Bicycle Boulevard from Garland Drive, which is just north of Oregon Expressway, to Louis Road, where it will connect to the proposed Louis Road- Montrose Avenue Bicycle Boulevard. The Ross Road Bicycle Boulevard provides a second north-south on-street bikeway for Palo Alto residents. 3. Construct the Louis Road-Montrose Avenue Bicycle Boulevard from Middlefield Road to the proposed Adobe Creek US 101 Overcrossing. A portion of this route was identified in the Bicycle + Pedestrian Transportation Plan, but was expanded with additional funding from Google. This route connects the proposed Adobe Creek US 101 Overcrossing to the proposed Ross Road Bicycle Boulevard, providing a system of connections within Palo Alto and, once the overcrossing is complete, to the San Francisco Bay Trail and employment centers in the City of Mountain View. 4. Construct the Amarillo Avenue-Moreno Avenue Bicycle Boulevard from Middlefield Road to West Bayshore Road. This route provides and east-west connection across Palo Alto and enhances the system by connecting to the Ross Road Bicycle Boulevard. Timeline Upon Council approval and Notice to Proceed issuance to the Contractor, Staff anticipates an approximately twelve-month construction period for the project. Resource Impact City of Palo Alto Page 9 As part of the approval of 2014 Council Infrastructure Plan, the City Council allocated $20.0 million towards bicycle and pedestrian plan implementation. For Fiscal Years 2018 through FY 2022, $14.9 million has been budgeted in the CIP for the Bicycle + Pedestrian Transportation Plan Implementation Project (PL-04010), with $5.0 million in FY 2018. Staff requests a budget amendment to the Fiscal Year 2018 Proposed Capital Budget, being considered for adoption later in the June 27, 2017 agenda, to adjust the expenditure schedule to provide funding of $9.6 million for this contract and additional budget for the release of an RFP this fall for Phase II of Neighborhood Traffic Safety and Bicycle Boulevard Improvements. With this additional appropriation, $1.4 million will be available to partially cover Phase II work which is anticipated to begin in Fiscal Year 2018 and be completed in Fiscal Year 2019. Phase II includes traffic calming and bicycle boulevard improvements on Maybell Ave, Park Blvd, Wilkie Way, Stanford Ave, and the Bryant St Extension. The Bryant St extension will continue the existing Bryant St bike boulevard south from its current terminus at East Meadow Dr. to the City’s border with Mountain View. Staff recommends adjusting the expenditure schedule for future years to remain within the five year total of $14.9 million as shown below. Adjusting the expenditure schedule will not impact staff’s ability to implement remaining Bicycle + Pedestrian Transportation Plan Implementation Projects envisioned in PL-04010. FY2018 FY2019 FY2020 FY2021 FY2022 5 Year Total Construction $4,972,921 $5,173,079 $2,988,347 $1,808,345 $0 $14,942,692 Design $0 $0 $0 $0 $0 $0 Total $4,972,921 $5,173,079 $2,988,347 $1,808,345 $0 $14,942,692 Construction $10,972,921 $2,200,000 $1,769,771 $0 $0 $14,942,692 Design $0 $0 $0 $0 $0 $0 Total $10,972,921 $2,200,000 $1,769,771 $0 $0 $14,942,692 Expenditure Schedule As shown in FY18 Proposed Capital Budget Book Proposed in this staff report Staff actively seeks regional, state and federal grant funding to offset resources identified for bicycle and pedestrian plan implementation. As grant funds are secured or low-cost project improvements identified, Transportation Division staff coordinates with the Public Works Department for implementation as part of the street resurfacing program. Minor elements of the Concept Plans are implemented opportunistically through the Transportation Division’s other CIPs for pavement markings, signs and traffic signals. In FY 2017, $203,463 in Transportation Development Act Article 3 funds were awarded by the Santa Clara Valley Transportation Authority to help fund project PL-04010. Staff expects to receive this funding in Fiscal Year 2018 and requests an amendment to Revenue from Other Agencies, as shown below, to recognize and appropriate these funds. City of Palo Alto Page 10 FY2018 FY2019 FY2020 FY2021 FY2022 5 Year Total Capital Improvement Fund (227,079)$ 3,973,079$ 1,788,347$ 1,808,345$ $0 7,342,692$ Transfer from Stanford University Medical Center Fund 5,200,000$ 1,200,000$ 1,200,000$ $0 $0 7,600,000$ Total 4,972,921$ 5,173,079$ 2,988,347$ 1,808,345$ -$ 14,942,692$ Capital Improvement Fund 5,569,458$ 1,000,000$ 569,771$ $0 $0 7,139,229$ Transfer from Stanford University Medical Center Fund 5,200,000$ 1,200,000$ 1,200,000$ $0 $0 7,600,000$ TDA Grant 203,463$ -$ -$ $0 $0 203,463$ Total 10,972,921$ 2,200,000$ 1,769,771$ $0 $0 14,942,692$ Funding Sources Schedule As shown in FY 18 Proposed Capital Budget Book Proposed in this staff report Policy Implications The Bicycle + Pedestrian Transportation Plan identifies and prioritizes the development of the bicycle boulevard network. The Plan objectives that are addressed by the development of the Amarillo Avenue-Moreno Avenue, Bryant Street Update, Louis Road-Montrose Avenue, and Ross Road neighborhood traffic safety and bicycle boulevard project are: Objective 1: Double the rate of bicycling for both local and total work commutes by 2020 (to 15% and 5%, respectively). Objective 2: Convert discretionary vehicle trips into walking and bicycling trips in order to reduce City transportation-related greenhouse gas (GHG) emissions 15% by 2020. Objective 3: Develop a core network of shared paths, bikeways, and traffic-calmed streets that connects business and residential districts, schools, parks, and open spaces to promote healthy, active living. Objective 4: Plan, construct, and maintain ‘Complete Streets’ that are safe and accessible to all modes and people of all ages and abilities. Objective 5: Promote efficient, sustainable, and creative use of limited public resources through integrated design and planning. In addition, the Comprehensive Plan goals, policies, and programs that support the development of the Amarillo Avenue-Moreno Avenue, Bryant Street Update, Louis Road- Montrose Avenue, and Ross Road Bicycle neighborhood traffic safety and bicycle boulevard project include: City of Palo Alto Page 11 Goal T-1: Less Reliance on Single-Occupant Vehicles Goal T-3: Facilities, Services, and Programs the Encourage and Promote Walking and Bicycling Program T-19: Develop, periodically update, and implement a bicycle facilities improvement program and a pedestrian facilities improvement program that identify and prioritize critical pedestrian and bicycle links to parks, schools, retail centers, and civic facilities. Program T-22: Implement a network of bike boulevards. Policy T-25: When constructing or modifying roadways, plan for usage of the roadway space by all users, including motor vehicles, transit vehicles, bicyclists, and pedestrians. Policy T-34: Implement traffic calming measures to slow traffic on local and collector residential streets and prioritize these measures over congestion management. Include traffic circles and other traffic calming devices among these measures. While it is difficult to estimate the impacts of individual bicycle boulevard projects, staff has reviewed data collected from seven of the City’s VIMOC bicycle and pedestrian detection cameras. Approximately 80,000 average riders per-year use bicycle boulevards in Palo Alto. A high of 216,000 riders per-year has been recorded on the Bryant Street bicycle boulevard. The numbers provided by the VIMOC system were compared to bicycle counts that were conducted in the early stages of this project, and the comparison shows the numbers to be within what is the expected range given previous counts. Increasing the bicycle boulevard network within Palo Alto will help the City meet its goal of increasing bicycle traffic for local and work commute trips by 100% by 2020. Environmental Review A Negative Declaration for the Bicycle + Pedestrian Transportation Plan was adopted on September 4, 2012. Each individual project is subject to environmental assessment after there is agreement on a Concept Plan Line for further study. At the time the Concept Plan Line was approved by City Council, this project was found to be exempt from the provisions of the CEQA pursuant to Class 1, Section 15301, Existing Facilities, as the road work will facilitate bicycle and pedestrian use and will not increase roadway capacities. A Notice of Exemption was filed by the City on May 16, 2016 (Attachment E) and no additional environmental review is required for approval of the construction of this project. City of Palo Alto Page 12 Attachments: Attachment A: C17168185 Granite Construction Contract (PDF) Attachment B: Proposed Palo Alto Bicycle Network Map (PDF) Attachment C: AMBLUR BID Summary Sheet (PDF) Attachment D: BPTP Info-Graphic Maps (PDF) Attachment E - CEQA Notice of Exemption 5-17-16 (PDF) Attachment F: Council Presentation (PDF) Invitation for Bid (IFB) Package 1 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C17168185 City of Palo Alto Neighborhood Traffic Safety & Bicycle Boulevard Project (AMBLUR Bicycle Boulevards) Invitation for Bid (IFB) Package 2 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….…………..6 1.1 Recitals…………………………………………………………………………………………………………………….6 1.2 Definitions……………………………………………………………………………………………………………….6 SECTION 2 THE PROJECT………………………………………………………………………………………………………...6 SECTION 3 THE CONTRACT DOCUMENTS………………………………………………………………………………..7 3.1 List of Documents…………………………………………………………………………………………….........7 3.2 Order of Precedence……………………………………………………………………………………………......7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………..8 4.1 Contractor's Duties…………………………………………………………………………………………………..8 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..8 5.1 Contractor's Co-operation………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………….......8 6.1 Time Is of Essence…………………………………………………………………………………………………….8 6.2 Commencement of Work…………………………………………………………………………………………8 6.3 Contract Time…………………………………………………………………………………………………………..8 6.4 Liquidated Damages…………………………………………………………………………………………………8 6.4.1 Other Remedies……………………………………………………………………………………………………..9 6.5 Adjustments to Contract Time………………………………………………………………………………….9 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………………….9 7.1 Contract Sum……………………………………………………………………………………………………………9 7.2 Full Compensation……………………………………………………………………………………………………9 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..9 8.1 Standard of Care…………………………………………………………………………………..…………………9 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..…10 9.1 Hold Harmless……………………………………………………………………………………………………….10 9.2 Survival…………………………………………………………………………………………………………………10 SECTION 10 NON-DISCRIMINATION……..………………………………………………………………………………10 10.1 Municipal Code Requirement…………….………………………………..……………………………….10 SECTION 11 INSURANCE AND BONDS.…………………………………………………………………………………10 Invitation for Bid (IFB) Package 3 Rev. March 17, 2017 CONSTRUCTION CONTRACT 11.1 Evidence of Coverage…………………………………………………………………………………………..10 SECTION 12 PROHIBITION AGAINST TRANSFERS…………………………………………………………….…11 12.1 Assignment………………………………………………………………………………………………………….11 12.2 Assignment by Law.………………………………………………………………………………………………11 SECTION 13 NOTICES …………………………………………………………………………………………………………….11 13.1 Method of Notice …………………………………………………………………………………………………11 13.2 Notice Recipents ………………………………………………………………………………………………….11 13.3 Change of Address……………………………………………………………………………………………….12 SECTION 14 DEFAULT…………………………………………………………………………………………………………...12 14.1 Notice of Default………………………………………………………………………………………………….12 14.2 Opportunity to Cure Default…………………………………………………………………………………12 SECTION 15 CITY'S RIGHTS AND REMEDIES…………………………………………………………………………..13 15.1 Remedies Upon Default……………………………………………………………………………………….13 15.1.1 Delete Certain Services…………………………………………………………………………………….13 15.1.2 Perform and Withhold……………………………………………………………………………………..13 15.1.3 Suspend The Construction Contract…………………………………………………………………13 15.1.4 Terminate the Construction Contract for Default………………………………………………13 15.1.5 Invoke the Performance Bond………………………………………………………………………….13 15.1.6 Additional Provisions……………………………………………………………………………………….13 15.2 Delays by Sureties……………………………………………………………………………………………….13 15.3 Damages to City…………………………………………………………………………………………………..14 15.3.1 For Contractor's Default…………………………………………………………………………………..14 15.3.2 Compensation for Losses…………………………………………………………………………………14 15.4 Suspension by City……………………………………………………………………………………………….14 15.4.1 Suspension for Convenience……………………………………………………………………………..14 15.4.2 Suspension for Cause………………………………………………………………………………………..14 15.5 Termination Without Cause…………………………………………………………………………………14 15.5.1 Compensation………………………………………………………………………………………………….15 15.5.2 Subcontractors………………………………………………………………………………………………..15 15.6 Contractor’s Duties Upon Termination………………………………………………………………...15 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES……………………………………………………………16 16.1 Contractor’s Remedies……………………………………..………………………………..………………….16 Invitation for Bid (IFB) Package 4 Rev. March 17, 2017 CONSTRUCTION CONTRACT 16.1.1 For Work Stoppage……………………………………………………………………………………………16 16.1.2 For City's Non-Payment…………………………………………………………………………………….16 16.2 Damages to Contractor………………………………………………………………………………………..16 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….…16 17.1 Financial Management and City Access………………………………………………………………..16 17.2 Compliance with City Requests…………………………………………………………………………….17 SECTION 18 INDEPENDENT PARTIES……………………………………………………………………………………..17 18.1 Status of Parties……………………………………………………………………………………………………17 SECTION 19 NUISANCE……………………………………………………………………………………………………….…17 19.1 Nuisance Prohibited……………………………………………………………………………………………..17 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………….17 20.1 Payment of Fees…………………………………………………………………………………………………..17 SECTION 21 WAIVER…………………………………………………………………………………………………………….17 21.1 Waiver………………………………………………………………………………………………………………….17 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS……………………………….18 22.1 Governing Law…………………………………………………………………………………………………….18 22.2 Compliance with Laws…………………………………………………………………………………………18 22.2.1 Palo Alto Minimum Wage Ordinance…………….………………………………………………….18 SECTION 23 COMPLETE AGREEMENT……………………………………………………………………………………18 23.1 Integration………………………………………………………………………………………………………….18 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………..18 24.1 Survival of Provisions……………………………………………………………………………………………18 SECTION 25 PREVAILING WAGES………………………………………………………………………………………….18 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………….19 26.1 Appropriation………………………………………………………………………………………………………19 SECTION 27 AUTHORITY……………………………………………………………………………………………………….19 27.1 Representation of Parties…………………………………………………………………………………….19 SECTION 28 COUNTERPARTS………………………………………………………………………………………………..19 28.1 Multiple Counterparts………………………………………………………………………………………….19 SECTION 29 SEVERABILITY……………………………………………………………………………………………………19 29.1 Severability………………………………………………………………………………………………………….19 SECTION 30 STATUTORY AND REGULATORY REFERENCES …………………………………………………..19 Invitation for Bid (IFB) Package 5 Rev. March 17, 2017 CONSTRUCTION CONTRACT 30.1 Amendments of Laws…………………………………………………………………………………………..19 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….….19 31.1 Workers Compensation…………………………………………………………………………………….19 SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS………………………………..…20 32.1 General Notice to Contractor…………………………………………………………………………….20 32.2 Labor Code section 1771.1(a)…………………………………………………………………………….20 32.3 DIR Registration Required…………………………………………………………………………………20 32.4 Posting of Job Site Notices…………………………………………………………………………………20 32.5 Payroll Records…………………………………………………………………………………………………20 Invitation for Bid (IFB) Package 6 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on 27th Day of June, 2017 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and GRANITE CONSTRUCTION COMPANY ("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a Corporation duly organized and in good standing in the State of California, Contractor’s License Number 89 and Department of Industrial Relations Registration Number 1000000085. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On May 2, 2017, City issued an Invitation for Bids (IFB) 168185 to contractors for the Neighborhood Traffic Safety & Bicycle Boulevard (AMBLUR Bicycle Boulevards) (“Project”). In response to the IFB, Contractor submitted a Bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the Neighborhood Traffic Safety & Bicycle Boulevard Project (AMBLUR Bicycle Boulevards) Project, located at various locations throughout, Palo Alto, CA. ("Project"). Invitation for Bid (IFB) Package 7 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Orders 3) Contract 4) Bidding Addenda 5) Special Provisions 6) General Conditions 7) Project Plans and Drawings 8) Technical Specifications 9) Instructions to Bidders 10) Invitation for Bids 11) Contractor's Bid/Non-Collusion Declaration 12) Reports listed in the Contract Documents 13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid) 14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid) 15) City of Palo Alto Traffic Control Requirements 16) City of Palo Alto Truck Route Map and Regulations 17) Notice Inviting Pre-Qualification Statements, Pre-Qualification Statement, and Pre- Qualification Checklist (if applicable) 18) Performance and Payment Bonds 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Invitation for Bid (IFB) Package 8 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 4 CONTRACTOR’S DUTY. 4.1 Contractor’s Duties Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. SECTION 5 PROJECT TEAM. 5.1 Contractor’s Co-operation. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed within Two Hundred Seventy (270) calendar days after the commencement date specified in City’s Notice to Proceed. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion. 6.4 Liquidated Damages. Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the amount of Five Hundred dollars ($500.00) 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 Contractor, Invitation for Bid (IFB) Package 9 Rev. March 17, 2017 CONSTRUCTION CONTRACT including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of Eight Million Six Hundred Ninety Four Thousand One Hundred Ninety One Dollars ($8,694,191.00). [This amount includes the Base Bid and Additive Alternates Item 1.] 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents. SECTION 8 STANDARD OF CARE. 8.1 Standard of Care. Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third-party claim relating to the Contract. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NON-DISCRIMINATION. 10.1 Municipal Code Requirement. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. 11.1 Evidence of coverage. Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Invitation for Bid (IFB) Package 11 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. 12.1 Assignment. City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City. 12.2 Assignment by Law. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice to Recipients. All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Planning & Community Environment Transportation Division ` Attn: Chris Corrao 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Chris Corrao AND Invitation for Bid (IFB) Package 12 Rev. March 17, 2017 CONSTRUCTION CONTRACT Nova Partners Inc. 800 West El Camino, Suite 180 Mountain View, CA 94040 Attn: Frank Arsenault In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be sent by registered mail or certified mail with return receipt requested. All notices, demands, requests or approvals from City to Contractor shall be addressed to: Granite Construction Company 715 Comstock Street Santa Clara, CA 95054 Attn: Steven Kaesler 13.3 Change of Address. In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DEFAULT. 14.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety. 14.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. Invitation for Bid (IFB) Package 13 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 15 CITY'S RIGHTS AND REMEDIES. 15.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following: 15.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 15.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 15.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 15.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 15.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 15.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 15.2 Delays by Sureties. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally Invitation for Bid (IFB) Package 14 Rev. March 17, 2017 CONSTRUCTION CONTRACT 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 Contractor and located at the Worksite for the purposes of completing the remaining Work. 15.3 Damages to City. 15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 15.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City. 15.4 Suspension by City 15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents. 15.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor. Invitation for Bid (IFB) Package 15 Rev. March 17, 2017 CONSTRUCTION CONTRACT 15.5.1 Compensation. Following such termination and within forty-five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors: (i) Demobilizing and (ii) Administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. .4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated. 15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 15.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, Invitation for Bid (IFB) Package 16 Rev. March 17, 2017 CONSTRUCTION CONTRACT submittals of as-built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date. SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. 16.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 16.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 16.1.2 For City's Non-Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 16.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 17 ACCOUNTING RECORDS. 17.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. Invitation for Bid (IFB) Package 17 Rev. March 17, 2017 CONSTRUCTION CONTRACT 17.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 18 INDEPENDENT PARTIES. 18.1 Status of parties. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 19 NUISANCE. 19.1 Nuisance Prohibited. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 20 PERMITS AND LICENSES. 20.1 Payment of Fees. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 21 WAIVER. 21.1 Waiver. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. Invitation for Bid (IFB) Package 18 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS. 22.1 Governing Law. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place. 22.2 Compliance with Laws. Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract. 22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 23 COMPLETE AGREEMENT. 23.1 Integration. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 24 SURVIVAL OF CONTRACT. 24.1 Survival of Provisions. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 25 PREVAILING WAGES. This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the public works contract does not include a project of $25,000 or less, when the project is for construction work, or the contract does not include a project of $15,000 or less, when the project is for alteration, demolition, repair, or maintenance (collectively, ‘improvement’) work. Or Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work Invitation for Bid (IFB) Package 19 Rev. March 17, 2017 CONSTRUCTION CONTRACT 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 adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. SECTION 26 NON-APPROPRIATION. 26.1 Appropriations. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 27 AUTHORITY. 27.1 Representation of Parties. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 28 COUNTERPARTS 28.1 Multiple Counterparts. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 29 SEVERABILITY. 29.1 Severability. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. SECTION 30 STATUTORY AND REGULATORY REFERENCES. 30.1 Amendments to Laws. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise required by law. SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. 31.1 Workers Compensation. Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: Invitation for Bid (IFB) Package 20 Rev. March 17, 2017 CONSTRUCTION CONTRACT “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.” SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS. 32.1 General Notice to Contractor. City requires Contractor and its listed subcontractors to comply with the requirements of SB 854. 32.2 Labor Code section 1771.1(a) City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” 32.3 DIR Registration Required. City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. 32.4 Posting of Job Site Notices. City gives notice to Contractor and its listed subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to SB 854-compliance monitoring and enforcement by DIR. 32.5 Payroll Records. City requires Contractor and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: (i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its listed subcontractors, in connection with the Project. (ii) The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its listed subcontractors, respectively. Invitation for Bid (IFB) Package 21 Rev. March 17, 2017 CONSTRUCTION CONTRACT (iii) At the request of City, acting by its project manager, Contractor and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of City’s request. City requests Contractor and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. (iv) If the certified payroll records are not produced to the project manager within the 10-day period, then Contractor and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v) Inform the project manager of the location of contractor’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: ____________________________ City Attorney or designee APPROVED: ____________________________ Director of Planning & Community Environment CONTRACTOR Officer 1 By:___________________________ Name:________________________ Title:__________________________ Date: _________________________ Officer 2 By:____________________________ Name:_________________________ Title:___________________________ Date:____________________________ Recommended Facilities and Conditions | 6-3 Alta Planning + Design Chapter 6 Map 6-1. Proposed Bikeway Network Neighborhood Traffic Safety & Bicycle Boulevard Project Bid Summary Sheet BID ITEM APPROX. QTY. UNIT DESCRIPTION (EACH BID ITEM INCLUDES ALL APPLICABLE TAXES, PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) GRANITE CONSTRUCTION COMPANY O’GRADY PAVING, INC. 001 1 LS Mobilization & Demobilization: $350,000 $620,000 002 1 LS Traffic Control: $350,123 $1,000,000 003 1 LS Water Pollution Control: $50,000 $60,000 004 64,858 SF Remove Asphalt Pavement and Base Material: $778,296 $778,296 005 127,634 SF Asphalt Milling (Grind Asphalt Concrete Pavement): $127,634 $382,902 006 33,906 SF Remove Concrete and Base Material: $406,872 $542,496 007 7,315 LF Remove Curb and Gutter: $190,190 $131,670 008 26 EA Remove Catch Basin: $41,600 $57,200 009 125 EA Tree Protection: $6,250 $125,000 010 29 EA Adjust Utility Manhole to Grade: $29,000 $34,800 011 59 EA Adjust Utility Box and Cover to Grade: $70,800 $59,000 012 11,905 LF Remove Thermoplastic Striping: $16,667 $13,095.50 013 59 EA Remove Pavement Markings: $3,835 $2950 014 19 EA Remove and Salvage Existing LED Fixture: $3,800 $1,900 015 28 EA Remove Sign Panel: $1,120 $1,400 016 34 EA Remove Sign and Post: $1,700 $1,700 017 1 LS Remove Gates, Poles and Posts (at Bryant Street and Matadero Creek): $7,500 $5,000 018 5,740 LF Curb and Gutter (6"): $487,900 $746,200 Neighborhood Traffic Safety & Bicycle Boulevard Project Bid Summary Sheet BID ITEM APPROX. QTY. UNIT DESCRIPTION (EACH BID ITEM INCLUDES ALL APPLICABLE TAXES, PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) GRANITE CONSTRUCTION COMPANY O’GRADY PAVING, INC. 019 75 LF Modified Curb and Gutter (4"): $24,000 $9,750 020 635 LF Modified Valley Gutter (at Raised Intersections): $51,435 $88,900 021 110 LF Concrete Rolled Curb and Gutter (5"): $52,800 $14,300 022 230 LF Modified Rolled Curb and Gutter: $28,750 $29,900 023 1,170 LF 3' Wide Concrete Curb (at Mountable Truck Apron): $117,000 $187,200 024 150 LF Median Curb (6"): $26,250 $15,000 025 4,320 LF Median Curb (4"): $172,800 $432,000 026 1,640 LF Retaining Curb (at Green Infrastructure): $65,600 $172,200 027 89 EA Curb Transition: $13,350 $80,100 028 20 SF Mountable Median (at Bryant Street and Matadero Creek): $9,400 $3,400 029 45,790 SF Concrete Sidewalk: $824,220 $778,430 030 2,075 SF Concrete Median: $51,875 $68,475 031 3,030 SF Concrete Driveway: $81,810 $60,600 032 9,900 SF Colored Concrete: $190,080 $277,200 033 11,730 SF Colored Asphalt Surfacing: $281,520 $234,600 034 13,050 SF HMA Plug: $306,675 $130,500 035 2,450 SF HMA Pavement Section: $29,400 $24,500 036 148,380 SF 2" HMA Overlay: $504,492 $370,950 Neighborhood Traffic Safety & Bicycle Boulevard Project Bid Summary Sheet BID ITEM APPROX. QTY. UNIT DESCRIPTION (EACH BID ITEM INCLUDES ALL APPLICABLE TAXES, PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) GRANITE CONSTRUCTION COMPANY O’GRADY PAVING, INC. 037 18,830 SF Varying Height HMA Overlay (at Raised Intersections): $150,640 $94,150 038 1,440 SF Raised Concrete Crosswalk: $24,480 $47,520 039 5,630 SF Cobble Stone Median Paving: $140,750 $157,640 040 125,700 SF Microsurfacing: $37,710 $50,280 041 4,040 SF Truncated Domes: $282,800 $181,800 042 7 EA Slotted Speed Hump: $10,500 $70,000 043 6 EA Narrow Slotted Speed Hump: $9,000 $48,000 044 51 EA 36" Steel Bollard: $40,800 $45,900 045 8 EA Culvert (Green Infrastructure): $2,160 $44,000 046 12 EA Forebay Inlet/Concrete Outlet (Green Infrastructure): $9,000 $66,000 047 68 EA STOP Pavement Marking: $8,160 $6,800 048 129 EA Bicycle Boulevard Pavement Marking: $16,770 $13,545 049 11,120 SF Ladder Crosswalk (White or Yellow): $47,260 $36,696 050 3 EA Yield Line Pavement Marking: $390 $450 051 27 EA Shared Roadway Bicycle Pavement Marking: $2,835 $2,700 052 54 EA Bicycle Lane Pavement Marking: $3,780 $3,240 053 48 EA Enhanced Shared Lane Marking: $5,760 $4,320 054 3 EA Type IV Arrow Marking: $240 $210 Neighborhood Traffic Safety & Bicycle Boulevard Project Bid Summary Sheet BID ITEM APPROX. QTY. UNIT DESCRIPTION (EACH BID ITEM INCLUDES ALL APPLICABLE TAXES, PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) GRANITE CONSTRUCTION COMPANY O’GRADY PAVING, INC. 055 66 EA Speed Hump Marking: $16,500 $11,880 056 1,690 SF Green Pavement Marking: $25,350 $15,210 057 4,959 LF Red Curb: $9,918 $7,934.40 058 4,970 SF 12" White Stripe / 12" Yellow Stripe: $22,365 $16,401 059 3,340 LF 4" Yellow Stripe (Caltrans Detail 25A): $3,340 $2,004 060 2,610 LF 4" Double Yellow Stripe (Caltrans Detail 22): $5,220 $3,654 061 745 LF 8" White Dashed Stripe: $2,607.50 $1,862.50 062 8,815 LF Bike Lane Stripe (Caltrans Detail 39): $8,815 $6,170.50 063 61 LF 4" Dashed Centerline Extension Through Intersection (Detail 41): $122 $122 064 240 LF Shared Path Center Line: $480 $360 065 6 EA Shared Path Marking: $420 $300 066 21 EA Object Marker: $1,995 $1680 067 96 EA Pavement Marker (Install on Curbs): $537.60 $480 068 1,155 LF Dashed Bike Lane Stripe (Caltrans Detail 39A): $1,039.50 $1155 069 2,700 LF 4" White Stripe (Calltrans Detail 27B): $1,620 $1,350 070 241 EA Install Sign and Post: $60,250 $62,660 071 45 EA Install Sign on Existing Post: $3,870 $4,500 072 35 EA Storm Drain Catch Basin: $122,500 $133,000 Neighborhood Traffic Safety & Bicycle Boulevard Project Bid Summary Sheet BID ITEM APPROX. QTY. UNIT DESCRIPTION (EACH BID ITEM INCLUDES ALL APPLICABLE TAXES, PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) GRANITE CONSTRUCTION COMPANY O’GRADY PAVING, INC. 073 6 EA Storm Drain Manhole: $36,000 $60,000 074 5 EA Cast in Place Catch Basin over Existing Storm Drain: $20,000 $17,000 075 11 EA Connect Storm Drain Pipe to Existing Catch Basin: $4,400 $6,820 076 3 EA Connect Storm Drain Pipe to Existing Manhole: $1,500 $3,000 077 6 EA Remove Hood/Grate, Replace with Storm Drain Lid: $24,000 $21,000 078 1,035 LF 12" PVC Storm Drain Pipe: $207,000 $414,000 079 1 LS Soil Preparation: $15,000 $12,000 080 100 HRS Tree Trimming: $25,000 $30,000 081 4,205 EA Shrubs and Groundcovers (1-Gallon): $126,150 $126,150 082 675 EA Shrubs and Groundcovers (5-Gallon): $40,500 $40,500 083 25 EA Trees (48" Box): $62,500 $75,000 084 513 SF River Rock (2-4 inch): $12,825 $15,390 085 163 EA Landscape Boulders: $32,600 $32,600 086 23 CY Gravel Mulch: $5,290 $5,980 087 90 CY Wood Mulch: $9,000 $10,800 088 989 CY Planting Soil (Topsoil): $79,120 $89,010 089 1 LS Plant Establishment Work Including Watering: $80,000 $85,000 090 22 EA City Standard Street Light Pole: $167,200 $180,400 Neighborhood Traffic Safety & Bicycle Boulevard Project Bid Summary Sheet BID ITEM APPROX. QTY. UNIT DESCRIPTION (EACH BID ITEM INCLUDES ALL APPLICABLE TAXES, PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) GRANITE CONSTRUCTION COMPANY O’GRADY PAVING, INC. 091 47 EA LED Luminaire: $47,000 $47,000 092 1,615 LF Street Light Conduit, Conductors and Pull Boxes: $172,805 $177,650 093 1 EA Joint Pole Luminaire: $2,000 $2,000 094 47 EA Light Shield: $8,695 $9,400 095 1 LS Project Notification: $100,000 $80,000 096 1 LS Miscellaneous Improvements: $50,000 $50,000 Base Bid Total (items 001 through 096): $8,163,190.60 $10,249,378.90 Alternate Bid (Curb Ramps): $531,000 $413,000 Total: $8,694,190.60 $10,662,378.90 San Francisco Bay City of Menlo Park City of East Palo Alto City of Mountain View City of Los Altos Unincorporated Santa Clara County Town of Los Altos Hills Stanford University Baylands Preserve Don Edwards National Wildlife Refuge .25 .50 mile Ca l T r a i n UniversityAve Homer Ave ChurchillAve Palm Dr i v e California Ave California Ave Oregon Expy Page Mill Rd Hansen Way Matadero Ave Los Robles Ave Maybell Ave Arastradero Rd Charle s t o n Rd C h a n n i n g A v e Em b a r c a d e r o R d Moreno Ave Amarillo Ave El C a m i n o R e a l Ca s t i l l e j a A v e Br y a n t S t Mi d d l e f i e l d R d Ro s s R d Ba y s h o r e F r e e w a y ( 1 0 1 ) Wilk i e W a y EverettAve Lo u i s R d Gu i n d a S t KingsleyAve HamiltonAve Sa n An to nio R d Seale Ave Loma Ver d e A v e E Mead o w D r Gr e e r R d We b s t e r S t Newe l l R d Al m a S t Al m a S t W Meadow Dr City of Palo AltoBicycle + PedestrianTransportation Plan2016 Bicycle boulevards Enhanced bikeways 8.6 miles 22.4% of Bicycle + Pedestrian Transportion Plan 80,000 bicycle trips (on average)per year per segment 216,000 bicycle trips per year onBryant Street segment San Francisco Bay City of Menlo Park City of East Palo Alto City of Mountain View City of Los Altos Unincorporated Santa Clara County Town of Los Altos Hills Stanford University Baylands Preserve Don Edwards National Wildlife Refuge .25 .50 mile Ca l T r a i n UniversityAve Homer Ave ChurchillAve Palm Dr i v e California Ave California Ave Oregon Expy Page Mill Rd Hansen Way Matadero Ave Los Robles Ave Maybell Ave Arastradero Rd Charle s t o n Rd C h a n n i n g A v e Em b a r c a d e r o R d Moreno Ave Amarillo Ave El C a m i n o R e a l Ca s t i l l e j a A v e Br y a n t S t Mid d l e f i e l d R d Ro s s R d Ba y s h o r e F r e e w a y ( 1 0 1 ) Wil k i e W a y EverettAve Lo u i s R d Gu i n d a S t KingsleyAve HamiltonAve S an A n t on i o R d Seale Ave Loma Ver d e A v e E Mead o w D r Gr e e r R d We b s t e r S t Newe l l R d Al m a S t Al m a S t W Meadow Dr Cost of added miles$6,363,250 $1,078,571per mile *3 additional miles of the existing Bryant Street bicycle boulevard are being extensively updated. 5.9* miles to be added 15.4% City of Palo AltoBicycle + PedestrianTransportation Plan2017 Bicycle boulevards Enhanced bikeways 8.6 existing miles 22.4% of Bicycle + Pedestrian Transportion Plan 1protected intersection to be added 1 1 NEIGHBORHOOD TRAFFIC SAFETY & BIKE BLVDS June 27, 2017 2 2 2012 Bicycle + Pedestrian Transportation Plan 3 3 2014 Council Infrastructure Plan •$20m to implement 2012 Bicycle + Pedestrian Transportation Plan •$125M to construct facilities citywide Public Safety Building $57m Highway 101 Pedestrian/Bicycle Bridge $1.7m Bicycle and Pedestrian Plan Implementation $20.0m Charleston/Arastradero Corridor $7.5m Byxbee Park $2.8m California Avenue Area Parking Garage $9.6m Downtown Parking Garage $13.0m Fire Station No. 3 Replacement $6.7m Fire Station No. 4 Replacement $7.5m 4 4 Policy Direction Comprehensive Plan: •Program T-22: Implement a network of bicycle boulevards, including extension of southern end of the Bryant Street bicycle boulevard to Mountain View. 2012 Bicycle + Pedestrian Transportation Plan: •Objective 1: Double the rate of bicycling for both local and total work commutes by 2020 (to 15% and 5%). •Objective 2: Convert discretionary vehicle trips into walking and bicycling trips in order to reduce City transportation-related greenhouse gas (GHG) emissions 15% by 2020. 5 5 Concept Planning Phase •Alta Planning + Design contracted for concept planning & final design •Community Outreach: •4 Community Meetings •4 Bike-a-longs •Presentations to PABAC, PTC, & City Council •Phase I Concept Plans approved by Council in May 2014 6 6 Project Timeline Spring 2017: Design Process Concludes… Construction Phase Begins! 5/16 Concept Plan Approval Design Begins 4/14 Concept Planning Phase 7 7 Project Snapshot 5 Raised Intersections 3 Raised Crosswalks 11 Traffic Circles 4 Intersection Reconfigurations 1 Shared-Use Path 7.1 miles of traffic calmed, bicycle boulevards. Project Wide: Bike Blvd Road Markings, Wayfinding, Slotted Speed Humps, Chicanes, Medians, ADA curb ramps, Green Infrastructure, new and refreshed crosswalks, Landscaping + Street Trees. 8 8 Neighborhood Traffic Safety •Shade Trees along Ross Rd •Traffic Calming •Neighborhood Beautification •Bicycle + Pedestrian Oriented Design Chicanes with Slotted Speed Humps and Street Trees on Ross Rd. 9 9 Neighborhood Traffic Safety Raised Crosswalks with Curb Extensions and Landscaping 10 10 Neighborhood Traffic Safety •Fewer Conflict Points •Reduces Through Traffic •Neighborhood Beautification •Traffic Calming Existing Neighborhood Traffic Circle: Addison and Bryant St. 11 11 Neighborhood Traffic Safety 12 12 Neighborhood Traffic Safety •Connects Skewed Intersection •Creates Shared Space •Eases Crossings for Pedestrians •Close to Ohlone School Raised Intersection: Louis Rd & Moreno Ave 13 13 Bike Boulevards Existing Street Closure: Bryant St & Lowell Ave Primary Goals: •Speed Reduction •Volume Reduction •Ease of Movement •Increase Ridership 14 14 Vehicle Speeds & Survival in Collisions Source: CA State Bicycle & Pedestrian Plan 15 15 Bike Boulevard - Features 16 16 Bike Boulevard – Traffic Calming 11 Traffic circles 5 Raised Intersections 3 Raised Crosswalks 4 Major Intersection Reconfigurations 17 17 Bicycle & Pedestrian Transportation Plan 2017 •7 miles of new/refreshed bike blvds in 2017-2018 •6 miles of new bike blvds in 2018-2019 •62.5% completed by 2019 •37.5% Remaining Projects after 2019 *Includes all work completed since adoption 18 18 Staff Recommendation Staff Recommendation: Approval of Contract Number C17161815 with Granite Construction Company in the Amount of $9,563,610 for the Construction of Neighborhood Traffic Safety and Bicycle Boulevard Improvements along Amarillo Avenue, Bryant Street, East Meadow Drive, Montrose Avenue, Moreno Avenue, Louis Road, Palo Alto Avenue, and Ross Road, Consistent with Approved Concept Plans and the City's Adopted Bicycle + Pedestrian Transportation Plan. 19 19 NEIGHBORHOOD TRAFFIC SAFETY & BIKE BLVDS June 27, 2017 City of Palo Alto (ID # 8209) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Clarifiers No.3 & 5 Mechanisms Replacement Project Title: Approval of Contract No. C18167839 with Anderson Pacific Engineering Construction, Inc. in the Total Amount of $1,129,700 to Construct the Secondary Clarifiers Nos. 3 and No. 5 Mechanisms Replacement Project at the Regional Water Quality Control Plant - Capital Improvement Program Project WQ-80021, and Authorization for the City Manager to Negotiate and Execute Change Orders Not-to-Exceed $102,700 in Total Value From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute the contract with Anderson Pacific Engineering Construction, Inc. (Attachment A) in the amount of $1,027,000 for the Secondary Clarifiers No. 3 and No. 5 Mechanisms Replacement Project, funded in Wastewater Treatment Enterprise Fund Capital Improvement Program, Project WQ-80021, at the Regional Water Quality Control Plant; and 2. Authorize the City Manager or his designee to execute one or more change orders to the contract with Anderson Pacific Engineering Construction, Inc. for related, additional but unforeseen work that may develop during the project, the total value of which may not exceed $102,700. Background The Regional Water Quality Control Plant (Plant) treats an average of 19 million gallons of wastewater each day. Secondary clarifiers are a vital part of the treatment process, removing sludge from wastewater before it enters San City of Palo Alto Page 2 Francisco Bay. The Plant has six clarifiers, two of which are kept empty in standby mode to have available for unexpected equipment failure, routine equipment downtime for maintenance or extra capacity during high flows. Clarifier No. 3 was constructed in 1972 and Clarifier No. 5 in 1988. The rotating mechanisms of Clarifier No. 1 and No. 2 were replaced in 2015 and 2008, respectively. As discussed in the RWQCP Facility Condition Assessment Final Report (City of Palo Alto, 2004), the original clarifier mechanisms are showing signs of deterioration, including corrosion on structural steel beams and access platforms and the isolation slide gates at the clarifier effluent and bypass channels. As well, the coatings on the existing return activated sludge pipes are failing, exposing the cast iron pipes to corrosion. Replacing the aging clarifier mechanisms and rehabilitating their ancillary systems will improve the reliability of the clarifier units. Discussion The work to be performed under this contract includes installation of new rotating mechanisms and ancillary components for Clarifiers No. 3 and No. 5; application of new protective coatings on two exposed 20-inch diameter return activated sludge pipes; and rehabilitation of Clarifier No. 5 effluent and bypass sluice gates. On March 22, 2017, the City advertised a notice inviting formal bids for the Clarifiers No. 3 & 5 Mechanisms Replacement Project. The bidding period was 43 days. On May 3, 2017, bids were received from four qualified contractors as presented in the bid summary (Attachment B). Summary of Bid Process Bid Name/Number Clarifiers No. 3 & 5 Mechanisms Replacement Project (IFB-167839) Proposed Length of Project 15 months after Notice to Proceed Number of notices sent to Contractors via City’s eProcurement system 503 Number of notices sent to Builder’s Exchanges via City’s eProcurement system 11 Number of Bid Packages downloaded by 28 City of Palo Alto Page 3 Contractors Number of Bid Packages downloaded by Builder’s Exchanges 11 Total Days to Respond to Bid 43 Pre-Bid Meeting Yes Number of Company Attendees at Pre-Bid Meeting 9 Number of Bids Received: 4 Bid Price Range $1,027,000 to $1,153,000 Staff has reviewed all bids submitted and recommends the bid of $1,027,000 submitted by Anderson Pacific Engineering Construction, Inc. be accepted and Anderson Pacific Engineering Construction, Inc. be declared the lowest responsible bidder. The bid is 16.7% above the engineer's estimate of $880,000. A change order amount of $102,700 (10% of the total contract) is requested for related, additional but unforeseen work that may develop during the project. Staff confirmed with the Contractor's State License Board the contractor has an active license on file. Staff also checked references supplied by the contractor for previous work performed, including projects at the plant and elsewhere in the City, and found no significant complaints. Timeline The work is anticipated to be complete by November 2018. Resource Impact Funding for this contract is included in the Fiscal Year 2018 Wastewater Treatment Enterprise Fund Capital Improvement Program, Plant Equipment Replacement (WQ-80021). 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 includes maintenance of publicly-owned wastewater facilities involving no or City of Palo Alto Page 4 negligible expansion. Attachments Attachment A: Construction Contract Clarifiers Nos. 3 & 5 Mechanisms Replacement Project (PDF) Attachment B: Bid Summary for Clarifiers Nos. 3 & 5 Mechanisms Replacement Project (PDF) Attachments: Attachment A - Construction Contract Clarifiers Nos. 3&5 Mechanisms Replacement Project Attachment B - Bid Summary for Clarifiers Nos. 3 &5 Mechanisms Replacement Project Invitation for Bid (IFB) Package 1 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT Contract No. C18167839 City of Palo Alto Clarifiers No. 3 & 5 Mechanisms Replacement Project Attachment A Invitation for Bid (IFB) Package 2 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT TABLE OF CONTENTS SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….…………..6 1.1 Recitals…………………………………………………………………………………………………………………….6 1.2 Definitions……………………………………………………………………………………………………………….6 SECTION 2 THE PROJECT………………………………………………………………………………………………………...6 SECTION 3 THE CONTRACT DOCUMENTS………………………………………………………………………………..7 3.1 List of Documents…………………………………………………………………………………………….........7 3.2 Order of Precedence……………………………………………………………………………………………......7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………..8 4.1 Contractor's Duties…………………………………………………………………………………………………..8 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..8 5.1 Contractor's Co‐operation………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION…………………………………………………………………………………….......8 6.1 Time Is of Essence…………………………………………………………………………………………………….8 6.2 Commencement of Work…………………………………………………………………………………………8 6.3 Contract Time…………………………………………………………………………………………………………..8 6.4 Liquidated Damages…………………………………………………………………………………………………8 6.4.1 Other Remedies……………………………………………………………………………………………………..9 6.5 Adjustments to Contract Time………………………………………………………………………………….9 SECTION 7 COMPENSATION TO CONTRACTOR……………………………………………………………………….9 7.1 Contract Sum……………………………………………………………………………………………………………9 7.2 Full Compensation……………………………………………………………………………………………………9 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..9 8.1 Standard of Care…………………………………………………………………………………..…………………9 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..…10 9.1 Hold Harmless……………………………………………………………………………………………………….10 9.2 Survival…………………………………………………………………………………………………………………10 SECTION 10 NON‐DISCRIMINATION……..………………………………………………………………………………10 10.1 Municipal Code Requirement…………….………………………………..……………………………….10 SECTION 11 INSURANCE AND BONDS.…………………………………………………………………………………10 Invitation for Bid (IFB) Package 3 Rev. March 17, 2017 CONSTRUCTION CONTRACT 11.1 Evidence of Coverage…………………………………………………………………………………………..10 SECTION 12 PROHIBITION AGAINST TRANSFERS…………………………………………………………….…11 12.1 Assignment………………………………………………………………………………………………………….11 12.2 Assignment by Law.………………………………………………………………………………………………11 SECTION 13 NOTICES …………………………………………………………………………………………………………….11 13.1 Method of Notice …………………………………………………………………………………………………11 13.2 Notice Recipents ………………………………………………………………………………………………….11 13.3 Change of Address……………………………………………………………………………………………….12 SECTION 14 DEFAULT…………………………………………………………………………………………………………...12 14.1 Notice of Default………………………………………………………………………………………………….12 14.2 Opportunity to Cure Default…………………………………………………………………………………12 SECTION 15 CITY'S RIGHTS AND REMEDIES…………………………………………………………………………..13 15.1 Remedies Upon Default……………………………………………………………………………………….13 15.1.1 Delete Certain Services…………………………………………………………………………………….13 15.1.2 Perform and Withhold……………………………………………………………………………………..13 15.1.3 Suspend The Construction Contract…………………………………………………………………13 15.1.4 Terminate the Construction Contract for Default………………………………………………13 15.1.5 Invoke the Performance Bond………………………………………………………………………….13 15.1.6 Additional Provisions……………………………………………………………………………………….13 15.2 Delays by Sureties……………………………………………………………………………………………….13 15.3 Damages to City…………………………………………………………………………………………………..14 15.3.1 For Contractor's Default…………………………………………………………………………………..14 15.3.2 Compensation for Losses…………………………………………………………………………………14 15.4 Suspension by City……………………………………………………………………………………………….14 15.4.1 Suspension for Convenience……………………………………………………………………………..14 15.4.2 Suspension for Cause………………………………………………………………………………………..14 15.5 Termination Without Cause…………………………………………………………………………………14 15.5.1 Compensation………………………………………………………………………………………………….15 15.5.2 Subcontractors………………………………………………………………………………………………..15 15.6 Contractor’s Duties Upon Termination………………………………………………………………...15 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES……………………………………………………………16 16.1 Contractor’s Remedies……………………………………..………………………………..………………….16 Invitation for Bid (IFB) Package 4 Rev. March 17, 2017 CONSTRUCTION CONTRACT 16.1.1 For Work Stoppage……………………………………………………………………………………………16 16.1.2 For City's Non‐Payment…………………………………………………………………………………….16 16.2 Damages to Contractor………………………………………………………………………………………..16 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….…16 17.1 Financial Management and City Access………………………………………………………………..16 17.2 Compliance with City Requests…………………………………………………………………………….17 SECTION 18 INDEPENDENT PARTIES……………………………………………………………………………………..17 18.1 Status of Parties……………………………………………………………………………………………………17 SECTION 19 NUISANCE……………………………………………………………………………………………………….…17 19.1 Nuisance Prohibited……………………………………………………………………………………………..17 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………….17 20.1 Payment of Fees…………………………………………………………………………………………………..17 SECTION 21 WAIVER…………………………………………………………………………………………………………….17 21.1 Waiver………………………………………………………………………………………………………………….17 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS……………………………….18 22.1 Governing Law…………………………………………………………………………………………………….18 22.2 Compliance with Laws…………………………………………………………………………………………18 22.2.1 Palo Alto Minimum Wage Ordinance…………….………………………………………………….18 SECTION 23 COMPLETE AGREEMENT……………………………………………………………………………………18 23.1 Integration………………………………………………………………………………………………………….18 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………..18 24.1 Survival of Provisions……………………………………………………………………………………………18 SECTION 25 PREVAILING WAGES………………………………………………………………………………………….18 SECTION 26 NON‐APPROPRIATION……………………………………………………………………………………….19 26.1 Appropriation………………………………………………………………………………………………………19 SECTION 27 AUTHORITY……………………………………………………………………………………………………….19 27.1 Representation of Parties…………………………………………………………………………………….19 SECTION 28 COUNTERPARTS………………………………………………………………………………………………..19 28.1 Multiple Counterparts………………………………………………………………………………………….19 SECTION 29 SEVERABILITY……………………………………………………………………………………………………19 29.1 Severability………………………………………………………………………………………………………….19 SECTION 30 STATUTORY AND REGULATORY REFERENCES …………………………………………………..19 Invitation for Bid (IFB) Package 5 Rev. March 17, 2017 CONSTRUCTION CONTRACT 30.1 Amendments of Laws…………………………………………………………………………………………..19 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….….19 31.1 Workers Compensation…………………………………………………………………………………….19 SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS………………………………..…20 32.1 General Notice to Contractor…………………………………………………………………………….20 32.2 Labor Code section 1771.1(a)…………………………………………………………………………….20 32.3 DIR Registration Required…………………………………………………………………………………20 32.4 Posting of Job Site Notices…………………………………………………………………………………20 32.5 Payroll Records…………………………………………………………………………………………………20 Invitation for Bid (IFB) Package 6 Rev. March 17, 2017 CONSTRUCTION CONTRACT CONSTRUCTION CONTRACT THIS CONSTRUCTION CONTRACT entered into on June 26, 2017 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and ANDERSON PACIFIC ENGINEERING CONSTRUCTION, INC.("Contractor"), is made with reference to the following: R E C I T A L S: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Contractor is a corporation duly organized and in good standing in the State of California, Contractor’s License Number 245215 and Department of Industrial Relations Registration Number 1000000061 . Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Construction Contract. C. On March 22, 2017, City issued an Invitation for Bids (IFB) to contractors for the Clarifiers No. 3 & 5 Mechanisms Replacement (“Project”). In response to the IFB, Contractor submitted a Bid. D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions. NOW THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows: SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS. 1.1 Recitals. All of the recitals are incorporated herein by reference. 1.2 Definitions. Capitalized terms shall have the meanings set forth in this Construction Contract and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail. SECTION 2 THE PROJECT. The Project is the Clarifiers No. 3 & 5 Mechanisms Replacement Project, located at 2501 Embarcadero Way, Palo Alto, CA 94303 ("Project"). Invitation for Bid (IFB) Package 7 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 3 THE CONTRACT DOCUMENTS. 3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated by reference. 1) Change Orders 2) Field Orders 3) Contract 4) Bidding Addenda 5) Special Provisions 6) General Conditions 7) Project Plans and Drawings 8) Technical Specifications 9) Instructions to Bidders 10) Invitation for Bids 11) Contractor's Bid/Non‐Collusion Declaration 12) Reports listed in the Contract Documents 13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid) 14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most current version at time of Bid) 15) City of Palo Alto Traffic Control Requirements 16) City of Palo Alto Truck Route Map and Regulations 17) Notice Inviting Pre‐Qualification Statements, Pre‐Qualification Statement, and Pre‐ Qualification Checklist (if applicable) 18) Performance and Payment Bonds 3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City. Invitation for Bid (IFB) Package 8 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 4 CONTRACTOR’S DUTY. 4.1 Contractor’s Duties Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equipment, transportation, and utilities, unless otherwise specified in the Contract Documents. Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents. SECTION 5 PROJECT TEAM. 5.1 Contractor’s Co‐operation. In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project. SECTION 6 TIME OF COMPLETION. 6.1 Time Is of Essence. Time is of the essence with respect to all time limits set forth in the Contract Documents. 6.2 Commencement of Work. Contractor shall commence the Work on the date specified in City’s Notice to Proceed. 6.3 Contract Time. Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than October 30, 2018. within calendar days () after the commencement date specified in City’s Notice to Proceed. By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion. 6.4 Liquidated Damages. Pursuant to Government Code Section 53069.85, if Contractor fails to achieve Substantial Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Substantial Completion, based on the amount of 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 Contractor, Invitation for Bid (IFB) Package 9 Rev. March 17, 2017 CONSTRUCTION CONTRACT including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of unreleased retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Substantial Completion, shall not operate as a waiver of City’s right to assess liquidated damages. 6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time. 6.5 Adjustments to Contract Time. The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents. SECTION 7 COMPENSATION TO CONTRACTOR. 7.1 Contract Sum. Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of One Million Twenty Seven Thousand Dollars ($1,027,000). [This amount includes the Base Bid and Additive Alternates 1.] 7.2 Full Compensation. The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents. SECTION 8 STANDARD OF CARE. 8.1 Standard of Care. Contractor agrees that the Work shall be performed by qualified, experienced and well‐supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project. Invitation for Bid (IFB) Package 10 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 9 INDEMNIFICATION. 9.1 Hold Harmless. To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforce this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee. Pursuant to Public Contract Code Section 9201, City shall timely notify Contractor upon receipt of any third‐party claim relating to the Contract. 9.2 Survival. The provisions of Section 9 shall survive the termination of this Construction Contract. SECTION 10 NON‐DISCRIMINATION. 10.1 Municipal Code Requirement. As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 11 INSURANCE AND BONDS. 11.1 Evidence of coverage. Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions. Invitation for Bid (IFB) Package 11 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 12 PROHIBITION AGAINST TRANSFERS. 12.1 Assignment. City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest therein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City. 12.2 Assignment by Law. The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co‐tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Control means more than fifty percent (50%) of the voting power of the corporation or other entity. SECTION 13 NOTICES. 13.1 Method of Notice. All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following: (i) On the date delivered if delivered personally; (ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided; (iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail. 13.2 Notice to Recipients. All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at: To City: City of Palo Alto City Clerk 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 Copy to: City of Palo Alto Water Quality Control Plant 2501 Embarcadero Way Palo Alto, CA 94303 Attn: Siew Ching Chin AND [Include Construction Manager, If Applicable.] Invitation for Bid (IFB) Package 12 Rev. March 17, 2017 CONSTRUCTION CONTRACT City of Palo Alto Utilities Engineering 250 Hamilton Avenue Palo Alto, CA 94301 Attn: In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following: Palo Alto City Attorney’s Office 250 Hamilton Avenue P.O. Box 10250 Palo Alto, California 94303 All Claims shall be sent by registered mail or certified mail with return receipt requested. All notices, demands, requests or approvals from City to Contractor shall be addressed to: Anderson Pacific Engineering Construction, Inc. 1390 Norman Avenue Santa Clara, CA 95054 ATTN: PETER E. ANDERSON 13.3 Change of Address. In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided. SECTION 14 DEFAULT. 14.1 Notice of Default. In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety. 14.2 Opportunity to Cure Default. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice. Invitation for Bid (IFB) Package 13 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 15 CITY'S RIGHTS AND REMEDIES. 15.1 Remedies Upon Default. If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, without limitation, the following: 15.1.1 Delete Certain Services. City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto. 15.1.2 Perform and Withhold. City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto. 15.1.3 Suspend The Construction Contract. City may, without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work. 15.1.4 Terminate the Construction Contract for Default. City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein. 15.1.5 Invoke the Performance Bond. City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond. 15.1.6 Additional Provisions. All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Construction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City. 15.2 Delays by Sureties. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally Invitation for Bid (IFB) Package 14 Rev. March 17, 2017 CONSTRUCTION CONTRACT 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 Contractor and located at the Worksite for the purposes of completing the remaining Work. 15.3 Damages to City. 15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents. 15.3.2 Compensation for Losses. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, Contractor shall be liable to City for the difference and shall promptly remit same to City. 15.4 Suspension by City 15.4.1 Suspension for Convenience. City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work. 15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s satisfaction. Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to suspend the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents. 15.5 Termination Without Cause. City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause. Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor. Invitation for Bid (IFB) Package 15 Rev. March 17, 2017 CONSTRUCTION CONTRACT 15.5.1 Compensation. Following such termination and within forty‐five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work : .1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor. .2 For Close‐out Costs. Reasonable costs of Contractor and its Subcontractors: (i) Demobilizing and (ii) Administering the close‐out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination. .3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work. .4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated. 15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section. 15.6 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto. Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, Invitation for Bid (IFB) Package 16 Rev. March 17, 2017 CONSTRUCTION CONTRACT submittals of as‐built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date. SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES. 16.1 Contractor’s Remedies. Contractor may terminate this Construction Contract only upon the occurrence of one of the following: 16.1.1 For Work Stoppage. The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience. 16.1.2 For City's Non‐Payment. If City does not make pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract. 16.2 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind. SECTION 17 ACCOUNTING RECORDS. 17.1 Financial Management and City Access. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take‐offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law. Invitation for Bid (IFB) Package 17 Rev. March 17, 2017 CONSTRUCTION CONTRACT 17.2 Compliance with City Requests. Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony. SECTION 18 INDEPENDENT PARTIES. 18.1 Status of parties. Each party is acting in its independent capacity and not as agents, employees, partners, or joint ventures’ of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth. SECTION 19 NUISANCE. 19.1 Nuisance Prohibited. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract. SECTION 20 PERMITS AND LICENSES. 20.1 Payment of Fees. Except as otherwise provided in the Special Provisions and Technical Specifications, The Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non‐City inspectors or conditions set forth in the licenses or permits issued by other agencies. SECTION 21 WAIVER. 21.1 Waiver. A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. Invitation for Bid (IFB) Package 18 Rev. March 17, 2017 CONSTRUCTION CONTRACT SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS. 22.1 Governing Law. This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, and no other place. 22.2 Compliance with Laws. Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract. 22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 23 COMPLETE AGREEMENT. 23.1 Integration. This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agreement may be amended only by a written instrument, which is signed by the parties. SECTION 24 SURVIVAL OF CONTRACT. 24.1 Survival of Provisions. The provisions of the Construction Contract which by their nature survive termination of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force and effect after Final Completion or any termination of the Construction Contract. SECTION 25 PREVAILING WAGES. This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the public works contract does not include a project of $25,000 or less, when the project is for construction work, or the contract does not include a project of $15,000 or less, when the project is for alteration, demolition, repair, or maintenance (collectively, ‘improvement’) work. Or Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work Invitation for Bid (IFB) Package 19 Rev. March 17, 2017 CONSTRUCTION CONTRACT 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 adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. SECTION 26 NON‐APPROPRIATION. 26.1 Appropriations. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Contract are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 27 AUTHORITY. 27.1 Representation of Parties. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. SECTION 28 COUNTERPARTS 28.1 Multiple Counterparts. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. SECTION 29 SEVERABILITY. 29.1 Severability. In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected. SECTION 30 STATUTORY AND REGULATORY REFERENCES. 30.1 Amendments to Laws. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, unless otherwise required by law. SECTION 31 WORKERS’ COMPENSATION CERTIFICATION. 31.1 Workers Compensation. Pursuant to Labor Code Section 1861, by signing this Contract, Contractor certifies as follows: Invitation for Bid (IFB) Package 20 Rev. March 17, 2017 CONSTRUCTION CONTRACT “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self‐insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.” SECTION 32 DIR REGISTRATION AND OTHER SB 854 REQUIREMENTS. 32.1 General Notice to Contractor. City requires Contractor and its listed subcontractors to comply with the requirements of SB 854. 32.2 Labor Code section 1771.1(a) City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” 32.3 DIR Registration Required. City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. 32.4 Posting of Job Site Notices. City gives notice to Contractor and its listed subcontractors that Contractor is required to post all job site notices prescribed by law or regulation and Contractor is subject to SB 854‐compliance monitoring and enforcement by DIR. 32.5 Payroll Records. City requires Contractor and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: (i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, Contractor and its listed subcontractors, in connection with the Project. (ii) The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its listed subcontractors, respectively. Invitation for Bid (IFB) Package 21 Rev. March 17, 2017 CONSTRUCTION CONTRACT (iii) At the request of City, acting by its project manager, Contractor and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of City’s request. City requests Contractor and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. (iv) If the certified payroll records are not produced to the project manager within the 10‐day period, then Contractor and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof. (v) Inform the project manager of the location of contractor’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager City Manager APPROVED AS TO FORM: ____________________________ City Attorney or designee APPROVED: ____________________________ Public Works Director CONTRACTOR Officer 1 By:___________________________ Name:________________________ Title:__________________________ Date: _________________________ Officer 2 By:____________________________ Name:_________________________ Title:___________________________ Date:____________________________ Bid Item Description Engineer's Estimate Anderson Pacific Engineering Construction, Inc. C. Overaa & Co. Monterey Mechanical Pacific Infrastructure Corp. Base Clarifiers No. 3 & 5 Mechanisms Replacement $880,000 $1,027,000 $1,072,887 $1,150,000 $1,153,000 Total Bid $880,000 $1,027,000 $1,072,887 $1,150,000 $1,153,000 Remarks Apparent low bidder Highest bidder Attachment B City of Palo Alto, Public Works Department - RWQCP CIP WQ-80021 Facility Equipment Replacement Bid Summary for Clarifiers Nos.3 & 5 Mechanisms Replacement Project (IFB-167839) City of Palo Alto (ID # 8178) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Approval of a Contract for City Hall Fire Sprinkler System Repair Title: Approval of a Contract with SimplexGrinnell, Inc. in an Amount Not-to- Exceed $250,185 for Repair of the City Hall Fire Sprinkler System, and Authorization for the City Manager to Negotiate and Execute Change Orders in an Amount Not-to-Exceed $17,235 in Total Value From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute Contract C17168126 with SimplexGrinnell, Inc. (Attachment A) in the amount of $232,950.00 for the repair of the fire sprinkler system in City Hall; 2. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the Contract with SimplexGrinnell, Inc. for related, additional but unforeseen work, which may develop during the project, the total value of which shall not exceed $17,235.00. Background City Hall was constructed in 1967 and is located at 250 Hamilton Avenue. Part of the existing fire sprinkler system was installed during the original construction phase of City Hall and other parts of the fire sprinkler system were installed in the late 1980’s. City of Palo Alto Page 2 In September 2016, the City issued a Request for Quotes (RFQ) solicitation for Fire Sprinkler Inspections and Repairs for all City buildings. SimplexGrinnell submitted the only bid and was awarded the contract. Per the contract, SimplexGrinnell performed the code-required five-year inspection of the City Hall fire sprinkler system in December 2016, during which numerous deficiencies were found needing correction. Many of these deficiencies were caused by system components being at the end of their service life. To comply with National Fire Protection Association code requirements and pass the five-year inspection, these deficiencies must be corrected and replacement cycles maintained, including gauges and fire hoses being replaced every five years and fire sprinkler heads every 50 years. Discussion Project Description The primary scope of this project is to correct all fire sprinkler deficiencies in the City Hall building and meet current National Fire Protection Association codes and Palo Alto Fire Department regulations. A detailed scope of work is provided in the attached contract including: replacing 50-year-old fire sprinkler heads; replacing painted and corroded fire sprinkler heads; removing 37 fire hoses and 37 hose valves and plugging the service to each; replacing all pressure gauges on the fire risers; and replacing 15 corroded Victaulic couplings. The facility will remain open during the course of the project with many of the tasks occuring after regular business hours and/or on weekends. Vendor Selection Process Staff worked closely with SimplexGrinnell in the development of their repair proposal to ensure the accuracy and completeness of the repairs. Staff also sought cost saving opportunities, including the removal of fire hoses and capping the service instead of replacing fire hoses and repairing hose valves. Approved by the fire marshall as the fire hose system is redundant, this savings is twofold in that future inspections of, or repairs to, the fire hose cabinets will no longer be needed. If another formal solicitation was required and another vendor awarded City of Palo Alto Page 3 the contract, that vendor would most likely require their own five-year inspection be performed at a cost of approximately $16,000 to the City. Moreover, the prior solicitation included both inspection and repair of the found deficiencies, and only one vendor bid on the original contract. For these reasons, staff recommends approval of this sole source contract. Timeline Pending Council approval of this contract, the project is expected to begin in July 2017 and be complete within 60 days of the notice to proceed. Resource Impact Contract funding is available in Public Works Department operating budgets. Policy Implications This recommendation does not represent any change to existing City policies. Environmental Review This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the CEQA Guidelines as repair, maintenance and alteration of an existing facility and no further environmental review is necessary. Attachments: Attachment A: C17168126 Simplex Grinnell contract City of Palo Alto General Services Agreement 1 Rev. February 8, 2017 CITY OF PALO ALTO CONTRACT NO. C17168126 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the 19th day of June, 2017, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and SIMPLEX GRINNELL LP, a limited partnership, located at 6952 Preston Avenue, Livermore, CA 94550, Telephone Number: 925-273-1213 (“CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree as follows: 1.SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”) described in the Scope of Services, attached at Exhibit A. 2.EXHIBITS. The following exhibits are attached to and made a part of this Agreement: “A” - Scope of Services “A-1” – On-Call Task Order (Optional) “B” - Schedule of Performance “C” – Schedule of Fees “D” - Insurance Requirements “E” - Performance and/or Payment Bond “F” - Liquidated Damages (Optional) CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED. 3. TERM. The term of this Agreement is from July 10, 2017 to September 10, 2017 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. 5.COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not-to-exceed compensation for the full performance of the Services and reimbursable expenses, if any: The total maximum lump sum compensation of dollars ($ ); Attachment A City of Palo Alto General Services Agreement 2 Rev. February 8, 2017 OR The sum of dollars ($ ) per hour, not to exceed a total maximum compensation amount of dollars ($ ); OR A sum calculated in accordance with the fee schedule set forth at Exhibit C, not to exceed a total maximum compensation amount of Two Hundred Thirty-two Thousand Nine Hundred Fifty dollars ($232,950.00). CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY. CITY has set aside the sum of Seventeen Thousand Two Hundred Thirty- five dollars ($17,235.00) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR’s proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. 6. COMPENSATION DURING ADDITIONAL TERMS. CONTRACTOR’S compensation rates for each additional term shall be the same as the original term; OR CONTRACTOR’s compensation rates shall be adjusted effective on the commencement of each Additional Term. The lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in section 5 above, shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-Oakland- San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable Additional Term, which shall be compared with the CPI published most immediately City of Palo Alto General Services Agreement 3 Rev. February 8, 2017 preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRACTOR’s compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term. Any adjustment to CONTRACTOR’s compensation rates shall be reflected in a written amendment to this Agreement. 7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 7, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. Public Contract Code Section 9204 mandates certain claims procedures for Public Works Projects, which are set forth in “Appendix A Claims for Public Contract Code Section 9204 Public Works Projects”. This project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Appendix A, attached hereto and incorporated herein. 8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project Manager is: Dennis Huebner, Dept.: Public Works Facilities, Telephone: 650-496- 6970. 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 7 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. City of Palo Alto General Services Agreement 4 Rev. February 8, 2017 C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR’s business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONTRACTOR shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR’s performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR’s performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR’s request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in City of Palo Alto General Services Agreement 5 Rev. February 8, 2017 accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. J. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR’s work is completed in a satisfactory manner and complies with the provisions of this Agreement. K. CITY’S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of final payment, CONTRACTOR’s records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described at Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A-:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be City of Palo Alto General Services Agreement 6 Rev. February 8, 2017 canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to the Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement. O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section N relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney’s fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. CONTRACTOR’s obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Agreement. 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. City of Palo Alto General Services Agreement 7 Rev. February 8, 2017 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 liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. R. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination is for cause, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to CONTRACTOR’s failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of CITY. No amendments, changes or variations of any kind are authorized without the written consent of CITY. T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this 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. GOVERNING LAW. This contract shall be governed and interpreted by the laws of the State of California. City of Palo Alto General Services Agreement 8 Rev. February 8, 2017 V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this 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 shall be purchased in accordance with CITY’s Environmental Purchasing Policy including, but not limited to, Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. • Reusable/returnable pallets shall be taken back by CONTRCATOR, 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. City of Palo Alto General Services Agreement 9 Rev. February 8, 2017 Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Z. PREVAILING WAGES 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 adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. AA. DIR REGISTRATION. In regard to any public work construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONTRACTOR and its listed subcontractors to comply with the requirements of SB 854. CITY provides notice to CONTRACTOR of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the 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 City of Palo Alto General Services Agreement 10 Rev. February 8, 2017 regulation and CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by DIR. CITY requires CONTRACTOR and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONTRACTOR and its listed subcontractors, in connection with the Project. The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONTRACTOR and its listed subcontractors, respectively. At the request of CITY, acting by its project manager, CONTRACTOR and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY’s request. [For state- and federally-funded projects] CITY requests CONTRACTOR and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. If the certified payroll records are not produced to the project manager within the 10-day period, then CONTRACTOR and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONTRACTOR. Inform the project manager of the location of CONTRACTOR’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the case of any conflict between the terms of this Agreement and the exhibits hereto or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONTRACTOR’s proposal, the exhibits shall control. City of Palo Alto General Services Agreement 11 Rev. February 8, 2017 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 SIMPLEX GRINNELL, LP ______________________________ By________________________________________ City Manager or Designee Name _____________________________________ Title_______________________________________ Telephone: _______________________________ Approved as to form: ___________________________ Assistant City Attorney City of Palo Alto General Services Agreement 12 Rev. February 8, 2017 EXHIBIT A SCOPE OF SERVICES Fire Sprinkler Deficiency Repairs Contractor shall perform the following deficiency repairs identified in Contractor’s inspection in December 2016: 1. Pre-Action level “A”: a) Replace three (3) 0-300psi gauges that are outdated. b) Replace three (3) drain signs that are missing. 2. Police Department – Level “A”: a) Interview room - Replace two (2) ½” brass 165 degree pendent sprinkler heads that are painted near the projector. - Replace one (1) ½” brass 212 degree HSW sprinkler head that is painted by the light. b) CSO office – Replace five (5) ½” brass pendent sprinkler heads that are painted. One on the right side from door. One in the middle row by window. Two by left line #2 by window. One by the door. c) Patrol room – Replace two (2) chrome semi-recessed escutcheons that are missing. d) Patrol sergeant room – Replace two (2) chrome semi-recessed escutcheons that are missing. - Lower two (2) sprinkler heads that are too high above the red locker. - Replace one (1) ½” brass 165 degree VSW sprinkler head that is painted. - Replace one (1) ½” brass 165 degree brass pendent that are painted. e) Outside men’s locker room – Replace one (1) ½” brass 165 degree pendent sprinkler head that is loaded. f) Men’s locker room – Replace two (2) ½” brass 165 degree pendent sprinkler heads, one is loaded over the toilet and one that is corroded in the shower. g) Locker 005-006 – Replace one (1) leaking pipe at R/C. Remove and replace pipe with new fitting and new ½” chrome 165 degree QR pendent sprinkler head. h) Women’s locker room – Replace one (1) ½” chrome 155 degree QR pendent sprinkler head that is loaded at locker #071. - Replace two (2) ½” brass 165 degree pendent sprinkler heads, one that is painted in the toilet area and one that is corroded in the shower. i) Police Gym – Replace two (2) ½” chrome 165 degree SSP sprinkler heads that are loaded on the east side of room. Replace one (1) ½” brass 165 degree SSU sprinkle head and one (1) ½” brass 265 degree pendent sprinkler head that are painted in weight room towards garage. Note: The coed locker room police garage has 1 sprinkler head over the locker that does not have 18” clearance due to boxes being stacked on lockers. The boxes are to be removed by others. j) Evidence room/area - Remove and plug one (1) cold solder condition sprinkler head. Replace one (1) 1 ½” pipe hanger that is missing near the light. Note: Post tension cables in concrete so scanning will be required. City of Palo Alto General Services Agreement 13 Rev. February 8, 2017 k) Police garage west side (Ramona St side) – Replace two (2) ½” brass 165 degree SSP sprinkler heads that are painted in the staff cage. 3. Garage #1: a) Line #7 – Replace eleven (11) ½” brass 165 degree SSU sprinkler heads that are painted and one (1) ½” brass 165 degree SSP sprinkler head that is painted. b) Line #6 - Replace thirteen (13) ½” brass 165 degree SSU sprinkler heads that are painted. c) Line #5 - Replace fourteen (14) ½” brass 165 degree SSU sprinkler heads that are painted. d) Line #4 - Replace fourteen (14) ½” brass 165 degree SSU sprinkler heads that are painted. e) Line #3 - Replace twelve (12) ½” brass 165 degree SSU sprinkler heads that are painted. f) Line #2 - Replace nine (9) ½” brass 165 degree SSU sprinkler heads that are painted. g) Line #1 - Replace one (1) ½” brass 165 degree SSU sprinkler heads that are painted. 4. Police department level ground: a) Police records by council chambers - Replace one (1) ½” chrome 155 SR pendent sprinkler head that is corroded. b) Patrol division hallway outside - Replace one (1) ½” chrome 155 SR pendent sprinkler head that is loaded. c) Police records lobby – Replace three (3) off white 401 skirts that are missing. Note: Extension ladder required. d) Detective area riser closet - Replace one (1) “Riser Inside” sign that is missing. Replace one (1) 0-300 psi gauge that is outdated. Replace one (1) chrome semi-recessed escutcheon on that is missing next to door jam for room #2. Note: Contractor did not have access to the doors 5, 6, 7, 8, 11, 17, 20, 23 during the inspection. At the time that Contractor performs the repairs in this Section 4, Contractor shall inspect the rooms accessed through these doors and coordinate with City to ensure Contractor has access. If deficiencies are identified during the inspection, Contractor shall submit a change order request to correct found deficiencies. e) Room #115 – Replace one (1) chrome semi-recessed escutcheon that is missing. 5. Ground level: a) Elevator lobby – Replace four (4) ½” chrome 155 degree SR pendent sprinkler heads, three are loaded and one is wrong temperature. b) Women’s restroom – Replace one (1) ½” chrome 155 degree SR pendent sprinkler head this is painted. c) Men’s restroom – Replace one (1) ½” chrome 155 degree SR pendent sprinkler head this is loaded. d) Open high area on west side – Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads this are painted. Note: 30” lift required. 6) Council chambers: City of Palo Alto General Services Agreement 14 Rev. February 8, 2017 a) Middle heads are wrong temperature – Replace seven (7) fire sprinkler heads with ½” chrome 165 degree SSP sprinkler heads. Note: Contractor will rent a lift to perform the work, the seats will need to be removed for lift access. Floor is sloped so scaffolding may be required. If it is determined scaffolding is required to complete repair, City may provide the scaffolding or Contractor may submit a change order request to include scaffold rental, at City’s discretion. 6. Revenue collections: a) West Stair A Lobby – Replace one (1) ½” brass 165 degree SSP sprinkler head that is painted. b) Lobby for level A – Replace five (5) ½’ brass 165 degree SSP sprinkle heads that are loaded and/or painted. c) Elevator lobby by mail boxes – Replace one (1) ½” brass 165 degree SP sprinkler head that is loaded. 7. Cafeteria “A” Level: a) Room on left – Replace one (1) ½” brass 165 degree SSP sprinkle head that is painted. b) Row 1 east side – Replace six (6) ½” brass 165 degree SSP sprinkler heads that are painted. c) Row 2 middle – Replace seven (7) ½” brass 165 degree SSP sprinkler heads that are painted. d) Row 3 west side – Replace five (5) ½” brass 165 degree SSP sprinkler heads that are painted. 8. 1st Floor: a) Women’s restroom – Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads, one is painted and one is corroded. b) Men’s restroom – Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. c) Room #102 – Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. d) Lobby – Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is damaged. e) 3” Riser - Replace one (1) 0-300psi gauge that is outdated. 9. 2nd Floor: a) Lobby – Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads that are painted corroded. b) 3” Riser – Replace one (1) 0-300psi gauge that is outdated. 10. 3rd Floor: a) 3” Riser – Replace one (1) 0-300psi gauge that is outdated. b) Women’s restroom – Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads that are painted. c) Men’s restroom – Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. City of Palo Alto General Services Agreement 15 Rev. February 8, 2017 d) By cubicle - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is loaded. e) By West exit - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is corroded. f) Room #305 – Replace one (1) chrome semi-recessed escutcheon that is missing. g) By cubicle 30 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is loaded. 11. 4th Floor: a) 3” Riser – Replace one (1) 0-300psi gauge that is outdated. b) Lobby outside women’s restroom – Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. c) Women’s restroom - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. d) Men’s restroom – Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads that are painted. e) Room #403 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is loaded. f) Room #402 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is corroded. g) Cubicle 403 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is loaded. h) Cubicle 426 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is loaded. i) File cabinet one the east/north (crrv) - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is loaded. j) Over Sink – Remove and plug one (1) cold solder condition sprinkler head. 12. 5th Floor: a) 3” Riser - Replace one (1) 0-300psi gauge that is outdated. b) Outside in hall by Riser – Replace one (1) ½” brass 165 degree SSU sprinkler head that is corroded. c) Women’s restroom - Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads that are painted. d) City employee entrance door - Replace one (1) chrome semi-recessed escutcheon that is missing over the copier. e) Across from room #504 - Replace one (1) chrome semi-recessed escutcheon that is missing. f) Room #504 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. g) Outside Room #507 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is loaded. h) Outside stair over the big table - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is loaded. i) Room #508 - Replace one (1) chrome semi-recessed escutcheon that is missing. j) Outside Room #509 - Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads that are loaded. City of Palo Alto General Services Agreement 16 Rev. February 8, 2017 13. 6th Floor: a) 3” Riser - Replace one (1) 0-300psi gauge that is outdated. b) Office by riser - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted by receptionist over copier. - Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads that are painted towards the exit sign. c) Fire deputy chief office - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. d) Office by bulletin board - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. e) By server room - Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads that are painted. f) West side open area - Replace twelve (12) ½” chrome 155 degree SR pendent sprinkler heads that are painted and/or loaded from south to north, stop at the copier. g) Room #601 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. h) On north side going to the west to east starting at big copier - Replace four (4) ½” chrome 155 degree SR pendent sprinkler heads that are loaded. i) Room #603 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. j) Room #605 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. k) Room #606 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. 14. 7th Floor: a) 3” Riser - Replace one (1) 0-300psi gauge that is outdated. b) Lobby elevator - Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads that are painted. c) Men’s restroom - Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads that are painted. d) Men’s restroom closet – Replace one (1) chrome semi-recessed escutcheon that is missing. e) City auditor west side - Replace one (1) chrome semi-recessed escutcheon that is missing. f) Attorney office on south/west side - Replace two (2) ½” chrome 155 degree SR pendent sprinkler heads that are painted. g) Room #712 - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. h) Mayor area deputy city clerk outside - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. i) Mayor’s office - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. j) Lobby open area - Replace four (4) ½” chrome 155 degree SR pendent sprinkler heads that are loaded. City of Palo Alto General Services Agreement 17 Rev. February 8, 2017 k) City manager’s office storage room from door - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. l) City manager’s office by clock - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. m) City manager’s office to the left of the TV on wall - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. n) City manager’s office 2 offices to the left of the TV on wall - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is loaded. o) City manager’s office outside of glass conference room and head towards window there is a Quick Response pendent sprinkler head, remove and replace with one (1) ½” chrome 155 degree SR pendent sprinkler head. p) City manager’s office at the door that goes to the lobby - Replace one (1) ½” chrome 155 degree SR pendent sprinkler head that is painted. q) City manager’s office conference room - Replace one (1) chrome semi-recessed escutcheon that is missing on the west side of glass conference room. 15. 8th Floor: a) 3” Riser - Replace one (1) 0-300psi gauge that is outdated. b) Attorney room – Note: See below additional scope of work regarding adding one (1) sprinkler head. c) Room #805 – Lower one (1) pendent sprinkler head that is too low. d) West stair lobby - Replace one (1) chrome semi-recessed escutcheon that is missing. Contractor shall perform the following work items identified in a site survey conducted by Contractor together with City on February 2, 2017: 1. Add one (1) ½” brass 165 degree SSP sprinkler head with head guard to the mechanical room in level “A” police room. 2. Add one (1) ½” brass 165 degree SSP sprinkler head to the mechanical room in level “A” police room office. 3. Add one (1) ½” chrome 165 degree SSP sprinkler head to the men’s locker room. 4. Add one (1) ½” chrome 165 degree SSP sprinkler head to the men’s locker room exit toward garage. 5. Add one (1) one ½’ chrome 165 degree SSP sprinkler head to the attorney room. 6. Add three (3) ½” brass 165 degree SSP sprinkler heads to the police level “A” mechanical room. 7. Relocate one (1) ½” brass 165 degree SSP sprinkler head in “A” level storage. 8. Replace seven (7) ½” brass 165 degree SSU sprinkler heads to the police level “A” mechanical room. 9. Replace one (1) ½” brass 165 degree Vertical sidewall sprinkler head in the police level “A” mechanical room. 10. Replace seven (7) ½” brass 165 degree SSP sprinkler heads in the electric hallway south of the mail room that are approaching the 50 year mark. 11. Replace seventeen (17) ½” brass 165 degree SSP sprinkler heads in “A” level storage that are approaching the 50 year mark. City of Palo Alto General Services Agreement 18 Rev. February 8, 2017 12. Replace twenty one (21) ½” brass 165 degree SSP sprinkler heads in level “A” print shop/mail shop that are approaching the 50 year mark. 13. Replace seventeen (17) ½” brass 165 degree SSU sprinkler heads in level “A” 911 equipment room that are approaching the 50 year mark. 14. Replace one (1) ½” brass 165 degree SSP sprinkler heads in level “A” 911 equipment room that is approaching the 50 year mark. 15. Replace twenty (20) ½” brass 165 degree SSP sprinkler heads in the level “A” cafeteria that are approaching the 50 year mark. Note: We also include cutting back five (5) of these heads as they are too low down from the ceiling. 16. Replace four (4) ½” brass 165 degree SSP sprinkler heads in the level “A” garage lobby that are approaching the 50 year mark. 17. Replace five (5) ½” brass 165 degree SSP sprinkler heads in the level “A” IT Tech - tank room that are approaching the 50 year mark. 18. Replace four (4) ½” brass 165 degree SSP sprinkler heads in “A” level police briefing room that are approaching the 50 year mark. 19. Replace twelve (12) ½” brass 165 degree SSP sprinkler heads in the level “A” CSO office that are approaching the 50 year mark. Note: Two of the existing heads are also painted. 20. Replace one (1) ½” brass 165 degree SSP sprinkler head in the level “A” CSO locker room hallway that is approaching the 50 year mark. 21. Replace one (1) ½” brass 165 degree VSW sprinkler head in the level “A” CSO locker room hallway that is approaching the 50 year mark. 22. Replace ten (10) ½” brass 165 degree SSU sprinkler heads in the garage #1 south side (Forest ST side) in the blue storage lockers that are approaching the 50 year mark. 23. Replace six (6) ½” brass 165 degree SSU sprinkler heads in the level “A” police gym that are approaching the 50 year mark. 24. Replace two (2) ½” brass 165 degree SSP sprinkler heads in the level “A” police gym that are approaching the 50 year mark. 25. Replace one (1) ½” brass 165 degree SSP sprinkler head in the level “A” shared locker room above locker that is approaching the 50 year mark. 26. Parking Garage: a) Replace a total of three hundred and seven (307) ½” brass 165 degree SSU fire sprinkler heads in the “A” Level parking garage. b) Replace a total of seven hundred forty (740) ½” brass 165 degree SSU fire sprinkler heads in the “B” Level parking garage. c) Replace a total of eight hundred eighty one (881) ½” brass 165 degree SSU fire sprinkler heads in the “C” Level parking garage. d) Replace a total of sixteen (16) ½” brass 165 degree SSU fire sprinkler heads in the stair wells. Note: A portion or all of these sprinkler head change outs in the garage may require being completed during overtime working hours, which is reflected in the estimated amount of Overtime Labor in Exhibit C. City will be responsible for providing access to fire sprinkler heads by blocking off a minimum of 50% (or half) of each level of the parking garage area for each day work is to be completed in the parking garage. 27. North End of parking garage (Hamilton St side of garage level’s A, B & C): City of Palo Alto General Services Agreement 19 Rev. February 8, 2017 Starting from 8” fire sprinkler main line closest to North side of garage: Replace the following corroded material on all three levels A, B & C: a) Fifteen (15) 8” Victaulic couplings. (x3) b) One (1) 8” butterfly valve. (x3) c) Three (3) 8” 90’s. (x3) d) Approximately 15’ of 8” fire sprinkler piping. (x3) e) Two (2) 0-300 psi gauges. (x3) f) One (1) 8” Flow switch. (x3) Note: A portion of the work in these areas of and scope of work may require being completed during overtime working hours, which is reflected in the estimated amount of Overtime Labor in Exhibit C. 28. Middle section of parking garage (Hamilton St side of garage level’s A, B & C): Starting from 8” fire sprinkler main running along wall: Replace the following corroded material on all three levels A, B & C: a) Replace one (1) 8” OS&Y valve (takeout of OS&Y is 11 ½”). (x3) b) Replace 8” GXG fire sprinkler pipe approximately 16’ – 4 ½”. Drill hole and install one (1) 2” saddle for flow switch. (x3) c) Replace one (1) 8” 90. (x3) d) Replace two (2) 0-300 psi gauges. (x3) e) Replace one (1) 8” flow switch. (x3) f) Replace three (3) 8” Victaulic couplings. (x3) g) Install two (2) gauge kits for gauges. (x3) Note: A portion of the work in these areas of and scope of work may require being completed during overtime working hours, which is reflected in the estimated amount of Overtime Labor in Exhibit C. 29. Middle section of parking garage ( Hamilton St side of garage level’s A, B & C): Starting from 8” fire sprinkler main line closest to center of garage. Replace the following corroded material on all three levels A, B & C: a) Replace one (1) 8” Flange x Groove OS&Y valve. (x3) b) Replace one (1) section of 8” fire sprinkler pipe approximately 9’ – 1 ½” (from flange to Vic coupling). Drill hole and install one (1) 2” saddle at 7’ from Victaulic coupling for flow switch. (x3) c) Replace one (1) 8” Victaulic coupling. (x3) d) Replace one (1) 8” flow switch. (x3) Note: A portion of the work in these areas of and scope of work may require being completed during overtime working hours, which is reflected in the estimated amount of Overtime Labor in Exhibit C. 30. In “C” level garage: a) Replace a total of three (3) 2” drain valves (one for each section) that are corroded. 31. Standpipe deficiency repairs: a) Remove a total of thirty seven (37) fire hoses and thirty seven hose valves and plug off. City of Palo Alto General Services Agreement 20 Rev. February 8, 2017 32. Fire pump deficiency repairs: a) Replace five (5) 0-300 psi gauges. b) Replace one (1) flow meter that is not working. c) Reconfigure jockey pump supply line so it is tied into the system after the clay valve. d) Verify there is a gauge on the discharge side of pump. If there is no gauge currently, SimplexGrinnell will add one (1) gauge. City of Palo Alto General Services Agreement 21 Rev. February 8, 2017 EXHIBIT B SCHEDULE OF PERFORMANCE CONTRACTOR shall perform the Services according to the following schedule: Correction of the deficiencies found during the 5-Year Fire Sprinkler, Fire Pump and Standpipe inspection shall be completed within 60 calendar days from Notice to Proceed. City of Palo Alto General Services Agreement 22 Rev. February 8, 2017 EXHIBIT C SCHEDULE OF FEES Compensation based upon fee schedule 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. Time & Materials Pricing Breakdown: Description: Qty. Rate: Estimated Price • Labor: • Overtime Labor* 728 288 $165.00/hr $212.50/hr $120,120.00 $61,200.00 • Lift/Equipment Rental: 1 $2,880.00 • Materials: • Truck Charge • Plans/Permits 1 1 1 $150.00 $48,218.00 Waived $532.00 Estimated Cost: $232,950.00 *Overtime Labor rate applies for hours worked by an individual in excess of 8 hours per day. City of Palo Alto General Services Agreement 23 Rev. February 8, 2017 EXHIBIT D INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” City of Palo Alto General Services Agreement 24 Rev. February 8, 2017 A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY 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 City of Palo Alto General Services Agreement 25 Rev. February 8, 2017 EXHIBIT E BONDS Appendix for General Services Agmt 1 February 8, 2017 Appendix A: Claims for Public Contract Code Section 9204 Public Works Projects The provisions of this this Appendix are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims related to the Services performed under this Agreement. 1. Claim Definition. “Claim" means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following: (A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City. (B) Payment by the City of money or damages arising from the Services performed by, or on behalf of, the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled. (C) Payment of an amount that is disputed by the City. 2. Claim Process. (A) Timing. Any Claim must be submitted to City in compliance with the requirements of this Appendix no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This time requirement is mandatory; failure to submit a Claim within fourteen (14) days will result in its being deemed waived. (B) Submission. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Appendix, and must include reasonable documentation substantiating the Claim. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Agreement, and a chronology of relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost. Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts. (C) Review. Upon receipt of a Claim in compliance with this Appendix, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time period provided in this paragraph 2. (D) If City Council Approval Required. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion. Appendix for General Services Agmt 2 February 8, 2017 (E) Payment. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. If the City fails to issue a written statement, paragraph 3, below, shall apply. 3. Disputed Claims (A) Meet and Confer. If the Contractor disputes the City's written response, or if the City fails to respond to a Claim submitted pursuant to this Appendix within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. (B) Mediation. Any remaining disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to any other remedies authorized by the Agreement and laws. (i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. (ii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation, if any, under Public Contract Code Section 20104.4 to mediate after litigation has been commenced. 4. City’s Failure to Respond. Failure by the City to respond to a Claim from the Contractor within the time periods described in this Appendix or to otherwise meet the time requirements of this Appendix shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Appendix, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor. 5. Interest. Amounts not paid in a timely manner as required by this section shall bear interest at seven (7) percent per annum. 6. Approved Subcontractor Claims. If an approved subcontractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier Appendix for General Services Agmt 3 February 8, 2017 subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the Claim be presented to the City shall furnish reasonable documentation to support the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. 7. Waiver of Provisions. A waiver of the rights granted by Public Contract Code Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Public Contract Code Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. City of Palo Alto (ID # 8012) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Ambulance Billing - Intermedix Title: Authorize the City Manager to Execute an Agreement Between the City of Palo Alto and Intermedix, for Ambulance Service Billing, for a One-Year Period Through September 30, 2018, With the Option to Renew for Four Additional One-Year Periods Through September 30, 2022 for the Amount of $160,000 per year, not to exceed $800,000 From: City Manager Lead Department: Fire Recommendation Staff recommends that Council consider that Council: 1. Approve and authorize the City Manager or designee to execute Contract No. C17165490 with Advanced Data Processing, (ADPI) DBA: Intermedix for ambulance billing service. 2. This agreement is for a one-year period through September 30, 2018, for an amount not to exceed $160,000 per year, with the option to renew four additional one-year periods for a total amount not to exceed $800,000 over a five-year period ending September 30, 2022. Background The City of Palo Alto Fire Department currently bills for ambulance transports through a third party vendor. Due to the complex and constantly changing regulations in health care billing, it is necessary to rely on the expertise of a billing vendor. Outsourcing to a third party billing vendor has continually increased revenues for the City. The City Auditor conducted a study in 2007 that recommended very detailed and increased oversight of patient accounts. A process was put in place to have a continuous review of accounts and monthly meetings with the vendor to discuss accounts. The vendor for this contract will be required to comply with that process. There was a competitive bid with three other vendors responding. Staff reviewed all bids and compared evaluations. Intermedix is the current venfor and submitted the lowest bid which received the highest objective scores compared to other bids. City of Palo Alto Page 2 Discussion With the implementation of this Agreement the City will work in coordination with the vendor, revenue collections and the Emergency Medical Services (EMS) Division of the Fire Department to the extent the City is allowed to collect. The Fire Department has funding in the current budget to cover expenses with this agreement. This Agreement will allow the vendor to bill on behalf of the City for all EMS services. The vendor possesses the expertise and experience to work with and bill for medical services. The Affordable Healthcare Act (AHA) has created an uncertain environment with multiple changes in allowable billing, required documentation, support documentation, new forms and other complexities the City doesn’t provide. The Fire Department requires expertise in medical billing. A professional third party vendor maintains vigilance and updated information to allow for the maximum cost recovery, collections, while minimizing appeals from MediCare and other insurance companies. Summary of Solicitation Process: Proposal Description/Number RFP 165490 Ambulance Billing Proposed Length of Project 5 years Number of vendors notified through City’s eProcurement system 503 Number of solicitation packages downloaded by vendors 16 Total Days to Respond to Proposal 49 Non Mandatory or Mandatory Pre-Proposal Meeting Date: None Scheduled Number of Company Attendees at Pre-Proposal Meeting NA Number of Proposals Received 3 Range of Proposal Amounts From 2.85%-3.85% of collected amounts POLICY IMPLICATIONS This recommendation is consistent with existing City policies and will allow the City to continue the outsourcing of ambulance billing at the most competitive rate. ENVIRONMENTAL REVIEW This contract is not a project under the provisions of the California Environmental Quality Act. RESOURCE IMPACT There is no increased impact to the agencies current budget or process with this agreement. City of Palo Alto Page 3 Attachments: Attachment A – Intermedix Contract Attachments: Attachment A: Signed C17165490 Intermedix Ambulance Billing Contract.docx CITY OF PALO ALTO CONTRACT NO. C17165490 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ADVANCED DATA PROCESSING, INC., A SUBSIDIARY OF INTERMEDIX CORPORATION FOR PROFESSIONAL SERVICES This Agreement is entered into on this 1st day of October, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and ADVANCED DATA PROCESSING, INC., A SUBSIDIARY OF INTERMEDIX CORPORATION, a Delaware corporation, located at 6451 North Federal Highway, Suite 1000, Fort Lauderdale, FL, 33308 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to provide complete medical billing and accounts receivable management services for CITY’s first responder, paramedic, and/or Basic Life Support (BLS), and membership program fees (“Project”) and desires to engage a consultant to provide services in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in 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 September 30, 2022 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 DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 2 made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Eight Hundred Thousand Dollars ($800,000.00). 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. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 3 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 Michael Brook as the Senior Vice President to have supervisory responsibility for the performance, progress, and execution of the Services and Nina Patel, Director of Client Support and Mori Moriuchi, Director Client Relations to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 4 assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Kim Roderick, Fire Department, 250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650) 329-2220. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 5 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. 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 DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 6 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 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. DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 7 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. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 8 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. This document may be amended only by a written instrument, which is signed by the parties. DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 9 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: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 1 CONTRACT No. C17165490 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: ADVANCED DATA PROCESSING, INC., A SUBSIDIARY OF INTERMEDIX CORPORATION Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Senior Vice President 5/3/2017 Mori Moriuchi Professional Services Rev. April 27, 2016 2 EXHIBIT “A” SCOPE OF SERVICES A. Background CONSULTANT shall provide complete medical billing and accounts receivable management services for CITY’s first responder, paramedic, and/or BLS, and membership program fees in accordance with the responsibilities outlined below, as required according to business needs. CONSULTANT shall have a comprehensive and successful Emergency Medical Services billing and customer service record with significant experience in Prehospital billing, GEMT and IGT report needs. Prehospital billing experience shall include 911 system ambulance transports at the ALS / BLS level as well as experience in non 911 system interfacility transports. This level of experience would typically require 5 plus years of EMS / Ambulance billing business at a volume equal to or greater than the City of Palo Alto Fire Department. CONSULTANT must offer leading technology in electronic billing and insurance follow-up. CONSULTANT shall have highly qualified staff with a background in a Prehospital billing. CONSULTANT shall provide data on company history of collections including payer mix with percentage of collections for each category. CONSULTANT shall provide the City with customer references. CONSULTANT shall provide local support to City and meet in person on a monthly basis. Currently the City of Palo Alto is utilizing an electronic patient care report (ePCR). The City may still have occasional paper PCR’s for processing. CONSULTANT shall provide a fee schedule based on an ePCR and/or paper PCR if there is a differentiation. The total transports for the City of Palo Alto is approximately 3500 transports per year. CONSULTANT shall be responsible for interface with ESO Solutions, or current ePCR vendor without cost to the City. B. Specific Scope Requirements: CONSULTANT will provide the following specific services: 1. Provide general billing and accounts receivable management services to CITY for Emergency and Non-Emergency transport services consistent with the provisions in City’s Municipal Fee Schedule, ensuring that every billable claim is pursued. 2. Maintain up-to-date knowledge of different industry insurance plans and providers, and utilize most up-to-date knowledge and information with regard to coding requirements and standards, to ensure compliance with applicable Federal, State and local regulations. 3. When a new account is received, assign billing account numbers that provide a cross-reference to the CITY’s assigned incident numbers. 4. On a monthly basis, reconcile the number of transports processed with those received. DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 3 5. On a monthly basis, have CONSULTANT team meet with/at the City to review accounts, spot audit accounts, and update staff on status of outstanding or standing accounts. 6. Maintain responsibility for obtaining missing or incomplete insurance information and billing information. 7. Provide accurate coding of medical claims as set by State and Federal requirements, and facilitate proper security of confidential information and proper shredding of all disposed material containing such information in accordance with HIPAA and Red Flag Rules and regulations. 8. Make recommendations as requested for fee schedule changes. Regularly advise CITY of changes in statues and industry regulations. Provide Bay Area average billing/fee schedules, as needed. Provide strategies to maximize programs, including company charts that estimate the impact of billing system changes. 9. For any accounts previously returned to the City for follow up or further action or which any payment is received by CONSULTANT, report such payment to ASD within 3 business days of receipt. 10. Pursue payment from international and local patients in the same manner with the same diligence. 11. When necessary, provide subject matter expert to assist with any application process as needed for City representative. (CMS, Worker’s Comp, etc.) 12. CONSULTANT shall abide by all local, state and federal laws applicable to medical billing and patient confidentiality. 13. Contractor shall provide a monthly report of performance metrics based on: a. Collections Formula: i. Collections Percent = collections/charges ii. Collections = Payments Less refunds (Exclude GEMT, IGT and Collections Agency Payments) iii. Charges for: 1. Medicare and Medicaid adjustments taken at time of billing or payment? 2. Include or Exclude? a. Medicare not medically necessary b. Medicare Claims with Missing Signatures c. Self-Pay, Homeless, Transients iv. Gross Collection v. Net Collections-adjustment taken at time of payment vi. Adjusted net collections – exclude NMN, missing signatures, etc. vii. Account with payments b. Average Collections/Transport is the better collections performance metric 14. Patient Account Log. CONSULTANT shall file and maintain a log (a “patient account log”) for each patient account documenting the complete history of all notices, phone calls, other correspondence, and actions taken to collect insurance payment, including but not limited to: ● all invoice and billing records, DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 4 dates of all written and oral correspondence, details of such correspondence, notations of billing contacts and updates, patient contacts, returned mail, phone disconnects, etc., all records of re-submittals and corrections. all information regarding the patient including CITY’s incident number, name, gender, date of birth, date of service, call type, address ● in the case of account write-offs, the reason why the account is uncollectible. ● all required documentation and agreements with payers (including Medicare, Medicaid, Champus, etc.) CONSULTANT shall provide a copy of the Patient Account Log to City when referring the account back to the City. 13. Invoices and Billing. Billing cycles will be reset upon billing a different payer and therefore may be extended beyond the 180 period for collections described in sections “a” through “c” below. CONSULTANT shall take all reasonable measures to ensure that patients are billed for services, including establishing contacts with local hospitals to obtain and/or verify patient insurance and demographic information, as necessary. In general, if sufficient billing information is provided by the city, the account shall be invoiced within 3 business days. If insufficient billing information is provided by the city, the CONSULTANT shall pursue information within 10 business days. This includes; skip search, send patient a signature card, request a facesheet from the receiving facility, etc. Once sufficient information is obtained by the CONSULTANT the account shall be invoiced within 3 business days and follow the timelines as detailed below. CONSULTANT shall invoice patients according to the following billing cycle. Receipt of account shall be defined as the date the paper PCR or ePCRs received by the vendor. a. Self-Pay Cycle – Completed PCR/ePCR: Correspondence: Action Taken No Later Than: Initial Invoice no SSN 3 days for ePCR and 5 days for paper PCR from receipt of account Initial Invoice with SSN 10 days for ePCR First Letter Contact 15 days from receipt of account Secondary Letter Contact 45 days from the previous invoice Continued Follow Ups 80 days from receipt of account (Invoice or Letter) 115 days from receipt of account Final Demand Notice 145 days from receipt of account Refer to City for action DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 5 or report status 180 days from receipt of account b. Insurance Accounts: Correspondence: Action Taken No Later Than: Initial Invoice 3 days for ePCR and 5 days for paper PCR from receipt of account First follow up 45 days after first submission to Insurance Continued Follow Ups 80 days from receipt of account (Invoice or Letter) 115 days from receipt of account 145 days from receipt of account Refer/report to City for action or report status 180 days from receipt of account c. Incomplete PCR/ePCR CONSULTANT shall pursue information within 10 business days. Once information is complete, the timelines shall be the same as in Section (a) above. d. Special Accounts/Modified Payment: CONSULTANT shall negotiate and arrange modified payment schedules for individuals unable to pay full amount when billed and shall work with customers to establish special payment cycles to accommodate these individual payment needs to accommodate installment payments, liens, bankruptcy, or other special payment arrangements. Such payment plans shall be established in writing, with the record of the plan, installment invoices, and all payments retained in the Patient Account Log. Installments and other special accounts shall be mailed no later than every thirty (30) days until paid in full. If, after a modified payment plan is arranged and no payments are made for a continuous 60 day period, CONSULTANT shall refer the account to the City for action. e. Return Mail and Accounts Requiring Additional Information: In addition to adhering to the billing cycle deadlines listed above, CONSULTANT shall conduct skip tracing search requests and/or review information acquired from hospitals no Later than 3 days from receipt of return mail/date f. Communication with patients and customers: All correspondence or phone calls shall identify the CONSULTANT’s name and clearly state they are working on behalf of the City of Palo Alto. g. Delinquency Notice: All initial and subsequent invoices shall state the date on which the patient’s account will become (or did become) delinquent, DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 6 h. Secondary insurance: Secondary insurance provider claims shall be submitted after the primary insurance provider has paid. i. Return of delinquent and uncollectible accounts to City: Delinquent accounts shall be referred back to the CITY at the 180 day deadline as listed above in sections 13(a) – (c) with a copy of the Patient Account log or as directed by the City. (1) Legally uncollectible amounts (such as Medicare and Medical approved payments lower than City rates) shall be reported separately and submitted monthly for City review. (2) In returning delinquent accounts back to City, CONSULTANT shall provide with the Patient Account Log proof and dates of attempts to collect on the account. (3) CONSULTANT shall hold all accounts transferred back to City in inactive status and shall perform no collection activity unless and until directed in writing by City. j. Payment progress reports: For accounts in which insurance payment is pending or a modified schedule has been arranged, CONSULTANT shall provide a report to the City at 180 days from receipt of account and every thirty days thereafter that shows status and payment progress. 14. Reports: CONSULTANT shall provide reports as requested by the City of Palo Alto. All reports submitted to the City shall be in order of the City’s incident numbers, and shall be submitted no later than 10th day of the following month. Required reports include but are not limited to: a. Monthly reports for the Month and Year-to-Date Activity, to City’s Revenue Collections and Accounting: Billing Report Payment Report Detail Open Items Report including account status by date of service Legally Uncollectible Report (Medicare and Medical) Delinquent Accounts (referred to City) Overpayment Report Detailed Report of Collections for Each Service (IFT, Downgrades, ALS) Comprehensive Fiscal Year End Report Payer Mix Report Exception Report on Unbilled Invoices Report on payments received on items in collection status b. Monthly reports to Fire Department EMS Chief: DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 7 Itemized Patient Account Report Monthly (Listed: in order of City incident number) should include: date of service, dispatch time, unit number, patient name, age, DOB, status of account, i.e. invoiced or pending information Incident # date of service dispatch time unit number Pt Name Age DOB status Detailed Summary Report of Collections for Each Service Monthly (IFT, Downgrades, ALS) c. Other reports to be provided as requested by City include but are not limited to: Comprehensive Fiscal Year End Report Annually (listing: sum of accounts, sum of charges, sum of adjustments, sum of Payments, sum of write-Offs, sum of reimbursement balances by month) Payer Mix Report as requested Miscellaneous Reports as requested 15. Electronic records: CONSULTANT shall be able to receive and send data compatible with the CITY’s field data system software (ePCR). CONSULTANT shall interface or have a link that is capable of downloading or uploading information from the CITY’s data collection system. CONSULTANT shall provide a billing interface with the CITY’s ePCR program and have it operational within 60 days of the award of the Contract and maintain an electronic interface throughout the Contract at no cost to the City. CONSULTANT shall also maintain records in an electronic format that is accessible by designated CITY personnel, who will be given direct log on access to the vendor’s database, and meets all Federal and State requirements for maintaining patient medical records and privacy. 16. Customer inquiries: CONSULTANT shall provide a designated liaison to respond to patient/payer concerns, establish a toll free telephone number for customers to call for inquiries, and respond to customer questions or concerns as soon as possible but no later than 24 hours of the initial inquiry (excluding holidays and weekends). CONSULTANT shall also provide assistance in responding to inquiries concerning third-party claims. 17. Training: Keep City apprised of changes to industry regulations and periodically provides training as requested by CITY to CITY’s EMS and/or CITY fire personnel regarding the gathering of the necessary information and proper completion of run tickets 18. Payments and accounting: CONSULTANT shall maintain appropriate accounting procedures for reconciling all deposits, receivables, billings, patient DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 8 accounts, adjustments and refunds. CONSULTANT shall maintain daily deposit control sheets and original documentation of payments. CONSULTANT shall accept cash, checks and credit card payments as acceptable forms of payment for invoiced services. All funds received by CONSULTANT shall be deposited directly into the City’s designated bank account immediately upon receipt. 19. Audits: Cooperate with City as required to complete periodic audits. 20. CONSULTANT shall transition to full implementation of services once according to the following schedule: dates and deadlines TBD as provided by CONSULTANT and to be incorporated into this scope 21. Monthly meetings: To ensure that CONSULTANT returns uncollected accounts in a timely manner and provide a check to ensure that CONSULTANT does not continue to bill accounts that have already been returned to City, CONSULTANT’s Account Manager shall meet at least once per month with the City of Palo Alto Staff from the Fire Department and from the Administrative Services Department. To review open accounts, accounts referred back to City, problems and opportunities related to ambulance billing, and other related issues. At each meeting, CONSULTANT shall report on all accounts over 180 days and the status of accounts that have not been invoiced, as well as provide any other updates requested by City. The monthly meetings will be pre-scheduled and the City of Palo Alto may request additional meetings if deemed necessary. 22. CONSULTANT assists with completing any applications for EFT (Electronic Funds Transfer), CMS or other applications for the CITY. 23. In the event the City or CONSULTANT dissolves this agreement for any reason, all records will be returned or transferred in an agreed upon format and assist in a smooth transition of accounts to the City or designee. 24. Dissolution of agreement: If either party dissolves this agreement, all current accounts shall be handled as specified through 180 days at which time all accounts would be turned over to the CITY for processing. II. Performance Requirements/Penalty for Non-Performance Detailed below are the CONSEQUENCES for NON PERFORMANCE for this Agreement. 1. Billing correspondence shall be submitted according to the timelines set forth in Attachment A, Sections 13(a), (b) and (c). Failure to meet the standard with a minimum 95% compliance in that month will result in a 2.5% reduction to the collection amount for the month in which the standard was not met. For example, if the CONSULTANT collection amount for that month is $15,000, the penalty for that month for non-compliance would be $375. DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 9 2. CONSULTANT shall meet the 180 day referral back to the City for non-collection of billing. Failure to meet the standard with a minimum 95% compliance will result in a 2.5% reduction to that month’s collection amount. 3. Submit all reports as required in Attachment B, Section 14 by the 10th of each month to verify satisfactory performance in monthly meetings with Fire and ASD Staff. Failure to meet this standard will result in a 2.5% reduction to that month’s collection amount. 4. CONSULTANT shall initiate follow-up action within 10 days to gather all necessary data when insufficient information exists on initial submission to generate an invoice. Failure to meet this standard with a minimum 95% compliance will result in a 2.5% reduction to that month’s collection amount. III. City’s Responsibilities: 1. CITY shall provide CONSULTANT with patient information on a timely basis and in sufficient detail to support diagnosis and procedure coding. CITY will also provide patient demographic information necessary for accurate patient identification including name, address, social security number, date of birth, and telephone number, whenever possible. Where possible, CITY will obtain and provide CONSULTANT with patient health insurance, auto insurance or other insurance information. 2. CITY shall provide CONSULTANT with necessary documents required by third parties to allow for the electronic filing of claims by CONSULTANT on City’s behalf. 3. CITY shall provide CONSULTANT with its approved billing policies and procedures including municipal fee schedules and collection protocols. CITY will be responsible for engaging any third party collection service for uncollectible accounts after CONSULTANT has exhausted its collection efforts. 4. CITY will process refunds identified by CONSULTANT in a timely manner for account overpayments. 5. CITY will cooperate with CONSULTANT in all matters to ensure proper compliance with laws and regulations. DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 10 SCHEDULE OF PERFORMANCE (All work shall be performed as in accordance with EXHIBIT “A” Scope of services) DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 11 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: Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $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: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 12 EXHIBIT “C-1” SCHEDULE OF RATES Scope Labor Category Fee All work related to complete delivery of the identified services as specified in EXHIBIT “A” Scope of Services. 2.85% of Net Collections* Optional: For Notice of Privacy Practices the cost is $1.50 per NPP. For lockbox services, the cost is an additional .3%. *Net collections is defined as total cash collections, less refunds. The price bid herein shall include all expenses of billing and collection including, but not limited to, stationery, forms, envelopes, postage, and phone facilities. Credit card fees are the responsibility of Palo Alto. DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 13 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: 9A46606C-5452-4B97-A5B5-A78C00D3758B Professional Services Rev. April 27, 2016 14 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: 9A46606C-5452-4B97-A5B5-A78C00D3758B City of Palo Alto (ID # 8235) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: RWQCP Installation and Supply of Anthracite and Sand for the Dual Media Filter Project Title: Approval of Contract No. C17168057 with Carbon Activated Corporation in the Total Amount of $105,809 for the Installation and Supply of Anthracite and Sand for the Dual Media Filter Project at the Regional Water Quality Control Plant, and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed $9,619 in Total Value From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or his designee to execute the contract with Carbon Activated Corporation (Attachment A) in an amount not to exceed $96,190 for the installation and supply of anthracite and sand in the Dual Media Filters at the Regional Water Quality Control Plant; and 2. Approve and authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Carbon Activated Corporation for related additional, but unforeseen work that may develop during the project, the total value of which shall not exceed $9,619. Background The filters were put into operation in 1980 for the final polishing and filtration of wastewater prior to discharge. The filters consist of four layers of gravel and two layers of filter media (sand and anthracite). Filters are routinely inspected; supplemental media is added as needed due to media deterioration as well as City of Palo Alto Page 2 media loss. A complete media and gravel change-out was performed in 2003. A recent filter media inspection indicated loss of anthracite and sand depths, consistent with recent decreased filter run times. This project is not a complete change-out of media but will top off existing media to restore all 12 filters to design specification depths for anthracite and sand. Discussion The work to be performed under this contract is to add media to the Dual Media Filters (DMF) at the Regional Water Quality Control Plant (RWQCP). This project is part of ongoing operation and maintenance of the RWQCP. Bid Process On May 4, 2017, the City advertised a notice requesting quotations for the Installation and Supply of Anthracite and Sand in the Dual Media Filter project. The bidding period was 20 days. On May 23, 2017, bids were received from two qualified contractors as presented in the bid summary (Attachment B): Carbon Activated Corporation (CAC) at $96,190 and ERS Industrial Services at $107,975.63. Summary of Bid Process Bid Name/Number DMF Media Addition/RFQ168057 Proposed Length of Project 40 days Number of Bid Packages downloaded by Contractors 7 Number of Bid Packages downloaded by Builder’s Exchanges 6 Number of vendors notified through City’s eProcurement system 36 Total Days to Respond to Bid 20 Pre-Bid Meeting Yes (Mandatory) Number of Company Attendees at Pre-Bid Meeting 3 Number of Bids Received: 2 Range of Proposal Amounts From $96,190 to $107,975.63 City of Palo Alto Page 3 Staff has reviewed all bids submitted and recommends the bid of $96,190 submitted by CAC be accepted and CAC be declared the lowest responsible bidder. The bid is 4% below the engineer's estimate of $100,000 and within the expected level of estimating accuracy. The contingency amount of $9,619, which equals ten percent of the total contract, is requested for related additional, but unforeseen work that may develop during the project. Staff confirmed with the Contractor's State License Board the contractor has an active license on file. Timeline The work is planned to be completed by August 2017. Resource Impact Funding for this contract is included in the FY 2018 Wastewater Treatment Enterprise Fund Operating Budget Cost Center 50060110 G/L 31990. 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 (CEQA) pursuant to CEQA Guidelines Section 15301(b), which includes maintenance of publicly-owned wastewater facilities involving negligible or no expansion of an existing use. Attachments: Attachment A: Contract C17168057 Carbon Activated Attachment B Bid Summary City of Palo Alto General Services Agreement 1 Rev. February 8, 2017 CITY OF PALO ALTO CONTRACT NO. C17168057 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the 27th day of June, 2017, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CARBON ACTIVATED CORPORATION, a California corporation, located at 2250 S. Central Avenue, Compton, Ca 90220, Telephone Number: 310-885-4555 (“CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree as follows: 1. SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”) described in the Scope of Services, attached at Exhibit A. 2. EXHIBITS. The following exhibits are attached to and made a part of this Agreement: “A” - Scope of Services “A-1” – On-Call Task Order (Optional) “B” - Schedule of Performance “C” – Schedule of Fees “D” - Insurance Requirements “E” - Performance and/or Payment Bond “F” - Liquidated Damages (Optional) CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED. 3. TERM. The term of this Agreement is from June 27, 2017 to September 5, 2017 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. 5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not-to-exceed compensation for the full performance of the Services and reimbursable expenses, if any: City of Palo Alto General Services Agreement 2 Rev. February 8, 2017 The total maximum lump sum compensation of dollars ($ ); OR The sum of dollars ($ ) per hour, not to exceed a total maximum compensation amount of dollars ($ ); OR A sum calculated in accordance with the fee schedule set forth at Exhibit C, not to exceed a total maximum compensation amount of Ninety-Six Thousand One Hundred Ninety Dollars ($96,190). CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY. CITY has set aside the sum of Nine Thousand Six Hundred Nineteen dollars ($9,619) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR’s proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. 6. COMPENSATION DURING ADDITIONAL TERMS. CONTRACTOR’S compensation rates for each additional term shall be the same as the original term; OR CONTRACTOR’s compensation rates shall be adjusted effective on the commencement of each Additional Term. The lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in section 5 above, shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco-Oakland- San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable Additional Term, which shall be compared with the CPI published most immediately City of Palo Alto General Services Agreement 3 Rev. February 8, 2017 preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRACTOR’s compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term. Any adjustment to CONTRACTOR’s compensation rates shall be reflected in a written amendment to this Agreement. 7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 7, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. Public Contract Code Section 9204 mandates certain claims procedures for Public Works Projects, which are set forth in “Appendix A Claims for Public Contract Code Section 9204 Public Works Projects”. This project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Appendix A, attached hereto and incorporated herein. OR This project is not a 9204 Public Works Project. 8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project Manager is: Carlton Black, Dept.: Public Works, Regional Water Quality Control Plant, 2501 Embarcadero Way, Palo Alto, Ca 94303, Telephone: 650-329-2598. 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 7 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 City of Palo Alto General Services Agreement 4 Rev. February 8, 2017 experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR’s representations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safety regulations. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR’s business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONTRACTOR shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR’s performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage City of Palo Alto General Services Agreement 5 Rev. February 8, 2017 to the CITY occurring in connection with CONTRACTOR’s performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR’s request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. J. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR’s work is completed in a satisfactory manner and complies with the provisions of this Agreement. K. CITY’S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of final payment, CONTRACTOR’s records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. 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 City of Palo Alto General Services Agreement 6 Rev. February 8, 2017 A-:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to the Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement. O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section N relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney’s fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. CONTRACTOR’s obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Agreement. 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 City of Palo Alto General Services Agreement 7 Rev. February 8, 2017 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 liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. R. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination is for cause, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to CONTRACTOR’s failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of CITY. No amendments, changes or variations of any kind are authorized without the written consent of CITY. T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this 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, City of Palo Alto General Services Agreement 8 Rev. February 8, 2017 which could conflict with the faithful performance of this Contract. CONTRACTOR agrees to advise CITY if any conflict arises. U. GOVERNING LAW. This contract shall be governed and interpreted by the laws of the State of California. V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this 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 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 City of Palo Alto General Services Agreement 9 Rev. February 8, 2017 Division’s office. Reusable/returnable pallets shall be taken back by CONTRCATOR, at no additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Z. PREVAILING WAGES This Project is not subject to prevailing wages. Contractor is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the contract is not a public works contract, if 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 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 adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. AA. DIR REGISTRATION. In regard to any public work construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONTRACTOR without proof that 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 of Palo Alto General Services Agreement 10 Rev. February 8, 2017 CITY provides notice to CONTRACTOR of the requirements of California Labor Code section 1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the 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 shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY’s request. [For state- and federally-funded projects] CITY requests CONTRACTOR and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. If the certified payroll records are not produced to the project manager within the 10-day period, then CONTRACTOR and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or City of Palo Alto General Services Agreement 11 Rev. February 8, 2017 portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONTRACTOR. Inform the project manager of the location of CONTRACTOR’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the case of any conflict between the terms of this Agreement and the exhibits hereto or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONTRACTOR’s proposal, the exhibits shall control. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO Carbon Activated Corporation ______________________________ By________________________________________ City Manager or Designee (Required on contracts $85,000 and over) Name _____________________________________ Title_______________________________________ Telephone: _______________________________ Approved as to form: ___________________________ City Attorney or Designee City of Palo Alto General Services Agreement 12 Rev. February 8, 2017 EXHIBIT A SCOPE OF SERVICES FILTER MEDIA PART 1 – GENERAL 1.1 REFERENCES A. ANSI/AWWA B100, Standard for Granular Filter Material, latest revision 1.2 SUBMITTALS Contractor shall submit the following prior to installation: A. Description of Materials, Physical Characteristics, Chemical Composition B. Sieve Analysis, acid solubility, specific gravity, Mohs’ scale, effective size, and uniformity coefficient. C. An affidavit of compliance to American Water Works Association (AWWA) B-100 stating that the filter material provided complies with the applicable provisions of AWWA B-100. 1.3 EXISTING MEDIA A. The Palo Alto Regional Water Quality Control Plant (“Plant”) operates dual media filters to filter secondary effluent. The media consists of 24-inches of anthracite coal over 12-inches of sand. A 12-inch deep gravel support system and a Wheeler underdrain supports the media. 1.4 SCOPE OF WORK A. This project involves the supply and installation of approved anthracite and sand in the 12 filters of the Palo Alto Regional Water Quality Control Plant dual media filter facility at 2501 Embarcadero Way, Palo Alto, CA 94303, to replenish lost media. Contractor shall supply and install the approved anthracite and sand as further specified herein. B. Contractor shall perform the installation with adequate hoisting equipment and qualified workers to unload and move media into the filters in close cooperation with Plant operations staff. City of Palo Alto General Services Agreement 13 Rev. February 8, 2017 PART 2 – PRODUCTS 2.1 MATERIALS – DUAL MEDIA A. Dual media consists of two filter media. The bottom media shall be sand. The top media shall be anthracite coal. B. Contractor shall furnish and install the filter media as specified. C. The following table shows estimated depths to bring media to proper level. Anthracite Coal Calcs 24" normal depth, 50 pounds / cubic foot bulk density Filter # Depth, " Loss, " Volume, ft3 # needed 2250 # sacks needed 1 19 -5 188 9,375 4.2 2 16 -8 300 15,000 6.7 3 17 -7 263 13,125 5.8 4 17 -7 263 13,125 5.8 5 17 -7 263 13,125 5.8 6 16 -8 300 15,000 6.7 7 3 -21 788 39,375 17.5 8 9 -15 563 28,125 12.5 9 17 -7 263 13,125 5.8 10 16 -8 300 15,000 6.7 11 19 -5 188 9,375 4.2 12 12 -12 450 22,500 10.0 avg 14.8 -9.2 4125 206,250 92 To be installed max -21 On Hand 9 min -5 Needed 83 Spare 9 Future use Ordered 92 To be delivered Sand Calcs 12" normal depth, 100 pounds / cubic foot bulk density Filter # Depth, " Loss, " Volume, ft3 # needed 4000 # sacks needed 1 9 -3 113 11,250 2.8 2 10 -2 75 7,500 1.9 3 9 -3 113 11,250 2.8 4 10 -2 75 7,500 1.9 5 10 -2 75 7,500 1.9 6 9 -3 113 11,250 2.8 City of Palo Alto General Services Agreement 14 Rev. February 8, 2017 7 9 -3 113 11,250 2.8 8 4 -8 300 30,000 7.5 9 8 -4 150 15,000 3.8 10 9 -3 113 11,250 2.8 11 9 -3 113 11,250 2.8 12 10 -2 75 7,500 1.9 avg 8.8 -3.2 1425 142,500 36 To be installed max -8 Order 36 To be delivered min -2 2.2 MATERIALS – SAND A. Each filter shall be provided with sand to bring sand depth to 12 inches. B. Filter sand shall be composed of hard, durable silica grains, either rounded or angular in shape. Not more than one percent (1%) by weight shall be flat or micaceous, and the sand shall be free from dust and organic matter. The sand shall be ninety five percent (95%) insoluble in a twenty-four hour bath in warm hydrochloric acid. The sand shall be uniformly graded with an effective size not greater than 0.6 mm or less than 0.4 mm. The uniformity coefficient shall not be greater than 1.50. 2.3 MATERIALS – ANTHRACITE COAL A. Each filter shall be provided with anthracite to bring anthracite depth to 24 inches. B. The anthracite shall be obtained from an approved source specialized in filter media. C. Filter anthracite shall consist of hard, durable anthracite coal particles of various sizes. Blending of non-anthracite material to meet any portion of this standard is not acceptable. D. The anthracite shall be visibly free of shale, clay, and other extraneous debris. E. The anthracite shall have a Mohs’ scale hardness greater than between 3.0 and 3.75, a specific gravity greater than 1.55, and an acid solubility less than 5%. F. The coal shall be uniformly graded with an effective size (ES) not less than 1.2 mm or greater than 1.4 mm. G. The uniformity coefficient (UC) shall be less than 1.50. City of Palo Alto General Services Agreement 15 Rev. February 8, 2017 PART 3 – EXECUTION 3.1 DELIVERY, STORAGE AND HANDLING A. All filter materials shall be protected during shipment. B. To avoid contamination, bulk shipment is prohibited. Semi-bulk containers, or sacks, as defined in AWWA B-100, are required. All semi-bulk containers shall be marked per AWWA B-100. C. Contractor shall coordinate unloading of the filter material shipment. Contractor shall arrange, in advance with the City’s project manager, a suitable date, time, and delivery details prior to bringing the media to the Plant site. 3.2 SAMPLING AND TESTING A. Filter media sampling shall be performed per AWWA B-100 Section 5. Section 5.2 (job site sampling) methods shall be used. B. Testing shall be performed per AWWA B-100 Section 5.3 (testing protocols) to ensure that the filter material meets the requirements of AWWA B-100 and this specification. C. Testing shall be by an independent laboratory. D. If any filter material does not meet the applicable requirements of AWWA B-100 or this specification, Contractor shall remove it from the site. Contractor shall then supply new material meeting the specifications. 3.3 INSTALLATION A. Contractor shall have and maintain a Class A contractor’s license. B. City staff will not coordinate or perform truck unloading operations. Contractor shall be responsible for coordinating media supply, delivery truck unloading, media handling, media loading into filters, and disposal of leftover sacks and pallets to the satisfaction of the City’s Project Manager. Contractor shall store spare sacks of coal per City’s Project Manager’s instructions. C. Contractor shall install media per supplier’s instructions and AWWA B-100 latest edition. City of Palo Alto General Services Agreement 16 Rev. February 8, 2017 D. After installation of the coal and sand, Contractor shall backwash the media, skim the fines from the surface (if present), and carefully grade the surface to the correct level. E. Contractor shall consult and follow the instructions from the media supplier’s technical representative. Contractor shall follow installation procedures for all filters. Unacceptable work shall be corrected immediately by the Contractor at the Contractor’s expense. F. Contractor shall provide all equipment and work for media installation as well as confined space entry, as needed. G. Contractor shall protect filter equipment during work including air wash system, troughs, valves, chemical systems nearby, and so forth. H. Contractor shall provide dust control measures, as needed. END OF SECTION City of Palo Alto General Services Agreement 17 Rev. February 8, 2017 EXHIBIT B SCHEDULE OF PERFORMANCE Completion of work shall be within forty calendar days (40) after the commencement date specified in City’s Notice to Proceed. City of Palo Alto General Services Agreement 18 Rev. February 8, 2017 EXHIBIT C SCHEDULE OF FEES CONTRACTOR shall perform the tasks as described and budgeted below. CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for the Services including reimbursable expenses, does not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY. The ACORD name and logo are registered marks of ACORD CERTIFICATE HOLDER © 1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) AUTHORIZED REPRESENTATIVE CANCELLATION DATE (MM/DD/YYYY)CERTIFICATE OF LIABILITY INSURANCE LOCJECTPRO-POLICY GEN'L AGGREGATE LIMIT APPLIES PER: OCCURCLAIMS-MADE COMMERCIAL GENERAL LIABILITY PREMISES (Ea occurrence)$DAMAGE TO RENTED EACH OCCURRENCE $ MED EXP (Any one person)$ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ PRODUCTS - COMP/OP AGG $ $RETENTIONDED CLAIMS-MADE OCCUR $ AGGREGATE $ EACH OCCURRENCE $UMBRELLA LIAB EXCESS LIAB DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) INSRLTR TYPE OF INSURANCE POLICY NUMBER POLICY EFF(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)LIMITS PERSTATUTE OTH-ER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE E.L. DISEASE - POLICY LIMIT $ $ $ ANY PROPRIETOR/PARTNER/EXECUTIVE If yes, describe underDESCRIPTION OF OPERATIONS below (Mandatory in NH)OFFICER/MEMBER EXCLUDED? WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N AUTOMOBILE LIABILITY ANY AUTO ALL OWNED SCHEDULED HIRED AUTOS NON-OWNEDAUTOSAUTOS AUTOS COMBINED SINGLE LIMIT BODILY INJURY (Per person) BODILY INJURY (Per accident) PROPERTY DAMAGE $ $ $ $ THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSDADDL WVDSUBR N / A $ $ (Ea accident) (Per accident) OTHER: THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: INSURED PHONE(A/C, No, Ext): PRODUCER ADDRESS:E-MAIL FAX(A/C, No): CONTACTNAME: NAIC # INSURER A : INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : INSURER(S) AFFORDING COVERAGE SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 6/7/2017 Newport Beach-Alliant Insurance Services, Inc.1301 Dove St Ste 200Newport Beach CA 92660 Carbon Activated Corporation2250 S Central Ave, 250 E. Manville St.& 172 E. Manville St.Compton CA 90220 Zurich American Insurance Comp Argonaut Insurance Company 16535 19801 Amanda Kristedja 949-660-5958 akristedja@alliant.com CARBACT-01 936727424 B PACE306221 10/31/2016 10/31/2017 Deductible 1,000,000 300,000 5,000 1,000,000 2,000,000 2,000,000 5,000 X X X A X BAP018752801 10/31/2016 10/31/2017 1,000,000 B X X EXC306222 10/31/2016 10/31/2017 2,000,000 2,000,000 B Contractors Pollution Liability PACE306221 10/31/2016 10/31/2017 Each Claim 1,000,000 City of Palo Alto, its council, members, officers, agents and employees are named as Additional Insured per attached endorsements onPrimary and Non-Contributory basis. City of Palo Alto2501 Embarcadero WayPalo Alto CA 94303 Policy #PACE306221 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS-COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: EnviroPACE Insurance Policy SCHEDULE Name Of Additional Insured Person(s) Location And Description Of Completed Or Organization(s) Operations As required by written contract As required by written contract A. Section XX. WHO IS AN INSURED, Coverage Part 1 and Part 2 is amended to include as an additional insured the person(s) or organization(s) shown in the SCHEDULE above, but only with respect to liability for bodily injury, property damage, environmental damage, or cleanup costs caused, in whole or in part, by your work at the location designated and described in the SCHEDULE of th is endorsement performed for that additional insured and included in the products-completed operations hazard. However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law; and 2. If coverage provided to the add itional insured is required by a contract or agreement, the insurance afforded to such additional insured wi ll not be broader than that which you are requ ired by the contract or agreement to provide for such additional insured. B. With respect to the insurance afforded to these additional insureds, the following is added to section XXI. LIMITS OF LIABILITY AND DEDUCTIBLE: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Liability shown in the Declarations; wh ichever is less. Th is endorsement shall not increase the applicable Limits of Liability shown in the Declarations. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. EPACE100-0814 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 Policy #PACE306221 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS -SCHEDULED PERSON OR ORGANIZATION Th is endorsement modifies insurance provided under the following: EnviroPACE Insurance Policy SCHEDULE Name Of Additional Insured Person(s) Or On::aanization(s) Location(s) Of Covered Operations As required by written contract As required by written contract A. Section XX. WHO IS AN INSURED, Coverage Part 1 and Part 2 is amended to include as an additional insured the person(s) or organization(s) shown in the SCHEDULE above, but only with respect to liability for bodily injury, property damage, personal and advertising injury, environmental damage, or cleanup costs caused, in whole or in part, by: 1. Your acts or omissions; or 2. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured(s) at the location(s) designated above. However: 1. The insurance afforded to such additional insured only applies to the extent permitted by law; and 2. If coverage provided to the add itional insured is required by a contract or agreement, the insurance afforded to such additional insured wi ll not be broader than that which you are requ ired by the contract or agreement to provide for such additional insured. B. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: Th is insurance does not apply to bodily injury or property damage occurring after: 1. All work, includ ing materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or 2. That portion of your work out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. EPACE101-0814 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 2 C. With respect to the insurance afforded to these additional insureds, the following is added to section XXI. LIMITS OF LIABILITY AND DEDUCTIBLE: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Liability shown in the Declarations; wh ichever is less. Th is endorsement shall not increase the applicable Limits of Liability shown in the Declarations. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. EPACE101-0814 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 2 Policy #PACE306221 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NON-CONTRIBUTORY - OTHER INSURANCE CONDITION This endorsement modifies insurance provided under the following: EnviroPACE Insurance Policy SCHEDULE Person(s) or Organization(s): As required by written contract Section XXIII. CONDITIONS, 14. Other Insurance is amended by the addition of the following: This insurance is primary to and will not seek contribution from any other insurance available to the person(s) or organization(s) listed in the SCHEDULE above provided that: 1. The person(s) or organization(s) listed in the SCHEDULE is a Named Insured under such other insurance; and 2. You have agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to the person(s) or organization(s) listed in the SCHEDULE. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. EPACE107-0714 Includes copyrighted material of Insurance Services Office, Inc., Page 1 of 1 with its permission. Policy #PACE306221 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDED GENERAL AGGREGATE ENDORSEMENT This endorsement modifies insurance provided under the following: EnviroPACE Insurance Policy A. Section XXI. LIMITS OF LIABILITY AND DEDUCTIBLE, Paragraphs 1., 2. and 3. are deleted in their entirety and replaced with the following: XXI. LIMITS OF LIABILITY AND DEDUCTIBLE Regardless of the number of claims, suits, claimants or insureds, the following limits of liability apply: 1. Limits Applicable to Part 1 Coverages, Part 2 Coverages and Coverage 3 a. General Aggregate Limit and General Aggregate Cap The General Aggregate Limit set forth in Item 3 of the Declarations is the most we will pay for all loss under all Part 1 Coverages, Part 2 Coverages and Coverage 3 except: (i) damages because of bodily injury, property damage or environmental damage included in the products-completed operations hazard, and (ii) crisis management costs that resu lt from a crisis management event arising directly from your product. b. Subject to Paragraph 1.c. below, the General Aggregate Limit applies separately to: (i) loss covered under Coverages 1 A and 1 E arising from occurrences at any one location that you own or rent; and (ii) loss covered under Coverages 1 A and 1 E arising from your ongoing operations at any one job site. c. Regardless of the number of locations or job sites, the General Aggregate Cap set forth in Item 3 of the Declarations is the most we will pay for all loss under all Part 1 Coverages except: (i) damages because of bodily injury, property damage or environmental damage included in the products-completed operations hazard, and (ii) crisis management costs that result from a crisis management event arising directly from your product. d. Products -Completed Operations Aggregate Limit The Products-Completed Operations Aggregate Limit set forth in Item 3 of the Declarations is the most we will pay for all: (i) damages under Coverages 1A and 1 D because of bodily injury, property damage or environmental damage included in the products-completed operations hazard, and (ii) crisis management costs that result from a crisis management event arising directly from your product. e. Each Occurrence Limit Subject to Paragraph 1.a. or 1.d. above, wh ichever applies, the Each Occurrence Limit set forth in Item 3 of the Declarations is the most we will pay for all loss under Coverages 1 A, 1 C, 1 D and 1 E arising out of the same, related, continuous or repeated occurrence(s) or pollution condition(s). f. Personal and Advertising Injury Limit Subject to Paragraph 1.a. above, the Personal and Advertising Injury Limit set forth in Item 3 of the Declarations is the most we will pay for all loss under Coverage 1 B sustained by any one person or organization. EPACE110-0714 Page 1 of 2 g. Employee Benefits Administration Limit Subject to Paragraph 1.a. above, the Employee Benefits Administration Limit of Liability set forth in Item 3 of the Declarations is the most we will pay under Coverage 1 F for all loss sustained by any one employee, including loss sustained by such employee's dependents and beneficiaries, arising out of the same, related, continuous or repeated wrongful act(s). However, the amount paid under this Policy shall not exceed, and will be subject to, the limits and restrictions that apply to the payment of benefits in any plan included in the employee benefits program. h. Crisis Management Costs Limit -Coverage 1 G Subject to Paragraph 1.a. or 1.d. above, whichever applies, the Crisis Management Costs Limit set forth in Item 3 of the Declarations is the most we will pay for all crisis management costs under Coverage 1 G. i. Damage to Premises Rented to You Limit Subject to Paragraph 1.e. above, the Damage to Premises Rented to You Limit set forth in Item 3 of the Declarations is the most we will pay under Coverage 1A for all loss because of property damage to any one premises, wh ile rented to you, or in the case of damage by fire while rented to you or temporarily occupied by you with permission of the owner. j. Medical Expense Limit Subject to Paragraph 1.e. above, the Medical Expense Limit set forth in Item 3 of the Declarations is the most we will pay under Coverage 1C for all loss because of bodily injury sustained by any one person. k. Part 2 Coverages -Special Pollution Coverages -Individual Coverage Limits Subject to Paragraph 1.a. above, the applicable Coverage Limit set forth in Item 3 of the Declarations is the most we will pay for all loss under the appl icable Part 2 -Special Pollution Coverage. I. Part 2 Coverages -Special Pollution Coverages -Each Pollution Condition Limit Subject to Paragraphs 1.a. and 1.k. above, the Each Pollution Condition Limit set forth in Item 3 of the Declarations is the most we will pay for all loss arising out of the same, related, continuous or repeated pollution condition(s). m. Coverage 3 -Professional Liability -Each Wrongful Act Limit Subject to Paragraph 1.a. above, the Each Wrongful Act Limit set forth in Item 3 of the Declarations is the most we will pay under Coverage 3 for all loss arising out of the same, related, continuous or repeated wrongful act(s). B. All references in the Declarations and the Pol icy to Pollution Liability Aggregate Limit and Professional Liability Aggregate Limit are deleted. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. EPACE110-0714 Page 2 of 2 Policy #PACE306221 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAIVER OF SUBROGATION FOR SPECIFIED PERSON, ENTITY OR ORGANIZATION This endorsement modifies insurance provided under the following: EnviroPACE Insurance Policy SCHEDULE Name Of Person(s), Entity(ies) or Organization(s): As required by written contract Section XXIII. CONDITIONS, 17. Subrogation is amended by the addition of the following: In the event of any payments made pursuant to this Pol icy, we shall be subrogated to any insured's rights of recovery against any person, entity or organization. The insured shall execute and deliver instruments and papers and do whatever is necessary to secure and perfect such rights. No insured shall do anything to prejudice such rights. Any recovery obtained as a result of subrogation, after such expenses incurred in the subrogation proceedings are deducted by us, shal l accrue first to the insured to the extent of any payments in excess of the Limit of Liability; then us to the extent of any payments made under th is Pol icy; and then to the insured to the extent of its Deductible. However, solely with respect to Coverage Part 1 or Coverage Part 2, if the insured has waived rights of recovery against the person(s), entity(ies) or organization(s) shown in the SCHEDULE above prior to a loss or claim, we waive any right to recovery we may have under the Policy against such person(s), entity(ies) or organization(s). ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. EPACE113-0714 Page 1 of 1 Policy #PACE306221 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED-STATE OR GOVERNMENTAL AGENCY OR SUBDIVISION OR POLITICAL SUBDIVISION -PERMITS OR AUTHORIZATIONS Th is endorsement modifies insurance provided under the following: EnviroPACE Insurance Policy SCHEDULE State Or Governmental Agency Or Subdivision Or Political Subdivision: As required by written contract Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section XX. WHO IS AN INSURED, Coverage Part 1 is amended to include as an insured any state or governmental agency or subd ivision or political subdivision shown in the SCHEDULE above, subject to the following provisions: 1. This insurance applies on ly with respect to operations performed by you or on your behalf for which the state or governmental agency or subdivision or political subdivision has issued a permit or authorization. However: a. The insurance afforded to such additional insured only applies to the extent permitted by law; and b. If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that wh ich you are required by the contract or agreement to provide for such additional insured. 2. This insurance does not apply to: a. Bodily injury, property damage or personal and advertising injury arising out of operations performed for the federal government, state or municipality; or b. Bodily injury or property damage included within the products-completed operations hazard. B. With respect to the insurance afforded to these additional insureds, the following is added to section XXI. LIMITS OF LIABILITY AND DEDUCTIBLE: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance: 1. Requ ired by the contract or agreement; or 2. Available under the applicable Limits of Liability shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits of Liability shown in the Declarations. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. EPACE181-0216 Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 1 Policy #PACE306221 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -VENDORS - DESIGNATED ENTITY This endorsement modifies insurance provided under the following: EnviroPACE Insurance Policy SCHEDULE Name Of Additional Insured Person(s) Or Organization(s) (Vendor) Your Products As required by written contract As required by written contract A. Section XX. WHO IS AN INSURED, Coverage Part 1 and Part 2 is amended to include as an additional insured any person(s) or organization(s) (referred to throughout th is endorsement as vendor) shown in the SCHEDULE above, but only with respect to bodily injury, property damage or environmental damage arising out of your products shown in the SCHEDULE which are distributed or sold in the regular course of the vendor's business. However: 1. The insurance afforded to such vendor only applies to the extent permitted by law; and 2. If coverage provided to the vendor is required by a contract or agreement, the insurance afforded to such vendor will not be broader than that wh ich you are required by the contract or agreement to provide for such vendor. B. With respect to the insurance afforded to these vendors, the following additional exclusions apply: 1. The insurance afforded the vendor does not apply to: a. Bodily injury, property damage or environmental damage for wh ich the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; b. Any express warranty unauthorized by you; c. Any physical or chemical change in the product made intentionally by the vendor; d. Repackaging, except when unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container; e. Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products; f. Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; EPACE123-0714 Includes copyrighted material of Insurance Services Office, Inc., Page 1 of 2 with its permission. g. Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or h. Bodily injury, property damage, or environmental damage arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to: (1) The exceptions contained in Subparagraphs d. or f.; or (2) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. 2. This insurance does not apply to any insured person or organization, from whom you have acqu ired such products, or any ingredient, part or container, entering into, accompanying or containing such products. C. With respect to the insurance afforded to these vendors, the following is added to section XXI. - LIMITS OF LIABILITY AND DEDUCTIBLE: If coverage provided to the vendor is requ ired by a contract or agreement, the most we will pay on behalf of the vendor is the amount of insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Liability shown in the Declarations; wh ichever is less. Th is endorsement shall not increase the applicable Limits of Liability shown in the Declarations. ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED. EPACE123-0714 Includes copyrighted material of Insurance Services Office, Inc., Page 2 of 2 with its permission. POLICY NUMBER: BAP018752801 COMMERCIAL AUTO CA 20481013 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DESIGNATED INSURED FOR COVERED AUTOS LIABILITY COVERAGE This endorsement modifies insurance provided under the following: AUTO DEALERS COVERAGE FORM BUSINESS AUTO COVERAGE FORM MOTOR CARRIER COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by this endorsement. This endorsement identifies person(s) or organization(s) who are i nsureds" for Covered Autos Liability Coverage under the Who Is An Insured provision of the Coverage Form. This endorsement does not alter coverage provided In the Coverage Form. This endorsement changes the policy effective on the inception date of the policy unless another date is indicated below. Named Insured: Carbon Activated Corporation Endorsement Effective Date: 101112016 -101112017 SCHEDULE Name Of Person(s) Or Organization(s): As required per written contract. Information reouired to comolete this Schedule, if not shown above. will be shown in the Declarations. Each person or organization shown in the Schedule is an "insured" for Covered Autos Liability Coverage, but only to the extent that person or organization qualifies as an "insured" under the Who Is An Insured provision contained in Paragraph A.1. of Section II - Covered Autos Liability Coverage in the Business Auto and Motor Carrier Coverage Forms and Paragraph D.2. of Section I -Covered Autos Coverages of the Auto Dealers Coverage Form. CA 20481013 <C> Insurance Services Office, Inc., 2011 Page 1 of 1 Wolters Kluwer Financial Services I Uniform Forms™ Policy #BAP018752801 Coverage Extension Endorsement ZURICH Policy No Elf. Date of Pol. Exp, Date of Pol. Eff. Date of End. Producer No, Add'I. Prem Return Prem THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the: Business Auto Coverage Fonn Motor Carrier Coverage Form A. Amended Who Is An Insured 1. The foUowing is added to the Who Is An Insured Provision in Section II-Covered Autos Liability Coverage: The fonowing are also '1nsureds": I' a. Any "employee" of yours is an "insured" while using a covered "auto· you don't own, hire or borrow for acts performed within the scope of employment by you. Any "employee" of yours is also an "insured" while operating an "auto" hired or rented under a contract or agreement in an "employee's" name, with your permission, while performing duties related to the conduct of your business. b. Anyone volunteering services to you is an "insured" while using a covered "auto" you don't own, hire or borrow to transport your clients or other persons in activities necessary to your business. c. Anyone else who furnishes an "auto· referenced in Paragraphs A.1.a. and A.1.b. in this endorsement. d. Where and to the extent permitted by law, any person(s) or organization(s) where required by written contract or written agreement with you executed prior to any "accident", Including those person(s) or organization(s) directing your work pursuant to such written contract or written agreement with you, provided the "accident" arises out of operations governed by such contract or agreement and only up to the limits required in the written contract or written agreement, or the Limits of Insurance shown in the Declarations, whichever is less. 2. The following is added to the Other Insurance Condition in the Business Auto Coverage Form and the Other Insurance -Primary and Excess Insurance Provisions Condition in the Motor Carrier Coveraae Form: Coverage for any person(s) or organization(s), where required by written contract or written agreement with you executed prior to any "accident", will apply on a primary and non-contributory basis and any insurance maintained by the additional "insured" will apply on an excess basis. However, in no event will this coverage extend beyond the terms and conditions of the Coverage Form. B. Amendment -Supplementary Payments Paragraphs a.(2) and a.(4) of the Coverage Extensions Provision in Section II -Covered Autos Liability Coverage are replaced by the following: (2) Up to $5,000 for the cost of bail bonds (including bonds for related traffic law violations) required because of an "accident" we cover. We do not have to furnish these bonds. (4) All reasonable expenses incurred by the "insured• at our request. including actual loss of earnings up to $500 a day because of time off from work. Includes copyrighted material of Insurance Services Office. Inc •• with its pemusS1on. U·CA-424-F CW (04/14) Page 1 ors Policy #BAP018752801 agent, servant or employee of the "insured" to notify us of any "accident", claim, "suit" or "loss" shall not invalidate the insurance afforded by this policy. Include, as soon as practicable: (1) How, when and where the "accident" or "loss" occurred and if a claim is made or "suit" is brought, written notice of the claim or "suit" including, but not limited to, the date and details of such claim or "suit"; (2) The "insured's" name and address; and (3) To the extent possible, the names and addresses of any injured persons and witnesses. If you report an "accident", claim, "suit" or "loss" to another insurer when you should have reported to us, your failure to report to us will not be seen as a violation of these amended duties provided you give us notice as soon as practicable after the fact of the delay becomes known to you. P. Waiver of Transfer Of Rights Of Recovery Against Others To Us The foRowfng is added to the Transfer Of Rights Of Recovery Against Others To Us Condition: This Condition does not apply to the extent required of you by a written contract, executed prior to any "accident" or ioss", provided that the "accident" or "loss" arises out of operations contemplated by such contract. This waiver only applies to the person or organization designated in the contract. Q. Employee Hired Autos -Physical Damage Paragraph b. of the Other Insurance Condition in the Business Auto Coverage Form and Paragraph f. of the Other Insurance -Primary and Excess Insurance Provisions Condition in the Motor Carrier Coverage Form are replaced by the following: For Hired Auto Physical Damage Coverage, the following are deemed to be covered "autos" you own: (1) Any covered "auto" you lease, hire, rent or borrow; and (2) Any covered "auto" hired or rented under a written contract or written agreement entered into by an "employee" or elected or appointed official with your permission while being operated within the course and scope of that "employee's" employment by you or that elected or appointed official's duties as respect their obligations to you. However, any "auto" that is leased, hired, rented or borrowed with a driver is not a covered "auto". R. Unintentional Failure to Disclose Hazards The following is added to the Concealment, Misrepresentation Or Fraud Condition: However, we will not deny coverage under this Coverage Form if you unintentionally: (1) Fail to disclose any hazards existing at the inception date of this Coverage Form; or (2) Make an error, omission, improper description of "autos" or other misstatement of information. You must notify us as soon as possible after the discovery of any hazards or any other information that was not provided to us prior to the acceptance of this policy. S. Hired Auto -World Wide Coverage Paragraph 7a.(5) of the Policy Period, Coverage Territory Condition Is replaced by the following: (5) Anywhere in the world if a covered "auto" is leased, hired, rented or borrowed for a period of 60 days or less, T. Bodily Injury Redefined The definition of "bodily injury" in the Definitions Section is replaced by the following: "Bodily injury" means bodily injury, sickness or disease, sustained by a person including death or mental anguish. resulting from any of these at any time. Mental anguish means any type of mental or emotional illness or disease. Includes copyrighted material of Insurance Services Office. Inc .. with its pennission. U·CA424·F CW (04/14) Page 5 of 6 City of Palo Alto General Services Agreement 21 Rev. February 8, 2017 EXHIBIT E BONDS [ATTACH BOND FORMS IF BONDS ARE REQUIRED] Appendix for General Services Agmt 1 February 8, 2017 Appendix A: Claims for Public Contract Code Section 9204 Public Works Projects The provisions of this this Appendix are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims related to the Services performed under this Agreement. 1. Claim Definition. “Claim" means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following: (A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City. (B) Payment by the City of money or damages arising from the Services performed by, or on behalf of, the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled. (C) Payment of an amount that is disputed by the City. 2. Claim Process. (A) Timing. Any Claim must be submitted to City in compliance with the requirements of this Appendix no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This time requirement is mandatory; failure to submit a Claim within fourteen (14) days will result in its being deemed waived. (B) Submission. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Appendix, and must include reasonable documentation substantiating the Claim. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Agreement, and a chronology of relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost. Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts. (C) Review. Upon receipt of a Claim in compliance with this Appendix, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time period provided in this paragraph 2. (D) If City Council Approval Required. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion. Appendix for General Services Agmt 2 February 8, 2017 (E) Payment. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. If the City fails to issue a written statement, paragraph 3, below, shall apply. 3. Disputed Claims (A) Meet and Confer. If the Contractor disputes the City's written response, or if the City fails to respond to a Claim submitted pursuant to this Appendix within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. (B) Mediation. Any remaining disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to any other remedies authorized by the Agreement and laws. (i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. (ii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation, if any, under Public Contract Code Section 20104.4 to mediate after litigation has been commenced. 4. City’s Failure to Respond. Failure by the City to respond to a Claim from the Contractor within the time periods described in this Appendix or to otherwise meet the time requirements of this Appendix shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Appendix, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor. 5. Interest. Amounts not paid in a timely manner as required by this section shall bear interest at seven (7) percent per annum. 6. Approved Subcontractor Claims. If an approved subcontractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier Appendix for General Services Agmt 3 February 8, 2017 subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the Claim be presented to the City shall furnish reasonable documentation to support the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. 7. Waiver of Provisions. A waiver of the rights granted by Public Contract Code Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Public Contract Code Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. Attachment B City of Palo Alto, Public Works Department – RWQCP Bid Summary for Installation and Supply of Anthracite and Sand in the Dual Media Filter Project (RFQ 168057) Engineer’s Estimate ERS Industrial Services CAC Quote $100,000 $107,975.63 $96,190 Comment Low Bid City of Palo Alto (ID # 8087) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Approval of Agreement with Media Center Title: Approval of Agreement Number C17168334 Between the City of Palo Alto and the Midpeninsula Community Media Center, Inc. for Cablecasting and Web Streaming Services From July 1, 2017 Through June 30, 2018, in the Amount of $135,000, With two One-year Options to Extend (for a Potential 3 Year Total not to Exceed Amount of $405,000) From: City Manager Lead Department: IT Department Recommendation: Staff recommends that the City Council approve, and authorize the City Manager or his designee to execute: Agreement No. C17168334 between the City of Palo Alto and the Midpeninsula Community Media Center, Inc., for a one-year contract from July 1, 2017 through June 30, 2018, in an amount not to exceed $135,000, with two one-year options to extend (for a potential not to exceed amount of $405,000 for a three-year term), for cablecasting and web streaming services. Background: In 1983, Palo Alto, Menlo Park, East Palo Alto, Atherton and San Mateo and Santa Clara Counties entered into a Joint Powers Agreement (JPA) for the purposes of obtaining cable television service for residents, businesses, and institutions within all or a portion of these jurisdictions. The City of Palo Alto (City) has been given the sole authority to act on behalf of the JPA member communities. Cable franchise holders provide various forms of compensation (e.g., franchise fees; public, education, and government (PEG) fees and channels, etc.) to pay for access to and use of the JPA’s public rights-of-way. The City’s Cable Television Ordinance provides that the City may designate a nonprofit Community Access Organization to operate and administer its PEG facilities, equipment and channels. In 1991, the City Council designated the Mid-Peninsula Access Corporation (MPAC) as its Community Access Organization. In 2000, as part of the sale of the Cable Co-op system to City of Palo Alto Page 2 AT&T, a new nonprofit, the Silicon Valley Community Communications (SVCC) was formed. AT&T made a charitable donation of $17 million to SVCC. In August 2001, MPAC merged with SVCC and was renamed the Midpeninsula Community Media Center, Inc. (Media Center). Since that time, the Media Center has served as the Community Access Organization for the JPA. In this role, the Media Center administers the JPA’s seven local PEG channels, broadcasts local community programs, offers video production classes and workshops to community members, and provides local election coverage. In 2015, the Media Center produced a total of 647 local programs and provided gavel-to-gavel coverage of 379 live government meetings. Palo Alto forwards the PEG fees it receives from franchise holders (Comcast and AT&T) to the Media Center (amounting to $329,813 in 2016) for capital expenditures to support PEG access. The AT&T donation was used by the Media Center to purchase a state-of-the-art facility (studio, video production and training facility) located at 900 San Antonio Road in Palo Alto. The donation monies are also used, on an ongoing basis, to fund a portion of the Media Center’s annual operating expenditures. Since the Media Center owns its video production facility and has ongoing income from the AT&T donation to supplement its operating expenditures, there is a significant barrier to entry for any other provider of this service. Bringing in a new provider would require an extensive and complex implementation process involving the City’s IT department, the City’s cable carrier and the new service provider. This cost has already been spent and the required infrastructure is already in place for the Media Center. As such, the solicitation of bids for this agreement would be impracticable in accordance with PAMC Section 2.30.360(b)(2). In May 2016, following the review of the Cable Franchise and PEG Fee Audit, the Policy & Services Committee directed staff to work with the Media Center to ensure the PEG fee program complies with federal Cable Act provisions that the restricts use of these fees to capital expenditures. The City is currently exploring a proposal with the Media Center that involves using PEG fees to purchase the Media Center’s facility. Staff plans to update the Council on its work with the Media Center in 2017. Discussion: Staff requests that Council approve a one-year agreement, with two one-year options to extend, between the City and the Media Center, in an amount not to exceed $135,000 annually, starting on July 1, 2017. This agreement funds: 1) cablecasting of Palo Alto City Council, Council Committee and Board and Commission meetings; 2) cablecasting of the Mayor’s State of the City address; 3) cablecasting of the annual City Council retreat; 4) cablecasting of Palo Alto special events, programs and activities; 5) I-Net operational support services; and 6) web indexing and archiving services. The Media Center will bill for these services monthly based upon the standard rates established in the Community Access Organization agreement with the JPA. The attached contract includes enhanced provisions relating to web streaming services, including service standards for maintaining public access to meetings archived on the web, and City of Palo Alto Page 3 commitments to return the complete archive to the City on termination or expiration of the agreement. Resource Impact: Funds for this agreement are included in the Information Technology Department’s Fiscal Year Proposed Budget, which is subject to City Council adoption in June 2017. These expenditures are offset by franchise fee revenue received from Comcast and AT&T. Franchise fee revenue totaled $939,107 in 2016. Attachments: Attachment A - Contract Between City of Palo Alto and Media Center Attachment A: C17168334 Media Center Executed by MC 1 170620 dm 00710376 CONTRACT NO. C17168334 BETWEEN THE CITY OF PALO ALTO, CALIFORNIA AND MIDPENINSULA COMMUNITY MEDIA CENTER, INC. FOR CABLECASTING AND WEB STREAMING SERVICES This Cablecasting Services Agreement (the “Agreement”), dated as of July 1, 2017, is entered into by and between the CITY OF PALO ALTO, a California chartered municipal corporation (the "City"), and the MIDPENINSULA COMMUNITY MEDIA CENTER, INC., a corporation organized under the California Nonprofit Public Benefit Corporation Law (the "Media Center") (individually, a “Party” and, collectively, the “Parties”), in reference to the following facts and circumstances: RECITALS: 1. The City is a party to the Amended and Restated Joint Exercise of Powers Agreement, dated June 23, 2008, and as hereinafter may be amended ("JPA Agreement"), by and between the Cities of Palo Alto, East Palo Alto and Menlo Park, the Town of Atherton and the Counties of San Mateo and Santa Clara (collectively, “Joint Powers” or “JPA”), and is authorized to act on behalf of the JPA members. 2. The City desires to provide support for the use of cable television public, educational, and government (“PEG”) access channels provided pursuant to federal and City law. 3. Pursuant to the Digital Infrastructure and Video Competition Act of 2006, codified at Cal. Util. Code §§ 5800 et seq. (“DIVCA”), the California Public Utilities Commission (“CPUC”) has granted separate video franchises to AT&T and Comcast to serve areas that include the jurisdictions of the JPA members. AT&T, Comcast and any other entity franchised by the CPUC as a video service provider to provide video service within the jurisdictional area of any JPA member is referred to, individually, as “Cable Company” and, collectively, as “Cable Companies”. 4. DIVCA permits, and the City’s Cable Television Ordinance No. 4636, adopted May 8, 2000, provides that (A) the City may designate a nonprofit access management entity (“Access Corporation”) to operate and administer PEG access facilities, equipment and channels (“PEG Facilities” or "PEG Facilities and Channels,” as appropriate), (B) certain channel capacity shall be provided by Cable Companies for PEG access, (C) certain ongoing payments shall be made by Cable Companies for PEG Facilities, and (D) certain services shall be provided by Cable Companies to support the operations of the PEG Facilities and Channels. 5. By an Agreement between the City and the Mid-Peninsula Access Corporation ("MPAC"), dated July 1, 2011, MPAC agreed to provide certain services to the City relating to support of City governmental access programming. DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 2 170620 dm 00710376 6. The City, by City Council resolution of October 22, 2001, has designated the Media Center as the Access Corporation to operate and manage the PEG Facilities and Channels. 7. By an Agreement between the City and the Media Center, dated July 1, 2011, and expiring on June 30, 2018, the Media Center agreed to provide certain services to the City and the JPA relating to support of PEG and City governmental access programming. 8. The Media Center has agreed to continue to serve as the Access Corporation designated by the City and to serve the JPA community by providing PEG access facilities, programming and services. 9. The City wishes the Media Center to continue to provide, and the Media Center wishes to provide, to the City certain services relating to and supporting the development, production, cablecasting and web streaming of City governmental access programming. NOW, THEREFORE, in consideration of the recitals and the following mutual covenants, terms and conditions, the Parties agree: SECTION 1. TERM OF AGREEMENT; TERMINATION 1.1 The term of this Agreement is one (1) year, commencing on July 1, 2017, unless it is terminated earlier, as provided in this Agreement. 1.2 This Agreement may be extended, by mutual agreement of the Parties, in writing, for up to two (2) additional one-year periods. 1.3 On or before January 1, 2018, the Media Center shall give the City written notice of its intention to seek an extension. If the Agreement is extended, on or before January 1, 2019, the Media Center shall give the City written notice of its intention to seek an additional extension. 1.4 On or before March 31, 2018 (and March 31, 2019, if the Agreement is extended in 2018), the City shall respond to the Media Center’s request for an extension, stating either the City’s decision to extend or not to extend. The City shall not be required to provide any reason for approving or denying the Media Center’s request. 1.5 Either Party may terminate this Agreement for convenience, on not less than one hundred eighty (180) days’ prior written notice. SECTION 2. SCOPE OF SERVICES AND COMPENSATION DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 3 170620 dm 00710376 2.1 General. The Media Center's work for the City shall be scheduled at the City’s convenience based on the deadlines mutually agreed to between the Media Center and the City. Absence of the Media Center’s staff will not justify the Media Center’s failure to comply with deadlines. The Media Center will provide technical expertise and trained staff for City projects. The Media Center will operate and maintain equipment for City projects. 2.2 Administration. The Media Center shall maintain a backup library of electronic recordings or DVDs of City meetings for a period of one year after the expiration of the original term plus all of the extension terms. 2.3 Marketing and Publicity. The Media Center will provide marketing and publicity of City programs, including, but not limited to, television announcements. The City will augment this publicity as needed. 2.4 Services and Compensation. 2.4.1 Cablecasting services: The Media Center shall cablecast all City Council, Commission, Board and Committee meetings, as set forth in Exhibit A, attached hereto and made a part hereof. These meetings will be aired on Government Access Channel 26; in the event the Media Center cablecasts two City meetings at the same time, the second meeting will be aired on Government Access Channel 29 or in accordance with the JPA’s government channel policies and procedures when there is a scheduling conflict with another JPA member. The Media Center shall bill the City on a monthly basis, at the hourly rates set forth in Exhibit B, attached hereto made a part hereof, for actual cablecasting hours. 2.4.2 Other production services and special events: The Media Center shall cablecast the Mayor’s State of the City address and the annual City Council retreat. Other video production needs may be identified during the year. The Media Center shall bill the City on a monthly basis for hours associated with these services, in accordance with the hourly rates set forth in Exhibit B. 2.4.2.1 Other productions and special events. (A) The City will attempt to provide a minimum of two (2) weeks’ prior written notice of its desire to have other productions, special events or activities videotaped. Subject to any pre-existing contractual obligations and personnel and equipment availability, the Media Center shall provide the services requested by the City. 2.4.3 Web services: The Media Center shall web stream live any meeting cablecast on Government Access Channels. These web streams shall be accessible to users of popular computer operating systems, devices, and internet browsers. DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 4 170620 dm 00710376 (A) The Media Center shall index and archive City meetings and post links to meeting archives on the Media Center website. The Media Center shall make all reasonable efforts to post meeting recordings on the Media Center website within two (2) business days following each meeting, and shall remain continuously available thereafter. The Media Center shall use YouTube for indexing and archiving services, subject to YouTube’s then-current availability and access policies. Any alternate format shall be mutually agreed to by the Parties. (B) The Media Center shall notify the City within two (2) hours of discovering that its website is disabled or off line, or any of the archived City recordings is unavailable to the public. The Media Center shall make reasonable, diligent and continuous efforts, working with YouTube as necessary, to restore access as soon as possible, and will provide the City with timely updates regarding progress. (C) On termination or expiration of this Agreement as provided in Section 1, the Media Center shall deliver to the City a complete copy of all archived recordings on media provided by the City, in a machine readable format mutually agreed-upon by the parties, within 30 days. This paragraph shall survive the termination or expiration of this Agreement. The Media Center shall bill the City on a monthly basis for hours associated with these services, in accordance with the hourly rates set forth in Exhibit B. 2.4.4 Institutional Network (I-Net) services: The Media Center shall provide operational support services for the I-Net as needed. The Media Center shall bill the City on a monthly basis for hours associated with these services, in accordance with the hourly rates set forth in Exhibit B. 2.4.5 Compensation: The total amount of the Media Center's billings shall not exceed One Hundred Thirty-Five Thousand Dollars ($135,000) per year. 2.4.6 Prompt Payment. The City will pay the Media Center within thirty (30) days of receipt of a proper invoice from the Media Center. SECTION 3. INDEMNITY; LIMITATION OF LIABILITY 3.1 The Media Center shall indemnify and defend the City, and its elected and appointed officers and employees (an “Indemnified Party” or collectively “Indemnified Parties”), against any third-party claim (a) arising or resulting from or out of the failure to comply with any applicable laws, rules, regulations or other requirements of local, state or federal authorities, or (b) of libel, slander, invasions of privacy, or infringement of common law or statutory copyright, which claim, directly or indirectly, results from the Media Center’s use, or the Media Center’s supervision of use by others, of channels, funds, equipment, facilities or staff granted under this Agreement or any franchise agreement. The Media Center shall pay any costs or damages finally awarded by a court of competent jurisdiction or agreed upon in DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 5 170620 dm 00710376 settlement. The Media Center’s obligation under this Section are contingent on the Media Center receiving prompt notice of any claim from the applicable Indemnified Party, sole control of the defense and settlement of any dispute (provided that an Indemnified Party may participate in such defense with counsel of its own choice at its own cost), and reasonable cooperation, at the Media Center’s sole expense, from the Indemnified Parties. 3.2 IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, EXEMPLARY, SPECIAL OR INCIDENTAL DAMAGES, INCLUDING ANY LOST DATA AND LOST PROFITS, ARISING FROM OR RELATING TO THIS AGREEMENT, EVEN IF THE PARTIES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE MEDIA CENTER’S TOTAL CUMULATIVE LIABILITY IN CONNECTION WITH THIS AGREEMENT, WHETHER IN CONTRACT OR TORT OR OTHERWISE, WILL NOT EXCEED $500,000. THIS SECTION DOES NOT LIMIT EITHER PARTY’S LIABILITY FOR BODILY INJURY OR PROPERTY DAMAGE. SECTION 4. COPYRIGHTS 4.1 The City shall own the copyright of any programs created or produced as a result of this Agreement, and the Media Center shall make no claim of copyright or ownership of any such programming. SECTION 5. DISTRIBUTION RIGHTS 5.1 Unless otherwise directed by the City, the Media Center shall ensure that all programs produced under this Agreement shall be distributed on the governmental access channel(s) and the web, as described in this Agreement. This paragraph shall not be interpreted to restrict other distribution (beyond distribution on the channel(s) authorized by this Agreement), so long as such other distribution is with the prior written consent of the City and consistent with any pertinent guidelines established by the City, applicable PEG access operating policies and procedures, and applicable law. SECTION 6. INSURANCE 6.1 The Media Center shall obtain and maintain at its sole cost and expense in full force and effect at all times during the term of this Agreement the insurance as required by this Agreement. (A) Commercial general liability insurance, including protective, completed operations and broad form contractual liability, property damage and personal injury coverage, and comprehensive automobile liability including owned, hired, and non-owned automobile coverage. The limits of such coverage shall be: (1) bodily injury including death, $1,000,000 for each person, each occurrence and aggregate; (2) property damage, $1,000,000 for each occurrence and aggregate. DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 6 170620 dm 00710376 (B) Fire All Risk Insurance on all equipment and facilities, including fixtures, funded in whole or in part under this Agreement or any franchise agreement with a Cable Company to the value of their replacement cost. The insurance shall include, at a minimum, insurance against loss or damage caused by or beyond the user's control, theft, fire or natural catastrophe. The City shall be shown as lien holder on all policies and certificates. (C) Full Workers' Compensation Insurance and Employer's Liability within statutory limits as required by California law with one or more insurance carriers with a Best’s Key Rating Guide rating of A:VII or higher, which are admitted to transact insurance business in California, and are otherwise satisfactory to the City. (D) Cablecasters’ Errors and Omissions Insurance in an amount not less than $1,000,000, each occurrence and aggregate covering the content of productions which are cablecast on the access channel(s) in, at a minimum, the following areas: libel and slander; copyright or trademark infringement; infliction of emotional distress; invasion of privacy; plagiarism; and the misuse of musical or literary materials. (E) With the exception of workers’ compensation and employer’s liability insurance, the City shall be named as an additional insured on all aforementioned insurance coverage with respect to the Media Center’s performance under this Agreement. The policies shall provide that no cancellation, major change in coverage or expiration may be affected by the insurance company or the Media Center without first giving the City thirty (30) days written notice prior to the effective date of such cancellation or change in coverage. Any insurance or self-insurance maintained by the City, its officers, agents, employees, or volunteers shall be in excess of the Media Center’s insurance and shall not contribute to it. (F) Please refer to Exhibit C, Insurance Requirements for the complete listing of all the requirements. SECTION 7. NONDISCRIMINATION 7.1 The Media Center shall not discriminate against any person, employee or applicant for employment or subcontractor on the basis of race, color, creed, religion, sex, sexual preference, marital status, ancestry, national origin or physical or mental handicap. 7.2 The Media Center shall not discriminate in the delivery of services on the basis on race, color, creed, religion, sex, sexual preference, marital status, ancestry, national origin or physical or mental handicap. SECTION 8. INDEPENDENT CONTRACTOR 8.1 It is understood and agreed that the Media Center is an independent contractor and that no relationship of principal and agent or employer and employee exists DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 7 170620 dm 00710376 between the Parties. If in the performance of this Agreement any third persons are employed by the Media Center, such persons shall be entirely and exclusively under the control, direction and supervision of the Media Center. All terms of employment, including hours, wages, working conditions, discipline, hiring and discharging or any other term of employment shall be determined by the Media Center, and the City shall have no right or authority over such persons or terms of employment. SECTION 9. ASSIGNMENT 9.1 Neither this Agreement, nor any interest herein, nor control of the Media Center shall be assigned, encumbered or transferred by the Media Center or its current board or members to any other person, either directly or indirectly, except as may be expressly authorized in writing by the City prior to any such assignment, encumbrance or transfer. SECTION 10. RECORDS 10.1 The Media Center shall maintain all necessary books and records, in accordance with generally accepted accounting principles. 10.2 Upon receipt of a reasonable request of the City, the Media Center shall, at any time during its normal business hours, make available to the City or its agents or representatives all of its records with respect to all matters covered by this Agreement. SECTION 11. NON-APPROPRIATIONS 11.1 The provisions of this Agreement are subject to the fiscal provisions of the City Charter and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any City fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within the City's fiscal year in the event that funds are only appropriated for a portion of the fiscal years and funds for this Agreement are no longer available. SECTION 12. DEFAULT; REMEDIES FOR DEFAULT 12.1 The Media Center shall be in default of this Agreement if it fails to perform any of its material obligations under this Agreement. If the Media Center fails to cure a default within forty-five (45) days after the City gives the Media Center notice of default, the City shall give written notice to the Media Center that it has materially breached this Agreement, and the notice of termination shall become effective on the date specified in the notice by the City. 12.2 Section 12.1 notwithstanding, the Media Center shall be in immediate default of this Agreement if any of its officers, employees, or agents misappropriates public DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 8 170620 dm 00710376 funds provided to the Media Center under this Agreement by the City or any Cable Company pursuant to a franchise agreement, or if it fails to obtain and maintain its tax exemption status under Section 501(c)(3) of the Internal Revenue Code of 1986. SECTION 13. NOTICES 13.1 All notices and other communications to be given by either Party may be given, in writing, by depositing the same in the United States mail, postage prepaid and addressed to the appropriate Party, as follows: To City: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 To Media Center: Midpeninsula Community Media Center, Inc. 900 San Antonio Road Palo Alto, CA 94303 13.2 Any Party may change its address for notice by written notice to the other Party at any time. SECTION 14. MISCELLANEOUS PROVISIONS 14.1 Time is of the essence in this Agreement in the performance of all covenants, terms and conditions of this Agreement. 14.2 Each Party agrees to execute all documents and do all things necessary and appropriate to carry out the provisions of this Agreement. 14.3 This Agreement shall be governed and interpreted in accordance with the laws of the State of California, without regard to its conflicts of law rules or principles. 14.4 This Agreement is the entire agreement of the Parties and supersedes all prior negotiations and agreements whether written or oral. This Agreement may be amended only by written agreement and no purported oral amendment to this Agreement shall be valid. IN WITNESS WHEREOF, the Parties by their duly appointed representatives have executed this Agreement as of the date written above. DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 9 170620 dm 00710376 CITY OF PALO ALTO MIDPENINSULA COMMUNITY MEDIA CENTER, INC. ______________________________ By:__________________________ City Manager- James Keene Name: Barbara Noparstak Title Board President APPROVED AS TO FORM: ____________________ By: ___________________________ City Attorney-Molly Stump Name: Mike Stern Title: Board Secretary Taxpayer Identification No. 77-0095021 DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 10 170620 dm 00710376 EXHIBIT A The Media Center shall cablecast the following meetings: All Palo Alto City Council meetings held in the City Council Chambers or Community Meeting Room All Palo Alto Planning and Transportation Commission meetings held in the City Council Chambers or Community Meeting Room All Palo Alto Utilities Advisory Commission meetings held in the City Council Chambers or Community Meeting Room All Palo Alto City Council Finance Committee meetings held in the City Council Chambers or Community Meeting Room All Palo Alto City Council Policy and Services Committee meetings held in the City Council Chambers or Community Meeting Room All Palo Alto Architectural Review Board meetings held in the City Council Chambers or Community Meeting Room All Palo Alto Historic Resources Board meetings held in the City Council Chambers or Community Meeting Room All Human Relations Commission meetings held in the City Council Chambers or Council Conference Room All Library Advisory Commission meetings held in the City Council Chambers or Community Meeting Room All Parks and Recreation Commission meetings held in the City Council Chambers or Community Meeting Room All Public Art Commission meetings held in the City Council Chambers or Community Meeting Room All City Council Rail Committee meetings held in the City Council Chambers or the Community Meeting Room All meetings of any other ad hoc or regular City Council committee that may be established by the City Council, in the City Council Chambers or the Community Meeting Room Citizen Advisory Committee meetings DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 11 170620 dm 00710376 Any special meetings as requested by the Palo Alto City Council or Palo Alto City Manager or his designee, provided five working days’ notice is given DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 12 170620 dm 00710376 EXHIBIT B Media Center shall charge JPA Members according to the following schedule of rates for performing the following services related to governmental access programming: Meeting Coverage (three hour minimum): City Hall Video Coverage: $99.36 per hour Single Camera Coverage with City equipment at location: $99.36 per hour Single Camera Coverage with Media Center equipment: $113.85 per hour Remote video coverage with the studio $257.72 per hour in a box. Crew of 3 requires 4.0 hrs/set up, plus breakdown and transportation time (minimum of 2 hrs of meeting coverage) Parking Permit Reimbursement for City Hall Visitor Permit Fee meetings starting before 3PM Cancellation fee (for a JPA member's cancellation of scheduled Media Center coverage without 24 hours' prior notice the Media Center): $257.72 flat fee Additional Services: Web indexing and archiving: $183 per meeting Server storage for archived meetings: $148 per month Video clip preparation: $53.82 per hour I-Net Services: $106.61 per hour Program Development: Site visit and planning: $53.82 per hour Videography with equipment: $106.61 per hour Editing: $69 per hour Hosting and preparation: $53.82 per hour Studio crew per person: $42 per hour Duplication of videotapes/DVD’s of meetings: Meetings under two hours $20.70 per dup Meetings over two hours $31 per dup The foregoing rates shall remain unchanged through December 31, 2017. Thereafter, the Media Center may increase these rates, no more often than once per calendar year, provided that, absent the prior consent of the City, any such increase in rates shall not exceed the amount of the increase in the Consumer Price Index – All Urban Consumers for the San Francisco-Oakland-San Jose MSA during the preceding calendar year. DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 13 170620 dm 00710376 EXHIBIT C INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A- :VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIR ED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 14 170620 dm 00710376 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 DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY 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 DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 15 170620 dm 00710376 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 DocuSign Envelope ID: C8EA0047-8589-4B7C-A0AF-31ECDF3CC997 Certificate Of Completion Envelope Id: C8EA004785894B7CA0AF31ECDF3CC997 Status: Sent Subject: Please DocuSign: Attachment A - Final Draft Contract Between City of Palo Alto and Media Center... Source Envelope: Document Pages: 15 Signatures: 2 Envelope Originator: Supplemental Document Pages: 0 Initials: 0 Kenneth Mullen Certificate Pages: 5 AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Payments: 0 250 Hamilton Ave Palo Alto , CA 94301 Kenneth.Mullen@CityofPaloAlto.org IP Address: 12.220.157.20 Record Tracking Status: Original 6/20/2017 5:31:04 PM Holder: Kenneth Mullen Kenneth.Mullen@CityofPaloAlto.org Location: DocuSign Signer Events Signature Timestamp Barbara Noparstak barbaran@pobox.com Security Level: Email, Account Authentication (None) Using IP Address: 73.170.79.129 Sent: 6/20/2017 5:35:22 PM Viewed: 6/21/2017 7:21:44 AM Signed: 6/21/2017 7:25:56 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Mike Stern sternmd@cooley.com Security Level: Email, Account Authentication (None) Using IP Address: 208.87.233.201 Sent: 6/21/2017 7:25:57 AM Viewed: 6/21/2017 9:06:01 AM Signed: 6/21/2017 9:10:30 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Molly Stump molly.stump@cityofpaloalto.org City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/21/2017 9:10:31 AM Viewed: 6/21/2017 3:31:51 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign James Keene james.keene@cityofpaloalto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 4/14/2015 5:40:07 PM ID: 44fe333a-6a81-4cb7-b7d4-925473ac82e3 In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Kenneth Mullen kenneth.mullen@cityofpaloalto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Melissa Cavallo melissa.cavallo@cityofpaloalto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 11/25/2014 10:18:25 AM ID: eb63cb5e-814a-458d-b684-64f1728d6f2a Beth Minor beth.minor@cityofpaloalto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/21/2017 9:10:31 AM Payment Events Status Timestamps Electronic Record and Signature Disclosure CONSUMER DISCLOSURE From time to time, City of Palo Alto (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of this document. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. Electronic Record and Signature Disclosure created on: 10/1/2013 8:33:53 AM Parties agreed to: James Keene, Melissa Cavallo How to contact City of Palo Alto: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: david.ramberg@cityofpaloalto.org To advise City of Palo Alto of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at david.ramberg@cityofpaloalto.org and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.. In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign. To request paper copies from City of Palo Alto To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to david.ramberg@cityofpaloalto.org and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Palo Alto To inform us that you no longer want to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your DocuSign account, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an e-mail to david.ramberg@cityofpaloalto.org and in the body of such request you must state your e-mail, full name, IS Postal Address, telephone number, and account number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software Operating Systems: Windows2000? or WindowsXP? Browsers (for SENDERS): Internet Explorer 6.0? or above Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0, NetScape 7.2 (or above) Email: Access to a valid email account Screen Resolution: 800 x 600 minimum Enabled Security Settings: •Allow per session cookies •Users accessing the internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection ** These minimum requirements are subject to change. If these requirements change, we will provide you with an email message at the email address we have on file for you at that time providing you with the revised hardware and software requirements, at which time you will have the right to withdraw your consent. Acknowledging your access and consent to receive materials electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know by clicking the 'I agree' button below. By checking the 'I Agree' box, I confirm that: • I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC CONSUMER DISCLOSURES document; and • I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and • Until or unless I notify City of Palo Alto as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by City of Palo Alto during the course of my relationship with you. City of Palo Alto (ID # 8176) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Contract for Purchase of a Freightliner Sewer Vacuum/Flush Truck Title: Approval of a Purchase Order With Owen Equipment in the Amount of $477,330 for the Purchase of a 2017 Freightliner Combination Single Engine Sewer Cleaner and Approve Budget Amendments in the Storm Drain 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 Owen Equipment in the amount of $477,330 for the purchase of a 2017 Freightliner Combination Single Engine Sewer Cleaner with Positive Displacement Vacuum System Mounted on a Heavy Duty Truck Chassis; and 2. Amend the Fiscal Year 2017 Budget Appropriation Ordinance for a. the Storm Drain Fund by: i. Increasing the transfer to the Vehicle Replacement and Maintenance Fund in the amount of $127,330; and ii. Decreasing the Rate Stabilization Reserve in the amount of $127,330; and b. the Vehicle Replacement and Maintenance Fund by: i. Increasing the transfer from the Storm Drain Fund by $127,330; and ii. Decreasing the ending fund balance of the Vehicle and Equipment Replacement Fund by $350,000; and iii. Increasing the Scheduled Vehicle and Equipment Replacement City of Palo Alto Page 2 Fiscal Year 2017 project VR-17000 in the amount of $477,330. 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/dumps of ten years or 100,000 miles. As part of the budget process vehicles are reviewed to comprise a list for replacement in the next fiscal year. This vehicle was not included in the list for FY18, since all mechanical functions were satisfactory. Vehicle 4705, a 2004 Peterbilt 330 Combination Vacuum/Flush is over 13 years old, with over 37,000 miles and over 7,400 hours. Life to date costs for operation and maintenance of this vehicle have exceeded $477,000. Discussion Vehicle 4705 is increasingly out of service for repairs, and equipment mechanics have discovered that the engine has started to consume oil at a high rate, and is also leaking oil. In the near future, the engine will inevitably need replacing. The old style vacuum system also has several components showing signs of wear and will need to be rebuilt. The combined costs for such major repairs could easily exceed $60,000. The new vehicle offered by Owen Equipment has an improved vacuum system, which increases both operator and pedestrian safety. In accordance with the policy, the Fleet Review Committee reviews all vehicles proposed for replacement and authorized this replacement to be added to the Fiscal Year 2017, VR-17000 Capital Improvement Project on February 15, 2017; it was original scheduled for replacement in FY 2015. Approval was based on: An examination of the vehicle’s current usage; An analysis of the vehicle’s operating and replacement costs; A comparison of the age, mileage, operating cost and performance of the vehicle with others in the class; and An analysis of alternatives to ownership, such as mileage reimbursement; pooling/sharing; the reassignment of another City of Palo Alto Page 3 underutilized vehicle, or renting. 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 (NJPA), which is an approved cooperative group. A Request for Quotation was sent to NJPA on March 22, 2017, and a quote was received from National Auto Fleet Group on April 10, 2017 (Attachment A). Staff recommends that Council approve a purchase order with Owen Equipment for one 2017 Freightliner Combination Single Engine Sewer Cleaner. Resource Impact Traditionally, vehicle procurements are pre-funded through annual charges to the department/fund that benefits from the vehicle. A collection of $350,000 toward the replacement of vehicle 4705 resides in the Vehicle Replacement Fund, leaving a shortfall of $127,330 for this procurement. This is mainly due to this vehicle originally being scheduled for replacement in Fiscal Year 2015 and no additional funds being collected for its replacement between FY 2015 and FY 2017. Cost increases related to upgraded technology for the vacuum system, new emissions standards, and general inflation have caused the need for the increased transfer from the Storm Drain Fund to fully fund the replacement of this vehicle. An appropriation of $477,330 to the Scheduled Vehicle and Equipment Replacement Fiscal Year 2017 CIP project (VR-17000) in the Vehicle Replacement and Maintenance Fund is needed, offset by a transfer of $127,330 from the Storm Drain Fund and $350,000 from the Vehicle and Equipment Replacement Fund balance is recommended. 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, and will replace an older vehicle that is currently in operation. Accordingly, this purchase is exempt from City of Palo Alto Page 4 the California Environmental Quality Act (CEQA) under the Section 15061(b)(3) of the CEQA Guidelines. Attachments: Attachment A - Quote Presents a Proposal Summary 2100 Plus Combination Single Engine Sewer Cleaner with Positive Displacement Vacuum System Mounted on a Heavy Duty Truck Chassis For Pala Alto Drains NJPA Contact #022014-FSC www.njpacoop.org PRODUCT DESCRIPTION · 2100 PLUS with Roots 824-16" Hg. Blower, 15 Yard Debris body, 1500 Gallons of Fresh Water STANDARD FEATURES · 48" x 22" x 24" Curb Side Aluminum Toolbox · Aluminum Fenders · Mud Flaps · Electric/Hydraulic Four Way Boom · Color Coded Sealed Electrical System · Remote Pendant Control w/35' Cord · Vansco-Electronic Package · Double Acting Dump Hoist Cylinder · Handgun Assy. w/1/2" x 35' Hose w/Quick Disconnects · 3" Y-Strainer at Water Pump Inlet · Ex-Ten Steel Cylindrical Debris Tank · Flexible Hose Guide · 30 Deg. Sand Nozzle w/Carbide Inserts · 30 Deg. Sanitary Nozzle w/Carbide Inserts · 15 Deg. Penetrator Nozzle w/Carbide Inserts · Nozzle Storage Rack · Vacuum Tube Storage: Curbside (2) Pipe, Rear Door (2) Pipe · 1" Nozzle · 1" X 10' Leader Hose · Flat Rear Door w/Hydraulic Locks and Door Power-up/Down, Open/Close Feature · Dual 10" Stainless Steel Float Shut Off System/Rear Mounted · Debris Body Vacuum Relief System · Debris Deflector Plate · 60" Dump Height · Water Sight Gauge DS/PS · Liquid Float Level Indicator · Boom Transport Post Storage · 3" Y-Strainer @ Water Pump w/3" Drain Valve · Performance Package: (Hyd Variable Flow, Dual PTO's. Dual Hyd. Pumps) · 1" Water Relief Valve for Vactor Water Pump · Stainless Steel Microstrainer · Blower Air Shift Controls · Hydraulic Cooling Package · Midship Handgun Coupling · Side Mounted Water Pump · Hose Wind Guide (Dual Roller) · Hose Footage Counter - Mechanical · Hose Reel Manual Hyd. Extend/Retract · Hose Reel Chain Cover (Full) · Tachometer/Chassis Engine W/Hourmeter · Circuit Breakers · LED Lights. Clearance, Back-Up, Stop, Tail & Turn · Tow Hooks, Front and Rear · Electronic Back-Up Alarm · Hydraulic Tank Shutoff Valves · 8" Vacuum Pipe Package · Emergency Flare Kit · Fire Extinguisher 5 Lbs. · Water Pump Hour Meter · PTO Hour Meter · Vactor 2100 Plus Body Decal - Silver · Chassis Modifications · Vactor Manual, Partial Manual and USB Version - 1 + Dealer ADDITIONAL FEATURES · 3" Y-Strainer w/25' Fill Hose · Roots 824-16" Hg. Blower · 180 Degree Rotation, 10 Ft. Hydraulic Telescoping Boom, Front Loading 8" Suction Hose · Telescopic Boom Elbow, Hard Hat Style · 80 GPM Variable Flow Water System · 2500 PSI Water Pressure · 1" x 800' Piranha Sewer Hose, 2500 PSI · Hydraulic Extending/Rotating 15" Hose Reel (1" x 800') Capacity · Module Paint, Dupont Imron Elite - Sanded Primer Base · Debris Body Flush Out System · Debris Body Load Limit Alarm functionally tied to Vacuum Relief · 6" Butterfly Valve, Rear Door, 3:00 Position · 6" Knife Valve w/Cam-Loc, Rear Door, 6:00 Position · Full Rear Door Swinging Screen · Centrifugal Separators · Folding Pipe Rack, Curbside · Folding Pipe Rack, Streetside · Rear Door Splash Shield · Lube Manifold · Plastic Lube Chart · Continuous Water Tank Fill · Hot Shift Blower Drive · Front Joystick Boom Control · Water Ring Assembly, At Debris Body Inlet · Wireless Controls, including hose reel controls · Rotatable Boom Inlet Hose, Telescoping Boom · Rodder System Accumulator- Jack Hammer on/off control w/ manual valve · Handgun Couplers, Front and Rear · Hydro Excavation Kit/Retract Reel w/1/2" X 50' Hose and Nozzle · Automatic Hose Level Wind Guide, Indexing · Digital Hose Footage Counter · Handgun Hose Reel w/Spring Retract · Rodder Pump Drain Valves · Rear Mounted Directional Control, Whelen Traffic Advisor, LED, One-Piece, 5' Long · Hand Light w/Bumper Plug · Waterproof, Rechargeable, Wireless, Handheld, LED Spot Light w/12V Charger and Plug · DOT 3 Lighting Package, 6 Whelen Strobe Lights · Debris Body-Up Alarm · Worklights (5), LED, Telescoping Boom · Worklights (2), LED, Rear Door · Worklight, LED, Operators Station · Worklight, LED, Hose Reel Manhole · Worklight, LED, Curb Side · Worklight, LED, Street Side · Toolbox, Front Bumper Mounted, 16 x 12 x 18 w/ (2) LED Side Markers · Toolbox, Behind Cab · Toolbox, Driver Side Chassis Frame, 24w x 24h x 24d · Toolbox, Driver Side Subframe, 18w x 24h x 24d · Camera System, Front, Rear and Both Sides · Safety Cone Storage Rack - Drop in Style · Additional Safety Cone Storage Rack - Drop in Style · Digital Water Pressure Gauge · 1" x 25' Leader Hose Assembly · (2) 3" Y-Strainer Screen · Vactor switches mounted in dash . Tool Box Lighting · Toolbox, Alum, 16W x 42H x 96D w/4 slide out trays (2 per side) · FIVE BOOM WORK LIGHTS · Mount cone racks behind tandem and in front of rear bumper · Wheel Chocks and Holder . Bulldog 80@2500PSI Large . Bulldog 80@2500PSI Small . KEG Floor Cleaner 6 Jet with 1” Swivel . Paint Body Blue . Tire Fee . Delivery to City of Palo Alto Price FOB Palo Alto Ca Tax @9.0% Total NJPA Price including Tax $437,917.55 $39,412.58 $477,330.13 THE PROPERTY HEREIN IS GUARANTEED BY MANUFACTURER'S WARRANTY ONLY AND SELLER MAKES NO WARRANTY EXPRESSED OR IMPLIED, OF MERCHANTABILITY OR OTHERWISE, OR OF FITNESS FOR ANY PARTICULAR PURPOSE, THAT EXTENDS BEYOND THE ABOVE DESCRIPTION OF THE EQUIPMENT. NOTE: Price is good for 7-31-2017 30 Days. Cost increases due to the addition of Government mandated safety or environmental devices incurred after the date of this proposal, will be charged to you at our cost. Proof of such costs, if any, will be documented. TAXES: SALES TAX applicable at time of delivery will be shown on our invoice. FEDERAL EXCISE TAXES, if applicable, will require payment unless a properly executed Exemption Certificate is submitted. DELIVERY: 120-150 ARO TERMS: Net 10 or Approved Lease If you have any questions please give me a call at (916) 947-0986. Sincerely, Michael Kennedy Michael Kennedy Sales Representative City of Palo Alto (ID # 8244) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Resolution Vacating Public Service Easement at 144 Kellogg Avenue Title: Adoption of a Resolution Summarily Vacating Public Utility Easement at 144 Kellogg Avenue From: City Manager Lead Department: Administrative Services RECOMMENDATION Staff recommends that Council approve the attached Resolution Summarily Vacating a 5’ wide Public Utilities Easement (PUE) at 144 Kellogg Avenue, Palo Alto, CA. DISCUSSION The owner of the property at 144 Kellogg Avenue has requested that the City vacate a 5’ wide PUE recorded June 13, 1958 in Book 4288, at Pages 293 and 294. There are no utilities in the PUE and it has never been used. The utilities had been placed into a 12’ wide private ingress and egress easement within the driveway. The owner has granted the City a new 8’ easement for public utilities within the existing 12’ wide private ingress and egress easement in the driveway. Therefore, this PUE is no longer necessary for any future public purpose. Staff has notified AT&T (formerly SBC Communications), the City Utilities, Public Works and Planning Departments of the proposal to vacate the PUE and all concur with the vacation and the 8’ wide replacement PUE. Therefore, the PUE to be vacated in accordance with Section 8333 of the California Streets and Highways Code. RESOURCE IMPACT The easement vacation processing fee of $1,642.00, as set forth in the Municipal Fee Schedule, was waived as a condition of the owners granting the City a new easement for public utilities in another suitable location on this property. The new grant of easement has been obtained. POLICY IMPLICATIONS The recommendation does not represent any change to City policies. The Planning Department has determined that the vacation of this easement is in conformity with the Palo Alto Comprehensive Plan. City of Palo Alto Page 2 ENVIRONMENTAL REVIEW The proposed summary vacation of the public utilities easements are categorically exempt from the review under the California Environmental Quality Act (CEQA) pursuant to Title 14 California Code of Regulations Section 15305 as a minor alteration in land use limitations. Attachments: Attachment A: 144 Kellogg Avenue Summary Vacation City of Palo Alto (ID # 8225) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2018 Title: Adoption of a Resolution Determining the Proposed Calculation of the Appropriations Limit for Fiscal Year 2018 From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that Council adopt the attached Resolution determining the Proposition 4 (GANN) Appropriations Limit calculation for Fiscal Year 2018 (Attachment A). The City's Fiscal Year 2018 appropriations are estimated to be $26.88 million under the limit based on the Fiscal Year 2018 Adopted Budget. Background California voters approved an initiative on November 6, 1979 that added Article XIIIB to the State Constitution as amended with Proposition 98 in 1988 and Proposition 111 in 1990. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. The Appropriation Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors. The original legislation implementing the provisions of Article XIIIB became effective January 1, 1981. In accordance with that legislation, the governing body of each government jurisdiction must, by resolution, establish its annual Appropriation Limit for the coming year (prior to July 1) at a regularly scheduled meeting or noticed special meeting. Based on Article XIIIB, the City of Palo Alto can use the larger of two measurements of population growth, (county or city population growth) in the Appropriations Limit calculation. For Fiscal Year 2018, the City is using City of Palo Alto population factor, which is greater than the population factor for the County of Santa Clara. The City typically uses the highest factor in order to provide maximum appropriation flexibility. Discussion The Appropriations Limit is adjusted annually on the basis of population and per capita income changes. This updated information is received from the California Department of Finance in May, after the City's proposed budget has been submitted to Council. Attached is the final City of Palo Alto Page 2 Appropriations Limit calculation, based on the updated information as well as allowable appropriation limit adjustment factors such as voter-approved debt and capital outlay expenditures. The Appropriations Limit for Fiscal Year 2018 is $158.37 million for funds subject to the appropriation limits. The City's Fiscal Year 2018 budgeted appropriations are estimated to be $26.88 million under the limit. As required by state law, documentation used to compute the Appropriations Limit has been made available to the public at least fifteen days prior to the Council meeting at which the Appropriations Limit is being adopted, and notice was published of the availability of these materials. Resource Impact The adoption of the Fiscal Year 2018 Appropriations Limit has no impact on City resources. Policy Implications This recommendation is consistent with existing City policies. Environmental Review This is not a project under section 21065 of the California Environmental Quality Act. Attachments: Attachment A: Appropriations Limit Resolution Attachment A, Exhibit 1: Appropriations Limit Calculation 1 RESOLUTION NO.XXXX RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO DETERMINING THE CALCULATION OF THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2018 WHEREAS, under Article XIIIB of the Constitution of the State of California, the City of Palo Alto (City) may not appropriate any proceeds of taxes in excess of its appropriations limit (Limit); and WHEREAS, since fiscal year 1991, the City is permitted to annually adjust its Limit in accordance with inflation and population adjustment factors; and WHEREAS, pursuant to Government Code Section 37200, the calculation of the Limit and the total appropriations subject to the limit were set forth in the annual budget of the City for Fiscal Year 2018, which was adopted by ordinance of the Council on June 27, 2017; and WHEREAS, pursuant to Government Code sections 7901 and 7910, the final calculation of the Limit has been determined, and the adjustment factors on which the calculation is based are a 3.69% percent change in California per capita income and a 0.82% percent change in the population growth for the City of Palo Alto; and WHEREAS, the documentation used in the determination of the Limit has been made available to the general public for fifteen (15) days prior to the date of adoption of this resolution; and WHEREAS, according to the final calculation, the City’s net appropriations subject to limitation are approximately $131.49 million. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The Council of the City of Palo Alto hereby finds that, for Fiscal Year 2018, the final calculation of the Appropriations Limit of the City of Palo Alto has been determined in accordance with the adjustment factors referred to above, the documentation used in the determination of the calculation has been made available to the general public for the period of fifteen days as required by law, and the City’s appropriations subject to limitation are under the Limit by approximately $26.88 million. SECTION 2. The Council hereby adopts the final calculation of the Appropriations Limit of the City for Fiscal Year 2018, a copy of which is attached hereto as Exhibit 1. ATTACHMENT A 2 SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, and, therefore, no environmental assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: ___________________________ _______________________________ City Clerk Mayor APPROVED AS TO FORM: _______________________________ City Manager ___________________________ Senior Assistant City Attorney _______________________________ Administrative Services Director Attachment A, Exhibit 1 FY 2018 Adopted Budget 210.43$ 80.26$ 30.02$ 4.67$ 325.37$ Less: Interfund Transfers (29.38)$ -$ (9.88)$ -$ (39.27)$ Allocated Charges (17.94)$ -$ -$ -$ (17.94)$ Non-Proceeds (49.16)$ (80.26)$ (7.25)$ -$ (136.68)$ Net Appropriations Subject to Limit 113.94$ -$ 12.88$ 4.67$ 131.49$ FY 2018 Per Capita Income Change (CA Department of Finance) 3.69% Factor A 1.0369 FY 2018 Population Change (City of Palo Alto) 0.82% Factor B 1.0082 151.49$ 1.0454 FY 2018 Adopted Appropriations Limit 158.37$ Net Appropriations Subject to Limit 131.49$ Amount Under the Limit 26.88$ 1.0537 1.0130 1.0674 151.49$ 109.51$ 41.97$ 1.0382 1.0113 1.0499 141.92$ 100.60$ 41.31$ 0.9977 1.0150 1.0127 135.17$ 82.93$ 52.24$ 1.0512 1.0157 1.0677 133.48$ 90.28$ 43.20$ 1.0377 1.0124 1.0506 125.01$ 96.73$ 28.28$ 1.0251 1.0089 1.0342 119.00$ 89.00$ 30.00$ 0.9746 1.0144 0.9886 115.06$ 78.94$ 36.12$ 1.0062 1.0220 1.0283 116.38$ 72.00$ 44.38$ 1.0429 1.0172 1.0608 113.17$ 78.64$ 34.53$ 1.0442 1.0152 1.0601 106.68$ 73.30$ 33.38$ Factor A x Factor B Amount Under the Limit Appropriations Limit Debt Service Fund The City of Palo Alto remains well within its appropriations limit in FY 2018. Future year limit trends can be made based on the average change in regional population and income growth. The appropriations subject to limitation includes proceeds of taxes from the General Fund, Capital Projects Fund, and Special Revenue Funds. Fiscal Year 2017 APPROPRIATIONS LIMITATION COMPLIANCE CALCULATION FOR FISCAL YEAR 2018 ADOPTED BUDGET ($ IN MILLIONS) Total Budgeted Appropriations General Fund Capital Projects Funds Special Revenue Funds Combined Funds FY 2017 Adopted Appropriations Limit Per Capita Income Factor Population Change Factor Total Adjustment Factor Appropriations Subject to Limit On November 6, 1979, California voters approved Proposition 4, an initiative that added Article XIIIB to the state Constitution. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. The Appropriations Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors. 2016 2015 2014 2013 2012 2011 2010 2009 2008 City of Palo Alto (ID # 8273) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Investment Policy Update Title: Adoption of Fiscal Year 2018 Investment Policy From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that Council approve the City’s Investment Policy with the following change: Modify under Authorized Investments that “California State, California Local Government Agencies, and other United States State Bonds” may not exceed 20 percent of the par value of the portfolio; a change from the current limit of 10 percent of par value. Discussion During the annual budget process, staff submits the Investment Policy to Council for review and approval (Attachment A). For Fiscal Year 2018, staff is proposing a change that would increase investments in highly rated municipal bonds by the State of California, its local agencies, and other United States State Bonds from the current limit of 10 percent to 20 percent of the par value. Historically, municipal government bonds have had a low rate of default. Increasing the City's Investment Policy limit in municipal bond allows additional flexibility in investing idle cash; potentially enhancing portfolio yield; and, most importantly, preserving City capital in secure investment instrument. With the availability of federal agency outstanding debt declining since the great recession and the possibility of Congress, in the future, of separating or disassociating federal agency debt (e.g., Federal National Mortgage Association, Federal Home Loan Banks) from the full faith and credit backing of the federal government, additional flexibility to potentially replace or diversify City’s investments is important. The current policy requirement that municipal bonds, at the time of purchase, have a minimum AAlA2 (Double A) rating will continue. In Standard and Poor's and Moody's rating scales a Double A represents a "high quality grade" investment which is 2 "notches" below the "best quality grade" of Triple A. Thus, the City would be able to invest in additional municipal debt having an AAA, AA+, and AA rating. This investment grade range (AAA to AA) is the same for medium term corporate notes. City of Palo Alto Page 2 Based on the above, staff recommends Council approve increasing the percentage limit of purchasing highly rated municipal government bonds. Resource Impact There is no budget impact associated with this report. Policy Implications This recommendation contains a change to the City’s Investment Policy. Environmental Review The actions requested in this report do not constitute a project for the purposes of the California Environmental Quality Act (CEQA). Attachments: Attachment A Proposed City of Palo Alto Investment Policy, Fiscal Year 2017-18 1 ATTACHMENT A PROPOSED CITY OF PALO ALTO Investment Policy Fiscal Year 2017-18 With a Change INTRODUCTION The City of Palo Alto invests its pooled idle cash according to State of California law and the charter of the City of Palo Alto. In particular, the City follows “The Prudent Investor Standard” cited in the State Government Code (Section 53600.3). Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. INVESTMENT PHILOSOPHY The basic principles underlying Palo Alto's investment philosophy is to ensure the safety of public funds; provide that sufficient money is always available to meet current expenditures; and achieve a reasonable rate of return on its investments. The City's preferred and chief practice is to buy securities and to hold them to their date of maturity rather than to trade or sell securities prior to maturity. The City may, however, elect to sell a security prior to its maturity should there be a significant financial need. If securities are purchased and held to their maturity date, then any changes in the market value of those securities during their life will have no effect on their principal value. Under a buy and hold philosophy, the City is able to protect its invested principal. The economy, the money markets, and various financial institutions (such as the Federal Reserve System) are monitored carefully to make prudent investments and to assess the condition of the City’s portfolio. 2 INVESTMENT OBJECTIVES The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: 1. Safety: Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. a) Credit risk is the risk that an obligation will not be paid and a loss will result. The City will seek to minimize this risk by: Limiting investment to the safest types of securities as listed in the “Authorized Investment” section Diversifying its investments among the types of securities that are authorized under this investment policy b) Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investor’s portfolio. For example, an investor with large holdings in long-term bonds has assumed significant interest rate risk because the value of the bonds will fall if interest rates rise. The City can minimize this risk by: Buying and holding its securities until maturity Structuring the investment portfolio so that securities mature to meet cash flow requirements To further achieve the objective of safety, the amount that can be invested in all investment categories, excluding obligations of the U.S. Government and its agencies, is limited either as a percentage of the portfolio or by a specific dollar amount. These limits are defined under the “Authorized Investments” section. 2. Liquidity: Liquidity is the second most important objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by maintaining a portion of the portfolio in liquid money market mutual funds or local government investment pools. In addition, the City will maintain one month’s cash needs in short term investments and at least $50 million shall be maintained in securities maturing in less than two years. Since all possible cash demands cannot be anticipated, however, the portfolio will consist of securities with active secondary or resale markets should the need to sell a security prior to maturity arises. 3 3. Yield: Yield on the City’s portfolio is last in priority among investment objectives. The investment portfolio shall be designed to obtain a market rate of return that reflects the authorized investments, risk constraints, and liquidity needs outlined in the City’s investment policy. Compared to similar sized cities, the City of Palo Alto should be able to take advantage of its relatively large reserve balances to achieve higher yields through long-term investments. In addition, the City will strive to maintain the level of investment of idle funds as close to 100 percent as possible. SCOPE A. This investment policy shall apply to all financial assets of the City of Palo Alto as accounted for in the Comprehensive Annual Financial Report (CAFR), including but not limited to the following funds: 1. General Fund 2. Special Revenue Funds 3. Debt Service Funds 4. Capital Project Fund 5. Enterprise Funds 6. Internal Service Funds 7. Trust and Agency Funds B. The policy does not cover funds held by the Public Employees Retirement System or funds of the Deferred Compensation program. C. Investments of bond proceeds shall be governed by the provisions of the related bond indentures. GENERAL INVESTMENT GUIDELINES 1. The maximum stated final maturity of individual securities in the portfolio should be ten years. 2. A maximum of 30 percent of the par value of the portfolio shall be invested in securities with maturities beyond five years. 3. The City shall maintain a minimum of one month’s cash needs in short term investments. 4. At least $50 million shall be maintained in securities maturing in less than 2 years. 5. Should the ratio of the market value of the portfolio to the book value of the portfolio fall below 95 percent, the Administrative Services Department will report this fact to the City Council within a reasonable time frame and evaluate whether there is any risk of holding any of the securities to maturity. 4 6. Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing. 7. Whenever possible, the City will obtain three or more quotations on the purchase or sale of comparable securities and take the higher yield on purchase or higher price on sale. This rule will not apply to new issues, which are purchased at market no more than three (3) working days before pricing, as well as to LAIF, City of Palo Alto bonds, money market accounts and mutual funds, all of which shall be evaluated separately. 8. Where the Investment Policy specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. A later increase or decrease in a percentage resulting from a change in the portfolio’s assets or values shall not constitute a violation of that restriction. As soon as possible, percentage limitations will be restored as investments mature in each category. AUTHORIZED INVESTMENTS The California Government Code (Sections 53600 et seq.) governs investment of City funds. The following investments are authorized: 1. U.S. Government Securities (e.g. Treasury notes, bonds and bills) Securities that are backed by the full faith and credit of the United States a) There is no limit on purchase of these securities. b) Securities will not exceed 10 years maturity. c) All purchased securities must have an explicit or a de facto backing of the full faith and credit of the U.S. Government. 2. U.S. Government Agency Securities – Obligations issued by the Federal Government agencies (e.g. Federal National Mortgage Association). a) There is no limit on purchase of these securities except for: Callable and Multi-step-up securities provided that: - The potential call dates are known at the time of purchase; - the interest rates at which they “step-up” are known at the time of purchase; and - the entire face value of the security is redeemed at the call date. - No more than 25 percent of the par value of the portfolio. b) Securities will not exceed 10 years maturity. 5 3. California State, California Local Government Agencies, and other United States State Bonds a) Having at time of investment a minimum Double A (AA/AA2) rating as provided by a nationally recognized rating service (e.g. Moody’s and/or Standard and Poor’s). b) May not exceed 2010 percent of the par value of the portfolio. c) Investments include: i) Registered state warrants or treasury notes or bonds of the State of California and bonds, notes, warrants, or other evidences of indebtedness of any local agency within California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by the state or local agency or by a department, board, agency, or authority of the state or local agency. ii) Registered treasury notes or bond of any of the 49 United States in addition to the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency or authority of any of the other 49 United States, in addition to the State of California. 4. Certificates of Deposit (CD) - A debt instrument issued by a bank for a specified period of time at a specified rate of interest. a) May not exceed 20 percent of the par value of the portfolio. b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution. c) Purchase collateralized deposits only from federally insured large banks that are rated by a nationally recognized rating service (e.g. Moody’s and/or Standard and Poor’s). d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC). – See Appendix C e) Rollovers are not permitted without specific instruction from authorized City staff. 5. Banker's Acceptance Notes (BA) – Bills of exchange or time drafts drawn on and accepted by commercial banks. Purchase of banker’s acceptances are limited to: 6 a) No more than 30 percent of the par value of the portfolio. b) Not to exceed 180 days maturity. c) No more than $5 million with any one institution. 6. Commercial Paper - Short-term unsecured obligations issued by banks, corporations, and other borrowers. Purchases of commercial paper are limited to: a) Having highest letter or numerical rating as provided for by a nationally recognized rating service (e.g. Moody’s and/or Standard and Poor’s). b) No more than 15 percent of the par value of the portfolio. c) Not to exceed 270 days maturity. d) No more than $3 million or 10 percent of the outstanding commercial paper of any one institution, whichever is lesser. 7. Local Agency Investment Fund (LAIF) – A State of California managed investment pool may be used up to the maximum permitted by California State Law. 8. Short-Term Repurchase Agreements (REPO) – A contractual agreement between a seller and a buyer, usually of U.S. government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and, usually, at a stated time. a) Not to exceed 1 year. b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities. c) A Master Repurchase agreement must be signed with the bank or dealer. 9. Money Market Deposit Accounts – Liquid bank accounts which seek to maintain a net asset value of $1.00. 10. Mutual Funds which seek to maintain a net asset value of $1.00 and which are limited essentially to the above investments and further defined in note 9 of Appendix A a) No more than 20 percent of the par value of the portfolio. b) No more than 10 percent of the par value with any one institution. 7 11. Negotiable Certificates of Deposit (NCD) issued by nationally or state chartered banks and state or federal savings institutions and further defined in note 11 of Appendix A. Purchases of negotiable certificates of deposit: a) May not exceed 10 percent of the par value of the portfolio. b) No more than $5 million in any one institution. 12. Medium-Term Corporate Notes – Issued by corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating with the United States. a) Not to exceed 5 years maturity. b) Securities eligible for investment shall have a minimum rating of AA from a nationally recognized rating service (e.g. Moody’s and/or Standard & Poor’s). c) No more than 10 percent of the par value of the portfolio. d) No more than $5 million of the par value may be invested in securities of any single issuer, other than the U.S. Government, its agencies and instrumentality. e) If securities owned by the City are downgraded by either Moody’s or Standard & Poors to a level below AA, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. Appendix A provides a more detailed description of each investment vehicle and its security and liquidity features. Most of the City's short-term investments will be in securities which pay principal upon maturity, while long-term investments may be in securities that periodically repay principal, as well as interest. Most of the City's investments will be at a fixed rate. However, some of the investments may be at a variable rate, so long as that rate changes on specified dates in pre- determined increments. PROHIBITED INVESTMENTS: Includes all investments not specified above, and in particular: 1. Reverse repurchase agreements 2. Derivatives, as defined in Appendix B Appendix B provides a more detailed description of each investment, which is prohibited, for City investment. 8 AUTHORIZED INVESTMENT PERSONNEL Idle cash management and investment transactions are the responsibility of the Administrative Services Department. The Administrative Services Department is under the control of the Director of Administrative Services (Director), as treasurer, who is subject to the direction and supervision of the City Manager. The Assistant Directors of Administrative Services, who reports to the Director, are authorized to make all investment transactions allowed by the Statement of Investment Policy. He or she may authorize the Senior Financial Analyst/Investments (Analyst) to enter into investments within clearly specified parameters. The Investment function is under the supervision of the Assistant Director of Administrative Services (Assistant). The Assistant is charged with the responsibility to manage the investment program (portfolio), which includes developing and monitoring the City's cash flow model and developing long-term revenue and financing strategies and forecasts. The Analyst is subject to the direction and supervision of the Assistant. The Analyst assists the Assistant, in the purchase and sale of securities. The Analyst also prepares the quarterly report, and records daily all investment transactions as to the type of investment, amount, yield, and maturity. Cash flow projections are prepared as needed. In all circumstances, approval from the Director of Administrative Services is required before selling securities from the City's portfolio. The Analyst may also transfer no more than a total of $8 million a day from the City's general account to any one financial institution, without the prior approval of the Assistant Director of Administrative Services. No other person has authority to make investment transactions without the written authority of the Assistant Director of Administrative Services. USE OF BROKERS AND DEALERS The Administrative Services Department maintains a list of acceptable dealers. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position. A dealer must have a) At least three years experience operating with California municipalities; b) Maintain an inventory of trading securities of at least $10 million; and c) Be approved by the Assistant Administrative Services Director before being added to the City's list of approved dealers. In addition, individual traders or agents representing a dealer: A dealer will be removed from the list should there develop a history of problems to include: failure to deliver securities as promised, failure to honor transactions as quoted, or failure to provide 9 accurate information. SAFEKEEPING AND CUSTODY All securities shall be delivered to the City's safekeeping custodian and held in the name of the City of Palo Alto, with the exception of the following investments: a) Certificates of deposit, which may be held by the City itself. b) City shares in pooled investment funds, under contract. c) Mutual funds d) Local Agency Investment Fund (LAIF) POLICY REVIEW AND REPORTING ON INVESTMENTS Monthly, the Administrative Services Department will review performance in relation to Council- adopted Policy. Quarterly, the Department will report to Council on: its performance in comparison to policy, explain any variances from policy, provide any recommendations for policy changes, and discuss overall compliance with the City’s Investment Policy. In addition, the Department will provide Council with: a) A detailed list of all securities, investments and monies held by the City, and b) Report on the City’s ability to meet expenditure requirements over the next six months. Annually, the Administrative Services Department will present a Proposed Statement of Investment Policy, to include the delegation of investment authority, to the City Council for review during the annual budget process. All proposed changes in policy must be approved by the Council prior to implementation. Adopted by City Council October 22, 1984 Amended by City Council June 22, 1998 Monthly reporting effective January 1985 Amended by City Council June 28, 1999 Amended and Adopted by City Council June 24, 1985 Amended by City Council June 19, 2000 Amended by City Council December 2, 1985 Amended by City Council June 11, 2001 Amended by City Council June 23, 1986 Amended by City Council June 17, 2002 Amended by City Council June 22, 1987 Amended by City Council June 17, 2003 Amended by City Council August 8, 1988 Amended by City Council June 28, 2004 Amended by City Council November 28, 1988 Amended by City Council June 20, 2005 Amended by City Council June 26, 1989 Amended by City Council June 12, 2006 Amended by City Council May 14, 1990 Amended by City Council June 11, 2007 Amended by City Council June 24, 1991 Amended by City Council June 09, 2008 Amended by City Council June 22, 1992 Amended by City Council June 15, 2009 Amended by City Council June 23, 1993 Amended by City Council June 28, 2010 Amended by City Council June 20, 1994 Amended by City Council June 20, 2011 Amended by City Council June 19, 1995 Amended by City Council June 18, 2012 Amended by City Council June 24, 1996 Amended by City Council June 03, 2013 Amended by City Council June 23, 1997 Amended by City Council June 16, 2014 Amended by City Council January 26, 1998 Amended by City Council June 15, 2015 Amended by City Council June 13, 2016 10 11 APPENDIX A EXPLANATION OF PERMITTED INVESTMENTS 1. U.S. Government Securities – United States Treasury notes, bonds, bills, or certificates of indebtedness or those for which the faith and credit of the United States are pledged for the payment of principal and interest. 2. U.S. Government Agency Securities - U.S. Government Agency Obligations include the securities of the Federal National Mortgage Association (FNMA), Federal Land Banks (FLB), Federal Intermediate Credit Banks (FICB), banks for cooperatives, Federal Home Loan Banks (FHLB), Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Student Loan Marketing Association (SLMA), Small Business Administration (SBA), Federal Farm Credit (FFC), Federal Agricultural Mortgage Corporation (FAMC or FMAC), and Tennessee Valley Authority (TVA). Federal Agency securities are debt obligations that essentially result from lending programs of the Government. Federal agency securities differ from other types of securities, as well as among themselves. Their characteristics depend on the issuing agency. It is possible to distinguish three types of issues: (A) participation certificates (pooled securities), (B) Certificates of interest (pooled loans), (C) notes, bonds, and debentures. The securities of a few agencies are explicitly backed by the full faith and credit of the U.S. Government. All other issues purchased by the City have the de facto backing from the federal government, and it is highly unlikely that the government would let any agency default on its obligations. 3. Certificates of Deposit - A certificate of deposit (CDs) is a receipt for funds deposited in a bank, savings bank, or savings and loan association for a specified period of time at a specified rate of interest. Denominations are $250,000 and up. The first $250,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC), if the deposit is with a bank or savings bank, or the Savings Association Insurance Fund (SAIF), if the deposit is with a savings and loan. CDs with a face value in excess of $250,000 can be collateralized by U.S. Government Agency and Treasury Department securities or first mortgage loans. Government securities must be at least 110 percent of the face value of the CD collateralized in excess of the first $250,000. The value of first mortgages must be at least 150 percent of the face value of the CD balance insured in excess of the first $250,000. Generally, CDs are issued for more than 30 days and the maturity can be selected by the purchaser. 4. Bankers' Acceptance - A Banker's acceptance (BA) is a negotiable time draft or bill of exchange drawn on and accepted by a commercial bank. Acceptance of the draft irrevocably obligates the bank to pay the bearer the face amount of the draft at maturity. BAs are usually created to finance the import and export of goods, the shipment of goods within the United States and storage of readily marketable staple commodities. In over 70 years of usage in the United States, there has been no known instance of principal loss to any investor in BAs. In addition to the guarantee by the accepting bank, the transaction is identified with a specific commodity. Warehouse receipts verify that the pledged commodities exist, and, by 12 definition, these commodities are readily marketable. The sale of the underlying goods generates the necessary funds to liquidate the indebtedness. BAs enjoy marketability since the Federal Reserve Bank is authorized to buy and sell prime BAs with maturities of up to nine months. The Federal Reserve Bank enters into repurchase agreements in the normal course of open market operations with BA dealers. As are sold at a discount from par. An acceptance is tied to a specific loan transaction; therefore, the amount and maturity of the acceptance is fixed. 5. Commercial Paper - Commercial paper notes are unsecured promissory notes of industrial corporations, utilities, and bank holding companies. Interest is discounted from par and calculated using actual number of days on a 360-day year. The notes are in bearer form, with maturities up to 270 days selected by the purchaser, and denominations generally start at $100,000. There is a small secondary market for commercial paper notes and an investor may sell a note prior to maturity. Commercial paper notes are backed by unused lines of credit from major banks. Some issuer's notes are insured, while some are backed by irrevocable letters of credit from major banks. State law limits a City to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating by a nationally recognized rating service for the issuer's debentures. Cities may not invest more than 25 percent of idle cash in commercial paper. 6. Local Agency Investment Fund Demand Deposit - The Local Agency Investment Fund LAIF) was established by the State to enable treasurers to place funds in a pool for investments. The City is limited to an investment of the amount allowed by LAIF (currently $40 million). LAIF has been particularly beneficial to those jurisdictions with small portfolios. Palo Alto uses this fund for short-term investment, liquidity, and yield. 7. Repurchase Agreements - A Repurchase Agreement (REPOS) is not a security, but a contractual arrangement between a financial institution or dealer and an investor. The agreement normally can run for one or more days. The investor puts up funds for a certain number of days at a stated yield. In return, the investor takes title to a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid, plus interest. Usually, amounts are $500,000 or more, but some REPOS can be smaller. 8. Money Market Deposit Accounts - Money Market Deposit Accounts are market-sensitive bank accounts, which are available to depositors at any time, without penalty. The interest rate is generally comparable to rates on money market mutual funds, though any individual bank's rate may be higher or lower. These accounts are insured by the Federal Deposit Insurance Corporation or the Savings Association Insurance Fund. 13 9. Mutual Funds - Mutual funds are shares of beneficial interest issued by diversified management companies, as defined by section 23701 M of the Revenue and Taxation Code. To be eligible for investment, these funds must: a) Attain the highest ranking in the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services; or b) Have an investment advisor registered with the Securities and Exchange Commission with not less than five years experience investing in the securities and obligations, as authorized by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code, and with assets under management in excess of five hundred million dollars; and c) Invest solely in those securities and obligations authorized by Sections 53601 and 53635 of the California Government Code. Where the Investment Policy of the City of Palo Alto may be more restrictive than the State Code, the Policy authorizes investments in mutual funds that shall have minimal investment in securities otherwise restricted by the City's Policy. Minimal investment is defined as less than 5 percent of the mutual fund portfolio; and d) The purchase price of shares of beneficial interest purchased shall not include any commission that these companies may charge. e) Have a net asset value of $1.00. 10. Callable Securities and Multi-Step-ups: Callable securities are defined as fixed interest rate government agency securities that give the issuing agency the option of returning the invested funds at a specific point in time to the purchaser. Multi-step-ups are government agency securities in which the interest rate increases ("steps-up") at preset intervals, and which also have a callable option that allows the issuing agency to return the invested funds at a preset interval. Callable and multi-step-ups are permitted, provided that: the potential call dates are known at the time of purchase; the interest rates at which they “step-up” are known at the time of purchase; and the entire face value of the security is redeemed at the call date. 14 11. Negotiable Certificates of Deposit (NCD). NCDs are large-dollar-amount, short-term certificate of deposit. Such certificates are issued by large banks and bought mainly by corporations and institutional investors. They are payable either to the bearer or to the order of the depositor, and, being negotiable, they enjoy an active secondary market, where they trade in round lots of $5 million. Although they can be issued in any denomination from $100,000 up, the typical amount is $1 million. Also called a Jumbo Certificate of Deposit. State law prohibits the investment of local agency funds in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or any person with investment decision making authority in the administrative, manager’s, budget, auditor-controller’s, or treasurer’s offices of the local agency also serves on the board of directors, other credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificate of deposit. 12. Medium-Term Corporate Notes: Notes of a maximum of five years maturity issued by corporations organized and operating with the United States or by depository institutions licensed by the United States or any state and operating with the United States. According to California Code Section 53601, “Notes eligible for investment under this subdivision shall be rated in the rating category of “Double A” or its equivalent or better by a nationally recognized rating service. Purchase of medium-term notes may not exceed 30 percent of the agency’s surplus money which may be invested pursuant to this section.” 15 APPENDIX B EXPLANATION OF PROHIBITED INVESTMENTS 1. Reverse Repurchase Agreements: A Reverse Repurchase Agreement (Reverse REPO) is a contractual agreement by the investor (e.g. local agency) to post a security it owns as collateral, and a bank or dealer temporarily exchanges cash for this collateral, for a specific period of time, at an agreed-upon interest rate. During the period of the agreement, the local agency may use this cash for any purpose. At maturity, the securities are repurchased from the bank or dealer, plus interest. California law contains a number of restrictions on the use of Reverse REPOS by local agencies. 2. Derivatives: A derivative is a financial instrument created from, or whose value depends on (is derived from), the value of one or more underlying assets or indices. The term "derivative" refers to instruments or features, such as collateralized mortgage obligations, forwards, futures, currency and interest rate swaps, options, caps and floors. Except for those callable and multi-step-up securities as described under Permitted Investments, derivatives are prohibited. Certain derivative products have characteristics which could include high price volatility, liquid markets, products that are not market-tested, products that are highly leveraged, products requiring a high degree of sophistication to manage, and products that are difficult to value. According to California law, a local agency shall not invest any funds in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. 16 APPENDIX C GLOSSARY OF INVESTMENT TERMS AGENCIES: Federal agency and instrumentality securities. ASKED: The price at which securities are offered. BID: The price offered by a buyer of securities (when one sells securities, one asks for a bid). See “Offer”. BROKER: A broker brings buyers and sellers together so that he can earn a commission. COLLATERAL: Securities, evidence of deposit, or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMPREHENSIVE ANNUAL FINANCIAL REPORT (“CAFR”): The official annual report for the City of Palo Alto. It includes combined financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules that are necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: (1) delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is delivery of securities with an exchange of a signed receipt for the securities. DISCOUNT: The difference between the acquisition cost of a security and its value at maturity when quoted at lower than face value. A security that sells below original offering price shortly after sale, is also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and that are redeemed at maturity for full face value (e.g., U.S. Treasury Bills). DIVERSIFICATION: Dividing investment funds among a variety of securities that offer 17 independent returns. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (“FAMC” or “FMAC”): A federal agency established in 1988 to provide a secondary market for farm mortgage loans. Informally called Farmer Mac. FEDERAL CREDIT AGENCIES: Agencies of the Federal Government that were established to supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (“FDIC”): A federal agency that insures all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA) or time deposit such as a certificate of deposit (CD). FDIC insurance covers depositors' accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the date of the insured bank's closing, up to the insurance limit. The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank. The FDIC does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the full faith and credit of the United States government. The standard maximum deposit insurance amount is described as the “SMDIA” in FDIC regulations. The SMDIA is $250,000 per depositor, per insured bank. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS (“FHLB”): Government-sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing-related assets of its members, who must purchase stock in their District Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION (“FNMA”): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE (“FOMC”): The FOMC consists of seven members of the Federal Reserve Board and five of the 12 Federal Reserve Bank Presidents. The 18 President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of government securities in the open market, as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (“GNMA” or “Ginnie Mae”): Securities that influence the volume of bank credit that is guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. A security holder is protected by the full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FMHM mortgages. The term “pass-throughs” is often used to describe Ginnie Maes. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow, and reasonable amount can be done at those quotes. LOCAL GOVERNMENT AGENCY: A local government agency is any city, county, city and county, district, or other local governmental body or corporation, including the California State Universities (CSU) and University of California (UC) systems, K-12 schools and community colleges empowered to expend public funds. LOCAL GOVERNMENT INVESTMENT FUND (“LAIF”): Monies from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer (lender) to liquidate the underlying securities in the event of default by the seller (borrower). MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (e.g., bills, commercial paper, and bankers’ acceptances) are issued and traded. OFFER: The price asked by a seller of securities (when one buys securities, one asks for an offer). See “Asked” and “Bid”. 19 OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool. PORTFOLIO: A collection of securities that an investor holds. PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions, and monthly financial statements to the Federal Reserve Bank of New York, and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -- registered securities broker-dealers, banks, and a few unregulated firms. PRUDENT INVESTOR RULE: An investment standard cited in the California Government Code (CGC) Section 53600 et seq. Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. QUALIFIED PUBLIC DEPOSITORIES: A financial institution that: (1) does not claim exemption from the payment of any sales, compensating use, or ad valorem taxes under the laws of this state; (2) has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability; and (3) has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank‘s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES AND EXCHANGE COMMISSION: An agency created by Congress to administer securities legislation for the purpose of protecting investors in securities transactions. STRUCTURED NOTES: Notes issued by instrumentalities (e.g., FHLB, FNMA, SLMA) and by corporations, that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) in their debt structure. The market performance of structured notes is affected by fluctuating interest rates; the volatility of imbedded options; and shifts in the yield curve. 20 TIME CERTIFICATE OF DEPOSIT: A non-negotiable certificate of deposit, which cannot be sold prior to maturity. TREASURY BILLS: A non-interest bearing discount security that is issued by the U.S. Treasury to finance the national debt. Most T-bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of two to 10 years. YIELD: The rate of annual income return on an investment, expressed as a percentage. YIELD-TO-CALL (YTC): The rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to its nominal maturity date. YIELD-TO-MATURITY: The current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity. ZERO-COUPON SECURITIES: Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity. City of Palo Alto (ID # 8271) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Second Reading: Ordinance Expedited Permitting Procedures for E V Title: SECOND READING: Adoption of an Ordinance Requiring Expedited Permitting Procedures for Electric Vehicle Charging Stations (AB 1236) (FIRST READING: June 12, 2017 PASSED 9-0) From: City Manager Lead Department: City Clerk This Ordinance was first heard by the City Council on June 12, 2017, where it passed 9-0 without any changes. Attachments: Attachment A: Ordinance Not Yet Approved 170509 jb AY/2017-0509 Expedited Permitting Process for EVCS Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Setting Forth Procedures For Expediting Permitting Processing For Electric Vehicle Charging Systems The City Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. A. The State of California and the City of Palo Alto have consistently promoted and encouraged the use of fuel-efficient electric vehicles. B. The State of California recent adopted Assembly Bill 1236, which requires local agencies to adopt an ordinance that creates an expedited and streamlined permitting process for electric vehicle charging systems. C. Creation of an expedited, streamlined permitting process for electric vehicle charging stations would facilitate convenient charging of electric vehicles and help reduce the City’s reliance on environmentally damaging fossil fuels. SECTION 2. Section 16.14.440 of Chapter 16.14 (California Green Building Standards Code) of the Palo Alto Municipal Code is hereby added to read: 16.14.440. Expedited Permitting Process for Electric Vehicle Charging Stations (a) Definitions (1) “Electric vehicle charging station” or “charging station” means any level of electric vehicle supply equipment station that is designed and built in compliance with Article 625 of the California Electrical Code, as it reads on the effective date of this Chapter, and delivers electricity from a source outside an electric vehicle into a plug-in electric vehicle. (2) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, and written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (3) “Electronic submittal” means the utilization of one or more of the following: i. Electronic mail or email. ii. The internet. iii. Facsimile. (b) Expedited Permitting Process. Consistent with Government Code Section 65850.7, Not Yet Approved 170509 jb AY/2017-0509 Expedited Permitting Process for EVCS the Chief Building Official shall implement an expedited, streamlined permitting process for electric vehicle charging stations, and adopt a checklist of all requirements with which electric vehicle charging stations shall comply with in order to be eligible for expedited review. The expedited, streamlined permitting process and checklist may refer to the recommendations contained in the most current version of the “Plug-In Electric Vehicle Infrastructure Permitting Checklist” of the “Zero-Emission Vehicles in California: Community Readiness Guidebook” as published by the Governor’s Office of Planning and Research. The City’s adopted checklist shall be published on the City’s website. (c) Permit Application Processing (1) Prior to submitting an application for processing, the applicant shall verify that the installation of an electric vehicle charging station will not have specific, adverse impact to public health and safety and building occupants. Verification by the applicant includes but is not limited to: electrical system capacity and loads; electrical system wiring, bonding and overcurrent protection; building infrastructure affected by charging station equipment and associated conduits; areas of charging station equipment and vehicle parking. (2) A permit application that satisfies the information requirements in the City’s adopted checklist shall be deemed complete and be promptly processed. Upon confirmation by the Chief Building Official that the permit application and supporting documents meets the requirements of the City adopted checklist, and is consistent with all applicable laws and health and safety standards, the Chief Building Official shall, consistent with Government Code Section 65850.7, approve the application and issue all necessary permits. Such approval does not authorize an applicant to energize or utilize the electric vehicle charging station until approval is granted by the City. If the Chief Building Official determines that the permit application is incomplete, he or she shall issue a written correction notice to the applicant, detailing all deficiencies in the application and any additional information required to be eligible for expedited permit issuance. (3) The Chief Building Official shall not condition the approval for any electric vehicle charging station permit on the approval of such a system by an association, as that term is defined by Civil Code Section 4080. (4) Permit applications under this section may be submitted electronically, including electronic signatures on all forms, applications, and other documentation. (d) Technical Review. It is the intent of this section to encourage the installation of electric vehicle charging stations by removing obstacles to permitting for charging stations so long as the action does not supersede the Chief Building Official’s authority to address higher priority life-safety situations. If the Chief Building Official makes a finding based on substantial evidence that the electric vehicle charging station could have a specific adverse impact upon the public health or safety, as Not Yet Approved 170509 jb AY/2017-0509 Expedited Permitting Process for EVCS defined in this section, the City may require the applicant to apply for a use permit. SECTION 3. 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 4. CEQA. The City Council finds that this Ordinance falls under the California Environmental Quality Act (CEQA) exemption found in Title 14 California Code of Regulations Section 15061(b)(3) because it can be seen with certainty that there is no possibility it will have a significant negative effect on the environment. SECTION 5. Effective Date. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ______________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: ____________________________ City Manager ______________________________ Senior Deputy City Attorney ____________________________ Director of Development Services City of Palo Alto (ID # 8266) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: 305 N. California Avenue: New Mozart School of Music CUP Hearing Request Title: QUASI-JUDICIAL. 305 N. California Avenue [17PLN-00015]: Request for a Hearing on the Director's Tentative Denial of a Conditional Use Permit for Operation of the New Mozart School of Music at an Existing Church Facility. Environmental Assessment: In Accordance with the California Environmental Quality Act (CEQA) Guidelines Section 15270 CEQA Does Not Apply to Projects Which A Public Agency Disapproves. Zoning District: R-1 (10,000) From: City Manager Lead Department: Planning and Community Environment Recommendation: Staff recommends that the City Council deny the request for a Conditional Use Permit (CUP) for operation of the New Mozart School of Music at 305 N California Avenue based on the findings set forth in the Record of Land Use Action included in Attachment B. Executive Summary On January 10, 2017, New Mozart School of Music filed an application for a CUP to establish an independent music school for private and small group lessons, Monday through Saturday within an existing church building. This application was filed in response to a notice of violation and pending code enforcement case related to the establishment of the use without required permits. At the time the notice of violation was issued, staff believed a CUP application was a path forward for the applicant to seek approval of a music school at this location. Application processing, however, was delayed and the CUP ultimately denied because of a lack of information provided by the applicant to fully analyze the request. This denial was memorialized in the Director’s decision letter (Attachment C). City of Palo Alto Page 2 Subsequently, the applicant filed a request for hearing before the PTC, which was considered on June 14, 2017. When preparing the PTC report, staff realized the CUP was not an appropriate application to file because the proposed music school is properly considered a personal service use, which is not a permitted or conditionally permitted use in the residential district. While private educational facilities generally are conditionally permitted, this use does not meet the academic standard required to be considered a private educational facility, as defined in the zoning code. Based on the foregoing, the PTC was unable to approve the CUP and forwards a recommendation of denial to the City Council (Attachment B). Similarly, the City Council, based on current municipal regulations, is unable to approve this land use and the CUP request must be denied unless there is first a change to the City’s zoning ordinance. Code enforcement has been stayed pending resolution of this CUP application. As staff has now determined that the CUP is no longer an appropriate application type to remedy the documented violations, staff will resume its code enforcement authority to abate this use. Background The subject property is developed with a church that was established in 1948. At the time the church was established, religious institutions were a permitted use in the single-family residential zone. However, in 1951, in accordance with the adoption of Ordinance No. 1324, a more extensive zoning ordinance identified church uses as conditionally permitted uses in the single-family residential zone. Therefore, the church use at this property is considered a legal nonconforming use. The City of Palo Alto Code Enforcement Division received a complaint that the New Mozart School of Music was operating at the subject property without approval of a CUP. This complaint was substantiated and on February 22, 2016, the city issued a Notice of Violation requiring the music school cease operation or obtain the required approvals to allow the use. On December 16, 2016, a second Notice of Violation was issued. A CUP application was submitted the following month. Inspection of the property indicates there may be other unpermitted land uses taking place on the property. Follow up action on these uses and a Notice of Violation was prepared and issued to the property owner on June 1, 2017. The proposed use of the site in the subject application includes one room as an office, eight rooms for private (one-on-one lessons) and one room for group lessons of up to 10 students. Lessons would be available from noon to 9 pm on weekdays and 9 am to 5 pm on Saturdays with most lessons on weekdays beginning after 2 pm. The Applicant’s project description is included in Attachment E and the project plans are included in Attachment F. The request for a City of Palo Alto Page 3 Conditional Use Permit was tentatively denied by the Director of Planning and Community Environment on April 26, 2017. Following issuance of the tentative denial and in preparing the Planning and Transportation Commission report, staff re-evaluated a basic premise of this application. While private educational facilities are conditionally permitted in the R-1 district, the subject land use does not meet this definition and instead is more appropriately defined as a personal service, which is not a permitted or conditionally permitted land use in the district. Therefore, approval of the CUP would be a violation of the municipal code and cannot be approved. The Planning and Transportation Commission (PTC) held a public hearing on June 14, 2017 in response to the applicant’s request for a hearing. The PTC recommended denial of the project based on the findings included in the attached Record of Land Use Action (Attachment B) as well as public testimony received. Discussion The New Mozart School of Music is a personal service use in accordance with PAMC 18.04.030 (114)(G), which states that personal service uses include “music studios intended for an individual or small group of persons in a class.” Personal service uses are not an allowed use in the R-1 (10,000) zoning district in accordance with PAMC 18.12.030. Locating the subject personal service use at the church would therefore not be permissible. This information came to staff’s attention in preparing the staff report for the PTC hearing; however, the Director tentatively denied the request for a CUP based on the conclusion that the findings for approval of a CUP could not be made in the affirmative for other reasons, as discussed further below. PAMC 18.76.010, Conditional Use Permit, outlines the findings for the granting of approval of a Conditional Use Permit. To approve the project, the following findings must be made. Failure to make any one of the findings requires denial of the project. (1) The granting of the application will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience; (2) The project will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of this title (Zoning). With respect to the above findings, both staff and the PTC found that the proposed use did not met the zoning code and that continued operation of the subject facility would be detrimental to the general welfare. Inspection of the premises and a quick online search reveals several different land uses at the site, some appear church-related, others do not. Staff has repeatedly asked for a breakdown of the existing land uses and ancillary church uses operating at the City of Palo Alto Page 4 subject property to evaluate parking compliance and compliance with other code provisions. The burden for providing this information rests with the applicant. This information remains outstanding today and prevents the city from effectively determining whether there is sufficient parking to accommodate the range of land uses onsite. As noted, however, because personal service uses are not permitted or conditionally permitted in the R-1 zone, staff would be unable to make the required findings regardless of the information provided by the applicant. Moreover, the city has received correspondence from area residents documenting negative impacts to the general welfare related to the subject school and perhaps other non-church related activities or uses.1 Without the benefit of receiving the requested information, staff is unable to adequately analyze whether the subject application or other uses are creating this neighborhood impact. The applicant has provided a letter to the city that expresses a perspective different from those documented in the Director’s denial letter. The applicant’s perspective is summarized below: The project is not detrimental or injurious to property or improvements in the vicinity and is not detrimental to the public health, safety, general welfare or convenience. There has never been an issue with parking as most of the students are dropped off and picked up and also notes that traffic has never been an issue. The applicant states that it is only aware of one comment that has been received opposing the ongoing operation of the New Mozart School of Music. The applicant suggests that the New Mozart School of Music offers a significant benefit to the community as it offers after school music education to young students. Other illegal uses of the site are not relevant to this application and should not be the basis for its denial. While staff recognizes that the music school’s personal service use is likely beneficial to those that attend, their families and the community at large, the grounds for approving the CUP are based on other factors including whether the use is detrimental to the neighborhood and in compliance with the comprehensive plan and zoning code. As previously noted, the applicant failed to provide sufficient information to document those findings and the proposed use is not permitted in the R-1 zone. Environmental Review The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the 1 Separate and apart from the music school, the city’s code enforcement division is following up with the property owner to remedy the other outstanding issues at this location. City of Palo Alto Page 5 environmental regulations of the City. In accordance with Guideline Section 15270 CEQA does not apply to projects for which a public agency rejects or disapproves. Because the request for a CUP was denied, CEQA did not apply. To approve the project, additional analysis in accordance with CEQA would be required. Attachments: Attachment A: Location Map (PDF) Attachment B: Draft Record of Land Use Action (DOCX) Attachment C: CUP Tentative Denial Letter (PDF) Attachment D: Applicant's Request for Hearing (PDF) Attachment E: Project Description (PDF) Attachment F: Project Plans (DOCX) 63.7' 105.4' 81.0' 89.1' 24.8' 70.2' 105.0' 60.5' 105.4' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 80.0' 105.0' 80.0' 105.0' 50.0' 105.0' 50.0' 105.0' 71.5' 105.0' 49.0' 22.3' 91.6' 50.0' 112.5' 50.0' 112.5' 60.0' 112.5' 60.0' 112.5' 50.0' 112.5' 50.0' 112.5' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 69.3' 130.0' 50.9' 18.4' 105.2' 67.0' 142.3' 68.1' 130.0' 150.0' 67.5' 142.3' 24 51.6' 150 103.9' 105.0' 81.4' 22.3' 91.6' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 90.1' 93.9' 90.0' 98.3' 60.4' 98.3' 60.0' 105.4' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 60.0' 105.0' 64.0' 95.1' 64.0' 93.9' 64.0' 95.1' 96.2' 105.4' 103.9' 107.8' 28.3' 121.7' 50.2' 125.9' 50.0' 125.9' 50.2' 130.0' 50.0' 130.0' 50.2' 134.2' 50.0' 134.2' 64.2' 139.5' 64.0' 111.4' 9.1' 59.4' 121.7' 88.3' 82.0' 141.0' 82.0' 141.0' 82.0' 106.5' 82.0' 106.5' 278.9' 105.3' 278.9' 105.3' 21.2' 60.8' 60.2' 7.3'127.3' 60.2' 132.3' 10.0' 60.0' 144.0' 122.3' 60.2' 127.3' 60.0' 70.3' 135.4' 28.7' 64.2' 136.4' 67.0' 136.4' 67.7' 127.0' 67.0' 127.0' 67.1' 123.1'123.1' 51.3' 24.3' 109.0' 122.8' 108.8'122.5' 115.6' 133.3' 128.3' 60.2' 133.3' 60.2' 60.2' 50.0' 112.5' 50.0' 112.5' 50.0' 50.0' 112.5' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 60.0' 112.5' 60.0' 112.5' 50.0' 45.0' 11050 60.0' 105.0' 150.0' 100.0' 150.0' 100.0' 50.0' 200.0' 50.0' 200.0' 50.0' 200.0' 50.0' 200.0' 75.0' 150.0' 75.0' 150.0' 75.0' 150.0' 75.0' 150.0' 150.0' 50.0' 150.0' 50.0' 200.0' 50.0' 200.0' 50.0' 200.0' 50.0' 200.0' 50.0' 150.0' 50.0' 150.0' 50.0' 150.0' 50.0' 150.0' 50.0' 100.0' 50.0' 100.0' 50.0' 100.0' 50.0' 0.0' 0.0' 100.0' 150.0' 50.0' 150.0' 50.0' 150.0' 50.0' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 56.7' 112.9' 66.7' 112.5' 50.0' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5'42.3' 112.9' 52.3' 112.5' 107.5' 94.0'99.1' 94.4' 99.1' 18.5'12.0' 37.5' 82.1' 56.2' 82.1' 75.0'75.5' 75.3' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 62.0' 112.5' 62.0' 112.5' 139.4' 247.5' 139.4' 247.5' 57.5' 247.5' 57.5' 247.5' 139.5' 248.4' 160.0' 247.5' 170.5' 139.6' 138.6 89.0' 132.8' 85.5' 108.2' 40.7'16.6' 108.2' 85.5' 54.0' 139.5' 142.9' 139.6' 80.0' 139.6' 80.0' 139.5' 101.5'139.5' 101.5' 209.6' 97.5' 70.0' 22.5' 139.6' 120.0' 139.6' 127.5' 139.6' 127.5' 70.0' 150.0' 70.0' 150.0' 69.5' 247.5' 69.5' 247.5' 140.8' 82.4' 139.5' 65.1' 139.5' 64.0' 139.5' 64.0' 50.0' 847.8' 50.0' 147.8' 167.8' 50.0' 167.8' 6.1' 139.5' 6.1' 139.5' 91.0' 9 61.0' 56.7' 112.9' 66.7' 112.5' 60.0' 112.5' 60.0' 112.5' 73.0' 56.3'68.0' 56.5' 68.0' 28.8' 7.1' 27.5' 110.0' 56.5' 27.5' 109.7' 84.0' 51.3' 45.3'47.3' 45.5' 50.3' 41.3'466 41.5' 45.3' 8.2' 45.3'43.0' 45.3'43.0' 45.3' 3'40 92.3' 82.1' 52.3' 60.2' 60.4' 52.5' 87.4'87.4' 112.5' 50.0' 112.5' SANTA RITA AVENU E W ASHIN GTO N AVENUE B RYANT STREET W AVERLEY OAKS (PVT) NORTH CALIFORNIA AVENUE NORTH CALIFORNIA AVENUE WA VERLEY STREET SO UTH C OURT R BRYA NT STREET NORTH CALIFORNIA AVE N UE This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Staff-Coverage Districts, Project Review Special Setback Near Creek (SCVWD) abc Known Structures Tree (TR) Zone Districts abc Zone District Notes Curb Edge abc Dimensions (AP) Water Feature Railroad abc Zone District Labels 0' 145' 305 N California CITY O F PALO A L TO IN C O R P O RATE 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 chodgki, 2017-05-31 15:14:41 (\\cc-maps\gis$\gis\admin\Personal\Planning.mdb) Attachment B APPROVAL NO. _______ RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 305 N CALIFORNIA AVENUE: CONDITIONAL USE PERMIT [FILE NO. 17PLN-00015] On ______, 2017, the City Council upheld the Planning and Transportation Commission’s recommendation to deny the applicant’s request for approval of a Conditional Use Permit to allow for operation of the New Mozart School of Music Monday through Saturday at the First Baptist Church located at 305 N California Avenue, making the following findings, determination and declarations: SECTION 1. BACKGROUND. The City Council of the City of Palo Alto (“City Council”) finds, determines, and declares as follows: A. On January 10, 2017, The New Mozart School of Music applied for a Conditional Use Permit to allow for operation of the music school at the existing First Baptist Church Monday through Saturday. B. The proposed use is defined as a personal service land use in accordance with PAMC Section 18.04.030 (114)(G). This land use is not identified as a permitted or conditionally permitted land use in the R-1 zoning district in accordance with PAMC Section 18.12.030. C. Following staff review, the Director of Planning considered and proposed denial of the Conditional Use Permit application on April 26, 2017. D. Following a timely request for hearing received on May 9, 2017 the Planning and Transportation Commission (Commission) reviewed the project and recommended denial of the project to City Council. E. On_______, 2017, the City Council reviewed the request. After hearing public testimony, the Council voted to deny the project. SECTION 2. ENVIRONMENTAL REVIEW. The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. In accordance with Guideline Section 15270 CEQA does not apply to projects for which a public agency rejects or disapproves. Because the request for a CUP was denied, CEQA did not apply. SECTION 3. CONDITIONAL USE PERMIT FINDINGS. The proposed use does not comply with the Findings for a Conditional Use Permit as required in Chapter 18.76.010 of the PAMC. Finding #1: The granting of the application will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience. This finding cannot be made in the affirmative. The request for a conditional use permit for the proposed personal service land use (music studio for individual or group lessons) is not a permitted or conditionally permitted land use in the subject R-1 (10,000) Zone District. There is no procedure that exists in the municipal code as presently codified that would allow a CUP to be granted authorizing the proposed use in contravention to the municipal code regulations. Allowing an unpermitted and illegal land use to continue operation has the immediate effect of being detrimental and injurious to property and improvements in the vicinity and is detrimental to the public health, safety and general welfare. The R-1 single family residential district is intended to create, preserve, and enhance areas suitable for detached dwellings with a strong presence of nature and with open area affording maximum privacy and opportunities for outdoor living and children's play. Establishing the proposed land use concentrates a commercial activity and its associated deleterious impacts into a residential neighborhood and nearby deprives owners and occupants from the quiet enjoyment expected from a residential zoning district. Finding #2: The project will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of this title (Zoning). This finding cannot be made in the affirmative. The subject property is zoned R-1 (10,000) and the Comprehensive Plan land use designation is Single Family Residential. Surrounding uses are single-family residential. Personal service use is not a permissible use in the R-1(10,000) Zone District. Therefore the project is not consistent with Title 18 of the municipal code. SECTION 4. VOTE. The requisite findings described in PAMC 18.52(c)(2) for approval of a conditional use permit cannot be made for the proposed project. This decision is effective immediately upon adoption. PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ ____________________________ Senior Assistant City Attorney Director of Planning and Community Environment Law Offices Of Peter N. Brewer Telephone 2501 park blvd., 2nd fl. Fax (650) 327-2900 Palo Alto, California 94306 (650) 327-5959 www.BrewerFirm.com May 9, 2017 Claire Hodgkins Associate Planner City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Re: 305 N. California – Mozart School of Music – Request for Hearing Pursuant to PAMC Section 18.77.070(b(4) Dear Ms. Hodgkins: As per your email we are submitting this letter on behalf of our client, the Mozart School of Music, to request a hearing / appeal your denial of our Conditional Use Permit application. The basis for our appeal is that the application is not detrimental or injurious to property or improvements in the vicinity and is not detrimental to the public health, safety, general welfare or convenience. The Mozart School of Music is operated out of some of the classrooms currently existing at the First Baptist Church located at 305 N. California, Palo Alto, California. The school primarily offers after-school music lessons to Palo Alto children. The school uses ten classrooms at First Baptist. One is used as the office. Nine are music lesson rooms. Eight of the nine are for private lessons and one is used for group classes. At any given time there is at most one student and one teacher in the private classroom. Thus, at maximum capacity, there are 16 people in the building for private lessons including teachers and students. In group classes, there is a maximum capacity is 10 students. Number of classes the school offers vary every semester. This session the school has fifteen group classes with between four and ten students in each class. These group classes meet only one at a time as there is only one group classroom. Lessons are available from noon to 9 pm during weekdays and 9 am to 5 pm on Saturdays. The school is closed on Sundays. Though lessons are available from 12 pm, since the school caters to children, lessons mostly occur starting around 2 pm. In addition, not all rooms are used all at the same time. May 9, 2017 Page 2 Normally, we have less than 20 people on site at any one time, but the maximum would be 26 and only when each private lesson and a full group lesson are all occurring at the same time. That is very rare. There has never been an issue with parking as most of the students are dropped off and picked up. Traffic has also never been an issue. The Mozart School of Music offers a significant benefit to the community as it offers after school music education to young students, most of whom live in Palo Alto. The school is not detrimental to public health, safety, general welfare or convenience. The school has received only one neighbor complaint relating to its operation and that was a complaint about placement of the trash containers for collection and the school complied with that request. The school is unaware of any other complaints from any other neighbors that would suggest that the operation is detrimental to public health, safety, general welfare or convenience. The school is located within the First Baptist Church which is located in a residential zone. Private Educational Facilities are allowed to operate in and R-1 district with a Conditional Use Permit. Palo Alto Municipal Code §18.12.030. Allowing the school to continue to operate is consistent with the Palo Alto Comprehensive Plan and Title 18 of the Palo Alto Municipal Code as the school serves its own and additional residential neighborhoods by offering music education to students in Palo Alto in a way that is not disruptive of the residential nature of the neighborhood and actual enhances the neighborhood by provided needed services. The only potentially problematic issue is parking. As noted in the initial application, the School is and always has been willing to consent to any reasonable parking restrictions or to limiting the number of concurrent students it services to comply with the City’s parking regulations. The space leased by the school occupies a total of 1,712 square feet. Currently there are 11 parking spots on the property. Based on the square footage of the leased space, 11 parking spots are sufficient and more than meet current standards. Current standards are 1 space per 200 square feet, leaving two additional unused spaces. There is little if any concurrent usage during weekday school hours. The concurrent uses were addressed in an attachment to the initial application. The School is and was amenable to limiting the number of students on site during concurrent uses such that parking regulations are not violated. The school submitted sufficient information with the application, including sketches of the interior of the building and the parking, as requested by Planning Staff. Thereafter Planning Staff requested additional drawings to scale which were also prepared and submitted showing the potential for additional parking. As part of the submittal, the school provided a list of all known concurrent uses and demonstrated that parking was sufficient during most operating hours and expressed a willingness to agree to further restrictions during hours when parking was not sufficient. The May 9, 2017 Page 3 school also offered to reduce its overall classroom space if that would bring the school into compliance with the parking restrictions. It appears that all of this evidence and all of these offers were ignored, or at least not pursued by Planning Staff. Other illegal uses of the site are not relevant to this application and should not be the basis for its denial. The City has within its power to order that all other non-conforming uses be stopped and instead of exercising that power has erroneously punished the school when the school is trying to bring itself into compliance. There have been relatively minimal complaints over the long history of the school operation and the school serves a unique and valued service to the community. If the parking issues are non-compliant due to illegal uses by third parties, then the City should address those issues rather than penalize the school. There is, based on the forgoing, good cause for an appeal / hearing on this matter. Very truly yours, Charles S. Bronitsky CSB: CONCURRENT USE The total square footage used by the New Mozart School of Music is 1,712. At the requisite one parking space per 200 square feet, the total parking required is 9 spaces. There are 11 spaces onsite for parking. Concurrent use is generally not in conflict with the operation of the school. In instances where there is a conflict, the School will modify its schedule to avoid conflict so that it is not in violation of the parking requirement. The specific concurrent uses are as follows: Sunday Worship – 10am Sundays The School is closed on Sundays Sunday School – 10am Sundays The School is closed on Sundays After Church Coffee – 11am Sundays The School is closed on Sundays Adult Forum – 11:15am Sundays The School is closed on Sundays Faith Zone – 4:30 – 6:30 Thursdays The 2 extra spaces are adequate to address the additional parking needs of the Faith Zone Choir – 7:30 Thursdays The School will not hold group classes on Thursdays after 7:30 once current classes are concluded Open for Prayer and Meditation 11am – 1pm Monday – Friday The School commences instruction between 2pm and 3:30 pm on weekdays so there is no conflict Attachment F Project Plans Hardcopies of project plans are provided to Councilmembers. These plans are available to the public online and by visiting the Planning and Community Environmental Department on the 5th floor of City Hall at 250 Hamilton Avenue. Directions to review Project plans online: 1. Go to: https://paloalto.buildingeye.com/planning 2. Search for “305 California”; scan to Bryant and California Avenue and open record by clicking on the green dot 3. Review the record details and open the “more details” option 4. Use the “Records Info” drop down menu and select “Attachments” 5. Open the attachment named “2017-0417 Final Submitted Plans” City of Palo Alto (ID # 8198) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: Contract with Canopy Title: Approval of a Contract With Canopy for $395,130 for a Three-Year Term to Support Palo Alto's Urban Forestry Programs, Assist With Implementation of Programs Within the Urban Forest Master Plan, Improve Canopy in South Palo Alto, and Educate the Public About Trees 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 three-year contract with Canopy (Attachment A) in an amount of $131,710 per year for a total contract amount not to exceed $395,130 to support Palo Alto’s urban forestry programs, assist with implementation of Urban Forest Master Plan programs, improve canopy in south Palo Alto and educate the public on trees. Background Canopy was created in 1996 to support Palo Alto’s Urban Forestry Section and engage residents through tree and tree care education. Since becoming an independent 501(c)3 non-profit corporation in 2002, Canopy greatly expanded its programs of tree planning and planting, stewardship, and hands-on learning and environmental education. Since the early 2000s, the City has contracted with Canopy; their main focus being assisting the City with projects and outreach to create a healthy and sustainable urban forest. In 2014 City Council approved a three-year, sole source contract with Canopy (CMR #4468) to support Palo Alto’s urban forestry programs by serving as a comprehensive information source on trees. During the contract term, the City’s Urban Forest Master Plan (UFMP) was adopted and two contract amendments City of Palo Alto Page 2 were executed (CMRs #6021 and #7391) to add scope and time. The contract with Canopy will expire on June 30, 2017. Discussion Staff recommends that Council approve a new three-year contract with Canopy, ensuring the level of serivce the community has come to expect continues, while enhancing and expanding the basic services and outreach programs delivered in previous contracts and completing special projects to achieve UFMP programmatic goals. Basic Services Serving as a comprehensive information source on trees; Educating and motivating residents to plant, steward, and celebrate trees; Assisting in planning and performance of UFMP and routine urban forestry programs; Advocating for Palo Alto’s urban forest; Conducting an assessment of recently planted street trees; Administering Palo Alto Utility Department’s Right Tree in the Right Place Program (RTRP); and Assisting with a locally-sourced carbon credit program. Urban Forest Master Plan Programs 1.A.ii., Preferred and Restricted Species List; 1.A.iii and 2.C.iii., continued development of site-specific species selection protocols to complement the Preferred and Restricted Species List; 4.G.iii., engaging the community as partners in stewardship through open portals for data entry; and 3.A.i. and 3.A.iii., timely distribution of UFMP program updates to the public via media sites. Special Project Begin reducing the difference in canopy between north and south Palo Alto by implementing the strategy (developed in UFMP Year-One Program 1.D.i.) to increase the number of trees in south Palo Alto by 1,000 over the next three City of Palo Alto Page 3 years. Canopy will host several community tree plantings each year, planting at least 300 trees on public or private property over the contract term. At $48,500 annually, Canopy’s cost for planting and caring for 300 trees through the establishment period is nearly half that of the City’s. In addition, Canopy will be responsible for vetting planting sites, coordinating with property owners, creating species lists, purchasing trees and associated planting materials, coordinating their delivery to Palo Alto and administering a crowdsourcing platform. Education wise, outreach and marketing materials (species selection, proper planting techniques, post- planting care, and administering crowdsourced software) will be created and distributed to property owners. The newly planted trees will be cataloged by property owners through the crowdsourcing application. Canopy will provide quarterly reports on all services in this contract, providing quantitative evidence of program and outreach successes to the City of Palo Alto. Resource Impact Funding for this contract is available in the Public Works, Community Services, and Utilities Departments FY 2018 Operating budgets pending adoption by the Council as part of the June 27, 2017 agenda. Subsequent years of the contract are subject to Council approval of annual operating budgets. Policy Implications This recommendation does not represent any change to existing City policies. Environmental Review (If Applicable) The recommended action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(h) (maintenance of existing landscape). Attachments: Canopy-C18168587-Final CITY OF PALO ALTO CONTRACT NO. C18168587 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND CANOPY FOR PROFESSIONAL SERVICES This Agreement is entered into on this 27th day of June, 2017, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CANOPY, a California corporation, located at 3921 East Bayshore Road, Palo Alto, CA 94303 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to create and maintain a healthy and sustainable urban forest and desires to engage a consultant to support Palo Alto’s urban forestry programs, implement programs of the Urban Forest Master Plan, improve canopy equity between north and south Palo Alto, and educate the public about trees in connection with the Project (“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. D. This Agreement has been awarded as a sole source agreement based on the CITY’s determination that there is no adequate substitute or equivalent provider of the Services. 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 July 1, 2017 through June 30, 2020 unless terminated earlier pursuant to Section 19 of this Agreement. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 2 SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Three Hundred Ninety Five Thousand One Hundred Thirty Dollars ($395,130). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit quarterly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C-1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 3 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. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Catherine Martineau as the project manager to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 4 CITY’s project manager is Walter Passmore, Public Works Department, Operations Trees Division, 3201 East Bayshore Road., Palo Alto, CA 94303, Telephone: 650-496-5986. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 5 attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrent- ly with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) 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. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 6 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 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 DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 7 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally 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, DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 8 invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 This Project is not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. OR DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 9 26.1 CONSULTANT is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. CONSULTANT shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. 26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any contract for public works construction, alteration, demolition, repair or maintenance. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 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 DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 10 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: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 11 CONTRACT No. C18168587 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 (Contract over $85k) APPROVED AS TO FORM: City Attorney or designee (Contract over $25k) CANOPY Officer 1 By: Name: Title: Officer 2 (Required for Corp. or LLC) By: Name: Title: Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: HOURLY RATE SCHEDULE EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Executive Director Catherine Martineau Professional Services Rev. April 27, 2016 12 EXHIBIT “A” SCOPE OF SERVICES CONSULTANT will serve as a comprehensive information source about Palo Alto trees and educate, motivate, and assist City residents and the City to plant, care for, and celebrate trees throughout Palo Alto. 1.1 The responsibilities of the City will include the following: City Arborists, Urban Forestry and Community Services Department staff will coordinate and cooperate with CONSULTANT to facilitate special events such as the annual Mayor’s tree planting, Arbor Day event(s) public right-of-way plantings, Young Tree Care Survey, Right Tree Right Place program and City-wide educational events. City staff will be responsible for locating and preparing planting sites for these events. 1.2 CONSULTANT’s Responsibilities. CONSULTANT shall perform all of the following services, as further detailed in the Action Plans below: A. Serve as a comprehensive information source about Palo Alto’s trees. B. Educate and motivate Palo Alto residents to plant, steward, and celebrate trees. C. Maintain an organization with a credible, professional identity and high public visibility in support of the Palo Alto urban forest. D. Assist the City of Palo Alto in its planning and performance of routine urban forestry programs on an ongoing basis and special projects associated with the Urban Forest Master Plan (UFMP), specified herein. E. Advocate for Palo Alto’s urban forest. F. Conduct an assessment of recently planted street trees and assist with a locally-sourced carbon credit project. G. Administer Palo Alto Utility Department’s Right Tree in the Right Place Program (RTRP). Action Plans CONSULTANT shall perform the services as follows: Goal A: Serve as a comprehensive information source about Palo Alto’s trees. 1. Perform timely updates to the CONSULTANT’s website www.canopy.org. Report quarterly on the number of visits to the website, total number of page views, and traffic numbers by page title. Provide the percentage of traffic generated through key word searches. 2. Operate and publicize CONSULTANT’s information and referral “Tree Hotline” where people can phone in or email to ask specific questions about trees. Report quarterly on the number of calls fielded by CONSULTANT’s staff. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 13 3. Maintain an online, searchable arborist list of ISA Certified Arborists for distribution to the community. 4. Maintain and enhance the CONSULTANT’s online Tree Library. 5. Continue development of the “Preferred and Restricted Species List” (Program 1.A.ii of the UFMP). 6. Continue developing site specific species selection protocols to complement the “Preferred and Restricted Species List” such as including a list of tree species acceptable for use in areas where recycled water is or may be used for irrigation (Program 1.A.iii, and 2.C.iii of the UFMP). Goal B: Educate and motivate Palo Alto residents to plant, care for, and celebrate trees. 1. Prepare, plan and schedule at least eleven educational tree walks, including a quarterly ‘themed’ tree walk in various neighborhoods led by knowledgeable arborists. Update guideline materials for lead arborists and CONSULTANT representatives. Report quarterly on the number of walks conducted, walk locations, and number of attendees. 2. Prepare and schedule at least three public educational programs about trees and/or tree care each year including Arbor Day, Planting Leader Training, Tree Care Training and current relevant topics. 3. Partner with the City of Palo Alto Utilities (CPAU) to provide educational materials at area community fairs and events and produce new material on subjects such as tree maintenance, mistakes to avoid, and watering guidelines as needed. 4. Assist the Public Works, Urban Forestry Section by distributing CONSULTANT’s “Young Tree Care” pamphlet to residents and businesses where new trees were planted. 5. Mail the “Save Our Water and Our Trees” reminder postcard at least once during each summer to each resident with a street tree planted in the last five years. Post the “Save Our Water and Our Trees” banner in a prominent area of the City. 6. Publish and distribute an annual report to the community. Publish monthly TreEnews electronic newsletters. Report quarterly on the number of issues published and types of social media utilized to host TreEnews. 7. Use community events in the field as opportunities to educate participants in proper tree planting and maintenance techniques. Provide volunteer field services for up to 100 public trees. These services may include planting of new trees and care for young trees. 8. Serve as a liaison to the Palo Alto School District (PAUSD) to increase awareness of the value of the trees on school district land, which could include educational events for students. 9. Organize the annual Mayor’s Tree Planting event. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 14 10. Conduct at least two community plantings per year with trees funded by the City. Regularly inspect and report problems or concerns about the trees in a format compatible with Tree Plotter, the City’s urban forestry crowdsourcing data platform. 11. Continue assisting the City in developing open portals for data entry as a way of engaging the community as partners in stewardship and improving data currency and accuracy; UFMP Program 4.G.iii. 12. Report quarterly on programs including but not limited to tree planting, tree care and education. Provide details on activities, volunteer numbers and hours, educational materials, youth and adult education and outreach. Goal C: Maintain an organization with a credible, professional identity and high visibility in support of the Palo Alto urban forest. Leverage CPA funding to CONSULTANT with funding from other sources. 1. Conduct donor and membership recruitment to leverage this contract and ensure a broad base of support for CONSULTANT and its activities. 2. Seek participation and support from the commercial and industrial community. 3. Maintain and implement communications strategies. 4. Continue to seek other financial support (e.g., grants) outside of City government to provide increased services to the community and to increase public involvement. 5. Report quarterly on the governance, operations and capacity building to engage new member and increase efficiency. Goal D: Assist the City of Palo Alto in its planning and performance of routine urban forestry programs on an ongoing basis and with special projects associated with the UFMP. 1. Continue participating in the development of the UFMP. 2. Distribute timely updates about UFMP programs and initiatives to the public via CONSULTANT media sites; Programs 3.A.i. and 3.A.iii of the UFMP. 3. Implement a strategy to increase the number of trees in south Palo Alto by 1,000 over the next three years, including at least five community tree plantings a year for a total of at least 300 trees over the period; Program 1.D.i. of the UFMP. CONSULTANT’s responsibilities will include: a. Conducting at least 5 community tree planting events. Identifying all planting sites Contacting property owners Creating species lists Securing trees at nurseries and coordinating their delivery to Palo Alto Field verifying planting sites and notifying Underground Service Alert (USA) prior to excavation Purchasing trees and associated planting materials (stakes and ties) DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 15 Creating and distributing outreach and/or marketing materials to property owners Educating property owners about tree planting including species selection, proper planting techniques, post-planting care, and entering the tree information into the crowdsourced software system Planting the trees Collecting all refuse materials from planting sites and delivering them to a City-designated pickup site Caring for the newly planted trees through the establishment period b. Administering the City’s crowdsource software platform, Tree Plotter, to encourage private property owners to enter information about newly planted trees and catalog trees not planted through community tree planting events. The City’s responsibilities will include: Compiling south Palo Alto right-of-way planting site information and distributing it to CONSULTANT’s Project Coordinator in a timely fashion Staging and watering nursery trees from nursery delivery until planting day Delivering ‘No Parking’ signs and mulch to a pre-designated staging area, and trees to planting sites Picking up refuse materials (nursery stakes, buckets, extra soil, turf and grass) at a pre-designated site post-planting Assisting with information about trees planted on private property submitted as part of required landscape plans Goal E: Advocate for Palo Alto’s Urban Forest. 1. Provide comment to City departments, City Council and the public upon review of policies, ordinances, and manuals that may affect the urban forest. 2. Issue letters of support or concern on behalf of City, at City’s request, for projects that positively or negatively impact the City’s trees. 3. Attend Council meetings and provide comments for projects involving practices that may impact the City’s CONSULTANT cover. 4. Provide comments to news organizations and/or media outlets about trees in Palo Alto when appropriate. 5. Submit quarterly reports to City on CONSULTANT’s consulting and advocacy activities related to projects involving the City’s urban forest. Goal F: Conduct an assessment of the health of recently planted City trees and assist with a locally-sourced carbon credit project. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 16 1. Conduct an annual City-wide survey of newly planted street trees and report this information to the Public Works Department and residents. 2. Organize and train a cadre of volunteers to monitor the condition of young trees, and perform simple maintenance tasks on site. 3. Work with the City to integrate survey data into the crowdsourced data platform. 4. Estimate costs, determine co-benefits, identify partnership opportunities, leverage funding and quantify carbon sequestration for a locally-sourced carbon credit project within the Urban Forest Registry framework. Goal G: Administer the City Utilities Department’s (“City Utilities”) Right Tree in the Right Place Program (RTRP). 1. Continue to advertise, respond to, and screen inquiries about the RTRP program before forwarding requests to the Public Works Department (“PW”) for inspection. 2. Administer the process for applicants accepted by the Department of Public Works to participate in the RTRP program, including acceptance notification, removal confirmation, and stump grinding and replanting information at each location. Promote replanting where suitable. 3. Review applications and forward paperwork to City Utilities for applicant reimbursement. 4. Partner with City Utilities and PW Tree Division to extend the RTRP program to businesses. 5. Work with City Utilities to explore growth opportunities for the RTRP program such as exploring greenhouse gas and energy efficiency initiatives, local tree ordinances, and solar access requirements. 6. Provide quarterly summary spreadsheet reports of RTRP activities to City Utilities, and report on information distributed during the City Utility Department’s sponsored events or programs. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 17 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. Milestones Completion Date From NTP Goal A: Serve as a comprehensive information source Ongoing about Palo Alto trees. Goal B: Educate and motivate Palo Alto residents to plant, care for, Ongoing and celebrate trees. Goal C: Maintain an organization with a credible, professional identity Ongoing and high public visibility in support of the Palo Alto urban forest. Goal D: Assist the City of Palo Alto in its planning and performance of Ongoing routine urban forestry programs on an ongoing basis and with special projects associated with the UFMP. Goal E: Advocate for Palo Alto’s urban forest. Ongoing Goal F: Conduct an assessment of the health of recently planted street Ongoing trees and assist with a locally-sourced carbon credit project. Goal G: Administer the Utilities Department’s Right Tree Ongoing in the Right Place Program (RTRP). Special Projects: Goal D.3: Implement a strategy to increase the number of trees in Ongoing south Palo Alto by 1,000 over the next three years, including at least five community tree plantings a year for a total of at least 300 CONSULTANT-planted trees over the contract term. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 18 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE NOT TO EXCEED AMOUNT 1: Basic Services (Individual tasks detailed in Exhibit A) $83,210 Goal A: Serve as a comprehensive information source about Palo Alto trees. Goal B: Educate and motivate Palo Alto residents to plant, care for, and celebrate trees. Goal C: Maintain an organization with a credible, professional identity and high public visibility in support of the Palo Alto urban forest. Goal D: Assist the City of Palo Alto in its planning and performance of routine urban forestry programs on an ongoing basis and with special projects associated with the UFMP. Goal E: Advocate for Palo Alto’s urban forest. Goal F: Conduct an assessment of the health of recently planted street trees and assist with a locally-sourced carbon credit project. Goal G: Administer the Utilities Department’s Right Tree in the Right Place Program (RTRP). 2: Special Projects - Program 1.D.i. of the UFMP $48,500 (Individual tasks detailed in Exhibit A) Goal D.3: Implement a strategy to increase the number of trees in south Palo Alto by 1,000 over the next three years, including at least five community tree plantings a year for a total of at least 300 CONSULTANT-planted trees over the contract term. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 19 Sub-total Basic Services $131,710 Reimbursable Expenses $0 Total Basic Services and Reimbursable expenses $131,710 Additional Services (Not to Exceed) $0 Maximum Total Compensation per contract year $131,710 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 20 EXHIBIT “C-1” SCHEDULE OF RATES Title Hourly Rate Executive Director $135 Program Director $80 Senior Development Specialist $80 Development Manager $55 Education Manager $55 Community Forestry Coordinator $55 Community Forestry Coordinator $55 Program Operations Manager $55 Interns/ Youth Staff $25 DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 21 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 OCCURRENC E AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 22 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. 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. DocuSign Envelope ID: 40E341BC-B286-413B-A13F-F70B885E0BC6 Professional Services Rev. April 27, 2016 23 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: 40E341BC-B286-413B-A13F-F70B885E0BC6 City of Palo Alto (ID # 8186) City Council Staff Report Report Type: Action Items Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: FY 2018 Budget Adoption Title: PUBLIC HEARING: Adoption of Budget Ordinance for Fiscal Year 2018, Including Adoption of Operating and Capital Budgets and Municipal Fee Schedule; Adoption of the Following Resolutions: 1) Approving the FY 2018 Electric Financial Plan, 2) Adopting an Electric Rate Increase and Amending Electric Rate Schedules E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU, and E-14, 3) Approving the FY 2018 Gas Utility Financial Plan, 4) Approving the FY 2018 Wastewater Collection Utility Financial Plan, 5) Adopting a Dark Fiber Rate Increase and Amending Dark Fiber Rate Schedules EDF-1 and EDF-2, 6) Approving the FY 2018 Water Utility Financial Plan, and 7) Amending Resolution 9671 to Modify Permit Fees for the Downtown Residential Preferential Parking (RPP) Program and Finding the Action Exempt From the California Environmental Quality Act; and Amending Salary Schedules for the Management and Professional Group, the Services Employees International Union, and the Limited Hourly Group From: City Manager Lead Department: Administrative Services Recommendation Staff and the Finance Committee Recommend that the City Council approve and adopt the following: 1. Budget Amendment Ordinance (Attachment A), which includes: a. City Manager’s Fiscal Year 2018 Proposed Operating and Capital budgets, previously distributed at the April 25th City Council meeting (Attachment A, Exhibit 1); b. Amendments to the City Manager’s Fiscal Year 2018 Proposed Operating and Capital Budget (Attachment A, Exhibit 2); c. Fiscal Year 2018 City Table of Organization (Attachment A, Exhibit 2); d. Fiscal Year 2018 Proposed Municipal Fee Changes (Attachment A, Exhibit 3). 2. A Resolution of the City Council of the City of Palo Alto approving the Fiscal Year 2018 Electric Financial Plan and proposing several transfers for FY 2018 (Attachments B & C); City of Palo Alto Page 2 3. A Resolution of the City Council of the City of Palo Alto amending Rate Schedules E-1 (Residential Electric Service), E-2 (Small Non-Residential Electric Service), E-2-G (Small Non-Residential Green Power Electric Service), E-4 (Medium Non-Residential Electric Service), E-4-G (Medium Non- Residential Green Power Electric Service), E-4 TOU (Medium Non-Residential Time of Use Electric Service), E-7 (Large Non-Residential Electric Service), E-7-G (Large Non-Residential Green Power Electric Service), E-7 TOU (Large Non-Residential Time of Use Electric Service), and E-14 (Street Lights) (Attachments D & E); 4. A Resolution of the City Council of the City of Palo Alto approving the Fiscal Year 2018 Gas Utility Financial Plan (Attachments F & G); 5. A Resolution of the City Council of the City of Palo Alto approving the Fiscal Year 2018 Wastewater Collection Utility Financial Plan (Attachments H & I); 6. A Resolution of the City Council of the City of Palo Alto increasing the Dark Fiber Rates by 3.5% effective July 1, 2017 by Amending the EDF-1 and EDF-2 Rate Schedules (Attachments J & K); 7. A Resolution of the City Council of the City of Palo Alto approving the Fiscal Year 2018 Water Utility Financial Plan and a transfer of $1.877 million from the Water Rate Stabilization Reserve to the Water Operations Reserve (Attachments L & M); and 8. A Resolution Amending Resolution 9671 to Modify Permit Fees for the Downtown Residential Preferential Parking (RPP) Program and finding the Action Exempt from the California Environmental Quality Act (Attachment N). 9. Approve Amending Salary Schedules for: a. Management and Professional Group (MGMT) (Attachment O, Exhibit 1) as amended by CMR #7840 to add one new classification and change titles of three classifications. b. Service Employees International Union (SEIU) 2015-2018 MOA (Attachment O, Exhibit 2) as amended by CMR #7656 to reclassify four classifications and change the salary rates of two classifications. c. Limited Hourly Group (Attachment O, Exhibit 3) as amended by CMR #7656 to update the salary rates of one classification. EXECUTIVE SUMMARY As a result of actions recommended in this memorandum both by staff and the Finance Committee, the total Fiscal Year 2018 Proposed Budget (restated) of $651.8million will increase by $20.4 million which reflects a 3.1% increase for a total Fiscal Year 2018 Adopted Budget of $672.2 million. This Adopted Budget leaves the City in a fiscally healthy situation with the General Fund Budget Stabilization Reserve (BSR) at the Council recommended level of 18.5% of the General Fund Adopted Budget total expenses; however, there are some challenges that will need to be addressed in Fiscal Year 2018 and beyond. Staff will continue to proactively undertake these challenges and with the Finance Committee and the Council in FY 2018 and as part of the FY 2019 budget process. During May 2017, the Finance Committee reviewed the Fiscal Year 2018 City Manager Proposed Operating and Capital Budgets as well as various fee and rate changes recommended by staff. During these discussions changes have been recommended to the City Manager’s Proposed Budgets by both the Finance Committee and staff. This report outlines this process and the results from it. Overall, the Finance Committee approved the proposed budgets as amended on a 3-1 vote (nay: Tanaka). This City of Palo Alto Page 3 report summarizes the hearings that occurred in May including all approved changes and recommends limited additional changes staff has identified since the last Finance Committee meeting on May 18, 2017. This report includes the following sections: Fiscal Year 2018 Finance Committee Budget Balancing & Final Recommended Changes: A summary of the budget balancing process including major changes approved by the Finance Committee and additional recommended adjustments from staff. This is organized by fund type beginning with citywide, General Fund, General Capital Fund, Enterprise Funds, Internal Services Fund, Special Revenue Funds, and Capital Reappropriations. Table of Organization: a summary of additional changes to the Table of Organization as it was presented in the FY 2017 Proposed Budget released April 25, 2017. Municipal Fee Schedule: A summary of the changes recommended in the attached City Manager Report #8020 FY 2018 Proposed Municipal Fee Schedule as well as revisions made subsequently as part of the Finance Committee hearing on May 18, 2017. Fiscal Year 2018 Rate Changes (various utilities such as electric): A brief overview of the rate changes recommended as part of this report as reviewed by the Utilities Advisory Commission and Finance Committee. Each of these rate changes are included in the FY 2018 budget assumptions. This report outlines the actions requested, transmits the resolutions from these reviews, and requests City Council approval and adoption. In limited instances, rates have already been approved or scheduled for approval prior to June 27, 2017 – water, refuse, and storm drain. This section also references those changes for informational purposes only. Compensation Plans: A description of all compensation plans and the amendments contained within in order to align with the recommended adjustments in the FY 2018 Budget as well as limited clean-up actions. Referral Items for Full Council at the Request of the Finance Committee: This report details a list of areas that the Finance Committee wished to refer to the full Council for potential referral to staff. These are areas identified for potentially deeper analysis or alternative funding strategies to be explored over the course of the next fiscal year. Attachments: Attached to this report are a number of documents as outlined and referenced throughout the recommendation language and the report. In addition, links to all the materials presented throughout the budget process to both the City Council and/or the Finance Committee such as At Places Memorandums, presentations made during the budget hearings, and transcripts from Finance Committee Hearings are included. Not included in this CMR is the approval of the GANN Limit. This has been transmitted separately for City Council consideration. FISCAL YEAR 2018 FINANCE COMMITTEE BUDGET BALANCING PROCESS & FINAL RECOMMENDED CHANGES During the Finance Committee meetings, the Finance Committee approved staff recommended changes and recommended and approved their own changes. Based on the Finance Committee Budget Hearing deliberations and requested changes during the month of May 2017 as well as changes at the behest of staff, this section aggregates and outlines all the final changes recommended by staff to be made to the FY 2018 Proposed Operating and Capital Budgets distributed to the City Council on April 25, 2017. All City of Palo Alto Page 4 adjustments are outlined in Attachment A Exhibit 2, however below is a summary of the changes across all funds and the General Fund accounting for the various approved motions and staff recommendations. This chart provides a high level summary of the status of the City’s FY 2018 citywide revenues and expenses. Following the chart are highlights by fund category: General Fund, General Capital Improvement Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds, and the Capital Improvement Budget. City of Palo Alto Page 5 FY 2018 REVISED Proposed Budget General Fund/Citywide (All Funds) ($’s in thousands) Revenues Expenses Revenues Expenses Citywide Proposed Budget, released April 25, 2017 $206,842 $210,031 $591,651 $661,774 Revised Citywide Proposed Budget (Restated for Correction)*$206,842 $210,031 $581,582 $651,801 Finance Committee Approved Amendments Finance Committee Initiated Transportation Management Association (TMA) (annual funding of $480,000)$0 $0 $0 $345 Tree Trimming Cycle (7 year cycle)$0 $338 $0 $338 Employee Parking Permit Rate Increases $0 $98 $762 $123 Youth Community Services Funding (three year matching grant)$0 $50 $0 $50 Citizen's Suvery on Code Enforcement (City Auditor's Office)$0 $20 $0 $20 California Avenue General Fund Loan $0 ($75)($75)($75) FY 2018 Vehicle Replacement Deferral $0 ($50)($50)($100) Staff Initiated Storm Drainage Fund Ballot Measure Implementation (+1.0 FTE)$0 $14 $315 $996 Junior Museum and Zoo Capital Project $0 $0 $0 $706 Below Market Rate Program Oversight Contract $0 $0 $0 $137 Airport Tiedown Lease and Property Rental Revenue Correction $0 $0 $500 $0 Reallocation of Parking Evaluation Study Funding (From CMO to Non- Departmental, $150,000)$0 $0 $0 $0 Utilities Capital Improvement Program Correction $0 $0 $0 ($12,240) Various Capital Reappropriations $0 $0 $7,000 $14,762 Buena Vista Mobile Home Park $0 $0 $0 $14,875 Property Tax Increase $200 $0 $200 $0 SUBTOTAL CHANGES FROM FY 2018 PROPOSED BUDGET $200 $395 $8,652 $19,937 Adjustments, including Transfers, Internal Service Funds, and Capital $0 $0 $2 $499 Citywide Proposed Revenue and Expenses (as of June 27th Adoption Hearing)$207,042 $210,426 $590,236 $672,237 General Fund All Funds Additional Staff Recommended Amendments (subsequent to Finance Committee Review) * Subsequent to the release of the FY 2018 City Manager’s Proposed budget on April 25, 2017, staff found an error in the Citywide revenues and expenses summary tables as reported in the proposed budget document. It was identified that within these summary tables, a non-budgeted fund was included resulting in an overstatement of both revenues and expenses. Revenues were overstated by $10.07 million, and expenses were overstated by $9.97 million. This chart restates the FY 2018 Proposed citywide revenues and expenses as they would have been had this non-budgeted fund been excluded in the “Revised Citywide Proposed Budget (restated for Correction)” row. City of Palo Alto Page 6 General Fund Throughout the Finance Committee meetings, various minor amendments were proposed by both the Finance Committee and staff in the General Fund. All departmental budgets as amended by the Committee were approved by majority vote with the exclusion of the City Manager’s Office budget. The City Manager’s Budget resulted in a 2:2 vote (nay: CM Tanaka, CM Holman) after thorough discussion over staffing levels and staff assignments, primarily surrounding the topic of economic development. In the fall of 2016, subsequent to the Adoption of the FY 2017 Operating Budget, a staffing reorganization was approved by the City Council; however, it was this reorganization and the duties assigned to the impacted staffing as a result of this reorganization that resulted in the split vote for the FY 2018 Budget. Overall the City Manager’s Budget reflects a 9.6 percentage increase year over year due to this staffing restructuring. Should the figures be normalized for this staffing realignment, year over year growth of approximately 3 percent would be reflected. Summary of Recommended Changes to the FY 2018 City Manager Proposed Budget Throughout the FY 2018 Budget hearings, the Finance Committee members recommended amendments to the FY 2018 City Manager Proposed Budget. Staff has worked to incorporate those directions into the amended budget, and recommended a few additional actions as a result of changes approved by the Finance Committee including: a $338,000 increase for the Tree Trimming Contract associated with decreasing the cycle time from 10 years to 7 years (ongoing); a $98,000 increase for the cost of employee parking permits for City employees working in City Hall consistent with the increase in downtown parking permits (see the Municipal Fee Section for fee changes) (ongoing); a $50,000 increase for the Youth Community Services (YCS) matching grant funding (three years, $50,000 annually); a $20,000 increase for a Citizen’s Survey on Code Enforcement to be completed by the City Auditor’s Office (one-time); a $75,000 reduction for the loan to the California Avenue Parking Fund as a result of higher parking permit prices and therefore additional revenue to support planned expenses (see the Municipal Fee Section for fee changes); and a $50,000 reduction for the deferral of the replacement of a forklift in the Administrative Services Department. Corresponding decreases in the Vehicle Maintenance and Replacement Fund revenue and expenditures are discussed elsewhere. In order to offset some of these recommended adjustments, staff has identified an increase in the estimate for Property Tax revenues based on the June 2017 estimated property tax roll growth for FY 2018. This increase reflects updated information from the Santa Clara County Assessor's Office, which now estimates an increase of 6.9 percent from FY 2017, an increase of 0.4% more than the original estimate, which was a year over year increase of 6.5 percent. These figures exclude the estimated surpluses of $2 million to $5 million projected for FY2017 since the year-end has not ended and the financials need to be audited. Once adjusting for all the recommended changes, the revised draw on the BSR is $3.37 million. This is a $195,000 increase from the levels proposed in the FY 2018 City Manager Proposed Operating Budget of $3.2 million. The estimated FY 2018 BSR would be at $38.9 million or 18.5 percent of the FY 2018 City of Palo Alto Page 7 General Fund Recommended Expenditure budget. This level is at the target level of 18.5 percent as approved by the City Council. Should the City Council wish to increase the proposed level of the Budget Stabilization Reserve or find a need for additional financial capacity in the General Fund, one option could be to reallocate the maintenance costs associated with Cubberley facilities to the Cubberley Property Infrastructure Fund. The Cubberley Property Infrastructure Fund is intended for the maintenance and renovation of the Cubberley property. In the 2014 lease agreement between the City of Palo Alto and the Palo Alto Unified School District (PAUSD), the parties agreed to dedicate approximately $1.86 million annually for repairing, renovating and/or improving the Cubberley site, which is jointly owned by the City and PAUSD. On an annual basis, the City dedicates approximately $348,000, or 1.5 positions and operation and facility expenses for Cubberley from the General Fund budget in the Public Work’s Department. Reallocating these expenses to the Cubberley Property Infrastructure Fund would dedicate approximately 18 percent of the annual contribution of $1.86 million. General Capital Improvement Fund At the May 18, 3017 Finance Committee Budget meeting, the Finance Committee recommended approval of the General Capital Improvement Fund including the staff recommended amendments. The Committee also requested information from staff in regards to the implications of potentially reducing the estimated General Fund Capital Improvement Fund gap of $4.3 million in FY 2019. This section addresses both items by first providing a summary of recommended changes as approved by the Finance Committee as well as information pertaining to eliminating the FY 2019 funding gap. Summary of Recommended Changes to the FY2018 City Manager Proposed Budget In total, an increase of $2.0 million in expenses is recommended in this fund in FY 2018. This reflects the combined impact of the reappropriation of funds for various capital projects ($1.3 million) and establishing the Junior Museum and Zoo Renovation Project (AC-18001) in the amount of $706,000. In total, when including recommended reappropriations of funds, this would increase the FY 2018 budget from $75.5 million to $77.5 million. The Junior Museum and Zoo Renovation (AC-18001) Project in the amount of $706,000 is offset by a reduction in FY 2019 funding to the Rinconada Park Improvements Project (PE-08001). The Community Services Department is planning to move the Junior Museum and Zoo (JMZ) operation to the Cubberley Community Center in Fiscal Year 2018 to vacate the current site ahead of the JMZ Rebuild Project that is expected to commence in spring 2018. Expenses consist of $30,000 in design costs for renovations at Cubberley, $376,000 in construction and contingency costs, and $300,000 in permit and inspection fees for the temporary reconfiguration and operation of JMZ at Cubberley. This will minimize the disruption to services during the move and ensure the continuity of JMZ operations. Information Requested by the Finance Committee – FY 2019 Expense Reduction of $4.3 million During the FY 2018 Proposed Budget wrap-up discussion on May 18, 2017, Finance Committee directed staff to return to the City Council with recommendations to eliminate the $4.3 million gap in Fiscal Year 2019 of the proposed five-year 2018-2022 Capital Improvement Program (CIP). In releasing a five year 2018-2022 Capital Improvement Program that reflects negative balances in FY 2019 through FY 2022, it was staff’s intent to demonstrate the appetite for capital improvement investments against the available resources. This has clearly articulated a need for focus and prioritization over the coming year since the five year program, as displayed in the 2018-2022 Proposed Budget, is $27.7 million short. The City of Palo Alto Page 8 remaining four years of the CIP are only a plan and are anticipated to be adjusted as part of the Fiscal Year 2019 budget process; however, some of the types of adjustments staff plan to review subsequent to the adoption of the FY 2018 budget are outlined below. Project Close-out Analysis: over the next year, staff anticipates reviewing all projects, especially those that have been reappropriated, to evaluate if all planned funding is needed and close projects as appropriate. For example, analyzing the close-out of major bond funded projects to ensure all proceeds are properly distributed. It is anticipated that approximately $4 million in reductions to projects may be feasible. Defer/Delay Projects: Staff have identified a handful of projects that could be deferred or delayed and will evaluate additional options as part of the FY 2019 budget process. Current projects that could be deferred or delayed include the Foothills Park, Pearson Arastradero Preserve & Ester Clark Park Comprehensive Conservation Plan (PG-17001), Municipal Services Center(MSC) A,B & C Roof Replacement (PF-17000), Baylands Boardwalk Improvements (PE- 14018), and Boulware Park Improvements (PE-17005). The deferral of these projects will result in assets remaining in poor condition, assets remaining closed or with limited use to the community and various users, and increased maintenance for those assets that are beyond useful life. Alternative Funding: The current capital plan relies heavily on alternative funding sources such as the Stanford University Medical Center funding, however, some projects could be reimbursed or shifted to a different funding source. For example, staff recommends evaluation of the CalTrain Corridor Video Management System Installation (PE-18001) to be funded by a transfer from the Fiber Optics Fund. This funding alignment and others like it require review by various parties including the City Attorney's Office and would most likely require a review of the current City Council policies that guide the expenses in the Fiber Optics Fund. In addition, the City collects various developer impact fees, which can be used for capital projects if allowed under the terms of the fee and approved by Council. CMR #7386 outlines the fund balances in the developer impact fee funds as of the end of Fiscal Year 2016. Many of these funds have already been programmed in the 2018-2022 CIP; however, staff will continue to assess these funds as part of the annual budget process to ensure they are being used to offset costs related to capital projects where applicable. Additional Revenue Sources: There are several potential revenue sources for capital work that have been identified, but the amounts that Palo Alto will receive have not been finalized; therefore, funding was not programmed into the current 2018-2022 CIP. More information about these funds should be available during Fiscal Year 2018 and staff will return to Council to recognize and appropriate the funds when they become available. Measure B Funding - In November 2016, Santa Clara County passed a 30-year, half-cent countywide sales tax to enhance transit, highways, expressways and active transportation (bicycles, pedestrians, and complete streets). Tax collections are expected to begin in April 2017 and the Valley Transportation Authority (VTA) expects to receive its first payment in June 2017. Measure B is anticipated to generate between $6 billion and $6.5 billion in 2017 dollars. Road Maintenance and Rehabilitation SB1 - The recent passage of SB1 for Road Maintenance and Rehabilitation is estimated to provide an additional $1.2 million by Fiscal Year 2019. This funding could supplement and enhance the City’s street maintenance program, possibly allowing some funds to be reallocated to other capital projects with Council approval. City of Palo Alto Page 9 The City is also continuing to explore new revenue opportunities such as proposed new hotels, car dealership opportunities, and the sale of Transfer Development Rights (TDRs) while understanding related impacts. These funds could be used to support capital infrastructure through Council policies similar to the increased TOT funds that were approved to fund the City Council Infrastructure Plan capital projects. Overall, all of these strategies will be necessary to address the forecasted gap in revenues and capital improvement expenses over the five year CIP. Closing out appropriate projects, and deferring/delaying projects outlined in this memorandum will not fully eliminate the Infrastructure Reserve gap in all five years of the CIP; however, staff anticipates these actions would, at minimum, address the funding gap in Fiscal Year 2019. More work is still needed as part of the Fiscal Year 2019 budget process to further prioritize projects, minimize costs, and balance the five-year CIP. Enterprise Funds Adjustments in the various enterprise funds primarily resulted from staff initiated changes that were approved by the Finance Committee. Below reflect the significant adjustments, additional details on all adjustments can be found on Attachment A, Exhibit 2. Implementation of the Storm Water Management fee was approved by a majority of property owners via a ballot-by-mail process in April 2017. A base rate of $13.65 per Equivalent Residential Unit (ERU) per month was established along with a provision that the City Council could increase the rate on an annual basis by the local inflation rate (as measured by the Consumer Price Index) or 6 percent, whichever is less. Under the provisions of the ballot measure, the base component of the fee of $7.48 per ERU per month would be charged monthly until terminated by the City Council. Various Operating changes and Capital Improvement projects related to Strom Water Management are the result of staff working with a city manager-appointed blue ribbon committee to generate programmatic and project improvements. Recommended actions result in the addition of 1.0 Associate Engineer, $8.3 million in capital investments over the five year CIP, realignment of existing staffing between funding sources, and the Green Infrastructure Plan for Storm Water Management. Realignment of the “Capital Improvement” expense category in various Utility Funds which was inadvertently overstated due to the double counting of salaries and benefits associated with capital improvement projects. Therefore, in order to reflect the lower level of expenses anticipated in FY 2018, it is recommended that the appropriated expenses in the following funds be adjusted downward to accurately align with the anticipated staffing and construction costs. It is important to note that there is no impact to rates or the financial forecasting in these funds, this was simply a display issue in the Proposed Budget documents. Airport Tie Down Lease and Property Rental Revenue increase to the estimate for tie down lease and property rental revenues at the Airport that were inadvertently cited as $1,011,509 in the Fund Recommended Adjustment Electric Fund ($5,856,030) Fiber Fund ($166,370) Gas Fund ($2,666,977) Wastewater Collection Fund ($2,155,768) Water Fund ($1,395,292) TOTAL ($12,240,437) City of Palo Alto Page 10 FY 2018 Proposed Operating Budget when they should have been higher by $500,000. These revenues are associated with the anticipated sunset of the Fix Based Operator (FBO) leases in April 2017 and were anticipated in the development of the Airport Fund and were included in the 5 year financial forecast previously provided therefore, no implications on the General Fund loans to this fund are impacted. Various reappropriations for ongoing capital improvement projects as discussed and outlined later in this report. Internal Service Funds Minimal adjustments were approved in the various Internal Services Funds. Details the major changes approved by the Finance Committee are below: Various transfers to the University Avenue Parking District Fund to reflect the increased City employee permit costs; and Deferral of the replacement of a vehicle beyond FY 2018, a forklift in the Administrative Service Department (as discussed in the General Fund section). Subsequent to the Finance Committee meetings, the Buena Vista Mobile Home Park litigation was settled. Staff recommends an additional transaction in the General Liability Fund appropriating $375,000 to resolve and settle Buena Vista MHP Residents Association v. City of Palo Alto, Santa Clara County Superior Court Case No. 2015-1-CV-284763. The funds are a compromise settlement of a claim for attorneys' fees from the Residents Association. Special Revenue Funds The primary adjustments in these funds reflect the Finance Committees’ recommended changes to the various parking fees and permits throughout University Avenue Parking, California Avenue parking, and the current Residential Preferred Parking Programs. As discussed in further detail in the FY 2018 Municipal Fees section of the report and an At Places Memorandum to the CMR #8020, permit increases are intended to: begin bringing the cost of off-street parking permits closer to market (as evidenced by other parking charges in the region); begin bringing the cost of off-street parking permits closer to the cost of commuting by transit (as evidenced by the cost of a Caltrain Go Pass) so there is less incentive for employees to drive to work; begin bringing the cost of off-street parking permits in the California Avenue area in line with permits in the Downtown area; increase the value of off-street parking permits so that employees are discouraged from purchasing permits "just in case" they need them instead of when they plan to use them regularly; and increase revenues to the University Avenue Parking District Fund to support activities of the Transportation Management Association (TMA); and increase revenues to the California Avenue Parking District Fund to support needed capital projects in this districts. City of Palo Alto Page 11 The adjustments recommended in this section primarily reflect these changes as well as the Finance Committee recommendation to increase funding to the TMA from $135,000 (in the proposed budget released April 25, 2017) to total annual funding of $480,000 funded through increases in permit fees downtown. With this funding, the TMA has estimated that they can reduce SOV commute trips to 14% below the baseline of 5,500 (from the benchmark survey). Subsequent to the Finance Committee meetings, the Buena Vista Mobile Home Park litigation was settled. Staff recommends additional transactions to appropriate funds in the Housing In-Lieu Residential and Commercial Funds totaling $14.5 million to complete the payment commitment to resolve matters related to the Buena Vista Mobile Home Park (BVMHP) anticipated to occur in Fiscal Year 2018 as outlined in Attachment A, Exhibit 2. The City is partnering with Santa Clara County to assist the Housing Authority of the County of Santa Clara (HACSC) to acquire, improve, and operate the Buena Vista Mobile Home Park, according to the terms of a purchase agreement reached in May 2017 between HACSC and the Buena Vista Mobile Home Park owner. These actions are detailed further in Attachment A, Exhibit 2, Amendments to the City Manager’s Fiscal Year 2018 Proposed Operating and Capital Budgets. Capital Reappropriations As described in the Proposed Capital Budget document and discussed during the Finance Committee Budget Hearings, the City Council-approved a change in the method for accounting for capital budget reappropriations are included in the 2018-2022 Proposed Capital Budget Improvement Program (CIP). Previously, any unspent capital funds carried forward from one fiscal year to the next automatically, as long as the project was active. As a result of this October 2014 change to the Municipal Code, City Council authorization is now required for reappropriations. The FY 2018 budget process continues this process with the current FY 2018 Proposed Capital Budget including approximately $46.1 million in reappropriated funds, across all funds. In the time since the Proposed Budget figures were developed (late winter and early spring of 2017), departments have re-reviewed current year estimates and the reappropriation amounts built into the proposed CIP. Additional reappropriation adjustments are recommended as part of this wrap-up memorandum in order to update the FY 2018 Capital Budget with current, more refined estimated activity levels in Fiscal Year 2017. Cumulatively, this re-review of projects has resulted in staff’s recommendation to increase the Fiscal Year 2018 Proposed Budget by a total of $14.8 million, from $157.2 million to $172.0 million. Fund Recommended Fiscal Year 2018 Funding Adjustment Airport Fund $45,000 Capital Improvement Fund $1,280,713 Electric Fund $950,865 Gas Fund $3,495,960 Vehicle Replacement Fund $400,000 Wastewater Collection Fund $448,740 Wastewater Treatment Fund (R) $7,000,000 Water Fund $1,140,717 Total All Funds $14,761,995 (R) Denotes a reappropriation of revenues as well. These adjustments, as outlined by project in Attachment A, Exhibit 2, combined with those outlined in City of Palo Alto Page 12 the Proposed Capital Budget will ensure that funds are available at the onset of Fiscal Year 2018 for projects that have experienced delays in the current year and will reduce the Fiscal Year 2018 Proposed budget for projects that experienced higher than anticipated expenditure levels within Fiscal Year 2017. In total, reappropriations of an estimated $60.9 million remain below those assumed in the FY 2017 Adopted Capital Budget of $79.8 million. TABLE OF ORGANIZATION At this time, only one change from the Table or Organization as outlined in the FY 2018 City Manager’s Proposed Operating Budget on pages 487 through 503 for full time benefited positions is recommended. As a result of the approval by the voters of the Storm Water Management fee, 1.0 Associate Engineer was recommended by staff and approved by the Finance Committee. Below is a revised position summary based on all recommended and Finance Committee approved changes as of May 18, 2017 resulting in a net addition of 4.85 positions. FY 2017 Adopted to FY 2018 Budget Position Changes (As of May 18, 2017) General Fund Enterprise Funds Other Funds* Total Fiscal Year 2017 Adopted Budget 603.94 353.61 94.55 1,052.10 Fiscal Year 2017 Approved Adjustments** 1.25 0.75 0.00 2.00 FY 2017 Modified Budget 605.19 354.36 94.55 1,054.10 FY 2018 Net Increase 0.35 3.50 1.00 4.85 FY 2018 Reallocation (1.12) 0.00 1.12 0.00 Fiscal Year 2018 Budget 604.42 357.86 96.67 1,058.95 Net Difference (0.77) 3.50 2.12 4.85 * Other Funds include the Capital Improvement, Internal Service, and Special Revenue Funds. ** CMO Reorganization: This action reorganized the City Manager’s Office staffing, eliminating 2.75 positions including 1.75 Assistant City Manager positions and 1.0 Economic Development Manager and adding 2.0 Deputy City Manager and 2.0 Assistant to the City Manager positions. In the Utilities Department, 1.0 Utilities Chief Operating Officer was added and the Utilities Director was retitled to the Assistant City Manager/Utilities General Manager shared by the CMO and Utilities Departments. NOTE: This table does not include Hourly positions. MUNICIPAL FEE SCHEDULE On May 18, 2017 the Finance Committee recommended that the City Council adopt the changes to the Fiscal Year 2018 Proposed Municipal Fee Schedule with amendments (Attachment A, Exhibit 3). Major changes made to the Fiscal Year 2018 Proposed Municipal Fee Schedule include a 6.0 percent fee increase for average salary and benefits and adjustments to achieve cost recovery levels per the guidelines approved by the City Council, and adjustments to Planning and Community Environment Impact Fees in accordance with prior Council resolutions. Additionally, as detailed in the attached CMR #8020, the Finance Committee approved 17 new fees, the deletion of 16 fees, and adjustments to 120 fees by a rate other than 6.0% to either adjust for cost recovery levels, align with market value, or capture other technical adjustments. Three of the 17 new fees approved by the Committee are related to the City’s electric vehicle charging stations. These fees will allow for fees that will recover the costs associated with charging including the electricity, maintenance, and replacement costs of the charging stations as well as establish two fees to be charged City of Palo Alto Page 13 at the authorization of the City Manager – an Electric Vehicle Charger Connection Fee and an Electric Vehicle Charger Connection Overstay fee. The intent of these fees is to encourage turnover in the use of the charging stations. More detailed information can be found in the At Places Memorandum to the CMR #8020. Analysis of amendments to valuation-based municipal fees for Development Services is currently underway and will be brought forward separately following the completion of a cost of service analysis. The Committee made a number of changes to fee rates for parking permits. Specifically, the Committee amended staff’s recommendations and recommended the following changes: Amend the fee for Downtown Garage/Lot and full price employee Downtown RPP employee permits to $365 for six months ($730 for one year). This represents a 57% increase from the current price of $466 for one year. Funds from the garage/lot permits would support the TMA. Amend the fee for California Avenue Garage/Lot and full price employee Evergreen Park/Mayfield RPP full price employee permits to $182.50 for six month ($365 for one year). This represents a 145% increase from the current price of $149 for one year. Funds from the garage/lot permits would support capital projects in the area. (As noted below, full price RPP employee permits would not rise until the end of the “pilot” period which ends March 31, 2018.) Standardize the cost of daily permits in the Downtown and California Avenue areas at $25 per day, up from the current price of $17.50 downtown and $8.00 in the California Avenue Area. Standardize all annual residential RPP permit fees at $50 per year and leave the low income employee RPP permit fees at $50 for six months ($100 for one year). Included in this report are minor additional changes from those actions approved by the Finance Committee in related to various parking programs and fees. The additional recommended changes to fees and program ordinances are outlined below. Additional modifications to seven fee titles proposed in the Planning and Community Environment department specific to parking permits in University Avenue, California Avenue, and RPP districts. Included are minor revisions to consolidate and clarify permit types and simplify the title. In accordance with Resolution No. 9663, which established the Evergreen Park/Mayfield pilot program and pricing, additional language is recommended to be included with Employee and Employee Daily parking permits to specify that these recommended price increases will not take effect in this particular RPP until the program pilot period ends on March 31, 2018. With the staff recommendation, the parking permit fees would bet set by the Municipal Fee Schedule at the conclusion of the pilot phase. Staff recommends that parking permit fees be streamlined and set by the Municipal Fee Schedule at the conclusion of the pilot phase. The Citywide Residential Preferential Parking Ordinance originally, adopted in December 2014 and amended in February 2016, includes parameters for all residential preferential parking programs citywide. Resolutions 9473, 9577 and 9671 provide specific direction on the details of the Downtown Residential Preferential Parking (RPP) Program, including the establishment of parking permit fees. The attached draft resolution (Attachment N), if adopted, will remove the reference to parking permit fees in Resolution 9671, and tie all Downtown Residential Preferential Parking (RPP) Program parking permit fees to the Municipal Fee Schedule in FY 2018 and future years. Downtown Residential Preferential Parking (RPP) Program resident parking City of Palo Alto Page 14 permits are currently set to expire on March 31, 2018 and employee parking permits will expire on September 30, 2017 and March 31, 2018. The new fees will be collected at the time new parking permits are purchased by residents and employees. Lastly, Attachment P, “Parking at a Glance,” summarizes the various parking fee changes recommended for FY 0218 across all programs. FISCAL YEAR 2018 RATE CHANGES From March through May 2017, the Utilities Advisory Commission and Finance Committee received and reviewed various utility financial plans, transfer requests, and rate changes recommended by staff. This report outlines the actions requested, transmits the resolutions from these reviews, and requests City Council approval and adoption. Attached to this report are a number of documents referenced throughout the recommendation language and the report. In addition, this report also includes links to the City’s website for all the staff reports presented throughout the review process to the Utilities Advisory Commission, Finance Committee, and City Council. Staff and the Finance Committee recommend that the City Council approve the Utility financial plans and rate changes listed below. These financial plans and rate changes were reviewed and approved by the Utilities Advisory Commission between February and April of 2017, and by the Finance Committee between March and May of 2017. This year, there have been three separate rates that have already been approved by the City Council – Storm Drain, Water, and Refuse. Details of these changes are provided below as informational items. No new action is recommended to be taken on these. Proposed Rate Changes (recommended for adoption in this report) Electric The FY 2018 Electric Utility Financial Plan (Attachment C) includes projections of the utility’s costs and revenues through FY 2027. For FY 2018, a 10% to 14% rate increase, depending on customer class and usage, is proposed. Beyond FY 2018, a 7% increase is projected for the following fiscal year. However, even with these increases, residential electric rates will remain approximately 35% to 45% below Pacific Gas & Electric (PG&E) rates and comparable to, or lower than, Santa Clara and Roseville, other publicly- owned utilities that maintain very low bills for customers. The proposed Electric rate schedules are included as Attachment D & E. In addition, to maintain adequate Operations Reserves, the following FY 2018 transfers are requested: 1) up to $911,000 from the Supply Rate Stabilization Reserve to the Supply Operations Reserve, 2) up to $9.0 million from the Hydroelectric Stabilization Reserve to the Supply Operations Reserve, and 3) up to $4.5 million from the Supply Operations Reserve to the Distribution Operations Reserve (Attachment B). For more information, see CMR #7980 , approved by the Finance Committee on May 18, 2017. Gas The FY 2018 Gas Utility Financial Plan (Attachment G) includes projections of the utility’s costs and revenues through FY 2027. While the FY 2017 Financial Plan projected a 9% rate increase for FY 2018, the FY 2018 Gas Utility Financial Plan includes no distribution-related gas rate increase. However, beginning in FY 2018, customers may see an increase of up to 4% on their bills as a result of the costs of implementing the Carbon Neutral Gas Plan adopted by Council in December 2016. Future-year distribution-related rate increases are projected to be 4% to 6% over the next four years. The annual City of Palo Alto Page 15 gas bill for the median residential customer for calendar year 2016 was $426.72, about 20% lower than the annual bill for a PG&E customer with the same consumption. In addition, the plan includes proposed transfers to the Operations Reserve of $1.2 million and $4.8 million from the Rate Stabilization Reserve in FY 2018 and FY 2019, respectively, to ensure that there are appropriate financial reserves for contingencies. For more information, see CMR #7979, approved by the Finance Committee on May 18, 2017. Wastewater Collections The FY 2018 Wastewater Collection Utility Financial Plan (Attachment I) includes projections of the utility’s costs and revenues through FY 2027. Staff projects no need for a wastewater rate adjustment in FY 2018; however, rate increases of 7% are projected for FY 2019 through FY 2023. The annual sewer bill for a Palo Alto resident will remain $418 under the current rates, 31% lower than the average of neighboring communities. For more information, see CMR #7855, approved by the Finance Committee on April 4, 2017. Dark Fiber Since 2007, the EDF-1 and EDF-2 rates for Dark Fiber (Attachment K) customers have increased annually by the annual December change in the Consumer Price Index for All Urban Consumers (CPI-U) in the San Francisco area per their dark fiber contract agreements. Based on prior Utilities Advisory Committee and City Council direction, these rate changes are routinely included as part of the Budget adoption process and are not discussed or called out in a separate staff report. This year’s change in CPI-U was 3.5%, as reported by the Bureau of Labor Statistics. Water Financial Forecast The FY 2018 Water Utility Financial Plan (Attachment M) includes projections of the utility’s costs and revenues for FY 2018 through FY 2027. A 4% rate increase is scheduled for City Council approval on June 19, 2017 along with the repeal of the drought surcharge, as outlined below. 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 2018. This action will reduce the Rate Stabilization Reserve to zero. For more information, see CMR #7854, approved by the Finance Committee on April 4, 2017. Approved Rate Changes (City Council has already adopted these; information only) The proposed changes to Water and Refuse Rates were considered in a separate Public Hearing. As required under Article XIIID of the California State Constitution, the Water and Refuse rate public hearing was noticed as June 19, 2017. For more information on these proposed rate changes to Water and Refuse rates, see CMR #8171. In April 2017, the majority of Palo Alto property owners voted to approve a new Storm Water Management fee that will replace the City’s existing Storm Drainage fee in June 2017. These results were certified by the City Council on April 17, 2017 (CMR#7937) and the updated Storm Water Management Fee schedule (D-1) was adopted by the City Council on May 22, 2017 (CMR #8125). Water Rates The net result of the changes scheduled for City Council approval on June 19, 2017 in CMR 8171 means that water bills will decrease 2-4% for customers whose usage remains similar to pre-drought consumption. This is because the 4% increase to base water rates is offset by the removal of the drought surcharge currently in effect. Costs are projected to rise by about 3% per year over the next City of Palo Alto Page 16 several years, primarily due to increasing water supply costs. As a result, staff recommends a 4% water rate increase in FY 2018, and 6% rate increases in FY 2019 through FY 2023. As the State has removed mandatory usage restrictions for California agencies, the San Francisco Public Utilities Commission (SFPUC) has adequate water supplies, and as the Water Fund’s reserves are within guideline levels, staff is also recommending that Council deactivate the drought surcharge on July 1, 2017. Refuse The FY 2018 Refuse Rate is recommended to be increased by 5% for residential customers, and all other refuse rates are recommended to stay at current levels. This residential rate increase of 5% completes a three year plan of residential rate adjustments and brings residential revenues fully in line with the cost to serve customers. This increase is less than the projected increase of 8% that was initially anticipated in the three-year plan primarily as a result of GreenWaste depreciation expenses and reductions in the Sunnyvale Materials and Recycling Transfer (SMaRT) station debt services budget. The monthly cost of a 32 gallon cart would increases from $47.69 to $50.07, or by $2.38 per month. See staff report #7724, approved by the Finance Committee on April 4, 2017 and staff report #8171 scheduled for City Council approval on June 19, 2017, for more information. Storm Water Management Fee In April 2017, the majority of Palo Alto property owners voted to approve a new Storm Water Management fee that will replace the City’s existing Storm Drainage fee. These results were certified by the City Council on April 17, 2017, CMR #7937. A typical homeowner will pay about $13.65 per month per Rate Schedule D-1, effective June 1, 2017. This represents a 62 cent increase for a typical residential property. COMPENSATION PLANS In addition to the approval of the Table of Organization, the changes in the Fiscal Year 2018 City Manager’s Budget result in amendments to three of the City’s employee group’s salary schedules. These reflect changes to classification compensations or changes to add or amend current job classifications for these employee groups. Below is a summary of the recommended changes: Management and Professional Group (MGMT) (Attachment O, Exhibit 1) Add the Principal Planner classification as it is needed for duties higher than the Senior Planner but lesser than the Planning Manager. Title change of the Principal Attorney to Chief Assistant City Attorney. This title change is detailed in greater length in the “City Attorney’s Office Staffing Restructure” budget proposal in the City Attorney’s Office Departmental section of the FY 2018 Operating Budget. Title change Senior Assistant City Attorney to Assistant City Attorney due to restructuring of the department. This title change is detailed in greater length in the “City Attorney’s Office Staffing Restructure” budget proposal in the City Attorney’s Office Departmental section of the FY 2018 Operating Budget. Title change Senior Deputy City Attorney to Deputy City Attorney due to restructuring of the department. This title change is detailed in greater length in the “City Attorney’s Office Staffing City of Palo Alto Page 17 Restructure” budget proposal in the City Attorney’s Office Departmental section of the FY 2018 Operating Budget. Service Employees International Union (SEIU) 2015-2018 (Attachment O, Exhibit 2): Update Senior Industrial Waste Investigator salary rates due to internal salary alignment. This change is detailed in greater length in the “Senior Industrial Waste Investigator Pay Scale Adjustment” budget proposal in the Public Work’s Departmental section of the FY 2018 Operating Budget. Update Utilities Compliance Technician and Utilities Compliance Technician salary rates. This change is detailed in greater length in the “Utilities Compliance Group Workload Realignment” in the Utilities Departmental section of the FY 2018 Operating Budget. Reclassify Gas System Technician to Assistant Gas Measurement and Control Technician. This change is based on a grievance settled through a reclassification agreement between the Union and the City. Reclassify Gas System Technician II to Gas Measurement and Control Technician. This change is based on a grievance settled through a reclassification agreement between the Union and the City. Add Assistant Gas and Water Measurement and Control Technician classification. This change is detailed in greater length in the “Gas and Water Meter Shop Reorganization” in the Utilities Departmental section of the FY 2018 Operating Budget. Add Gas and Water Measurement and Control Technician classification. This change is detailed in greater length in the “Gas and Water Meter Shop Reorganization” in the Utilities Departmental section of the FY 2018 Operating Budget. Add Gas and Water Measurement and Control Technician - Lead classification. This change is detailed in greater length in the “Gas and Water Meter Shop Reorganization” in the Utilities Departmental section of the FY 2018 Operating Budget. Limited Hourly Group (Attachment O, Exhibit 3): Update Management Specialist salary rates with a higher maximum range to compensate for highly skilled recruitments. REFERRAL ITEMS FOR FULL COUNCIL AT THE REQUEST OF THE FINANCE COMMITTEE The Finance Committee approved a motion on May 18, 2017 to recommend to the full City Council to refer to staff the following items for further review. A motion by the full City Council would be necessary to refer these items to staff. Return to the Finance Committee in August to review the citywide implications of: 1) structural revenue and expense growth ensuring expense growth remains at or below that of revenues; and 2) unfunded pension liability. Some specific areas to address include: Look first at current public safety growth rate of 10 to 12 percent in relation to citywide growth rate of 6 percent. Include a review of staffing levels and alternative models. Review of the financial reporting of the unfunded pension liability City of Palo Alto Page 18 Report to City Council on the plan and implications for power redundancy RESOURCE IMPACT This reports summaries and seeks the City Council approval of the FY 2018 Operating and Capital budgets and the supporting fee schedules, rate schedules, and salary schedules in order to support the projections and appropriations included. The approval of the City Manager’s FY 2018 Proposed Capital and Operating Budget as recommended to be amended in this report would result in the appropriation of funds for these services and programs to be completed during the 2018 fiscal year. This report also summarizes and seeks the City Council approval of the proposed FY 2018 Financial Plans and Utility rate changes, as attached. Further information on the impact related to each utility may be found within the attached Financial Plans. ENVIRONMENTAL REVIEW Adoption of the attached Financial Plans and budgeted transfers does not meet the California Environmental Quality Act’s definition of a project, pursuant to Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(4) and (5), because it is a governmental fiscal and administrative activity which will not cause a direct or indirect physical change in the environment. Adoption of the proposed electric and dark fiber 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. Attachments: Attachment A: FY 2018 Budget Adoption Ordinance Attachment A, Exhibit 1: FY 2018 Proposed Budgets & Municipal Fee Report (Previously Distributed) Attachment A, Exhibit 2: Recommended Amendments to the City Manager's FY 2018 Proposed Budget Attachment A, Exhibit 3: FY 2018 Municipal Fee Schedule Amendments Attachment B: Resolution Approving the FY 2018 Electric Utility Financial Plan and Various Electric Utility Reserve Transfers Attachment C: FY 2018 Electric Utility Financial Plan Attachment D: Resolution Adopting Electric Rate Increase and Amending Rate Schedules Attachment E: Electric Utility Rate Schedules E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E- 7-G, E-7 TOU, and E-14 Attachment F: Resolution Approving the FY 2018 Gas Utility Financial Plan Attachment G: FY 2018 Gas Utility Financial Plan Attachment H: Resolution Approving the FY 2018 Wastewater Collection Utility Financial Plan Attachment I: FY 2018 Wastewater Collection Utility Financial Plan City of Palo Alto Page 19 Attachment J: Resolution Adopting FY 2018 Dark Fiber Rate Increase and Amending Rate Schedules EDF-1 and EDF-2 Attachment K: Dark Fiber Optic Rate Schedules EDF-1 and EDF-2 Attachment L: Resolution Approving the FY 2018 Water Utility Financial Plan and Reserve Transfer Attachment M: FY 2018 Water Utility Financial Plan Attachment N: Resolution Amending Resolution No. 9671, Downtown Residential Preferential Parking District Program Attachment O, Exhibit 1: Management Professional Salary Schedule for FY 2018 Attachment O, Exhibit 2: Service Employees International (SEIU) Salary Schedule for FY 2018 Attachment O, Exhibit 3: Limited Hourly Salary Schedules FY 2018 Attachment P: FY 2018 Parking at a Glance Attachment Q: Finance Committee Budget Proceedings Attachment R: Public Letters to Council ATTACHMENT A 1 ORDINANCE NO. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING THE BUDGET FOR FISCAL YEAR 2018 SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 6(g) of Article IV of the Charter of the City of Palo Alto and Chapter 2.28 of the Palo Alto Municipal Code, the City Manager has prepared and submitted to the City Council, by letter of transmittal, a budget proposal for Fiscal Year 2018; and B. Pursuant to the provisions of Section 12 of Article III of the Charter, the Council did, on June 27, 2017, hold public hearings on the budget after publication of notice in accordance with Section 2.28.070 of the Palo Alto Municipal Code; and C. In accordance with the provisions of Chapter 8 of Division 1, of Title 7, commencing with Section 66016 of the Government Code, as applicable, the Council did on June 27, 2017, hold a public hearing on the proposed amendments to the Municipal Fee Schedule, after publication of notice and after availability of the data supporting the amendments was made available to the public at least 10 days prior to the hearing. SECTION 2. Pursuant to Chapter 2.28 of the Palo Alto Municipal Code, the following documents, collectively referred to as “the budget” are hereby approved and adopted for Fiscal Year 2018: (a) The budget document (Exhibit “1”) containing the proposed operating and capital budgets submitted on April 25, 2017, by the City Manager for Fiscal Year 2018, entitled “City of Palo Alto ‐ City Manager’s Fiscal Year 2018 Proposed Budget” covering General Government Funds, Enterprise Funds, Special Revenue Funds, and Internal Service Funds, a copy of which is on file in the Department of Administrative Services, to which copy reference is hereby made concerning the full particulars thereof, and by such reference is made a part hereof; and (b) The Amendments to the City Manager’s Fiscal Year 2018 Proposed Budget, attached hereto as Exhibit “2,” and made a part hereof; and (c) Changes and revised pages in the Table of Organization, as displayed on pages 487 through 503 in “Exhibit 1,” and amended in Exhibit “2” made a part hereof; and ATTACHMENT A 2 (d) Fee changes of the Municipal Fee Schedule attached hereto as Exhibit “3”; and SECTION 3. The sums set forth in the budget for the various departments of the City, as herein amended, are hereby appropriated to the uses and purposes set forth therein. SECTION 4. All expenditures made on behalf of the City, directly or through any agency, except those required by state law, shall be made in accordance with the authorization contained in this ordinance and the budget as herein amended. SECTION 5. Appropriations for the Fiscal Year 2017 that are encumbered by approved purchase orders and contracts for which goods or services have not been received or contract completed, and/or for which all payments have not been made, by the last day of the Fiscal Year 2017 shall be carried forward and added to the fund or department appropriations for Fiscal Year 2018. SECTION 6. The City Manager is authorized and directed to make changes in the department and fund totals and summary pages of the budget necessary to reflect the amendments enumerated and aggregated in the budget as shown in Exhibit “2” and the Fiscal Year 2016 appropriations carried forward as provided in Section 5. SECTION 7. As specified in Section 2.04.320 of the Palo Alto Municipal Code, a majority vote of the City Council is required to adopt this ordinance. SECTION 8. As specified in Section 2.28.140(b) of the Palo Alto Municipal Code, the Council of the City of Palo Alto hereby delegates the authority to invest the City’s funds to the Director of Administrative Services, as Treasurer, in accordance with the City’s Investment Policy for Fiscal Year 2018. SECTION 9. The Council of the City of Palo Alto adopts the changes to the Municipal Fee Schedule as set forth in Exhibit “3”. The amount of the new or increased fees and charges is no more than necessary to cover the reasonable costs of the governmental activity, and the manner in which those costs are allocated to a payer bears a fair and reasonable relationship to the payer’s burden on, or benefits received from, the governmental activity. All new and increased fees shall go into effect immediately; provided that pursuant to Government Code Section 66017, all Planning & Community Environment Department and Development Services Department fees relating to a “development project” as defined in Government Code Section 66000 shall become effective sixty (60) days from the date of adoption. SECTION 10. Fees in the Municipal Fee Schedule are for government services provided directly to the payor that are not provided to those not charged. The amount of this fee does not ATTACHMENT A 3 exceed the reasonable costs to the City of providing the services. Consequently, pursuant to Art. XIII C, Section 1(e)(2), such fees are not a tax. SECTION 11. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 12. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: Enter Date Here AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: _________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: City Attorney City Manager Director of Administrative Services Fiscal Year 2018 City Manager’s Proposed Operating & Capital Budget, & Municipal Fees These documents were originally distributed on April 25, 2017. Printed copies are available upon request for $27 per book (FY 2017 fee). These documents may be viewed at any City of Palo Alto Library or the City’s website: www.cityofpaloalto.org/gov/depts/asd/budget.asp Changes to the Municipal Fee Schedule were distributed in Council Packet on May 4, 2017. The City Manager’s Staff Report can be viewed on the City’s website: http://www.cityofpaloalto.org/civicax/filebank/documents/57714 ‐ At Places memorandum: Electric Vehicle Chargers http://www.cityofpaloalto.org/civicax/filebank/documents/57898 ‐ At Places memorandum: Parking Permit Muni Fees http://www.cityofpaloalto.org/civicax/filebank/documents/57884 In addition, various at places memorandum and presentations were presented throughout the Finance Committee Hearings in May 2017. These documents can be found on the City’s website under “FY 2018 Budget Hearings”: http://www.cityofpaloalto.org/gov/depts/asd/budget.asp ATTACHMENT A, EXHIBIT 1 Department Adjustment Adjustment GENERAL FUND (102) Administrative Services Reduce Vehicle Replacement and Maintenance Fund Allocated Charges Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action reduces the General Fund's contribution to the Vehicle Fund for vehicle replacement by $50,000. A corresponding reduction to the scheduled vehicle and equipment replacement capital project for FY 2018 (VR‐18000) will remove a $50,000 forklift from the list of vehicles to be replaced in FY 2018, as detailed in Attachment A Exhibit 2. This action was recommended in part to help balance the General Fund. (50,000)$ City Auditor Citizen Survey on Code Enforcement Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action provides $20,000 to the City Auditor's Office to conduct a citizen survey of resident opinions on the quality of code enforcement in Palo Alto. Information collected from the survey will augment the Code Enforcement Audit and improve the quality of the Code Enforcement Program. In addition, funding will provide some capacity for customized questions in the City's annual National Citizen Survey. 20,000$ City Manager's Office Reallocation of Parking Evaluation Study Funding This action reallocates $150,000 in one‐time funding from the City Manager's Office to the Non‐ Departmental section of the FY 2018 Proposed Operating Budget. These funds are recommended for an outside study that will help inform the path forward for the City's parking and transportation efforts, contribute to the integration of a strategic vision across each of those efforts, and review what organizational structure would best manage these new initiatives. Given the citywide nature of this evaluation, it is recommended to reallocate funding from the City Manager's Office to Non‐Departmental section to better represent that it is a citywide initiative. (150,000)$ Community Services Storm Drain Ballot Measure Rate Change This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 11,205$ Community Services Youth Community Services Consistent with the Finance Committee recommended revisions approved on May 18, 2017 this action provides $50,000 per year for the next three years to Youth Community Services (YCS) for them to take advantage of the Santa Clara County matching grant program. This funding, along with the County's matching funding, will allow YCS to work on their 'Youth Connectedness Initiative' to increase community involvement and foster a more connected environment through collaborative, service‐based activities. 50,000$ Fire Department Storm Drain Ballot Measure Rate Change This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 274$ Library Storm Drain Ballot Measure Rate Change This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 400$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 Attachment A, Exhibit 2 Page 1 Department Adjustment Adjustment GENERAL FUND (102) CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 Non‐ Departmental Reallocation of Parking Evaluation Study Funding This action reallocates $150,000 in one‐time funding to the Non‐Departmental section from the City Manager's Office in the FY 2018 Proposed Operating Budget. These funds are recommended for an outside study that will help inform the path forward for the City's parking and transportation efforts, contribute to the integration of a strategic vision across each of those efforts, and review what organizational structure would best manage these new initiatives. Given the citywide nature of this evaluation, it is recommended to reallocate funding from the City Manager's Office to Non‐Departmental section to better represent that it is a citywide initiative. 150,000$ Non‐ Departmental Property Tax Increase This action increases the estimate for property tax revenue in FY 2018 by $200,000. This increase reflects updated information from the Santa Clara County Assessor's Office, which now estimates an increase of 6.9% from FY 2017, an increase of 0.4% more than the original estimate, which was a year over year increase of 6.5%. 200,000$ Police Department Storm Drain Ballot Measure Rate Change This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 72$ Planning & Community Environment Transfer to California Avenue Fund from General Fund Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action eliminates a transfer from the General Fund to the California Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs of parking permits were recommended. In the California Avenue Fund, employee permits are recommended to increase from $149.00 to $365.00 per year, an increase of $216.00. The permit cost increase will ensure sufficient resources are available in the California Avenue Fund for various initiatives and minimize the General Fund subsidy. (75,000)$ Planning & Community Environment Transfer to University Avenue Fund Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action increases a transfer from the General Fund to the University Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs of parking permits were recommended. In the University Avenue Fund, employee parking permit prices were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The General Fund transfers funds to the University Avenue Fund each year to provide parking permits for City staff; this increase represents the marginal costs associated with the increase in permit costs for City staff permits. 97,944$ Public Works Storm Drain Ballot Measure Rate Change This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 1,747$ Attachment A, Exhibit 2 Page 2 Department Adjustment Adjustment GENERAL FUND (102) CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 Public Works Tree Trimming Seven Year Cycle Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action will continue tree trimming on a seven year cycle, which was first approved as part of the Fiscal Year 2017 Adopted Operating Budget. The initial proposed Fiscal Year 2018 budget recommended transitioning to a 10 year cycle in order to minimize the costs for the remainder of the current contract. This funding restores tree trimming to a seven year cycle, thereby continuing the current level of service for the duration of the contract, which ends in FY 2019. 338,220$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. (194,862)$ GENERAL FUND (102) SUBTOTAL 200,000$ 200,000$ Attachment A, Exhibit 2 Page 3 Department Adjustment Adjustment GENERAL FUND CAPITAL IMPROVEMENT FUND (471) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2, excluding the change for the JMZ Renovation Project, which is detailed in greater length below. 1,280,713$ Capital JMZ Renovation Project This action establishes a Junior Museum and Zoo Renovation (AC‐18001) Project in the amount of $706,000, offset by a reduction in FY 2019 funding to the Rinconada Park Improvements Project (PE‐08001). The Community Services Department is planning to move the Junior Museum and Zoo (JMZ) operation to the Cubberley Community Center in Fiscal Year 2018 to vacate the current site ahead of the JMZ Rebuild Project that is expected to commence in spring 2018. Expenses consist of $30,000 in design costs for renovations at Cubberley, $376,000 in construction and contingency costs, and $300,000 in permit and inspection fees for the temporary reconfiguration and operation of JMZ at Cubberley. This will minimize the disruption to services during the move and ensure the continuity of JMZ operations. ‐$ 706,000$ Capital Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. ‐$ (1,986,713)$ GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL ‐$ ‐$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 Attachment A, Exhibit 2 Page 4 Department Adjustment Adjustment ENTERPRISE FUNDS AIRPORT ENTERPRISE FUND (530) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2. 45,000$ Public Works Airport Property Rental and Tie Down Revenue This action increases the estimate for tie down lease and property rental revenues at the Airport to align with projections related to the leases ending with the Fixed Base Operators (FBOs). Airport tie down fees and rental revenues were previously collected by the FBOs; their leases expired in April 2017. As a result of the expiration of the FBO leases, revenue projections are recommended to increase. This increase has already been factored into the analysis of the Airport's anticipated finances over the next five years. 500,000$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. 455,000$ AIRPORT ENTERPRISE FUND (530) SUBTOTAL 500,000$ 500,000$ ELECTRIC FUND (513 & 523) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2. #REF!(4,905,165)$ Utilities Transfer to the University Avenue Parking Permit Fund Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action increases a transfer from the Electric Fund to the University Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs of parking permits were recommended. In the University Avenue Fund, employee parking permit prices were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The Electric Fund transfers funds to the University Avenue Fund each year to provide parking permits for City staff; this increase represents the marginal costs associated with the increase in permit costs for City staff permits. 7,774$ Utilities Storm Drain Ballot Measure Rate Changes This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 696$ Utilities Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. 4,896,695$ ELECTRIC FUND (513 & 523) SUBTOTAL #REF!‐$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 Attachment A, Exhibit 2 Page 5 Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 FIBER OPTICS FUND (533) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2. ‐$ (166,370)$ Utilities Transfer to the University Avenue Parking Permit Fund Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action increases a transfer from the Fiber Optics Fund to the University Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs of parking permits were recommended. In the University Avenue Fund, employee parking permit prices were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The Fiber Optics Fund transfers funds to the University Avenue Fund each year to provide parking permits for City staff; this increase represents the marginal costs associated with the increase in permit costs for City staff permits. 499$ Utilities Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. 165,871$ FIBER OPTICS FUND (533) SUBTOTAL ‐$ ‐$ GAS FUND (514 & 524) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2. ‐$ 828,983$ Utilities Transfer to the University Avenue Parking Permit Fund Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action increases the transfer from the Gas Fund to the University Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs of parking permits were recommended. In the University Avenue Fund, employee parking permit prices were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The Gas Fund transfers funds to the University Avenue Fund each year to provide parking permits for City staff; this increase represents the marginal costs associated with the increase in permit costs for City staff permits. 3,766$ Utilities Storm Drain Ballot Measure Revenue Increase This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 13$ Utilities Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. (832,762)$ GAS FUND (514 & 524) SUBTOTAL ‐$ ‐$ Attachment A, Exhibit 2 Page 6 Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 REFUSE FUND (525) Public Works Storm Drain Ballot Measure Rate Change This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 152$ Public Works Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. (152)$ REFUSE FUND (525) SUBTOTAL ‐$ ‐$ STORM DRAINAGE FUND (528) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2. ‐$ 450,000$ Public Works Storm Water Ballot Measure Rate Changes This action increases the revenue estimate for the Storm Drainage Fund to reflect rate increases approved through a ballot measure. In April 2017 the Storm Water Management fee was approved by a majority of property owners via a ballot‐by‐mail process, which established a base rate of $13.65 per Equivalent Residential Unit (ERU) per month along with a provision that the City Council could increase the rate on an annual basis by the local inflation rate (as measured by the Consumer Price Index) or 6 percent, whichever is less. Under the provisions of the ballot measure, the base component of the fee of $7.48 per ERU per month would be charged monthly until terminated by the City Council. This action aligns expected revenues with these changes; corresponding increases to City expenses for the City's Storm Drain costs are detailed in the respective funds throughout this document. 314,977$ Public Works Watershed Protection Funding Alignment (Shift 2.21 FTE from Wastewater Treatment Fund) This action reallocates 2.21 FTE from the Wastewater Treatment (WWT) Fund to the Storm Drainage Fund. The Storm Drain Blue Ribbon Committee recommended that staff working on watershed protection activities should be funded from the Storm Drainage Fund to better align their job duties and functions with the appropriate source of funding. This will also ensure sufficient resources are available to enforce compliance with new Municipal Regional Storm Water Permit regulations related to watershed protection. 346,648$ Public Works Green Infrastructure This action provides $341,000 to develop and implement a Green Infrastructure Plan required by the new municipal regional permit regulations. To successfully meet the goals of the Green Infrastructure Plan, the storm drain infrastructure will be updated. Improvements will contribute to a more resilient and sustainable system that slows storm water runoff by dispersing it to areas with vegetation and will promote bioretention to clean storm water runoff. 341,000$ Attachment A, Exhibit 2 Page 7 Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 Public Works Storm Water Management Regulatory Requirements This action adds a 1.0 FTE Associate Engineer position as well as $40,000 for consulting services to ensure the City is in compliance with municipal regional storm water permit regulatory requirements implemented by the Regional Water Board on January 1, 2016. In addition to implementing a Green Infrastructure Plan, discussed above the revised regulations include litter assessments, Non‐Profits (C3) compliance, and increased storm water inspections. This action will ensure the City has sufficient resources to enforce compliance with the storm water permit requirements. Table of Organization Amendment Consistent with the Storm Water Management Regulatory Requirements proposal detailed above, this action amends the Table of Organization, pp. 495‐497 of the Proposed Operating Budget distributed on April 25, 2017, for Public Works Enterprise Funds by adding 1.0 Associate Engineer. This increases the number of Associate Engineers in the Public Works' Enterprise Funds from 1.99 to 2.99, and increases the total number of full‐time FTE in the Public Works' Enterprise Funds from 100.19 to 101.19. The total FTE city‐wide increases from 1,057.95 to 1,058.95 as a result of this action. 188,189$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. (1,010,860)$ STORM DRAINAGE FUND (528) SUBTOTAL 314,977$ 314,977$ WASTEWATER COLLECTION FUND (527) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2. ‐$ (1,707,028)$ Utilities Transfer to the University Avenue Parking Permit Fund Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action increases a transfer from the Wastewater Collection Fund to the University Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs of parking permits were recommended. In the University Avenue Fund, employee parking permit prices were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The Wastewater Collection Fund Transfers funds to the University Avenue Fund each year to provide parking permits for City staff; this increase represents the marginal costs associated with the increase in permit costs for City staff permits. 2,031$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. 1,704,997$ WASTEWATER COLLECTION FUND (527) SUBTOTAL ‐$ ‐$ Attachment A, Exhibit 2 Page 8 Department Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 WASTEWATER TREATMENT FUND (526) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2. 7,000,000$ 7,000,000$ Public Works Watershed Protection Funding Alignment (Shift 2.21 FTE from Wastewater Treatment Fund) This action reallocates 2.21 FTE from the Wastewater Treatment (WWT) Fund to the Storm Drainage Fund. The Storm Drain Blue Ribbon Committee recommended that staff working on watershed protection activities should be funded from the Storm Drainage Fund to better align their job duties and functions with the appropriate source of funding. This will also ensure sufficient resources are available to enforce compliance with new Municipal Regional Storm Water Permit regulations related to watershed protection. (346,648)$ Public Works Storm Drain Ballot Measure Rate Change This action appropriates the expenses associated with the marginal increase to Storm Drain 1,659$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. 344,989$ WASTEWATER TREATMENT FUND (526) SUBTOTAL 7,000,000$ 7,000,000$ WATER FUND (522) Capital Capital Improvement Project Adjustments ‐$ (254,575)$ Utilities Transfer to the University Avenue Parking Permit Fund Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action increases the transfer from the Water Fund to the University Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs of parking permits were recommended. In the University Avenue Fund, employee parking permit prices were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The Water Fund transfers funds to the University Avenue Fund each year to provide parking permits for City staff; this increase represents the marginal costs associated with the increase in permit costs for City staff permits. 3,356$ Utilities Storm Drain Ballot Measure Rate Change This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 61$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset adjustments recommended in this report. 251,158$ WATER FUND (522) SUBTOTAL ‐$ ‐$ Attachment A, Exhibit 2 Page 9 Department Adjustment Adjustment INTERNAL SERVICE FUNDS GENERAL LIABILITY FUND (689) General Liability Buena Vista Mobile Home Park This action appropriates funding necessary to resolve and settle Buena Vista MHP Residents Association v. City of Palo Alto, Santa Clara County Superior Court Case No. 2015‐1‐CV‐284763. As discussed in the Special Revenue Fund section of this document, the City is partnering with Santa Clara County to assist the Housing Authority of the County of Santa Clara (HACSC) to acquire, improve, and operate the Buena Vista Mobile Home Park, according to the terms of a purchase agreement reached in May 2017 between HACSC and the Buena Vista Mobile Home Park owner. The funds are a compromise settlement of a claim for attorneys' fees from the Residents Association. 375,000$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset the net changes resulting from the actions recommended in this report. (375,000)$ GENERAL LIABILITY FUND (689) SUBTOTAL ‐$ ‐$ INFORMATION TECHNOLOGY FUND (682) Information Technology Transfer to the University Avenue Parking Permit Fund Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action increases the transfer from the Information Technology Fund to the University Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs of parking permits were recommended. In the University Avenue Fund, employee parking permit prices were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The Information Technology Fund transfers funds to the University Avenue Fund each year to provide parking permits for City staff; this increase represents the marginal costs associated with the increase in permit costs for City staff permits. 7,656$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset the net changes resulting from the actions recommended in this report. (7,656)$ INFORMATION TECHNOLOGY FUND (682) SUBTOTAL ‐$ ‐$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 Attachment A, Exhibit 2 Page 10 Department Adjustment Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 VEHICLE REPLACEMENT & MAINTENANCE FUND (681) Capital Capital Improvement Project Adjustments This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2, excluding the adjustment to VR‐18000, which is detailed in greater length below. ‐$ 400,000$ Public Works Reduce Vehicle and Maintenance Replacement Fund Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action reduces the General Fund's contribution to the Vehicle Fund for vehicle replacement by $50,000. A corresponding reduction to the scheduled vehicle and equipment replacement capital project for FY 2018 (VR‐18000) will remove a $50,000 forklift from the list of vehicles to be replaced in FY 2018, as detailed in Attachment A Exhibit 2. This action was recommended in part to help balance the General Fund. (50,000)$ (50,000)$ Fund Balance Adjustment to Fund Balance This action decreases the fund balance to offset the net changes resulting from the actions recommended in this report. (300,000)$ VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL (50,000)$ (50,000)$ Attachment A, Exhibit 2 Page 11 Department Adjustment Adjustment SPECIAL REVENUE FUNDS BELOW MARKET RATE FUND (230) Planning & Community Environment Below Market Rate Housing Contract Consistent with staff recommended changes approved by Finance Committee on May 18th, 2017, this actions increases contract service funding necessary for Palo Alto Housing Corporation (PAHC) oversight of the City's Below Market Rate (BMR) housing program. Activities performed include administering the sale and re‐sale of new and existing BMR owner units, maintaining the home purchase waiting list, monitoring occupancy of BMR rental units, providing advice and consultation to the City regarding negotiations of BMR agreements with developers, and addressing special issues related to the program as a whole. 137,000$ Fund Balance Ending Fund Balance This action decreases the fund balance to offset the actions recommended in this report. (137,000)$ BELOW MARKET RATE FUND (230) SUBTOTAL ‐$ ‐$ CALIFORNIA AVENUE PARKING PERMITS FUND (237) Planning & Community Environment California Avenue Parking Permit Revenue Alignment Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action increases the revenue estimates for the California Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs of parking permits were recommended. In the California Avenue Fund, employee permits in lots and garages are recommended to increase from $149.00 to $365.00 per year, an increase of $216.00. This increase will ensure sufficient resources are available in the California Avenue Fund for various initiatives and minimize the General Fund subsidy. 100,000$ Planning & Community Environment Storm Drain Ballot Measure Rate Change This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 136$ Planning & Community Environment Transfer to California Avenue Fund from General Fund Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action eliminates a transfer from the General Fund to the California Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs of parking permits were recommended. In the California Avenue Fund, employee permits in lots and garages are recommended to increase from $149.00 to $365.00 per year, an increase of $216.00. The permit cost increase will ensure sufficient resources are available in the California Avenue Fund for various initiatives and minimize the General Fund subsidy. (75,000)$ Fund Balance Ending Fund Balance This action increases the fund balance to offset the actions recommended in this report. 24,864$ CALIFORNIA AVENUE PARKING PERMITS FUND (237) SUBTOTAL 25,000$ 25,000$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 Attachment A, Exhibit 2 Page 12 Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 HOUSING IN‐LIEU/COMMERCIAL FUND (234) Planning & Community Environment Buena Vista Mobile Home Park This action appropriates funding necessary for the City to complete its payment commitment to resolve matters related to the Buena Vista Mobile Home Park (BVMHP) anticipated to occur in Fiscal Year 2018. In June 2015, the City Council set aside a total of $14.5 million in the Residential and Commercial Housing In‐Lieu Fund reserves for the purpose of preserving affordable housing at BVMHP. In June 2016, the Council approved a Memorandum of Understanding with Santa Clara County and the Housing Authority of the County of Santa Clara (HACSC), where the City and County committed to provide $14.5 million each to assist HACSC to acquire and improve BVMHP and operate it as an affordable mobile home park for up to 50 years. In May 2017, HACSC and the private‐party owner of BVMHP entered into a purchase and sale agreement. The transaction is expected to close in September 2017, pending division of a portion of the property fronting El Camino Real and approval of a regulatory and funding agreement between the City, County and HACSC. 7,700,000$ Fund Balance Ending Fund Balance This action decreases the fund balance to offset the actions recommended in this report. (7,700,000)$ HOUSING IN‐LIEU/COMMERCIAL FUND (234) SUBTOTAL ‐$ ‐$ HOUSING IN‐LIEU/RESIDENTIAL FUND (233) Planning & Community Environment Buena Vista Mobile Home Park This action appropriates funding necessary for the City to complete its payment commitment to resolve matters related to the Buena Vista Mobile Home Park (BVMHP) anticipated to occur in Fiscal Year 2018. In June 2015, the City Council set aside a total of $14.5 million in the Residential and Commercial Housing In‐Lieu Fund reserves for the purpose of preserving affordable housing at BVMHP. In June 2016, the Council approved a Memorandum of Understanding with Santa Clara County and the Housing Authority of the County of Santa Clara (HACSC), where the City and County committed to provide $14.5 million each to assist HACSC to acquire and improve BVMHP and operate it as an affordable mobile home park for up to 50 years. In May 2017, HACSC and the private‐party owner of BVMHP entered into a purchase and sale agreement. The transaction is expected to close in September 2017, pending division of a portion of the property fronting El Camino Real and approval of a regulatory and funding agreement between the City, County and HACSC. 6,800,000$ Fund Balance Ending Fund Balance This action decreases the fund balance to offset the actions recommended in this report. (6,800,000)$ HOUSING IN‐LIEU/RESIDENTIAL FUND (233) SUBTOTAL ‐$ ‐$ Attachment A, Exhibit 2 Page 13 Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 RESIDENTIAL PERFERRED PARKING (RPP) FUND (239) Planning & Community Environment Parking Permit Revenue Alignment Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action increases the estimate for revenue from RPP parking permit sales. In order to align prices with Downtown and California Avenue garages and remove the incentive for employees to park in neighborhoods, full price Employee Parking Permits in the Downtown district RPP will increase from $466.00 to $730.00 per year, an increase of $264.00 or 57%. Full price Employee RPP permits in the Evergreen Park/Mayfield district will increase from $149.00 to $365.00 per year, representing increases of $216.00 or 145%, though these fees will not go into effect until the program pilot period ends on March 31, 2018 (per Resolution No. 9663). Additionally, the resident Residential Parking Permit prices in all districts are recommended to change from a range between $40.00 ‐ $100.00 to $50.00 per year, representing a percentage change between a reduction of 50% to an increase of 20%. The net impact of this action is an increase in revenue estimates of $106,000 in the Downtown district and a reduction of $10,000 in the Crescent Park district. As a result of the pilot period, no adjustments have been made to revenue estimates in the Evergreen Park/Mayfield district. Price adjustments in this district will be factored in Fiscal Year 2019 estimates. 96,000$ Fund Balance Ending Fund Balance This action increases the fund balance to offset the actions recommended in this report. 96,000$ RESIDENTIAL PERFERRED PARKING (RPP) FUND (239) SUBTOTAL 96,000$ 96,000$ Attachment A, Exhibit 2 Page 14 Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET Revenues Expenses ATTACHMENT A, EXHIBIT 2 UNIVERSITY AVENUE PARKING PERMITS FUND (236) Planning & Community Environment Parking Permit Revenue Alignment Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this action increases the revenue estimate for parking permit sales. In order to ensure sufficient funding of parking initiatives and to support the recommendation to increase Transportation Management Authority (TMA) funding, discussed in more detail in the following transaction, the Employee Parking Permit rate is recommended to increase from $466.00 to730.00, an increase of $264.00 or 57%. Also recognized as part of this transaction is an increase in transfers from the General Fund ($97,944) and Information Technology and Utilities Funds ($25,080) for the purchase of Employee Parking Permits provided to City staff. 565,524$ Planning & Community Environment Transportation Management Authority (TMA) Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this actions increases expenses by $345,000 for a total funding of $480,000 in Fiscal Year 2018 for TMA services. In accordance with the objective to reduce single occupancy vehicle (SOV) rates, TMA estimates that the additional funding could shift up to 750 people to alternate modes, thereby achieving a 14% reduction in SOV rates. This action is funded through recommended increases in parking permit rates, thereby minimizing the General Fund subsidy for this activity. 345,000$ Planning & Community Environment Storm Drain Ballot Measure Rate Change This action appropriates the expenses associated with the marginal increase to Storm Drain rates as a result of the passage of the Storm Drain Ballot Measure. More information can be found in the Storm Drain section of this document. 618$ Fund Balance Ending Fund Balance This action increases the fund balance to offset the actions recommended in this report. 219,906$ UNIVERSITY AVENUE PARKING PERMITS FUND (236) SUBTOTAL 565,524$ 565,524$ Attachment A, Exhibit 2 Page 15 Project Title Number Revenue Expense Comments Airport Apron Reconstruction AP‐16000 $ 30,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Wildlife Hazard Plan AP‐16002 $ 15,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Total $ ‐ $ 45,000 Baylands Nature Interpretive Center Exhibit Improvements AC‐14001 $ 56,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Performing Arts Visual Venues Soft Goods Replacement AC‐17000 $ 55,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. JMZ Renovation AC‐18001 $ 706,000 Establish a Junior Museum and Zoo Renovation Project and recommend an appropriation of $706,000 to fund design and construction costs associated with renovations at Cubberley. This funding is offset by a reduction in FY 2019 funding to the Rinconada Park Improvements Project (PE‐ 08001). Art in Public Spaces AC‐86017 $ (2,500) Adjust for reappropriation based on more up‐to‐ date current year estimates. Open Space Trails and Amenities OS‐00001 $ 18,652 Adjust for reappropriation based on more up‐to‐ date current year estimates. Open Space Lakes and Pond Maintenance OS‐00002 $ (27,791) Adjust for reappropriation based on more up‐to‐ date current year estimates. Off‐Road Pathway Resurfacing and Repair OS‐09001 $ 20,587 Adjust for reappropriation based on more up‐to‐ date current year estimates. Rinconada Library New Construction and Improvements PE‐11000 $ (15,389) Adjust for reappropriation based on more up‐to‐ date current year estimates. Structural Assessment of City Bridges PE‐13012 $ 25,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Baylands Boardwalk Improvements PE‐14018 $ (22,199) Adjust for reappropriation based on more up‐to‐ date current year estimates. Fire Station 3 Replacement PE‐15003 $ 55,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Mitchell Park Adobe Creek Bridge Replacement PE‐17000 $ (2,994) Adjust for reappropriation based on more up‐to‐ date current year estimates. City Hall Floor 4 Remodel PE‐17008 $ (9,573) Adjust for reappropriation based on more up‐to‐ date current year estimates. City Hall Floor 5 Remodel PE‐17009 $ (7,019) Adjust for reappropriation based on more up‐to‐ date current year estimates. New California Avenue Area Parking Garage PE‐18000 $ (38,264) Adjust for reappropriation based on more up‐to‐ date current year estimates. Building System Improvements PF‐01003 $ 100,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Facility Interior Finishes Replacements PF‐02022 $ 40,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Americans with Disabilities Act Compliance PF‐93009 $ (1,163) Adjust for reappropriation based on more up‐to‐ date current year estimates. ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 CAPITAL IMPROVEMENT PROGRAM AIRPORT FUND CAPITAL IMPROVEMENT FUND Attachment A, Exhibit 2 Page 16 Project Title Number Revenue Expense Comments ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 CAPITAL IMPROVEMENT PROGRAM Tennis and Basketball Court Resurfacing PG‐06001 $ 89,039 Adjust for reappropriation based on more up‐to‐ date current year estimates. Benches, Signage, Walkways, Perimeter Landscaping PG‐06003 $ 1,172 Adjust for reappropriation based on more up‐to‐ date current year estimates. Stanford/Palo Alto Playing Fields Soccer Turf Replacement PG‐13001 $ 502,139 Adjust for reappropriation based on more up‐to‐ date current year estimates. Golf Reconfiguration & Baylands Athletic Center Improvements PG‐13003 $ 53,991 Adjust for reappropriation based on more up‐to‐ date current year estimates. Buckeye Creek Hyrology Study PG‐15000 $ (2,095) Adjust for reappropriation based on more up‐to‐ date current year estimates. Midtown Connector PL‐14001 $ 53,120 Adjust for reappropriation based on more up‐to‐ date current year estimates. Residential Preferential Parking PL‐15003 $ 40,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Downtown Parking Wayfinding PL‐15004 $ 300,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Total $ ‐ $ 1,986,713 Utility Fund Capital Corrections Multiple Projects $ (5,856,030)As discussed in the Budget Wrap‐Up memorandum submitted to the Finance Committee on May 18, 2017, the "Capital Improvement" expense category was inadvertently overstaed in the Utility Funds. This action corrects the budget to reflect the lower level of expenses anticipated in FY 2018. SCADA System Upgrades EL‐02010 $ 59,196 Adjust for reappropriation based on more up‐to‐ date current year estimates. Electric Utility Geographic Information System EL‐02011 $ (63,663) Adjust for reappropriation based on more up‐to‐ date current year estimates. Utility Site Security Improvements EL‐04012 $ 15,613 Adjust for reappropriation based on more up‐to‐ date current year estimates. 230 Kv Electric Intertie EL‐06001 $ 14,255 Adjust for reappropriation based on more up‐to‐ date current year estimates. Rebuild Underground District 24 EL‐10006 $ 277,087 Adjust for reappropriation based on more up‐to‐ date current year estimates. Rebuild Underground District 15 EL‐11003 $ 30,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Underground District 47 ‐ Middlefield, Homer, Webster, Addison EL‐11010 $ 476,976 Adjust for reappropriation based on more up‐to‐ date current year estimates. Smart Grid Technology Installation EL‐11014 $ (521,766) Adjust for reappropriation based on more up‐to‐ date current year estimates. Underground District 46 ‐ Charleston/El Camino Real EL‐12001 $ (497,480) Adjust for reappropriation based on more up‐to‐ date current year estimates. Underground Distribution System Security EL‐13007 $ 290,534 Adjust for reappropriation based on more up‐to‐ date current year estimates. Colorado/Hopkins System Improvement EL‐15000 $ 50,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Capacitor Bank Installation EL‐16002 $ 350,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. East Meadows Circles 4/12Kv Conversion EL‐17001 $ 50,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. ELECTRIC FUND Attachment A, Exhibit 2 Page 17 Project Title Number Revenue Expense Comments ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 CAPITAL IMPROVEMENT PROGRAM HCB Pilot Wire Relay Replacement EL‐17005 $ 107,559 Adjust for reappropriation based on more up‐to‐ date current year estimates. Facility Relocation for Caltrain Modernization Project EL‐17007 $ 150,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Communications System Improvements EL‐89031 $ (137,446) Adjust for reappropriation based on more up‐to‐ date current year estimates. Substation Protection Improvements EL‐89038 $ 200,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Substation Facility Improvements El‐89044 $ 100,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Total $ ‐ $ (4,905,165) Utility Fund Capital Corrections Multiple Projects $ (166,370)As discussed in the Budget Wrap‐Up memorandum submitted to the Finance Committee on May 18, 2017, the "Capital Improvement" expense category was inadvertently overstaed in the Utility Funds. This action corrects the budget to reflect the lower level of expenses anticipated in FY 2018. Total $ ‐ $ (166,370) Utility Fund Capital Corrections Multiple Projects $ (2,666,977)As discussed in the Budget Wrap‐Up memorandum submitted to the Finance Committee on May 18, 2017, the "Capital Improvement" expense category was inadvertently overstaed in the Utility Funds. This action corrects the budget to reflect the lower level of expenses anticipated in FY 2018. Gas Distribution System Improvements GS‐11002 $ 241,178 Adjust for reappropriation based on more up‐to‐ date current year estimates. Gas Main Replacement ‐ Project 22 GS‐12001 $ 3,254,782 Adjust for reappropriation based on more up‐to‐ date current year estimates. Total $ ‐ $ 828,983 Storm Drain System Replacement and Rehabilitation SD‐06101 $ ‐ $ 450,000 Continue funding for SD‐06101 for Storm Drain System Replacement and Rehabilitation. Total $ ‐ $ 450,000 Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2015 VR‐15000 $ 50,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2016 VR‐16000 $ 150,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2017 VR‐17000 $ 200,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2018 VR‐18000 $ (50,000) Consistent with Finance Committee's recommended revisions to the FY 2018 Budget approved on May 18th, 2017, adjust for reduction of Electric Forklift. Total $ ‐ $ 350,000 GAS FUND VEHICLE REPLACEMENT FUND STORM DRAIN FUND FIBER OPTICS FUND Attachment A, Exhibit 2 Page 18 Project Title Number Revenue Expense Comments ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 CAPITAL IMPROVEMENT PROGRAM Utility Fund Capital Corrections Multiple Projects $ (2,155,768)As discussed in the Budget Wrap‐Up memorandum submitted to the Finance Committee on May 18, 2017, the "Capital Improvement" expense category was inadvertently overstaed in the Utility Funds. This action corrects the budget to reflect the lower level of expenses anticipated in FY 2018. Wastewater Collection System Rehabilitation/Augmentation Project 27 WC‐14001 $ 97,440 Adjust for reappropriation based on more up‐to‐ date current year estimates. Wastewater Collection System Rehabilitation/Augmentation Project 28 WC‐15001 $ 351,300 Adjust for reappropriation based on more up‐to‐ date current year estimates. Total $ ‐ $ (1,707,028) New Dewatering and Loadout Facility WQ‐14001 $ 7,000,000 $ 7,000,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Total $ 7,000,000 $ 7,000,000 Utility Fund Capital Corrections Multiple Projects $ (1,395,292)As discussed in the Budget Wrap‐Up memorandum submitted to the Finance Committee on May 18, 2017, the "Capital Improvement" expense category was inadvertently overstaed in the Utility Funds. This action corrects the budget to reflect the lower level of expenses anticipated in FY 2018. Water Main Replacement ‐ Project 26 WS‐12001 $ 1,143,000 Adjust for reappropriation based on more up‐to‐ date current year estimates. Seismic Water System Upgrades WS‐09000 $ (2,283) Adjust for reappropriation based on more up‐to‐ date current year estimates. Total $ ‐ $ (254,575) $ 7,000,000 $ 3,627,558 TOTAL CIP ADJUSTMENTS WASTEWATER COLLECTION FUND WASTEWATER TREATMENT FUND WATER FUND Attachment A, Exhibit 2 Page 19 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 New Fees Department Fee Title Justification Administrative Services Duplicate Receipt New fee to recover costs of Revenue Collections staff time for processing duplicate receipt requests. Community Services Additional Key New fee to recover costs of providing additional keys to lease holders at the Cubberley Community Center. Community Serivces Corporate Package (Add‐on Only) Fee created, in response to customer demand, to consolidate and offer commonly rented equipment, such as audiovisual equipment, tables, chairs, as a single package at a discounted rate instead of having to rent each item separately. Resident Rate Non‐Resident Rate $3,800.00 $4,400.00 Community Serivces Portable Dance Floor New fee to charge for setting up and installing a portable dance floor for meetings or special events. Development Services Technology Surcharge New surcharge to recover costs associated with a new technical support service contract for the City's permit software platform. Library 3‐D Printing New fee to recover some of the costs associated with providing this service, including costs for materials and staff time maintaining and troubleshooting printers. Planning & Community Environment College Terrace RPP ‐ Daily Resident Parking Permit Establishes a separate "Day Use Permit" for residents in the College Terrace RPP district. Previously, all "Day Use Permits" were authorized under the global fee titled "Residential ‐ Day Use Permit". This "new" fee is intended to bring clarity to individual RPP districts and all the fees that apply. Planning & Community Environment Crescent Park NOP RPP ‐ Annual Resident Parking Permit Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, Annual Resident Parking Permits in RPP districts are recommended to be standardized throughout program at $50.00 per year. This replaces the fee titled "Residential ‐ Other (Trial)" to specify Crescent Park, remove the trial period language, and reduce the price from $100.00 per year. Crescent Park is a No Overnight Parking (NOP) program, where permits for day use do not apply. Planning & Community Environment Crescent Park NOP RPP ‐ Daily Resident Parking Permit Establishes a separate "Day Use Permit" for residents in the Crescent Park RPP district. Previously, all "Day Use Permits" were authorized under the global fee titled "Residential ‐ Day Use Permit". This "new" fee is intended to bring clarity to individual RPP districts and all the fees that apply. Crescent Park is a No Overnight Parking (NOP) program, where permits for day use do not apply. Planning & Community Environment Downtown RPP ‐ Daily Resident Parking Permit Establishes a separate "Day Use Permit" for residents in the Downtown RPP district. Previously, all "Day Use Permits" were authorized under the global fee titled "Residential ‐ Day Use Permit". This "new" fee is intended to bring clarity to individual RPP districts and all the fees that apply. FY 2018 Proposed Fee $125.00 each 1.8% of each transaction $6.00 each $15.00 each $150.00 to $250.00 per rental Community Serivces $2.00 to $5.00 each Package Rental ‐ Exclusive Use (Saturday 2:00 PM to Midnight) Fee created to offer an option for an exclusive 10‐hour Saturday rental at the Lucie Stern Community Room and Patio area at a discounted rate. $50.00 per year $5.00 per day $5.00 per day $5.00 per night Attachment A, Exhibit 3, Page 1 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 New Fees Department Fee Title Justification Planning & Community Environment Evergreen Park ‐ Mayfield RPP ‐ Annual Resident Parking Permit New fee effective at the sunset of the Evergreen Park ‐ Mayfield RPP District Resolution #9663 on March 31, 2018. This fee was previously approved in this resolution as "Resident Permit" at $50.00 per year for the duration of the pilot period, ending on March 31, 2018. Consistent with the Finance Committee recommended revisions approved on May 18th to standardize Annual Resident permits throughout the RPP program at $50.00 per year, this fee will remain unchanged at the end of the pilot period. Planning & Community Environment Evergreen Park ‐ Mayfield RPP ‐ Daily Resident Parking Permit New fee effective at the sunset of the Evergreen Park ‐ Mayfield RPP District Resolution #9663 on March 31, 2018. This fee was previously approved in this resolution as "Resident Visitor Daily Permit" at $5.00 per year for the duration of the pilot period, ending on March 31, 2018. The fee is not proposed to increase after the pilot period. Planning & Community Environment Evergreen Park ‐ Mayfield RPP ‐ Daily Employee Parking Permit New fee effective at the sunset of the Evergreen Park ‐ Mayfield RPP District Resolution #9663 on March 31, 2018. This fee was previously approved in this resolution as "Employee Visitor Daily Permit" at $5.00 per day for the duration of the pilot period. The increased rate is intended to match the rate charged at garages, removing the incentive for employees to park in neighborhoods. Planning & Community Environment Evergreen Park ‐ Mayfield RPP ‐ Full Price Employee Parking Permit New fee effective at the sunset of the Evergreen Park ‐ Mayfield RPP District Resolution #9663 on March 31, 2018. This fee was previously approved in this resolution as "Standard Annual Permit" at $149.00 per year for the duration of the pilot period. Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, Full Price Employee RPP Parking Permits are aligned to the same price as garages, removing the incentive for employees to park in neighborhoods. A six month period is recommended rather than an annual amount due to employee turnover. Planning & Community Environment Evergreen Park ‐ Mayfield RPP ‐ Reduced Price Employee Parking Permit New fee effective at the sunset of the Evergreen Park ‐ Mayfield RPP District Resolution #9663 on March 31, 2018. This fee was previously approved in this resolution as "Low‐income Annual Permit" at $50.00 per year for the duration of the pilot period. The rate is not proposed to change at the end of the pilot period, though a six month period is recommended rather than an annual amount due to employee turnover. Planning & Community Environment Parking Space Closure New fee for activities that close a parking space to the public. The recent parking study recommends that the City ensure that the price of a closed/rented permit space correlates to on‐street paid parking rates. If this space is no longer available to the public, the City loses parking inventory and any associated revenue. Planning & Community Environment Residential Parking Permit ‐ Temporary Work Parking Permit New fee under the Construction Permits category and will be charged at the Development Center to recover the impact of parking by work vehicles. $25.00 per space $50.00 per year (after pilot ending 3/31/2018) FY 2018 Proposed Fee $100.00 per month $5.00 per day (after pilot ending 3/31/2018) $25.00 per six months (after pilot ending 3/31/2018) $182.50 per six months (after pilot ending 3/31/2018) $25.00 per day (after pilot ending 3/31/2018) Attachment A, Exhibit 3, Page 2 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 New Fees Department Fee Title Justification Public Works Electric Vehicle Charging New fee to recover the City's cost to administer electric vehicle charging stations. Public Works Electric Vehicle Charger Connection New fee to charge a baseline fee for connection to any electric vehicle charging station in the City. Public Works Electric Vehicle Charger Connection Overstay New fee to charge for overstay after charging has been completed to allow for more frequent turnover and availability of charging stations. Public Works Traffic Property Damage Fee created to recover costs associated with repairing or replacing a damaged traffic property.$115.00 per hour $0.23 per kilowatt hour $0.00 to $2.00 per connection $0.00 to $5.00 per hour FY 2018 Proposed Fee Attachment A, Exhibit 3, Page 3 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Deleted Fees Department Fee Title Justification Community Services Field Inspector Fee There is no longer a demand for this service. Community Services Playground Inspection Fee There is no longer a demand for this service. Community Services Damage and Cleaning Deposit This is a duplicate fee. Resident Rate Non‐Resident Rate $4.00 per day $6.00 per day Resident Rate Non‐Resident Rate $27.00 per use $40.50 per use Resident Rate Non‐Resident Rate $4.00 per day $6.00 per day Planning & Community Environment 800 High Street ‐ Parking Permit Individual garage and lot fees have been consolidated into one "Downtown Garages and Lots" parking fee. Planning & Community Environment California Avenue Business District All Lots ‐ Transferable Permit The FY17 Municipal Fee schedule listed two types of Quarterly permits for Downtown and California Avenue lots and garages, at the same price: Transferable Permits and Permits. The proposed change removals all quarterly permit entries in favor of annual permits with a note that reads that quarterly and six month permits will be prorated based on the annual permit fee. Planning & Community Environment College Terrace ‐ Guest Permit This permit has been consolidated into the existing Annual Resident permit, proposed title "Annual Resident/Annual Guest Permit". Consistent with other RPP programs, daily permits may be purchased for residents or guests. Planning & Community Environment College Terrace ‐ Lost Guest Permit This fee is recommended for deletion because it is duplicative. The College Terrace Guest Permit and Annual Permit are the same price. Planning & Community Environment Downtown RPP ‐ Annual Guest Permit for Residents This fee is recommended for deletion. Guest permits are not part of the Dowtown RPP program. Daily permits may be purchased for residents or guests. Planning & Community Environment Downtown RPP ‐ Five‐day Employee Guest Permit This fee is recommended for deletion. Five day employee guest permits are not part of the Downtown RPP program. Planning & Community Environment Downtown RPP ‐ Visitor Permit This fee is recommended for deletion, consistent with RPP programs. Daily permits may be purchased for residents or guests. FY 2017 Adopted Fee $83.00 per hour $162.00 per inspection $150.00 ‐ $2,000.00 depending upon event size Community Services Gymnastics Mat EaselCommunity Services $146.60 per quarter; $466.00 per year $49.50 per quarter CSD is proposing to include this in the basic rental price. CSD no longer has any gymnastics mat available for rent. Community Services Personal Flotation Device (Foothills Park Only)This fee is no longer necessary as all canoe rentals already include life vests for all users for safety purposes. $40.00 per permit $40.00 per permit $50.00 per annual permit $15.00 per 5 day period in the same week $5.00 each for 24 hour period, 50 max per year Attachment A, Exhibit 3, Page 4 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Changed Fees Community Services Fee Title Justification Residents Non‐Residents Residents Non‐Residents Residents Non‐ Residents Aquatics ‐ C. Adult (18 and Over)$4.00 ‐ $6.00 per person $5.00 ‐ $9.00 per person $4.00 ‐ $7.00 per person $5.00 ‐ $9.00 per person 16.7% No Change Fee range increase from $4.00‐$6.00 per person to $4.00‐$7.00 per person for Residents to align with market value. Aquatics ‐ D. Lap Swimming $4.00 ‐ $6.00 per person $4.00 ‐ $6.00 per person $4.00 ‐ $7.00 per person $4.00 ‐ $9.00 per person 16.7% 50.0% Fee range increase from $4.00‐$6.00 per person to $4.00‐$7.00 per person for Residents and from $4.00‐$6.00 to $4.00‐$9.00 for Non‐Residents to align with market value. Art Center ‐ Auditorium $145.00 per hour $219.00 per hour $154.00 per hour $232.00 per hour 6.2% 5.9% Fee increase from $145.00 to $154.00 per hour for Residents and from $219.00 to $232.00 per hour for Non‐Residents to align with market value. Foothills Park ‐ A. Oak Grove Picnic 1 ‐ 50 People $75.00 per group Not Available $80.00 per group Not Available 6.7% N/A Fee increase from $75.00 per group to $80.00 per group to align with market value. Foothills Park ‐ B. Oak Grove Picnic 51 ‐ 100 People $149.00 per group Not Available $158.00 per group Not Available 6.0% N/A Fee increase from $149.00 per group to $158.00 per group to align with market value. Art Center ‐ Historic Courtyard $89.00 per hour $133.00 per hour $94.00 per hour $141.00 per hour 10.1% 6.0% Fee increase from $89.00 to $94.00 per hour for Residents and from $133.00 to $141.00 per hour for Non‐Residents to align with market value. Art Center ‐ Meeting Room $89.00 per hour $133.00 per hour $98.00 per hour $147.00 per hour 10.1% 10.5% Fee increase from $89.00 to $98.00 per hour for Residents and from $133.00 to $147.00 per hour to align with market value. Palo Alto Swim Club and Palo Alto Masters Swim Club $4.00 ‐ $6.00 per hour per lane; $55.00 ‐ $75.00 per hour for all lanes Not Available $4.00 ‐ $15.00 per hour per lane; $55.00 ‐ $210.00 per hour for all lanes Not Available 150.0% N/A Increase upper range from $6.00 to $15.00 per hour per lane and $75.00 to $210.00 per hour for all lanes to align with market value. Peers Park, Mitchell Park Field House $23.00 per hour Not Available $24.50 per hour Not Available 6.5% N/A Fee increase from $23.00 per hour to $24.50 per hour to align with market value. Picnic Reservations (1 ‐ 15 people)$17.00 per group $21.00 per group $25.00 per group $30.00 per group 47.1% 42.9% Fee increase from $17.00 to $25.00 per group for Residents and $21.00 to $30.00 per group for Non‐Residents. Golf Course ‐ Senior 10 Play Discount Card (60 and Older) ‐ Weekdays $235.00 ‐ $259.00 per player $299.00 ‐ $329.00 per player $235.00 ‐ $337.00 per player $299.00 ‐ $428.00 per player 30.1% 30.1% Increase of upper range by 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Senior Monthly Play Discount Card (60 and Over) $125.00 ‐ $135.00 per player Not Available $125.00 ‐ $176.00 per player Not Available 30.4% N/A Increase of upper range by 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Student 10 Play Discount Card (21 and Under) $199.00 ‐ $219.00 per player Not Available $199.00 ‐ $285.00 per player Not Available 30.1% N/A Increase of upper range by 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Student Annual Play Card $999.00 ‐ $1,099.00 per player Not Available $999.00 ‐ $1,429.00 per player Not Available 30.0% N/A Increase of upper range by 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Student Weekday Unlimited Play $105.00 ‐ $115.00 per player Not Available $105.00 ‐ $150.00 per player Not Available 30.4% N/A Increase of upper range by 30% due to potential increase in operating cost of new golf course. % Change2017 Adopted 2018 Proposed Attachment A, Exhibit 3, Page 5 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Changed Fees Community Services Fee Title Justification Regular Time Overtime & Holiday Regular Time Overtime & Holiday Regular Time Overtime & Holiday Custodial Staff $30.00 per hour $45.00 per hour $37.00 per hour $53.00 per hour 23.3% 17.8% Fee increase from $30.00 to $37.00 per hour for Residents and from $45.00 to $53.00 per hour to align with market value. Facility Attendant and/or Assistant $33.00 per hour $49.00 per hour $37.00 per hour $56.00 per hour 12.1% 14.3% Fee increase from $33.00 to $37.00 per hour for Residents and from $49.00 to $56.00 per hour for Overtime/Holidays to align with market value. Lifeguard $23.00 per hour $35.00 per hour $25.00 per hour $38.00 per hour 8.7% 8.6% Fee increase from $23.00 to $25.00 per hour for Residents and $35.00 to $38.00 per hour for Non‐Residents to align with market value. Palo Alto Junior Museum & Zoo Attendant $31.00 per hour $47.00 per hour $33.00 per hour $50.00 per hour 6.5% 6.4% Fee increase from $31.00 to $33.00 per hour for Residents and $47.00 to $50.00 per hour for Non‐Residents to align with market value. Fee Title Justification Basic Non‐Profit Basic Non‐Profit Basic Non‐Profit Cubberley ‐ Amphitheater (Grass)$25.00 per hour $20.00 per hour $27.00 per hour $21.00 per hour 8.0% 5.0% Fee increase from $25.00 to $27.00 per hour for Basic Rate and from $20.00 to $21.00 per hour for Non‐Profit Rate to align with market value. Cubberley ‐ Auditorium (Includes Kitchen)$95.00 per hour $59.00 per hour $101.00 per hour $63.00 per hour 6.3% 6.8% Fee increase from $95.00 to $101.00 per hour for Basic Rate and from $59.00 to $63.00 per hour for Non‐Profit Rate to align with market value. Cubberley Theater Rentals ‐ A. Performance Day Package $1,400.00 each $980.00 each $1,500.00 each $1050.00 each 7.1% 7.1% Fee increase from $1400.00 to $1500.00 each for Basic Rate and from $980.00 to $1050.00 each for Non‐Profit Rate to align with market value. Cubberley Theater Rentals ‐ K. Additional Performance $350.00 each $245.00 each $375.00 each $262.00 each 7.1% 6.9% Fee increase from $350.00 to $375.00 each for Basic Rate and from $245.00 to $262.00 each for Non‐Profit Rate to align with market value. Cubberley ‐ Dance Studio $41.00 per hour $36.00 per hour $44.00 per hour $38.00 per hour 7.3% 5.6% Fee increase from $41.00 to $44.00 per hour for Basic Rate and from $36.00 to $38.00 per hour for Non‐Profit Rate to align with market value. Cubberley ‐ Gym B $93.00 per hour $63.00 per hour $99.00 per hour $67.00 per hour 6.5% 6.3% Fee Increase from $93.00 to $99.00 per hour for Basic Rate and from $63.00 to $67.00 per hour for Non‐Profit Rate to align with market value. Cubberley ‐ Meeting Room ‐ Large (2,000 ‐ 4,000 sq. ft.)$66.00 per hour $52.00 per hour $70.00 per hour $55.00 per hour 6.1% 5.8% Fee increase from $66.00 to $70.00 per hour for Basic Rate and from $52.00 to $55.00 per hour for Non‐Profit Rate to align with market value. Cubberley ‐ Meeting Room ‐ Small (Less than 1,000 sq. ft.)$33.00 per hour $26.00 per hour $35.00 per hour $28.00 per hour 6.1% 7.7% Fee increase from $33.00 to $35.00 per hour for Basic Rate and from $26.00 to $28.00 per hour for Non‐Profit Rate to align with market value. Cubberley ‐ Pavilion $122.00 per hour $95.00 per hour $129.00 per hour $101.00 per hour 5.7% 6.3% Fee increase from $122.00 to $129.00 per hour for Basic Rate and from $95.00 to $101.00 per hour for Non‐Profit Rate to align with market value. % Change % Change2017 Adopted 2018 Proposed 2017 Adopted 2017 Proposed Attachment A, Exhibit 3, Page 6 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Changed Fees Community Services Fee Title Justification Weekday Weekend / Prime Time Weekday Weekend / Prime‐ Time Weekday Weekend / Prime‐Time Golf Course ‐ 9 Holes (When Available) $23.00 ‐ $25.00 per player $26.00 ‐ $29.00 per player $23.00 ‐ $33.00 per player $26.00 ‐ $38.00 per player 32.0% 31.0% Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Daily Fee ‐ Non‐ Resident $39.00 ‐ $44.00 per player $49.00 ‐ $54.00 per player $39.00 ‐ $57.00 per player $49.00 ‐ $70.00 per player 29.5% 29.6% Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Daily Fee ‐ Resident $37.00 ‐ $42.00 per player $47.00 ‐ $52.00 per player $37.00 ‐ $55.00 per player $47.00 ‐ $67.00 per player 31.0% 28.8% Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Junior (17 and Under) $12.00 ‐ $16.00 per player $15.00 ‐ $18.00 per player $12.00 ‐ $21.00 per player $15.00 ‐ $23.00 per player 31.3% 27.8% Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Mid‐Day Rate (1 Hour Before Twilight) $32.00 ‐ $35.00 per player $42.00 ‐ $46.00 per player $32.00 ‐ $46.00 per player $42.00 ‐ $60.00 per player 31.4% 30.4% Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Northern CA Golf Association Junior (NCGA Jr) Fee $10.00 ‐ $12.00 per player $10.00 ‐ $12.00 per player $10.00 ‐ $16.00 per player $10.00 ‐ $16.00 per player 33.3% 33.3% Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Senior ‐ Non‐ Resident (60 and Over) $32.00 ‐ $35.00 per player Not Available $32.00 ‐ $46.00 per player Not Available 31.4% N/A Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Senior ‐ Resident (60 and Over) $27.00 ‐ $30.00 per player Not Available $27.00 ‐ $39.00 per player Not Available 30.0% N/A Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Shotgun Start Tournaments $59.00 ‐ $65.00 per player $70.00 ‐ $85.00 per player $59.00 ‐ $85.00 per player $70.00 ‐ $111.00 per player 30.8% 30.6% Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Student (21 and Under) $26.00 ‐ $29.00 per player $29.00 ‐ $32.00 per player $26.00 ‐ $38.00 per player $29.00 ‐ $42.00 per player 31.0% 31.3% Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Super Twilight Rates $24.00 ‐ $28.00 per player $26.00 ‐ $30.00 per player $24.00 ‐ $36.00 per player $26.00 ‐ $39.00 per player 28.6% 30.0% Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Twilight Rates $28.00 ‐ $32.00 per player $33.00 ‐ $37.00 per player $28.00 ‐ $42.00 per player $33.00 ‐ $48.00 per player 31.3% 29.7% Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. 2017 Adopted 2018 Proposed % Change Attachment A, Exhibit 3, Page 7 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Changed Fees Community Services Fee Title Justification Art Center ‐ Locker Rental ‐ Large Fee increase from $28.00 per season to $30.00 per season to align with market value. Art Center ‐ Locker Rental ‐ Small Fee increase from $17.00 per season to $19.00 per season to align with market value. Golf Course ‐ A. Small Bucket Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ B. Medium Bucket Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ C. Large Bucket Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ D. Jumbo Bucket Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ E. Medium Bucket Card ‐ 10 Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ F. Large Bucket Card ‐ 10 Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Hand Cart ‐ 18 Holes Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Hand Cart ‐ 9 Holes Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ League Reservation Fee Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Off Premise Club Rental ‐ 18 Holes Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Power Cart ‐ 18 Holes Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Power Cart ‐ 4 Bagger Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Power Cart ‐ 9 Holes Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Pro‐Line Clubs ‐ 18 Holes Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Pro‐Line Clubs ‐ 9 Holes Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Single Rider ‐ 18 Holes Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. Golf Course ‐ Tournament Reservation Fee Increase of upper range by approximately 30% due to potential increase in operating cost of new golf course. $4.00 ‐ $8.00 per rental $2.00 ‐ $5.00 per rental $15.00 ‐ $25.00 per rental $13.00 ‐ $17.00 per rental $28.00 ‐ $32.00 per rental $19.00 ‐ $22.00 per rental $13.00 ‐ $22.00 per rental ‐88.2% 31.6% $1.00 ‐ $7.00 per player 31.8% $250.00 ‐ $585.00 per team $45.00 ‐ $72.00 per rental $26.00 ‐ $48.00 per rental $30.00 ‐ $44.00 per rental $17.00 per season $6.00 ‐ $12.00 per bucket 11.8% $10.00 ‐ $14.00 per bucket $10.00 ‐ $18.00 per bucket 28.6% $10.00 ‐ $16.00 per bucket $19.00 per season $3.00 ‐ $5.00 per bucket $6.00 ‐ $9.00 per bucket 31.3% $3.00 ‐ $7.00 per bucket 7.1%$30.00 per season $250.00 ‐ $450.00 per team $45.00 ‐ $55.00 per rental $26.00 ‐ $37.00 per rental $30.00 ‐ $34.00 per rental $1.00 ‐ $5.00 per player 29.7% 30.9% 40.0% $15.00 ‐ $19.00 per rental $60.00 ‐ $80.00 per bucket $60.00 ‐ $104.00 per bucket 30.0% $90.00 ‐ $143.00 per bucket 25.0%$4.00 ‐ $10.00 per rental $90.00 ‐ $110.00 per bucket % Change 30.0% $10.00 ‐ $12.00 per bucket 30.0% 40.0% $28.00 ‐ $42.00 per rental $19.00 ‐ $29.00 per rental 2017 Adopted 20178 Proposed 40.0% 33.3% 33.3% 29.4% $28.00 per season $2.00 ‐ $7.00 per rental Attachment A, Exhibit 3, Page 8 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Changed Fees Development Services ‐ Green Building Division Fee Title Justification Alterations and additions for single and multifamily > 1,000 sq ft Fee adjusted from $1300.00 to $708.00 to realign the fee to full cost recovery. Alterations and additions for single family and multifamily < 1,000 sq ft and increases conditioned space Fee adjusted from $1158.00 to $429.00 to realign the fee to full cost recovery. If the project is over $100,000 Energy Star is required after 12 months of occupancy Fee adjusted from $737.00 to $140.00 to realign the fee to full cost recovery. Landscape Inspection Fee added to provide services and compliance with the Emergency Building Standards for Outdoor Potable Water. Fee adjusted from $230.00 to $185.00 to realign the fee to full cost recovery. Landscape Plan Review ‐ Non‐ Residential & Multi‐Family Fee added to provide services and compliance with the Emergency Building Standards for Outdoor Potable Water. Fee adjusted from $1553.00 to $1886.00 to realign the fee to full cost recovery. Landscape Plan Review ‐ Single Family Residential Fee added to provide services and compliance with the Emergency Building Standards for Outdoor Potable Water. Fee adjusted from $943.00 to $1161.00 to realign the fee to full cost recovery. Multi Family New Construction of < 4 Fee adjusted from $1306.00 to $1481.00 Fees to realign the fee to full cost recovery. Multi Family New Construction of 4 or More (attached) units Fee adjusted from $1591.00 to $923.00 to realign the fee to full cost recovery. New Commercial >50,000 SF Fee adjusted from $2303.00 to $1761.00 to realign the fee to full cost recovery. New Commercial 1,000‐25,000 SF Fee adjusted from $1876.00 to $1202.00 to realign the fee to full cost recovery. New Commercial 25,001 ‐ 50,000 SF Fee adjusted from $2160.00 to $1481.00 to realign the fee to full cost recovery. New Single Family Fee adjusted from $1449.00 to $923.00 to realign the fee to full cost recovery. Tenant improvements, renovations or alterations > $200,000 in valuation (and not triggered by a Calgreen Tier) Fee adjusted from $1306.00 to $644.00 to realign the fee to full cost recovery. Tenant improvements, renovations or alterations > 5,000 SF Fee adjusted from $1591.00 to $644.00 to realign the fee to full cost recovery. $2,303.00 per review $1,761.00 per review $1,876.00 per review $1,202.00 per review 2017 Adopted 2018 Proposed $1,591.00 each $923.00 each $708.00 each $429.00 each $140.00 each $185.00 per inspection $1,300.00 each $1,306.00 each ‐45.5% ‐63.0% ‐81.0% ‐19.6% 21.4% 23.1% $1,306.00 per review $2,160.00 per review 13.4% $230.00 per inspection $1,553.00 each $943.00 each $1,591.00 per review $644.00 per review ‐59.5% $1,481.00 per review ‐35.9% ‐31.4% ‐50.7% $1,449.00 per review ‐23.5% $1,481.00 each % Change ‐42.0% $1,158.00 each $737.00 each $1,886.00 each $1,161.00 each $644.00 per review $923.00 per review ‐36.3% Attachment A, Exhibit 3, Page 9 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Changed Fees Development Services ‐ Public Works Division Fee Title Justification Engineering ‐ A. 101 ‐ 1,000 cubic yards Base fee increased from $139.00 to $197.00 for first 100 cubic yards to adjust for actual costs, including department specific overhead and meet Council cost‐recovery directive. Engineering ‐ B. 1,001 ‐ 10,000 cubic yards Base fee increased from $1,390.00 to $1,970.00 for first 1,000 cubic yards to adjust for actual costs, including department specific overhead and meet Council cost‐recovery directive. Engineering ‐ C. 10,001 or more cubic yards Base fee increased from $2,680.00 to $3830.00 for first 10,000 cubic yards to adjust for actual costs, including department specific overhead and meet Council cost‐recovery directive. Storm Drain Plan Check Fee Fee increased from $595.00 per project to $743.00 per project. Staff proposes to increase the fee by 25% annually for six years until cost recovery is met. Tree Inspection for Private Development Fee decreased to $139 from $210 per project to reflect the shiŌ to contract services, include department‐specific overhead, and meet Council cost‐recovery directive. Wet Season Construction Site Stormwater Inspection Fee increased to $287 from $230 per month to include department‐specific overhead, and meet Council cost‐recovery directive.24.8% 42.9% $1970.00 for the first 1,000 cubic yards plus $186.00 for each additional 1,000 cubic yards or fraction thereof $139.00 for the first 100 cubic yards, plus $139.00 for each additional 100 cubic yards or fraction thereof $197.00 for the first 100 cubic yards, plus $197.00 for each additional 100 cubic yards or fraction thereof 2018 Proposed $1390.00 for the first 1,000 cubic yards plus $129.00 for each additional 1,000 cubic yards or fraction thereof 24.9% 2017 Adopted ‐33.8% 41.7% 41.7% % Change $2680.00 for the first 10,000 cubic yards plus $517.00 for each additional 10,000 cubic yard or fraction thereof $595.00 per project $230.00 per month, charge monthly October thru April $287.00 per month, charge monthly October thru April $210.00 per inspection $139.00 per inspection $3830.00 for the first 10,000 cubic yards plus $711.00 for each additional 10,000 cubic yard or fraction thereof $743.00 per project Attachment A, Exhibit 3, Page 10 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Changed Fees Fire Fee Title Justification 911 Advanced Life Support Transport Mileage This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. 911 Basic Life Support Transport Mileage This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. Advanced Life Support ‐ Base/BLS Downgrades Bundled Rate This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. Advanced Life Support ‐ LS II Bundled Rate This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. Advanced Life Support ‐ Special Event Standby This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. Basic Life Support ‐ Scheduled Transport This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. Basic Life Support ‐ Single This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. Basic Life Support ‐ Special Event Standby This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. Contracted Interfacility Basic Life Support Transport This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. Interfacility Basic Life Support Transport Mileage This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. Night Transport Fee This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. Oxygen This proposed increase aligns the fee with increasing costs to provide emergency medical transport services, driven by personnel cost increases as well as services and supply costs that support the program. 8.0% % Change $27.00 per mile 8.0% 9.0% 9.0% 8.7% 9.1% 8.9% 9.0% 8.0% $294.00 ‐ $649.00 per occurrence 9.4% 8.0% 9.3% $1995.00 per occurrence $208.00 ‐ $340.00 per hour $270.00 ‐ $595.00 per occurence $512.00 per occurrence $25.00 per mile $1,872.50 per occurrence $2,174.50 per occurrence $27.00 per mile $85.00 ‐ $160.00 per hour $82.00 per occurrence $138.00 per occurrence $93.00 ‐ $174.00 per hour $227.00 ‐ $371.00 per hour $25.00 per mile $75.00 per occurrence $127.00 per occurrence $25.00 per mile $25.00 per mile $1,718.00 per occurrence $558.00 per occurrence $27.00 per mile 2018 Proposed2017 Adopted $27.00 per mile Attachment A, Exhibit 3, Page 11 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Changed Fees Planning and Community Environment Fee Title Justification California Avenue Area ‐ Daily Parking Permit This fee is consistent with the daily parking rate in the Downtown area. The proposed fee is increased to provide cost recovery for the provision of parking facilities and to discourage the use of single occupancy vehicles. California Avenue Area All Garages and Lots ‐ Annual Parking Permit Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this fee is increased to provide cost recovery for various parking initiatives in California Avenue and to minimize General Fund subsidy. The fee includes a note that quarterly and six month permits are prorated based upon the annual amount. College Terrace RPP ‐ Annual Resident Parking Permit Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, Annual Resident Parking Permits in RPP districts are recommended to be standardized throughout program at $50.00 per year. This fee was previously titled "College Terrace ‐ Annual Permit" and has been consolidated with the deleted fee titled "College Terrace ‐ Guest Permit". Downtown RPP ‐ Daily Employee Parking Permit Daily employee RPP permits are set at the same cost as garages, removing the incentive for employees to park in neighborhoods. Downtown RPP ‐ Full Price Employee Parking Permit Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, Full Price Employee RPP Parking Permits are aligned to the same price as garages, removing the incentive for employees to park in neighborhoods. A six month period is recommended rather than an annual amount due to employee turnover. Downtown RPP ‐ Reduced Price Employee Parking Permit The total price for low income workers is not proposed to change, rather a six month period is recommended rather than an annual amount due to employee turnover. On‐Street Parking Space Rental The recent parking study recommends that the City ensure that the price of rented permit spaces correlates to on‐street paid parking rates. If this space is no longer available to the public, the City is in loss of parking inventory and any associated revenue. Records Retention Increased to align with costs and to be consistent with Development Services fee for the same activity. $100.00 per annual permit 50.0% N/A N/A 212.5% 145.0% $50.00 per six months $25 per space per day 400.0% 25.0% 56.7% $6.00 per plan sheet $365 per six months % Change $8.00 per day $25.00 per day 2017 Adopted 2018 Proposed $49.50 per quarter; $149 per year $365.00 per year $40.00 per permit $50.00 per year $5.00 per day $25.00 per day $4.00 per plan sheet $466.00 per year $79.00 per space per week Attachment A, Exhibit 3, Page 12 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Changed Fees Planning and Community Environment Fee Title Justification Standard On‐street Disabled Parking Space The fee listed in the FY17 Municipal Schedule was for the piloting of this acitvity. The proposal updates the fee based upon the actual cost of providing the disabled space, reduced in consideration of similar fees in neighboring cities. The space is not for the exclusive use of the applicant, anyone with appropriate designation may park in it. All Downtown and SOFA Garages and Lots ‐ Annual Parking Permit Consistent with the Finance Committee recommended revisions approved on May 18th, 2017, this fee is increased to provide cost recovery for various parking initiatives in University Avenue and to support the recommendation to increase Transportation Management Authority (TMA) funding. This proposed fee encapsulates the annual parking fee for all downtown lots and garages, and has been renamed from the prior title "University Avenue ‐ All Lots". The FY17 Municipal Fee Schedule lists each by garage, which can cause confusion to the public who are unaware of garage designations. The fee includes a note that quarterly and six month permits are prorated based upon the annual amount. All Downtown and SOFA Garages and Lots ‐ Daily Parking Permit This proposed fee encapsulates the annual parking fee for all downtown lots and garages, and has been renamed from the prior title "University Avenue ‐ One Day Parking Permit". The FY17 Municipal Fee Schedule lists each by garage, which can cause confusion to the public who are unaware of garage designations. The fee is increased to begin briniging the price closer to market and to discourage the use of single occupancy vehicles $146.50 per quarter; $466.00 per year $730.00 per year 56.7% $17.50 per day $25.00 per day 42.9% $250.00 per year $915.00 per five years N/A 2017 Adopted 2018 Proposed % Change Attachment A, Exhibit 3, Page 13 ATTACHMENT A, Exhibit 3 Municipal Fee Schedule Amendments for FY 2018 Changed Fees Public Works Fee Title Justification Additional Non‐Residential Long‐ Term (More than 5 days) Monthly Fee increased from $500 to $746 per encroachment to adjust for actual costs, including department‐specific overhead, and meet Council cost‐recovery directive. Additional Temporary Discharge to Storm Drain from Construction Site Dewatering Fee increased to $313 from $217 per week per project to adjust for actual costs, including department specific overhead, and to meet Council cost‐recovery directive . Dumpster, Container Fee increased from $210 each to $310 each to adjust for actual costs, including department specific overhead, and meet Council cost‐recovery directive. IR Review ‐ Trees Fee decreased from $647 to $304 as contract services will be used to provide this service with Urban Forester quality control. Non‐Residential ‐ Single Day Fee increased to $1249.00 from $862.00 per project to adjust for actual costs, including department specific overhead, and meet Council cost‐recovery directive. Non‐Residential Long‐Term (More than 5 days) Fee increased from $1418.00 to $2039.00 per project to adjust for actual costs, including department specific overhead and meet Council cost‐recovery directive. Non‐Residential Short‐Term (Less than 5 days) Fee increased from $1014.00 to $1466 to adjust for actual costs, including department specific overhead and meet Council cost‐recovery directive. Permit Fees ‐ A. Construction in Public Right‐of‐Way ($1.00 ‐ $5,999) Base fee increased from $503.00 to $712.00 per occurance to adjust for actual costs, including department specific overhead and meet Council cost‐recovery directive. Permit Fees ‐ B. Construction in Public Right‐of‐Way ($6,000 ‐ $25,999) Base fee increased from $503.00 to $712.00 to adjust for actual costs, including department specific overhead and meet Council cost‐recovery directive. Permit Fees ‐ C. Construction in Public Right‐of‐Way ($26,000 ‐ $100,999) Base fee increased from $1743.00 to $2472.00 per occurance to adjust for actual costs, including department specific overheard and meet Council cost‐recovery directive. Permit Fees ‐ D. Construction in Public Right‐of‐Way ($101,000 +) Base fee increased from $7368.00 to $10,572 to adjust for actual costs and meet Council cost‐recovery directive. Temporary Discharge to Storm Drain from Construction Site Dewatering Fee increased from $2,903.00 to $14,093.00 per request to discharge to adjust for actual costs, including department specific overhead, and meet Council cost‐recovery directive. $10,000 is for Council adopted ordinance for dewatering to pay consultant per instance. 385.5% $217.00 per week for the duration of dewatering activities $313.00 per week for the duration of dewatering activities $2,903.00 per request to discharge $14,093 per request to discharge 39.6% 49.2% 41.6% 41.8% 43.5% 47.6% $862.00 each $1,249.00 each $1,418.00 each $2,039.00 each $1,014.00 each $1,466.00 each ‐53.0% 2017 Adopted 2018 Proposed % Change $1,743.00 + 7.5% of value greater than $26,000.00 $2472.00 + 10.8% of value greater than $26,000.00 $7,368.00 + 6.4% of value greater than $100,000.00 $10,572.00 + 9% of value greater than $100,000.00 $210.00 each $310.00 each $503.00 per occurrence $702.00 per occurrence $500.00 per month $746.00 per month $503.00 + 6.2% of value greater than $6,000.00 $712.00 + 8.8% of value greater than $6,000.00 $647.00 per application $304.00 per application 44.9% 43.2% 44.6% 44.2% Attachment A, Exhibit 3, Page 14 Attachment B Not Yet Approved 170329 jb 6053933 Resolution No. _____ Resolution of the Council of the City of Palo Alto Approving the FY 2018 Electric 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 approves the FY 2018 Electric Utility Financial Plan. SECTION 2. The Council hereby approves the transfer of up to $911 thousand from the Supply Rate Stabilization Reserve to the Supply Operations Reserve in FY 2017, up to $9.0 million from the Hydroelectric Stabilization Reserve to the Supply Operations Reserve in FY 2017, and up to $4.5 million from the Supply Operations Reserve to the Distribution Operations Reserve in FY 2017, as described in the FY 2018 Electric Utility Financial Plan approved via this resolution. / / / / / / / / / / / / Attachment B Not Yet Approved 170329 jb 6053933 SECTION 3. The Council finds that the adoption of this resolution does not meet the California Environmental Quality Act’s (CEQA) definition of a project under Public Resources Code Section 21065, and therefore, no environmental assessment is required. 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 ELECTRIC UTILITY FINANCIAL PLAN FY 2018 TO FY 2027 ATTACHMENT C 2 | Page FY 2017 ELECTRIC UTILITY FINANCIAL PLAN FY 2018 TO FY 2027 TABLE OF CONTENTS Section 1: Definitions and Abbreviations................................................................................ 4 Section 2: Executive Summary and Recommendations ........................................................... 5 Section 2A: Overview of Financial Position .................................................................................. 5 Section 2B: Summary of Proposed Actions .................................................................................. 6 Section 3: Detail of FY 2018 Rate and Reserves Proposals ....................................................... 7 Section 3A: Rate Design ............................................................................................................... 7 Section 3B: Current and Proposed Rates ..................................................................................... 7 Section 3C: Reserves Management Practices .............................................................................. 8 Section 3D: Proposed Reserve Transfers ..................................................................................... 8 Section 4: Utility Overview .................................................................................................. 10 Section 4A: Electric Utility History ............................................................................................. 11 Section 4B: Customer Base ........................................................................................................ 13 Section 4C: Distribution System ................................................................................................. 13 Section 4D: Cost Structure and Revenue Sources ...................................................................... 14 Section 4E: Reserves Structure ................................................................................................... 15 Section 4F: Competitiveness ...................................................................................................... 16 Section 5: Utility Financial Projections ................................................................................. 17 Section 5A: Load Forecast .......................................................................................................... 17 Section 5B: FY 2012 to FY 2016 Cost and Revenue Trends ........................................................ 19 Section 5C: FY 2016 Results ....................................................................................................... 20 Section 5D: FY 2017 Projections ................................................................................................ 20 Section 5E: FY 2018 – FY 2027 Projections ................................................................................ 21 3 | Page Section 5F: Risk Assessment and Reserves Adequacy ............................................................... 23 Section 5G: Long-Term Outlook ................................................................................................. 27 Section 6: Details and Assumptions ..................................................................................... 30 Section 6A: Electricity Purchases ............................................................................................... 30 Section 6B: Operations .............................................................................................................. 32 Section 6C: Capital Improvement Program (CIP) ....................................................................... 33 Section 6D: Debt Service ............................................................................................................ 33 Section 6E: Equity Transfer ........................................................................................................ 34 Section 6F: Wholesale Revenues and Other Revenues .............................................................. 34 Section 6G: Sales Revenues ....................................................................................................... 35 Section 7: Communications Plan .......................................................................................... 36 Appendices ......................................................................................................................... 38 Appendix A: Electric Utility Financial Forecast Detail ................................................................ 39 Appendix B: Electric Utility Reserves Management Practices ................................................... 43 Appendix C: Description of Electric utility Operational Activities .............................................. 48 Appendix D: Samples of Recent Electric Utility Outreach Communications .............................. 49 4 | Page SECTION 1: DEFINITIONS AND ABBREVIATIONS CAISO California Independent System Operator CARB California Air Resources Board CIP Capital Improvement Program CPAU City of Palo Alto Utilities Department CPUC California Public Utilities Commission CVP Central Valley Project GWh a gigawatt-hour, equal to 1,000 MWh or 1,000,000 kWh. Commonly used for discussing total monthly or annual electric load for the entire city, or the monthly or annual output of an electric generator. kWh a kilowatt-hour, the standard unit of measurement for electricity sales to customers. kW a kilowatt, a unit of measurement used in reference a customer’s peak demand (the highest 15 minute average consumption level in a month), which is used for billing large and mid-size commercial customers. kV a kilovolt, one thousand volts, a unit of measurement of the voltage at which a section of the distribution system operates. The transmission system operates at 115-500 kV, and this is lowered to 60 kV in the subtransmission section of the Electric Utility’s distribution section, then 12 kV or 4 kV in the rest of the distribution system, and finally 120, 240, or 480 volts at the electric outlet. MWh a megawatt-hour, equal to 1,000 kWh. Commonly used for measuring wholesale electricity purchases. MW a megawatt, equal to 1,000 kW. Commonly used when discussing maximum electricity demand for all customers in aggregate. PG&E Pacific Gas and Electric REC Renewable Energy Certificate RPS Renewable Portfolio Standard Sub-transmission System: The section of the Electric Utility’s distribution system that operates at 60 kV and which interfaces with PG&E’s transmission system. Transmission System: Sections of the electric grid that operate at high voltages, generally 115 kV or more. The voltage at the intersection of the Electric Utility’s distribution system and PG&E’s transmission system is 115 kV. The Electric Utility does not own or operate any transmission lines. UCC Utility Control Center SCADA Supervisory Control and Data Acquisition system, the system of sensors, communications, and monitoring stations that enables system operators to monitor and operate the system remotely. WAPA, or Western: Western Area Power Administration, the agency that markets power from CVP hydroelectric generators and other hydropower owned by the Bureau of Reclamation. 5 | Page SECTION 2: EXECUTIVE SUMMARY AND RECOMMENDATIONS This document presents a Financial Plan for the City’s Electric Utility for the next ten fiscal years. This Financial Plan describes how revenues will 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 The Electric Utility’s costs will increase substantially over the next few years, as shown in Table 1. Most of the increases are related to electric supply costs, which are increasing due to increased transmission costs and the cost of new renewable energy projects coming online. There are also inflationary increases in Operations costs, and some additional capital investment costs. Table 1: Electric Utility Expenses for FY 2016 to FY 2027 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 Power Supply Purchases 79,115 84,371 87,987 89,066 90,841 90,728 92,221 91,758 92,925 93,904 95,224 96,465 Operations 35,443 54,152 56,307 56,795 58,409 59,238 60,089 61,931 62,507 59,519 60,550 61,610 Capital Projects 21,128 21,490 15,574 15,869 25,150 19,048 17,449 18,354 18,878 19,417 19,972 20,543 TOTAL 135,685 160,013 159,868 161,730 174,400 169,014 169,759 172,042 174,309 172,840 175,746 178,617 To cover these increases in costs, revenues (and therefore rates) need to increase over the next several years to balance costs and revenues, as shown in Table 2. The table also compares current rate projections to those projected in last year’s Financial Plan. The rate projections are higher this year than last year primarily due lower actual and projected sales and increases to transmission cost projections. In addition, the continued drought has had a greater impact than expected on hydroelectric supplies. This has affected reserves, making it difficult to phase in rate increases over multiple years. Table 2: Projected Electric Rates, FY 2017 to FY 2023 Projection FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Current 14% 7% 0% 0% 1% 2% 1% 1% 1% 1% Last Year 10% 3% 0% 1% 0% 2% N/A N/A N/A N/A Table 3 shows the projected reserve transfers over the forecast period. The Supply Rate Stabilization Reserve is projected to be drawn down entirely by the end of FY 2018. Funds are projected to be transferred from the Electric Special Projects (ESP) Reserve to the Operations Reserve to fund smart grid projects included in the long term CIP budget, but it should be noted that the smart grid costs included in the forecast are placeholders, as are the transfers from the ESP Reserve. Any transfers from the ESP Reserve require Council approval. 6 | Page Staff will request a temporary loan from the ESP reserve of $10 million for the Distribution Operations reserve, as it is otherwise projected to be critically low. As the intent of the ESP reserve is to fund projects, not to stabilize rates, this will be a temporary transfer, to be reversed once distribution rates have increased and stabilized (FY 2020 and 2021) and funds can be returned to the ESP reserve. Staff is also requesting authority to withdraw funds from the Hydro Stabilization Reserve in FY 2017 and FY 2018 due to lower than average hydroelectric generation, though this projection is subject to change with weather conditions. Based on precipitation to-date, this projection is likely to change, and staff will not perform these transfers if they become unnecessary. Table 3: Reserves Transfers for FY 2017 to FY 2027 ($000) Reserve FY 2017 FY 2018 FY 2019 to FY 2027 Supply Reserves Electric Special Projects (10,173) 3,000 Hydro Stabilization* (9,000) (2,400) - Supply Rate Stabilization (5,411) (3,600) - Supply Operations 10,084 5,500 7,000 Distribution Reserves Capital Improvement Program Distribution Operations 14,500 500 (10,000) * A $9 million transfer from the Supply Rate Stabilization Reserve to the Supply Operations Reserve was approved by Council when it adopted the FY 2016 Electric Utility Financial Plan SECTION 2B: SUMMARY OF PROPOSED ACTIONS Staff proposes the following actions for the Electric Utility in FY 2017: 1. Complete the proposed FY 2017 reserves transfers described Section 3D: Proposed Reserve Transfers, as previously requested as part of the FY 2017 Electric Financial Plan 2. Request a new transfer of $10 million from the ESP reserve to the Distribution Operations Reserve, to be repaid within five years. Staff proposes the following actions for the Electric Utility in FY 2018: 1. Request the proposed FY 2018 reserves transfers described in Section 3D: Proposed Reserve Transfers. 2. Increase rates effective July 1, 2017 for a 14% increase in system average rates, and thereby increase sales revenues by 10% based upon current sales projections. Note that while the projected rate increases and reserves transfers in this FY 2018 Financial Plan are adequate to recover costs over the forecast period, the Supply Operations Reserves are projected to be at or below the minimum Supply Operations Reserve level for FY 2017 through FY 2019, and lower sales have dropped Distribution Operations reserves to very low levels requiring new transfer requests. While more aggressive increases could be requested, staff still recommends proceeding with this plan for two reasons: first, recent rains and 7 | Page favorable snowpack levels may result in favorable hydroelectric production, resulting in higher reserves, and second, the presence of the Electric Special Projects Reserve with a balance of $41 million means that a small temporary shortfall in the Operations Reserves should not affect the Electric Utility’s financial health and bond ratings. In the event drought resurfaces or hydro fails to materialize, staff will re-evaluate its projections at midyear of FY 2018 and may recommend additional rate increases or the adoption of a hydroelectric rate adjuster. SECTION 3: DETAIL OF FY 2018 RATE AND RESERVES PROPOSALS SECTION 3A: RATE DESIGN The rates discussed in the previous section are based on the cost of service methodology established in “City of Palo Alto Electric Cost of Service and Rate Study”1 drafted by EES Consulting, Inc. in 2015/16. Staff provided EES with updated sales and budget projections, including projected transmission and distribution costs, power supply costs and billing data, in order for EES to update individual cost of service model components and determine the proposed rates. The COSA is based on design guidelines adopted by Council on September 15, 2015 (Staff Report 6061). SECTION 3B: CURRENT AND PROPOSED RATES The current rates were adopted on July 1, 2016, when CPAU increased electric rates by 11%. Table 4, below, summarizes the current and proposed rates for the four largest customer classes. The Electric Utility also has specialty rates for smaller groups of customers. These include variations on its primary rates, such as time of use rates, the PaloAltoGreen rates, and solar net metering. Staff proposes a 14% overall increase in revenue, requiring 14% increase in system average rates. Different customer classes may see different percentage changes to their rates, based upon their usage of the system and cost to serve each group. 1 Staff Report 6857 http://www.cityofpaloalto.org/civicax/filebank/documents/52274 8 | Page Table 4: Current and Proposed Electric Rates Current Rates Proposed Rates (7/1/17) Change $ % E-1 (Residential) Tier 1 Energy ($/kWh) 0.11029 0.12159 0.01130 10% Tier 2 Energy ($/kWh) 0.16901 0.19001 0.02100 12% Minimum Bill ($/day) 0.3067 0.2938 (0.0129) -4% E-2 & E-2-G(Small Non-Residential) Summer Energy ($/kWh) 0.16845 0.18885 0.02040 12% Winter Energy ($/kWh) 0.11445 0.13267 0.01822 16% Minimum Bill ($/day) 0.7657 0.7328 (0.0329) -4% E-4 & E-4-G (Medium Non-Residential) Summer Energy ($/kWh) 0.10229 0.11673 0.01444 14% Winter Energy ($/kWh) 0.08049 0.08890 0.00841 10% Summer Demand ($/kW) 19.68 21.05 1.37 7% Winter Demand ($/kW) 14.04 15.36 1.32 9% Minimum Bill ($/day) 16.3216 14.8414 (1.4802) -9% E-7 & E-7-G (Large Non-Residential) Summer Energy ($/kWh) 0.08749 0.09802 0.01053 12% Winter Energy ($/kWh) 0.06242 0.07188 0.00946 15% Summer Demand ($/kW) 18.34 23.84 5.50 30% Winter Demand ($/kW) 15.65 15.59 (0.06) 0% Minimum Bill ($/day) 48.5054 42.3648 (6.1406) -13% These proposed rates were prepared in conformance with the “FY 2017 City of Palo Alto Electric Cost of Service and Rate Study,” performed by EES Consulting (2016). SECTION 3C: RESERVES MANAGEMENT PRACTICES No changes to the Electric Utility Reserves Management Practices (See Appendix B: Electric Utility Reserves Management Practices) are proposed at this time. SECTION 3D: PROPOSED RESERVE TRANSFERS In the FY 2017 Electric Financial Plan, Council approved several proposed transfers for FY 2017: •Transfer up to $1 million from the Supply Rate Stabilization Reserve to the Supply Operations Reserve. This transfer is to enable the City to spread necessary long term rate increases over multiple years to reduce the short-term impact on ratepayers. Current estimates are that the amount will be closer to $911,000. •Transfer up to $9.0 million from the Hydroelectric Stabilization Reserve to offset potential costs associated with low hydroelectric generation. Some or all of this transfer 9 | Page may be unnecessary if weather conditions change, but current estimates still indicate the full amount will be needed, since excess generation in the spring of 2017 may not fully offset below-average generation in the summer and fall of 2016. •Transfer up to $4.5 million from the Supply Operations Reserve to the Distribution Operations Reserve to ensure reserve adequacy in the Distribution Operations Reserve. Staff will also request the following for FY 2017: •Transfer up to $10 million from the ESP Reserve to the Distribution Operations Reserve. This transfer will be construed as a temporary transfer, to be repaid to the ESP Reserve within five years. Proposed transfers for FY 2018 will not be requested by resolution at this time, but will be requested as part of the FY 2019 Financial Plan, or at FY 2017 year-end should ending reserve balances require it. The impact of these transfers on reserves levels can be seen in Figure 8 (for Supply Fund Reserves) and Figure 9 (for Distribution Fund Reserves) in Section 5E: FY 2018 – FY 2027 Projections. Table 5 shows the projected balance of each of the Electric Utility reserves for the period covered by this Financial Plan. The projected balances are also provided in. Appendix A: Electric Utility Financial Forecast Detail Table 5: End of Fiscal Year Electric Utility Reserve Balances for FY 2016 to FY 2027 Ending Reserve Balance ($000) FY 2016 (Act.) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Reappropriations - - - - - - - - - - - - Commitments 3,777 3,777 3,777 3,777 3,777 3,777 3,777 3,777 3,777 3,777 3,777 3,777 Underground Loan 729 729 729 729 729 729 729 729 729 729 729 729 Public Benefits 1,839 1,331 739 280 95 - - - - - - - Special Projects 51,838 41,665 41,526 41,192 42,859 46,192 44,665 44,665 44,665 44,665 44,665 44,665 Hydro Stabilization 11,400 2,400 - - - - - - - - - - Capital - - - - - - - - - - - - Rate Stabilization 9,011 3,600 - - - - - - - - - - Operations 21,850 21,570 28,477 31,328 31,984 32,727 36,734 36,600 36,226 38,957 40,471 41,658 Unassigned - - - 916 - - - - - - - - TOTAL 100,444 75,072 75,248 78,222 79,444 83,425 85,906 85,771 85,397 88,128 89,642 90,830 10 | Page SECTION 4: UTILITY OVERVIEW This section provides an overview of the utility and its operations. It is intended as general background information to help readers better understand the forecasts in Section 5: Utility Financial Projections and 11 | Page Section 6: Details and Assumptions. SECTION 4A: ELECTRIC UTILITY HISTORY On January 16, 1900, Palo Alto began operating its own electric system. One of the earliest sources of Palo Alto's electricity was a steam engine, which was later replaced by a diesel engine in 1914 due to rising fuel oil costs. As the population and the demand for electricity continued to grow, CPAU connected to PG&E’s system in the early 1920s. Power from PG&E proved more economical than the diesel engines, and by the late 1920s CPAU was using its own diesel engines only during peak demand periods. At that time CPAU owned 45 miles of distribution lines and the City used 9.7 GWh annually, less than 1% of today’s annual consumption. The diesel engines remained in operation until 1948, when they were retired. From 1950 to 1970 electric consumption in Palo Alto grew dramatically, just as it did throughout the rest of the country. In 1970 total annual sales were 602 GWh, twenty times the sales in 1950 (30 GWh). Some of that growth was related to a development boom in Palo Alto, which doubled the number of customers. Some was related to the proliferation of electric appliances, as evidenced by the fact that residential customers were using three times more electricity in 1970 than they had been in 1950. But the most notable factor was the growth of industry in Palo Alto during that time. By 1970, commercial customers were using 20 times more electricity per customer than they had been in 1950. These decades also saw several other notable events, including: • 1964: CPAU entered into a favorably priced 40-year contract with the Federal Bureau of Reclamation to purchase power from the Central Valley Project (CVP), a contract which later was managed by the Western Area Power Administration (WAPA) an office of the Department of Energy created in the 1970s to market power from various hydroelectric projects operated by the Federal Government, including the CVP. • 1965: The City began a long-term program to underground its overhead utility lines (Ordinance 2231). • 1968: Palo Alto joined several other small municipal utilities to form the Northern California Power Agency (NCPA), a joint action agency intended to make the group less vulnerable to actions by private utilities and to enable investment in energy supply projects. Palo Alto’s first new power plant investment in over 50 years came in the mid-80s. Palo Alto joined other NCPA members to invest in the construction and operation of the Calaveras Hydroelectric Project on the Stanislaus River in the Sierra-Nevada Mountains. The project commenced operation in 1990. The 1980s also saw an increased focus on infrastructure maintenance. In 1987 the UCC was built to house the terminals for a new SCADA system, which enabled utility staff to monitor the distribution system in real time, improving response time to outages. CPAU also commenced a preventative maintenance and planned replacement program for its underground system in the early 1990s. 12 | Page In the early 1990s the CPUC issued a ruling to deregulate the electric industry in California, and in 1996 the State legislature passed Assembly Bill 1890, which, among other things, created the California Independent System Operator (CAISO) to operate the transmission system and the Power Exchange to facilitate wholesale energy transactions. This restructuring was anticipated to bring lower costs to consumers, and while CPAU was not required to participate in the industry restructuring, in 1997 the Council approved a Direct Access Program for the Electric Utility2 that enabled CPAU to sell electricity outside its service territory and allowed customers within CPAU’s service territory to choose other providers. The utility unbundled its electric rates, creating separate supply and distribution components, which would enable customers to receive only distribution service while purchasing the electricity itself from another provider. The energy crisis in 2000 to 2001 led to the suspension of direct access by the CPUC in September 2001 as wholesale energy prices skyrocketed. The Electric Utility was less impacted than other utilities by the 2000 to 2001 energy crisis thanks to the Calaveras project and its contract with WAPA for CVP hydropower. In 2001 CPAU began planning for the impacts associated with the new terms of its contract with WAPA, set to take effect in 2005. The previous contract had provided 90% of Palo Alto’s power supply at favorable rates, and PG&E, as a party to the contract, had provided supplemental power to balance the monthly and annual variability of CVP generation. The new contract would provide only a third of Palo Alto’s requirement, and the monthly and annual variability in CVP generation would be passed directly to Palo Alto. As a result, electric supply costs would increase and CPAU needed to more actively managine its supply portfolio. CPAU began purchasing power from marketers and also investigated building a power plant in Palo Alto or partnering in the development of a gas-fired power plant elsewhere. Climate change was also becoming more of a concern to the community, and gradually CPAU shifted its focus to the procurement of renewable energy. In 2002 CPAU adopted a goal of achieving 20% of its energy supply from renewables by 2015. Subsequently CPAU signed its first contract for renewable power, a contract for energy from a wind generator commencing deliveries in 2005. In 2011 the renewable energy goal was increased to at least 33% by 2015, and in 2013 the City adopted a plan to make its electric supply 100% carbon neutral, which it achieves through the combination of its carbon-free hydroelectric supplies, purchases of long-term renewable energy supplies, and short-term renewable energy purchases (RECs) to meet the balance of its needs. 2 Implementation of Direct Access for Electric Utility Customers, CMR:460:97, December 1, 1997 13 | Page Figure 1: Customer Base (FY 2016) 16% 7% 35% 42% Residential Small Comm Med. Comm Large Comm SECTION 4B: CUSTOMER BASE The City of Palo Alto’s Electric Utility provides electric service to the residents, businesses, and other electric customers in Palo Alto. There are roughly 29,750 customers connected to the electric system, 25,700 (86%) of which are residential and 4,050 (14%) of which are non- residential. Residential customers consumed 148 gigawatt-hours (GWh) in FY 2016, approximately 16% of the electricity sold, while non-residential customers consumed 88% or 759 GWh. Residential customers use electricity primarily for lighting, refrigeration, electronics, and air conditioning.3 Non-residential customers use the majority of their electricity for cooling, ventilation, lighting, office equipment (offices), cooking (restaurants), and refrigeration (grocery stores).4 As shown in Figure 1 large customer loads represent a larger proportion of sales for the Electric Utility than they do for the City’s other utilities. The largest customers (the 72 customers on the E-7 rate schedule) account for over 40% of CPAU’s sales. The next largest customer group (the 835 non-residential customers on the E-4 rate schedule) represents another 35% of sales. In total, that means that about 3% of customers account for nearly three quarters of the electric load. SECTION 4C: DISTRIBUTION SYSTEM The Electric Utility receives electricity at a single connection point with PG&E’s transmission system. From there the electricity is delivered to customers through nearly 470 miles of distribution lines, of which 223 miles (48%) are overhead lines and 245 miles (52%) are underground. The Electric Utility also maintains six substations, roughly 2,000 overhead line transformers, 1,075 underground and substation transformers, and the associated electric services (which connect the distribution lines to the customers’ homes and businesses). These lines, substations, transformers, and services, along with their associated poles, meters, and 3 Source: Residential Appliance Saturation Survey, California Energy Commission, 2010 4 Source: Statewide Commercial End Use Study, California Energy Commission report, 2006. 14 | Page Figure 2: Cost Structure (FY 2016) 58% 34% 8% Commodity Supply Operations Capital Figure 3: Hydroelectric Variability (FY 2018) 0% 50% 100% 150% 200% Low Hydro Average High Hydro Surplus Hydro (sales) Market Power/RECs Hydro Renewables Load Figure 4: Revenue Structure (FY 2016) 87% 13% Sales of Electricity Other Revenue other associated electric equipment, represent the vast majority of the infrastructure used to deliver electricity in Palo Alto. SECTION 4D: COST STRUCTURE AND REVENUE SOURCES As shown in Figure 2, electric commodity purchases accounted for roughly 58% of the Electric Utility’s costs in FY 2016. Operational costs represented roughly 34%, and capital investment was responsible for the remaining 8%. CPAU’s non- hydro long-term commodity supply is heavily dependent on long-term contracts which have little variability in price. On average, costs for these long-term contracts are not predicted to increase as quickly as operations and CIP costs, and will steadily become a smaller proportion of the Electric Utility’s costs. Commodity supply costs are projected to be roughly 54% of total costs in FY 2027. While average year purchase costs for the electric utility are predictable due to its long-term contracts, variability in hydroelectric generation can result in increased or decreased costs. This is by far the largest source of variability the utility faces. Figure 3 shows the difference in costs under high, projected, and low hydroelectric generation scenarios for FY 2018. Additional costs associated with a very low generation scenario can range from $9-11 million per year. For the current hydroelectric risk assessment see Section 5F: Risk Assessment and Reserves Adequacy. As shown in Figure 4 the Electric Utility receives 87% of its revenue from sales of electricity and the remainder from connection fees, interest on reserves, cost recovery transfers from other funds for shared services provided by the electric utility, and other sources. Some 15 | Page revenue sources are primarily accounting entries that reflect things such as CPAU’s participation in a pre-funding program associated with its contract with WAPA, as well as accounting entries associated with occasional sales of surplus hydroelectric energy during wet years. Without these entries sales revenues represent roughly 91% of total revenues. Appendix A: Electric Utility Financial Forecast Detail shows more detail on the utility’s cost and revenue structures. As discussed in Section 4B: Customer Base, nearly three quarters of the utility’s electricity sales are to the 900 largest customers, which provide a similar share of the utility’s revenue stream. The utility’s retail rate schedules have no fixed charges, although about 24% of the utility’s revenue comes from peak demand charges on large non-residential customers. Due to moderate weather and the prevalence of natural gas heating, however, loads (and therefore revenues) are very stable for this utility, without the large seasonal air conditioning or winter heating loads seen at some other utilities. SECTION 4E: RESERVES STRUCTURE CPAU maintains several reserves for its Electric Utility to manage various types of contingencies. It also maintains two funds, the Supply Fund and the Distribution Fund, to manage costs associated with electricity supply and electricity distribution, respectively. This separation of supply and distribution costs was established as the City prepared to allow its customers a choice of electricity providers (referred to as “Direct Access”) back in the late 1990s and early 2000s. Though the 2000/2001 energy crisis halted these plans, CPAU continues to maintain separate funds to facilitate separation of supply and distribution costs in the rates. This could be important in case California ever decides to reintroduce Direct Access, and may also be useful for rate design as the nature of utility services evolves in response to higher penetrations of distributed generation. The various reserves are summarized below, but see Appendix B: Electric Utility Reserves Management Practices for more detailed definitions and guidelines for reserve management: • Reserves for Commitments: Reserves equal to the utility’s outstanding contract liabilities for the current fiscal year. Most City funds, including the General Fund, have a Commitments Reserve. • Reserves for Reappropriations: Reserves 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. This is currently an important reserve for all utility funds, but changes in budgeting practices will change that in future years, as described in Section 3C (Reserves Management Practices). • Electric Special Projects (ESP) Reserve: This reserve was formerly called the Calaveras Reserve, which was accumulated during deregulation of California’s electric system to fund the stranded costs associated primarily with the Calaveras hydroelectric resource and the California-Oregon Transmission Project. When that reserve was no longer 16 | Page needed for that purpose, the reserve was renamed and the purpose was changed to fund projects with significant impact that provide demonstrable value to electric ratepayers. • Hydroelectric Stabilization Reserve: This contingency reserve is used for managing additional costs due to below average hydroelectric generation, or to hold surpluses resulting from above average hydroelectric generation. • Underground Loan Reserve: This reserve is an accounting tool used to offset receivables associated with loans made through the underground loan program. It is adjusted according to principal payments made on those loans. • Public Benefits Reserve: CPAU’s electric rates include a separate charge called the “Public Benefits Charge” which generates revenue to be used for energy efficiency, demand-side renewable energy, research and development, and low-income energy efficiency services. Any funds not expended in the current year are added to the Public Benefits Reserve for use in future years. • Capital Improvement Program (CIP) Reserve: The CIP reserve is used to provide working capital and contingency funds for the CIP program, as well as to accumulate funds for major future one-time expenditures. This type of reserve is used in other utility funds (Electric, Gas, and Wastewater Collection) as well. • Supply and Distribution Rate Stabilization Reserves: These reserves are 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. This type of reserve is used in other utility funds (Gas, Wastewater Collection, and Water) as well. • Supply and Distribution Operations Reserves: These are the primary contingency reserves for the Electric Utility, and are used to manage yearly variances from budget for operational costs and electric supply costs (aside from variances related to hydroelectric generation). This type of reserve is used in other utility funds (Gas, Wastewater Collection, and Water) as well. • Unassigned Reserves (Supply/Distribution): As in the other utility funds, these reserves are for any financial resources not assigned to the other reserves and are normally empty. SECTION 4F: COMPETITIVENESS For the median consumption level the annual residential electric bill for calendar year 2016 was $551.65 under current CPAU rates, 38% lower than the annual bill for a PG&E customer with the same consumption and roughly the same as the annual bill for a City of Santa Clara customer. The bill calculations for PG&E customers are based on PG&E Climate Zone X, which includes most surrounding comparison communities. Table 6 presents sample median residential bills for Palo Alto, PG&E, and the City of Santa Clara (Silicon Valley Power) for several usage levels. Rates used to calculate the monthly bills shown 17 | Page below were in effect as of March 1, 2017. PG&E rates were recently increased, and their residential tiers moved from three to two. Over the next several years low usage customers in PG&E territory are expected to continue to see higher percentage rate increases than high usage customers as PG&E compresses its tiers from the highly exaggerated levels that have been in place since the energy crisis. This is likely to make the bill for the median Palo Alto consumer look even more favorable compared to most PG&E customers. Even with the compressed tiers, bills for high usage Palo Alto consumers are likely to remain substantially lower than the bills for high usage PG&E customers. The bill calculations show bills under the existing rates, not the proposed July 1, 2017 rates. However, even with the proposed rate increases, Palo Alto’s residential bills will remain substantially below PG&E’s current rates, but slightly above Santa Clara’s. Table 6: Residential Monthly Electric Bill Comparison (Effective 3/1/17, $/mo) Season Usage (kwh) Palo Alto PG&E Santa Clara Winter (March) 300 33.09 57.04 35.18 453 (Median) 57.18 97.81 53.78 650 90.48 154.38 77.73 1200 183.43 374.19 144.59 Summer (July) 300 33.09 57.04 35.25 (Median) 330 36.40 63.85 38.83 650 90.48 159.66 77.73 1200 183.43 380.43 144.59 Table 7 shows the average monthly electric bill for commercial customers for various usage levels. Even with the proposed rate increases, Palo Alto’s commercial bills will remain substantially below PG&E’s, and below Santa Clara’s for some commercial customers. Table 7: Commercial Monthly Electric Bill Comparison (3/1/17, $/mo) Usage (kwh/mo) Palo Alto PG&E Santa Clara 1,000 142 240 181 160,000 21,366 29,108 20,562 500,000 54,473 87,015 62,956 2,000,000 200,895 333,041 243,390 SECTION 5: UTILITY FINANCIAL PROJECTIONS SECTION 5A: LOAD FORECAST Figure 5 shows a 40-year history of Palo Alto electricity consumption. Average electricity consumption grew from 1986 to 1998, then returned to 1986 levels by 2002. Since then electricity consumption has declined slowly as a result of a continuing focus on energy 18 | Page efficiency, as well as the adoption of more stringent appliance efficiency standards and energy standards in building codes. Figure 5: Historical Electricity Consumption Figure 6 shows the forecast of electricity consumption through FY 2027. Sales after the July 2016 rate change decreased by 6% from projections. To be conservative, the forecast assumes that current trends continue and sales through the forecast period decline slightly. 800 850 900 950 1,000 1,050 1,100 1,150 19 8 9 19 9 0 19 9 1 19 9 2 19 9 3 19 9 4 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 Gw h 19 | Page Figure 6: Forecasted Electricity Consumption SECTION 5B: FY 2012 TO FY 2016 COST AND REVENUE TRENDS The annual expenses for the Electric Utility declined between FY 2009 and FY 2012, as shown in Figure 7 and the tables in Appendix A: Electric Utility Financial Forecast Detail. These decreases were partly related to declines in electricity market prices due to the impact of shale gas and partly due to above average output from hydroelectric resources. These factors are discussed in more detail in Section 6A: Electricity Purchases. Since FY 2012, total expenses for the utility have been increasing as renewable resources come online. In FY 2014 through FY 2015 costs were higher due to lower than average output from hydroelectric resources. Commodity costs are responsible for most of the changes in the utility’s expenses over the last six years. Operational costs and capital investment increased at less than 1% per year over that time. Actual Projection 20 | Page Figure 7: Electric Utility Expenses, Revenues, and Rate Changes: Actual Costs through FY 2016 and Projections through FY 2027 SECTION 5C: FY 2016 RESULTS California’s drought, with its corresponding lower hydroelectric energy output, continued to increase electricity costs in FY 2016. Offsetting this were lower operations and capital program spending. FY 2016 expenses were $9.2 million lower than in the FY 2017 Financial plan, with revenues being roughly equal. SECTION 5D: FY 2017 PROJECTIONS Last year, staff recommended (and Council approved) an 11% rate change for July 1, 2016, the start of FY 2017. Based on hydroelectric conditions at the time, staff forecasted a roughly $15.2 million deficit for FY 2017. This deficit was primarily related to low hydroelectric output, and was to be funded from the Rate Stabilization and Hydroelectric Stabilization reserves. Staff’s current forecast for FY 2017 is for a deficit of $25.4 million, $10.2 million more than forecast 21 | Page last year. This change is mainly due to sales decreasing by 6% after the last rate increase, cutting projected revenues by $11 million. The onset of wet weather and a forecast for a reversal in hydro conditions has brought down electric purchase cost projections, but the full impact of better hydro conditions likely won’t be felt until next fiscal year. With Operations reserves projected to be below minimum, several transfers, including a temporary loan from the Electric Special Projects Reserve, proposed. These transfers are discussed in Section 3D: Proposed Reserve Transfers. SECTION 5E: FY 2018 – FY 2027 PROJECTIONS As shown in Figure 7 above, costs for the Electric Utility are projected to increase at a fairly steady rate through the forecast period. Revenues will have to increase 10% in FY 2018 and another 7% in FY 2019 to bring revenues in line with expenses. The largest increases are primarily related to electricity purchase costs, which have been increasing since FY 2013 and will continue to increase through FY 2018 as new renewable projects come online to fulfill the City’s environmental goals and as transmission costs increase. Operations costs are expected to increase at or near the inflation rate (2-4 %/year) through the forecast period. Projected capital expenses for FY 2018 through FY 2023 are about $4.6 million lower than last year’s forecast as one large, customer driven project has been put on hold. The project would have been funded mostly through customer reimbursement. This forecast also assumes that smart grid costs are funded from the Electric Special Projects Reserves. Reserves trends based on these revenue projections are shown in Figure 8 (for Supply Fund reserves) and Figure 9 (for Distribution Fund reserves), below. The Supply Rate Stabilization Reserve will be empty by the end of FY 2017. The Distribution Operations reserve will require a short term transfer of $10 million from the Electric Special Projects reserve to remain adequate through the forecast period. The $10 million is projected to be transferred back between FY 2020 and FY 2021. The Supply Operations Reserve, however, is forecasted to be below minimum levels. This is discussed in more detail in Section 5F: Risk Assessment and Reserves Adequacy. The Hydro Stabilization reserve is projected to be depleted by the end of FY 2017. Staff will bring plans to Council in spring or summer for a Hydro rate adjustment mechanism to better utilize, and fund, this particular reserve. 22 | Page Figure 8: Electric Utility Reserves (Supply Fund): Actual Reserve Levels through FY 2016 and Projections through FY 2027 Figure 9: Electric Utility Reserves (Distribution Fund): Actual Reserve Levels through FY 2016 and Projections through FY 2027 23 | Page SECTION 5F: RISK ASSESSMENT AND RESERVES ADEQUACY The Electric Utility currently has two contingency reserves, the Supply Operations Reserve and the Distribution Operations Reserve. This Financial Plan maintains reserves in excess of the reserve minimum for the Distribution Operations Reserve throughout the forecast period. Reserve levels also exceed the short-term risk assessment level for the Distribution Fund. The Supply Operations Reserve, however, may end up below minimum levels and below the short- term risk assessment level. There are a variety of risks associated with the Supply Fund as are shown in Table 8. Because of the high range of uncertainty in energy price predictions more than three years in the future, this risk assessment is only performed for the first two fiscal years of the forecast period. It is important to note that the likelihood of all of these adverse scenarios occurring simultaneously and to the degree described in Table 8 is very low. Table 8: Electric Supply Fund Risk Assessment Categories of Electric Supply Cost Uncertainties Estimates of Adverse Outcomes (M$) Notes FY 2018 FY 2019 1.Load Net Revenue 0.9 1.0 Revenue loss from load decreases (net of reduction in energy purchases) 2.Production from Hydroelectric Resources: Western & Calaveras 9.3 13.7 Lower than forecasted hydro 3.Renewable Production: Landfill & Wind 0.5 2.0 Additional cost of renewable output that is higher than forecasted 4.Carbon Neutral Cost 0.0 0.0 Higher than forecasted market prices for RECs 5.Market Price (Energy)0.7 0.6 Higher than forecasted market prices for energy 6.Local Capacity 0.6 1.5 Higher than forecasted market prices for local capacity 7.Transmission/CAISO 3.2 3.3 High-end transmission forecast scenario 8.Plant Outage 1.0 1.0 Uninsured losses from Calaveras plant outage 9.Western Cost 2.4 3.5 Risk of rate adjustments from Western 10.Regulatory and Legal 0.0 0.0 Risks associated with legislative uncertainties 11.Supplier Default 0.2 0.2 Estimate of supplier default risks Electric Supply Fund Risks $18.8 million $26.8 million Projected Supply Operations + Hydro Stabilization Reserve Levels $16.0 million $17.5 million Of the risks faced by the Electric Utility’s Supply Fund in FY 2018, the risk of a dry year with very low hydroelectric output is normally the largest, accounting for nearly half the total cost of all adverse outcomes. Since the utility’s costs for its hydroelectric resources are almost entirely fixed, costs do not decline when the output of those resources are low, but the utility needs to buy power to replace the lost output. The converse happens when hydroelectric output is higher than average. 24 | Page Of the remaining risks for FY 2018, $3.2 million is related to the projected costs if transmission cost increases are higher than staff’s current forecast. Another $2.4 million is related to the possibility of drought-related changes to Western rates for CVP hydropower. As shown in Figure 10, the Supply Operations Reserve will drop below the minimum reserve guidelines by as much as $3.9 million over the course of the forecast period. In addition, as shown in Figure 11, the combined hydro stabilization and supply operations reserves will drop below the risk assessment level. It is acceptable under the Electric Utility Reserves Management Practices to drop below minimum reserve guidelines so long as Council approves the Financial Plan. Staff recommends proceeding with this plan for two reasons: first, due to larger than normal rains and snowpack to date, there is a chance of better hydro conditions will result in higher reserves, and second, the presence of the Electric Special Projects Reserve means that a small temporary shortfall in the Supply Operations Reserve should not affect the Electric Utility’s bond ratings. In the event drought re-emerges, staff will re-evaluate its projections for FY 2019 and may recommend additional rate increases or the adoption of a hydroelectric rate adjuster. Figure 10: Electric Supply Operations Reserve Adequacy 25 | Page Figure 11: Adequacy of Supply Operations and Hydro Stabilization Reserves, Combined Table 9 summarizes the risk assessment calculation for the Distribution Operations Reserve through FY 2022. As shown in Figure 12, the Distribution Operations Reserve will stay within the reserve guidelines over the course of the forecast period. 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. 26 | Page Table 9: Electric Distribution Fund Risk Assessment ($000) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total non-commodity revenue $46,877 $49,044 $48,931 $48,812 $49,612 Max. revenue variance, previous ten years 8% 8% 8% 8% 8% Risk of revenue loss $3,700 $3,871 $3,862 $3,852 $3,916 CIP Budget $15,574 $15,869 $25,150 $19,048 $17,449 CIP Contingency @10% $1,557 $1,587 $2,515 $1,905 $1,745 Total Risk Assessment value $5,257 $5,458 $6,377 $5,757 $5,661 Figure 12: Electric Distribution Operations Reserve Adequacy As shown in Figure 13, the CIP Reserve is projected to be at or above the proposed revised minimum and maximum guidelines over the forecast period. While the Reserve is above maximum levels in later years, CIP Commitments are nearly impossible to project that far out, and adjustments to the reserve can be made in future years. 27 | Page Figure 13: Electric CIP Reserve Adequacy SECTION 5G: LONG-TERM OUTLOOK This forecast covers the period from FY 2018 through FY 2027, but various long-term developments may create new costs for the utility over the next 5 to 35 years. While it is challenging to accurately forecast the impact these events will have on the utility’s costs, it is worth noting them as future milestones and keeping them in mind for long-term planning purposes. For the supply portfolio, the 2020s will see a number of notable events. The contract with Western for power from the CVP will expire in 2024. Determining the future relationship with Western after 2024 will be important in the years leading up to the contract expiration, especially because this resource represents nearly 40% of the electric portfolio, and is the utility’s largest source of carbon-free electricity. The utility’s three earliest and lowest cost renewable contracts will also begin expiring around that time, with the first contract expiring in 2021 and the last in 2028. These three contracts, plus one more expiring in 2030, currently 28 | Page provide 17% to 18% of the energy for the utility’s supply portfolio at prices under $65 per megawatt-hour (MWh). It is difficult to know what renewable energy prices will be when those contracts expire. Although recent prices have been in that range (or even lower), and costs may decrease in the future, current renewable projects also benefit from a wide range of tax and other incentives that may or may not be available in the 2020s and beyond. However, staff is in the process of procuring a replacement for the contract expiring in 2021 at a lower price than any of the City’s current renewable contracts. The costs of the Calaveras hydro project will also change in the 2020s, with debt service costs dropping by half in 2025 as some of the debt is paid off, and all debt retired by the end of 2032 (assuming no new debt is issued). The project will only be 40 years old at that time. Calaveras debt service represents roughly 70% of the annual costs of that project (and nearly 7% of the utility’s total costs), so when the debt is retired, the project could be a low-cost asset for the utility, providing carbon-free energy equal to 13% of the Electric Utility’s supply needs in an average year. Another factor that may affect the utility’s supply costs in the long run is carbon allowance revenue. Currently the Electric Utility receives $3 to 5 million per year in revenue from allocated carbon allowances under the State’s cap-and-trade program. It uses that revenue to pay for energy efficiency and to purchase renewable energy to support the utility’s Carbon Neutral Plan. That revenue source is expected to continue through 2020, but provisions for whether or not these allocations continue past 2020 are still being discussed. If the Electric Utility no longer received these allowances, it would have to fund these programs from sales revenues. Transmission costs are also continuing to rise. If the State continues to increase mandates or incentives for renewable energy development, integrating these new projects into the transmission grid will be an ever increasing challenge, some costs of which will be borne by Palo Alto. The planned expansion of the CAISO to a larger regional grid control area may result in additional transmission costs that could further increase CPAU’s transmission costs. In addition to the costs of new transmission lines that will need to be built, flexible resources will be required to balance rapid changes in wind or solar output throughout the day. Palo Alto will likely bear some of the costs of these new lines and resources. CPAU is also currently investigating installing a second transmission interconnection for Palo Alto, which could be funded by the Electric Special Projects reserve. Over the next several years the Electric Utility will continue to execute its usual monitoring, repair, and replacement routine for the distribution system, but will also begin the rollout of various smart grid technologies. The utility continues to monitor the growth of electric vehicle ownership and gas-to-electric fuel switching in Palo Alto. In the next 10 to 20 years, these factors may begin to create notable increases in electric consumption and have a variety of impacts on the distribution system. As housing stock is turned over, however, stricter building codes may help to counteract load growth, as may increasing numbers of rooftop solar installations. The utility has already started to take some of these factors into account in its 29 | Page long-term planning processes, but will need to continue to incorporate them into its planning methodologies. Over the long term, it is conceivable that electricity could replace natural gas and petroleum almost entirely. Many, if not most, vehicles would use electricity, though hydrogen is another potential fuel source under development and other technologies might be developed. Initial analysis of these types of scenarios is being undertaken in the context of the Sustainability and Climate Action Plan (S/CAP) development process. These types of scenarios require careful planning for the associated load growth to make sure the distribution system did not end up overloaded, or conversely, to avoid over investment, and the evaluation of changes to utility distribution system management to accommodate integration of the various technologies involved in electrification. 30 | Page SECTION 6: DETAILS AND ASSUMPTIONS SECTION 6A: ELECTRICITY PURCHASES As shown in Figure 14 the utility gets roughly 50% of its energy from hydroelectric projects in a normal year (FY 2014 and FY2015 were dry). Contracts with renewable sources made up just over 30% of the portfolio in FY 2016, and are projected to rise to roughly 50% starting in FY 2017. The remainder comes from unspecified market sources. Under the City’s Carbon Neutral Plan, CPAU purchases RECs corresponding to the amount of market energy it purchases. Figure 14: Electricity Supply by Source 31 | Page Figure 15 shows the historical and projected costs for the electric supply portfolio,5 as well as average and actual hydroelectric generation.6 Electric supply costs increased in FY 2013, FY 2014, and FY 2015 due to the drought, which reduced the amount of generation from hydroelectric resources. Costs decreased slightly in FY 2016 due to better than expected market purchase costs. Even if hydroelectric generation returns to normal levels, costs will increase in FY 2017 due to increases in renewable energy costs as various renewable projects come online to fulfill the City’s carbon neutral and RPS goals. Transmission charges are also projected to increase as new transmission lines are built throughout California to accommodate new renewable projects. In total, electric supply costs are projected to increase to $77.8 million by FY 2020, at which point all currently contracted renewable projects will be online. Supply costs are only projected to change slightly in subsequent years. Figure 15: Electric Supply Portfolio Costs, Historical and Projected 5 Costs are shown net of wholesale revenues, and cannot be directly compared with the electric supply purchase figures shown in Appendix A: Electric Utility Financial Forecast Detail 6 Average hydroelectric generation increased in January of 2015 due to an increase in the utility’s contractual share of the output of the CVP Federal hydropower project. 32 | Page SECTION 6B: OPERATIONS CPAU’s Electric Utility operations include the following activities: •Administration, including financial management of charges allocated to the Electric 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 Electric 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 C: Description of Electric utility Operational Activities includes detailed descriptions of the work associated with each of these activities. From FY 2012 to FY 2015, Operations costs increased by less than 1% per year on average. In 2013 there was a one-time increase in expenses associated with an adjustment to the value of the City’s investment portfolio. Over the forecast horizon, excluding debt service and transfers, costs are projected to increase by roughly 2 to 4 % per year. Figure 16: Historical and Projected Electric Utility Operational Costs 33 | Page SECTION 6C: CAPITAL IMPROVEMENT PROGRAM (CIP) CIP spending for FY 2018 through FY 2023 is projected to decrease somewhat from last year’s forecast, primarily due to the removal of some major one-time projects, including service connection upgrades for a few major customers. Other projects still slated to continue are pole replacements related to the Fiber to the Home project, and Smart Grid upgrades. Ongoing capital investment in the electric distribution system is also increasing. This forecast assumes that smart grid projects are financed from the Electric Special Projects Reserve and with additional funding from the water and gas funds, but it would also be possible to use bond financing. Excluding the one-time projects listed above, the CIP plan for FY 2018 to FY 2022 is primarily funded by utility rates, but other sources of funds include connection fees (for Customer Connections), phone and cable companies (primarily for undergrounding), and other funds (for smart grid). The details of the CIP budget will be available in the Proposed FY 2018 Utilities Capital Budget. Figure 16 shows the adopted / proposed / projected capital budgets as well as actual and projected capitalized administrative overhead associated with the program. Figure 17: Electric Utility CIP Spending SECTION 6D: DEBT SERVICE The Electric Utility’s annual debt service is $100,000 per year. The Electric Utility currently makes payment on one bond issuance, the 2007 Electric Utility Clean Renewable Energy Tax Credit Bonds, Series A. This $1.5 million bond issuance was to fund a portion of the construction costs of solar demonstration projects at the Municipal Services Center, Baylands Interpretive Center, and Cubberley Community Center. The capacity of these projects totaled 250 kW. In exchange for funding part of the construction costs Electric Utility receives the RECs from these projects. The bonds were Clean Renewable Energy Bonds (CREBs), meaning they are interest free (the investors receive a tax credit from the federal government). This bond issuance is secured by the net revenues of the Electric Utility. Debt service for this bond continues through 2021, and for the financial forecast period is as follows: 34 | Page Table 10: Electric Utility Debt Service ($000) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 2007 Clean Renewable Energy Bonds 100 100 100 100 100 - The 2007 bonds include a covenant stating that the Electric Utility will maintain a debt coverage ratio of 125% of debt service. The current Financial Plan maintains compliance with these covenants throughout the forecast period, as shown in Appendix C. The Electric Utility’s reserves and net revenue are also pledged as security for the bond issuances listed in Table 11, even though the Electric Utility is not responsible for the debt service payments. The Electric 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. Table 11: Other Issuances Secured by Electric Utility’s Revenues or Reserves Bond Issuance Responsible Utilities Annual Debt Service ($000) Secured by Electric Utility’s: Net Revenues Reserves 1995 Utility Revenue Bonds, Series A Storm Drain $680 Yes No 1999 Utility Revenue Bonds, Series A Storm Drain Wastewater Collection Wastewater Treatment $1,207 No Yes 2009 Water Revenue Bonds (Build America Bonds) Water $1,977* No Yes 2011 Utility Revenue Refunding Bonds, Series A Gas Water $1,457 No Yes *Net of Federal interest subsidy SECTION 6E: EQUITY TRANSFER The City calculates the equity transfer from its Electric Utility based on a methodology adopted by Council in 2009, which has remained unchanged since then.7 Each year it is calculated according to the 2009 Council-adopted methodology, and does not require additional Council action. SECTION 6F: WHOLESALE REVENUES AND OTHER REVENUES The Electric Utility receives most of its revenues from sales of electricity, but about 13% comes from other sources. Of these other sources, about a third represent wholesale “revenues” that are included solely for accounting purposes. These revenues have offsetting electric supply 7 For more detail on the ordinance adopting the 2009 transfer methodology, see CMR 280:09, Budget Adoption Ordinance for Fiscal Years 2009 and 2010; and CMR 260:09, Finance Committee Report explaining proposed changes to equity transfer methodology. 35 | Page purchase costs, and do not normally affect the utility’s net position. Of the remaining revenues, the largest revenue sources are interest on reserves, connection fees for new or replacement electric services, and carbon allowance revenues associated with the State’s cap-and-trade program. In FY 2016 these sources represented roughly 50% of revenue from sources other than electricity sales. The remaining FY 2016 revenues consisted of a variety of one-time transfers. Revenues from connection fees have more than doubled since FY 2009. Revenue from these sources decreased slightly during the recession, but has increased substantially since then, peaking in FY 2014. Staff is forecasting slightly lower revenue from this source in subsequent years. Carbon allowance revenues are projected to stay stable through the forecast period, as is interest income. However, both of these revenue sources are subject to some uncertainty. The State’s cap-and-trade program regulations only describe the program through 2020. This forecast assumes the program will remain in place with similar program design following 2020, but that may not be the case. CARB is in the process of establishing post-2020 rules. The forecast for interest income assumes current interest rates continue and there are no major reserve reductions aside from what is anticipated in this Financial Plan. If interest rates rise, interest income could increase, and if reserves decreased (due to drought or a withdrawal from the ESP reserve for a major project), interest income would decrease. SECTION 6G: SALES REVENUES Sales revenue projections are based on the load forecast in Section 5A: Load Forecast and the projected rate changes shown in Figure 7. As discussed in Section 5A, sales revenues for this utility stay relatively stable due to the mild climate in Palo Alto, but decreased significantly in FY 2017. In addition, Palo Alto is a built out City, with incremental growth in population and relatively stable commercial customer loads. 36 | Page SECTION 7: COMMUNICATIONS PLAN CPAU communication methods include use of the Utilities website, utility bill inserts, messaging on bills and envelopes, email newsletters, print ads in local publications, videos and participation in community outreach events. The FY 2018 Electric Utility communications strategy covers these primary areas: rates, efficiency, renewables, operations, infrastructure, safety, and changes to utility economic conditions in the wake of the drought. In FY 2018, CPAU is proposing an 12% increase in electric utility rates. Prior to FY 2017, electric utility rates had not increased since 2009, as the City has been drawing down reserves from the Electric Fund. The rate increase was necessary last year and again in FY 2018, as these reserves are below the minimum reserve level. Communications will focus on the reasons why a rate increase is necessary, and how this percentage has been impacted due to the drought, renewable projects, capital improvement and other costs. Palo Alto purchases a significant portion of its electricity from hydroelectric resources. Severe drought conditions over the past few years reduced available hydroelectric supplies, requiring the City to purchase more costly replacement electric supplies. Since the State received a great deal of precipitation in the latter part of FY 2017, communications staff will now focus messaging on how increased hydroelectric supplies will impact and potentially change the forecast for electric rates moving forward, at least in the short-term. Reliability and safety are primary concerns for CPAU and City Council has placed increasing emphasis on capital improvement investments for utility infrastructure. In order to maintain system integrity, continued capital improvement costs are necessary. Deferring such costs to future years would not be prudent, as deferred investment in maintenance, operations and capital improvement upgrades could potentially jeopardize the safety and reliability of the electric utility system. Despite these costs and increasing rates, CPAU’s rates remain lower than the neighboring community average, including for municipal and investor-owned utilities (PG&E). Keeping costs low is one of the benefits CPAU offers its customers as a public utility provider. CPAU will continue to communicate about the City’s carbon neutral electric supply portfolio. Outreach includes apprising the public of major renewable energy purchase agreements, which contribute toward Palo Alto’s long-term energy security and commitment to sustainability. Recent power purchase agreements have allowed CPAU to procure long-term renewable electric supplies at low costs. While upfront capital costs to bring these renewable projects online may initially contribute towards some increase in CPAU’s electric rates, these higher costs are expected to taper off once the projects begin commercial operations. CPAU will highlight these environmental attributes and value in our communications. Throughout the year, communications staff promotes CPAU’s electric efficiency services, rebates and local renewable energy programs. From January 2015 to December 2016, CPAU encouragedcommunity participation in the Georgetown University Energy Prize competition, a friendly, national campaign for energy efficiency. This two-year campaign encouraged the 37 | Page community to reduce energy use and compete for a $5 million prize. Within the past one to two years, CPAU launched new programs thatallow customers to better understand and manage their energy use. These programs include the Home Efficiency Genie; a free utility bill analysis service with option for a subsidized in-depth home energy assessment; and an online utility portal for customers to view consumption history, learn about efficiency tips and CPAU programs they can take advantage of for home energy efficiency. 38 | Page APPENDICES Appendix A: Electric Utility Financial Forecast Detail Appendix B: Electric Utility Reserves Management Practices Appendix C: Description of Electric utility Operational Activities Appendix D: Samples of Recent Electric Utility Outreach Communications 6053706 APPENDIX A: ELECTRIC UTILITY FINANCIAL FORECAST DETAIL 6053706 (page intentionally left blank) 6053706 1 FISCAL YEAR FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 2 3 ELECTRIC LOAD 4 Purchases (MWh)969,519 976,319 980,894 979,005 977,292 945,703 960,601 940,860 938,688 936,402 934,369 934,369 934,369 934,369 934,369 934,369 5 Sales (MWh)942,562 946,841 950,784 936,773 937,157 906,562 908,459 907,858 905,762 903,556 901,594 901,594 901,594 901,594 901,594 901,594 6 7 BILL AND RATE CHANGES 8 System Average Rate ($/kWh)0.1156$ 0.1154$ 0.1164$ 0.1158$ 0.1156$ 0.1233$ 0.1407$ 0.1506$ 0.1506$ 0.1506$ 0.1516$ 0.1553$ 0.1568$ 0.1579$ 0.1589$ 0.1600$ 9 Change in System Average Rate -1%0%1%0%0%10%14%7%0%0%1%2%1%1%1%1% 10 Change in Average Residential Bill -1%-4%-1%-5%3%10%11%6%-1%-1%0%2%1%0%0%0% 11 12 STARTING RESERVES 13 Reappropriations (Non-CIP)343,000 1,886,000 305,000 - - - - - - - - - - - - - 14 Commitments (Non-CIP)1,593,000 2,737,000 3,528,000 3,164,000 3,102,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 15 Restricted for Debt Service - - - - - - - - - - - - - - - - 16 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 1,000,000 - - - - - - - - - - - - 17 Central Valley Project Reserve 305,000 314,000 313,000 329,000 - - - - - - - - - - - - 18 Underground Loan Reserve 736,000 742,000 738,000 734,000 730,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 19 Public Benefits Reserves 3,139,000 1,149,000 2,197,000 2,064,000 2,574,000 1,839,000 1,330,970 739,050 279,587 94,959 - - - - - - 20 Electric Special Projects Reserve 55,558,000 50,320,000 51,838,000 51,838,000 51,838,000 51,838,000 41,665,260 41,525,693 41,192,360 42,859,027 46,192,360 44,665,260 44,665,260 44,665,260 44,665,260 44,665,260 21 Hydro Stabilization Reserve - - - - 17,000,000 11,400,000 2,400,000 - - - - - - - - - 22 Capital Reserves - - - - - - - - - - - - - - - - 23 Rate Stabilization Reserves 66,331,000 74,609,000 69,029,000 70,049,000 14,411,000 9,011,000 3,600,000 - - - - - - - - - 24 Operations Reserves - - - - 22,498,000 21,850,000 21,570,031 28,477,295 31,328,331 31,984,129 32,727,128 36,734,340 36,600,128 36,226,077 38,957,005 40,470,904 25 Unassigned - - - - - - - - 915,938 (0) 0 0 - - - - 26 TOTAL STARTING RESERVES 129,005,000 132,757,000 128,948,000 129,178,000 112,153,000 100,444,000 75,072,262 75,248,039 78,222,216 79,444,115 83,425,489 85,905,601 85,771,388 85,397,337 88,128,265 89,642,164 27 28 REVENUES 29 Net Sales 109,309,318 109,974,337 110,246,264 108,873,377 108,312,917 111,743,300 127,804,839 136,731,078 136,415,457 136,083,191 136,693,648 139,980,910 141,364,099 142,326,185 143,276,966 144,246,140 30 Wholesale Revenues 7,189,218 6,635,790 6,010,409 6,267,000 5,534,000 11,422,865 16,360,219 13,481,291 15,723,490 16,405,058 17,841,074 17,242,448 17,467,779 17,643,588 17,905,633 19,002,541 31 Other Revenues and Transfers In 7,027,230 9,624,213 13,669,185 9,688,480 10,129,274 10,013,826 14,509,829 12,934,637 21,875,693 18,854,966 15,870,577 12,946,907 13,320,702 13,772,401 14,201,802 14,631,713 32 TOTAL REVENUES 123,525,766 126,234,340 129,925,858 124,828,858 123,976,191 133,179,991 158,674,887 163,147,006 174,014,640 171,343,215 170,405,299 170,170,265 172,152,580 173,742,173 175,384,402 177,880,394 33 34 EXPENSES 35 Electric Supply Purchases 58,724,136 61,313,637 68,785,977 80,022,010 79,114,644 84,371,202 87,986,828 89,065,816 90,840,796 90,727,608 92,220,793 91,758,113 92,924,517 93,903,644 95,224,116 96,464,584 36 Operating Expenses 37 Administration 38 Allocated Charges 3,416,423 4,399,674 4,139,837 4,511,222 5,148,470 3,376,852 3,461,365 3,547,989 3,636,783 3,727,743 3,820,946 3,916,481 4,014,404 4,114,776 4,217,658 4,323,112 39 Rent 3,839,201 3,875,836 4,051,044 4,147,742 4,997,101 5,121,102 5,274,735 5,432,977 5,595,966 5,763,845 5,936,761 6,114,864 6,298,310 6,487,259 6,681,877 6,882,333 40 Debt Service 8,902,751 9,265,736 9,020,651 9,037,000 8,985,994 8,889,090 8,868,768 8,471,091 8,480,048 8,444,315 8,453,684 9,299,046 8,893,834 4,898,677 4,896,047 4,894,784 41 Transfers and Other Adjustments 11,603,695 16,797,054 11,329,973 11,003,993 5,920,297 12,078,949 13,226,214 13,275,892 14,159,863 14,163,159 14,166,536 14,169,998 14,173,547 14,177,184 14,180,913 14,184,734 42 Subtotal, Administration 27,762,069 34,338,299 28,541,506 28,699,957 25,051,862 29,465,993 30,831,082 30,727,949 31,872,660 32,099,063 32,377,926 33,500,388 33,380,095 29,677,896 29,976,494 30,284,963 43 Resource Management 2,654,024 3,024,268 3,541,524 2,138,615 2,035,834 3,240,541 3,356,945 3,476,405 3,600,582 3,707,001 3,803,153 3,902,819 4,005,096 4,110,053 4,217,761 4,328,292 44 Demand Side Management 4,541,531 3,529,529 3,187,875 3,491,470 3,723,605 3,690,063 3,773,952 3,639,388 3,357,212 3,297,042 3,255,251 3,339,598 3,384,926 3,431,076 3,478,065 3,525,906 45 Operations and Mtc 9,288,490 9,601,481 9,488,627 10,716,881 11,514,846 13,702,158 14,158,618 14,626,674 15,111,694 15,541,894 15,941,538 16,354,711 16,778,592 17,213,460 17,659,598 18,117,300 46 Engineering (Operating)1,057,783 1,114,945 1,102,008 1,230,160 1,578,022 1,840,073 1,889,674 1,940,499 1,992,737 2,044,182 2,095,630 2,148,473 2,202,649 2,258,191 2,315,133 2,373,512 47 Customer Service 1,908,493 2,007,322 2,032,231 1,548,851 1,538,363 2,212,967 2,297,149 2,383,613 2,473,714 2,549,014 2,615,594 2,684,750 2,755,735 2,828,597 2,903,385 2,980,150 48 Allowance for Unspent Budget - - - - - (1,461,604) (1,508,656) (1,556,914) (1,606,879) (1,651,905) (1,694,232) (1,737,944) (1,782,784) (1,828,782) (1,875,967) (1,924,370) 49 Subtotal, Operating Expenses 47,212,389 53,615,844 47,893,770 47,825,933 45,442,532 52,690,192 54,798,765 55,237,614 56,801,721 57,586,290 58,394,860 60,192,796 60,724,308 57,690,491 58,674,470 59,685,754 50 Capital Program Contribution 13,837,241 15,113,859 13,016,111 14,005,915 11,128,015 21,490,335 15,573,950 15,869,398 25,150,225 19,047,944 17,449,100 18,353,570 18,877,806 19,417,110 19,971,917 20,542,674 51 TOTAL EXPENSES 119,773,766 130,043,340 129,695,858 141,853,858 135,685,191 158,551,729 158,359,542 160,172,828 172,792,742 167,361,841 168,064,753 170,304,478 172,526,631 171,011,245 173,870,503 176,693,012 52 22,058,000.0 26,659,398 15,868,470 16,320,285 16,784,774 53 ENDING RESERVES 54 Reappropriations (Non-CIP)1,886,000 305,000 - - - - - - - - - - - - - - 55 Commitments (Non-CIP)2,737,000 3,528,000 3,164,000 3,102,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 56 Restricted for Debt Service - - - - - - - - - - - - - - - - 57 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 - - - - - - - - - - - - - 58 Central Valley Project Reserve 314,000 313,000 329,000 - - - - - - - - - - - - - 59 Underground Loan Reserve 742,000 738,000 734,000 730,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 60 Public Benefits Reserves 1,149,000 2,197,000 2,064,000 2,574,000 1,839,000 1,330,970 739,050 279,587 94,959 - - - - - - - 61 Electric Special Projects Reserve 50,320,000 51,838,000 51,838,000 51,838,000 51,838,000 41,665,260 41,525,693 41,192,360 42,859,027 46,192,360 44,665,260 44,665,260 44,665,260 44,665,260 44,665,260 44,665,260 62 Hydro Stabilization Reserve - - - 17,000,000 11,400,000 2,400,000 - - - - - - - - - - 58 Capital Reserve - - - - - - - - - - - - - - - - 59 Rate Stabilization Reserve 74,609,000 69,029,000 70,049,000 14,411,000 9,011,000 3,600,000 - - - - - - - - - - 60 Operations Reserve - - - 22,498,000 21,850,000 21,570,031 28,477,295 31,328,331 31,984,129 32,727,128 36,734,340 36,600,128 36,226,077 38,957,005 40,470,904 41,658,286 61 Unassigned - - - - - - - 915,938 (0) 0 0 - - - - - 62 TOTAL ENDING RESERVES 132,757,000 128,948,000 129,178,000 112,153,000 100,444,000 75,072,262 75,248,039 78,222,216 79,444,115 83,425,489 85,905,601 85,771,388 85,397,337 88,128,265 89,642,164 90,829,546 63 64 OPERATIONS RESERVE 65 Min (60 days of non-capital expenses)23,548,140 23,951,699 25,106,757 25,973,915 26,332,908 26,857,109 27,090,134 27,593,969 27,942,086 28,353,037 28,150,419 28,667,754 29,179,891 66 Target (90 days of non-capital expenses)33,151,752 33,702,675 35,379,286 36,622,631 37,102,294 37,828,286 38,116,222 38,808,965 39,266,545 39,816,759 39,444,963 40,151,398 40,848,296 67 Max (120 days of non-capital expenses)42,755,364 43,453,651 45,651,816 47,271,347 47,871,681 48,799,463 49,142,310 50,023,961 50,591,003 51,280,480 50,739,507 51,635,042 52,516,702 68 Risk Assessment Value 4,645,297 4,373,014 5,295,861 5,257,153 5,457,746 6,376,895 5,757,260 5,660,508 6,010,401 6,256,453 6,469,660 6,600,181 6,733,749 69 70 DEBT SERVICE COVERAGE RATIO 71 Net Revenues (125% of Debt Service)1090% 1140% 1193% 1315%1286% 1442% 1510% 1603% 1641% 1656% 1682% 1534% 1628% 2995% 3043% 3090% 72 Available Reserves (5x Debt Service)*14.4 13.5 14.0 12.1 10.8 8.0 8.1 8.8 8.9 9.4 9.7 8.8 9.2 17.2 17.5 17.8 *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. 6053706 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 88%87%85%87%87%84%81%84%78%79%80%82%82%82%82%81% 5 Other Revenues and Transfers In 12%13%15%13%13%16%19%16%22%21%20%18%18%18%18%19% 6 TOTAL REVENUES 100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100% 7 8 EXPENSES 9 Commodity Purchases 46%46%52%55%54%50%46%47%45%46%46%46%46%47%47%47% 10 Operating Expenses 11 Administration 12 Allocated Charges 3%3%3%3%4%2%2%2%2%2%2%2%2%2%2%2% 13 Rent 3%3%3%3%4%3%3%3%3%3%4%4%4%4%4%4% 14 Debt Service 7%7%7%6%7%6%6%5%5%5%5%5%5%3%3%3% 15 Transfers and Other Adjustments 10%13%9%8%4%8%8%8%8%8%8%8%8%8%8%8% 16 Subtotal, Administration 23%26%22%20%18%19%19%19%18%19%19%20%19%17%17%17% 17 Resource Management 2%2%3%2%2%2%2%2%2%2%2%2%2%2%2%2% 18 Operations and Mtc 8%7%7%8%8%9%9%9%9%9%9%10%10%10%10%10% 19 Engineering (Operating)1%1%1%1%1%1%1%1%1%1%1%1%1%1%1%1% 20 Customer Service 2%2%2%1%1%1%1%1%1%2%2%2%2%2%2%2% 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 36%39%34%31%31%31%32%32%31%32%33%33%33%32%32%32% 23 Capital Program Contribution 12%12%10%10%8%14%10%10%15%11%10%11%11%11%11%12% 24 TOTAL EXPENSES 94%96%97%96%93%94%88%89%90%90%89%90%90%90%90%90% 25 26 RISK ASSESSMENT DETAIL (SUPPLY FUND) 27 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 28 1. Load Net Revenue 77,428 652,853 1,208,477 29 2. Hydro Production: Western & Calaveras 9,314,822 9,050,313 3,397,119 30 3. Renewable Production: Landfill & Wind & Solar 375,755 743,945 539,073 31 4. Carbon Neutral Cost 331,630 303,022 114,983 32 5. Market Price 909,196 775,584 1,138,589 33 6. Local Capacity 475,962 408,388 446,695 34 7. Transmission/CAISO 4,555,915 3,741,647 2,806,120 35 8. Plant Outage 1,000,000 1,000,000 1,000,000 36 9. Western Cost 3,130,000 2,704,738 2,973,619 37 10. Regulatory & Legal - - - 38 11. Supplier Default - - - 39 TOTAL 20,170,708 19,380,490 13,624,674 40 Supply Operations + Hydro Stabilization Reserves, % of Risk Assessment 196%172%176% 41 42 RISK ASSESSMENT DETAIL (DISTRIBUTION FUND) 43 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 44 Distribution Revenue Variance 3,244,706 3,260,213 3,146,827 3,699,758 3,870,807 3,861,873 3,852,466 3,915,598 4,175,044 4,368,672 4,527,949 4,602,989 4,679,481 45 10% CIP Program Contingency 1,400,592 1,112,802 2,149,034 1,557,395 1,586,940 2,515,022 1,904,794 1,744,910 1,835,357 1,887,781 1,941,711 1,997,192 2,054,267 46 Total Risk Asssessment Value 4,645,297 4,373,014 5,295,861 5,257,153 5,457,746 6,376,895 5,757,260 5,660,508 6,010,401 6,256,453 6,469,660 6,600,181 6,733,749 47 Projected Operations Reserve 22,498,000 21,850,000 21,570,031 28,477,295 28,507,266 31,984,129 32,727,129 36,734,340 36,600,128 36,226,077 38,957,005 40,470,904 41,658,286 48 Operations Reserve, % of Risk Value 484%500%407%542%522%502%568%649%609%579%602%613%619% 49 44 SUPPLY OPERATIONS RESERVE 45 Min (60 days of non-capital expenses)- - - 15,208,552 15,033,113 16,240,825 16,860,400 17,001,701 17,325,251 17,328,711 17,602,415 17,709,305 17,862,689 17,395,887 17,642,251 17,876,454 46 Target (90 days of non-capital expenses)- - - 22,812,829 22,549,669 24,361,237 25,290,599 25,502,552 25,987,877 25,993,067 26,403,622 26,563,958 26,794,033 26,093,831 26,463,376 26,814,681 47 Max (120 days of non-capital expenses)- - - 30,417,105 30,066,225 32,481,649 33,720,799 34,003,403 34,650,502 34,657,422 35,204,830 35,418,611 35,725,378 34,791,775 35,284,501 35,752,908 48 49 DISTRIBUTION OPERATIONS RESERVE 50 Min (60 days of non-capital expenses)- - - 8,339,587 8,918,586 8,865,932 9,113,516 9,331,206 9,531,858 9,761,423 9,991,554 10,232,781 10,490,348 10,754,532 11,025,503 11,303,437 51 Target (90 days of non-capital expenses)- - - 10,338,923 11,153,006 11,018,050 11,332,032 11,599,742 11,840,409 12,123,155 12,405,343 12,702,586 13,022,725 13,351,132 13,688,022 14,033,616 52 Max (120 days of non-capital expenses)- - - 12,338,259 13,387,426 13,170,167 13,550,548 13,868,279 14,148,960 14,484,888 14,819,131 15,172,392 15,555,102 15,947,732 16,350,541 16,763,794 53 Risk Assessment Value 4,645,297 4,373,014 5,295,861 5,257,153 5,457,746 6,376,895 5,757,260 5,660,508 6,010,401 6,256,453 6,469,660 6,600,181 6,733,749 54 55 DEBT SERVICE COVERAGE RATIO 56 Net Revenues (125% of Debt Service)1090%1140%1193%1315%1286%1442%1510%1603%1641%1656%1682%1534%1628%2995%3043%3090% 57 Available Reserves (5x Debt Service)*14.4 13.5 14.0 12.1 10.8 8.0 8.1 8.8 8.9 9.4 9.7 8.8 9.2 17.2 17.5 17.8 58 *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. ELECTRIC UTILITY FINANCIAL PLAN June 16, 2014 43 | Page APPENDIX B: ELECTRIC UTILITY RESERVES MANAGEMENT PRACTICES (This section includes the proposed amendments to this section. This section will be finalized following Council adoption of the final amended version.) The following reserves management practices are used when developing the Electric Utility Financial Plan: Section 1. Definitions a)“Financial Planning Period” – The Financial Planning Period is the range of future fiscal years covered by the Financial Plan. For example, if the Financial Plan delivered in conjunction with the FY 2015 budget includes projections for FY 2015 to FY 2019, FY 2015 to FY 2019 would be the Financial Planning Period. b)“Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers to the Utility’s Unrestricted Net Assets. c)“Net Assets” - The Government Accounting Standards Board defines a Utility’s Net Assets as the difference between its assets and liabilities. d)“Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital assets (net of related debt) or restricted for debt service or other restricted purposes. Section 2. Supply Fund Reserves The Electric Supply Fund Balance is reserved for the following purposes: a)For existing contracts, as described in Section 4 (Reserve for Commitments) b)For operating budgets reappropriated from previous years, as described in Section 5 (Reserve for Reappropriations) c)For special projects for the benefit of the Electric Utility ratepayers, as described in Section 6 (Electric Special Projects Reserve) d)For year to year balancing of costs associated with the Electric Utility’s hydroelectric resources, as described in Section 7 (Hydroelectric Stabilization Reserve) e)For rate stabilization, as described in Section 1.d) (Rate Stabilization Reserves) f)For operating contingencies, as described in Section 12 (Operations Reserves) g)Any funds not included in the other reserves will be considered Unassigned Reserves and shall be returned to ratepayers or assigned a specific purpose as described in Section 13 (Unassigned Reserves). Section 3. Distribution Fund Reserves The Electric Distribution Fund Balance is reserved for the following purposes: a)For existing contracts, as described in Section 4 (Reserves for Commitments) b)For operating and capital budgets reappropriated from previous years, as described in Section 5 (Reserves for Reappropriations) c)As an offset to underground loan receivables, as described in Section 8 (Underground Loan Reserve) d)To hold Public Benefit Program funds collected but not yet spent, as described in Section 9 (Public Benefits Reserve) ELECTRIC UTILITY FINANCIAL PLAN June 16, 2014 44 | Page e) For cash flow management and contingencies related to the Electric Utility’s Capital Improvement Program (CIP), as described in Section 10 (CIP Reserve) f) For rate stabilization, as described in Section 1.d) (Rate Stabilization Reserves) g) For operating contingencies, as described in Section 12 (Operations Reserves) h) Any funds not included in the other reserves will be considered Unassigned Reserves and shall be returned to ratepayers or assigned a specific purpose as described in Section 14 (Unassigned Reserves). Section 4. Reserves for Commitments At the end of each fiscal year the Electric Supply Fund and Electric Distribution Fund Reserves for Commitments will be set to an amount equal to the total remaining spending authority for all contracts in force for the Electric Supply Fund and Electric Distribution Fund, respectively, at that time. Section 5. Reserves for Reappropriations At the end of each fiscal year the Electric Supply Fund and Electric Distribution Fund Reserves for Reappropriations will be set to an amount equal to the amount of all remaining capital and non-capital budgets that will be reappropriated to the following fiscal year for each Fund in accordance with Palo Alto Municipal Code Section 2.28.090. Section 6. Electric Special Projects Reserve The Electric Special Projects Reserve (ESP Reserve) will be managed in accordance with the policies and timelines set forth in Resolution 9206 (Resolution of the Council of the City of Palo Alto Approving Renaming the Calaveras Reserve to the Electric Special Project Reserve and Adoption of Electric Special Project Reserve Guidelines). These policies and timelines are included from Resolution 9206 as amended to refer to the reserves structure set forth in these Reserves Management Practices: a) The purpose of the ESP Reserve is to fund projects that benefit electric ratepayers; b) The ESP Reserve funds must be used for projects of significant impact; c) Projects proposed for funding must demonstrate a need and value to electric ratepayers. The projects must have verifiable value and must not be speculative, or high-risk in nature; d) Projects proposed for funding must be substantial in size, requiring funding of at least $1 million; e) The preferred projects to be funded by the ESP Reserve must be identified by end of FY 2015; f) Any uncommitted funds remaining at the end of FY 2020 will be transferred to the Electric Supply Operations Reserve and the ESP Reserve will be closed; and g) Funds may be used for analysis and pilot projects which would be the basis for planned large projects. Section 7. Hydroelectric Stabilization Reserve Supply cost savings and surplus energy sales revenue associated with higher than average generation from hydroelectric resources may be added to the Electric Supply Fund’s Hydroelectric Stabilization Reserve by action of the City Council and held to offset higher ELECTRIC UTILITY FINANCIAL PLAN June 16, 2014 45 | Page commodity supply costs during years of lower than average generation. Withdrawal of funds from the Hydroelectric Stabilization Reserve requires action by the City Council. Section 8. Underground Loan Reserve At the end of each fiscal year, the Underground Loan Reserve will be adjusted by the principal payments made against outstanding underground loans. Section 9. Public Benefits Reserve The Public Benefits Reserve will be increased by the amount of unspent Public Benefits Revenues remaining at the end of each fiscal year. Expenditure of these funds requires action by the City Council. Section 10. CIP Reserve The CIP Reserve is used to manage cash flow for capital projects and acts as a reserve for capital contingencies. Staff will manage the CIP Reserve according to the following practices: a)The following guideline levels are set forth for the CIP Reserve. These guideline levels are calculated for each fiscal year of the Financial Planning Period based on the levels of CIP expense budgeted for that year. Minimum Level 60 days of budgeted CIP expense Maximum Level 120 days 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 to or removed from the Reserve for Commitments as a result of a change in contractual commitments related to CIP projects. Any other additions to or withdrawals from the CIP reserve require Council action. 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 ELECTRIC UTILITY FINANCIAL PLAN June 16, 2014 46 | Page approve holding funds in this reserve in excess of the maximum level if they are held for a specific future purpose related to the CIP. Section 11. Rate Stabilization Reserves Funds may be added to the Electric Supply or Distribution Fund’s Rate Stabilization Reserves by action of the City Council and held to manage the trajectory of future year rate increases. Withdrawal of funds from either Rate Stabilization Reserve requires action by the City Council. If there are funds in either Rate Stabilization Reserve at the end of any fiscal year, any subsequent Electric Utility Financial Plan must result in the withdrawal of all funds from this Reserve by the end of the Financial Planning Period. Section 12. Operations Reserves The Electric Supply Fund and Electric Distribution Fund Operations Reserves are used to manage normal variations in the costs of providing electric service and as a reserve for contingencies. Any portion of the Electric Utility’s Fund Balance not included in the reserves described in Section 4 to d) above will be included in the appropriate Operations Reserve unless the reserve has reached its maximum level as set forth in Section 12 (e) below. Staff will manage the Operations Reserves according to the following practices: a) The following guideline levels are set forth for the Electric Supply Fund Operations Reserve. These guideline levels are calculated for each fiscal year of the Financial Planning Period based on the levels of Operations and Maintenance (O&M) and commodity expense forecasted for that year in the Financial Plan. Minimum Level 60 days of Supply Fund O&M and commodity expense Target Level 90 days of Supply Fund O&M and commodity expense Maximum Level 120 days of Supply Fund O&M and commodity expense b) The following guideline levels are set forth for the Electric Distribution Fund Operations Reserve. These guideline levels are calculated for each fiscal year of the Financial Planning Period based on the levels of O&M expense forecasted for that year in the Financial Plan. Minimum Level 60 days of Distribution Fund O&M expense Target Level 90 days of Distribution Fund O&M expense Maximum Level 120 days of Distribution Fund O&M expense c) Minimum Level: If, at the end of any fiscal year, the funds remaining in the Supply Fund or Distribution Fund’s Operations Reserve are lower than the minimum level set forth above, staff shall present a plan to the City Council to replenish the reserve. The plan shall be delivered within six months of the end of the fiscal year, and shall, at a minimum, result in the reserve reaching its minimum level by the end of the following fiscal year. For example, if the Operations Reserve is below its minimum level at the end of FY 2014, staff must present a plan by December 31, 2014 to return the reserve to its minimum level by June 30, 2015. In addition, staff may present an alternative plan that takes longer than one year to replenish the reserve. d) Target Level: If, at the end of any fiscal year, either Operations Reserve is higher or lower than the target level, any Financial Plan created for the Electric Utility shall be ELECTRIC UTILITY FINANCIAL PLAN June 16, 2014 47 | Page designed to return both Operations Reserves to their target levels by the end of the forecast period. e)Maximum Level: If, at any time, either Operations Reserve reaches its maximum level, no funds may be added to this Reserve. Any further increase in that fund’s Fund Balance shall be automatically included in the Unassigned Reserve described in Section 13, below. Section 13. Unassigned Reserves If the Operations Reserve in either the Electric Supply Fund or the Electric Distribution Fund reaches its maximum level, any further additions to that fund’s Fund Balance will be held in the Unassigned Reserve. If there are any funds in either Unassigned Reserve at the end of any fiscal year, the next Financial Plan presented to the City Council must include a plan to assign them to a specific purpose or return them to the Electric Utility ratepayers by the end of the first fiscal year of the next Financial Planning Period. For example, if there were funds in the Unassigned Reserves at the end of FY 2016, and the next Financial Planning Period is FY 2017 through FY 2021, the Financial Plan shall include a plan to return or assign the funds in the Unassigned Reserve by the end of FY 2017. Staff may present an alternative plan that retains these funds or returns them over a longer period of time. Section 14. Intra-Utility Transfers between Supply and Distribution Funds Transfers between Electric Distribution Fund Reserves and Electric Supply Fund Reserves are permitted if consistent with the purposes of the two reserves involved in the transfer. Such transfers require action by the City Council. ELECTRIC UTILITY FINANCIAL PLAN June 16, 2014 48 | Page APPENDIX C: DESCRIPTION OF ELECTRIC UTILITY OPERATIONAL ACTIVITIES This appendix describes the activities associated with the various cost categories referred to in this Financial Plan. Customer Service: This category includes the Electric 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 electric services. Resource Management: This category includes supply portfolio management, energy procurement, rate setting, and tracking of legislation and regulation related to the electric industry. Operations and Maintenance: This category includes the costs of a variety of distribution system maintenance activities, including: •monitoring the substations and performing routine maintenance; •performing preventative maintenance on the system; •monitoring the system’s status from the UCC using SCADA; •maintaining the SCADA system; •investigating outages and other customer complaints and performing emergency repairs; •clearing vegetation near overhead power lines; and •testing and replacing meters to ensure accurate sales metering. Administration: Accounting, purchasing, legal, and other administrative functions provided by the City’s General Fund staff, as well as shared communications services, Utilities Department administrative overhead and billing system maintenance costs. Demand Side Management: Includes the cost of administering energy efficiency programs and the direct cost of rebates paid. Includes solar rebates. Engineering (Operating): The Electric Utility’s engineers focus primarily on the CIP, but a small portion of their time is spent assisting with distribution system maintenance. APPENDIX D: SAMPLES OF RECENT ELECTRIC UTILITY OUTREACH COMMUNICATIONS Attachment D Not Yet Approved 170329 jb 6053934 1 Resolution No. ____ Resolution of the Council of the City of Palo Alto Adopting an Electric Rate Increase and Amending Rate Schedules E-1 (Residential Electric Service), E-2 (Small Commercial Electric Service), E-2-G (Small Commercial Green Power Electric Service), E-4 (Medium Commercial Electric Service), E-4-G (Medium Commercial Green Power Electric Service), E-4 TOU (Medium Commercial Time of Use Electric Service), E 7 (Large Commercial Electric Service), E-7-G (Large Commercial Green Power Electric Service), E-7 TOU (Large Commercial Time of Use Electric Service), and E-14 (Street Lights) R E C I T A L S A. 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. The Council of the City of Palo Alto hereby RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-1 (Residential Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-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 E-2 (Small Commercial Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-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 E-2-G (Small Commercial Green Power Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-2-G, 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 E-4 (Medium Commercial Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-4, as amended, shall become effective July 1, 2017. SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-4-G (Medium Commercial Green Power Electric Service) is hereby amended to Not Yet Approved 170329 jb 6053934 2 read as attached and incorporated. Utility Rate Schedule E-4-G, as amended, shall become effective July 1, 2017. SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-4 TOU (Medium Commercial Time of Use Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-4 TOU, as amended, shall become effective July 1, 2017. SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7 (Large Commercial Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-7, as amended, shall become effective July 1, 2017. SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7-G (Large Commercial Green Power Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-7-G, as amended, shall become effective July 1, 2017. SECTION 9. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7 TOU (Large Commercial Time of Use Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-7 TOU, as amended, shall become effective July 1, 2017. SECTION 10. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-14 (Street Lights) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-14, as amended, shall become effective July 1, 2017. SECTION 11. The Council makes the following findings: a.The revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. b.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. c.The adoption of this resolution changing electric 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 Not Yet Approved 170329 jb 6053934 3 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 RESIDENTIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-1-1 dated 7-1-201609 Sheet No E-1-1 A. APPLICABILITY: This schedule applies to separately metered single-family residential dwellings receiving retail energy services from the City of Palo Alto Utilities. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total Tier 1 usage $0.0660588 3 $0.05164795 $0.0039151 $0.1102912159 Tier 2 usage Any usage over Tier 1 0.11253097 28 0.0682207358 0.0039151 0.169001 Minimum Bill ($/day) 0.30672938 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 electricity usage shall be calculated and billed based upon a level of 11 kWh per day, prorated by meter reading days of service. As an example, for a 30-day bill, the Tier 1 level would be 330 kWh. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. {End} ATTACHMENT E RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-2-1 dated 7-1-201609 Sheet No E-2-1 A. APPLICABILITY: This schedule applies to non-demand metered electric service for small non- residentialcommercial customers and master-metered multi-family facilities. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES: Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total Summer Period $0.105910909 4 $0.0740007903 $0.0039151 $0.1684518885 Winter Period 0.0641707520 0.0467705356 0.0039151 0.132671445 Minimum Bill ($/day) 0.7328657 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. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use in both the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-2-2 dated 7-1-201609 Sheet No E-2-2 3.Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a maximum demand meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that if in case the Customer’s load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type demand meter which does not reset after a definite time interval may be used at the City's option. The billing demand to be used in computing charges under this schedule will be the actual maximum demand in kilowatts for the current month. An exception is that the billing demand for customers with Thermal Energy Storage (TES) will be based upon the actual maximum demand of such customers between the hours of noon and 6 pm on weekdays. {End} RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-2-1 dated 7-1-201609 Sheet No E-2-1 RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-2-G-1 dated 7-1-20164 Sheet No E-2-G-1 A. APPLICABILITY: This schedule applies to the following Customers receiving Electric Service from the City of Palo Alto Utilities under the Palo Alto Green Program: 1. Small non-residentialcommercial Customers receiving Non-Demand Metered electric service; and 2. Customers with accounts at Master-metered multi-family facilities. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: 1. 100% Renewable Option: Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Palo Alto Green Charge Total Summer Period $0.10591090 94 $0.07903400 $0.003915 1 $0.0020 $0.170451 9085 Winter Period 0.075206417 0.053564677 0.0035191 0.0020 $0.116451 3467 Minimum Bill ($/day) 0.7328657 2. 1000 kWh Block Purchase Option: Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total Summer Period $0.09094105 91 $0.07903074 00 $0.003915 1 $0.168451 8885 Winter Period 0.064170752 0 0.053564677 0.0039151 0.1144513 467 RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-2-G-2 dated 7-1-20164 Sheet No E-2-G-2 Minimum Bill ($/day) 0.7328657 Palo Alto Green Charge (per 1000 kWh block) $2.00 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. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use in both the Summer and Winter Periods, usage will be prorated based upon the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Palo Alto Green Program Description and Participation Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewable sources, and create a transparent and sustainable market that encourages new development of wind and solar power. Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green Program. RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-2-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-2-G-3 dated 7-1-20164 Sheet No E-2-G-3 4. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a maximum Demand Meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed. The maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month, provided that ifin case the Customer-s load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand Meter which does not reset after a definite time interval may be used at the City's option. The billing Demand to be used in computing charges under this schedule will be the actual maximum Demand in kilowatts for the current month. An exception is that the billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual maximum Demand of such Customers between the hours of noon and 6 pm on weekdays. {End} MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-1 dated 27-51-20136 Sheet No E-4-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Electric Service for customers with a Maximum Demand below 1,000 kilowatts. This schedule applies to three-phase Electric Service and may include Service to master-metered multi-family facilities or other facilities requiring Demand-metered services, as determined by the City. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) $2.533.38 $17.1467 $19.6821.05 Energy Charge (per kWh) 0.0821809526 0.0166101756 0.0035100391 0.1022911673 Winter Period Demand Charge (per kW) $1.9355 $12.4913.43 $14.0415.36 Energy Charge (per kWh) 0.0603706743 0.016610176 0.0035100391 0.0804908890 Minimum Bill ($/day) 16.321614.8414 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. MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-2 dated 27-51-20136 Sheet No E-4-2 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a Maximum Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month, provided that if in case the Customer-s load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter which does not reset after a definite time interval may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such customers between the hours of noon and 6 pm on weekdays. 4. Power Factor For new or existing customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable metering to calculate a Power Factor. The City may remove such metering from the Service of a customer whose Demand has been below 200 kilowatts for four consecutive months. MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-3 dated 27-51-20136 Sheet No E-4-3 When such metering is installed, the monthly Electric bill will include a “Power Factor Adjustment”, if applicable. The adjustment will be applied to a customer’s bill prior to the computation of any primary voltage discount. The Power Factor Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly Power Factor of the customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly Power Factor shall be the Power Factor coincident with the customer's Maximum Demand. 5. Changing Rate Schedules Customers may request a rate schedule change at any time to any City of Palo Alto full- service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile. 6. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered,allowed provided but the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the customer's electrical requirements, as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any customer receiving a the discount in this sectionhereunder and affected by such change. The customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation. 7. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non- MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-4 dated 27-51-20136 Sheet No E-4-4 utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.69 $15.23 $15.92 Winter Period $0.63 $9.04 $9.67 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-5 dated 27-51-20136 Sheet No E-4-5 {End} MEDIUM NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-G-1 dated 7-1-20164 Sheet No E-4-G-1 A. APPLICABILITY: This schedule applies to Demand Metered Secondary Electric Service for Customers with a Maximum Demand below 1,000 kilowatts (kW) who receive power under the Palo Alto Green Program. This schedule applies to three-phase Electric Service and may include Service to Master-metered multi-family facilities or other facilities requiring Demand-Metered Services, as determined by the City. B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: 1. 100% Renewable Option: Commodity Distribution Public Benefits Palo Alto Green Charge Total Summer Period Demand Charge (per kW) $2.533.38 $17.6714 $19.6821.05 Energy Charge (per kWh) 0.0821809526 0.01756661 0.0039151 0.0020 0.118730429 Winter Period Demand Charge (per kW) $1.5593 $12.4913.43 $15.3614.04 Energy Charge (per kWh) 0.0603706743 0.01756661 0.0039151 0.0020 0.090908249 Minimum Bill ($/day) 16.321614.8414 MEDIUM NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-G-2 dated 7-1-20164 Sheet No E-4-G-2 2. 1000 kWh Block Purchase Option: Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) $3.382.53 $17.6714 $21.0519. 68 Energy Charge (per kWh) 0.095268218 0.01756661 0.0039151 0.1167302 29 Palo Alto Green Charge (per 1000 kWh block) $2.00 Winter Period Demand Charge (per kW) $1.9355 $12.4913.43 $15.3614. 04 Energy Charge (per kWh) 0.06743037 0.01756661 0.0039151 0.0889004 9 Palo Alto Green Charge (per 1000 kWh block) $2.00 Minimum Bill ($/day) 14.841416.3216 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. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Maximum Demand Meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the MEDIUM NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-G-3 dated 7-1-20164 Sheet No E-4-G-3 option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month, provided that in case if the Customer’s load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand Meter, which does not reset after a definite time interval, may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays. 4. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable Metering to calculate a Power Factor. The City may remove such Metering from the Service of a Customer whose Demand has dropped below 200 kilowatts for four consecutive months. When such Metering is installed, the monthly Electric bill will include a “Power Factor Adjustment”, if applicable. The adjustment will be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt- hours to kilovolt-ampere hours consumed during the month. Where time-of-day Metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 5. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full-service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile. MEDIUM NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-G-4 dated 7-1-20164 Sheet No E-4-G-4 6. Palo Alto Green Program Description and Participation Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and creates a transparent and sustainable market that encourages new development of wind and solar. Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green Program. 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be offered,allowed provided but the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements, as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a the discount in this sectionhereunder and affected by such change. The Customer then has the option to change the system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation. 8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue Meter and that occasionally require backup power from the City due to non-operation of the non- utility generation source. MEDIUM NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-4-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-G-5 dated 7-1-20164 Sheet No E-4-G-5 b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.69 $15.23 $15.92 Winter Period $0.63 $9.04 $9.67 c. Meters: A separate Meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit: (1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue Meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions: (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-TOU-1 dated 27-51-20136 Sheet No E-4-TOU-1 A. APPLICABILITY: This voluntary rate schedule applies to Demand metered secondary Electric Service for customers with Demand between 500 and 1,000 kilowatts per month and who have sustained this level of usage for at least three consecutive months during the most recent 12 month period. This schedule applies to three-phase Electric Service and may include Service to master- metered multi-family facilities or other facilities requiring Demand-metered services, as determined by the City. In addition, this rate schedule is applicable for customers who did not pay Power Factor Adjustments during the last 12 months. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) Peak $2.121.52 $6.095.91 $8.217.42 Mid-Peak 0.6654 6.095.91 6.7644 Off-Peak 0.6654 6.095.91 6.7644 Energy Charge (per kWh) Peak $0.1014408819 $0.01756661 $0.0039151 $0.122910830 Mid-Peak 0.098358367 0.01756661 0.0039151 0.119820378 Off-Peak 0.087487332 0.01756661 0.0039151 0.1089509344 Winter Period Demand Charge (per kW) Peak $1.070.87 $7.496.96 $8.567.83 Off-Peak 1.070.87 7.496.96 8.567.83 MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-TOU-2 dated 27-51-20136 Sheet No E-4-TOU-2 Commodity Distribution Public Benefits Total Energy Charge (per kWh) Peak $0.0816465 66 $0.01756661 $0.0039151 $0.1031108577 Off-Peak 0.05738616 7 0.01756661 $0.0039151 0.078858178 Minimum Bill ($/day) 16.321614.8414 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. Definition of Time Periods SUMMER PERIOD (Service from May 1 to October 31): Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays) Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays) 6:00 p.m. to 9:00 p.m. Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays WINTER PERIOD (Service from November 1 to April 30): Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays) Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays HOLIDAYS: “Holidays” for the purposes of this rate schedule are New Years Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays are legally observed. MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-TOU-3 dated 27-51-20136 Sheet No E-4-TOU-3 SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein.. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated Time periods as defined under Section D.2. 4. Power Factor Adjustment Time of Use customers must not have had a Power Factor Adjustment assessed on their Service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month, and must not have fallen below 95% to avoid the Power Factor Adjustment. Should the City of Palo Alto Utilities Department find that the Customer’s Service should be subject to Power Factor Adjustments, the Customer will be removed from the E-4- TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. 5. Changing Rate Schedules Customers electing to be served under E-4 TOU must remain on said schedule for a minimum of 12 months. Should the Customer so wish, at the end of 12 months, the Customer may request a rate schedule change to any applicable City of Palo Alto full- service rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. 6. Primary Voltage Discount MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-TOU-4 dated 27-51-20136 Sheet No E-4-TOU-4 Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered,allowed provided but the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements, as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a the discount in this sectionhereunder and affected by such change. The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation. 7. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non- utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.69 $15.23 $15.92 Winter Period $0.63 $9.04 $9.67 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-4 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-4-TOU-5 dated 27-51-20136 Sheet No E-4-TOU-5 cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-1 dated 27-51-20163 Sheet No E-7-1 A. APPLICABILITY: This schedule applies to Demand metered secondary Service for non-residentialcommercial Customers with a Maximum Demand of at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service. C. RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (kW) $3.492.50 $20.3515.85 $23.8418.34 Energy Charge (kWh) 0.093538311 0.0005887 0.0039151 0.098028749 Winter Period Demand Charge (kW) $1.9053 $13.6914.11 $15.5965 Energy Charge (kWh) 0.067395804 0.0005887 0.0039151 0.071886242 Minimum Bill ($/day) 42.364848.5054 D. SPECIAL NOTES: 1. Calculation of Charges 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. LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-2 dated 27-51-20163 Sheet No E-7-2 2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the summer and in the winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Request for Service Qualifying Customers may request Service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Maximum Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month provided that in case if the Customer’s load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter which does not reset after a definite time interval may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 pm on weekdays. LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-3 dated 27-51-20163 Sheet No E-7-3 5. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install applicable metering to calculate a Power Factor. The City may remove such metering from the Service of a Customer whose Demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly Electric bill shall include a “Power Factor Adjustment”, if applicable. The adjustment shall be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 6. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile. 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered,allowed provided but the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements , as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a the discount in this section hereunder and affected by such change. The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation. LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-4 dated 27-51-20163 Sheet No E-7-4 8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non- utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand (as defined in Section D.4) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-5 dated 27-51-20163 Sheet No E-7-5 Section 2827(b)(4) , as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-G-1 dated 7-1-20164 Sheet No E-7-G-1 A. APPLICABILITY: This schedule applies to Demand Metered Service for large non-residentialcommercial Customers who choose Service under the Palo Alto Green Program. A Customer may qualify for this rate schedule if the Customer’s Maximum Demand is at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: 1. 100% Renewable Option: Commodity Distribution Public Benefits Palo Alto Green Charge Total Summer Period Demand Charge ( per kW) $3.492.50 $20.3515.85 $23.8418.34 Energy Charge (per kWh) 0.093538311 0.0005887 0.0039151 0.0020 0.1000208949 Winter Period Demand Charge (per kW) $1.9053 $13.6914.11 $15.5965 Energy Charge (per kWh) 0.067395804 0.0005887 0.0039151 0.0020 0.073886442 Minimum Bill ($/day) 42.364848.5054 LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-G-2 dated 7-1-20164 Sheet No E-7-G-2 2. 1000 kWh Block Purchase Option: Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) $3.492.50 $20.3515.85 $23.8418.34 Energy Charge (per kWh) 0.093538311 0.0005887 0.0039151 0.098028749 Palo Alto Green Charge (per 1000 kWh block) $2.00 Winter Period Demand Charge (per kW) $1.9053 $13.6914.11 $15.5965 Energy Charge (per kWh) 0.067395804 0.0005887 0.0039151 0.071886242 Palo Alto Green Charge (per 1000 kWh block) $2.00 Minimum Bill ($/day) 42.364848.5054 D. SPECIAL NOTES: 1. Calculation of Charges 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. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Maximum Demand Meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-G-3 dated 7-1-20164 Sheet No E-7-G-3 dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month, provided that in case if the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand Meter which does not reset after a definite time interval may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays. 4. Request for Service Qualifying Customers may request Service under this schedule for more than one Account or one Meter if the Accounts are at one site. A site shall be defined as one or more utility Accounts serving contiguous parcels of land with no intervening public right- of-ways (e.g. streets) and have a common billing address. 5. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable Metering to calculate a Power Factor. The City may remove such Metering from the Service of a Customer whose Demand has dropped below 200 kilowatts for four consecutive months. When such Metering is installed, the monthly Electric bill shall include a “Power Factor Adjustment”, if applicable. The adjustment shall be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt- hours to kilovolt-ampere hours consumed during the month. Where time-of-day LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-G-4 dated 7-1-20164 Sheet No E-7-G-4 Metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 6. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile 7. Palo Alto Green Program Description and Participation Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and creates a transparent and sustainable market that encourages new development of wind and solar. Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green Program. 8. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered, butallowed; provided, however, the City is not required to supply Service at a qualified line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's Electrical requirements , as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a the discount in this section hereunder and affected by such change. The Customer then has the option to change the system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation. 9. Standby Charge LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-G-5 dated 7-1-20164 Sheet No E-7-G-5 a. Applicability: The standby charge, subject to the exemptions in subsection D(9)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue Meter and that occasionally require backup power from the City due to non-operation of the non- utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76 c. Meters: A separate Meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit: (1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue Meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions: (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE UTILITY RATE SCHEDULE E-7-G CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No E-7-G-6 dated 7-1-20164 Sheet No E-7-G-6 {End} LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20167 Supersedes Sheet No E-7-TOU-1 dated 72-15-20163 Sheet No E-7-TOU-1 A. APPLICABILITY: This voluntary rate schedule applies to Demand metered secondary Service for non- residentialcommercial customers with a Maximum Demand of at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months. In addition, this rate schedule is applicable for customers who did not pay Power Factor Adjustments during the last 12 months. B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh): Commodity Distribution Public Benefits Total Summer Period Demand Charge (per kW) Peak $2.221.48 $6.845.33 $9.066.80 Mid-Peak 0.6451 6.845.33 7.485.84 Off-Peak 0.6451 6.845.33 7.485.84 Energy Charge (per kWh) Peak $0.1017709267 $0.0005887 $0.0039151 $0.1062609705 Mid-Peak 0.098688792 0.0005887 0.0039151 0.1031609230 Off-Peak 0.087777705 0.0005887 0.0039151 0.092268143 Winter Period Demand Charge (per kW) Peak $0.9678 $6.937.15 $7.892 Off-Peak 0.9678 6.937.15 7.892 Energy Charge (per kWh) Peak $0.080366009 $0.0005887 $0.0039151 $0.084846447 Off-Peak 0.056473 0.0005887 0.0039151 0.0609681 LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20167 Supersedes Sheet No E-7-TOU-2 dated 72-15-20163 Sheet No E-7-TOU-2 Minimum Bill ($/day) 42.364848.5054 D. SPECIAL NOTES: 1. Calculation of Charges 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. Definition of Time Periods SUMMER PERIOD (Service from May 1 to October 31): Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays) Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays) 6:00 p.m. to 9:00 p.m. Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday All day Saturday, Sunday, and holidays WINTER PERIOD (Service from November 1 to April 30): Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays) Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays HOLIDAYS: “Holidays” for the purposes of this rate schedule are New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays are legally observed. SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20167 Supersedes Sheet No E-7-TOU-3 dated 72-15-20163 Sheet No E-7-TOU-3 3. Request for Service Qualifying customers may request Service under this schedule for more than one account or one meter if the accounts are on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated Time periods as defined under Section D.2. 5. Power Factor Adjustment Time of Use customers must not have had a Power Factor Adjustment assessed on their Service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt- ampere hours consumed during the month, and must not have fallen below 95% to avoid the Power Factor Adjustment. Should the City of Palo Alto Utilities Department find that the Customer’s Service should be subject to Power Factor Adjustments, the Customer will be removed from the E-7-TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. 6. Changing Rate Schedules Customers electing to be served under E-7 TOU must remain on said schedule for a minimum of 12 months. Should the Customer so wish, at the end of 12 months, the Customer may request a rate schedule change to any applicable City of Palo Alto full-service rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20167 Supersedes Sheet No E-7-TOU-4 dated 72-15-20163 Sheet No E-7-TOU-4 7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered, butallowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements , as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving a the discount in this section hereunder and affected by such change. The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation. 8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-utility generation source. b. Standby Charges: Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76 c. Meters. A separate meter is required for each non-utility generation source. d. Calculation of Maximum Demand Credit. (1) In the event the Customer’s Maximum Demand occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero. LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-7 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20167 Supersedes Sheet No E-7-TOU-5 dated 72-15-20163 Sheet No E-7-TOU-5 (2) If the non-utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section. e. Exemptions. (1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases. (2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4) , as amended. (3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director. {End} STREET LIGHTS UTILITY RATE SCHEDULE E-14 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20167 Supersedes Sheet No. E-14-2 dated 7-1-200916 Sheet No. E-14-2 A. APPLICABILITY: This schedule applies to all street and highway lighting installations. B. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. C. RATES: Per Lamp Per Month Class A: Utility supplies energy and switching service only. Lamp Rating: High Pressure Sodium Vapor Lamps 100 watts 8.599.66 200 watts 15.8717.83 250 watts 19.5021.92 310 watts 24.1327.12 400 watts 31.0734.92 STREET LIGHTS UTILITY RATE SCHEDULE E-14 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20167 Supersedes Sheet No. E-14-2 dated 7-1-200916 Sheet No. E-14-2 Per Lamp Per Month – Class C: Utility supplies energy and switching service and maintains entire system, including lamps and glassware. Lamp Rating: Mercury-Vapor Lamps 400 watts 32.5834.94 High Pressure Sodium Vapor Lamps 70 watts 28.6130.48 100 watts 30.7932.93 150 watts 34.4337.02 250 watts 41.7045.19 Light Emitting Diode (LED) Lamps 70 watts-equivalent 23.7925.06 100 watts-equivalent 25.4426.91 150 watts-equivalent 26.9628.62 250 watts 31.1233.30 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No. E-14-14 dated 7-1-200916 Sheet No. E-14-14 D. SPECIAL CONDITIONS: 1. Type of Service: This schedule is applicable to series circuit and multiple street lighting systems to which the Utility will deliver current at secondary voltage. Unless otherwise agreed, multiple current will be delivered at 120/240 volts, three-wire, single-phase. In certain localities the Utility may supply service from 120/208 volt star-connected poly-phase lines in place of 240-volt service. Single phase service from 480-volt sources will be available in certain areas at the option of the Utility when this type of service is practical from the Utility's engineering standpoint. All currents and voltages stated herein are nominal, reasonable variations being permitted. New lights will normally be supplied as multiple systems. 2. Point of Delivery: Delivery will be made to the customer's system at a point or at points mutually agreed upon. The Utility will furnish the service connection to one point for each group of lamps, provided the customer has arranged his system for the least practicable number of points of delivery. All underground connections will be made by the customer or at the customer's expense. 3. Switching: Switching will be performed by the Utility (on the Utility's side of points of delivery) and no charge will be made for switching provided there are at least 10 kilowatts of lamp load on each circuit separately switched, including all lamps on the circuit whether served under this schedule or not; otherwise, an extra charge of $2.50 per month will be made for each circuit separately switched unless such switching installation is made for the Utility's convenience or the customer furnishes the switching facilities and, if installed on the Utility's equipment, reimburses the Utility for installing and maintaining them. 4. Annual Burning Schedule: The above rates apply to lamps which will be turned on and off once each night in accordance with a regular burning schedule agreeable to the customer but not exceeding 4,100 hours per year. 5. Maintenance: The rates under Class C include all labor necessary for replacement of glassware and for inspection and cleaning of the same. Maintenance of glassware by the Utility is limited to standard glassware such as is commonly used and manufactured in reasonably large quantities. A suitable charge will be made for maintenance of glassware of a type entailing unusual expense. Under Class C, the rates include maintenance of circuits between lamp posts and of circuits and equipment in and on the posts, provided these are all of good standard construction; otherwise, the Utility may decline to grant Class C rates. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-20176 Supersedes Sheet No. E-14-24 dated 7-1-200916 Sheet No. E-14-24 Class C rates applied to any agency other than the City of Palo Alto also include painting of posts with one coat of good ordinary paint as required to maintain good appearance but do not include replacement of posts broken by traffic accidents or otherwise. 10. . System Owned In-Part by Utility : Where, at customer's request, the Utility installs, owns, and maintains any portion of the lighting fixtures, supports, and/or interconnecting circuits, an extra monthly charge of one and one-fourth percent of the Utility's estimate of additional investment shall be made. 11. Rates For Lamps Not on Schedule: In the event a customer installs a lamp which is not presently represented on this schedule, the Utility will prepare an interim rate reflecting the Utility's estimated costs associated with the specific lamp size. This interim rate will serve as the effective rate for billing purposes until the new lamp rating is added to Schedule E-14. {End} Attachment F *NOT YET APPROVED * 170320 jb 6053929 Resolution No. _________ Resolution of the Council of the City of Palo Alto Approving the FY 2018 Gas 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 Gas Utility Financial Plan. SECTION 2. The Council finds that the adoption of this resolution does not meet the California Environmental Quality Act’s (CEQA) definition of a project under Public Resources / / / / / / / / / / / / *NOT YET APPROVED * 170320 jb 6053929 Code Section 21065, and therefore, no environmental assessment is required. 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 GAS UTILITY FINANCIAL PLAN FY 2018 TO FY 2027 ATTACHMENT G GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 2 | Page GAS UTILITY FINANCIAL PLAN FY 2018 TO FY 2027 TABLE OF CONTENTS Section 1: Definitions and Abbreviations................................................................................ 4 Section 2: Executive Summary and Recommendations ........................................................... 5 Section 2A: Overview of Financial Position .................................................................................. 5 Section 2B: Summary of Proposed Actions .................................................................................. 6 Section 3: Detail of FY 2018 Rate and Reserve Proposals ........................................................ 6 Section 3A: Rate Design ............................................................................................................... 6 Section 3B: Current and Proposed Rates ..................................................................................... 6 Section 3D: Proposed Reserve Transfers ..................................................................................... 8 Section 4: Utility Overview .................................................................................................... 8 Section 4A: Gas Utility History ..................................................................................................... 8 Section 4B: Customer Base ........................................................................................................ 10 Section 4C: Distribution System ................................................................................................. 11 Section 4D: Cost Structure and Revenue Sources ...................................................................... 12 Section 4E: Reserves Structure ................................................................................................... 12 Section 4F: Competitiveness ...................................................................................................... 13 Section 4G: Gas Supply Rates .................................................................................................... 14 Section 5: Utility Financial Projections ................................................................................. 15 Section 5A: Load Forecast .......................................................................................................... 15 Section 5A: FY 2012 to FY 2016 Cost and Revenue Trends ........................................................ 16 Section 5B: FY 2016 Results ....................................................................................................... 17 Section 5C: FY 2017 Projections ................................................................................................. 18 Section 5D: FY 2018-FY 2027 Projections .................................................................................. 18 Section 5E: Risk Assessment and Reserves Adequacy ............................................................... 19 Section 5G: Long-Term Outlook ................................................................................................. 21 GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 3 | Page Section 6: Details and Assumptions ..................................................................................... 22 Section 6A: Gas Purchase Costs ................................................................................................. 22 Section 6B: Operations .............................................................................................................. 23 Section 6C: Capital Improvement Program (CIP) ....................................................................... 24 Section 6D: Debt Service ............................................................................................................ 26 Section 6E: Equity Transfer ........................................................................................................ 27 Section 6F: Revenues ................................................................................................................. 27 Section 6G: Communications Plan ............................................................................................. 28 Appendices ......................................................................................................................... 30 Appendix A: Gas Financial Forecast Detail ................................................................................ 31 Appendix B: Gas Utility Capital Improvement Program (CIP) Detail ......................................... 32 Appendix C: Gas Utility Reserves Management Practices ......................................................... 34 Appendix D: Description of Gas Utility Cost Categories ............................................................ 38 Appendix E: Gas Utility Communications Samples .................................................................... 39 GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 4 | Page SECTION 1: DEFINITIONS AND ABBREVIATIONS ABS: Acrylonitirile butydene styrene, a plastic gas main material CARB: California Air Resources Board CIP: Capital Improvement Program CNG: Compressed Natural Gas CPAU: City of Palo Alto Utilities Department CPUC: California Public Utilities Commission Cross-bore: A cross-bore exists when one utility line has been drilled or “bored” through a portion of another line. Gas cross-bores can occur in sewer lines as a result of “horizontal boring” construction practices. Distribution: transportation of gas to customers. GMR Program: Gas Main Replacement Program Local Transportation: transportation of gas to Palo Alto across PG&E’s distribution system from PG&E City Gate. Malin: a delivery hub referred to in gas purchase contracts and located in Malin, Oregon, where the northern end of PG&E’s Redwood Transmission Pipeline is located. MMBtu: Millions of British thermal units, a unit of gas measurement equal to ten therms. Commonly used for high volume gas measurement. Wholesale purchases of gas from suppliers are typically measured in MMBtu. O&M: Operations and Maintenance PE or HDPE: Polyethylene, a gas main material (more specifically, High-Density Polyethylene) PG&E: Pacific Gas and Electric PG&E Citygate, or Citygate: a delivery hub referred to in gas purchase contracts. Any gas delivered to PG&E’s distribution system (such as gas delivered at the southern end of PG&E’s Redwood Transmission Pipeline) is said to have been delivered at PG&E Citygate. PVC: Polyvinyl chloride, a plastic gas main material Summer: April 1 to October 31 Therms: The standard unit of measurement for natural gas sales to customers, equal to 100,000 British thermal units. Therms measure the heating value of the gas, rather than its volume. Transmission: transportation of gas between major gas delivery hubs via a gas transmission pipeline, such as PG&E’s Redwood pipeline. UAC: Utilities Advisory Commission, an appointed body that advises the City Council on CPAU issues. Winter: November 1 to March 31 GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 5 | Page SECTION 2: EXECUTIVE SUMMARY AND RECOMMENDATIONS This document presents a Financial Plan for the City’s Gas 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 From FY 2018 through FY 2027, non-commodity costs are projected to increase at 3% to 4% per year. In the short term, some of these costs are related to the cross-bore inspection program, as well as cap-and-trade and carbon neutral allowance purchase costs. Capital improvement program (CIP) costs have increased as the economy has improved, and while CPAU plans a new gas main replacement project every year, recent larger than expected bids have required resizing and redesign of some existing plan projects. Because of this, the next new main replacement project will take place in FY 2019. As a result, CIP costs for FY 2017 and 2018 will be lower than normal by around $3.7 million. The Gas Utility expenses over the period of this financial plan are shown in Table 1 below. Table 1: Gas Utility 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 Commodity costs 8,127 13,042 15,437 14,931 15,304 15,584 16,021 16,569 17,227 17,909 18,679 19,235 Operations 17,239 21,687 22,587 22,901 22,559 23,022 24,403 25,292 26,221 27,195 28,222 27,982 Capital Projects 5,017 2,214 2,074 5,725 5,960 6,145 6,335 6,525 6,721 6,923 7,130 7,344 TOTAL 30,384 36,943 40,098 43,557 43,823 44,751 46,759 48,386 50,169 52,027 54,032 54,561 To ensure that revenues cover projected rising costs, the financial plan includes the rate trajectory shown in Table 2. No increase is projected for FY 2018. Table 2: Projected Gas 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 Financial Plan 0% 4% 6% 6% 5% 3% 3% 2% 1% 0% FY 2017 Financial Plan 9% 7% 4% 1% 1% 1% 1% 1% 1% N/A FY 2016 Financial Plan 4% 4% 4% 3% 3% N/A N/A N/A N/A N/A The Gas Rate Stabilization Reserve is used to smooth rate increases over several years. This Financial Plan projects that these reserves will be exhausted by the end of FY 2020. The Gas CIP Reserve can be used to offset one-time unanticipated capital costs. Table 3 shows the projected reserve transfers over the forecast period. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 6 | Page Table 3: Transfers To/(From) Reserves for FY 2017 to FY 2027 ($000) Reserve FY 2017 FY 2018 FY 2019 to FY 2027 Rate Stabilization 0 (1,208) (4,810) Operations 0 1,208 4,810 SECTION 2B: SUMMARY OF PROPOSED ACTIONS Staff proposes the following actions for the Gas Utility in FY 2017: 1. Amend the proposed $5.3 million transfer from the Rate Stabilization Reserve to the Operations Reserve, as proposed in the FY 2017 Gas Financial Plan, to no transfer, based on projected ending Operations Reserve levels. Staff proposes the following actions for the Gas Utility in FY 2018: 2. No distribution rate increase for FY 2018. See Section 3B: Current and Proposed Rates for more details. 3. Transfer $1.2 million from the Rate Stabilization Reserve to the Operations Reserve. See Section 3C: Proposed Reserve Transfers for more details. SECTION 3: DETAIL OF FY 2018 RATE AND RESERVE PROPOSALS SECTION 3A: RATE DESIGN The Gas Utility’s rates are evaluated and implemented in compliance with cost of service requirements. The Gas Utility’s current rates are based on the methodology from the April 2012 Gas Utility Cost of Service Study completed by Utility Financial Solutions1. In preparation for an update to the study, staff discussed a proposed scope with the Utilities Advisory Commission in October 2016, and the Council in November 20162. The updated study is projected to be completed by the end of FY 2017, and will provide guidance for the next proposed rate action, currently slated for FY 2019. SECTION 3B: CURRENT AND PROPOSED RATES On July 1, 2012 CPAU restructured its rates so that the commodity component varied monthly to match changes in gas market prices.3 In addition, monthly service charges were increased to recover the cost of providing gas service to customers. In January 2015, the Council adopted a new rate component to collect the costs of purchasing allowances for the purpose of compliance with the State’s cap-and-trade program4. This component will change depending on the cost of allowances and gas demand. In October 2016, the Council adopted a resolution changing the Local Transportation rate (which had been collapsed into the Distribution rate in 1 Staff Report 2812, 5/17/ 2012 http://archive.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=31395 2 Staff Report 7416 11/14/2016 http://www.cityofpaloalto.org/civicax/filebank/documents/54576 3 Staff Report 2812, 5/17/2012: http://archive.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=31395 4 Staff Report 5397, 1/26/2015: https://www.cityofpaloalto.org/civicax/filebank/documents/45537 GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 7 | Page 2015 to streamline bill presentation), to be a pass-through of PG&E’s Gas Transportation Rate to Wholesale/Resale Customers (G-WSL) charge to Palo Alto.5 This went into effect November 1, 2016. In December 2016, Council approved a carbon neutral gas plan, with a goal of achieving a carbon neutral gas portfolio by FY 2018.6 The plan is for costs associated with the plan to be a passed through directly to customers as well, although the rate impact is not to exceed $0.10 per therm. CPAU has four rate schedules: one for separately metered residential customers (G-1), one for small commercial and master-metered multi-family residential customers (G-2), one for customers using over 250,000 therms per year (G-3) and a specific schedule for the Compressed Natural Gas station (G-10). All customers pay a monthly service charge, which represents meter reading, billing, and other customer service costs, as well as a portion of operations and maintenance cost. All customers are also charged for each therm of gas used. Separately metered residential customers are charged on a tiered basis, differentiated by season. During the winter months, the first 2 therms per day (60 therms for a 30 day billing period) are charged a base price per CCF, and all additional units charged a higher price per therm. During the summer months, the first tier level is 0.667 therms per day, or 20 therms for a 30 day billing period. Commercial customers pay a uniform price for each therm used. Table 4 shows the current monthly service charges for all rate schedules. Table 7 shows the consumption charges related to distribution charges. As mentioned earlier, commodity charges change monthly, and transportation charges are tied to the PG&E G-WSL rate schedule. Three years’ worth of volumetric rate history can be found on Palo Alto’s website.7 Some recent commodity price history is discussed in Section 6A: Gas Purchase Costs. Table 4: Current Monthly Service Charges Rate Schedule Monthly Service Charge ($/month) Current ( as of 7/1/16) G-1 (Residential) $10.32 G-2 (Small Commercial) $78.23 G-3 (Large Commercial) $377.43 G-10 (CNG) $52.93 5 Staff Report 7260 10/17/2016 http://www.cityofpaloalto.org/civicax/filebank/documents/54165 6 Staff Report 7533 12/05/2016 http://www.cityofpaloalto.org/civicax/filebank/documents/54882 7 Monthly Gas Commodity & Volumetric Rates http://www.cityofpaloalto.org/civicax/filebank/documents/30399 GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 8 | Page Table 5: Current Gas Distribution Charges Current ( as of 11/1/16) G-1 (Residential) Tier 1 Rates 0.3933 Tier 2 Rates 0.9319 G-2 (Residential Master-Metered and Small Commercial) Uniform Rate 0.5767 G-3 (Large Commercial) Uniform Rate 0.5687 G-10 (Compressed Natural Gas) Uniform Rate 0.0093 No changes to distribution rates are proposed for FY 2018. SECTION 3C: PROPOSED RESERVE TRANSFERS In the FY 2017 Financial Plan, $5.3 million was proposed to be transferred from the Rate Stabilization Reserve into the Operations Reserve. Lower actual expenses in FY 2016 as well as projected lower expenses in FY 2017 are expected to result in higher ending reserve balances than initially projected, so staff recommends not transferring funds at this time. A tentative transfer of $1.2 million in FY 2018, followed by $4.3 million in FY 2019, is included in the financial projections in this Financial Plan. These will enable CPAU to maintain adequate Operations Reserve levels while moderating the pace of increase in gas rates. The impact of these transfers on reserves levels can be seen in Appendix A: Gas 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: GAS UTILITY HISTORY On September 22, 1917, the City of Palo Alto issued a bond to purchase the property of Palo Alto Gas Company and continue it as a municipal enterprise. At the time, the system comprised 21 miles of mains, 1,900 meters, and was valued at $65,500. PG&E supplied the gas, which was synthesized from coal at its Potrero facility. Almost immediately the City faced challenges. Losses were at nearly 25% according to PG&E’s master meter, and PG&E had filed with the Railroad Commission (the forerunner to today’s Public Utilities Commission) to increase rates GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 9 | Page by nearly 72.5%. Despite these initial hurdles, Palo Alto’s system grew tremendously, and by 1924 revenues had exceeded those of the electric utility. Sales were such that the annual reports of the time noted gas usage “appears to be greater than that of any other city in the state, showing that gas is a very popular form of fuel in Palo Alto.” Just prior to the acquisition of the neighboring town of Mayfield’s gas system (centered around today’s California Avenue) in 1929, the miles of main in service and customers connections had doubled. Notable changes to the gas supply itself came in 1930, when PG&E ceased supplying purely manufactured (or coal) gas from its Potrero Hill facility in San Francisco and instead switched to natural gas. In 1935, a supplementary butane injection system (later retired) was purchased from Standard Oil to mitigate large wintertime peaks. Gas sales were at 248,658 million cubic feet (MCF) with 4,849 active services. Early gas mains in Palo Alto were made of steel, but in the 1950s, like many other utilities, CPAU switched to ABS plastic. CPAU switched to PVC plastic in the early 1970s, but around 100 miles of ABS mains had already been installed. A 1990 evaluation of the system found a steadily increasing rate of gas leaks associated with those mains, something that other gas utilities had also been experiencing. To reduce leaks, CPAU accelerated its main replacement program from 7,000 feet (1.3 miles) of replacements per year to 20,000 feet (3.8 miles) per year. This would enable the utility to replace all of its ABS and its most vulnerable steel and PVC mains with polyethylene (PE) mains over the course of the following 36 years.8 As of 2015 the Gas Utility had replaced approximately 99 miles of ABS, as well as some sections of steel where cathodic protection was not effective. Current main replacement projects will target the last ~800 feet of remaining ABS main as well as tackling PVC replacement. A PVC risk analysis to determine the appropriate footage of annual PVC replacement for future CIP projects is currently being conducted. This is an example of how local control of its Gas Utility has provided Palo Alto residents with substantial benefits. During the 1990s and 2000s, while CPAU was increasing its main replacement rate to ensure a robust gas distribution system, PG&E was underspending on safety-related infrastructure, according to a past audit.9 In the 1990s, while grappling with the issues surrounding its distribution system, CPAU was also participating in major changes to the structure of the gas industry in California. Until 1988 CPAU had a formal policy of setting its rates equal to PG&E’s rates and successfully did so with the exception of one year in the mid-1970s. At times this led to inadequate revenue (1974 to 1981) as PG&E, the City’s only gas supplier, regularly filed requests with the CPUC to increase the wholesale gas supply rates charged to the Gas Utility. In the 1990s, as the CPUC began deregulating the natural gas industry in California, the Gas Utility began purchasing gas from suppliers other than PG&E. In 1997 the CPUC adopted the “Gas Accord,”10 which enabled the Gas Utility (along with other local transportation-only customers) to obtain transmission rights on PG&E’s Redwood transmission pipeline running from Malin, Oregon into California. 8 Staff Report CMR:183:90. Infrastructure Review and Update, March 1, 1990 9 Focused Financial Audit of The Pacific Gas & Electric Company’s Gas Distribution Operations, Overland Consulting, made available through a CPUC Administrative Law Judge’s ruling on A12-11-009/I13-03-007 on 5/31/2013 10 CPUC decision 97-08-055. Since then, the Gas Accord has been amended four times, with the most recent being Gas Accord V, application A.09-09-013 GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 10 | Page In 2000/2001 the California energy crisis occurred, causing major disruptions to the Gas Utility’s supply costs. Wholesale gas prices rose over 500% between January 2000 and January 2001. The Council approved drawing down reserves to provide ratepayer relief and, for two years following the crisis, CPAU rates were above PG&E’s as reserves were replenished. In April 2001 the Council approved a hedging practice of buying fixed price gas one to three years into the future. After reaching a low point in October 2001, prices continued to rise, and as a result the CPAU hedging strategy frequently resulted in a wholesale supply cost advantage compared to PG&E until prices began to decline steeply in mid-2008. At that point the Gas Utility’s wholesale supply costs became higher than market gas prices due to fixed price contracts entered into prior to 2008. As a result the Gas Utility’s wholesale supply costs were higher than PG&E’s for several years. In 2012 Council approved a plan to formally cease the hedging strategy and purchase all gas on the short-term (“spot”) markets. As of July 1, 2012, the commodity portion of the gas rates changes every month based on the spot market gas price. SECTION 4B: CUSTOMER BASE CPAU’s Gas Utility provides natural gas service to the residents, businesses, and other gas customers in Palo Alto. Close to 23,400 customers are connected to the natural gas system, approximately 21,700 (93%) of which are residential and 1,700 (7%) of which are non- residential. Residential customers consume about 10 to 12 million therms of gas per year, roughly 45% of the gas sold, while non-residential customers consume 55% (about 14 to 15 million therms). Residential customers use gas primarily for space heating (46% of gas consumed) and water heating (42%), with the remainder consumed for other purposes such as cooking, clothes drying, and heating pools and spas.11 Non-residential customers use gas for space and water heating (73% of gas consumed), cooking (20%), and industrial processes (6%).12 The Gas Utility receives gas at the four receiving stations within Palo Alto where CPAU’s distribution system connects with Pacific Gas and Electric’s (PG&E’s) system. These receiving stations are jointly operated by CPAU and PG&E. CPAU purchases gas from various natural gas marketers, with PG&E providing only local transportation service (transportation from the PG&E City Gate gas delivery hub to Palo Alto). CPAU also has transmission rights on PG&E’s transmission pipeline from Malin, Oregon to PG&E City Gate, allowing it to purchase lower priced gas at that location. CPAU does not produce or store any natural gas, and purchases gas in the monthly and daily spot markets. The cost of the purchased gas is passed through directly to customers through a rate adjuster that varies monthly with market prices. In a similar fashion, the cost for local transportation has now been tied to PG&E’s G-WSL rate schedule, and varies when and if PG&E changes their rate schedule. The cost of purchased gas and PG&E local transportation service usually account for roughly one third of the utility’s expenditures. 11 http://energyalmanac.ca.gov/naturalgas/overview.html 12 Source: Statewide Commercial End Use Study, California Energy Commission report, 2006. Statistics shown are for end users in PG&E Climate Zone 4 (the Peninsula) where Palo Alto is located. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 11 | Page SECTION 4C: DISTRIBUTION SYSTEM To deliver gas from the receiving stations to its customers, the utility owns 210 miles of gas mains (which transport the gas to various parts of the city) and 23,400 gas services (which connect the gas mains to the customers’ gas lines). These mains and services, along with their associated valves, regulators, and meters, represent the vast majority of the infrastructure used to deliver gas in Palo Alto. CPAU has an ongoing CIP to repair and replace its infrastructure over time, the expense of which normally accounts for around 15 to 20% of the utility’s expenditures. Costs for main replacements have been going up in recent years. In addition to the CIP, the Gas Utility performs a variety of maintenance activities related to the system, such as monitoring the system for leaks, testing and replacing meters, monitoring the condition of steel pipe, and building and replacing gas services for buildings being built or redeveloped throughout the city. The utility also shares the costs of other system-wide operational activities (such as customer service, billing, meter reading, supply planning, energy efficiency, equipment maintenance, and street restoration) with the City’s other utilities. These maintenance and operations expenses, as well as associated administration, debt service, rent, and other costs, make up roughly half of the utility’s expenses. In addition to these ongoing activities, CPAU has conducted a program to find and replace cross-bores over the last several years. Currently, $1 million is budgeted per year for the cross-bore program through FY 2019. However, the ongoing cross-bore investigation may require additional funding, or extend for longer into the future, as the remaining sewer lines are more difficult to examine than the majority of the wastewater collection system that has been examined to date. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 12 | Page Figure 2: Cost Structure (FY 2016) 57%27% 16% Operations Gas Purchases Capital Figure 1: Revenue Structure (FY 2016) 93% 7% Sales of Gas Other Revenue SECTION 4D: COST STRUCTURE AND REVENUE SOURCES As shown in Figure 1, the Gas Utility receives 93% of its revenue from sales of gas and the remainder from capacity and connection fees, interest on reserves, and other sources. Appendix A: Gas Utility Financial Forecast Detail shows more detail on the utility’s cost and revenue structures. As shown in Figure 2, in FY 2016, gas purchase costs accounted for roughly 27% of the Gas Utility’s costs. This percentage can vary widely from year to year, as this cost is based upon market purchases, but now also includes costs related to cap and trade. In FY 2016, Palo Alto received a large transportation rate settlement from PG&E, which lowered costs substantially. This stemmed from the CPUC’s findings related to the San Bruno pipeline explosion. Operational costs represented roughly 57%, and capital investment was responsible for the remaining 16%. CIP is normally about 20% of expenses, but this may be lower in times when projects are deferred, as will happen in FY 2017 and FY 2018. SECTION 4E: RESERVES STRUCTURE CPAU maintains six reserves for its Gas Utility to manage various types of contingencies. These are summarized below, but see Appendix C: Gas 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. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 13 | Page • 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, Water, 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. This type of reserve is used in other utility funds (Electric, Water, and Wastewater Collection) as well. • Operations Reserve: This is the primary contingency reserve for the Gas Utility, and is used to manage yearly variances from budget for operational gas costs. This type of reserve is used in other utility funds (Electric, Water, 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 6 presents winter and summer residential bills for Palo Alto and PG&E at several usage levels for commodity rates in effect as of May 2016 (to illustrate a summer month bill) and March 2017 (to illustrate a winter month bill). The annual gas bill for the median residential customer for calendar year 2016 was $426.72, about 20% lower than the annual bill for a PG&E customer with the same consumption. PG&E’s distribution rates for gas have increased substantially to collect for needed system improvements for pipeline safety and maintenance. The bill calculations for PG&E customers are based on PG&E Climate Zone X, an area which includes the surrounding communities. Table 6: Residential Monthly Natural Gas Bill Comparison ($/month) Season Usage (therms) Palo Alto PG&E Zone X % Difference Winter (March 2017) 30 34.88 41.57 -16% (Median) 54 54.53 74.82 -27% 80 85.50 120.77 -29% 150 180.51 255.05 -29% Summer (May 2016) 10 19.93 17.77 12% (Median) 18 21.94 21.46 2% 30 35.13 41.55 -15% 45 52.91 66.66 -21% Table 7 shows the monthly gas bills for commercial customers for various usage levels for rates in effect as of March, 2017. Bills for CPAU customers at the usage levels shown are around 10% to 33% higher for commercial customers than for PG&E customers. This is a substantial improvement over the calendar year 2013 bill comparison, when commercial gas bills for CPAU GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 14 | Page customers were 27% to 44% higher than for PG&E customers. This is primarily attributable to PG&E’s increased distribution rates as the commodity rates for CPAU and PG&E are very similar, both being based on spot market gas prices. Table 7: Commercial Monthly Average Gas Bill Comparison (for Rates in Effect March, 2017) Usage (therms/mo) Gas Bill ($/month) % Difference Palo Alto PG&E 500 616 545 13% 5,000 5,459 4,957 10% 10,000 10,840 8,856 22% 50,000 53,788 40,453 33% SECTION 4G: GAS SUPPLY RATES Starting in July 2012, CPAU replaced a “laddering” hedging strategy for purchasing gas supplies with a strategy to buy gas on the short-term, or “spot” markets and pass the commodity cost to customers on a monthly basis. The actual commodity prices are shown in Figure 3. As shown, commodity prices have fluctuated by around $0.20 over the last two years, but have generally been lower than prices seen in 2013 and 2014. Figure 3: Gas Commodity Rates from July 2012 through March 2017 GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 15 | Page SECTION 5: UTILITY FINANCIAL PROJECTIONS SECTION 5A: LOAD FORECAST Gas usage in Palo Alto is volatile, varying with both economic and weather conditions. As shown in Figure 4, in the early 1970’s, gas purchases reached over 45 million therms per year. Usage dropped dramatically in the 1976/1977 drought when customers saved significant amounts of (hot) water by upgrading to efficient showerheads. During the 1980s and 90s average gas usage was around 36 million therms per year. Usage dropped again in the early 2000’s. In FY 2001, gas prices escalated during the California energy crisis and Palo Alto’s rates increased by nearly 200%. From 2003 to 2011, usage decreased by 2.3% mainly as a result of continued customer investments in energy efficiency. In 2014 and 2015, unusually warm winters, as well as ongoing drought, caused gas usage to tumble to historic lows. In FY 2017, as the drought has eased and a relatively normal winter has progressed, gas usage has started to increase again. Figure 4: Historic Gas Consumption Gas consumption, as denoted by the dotted line in Figure 5, is projected to recover somewhat and stay stable over the forecast period, although changes such as replacement of gas appliances with electric appliances or customer behavior may result in lower long run usage. As with prior drought/gas usage declines in the past, it is likely that consumption will not come GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 16 | Page back to pre-conservation levels. It is too early to tell, however, where the new ‘normal’ level of consumption will be. Figure 5: Forecast Gas Consumption SECTION 5A: FY 2012 TO FY 2016 COST AND REVENUE TRENDS Figure 6 and Appendix A: Gas 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 gas utility decreased substantially between 2012 and 2016 due to lower gas sales. Market prices for gas supplies are shown in Figure 3 above. FY 2014 and 2015 were notable due to the fact that no new funding was added for main replacement projects, to permit the completion of a backlog of projects which had previously been funded. This allowed for backlogged gas main replacement projects to be started, and used existing capital reserves. Starting in FY 2012, additional funding for gas cross-bore inspections increased Operations costs. Revenues have generally matched expenses in most years. As shown in Figure 6 below, revenues were below cost in FY 2011 and FY 2013 and nearly at cost in FY 2016. The absence of funding for main replacement projects in FY 2014 and FY 2015, as well as the availability of relatively large reserves, forestalled the need for rate increases until now. As shown in Figure 6, the last adjustment to gas distributionrates was in July 2016 when rates were increased by 8%. In FY 2012, commodity rates were changed to a market-based, monthly GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 17 | Page pass-through cost—and commodity rates (and usage) fell, so revenues actually declined in FY 2013 after the rate increase. Figure 6: Gas Utility Expenses, Revenues, and Rate Changes: Actual Costs through FY 2016 and Projections through FY 2027 SECTION 5B: FY 2016 RESULTS Sources of funds for FY 2016 were in line with projections, but expenses related to Purchases and Capital spending came in well below expected budget. Total FY 2016 expenses were $30.4 million compared to projections of $35.9 million in the FY 2017 Financial Plan. Table 8 summarizes the variances from forecast. Table 8: FY 2016, Actual Results vs. Financial Plan Forecast Net Cost/(Benefit) Type of change Purchase costs lower than forecast (1,132,000) Cost savings Operations cost savings and reclass (2,498,000) Cost savings Capital Improvement cost spending (1,872,000) Cost savings Operations cost savings (31,000) Cost savings Net Cost / (Benefit) of Variances $(5,465,000) GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 18 | Page SECTION 5C: FY 2017 PROJECTIONS Current projections indicate that sales revenues will be slightly higher than last year’s forecast. However, a main replacement projected budgeted for this year will not be started until FY 2019. Table 9 summarizes the current and projected variances from FY 2017 Financial Plan. Table 9: FY 2017 Projected Results vs. Financial Plan Forecast Net Cost/ (Benefit) Type of change Sales revenues higher than forecast (984,000) Revenue increase Other revenues and interest higher than forecast (742,000) Revenue increase Operations & maintenance, Customer service and purchase cost increases 617,000 Cost increase Main replacement projects delayed (4,091,000) Cost savings Net Cost / (Benefit) of Variances ($5,200,000) SECTION 5D: FY 2018-FY 2027 PROJECTIONS As can be seen in Figure 6 above, costs for the Gas Utility are projected to rise in FY 2017, then are projected to increase at around 3% per year through FY 2026. In Operations, this is due to an additional continuing $1 million for cross-bore inspections (this expense is projected to continue for at least three years), as well as general inflationary increases of around 2.6% per year. Salaries and benefits expenses are projected to rise at nearly 4% per year, per the City’s Long Range Financial Plan. New CIP main replacement programs are projected to be put on hold until FY 2019. At that point, CIP spending is projected to return to normal levels (around $6 million), then grow at around 2% per year thereafter. Gas commodity costs are the most variable component. At the time the budget was developed in December 2016, gas supply prices were projected to increase by around 3 to 4% per year. Since this is a pass-through cost to customers, the risk of these costs being higher or lower than expected has a minimal impact on reserves. As shown in Figure 7, the Rate Stabilization Reserves are projected to be depleted by FY 2020. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 19 | Page Figure 7: Gas Utility Reserves Actual Reserve Levels for FY 2016 and Projections through FY 2027 SECTION 5E: RISK ASSESSMENT AND RESERVES ADEQUACY The Gas Utility’s primary contingency reserve, the Operations Reserve, is projected to be within guideline levels throughout the forecast period, barring either short-run budget savings and/or larger future increases. Figure 8 shows the Operations Reserve recovering to the target level by FY 2027 with the projected rate trajectory. Figure 8: Operations Reserve Adequacy GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 20 | Page Forecasted Operations Reserve levels also exceed the short-term risk assessment for the Utility. Table 10 summarizes the risk assessment calculation for the Gas 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 distribution sales revenue; and 2. An increase of 10% of planned system improvement CIP expenditures for the budget year. Table 10: Gas Risk Assessment ($000) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total non-commodity revenue $20,465 $21,676 $23,503 $25,557 $27,559 Max. revenue variance, previous ten years 16% 16% 16% 16% 16% Risk of revenue loss $3,282 $3,476 $3,769 $4,098 $4,419 CIP Budget $809 $4,421 $4,617 $4,762 $4,911 CIP Contingency @10% $81 $442 $462 $476 $491 Total Risk Assessment value $3,363 $3,918 $4,231 $4,575 $4,910 Finally, the CIP Reserve was created at the end of FY 2015 to act as a contingency reserve for capital improvement projects. Current guidelines state that the balance of this reserve should fall between 12 and 24 months of budgeted CIP expense. At the end of FY 2016, the sum of the CIP Reserve and existing Commitments was a bit over $10 million, as shown in Figure 7. Based upon FY 2017’s adjusted CIP budget, this is well above the maximum reserve level of $1.97 million. However, the next two years are anomalous in that a main replacement project is not scheduled. As a normal year maximum would be between $9 to $11 million, staff does not recommend reducing the CIP reserve at this time, especially in GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 21 | Page light of the fact that CIP project costs have been increasing. Staff will continue to review this reserve and the appropriateness of the current minimum and maximum guideline levels. SECTION 5F: LONG-TERM OUTLOOK In the longer term (5 to 35 years out) it is very difficult to predict the Gas Utility’s commodity costs. A variety of long-term trends could affect commodity costs either positively or negatively. Continuing improvement in gas extraction technology, such as fracking, could continue to create generous supplies of gas, but these technologies are also under greater scrutiny with respect to their environmental impacts. On the demand side, a continued shift from coal to natural gas for electricity generation or an increase in manufacturing in the U.S. might drive up natural gas prices, but other factors, such as generally more mild winters, might drive gas demand lower. It is also difficult to predict the magnitude of the additional cost impacts associated with the State’s cap-and-trade program over the long term. In the face of this uncertainty, CPAU is able to protect the financial position of the Gas Utility by continuing its current strategy of passing these costs directly to its customers via month-varying rate adjustment mechanisms. The City has recently opted to pursue a policy of purchasing offsets to make gas usage in Palo Alto carbon neutral. The cost is not to exceed $0.10/therm. Future CIP investment needs for the Gas Utility may be lower than in the past, although costs per foot for main replacement have been increasing substantially. The Gas Utility has replaced nearly all of its ABS gas mains and its most problematic steel and PVC mains as well. The PE pipe being used now is expected to have at least a fifty-year lifetime, and there is growing evidence that it may last much longer than that. This would result in lower CIP investment over the long term. CPAU is considering performing a study in the near future to develop its future main replacements priorities and strategy. Long-term state or local climate goals could also have a major impact on the Gas Utility. The Global Warming Solutions Act, Assembly Bill 32 (AB32), set a goal of reducing greenhouse gas (GHG) emissions to 1990 levels by 2020. In its December 2007 Climate Protection Plan, the City set a goal of lowering emissions to 15% below 2005 levels by 2020. As a community Palo Alto achieved these goals in 2012 even with continued use of natural gas for heating, cooking, and industrial processes. However, to achieve the recently adopted Sustainability and Climate Action Plan (S/CAP) goal of an 80% reduction in carbon emissions by 2030, or the State’s adopted goal of an 80% reduction in emissions by 2050 some amount of electrification of gas- using appliances is likely to be necessary. If significant amounts of electrification occurred, stranded investment and higher rates could be required as the costs of the distribution system are recovered over a lower sales base. It is instructional that, in the recent discussion draft of its scoping plan update, CARB says, to meet those goals, natural gas use would have to be “mostly phased out.”13 Staff intends to begin evaluating how to manage potential impacts of these trends over the next few years.. 13 Climate Change Scoping Plan, First fUpdate, Discussion Draft for Public Review and Comment, California Air Resources Board, October 2013, pg 88. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 22 | Page SECTION 6: DETAILS AND ASSUMPTIONS SECTION 6A: GAS PURCHASE COSTS The Gas Utility purchases much of its gas for delivery at Malin, Oregon which is almost always cheaper than delivery at PG&E City Gate, even including the costs of transmission from Malin to City Gate. Gas is purchased on a month-ahead and day-ahead basis in the spot market. The last few years have seen gas prices in a relatively narrow but low band, but prices for the last year have risen somewhat. High levels of natural gas in storage, along with warmer than normal weather on the West coast has kept prices low, as shown in Figure 9. Figure 9: Gas Market Prices at PG&E Citygate Gas commodity costs are expected to increase steadily over the next several years. Figure 10 shows the projected gas prices used to generate this forecast. Projections for transmission costs associated with transporting gas over PG&E’s Redwood transmission pipeline (from Malin, Oregon to the PG&E Citygate) are based on rates adopted in the most recent update to the Gas Accord. Local transportation costs decreased on January 1, 2015 due to the expiration of a temporary adder to PG&E’s local transportation rate,14 but in December 2014 PG&E applied to the CPUC 14 California Public Utilities Commission Advice Letter 3430-G, effective January 1, 2014. Also see CPUC Decision 12-12-30 regarding the Pipeline Safety Enhancement Plan Adder. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 23 | Page to more than double local transportation costs. The application was not settled until late 2016. As these charges are dictated by PG&E and are outside of Palo Alto’s control, staff proposed making these costs pass-through charge, similar to the commodity charge, and this became effective in November, 2016. Figure 10: Wholesale Gas Price Projections SECTION 6B: OPERATIONS Operations costs include the Customer Service, Demand Side Management, Operations and Maintenance (including Engineering), Resource Management, and Administration categories in Figure 11, below. Debt service, rent, and transfers are also included in Operations costs (excluding the General Fund equity transfer). Appendix D: Description of Gas Utility Cost Categories includes detailed descriptions of the activities associated with these cost categories. Operations costs are projected to increase by 2 to 4% per year. Salary and benefits, inflation, and other assumptions match those used in the City’s long-range financial forecast. Operations costs for FY 2017 to FY 2019 include funding for the cross-bore program. In the 1970s CPAU, like many other utilities, adopted horizontal drilling as an alternative to trenching when installing new gas services. This created the possibility of cross-bores, which can happen when a gas service is bored through a sewer lateral. Though cross-bores are very rare, they can create a dangerous situation when a contractor attempts to clear a blocked sewer line, because if the cross-bored gas service is damaged during the line clearing it can result in a gas leak. CPAU has been inspecting new gas services since 2001, and in 2011 began video inspections of the sewer laterals at the location of horizontally-drilled gas services installed before 2001. This inspection program has cost roughly $1 million per year since FY 2012. While a majority of sewer laterals have been inspected, staff has come across several services which are not able to be scoped, either due to infiltration by roots or broken/collapsed pipe segments. Staff has GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 24 | Page included $3 million in additional funding between FY 2017 and FY 2019 for this program, but the program will likely require additional funding in future years to complete. Figure 11: Historical and Projected Operational Costs SECTION 6C: CAPITAL IMPROVEMENT PROGRAM (CIP) The Gas Utility’s CIP program consists of the following programs and budgets: • The Gas Main Replacement Program, under which the Gas Utility replaces aging gas mains • Customer Connections, which covers the cost when the Gas Utility installs new services or upgrades existing services at a customer’s request in response to development or redevelopment. The Gas Utility charges a fee to these customers to cover the cost of these projects. • Ongoing Projects, which covers the cost of routine meter, regulator, and service replacement, minor projects to improve reliability or increase capacity, and other general improvements. • Tools and Equipment, which covers the cost of capitalized equipment, such as directional boring equipment. • One-time Projects, which represents occasional large projects that do not fall into any other category. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 25 | Page Table 11 shows the current status of these project categories and future projected spending. Table 11: Budgeted Gas CIP Spending The Gas Main Replacement (GMR) Program is in the process of reaching a major milestone, the replacement of the last gas mains made from ABS plastic. The program to replace ABS and other low-performing materials in the system started in the 1990s (see Section 4A: Gas Utility History for more detail). CPAU temporarily slowed down its new CIP appropriations in this category in FY 2014 and 2015 in order to finish the last major ABS main replacement project and to catch up on a backlog of projects that has accumulated due to staffing issues. With the replacement of all ABS mains with PE plastic, the material most at risk for failure is removed leaving only PVC plastic, steel (wrapped, with cathodic protection), and PE mains. The next focus of the GMR program will be PVC mains. CPAU is considering updating the Gas System Master Plan to determine which areas of the system to prioritize. The plan will help CPAU determine whether the pace of main replacement (approximately three miles of main each year, or 1.5% of the system) needs to be increased, decreased, or whether it needs to remain the same. The current budgets for gas main replacement might not fully take into account the recent rise in costs for main replacement, which have increased from the levels seen during the recent recession. Several factors may be contributing to this. Economic recovery in the Bay Area, as well as a greater focus on infrastructure improvement by many municipal agencies and utilities could be creating high demand for contractors in these fields. Newer, more leak resistant pipe materials may have ongoing greater costs. CPAU has seen the replacement cost per linear foot increase by 25 to 50% over the last couple of years. Currently CPAU plans to complete as much main replacement as possible within its current budget, provided there are no safety concerns. However, if this trend of higher cost continues, the Gas Utility may require larger CIP budgets, and as a result, larger rate increases. These increases in cost are a partial reason for the two year delay in projects. The most recent project, when put out for bid, resulted in very few contractors competing, and project bids 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. Project Category Current Budget* Spending, Curr. Yr Remain. Budget**Committed FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 One Time Projects 425 (2) 423 109 - - - - - Gas Main Replacement 4,878 (187) 4,691 - - 3,588 3,759 3,878 4,000 Tools And Equipment 146 - 146 20 - 640 - - - Ongoing Projects 254 (140) 114 88 809 833 858 884 911 Customer Connections 232 (660) (428) 159 1,265 1,303 1,342 1,383 1,424 TOTAL 5,935 (988) 4,946 375 2,074 6,365 5,960 6,145 6,335 *Includes unspent funds from previous years carried forward or reappropriated into the current fiscal year **Equal to CIP Reserves (Reserve for Reappropriations + Reserve for Commitments). GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 26 | Page Ongoing Projects, Tools and Equipment, and Customer Connections are projected to cost approximately $0.8 million in FY 2018 and increase by 3% per year through the end of the forecast period. In practice, these projects can fluctuate dramatically depending on system conditions and the pace of development and redevelopment in the city. It is worth noting that the Customer Connections program is paid for through fee revenue, so when costs go up, so does fee revenue. Aside from customer connections and some transfers from other funds, the CIP plan for FY 2018 to FY 2022 is funded by utility rates. The details of the plan are shown in Appendix B: Gas Utility Capital Improvement Program (CIP) Detail. SECTION 6D: DEBT SERVICE The Gas Utility currently makes debt service payments on one bond issuance, the 2011 Series A Utility Revenue Refunding Bonds. This bond issuance was to refinance the $18 million principal remaining on the Utility Revenue Bonds, 2002 Series A issued for the Gas and Water Utilities to finance various improvements to the distribution systems. $9.4 million of this issuance was secured by the net revenues of the Gas Utility. Debt service for this bond for the financial forecast period is shown in Table 12. Debt service on this bond will continue through 2026. Table 12: Gas Utility Debt Service FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 2011 Utility Revenue Refunding Bonds, Series A 803 802 800 800 802 804 805 803 800 803 The 2011 bonds include two covenants stating that 1) the Gas Utility will maintain a debt coverage ratio of 125% of debt service, and 2) that the City will maintain “Available Reserves”15 equal to five times the annual debt service. The current financial plan complies with these covenants throughout the forecast period, as shown in Table 13 and Table 14. Table 13: Debt Service Coverage Ratio ($000) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Revenues 36,643 38,225 39,175 41,695 44,306 46,879 49,025 50,992 52,835 54,530 Expenses (Excluding CIP and Debt Service) (33,926) (37,223) (37,033) (37,063) (37,804) (39,621) (41,057) (42,646) (44,305) (46,100) Net Revenues 2,717 1,002 2,142 4,632 6,502 7,258 7,968 8,346 8,530 8,430 Debt Service 803 802 800 800 802 804 805 803 800 803 Coverage Ratio 338% 125% 268% 579% 811% 903% 990% 1039% 1039% 1039% 15 Available Reserves as defined in the 2011 bonds include the reserves for the Water, Electric, and Gas Utilities GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 27 | Page Table 14: Debt Service Minimum Reserves ($000) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Gas Utilitya 19711 17838 13456 11328 10883 11003 11642 12465 13273 14588 Debt Serviceb 803 804 803 802 801 801 802 803 800 803 Reserves Ratioc 25x 22x 17x 14x 14x 14x 15x 16x 16x 16x a) CIP, Rate Stabilization, Operations, and Unassigned Reserves b) Gas Utility’s share of the debt service on the 2011 bonds. c) Calculated using only Gas Utility reserves. The actual reserves ratio for the 2011 bonds is calculated based on the combined Electric, Gas, and Water Utility reserves and debt service and is higher than shown here. The Gas Utility’s reserves and net revenue are also pledged as security for the bond issuances listed in Table 15, even though the Gas Utility is not responsible for the debt service payments. The Gas 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. Table 15: Other Issuances Secured by Gas Utility’s Revenues or Reserves Bond Issuance Responsible Utilities Annual Debt Service ($000) Secured by Gas Utility’s: Net Revenues Reserves 1995 Series A Utility Revenue Bonds Storm Drain $680 Yes No 1999 Utility Revenue Bonds, Series A Wastewater Collection Wastewater Treatment Storm Drain $1,207 No Yes 2009 Water Revenue Bonds (Build America Bonds) Water $1,977* No Yes *Net of Federal interest subsidy SECTION 6E: EQUITY TRANSFER The City calculates the equity transfer from its Gas Utility based on a methodology adopted by Council in 2009 that has remained unchanged since16. Each year it is calculated according to the 2009 Council-adopted methodology, and does not require additional Council action. SECTION 6F: REVENUES The Gas Fund receives most of its revenues from sales of gas, but about 8% comes from other sources. The largest of these comes from service connection and capacity fees, followed closely by sales of allowances related to California’s cap-and-trade program. Another revenue item related to the cap-and-trade program is collected in customers’ bills. While the State provides CPAU with a certain number of free allowances each year, the Gas Utility is required to sell a portion of those in accordance with the regulations. In order to have enough allowances to 16 For more detail on the ordinance adopting the 2009 transfer methodology, see CMR 280:09, Budget Adoption Ordinance for Fiscal Years 2009 and 2010; and CMR 260:09, Finance Committee Report explaining proposed changes to equity transfer methodology. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 28 | Page cover customers’ natural gas emissions, CPAU must buy allowances at market, and subsequently passes through the cost of those allowances to customers. The regulations do not allow the revenue derived from the sale of the free allowances to offset allowance purchases, thus the pass-through rate component. Sales revenue projections are based on the load forecast in Section 5A: Load Forecast. Except where stated otherwise, these load forecasts are based on normal weather. Weather can vary substantially, however, and this can affect revenues substantially. Also, changes in customer behavior, as well as changes to more efficient gas appliances, or switching to electric appliances, will modify these forecasts. Forecasts are continually evaluated to see when new trends emerge. SECTION 6G: COMMUNICATIONS PLAN The FY 2018 communications strategy covers four primary areas: operations, infrastructure, safety, efficiency, renewables and rates. Since moving to market pricing for commodity rates, changes to the commodity rates are posted monthly on the City’s website. Gas use efficiency incentives are promoted year-round, but most heavily during winter months to impact heating activities. Promotional methods include community outreach events, print ads in local publications, utility bill inserts, messaging on the bills and envelopes, website pages, email blasts, videos for the web and local Comcast channels, Home Energy Reports and the use of social media. To keep customers apprised of the status and accomplishments of capital improvement projects, a network of project web pages are maintained. Traffic is driven to the website via print and digital ads, social media and email blasts. Safety topics are emphasized year-round. CPAU is engaging in several campaigns and programs in FY 2018 to promote gas utility efficiency and renewable energy. The Georgetown University Energy Prize competition is a friendly, national campaign to encourage communities to reduce energy use. Energy savings from reduced gas and electric consumption qualify to help Palo Alto compete for a $5 million prize at the end of a two-year campaign. Since adoption of a carbon neutral electric supply portfolio, CPAU launched a new voluntary renewable natural gas carbon offsets program, PaloAltoGreen Gas. Much of our programmatic promotional activity will center around customer education and encouragement to sign up for participation in PaloAltoGreen Gas. Other new programs include home efficiency services and online tools to help customers manage their energy use. Stepping up efforts to promote gas safety education, staff is focusing outreach around youth, the importance of calling USA (811) before digging for anyone who may excavate in and around Palo Alto, such as plumbers and contractors, potential sewer and gas line cross-bores, keeping fats, oils and greases out of drains, and ensuring clear access to meters. For younger “customers-to-be,” CPAU created a Home Safety Detective campaign that includes special tool kits to help them identify home safety problems. Staff provides safety kits to youth and adults at school presentations, neighborhood safety and emergency preparedness fairs and other community outreach events. Meter access awareness is highlighted through use of materials GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 29 | Page featuring photos of some unusual ways people obstruct access to their meters, including using them as bike racks and building storage sheds around them. CPAU will continue to promote safety, infrastructure, operations, efficiency and rate adjustment messages through a variety of marketing and media channels. Every year, CPAU publishes an updated gas safety awareness brochure which is mailed to all customers in Palo Alto, as well as plumbers, contractors and excavators that may work in and around the area. Staff talks with business customers at special facilities meetings, attends neighborhood safety and emergency preparedness fairs and offers presentations to school and community groups. While print materials and website pages still feature prominently, CPAU is turning the outreach emphasis to direct mail, newspaper inserts, social media, online videos and cable TV. Copies of all outreach materials and logs of activities are saved in the Gas Safety Public Awareness Plan that is reviewed at least once per year by the Department of Transportation. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 30 | Page APPENDICES Appendix A: Gas Financial Forecast Detail Appendix B: Gas Utility Capital Improvement Program (CIP) Detail Appendix C: Gas Utility Reserves Management Practices Appendix D: Description of Gas Utility Cost Categories Appendix E: Gas Utility Communications Samples GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 31 | Page APPENDIX A: GAS FINANCIAL FORECAST DETAIL ($'000) Actual Actual Actual Actual Actual 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 RATE CHANGE (%)*0%12%0%0%0%8%0%4%6%6%5%3%3%2%1%0% 2 SALES IN THOUSAND THERMS 30,447 28,901 28,117 28,881 26,719 27,829 27,434 27,463 27,623 27,546 27,482 27,432 27,394 27,450 27,510 27,541 3 4 Utilities Retail Sales 41,034 33,759 34,843 29,515 28,065 33,243 33,852 34,339 36,422 38,683 40,918 42,694 44,275 45,736 46,948 47,566 5 Service Connection & Capacity Fees 592 731 654 602 961 1,017 1,048 1,079 1,111 1,145 1,179 1,179 1,179 1,179 1,179 1,179 6 Other Revenues & Transfers In 103 830 313 415 873 1,857 2,965 3,395 3,906 4,251 4,573 4,916 5,266 5,623 6,081 6,043 7 Interest plus Gain or Loss on Investment 1,119 (239)706 450 730 526 361 362 256 227 209 237 272 297 322 338 8 Total Sources of Funds 42,847 35,081 36,517 30,982 30,629 36,643 38,225 39,175 41,695 44,306 46,879 49,025 50,992 52,835 54,530 55,126 9 10 Purchases of Utilities: 11 Supply Commodity 15,356 12,461 12,992 9,537 9,178 10,098 12,106 11,487 11,805 12,097 12,495 13,001 13,616 14,254 14,980 15,468 12 Supply Transportation 879 994 1,333 982 (1,051)2,944 3,331 3,444 3,499 3,487 3,526 3,568 3,611 3,655 3,699 3,767 13 Total Purchases 16,235 13,455 14,325 10,519 8,127 13,042 15,437 14,931 15,304 15,584 16,021 16,569 17,227 17,909 18,679 19,235 14 15 Administration (CIP + Operating)3,473 4,273 3,988 4,007 3,337 3,064 3,147 3,232 3,319 3,408 3,500 3,594 3,691 3,790 3,892 3,997 16 Customer Service 1,270 1,358 1,338 1,195 1,097 1,584 1,644 1,705 1,767 1,830 1,896 1,964 2,034 2,107 2,183 2,261 17 Demand Side Management 614 630 438 632 566 1,471 1,512 1,554 1,597 1,641 1,686 1,732 1,780 1,828 1,879 1,930 18 Engineering (Operating)333 340 352 369 426 529 547 565 584 604 623 644 665 687 710 733 19 Operations and Maintenance 5,032 4,940 4,119 4,403 4,153 5,980 6,189 6,398 5,613 5,807 6,007 6,215 6,429 6,652 6,882 7,120 20 Resource Management 729 506 516 556 472 724 748 772 798 823 850 877 905 934 965 996 21 Debt Service Payments 406 296 805 804 249 803 802 800 800 802 803 804 802 799 802 - 22 Rent 230 219 419 431 443 455 467 480 492 505 519 532 546 561 574 587 23 Transfers to General Fund 6,006 5,971 5,811 5,730 6,194 6,594 7,035 6,888 7,069 7,069 7,974 8,370 8,794 9,248 9,734 9,739 24 Other Transfers Out 170 207 606 151 303 484 496 508 520 533 546 560 573 587 602 617 25 Capital Improvement Programs 7,821 7,620 1,026 1,832 5,017 2,214 2,074 5,725 5,960 6,145 6,335 6,525 6,721 6,923 7,130 7,344 26 Total Uses of Funds 42,320 39,814 33,743 30,629 30,384 36,943 40,098 43,557 43,823 44,751 46,759 48,386 50,169 52,027 54,032 54,561 27 28 Into/ (Out of) Reserves 528 (4,733)2,773 353 245 (300)(1,874)(4,382)(2,127)(446)120 639 823 808 499 565 29 30 Reappropriations + Commitments 19,211 19,363 11,305 6,491 6,255 6,255 6,255 6,255 6,255 6,255 6,255 6,255 6,255 6,255 6,255 6,255 31 Plant Replacement 1,000 1,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 32 CIP Reserve 0 0 0 1,591 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 33 Rate Stabilization 15,992 11,318 15,981 7,215 6,018 6,018 4,810 524 0 0 0 0 0 0 0 0 34 Operations Reserve 0 0 0 10,847 10,296 9,873 9,208 9,112 7,508 7,063 7,183 7,822 8,645 9,453 10,768 11,333 35 Unassigned 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 36 Total Reserves 36,203 31,681 27,286 26,144 26,389 25,966 24,093 19,711 17,583 17,138 17,258 17,897 18,720 19,528 20,843 21,409 37 (1,142)245 (423)(1,874)(4,382)(2,127)(446)120 639 823 808 1,315 566 38 Short Term Risk Assessment Value 1,226 3,753 3,560 3,363 3,918 4,231 4,575 4,910 5,144 5,340 5,510 5,635 5,659 39 40 Operations Reserve Guidelines 41 Min (60 Days Commodity + O&M) 5,620 5,000 5,821 6,139 6,074 6,039 6,136 6,412 6,622 6,856 7,100 7,357 7,425 42 Target (90 Days Commodity + O&M) 8,429 7,500 8,731 9,208 9,112 9,058 9,204 9,618 9,933 10,284 10,650 11,036 11,137 43 Max (120 Days Commodity + O&M) 11,239 10,000 11,641 12,277 12,149 12,077 12,272 12,824 13,244 13,712 14,201 14,715 14,849 44 City of Palo Alto Gas Utility Fiscal Year GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 32 | Page APPENDIX B: GAS UTILITY CAPITAL IMPROVEMENT PROGRAM (CIP) DETAIL 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 ONE TIME PROJECTS GS-10000 Gas Station 3 Rebuild - - - - - - - - - - - GS-15001 Security at Receiving Stations 275,000 - 150,000 (1,563) 423,437 109,174 - - - - - Subtotal, One-time Projects 275,000 - 150,000 (1,563) 423,437 109,174 - - - - - GAS MAIN REPLACEMENT (GMR) PROGRAM GS-09002 GMR - Project 19 - - - - - - - - - - - GS-10001 GMR - Project 20 - - - - - - - - - - - GS-11000 GMR - Project 21 100,000 - (100,000) - - - - - - - - GS-12001 GMR - Project 22 3,571,560 - 3,000 (144,495) 3,430,065 - - - - - - GS-13001 GMR - Project 23 620,650 3,010,000 (2,967,500) (42,500) 620,650 - - 3,588,150 - - - GS-14003 GMR - Project 24 - 640,000 - - 640,000 - - - 3,100,000 - - GS-15000 GMR - Project 25 - - - - - - - - 659,000 3,200,000 - GS-16000 GMR - Project 26 - - - - - - - - - 678,200 3,300,000 GS-20000 GMR - Project 27 - - - - - - - - - - 700,000 GS-20001 GMR - Project 28 - - - - - - - - - - - Subtotal, Gas Main Replacement Program 4,292,210 3,650,000 (3,064,500) (186,995) 4,690,715 - - 3,588,150 3,759,000 3,878,200 4,000,000 TOOLS AND EQUIPMENT GS-13002 General Shop Equipment/Tools 70,106 100,000 (170,106) - - - - - - - - GS-01019 Global Positioning System - - - - - - - - - - - GS-03008 Polyethylene Fusion Equip.- - - - - - - - - - - GS-14004 Gas Distribution System Model 126,365 - 19,574 - 145,939 19,574 - 640,000 - - - Subtotal, Tools and Equipment 196,471 100,000 (150,532) - 145,939 19,574 - 640,000 - - - GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 33 | Page Gas 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 GS-11002 Gas System Improvements 202,373 231,913 (173,254) (77,393) 183,639 87,771 238,870 246,036 253,417 261,020 268,851 GS-03009 System Ext. - Unreimbursed 128,690 198,500 (334,679) (62,123) (69,612) - 204,455 210,590 216,908 223,415 230,117 GS-80019 Gas Meters and Regulators 304,927 355,030 (659,957) - - - 365,681 376,652 387,952 399,591 411,579 Subtotal, Ongoing Projects 635,990 785,443 (1,167,890) (139,516) 114,027 87,771 809,006 833,278 858,277 884,026 910,547 CUSTOMER CONNECTIONS (FEE FUNDED) GS-80017 Gas System Extensions 213,712 1,228,500 (1,209,764) (660,368) (427,920) 158,819 1,265,355 1,303,315 1,342,415 1,382,688 1,424,169 Subtotal, Customer Connections 213,712 1,228,500 (1,209,764) (660,368) (427,920) 158,819 1,265,355 1,303,315 1,342,415 1,382,688 1,424,169 GRAND TOTAL 5,613,383 5,763,943 (5,442,686) (988,442) 4,946,198 375,338 2,074,361 6,364,743 5,959,692 6,144,914 6,334,716 Funding Sources Connection Fees 1,017,000 (1,209,764) 1,047,510 1,078,935 1,111,303 1,144,642 1,178,981 Utility Rates 4,746,943 (4,232,922) 1,026,851 5,285,808 4,848,389 5,000,272 5,155,735 CIP-RELATED RESERVES DETAIL 6/30/2016 (Actual) 6/30/2017 (Unaudited) Reappropriations 5,345,914 4,570,860 Commitments 267,469 375,338 GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 34 | Page APPENDIX C: GAS UTILITY RESERVES MANAGEMENT PRACTICES The following reserves management practices shall be used when developing the Gas Utility Financial Plan: Section 1. Definitions a) “Financial Planning Period” – The Financial Planning Period is the range of future fiscal years covered by the Financial Plan. For example, if the Financial Plan delivered in conjunction with the FY 2015 budget includes projections for FY 2015 to FY 2019, FY 2015 to FY 2019 would be the Financial Planning Period. b) “Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers to the Utility’s Unrestricted Net Assets. c) “Net Assets” - The Government Accounting Standards Board defines a Utility’s Net Assets as the difference between its assets and liabilities. d) “Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital assets (net of related debt) or restricted for debt service or other restricted purposes. Section 2. Supply Fund Reserves The Gas Utility’s Supply Fund Balance is reserved for the following purposes: a) For existing contracts, as described in Section 4 (Reserve for Commitments) b) For operating and capital budgets re-appropriated from previous years, as described in Section 5 (Reserve for Re-appropriations) Section 3. Distribution Fund Reserves a) For existing contracts, as described in Section 4 (Reserve for Commitments) b) For operating and capital budgets re-appropriated from previous years, as described in Section 5 (Reserve for Re-appropriations) c) For cash flow management and contingencies related to the Gas Utility’s Capital Improvement Program (CIP), as described in Section 6 (CIP Reserve) d) For rate stabilization, as described in Section 7 (Rate Stabilization Reserve) e) For operating contingencies, as described in Section 8 (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 9 (Unassigned Reserves) Section 4. Reserve for Commitments At the end of each fiscal year the Gas Supply Fund and Gas Distribution Fund Reserve for Commitments will be set to an amount equal to the total remaining spending authority for all contracts in force for the Wastewater Collection Utility at that time. Section 5. Reserve for Reappropriations At the end of each fiscal year the Gas Supply Fund and Gas Distribution Fund Reserve for Reappropriations will be set to an amount equal to the amount of all remaining capital and GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 35 | Page non-capital budgets, if any, that will be re-appropriated to the following fiscal year for each fund in accordance with Palo Alto Municipal Code Section 2.28.090. Section 6. 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 to or removed from the Reserve for Commitments as a result of a change in contractual commitments related to CIP projects. Any other additions to or withdrawals from the CIP reserve require Council action. 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 Council approval to hold funds in this reserve in excess of the maximum level, if they are held for a specific future purpose related to the CIP. Section 7. 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 Gas Utility Financial Plan must result in the withdrawal of all funds from this Reserve by the end of the Financial Planning Period. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 36 | Page Section 8. Operations Reserve The Operations Reserve is used to manage normal variations in costs and as a reserve for contingencies. Any portion of the Gas Utility’s Fund Balance not included in the reserves described in Section 4-Section 7 above will be included in the Operations Reserve unless this reserve has reached its maximum level as set forth in Section 8 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 Gas Utility shall be designed to return the Operations Reserve to its target level by the end of the forecast period. 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 Gas Utility’s Fund Balance shall be automatically included in the Unassigned Reserve described in Section 9, below. Section 9. Unassigned Reserve If the Operations Reserve reaches its maximum level, any further additions to the Gas 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 Gas 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 2020, 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. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 37 | Page Section 10. Intra-Utility Transfers Between Supply and Distribution Funds The Gas Utility records costs in two separate funds: the Gas Supply Fund and the Gas Distribution Fund. At the end of each fiscal year staff is authorized to transfer an amount equal to the difference between Gas Supply Fund costs and Gas Supply Fund Revenues from the Gas Distribution Fund Operations Reserve to the Gas Supply Fund, or vice versa. Such transfers shall be included in the ordinance closing the budget for the fiscal year. GAS UTILITY FINANCIAL PLAN April 1 2 , 2016 38 | Page APPENDIX D: DESCRIPTION OF GAS UTILITY COST CATEGORIES This appendix describes the activities associated with the various cost categories referred to in this Financial Plan. Customer Service: This category includes the Gas 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 gas services. Resource Management: This category includes gas procurement, contract management, rate setting, and tracking of legislation and regulation related to the gas industry. Operations and Maintenance: This category includes the costs of a variety of distribution system maintenance activities, including: • surveying the gas system (50% of the system each year) and repairing any leaks found; • investigating reports of damaged mains or services and perform emergency repairs; • building and replacing gas 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 pipes 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, including certified gas line welding services) Administration: Accounting, purchasing, legal, and other administrative functions provided by the City’s General Fund staff, as well as shared communications services and Utilities Department administrative overhead and billing system maintenance costs. Demand Side Management: Includes the cost of administering gas efficiency programs and the direct cost of rebates paid. Engineering (Operating): The Gas Utility’s engineers focus primarily on the CIP, but a small portion of their time is spent assisting with distribution system maintenance. APPENDIX E: GAS UTILITY COMMUNICATIONS SAMPLES Attachment H * NOT YET APPROVED * 170221 jb 6053915 Resolution No. ____ Resolution of the Council of the City of Palo Alto Approving the FY 2018 Wastewater Collection Utility Financial Plan R E C I T A L S A.Each year the City of Palo Alto (“City”) 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 a part of the Financial Plans. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby approves the FY 2018 Wastewater Collection Utility Financial Plan. SECTION 2. 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 / / / / / / / / / / / / * NOT YET APPROVED * 170221 jb 6053915 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 WASTEWATER COLLECTION UTILITY FINANCIAL PLAN FY 2018 TO FY 2027 ATTACHMENT I WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 2 | Page FY 2018 WASTEWATER COLLECTION 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 3D: Proposed Reserve Transfers ..................................................................................... 6 Section 4: Utility Overview .................................................................................................... 7 Section 4A: Wastewater Utility History ....................................................................................... 7 Section 4B: customer base ........................................................................................................... 8 Section 4C: Collection System ...................................................................................................... 8 Section 4D: Cost Structure and Revenue Sources ........................................................................ 9 Section 4E: Reserves Structure ..................................................................................................... 9 Section 4F: Competitiveness ...................................................................................................... 10 Section 5: Utility Financial Projections ................................................................................. 11 Section 5A: FY 2012 to FY 2016 Cost and Revenue Trends ........................................................ 11 Section 5B: FY 2016 Results ....................................................................................................... 12 Section 5C: FY 2017 Projections ................................................................................................. 13 Section 5D: FY 2018 – FY 2027 Projections ................................................................................ 13 Section 5E: Risk Assessment and Reserves Adequacy ............................................................... 14 Section 5F: Alternate Scenarios ................................................................................................. 16 WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 3 | Page Section 5G: Long-Term Outlook ................................................................................................. 16 Section 6: Details and Assumptions ..................................................................................... 16 Section 6A: Wastewater Treatment Costs ................................................................................. 16 Section 6B: Operations .............................................................................................................. 17 Section 6C: Capital Improvement Program (CIP) ....................................................................... 17 Section 6D: Debt Service ............................................................................................................ 19 Section 6E: Other Revenues ....................................................................................................... 20 Section 7: Communications Plan .......................................................................................... 20 Appendices ......................................................................................................................... 22 Appendix A: Wastewater Collection Financial Forecast Detail .................................................. 23 Appendix B: Wastewater Collection Utility Capital Improvement Program (CIP) Detail .......... 24 Appendix C: Wastewater Collection Utility Reserves Management Practices .......................... 25 Appendix D: Sample of Wastewater Collection Outreach Materials......................................... 28 WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 4 | Page SECTION 1: DEFINITIONS AND ABBREVIATIONS CCF The standard unit of measurement for water delivered to water customers, equal to one hundred cubic feet, or roughly 748 gallons. When water usage is used to assess wastewater charges for commercial customers, it is measured in CCF. CIP Capital Improvement Program CPAU City of Palo Alto Utilities Department FOG Fats, oils, and grease. When flushed into the sewer system, these materials accumulate in parts of the sewer system and create blockages. O&M Operations and Maintenance RWQCP Regional Water Quality Control Plant, the wastewater treatment plant owned and operated by the City of Palo Alto that serves Palo Alto and several surrounding communities. UAC Utilities Advisory Commission SECTION 2: EXECUTIVE SUMMARY AND RECOMMENDATIONS This document presents a Financial Plan for the City of Palo Alto’s Wastewater Collection Utility for the next ten years. The 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 Wastewater Collection Utility are expected to rise by about 6% per year from fiscal year (FY) 2017 to FY 2027. Excluding FY 2018 (which, unlike a normal year, does not include a sewer main replacement project), wastewater treatment and CIP costs are projected to rise by five to six percent annually through the projection period, with other costs rising at roughly three percent per year. The costs for the Wastewater Collection Utility are shown in Table 1 below. Table 1: Expenses for FY 2016 to FY 2027 Expenses ($000) FY 2016 (act.) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Treatment Costs 8,770 9,855 9,932 10,298 11,088 11,885 12,293 13,001 14,056 14,928 15,407 15,901 Operations 5,429 6,142 6,342 6,142 6,349 6,561 6,779 7,250 7,354 7,594 7,842 8,099 Capital Projects 4,985 971 1,338 5,218 5,033 5,207 5,336 5,495 5,658 5,827 6,000 6,178 TOTAL 19,184 16,968 17,613 21,659 22,470 23,652 24,408 25,746 27,069 28,348 29,249 30,178 The short term reduction in CIP expenses will result in higher revenues than expenses, and the Rate Stabilization Reserve will be drawn down over a longer time frame than projected in last WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 5 | Page year’s financial plan. Going forward, to ensure that revenues cover rising costs and reserves remain healthy, the financial plan includes the rate trajectory shown in Table 2. 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 sewer main replacement projects resulted in an increase in reserves, which enabled the more gradual increases projected in the current plan. Table 2: Projected Wastewater Collection Rate Trajectory for FY 2018 to FY 2026 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Current Plan 0% 7% 7% 7% 7% 7% 5% 5% 4% 3% FY 2017 Plan 10% 9% 7% 6% 4% 4% 4% 4% 4% N/A The Wastewater Collection Utility has a small balance in its Rate Stabilization Reserve. This reserve is used to phase in rate increases over several years. The FY 2017 Financial Plan proposed a $342,000 transfer from the Rate Stabilization Reserve, but in the proposed FY 2018 Financial Plan this transfer is moved to later years. Due to the delays in main replacement noted above, the Operations reserve is above its target level, and will rise again in FY 2018 before beginning to decline. This Financial Plan projects that the Rate Stabilization Reserve will not be needed until FY 2020. Table 3: Transfers To/(From) Reserves for FY 2017 to FY 2027 ($000) Reserve FY 2017 FY 2018 FY 2019 to FY 2027 Rate Stabilization - - (342) Operations - - 342 SECTION 2B: SUMMARY OF PROPOSED ACTIONS Staff proposes no rate changes or transfers for the Wastewater Collection Utility in FY 2017 and FY 2018. SECTION 3: DETAIL OF FY 2018 RATE AND RESERVES PROPOSALS SECTION 3A: RATE DESIGN The Wastewater Collection Utility’s rates are evaluated and implemented in compliance with the cost of service requirements and procedural rules set forth in the California Constitution (Proposition 218). Current rates were structured based on staff’s annual assessment of the wastewater utility’s financial position, as well as the methodology from the January 2011 Wastewater Collection Utility Cost of Service & Rate Study completed by Utility Financial Solutions (Staff Report 1399). Staff plans to review and update this cost of service study in FY 2018 or FY 2019, 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 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. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 6 | Page SECTION 3B: CURRENT AND PROPOSED RATES The current rates were adopted July 1, 2016, when the City increased sewer rates by 9%. CPAU has three sewer rate schedules: one for residents (S-1), one for commercial customers (S-2), and a special schedule for restaurants (S-6), which discharge higher than average amounts of grease and oil and, therefore, have a greater impact on the sewer system. Residential customers are billed a monthly service charge, while commercial customers are billed based on their dry month water usage (previous January through March). This closely approximates non- irrigation water consumption, which represents actual sewer use. Restaurant customers are billed monthly based on water usage. CPAU also maintains a rate schedule for industrial dischargers (S-7), but there are currently no customers required to be on this rate schedule. CPAU us not proposing any rate changes for FY 2018 at this time. Table 4, below, summarizes the current rates for all customer classes. Comparisons with neighboring communities are discussed in Section 4F: Competitiveness. Table 4: Current Sewer Rates Current (as of 7/1/2016) Monthly Service and Minimum Charges ($/month) S-1 (Residential) Service charge $34.83 S-2 (Commercial), S-6 (Restaurant) Minimum $34.83 Quantity Rates: based on winter water usage (average for January - March bill period) S-2 (Commercial) $/CCF 6.71 S-6 (Restaurant) $/CCF 10.38 S-7 (Industrial) $/CCF 3.08 SECTION 3C: PROPOSED RESERVE TRANSFERS In the FY 2017 Financial Plan, staff recommended a $1.95 million transfer from the Rate Stabilization Reserve in FY 2016. This left a small amount, $342,000, which was originally to be transferred in FY 2017 and bring the Rate Stabilization Reserve balance to zero. With main replacement projects being deferred in FY 2017 and FY 2018, the Operations reserve will not require a transfer from the Rate Stabilization Reserve. It is now anticipated that the remaining $342,000 will not need to be transferred until FY 2020. These transfers are included in the financial projections in this Financial Plan, and will enable CPAU to maintain adequate Operations Reserve levels while moderating the pace of increase in Wastewater Collection rates. The impact of these transfers on reserves levels can be seen in Appendix A: Wastewater Collection Financial Forecast Detail. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 7 | Page 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 later sections. SECTION 4A: WASTEWATER UTILITY HISTORY The Wastewater Utility commenced operation in 1899 to serve Palo Alto and Stanford. In its first three decades the system grew to 60 miles of sewers. Raw sewage was discharged into Mayfield Slough at the edge of the Bay. In the 1930s, at the behest of the State Department of Health, Palo Alto built the South Bay’s first wastewater treatment plant. At that time the sewer system served 20,500 Stanford and Palo Alto residents and a cannery. The plant was upgraded twice in the 1940s and 1950s to increase capacity.1 At the same time, the postwar population and industrial boom in the 1950s required rapid expansion of the sewer system. In the first half of the 1960s Palo Alto’s area doubled, as did wastewater flows, overwhelming the capacity of several of the utility’s “trunk lines,” which are the largest diameter main sewer lines carrying wastewater to the treatment plant. This prompted the City, in 1965, to perform the first of its sewer master plans to identify needed capacity improvements. At that point the Wastewater Utility’s system comprised more than 150 miles of sewer mains.2 In 1968 the City signed agreements with the Cities of Mountain View and Los Altos to build a new regional treatment plant, the RWQCP, which is still in operation today. Since 1940 the City had been providing treatment services to the East Palo Alto Sanitary District through an existing agreement, and was also serving Stanford University by transporting wastewater across the City’s sewer system to the treatment plant. Both of these organizations became partners in the RWQCP as well. At the same time the Town of Los Altos Hills became the sixth partner as it signed an agreement with the City to connect the Town’s sewer system to the City’s sewer system to carry wastewater to the new RWQCP. The current agreements for the RWQCP extend through 2035.3 In the 1980s the City directed increased attention to the condition of its sewer system, performing a series of studies of groundwater inflow and infiltration into the system. The studies found high rates of infiltration, estimating that as much as 40% of the water going to the RWQCP from Palo Alto’s system was groundwater and stormwater rather than wastewater.4 In some parts of Palo Alto the land surface had subsided due to groundwater pumping by the water utility, and though that practice had ceased many years earlier as the water utility switched to the Hetch Hetchy Regional Water System, parts of the city had already subsided two to five feet. This subsidence had damaged several parts of the sewer collection system, leading to reduced slopes for sewer mains that caused reductions in capacity. In 1 Long Range Facilities Plan for the Regional Water Quality Control Plant, August 2012, Carollo Engineers, pp 2-1 through 2-2 2 Wastewater Collection and Storm Drainage, 1965, Brown and Caldwell Consulting Engineers, pp 4, 6-7, 143 3 Long Range Facilities Plan for the Regional Water Quality Control Plant, August 2012, Carollo Engineers, pg 2-2 4 Wastewater Collection System Master Plan – Capacity Assessment, January 2004, MWH Americas, Inc., pg ES-2 WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 8 | Page response to these studies the City commenced an accelerated sewer system rehabilitation program.5 At that point the sewer system comprised over 190 miles of mains.6 A Master Plan study in 1988 recommended a variety of capacity expansions, and in the 1990s the City completed about half of them. However, a 2004 Master Plan update found that the accelerated sewer rehabilitation plan started in the early 1990s had substantially reduced infiltration, easing the capacity problems that had led the to the recommended capacity increases in the 1988 study. Several of the outstanding projects were canceled and replaced with a different set of projects.7 At the same time the City updated its hydraulic model and developed greater capacity to do system planning in house. SECTION 4B: CUSTOMER BASE The City of Palo Alto’s Wastewater Collection Utility provides sewer service to the residents and businesses of Palo Alto. It is distinct from the Wastewater Treatment Utility, which provides treatment services for surrounding communities in addition to Palo Alto. Nearly 23,300 customers are connected to the sewer system, approximately 21,450 (92%) of which are residential and 1,850 (8%) of which are non-residential. Residential customers pay a flat fee for service. Non-residential customers are billed for sewer service based on their metered winter water usage. There is little variability in revenues for this utility. SECTION 4C: COLLECTION SYSTEM The Wastewater Collection Utility delivers all the wastewater it collects to the Regional Water Quality Control Plant (RWQCP) operated by the City of Palo Alto under a partnership agreement with several surrounding communities. Palo Alto is responsible for 35% to 40% of the wastewater sent to the RWQCP. The cost of running the RWQCP is contained in the Wastewater Treatment Utility and is not described in detail in this Financial Plan, but since these costs are a major driver of CPAU’s sewer rates, there is some discussion of future trends in treatment costs in Section 6A: Wastewater Treatment Costs. Treatment costs make up nearly half of the Wastewater Collection Utility’s expenses as shown in Table 1 above. To collect wastewater from its customers and deliver it to the RWQCP, CPAU owns roughly 18,100 sewer laterals (which collect wastewater from customers’ plumbing systems) and 217 miles of sewer mains (which transport the waste to the treatment plant). These laterals and mains, along with the associated manholes and cleanouts, represent the vast majority of infrastructure used to collect wastewater in Palo Alto. CPAU conducts a sewer rehabilitation and replacement program to replace mains over time as they deteriorate or to increase capacity. For more discussion of this program, see Section 6C: Capital Improvement Program (CIP). CIP expense accounts for roughly a quarter of the utility’s expenditures. In addition to its CIP, CPAU performs various maintenance activities on the sewer system. These include inspecting and repairing sewer laterals, responding to sewer overflows, regularly 5 CMR 183:90, Infrastructure Review and Update, March 1, 1990 6 Master Plan of the Wastewater Collection System, December 1988, Camp Dresser & McKee, Inc., pg 1-2 7 Wastewater Collection System Master Plan – Capacity Assessment, January 2004, MWH Americas, Inc., pg ES-3 WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 9 | Page cleaning sections of the system heavily impacted by fats, oils, and grease (FOG), and building and replacing sewer laterals for new or redeveloped buildings. The utility also shares the costs of other operational activities (such as customer service, billing, equipment maintenance, and street restoration) with the City’s other utilities. These maintenance and operations expenses, as well as associated administration, debt service, rent, and other costs, make up another quarter of the utility’s expenses. SECTION 4D: COST STRUCTURE AND REVENUE SOURCES In FY 2016, treatment costs represented nearly half of the Wastewater Collection Utility’s costs (47%), followed by Capital (27%) and Operations costs (26%). These expenditures are shown in Figure 1. The utility’s revenue in FY 2016, shown in Figure 2, came primarily from sewer charges (94%), with the remainder coming mainly from capacity and connection fees and other sources (6%). Figure 1: Cost Structure (FY 2016) Figure 2: Revenue Structure (FY 2016) SECTION 4E: RESERVES STRUCTURE CPAU maintains six reserves for its Wastewater Collection Utility to manage various types of contingencies. These are summarized below, but see Appendix C: Wastewater Collection 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. It also acts as a WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 10 | Page contingency reserve for the CIP. This type of reserve is used in other utility funds (Electric, Gas, and Water) 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. This type of reserve is used in other utility funds (Electric, Gas, and Water) as well. • Operations Reserve: This is the primary contingency reserve for the Wastewater Collection Utility, and is used to manage yearly variances from budget for operational costs. This type of reserve is used in other utility funds (Electric, Gas, and Water) as well. • Unassigned Reserve: This reserve is for any funds not assigned to the other reserves and is normally empty. SECTION 4F: COMPETITIVENESS Table 6 shows the monthly sewer bills for residential customers compared to what they would be in surrounding communities. The annual sewer bill for a Palo Alto customer is $418 under current rates, 31% lower than the average neighboring community. Palo Alto has the fourth lowest bill of the group. Table 5: Residential Monthly Sewer Bill Comparison Palo Alto Neighboring Communities Neighboring Community Average Menlo Park Redwood City Mountain View Los Altos Santa Clara Hayward 34.83 85.91 75.11 34.30 33.93 41.65 29.80 50.12 Based on rates as of February 2017 Table 7 compares the sewer bills for two classes of commercial customers to what they would be under surrounding communities’ rate schedules. Note that other communities often have specific rates for industrial customers that discharge high intensity wastewater, such as food processors or chemical or electronics manufacturers, but Palo Alto does not currently have any customers that require these special rates. Palo Alto is less competitive with surrounding cities with regards to commercial sewer rates, but is not the most expensive jurisdiction in all cases. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 11 | Page Table 6: Commercial Monthly Sewer Bill Comparison Palo Alto Neighboring Communities Neighboring Community Average Menlo Park Redwood City Mountain View Los Altos Santa Clara Hayward General Commercial $ 94.00 $ 33.14 $ 75.11 $ 62.86 $ 50.76 $ 65.94 $ 62.02 $ 74.97 Restaurant 581.10 664.72 781.08 490.56 137.70 590.24 463.12 521.24 Based on rates as of February 2017 SECTION 5: UTILITY FINANCIAL PROJECTIONS SECTION 5A: FY 2012 TO FY 2016 COST AND REVENUE TRENDS Figure 3 shows the Wastewater Collection Utility’s actual expenses and revenues for the past five years and projections through FY 2027. Operations costs were low in FY 2012, but in general expenses have grown with inflation at around 2% per year. Capital Investment grew on average by around 3%, with FY 2014 and FY 2015 seeing a reduction in investment mainly due to delayed main replacement projects. Treatment costs stayed relatively flat during this time frame. Since the revenue for this utility is very stable, revenue changes closely follow rate changes. The other large revenue item of note is the continued connection and capacity fees from new construction. These fees have grown dramatically since FY 2010, and it is uncertain when this trend may dampen. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 12 | Page Figure 3: Wastewater Collection Utility Expenses, Revenues and Rate Changes Actual Costs through FY 2016 and Projections through FY 2027 SECTION 5B: FY 2016 RESULTS Forecasted revenues for FY 2016 were lower than projected ($16.6 million actual vs. $18 million projected), but expenses related to Administration and Customer Service activities came in well below expected budget as well. Total FY 2016 expenses were $18.5 million compared to projections of $19.9 million in the FY 2017 Financial Plan. Table 8 summarizes the variances from forecast. Table 7: FY 2016, Actual Results vs. Financial Plan Forecast Net Cost/ (Benefit) Type of change Admin and customer service costs lower than projected (806,000) Cost savings Sales revenues lower than forecast 657,000 Revenue decrease Connection, capacity fees and other revenues were lower than forecasted 119,000 Revenue decrease Operations, capital and other cost increases 131,000 Cost increase Net Cost / (Benefit) of Variances ($101,000) WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 13 | Page SECTION 5C: FY 2017 PROJECTIONS The most notable change from the FY 2017 budget identified at this time is the deferral of Wastewater Collection System Rehabilitation Project 28. Originally budgeted at $3.5 million, this project is now anticipated to start in FY 2019. Also deferred to FY 2019 will be the design phase of Project 29, budgeted at $328,000. Capital Improvement issues are further discussed in Section 6c below. SECTION 5D: FY 2018 – FY 2027 PROJECTIONS Staff has prepared a forecast of costs and revenues through FY 2027. As shown in Figure 3 above (and, in more detail, in Appendix A: Wastewater Collection Financial Forecast Detail), the Wastewater Collection Utility’s total costs are projected to increase by roughly 6% per year on average for FY 2017 through FY 2027. The majority of this increase is due to projected treatment cost increases. The treatment plant itself is facing the need for major upgrades in coming years, both due to age of equipment and constantly changing environmental regulations. While the costs of the plant are shared among member agencies, Palo Alto is still expected to see average cost increases of 5% per year over the forecast horizon. Revenues are shown by the red line in Figure 3, and what is notable here is that costs have been generally higher than revenue. Some relief was experienced during times of lower CIP expenditures, and this is projected to be seen in FY 2017 and 2018. The trend of under- collection picks up in the future, however, resulting in a fairly rapid reduction of reserves. A path of 7% annual rate increases in the near term, decreasing to more inflationary increases in outer years, is required to keep reserves from dropping too low. Figure 4 below shows the relative drop in reserves, only showing slowing replenishment after the projected increase in FY 2021. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 14 | Page Figure 4: Wastewater Collection Reserves Projections SECTION 5E: RISK ASSESSMENT AND RESERVES ADEQUACY The Wastewater Collection Utility currently has one contingency reserve, the Operations Reserve, and this Financial Plan maintains reserves within the approved guideline levels throughout the forecast period, as shown in Figure 5 below. Reserve levels also exceed the short term risk assessment for the utility. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 15 | Page Figure 5: Operations Reserve Adequacy Staff performs an annual assessment of risks for the Wastewater Collection Utility. For this evaluation, staff estimates the revenue shortfall due to: 1. the maximum observed budget-to-actual variance in one year during the past five years; 2. an increase of 10% in system improvement CIP expenditures for the year; and 3. an increase of 10% in treatment costs. Table 9 summarizes the risk assessment calculation for the Wastewater Collection Utility through FY 2022. The Operations Reserve is projected to be adequate to manage these levels of risk over the entire forecast period. Table 8: Wastewater Collection Risk Assessment FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total Revenue ($000) 17,146 18,296 19,577 20,947 22,413 Max. Historical Budget-to-Actual variance 3% 3% 3% 3% 3% Budget-to-Actual Risk ($000) 514 549 587 628 672 System Rehabilitation CIP Budget ($000) 933 4,800 4,602 4,763 4,880 CIP Contingency @10% ($000) 93 480 460 476 488 Treatment Budget ($000) 9,932 10,298 11,088 11,885 12,293 Treatment Cost Contingency @10% ($000) 993 1,030 1,109 1,188 1,229 Total risk assessment value ($000) 1,600 2,059 2,156 2,292 2,389 Projected Operations Reserve Level ($000) 6,688 5,410 5,069 4,529 4,732 WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 16 | Page SECTION 5F: ALTERNATE SCENARIOS At its February 2017 meeting, staff presented an earlier scenario with a 2% 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 no longer sees the need for an increase at this time. SECTION 5G: LONG-TERM OUTLOOK In the longer term (5 to 35 years) the primary factor that could lead to increased costs for the Wastewater Collection Utility are major upgrades at the RWQCP, a share of which will be allocated to the utility as part of treatment costs. These upgrades includes replacement or rehabilitation of the parts of the facility that pump raw sewage to the main treatment works (the headworks), separate out primary sludge (the primary settling tank), process sludge (the bio-solids facility), and treat wastewater (the fixed film reactors). Upgrades to the laboratories and operational buildings are planned as well. In addition, the 72-inch regional trunk sewer line flowing into the plant needs to be evaluated and rehabilitated. SECTION 6: DETAILS AND ASSUMPTIONS SECTION 6A: WASTEWATER TREATMENT COSTS Treatment expenses represent the Wastewater Collection Utility’s share of the costs of operating the RWQCP. Per the partnership agreements between Palo Alto and its partner agencies, these charges are assessed based on a formula that takes into account the total amount of wastewater delivered, the amount of organic material in it, its ammonia content, and the total suspended solids it is carrying. The Wastewater Collection Utility’s assessed share of the RWQCP’s revenue requirement fluctuates in the 38% to 40% range. Mountain View is the other large agency served by the RWQCP (39% of the revenue requirement for FY 2014) with the smaller agencies (Stanford, Los Altos, East Palo Alto, and Los Altos Hills) making up the remainder of the flow to the treatment plant. Based on detailed project cost projections provided by RWQCP staff, treatment costs are likely to continue to increase by roughly 5% per year through at least 2030. Wastewater Treatment Fund costs are increasing due to rising salary and benefit costs as well as the attendant allocated charges for centralized city services needed by the Fund. Additional expenses include increased water and air permitting fees from the Regional Water Quality Control Board and the Bay Area Air Quality Management District. Commodity and utility rates to operate the facility are also increasing with the largest increases in FY2018 for electrical, water, refuse, and storm rates. Chemical commodity expenses, needed to adjust water quality and meet permit requirements, are also increasing modestly per latest chemical market conditions and procurement contract conditions. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 17 | Page Capital projects, parts, and materials are increasing about 3% to keep up with ongoing replacement of aging equipment. Larger increase to capital expenses are expected to begin in FY2020 in the form of new debt service for major projects to implement the Plant’s capital program. The Plant’s major project in FY2018 will be making progress constructing the Sludge Dewatering and Truck Loadout Facility, which will allow (in about 2019) the retirement of the Plant’s two sewage sludge incinerators that have been in operation since 1972. SECTION 6B: OPERATIONS Operations costs include the Customer Service, Distribution Operations, Engineering, and Allocated Charges categories in Appendix A: Wastewater Collection Financial Forecast Detail. Debt service, rent, and transfers are also included in this category. Customer Service costs are primarily related to the call center and collections on delinquent accounts. The Distribution Operations category includes preventative and corrective maintenance on sewer mains and laterals, investigation of sewer overflows, regular cleaning of heavily impacted sections of the sewer system, and services shared with other utilities (such as street restoration and equipment maintenance). Allocated Charges include the costs of accounting, purchasing, legal, and other administrative functions provided by the City’s General Fund staff, as well as shared communications services and Utilities Department administrative overhead and billing system maintenance costs. Operations costs are projected to increase by 3% per year, on average, over the forecast period. Underlying these projections are salary and benefit, consumer price index, and other cost projections used in the City’s long-range financial forecast. SECTION 6C: CAPITAL IMPROVEMENT PROGRAM (CIP) The Wastewater Collection Utility’s CIP consists of the following programs: • The Sewer System Replacement/Rehabilitation Program, under which the Wastewater Collection Utility replaces aging sewer mains. • Customer Connections, which covers the cost when the Wastewater Collection 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 covers the cost of replacing degraded manholes and sewer laterals, as well as the cost of capitalized tools and equipment. The Sewer System Replacement and Rehabilitation Program funds the replacement of deteriorating sewer mains and projects to increase capacity in various parts of the sewer system. The sewer system consists of over 217 miles of mains, and CPAU uses a variety of tools to establish which sections are in need of replacement. Maintenance statistics (such as records of the location and number of sewer overflows on the system) and videotape of sewer mains during regular cleaning can reveal areas with large amounts of deteriorating pipe. CPAU uses a WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 18 | Page scoring system to prioritize which mains to replace first, and coordinates with the Public Works street maintenance program to avoid cutting into newly repaved streets. A major goal of the program is to minimize groundwater and rainwater infiltration. As mains deteriorate they begin to allow groundwater and rainwater to infiltrate the system. Some level of infiltration is expected on any sewer system, but if there is too much, the combined flow of wastewater and groundwater/rainwater can overwhelm the capacity of various parts of the sewer system. Reducing infiltration can reduce the need to expand the system to accommodate increased flow. To achieve this goal, deteriorating mains are either repaired with a plastic lining or replaced. CPAU replaces or repairs approximately 25,000 feet of main per year, or 2.5% of the system. The CIP program also funds sewer capacity improvements. CPAU uses a hydraulic model, data from various flow meters on the system, and land use data to identify sections of the system that are being overloaded. When sewer mains are operating at or above their capacity on a regular basis it will increase the likelihood of sewer overflows. CPAU also does occasional comprehensive master planning studies to identify necessary capacity improvements. The most recent study, in 2004, identified eight projects, three of which have been completed. The remaining four projects are low priority projects and will be scheduled and planned as the need arises. Over the last few years, main replacement costs have been increasing for Wastewater as well as the Gas and Water utilities. The replacement cost per linear foot has increased by between 25 and 50% in some cases. Several factors may be contributing to this. Economic recovery in the Bay Area, as well as a greater focus on infrastructure improvement by many municipal agencies and utilities could be creating high demand for contractors in this field. There may be ongoing greater costs for newer, more leak resistant pipe materials. Should these trends prove to be less than short-term phenomena, wastewater main replacement budgets may need to be increased by $1.5 to $1.7 million more per year to maintain the current pace of replacement. This increase in cost is a partial reason for the two year delay in projects. The most recent project, when put out for bid, resulted in very few contractors competing, and project bids 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. Customer Connections costs are projected to increase steadily by around 3% each year through the end of the forecast period. Actual expenses for these projects fluctuate annually depending on how many defective laterals and manholes are discovered during routine maintenance, as well as how much development and redevelopment is going on that prompts the replacement or upgrade of sewer laterals. It is worth noting that property owners pay a fee for sewer lateral replacement or expansion during redevelopment, so when the number of projects increases, so does fee revenue. Projected CIP spending is displayed in Table 10 for the 5-year financial forecast period. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 19 | Page Table 9: Projected CIP Spending Aside from Customer Connections, the CIP plan for FY 2018 to FY 2022 is funded by sewer rates and capacity fees. The details of the plan are shown in Appendix B: Wastewater Collection Utility Capital Improvement Program (CIP) Detail. SECTION 6D: DEBT SERVICE The Wastewater Collection Utility currently pays its share of one bond issuance, the 1999 Utility Revenue Bonds, Series A, which is due to be retired in 2024. This $17.7 million issuance refinanced various earlier Storm Drain, Wastewater Treatment, and Wastewater Collection Utility bond issuances. The Wastewater Collection Utility’s share of the issuance was roughly $1.9 million. This amount represented the second refinancing of the remaining principal of a 1990 bond issuance which itself was a refinancing of a 1985 issuance that financed a variety of improvements to the sewer system. The cost of debt service for the Wastewater Collection Utility’s share of this bond issuance for the financial forecast period is roughly $128,000 per year as shown in Table 11 below. Table 10: Wastewater Collection Utility Debt Service ($000) FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 1999 Utility Revenue Bonds, Series A 128 128 128 129 129 129 The 1999 Utility Revenue Bonds include two covenants stating that 1) the Wastewater Collection Utility will maintain a debt coverage ratio of 125% of debt service, and 2) that the City will maintain “Available Reserves”8 equal to five times the annual debt service. The current financial plan maintains compliance with both covenants throughout the forecast period. Compliance with covenant one is shown below in Table 12, below. Due to the small size of the annual debt service payment for these bonds, the Wastewater Collection Utility’s Operations Reserve alone more than satisfies the second covenant at more than 30 times annual debt service throughout the forecast period. 8 Available Reserves as defined in the 1999 Utility Revenue Bonds included reserves for the Water, Wastewater Treatment, Wastewater Collection, Refuse, Storm Drain, Electric, and Gas Utilities WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 20 | Page Table 11: Debt Service Coverage Ratio ($000) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Revenues 19,042 19,170 20,381 21,787 23,112 24,611 Expenses (Excl. CIP and Debt Service) -15,869 -16,146 -16,713 -17,709 -18,717 -19,343 Net Revenues 3,173 3,024 3,668 4,078 4,395 5,268 Debt Service 128 128 128 128 129 129 Coverage Ratio 2479% 2363% 2866% 3186% 3407% 4084% The Wastewater Collection Utility’s reserves (but not its net revenues) are also considered security for the Storm Drain and Wastewater Treatment Utilities’ shares of the debt service on the 1999 bonds. Throughout the term of the bonds there remains a small risk that the Wastewater Collection Utility’s reserves could be called upon to make a debt service payment on behalf of one of those utilities if it cannot meet its debt service obligations. Staff does not foresee this occurring based on the current financial condition of those utilities. If the Wastewater Collection Utility’s reserves were used this way, any amounts advanced would have to be repaid by the borrowing utility. One other bond series is secured by the net revenues (but not the reserves) of the Wastewater Collection Utility. The 1995 Series A Utility Revenue Bonds issued for the Storm Drain utility was secured by the net revenues of the City’s “Enterprise,” which was defined as the City’s water, gas, wastewater, storm drain, and electric utilities, and are senior to the 1999 bonds referenced above. Debt service payments of roughly $680,000 per year are made on the 1995 Series A bonds by the City’s Storm Drain Utility, and staff does not currently foresee any risk of that utility being unable to make payment. SECTION 6E: OTHER REVENUES The utility has seen substantial increases in connection and capacity fee revenues in recent years, offsetting the need for increased sales revenue in the past, and these are assumed to continue, albeit slightly reduced from current levels. Income from interest and transfers in are projected to remain steady through the forecast horizon. SECTION 7: COMMUNICATIONS PLAN The FY 2017 Wastewater Collection Utility communications strategy covers three primary areas: rates, maintenance and operations, and safety. Communication about wastewater rate adjustments will highlight the important infrastructure and operations upgrades that are occurring at the Regional Water Quality Control Plant to improve wastewater collection utility services. To keep customers apprised of the status and accomplishments of CIP projects, a network of project web pages are maintained and updated as needed. Traffic is driven to the website via ads in newspapers and local publications, utility bill inserts, social media and email newsletters. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 21 | Page An important communications topic for the wastewater utility is avoiding sewer back-ups due to FOG (fats, oil and grease) and trash being dumped down drains and toilets. Safety topics are emphasized year-round. Staff continues its outreach goal of educating customers about the utility’s gas-sewer line cross-bore inspection program, including the importance of calling Utilities prior to clearing sewer lines in the event of a sewer back-up. Promotional activity about wastewater utility maintenance and safety operations includes use of bill inserts, ads in local print publications, website pages, email newsletters and social media. While print materials and website pages feature prominently, CPAU is increasing the outreach emphasis on more direct communication with customers, including through use of social media, email newsletters, digital ads, videos and short commercials on the local television channels. Staff is also attending more community safety/emergency preparation events and neighborhood meetings. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 22 | Page APPENDICES Appendix A: Wastewater Collection Financial Forecast Detail Appendix B: Wastewater Collection Utility Capital Improvement Program (CIP) Detail Appendix C: Wastewater Collection Utility Reserves Management Practices Appendix D: Sample of Wastewater Collection Outreach Materials WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 23 | Page APPENDIX A: WASTEWATER COLLECTION FINANCIAL FORECAST DETAIL WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 24 | Page APPENDIX B: WASTEWATER COLLECTION UTILITY CAPITAL IMPROVEMENT PROGRAM (CIP) DETAIL WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 25 | Page APPENDIX C: WASTEWATER COLLECTION UTILITY RESERVES MANAGEMENT PRACTICES The following reserves management practices shall be used when developing the Wastewater Collection Utility Financial Plan: Section 1. Definitions a) “Financial Planning Period” – The Financial Planning Period is the range of future fiscal years covered by the Financial Plan. For example, if the Financial Plan delivered in conjunction with the FY 2015 budget includes projections for FY 2015 to FY 2019, FY 2015 to FY 2019 would be the Financial Planning Period. b) “Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers to the Utility’s Unrestricted Net Assets. c) “Net Assets” - The Government Accounting Standards Board defines a Utility’s Net Assets as the difference between its assets and liabilities. d) “Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital assets (net of related debt) or restricted for debt service or other restricted purposes. Section 2. Reserves The Wastewater Collection 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 Wastewater Collection 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 Wastewater Collection 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. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 26 | Page 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 Wastewater Collection Utility Financial Plan must result in the withdrawal of all funds from this Reserve by the end of the Financial Planning Period. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 27 | Page 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 Wastewater Collection 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 105 days of O&M and commodity expense Maximum Level 150 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 Wastewater Collection 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 Wastewater Collection 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 Wastewater Collection 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 Wastewater Collection 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 2020, 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. WASTEWATER COLLECTION UTILITY FINANCIAL PLAN February 2016 28 | Page APPENDIX D: SAMPLE OF WASTEWATER COLLECTION OUTREACH MATERIALS *NOT YET APPROVED * 6053774 Resolution No. _________ Resolution of the Council of the City of Palo Alto Adopting a Dark Fiber Rate Increase and Amending Rate Schedules EDF-1 (Dark Fiber Licensing Services) and EDF-2 (Dark Fiber Connection Fees) A. The City of Palo Alto administers three different fiber rates. Fiber Rate schedule EDF-1 applies to customers with fiber optic licenses that began prior to September 18, 2006, and is closed to new customers. Fiber rate schedule EDF-2 applies to customer engineering, construction and connection expenses. Fiber rate schedule EDF-3 applies to customers who obtained licenses since 2006. B. The original Council-approved Dark Fiber Licensing Agreement annually increases both the EDF-1 and EDF-2 rates by the Consumer Price Index for all Urban Consumers for the San Francisco-Oakland-San Jose Metropolitan Statistical Area (CPI). EDF-3 has no CPI adjustment factor. C.The last time Council adopted a resolution incorporating CPI-adjusted rates into the EDF-1 and EDF-2 rate schedules was June 13, 2016 [Resolution 9592]. 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 EDF-1 (Dark Fiber Licensing Services) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF-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 EDF-2 (Dark Fiber Connection Fees) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF-2, as amended, shall become effective July 1, 2017. SECTION 3. The Council finds that the revenue derived from the adoption of this resolution shall be used only for the purpose 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 increasing dark fiber rates by the Consumer Price Index 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: ATTACHMENT J *NOT YET APPROVED * 6053774 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 DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-1-1 Effective 07-01-20176 dated 7-01-20165 Sheet No. EDF-1-1 A.APPLICABILITY: This rate schedule applies to customer accounts established prior to September 18, 2006, unless the customer elects to apply the EDF-3 rate to the entire customer account. This rate applies to Fiber Optic services from the City of Palo Alto Utilities (CPAU) pertaining to the City's network (Backbone and associated connections). B.TERRITORY: Within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C.FEES: 1. DARK FIBER BACKBONE LICENSE FEES: The values or ranges for each of these price components are shown below: (1) Fiber Price………………………………………………………………. $356.32368.91/FM/month (2) Quantity discount ……………………………………………………… $0 to $59.84/FM/month (3) Buffer tube discount……………………………………………………….. $0 to $59.84/FM/month (4) Route length discount…………………………………………………….. $0 to $77.80/FM/month (5) Ring topology discount………………………………………………………$0 to $23.94/FM/month (6) Length of term discount…………………………………………………… $0 to $46.80/FM/month Minimum Backbone License Fee $538.92557.95/month Project Minimum Backbone Fees apply to any project proposal signed after September 18, 2006 in which the project connects with the Backbone. Description for Discounts: Quantity discount: based on an array of discounts for quantities of fiber licensed on a specific path. Buffer tube discount: discount for numbers of full buffer tubes licensed on a specific path. Route length discount: based on the route length licensed on a specific project. Ring topology discount: The ring topology discount for customers contracting for complete rings. Term discount: based on an array of discounts for contracts greater than one and less than ten years. 2. DARK FIBER LATERAL CONNECTION FEES: Customer responsibilities and fees for drop and custom cable construction are described in the CPAU Rules and Regulations, Rate Schedule EDF-2, project proposals and other associated documents. In all cases, the Licensee shall pay an annual Drop/Custom Cable Management Fee based on the follow per foot fees: (1) Drop Cable Management Fees (for the first 12-Fibers) …………………………… $0.03-$0.07/ft/month (2) Custom Cable Management Fees (for the first 12-Fibers)……………………….. $0.364/ft/month (3) Fees for additional Drop or Custom Cable fibers (each additional set of 12-Fibers) $0.07/ft/month ATTACHMENT K DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-1-2 Effective 07-01-20176 dated 7-01-20165 Sheet No. EDF-1-2 Minimum Drop or Custom Cable Management Fees ........................................................ $266.29275.69/month Minimum Drop Cable Management Fees apply to any project proposal signed after September 18, 2006. DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-1-3 Effective 07-01-20176 dated 7-01-20165 Sheet No. EDF-1-3 3. EARLY TERMINATION FEES: If the Licensee chooses to terminate for convenience the License Agreement or the term of any project under the License Agreement, then the Licensee shall pay the applicable termination payment as specified in this schedule or in the License Agreement, as provided below. Unless otherwise provided in the License Agreement, the Licensee shall pay a termination fee in one of the following amounts, whichever is less: Annual fee of the contract year that the Licensee chooses to terminates in full without term discounts, or Remaining fees of the project term as indicated in the License Agreement. D. SPECIAL NOTES: 1. All fees must be paid to the City in accordance with the terms of the Dark Fiber License Agreement, the customer’s project proposals and all the applicable Utilities Rates, Rules, and Regulations. 2. All fees and minimum charges are subject to Consumer Price Index (CPI) adjustments, to be applied annually, except as defined by Section D.3 of this Rate Schedule. Discounts will not be modified by changes to CPI. 3. The CPI adjustment will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is calculated by dividing the most recent calendar year December CPI by the December CPI in the year rates last changed. In the event that the change between December CPI’s indicates an adjustment of less than 1% is required, a change to rate schedules may not be made for the upcoming year. Future rate changes will take the last year of change as the new base year for purposes of calculation. {End} DARK FIBER SERVICE CONNECTION FEES UTILITY RATE SCHEDULE EDF-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-2-1 Effective 7-01-20176 dated 7-01-20165 Sheet No. EDF-2-1 A. APPLICABILITY: This schedule applies to all connections, expansions, and upgrades to the City's Dark Fiber network (Backbone). B. TERRITORY: All territory within the incorporated limits of the City and land owned or leased by the City. C. FEES: 1. ADVANCE ENGINEERING FEES: Advance engineering (AER) fees must be paid to start the engineering process and are non-refundable. The fees will be credited against the estimated project cost prior to the collection of the project construction fees. (1) Commercial/Industrial AER minimum fee ..................................................................... $8851.00 (2) Special conditions (requiring expert assessment) ........................................................... By Estimate 2. ESTIMATED SERVICE CONNECTION AND RECONFIGURATION FEES All estimated service connection and reconfiguration fees must be paid prior to the scheduling of any construction or reconnections to the City's Dark Fiber network. (1) Service connection (Interconnection) fee ...................................................... By Estimate (2) Reconfiguration Fees ..................................................................................... By Estimate Labor rates are subject to change as stated in the Utility Rate Schedule C-1. D. NOTES: 1. The Customer is responsible for the installation and maintenance of all ducts and pathways from the facility to the property line in compliance with City of Palo Alto Utilities Rules and Regulations and contract agreements. 2. The City shall not be held liable for delays or interruptions in service, but will make reasonable efforts to provide timely continuous service. 3. All fees are subject to Consumer Price Index (CPI) adjustments, to be applied annually. The CPI adjustment will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland- San Jose MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is calculated by dividing the most recent calendar year December CPI by the December CPI in the year rates last changed. In the event that the change between December CPI’s indicates an adjustment of less than 1% is required, a change to rate schedules may not be made for the upcoming year. Future rate changes will take the last year of change as the new base year for purposes of calculation. {End} Attachment L *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 / / / / / / / / / / *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 M 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 Not Yet Approved 170525 jb 019/EP/Planning/RPP 1 Resolution No. ___ Resolution of the Council of the City of Palo Alto Amending Resolution 9671 to Set and Update Future Permit Fees Using the Municipal Fee Schedule R E C I T A L S A. On March 6, 2017, the Council adopted Resolution No. 9671 continuing the Downtown Residential Preferential Parking District (RPP) Program. B. Resolution No. 9671 set the initial prices of the various parking permits offered for purchase by residents and employees participating in the Downtown RPP Program. C. The Council desires to amend Resolution No. 9671 to use the Municipal Fee Schedule to set and update future permit fees annually. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES, as follows: SECTION 1. Amendment. SECTION 6 of Resolution 9671 is hereby amended to state: “The cost of Parking Permits shall be set by the Municipal Fee Schedule and updated on an annual basis.” SECTION 2. CEQA. The Council finds that the adoption of this resolution does not constitute a project for the purposes of the California Environmental Quality Act, and therefore, no environmental assessment is required. SECTION 3. Effective Date. This resolution shall take effect immediately. Attachment N Not Yet Approved 170525 jb 019/EP/Planning/RPP 2 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 Page 1 Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Mid-Point Monthly Salary Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate 190 Non-Exempt Accountant 690P $32.89 $41.11 $49.34 $33.72 $42.14 $50.57 $7,304.27 $87,651.20 $34.56 $43.20 $51.84 76 Exempt Administrative Assistant 750P $28.37 $35.46 $42.56 $29.08 $36.35 $43.62 $6,300.67 $75,608.00 $29.81 $37.26 $44.72 115 Exempt Assistant Chief Building Official 405M $46.08 $57.60 $69.12 $47.24 $59.04 $70.85 $10,233.60 $122,803.20 $48.42 $60.52 $72.63 132 Exempt Assistant Chief of Police 100A $75.43 $94.28 $113.14 $77.32 $96.64 $115.97 $16,750.93 $201,011.20 $79.25 $99.06 $118.88 108 Exempt Assistant City Attorney 165A $63.94 $79.92 $95.91 $65.54 $81.92 $98.31 $14,199.47 $170,393.60 $67.18 $83.97 $100.77 109 Exempt Assistant City Clerk 630M $37.21 $46.51 $55.82 $38.15 $47.68 $57.22 $8,264.53 $99,174.40 $39.11 $48.88 $58.66 107 Exempt Assistant City Manager 20E $78.36 $97.94 $117.53 $80.32 $100.39 $120.47 $17,400.93 $208,811.20 $82.32 $102.90 $123.48 2026 Exempt Assistant City Manager / Utilities General Manager 10E $98.47 $123.08 $147.70 $100.93 $126.16 $151.40 $21,867.73 $262,412.80 $103.46 $129.32 $155.19 73 Exempt Assistant Director Administrative Services 120A $64.47 $80.58 $96.70 $66.08 $82.60 $99.12 $14,317.33 $171,808.00 $67.74 $84.67 $101.61 126 Exempt Assistant Director Community Services 150A $61.72 $77.14 $92.57 $63.26 $79.07 $94.89 $13,705.47 $164,465.60 $64.84 $81.05 $97.26 1007 Exempt Assistant Director Human Resources 155A $59.65 $74.56 $89.48 $61.15 $76.43 $91.72 $13,247.87 $158,974.40 $62.68 $78.35 $94.02 2001 Exempt Assistant Director Library Services 160A $59.03 $73.78 $88.54 $60.51 $75.63 $90.76 $13,109.20 $157,310.40 $62.03 $77.53 $93.04 10 Exempt Assistant Director Planning & Community Environment 130A $63.23 $79.03 $94.84 $64.81 $81.01 $97.22 $14,041.73 $168,500.80 $66.44 $83.04 $99.65 143 Exempt Assistant Director Public Works 140A $62.49 $78.11 $93.74 $64.06 $80.07 $96.09 $13,878.80 $166,545.60 $65.67 $82.08 $98.50 168 Exempt Assistant Fleet Manager 585M $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65 102 Exempt Assistant Manager WQCP 240D $50.52 $63.14 $75.77 $51.78 $64.72 $77.67 $11,218.13 $134,617.60 $53.08 $66.34 $79.61 30 Exempt Assistant to the City Manager 390M $48.82 $61.02 $73.23 $50.04 $62.55 $75.06 $10,842.00 $130,104.00 $51.30 $64.12 $76.95 118 Exempt Chief Building Official 290M $59.99 $74.98 $89.98 $61.49 $76.86 $92.24 $13,322.40 $159,868.80 $63.04 $78.79 $94.55 2008 Exempt Chief Communications Officer 135A $62.89 $78.61 $94.34 $64.47 $80.58 $96.70 $13,967.20 $167,606.40 $66.08 $82.60 $99.12 112 Exempt Chief Planning Official 220D $53.61 $67.01 $80.42 $54.96 $68.69 $82.43 $11,906.27 $142,875.20 $56.33 $70.41 $84.50 95 Exempt Chief Procurement Officer 235D $50.72 $63.39 $76.07 $51.99 $64.98 $77.98 $11,263.20 $135,158.40 $53.29 $66.61 $79.94 2010 Exempt Chief Sustainability Officer 435M $54.75 $68.43 $82.12 $56.12 $70.15 $84.18 $12,159.33 $145,912.00 $57.53 $71.91 $86.30 82 Exempt Chief Transportation Official 204D $56.40 $70.50 $84.60 $57.82 $72.27 $86.73 $12,526.80 $150,321.60 $59.27 $74.08 $88.90 96 Exempt Claims Investigator 660P $34.56 $43.19 $51.83 $35.42 $44.27 $53.13 $7,673.47 $92,081.60 $36.31 $45.38 $54.46 24 Exempt Communication Specialist 615M $37.43 $46.78 $56.14 $38.36 $47.95 $57.54 $8,311.33 $99,736.00 $39.32 $49.15 $58.98 89 Exempt Contracts Administrator 585P $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65 186 Non-Exempt Coordinator Library Circulation 675M $32.95 $41.18 $49.42 $33.77 $42.21 $50.66 $7,316.40 $87,796.80 $34.62 $43.27 $51.93 191 Exempt Deputy Chief/Fire Marshall 125A $63.71 $79.63 $95.56 $65.31 $81.63 $97.96 $14,149.20 $169,790.40 $66.95 $83.68 $100.42 9 Exempt Deputy City Attorney 480P $45.34 $56.67 $68.01 $46.48 $58.09 $69.71 $10,068.93 $120,827.20 $47.64 $59.55 $71.46 11 Exempt Senior Deputy City Attorney 375M $50.04 $62.55 $75.06 $51.30 $64.12 $76.95 $11,114.13 $133,369.60 $52.59 $65.73 $78.88 71 Exempt Deputy City Clerk 720M $29.80 $37.25 $44.70 $30.56 $38.19 $45.83 $6,619.60 $79,435.20 $31.32 $39.15 $46.98 55 Exempt Deputy City Manager 115A $65.31 $81.63 $97.96 $66.95 $83.68 $100.42 $14,504.53 $174,054.40 $68.63 $85.78 $102.94 195 Exempt Deputy Director Technical Services Division 200D $63.52 $79.39 $95.27 $65.11 $81.38 $97.66 $14,105.87 $169,270.40 $66.74 $83.42 $100.11 20 Exempt Deputy Fire Chief 110A $66.38 $82.97 $99.57 $68.04 $85.05 $102.06 $14,742.00 $176,904.00 $69.75 $87.18 $104.62 81 Exempt Director Administrative Services/Chief Financial Officer 50E $75.11 $93.88 $112.66 $76.99 $96.23 $115.48 $16,679.87 $200,158.40 $78.92 $98.64 $118.37 72 Exempt Director Community Services 45E $75.68 $94.60 $113.52 $77.58 $96.97 $116.37 $16,808.13 $201,697.60 $79.52 $99.40 $119.28 1012 Exempt Director Development Services 145A $66.45 $83.06 $99.68 $68.12 $85.14 $102.17 $14,757.60 $177,091.20 $69.82 $87.27 $104.73 133 Exempt Director Human Resources/Chief People Officer 55E $71.58 $89.47 $107.37 $73.37 $91.71 $110.06 $15,896.40 $190,756.80 $75.21 $94.01 $112.82 128 Exempt Director Information Technology/Chief Information Officer 25E $78.21 $97.76 $117.32 $80.17 $100.21 $120.26 $17,369.73 $208,436.80 $82.18 $102.72 $123.27 131 Exempt Director Libraries 60E $70.84 $88.54 $106.25 $72.61 $90.76 $108.92 $15,731.73 $188,780.80 $74.43 $93.03 $111.64 2028 Exempt Director of Emergency Medical Services 215D $55.58 $69.47 $83.37 $56.97 $71.21 $85.46 $12,343.07 $148,116.80 $58.40 $73.00 $87.60 City of Palo Alto Management, Professional and Confidential Salary Schedule Effective pay period including 7/1/2016 (2.5% Increase)Effective pay period including 7/1/2017 (2.5% Increase)Effective pay period including 7/1/2018 (2.5% Increase) Attachment O, Exhibit 1 Page 2 Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Mid-Point Monthly Salary Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Effective pay period including 7/1/2016 (2.5% Increase)Effective pay period including 7/1/2017 (2.5% Increase)Effective pay period including 7/1/2018 (2.5% Increase) 2005 Exempt Director Office of Emergency Services 215D $55.58 $69.47 $83.37 $56.97 $71.21 $85.46 $12,343.07 $148,116.80 $58.40 $73.00 $87.60 49 Exempt Director Office of Management and Budget 120A $64.47 $80.58 $96.70 $66.08 $82.60 $99.12 $14,317.33 $171,808.00 $67.74 $84.67 $101.61 134 Exempt Director Planning & Community Environment 40E $75.86 $94.82 $113.79 $77.76 $97.20 $116.64 $16,848.00 $202,176.00 $79.71 $99.63 $119.56 135 Exempt Director Public Works/City Engineer 30E $76.84 $96.04 $115.25 $78.76 $98.45 $118.14 $17,064.67 $204,776.00 $80.74 $100.92 $121.11 121 Exempt Director Utilities 10E $98.47 $123.08 $147.70 $100.93 $126.16 $151.40 $21,867.73 $262,412.80 $103.46 $129.32 $155.19 2002 Exempt Division Head Library Services 260D $46.36 $57.95 $69.54 $47.52 $59.40 $71.28 $10,296.00 $123,552.00 $48.72 $60.89 $73.07 172 Exempt Division Manager Open Space, Parks & Golf 245D $49.84 $62.29 $74.75 $51.08 $63.85 $76.62 $11,067.33 $132,808.00 $52.36 $65.45 $78.54 1005 Exempt Executive Assistant to the City Manager 705M $32.09 $40.11 $48.14 $32.90 $41.12 $49.35 $7,127.47 $85,529.60 $33.72 $42.15 $50.58 139 Exempt Fire Chief 35E $76.41 $95.51 $114.62 $78.32 $97.90 $117.48 $16,969.33 $203,632.00 $80.28 $100.35 $120.42 163 Exempt Hearing Officer 480M $45.34 $56.67 $68.01 $46.48 $58.09 $69.71 $10,068.93 $120,827.20 $47.64 $59.55 $71.46 101 Exempt Human Resources Representative 735P $29.08 $36.34 $43.61 $29.80 $37.25 $44.70 $6,456.67 $77,480.00 $30.56 $38.19 $45.83 90 Exempt Landscape Architect Park Planner 510M $43.16 $53.94 $64.73 $44.24 $55.29 $66.35 $9,583.60 $115,003.20 $45.35 $56.68 $68.02 2015 Exempt Legal Fellow 755P $37.11 $46.38 $55.66 $38.04 $47.54 $57.05 $8,240.27 $98,883.20 $38.99 $48.73 $58.48 171 Exempt Management Analyst 585M $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65 79 Exempt Manager Accounting 235D $50.72 $63.39 $76.07 $51.99 $64.98 $77.98 $11,263.20 $135,158.40 $53.29 $66.61 $79.94 2007 Exempt Manager Airport 210D $55.59 $69.48 $83.38 $56.98 $71.22 $85.47 $12,344.80 $148,137.60 $58.41 $73.01 $87.62 2023 Exempt Manager Budget 360M $53.84 $67.29 $80.75 $55.19 $68.98 $82.78 $11,956.53 $143,478.40 $56.57 $70.71 $84.86 38 Exempt Manager Communications 525M $42.11 $52.63 $63.16 $43.16 $53.95 $64.74 $9,351.33 $112,216.00 $44.24 $55.30 $66.36 154 Exempt Manager Community Services 630M $37.21 $46.51 $55.82 $38.15 $47.68 $57.22 $8,264.53 $99,174.40 $39.11 $48.88 $58.66 169 Exempt Manager Community Services Sr Program 585M $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65 1013 Exempt Manager Development Center 495M $44.24 $55.29 $66.35 $45.35 $56.68 $68.02 $9,824.53 $117,894.40 $46.48 $58.10 $69.72 63 Exempt Manager Economic Development 220D $53.61 $67.01 $80.42 $54.96 $68.69 $82.43 $11,906.27 $142,875.20 $56.33 $70.41 $84.50 44 Exempt Manager Employee Benefits 450M $45.81 $57.26 $68.72 $46.96 $58.70 $70.44 $10,174.67 $122,096.00 $48.14 $60.17 $72.21 45 Exempt Manager Employee Relations & Training 235D $50.72 $63.39 $76.07 $51.99 $64.98 $77.98 $11,263.20 $135,158.40 $53.29 $66.61 $79.94 93 Exempt Manager Environmental Control Program 419M $46.91 $58.63 $70.36 $48.08 $60.10 $72.12 $10,417.33 $125,008.00 $49.29 $61.61 $73.94 1116 Exempt Manager Facilities 445M $46.50 $58.12 $69.75 $47.67 $59.58 $71.50 $10,327.20 $123,926.40 $48.86 $61.07 $73.29 127 Exempt Manager Fleet 255D $46.97 $58.71 $70.46 $48.15 $60.18 $72.22 $10,431.20 $125,174.40 $49.36 $61.69 $74.03 2018 Exempt Manager Human Services 540M $41.08 $51.35 $61.62 $42.12 $52.64 $63.17 $9,124.27 $109,491.20 $43.17 $53.96 $64.76 32 Exempt Manager Information Technology 230D $51.85 $64.81 $77.78 $53.16 $66.44 $79.73 $11,516.27 $138,195.20 $54.49 $68.11 $81.74 2006 Exempt Manager Information Technology Security 230D $51.85 $64.81 $77.78 $53.16 $66.44 $79.73 $11,516.27 $138,195.20 $54.49 $68.11 $81.74 158 Exempt Manager Laboratory Services 495M $44.24 $55.29 $66.35 $45.35 $56.68 $68.02 $9,824.53 $117,894.40 $46.48 $58.10 $69.72 78 Exempt Manager Library Services 565M $38.61 $48.26 $57.92 $39.58 $49.47 $59.37 $8,574.80 $102,897.60 $40.57 $50.71 $60.86 92 Exempt Manager Maintenance Operations 469M $43.33 $54.16 $65.00 $44.42 $55.52 $66.63 $9,623.47 $115,481.60 $45.53 $56.91 $68.30 26 Exempt Manager Transportation Planning 345M $50.71 $63.38 $76.06 $51.98 $64.97 $77.97 $11,261.47 $135,137.60 $53.28 $66.60 $79.92 51 Exempt Manager Planning 415M $46.96 $58.70 $70.44 $48.14 $60.17 $72.21 $10,429.47 $125,153.60 $49.35 $61.68 $74.02 103 Exempt Manager Real Property 235D $50.72 $63.39 $76.07 $51.99 $64.98 $77.98 $11,263.20 $135,158.40 $53.29 $66.61 $79.94 2011 Exempt Manager Revenue Collections 250D $47.64 $59.55 $71.46 $48.84 $61.04 $73.25 $10,580.27 $126,963.20 $50.06 $62.57 $75.09 160 Exempt Manager Solid Waste 330M $51.30 $64.12 $76.95 $52.59 $65.73 $78.88 $11,393.20 $136,718.40 $53.91 $67.38 $80.86 57 Exempt Manager Treasury, Debt & Investments 235D $50.72 $63.39 $76.07 $51.99 $64.98 $77.98 $11,263.20 $135,158.40 $53.29 $66.61 $79.94 86 Exempt Manager Urban Forestry 436M $45.50 $56.87 $68.25 $46.64 $58.30 $69.96 $10,105.33 $121,264.00 $47.81 $59.76 $71.72 178 Exempt Manager Water Quality Control Plant 205D $57.08 $71.34 $85.61 $58.51 $73.13 $87.76 $12,675.87 $152,110.40 $59.97 $74.96 $89.96 39 Exempt Manager Watershed Protection 330M $51.30 $64.12 $76.95 $52.59 $65.73 $78.88 $11,393.20 $136,718.40 $53.91 $67.38 $80.86 1008 Exempt Office of Emergency Services Coordinator 525M $42.11 $52.63 $63.16 $43.16 $53.95 $64.74 $9,351.33 $112,216.00 $44.24 $55.30 $66.36 2024 Exempt Performance Auditor I 750P $28.37 $35.46 $42.56 $29.08 $36.35 $43.62 $6,300.67 $75,608.00 $29.81 $37.26 $44.72 Page 3 Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Mid-Point Monthly Salary Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Effective pay period including 7/1/2016 (2.5% Increase)Effective pay period including 7/1/2017 (2.5% Increase)Effective pay period including 7/1/2018 (2.5% Increase) 100 Exempt Performance Auditor II 585M $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65 148 Exempt Police Chief 15E $84.96 $106.19 $127.43 $87.08 $108.85 $130.62 $18,867.33 $226,408.00 $89.27 $111.58 $133.90 2021 Exempt Principal Chief Assistant City Attorney 101A $77.36 $96.70 $116.04 $79.30 $99.12 $118.95 $17,180.80 $206,169.60 $81.28 $101.60 $121.92 2016 Exempt Principal Business Analyst 310M $54.06 $67.57 $81.09 $55.41 $69.26 $83.12 $12,005.07 $144,060.80 $56.80 $71.00 $85.20 TBD Exempt Principal Planner 469M NA NA NA $44.42 $55.52 $66.63 $9,623.47 $115,481.60 $45.53 $56.91 $68.30 2003 Exempt Principal Management Analyst 360M $53.84 $67.29 $80.75 $55.19 $68.98 $82.78 $11,956.53 $143,478.40 $56.57 $70.71 $84.86 2009 Exempt Project Manager 570M $39.36 $49.20 $59.04 $40.35 $50.43 $60.52 $8,741.20 $104,894.40 $41.36 $51.70 $62.04 2012 Exempt Public Safety Communications Manager 495M $44.24 $55.29 $66.35 $45.35 $56.68 $68.02 $9,824.53 $117,894.40 $46.48 $58.10 $69.72 166 Exempt Public Safety Program Manager 585M $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65 117 Exempt Senior Accountant 555M $40.08 $50.10 $60.12 $41.09 $51.36 $61.64 $8,902.40 $106,828.80 $42.12 $52.65 $63.18 152 Exempt Senior Assistant City Attorney 105A $70.33 $87.91 $105.50 $72.09 $90.11 $108.14 $15,619.07 $187,428.80 $73.90 $92.37 $110.85 2013 Exempt Senior Business Analyst - M 420M $47.01 $58.76 $70.52 $48.19 $60.23 $72.28 $10,439.87 $125,278.40 $49.40 $61.74 $74.09 187 Exempt Senior Engineer 300M $53.90 $67.37 $80.85 $55.25 $69.06 $82.88 $11,970.40 $143,644.80 $56.64 $70.79 $84.95 106 Exempt Senior Executive Assistant 450M $45.81 $57.26 $68.72 $46.96 $58.70 $70.44 $10,174.67 $122,096.00 $48.14 $60.17 $72.21 157 Exempt Senior Human Resources Administrator 545M $39.93 $49.91 $59.90 $40.93 $51.16 $61.40 $8,867.73 $106,412.80 $41.96 $52.44 $62.93 14 Exempt Senior Management Analyst 465M $45.77 $57.21 $68.66 $46.92 $58.65 $70.38 $10,166.00 $121,992.00 $48.10 $60.12 $72.15 130 Exempt Senior Performance Auditor 510M $43.16 $53.94 $64.73 $44.24 $55.29 $66.35 $9,583.60 $115,003.20 $45.35 $56.68 $68.02 53 Exempt Senior Project Manager 300M $53.90 $67.37 $80.85 $55.25 $69.06 $82.88 $11,970.40 $143,644.80 $56.64 $70.79 $84.95 33 Exempt Senior Technologist 420M $47.01 $58.76 $70.52 $48.19 $60.23 $72.28 $10,439.87 $125,278.40 $49.40 $61.74 $74.09 155 Exempt Superintendent Animal Services 540M $41.08 $51.35 $61.62 $42.12 $52.64 $63.17 $9,124.27 $109,491.20 $43.17 $53.96 $64.76 83 Exempt Superintendent Community Services 480M $45.34 $56.67 $68.01 $46.48 $58.09 $69.71 $10,068.93 $120,827.20 $47.64 $59.55 $71.46 1117 Exempt Superintendent Recreation 480M $45.34 $56.67 $68.01 $46.48 $58.09 $69.71 $10,068.93 $120,827.20 $47.64 $59.55 $71.46 2022 Exempt Supervising Librarian 675M $33.07 $41.33 $49.60 $33.90 $42.37 $50.85 $7,344.13 $88,129.60 $34.75 $43.43 $52.12 161 Exempt Supervisor Facilities Management 600M $38.24 $47.79 $57.35 $39.20 $48.99 $58.79 $8,491.60 $101,899.20 $40.18 $50.22 $60.27 113 Exempt Supervisor Inspection and Surveying 540M $41.08 $51.35 $61.62 $42.12 $52.64 $63.17 $9,124.27 $109,491.20 $43.17 $53.96 $64.76 146 Exempt Supervisor Warehouse 660M $34.56 $43.19 $51.83 $35.42 $44.27 $53.13 $7,673.47 $92,081.60 $36.31 $45.38 $54.46 181 Exempt Supervisor Water Quality Control Operations 525M $42.11 $52.63 $63.16 $43.16 $53.95 $64.74 $9,351.33 $112,216.00 $44.24 $55.30 $66.36 2027 Exempt Utilities Chief Operating Officer 60E $70.84 $88.54 $106.25 $72.61 $90.76 $108.92 $15,731.73 $188,780.80 $74.43 $93.03 $111.64 184 Exempt Veterinarian 555M $40.08 $50.10 $60.12 $41.09 $51.36 $61.64 $8,902.40 $106,828.80 $42.12 $52.65 $63.18 Job Code FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate Mid-Point Monthly Salary Mid-Point Annual Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate 905 Non-Exempt Human Resources Technician 830C $25.08 $31.34 $37.61 $25.71 $32.13 $38.56 $5,569.20 $66,830.40 $26.36 $32.94 $39.53 903 Non-Exempt Legal Secretary-Confidential 820C $25.70 $32.12 $38.55 $26.35 $32.93 $39.52 $5,707.87 $68,494.40 $27.01 $33.76 $40.52 67 Exempt Secretary to City Attorney 800C $30.55 $38.18 $45.82 $31.32 $39.14 $46.97 $6,784.27 $81,411.20 $32.10 $40.12 $48.15 1004 Non-Exempt Senior Legal Secretary - Confidential 810C $28.37 $35.46 $42.56 $29.08 $36.35 $43.62 $6,300.67 $75,608.00 $29.81 $37.26 $44.72 Confidential Classifications City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual 206 non-exempt Account Assistant 1 $20.92 $21.56 $21.56 $22.21 206 2 $22.02 $22.69 $22.69 $23.38 206 3 $23.18 $23.88 $23.88 $24.61 206 4 $24.40 $25.14 $25.14 $25.90 206 5 $25.68 $4,451.20 $53,414.40 $26.46 $4,586.40 $55,036.80 $26.46 $4,586.40 $55,036.80 $27.26 $4,725.07 $56,700.80 204 non-exempt Acct Spec 1 $24.44 $25.18 $25.18 $25.94 204 2 $25.73 $26.51 $26.51 $27.31 204 3 $27.08 $27.90 $27.90 $28.75 204 4 $28.51 $29.37 $29.37 $30.26 204 5 $30.01 $5,201.73 $62,420.80 $30.92 $5,359.47 $64,313.60 $30.92 $5,359.47 $64,313.60 $31.85 $5,520.67 $66,248.00 207 non-exempt Acct Spec-Lead 1 $26.15 $26.96 $26.96 $27.77 207 2 $27.53 $28.38 $28.38 $29.23 207 3 $28.98 $29.87 $29.87 $30.77 207 4 $30.51 $31.44 $31.44 $32.39 207 5 $32.12 $5,567.47 $66,809.60 $33.09 $5,735.60 $68,827.20 $33.09 $5,735.60 $68,827.20 $34.09 $5,908.93 $70,907.20 294 non-exempt Administrative Associate I 1 $24.05 $24.81 $24.84 $25.60 294 2 $25.32 $26.12 $26.15 $26.95 294 3 $26.65 $27.49 $27.53 $28.37 294 4 $28.05 $28.94 $28.98 $29.86 294 5 $29.53 $5,118.53 $61,422.40 $30.46 $5,279.73 $63,356.80 $30.51 $5,288.40 $63,460.80 $31.43 $5,447.87 $65,374.40 295 non-exempt Administrative Associate II 1 $26.14 $26.97 $27.00 $27.82 295 2 $27.52 $28.39 $28.42 $29.28 295 3 $28.97 $29.88 $29.92 $30.82 295 4 $30.49 $31.45 $31.49 $32.44 295 5 $32.09 $5,562.27 $66,747.20 $33.10 $5,737.33 $68,848.00 $33.15 $5,746.00 $68,952.00 $34.15 $5,919.33 $71,032.00 296 non-exempt Administrative Associate III 1 $28.03 $28.90 $28.94 $29.81 296 2 $29.50 $30.42 $30.46 $31.38 296 3 $31.05 $32.02 $32.06 $33.03 296 4 $32.68 $33.71 $33.75 $34.77 296 5 $34.40 $5,962.67 $71,552.00 $35.48 $6,149.87 $73,798.40 $35.53 $6,158.53 $73,902.40 $36.60 $6,344.00 $76,128.00 277 non-exempt Animal Attendant 1 $23.02 $23.78 $23.86 $24.58 277 2 $24.23 $25.03 $25.12 $25.87 277 3 $25.51 $26.35 $26.44 $27.23 277 4 $26.85 $27.74 $27.83 $28.66 277 5 $28.26 $4,898.40 $58,780.80 $29.20 $5,061.33 $60,736.00 $29.29 $5,076.93 $60,923.20 $30.17 $5,229.47 $62,753.60 276 non-exempt Animal Control Off 1 $24.66 $25.48 $25.56 $26.32 276 2 $25.96 $26.82 $26.90 $27.71 276 3 $27.33 $28.23 $28.32 $29.17 276 4 $28.77 $29.72 $29.81 $30.71 276 5 $30.28 $5,248.53 $62,982.40 $31.28 $5,421.87 $65,062.40 $31.38 $5,439.20 $65,270.40 $32.33 $5,603.87 $67,246.40 312 non-exempt Animal Control Off - L 1 $26.39 $27.27 $27.35 $28.18 312 2 $27.78 $28.70 $28.79 $29.66 312 3 $29.24 $30.21 $30.31 $31.22 312 4 $30.78 $31.80 $31.90 $32.86 312 5 $32.40 $5,616.00 $67,392.00 $33.47 $5,801.47 $69,617.60 $33.58 $5,820.53 $69,846.40 $34.59 $5,995.60 $71,947.20 263 non-exempt Animal Services Spec 1 $24.32 $25.13 $25.20 $25.97 263 2 $25.60 $26.45 $26.53 $27.34 263 3 $26.95 $27.84 $27.93 $28.78 263 4 $28.37 $29.31 $29.40 $30.29 263 5 $29.86 $5,175.73 $62,108.80 $30.85 $5,347.33 $64,168.00 $30.95 $5,364.67 $64,376.00 $31.88 $5,525.87 $66,310.40 275 non-exempt Animal Services Spec II 1 $26.82 $27.71 $27.80 $28.63 275 2 $28.23 $29.17 $29.26 $30.14 275 3 $29.72 $30.70 $30.80 $31.73 275 4 $31.28 $32.32 $32.42 $33.40 275 5 $32.93 $5,707.87 $68,494.40 $34.02 $5,896.80 $70,761.60 $34.13 $5,915.87 $70,990.40 $35.16 $6,094.40 $73,132.80 Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) Attachment O, Exhibit 2 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 244 non-exempt Assoc Buyer 1 $31.32 $32.28 $32.30 $33.27 244 2 $32.97 $33.98 $34.00 $35.02 244 3 $34.71 $35.77 $35.79 $36.86 244 4 $36.54 $37.65 $37.67 $38.80 244 5 $38.46 $6,666.40 $79,996.80 $39.63 $6,869.20 $82,430.40 $39.65 $6,872.67 $82,472.00 $40.84 $7,078.93 $84,947.20 333 non-exempt Assoc Engineer 1 $38.75 $40.10 $40.29 $41.50 333 2 $40.79 $42.21 $42.41 $43.68 333 3 $42.94 $44.43 $44.64 $45.98 333 4 $45.20 $46.77 $46.99 $48.40 333 5 $47.58 $8,247.20 $98,966.40 $49.23 $8,533.20 $102,398.40 $49.46 $8,573.07 $102,876.80 $50.95 $8,831.33 $105,976.00 353 non-exempt Assoc Planner 1 $35.94 $37.28 $37.55 $38.68 353 2 $37.83 $39.24 $39.53 $40.72 353 3 $39.82 $41.31 $41.61 $42.86 353 4 $41.92 $43.48 $43.80 $45.12 353 5 $44.13 $7,649.20 $91,790.40 $45.77 $7,933.47 $95,201.60 $46.10 $7,990.67 $95,888.00 $47.49 $8,231.60 $98,779.20 247 non-exempt Assoc Power Engr 1 $41.25 $42.69 $42.89 $44.18 247 2 $43.42 $44.94 $45.15 $46.50 247 3 $45.71 $47.30 $47.53 $48.95 247 4 $48.12 $49.79 $50.03 $51.53 247 5 $50.65 $8,779.33 $105,352.00 $52.41 $9,084.40 $109,012.80 $52.66 $9,127.73 $109,532.80 $54.24 $9,401.60 $112,819.20 269 non-exempt Assoc Res Planner 1 $39.78 $40.97 $40.97 $42.20 269 2 $41.87 $43.13 $43.13 $44.42 269 3 $44.07 $45.40 $45.40 $46.76 269 4 $46.39 $47.79 $47.79 $49.22 269 5 $48.83 $8,463.87 $101,566.40 $50.30 $8,718.67 $104,624.00 $50.30 $8,718.67 $104,624.00 $51.81 $8,980.40 $107,764.80 330 non-exempt Asst Engineer 1 $35.10 $36.32 $36.49 $37.59 330 2 $36.95 $38.23 $38.41 $39.57 330 3 $38.89 $40.24 $40.43 $41.65 330 4 $40.94 $42.36 $42.56 $43.84 330 5 $43.09 $7,468.93 $89,627.20 $44.59 $7,728.93 $92,747.20 $44.80 $7,765.33 $93,184.00 $46.15 $7,999.33 $95,992.00 256 non-exempt Asst Power Engr 1 $37.25 $38.54 $38.72 $39.89 256 2 $39.21 $40.57 $40.76 $41.99 256 3 $41.27 $42.70 $42.91 $44.20 256 4 $43.44 $44.95 $45.17 $46.53 256 5 $45.73 $7,926.53 $95,118.40 $47.32 $8,202.13 $98,425.60 $47.55 $8,242.00 $98,904.00 $48.98 $8,489.87 $101,878.40 268 non-exempt Asst Res Planner 1 $35.91 $36.98 $36.98 $38.10 268 2 $37.80 $38.93 $38.93 $40.11 268 3 $39.79 $40.98 $40.98 $42.22 268 4 $41.88 $43.14 $43.14 $44.44 268 5 $44.08 $7,640.53 $91,686.40 $45.41 $7,871.07 $94,452.80 $45.41 $7,871.07 $94,452.80 $46.78 $8,108.53 $97,302.40 299 non-exempt Bldg Inspector 1 $35.69 $37.33 $37.91 $39.05 299 2 $37.57 $39.29 $39.91 $41.11 299 3 $39.55 $41.36 $42.01 $43.27 299 4 $41.63 $43.54 $44.22 $45.55 299 5 $43.82 $7,595.47 $91,145.60 $45.83 $7,943.87 $95,326.40 $46.55 $8,068.67 $96,824.00 $47.95 $8,311.33 $99,736.00 300 non-exempt Bldg Inspector Spec 1 $38.10 $39.84 $40.48 $41.70 300 2 $40.11 $41.94 $42.61 $43.89 300 3 $42.22 $44.15 $44.85 $46.20 300 4 $44.44 $46.47 $47.21 $48.63 300 5 $46.78 $8,108.53 $97,302.40 $48.92 $8,479.47 $101,753.60 $49.69 $8,612.93 $103,355.20 $51.19 $8,872.93 $106,475.20 370 non-exempt Bldg Serviceperson 1 $21.10 $21.98 $22.24 $22.90 370 2 $22.21 $23.14 $23.41 $24.10 370 3 $23.38 $24.36 $24.64 $25.37 370 4 $24.61 $25.64 $25.94 $26.71 370 5 $25.91 $4,491.07 $53,892.80 $26.99 $4,678.27 $56,139.20 $27.30 $4,732.00 $56,784.00 $28.12 $4,874.13 $58,489.60 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 371 non-exempt Bldg Serviceperson-L 1 $22.59 $23.54 $23.80 $24.52 371 2 $23.78 $24.78 $25.05 $25.81 371 3 $25.03 $26.08 $26.37 $27.17 371 4 $26.35 $27.45 $27.76 $28.60 371 5 $27.74 $4,808.27 $57,699.20 $28.89 $5,007.60 $60,091.20 $29.22 $5,064.80 $60,777.60 $30.10 $5,217.33 $62,608.00 355 non-exempt Bldg/Plg Technician 1 $29.16 $30.24 $30.45 $31.37 355 2 $30.69 $31.83 $32.05 $33.02 355 3 $32.31 $33.51 $33.74 $34.76 355 4 $34.01 $35.27 $35.52 $36.59 355 5 $35.80 $6,205.33 $74,464.00 $37.13 $6,435.87 $77,230.40 $37.39 $6,480.93 $77,771.20 $38.52 $6,676.80 $80,121.60 340 non-exempt Business Analyst 1 $48.82 $51.62 $53.04 $54.63 340 2 $51.39 $54.34 $55.83 $57.51 340 3 $54.09 $57.20 $58.77 $60.54 340 4 $56.94 $60.21 $61.86 $63.73 340 5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40 3400 non-exempt Business Analyst - S 1 $48.82 $51.62 $53.04 $54.63 3400 2 $51.39 $54.34 $55.83 $57.51 3400 3 $54.09 $57.20 $58.77 $60.54 3400 4 $56.94 $60.21 $61.86 $63.73 3400 5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40 212 non-exempt Buyer 1 $34.49 $35.54 $35.56 $36.61 212 2 $36.30 $37.41 $37.43 $38.54 212 3 $38.21 $39.38 $39.40 $40.57 212 4 $40.22 $41.45 $41.47 $42.71 212 5 $42.34 $7,338.93 $88,067.20 $43.63 $7,562.53 $90,750.40 $43.65 $7,566.00 $90,792.00 $44.96 $7,793.07 $93,516.80 464 non-exempt Cathodic Protection Tech Assistant 1 $33.56 $35.49 $36.47 $37.57 464 2 $35.33 $37.36 $38.39 $39.55 464 3 $37.19 $39.33 $40.41 $41.63 464 4 $39.15 $41.40 $42.54 $43.82 464 5 $41.21 $7,143.07 $85,716.80 $43.58 $7,553.87 $90,646.40 $44.78 $7,761.87 $93,142.40 $46.13 $7,995.87 $95,950.40 536 non-exempt Cathodic Tech 1 $41.21 $43.59 $44.77 $46.12 536 2 $43.38 $45.88 $47.13 $48.55 536 3 $45.66 $48.29 $49.61 $51.10 536 4 $48.06 $50.83 $52.22 $53.79 536 5 $50.59 $8,768.93 $105,227.20 $53.50 $9,273.33 $111,280.00 $54.97 $9,528.13 $114,337.60 $56.62 $9,814.13 $117,769.60 208 non-exempt CDBG Coordinator 1 $38.43 $39.85 $40.15 $41.34 208 2 $40.45 $41.95 $42.26 $43.52 208 3 $42.58 $44.16 $44.48 $45.81 208 4 $44.82 $46.48 $46.82 $48.22 208 5 $47.18 $8,177.87 $98,134.40 $48.93 $8,481.20 $101,774.40 $49.28 $8,541.87 $102,502.40 $50.76 $8,798.40 $105,580.80 408 non-exempt Cement Finisher 1 $30.11 $31.85 $32.75 $33.73 408 2 $31.69 $33.53 $34.47 $35.50 408 3 $33.36 $35.29 $36.28 $37.37 408 4 $35.12 $37.15 $38.19 $39.34 408 5 $36.97 $6,408.13 $76,897.60 $39.11 $6,779.07 $81,348.80 $40.20 $6,968.00 $83,616.00 $41.41 $7,177.73 $86,132.80 409 non-exempt Cement Finisher Lead 1 $32.21 $34.08 $35.03 $36.08 409 2 $33.91 $35.87 $36.87 $37.98 409 3 $35.69 $37.76 $38.81 $39.98 409 4 $37.57 $39.75 $40.85 $42.08 409 5 $39.55 $6,855.33 $82,264.00 $41.84 $7,252.27 $87,027.20 $43.00 $7,453.33 $89,440.00 $44.29 $7,676.93 $92,123.20 502 non-exempt Chemist 1 $35.11 $36.20 $36.21 $37.30 502 2 $36.96 $38.10 $38.12 $39.26 502 3 $38.90 $40.10 $40.13 $41.33 502 4 $40.95 $42.21 $42.24 $43.51 5 $43.10 $7,470.67 $89,648.00 $44.43 $7,701.20 $92,414.40 $44.46 $7,706.40 $92,476.80 $45.80 $7,938.67 $95,264.00 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 239 non-exempt Chf Inspec WGW 1 $38.18 $39.94 $40.56 $41.79 239 2 $40.19 $42.04 $42.69 $43.99 239 3 $42.31 $44.25 $44.94 $46.30 239 4 $44.54 $46.58 $47.31 $48.74 239 5 $46.88 $8,125.87 $97,510.40 $49.03 $8,498.53 $101,982.40 $49.80 $8,632.00 $103,584.00 $51.30 $8,892.00 $106,704.00 301 non-exempt Code Enforcement Off 1 $34.29 $35.85 $36.41 $37.52 301 2 $36.09 $37.74 $38.33 $39.49 301 3 $37.99 $39.73 $40.35 $41.57 301 4 $39.99 $41.82 $42.47 $43.76 301 5 $42.09 $7,295.60 $87,547.20 $44.02 $7,630.13 $91,561.60 $44.71 $7,749.73 $92,996.80 $46.06 $7,983.73 $95,804.80 560 non-exempt Code Enforcement Off - L 1 $36.68 $38.36 $38.96 $40.14 560 2 $38.61 $40.38 $41.01 $42.25 560 3 $40.64 $42.50 $43.17 $44.47 560 4 $42.78 $44.74 $45.44 $46.81 560 5 $45.03 $7,805.20 $93,662.40 $47.09 $8,162.27 $97,947.20 $47.83 $8,290.53 $99,486.40 $49.27 $8,540.13 $102,481.60 306 non-exempt Comm Tech 1 $35.92 $36.99 $36.99 $38.11 306 2 $37.81 $38.94 $38.94 $40.12 306 3 $39.80 $40.99 $40.99 $42.23 306 4 $41.89 $43.15 $43.15 $44.45 306 5 $44.09 $7,642.27 $91,707.20 $45.42 $7,872.80 $94,473.60 $45.42 $7,872.80 $94,473.60 $46.79 $8,110.27 $97,323.20 702 non-exempt Community Serv Offcr 1 $26.09 $27.33 $27.82 $28.65 702 2 $27.46 $28.77 $29.28 $30.16 702 3 $28.90 $30.28 $30.82 $31.75 702 4 $30.42 $31.87 $32.44 $33.42 702 5 $32.02 $5,550.13 $66,601.60 $33.55 $5,815.33 $69,784.00 $34.15 $5,919.33 $71,032.00 $35.18 $6,097.87 $73,174.40 320 non-exempt Community Service Officer - Lead 1 $27.89 $29.24 $29.75 $30.65 320 2 $29.36 $30.78 $31.32 $32.26 320 3 $30.91 $32.40 $32.97 $33.96 320 4 $32.54 $34.10 $34.70 $35.75 320 5 $34.25 $5,936.67 $71,240.00 $35.89 $6,220.93 $74,651.20 $36.53 $6,331.87 $75,982.40 $37.63 $6,522.53 $78,270.40 341 non-exempt Coor Trans Sys Mgmt 1 $36.60 $38.04 $38.38 $39.54 341 2 $38.53 $40.04 $40.40 $41.62 341 3 $40.56 $42.15 $42.53 $43.81 341 4 $42.69 $44.37 $44.77 $46.12 341 5 $44.94 $7,789.60 $93,475.20 $46.70 $8,094.67 $97,136.00 $47.13 $8,169.20 $98,030.40 $48.55 $8,415.33 $100,984.00 3410 non-exempt Coor Trans Sys Mgmt - S 1 $36.60 $38.04 $38.38 $39.54 3410 2 $38.53 $40.04 $40.40 $41.62 3410 3 $40.56 $42.15 $42.53 $43.81 3410 4 $42.69 $44.37 $44.77 $46.12 3410 5 $44.94 $7,789.60 $93,475.20 $46.70 $8,094.67 $97,136.00 $47.13 $8,169.20 $98,030.40 $48.55 $8,415.33 $100,984.00 255 non-exempt Coord Library Prog 1 $33.24 $34.43 $34.62 $35.66 255 2 $34.99 $36.24 $36.44 $37.54 255 3 $36.83 $38.15 $38.36 $39.52 255 4 $38.77 $40.16 $40.38 $41.60 255 5 $40.81 $7,073.73 $84,884.80 $42.27 $7,326.80 $87,921.60 $42.51 $7,368.40 $88,420.80 $43.79 $7,590.27 $91,083.20 342 non-exempt Coord Pub Wks Proj 1 $34.78 $36.14 $36.46 $37.56 342 2 $36.61 $38.04 $38.38 $39.54 342 3 $38.54 $40.04 $40.40 $41.62 342 4 $40.57 $42.15 $42.53 $43.81 342 5 $42.70 $7,401.33 $88,816.00 $44.37 $7,690.80 $92,289.60 $44.77 $7,760.13 $93,121.60 $46.12 $7,994.13 $95,929.60 317 non-exempt Coord Rec Prog 1 $29.88 $31.04 $31.32 $32.27 2 $31.45 $32.67 $32.97 $33.97 3 $33.10 $34.39 $34.71 $35.76 4 $34.84 $36.20 $36.54 $37.64 5 $36.67 $6,356.13 $76,273.60 $38.11 $6,605.73 $79,268.80 $38.46 $6,666.40 $79,996.80 $39.62 $6,867.47 $82,409.60 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 344 non-exempt Coord Utility Proj 1 $37.55 $39.02 $39.38 $40.57 344 2 $39.53 $41.07 $41.45 $42.70 344 3 $41.61 $43.23 $43.63 $44.95 344 4 $43.80 $45.51 $45.93 $47.32 344 5 $46.11 $7,992.40 $95,908.80 $47.91 $8,304.40 $99,652.80 $48.35 $8,380.67 $100,568.00 $49.81 $8,633.73 $103,604.80 3440 non-exempt Coord Utility Proj - S 1 $37.55 $39.02 $39.38 $40.57 3440 2 $39.53 $41.07 $41.45 $42.70 3440 3 $41.61 $43.23 $43.63 $44.95 3440 4 $43.80 $45.51 $45.93 $47.32 3440 5 $46.11 $7,992.40 $95,908.80 $47.91 $8,304.40 $99,652.80 $48.35 $8,380.67 $100,568.00 $49.81 $8,633.73 $103,604.80 242 non-exempt Coord Zero Waste 1 $33.39 $34.70 $35.02 $36.07 242 2 $35.15 $36.53 $36.86 $37.97 242 3 $37.00 $38.45 $38.80 $39.97 242 4 $38.95 $40.47 $40.84 $42.07 242 5 $41.00 $7,106.67 $85,280.00 $42.60 $7,384.00 $88,608.00 $42.99 $7,451.60 $89,419.20 $44.28 $7,675.20 $92,102.40 205 non-exempt Court Liaison Officer 1 $33.95 $35.58 $36.20 $37.30 205 2 $35.74 $37.45 $38.11 $39.26 205 3 $37.62 $39.42 $40.12 $41.33 205 4 $39.60 $41.49 $42.23 $43.50 205 5 $41.68 $7,224.53 $86,694.40 $43.67 $7,569.47 $90,833.60 $44.45 $7,704.67 $92,456.00 $45.79 $7,936.93 $95,243.20 214 non-exempt Crime Analyst 1 $33.95 $35.58 $36.20 $37.30 214 2 $35.74 $37.45 $38.11 $39.26 214 3 $37.62 $39.42 $40.12 $41.33 214 4 $39.60 $41.49 $42.23 $43.50 214 5 $41.68 $7,224.53 $86,694.40 $43.67 $7,569.47 $90,833.60 $44.45 $7,704.67 $92,456.00 $45.79 $7,936.93 $95,243.20 415 non-exempt Cust Srv Specialist-L 1 $30.55 $31.47 $31.47 $32.40 415 2 $32.16 $33.13 $33.13 $34.11 415 3 $33.85 $34.87 $34.87 $35.91 415 4 $35.63 $36.70 $36.70 $37.80 415 5 $37.50 $6,500.00 $78,000.00 $38.63 $6,695.87 $80,350.40 $38.63 $6,695.87 $80,350.40 $39.79 $6,896.93 $82,763.20 218 non-exempt Cust Svc Represent 1 $25.98 $26.76 $26.76 $27.56 218 2 $27.35 $28.17 $28.17 $29.01 218 3 $28.79 $29.65 $29.65 $30.54 218 4 $30.30 $31.21 $31.21 $32.15 218 5 $31.89 $5,527.60 $66,331.20 $32.85 $5,694.00 $68,328.00 $32.85 $5,694.00 $68,328.00 $33.84 $5,865.60 $70,387.20 217 non-exempt Cust Svc Spec 1 $28.56 $29.41 $29.41 $30.31 217 2 $30.06 $30.96 $30.96 $31.90 217 3 $31.64 $32.59 $32.59 $33.58 217 4 $33.31 $34.31 $34.31 $35.35 217 5 $35.06 $6,077.07 $72,924.80 $36.12 $6,260.80 $75,129.60 $36.12 $6,260.80 $75,129.60 $37.21 $6,449.73 $77,396.80 260 non-exempt Desktop Technician 1 $31.13 $32.06 $32.06 $33.03 260 2 $32.77 $33.75 $33.75 $34.77 260 3 $34.49 $35.53 $35.53 $36.60 260 4 $36.31 $37.40 $37.40 $38.53 260 5 $38.22 $6,624.80 $79,497.60 $39.37 $6,824.13 $81,889.60 $39.37 $6,824.13 $81,889.60 $40.56 $7,030.40 $84,364.80 514 non-exempt Development Project Coordinator I 1 $27.42 $28.67 $29.13 $30.01 514 2 $28.86 $30.18 $30.66 $31.59 514 3 $30.38 $31.77 $32.27 $33.25 514 4 $31.98 $33.44 $33.97 $35.00 514 5 $33.66 $5,834.40 $70,012.80 $35.20 $6,101.33 $73,216.00 $35.76 $6,198.40 $74,380.80 $36.84 $6,385.60 $76,627.20 515 non-exempt Development Project Coordinator II 1 $31.15 $32.59 $33.10 $34.09 2 $32.79 $34.30 $34.84 $35.88 3 $34.52 $36.10 $36.67 $37.77 4 $36.34 $38.00 $38.60 $39.76 5 $38.25 $6,630.00 $79,560.00 $40.00 $6,933.33 $83,200.00 $40.63 $7,042.53 $84,510.40 $41.85 $7,254.00 $87,048.00 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 516 non-exempt Development Project Coordinator III 1 $34.36 $35.93 $36.50 $37.60 2 $36.17 $37.82 $38.42 $39.58 3 $38.07 $39.81 $40.44 $41.66 4 $40.07 $41.90 $42.57 $43.85 5 $42.18 $7,311.20 $87,734.40 $44.11 $7,645.73 $91,748.80 $44.81 $7,767.07 $93,204.80 $46.16 $8,001.07 $96,012.80 533 non-exempt Elec Asst I 1 $27.09 $28.22 $28.53 $29.39 533 2 $28.52 $29.70 $30.03 $30.94 533 3 $30.02 $31.26 $31.61 $32.57 533 4 $31.60 $32.90 $33.27 $34.28 533 5 $33.26 $5,765.07 $69,180.80 $34.63 $6,002.53 $72,030.40 $35.02 $6,070.13 $72,841.60 $36.08 $6,253.87 $75,046.40 267 non-exempt Elec Undgd Inspec 1 $33.84 $35.39 $35.94 $37.03 267 2 $35.62 $37.25 $37.83 $38.98 267 3 $37.49 $39.21 $39.82 $41.03 267 4 $39.46 $41.27 $41.92 $43.19 267 5 $41.54 $7,200.27 $86,403.20 $43.44 $7,529.60 $90,355.20 $44.13 $7,649.20 $91,790.40 $45.46 $7,879.73 $94,556.80 345 non-exempt Electric Project Engineer 1 $49.43 $51.15 $51.39 $52.93 345 2 $52.03 $53.84 $54.09 $55.72 345 3 $54.77 $56.67 $56.94 $58.65 345 4 $57.65 $59.65 $59.94 $61.74 345 5 $60.68 $10,517.87 $126,214.40 $62.79 $10,883.60 $130,603.20 $63.09 $10,935.60 $131,227.20 $64.99 $11,264.93 $135,179.20 3450 non-exempt Electric Project Engineer - S 1 $49.43 $51.15 $51.39 $52.93 3450 2 $52.03 $53.84 $54.09 $55.72 3450 3 $54.77 $56.67 $56.94 $58.65 3450 4 $57.65 $59.65 $59.94 $61.74 3450 5 $60.68 $10,517.87 $126,214.40 $62.79 $10,883.60 $130,603.20 $63.09 $10,935.60 $131,227.20 $64.99 $11,264.93 $135,179.20 292 non-exempt Electric Underground Inspector - Lead 1 $36.20 $37.84 $38.44 $39.60 292 2 $38.10 $39.83 $40.46 $41.68 292 3 $40.10 $41.93 $42.59 $43.87 292 4 $42.21 $44.14 $44.83 $46.18 292 5 $44.43 $7,701.20 $92,414.40 $46.46 $8,053.07 $96,636.80 $47.19 $8,179.60 $98,155.20 $48.61 $8,425.73 $101,108.80 527 non-exempt Electrical Equipment Tech 1 $31.85 $32.81 $32.81 $33.80 527 2 $33.53 $34.54 $34.54 $35.58 527 3 $35.29 $36.36 $36.36 $37.45 527 4 $37.15 $38.27 $38.27 $39.42 527 5 $39.10 $6,777.33 $81,328.00 $40.28 $6,981.87 $83,782.40 $40.28 $6,981.87 $83,782.40 $41.49 $7,191.60 $86,299.20 530 non-exempt Electrician 1 $36.23 $37.72 $38.14 $39.28 530 2 $38.14 $39.70 $40.15 $41.35 530 3 $40.15 $41.79 $42.26 $43.53 530 4 $42.26 $43.99 $44.48 $45.82 530 5 $44.48 $7,709.87 $92,518.40 $46.31 $8,027.07 $96,324.80 $46.82 $8,115.47 $97,385.60 $48.23 $8,359.87 $100,318.40 529 non-exempt Electrician-Appren 1 $34.30 $35.70 $36.10 $37.18 529 2 $36.10 $37.58 $38.00 $39.14 529 3 $38.00 $39.56 $40.00 $41.20 529 4 $40.00 $41.64 $42.10 $43.37 529 5 $42.10 $7,297.33 $87,568.00 $43.83 $7,597.20 $91,166.40 $44.32 $7,682.13 $92,185.60 $45.65 $7,912.67 $94,952.00 535 non-exempt Electrician-Lead 1 $38.79 $40.38 $40.83 $42.07 2 $40.83 $42.51 $42.98 $44.28 3 $42.98 $44.75 $45.24 $46.61 4 $45.24 $47.10 $47.62 $49.06 5 $47.62 $8,254.13 $99,049.60 $49.58 $8,593.87 $103,126.40 $50.13 $8,689.20 $104,270.40 $51.64 $8,950.93 $107,411.20 399 non-exempt Emergency Med Svs Data Specialist 1 $28.03 $28.90 $28.94 $29.81 399 2 $29.50 $30.42 $30.46 $31.38 399 3 $31.05 $32.02 $32.06 $33.03 399 4 $32.68 $33.71 $33.75 $34.77 399 5 $34.40 $5,962.67 $71,552.00 $35.48 $6,149.87 $73,798.40 $35.53 $6,158.53 $73,902.40 $36.60 $6,344.00 $76,128.00 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 311 non-exempt Eng Tech I 1 $26.50 $27.69 $28.09 $28.94 311 2 $27.89 $29.15 $29.57 $30.46 311 3 $29.36 $30.68 $31.13 $32.06 311 4 $30.90 $32.29 $32.77 $33.75 311 5 $32.53 $5,638.53 $67,662.40 $33.99 $5,891.60 $70,699.20 $34.49 $5,978.27 $71,739.20 $35.53 $6,158.53 $73,902.40 332 non-exempt Engineer 1 $43.64 $45.17 $45.37 $46.74 332 2 $45.94 $47.55 $47.76 $49.20 332 3 $48.36 $50.05 $50.27 $51.79 332 4 $50.91 $52.68 $52.92 $54.52 332 5 $53.59 $9,288.93 $111,467.20 $55.45 $9,611.33 $115,336.00 $55.71 $9,656.40 $115,876.80 $57.39 $9,947.60 $119,371.20 323 non-exempt Engr Tech II 1 $28.67 $29.95 $30.40 $31.31 323 2 $30.18 $31.53 $32.00 $32.96 323 3 $31.77 $33.19 $33.68 $34.69 323 4 $33.44 $34.94 $35.45 $36.52 323 5 $35.20 $6,101.33 $73,216.00 $36.78 $6,375.20 $76,502.40 $37.32 $6,468.80 $77,625.60 $38.44 $6,662.93 $79,955.20 319 non-exempt Engr Tech III 1 $32.02 $33.45 $33.94 $34.96 319 2 $33.70 $35.21 $35.73 $36.80 319 3 $35.47 $37.06 $37.61 $38.74 319 4 $37.34 $39.01 $39.59 $40.78 319 5 $39.30 $6,812.00 $81,744.00 $41.06 $7,117.07 $85,404.80 $41.67 $7,222.80 $86,673.60 $42.93 $7,441.20 $89,294.40 257 non-exempt Environmental Spec 1 $37.67 $39.35 $39.92 $41.13 257 2 $39.65 $41.42 $42.02 $43.29 257 3 $41.74 $43.60 $44.23 $45.57 257 4 $43.94 $45.89 $46.56 $47.97 257 5 $46.25 $8,016.67 $96,200.00 $48.31 $8,373.73 $100,484.80 $49.01 $8,495.07 $101,940.80 $50.49 $8,751.60 $105,019.20 211 non-exempt Equip Maint Serv Per 1 $22.62 $23.56 $23.83 $24.54 211 2 $23.81 $24.80 $25.08 $25.83 211 3 $25.06 $26.10 $26.40 $27.19 211 4 $26.38 $27.47 $27.79 $28.62 211 5 $27.77 $4,813.47 $57,761.60 $28.92 $5,012.80 $60,153.60 $29.25 $5,070.00 $60,840.00 $30.13 $5,222.53 $62,670.40 396 non-exempt Equip Operator 1 $27.81 $29.37 $30.13 $31.04 396 2 $29.27 $30.92 $31.72 $32.67 396 3 $30.81 $32.55 $33.39 $34.39 396 4 $32.43 $34.26 $35.15 $36.20 396 5 $34.14 $5,917.60 $71,011.20 $36.06 $6,250.40 $75,004.80 $37.00 $6,413.33 $76,960.00 $38.11 $6,605.73 $79,268.80 397 non-exempt Equip Operator - Lead 1 $29.75 $31.43 $32.24 $33.21 397 2 $31.32 $33.08 $33.94 $34.96 397 3 $32.97 $34.82 $35.73 $36.80 397 4 $34.70 $36.65 $37.61 $38.74 397 5 $36.53 $6,331.87 $75,982.40 $38.58 $6,687.20 $80,246.40 $39.59 $6,862.27 $82,347.20 $40.78 $7,068.53 $84,822.40 250 non-exempt Equip Parts Tech 1 $24.31 $25.04 $25.04 $25.81 250 2 $25.59 $26.36 $26.36 $27.17 250 3 $26.94 $27.75 $27.75 $28.60 250 4 $28.36 $29.21 $29.21 $30.10 250 5 $29.85 $5,174.00 $62,088.00 $30.75 $5,330.00 $63,960.00 $30.75 $5,330.00 $63,960.00 $31.68 $5,491.20 $65,894.40 203 non-exempt Facilities Asst 1 $23.09 $24.44 $25.12 $25.87 203 2 $24.31 $25.73 $26.44 $27.23 203 3 $25.59 $27.08 $27.83 $28.66 203 4 $26.94 $28.50 $29.29 $30.17 203 5 $28.36 $4,915.73 $58,988.80 $30.00 $5,200.00 $62,400.00 $30.83 $5,343.87 $64,126.40 $31.76 $5,505.07 $66,060.80 374 non-exempt Facilities Carpenter 1 $30.11 $31.85 $32.75 $33.73 374 2 $31.69 $33.53 $34.47 $35.50 374 3 $33.36 $35.29 $36.28 $37.37 374 4 $35.12 $37.15 $38.19 $39.34 374 5 $36.97 $6,408.13 $76,897.60 $39.11 $6,779.07 $81,348.80 $40.20 $6,968.00 $83,616.00 $41.41 $7,177.73 $86,132.80 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 375 non-exempt Facilities Elect 1 $30.02 $31.26 $31.61 $32.56 375 2 $31.60 $32.90 $33.27 $34.27 375 3 $33.26 $34.63 $35.02 $36.07 375 4 $35.01 $36.45 $36.86 $37.97 375 5 $36.85 $6,387.33 $76,648.00 $38.37 $6,650.80 $79,809.60 $38.80 $6,725.33 $80,704.00 $39.97 $6,928.13 $83,137.60 373 non-exempt Facilities Maint-L 1 $38.90 $41.15 $42.29 $43.58 373 2 $40.95 $43.32 $44.52 $45.87 373 3 $43.11 $45.60 $46.86 $48.28 373 4 $45.38 $48.00 $49.33 $50.82 373 5 $47.77 $8,280.13 $99,361.60 $50.53 $8,758.53 $105,102.40 $51.93 $9,001.20 $108,014.40 $53.49 $9,271.60 $111,259.20 377 non-exempt Facilities Painter 1 $30.11 $31.85 $32.75 $33.73 377 2 $31.69 $33.53 $34.47 $35.50 377 3 $33.36 $35.29 $36.28 $37.37 377 4 $35.12 $37.15 $38.19 $39.34 377 5 $36.97 $6,408.13 $76,897.60 $39.11 $6,779.07 $81,348.80 $40.20 $6,968.00 $83,616.00 $41.41 $7,177.73 $86,132.80 376 non-exempt Facilities Tech 1 $32.57 $33.79 $34.04 $35.07 376 2 $34.28 $35.57 $35.83 $36.92 376 3 $36.08 $37.44 $37.72 $38.86 376 4 $37.98 $39.41 $39.70 $40.90 376 5 $39.98 $6,929.87 $83,158.40 $41.48 $41.79 $43.05 462 non-exempt Field Service Pers WGW 1 $27.89 $29.51 $30.31 $31.23 462 2 $29.36 $31.06 $31.91 $32.87 462 3 $30.91 $32.69 $33.59 $34.60 462 4 $32.54 $34.41 $35.36 $36.42 462 5 $34.25 $5,936.67 $71,240.00 $36.22 $6,278.13 $75,337.60 $37.22 $6,451.47 $77,417.60 $38.34 $6,645.60 $79,747.20 383 non-exempt Fleet Svcs Coord 1 $28.97 $29.84 $29.84 $30.73 383 2 $30.49 $31.41 $31.41 $32.35 383 3 $32.09 $33.06 $33.06 $34.05 383 4 $33.78 $34.80 $34.80 $35.84 383 5 $35.56 $6,163.73 $73,964.80 $36.63 $6,349.20 $76,190.40 $36.63 $6,349.20 $76,190.40 $37.73 $6,539.87 $78,478.40 489 non-exempt Gas System Tech 1 $30.39 $32.14 $33.01 $34.01 489 2 $31.99 $33.83 $34.75 $35.80 489 3 $33.67 $35.61 $36.58 $37.68 489 4 $35.44 $37.48 $38.50 $39.66 489 5 $37.31 $6,467.07 $77,604.80 $39.45 $6,838.00 $82,056.00 $40.53 $7,025.20 $84,302.40 $41.75 $7,236.67 $86,840.00 TBD non-exempt Assistant Gas Measurement and Control Technician 1 $30.39 $32.14 $33.58 $34.59 2 $31.99 $33.83 $35.35 $36.41 3 $33.67 $35.61 $37.21 $38.33 4 $35.44 $37.48 $39.17 $40.35 5 $37.31 $6,467.07 $77,604.80 $39.45 $6,838.00 $82,056.00 $41.23 $7,146.53 $85,758.40 $42.47 $7,361.47 $88,337.60 463 non-exempt Gas System Tech II 1 $31.91 $33.74 $34.68 $35.72 463 2 $33.59 $35.52 $36.50 $37.60 463 3 $35.36 $37.39 $38.42 $39.58 463 4 $37.22 $39.36 $40.44 $41.66 463 5 $39.18 $6,791.20 $81,494.40 $41.43 $7,181.20 $86,174.40 $42.57 $7,378.80 $88,545.60 $43.85 $7,600.67 $91,208.00 TBD non-exempt Gas Measurement and Control Technician 1 $31.91 $33.74 $33.58 $36.33 2 $33.59 $35.52 $35.35 $38.24 3 $35.36 $37.39 $37.21 $40.25 4 $37.22 $39.36 $39.17 $42.37 5 $39.18 $6,791.20 $81,494.40 $41.43 $7,181.20 $86,174.40 $43.30 $7,505.33 $90,064.00 $44.60 $7,730.67 $92,768.00 TBD non-exempt Assistant Gas and Water Measurement and Control Technician 1 $31.91 $33.74 $35.27 $36.33 2 $33.59 $35.52 $37.13 $38.24 3 $35.36 $37.39 $39.08 $40.25 4 $37.22 $39.36 $41.14 $42.37 5 $39.18 $6,791.20 $81,494.40 $41.43 $7,181.20 $86,174.40 $43.30 $7,505.33 $90,064.00 $44.60 $7,730.67 $92,768.00 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) TBD non-exempt Gas and Water Measurement and Control Tech 1 $30.39 $32.14 $37.04 $38.16 2 $31.99 $33.83 $38.99 $40.17 3 $33.67 $35.61 $41.04 $42.28 4 $35.44 $37.48 $43.20 $44.50 5 $37.31 $6,467.07 $77,604.80 $39.45 $6,838.00 $82,056.00 $45.47 $7,881.47 $94,577.60 $46.84 $8,118.93 $97,427.20 TBD non-exempt Gas and Water Measurement and Control Tech - Lead 1 ------$39.63 $40.82 2 ------$41.72 $42.97 3 ------$43.92 $45.23 4 ------$46.23 $47.61 5 ------$48.66 $8,434.40 $101,212.80 $50.12 $8,687.47 $104,249.60 398 non-exempt Geographic Inform Syst Specialist 1 $40.98 $43.34 $44.53 $45.88 398 2 $43.14 $45.62 $46.87 $48.29 398 3 $45.41 $48.02 $49.34 $50.83 398 4 $47.80 $50.55 $51.94 $53.50 398 5 $50.32 $8,722.13 $104,665.60 $53.21 $9,223.07 $110,676.80 $54.67 $9,476.13 $113,713.60 $56.32 $9,762.13 $117,145.60 390 non-exempt Heavy Equip Oper 1 $31.49 $33.26 $34.13 $35.15 390 2 $33.15 $35.01 $35.93 $37.00 390 3 $34.89 $36.85 $37.82 $38.95 390 4 $36.73 $38.79 $39.81 $41.00 390 5 $38.66 $6,701.07 $80,412.80 $40.83 $7,077.20 $84,926.40 $41.90 $7,262.67 $87,152.00 $43.16 $7,481.07 $89,772.80 391 non-exempt Heavy Equip Oper-L 1 $33.68 $35.58 $36.50 $37.60 391 2 $35.45 $37.45 $38.42 $39.58 391 3 $37.32 $39.42 $40.44 $41.66 391 4 $39.28 $41.49 $42.57 $43.85 391 5 $41.35 $7,167.33 $86,008.00 $43.67 $7,569.47 $90,833.60 $44.81 $7,767.07 $93,204.80 $46.16 $8,001.07 $96,012.80 389 non-exempt HEO/Installer Repairer 1 $34.58 $36.58 $37.57 $38.70 389 2 $36.40 $38.50 $39.55 $40.74 389 3 $38.32 $40.53 $41.63 $42.88 389 4 $40.34 $42.66 $43.82 $45.14 389 5 $42.46 $7,359.73 $88,316.80 $44.90 $7,782.67 $93,392.00 $46.13 $7,995.87 $95,950.40 $47.52 $8,236.80 $98,841.60 508 non-exempt Ind Waste Inspec 1 $31.65 $33.06 $33.54 $34.56 508 2 $33.32 $34.80 $35.30 $36.38 508 3 $35.07 $36.63 $37.16 $38.29 508 4 $36.92 $38.56 $39.12 $40.30 508 5 $38.86 $6,735.73 $80,828.80 $40.59 $7,035.60 $84,427.20 $41.18 $7,137.87 $85,654.40 $42.42 $7,352.80 $88,233.60 258 non-exempt Ind Waste Invtgtr 1 $35.58 $37.15 $37.69 $38.83 258 2 $37.45 $39.10 $39.67 $40.87 258 3 $39.42 $41.16 $41.76 $43.02 258 4 $41.49 $43.33 $43.96 $45.28 258 5 $43.67 $7,569.47 $90,833.60 $45.61 $7,905.73 $94,868.80 $46.27 $8,020.13 $96,241.60 $47.66 $8,261.07 $99,132.80 365 non-exempt Industrial Waste Technician 1 $28.58 $29.85 $30.27 $31.19 365 2 $30.08 $31.42 $31.86 $32.83 365 3 $31.66 $33.07 $33.54 $34.56 365 4 $33.33 $34.81 $35.31 $36.38 365 5 $35.08 $6,080.53 $72,966.40 $36.64 $6,350.93 $76,211.20 $37.17 $6,442.80 $77,313.60 $38.29 $6,636.93 $79,643.20 227 non-exempt Inspector, Field Svc 1 $34.47 $36.05 $36.61 $37.72 227 2 $36.28 $37.95 $38.54 $39.70 227 3 $38.19 $39.95 $40.57 $41.79 227 4 $40.20 $42.05 $42.71 $43.99 227 5 $42.32 $7,335.47 $88,025.60 $44.26 $7,671.73 $92,060.80 $44.96 $7,793.07 $93,516.80 $46.31 $8,027.07 $96,324.80 308 non-exempt Instrum Elec 1 $34.16 $35.57 $35.96 $37.05 308 2 $35.96 $37.44 $37.85 $39.00 308 3 $37.85 $39.41 $39.84 $41.05 308 4 $39.84 $41.48 $41.94 $43.21 308 5 $41.94 $7,269.60 $87,235.20 $43.66 $7,567.73 $90,812.80 $44.15 $7,652.67 $91,832.00 $45.48 $7,883.20 $94,598.40 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 293 non-exempt Junior Museum & Zoo Educator 1 $26.71 $27.76 $28.02 $28.86 293 2 $28.12 $29.22 $29.49 $30.38 293 3 $29.60 $30.76 $31.04 $31.98 293 4 $31.16 $32.38 $32.67 $33.66 293 5 $32.80 $5,685.33 $68,224.00 $34.08 $5,907.20 $70,886.40 $34.39 $5,960.93 $71,531.20 $35.43 $6,141.20 $73,694.40 503 non-exempt Laboratory Tech Wqc 1 $31.40 $32.37 $32.40 $33.36 503 2 $33.05 $34.07 $34.10 $35.12 503 3 $34.79 $35.86 $35.89 $36.97 503 4 $36.62 $37.75 $37.78 $38.92 503 5 $38.55 $6,682.00 $80,184.00 $39.74 $6,888.27 $82,659.20 $39.77 $6,893.47 $82,721.60 $40.97 $7,101.47 $85,217.60 413 non-exempt Landfill Technician 1 $34.91 $36.47 $37.01 $38.13 413 2 $36.75 $38.39 $38.96 $40.14 413 3 $38.68 $40.41 $41.01 $42.25 413 4 $40.72 $42.54 $43.17 $44.47 413 5 $42.86 $7,429.07 $89,148.80 $44.78 $7,761.87 $93,142.40 $45.44 $7,876.27 $94,515.20 $46.81 $8,113.73 $97,364.80 254 non-exempt Librarian 1 $26.84 $27.80 $27.96 $28.79 254 2 $28.25 $29.26 $29.43 $30.31 254 3 $29.74 $30.80 $30.98 $31.91 254 4 $31.30 $32.42 $32.61 $33.59 254 5 $32.95 $5,711.33 $68,536.00 $34.13 $5,915.87 $70,990.40 $34.33 $5,950.53 $71,406.40 $35.36 $6,129.07 $73,548.80 252 non-exempt Library Associate 1 $24.52 $25.27 $25.27 $26.03 252 2 $25.81 $26.60 $26.60 $27.40 252 3 $27.17 $28.00 $28.00 $28.84 252 4 $28.60 $29.47 $29.47 $30.36 252 5 $30.11 $5,219.07 $62,628.80 $31.02 $5,376.80 $64,521.60 $31.02 $5,376.80 $64,521.60 $31.96 $5,539.73 $66,476.80 253 non-exempt Library Specialist 1 $23.20 $23.90 $23.90 $24.62 253 2 $24.42 $25.16 $25.16 $25.92 253 3 $25.71 $26.48 $26.48 $27.28 253 4 $27.06 $27.87 $27.87 $28.72 253 5 $28.48 $4,936.53 $59,238.40 $29.34 $5,085.60 $61,027.20 $29.34 $5,085.60 $61,027.20 $30.23 $5,239.87 $62,878.40 541 non-exempt Lineper/Cable Spl 1 $42.81 $44.75 $45.45 $46.83 541 2 $45.06 $47.11 $47.84 $49.29 541 3 $47.43 $49.59 $50.36 $51.88 541 4 $49.93 $52.20 $53.01 $54.61 541 5 $52.56 $9,110.40 $109,324.80 $54.95 $9,524.67 $114,296.00 $55.80 $9,672.00 $116,064.00 $57.48 $9,963.20 $119,558.40 542 non-exempt Lineper/Cable Spl-L 1 $45.82 $47.90 $48.63 $50.09 542 2 $48.23 $50.42 $51.19 $52.73 542 3 $50.77 $53.07 $53.88 $55.51 542 4 $53.44 $55.86 $56.72 $58.43 542 5 $56.25 $9,750.00 $117,000.00 $58.80 $10,192.00 $122,304.00 $59.71 $10,349.73 $124,196.80 $61.51 $10,661.73 $127,940.80 531 non-exempt Lineperson/Cable Spl-T 1 $40.78 $42.63 $43.29 $44.59 531 2 $42.93 $44.87 $45.57 $46.94 531 3 $45.19 $47.23 $47.97 $49.41 531 4 $47.57 $49.72 $50.49 $52.01 531 5 $50.07 $8,678.80 $104,145.60 $52.34 $9,072.27 $108,867.20 $53.15 $9,212.67 $110,552.00 $54.75 $9,490.00 $113,880.00 532 non-exempt Lineperson/Cable Spl-TL 1 $43.61 $45.59 $46.30 $47.69 532 2 $45.91 $47.99 $48.74 $50.20 532 3 $48.33 $50.52 $51.30 $52.84 532 4 $50.87 $53.18 $54.00 $55.62 532 5 $53.55 $9,282.00 $111,384.00 $55.98 $9,703.20 $116,438.40 $56.84 $9,852.27 $118,227.20 $58.55 $10,148.67 $121,784.00 528 non-exempt Lnper/Cbl Spl-Appren 1 $36.77 $38.45 $39.04 $40.21 528 2 $38.71 $40.47 $41.09 $42.33 528 3 $40.75 $42.60 $43.25 $44.56 528 4 $42.89 $44.84 $45.53 $46.90 528 5 $45.15 $7,826.00 $93,912.00 $47.20 $8,181.33 $98,176.00 $47.93 $8,307.87 $99,694.40 $49.37 $8,557.47 $102,689.60 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 213 non-exempt Mailing Svcs Spec 1 $20.48 $21.12 $21.16 $21.78 213 2 $21.56 $22.23 $22.27 $22.93 213 3 $22.69 $23.40 $23.44 $24.14 213 4 $23.88 $24.63 $24.67 $25.41 213 5 $25.14 $4,357.60 $52,291.20 $25.93 $4,494.53 $53,934.40 $25.97 $4,501.47 $54,017.60 $26.75 $4,636.67 $55,640.00 291 non-exempt Maintenance Mechanic-Welding 1 $33.53 $35.46 $36.44 $37.54 291 2 $35.29 $37.33 $38.36 $39.52 291 3 $37.15 $39.29 $40.38 $41.60 291 4 $39.11 $41.36 $42.50 $43.79 291 5 $41.17 $7,136.13 $85,633.60 $43.54 $7,546.93 $90,563.20 $44.74 $7,754.93 $93,059.20 $46.09 $7,988.93 $95,867.20 346 non-exempt Management Assistant 1 $30.44 $31.40 $31.45 $32.40 346 2 $32.04 $33.05 $33.11 $34.10 346 3 $33.73 $34.79 $34.85 $35.89 346 4 $35.50 $36.62 $36.68 $37.78 346 5 $37.37 $6,477.47 $77,729.60 $38.55 $6,682.00 $80,184.00 $38.61 $6,692.40 $80,308.80 $39.77 $6,893.47 $82,721.60 3460 non-exempt Management Assistant - S 1 $30.44 $31.40 $31.45 $32.40 3460 2 $32.04 $33.05 $33.11 $34.10 3460 3 $33.73 $34.79 $34.85 $35.89 3460 4 $35.50 $36.62 $36.68 $37.78 3460 5 $37.37 $6,477.47 $77,729.60 $38.55 $6,682.00 $80,184.00 $38.61 $6,692.40 $80,308.80 $39.77 $6,893.47 $82,721.60 216 non-exempt Marketing Eng 1 $43.64 $45.17 $45.37 $46.74 216 2 $45.94 $47.55 $47.76 $49.20 216 3 $48.36 $50.05 $50.27 $51.79 216 4 $50.91 $52.68 $52.92 $54.52 216 5 $53.59 $9,288.93 $111,467.20 $55.45 $9,611.33 $115,336.00 $55.71 $9,656.40 $115,876.80 $57.39 $9,947.60 $119,371.20 241 non-exempt Meter Reader 1 $24.31 $25.09 $25.14 $25.90 241 2 $25.59 $26.41 $26.46 $27.26 241 3 $26.94 $27.80 $27.85 $28.69 241 4 $28.36 $29.26 $29.32 $30.20 241 5 $29.85 $5,174.00 $62,088.00 $30.80 $5,338.67 $64,064.00 $30.86 $5,349.07 $64,188.80 $31.79 $5,510.27 $66,123.20 240 non-exempt Meter Reader-Lead 1 $26.01 $26.84 $26.89 $27.71 240 2 $27.38 $28.25 $28.31 $29.17 240 3 $28.82 $29.74 $29.80 $30.70 240 4 $30.34 $31.31 $31.37 $32.32 240 5 $31.94 $5,536.27 $66,435.20 $32.96 $5,713.07 $68,556.80 $33.02 $5,723.47 $68,681.60 $34.02 $5,896.80 $70,761.60 369 non-exempt Meter Shop Lead 1 $29.29 $30.64 $31.14 $32.07 369 2 $30.83 $32.25 $32.78 $33.76 369 3 $32.45 $33.95 $34.50 $35.54 369 4 $34.16 $35.74 $36.32 $37.41 369 5 $35.96 $6,233.07 $74,796.80 $37.62 $6,520.80 $78,249.60 $38.23 $6,626.53 $79,518.40 $39.38 $6,825.87 $81,910.40 552 non-exempt Metering Technician 1 $40.36 $42.19 $42.85 $44.14 552 2 $42.48 $44.41 $45.10 $46.46 552 3 $44.72 $46.75 $47.47 $48.90 552 4 $47.07 $49.21 $49.97 $51.47 552 5 $49.55 $8,588.67 $103,064.00 $51.80 $8,978.67 $107,744.00 $52.60 $9,117.33 $109,408.00 $54.18 $9,391.20 $112,694.40 553 non-exempt Metering Technician – Lead 1 $43.20 $45.16 $45.87 $47.23 553 2 $45.47 $47.54 $48.28 $49.72 553 3 $47.86 $50.04 $50.82 $52.34 553 4 $50.38 $52.67 $53.49 $55.09 553 5 $53.03 $9,191.87 $110,302.40 $55.44 $9,609.60 $115,315.20 $56.30 $9,758.67 $117,104.00 $57.99 $10,051.60 $120,619.20 384 non-exempt Mobile Service Tech 1 $34.41 $35.44 $35.44 $36.52 384 2 $36.22 $37.31 $37.31 $38.44 384 3 $38.13 $39.27 $39.27 $40.46 384 4 $40.14 $41.34 $41.34 $42.59 384 5 $42.25 $7,323.33 $87,880.00 $43.52 $7,543.47 $90,521.60 $43.52 $7,543.47 $90,521.60 $44.83 $7,770.53 $93,246.40 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 381 non-exempt Motor Equip Mech-L 1 $35.06 $36.11 $36.11 $37.21 381 2 $36.91 $38.01 $38.01 $39.17 381 3 $38.85 $40.01 $40.01 $41.23 381 4 $40.89 $42.12 $42.12 $43.40 381 5 $43.04 $7,460.27 $89,523.20 $44.34 $7,685.60 $92,227.20 $44.34 $7,685.60 $92,227.20 $45.68 $7,917.87 $95,014.40 286 non-exempt Motor Equipment Mechanic I 1 $30.36 $31.27 $31.27 $32.21 286 2 $31.96 $32.92 $32.92 $33.91 286 3 $33.64 $34.65 $34.65 $35.69 286 4 $35.41 $36.47 $36.47 $37.57 286 5 $37.27 $6,460.13 $77,521.60 $38.39 $6,654.27 $79,851.20 $38.39 $6,654.27 $79,851.20 $39.55 $6,855.33 $82,264.00 287 non-exempt Motor Equipment Mechanic II 1 $32.78 $33.76 $33.76 $34.78 287 2 $34.50 $35.54 $35.54 $36.61 287 3 $36.32 $37.41 $37.41 $38.54 287 4 $38.23 $39.38 $39.38 $40.57 287 5 $40.24 $6,974.93 $83,699.20 $41.45 $7,184.67 $86,216.00 $41.45 $7,184.67 $86,216.00 $42.70 $7,401.33 $88,816.00 230 non-exempt Offset Equip Op 1 $23.22 $23.94 $23.98 $24.70 230 2 $24.44 $25.20 $25.24 $26.00 230 3 $25.73 $26.53 $26.57 $27.37 230 4 $27.08 $27.93 $27.97 $28.81 230 5 $28.50 $4,940.00 $59,280.00 $29.40 $5,096.00 $61,152.00 $29.44 $5,102.93 $61,235.20 $30.33 $5,257.20 $63,086.40 543 non-exempt Overhead Underground Troubleman 1 $44.98 $47.03 $47.75 $49.18 543 2 $47.35 $49.50 $50.26 $51.77 543 3 $49.84 $52.10 $52.91 $54.49 543 4 $52.46 $54.84 $55.69 $57.36 543 5 $55.22 $9,571.47 $114,857.60 $57.73 $10,006.53 $120,078.40 $58.62 $10,160.80 $121,929.60 $60.38 $10,465.87 $125,590.40 452 non-exempt Park Maint - Lead 1 $29.79 $30.78 $30.88 $31.82 452 2 $31.36 $32.40 $32.50 $33.49 452 3 $33.01 $34.11 $34.21 $35.25 452 4 $34.75 $35.90 $36.01 $37.10 452 5 $36.58 $6,340.53 $76,086.40 $37.79 $6,550.27 $78,603.20 $37.91 $6,571.07 $78,852.80 $39.05 $6,768.67 $81,224.00 451 non-exempt Park Maint Person 1 $25.70 $26.55 $26.64 $27.45 451 2 $27.05 $27.95 $28.04 $28.89 451 3 $28.47 $29.42 $29.52 $30.41 451 4 $29.97 $30.97 $31.07 $32.01 451 5 $31.55 $5,468.67 $65,624.00 $32.60 $5,650.67 $67,808.00 $32.70 $5,668.00 $68,016.00 $33.69 $5,839.60 $70,075.20 281 non-exempt Park Ranger 1 $28.79 $29.66 $29.66 $30.55 281 2 $30.30 $31.22 $31.22 $32.16 281 3 $31.89 $32.86 $32.86 $33.85 281 4 $33.57 $34.59 $34.59 $35.63 281 5 $35.34 $6,125.60 $73,507.20 $36.41 $6,311.07 $75,732.80 $36.41 $6,311.07 $75,732.80 $37.51 $6,501.73 $78,020.80 570 non-exempt Parking Operations Lead 1 $44.20 $46.31 $47.14 $48.55 570 2 $46.53 $48.75 $49.62 $51.11 570 3 $48.98 $51.32 $52.23 $53.80 570 4 $51.56 $54.02 $54.98 $56.63 570 5 $54.27 $9,406.80 $112,881.60 $56.86 $9,855.73 $118,268.80 $57.87 $10,030.80 $120,369.60 $59.61 $10,332.40 $123,988.80 460 non-exempt Parks/Golf Crew-Lead 1 $27.96 $28.90 $28.98 $29.86 460 2 $29.43 $30.42 $30.50 $31.43 460 3 $30.98 $32.02 $32.11 $33.08 460 4 $32.61 $33.70 $33.80 $34.82 460 5 $34.33 $5,950.53 $71,406.40 $35.47 $6,148.13 $73,777.60 $35.58 $6,167.20 $74,006.40 $36.65 $6,352.67 $76,232.00 348 non-exempt Payroll Analyst 1 $29.15 $30.03 $30.03 $30.93 348 2 $30.68 $31.61 $31.61 $32.56 348 3 $32.29 $33.27 $33.27 $34.27 348 4 $33.99 $35.02 $35.02 $36.07 348 5 $35.78 $6,201.87 $74,422.40 $36.86 $6,389.07 $76,668.80 $36.86 $6,389.07 $76,668.80 $37.97 $6,581.47 $78,977.60 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 3480 non-exempt Payroll Analyst - S 1 29.15 $30.03 $30.03 $30.93 3480 2 30.68 $31.61 $31.61 $32.56 3480 3 32.29 $33.27 $33.27 $34.27 3480 4 33.99 $35.02 $35.02 $36.07 3480 5 35.78 $6,201.87 $74,422.40 $36.86 $6,389.07 $76,668.80 $36.86 $6,389.07 $76,668.80 $37.97 $6,581.47 $78,977.60 352 non-exempt Planner 1 $38.43 $39.85 $40.15 $41.34 352 2 $40.45 $41.95 $42.26 $43.52 352 3 $42.58 $44.16 $44.48 $45.81 352 4 $44.82 $46.48 $46.82 $48.22 352 5 $47.18 $8,177.87 $98,134.40 $48.93 $8,481.20 $101,774.40 $49.28 $8,541.87 $102,502.40 $50.76 $8,798.40 $105,580.80 347 non-exempt Planning Arborist 1 $41.76 $43.66 $44.35 $45.70 347 2 $43.96 $45.96 $46.68 $48.10 347 3 $46.27 $48.38 $49.14 $50.63 347 4 $48.70 $50.93 $51.73 $53.29 347 5 $51.26 $8,885.07 $106,620.80 $53.61 $9,292.40 $111,508.80 $54.45 $9,438.00 $113,256.00 $56.09 $9,722.27 $116,667.20 3470 non-exempt Planning Arborist - S 1 $41.76 $43.66 $44.35 $45.70 3470 2 $43.96 $45.96 $46.68 $48.10 3470 3 $46.27 $48.38 $49.14 $50.63 3470 4 $48.70 $50.93 $51.73 $53.29 3470 5 $51.26 $8,885.07 $106,620.80 $53.61 $9,292.40 $111,508.80 $54.45 $9,438.00 $113,256.00 $56.09 $9,722.27 $116,667.20 304 non-exempt Plans Check Engr 1 $42.38 $43.85 $44.07 $45.39 304 2 $44.61 $46.16 $46.39 $47.78 304 3 $46.96 $48.59 $48.83 $50.29 304 4 $49.43 $51.15 $51.40 $52.94 304 5 $52.03 $9,018.53 $108,222.40 $53.84 $9,332.27 $111,987.20 $54.10 $9,377.33 $112,528.00 $55.73 $9,659.87 $115,918.40 513 non-exempt Plans Examiner 1 $36.22 $37.88 $38.48 $39.63 513 2 $38.13 $39.87 $40.51 $41.72 513 3 $40.14 $41.97 $42.64 $43.92 513 4 $42.25 $44.18 $44.88 $46.23 513 5 $44.47 $7,708.13 $92,497.60 $46.51 $8,061.73 $96,740.80 $47.24 $8,188.27 $98,259.20 $48.66 $8,434.40 $101,212.80 517 non-exempt Plant Mechanic 1 $34.53 $35.58 $35.58 $36.64 517 2 $36.35 $37.45 $37.45 $38.57 517 3 $38.26 $39.42 $39.42 $40.60 517 4 $40.27 $41.49 $41.49 $42.74 517 5 $42.39 $7,347.60 $88,171.20 $43.67 $7,569.47 $90,833.60 $43.67 $7,569.47 $90,833.60 $44.99 $7,798.27 $93,579.20 321 non-exempt Police Records Specialist - Lead 1 $27.00 $28.29 $28.79 $29.68 321 2 $28.42 $29.78 $30.31 $31.24 321 3 $29.92 $31.35 $31.91 $32.88 321 4 $31.49 $33.00 $33.59 $34.61 321 5 $33.15 $5,746.00 $68,952.00 $34.74 $6,021.60 $72,259.20 $35.36 $6,129.07 $73,548.80 $36.43 $6,314.53 $75,774.40 313 non-exempt Police Records Specialist I 1 $23.98 $25.13 $25.57 $26.34 313 2 $25.24 $26.45 $26.92 $27.73 313 3 $26.57 $27.84 $28.34 $29.19 313 4 $27.97 $29.31 $29.83 $30.73 313 5 $29.44 $5,102.93 $61,235.20 $30.85 $5,347.33 $64,168.00 $31.40 $5,442.67 $65,312.00 $32.35 $5,607.33 $67,288.00 314 non-exempt Police Records Specialist II 1 $25.23 $26.45 $26.91 $27.72 314 2 $26.56 $27.84 $28.33 $29.18 314 3 $27.96 $29.30 $29.82 $30.72 314 4 $29.43 $30.84 $31.39 $32.34 314 5 $30.98 $5,369.87 $64,438.40 $32.46 $5,626.40 $67,516.80 $33.04 $5,726.93 $68,723.20 $34.04 $5,900.27 $70,803.20 246 non-exempt Power Engr 1 $46.60 $48.22 $48.45 $49.91 246 2 $49.05 $50.76 $51.00 $52.54 246 3 $51.63 $53.43 $53.68 $55.30 246 4 $54.35 $56.24 $56.51 $58.21 246 5 $57.21 $9,916.40 $118,996.80 $59.20 $10,261.33 $123,136.00 $59.48 $10,309.87 $123,718.40 $61.27 $10,620.13 $127,441.60 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 270 non-exempt Prod Arts/Sci Prog 1 $32.39 $33.66 $33.97 $34.99 270 2 $34.09 $35.43 $35.76 $36.83 270 3 $35.88 $37.29 $37.64 $38.77 270 4 $37.77 $39.25 $39.62 $40.81 270 5 $39.76 $6,891.73 $82,700.80 $41.32 $7,162.13 $85,945.60 $41.70 $7,228.00 $86,736.00 $42.96 $7,446.40 $89,356.80 232 non-exempt Prog-Analyst 1 $39.44 $41.71 $42.85 $44.14 232 2 $41.52 $43.91 $45.11 $46.46 232 3 $43.71 $46.22 $47.48 $48.91 232 4 $46.01 $48.65 $49.98 $51.48 232 5 $48.43 $8,394.53 $100,734.40 $51.21 $8,876.40 $106,516.80 $52.61 $9,119.07 $109,428.80 $54.19 $9,392.93 $112,715.20 265 non-exempt Program Assistant 1 $25.00 $25.79 $25.82 $26.62 265 2 $26.32 $27.15 $27.18 $28.02 265 3 $27.70 $28.58 $28.61 $29.49 265 4 $29.16 $30.08 $30.12 $31.04 265 5 $30.69 $5,319.60 $63,835.20 $31.66 $5,487.73 $65,852.80 $31.71 $5,496.40 $65,956.80 $32.67 $5,662.80 $67,953.60 302 non-exempt Program Assistant I 1 $26.51 $27.35 $27.40 $28.22 302 2 $27.91 $28.79 $28.84 $29.71 302 3 $29.38 $30.31 $30.36 $31.27 302 4 $30.93 $31.91 $31.96 $32.92 302 5 $32.56 $5,643.73 $67,724.80 $33.59 $5,822.27 $69,867.20 $33.64 $5,830.93 $69,971.20 $34.65 $6,006.00 $72,072.00 303 non-exempt Program Assistant II 1 $28.51 $29.41 $29.44 $30.33 303 2 $30.01 $30.96 $30.99 $31.93 303 3 $31.59 $32.59 $32.62 $33.61 303 4 $33.25 $34.30 $34.34 $35.38 303 5 $35.00 $6,066.67 $72,800.00 $36.10 $6,257.33 $75,088.00 $36.15 $6,266.00 $75,192.00 $37.24 $6,454.93 $77,459.20 368 non-exempt Program Coordinator 1 $27.96 $29.06 $29.33 $30.21 368 2 $29.43 $30.59 $30.87 $31.80 368 3 $30.98 $32.20 $32.49 $33.47 368 4 $32.61 $33.89 $34.20 $35.23 368 5 $34.33 $5,950.53 $71,406.40 $35.67 $6,182.80 $74,193.60 $36.00 $6,240.00 $74,880.00 $37.08 $6,427.20 $77,126.40 349 non-exempt Project Engineer 1 $46.99 $48.62 $48.83 $50.30 349 2 $49.46 $51.18 $51.40 $52.95 349 3 $52.06 $53.87 $54.11 $55.74 349 4 $54.80 $56.70 $56.96 $58.67 349 5 $57.68 $9,997.87 $119,974.40 $59.68 $10,344.53 $124,134.40 $59.96 $10,393.07 $124,716.80 $61.76 $10,705.07 $128,460.80 3490 non-exempt Project Engineer - S 1 $46.99 $48.62 $48.83 $50.30 3490 2 $49.46 $51.18 $51.40 $52.95 3490 3 $52.06 $53.87 $54.11 $55.74 3490 4 $54.80 $56.70 $56.96 $58.67 3490 5 $57.68 $9,997.87 $119,974.40 $59.68 $10,344.53 $124,134.40 $59.96 $10,393.07 $124,716.80 $61.76 $10,705.07 $128,460.80 209 non-exempt Property Evid Tech 1 $26.11 $27.35 $27.84 $28.68 209 2 $27.48 $28.79 $29.31 $30.19 209 3 $28.93 $30.31 $30.85 $31.78 209 4 $30.45 $31.90 $32.47 $33.45 209 5 $32.05 $5,555.33 $66,664.00 $33.58 $5,820.53 $69,846.40 $34.18 $5,924.53 $71,094.40 $35.21 $6,103.07 $73,236.80 315 non-exempt Public Safety Dispatcher - Lead 1 $40.54 $41.76 $41.76 $43.02 2 $42.67 $43.96 $43.96 $45.28 3 $44.92 $46.27 $46.27 $47.66 4 $47.28 $48.71 $48.71 $50.17 5 $49.77 $8,626.80 $103,521.60 $51.27 $8,886.80 $106,641.60 $51.27 $8,886.80 $106,641.60 $52.81 $9,153.73 $109,844.80 6 $51.02 $52.56 $52.56 $54.14 7 $52.29 $53.86 $53.86 $55.48 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 298 non-exempt Public Safety Dispatcher I 1 $34.30 $35.33 $35.33 $36.40 2 $36.10 $37.19 $37.19 $38.32 3 $38.00 $39.15 $39.15 $40.34 4 $40.00 $41.21 $41.21 $42.46 5 $42.11 $7,299.07 $87,588.80 $43.38 $7,519.20 $90,230.40 $43.38 $7,519.20 $90,230.40 $44.69 $7,746.27 $92,955.20 6 $43.17 $44.47 $44.47 $45.81 7 $44.25 $45.58 $45.58 $46.95 316 non-exempt Public Safety Dispatcher II 1 $36.11 $37.21 $37.21 $38.33 2 $38.01 $39.17 $39.17 $40.35 3 $40.01 $41.23 $41.23 $42.47 4 $42.12 $43.40 $43.40 $44.71 5 $44.34 $7,685.60 $92,227.20 $45.68 $7,917.87 $95,014.40 $45.68 $7,917.87 $95,014.40 $47.06 $8,157.07 $97,884.80 6 $45.44 $46.81 $46.81 $48.22 7 $46.58 $47.98 $47.98 $49.42 262 non-exempt Resource Planner 1 $47.19 $48.61 $48.61 $50.07 2 $49.67 $51.17 $51.17 $52.71 3 $52.28 $53.86 $53.86 $55.48 4 $55.03 $56.69 $56.69 $58.40 5 $57.93 $10,041.20 $120,494.40 $59.67 $10,342.80 $124,113.60 $59.67 $10,342.80 $124,113.60 $61.47 $10,654.80 $127,857.60 366 non-exempt Restoration Lead 1 $33.71 $35.60 $36.55 $37.64 2 $35.48 $37.47 $38.47 $39.62 3 $37.35 $39.44 $40.49 $41.71 4 $39.32 $41.52 $42.62 $43.90 5 $41.39 $7,174.27 $86,091.20 $43.71 $7,576.40 $90,916.80 $44.86 $7,775.73 $93,308.80 $46.21 $8,009.73 $96,116.80 554 non-exempt SCADA Technologist 1 $47.94 $50.69 $52.08 $53.66 2 $50.46 $53.36 $54.82 $56.48 3 $53.12 $56.17 $57.71 $59.45 4 $55.92 $59.13 $60.75 $62.58 5 $58.86 $10,202.40 $122,428.80 $62.24 $10,788.27 $129,459.20 $63.95 $11,084.67 $133,016.00 $65.87 $11,417.47 $137,009.60 385 non-exempt Senior Fleet Services Coordinator 1 $33.27 $34.27 $34.27 $35.29 2 $35.02 $36.07 $36.07 $37.15 3 $36.86 $37.97 $37.97 $39.11 4 $38.80 $39.97 $39.97 $41.17 5 $40.84 $7,078.93 $84,947.20 $42.07 $7,292.13 $87,505.60 $42.07 $7,292.13 $87,505.60 $43.34 $7,512.27 $90,147.20 461 non-exempt Sprinkler Sys Repr 1 $26.14 $27.00 $27.08 $27.89 2 $27.52 $28.42 $28.51 $29.36 3 $28.97 $29.92 $30.01 $30.91 4 $30.49 $31.49 $31.59 $32.54 5 $32.09 $5,562.27 $66,747.20 $33.15 $5,746.00 $68,952.00 $33.25 $5,763.33 $69,160.00 $34.25 $5,936.67 $71,240.00 360 non-exempt Sr Buyer 1 $34.87 $35.93 $35.93 $37.02 2 $36.70 $37.82 $37.82 $38.97 3 $38.63 $39.81 $39.81 $41.02 4 $40.66 $41.90 $41.91 $43.18 5 $42.80 $7,418.67 $89,024.00 $44.10 $7,644.00 $91,728.00 $44.12 $7,647.47 $91,769.60 $45.45 $7,878.00 $94,536.00 3600 non-exempt Sr Buyer - S 1 $34.87 $35.93 $35.93 $37.02 2 $36.70 $37.82 $37.82 $38.97 3 $38.63 $39.81 $39.81 $41.02 4 $40.66 $41.90 $41.91 $43.18 5 $42.80 $7,418.67 $89,024.00 $44.10 $7,644.00 $91,728.00 $44.12 $7,647.47 $91,769.60 $45.45 $7,878.00 $94,536.00 224 non-exempt Sr Chemist 1 $39.02 $40.20 $40.23 $41.45 2 $41.07 $42.32 $42.35 $43.63 3 $43.23 $44.55 $44.58 $45.93 4 $45.50 $46.89 $46.93 $48.35 5 $47.89 $8,300.93 $99,611.20 $49.36 $8,555.73 $102,668.80 $49.40 $8,562.67 $102,752.00 $50.89 $8,820.93 $105,851.20 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 544 non-exempt Sr Industrial Waste Investigator 1 $38.05 $39.75 $40.33 $41.53 2 $40.05 $41.84 $42.45 $43.72 3 $42.16 $44.04 $44.68 $46.02 4 $44.38 $46.36 $47.03 $48.44 5 $46.72 $8,098.13 $97,177.60 $48.80 $8,458.67 $101,504.00 $49.50 $8,580.00 $102,960.00 $50.99 $8,838.27 $106,059.20 544 non-exempt Sr Industrial Waste Investigator 1 $38.05 $39.75 $43.11 $44.40 2 $40.05 $41.84 $45.38 $46.74 3 $42.16 $44.04 $47.77 $49.20 4 $44.38 $46.36 $50.28 $51.79 5 $46.72 $8,098.13 $97,177.60 $48.80 $8,458.67 $101,504.00 $52.93 $9,174.53 $110,094.40 $54.52 $9,450.13 $113,401.60 512 non-exempt Sr Instrum Elect 1 $37.31 $38.85 $39.27 $40.46 2 $39.27 $40.89 $41.34 $42.59 3 $41.34 $43.04 $43.52 $44.83 4 $43.52 $45.31 $45.81 $47.19 5 $45.81 $7,940.40 $95,284.80 $47.69 $8,266.27 $99,195.20 $48.22 $8,358.13 $100,297.60 $49.67 $8,609.47 $103,313.60 251 non-exempt Sr Librarian 1 $30.48 $31.57 $31.75 $32.70 2 $32.08 $33.23 $33.42 $34.42 3 $33.77 $34.98 $35.18 $36.23 4 $35.55 $36.82 $37.03 $38.14 5 $37.42 $6,486.13 $77,833.60 $38.76 $6,718.40 $80,620.80 $38.98 $6,756.53 $81,078.40 $40.15 $6,959.33 $83,512.00 504 non-exempt Sr. Mech 1 $37.13 $38.24 $39.03 $40.20 2 $39.08 $40.25 $41.08 $42.32 3 $41.14 $42.37 $43.24 $44.55 4 $43.30 $44.60 $45.52 $46.89 5 $45.58 $7,900.53 $94,806.40 $46.95 $8,138.00 $97,656.00 $47.92 $8,306.13 $99,673.60 $49.36 $8,555.73 $102,668.80 361 non-exempt Sr Mkt Analyst 1 $43.30 $44.60 $44.60 $45.94 2 $45.58 $46.95 $46.95 $48.36 3 $47.98 $49.42 $49.42 $50.91 4 $50.50 $52.02 $52.02 $53.59 5 $53.16 $9,214.40 $110,572.80 $54.76 $9,491.73 $113,900.80 $54.76 $9,491.73 $113,900.80 $56.41 $9,777.73 $117,332.80 3610 non-exempt Sr Mkt Analyst - S 1 $43.30 $44.60 $44.60 $45.94 2 $45.58 $46.95 $46.95 $48.36 3 $47.98 $49.42 $49.42 $50.91 4 $50.50 $52.02 $52.02 $53.59 5 $53.16 $9,214.40 $110,572.80 $54.76 $9,491.73 $113,900.80 $54.76 $9,491.73 $113,900.80 $56.41 $9,777.73 $117,332.80 506 non-exempt Sr Operator Wqc 1 $39.40 $40.58 $40.58 $41.80 2 $41.47 $42.72 $42.72 $44.00 3 $43.65 $44.97 $44.97 $46.32 4 $45.95 $47.34 $47.34 $48.76 5 $48.37 $8,384.13 $100,609.60 $49.83 $8,637.20 $103,646.40 $49.83 $8,637.20 $103,646.40 $51.33 $8,897.20 $106,766.40 318 non-exempt Sr Planner 1 $44.39 $46.05 $46.37 $47.76 2 $46.73 $48.47 $48.81 $50.27 3 $49.19 $51.02 $51.38 $52.92 4 $51.78 $53.70 $54.08 $55.71 5 $54.51 $9,448.40 $113,380.80 $56.53 $9,798.53 $117,582.40 $56.93 $9,867.87 $118,414.40 $58.64 $10,164.27 $121,971.20 280 non-exempt Sr Ranger 1 $31.85 $32.81 $32.81 $33.80 2 $33.53 $34.54 $34.54 $35.58 3 $35.29 $36.36 $36.36 $37.45 4 $37.15 $38.27 $38.27 $39.42 5 $39.10 $6,777.33 $81,328.00 $40.28 $6,981.87 $83,782.40 $40.28 $6,981.87 $83,782.40 $41.49 $7,191.60 $86,299.20 261 non-exempt Sr Util Field Svc Rep 1 $36.49 $38.58 $39.64 $40.84 2 $38.41 $40.61 $41.73 $42.99 3 $40.43 $42.75 $43.93 $45.25 4 $42.56 $45.00 $46.24 $47.63 5 $44.80 $7,765.33 $93,184.00 $47.37 $8,210.80 $98,529.60 $48.67 $8,436.13 $101,233.60 $50.14 $8,690.93 $104,291.20 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 501 non-exempt Sr Water Sys Oper 1 $37.55 $38.68 $38.68 $39.84 2 $39.53 $40.72 $40.72 $41.94 3 $41.61 $42.86 $42.86 $44.15 4 $43.80 $45.12 $45.12 $46.47 5 $46.10 $7,990.67 $95,888.00 $47.49 $8,231.60 $98,779.20 $47.49 $8,231.60 $98,779.20 $48.92 $8,479.47 $101,753.60 405 non-exempt St Maint Asst 1 $23.72 $24.84 $25.28 $26.04 2 $24.97 $26.15 $26.61 $27.41 3 $26.28 $27.53 $28.01 $28.85 4 $27.66 $28.98 $29.48 $30.37 5 $29.12 $5,047.47 $60,569.60 $30.50 $5,286.67 $63,440.00 $31.03 $5,378.53 $64,542.40 $31.97 $5,541.47 $66,497.60 392 non-exempt St Sweeper Op 1 $27.76 $29.32 $30.08 $30.98 2 $29.22 $30.86 $31.66 $32.61 3 $30.76 $32.48 $33.33 $34.33 4 $32.38 $34.19 $35.08 $36.14 5 $34.08 $5,907.20 $70,886.40 $35.99 $6,238.27 $74,859.20 $36.93 $6,401.20 $76,814.40 $38.04 $6,593.60 $79,123.20 248 non-exempt Storekeeper 1 $25.45 $26.21 $26.21 $27.00 2 $26.79 $27.59 $27.59 $28.42 3 $28.20 $29.04 $29.04 $29.92 4 $29.68 $30.57 $30.57 $31.49 5 $31.24 $5,414.93 $64,979.20 $32.18 $5,577.87 $66,934.40 $32.18 $5,577.87 $66,934.40 $33.15 $5,746.00 $68,952.00 288 non-exempt Storekeeper-L 1 $27.23 $28.05 $28.05 $28.90 2 $28.66 $29.53 $29.53 $30.42 3 $30.17 $31.08 $31.08 $32.02 4 $31.76 $32.72 $32.72 $33.71 5 $33.43 $5,794.53 $69,534.40 $34.44 $5,969.60 $71,635.20 $34.44 $5,969.60 $71,635.20 $35.48 $6,149.87 $73,798.40 545 non-exempt Street Light, Traffic Signal and Fiber – Apprentice 1 $36.54 $38.19 $38.78 $39.95 2 $38.46 $40.20 $40.82 $42.05 3 $40.48 $42.32 $42.97 $44.26 4 $42.61 $44.55 $45.23 $46.59 5 $44.85 $7,774.00 $93,288.00 $46.89 $8,127.60 $97,531.20 $47.61 $8,252.40 $99,028.80 $49.04 $8,500.27 $102,003.20 547 non-exempt Street Light, Traffic Signal and Fiber – Lead 1 $41.31 $43.19 $43.85 $45.18 2 $43.48 $45.46 $46.16 $47.56 3 $45.77 $47.85 $48.59 $50.06 4 $48.18 $50.37 $51.15 $52.69 5 $50.72 $8,791.47 $105,497.60 $53.02 $9,190.13 $110,281.60 $53.84 $9,332.27 $111,987.20 $55.46 $9,613.07 $115,356.80 546 non-exempt Street Light, Traffic Signal and Fiber Technician 1 $38.61 $40.36 $40.97 $42.21 2 $40.64 $42.48 $43.13 $44.43 3 $42.78 $44.72 $45.40 $46.77 4 $45.03 $47.07 $47.79 $49.23 5 $47.40 $8,216.00 $98,592.00 $49.55 $8,588.67 $103,064.00 $50.31 $8,720.40 $104,644.80 $51.82 $8,982.13 $107,785.60 549 non-exempt Substation Electrician 1 $42.11 $44.03 $44.71 $46.05 2 $44.33 $46.35 $47.06 $48.47 3 $46.66 $48.79 $49.54 $51.02 4 $49.12 $51.36 $52.15 $53.71 5 $51.71 $8,963.07 $107,556.80 $54.06 $9,370.40 $112,444.80 $54.89 $9,514.27 $114,171.20 $56.54 $9,800.27 $117,603.20 548 non-exempt Substation Electrician - Apprentice 1 $39.87 $41.68 $42.32 $43.60 2 $41.97 $43.87 $44.55 $45.89 3 $44.18 $46.18 $46.89 $48.30 4 $46.50 $48.61 $49.36 $50.84 5 $48.95 $8,484.67 $101,816.00 $51.17 $8,869.47 $106,433.60 $51.96 $9,006.40 $108,076.80 $53.52 $9,276.80 $111,321.60 550 non-exempt Substation Electrician - Lead 1 $45.06 $47.11 $47.83 $49.29 2 $47.43 $49.59 $50.35 $51.88 3 $49.93 $52.20 $53.00 $54.61 4 $52.56 $54.95 $55.79 $57.48 5 $55.33 $9,590.53 $115,086.40 $57.84 $10,025.60 $120,307.20 $58.73 $10,179.87 $122,158.40 $60.50 $10,486.67 $125,840.00 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 326 non-exempt Surveying Asst 1 $32.06 $33.53 $34.06 $35.09 2 $33.75 $35.29 $35.85 $36.94 3 $35.53 $37.15 $37.74 $38.88 4 $37.40 $39.11 $39.73 $40.93 5 $39.37 $6,824.13 $81,889.60 $41.17 $7,136.13 $85,633.60 $41.82 $7,248.80 $86,985.60 $43.08 $7,467.20 $89,606.40 325 non-exempt Surveyor, Public Wks 1 $34.89 $36.48 $37.07 $38.18 2 $36.73 $38.40 $39.02 $40.19 3 $38.66 $40.42 $41.07 $42.30 4 $40.69 $42.55 $43.23 $44.53 5 $42.83 $7,423.87 $89,086.40 $44.79 $7,763.60 $93,163.20 $45.50 $7,886.67 $94,640.00 $46.87 $8,124.13 $97,489.60 362 non-exempt Technologist 1 $48.82 $51.62 $53.04 $54.63 2 $51.39 $54.34 $55.83 $57.51 3 $54.09 $57.20 $58.77 $60.54 4 $56.94 $60.21 $61.86 $63.73 5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40 3620 non-exempt Technologist - S 1 $48.82 $51.62 $53.04 $54.63 2 $51.39 $54.34 $55.83 $57.51 3 $54.09 $57.20 $58.77 $60.54 4 $56.94 $60.21 $61.86 $63.73 5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40 229 non-exempt Theater Specialist 1 $34.65 $36.01 $36.33 $37.42 2 $36.47 $37.90 $38.24 $39.39 3 $38.39 $39.89 $40.25 $41.46 4 $40.41 $41.99 $42.37 $43.64 5 $42.54 $7,373.60 $88,483.20 $44.20 $7,661.33 $91,936.00 $44.60 $7,730.67 $92,768.00 $45.94 $7,962.93 $95,555.20 406 non-exempt Traf Cont Maint I 1 $27.76 $29.08 $29.58 $30.47 2 $29.22 $30.61 $31.14 $32.07 3 $30.76 $32.22 $32.78 $33.76 4 $32.38 $33.92 $34.50 $35.54 5 $34.08 $5,907.20 $70,886.40 $35.70 $6,188.00 $74,256.00 $36.32 $6,295.47 $75,545.60 $37.41 $6,484.40 $77,812.80 412 non-exempt Traf Cont Maint Ii 1 $25.70 $26.92 $27.39 $28.22 2 $27.05 $28.34 $28.83 $29.70 3 $28.47 $29.83 $30.35 $31.26 4 $29.97 $31.40 $31.95 $32.91 5 $31.55 $5,468.67 $65,624.00 $33.05 $5,728.67 $68,744.00 $33.63 $5,829.20 $69,950.40 $34.64 $6,004.27 $72,051.20 407 non-exempt Traf Cont Maint-L 1 $29.70 $31.11 $31.65 $32.60 2 $31.26 $32.75 $33.32 $34.32 3 $32.91 $34.47 $35.07 $36.13 4 $34.64 $36.28 $36.92 $38.03 5 $36.46 $6,319.73 $75,836.80 $38.19 $6,619.60 $79,435.20 $38.86 $6,735.73 $80,828.80 $40.03 $6,938.53 $83,262.40 575 non-exempt Traffic Engineering Lead 1 $49.43 $51.15 $51.39 $52.93 2 $52.03 $53.84 $54.09 $55.72 3 $54.77 $56.67 $56.94 $58.65 4 $57.65 $59.65 $59.94 $61.74 5 $60.68 $10,517.87 $126,214.40 $62.79 $10,883.60 $130,603.20 $63.09 $10,935.60 $131,227.20 $64.99 $11,264.93 $135,179.20 435 non-exempt Tree Maint Asst 1 $24.80 $25.77 $26.01 $26.81 2 $26.10 $27.13 $27.38 $28.22 3 $27.47 $28.56 $28.82 $29.70 4 $28.92 $30.06 $30.34 $31.26 5 $30.44 $5,276.27 $63,315.20 $31.64 $5,484.27 $65,811.20 $31.94 $5,536.27 $66,435.20 $32.90 $5,702.67 $68,432.00 434 non-exempt Tree Maintenance Specialist 1 $28.93 $30.07 $30.36 $31.27 2 $30.45 $31.65 $31.96 $32.92 3 $32.05 $33.32 $33.64 $34.65 4 $33.74 $35.07 $35.41 $36.47 5 $35.52 $6,156.80 $73,881.60 $36.92 $6,399.47 $76,793.60 $37.27 $6,460.13 $77,521.60 $38.39 $6,654.27 $79,851.20 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 430 non-exempt Tree Trim/Ln Clr 1 $28.48 $29.60 $29.89 $30.78 2 $29.98 $31.16 $31.46 $32.40 3 $31.56 $32.80 $33.12 $34.11 4 $33.22 $34.53 $34.86 $35.91 5 $34.97 $6,061.47 $72,737.60 $36.35 $6,300.67 $75,608.00 $36.69 $6,359.60 $76,315.20 $37.80 $6,552.00 $78,624.00 431 non-exempt Tree Trim/Ln Clr-L 1 $30.46 $31.67 $31.98 $32.94 2 $32.06 $33.34 $33.66 $34.67 3 $33.75 $35.09 $35.43 $36.49 4 $35.53 $36.94 $37.29 $38.41 5 $37.40 $6,482.67 $77,792.00 $38.88 $6,739.20 $80,870.40 $39.25 $6,803.33 $81,640.00 $40.43 $7,007.87 $84,094.40 432 non-exempt Tree Trm/Ln Clr Asst 1 $26.84 $27.90 $28.17 $29.01 2 $28.25 $29.37 $29.65 $30.54 3 $29.74 $30.92 $31.21 $32.15 4 $31.31 $32.55 $32.85 $33.84 5 $32.96 $5,713.07 $68,556.80 $34.26 $5,938.40 $71,260.80 $34.58 $5,993.87 $71,926.40 $35.62 $6,174.13 $74,089.60 223 non-exempt Util Acctg Tech 1 $26.41 $27.20 $27.20 $28.03 2 $27.80 $28.63 $28.63 $29.51 3 $29.26 $30.14 $30.14 $31.06 4 $30.80 $31.73 $31.73 $32.69 5 $32.42 $5,619.47 $67,433.60 $33.40 $5,789.33 $69,472.00 $33.40 $5,789.33 $69,472.00 $34.41 $5,964.40 $71,572.80 272 non-exempt Util Comp Tech 1 $41.31 $43.19 $43.85 $45.18 2 $43.48 $45.46 $46.16 $47.56 3 $45.77 $47.85 $48.59 $50.06 4 $48.18 $50.37 $51.15 $52.69 5 $50.72 $8,791.47 $105,497.60 $53.02 $9,190.13 $110,281.60 $53.84 $9,332.27 $111,987.20 $55.46 $9,613.07 $115,356.80 272 non-exempt Util Comp Tech 1 $41.31 $43.19 $45.45 $46.83 2 $43.48 $45.46 $47.84 $49.29 3 $45.77 $47.85 $50.36 $51.88 4 $48.18 $50.37 $53.01 $54.61 5 $50.72 $8,791.47 $105,497.60 $53.02 $9,190.13 $110,281.60 $55.80 $9,672.00 $116,064.00 $57.48 $9,963.20 $119,558.40 273 non-exempt Util Comp Tech-L 1 $44.19 $46.20 $46.90 $48.31 2 $46.52 $48.63 $49.37 $50.85 3 $48.97 $51.19 $51.97 $53.53 4 $51.55 $53.88 $54.71 $56.35 5 $54.26 $9,405.07 $112,860.80 $56.72 $9,831.47 $117,977.60 $57.59 $9,982.27 $119,787.20 $59.32 $10,282.13 $123,385.60 273 non-exempt Util Comp Tech-L 1 $44.19 $46.20 $48.63 $50.09 2 $46.52 $48.63 $51.19 $52.73 3 $48.97 $51.19 $53.88 $55.51 4 $51.55 $53.88 $56.72 $58.43 5 $54.26 $9,405.07 $112,860.80 $56.72 $9,831.47 $117,977.60 $59.71 $10,349.73 $124,196.80 $61.51 $10,661.73 $127,940.80 219 non-exempt Util Credit/Col Spec 1 $31.47 $32.40 $32.40 $33.38 2 $33.13 $34.11 $34.11 $35.14 3 $34.87 $35.91 $35.91 $36.99 4 $36.70 $37.80 $37.80 $38.94 5 $38.63 $6,695.87 $80,350.40 $39.79 $6,896.93 $82,763.20 $39.79 $6,896.93 $82,763.20 $40.99 $7,104.93 $85,259.20 310 non-exempt Util Engr Estimator 1 $41.03 $42.45 $42.66 $43.95 2 $43.19 $44.68 $44.90 $46.26 3 $45.46 $47.03 $47.26 $48.69 4 $47.85 $49.51 $49.75 $51.25 5 $50.37 $8,730.80 $104,769.60 $52.12 $9,034.13 $108,409.60 $52.37 $9,077.47 $108,929.60 $53.95 $9,351.33 $112,216.00 486 non-exempt Util Fld Svcs Rep 1 $34.12 $36.09 $37.08 $38.19 2 $35.92 $37.99 $39.03 $40.20 3 $37.81 $39.99 $41.08 $42.32 4 $39.80 $42.09 $43.24 $44.55 5 $41.89 $7,260.93 $87,131.20 $44.30 $7,678.67 $92,144.00 $45.52 $7,890.13 $94,681.60 $46.89 $8,127.60 $97,531.20 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 480 non-exempt Util Install/Rep 1 $33.27 $35.18 $36.15 $37.24 2 $35.02 $37.03 $38.05 $39.20 3 $36.86 $38.98 $40.05 $41.26 4 $38.80 $41.03 $42.16 $43.43 5 $40.84 $7,078.93 $84,947.20 $43.19 $7,486.27 $89,835.20 $44.38 $7,692.53 $92,310.40 $45.72 $7,924.80 $95,097.60 481 non-exempt Util Install/Rep Ast 1 $28.22 $29.84 $30.66 $31.58 2 $29.70 $31.41 $32.27 $33.24 3 $31.26 $33.06 $33.97 $34.99 4 $32.91 $34.80 $35.76 $36.83 5 $34.64 $6,004.27 $72,051.20 $36.63 $6,349.20 $76,190.40 $37.64 $6,524.27 $78,291.20 $38.77 $6,720.13 $80,641.60 479 non-exempt Util Install/Rep-L 1 $36.31 $38.39 $39.44 $40.64 2 $38.22 $40.41 $41.52 $42.78 3 $40.23 $42.54 $43.71 $45.03 4 $42.35 $44.78 $46.01 $47.40 5 $44.58 $7,727.20 $92,726.40 $47.14 $8,170.93 $98,051.20 $48.43 $8,394.53 $100,734.40 $49.89 $8,647.60 $103,771.20 363 non-exempt Util Key Acct Rep 1 $40.16 $41.35 $41.35 $42.61 2 $42.27 $43.53 $43.53 $44.85 3 $44.49 $45.82 $45.82 $47.21 4 $46.83 $48.23 $48.23 $49.69 5 $49.29 $8,543.60 $102,523.20 $50.77 $8,800.13 $105,601.60 $50.77 $8,800.13 $105,601.60 $52.30 $9,065.33 $108,784.00 3630 non-exempt Util Key Acct Rep -S 1 $40.16 $41.35 $41.35 $42.61 2 $42.27 $43.53 $43.53 $44.85 3 $44.49 $45.82 $45.82 $47.21 4 $46.83 $48.23 $48.23 $49.69 5 $49.29 $8,543.60 $102,523.20 $50.77 $8,800.13 $105,601.60 $50.77 $8,800.13 $105,601.60 $52.30 $9,065.33 $108,784.00 271 non-exempt Util Locator 1 $31.32 $33.13 $34.03 $35.06 2 $32.97 $34.87 $35.82 $36.91 3 $34.70 $36.70 $37.71 $38.85 4 $36.53 $38.63 $39.69 $40.89 5 $38.45 $6,664.67 $79,976.00 $40.66 $7,047.73 $84,572.80 $41.78 $7,241.87 $86,902.40 $43.04 $7,460.27 $89,523.20 215 non-exempt Util Marketing Program Admin 1 $38.15 $39.29 $39.29 $40.48 2 $40.16 $41.36 $41.36 $42.61 3 $42.27 $43.54 $43.54 $44.85 4 $44.49 $45.83 $45.83 $47.21 5 $46.83 $8,117.20 $97,406.40 $48.24 $8,361.60 $100,339.20 $48.24 $8,361.60 $100,339.20 $49.69 $8,612.93 $103,355.20 233 non-exempt Util Rate Analyst 1 $36.77 $37.88 $37.88 $39.02 2 $38.71 $39.87 $39.87 $41.07 3 $40.75 $41.97 $41.97 $43.23 4 $42.89 $44.18 $44.18 $45.51 5 $45.15 $7,826.00 $93,912.00 $46.51 $8,061.73 $96,740.80 $46.51 $8,061.73 $96,740.80 $47.91 $8,304.40 $99,652.80 307 non-exempt Util Syst Oper 1 $47.94 $50.11 $50.89 $52.42 2 $50.46 $52.75 $53.57 $55.18 3 $53.12 $55.53 $56.39 $58.08 4 $55.92 $58.45 $59.36 $61.14 5 $58.86 $10,202.40 $122,428.80 $61.53 $10,665.20 $127,982.40 $62.48 $10,829.87 $129,958.40 $64.36 $11,155.73 $133,868.80 322 non-exempt Util Syst Oper in Training 1 $45.54 $47.60 $48.35 $49.80 2 $47.94 $50.11 $50.89 $52.42 3 $50.46 $52.75 $53.57 $55.18 4 $53.12 $55.53 $56.39 $58.08 5 $55.92 $9,692.80 $116,313.60 $58.45 $10,131.33 $121,576.00 $59.36 $10,289.07 $123,468.80 $61.14 $10,597.60 $127,171.20 284 non-exempt Utilities Engineer Estimator Lead 1 $43.90 $45.41 $45.64 $47.02 2 $46.21 $47.80 $48.04 $49.49 3 $48.64 $50.32 $50.57 $52.09 4 $51.20 $52.97 $53.23 $54.83 5 $53.89 $9,340.93 $112,091.20 $55.76 $9,665.07 $115,980.80 $56.03 $9,711.87 $116,542.40 $57.72 $10,004.80 $120,057.60 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 290 non-exempt Utl Install Repair Lead-Welding Cert 1 $37.15 $39.29 $40.37 $41.59 2 $39.11 $41.36 $42.49 $43.78 3 $41.17 $43.54 $44.73 $46.08 4 $43.34 $45.83 $47.08 $48.50 5 $45.62 $7,907.47 $94,889.60 $48.24 $8,361.60 $100,339.20 $49.56 $8,590.40 $103,084.80 $51.05 $8,848.67 $106,184.00 289 non-exempt Utl Install Repair-Welding Cert 1 $34.58 $36.58 $37.57 $38.70 2 $36.40 $38.50 $39.55 $40.74 3 $38.32 $40.53 $41.63 $42.88 4 $40.34 $42.66 $43.82 $45.14 5 $42.46 $7,359.73 $88,316.80 $44.90 $7,782.67 $93,392.00 $46.13 $7,995.87 $95,950.40 $47.52 $8,236.80 $98,841.60 278 non-exempt Veterinarian Tech 1 $25.18 $26.03 $26.12 $26.90 2 $26.51 $27.40 $27.49 $28.32 3 $27.91 $28.84 $28.94 $29.81 4 $29.38 $30.36 $30.46 $31.38 5 $30.93 $5,361.20 $64,334.40 $31.96 $5,539.73 $66,476.80 $32.06 $5,557.07 $66,684.80 $33.03 $5,725.20 $68,702.40 274 non-exempt Volunteer Coord 1 $29.41 $30.55 $30.83 $31.76 2 $30.96 $32.16 $32.45 $33.43 3 $32.59 $33.85 $34.16 $35.19 4 $34.30 $35.63 $35.96 $37.04 5 $36.10 $6,257.33 $75,088.00 $37.51 $6,501.73 $78,020.80 $37.85 $6,560.67 $78,728.00 $38.99 $6,758.27 $81,099.20 482 non-exempt Water Meter Rep Asst 1 $24.06 $25.18 $25.57 $26.34 2 $25.33 $26.50 $26.92 $27.73 3 $26.66 $27.89 $28.34 $29.19 4 $28.06 $29.36 $29.83 $30.73 5 $29.54 $5,120.27 $61,443.20 $30.90 $5,356.00 $64,272.00 $31.40 $5,442.67 $65,312.00 $32.35 $5,607.33 $67,288.00 484 non-exempt Water Meter Repair 1 $26.65 $27.88 $28.33 $29.18 2 $28.05 $29.35 $29.82 $30.72 3 $29.53 $30.89 $31.39 $32.34 4 $31.08 $32.52 $33.04 $34.04 5 $32.72 $5,671.47 $68,057.60 $34.23 $5,933.20 $71,198.40 $34.78 $6,028.53 $72,342.40 $35.83 $6,210.53 $74,526.40 499 non-exempt Water Sys Oper I 1 $28.98 $29.86 $29.86 $30.75 2 $30.50 $31.43 $31.43 $32.37 3 $32.11 $33.08 $33.08 $34.07 4 $33.80 $34.82 $34.82 $35.86 5 $35.58 $6,167.20 $74,006.40 $36.65 $6,352.67 $76,232.00 $36.65 $6,352.67 $76,232.00 $37.75 $6,543.33 $78,520.00 507 non-exempt Water Sys Oper II 1 $33.12 $34.11 $34.11 $35.12 2 $34.86 $35.90 $35.90 $36.97 3 $36.69 $37.79 $37.79 $38.92 4 $38.62 $39.78 $39.78 $40.97 5 $40.65 $7,046.00 $84,552.00 $41.87 $7,257.47 $87,089.60 $41.87 $7,257.47 $87,089.60 $43.13 $7,475.87 $89,710.40 500 non-exempt WQC Plt Oper I 1 $30.41 $31.32 $31.32 $32.26 2 $32.01 $32.97 $32.97 $33.96 3 $33.69 $34.70 $34.70 $35.75 4 $35.46 $36.53 $36.53 $37.63 5 $37.33 $6,470.53 $77,646.40 $38.45 $6,664.67 $79,976.00 $38.45 $6,664.67 $79,976.00 $39.61 $6,865.73 $82,388.80 509 non-exempt WQC Plt Oper II 1 $34.74 $35.78 $35.78 $36.86 2 $36.57 $37.66 $37.66 $38.80 3 $38.49 $39.64 $39.64 $40.84 4 $40.52 $41.73 $41.73 $42.99 5 $42.65 $7,392.67 $88,712.00 $43.93 $7,614.53 $91,374.40 $43.93 $7,614.53 $91,374.40 $45.25 $7,843.33 $94,120.00 510 non-exempt WQC Plt Oper Trn 1 $26.77 $27.57 $27.57 $28.41 2 $28.18 $29.02 $29.02 $29.90 3 $29.66 $30.55 $30.55 $31.47 4 $31.22 $32.16 $32.16 $33.13 5 $32.86 $5,695.73 $68,348.80 $33.85 $5,867.33 $70,408.00 $33.85 $5,867.33 $70,408.00 $34.87 $6,044.13 $72,529.60 City of Palo Alto SEIU Salary Schedule Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob Code Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017) 226 non-exempt Wtr Mtr Crs Cn Tec 1 $27.34 $28.60 $29.07 $29.93 2 $28.78 $30.10 $30.60 $31.51 3 $30.29 $31.68 $32.21 $33.17 4 $31.88 $33.35 $33.90 $34.92 5 $33.56 $5,817.07 $69,804.80 $35.11 $6,085.73 $73,028.80 $35.68 $6,184.53 $74,214.40 $36.76 $6,371.73 $76,460.80 Limited Hourly 2014-2017 Salary Schedule FLSA Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 1 $22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 2 $23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 3 $24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 4 $25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Step 5 $27.31 Step 1 $25.52 Step 1 $26.03 Step 1 $26.03 Step 1 $26.55 Step 1 $26.55 Step 2 $26.86 Step 2 $27.40 Step 2 $27.40 Step 2 $27.95 Step 2 $27.95 Step 3 $28.27 Step 3 $28.84 Step 3 $28.84 Step 3 $29.42 Step 3 $29.42 Step 4 $29.76 Step 4 $30.36 Step 4 $30.36 Step 4 $30.97 Step 4 $30.97 Step 5 $31.33 Step 5 $31.96 Step 5 $31.96 Step 5 $32.60 Step 5 $32.60 Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 1 $22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 2 $23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 3 $24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 4 $25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Step 5 $27.31 Step 1 $19.74 Step 1 $20.13 Step 1 $20.13 Step 1 $20.54 Step 1 $20.54 Step 2 $20.78 Step 2 $21.19 Step 2 $21.19 Step 2 $21.62 Step 2 $21.62 Step 3 $21.87 Step 3 $22.31 Step 3 $22.31 Step 3 $22.76 Step 3 $22.76 Step 4 $23.02 Step 4 $23.48 Step 4 $23.48 Step 4 $23.96 Step 4 $23.96 Step 5 $24.23 Step 5 $24.72 Step 5 $24.72 Step 5 $25.22 Step 5 $25.22 Step 1 $17.31 Step 1 $17.66 Step 1 $17.66 Step 1 $18.01 Step 1 $18.01 Step 2 $18.22 Step 2 $18.59 Step 2 $18.59 Step 2 $18.96 Step 2 $18.96 Step 3 $19.18 Step 3 $19.57 Step 3 $19.57 Step 3 $19.96 Step 3 $19.96 Step 4 $20.19 Step 4 $20.60 Step 4 $20.60 Step 4 $21.01 Step 4 $21.01 Step 5 $21.25 Step 5 $21.68 Step 5 $21.68 Step 5 $22.12 Step 5 $22.12 Step 1 $13.98 Step 1 $14.27 Step 1 $14.27 Step 1 $14.56 Step 1 $14.56 Step 2 $14.72 Step 2 $15.02 Step 2 $15.02 Step 2 $15.33 Step 2 $15.33 Step 3 $15.49 Step 3 $15.81 Step 3 $15.81 Step 3 $16.14 Step 3 $16.14 Step 4 $16.31 Step 4 $16.64 Step 4 $16.64 Step 4 $16.99 Step 4 $16.99 Step 5 $17.17 Step 5 $17.52 Step 5 $17.52 Step 5 $17.88 Step 5 $17.88 Salary Effective 07/01/2016 915 Non- exempt Assistant Park Ranger 916 Non- exempt Building Serviceperson Salary Effective 01/01/2016 Salary Effective 07/01/2016 910 Non- exempt Administrative Specialist I 913 Non- exempt Administrative Specialist II Job Code Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 917 Non- exempt Clerical Assistant 918 Non- exempt Custodial Aide Attachment O, Exhibit 3 Limited Hourly 2014-2017 Salary Schedule FLSA Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Salary Effective 07/01/2016 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Job Code Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Step 1 $16.36 Step 1 $16.70 Step 1 $16.70 Step 1 $17.03 Step 1 $17.03 Step 2 $17.22 Step 2 $17.58 Step 2 $17.58 Step 2 $17.93 Step 2 $17.93 Step 3 $18.13 Step 3 $18.50 Step 3 $18.50 Step 3 $18.87 Step 3 $18.87 Step 4 $19.08 Step 4 $19.47 Step 4 $19.47 Step 4 $19.86 Step 4 $19.86 Step 5 $20.08 Step 5 $20.49 Step 5 $20.49 Step 5 $20.90 Step 5 $20.90 Step 1 $16.08 Step 1 $16.41 Step 1 $16.41 Step 1 $16.74 Step 1 $16.74 Step 2 $16.93 Step 2 $17.27 Step 2 $17.27 Step 2 $17.62 Step 2 $17.62 Step 3 $17.82 Step 3 $18.18 Step 3 $18.18 Step 3 $18.55 Step 3 $18.55 Step 4 $18.76 Step 4 $19.14 Step 4 $19.14 Step 4 $19.53 Step 4 $19.53 Step 5 $19.75 Step 5 $20.15 Step 5 $20.15 Step 5 $20.56 Step 5 $20.56 Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $11.24 Step 1 $12.00 Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $11.83 Step 2 $12.63 Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $12.45 Step 3 $13.29 Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $13.10 Step 4 $13.99 Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $13.79 Step 5 $14.73 Step 1 $20.20 Step 1 $20.62 Step 1 $20.62 Step 1 $21.02 Step 1 $21.02 Step 2 $21.26 Step 2 $21.70 Step 2 $21.70 Step 2 $22.13 Step 2 $22.13 Step 3 $22.38 Step 3 $22.84 Step 3 $22.84 Step 3 $23.29 Step 3 $23.29 Step 4 $23.56 Step 4 $24.04 Step 4 $24.04 Step 4 $24.52 Step 4 $24.52 Step 5 $24.80 Step 5 $25.30 Step 5 $25.30 Step 5 $25.81 Step 5 $25.81 Step 1 $24.61 Step 1 $25.10 Step 1 $25.10 Step 1 $25.60 Step 1 $25.60 Step 2 $25.90 Step 2 $26.42 Step 2 $26.42 Step 2 $26.95 Step 2 $26.95 Step 3 $27.26 Step 3 $27.81 Step 3 $27.81 Step 3 $28.37 Step 3 $28.37 Step 4 $28.69 Step 4 $29.27 Step 4 $29.27 Step 4 $29.86 Step 4 $29.86 Step 5 $30.20 Step 5 $30.81 Step 5 $30.81 Step 5 $31.43 Step 5 $31.43 Step 1 $28.31 Step 1 $28.89 Step 1 $28.89 Step 1 $29.46 Step 1 $29.46 Step 2 $29.80 Step 2 $30.41 Step 2 $30.41 Step 2 $31.01 Step 2 $31.01 Step 3 $31.37 Step 3 $32.01 Step 3 $32.01 Step 3 $32.64 Step 3 $32.64 Step 4 $33.02 Step 4 $33.69 Step 4 $33.69 Step 4 $34.36 Step 4 $34.36 Step 5 $34.76 Step 5 $35.46 Step 5 $35.46 Step 5 $36.17 Step 5 $36.17 919 Non- exempt Custodial Assistant 920 Non- exempt House Manager 923 Non- exempt Instructor II 982 Non-exempt Instructor III 921 Non- exempt Instructor Aide 922 Non- exempt Instructor I Limited Hourly 2014-2017 Salary Schedule FLSA Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Salary Effective 07/01/2016 Salary Effective 01/01/2016 Salary Effective 07/01/2016Job Code Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Step 1 $25.98 Step 1 $26.50 Step 1 $26.50 Step 1 $27.03 Step 1 $27.03 Step 2 $27.35 Step 2 $27.89 Step 2 $27.89 Step 2 $28.45 Step 2 $28.45 Step 3 $28.79 Step 3 $29.36 Step 3 $29.36 Step 3 $29.95 Step 3 $29.95 Step 4 $30.30 Step 4 $30.90 Step 4 $30.90 Step 4 $31.53 Step 4 $31.53 Step 5 $31.89 Step 5 $32.53 Step 5 $32.53 Step 5 $33.19 Step 5 $33.19 Step 1 $19.33 Step 1 $19.73 Step 1 $19.73 Step 1 $20.13 Step 1 $20.13 Step 2 $20.35 Step 2 $20.77 Step 2 $20.77 Step 2 $21.19 Step 2 $21.19 Step 3 $21.42 Step 3 $21.86 Step 3 $21.86 Step 3 $22.30 Step 3 $22.30 Step 4 $22.55 Step 4 $23.01 Step 4 $23.01 Step 4 $23.47 Step 4 $23.47 Step 5 $23.74 Step 5 $24.22 Step 5 $24.22 Step 5 $24.71 Step 5 $24.71 Step 1 $11.85 Step 1 $12.09 Step 1 $12.09 Step 1 $12.34 Step 1 $12.34 Step 2 $12.47 Step 2 $12.73 Step 2 $12.73 Step 2 $12.99 Step 2 $12.99 Step 3 $13.13 Step 3 $13.40 Step 3 $13.40 Step 3 $13.67 Step 3 $13.67 Step 4 $13.82 Step 4 $14.11 Step 4 $14.11 Step 4 $14.39 Step 4 $14.39 Step 5 $14.55 Step 5 $14.85 Step 5 $14.85 Step 5 $15.15 Step 5 $15.15 Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $16.20 Step 1 $16.20 Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $17.05 Step 2 $17.05 Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $17.95 Step 3 $17.95 Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $18.89 Step 4 $18.89 Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $19.88 Step 5 $19.88 Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $16.20 Step 1 $16.20 Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $17.05 Step 2 $17.05 Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $17.95 Step 3 $17.95 Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $18.89 Step 4 $18.89 Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $19.88 Step 5 $19.88 Step 1 $19.33 Step 1 $19.73 Step 1 $19.73 Step 1 $20.13 Step 1 $20.13 Step 2 $20.35 Step 2 $20.77 Step 2 $20.77 Step 2 $21.19 Step 2 $21.19 Step 3 $21.42 Step 3 $21.86 Step 3 $21.86 Step 3 $22.30 Step 3 $22.30 Step 4 $22.55 Step 4 $23.01 Step 4 $23.01 Step 4 $23.47 Step 4 $23.47 Step 5 $23.74 Step 5 $24.22 Step 5 $24.22 Step 5 $24.71 Step 5 $24.71 924 Non- exempt 930 Non- exempt Library Page 935 Non- exempt Maintenance Assistant Librarian 925 Non- exempt Library Clerk 936 Non- exempt Open Space Technician 937 Non- exempt Print Shop Assistant Limited Hourly 2014-2017 Salary Schedule FLSA Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Salary Effective 07/01/2016 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Job Code Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Step 1 $27.98 Step 1 $28.55 Step 1 $28.55 Step 1 $29.12 Step 1 $29.12 Step 2 $29.45 Step 2 $30.05 Step 2 $30.05 Step 2 $30.65 Step 2 $30.65 Step 3 $31.00 Step 3 $31.63 Step 3 $31.63 Step 3 $32.26 Step 3 $32.26 Step 4 $32.63 Step 4 $33.29 Step 4 $33.29 Step 4 $33.96 Step 4 $33.96 Step 5 $34.35 Step 5 $35.04 Step 5 $35.04 Step 5 $35.75 Step 5 $35.75 Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 1 $22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 2 $23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 3 $24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 4 $25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Step 5 $27.31 Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $11.24 Step 1 $12.00 Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $11.83 Step 2 $12.63 Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $12.45 Step 3 $13.29 Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $13.10 Step 4 $13.99 Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $13.79 Step 5 $14.73 Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $11.24 Step 1 $12.00 Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $11.83 Step 2 $12.63 Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $12.45 Step 3 $13.29 Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $13.10 Step 4 $13.99 Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $13.79 Step 5 $14.73 Step 1 $13.12 Step 1 $13.39 Step 1 $13.39 Step 1 $13.64 Step 1 $13.64 Step 2 $13.81 Step 2 $14.09 Step 2 $14.09 Step 2 $14.36 Step 2 $14.36 Step 3 $14.54 Step 3 $14.83 Step 3 $14.83 Step 3 $15.12 Step 3 $15.12 Step 4 $15.30 Step 4 $15.61 Step 4 $15.61 Step 4 $15.92 Step 4 $15.92 Step 5 $16.10 Step 5 $16.43 Step 5 $16.43 Step 5 $16.76 Step 5 $16.76 Step 1 $16.32 Step 1 $16.65 Step 1 $16.65 Step 1 $16.99 Step 1 $16.99 Step 2 $17.18 Step 2 $17.53 Step 2 $17.53 Step 2 $17.88 Step 2 $17.88 Step 3 $18.08 Step 3 $18.45 Step 3 $18.45 Step 3 $18.82 Step 3 $18.82 Step 4 $19.03 Step 4 $19.42 Step 4 $19.42 Step 4 $19.81 Step 4 $19.81 Step 5 $20.03 Step 5 $20.44 Step 5 $20.44 Step 5 $20.85 Step 5 $20.85 938 Non- exempt Project Construction Inspector 939 Non- exempt Project Specialist 942 Non- exempt Recreation Leader II 943 Non- exempt Recreation Leader III 940 Non- exempt Recreation Aide 941 Non- exempt Recreation Leader I Limited Hourly 2014-2017 Salary Schedule FLSA Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Salary Effective 07/01/2016 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Job Code Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Step 1 $15.48 Step 1 $15.79 Step 1 $15.79 Step 1 $16.10 Step 1 $16.10 Step 2 $16.29 Step 2 $16.62 Step 2 $16.62 Step 2 $16.95 Step 2 $16.95 Step 3 $17.15 Step 3 $17.49 Step 3 $17.49 Step 3 $17.84 Step 3 $17.84 Step 4 $18.05 Step 4 $18.41 Step 4 $18.41 Step 4 $18.78 Step 4 $18.78 Step 5 $19.00 Step 5 $19.38 Step 5 $19.38 Step 5 $19.77 Step 5 $19.77 Step 1 $11.06 Step 1 $11.29 Step 1 $11.29 Step 1 $11.50 Step 1 $12.30 Step 2 $11.64 Step 2 $11.88 Step 2 $11.88 Step 2 $12.11 Step 2 $12.95 Step 3 $12.25 Step 3 $12.50 Step 3 $12.50 Step 3 $12.75 Step 3 $13.63 Step 4 $12.89 Step 4 $13.16 Step 4 $13.16 Step 4 $13.42 Step 4 $14.35 Step 5 $13.57 Step 5 $13.85 Step 5 $13.85 Step 5 $14.13 Step 5 $15.10 Step 1 $17.31 Step 1 $17.66 Step 1 $17.66 Step 1 $18.01 Step 1 $18.01 Step 2 $18.22 Step 2 $18.59 Step 2 $18.59 Step 2 $18.96 Step 2 $18.96 Step 3 $19.18 Step 3 $19.57 Step 3 $19.57 Step 3 $19.96 Step 3 $19.96 Step 4 $20.19 Step 4 $20.60 Step 4 $20.60 Step 4 $21.01 Step 4 $21.01 Step 5 $21.25 Step 5 $21.68 Step 5 $21.68 Step 5 $22.12 Step 5 $22.12 Step 1 $20.20 Step 1 $20.62 Step 1 $20.62 Step 1 $21.02 Step 1 $21.02 Step 2 $21.26 Step 2 $21.70 Step 2 $21.70 Step 2 $22.13 Step 2 $22.13 Step 3 $22.38 Step 3 $22.84 Step 3 $22.84 Step 3 $23.29 Step 3 $23.29 Step 4 $23.56 Step 4 $24.04 Step 4 $24.04 Step 4 $24.52 Step 4 $24.52 Step 5 $24.80 Step 5 $25.30 Step 5 $25.30 Step 5 $25.81 Step 5 $25.81 Step 1 $24.61 Step 1 $25.10 Step 1 $25.10 Step 1 $25.60 Step 1 $25.60 Step 2 $25.90 Step 2 $26.42 Step 2 $26.42 Step 2 $26.95 Step 2 $26.95 Step 3 $27.26 Step 3 $27.81 Step 3 $27.81 Step 3 $28.37 Step 3 $28.37 Step 4 $28.69 Step 4 $29.27 Step 4 $29.27 Step 4 $29.86 Step 4 $29.86 Step 5 $30.20 Step 5 $30.81 Step 5 $30.81 Step 5 $31.43 Step 5 $31.43 Step 1 $28.31 Step 1 $28.89 Step 1 $28.89 Step 1 $29.46 Step 1 $29.46 Step 2 $29.80 Step 2 $30.41 Step 2 $30.41 Step 2 $31.01 Step 2 $31.01 Step 3 $31.37 Step 3 $32.01 Step 3 $32.01 Step 3 $32.64 Step 3 $32.64 Step 4 $33.02 Step 4 $33.69 Step 4 $33.69 Step 4 $34.36 Step 4 $34.36 Step 5 $34.76 Step 5 $35.46 Step 5 $35.46 Step 5 $36.17 Step 5 $36.17 950 Non- exempt Technical Specialist 951 Non- exempt Arts & Science Professional I 948 Non- exempt Stock Clerk 949 Non- exempt Swim Instructor/Lifeguard 952 Non- exempt Arts & Science Professional II 983 Non-exemptArts & Science Professional III Limited Hourly 2014-2017 Salary Schedule FLSA Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Salary Effective 07/01/2016 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Job Code Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Step 1 $14.35 Step 1 $14.64 Step 1 $14.64 Step 1 $14.92 Step 1 $14.92 Step 2 $15.10 Step 2 $15.41 Step 2 $15.41 Step 2 $15.71 Step 2 $15.71 Step 3 $15.89 Step 3 $16.22 Step 3 $16.22 Step 3 $16.54 Step 3 $16.54 Step 4 $16.73 Step 4 $17.07 Step 4 $17.07 Step 4 $17.41 Step 4 $17.41 Step 5 $17.61 Step 5 $17.97 Step 5 $17.97 Step 5 $18.33 Step 5 $18.33 Step 1 $9.47 Step 1 $9.66 Step 1 $11.00 Step 1 $11.24 Step 1 $12.00 Step 2 $9.97 Step 2 $10.17 Step 2 $11.58 Step 2 $11.83 Step 2 $12.63 Step 3 $10.49 Step 3 $10.71 Step 3 $12.19 Step 3 $12.45 Step 3 $13.29 Step 4 $11.04 Step 4 $11.27 Step 4 $12.83 Step 4 $13.10 Step 4 $13.99 Step 5 $11.62 Step 5 $11.86 Step 5 $13.51 Step 5 $13.79 Step 5 $14.73 Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 1 $22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 2 $23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 3 $24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 4 $25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Step 5 $27.31 Step 1 $26.46 Step 1 $26.99 Step 1 $26.99 Step 1 $22.42 Step 1 $22.42 Step 2 $26.46 Step 2 $26.99 Step 2 $26.99 Step 2 $23.60 Step 2 $23.60 Step 3 $26.46 Step 3 $26.99 Step 3 $26.99 Step 3 $24.84 Step 3 $24.84 Step 4 $26.46 Step 4 $26.99 Step 4 $26.99 Step 4 $26.15 Step 4 $26.15 Step 5 $26.46 Step 5 $26.99 Step 5 $26.99 Step 5 $27.53 Step 5 $27.53 Step 1 $21.17 Step 1 $21.60 Step 1 $21.60 Step 1 $17.96 Step 1 $17.96 Step 2 $21.17 Step 2 $21.60 Step 2 $21.60 Step 2 $18.90 Step 2 $18.90 Step 3 $21.17 Step 3 $21.60 Step 3 $21.60 Step 3 $19.89 Step 3 $19.89 Step 4 $21.17 Step 4 $21.60 Step 4 $21.60 Step 4 $20.94 Step 4 $20.94 Step 5 $21.17 Step 5 $21.60 Step 5 $21.60 Step 5 $22.04 Step 5 $22.04 Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $16.20 Step 1 $16.20 Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $17.05 Step 2 $17.05 Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $17.95 Step 3 $17.95 Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $18.89 Step 4 $18.89 Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $19.88 Step 5 $19.88 953 Non- exempt Arts & ScienceTechnician 954 Non- exempt Arts & Science Aide 961 Non- exempt Police Reserve II 962 Non- exempt Technician I 955 Non- exempt Zoological Assistant 960 Non- exempt Police Reserve I Limited Hourly 2014-2017 Salary Schedule FLSA Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate Salary Effective 07/01/2016 Salary Effective 01/01/2016 Salary Effective 07/01/2016 Job Code Job Title Salary Effective 1st PP following Council Approval Salary Effective 07/01/2015 Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 1 $22.24 Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 2 $23.41 Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 3 $24.64 Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 4 $25.94 Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Step 5 $27.31 Min Max Min Max Min Max Min Max Min Max $10 $130 $10 $130 $11 $130 $11.24 $130 $12.00 $130 Min Max Min Max Min Max Min Max Min Max $10 $100 $10 $100 $11 $100 $11.24 $100 $12.00 $100TBDTBDGeneral Laborer 963 Non- exempt Technician II 972 TBD Management Specialist Fee Title FY17 Rate Proposed FY 18 Parking Permit ‐ Business District 800 High Street ‐ Parking Permit (See below, consolidated under All Downtown and SOFA Garages and Lots) $146.50 per quarter; $466.00 per year Consolidated Below California Avenue Area ‐ One Day Daily Parking Permit $8.00 per day $25.00 per day California Avenue Area District All Garages and Lots, quarterly and six month permits prorated based on annual amount $49.50 per quarter; $149.00 per year $365.00 per year California Avenue Business District All Lots, Transferable Permit (See above, consolitated under California Avenue Area Parking Permit) $49.50 per quarter Consolidated Above Lot X ‐ Sheraton Parking Lot (See below, consolidated under All Downtown and SOFA Garages and Lots) $146.50 per quarter; $466.00 per year Consolidated Below University Avenue ‐ All Lots All Downtown and SOFA Garages and Lots, quarterly and six‐month permits prorated based on annual amount $146.50 per quarter; $466.00 per year $730.00 per year Downtown and SOFA Garages and Lots ‐ One Day Parking Permit $17.50 per day $25.00 per day University Avenue ‐ Transferable Permit (See above, consolidated under All Downtown and SOFA Garages and Lots) $145.50 per quarter Consolidated Parking Permit Commercial/Construction Parking Space Closure (on‐street, lots and garages)N/A $25.00 per space per day Temporary Work Parking Permit in RPP areas N/A $100.00 per month Parking Permit ‐ Residential College Terrace ‐ Annual Permit Annual Resident/Guest Permit $40.00 per permit $50.00 per permit College Terrace ‐ Guest Permit (see above, consolidated under College Terrace Annual Resident Permit) $40.00 per permit Consolidated Above College Terrace ‐ Lost Guest Permit $40.00 per permit Deleted College Terrace RPP ‐ Daily Resident Parking Permit $5.00 $5.00 Downtown RPP ‐ Annual Guest Permit for Residents $50.00 per annual permit Deleted Downtown RPP ‐ Annual Permit (Low Wage) Reduced‐price Employee Parking Permit $100.000 per annual permit $50.00 per six months Downtown RPP ‐ Annual Resident Parking Permit $50.00 per additional annual permit, first one free $50.00 per year, first one free Downtown RPP ‐ Daily Resident Parking Permit $5.00 per day $5.00 per day Downtown RPP ‐ Annual Permit (Standard Employee) Full‐Price Employee Parking Permit $466.00 per annual permit $365.00 per six months Downtown RPP ‐ Daily Employee Guest Parking Permit $5.00 per day $25.00 per day Downtown RPP ‐ Five‐day Employee Guest Permit $15.00 per 5 day period in the same week Deleted Downtown RPP ‐ Visitor Permit $5.00 each for 24 hour, 50 max per year Deleted Residential ‐ Day Use Permit Downtown RPP ‐Daily Resident Parking Permit $5.00 per permit $5.00 per day Residential ‐Disabled Parking Permit Standard On‐Street Disabled Parking Space Note: This space is not for the exclusive use of the applicant; anyone with appropriate designation may use it $250.00 per year $915.00 per five years Crescent Park NOP Daily Resident Parking Permit $5.00 per night $5.00 per night Residential ‐ Other (Trial) Crescent Park NOP Annual Resident Parking Permit $100.00 through trial period $50.00 per year Evergreen Park‐Mayfield RPP ‐ Daily Resident Parking Permit $5.00 per day $5.00 per day Evergreen Park‐Mayfield RPP ‐ Daily Employee Parking Permit $5.00 per day $25.00 per day (after pilot) Evergreen Park‐Mayfield RPP ‐ Annual Resident Parking Permit $50.00 per year $50.00 per year, first one free Evergreen Park‐Mayfield RPP ‐ Reduced price Employee Parking Permit $50.00 per year $25.00 per six months Evergreen Park‐Mayfield RPP ‐ Full Price Employee Parking Permit $149.00 per year $182.50 per six months (after pilot) Valet Parking On‐Street Parking Space Rental $79.00 per space per week $25 per space per day Parking at a Glance ATTACHMENT P Fiscal Year 2018 City Manager’s Proposed Operating & Capital Budget, & Municipal Fees Finance Committee Proceedings (Presentations, At Places Memorandum, Transcripts) These documents were originally distributed throughout the Finance Committee Budget Hearing proceedings including the Planning and Transportation Commission review of the FY 2018‐2022 Capital Improvement Program during the month of May 2017. Documents and presentations are organized by the meeting date they were distributed at. May 2, 2017: Finance Committee ‐ Agenda: http://www.cityofpaloalto.org/civicax/filebank/documents/57238 ‐ Presentation: http://www.cityofpaloalto.org/civicax/filebank/documents/57693 ‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57694 ‐ Action Minutes: http://www.cityofpaloalto.org/civicax/filebank/documents/57763 ‐ Transcript: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=57763 May 4, 2017: Finance Committee ‐ Agenda: http://www.cityofpaloalto.org/civicax/filebank/documents/57239 ‐ Presentation: http://www.cityofpaloalto.org/civicax/filebank/documents/57743 ‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57742 (Airport Fund) ‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57746 (HSRAP) ‐ Action Minutes: http://www.cityofpaloalto.org/civicax/filebank/documents/57762 ‐ Transcript: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=58300 May 9, 2017: Finance Committee ‐ Agenda: http://www.cityofpaloalto.org/civicax/filebank/documents/57461 ‐ Presentation: http://www.cityofpaloalto.org/civicax/filebank/documents/57781 ‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57780 ‐ Action Minutes: http://www.cityofpaloalto.org/civicax/filebank/documents/57862 ‐ Transcript: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=57862 May 10, 2017: Planning Transportation Commission ‐ Transcript: http://www.cityofpaloalto.org/civicax/filebank/documents/58176 May 18, 2017: Finance Committee ‐ Agenda: http://www.cityofpaloalto.org/civicax/filebank/documents/57739 ‐ Presentation: http://www.cityofpaloalto.org/civicax/filebank/documents/57899 ‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57884 (Parking Permit Muni Fees Memo from Planning and Community Environment) ‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57898 (Electric Vehicle Charging Stations) ‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57875 (Bdgt Wrap Up) ‐ Action Minutes: http://www.cityofpaloalto.org/civicax/filebank/documents/58022 ‐ Transcript: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=58022 ATTACHMENT Q City of Palo Alto | City Clerk's Office | 6/14/2017 12:01 PM 1 Carnahan, David From:Fred Balin <fbalin@gmail.com> Sent:Tuesday, June 13, 2017 1:02 PM To:Council, City Subject:Proposed PAFD Budget Adjustment: Text of Remarks Last Night FYI. My remarks in oral communications last night. -Fred Balin 2385 Columbia Street —— What will you cut in fire department services to meet a proposed $1.3 million savings? Citizens have a right to know. The purpose of the budget process is to elicit informed public reaction. Bring forth the details. These cuts, if approved, will most likely come at the expense of engine service while still seeking to increase revenue-generating, ambulance transports. We’ve been at this key decision point before: Fiscal Year 2013 proposed an increase from one to two full-time ambulances; which went forward. It also proposed $1.1 million in savings by shutting an engine when daily staffing was “low." Then as now, daily staffing is almost always low, as the department operates with up to 15 fewer bodies than budgeted positions. Shutting an engine every day would reduce overtime costs and meet the reduction target. That plan was not enacted. Now, with the aid of opacity, the city seeks to impose its equivalent. You need at least three engines, very rapidly, at a structure fire to save lives and contain loss. Engines also handle all kinds of other rescues: technical, rope, vehicle extrication, hazmat. And our 6 engines, with paramedic in crew, are strategically located. In the life-saving response to Andrew Milne’s sudden cardiac arrest, detailed here last week, an engine was the first responder, as it almost always is. Key numbers continue to rise: Population — resident and commuter — densities, construction, congestion, call volume … in Palo Alto, on campus, at the VA. Dry weather remains a perennial. And logistics will soon be tested when the Rinconada engine moves near the Baylands, for 18 months, during station reconstruction. These proposed cuts to public safety demand full disclosure and a serious public conversation. If you are unable or unwilling to bring that information forward and engage in the follow-on dialog, then you should not be on this dais. ATTACHMENT R City of Palo Alto | City Clerk's Office | 6/14/2017 12:01 PM 2 Thank you. ## -fb 6/12/17 ATTACHMENT R City of Palo Alto (ID # 8191) City Council Staff Report Report Type: Informational Report Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: 3rd Qtr Financial Report Title: Third Quarter FY 2017 Financial Report From: City Manager Lead Department: Administrative Services This is information report only and no Council action is required. Background The purpose of this report is to provide the Finance Committee with information on the financial status of the City’s General Fund and Enterprise Funds as of the end of the 3rd Quarter of Fiscal Year (FY) 2017 (July 1, 2016 through March 31 2017). Attachment A contains a line by line report of major revenues and expenditures for 3rd Quarter Year-to-Date (YTD), as well as a comparison to the FY 2017 Adopted Budget and Adjusted Budget as of March 31, 2017. Through the nine months completion of the current fiscal year, City’s general and enterprise funds are performing within the FY 2017 budgetary levels. As reported in the FY 2017 Midyear Budget Report (CMR # 7656), General Fund is anticipated to end the year with a one-time budget surplus of approximately $2 million to $5 million resulting from excess revenues and expenditures savings. As part of the closing of FY 2017 Budget (November/December), staff will bring forward recommendations for the use of projected FY 2017 budget surplus. This will include potentially funding part of the Infrastructure gap and/or the unfunded pension liability. Discussion GENERAL FUND Revenue Highlights for FY 2017 3rd Quarter Year to Date (YTD) Following is a table which highlights the City’s major revenue sources for the 3rd Quarter YTD, compared to the same period of the prior year. Revenue for each period is expressed as a percentage of Adjusted/Final Budget. City of Palo Alto Page 2 FY 2017 FY 2016 % change FY 2017 %FY 2016 % Inc (Dec) Property tax 24,779$ 22,453$ 10%38,953$ 64%35,967$ 62% Sales tax 16,885 13,143 28%29,150 58%28,430 46% Charges for services 13,413 13,930 -4%1 23,134 58%24,768 56% Utility user tax 9,847 8,690 13%12,377 80%10,489 83% Transient occupancy tax 14,901 13,794 8%23,134 64%21,991 63% Documentary transfer tax 4,807 3,854 25%6,747 71%7,052 55% Permits and licences 5,381 5,239 3%8,215 66%8,211 64% Rental income 11,512 11,794 -2%15,055 76%15,299 77% Charges to other funds 8,146 8,956 -9%10,766 76%11,929 75% All other revenue sources 4,543 6,149 -26%5,948 76%5,464 99% Total General Fund Revenues 114,214$ 108,002$ 6%173,479$ 66%169,600$ 64% 1 Adjust for 2nd and 3rd Quarter Stanford fire revenue 3,620 3,765 GF Revenues - Normalized 117,834$ 111,767$ 5% 3rd Quarter YTD Actuals City of Palo Alto General Fund Revenues FY 2017 3rd Quarter YTD (000's) Adjusted Budget Final Budget After adjusting for the Stanford fire and police dispatch services revenue timing difference, revenue is up $6.1 million, or 5 percent, from prior year as of the end of the 3rd Quarter YTD. The increased revenues are primarily in the General Fund tax-related sources such as sales, property, transient occupancy, utility user, and documentary transfer taxes. In total, receipts are at 66 percent of Adjusted Budget, which is typical for the end of the 3rd Quarter due to property tax receipts which spike in the last quarter of the fiscal year. Each of the major revenue categories is discussed in more detail below. Following is a chart which shows the three-year trend for major sources of General Fund tax revenue, comparing FY 2015 and FY 2016 actuals with FY 2017 Adjusted Budget. As detailed in the City’s most recent Long Range Financial Forecast, sales and property tax revenue streams are expected to continue their upward growth trends based on strong regional economy, while other tax streams will advance at a slower rate or remain flat. The chart is followed by a more detailed discussion of each major revenue category. City of Palo Alto Page 3 Property Tax Sales Tax Tr Occ Tax Doc Tsf Tax UUT FY 2015 Actual $34,117 $29,675 $16,699 $10,384 $10,861 FY 2016 Actual 36,607 30,018 22,366 6,266 12,469 FY 2017 Adj Budget 38,953 29,150 23,134 6,747 12,377 $0 $10,000 $20,000 $30,000 $40,000 General Fund Tax Revenues FY 2015 and 2016 Actuals Compared to FY 2017 Adjusted Budget (000's) Property tax revenue at the close of 3rd Quarter YTD was $24.8 million, an increase of 10 percent over the same period prior year. Property tax is received from the County of Santa Clara during the 2nd, 3rd and 4th quarters of the year, and receipts are at 64 percent of the full- year budget which is typical for this line item through March 31. The FY 2017 Adjusted Budget is $39 million, 6.4 percent higher than the prior year’s actual revenue of $36.6 million. Staff expects property tax revenue will exceed FY 2017 Adopted Budget by $0.2 million based on year-to-date receipts. It should be noted that both FY 2015 and FY 2016 include a non- recurring receipt of $0.9 million while the estimate for FY 2017 is $0.7 million for excess ERAF distributions from the County of Santa Clara. ERAF is the fund used to collect and disburse property taxes that are shifted to/from cities, the county and special districts prior to their reallocation to K-14 school agencies. Property tax increases are driven by high demand in the residential sector and modest activity in the commercial property market, which are expected to continue into FY 2017. The continued growth in assessed values will, in turn, translate into higher property tax revenue Sales tax revenue as of the end of the 3rd Quarter is up by 28 percent over the prior year; however, most of this is attributable to timing of cash flow receipt. The State’s “Triple Flip” program where a quarter of the City’s sales tax receipts were received in January and May ended in the 4th quarter of FY 2016 resulting in the City receiving, in FY 2017, the full sales tax receipt on a monthly basis. Staff expects sales tax revenue will exceed FY 2017 Adopted Budget by $0.5 million based on year-to-date receipts. While sales tax has fully recovered from its Great Recession low of $17.9 million in FY 2010, there are continued concerns over future growth due to the continued erosion of brick and mortar receipts that is resulting from steady growth in on-line retail sales. The completion of Stanford Hospital construction projects will also reduce future sales tax revenue. City of Palo Alto Page 4 Transient occupancy tax (TOT) revenue reached $14.9 million through the end of the 3rd Quarter, an increase of $1.1 million or 8 percent from prior year. Average daily room rates increased 1.8 percent from prior year - $254 per day to $259 per day - while average occupancy rates rose slightly from 75 percent to 77 percent. The increase in number of rooms available as a result of newly opened hotels has kept occupancy rates lower than 85 percent, which is considered full occupancy. Two new hotels on San Antonio Road have been proposed, in addition to the expansion of an existing hotel. Effective January 1, 2015, the TOT rate increased from 12 percent to 14 percent. The 2 percent increase from all hotels, plus the 12 percent base from new hotels, was dedicated to the Infrastructure Plan by City Council. Following is a comparative breakdown of the allocation of transient occupancy tax receipts: 3rd Quarter YTD FY 2017 3rd Quarter YTD FY 2016 General Fund: $ 10,031,020 $ 9,227,158 Infrastructure Plan: (9 months of receipts) (9 months of receipts) New hotels – 12% 2,740,127 2,559,402 All hotels – 2% 2,129,575 2,007,788 4,869,702 4,567,190 Total TOT Receipts 3rd Qtr. YTD $ 14,900,722 $ 13,794,348 Documentary transfer tax revenue for the nine months ended March 31 totals $4.8 million, up $1 million or 25 percent from the prior year. Staff expects full year revenue in the range of $7.1 million, which is $0.4 million more than was forecasted in the Adopted Budget. This revenue source is difficult to forecast because the sale volume and mix of commercial and residential transactions can vary significantly from year to year. Utility user tax revenue for the nine months ended March 31 totals $9.8 million, an increase of $1.2 million, or 13 percent, from the prior year. Higher water, electric, and gas customer billings due to commodity consumption increase along with utility rate hikes have contributed to a favorable growth for this revenue source. It was expected that this revenue stream would decrease due to the telephone UUT rate reduction from 5 percent to 4.75 percent, but it was partially offset by elimination of the large utility user discount. The City does not receive detailed information from telephone service providers that would explain the current trend and must rely on lump sum receipts. Charges for services revenue through the first three quarters of FY 2017 is down $0.4 million from the same period last year, after adjusting for the timing difference in billings to the Stanford University for fire and emergency services. The decrease is mainly due to $0.8 million lower receipts from golf course resulting from its temporary closure and $0.3 million decline in City of Palo Alto Page 5 revenues related to Stanford fire service. They were partially offset by $0.3 million higher plan check fees. The Adjusted Budget in this report reflects $1.9 million downward adjustment for fire protection services contract extension through June 30, 2017 with Stanford University approved by the Council in December 2016. Permits and licenses revenue for 3rd Quarter YTD is up $0.14 million from the same period prior year due mainly to higher planning fee offset by delay in receiving fire hazmat permit fees from the County. Staff believes that the City will meet its budgetary target for this revenue source by the fiscal year-end. Charges to other funds are lower than prior fiscal year based on the budgeted cost plan allocations approved as part of the Adopted Budget. All other revenues categories decreased as prior year revenues included one-time proceeds from the sale transaction of former city manager’s residence. Expense Highlights for FY 2017 3rd Quarter YTD Following is a table which highlights the City’s expenses by function for the 3rd Quarter YTD, and compares expenses to the same period prior year. In addition, the expense for the period is expressed as a percentage of budget for each of the years. City of Palo Alto General Fund Expenses FY 2017 3rd Quarter YTD (000's) FY 2017 FY 2016 % change FY 2017 %FY 2016 % Inc (Dec) Police 29,171$ 26,790$ 9%39,238$ 74%36,924$ 73% Fire 23,281 20,499 14%29,778 78%29,223 70% Community services 17,675 17,591 0%26,608 66%26,517 66% Public works 11,742 10,924 7%17,336 68%15,828 69% Development services 7,905 7,530 5%12,373 64%12,281 61% Planning and community env 6,478 6,480 0%11,255 58%11,146 58% Library 6,533 5,794 13%9,523 69%8,971 65% Administrative services 5,606 5,892 -5%8,342 67%7,957 74% All other departments 14,165 15,006 -6%23,827 59%21,961 68% Total General Fund Expenses 122,556$ 116,506$ 5%178,280$ 69%170,808$ 68% 3rd Quarter YTD Actuals Adjusted Budget Final Budget City of Palo Alto Page 6 Actual expenses through the first three quarters of the fiscal year total $122.6 million, a 5 percent increase over prior year. The expenses are right in line with the Adjusted Budget at 69 percent of full-year budgeted amounts. Public Safety comprises the largest portion of General Fund expenditures – 43 percent of actuals as of March 31. Following is the detail for Public Safety overtime expenses through the 3rd Quarter of the current fiscal year: Public Safety Salaries and Overtime Expense FY 2017 3rd Quarter YTD (000's) FY 2017 FY 2016 % change FY 2017 %FY 2016 % Inc (Dec) Police - Salaries 12,879$ 11,630$ 11%17,702$ 73%17,007$ 68% Police - Overtime 1,524 1,536 -1%1,500 102%1,539 100% Total Police 14,403 13,166 9%19,202 75%18,546 71% Fire - Salaries 9,456 8,298 14%13,594 70%11,841 70% Fire - Overtime 2,788 1,940 44%1,633 171%1,383 140% Total Fire 12,244 10,238 20%15,227 80%13,224 77% Total Public Safety Salaries & Overtime 26,647$ 23,404$ 14%34,429$ 77%31,770$ 74% 3rd Quarter YTD Actuals Adjusted Budget Police overtime has decreased $12 thousand, or 1 percent, over the same period last year. On a combined basis, salaries and overtime are at 75 percent of budget through the first nine months of the fiscal year. Overtime cost is primarily due to vacancies. The Department’s overtime analysis is included in Attachment C. Fire overtime has increased $0.8 million, or 44 percent, from the same period last year. On a combined basis, salaries and overtime are at 80 percent of budget through the first nine months of the fiscal year. Overtime cost is driven by vacancies. The Department’s overtime analysis is included in Attachment C. General Fund Budget Stabilization Reserve (BSR) Balance The General Fund BSR balance is projected to be $42.3 million, or 20.3 percent of the FY 2017 Adjusted Budget expenditures. The figure reflects actual balance reported as of July 1, 2016 of $51.6 million, less any budget amendments approved by Council subsequent to the FY 2017 City of Palo Alto Page 7 Budget Adoption and amendments approved by the Council as part of FY 2017 Midyear Budget Report (CMR # 7656) in February 2017. This level is approximately $5 million above the Council approved target level of 18.5 percent. As recommended in the FY 2018 Proposed Operating Budget, $3.2 million is recommended to be drawn from the Budget Stabilization Reserve (BSR) on a one time basis to balance the FY 2018 Budget; however, it will remain at 18.6% of the FY 2018 Proposed Budget. The projected surplus of $2 million to $5 million for FY 2017 discussed earlier is not part of this calculation since it needs to materialize once the year has ended. ENTERPRISE FUNDS Following is a summary of operating revenues and expenses for each of the Enterprise Funds for the nine months ended March 31, 2017, including a comparison of results from the same period last year. Enterprise Funds Operating Revenue Adjusted 3rd Quarter YTD Actuals % Change Budget FY 2017 FY 2016 Inc(Dec)FY 2017 % Electric 93,637$ 92,015$ 2%139,739$ 67% Water 31,219 27,029 16%39,460 79% Gas 28,396 23,639 20%35,826 79% Refuse 25,060 23,760 5%31,397 80% Wastewater treatment 20,364 17,463 17%28,016 73% Wastewater collection 13,162 12,362 6%18,535 71% Storm Drainage 4,976 4,867 2%6,697 74% Fiber Optic 2,859 3,523 -19%4,867 59% Airport 716 675 6%828 86% Operating Revenue YTD 220,389$ 205,333$ 7%305,365$ 72% Electric customer revenues increased from the same period prior year due to 11% rate increase implemented in the current fiscal year offset by slight decrease (3%) in kilowatt consumption. The service connection charges were also $1.2 million lower compared to prior year as some large development projects were completed in FY 2016. This is typical as connection charges are dependent on level of housing and commercial development. The FY 2018 Proposed Budget includes a 4 percent overall increase in electric rates. Water revenues were also higher for the nine months ended March 31. Rates were increased 6 percent effective July 1, 2016 and water consumption also rose 7 percent year-to-date compared to prior fiscal year. Service connection and other operating revenues were lower during this fiscal year due to fluctuation in connection activity and completion of El Camino Park Restoration Project. Per the FY 2018 Proposed Budget, water rates are scheduled to increase by up to 4 percent. City of Palo Alto Page 8 Gas revenues year-to-date increased from prior year mainly due to an average 8 percent rate hike as well as 8 percent increase in gas consumption. Other operating revenues were slightly higher in the current year primarily due to an increase in the carbon allowance revenues. FY 2018 gas rates are scheduled to increase 4 percent effective July 1, 2017. Refuse rates increased 9 percent for only residential customers on July 1, 2016. Per the FY 2018 Proposed Budget, refuse rate increases are scheduled to be 9 percent for residential and 5 percent for commercial accounts, respectively. Fiber Optic revenue decreased $0.7 million or 19% in current year due mainly to Dark Fiber Back Bone Lease billed to Stanford University in FY 2016. Fiber Optics rates are scheduled to increase by 3.5 percent in FY 2018. Airport Fund 3rd Quarter YTD revenue increased slightly $42 thousand or 6 percent from prior year due to increased rental, tie-down, and other miscellaneous revenues. City of Palo Alto took over operation of the Airport from the County of Santa Clara during the 1st Quarter of FY 2015. With full staffing, the City is in process of signing new hangar and property leases, and tie-down agreements which would have favorable impact on Airport revenues in the 4th Quarter. Wastewater Treatment Fund year-to-date revenue increase in FY 2017 was mainly due to timing differences to plant partners. Storm Drain Fund operating revenues are higher due to 3.2 percent fee increase implemented on July 1, 2016. An average $0.65 storm drain rate increase was approved by the City property owners through a ballot measure in April 2017. Enterprise Funds Operating Expenses Adjusted 3rd Quarter YTD Actuals % Change Budget FY 2017 FY 2016 Inc(Dec)FY 2017 % Electric 78,108$ 76,026$ 3%121,899$ 64% Water 21,544 20,335 6%35,137 61% Refuse 20,176 19,891 1%33,867 60% Gas 16,190 14,765 10%28,166 57% Wastewater treatment 14,390 15,089 -5%22,519 64% Wastewater collection 10,819 9,450 14%16,408 66% Storm Drainage 2,204 1,938 14%3,508 63% Fiber Optic 1,323 1,359 -3%2,512 53% Airport 878 767 14%1,272 69% Operating Expenses YTD 165,632$ 159,620$ 4%265,288$ 62% City of Palo Alto Page 9 Electric Fund expenses increased $2.1 million, or 3 percent, from same period prior year. Power purchase costs were $0.9 million higher compared to prior year. Other major cost increases are in resource management programs ($0.4 million) and retiree health premium costs ($0.6 million). Water Fund wholesale purchase expenses increased $1.2 million or 6 percent in current year attributable to 7 percent higher consumption and 9 percent increase in cost per unit. Other categories increases/decreases offset each other and remained flat. Refuse Fund expenses increased $0.3 million, or 1 percent, over prior year due to salary and benefits costs in operations. Gas Fund expenses increased $1.4 million or 10 percent compared to same period in FY 2016. Main factors were gas commodity and transportation costs ($1.1 million), salary and benefits costs ($0.1 million) and allocated charges ($0.1 million). Wastewater Treatment Fund expenses decreased $0.7 million or 5 percent over the same period last year due to lower operations costs. Wastewater Collection costs went up $1.4 million or 14 percent resulting from higher capital cost allocation from the Treatment Plant and an increase in allocated salary and benefit costs from other departments for work performed on behalf of Wastewater Collection Fund. Airport Fund expenses are 14 percent ($111 thousand) higher than the same period last year primarily due to an increase in temporary staff salaries and contract services costs. Storm Drain Fund also recorded higher expenses of $0.03 million or 14 percent mainly in salary/benefit and contract services costs. Pension and Retiree Medical Liabilities Long-term unfunded liabilities for pension and retiree medical continue to dominate discussion of the City’s long-range financial planning. The Council approved setting aside $2.1 million of the FY 2015 and FY 2016 General Fund surplus to use as seed funding for a Section 115 trust account. The City Council approved the establishment of the trust with PARS and staff deposited a General Fund contribution of $2.1 million or about 10 percent of the annual pension payment. The Finance Committee approved the recommendation in the FY 2018 Proposed Budget to have all other funds contribute 10 percent and send those funds to PARS. The Council will take action on June 27, 2018 on this recommendation. As of June 30, 2015 actuary reports, the City’s unfunded pension and retiree medical liabilities totaled $494 million. Effective June 30, 2016 the pension liability was disclosed in the City’s government-wide financial statements as required by the Governmental Accounting Standards Board (GASB). In addition, new accounting standards for presentation of the retiree medical liability were enacted by GASB and will be effective for FY 2018. City of Palo Alto Page 10 In order to slow the growth of pension costs over the long term, the City implemented a second tier pension formula in 2011 (2% @ 60) and the California Public Employees’ Pension Reform Act of 2013 (PEPRA) mandated a third tier pension formula of 2% @ 62 effective January 1, 2013. Following is a table which shows the employee count in each of the Miscellaneous and Safety plans as of March, 2017. As of that date, 39 percent of the City’s full-time employees were enrolled in Tier 2 and Tier 3 plans, compared to 32 percent as of March, 2016. City of Palo Alto Page 11 Mar 2017 Mar 2016 Mar 2017 Mar 2016 Tier 1 4 6 Tier 1 67 70 Tier 2 2 2 Tier 2 6 7 Tier 3 4 3 Tier 3 11 10 Sub-total 10 11 Sub-total 84 87 Tier 1 102 106 Tier 1 5 5 Tier 2 48 49 Tier 2 0 0 Tier 3 45 35 Tier 3 0 0 Sub-total 195 190 Sub-total 5 5 Tier 1 321 352 Tier 1 4 4 Tier 2 66 64 Tier 2 0 0 Tier 3 170 125 Tier 3 0 0 Sub-total 557 541 Sub-total 4 4 Tier 1 43 45 Tier 1 50 59 Tier 2 0 0 Tier 2 3 4 Tier 3 2 2 Tier 3 24 10 Sub-total 45 47 Sub-total 77 73 Tier 1 7 6 Tier 2 1 1 Tier 3 0 0 Sub-total 8 7 Tier 1 0 1 Tier 2 0 0 Tier 3 0 0 Sub-total 0 1 Total Tier 1 470 509 Total Tier 1 133 145 Tier 2 116 115 Tier 2 10 12 Tier 3 221 165 Tier 3 35 20 Grand Total Misc Plans 807 789 Grand Total Safety Plans 178 177 %Tier 1 58%65%%Tier 1 75%82% Tier 2 14%15%Tier 2 6%7% Tier 3 27%21%Tier 3 20%11% Tier 1 2.7% @ 55 Tier 1 3% @ 50 Tier 2 2% @ 60 Tier 2 3% @ 55 Tier 3 2% @ 62 Tier 3 2.7% @ 57 *Excludes police trainees (4/2) Miscellaneous Plans Safety Plans Fire Chiefs Association Employee Group IAFFCity Council and Council Appointed Officers Employee Group Management and Professional # of Employees # of Employees Police Management Association Police Management Fire Management PAPOA Service Employees International Union Utilities Management Attachments: City of Palo Alto Page 12 Attachment A: General Fund Third Quarter Financial Report Attachment B: Overtime Analysis for Fiscal Years 2015 through 2017 6/13/20176:40 AM ATTACHMENT A CITY OF PALO ALTO GENERAL FUND FIRST QUARTER FINANCIAL REPORT FISCAL YEAR ENDING JUNE 30, 2017 (in thousands) BUDGET ACTUALS (as of 03/31/2017) Adopted Adjusted Pre % of Adj Categories Budget Budget Encumbr Encumbr Actual Budget* Revenues & Other Sources Sales Tax 29,150 29,150 - - 16,885 58% Property Tax 38,953 38,953 - - 24,779 64% Transient Occupancy Tax 23,134 23,134 - - 14,901 64% Documentary Transfer Tax 6,747 6,747 - - 4,807 71% Utility Users Tax 12,379 12,377 - - 9,847 80% Motor Vehicle Tax, Penalties & Fines 2,022 2,057 - - 1,687 82% Charges for Services 25,282 24,042 - - 13,413 56% Permits & Licenses 8,756 8,215 - - 5,381 66% Return on Investment 975 975 - - 886 91% Rental Income 15,021 15,055 - - 11,512 76% From Other Agencies 441 1,477 - - 1,449 98% Charges To Other Funds 10,766 10,766 - - 8,146 76% Other Revenues 1,406 530 - - 523 99% Total Revenues 175,032 173,479 - - 114,214 66% Operating Transfers-In 20,046 20,046 - - 14,417 72% Encumbrances and Reappropriation 7,505 - - - - Contribution (to)/from Budget Stabilization Reserve (912) 5,484 - - - - Total Sources of Funds 194,166 206,514 - - 128,631 62% Expenditures & Other Uses City Attorney 3,179 3,994 35 440 2,110 65% City Auditor 1,221 1,373 50 15 940 73% City Clerk 1,370 1,428 15 40 770 58% City Council 501 523 - 43 328 71% City Manager 2,882 3,478 200 257 1,748 63% Administrative Services 7,798 8,342 22 97 5,606 69% Community Services 25,390 26,608 183 2,043 17,675 75% Development Services 12,169 12,373 54 1,187 7,905 74% Fire 28,947 29,778 240 581 23,281 81% Library 8,992 9,523 31 230 6,533 71% Office of Emergency Services 971 1,092 25 183 679 81% Office of Sustainability 499 546 - 47 352 73% Human Resources 3,357 3,696 12 179 2,305 68% Planning and Community Environment 8,768 11,255 325 1,072 6,478 70% Police 38,137 39,238 118 870 29,171 77% Public Works 16,224 17,336 76 1,622 11,742 78% Non-Departmental 10,139 7,697 4,933 64% Total Expenditures 170,544 178,280 1,386 8,906 122,556 75% Operating Transfers-Out 5,136 5,221 - - 3,915 75% Transfer to Infrastructure 18,486 23,013 - - 17,260 75% Total Use of Funds 194,166 206,514 1,386 8,906 143,731 75% Note: Adjusted Budget includes carryover encumbrances and reappropriations plus budget amendments approved by the Council Attachment B Q3 2015 2016 2017 POLICE DEPARTMENT Overtime Expense Adopted Budget $1,500,000 $1,500,000 $1,500,000 Modified Budget 1,500,000 1,539,053 1,500,000 Net Overtime Cost - see below 946,558 836,252 136,956 Variance to Budget $553,442 $702,801 1,363,044 Overtime Net Cost Actual Expense $1,893,220 $2,019,330 $1,524,317 Less Reimbursements Stanford Communications 62,000 59,821 52,847 Utilities Communications Reimbursement 36,614 32,504 27,235 Local Agencies (A)10,417 12,258 8,673 Police Service Fees 69,570 74,813 55,852 Total Reimbursements 178,601 179,397 144,607 Less Department Vacancies 768,061 1,003,682 1,242,753 Net Overtime Cost $946,558 $836,252 $136,956 Department Vacancies (number of days)3,223 4,735 4,048 Workers' Compensation Cases 16 11 9 Department Disabilities (number of days)502 710 143 FIRE DEPARTMENT Overtime Expense Original Budget $1,424,414 $1,382,714 $1,413,714 Modified Budget (B)1,608,710 1,559,598 1,632,714 Net Overtime Cost - see below 94,836 1,156,217 1,920,593 Variance to Budget $1,513,874 $403,381 ($287,879) Overtime Net Cost Actual Expense $2,171,795 $2,783,510 $2,788,361 Less Reimbursements Stanford Fire Services (C)658,054 - - Cal-Fire/FEMA (Strike Teams)184,296 557,453 - Total Reimbursements 842,350 557,453 - Less Department Vacancies 1,234,609 1,069,840 867,767 Net Overtime Cost $94,836 $1,156,217 $1,920,593 Department Vacancies (number of days)3,712 3,952 3,637 Workers' Compensation Cases 10 10 10 Department Disabilities (number of days)249 461 422 NOTES: (A)Includes Animal Services contract with Los Altos and Los Altos Hills. (B)FY 2017 Does not include Strike Team Reimbursement of $174,000 recommended in the FY 2017 Mid-Year Review. (C )Stanford has historically reimbursed 30.3% of the Fire Department budget for fire services, including estimates for overtime. However, in FY 16 and 17 a flat rate contractual agreement for extension, inclusive of all services, has been approved. Therefore, the overtime figure has been removed from this report until a finalized agreement is negotiated Public Safety Departments Overtime Analysis for Fiscal Years 2015 through 2017 6/15/2017 City of Palo Alto (ID # 8274) City Council Staff Report Report Type: Informational Report Meeting Date: 6/27/2017 City of Palo Alto Page 1 Summary Title: CIP Projects Update Title: Semiannual Update on the Status of Capital Improvement Program Projects From: City Manager Lead Department: Public Works Recommendation This report is provided for information only and requires no Council action. Background The purpose of this report is to provide Council with an update on the status of capital improvement program (CIP) projects. In the past, year-end and mid-year financial reports have included very simplistic status updates on CIP projects. This is the second instance of a new report intending to provide more useful information for Council. Staff expects to provide this report twice each year. The first report included general fund and storm drain fund CIP projects. This report includes general fund and all enterprise fund projects. Discussion Project Update Organization The City has a robust capital improvement program, and a large number of individual projects are in progress at any given time. The attached CIP project tables are intended to give Council a quick overview of each project, including budgetary information, the anticipated completion date, a brief description of the project scope, the current status of the project, and upcoming activities including Council actions. City of Palo Alto Page 2 The 2014 Council Infrastructure Plan is a major focus of staff’s capital improvement program efforts. The following Infrastructure Plan projects are in progress and are described individually in the project updates: New Public Safety Building (PE-15001) Bicycle and Pedestrian Transportation Plan Implementation (PL-04010) New Downtown Parking Garage (PE-15007) New California Avenue Area Parking Garage (PE-18000) Charleston/Arastradero Corridor Project (PE-13011) Fire Station 3 Replacement (PE-15003) Highway 101 Pedestrian/Bicycle Overpass Project (PE-11011) Staff is planning a separate report to Council following the 2017 Council summer break that will focus on the status of the 2014 Council Infrastructure Plan and the challenges faced in completing the plan within the constraints of available funding. The following are some of the key considerations for the information presented in the project update tables: The status information is current as of the May/June 2017 timeframe The individual project tables align with the Capital Improvement Fund categories in the FY 2017-2021 capital budget: Buildings and Facilities, Parks and Open Space, Streets and Sidewalks, and Traffic and Transportation. Enterprise Fund projects follow the order of their respective Fund in the capital budget New projects and budget adjustments in the proposed FY 2018-2022 capital budget are not included, but will be reflected in the next semiannual update report Additional project information is available in the FY 2017-2021 capital budget Cubberley Property Infrastructure Fund projects are included in the Buildings and Facilities table Each project table is divided into a section for one-time projects and a section for recurring projects that have annual ongoing funding City of Palo Alto Page 3 Budgetary figures include staff salaries and benefits for projects to which salaries and benefits have been allocated Completed Projects Projects completed to date in FY 2017 include the following: Capital Improvement Fund (general fund): Baylands Nature Interpretive Center Facility Improvement (PE-15029) Bowden Park Improvements (PE-13008) Byxbee Park Trails (PE-13020) City Hall First Floor Renovations (PE-12017) City Hall Floor 3 Remodel (PE-17002) Lucie Stern Buildings Mechanical and Electrical Upgrades – Phase 1 (PE- 14015) Park Maintenance Shop Remodel (PG-09003) Sarah Wallis Park Improvements (PG-12004) Stanford/Palo Alto Playing Fields Soccer Turf Replacement (PG-13001) Enterprise Funds: Airport Perimeter Fence (AP-16003) Channing Avenue/Lincoln Avenue Storm Drain Improvements (SD-11101) Electric Substation Battery Replacement (EL-15001) Gas Distribution System Model (GS-14004) Gas Main Replacement – Project 21 (GS-11000) Household Hazardous Waste Station Collection Facility Improvements (RF- 16001) Sand Hill/Quarry Road 12kV Electric Intertie (EL-13006) Wastewater Collection System Rehabilitation/Augmentation Project 23 (WC-10002) Water Main Replacement – Project 25 (WS-11000) Water System Master Plan (WS-15004) These completed projects do not include the significant amount of annual work completed under ongoing recurring projects, such as streets and sidewalks City of Palo Alto Page 4 repairs, parking lot maintenance, roofing replacements, and regular maintenance of Utilities assets. Projects Under Construction Projects that are currently under construction include the following: Capital Improvement Fund (general fund): Downtown Mobility and Safety Improvements (PL-16001) Golf Reconfiguration and Baylands Athletic Center Improvements (PG- 13003) Municipal Service Center Lighting, Mechanical, and Electrical Improvements (PF-16006) Parking Lot Q Elevator Modernization (PF-16003) Residential Preferential Parking (PL-15003) Enterprise Funds: Electric Substation Battery Replacement (EL-15001) HCB Pilot Wire Relay Replacement (EL-17005) Matadero Creek Storm Water Pump Station and Trunk Line Improvements (SD-13003) Maybell 1&2 4/12kV Conversion (EL-14004) New Dewatering and Loadout Facility (WQ-14001) Rebuild Underground District 24 (EL-10006) Rebuild Underground District 19 (EL-11008) Reconfigure Quarry Feeders (EL-14005) Security at City Gas Receiving Stations (GS-15001) Seismic Water System Upgrades (WS-09000) Underground District 46 – Charleston/El Camino Real (EL-12001) Underground District 47 – Middlefield, Homer, Webster, Addison (EL- 11010) Wastewater Collection System Rehabilitation / Augmentation Project 24 (WC-11000) City of Palo Alto Page 5 Wastewater Collection System Rehabilitation / Augmentation Project 25 (WC-12001) Wastewater Collection System Rehabilitation / Augmentation Project 26 (WC-13001) Wastewater Collection System Rehabilitation / Augmentation Project 27 (WC-14001) Water Main Replacement – Project 26 (WS-12001) Water Regulation Station Improvements (WS-07000) Water Reservoir Coating Improvements (WS-08001) As described above for completed projects, the list of projects under construction does not include work currently being conducted under recurring CIP projects. Resource Impact This is an information report. Attachments: Attachment A: Buildings and Facilities Projects Attachment B: Parks and Open Space Projects Attachment C: Streets and Sidewalks Projects Attachment D: Traffic and Transportation Projects Attachment E: Airport Fund Projects Attachment F: Electric Fund Projects Attachment G: Fiber Optics Fund Projects Attachment H: Gas Fund Projects Attachment I: Refuse Fund Projects Attachment J: Storm Drain Fund Projects Attachment K: Wastewater Collection Fund Projects Attachment L: Wastewater Treatment Fund Projects Attachment M: Water Fund Projects Buildings and Facilities Projects – Page 1 of 11 Buildings and Facilities Projects One-Time Projects Baylands Boardwalk Improvements (PE-14018) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $195,097 $1,510,734 Public Works Design Winter 2020 Project Status: This project will replace the existing boardwalk with similar alignment and configuration. Council approved a design contract with Biggs Cardosa Associates in August 2016. The project is currently in the preliminary design and environmental assessment phase, to be completed in 2017. Pending agency reviews and approvals of permits, construction may begin as soon as September 2018. Construction may occur in two five-month phases, with expected completion in Winter 2020. Baylands Flood Protection Levee Improvements (PE-17006) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $1,000,000 Public Works Pre-design Fall 2019 Project Status: This project funds design and environmental review of improvements to the existing network of flood protection levees in the Palo Alto Baylands between San Francisquito Creek and Mountain View. The work is being implemented as an element of the San Francisquito Creek Joint Powers Authority’s SAFER Bay project, and will begin upon the completion of the SAFER Bay project’s Feasibility Study for the Palo Alto area. Baylands Nature Interpretive Center Exhibit Improvements (AC-14001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $56,000 Community Services Pre-design Summer 2017 Project Status: This project will replace worn out or non-functioning exhibits at the Baylands Nature Interpretive Center, including signage and graphics to make the facility more usable for science programs, public use, and facility rentals. Replacement of exterior signage is being coordinated with the Baylands Nature Interpretive Center Facility Improvements project in FY 2017 and with the Baylands Boardwalk Improvements in subsequent years. The replacement railing designs for the Center and Boardwalk will accommodate new signs and exhibits. Current funding allows reprinting the original exterior signs, but insufficient to address exhibits. Staff is seeking grant funds for new exhibits. Attachment A Buildings and Facilities Projects – Page 2 of 11 Baylands Nature Interpretive Center Facility Improvements (PE-15029) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $203,595 $889,452 Public Works Completed Spring 2017 Project Status: This project is complete. The project included replacement of decking, railings, structural framing members, exterior wood flooring, and cabinetry, restroom reconfiguration, and Americans with Disabilities Act (ADA) improvements. City Hall First Floor Renovations (PE-12017) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,812,968 $3,974,963 Public Works Completed Summer 2016 Project Status: Project is complete. Remaining funding is being used for new elevator control panels and replacement of the front gray-painted panels inside the elevators. City Hall Floor 3 Remodel (PE-17002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $440,000 Public Works Completed Spring 2017 Project Status: This project improved the Utilities Department administrative offices on the third floor of City Hall. It included new carpet, wall reconfiguration, a kitchenette, cabinets, paint, soundproofing, office furniture, doors, and associated building systems. Construction was completed in mid-June 2017. City Hall Floor 4 Remodel (PE-17008) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $350,000 Public Works Design Fall 2018 Project Status: This project will improve the Administrative Services Department offices on the fourth floor of City Hall. It includes new carpet, wall configuration, cabinets, paint, soundproofing, office furniture, doors, and associated building systems. Design is currently 75% complete. City Hall Floor 5 Remodel (PE-17009) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $400,000 Public Works Design Fall 2017 Project Status: This project will improve the Planning and Community Environment Department offices on the Buildings and Facilities Projects – Page 3 of 11 fifth floor of City Hall. It includes new carpet, wall reconfiguration, a kitchenette, cabinets, paint, soundproofing, office furniture, doors, and associated building systems. Design is currently 90% complete. Civic Center Electrical Upgrade & EV Charger Installation (PE-17010) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $650,000 Public Works Design Fall 2017 Project Status: The project will replace the aging Civic Center electrical switchgear and motor control centers, and will purchase and install approximately 43 new Level 2 Electric Vehicle charging stations at City parking garages, including the Civic Center garage. A request for proposals (RFP) for design-build services is currently being drafted. A contract for design-build services is expected to require Council authorization in late summer 2017. Civic Center Waterproofing Study and Repairs (PE-15020) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $9,669 $282,161 Public Works Study Summer 2018 Project Status: This project includes a condition assessment of the Civic Center plaza deck structural system. In late 2016, RDH Building Science, Inc. was hired to investigate the problem. The results indicated that the expansion joint on the plaza can be repaired, and staff is currently waiting for a design services proposal to prepare construction documents for the replacement. Fire Ringdown System Replacement (FD-14002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $157,500 Fire Design Fall 2018 Project Status: This project will replace the current ringdown system that provides an audible alert of calls for service in the fire stations. Staff has selected a vendor using a competitively bid contract from another agency. The system is currently in the design phase and installation will be coordinated to coincide with the Fire Station remodel schedule. The proposed FY2018 capital budget includes additional funding needed to implement the system. Fire Station 1 Improvements Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Buildings and Facilities Projects – Page 4 of 11 (PF-14002) $39,894 $491,905 Public Works Design Summer 2017 Project Status: The project is intended to convert the existing open sleeping quarters into individual rooms to address gender issues and privacy concerns. The project will also update the ring down system and IT infrastructure. The scope of the project is under review and may be redefined due to the potential incompatibility of the proposed dorm room configuration with the building structural system. Fire Station 3 Replacement (PE-15003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $269,060 $7,219,814 Public Works Design Winter 2019 Project Status: This project will replace the existing Fire Station at Middlefield Road and Newell Road with a new structure that meets essential services standards and current program needs. Shah Kawasaki Architects, Inc. (SKA) obtained Architectural Review Board (ARB) approval of their design on March 2, 2017. A temporary station is planned at 2000 Geng Road to house Fire Station 3 operations during construction. A pre- qualification of potential contractors for Fire Station 3 will be conducted in June/July 2017. Building permit approval is targeted for October 2017 and formal bids would be solicited directly after that. Construction is anticipated to start in November 2017 and be complete in early 2019. Foothills Fire Cameras (FD-13000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $65,000 Fire Pre-design Summer 2018 Project Status: This project will install thermal imaging infrared long range cameras for the detection of fires and heat signatures in the Palo Alto and Stanford foothills. The project is currently on hold while CalFire conducts a system demonstration in the Santa Cruz Mountains. The project will fund Palo Alto’s contribution to the regional project. The completion date is dependent on the progress of the CalFire study. Internal Alarm System Replacement (PD-14000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $78,000 Police Design Fall 2017 Project Status: This project will replace the citywide system of panic alarms from various departments and the Council Chambers. Staff has issued an RFP and will review responses and select a vendor for installation in the first quarter of fiscal 2018. Buildings and Facilities Projects – Page 5 of 11 Lucie Stern Buildings Mechanical and Electrical Upgrades (PE-14015) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $440,363 $3,247,248 Public Works Construction Winter 2018 Project Status: This project will replace and upgrade the mechanical, electrical, and fire/life safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Theater, and Lucie Stern Community Center. Construction began in July 2016. The upgrades include the addition of air conditioning for Lucie Stern Community Center, and the new system was completed in April 2017. Electrical work in the Community Theatre was completed in September 2016. Fire Sprinkler and fire alarm work in the entire facility was also completed in April 2017. Mechanical and electrical work in the Children’s Theatre was deferred due to costs exceeding the budget. Staff plans to bid this work with additional proposed budget in FY 2018. Mitchell Park Library and Community Center (PE-09006) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $47,514,799 $50,548,582 Public Works Completed Fall 2014 Project Status: The project is complete and operational. Follow-up work to install a drive-up book drop was completed in November 2016. Additional construction work is in progress to install sound-dampening wall treatments in the lobby and children’s area of the library. The wall treatments are expected to be complete in summer 2017. Municipal Service Center Lighting, Mechanical, and Electrical Improvements (PF-16006) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $25,055 $1,474,543 Public Works Construction Spring 2018 Project Status: This project provides for the replacement of original mechanical and electrical systems and lighting installed in 1966. It also includes design and construction for office renovations for the Zero Waste group. On October 4, 2016 Council awarded a design contract to Salas O’Brien. The project will evaluate the feasibility of converting existing old natural gas-powered systems to electric-powered systems per the Sustainability/Climate Action Plan strategy. A construction contract for the Zero Waste office remodel was awarded in June 2017. The office remodel work is expected to be complete by mid-November 2017. A second contract is anticipated for the site-wide mechanical and electrical upgrades. Design for that work is still in progress and is expected to be ready for bidding in mid-summer 2017. Buildings and Facilities Projects – Page 6 of 11 New California Avenue Area Parking Garage (PE-18000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $10,355,098 Public Works Design Summer 2019 Project Status: The new California Avenue Area Parking Garage is part of the Infrastructure Plan and is being integrated with the new Public Safety Building (PSB). The PSB will be placed on Lot C-6 and the new garage will be placed on Lot C-7. Per Council direction in April 2017, the garage will have 2 basement levels and 4 above- ground levels to provide 636 parking stalls. Construction is expected to begin in 2018 and complete in late summer 2019. New Downtown Parking Garage (PE-15007) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $14,488 $13,688,965 Public Works Pre-design Winter 2020 Project Status: Council approved a design contract with Watry Design, Inc. to design a parking structure at existing parking Lot D (Waverley/Hamilton) in December 2016. In April 2017, Council approved a parking program to include 5 levels above grade and 1 level below grade including a retail space along the Waverley frontage. An EIR scoping meeting was held in May and preliminary ARB review is expected in August. A Draft EIR is expected to be released in late 2017. New Public Safety Building (PE-15001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $218,581 $57,843,823 Public Works Design Spring 2021 Project Status: This project will provide a new, modern public safety building (PSB) that will meet essential services standards and the current and future needs of the public safety departments. The PSB and new garage in the California Avenue business district are now an integrated project and both are part of the Council Infrastructure Plan. In December 2016, a design contract was awarded to RossDrulisCusenbery. In April, Council selected the parking program for the associated parking structure. The EIR process has begun and staff anticipates EIR certification and approval of the design by Council in December 2017. A preliminary ARB review Buildings and Facilities Projects – Page 7 of 11 was held on June 1. Construction of the garage will begin in 2018 and complete in late summer 2019. The PSB will break ground as soon as the garage is open to the public and is expected to complete construction in 2021. Park Maintenance Shop Remodel (PG-09003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $71,436 $94,419 Community Services Completed Summer 2016 Project Status: This project renovated and remodeled the Parks maintenance shop for safety and efficient use of the space. A dual use meeting space and break room was created, walls were fully enclosed, and covered exterior storage was added. This project was completed in Summer 2016. Parking Lot Q Elevator Modernization (PF-16003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $170,608 Public Works Construction Summer 2017 Project Status: This project will modernize the existing elevator at Parking Lot Q. Construction is underway and should be complete by the end of June 2017 Performing Arts Venues Soft Goods Replacement (AC-17000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $55,000 Community Services Design Summer 2018 Project Status: This project will replaced damaged or non-functioning seats at Children’s Theatre, Community Theater, and Cubberley Theatre. Rinconada Library New Construction and Improvements (PE-11000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $24,499,333 $25,600,100 Public Works Completed Fall 2014 Project Status: This project is complete and operational. Follow-up work to install a drive-up book drop was completed in November 2016. Roth Building Maintenance (PF-07011) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $179,322 $224,395 Public Works Ongoing Fall 2017 Buildings and Facilities Projects – Page 8 of 11 Project Status: Most of the funding in this CIP was defunded previously leaving only a small amount of money for annual ongoing maintenance. Ventura Buildings Improvements (PE-15011) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $41,807 $878,413 Public Works Design Winter 2018 Project Status: This project will replace or upgrade the mechanical and electrical systems and provide accessibility improvements for the Ventura facility. Advanced Design Consultants was awarded a contract in August 2016 for design services. Design is nearly complete and bidding is expected in July 2017. Construction will be carefully coordinated with the current tenant, Palo Alto Community Childcare (PACC). Construction completion is expected by early 2018. Cubberley Community Center Master Plan (CB-16001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $477,291 Community Services Study Fall 2019 Project Status: This project supports the development of a Master Plan for future use of the Cubberley Community Center site by the City and Palo Alto Unified School District. The City and the School District intend to release a Request for Proposals in 2017 for a Consulting Firm experienced in creative and effective public engagement and design thinking processes to assist with master planning of the Cubberley Community Center with the goal of having a contract in place by December 2017. Cubberley Repairs (CB-17001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $250,000 Public Works Design To be determined Project Status: This project funds repairs and minor improvements at Cubberley Community Center. Minor improvements such as painting, sidewalk repairs, and breezeway pavement resurfacing are currently under consideration for implementation in fall 2017. Recurring Projects Buildings and Facilities Projects – Page 9 of 11 Americans With Disabilities Act Compliance (PF-93009) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $198,244 $367,263 Public Works NA Recurring Project Status: This project provides accessibility upgrades to City facilities and equipment. It includes continued funding for improvements such as path of travel, restrooms, drinking fountains, and counters. Work in FY 2017 includes the update to the citywide ADA Transition Plan that began in November 2015. Building Systems Improvements (PF-01003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $105,967 $310,481 Public Works NA Recurring Project Status: This project provides electrical, mechanical, plumbing, structural, and security upgrades for City facilities. The installation of a new boiler for the Golf Course Café was completed in August of 2016. Other work underway for FY 2017 includes new electrical service for the Golf Course cart charging area. The design for the electrical upgrade for the golf cart charging area is 90% complete. Replacement of the building transformer and building switchgear has been added to the design. Construction for this project is scheduled for early fall 2017. California Avenue Parking District Parking Improvements (PF-14004) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $175,333 $29,600 Public Works NA Recurring Project Status: This project maintains parking lots in the California Avenue Business District. Parking Lots 2 and 8 were repaved in April as part of Street Maintenance CIP’s FY 2016 overlay project. The FY 2017 plan includes resurfacing of lots 1, 4 and 9. These lots will be completed as part of the Street Maintenance CIP’s FY 2017 overlay project that is expected to begin in summer 2017. City Facility Parking Lot Maintenance (PE-09003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $6,565 $607,594 Public Works NA Recurring Project Status: This project maintains parking lots and walkways at City facilities. Fire Station #5 parking lot was repaved as part of the Street Maintenance CIP’s FY 2016 overlay project in October 2016. Fire Station #2 and the Stanford/Palo Alto Soccer Fields parking lots were resurfaced in September 2016 as part of the Street Buildings and Facilities Projects – Page 10 of 11 Maintenance CIP’s FY 2017 preventive maintenance project. The FY 2018 plan includes parking lot surfacing at the Golf Course, Ventura Community Center and Midtown parking lots. The work is expected to be completed in fall 2017. Facility Interior Finishes Replacement (PF-02022) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $46,356 $440,000 Public Works NA Recurring Project Status: This project improves the interior finishes of City facilities, including flooring, walls, cabinets, paint, lighting, ceiling tiles, soundproofing, fixed office furniture, doors, windows, and associated fire/life safety, mechanical, electrical and plumbing code compliance requirements. Replacement of outdated cubicle furniture on City Hall Level 6 was completed in January 2017. Other FY 2017 work includes minor improvements and repairs to the Police Department A Level restrooms, showers and locker rooms. Roofing Replacement (PF-00006) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $221,215 $356,735 Public Works NA Recurring Project Status: This project replaces existing roofs at City facilities that have outlived their useful lives. Replacement of the Fire Station #2 roof was recently completed. The Rinconada Pool and Park Restroom/Snack Bar roof replacement will be constructed in June 2017. University Avenue Parking Improvements (PF-14003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $30,646 $447,687 Public Works NA Recurring Project Status: This project maintains parking lots and parking structures within the University Avenue Downtown Business Parking District. Parking lots F and O were resurfaced as part of the Street Maintenance CIP’s FY 2017 preventive maintenance project in September 2016. The FY 2018 plan includes resurfacing parking lots C and K as part of the Street Maintenance FY 2018 preventive maintenance project. Lot C is being postponed to coordinate construction with the Avenidas expansion project next door. Cubberley Roof Replacements Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Buildings and Facilities Projects – Page 11 of 11 (CB-16002) $4,871 $807,390 Public Works NA Recurring Project Status: This project replaces existing roofs at Cubberley Community Center that have outlived their useful lives. Cubberley Wings M and P were recently completed, and reroofing of the Multipurpose building is occurring in June 2017. Parks and Open Space Projects – Page 1 of 6 Parks and Open Space Projects One-Time Projects Baylands Comprehensive Conservation Plan (PG-17000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $330,000 Community Services Study Winter 2018 Project Status: This project will develop a conservation plan examining native vegetation, wildlife habitat, and public access for trails, recreation amenities, and interpretive messaging. Staff interviewed and selected a consultant, AECOM, to create the plan. The contract will go to Council for approval on June 12, 2017. In June, staff and the consultant will engage with the community and start the project. Baylands Emergency Access Levee Repair (OS-09002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $54,298 $320,000 Community Services Design Fall 2019 Project Status: This project is to repair a small section of failed levee near the Baylands Nature Center. Progress depends on acquiring the required regulatory permits which have not been issued due to the potential need for a mitigation plan and re-design that would require additional planning and staff resources. Buckeye Creek Hydrology Study (PG-15000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $24,115 $190,382 Community Services Study Fall 2017 Project Status: This project will analyze flooding conditions, recommend flood control structures, and provide drainage and erosion control solutions for the creek located within Foothills Park. The study will also consider maintenance needs and land stewardship practices. Council has approved a consultant contract and the project started in Summer 2016. The consultant is currently completing the draft final report. In June 2017, Staff will conduct a second community meeting and review the draft plan with the Parks and Recreation Commission. Staff will bring the draft report to Council in August. Attachment B Parks and Open Space Projects – Page 2 of 6 Byxbee Park Trails (PE-13020) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $142,282 $334,607 Public Works Completed Fall 2016 Project Status: This project provides trails and amenities over the remaining area of the landfill cap. With the exception of new interpretive signs, the project is complete. Five new interpretive signs will be installed in summer 2017. Golf Reconfiguration & Baylands Athletic Center Improvements (PG-13003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,111,485 $11,294,974 Public Works Construction Fall 2017 Project Status: This project involves the complete rehabilitation of the Palo Alto Municipal Golf Course, including a new layout for the course, new restrooms, new water-saving turf and irrigation system, and rebranding of the course as the Baylands Golf Links. The project is coordinated with the San Francisquito Creek Joint Powers Authority’s (JPA) Flood Protection Project along San Francisquito Creek. State and Federal regulatory permits were issued in Spring 2016 and the course closed in July 2016 to begin construction. The project is on-schedule and on-budget. The project is currently in the grass grow-in phase, and the new golf course is anticipated to open in November 2017. Mitchell Park Adobe Creek Bridge Replacement Project (PE-17000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $250,000 Public Works Pre-Design Summer 2017 Project Status: This project involves the removal and replacement of the bridge over Adobe Creek in Mitchell Park with a wider bridge that will address safety concerns. The project is anticipated to start in Spring 2017 with an RFP requesting a bridge design and installation from bridge manufacturers. The design and schedule will be reviewed with the community with an expected installation occurring in Summer 2017. Rinconada Park Master Plan and Design (PE-12003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $394,870 $496,355 Public Works Study Fall 2017 Project Status: This project includes development of a plan for short, medium and long range improvements to Parks and Open Space Projects – Page 3 of 6 the regional park including the consideration of pathways, new restrooms and playgrounds, new landscaping, and revitalization of underutilized areas within the park. The project was delayed to include CEQA assessment, including the proposed new Junior Museum and Zoo location and reconfiguration of the Lucie Stern parking lot. The environmental assessment is scheduled for completion in summer 2017. The draft long range plan report and mitigated negative declaration are scheduled to be completed in the summer of 2017 and presented to Council for approval in Fall of 2017. Stanford/Palo Alto Playing Fields Netting (PG-12001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $50,000 Community Services Design Summer 2018 Project Status: This project provides additional netting to prevent soccer balls from going over the fence into the parking lot of the adjacent property at 650 Page Mill Road. Although there is netting behind the soccer goal areas, there is still a gap of approximately 160 feet without netting in the area between the two soccer fields. This project was to be completed concurrently with the synthetic turf replacement project at Stanford Palo Alto Playing Fields. However, the contractor for the turf replacement opted not to add this project as additional work. Staff is considering alternatives for completing this project or further adjusting use of the practice area between the two fields to reduce the incidences of balls going over the fence. Stanford/Palo Alto Playing Fields Soccer Turf Replacement (PG-13001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $136,270 $1,499,979 Community Services Completed Fall 2016 Project Status: This project is for the replacement of synthetic turf at the Stanford/Palo Alto Playing Fields. Construction was completed in August 2016 and the fields were re-opened for athletic use. Sarah Wallis Park Improvements (PG-12004) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,044 $65,000 Community Services Completed Winter 2017 Project Status: This project improved site amenities with new concrete pathways, replaces old furnishings, and Parks and Open Space Projects – Page 4 of 6 upgrades landscape for drought tolerance. This project was completed in March 2017. Cubberley Field Restroom (CB-17002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $285,000 Public Works Pre-Design Summer 2018 Project Status: This project will provide a new restroom in the sports field area of the Cubberley Community Center. The project is expected to start in Summer 2017 with design and public outreach, with an anticipated installation in Summer 2018. Recurring Projects Art In Public Spaces (AC-86017) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $59,495 $534,423 Community Services NA Recurring Project Status: This project funds ongoing temporary and permanent artworks throughout the City. These funds are primarily comprised of pooled Municipal Percent for Art allocations as well as funds rolled over from previous years due to the multi-year nature of public art projects. The FY 2017 funds support Susan Narduli’s Conversation in City Hall Lobby, ongoing temporary installations on King Plaza, such as The Running Fence by Lee Benson, the Patrick Dougherty installation at the Art Center, and provides matching funds for the NEA Grant-funded Code:ART initiative to activate the downtown alleys and underutilized spaces. Some of the current Municipal Projects in process include: Fire Station 3, Charleston/Arastradero Corridor, Highway 101 Bike and Pedestrian Bridge, Bike Boulevards, and the Municipal Golf Course. The recently adopted Public Art and Master Plan provides a ten year plan for the future prioritization of public art projects in Palo Alto. Benches, Signage, Walkways, Perimeter Landscaping (PG-06003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $244,422 $245,951 Community Services NA Recurring Project Status: This recurring project restores and replaces existing benches, signage, fencing, walkways, and landscaping at various City facilities. In FY 2017 site furnishings were installed at Sarah Wallis Park, Scott Park, Parks and Open Space Projects – Page 5 of 6 and various locations throughout the City. In addition, work is scheduled for the Lucie Stern Brick Pathway repair project in Summer 2017. Off-Road Pathway Resurfacing And Repair (OS-09001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $93,311 $199,080 Community Services NA Recurring Project Status: This project resurfaces failing and broken pathways within the City. Pathways are chosen based on inspections and resident requests. Improvements at the entrance to Bol Park Pathway near Laguna Avenue were completed in September 2016. Open Space Lakes And Pond Maintenance (OS-00002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $24,591 $65,409 Community Services NA Recurring Project Status: This project rehabilitates lakes and ponds in open space nature preserves to protect wildlife habitat and recreational safety and to meet State Division of Safety of Dams requirements. FY2017 plan to remove and off haul cattails from Boronda Lake is scheduled for Fall 2017 and Spring 2018. Open Space Trails and Amenities (OS-00001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $391,713 $235,859 Community Services NA Recurring Project Status: This project restores unpaved trails, fences, picnic areas, and campgrounds at Foothills Park, the Baylands, and the Pearson-Arastradero Nature Preserves. FY 2017 trail maintenance of all Open Space Preserves for the fall season is complete, and additional trail maintenance scheduled for summer 2017 through October 2017. Parks and Open Space Emergency Repairs (PG-09002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $104,373 $111,157 Community Services NA Recurring Project Status: This project funds the replacement or extensive repair of playgrounds, play yard surfaces, wooden structures, park amenities and play equipment in the event of storms, fire, vandalism or structural failure. FY 2017 projects completed include emergency repairs to the Baylands Sailing Station, Golf Course storm Parks and Open Space Projects – Page 6 of 6 drain pump station repairs and various playground repairs . Tennis and Basketball Court Resurfacing (PG-06001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $353,510 $497,460 Community Services NA Recurring Project Status: This project repairs and resurfaces tennis and basketball courts in various Palo Alto parks. Completed projects for In Summer FY 2017 include the reconstruction of the Mitchell Park tennis courts (1-4) was completed. Streets and Sidewalks Projects – Page 1 of 3 Streets and Sidewalks Projects One-Time Projects Newell Road/ San Francisquito Creek Bridge Replacement (PE-12011) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $800,935 $4,077,406 Public Works Environmental Fall 2019 Project Status: This project will remove and replace the Newell Road bridge over San Francisquito Creek with a clear span over the creek to allow the channel to convey up the natural capacity of the San Francisquito Creek, approximately 7200 cfs, with 1.5-foot of freeboard and will provide improved safety for vehicular, bicycle, and pedestrian traffic. The focus in calendar year 2017 is completion of the project draft environmental impact report, which will analyze potential traffic, aesthetic, and other environmental impacts and propose appropriate mitigation measures. The project is being closely coordinated with the City of East Palo Alto, Santa Clara Valley Water District, and the San Francisquito Creek Joint Powers Authority (JPA). The Fall 2019 estimated completion is in reference to the in-channel work that addresses potential flood risk, but other aspects of the project such as road reconfigurations may not be completed until 2020. Streetlights Condition Assessment (PE-13014) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $8,799 $257,050 Public Works Design Fall 2018 Project Status: This project will assess the condition and maintenance needs of the City’s streetlight system. Due to other project priorities and workload this project has been put on hold until FY 2018. Recurring Projects Curb and Gutter Repairs (PO-12001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $43,320 $447,063 Public Works NA Recurring Project Status: This project repairs curbs and gutters uplifted by tree roots. The curb and gutter locations are selected from a list reported by the public and evaluated by Public Works staff. Upcoming work in the FY 2018 Attachment C Streets and Sidewalks Projects – Page 2 of 3 plan includes installation of valley gutters on various streets in the Barron Park neighborhood. Sidewalk Repairs (PO-89003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $2,688,975 $2,437,177 Public Works NA Recurring Project Status: This project repairs and replaces broken and uplifted sidewalks. The FY 2016 project, which is approximately 95% complete, addresses sidewalk deficiencies in Sidewalk Replacement Districts 23, 32 and 36. At the end of this project, the entire cycle of 23 Sidewalk Replacement Districts will be complete, a 30-year program completion. Staff will issue an RFP in June 2017 to evaluate the sidewalk program and assess potential improvements to the current district-based program. The contract for the evaluation will be brought to Council for approval in summer 2017. Sign Reflectivity Upgrade (PO-11000) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $97,525 $94,411 Public Works NA Recurring Project Status: This project includes the annual inventorying, upgrading and maintaining of all traffic signs. A list of signs not meeting the minimum requirement is derived from MUTCD-approved Nighttime Visual Inspection surveys. Street Lights Improvements (PO-05054) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $62,918 $467,982 Public Works NA Recurring Project Status: This project funds replacement for street light poles, pole foundations, luminaires and wiring as needed to restore or improve street lighting. A portion of the FY 2017 funding is being used for a painting contract to maintain existing street light poles. Street Maintenance (PE-86070) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $6,640,547 $6,634,615 Public Works NA Recurring Project Status: This project includes the annual resurfacing, micro-seal, crack seal and reconstruction of various city streets. Staff estimates there will be four construction contracts this fiscal year: FY 2017 Overlay Project, FY Streets and Sidewalks Projects – Page 3 of 3 2017 Middlefield/Lincoln Resurfacing Project and FY 2017 University Circle Pavement Repair Project and FY 2018 Preventive Maintenance Project will all start construction this summer. This project funds the street maintenance work that supports Council’s adopted goal of achieving a citywide average pavement condition index (PCI) score of 85, representing very good or excellent conditions, by 2019. The citywide pavement condition index score (PCI) at the end of 2016 was 83 and is expected to be 84 by the end of FY 2018. Thermoplastic Lane Marking and Striping (PO-11001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $93,488 $128,652 Public Works NA Recurring Project Status: This project maintains the thermoplastic markings on roadways. Most work is completed as part of the Street Maintenance Program’s annual contracts. Traffic and Transportation Projects – Page 1 of 7 Traffic and Transportation Projects One-Time Projects Charleston/Aras tradero Corridor Project (PE-13011) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $936,111 $11,316,196 Public Works Design Spring 2020 Project Status: This project, part of the Council Infrastructure Plan, will reconfigure the Charleston/Arastradero Corridor to provide new landscaped median islands, bulb outs, enhanced bike lanes and new street trees to complement the new lane configurations that were approved for permanent retention in 2008 and 2012. City Council approved the conceptual plan line for the corridor in September 2015. Design plans for the project are at 65% completion and ARB review is expected in July. Construction documents will finalized in the fall, with Phase I of construction expected to start in late 2017. Churchill Avenue Enhanced Bikeway (PL- 14000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $194,716 $1,352,274 Planning and Community Environment Design Summer 2018 Project Status: This project will provide a shared-use path along the north side of Churchill Avenue between the existing shared-use path at Castilleja Avenue and the Stanford Perimeter Trail, intersection improvements at Churchill Avenue and El Camino Real, to include a new dedicated westbound right-turn lane, and an improved bicycle connection to the Bryant Street Bicycle Boulevard east of Alma Street. Design plans for Phase 1 of the project are at 65% completion. Right-of-way discussions with PAUSD began in March 2016 and are slated to wrap up in summer 2017. Staff anticipates beginning construction in early 2018. An encroachment permit from Caltrans will need to be secured for the work within the El Camino Real right-of-way. Downtown Automated Parking Guidance Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $62,313 $2,191,016 Planning and Community Design To be determined Attachment D Traffic and Transportation Projects – Page 2 of 7 Systems, Access Controls, and Revenue Collection Equipment (PL-15002) Environment Project Status: This project includes design and installation of new downtown parking guidance systems, access controls and revenue collection equipment that will coordinated with both the Downtown Parking Wayfinding, PL-15004 project and the Downtown Parking Management Study that is scheduled to be completed at the end of 2016. Following City Council direction in April 2016, Staff has advanced the design of the single-space detection system with individual indicator lights. However, this project is currently on hold awaiting the results of the Downtown Parking Management Study, which may affect the content of the guidance signs. Downtown Mobility and Safety Improvements (PL-16001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $1,447,108 Planning and Community Environment Construction Fall 2018 Project Status: This project provides multi-modal safety improvements in Downtown Palo Alto, including, but not limited to, installation of countdown pedestrian signal heads and ADA-accessible vibra-tactile push buttons, installation of separated bikeways, addition of bicycle parking, traffic signal retiming and coordination, installation of transit amenities, and enhanced bicycle and pedestrian access to the Palo Alto Transit Center. Phase One, which included the replacement of all existing pedestrian signal heads with countdown pedestrian signal heads was completed in early 2017. Phase Two, which will include the construction of curb extensions and the installation of new pedestrian signal heads and pedestals, is currently scheduled to be constructed in 2018, as part of a larger Utilities Department project. The planning associated with potential changes to the signing and striping along Alma Street and University Avenue, which are scheduled for major utility work and resurfacing in the next two years, will begin in summer 2017. Downtown Parking Wayfinding (PL-15004) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $85,096 $1,114,756 Planning and Community Environment Design Fall 2018 Project Status: This project includes design and installation of new downtown parking wayfinding signage that will incorporate a new parking brand for the City and replace the existing parking signage to improve visibility of parking in Downtown Palo Alto. This project will be implemented in coordination with the planning and design Traffic and Transportation Projects – Page 3 of 7 work associated with Downtown Parking Guidance Systems, Access Controls and Revenue Collection Equipment, PL-15002 project, which will include several types of real-time parking availability displays. Following City Council direction in April 2016, Staff has advanced the design of blue wayfinding signs. This project is currently scheduled to be constructed in 2018, as part of a larger Utilities Department project. Embarcadero Road at El Camino Real Improvements (PL-15001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $406,108 $4,526,182 Planning and Community Environment Design To be determined Project Status: This project will provide bicycle, pedestrian and traffic circulation improvements along Embarcadero Road between Bryant Street and El Camino Real. Phase One was completed at the end of 2015. This included the upgrade of the traffic signal equipment at the high school/shopping center driveway and at the pedestrian crossing in front of the shopping center. For Phase Two, City Council voted in September 2016 to move forward with a variation of Concept Plan Alternative 1, which includes a protected intersection at El Camino Real and raised one-way separated bikeways along Embarcadero Road. Environmental analysis and final design began in October 2016. Staff anticipates beginning construction of Phase Two in early 2018. Highway 101 Pedestrian/Bicyc le Overpass Project (PE-11011) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,765,204 $15,266,401 Public Works Design Spring 2020 Project Status: This project, part of the Council infrastructure Plan, includes the design and construction of a new pedestrian bridge across Highway 101 at Adobe Creek. Council approved a design contract in May 2016. In November 2016, Council voted to proceed with a baseline bowstring truss bridge design, with the addition of enhanced amenities such as benches, drinking fountains and signage. The project is currently in the preliminary design and environmental assessment phase, to be completed in 2017. Construction is anticipated to begin in early 2019 and complete by Spring 2020. Quarry Road Improvements Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $26,386 $936,898 Planning and Design Spring 2017 Traffic and Transportation Projects – Page 4 of 7 and Transit Center Access (PL-16000) Community Environment Project Status: This project provides bicycle and pedestrian improvements along Quarry Road between El Camino Real and Welch Road, including, but not limited to, upgraded bicycle lanes and crosswalks, innovative intersection treatments for bicyclists, and improved access to transit stops. It also includes improvements to the bicycle and pedestrian connection between the Palo Alto Transit Center and the intersection at El Camino Real and Quarry Road, including development of passive green space, installation of lighting, and landscaping. Due to planned utility work along Quarry Road by Stanford University, the Quarry Road improvements have been separated from the transit center access segment through the park. Construction on the transit center access segment began in early 2017 and will be complete by July 2017, while the Quarry Road improvements have been placed on hold until the utility work is complete. Railroad Grade Separation (PL-17001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $1,908,307 Planning and Community Environment Planning Summer 2018 Project Status: This project will advance the railroad grade crossing circulation study and context sensitive solutions study envisioned by the City Council. It will also fund the preparation of a Project Study Report and environmental analysis that will be required for the City to realize its goals of advancing grade separations. A Rail Program Management Services contract funded through this project was approved by City Council in October 2016. This three-year contract includes supporting the Rail Committee between September 2016 and June 2018, convening and supporting a Rail Technical Group throughout 2017, representing the City during the California High Speed Rail environmental analysis phase, which is scheduled for completion at the end of 2017, completing the rail corridor circulation study and context sensitive alternatives analysis by the end of 2017, and preparing environmental analyses, Project Study Reports, 15% preliminary designs, and financing plans for the preferred alternative for each railroad grade crossing within the city by June of 2018. Residential Preferential Parking (PL- 15003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $375,661 $361,292 Planning and Community Construction To be determined Traffic and Transportation Projects – Page 5 of 7 Environment Project Status: This project implements the signage needs of the residential preferential parking program. Phase 1 of the Downtown Residential Preferential Parking Program was implemented in October 2015, Phase 2 was implemented in April 2016, and the program was made permanent in April 2017. The Evergreen Park-Mayfield Residential Preferential Parking Program pilot began in April 2017 and the Southgate Residential Preferential Parking Program pilot will begin in fall 2017, if approved by Council. Recurring Projects Bicycle and Pedestrian Transportation Plan Implementation (PL-04010) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $328,020 $2,242,795 Planning and Community Environment NA Recurring Project Status: This project, part of the Council Infrastructure Plan, includes planning, design and construction of bicycle boulevards, enhanced bikeways, shared-use paths, bicycle parking and a citywide bicycle sharing system in accordance with the Palo Alto Bicycle + Pedestrian Transportation Plan, which was adopted by City Council in 2012. This project includes two projects that were formerly listed as separate CIP Projects: CIP Projects PL-14001, Midtown Connector, and PL-11001, Dinah Summerhill Pedestrian/Bicycle Path. Effective Fiscal Year 2017, these projects are included as part of this CIP. The Dinah Summerhill Pedestrian/Bicycle Path project includes construction of pedestrian/bicycle path on a public easement on the panhandle parcel of the Dinah's Hotel property. The path will provide access from Wilkie Way to the Redwood Gate development for connectivity to the public park. Improvements include an approximately 15' wide by 130' long shared-use path, fencing and landscaping. Construction was completed at the end of 2016. The Midtown Connector project originally included the planning, design and construction of a shared-use path along the Matadero Creek channel between Alma Street and West Bayshore Road, but has been modified significantly throughout the feasibility analysis phase. Following City Council direction in June Traffic and Transportation Projects – Page 6 of 7 2016, Staff has begun to advance the planning, design and construction of a two-way separated bikeway along Loma Verde Avenue between Alma Street and West Bayshore Road. A letter requesting an opinion on whether the grant funding from Santa Clara County can be used for the separated bikeway was submitted to the County staff in October 2016 and the Board of Supervisors authorized the reprogramming of the funding. Concept plans for Bryant Street Bicycle Boulevard Extension, Maybell Avenue Bicycle Boulevard and Park Boulevard/Wilkie Way Bicycle Boulevard were adopted by City Council in 2015. Concept plans for Amarillo Avenue/Moreno Avenue Bicycle Boulevard, Bryant Street Bicycle Boulevard Upgrade, Louis Road/Montrose Avenue Bicycle Boulevard and Ross Road Bicycle Boulevard were adopted by Council in April 2016. Final design for Amarillo Avenue/Moreno Avenue Bicycle Boulevard, Bryant Street Bicycle Boulevard Upgrade, Louis Road/Montrose Avenue Bicycle Boulevard and Ross Road Bicycle Boulevard is complete and construction will begin in summer 2017. Final design for Bryant Street Bicycle Boulevard Extension, Maybell Avenue Bicycle Boulevard and Park Boulevard/Stanford Avenue/Wilkie Way Bicycle Boulevard will be completed in fall 2017, with construction beginning in summer 2018. Safe Routes To School (PL-00026) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $233,930 $463,376 Planning and Community Environment NA Recurring Project Status: This project provides funding for the City’s Safe Routes to School program, including school commute planning, encouragement activities, and capital improvements along local and collector streets that may be impacted by school commute activities. Typical capital improvements include traffic calming devices, enhanced crosswalks, and improved signage along suggested routes to school. In Fiscal Year 2017, traffic calming projects from prior years will continue and traffic studies will be pursued for locations in need of traffic calming and other safety countermeasures. Traffic Signal and Intelligent Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Traffic and Transportation Projects – Page 7 of 7 Transportation System Upgrades (PL-05030) $1,455,077 $985,497 Planning and Community Environment NA Recurring Project Status: This project provides funding for the design and construction of traffic signals, traffic signal communications networks, video surveillance projects for transportation use, and maintenance of the City’s traffic signal central system. The project includes the replacement of traffic signal controllers/cabinets, video detection systems, and other field equipment. Transportation and Parking Improvements (PL-12000) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $66,431 $574,472 Planning and Community Environment NA Recurring Project Status: This project provides funding for the implementation of miscellaneous neighborhood traffic calming improvements including neighborhood traffic studies and parking improvements. This project also funds the development of grant proposals used to procure funding for future projects. Airport Projects – Page 1 of 2 Airport Projects One-Time Projects Airport Apron Reconstruction (AP-16000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $102,888 $1,025,076 Public Works Design Spring 2021 Project Status: This project will design and reconstruct the failing and uneven Palo Alto Airport apron, and is being implemented in multiple phases. The contract for Phase 1 is currently out to bid, and staff is tentatively scheduled to bring the construction contract for Council approval in August 2017. Airport Perimeter Fence (AP-16003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $192,927 $2,003,540 Public Works Completed Spring 2017 Project Status: This project replaced the perimeter fencing and gates surrounding the Palo Alto Airport boundaries to prevent unauthorized access to the airport runway in accordance with Federal and State standards. The Airport Perimeter Fence project was substantially completed in spring 2017. Wildlife Hazard Plan (AP-16002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $63,415 Public Works Design Summer 2017 Project Status: This project will develop a Wildlife Hazard Management Plan (WHMP) to identify the specific actions the airport will take to mitigate the risk of wildlife strikes (conflicts between aircraft and wildlife) on or near the airport. The Wildlife Hazard Plan stakeholder group is comprised of airport users, Baylands advocates and staff from City departments. Work was commenced in Fiscal Year 2017, and will be completed in Fiscal Year 2018. Attachment E Airport Projects – Page 2 of 2 Recurring Projects None Electric Fund Projects – Page 1 of 11 Electric Fund Projects One-Time Projects 230 kV Electric Intertie (EL-06001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $576,802 $756,899 Utilities Study Ongoing Project Status: Funding for this project is used to perform technical feasibility studies to determine the general project requirements to establish a 230 kV electric intertie line and construct a 230/60 kV substation to connect the City's electric system directly to the 230kV transmission line. The City has presented its findings to Stanford University and SLAC National Accelerator Laboratory (under the oversight of the Department of Energy), the two other parties involved with facilitating this work. The City is waiting for a response from SLAC to determine whether this project will move forward. Capacitor Bank Installation (EL- 16002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $350,000 Utilities Design Spring 2018 Project Status: This project installs capacitor banks at electric substations and on distribution lines to ensure NCPA Power Factor requirements are met. Staff has performed an analysis on where capacitors are needed to provide VAR support to the system. This project has become a lower priority due to a decrease in the system electric load and staff shortages that have elevated other projects above this one. Colorado/Hopki ns System Improvement (EL-15000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $1,575,000 Utilities Study Spring 2020 Project Status: This project replaces deteriorating equipment which will increase system capacity and improve service reliability for the areas served by Hopkins and Colorado substations and adjacent substations. Staff has completed the initial cost/benefit analysis to assess various alternatives to meet distribution system needs. Once agreed to, preliminary designs will be developed to determine budget requirements for construction. Attachment F Electric Fund Projects – Page 2 of 11 East Meadow Circles 4/12kV Conversion (EL- 17001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $1,800,000 Utilities Study Summer 2019 Project Status: NEW - The project converts the primary electric distribution system in the East Charleston/Alma Street/East Meadow Drive/Middlefield Road area from 4 kV to 12 kV. This project is in the preliminary stages of assessment for engineering design. The project is being reevaluated to determine the scope of work that should be involved. Issues with replacing the rear-easement facilities may dictate a change in direction of the project scope. Electric Substation Battery Replacement (EL-15001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $293,869 $400,000 Utilities Completed Winter 2016 Project Status: This project replaces the batteries in all 9 of the City's electric substations. The batteries are used to provide uninterruptible power to protective relays, breakers, metering, and SCADA equipment. Construction on this project is completed. HCB Pilot Wire Relay Replacement (EL-17005) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $501,000 Utilities Construction Summer 2019 Project Status: This project replaces the existing HCB pilot wire relays with new microprocessor based line differential protective relays to protect the city’s 60kV sub-transmission line sections and equipment from damage due to faults (i.e. short circuits) on the 60kV line sections. Staff is completed the relay replacements between Quarry and Hopkins substations, Installation of fiber optic communication cables between Colorado, Maybell and Adobe Creek Substations, and is now working on installation of the relays and placing them in service. Maybell 1&2 4/12kV Conversion (EL- 14004) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $264,628 $449,999 Utilities Construction Winter 2017 Project Status: This project converts circuits 1 & 2 at Maybell substation from 4kV to 12kV, and Electric Fund Projects – Page 3 of 11 removes the remaining 4kV equipment at Maybell. Distribution system conversion work is completed. The protective relays at Maybell substation need to be relocated before the 4kV equipment can be removed. Completion of this project hinges on the relay relocation which is being done in project Substation Facility Improvements (EL-89044). Rebuild Underground District 15 (EL- 11003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $29,464 $481,077 Utilities Pre-design Winter 2018 Project Status: This project rebuilds and replaces the underground electric system in Underground District 15, the area bounded by Los Palos, Glenbrook, Pomona, and Arastradero. This project is in the preliminary stages of assessment for engineering design and work will be coordinated with EL- 16000 which is rebuilding the electric system along Arastradero Road. Work on this project has been delayed due to staffing shortages. Rebuild Underground District 16 (EL- 13003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $300,000 Utilities Pre-design Summer 2018 Project Status: This project rebuilds and replaces the underground electric system in Underground District 16, the area along Louis Road between Greer Street and Loma Verde Avenue. This project is in the preliminary stages of assessment for engineering design. Rebuild Underground District 19 (EL- 11008) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $149,023 $161,285 Utilities Construction Winter 2017 Project Status: This project rebuilds and replaces the underground electric system in Underground District 19, the area bounded by Forest Avenue, Waverley Street, Addison Avenue, and Alma Street. Much of this work is performed during the evening hours to avoid impacting commercial businesses, which increases the construction timeline. Construction by city staff is approximately 85% completed for this area. Work is being done in conjunction with EL-10006. Rebuild Prior Years Total Project Implementing Project Phase Project Electric Fund Projects – Page 4 of 11 Underground District 20 (EL- 14002) Actuals Budget Department Completion $0 $1,950,000 Utilities Design Winter 2018 Project Status: This project rebuilds and replaces the underground electric system in Underground District 20, the area bounded by Channing Avenue; Center Street; Hamilton Avenue; and Lincoln Avenue. This project is in the preliminary stages of assessment for engineering design. Rebuild Underground District 24 (EL- 10006) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,724,598 $2,701,199 Utilities Construction Winter 2017 Project Status: This project rebuilds and replaces the underground electric system in Underground District 24, the area bounded by Lytton Avenue; Bryant Street; Forest Avenue; and Alma Street. Much of this work is performed during the evening hours to avoid impacting commercial businesses, which increases the construction timeline. Construction by city staff is approximately 85% completed and further progress is delayed waiting for delivery of long lead-time materials. Work is being done in conjunction with Rebuild Underground District 19 (EL-11008). Rebuild Underground District 26 (EL- 16000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $760,000 Utilities Study Fall 2019 Project Status: This project rebuilds and replaces the underground electric system in Underground District 26 the area along Arastradero Road between El Camino Real and Hillview Avenue. This project is in the preliminary stages of assessment for engineering design and will be designed in conjunction with EL-11003 which is rebuilding the electric system on Los Palos/Glenbrook/Pomona area. Reconfigure Quarry Feeders (EL-14005) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $199,106 $1,030,453 Utilities Construction Winter 2017 Project Status: This project reconfigures how distribution circuits are connected to each substation transformer at Quarry Substation. The project estimate and construction drawings are completed. The job is released for construction but the project is delayed as we wait for Stanford to complete the Electric Fund Projects – Page 5 of 11 installation of boxes and conduit to facilitate the work. Sand Hill / Quarry 12kV Tie (EL-13006) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $17,907 $208,648 Utilities Completed Completed Project Status: This project installs new wire to connect circuits QR-24 and QR-27 in the Sand Hill/Quarry area. Construction to install the conduits and cable to create an additional connection between the two circuits from Quarry Substation is completed. Stanford- Customer Load Requirements (EL-17004) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $500,000 Utilities Pre-design Winter 2018 Project Status: NEW - This project installs new primary conduits, vaults, cables and equipment to serve new customer demands in the Quarry Road/Welch Road/Sand Hill Road area. Some costs related to this project are reimbursed to the city of the customer. Staff as had several meetings with Stanford Hospital and University to discuss expansion plans in the Stanford Medical Center area. Staff is waiting for information from Stanford on load projections and circuit/service reliability requirements to develop designs and cost estimates. Delays in Stanford’s schedule have impacted the completion of design work under this WBS. This WBS will be closed and funding from WBS 89028, Electric Customer Connections, will be used for future projects. Street Light System Street Light System Conversion Project (EL-10009) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,397,601 $2,464,069 Utilities Completed Completed Project Status: This project converts HPS streetlights to LED. Conversion of approximately 4500 cobrahead streetlight fixtures is complete. The project is currently in phase 3. Staff is reviewing possible alternatives for replacing/retrofitting decorative lights, including those with acorn, lantern, and globe type fixtures. No viable options have been identified for the decorative lights and the project will be closed. Substation 60kV Breaker Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Electric Fund Projects – Page 6 of 11 Replacement (EL-17002) $0 $600,000 Utilities Design Summer 2020 Project Status: This project replaces high voltage circuit breakers that interconnect the nine electric substations and two power switching stations that are reaching the end of their useful life and/or are now underrated for the use. Staff has completed the technical specification for the replacement circuit breakers and is going through the bid process for purchase. Two high voltage circuit breakers have been purchased and will be delivered in Summer 2017. Substation Security (EL-16003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,966 $250,000 Utilities Design Winter 2018 Project Status: This project installs facilities providing physical protection of electric substations from vandalism and intrusion. A professional services contract was awarded to Burns & McDonnell and a draft of the study is complete and is being reviewed by staff. Funding will be requested in future years to implement select security measures. Utility Site Security Improvements (EL-04012) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,456,149 $2,038,283 Utilities Pre-design Summer 2018 Project Status: This project adds electronic security systems at utility sites to protect equipment at electric substations, water pumping plants, reservoirs, and gas stations from intrusion and vandalism. To date, cameras and detection systems have been installed at 6 electric substations, 3 water stations, and 1 natural gas station to monitor facilities. Staff is working on finalizing software agreements and assessing need for electronic security at remaining substations. VA Hospital – Customer Load Requirements (EL-17003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $5,000,000 Utilities Pre-design Summer 2018 Project Status: This project is to meet the growing electric needs of the VA Hospital. Staff has had numerous discussions with VA Hospital on electric load growth at the hospital and anticipated needs from the utility. Much of the cost is reimbursed to the City by the VA Hospital. Staff has prepared preliminary designs for interim solutions and is awaiting additional information from VA to develop Electric Fund Projects – Page 7 of 11 long range plans to meet their future needs. Underground Distribution System Security (EL-13007) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $9,466 $891,362 Utilities Study Spring 2020 Project Status: This project purchases and installs equipment to secure underground electric distribution facilities used to provide electricity to utility customers in the City of Palo Alto, from vandalism, tampering, and theft to facilitate a safe, secure, and reliable electric system. Staff has been evaluating options for securing underground vaults and boxes and is drafting the technical specification and scope of work for a Request for Proposal to purchase and install suitable equipment. Work on this project has been delayed due to staffing shortages and higher priority work. Underground District 46 – Charleston/El Camino Real (EL- 12001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $164,568 $753,953 Utilities Construction Summer 2018 Project Status: This project undergrounds the existing overhead utility systems in the area along the 400 block of West Charleston and El Camino Real. Staff issued the second Invitation for Bid for installation of substructures, first was significantly higher than the engineer’s estimated cost, and is ready to award the contract. Underground District 47 – Middlefield, Homer, Webster, Addison (EL- 11010) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,499,968 $2,555,573 Utilities Construction Winter 2018 Project Status: This project undergrounds the existing overhead distribution system in the area bounded by Middlefield Road, Homer Avenue, Webster Street, and Addison Avenue. Installation of substructures is completed. Staff is installing electric facilities but will be delayed waiting for long lead time items from our switch vendor. Facility Relocation for Caltrain Modernization Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $2,700,000 Utilities Design Summer 2018 Project Status: This project allows for the relocation of overhead Utility Electric and Fiber Optic lines Electric Fund Projects – Page 8 of 11 (EL-17007) to provide adequate clearance from new electric lines being installed by the Peninsula Corridor Joint Powers Board (Caltrain) to convert their diesel powered commuter trains to electric power. The project consists of converting Caltrain from a diesel-hauled to Electric Multiple Unit trains. The installation of the Overhead Catenary System above the rails to power the trains will cause conflicts with the City's overhead electric and communication lines, as well as those owned by others, e.g. AT&T, Comcast, which cross the railroad tracks. Caltrain is looking to have the overhead lines relocated/removed by August 2018 for an anticipated project completion in 2020. In order to meet Caltrain's timeline, Utilities must obtain funding and start the design process in FY 2017. Project was put on hold until Caltrain received funding and gave utilities a notice that the project was moving ahead. Caltrain received Federal Funding on May 16, 2017. Staff is still waiting for written confirmation from Caltrain and agreement on cost sharing. Recurring Projects Electric Customer Connections (EL- 89028) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $2,482,576 $3,642,000 Utilities NA Recurring Project Status: This project installs services, transformers, and meters for new customers; upgrading of existing services; temporary service connections; and overhead and underground extensions for new or existing customers. Projects are in various stages of design and construction to provide temporary and permanent power to residential and commercial customers in Palo Alto. Communications System Improvements (EL-89031) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $7,106 $287,759 Utilities NA Recurring Project Status: This project installs copper wire cable systems, high frequency coaxial cable, fiber optic cable, and related equipment to provide communications services for traffic signal coordination, telephone links, computer data transmission, and the Electric Supervisory Control and Data Acquisition (SCADA) system. Staff is assessing the needs to upgrade the communication lines between substations Electric Fund Projects – Page 9 of 11 to facilitate the substation protection pilot wire relay replacements. The new relays utilize fiber optic communication instead of the copper wire communication lines utilized by the existing relays. Electric System Improvements (EL-98003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $ 2,072,190 $2,300,000 Utilities NA Recurring Project Status: This project consists of various projects that replace deteriorated facilities or install protective devices that improve the Electric Distribution System. Projects are in various stages of development to replace transformers, replace poles, replace overhead wires, and install protective devices to improve service reliability. Electric Utility Geographic Information System (EL- 02011) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $68,923 $365,000 Utilities NA Recurring Project Status: This project enhances the citywide Geographical Information System (GIS). The primary emphasis will be to provide a compatible user interface and estimating software, to edit and update data which will reside in the citywide GIS. Staff is working on a scope of work for an RFP to assess GIS needs for Utilities Engineering. SCADA System Upgrades (EL- 02010) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $36,231 $300,000 Utilities NA Recurring Project Status: This project upgrades the Supervisory Control and Data Acquisition (SCADA) system hardware. Staff completed upgrade of the PRISM software used for monitoring the utility substations and equipment. Smart Grid Technology Installation (EL- 11014) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $34,742 $781,766 Utilities NA Recurring Project Status: This project implements portions of the Smart Grid Road Map that can be cost effectively applied to the City's electric, gas, and water utility systems. Staff completed a Request for Electric Fund Projects – Page 10 of 11 Proposal to solicit bids to evaluate the implementation of Smart Grid technologies in Palo Alto incorporating information gathered from completed pilot projects. Substation Facility Improvements (EL-89044) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $122,389 $399,243 Utilities NA Recurring Project Status: This project makes improvements to facilities at the electric substations in Palo Alto. Staff is working on the replacement of RTU’s at Hansen Way and East Meadow Substations. Substation Protection Improvements (EL-89038) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $209,333 $731,812 Utilities NA Recurring Project Status: This project makes improvements to equipment used at electric substations to protect the substation equipment and circuits emanating from the substation from damage due to faults (i.e. short circuits) on the electric system. Staff completed the 60kV coordination study and is working on designs for replacement of current transformers that would be overloaded during faults. Staff is also working on the designs to replace the relays on the Maybell Substation feeders. Due to the size and complexity of this project, we are in the process of procuring an Engineering Consultant to do the detailed design of the equipment layout and wiring. Underground System Rebuild (EL-16001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $56,115 $400,000 Utilities NA Recurring Project Status: This project replaces underground electric equipment in areas that were originally installed underground, i.e. not part of an Underground District. Staff is working to identify areas where based on the age of the existing cables are a high priority for cable replacement. So far this includes areas in the Stanford Research Park, along Arastradero Road, and along East Bayshore Road. Upgrade Electric Estimating System Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $2,596 $128,650 Utilities NA Recurring Electric Fund Projects – Page 11 of 11 (EL-13008) Project Status: This project upgrades the existing Electric estimating software used for preparing job estimates by integrating engineering analysis, adding predefined standards and templates, and by integrating documentation, materials ordering, and work management functions. Staff completed the underground construction standards and is working on the overhead construction standards for electric installations. These standards include the design and list of materials and are incorporated into the estimating software to facilitate the preparation of project cost estimates. Fiber Optics Fund Projects – Page 1 of 1 Fiber Optics Fund Projects One-Time Projects Fiber Optic System Rebuild (FO-16000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $140,875 $2,400,000 Utilities Design Spring 2018 Project Status: This system capacity improvement project rebuilds portions of the "dark" fiber optic network around Palo Alto which. Staff has completed an audit of the existing Dark Fiber system and is working with our GIS consultant to put integrate audit data with CPAU data to allow for more accurate assessment of system improvements to address congested sections of the backbone and where additional fiber optic cables are needed to meet current and anticipated customer demand. Recurring Projects Fiber Optics Network System Improvements (FO-10001) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $267,321 $358,000 Utilities Recurring Recurring Project Status: This project provides funding to improve reliability within the fiber optic network system. Staff has completed an audit of the existing Dark Fiber system and is assessing which portions of the system need to be rebuilt to enhance reliability and operability. Fiber Optics Customer Connections (FO-10000) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $158,654 $250,000 Utilities Recurring Recurring Project Status: This project provides funding for the installation of fiber optic infrastructure for new service connections. Projects are developed as needed to meet customer requests for leasing of fibers on the Dark Fiber system. Attachment G Gas Fund Projects – Page 1 of 4 Gas Fund Projects One-Time Projects Gas Main Replacement – Project 21 (GS-11000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $6,479,163 $6,579,163 Utilities Completed Completed Project Status: This project was combined with GWR 19B & GMR 20 and replaced ABS gas mains and services. As identified in our Damage Integrity Management Program (DIMP), gas pipe made of ABS has a high replacement priority. The project involved replacing approximately 69,739 linear feet of ABS gas mains and 1,082 ABS gas services. Coordination with Public Works paving projects minimized the impact to City streets. Gas Main Replacement – Project 22 (GS-12001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $654,827 $4,142,669 Utilities Bidding Fall 2018 Project Status: This project will replace approximately 23,700 linear feet of gas mains and services along the mains on University Avenue and other streets in the Downtown North and University Park neighborhoods. The gas main on University Avenue is designed to be installed in a joint-trench with a water main to minimize construction disruption to downtown businesses. Staff is currently communicating with other departments to coordinate all improvement work on University Avenue. The IFB was significantly over the amount budgeted and the single bid was rejected. This project will be repackaged and incorporated into the University Ave project, which will bid in Fall/Winter of 2017. Gas Main Replacement Project 23 (GS-13001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $3,630,650 Utilities Design Winter 2019 Project Status: This project will fund the design and construction of replacement of approximately 22,700 linear feet of mainly PVC gas mains on various streets within the Midtown/Midtown West, Evergreen, Ventura, and Green Acres neighborhoods. A surveying contractor is collecting GPS points of above-ground utility features within the project area. The survey data will be used to update the existing Attachment H Gas Fund Projects – Page 2 of 4 basemap to increase the accuracy of the utilities information to facilitate the design of the project. Gas Main Replacement Project 24 (GS-14003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $3,740,000 Utilities Design Winter 2020 Project Status: This project will fund the design and construction of replacement of approximately 19,500 linear feet of mainly PVC gas mains on various streets including the Charleston Terrace, Green Acres, and Research Park neighborhoods. Staff will work with Purchasing Department to retain a surveying contractor to collect GPS points in the project area. The survey data to be used to update the existing basemap to increase the accuracy of the utilities information to facilitate the selection of the alignment of the new gas mains. Gas Distribution System Model (GS-14004) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $43,239 $149,500 Utilities Completed Summer 2016 Project Status: This project included the development, model installation, testing, documentation, and staff training of a natural gas distribution system model. The gas information from the Utilities GIS database was used as the basis for the development of the model. The gas model has been completed and delivered, and the contractor will now provide two years of technical support on an as-needed basis. Security at City Gas Receiving Stations (GS-15001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $15,942 $150,000 Utilities Construction Winter 2018 Project Status: This project equips the City’s four Gas Receiving Stations with video surveillance systems. This project has just started and construction is anticipated to begin in October 2016. Gas Fund Projects – Page 3 of 4 Recurring Projects Gas System, Customer Connections (GS-80017) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $1,252,556 $1,423,476 Utilities NA Recurring Project Status: This funding allows for the Gas Distribution System to be extended in order to provide gas service to new customers and augment service to customers with increased natural gas demands. Improvements include new mains, services, valves, regulators, meters, and accessories. This project upgrades infrastructure to provide gas service connections to new customers, meet changes in existing customer service demands, and respond to changes in gas service requirements due to new development or redevelopment. This project is funded partially from reimbursements by customers. System Extensions – Unreimbursed (GS-03009) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $72,200 $327,190 Utilities NA Recurring Project Status: This funding allows for the replacement of existing infrastructure of the Gas Distribution System. This project will ensure continuous gas service to utility customers. Improvements include as- needed replacement of existing main sections, services, valves, regulators, meters, and accessories. This project will capture non-reimbursed capital assets installed by staff. Gas Distribution System Improvements (GS-11002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $201,082 $375,627 Utilities NA Recurring Project Status: This project provides funding for Gas Distribution System improvements. Typical activities include: increasing distribution system capacity for load growth, replacing deteriorated capital facilities, reconfiguring/adding to the system to improve service reliability, conducting research related to performance of the gas distribution system or its various components, and making general improvements to the system. The City must continuously evaluate service reliability needs and make improvements to the system to maintain top level service to City customers and to minimize potential economic losses due to service interruptions. Gas Fund Projects – Page 4 of 4 Gas Equipment and Tool (GS-13002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $47,763 $170,106 Utilities NA Recurring Project Status: This project funds the purchase of polyethylene (PE) fusion equipment and tools, directional boring/locating equipment and tools, and general shop equipment and tools. These equipment need to be upgraded on an annual basis to safely operate and maintain a natural gas distribution system and to ensure operators’ safety and productivity. Gas Meters and Regulators (GS-80019) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $42,872 $659,957 Utilities NA Recurring Project Status: This project provides replacement of the existing meters and regulators for approximately 2,000 meter sets per year. The exchange frequency is every 10 years for large (630 cubic feet per hour and larger) meters and every 17 to 20 years for smaller meters. The meter replacement program ensures the accuracy of gas consumption measurement, reduces possible revenue loss due to under-registered gas, and provides customers with accurate monthly bills. Refuse Fund Projects – Page 1 of 1 Refuse Fund Projects One-Time Projects Household Hazardous Waste Station Improvements (RF-16001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $189,480 $321,186 Public Works Completed December 2016 Project Status: This project completed improvements to the City’s Household Hazardous Waste Station located at 2501 Embarcadero Way (Regional Water Quality Control Plant). The main scope of work included installation of a metal canopy over part of the station as well as minor improvements that added storage capacity and lighting to the station. The improvements make the station safer for receiving and unloading waste during the rainy season as well as provide additional facility storage needs. Recurring Projects None Attachment I Storm Drain Fund Projects – page 1 of 2 Storm Drain Projects One-Time Projects Channing Avenue/Lincoln Avenue Storm Drain Improvements (SD-11101) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $4,308,429 $7,676,275 Public Works Completed Winter 2016 Project Status: This project involved the installation of 5,800 linear feet of 36-inch to 60-inch diameter storm drain along Channing and Lincoln Avenues over three project phases to increase drainage system capacity. This project will improve drainage system performance in the Duveneck-St Francis, Walnut Grove, Community Center, SOFA and Professorville neighborhoods by conveying storm runoff more efficiently to the San Francisquito Creek pump station. The final project phase, along Lincoln Avenue between Middlefield Road and Alma Street, was completed in February 2017. Matadero Creek Storm Water Pump Station and Trunk Line Improvements (SD-13003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $317,356 $6,490,072 Public Works Construction Fall 2017 Project Status: This project includes capacity upgrades to the Matadero Creek Storm Water Pump Station, which serves a low-lying 1200-acre area of southeastern Palo Alto. Upgrades to the pump station will allow storm runoff to be pumped into Matadero Creek regardless of the creek level, improving drainage system performance in the Midtown and Palo Verde neighborhoods. Due to limited budget the project was phased. Work within the Matadero Creek Storm Water Pump Station is currently under construction. The trunk line improvements will be completed as a separate project in 2019. Recurring Projects Storm Drain System Replacement And Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $274,567 $2,261,511 Public Works NA Recurring Project Status: This recurring project consists of annual replacement and rehabilitation projects that maintain Attachment J Storm Drain Fund Projects – page 2 of 2 Rehabilitation (SD-06101) the integrity of the storm drain system, including the replacement or rehabilitation of deteriorated storm drain pipes, manholes, and storm drain inlets. The scope for FY 2017 includes the design and installation of fiber optic connections to all seven storm water pump stations to improve communications and monitoring capabilities between the stations and the centralized control center at the Water Quality Control Plant, which will be completed by fall 2017. A separate project is to inspect a 6-ft by 6-ft box culvert located over Oregon Expressway during the dry summer months. Through the inspection staff will determine the cause of minor leaks and determine the corrective action to prevent future leaks. Wastewater Collection Fund Projects – Page 1 of 4 Wastewater Collection Fund Projects One-Time Projects Wastewater Collection System Rehabilitation / Augmentation Project 23 (WC- 10002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,908,231 $2,232,484 Utilities Completed Winter 2017 Project Status: This construction project was combined with Project 22 (WC-09001). The funding for both projects is for replacement and/or rehabilitation of approximately 33,497 linear feet of sanitary sewer mains of various sizes, 554 sewer laterals, and 102 sewer manholes. The project included various streets in the Crescent Park and Oregon Ave Areas with some of the work in non-contiguous areas by the Baylands Ranger Station and Baylands Interpretive Center. Wastewater Collection System Rehabilitation / Augmentation Project 24 (WC- 11000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,614,990 $3,119,806 Utilities Construction Summer 2017 Project Status: This construction project was combined with Project 25 and 26 (WC-12001; WC-13001). The funding for all three projects is for replacement and/or rehabilitation of approximately 42,398 linear feet of sanitary sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes. The project includes various streets in the University South, Professorville and Old Palo Alto neighborhoods. The existing sewer service laterals and cleanouts will be replaced with new 4” High Density Polyethylene (HDPE) service laterals and cleanouts. All new service laterals will be installed from the new sewer main (usually located in the street) to the new sewer cleanouts (located in the City’s right-of-way, usually in a planting strip or behind the sidewalk). Project construction is about 90% complete. Wastewater Collection System Rehabilitation / Augmentation Project 25 (WC- Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,359,842 $3,211,998 Utilities Construction Summer 2017 Project Status: This construction project was combined with Project 24 and 26 (WC-11001; WC-13001). The funding for all three projects is for replacement and/or rehabilitation of approximately 42,398 linear feet of sanitary sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes. The project includes various Attachment K Wastewater Collection Fund Projects – Page 2 of 4 12001) streets in the University South, Professorville and Old Palo Alto neighborhoods. The existing sewer service laterals and cleanouts will be replaced with new 4” High Density Polyethylene (HDPE) service laterals and cleanouts. All new service laterals will be installed from the new sewer main (usually located in the street) to the new sewer cleanouts (located in the City’s right-of-way, usually in a planting strip or behind the sidewalk). Project construction is about 90% complete. Wastewater Collection System Rehabilitation / Augmentation Project 26 (WC- 13001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,209,446 $3,309,999 Utilities Construction Summer 2017 Project Status: This construction project was combined with Project 24 and 25 (WC-11001; WC-12001). The funding for all three projects is for replacement and/or rehabilitation of approximately 42,398 linear feet of sanitary sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes. The project includes various streets in the University South, Professorville and Old Palo Alto neighborhoods. The existing sewer service laterals and cleanouts will be replaced with new 4” High Density Polyethylene (HDPE) service laterals and cleanouts. All new service laterals will be installed from the new sewer main (usually located in the street) to the new sewer cleanouts (located in the City’s right-of-way, usually in a planting strip or behind the sidewalk). Project construction is about 90% complete. Wastewater Collection System Rehabilitation / Augmentation Project 27 (WC- 14001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $307,141 $3,409,999 Utilities Construction Summer 2017 Project Status: The funding will replace 16,859 linear feet of sanitary sewer mains of various sizes on various streets including areas in North Palo Alto and Embarcadero Road. The main and lateral replacement work will reduce inflow of rainfall and ground water into the collection system. Priority was given to areas identified by Public Works as targeted work zones ensuring infrastructure coordination among different City departments. Project construction is about 85% complete. Wastewater Collection System Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $5,513,000 Utilities Pre-Design Winter 2018 Wastewater Collection Fund Projects – Page 3 of 4 Rehabilitation / Augmentation Project 28 (WC- 15001) Project Status: This project will fund the design and construction of high priority wastewater main and lateral replacement work to reduce inflow of rainfall and ground water into the collection system. The scope is to replace approximately 21,900 linear feet of wastewater mains including Oregon Avenue and a large section in the Charleston Meadows neighborhood. Staff is currently updating the existing basemap to increase the accuracy of the utilities information to aid the design of the project. Wastewater Collection System Rehabilitation / Augmentation Project 29 (WC- 16001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $3,606,339 Utilities Study Winter 2019 Project Status: This project will fund the design and construction of replacement of approximately 14,500 linear feet of wastewater mains including Maddux Drive and a section in the Ventura neighborhood. A surveying contractor is collecting GPS points of above-ground utility features within the project area. The survey data will be used to update the existing basemap to increase the accuracy of the utilities information to facilitate the design of the project. Recurring Projects Sewer System, Customer Connections (WC-80020) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $ 357,560 $601,439 Utilities NA Recurring Project Status: This project provides for the installation of sewer lateral connections and additions or extensions of existing mains to serve new customers and to respond to changes in sewer requirements due to redevelopment. Old existing non-plastic sewer laterals with condition deficiencies per Utilities Operations’ criteria are required to be replaced. Other Revenues includes customer connection and capacity fees for connecting to the wastewater collection system. Sewer Lateral/Manhole Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Wastewater Collection Fund Projects – Page 4 of 4 Rehabilitation and Replacement (WC-99013) $ 220,455 $763,189 Utilities NA Recurring Project Status: This project will replace defective sewer laterals, cleanouts, manholes, install backwater devices, and purchase equipment to support these activities in order to maintain the Wastewater Collection System. Information collected during routine annual maintenance activities is used to prioritize work. The work performed will help reduce both the backflow of sewage onto private property and the City's treatment expenses. This project also cleans and video-inspect sewer collection mains and laterals as necessary. Wastewater General Equipment and Tools (WC- 13002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $50,000 $50,000 Utilities NA Recurring Project Status: This funding allows for the acquisition of new fusion equipment and other associated tools. The equipment is used to fuse together pipe joints in the City's wastewater collection system. As the equipment ages, the quality of the fusion joints begins to decline, and the operators must spend more time scraping, aligning, and fusing construction joints. In order to maintain high quality standards for the installation of City's wastewater collection mains, along with the associated service standards and worker safety and productivity measures, equipment and tools require continuous upgrades. Wastewater System Improvements (WC-15002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $ 11,266 $292,567 Utilities NA Recurring Project Status: This project provides funding as needed to improve the Wastewater Collection System. Typical activities include: increasing system capacity for growth, flow monitoring, hydraulic modeling and system analysis, load simulations, asset management analysis and assessment, system inflow/infiltration analysis, and sanitary sewer overflow monitoring and reduction. Mainline sewer backups and overflows into homes and businesses are costly and create a health risk. Reducing the losses associated with these backup claims requires a continuous evaluation of system needs and making improvements to maintain a high level of service. Wastewater Treatment Fund Projects – Page 1 of 3 Wastewater Treatment Fund Projects One-Time Projects New Dewatering and Loadout Facility (WQ-14001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,649,546 $27,548,060 Public Works Construction Fall 2019 Project Status: This project will provide a new sludge dewatering facility and truck loadout to retire existing dewatering equipment and sewage sludge incinerators. Design is complete and construction began in May 2017. Loan approval and Council construction approval took place in April 2017. A State low-interest loan is being finalized in June 2017. New Laboratory and Environmental Services Building (WQ-14002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $18,273,867 Public Works Planning Spring 2022 Project Status: This project will replace the existing wastewater treatment plant laboratory and environmental services offices, consolidating staff from four separate buildings and providing a larger, updated laboratory. Staff is pursuing a State low-interest loan or bond for the project’s construction stage. Plant Master Plan (LRFP) (WQ-10001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,855,180 $6,529,122 Public Works On going Summer 2017 Project Status: This project funds the ongoing program management support for major capital projects. Current tasks include pursuing State low-interest loans for multiple projects and updating partner agreements. Fixed Film Reactor Rehabilitation (WQ-14004) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $19,381,018 Public Works Planning Winter 2020 Project Status: This project will replace the fixed film reactors at the wastewater treatment plant. The reactors came online in 1980, and both core structural and process components need replacement. The Attachment L Wastewater Treatment Fund Projects – Page 2 of 3 fixed film reactors provide biological treatment which helps the City to comply with discharge permit limits. Staff is pursuing a State low-interest loan or bond for the project’s construction stage. New Anaerobic Digesters to Replace Incinerators (WQ-16001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $5,953,386 Public Works Planning On hold Project Status: Anaerobic digesters were put on hold due to high cost of anaerobic digesters with thermal hydrolysis. Staff will re-evaluate long-term solids treatment options after completion of the sludge dewatering and truck loadout facility, with key alternatives to include emerging technologies such as pyrolysis and gasification. Evaluation will also include other anaerobic digestion options producing a Class B sludge. Primary Sedimentation Tank Rehabilitation (WQ-14003) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $7,633,962 Public Works Planning Winter 2020 Project Status: This project will provide new protective coatings on each of the four concrete primary sedimentation tanks and replacement of worn rotating parts and equipment. The primary tanks at the wastewater treatment plant were installed in 1972; this recoating project will extend the concrete life by another 30 years. Staff is pursuing a State low-interest loan or bond for the project’s construction stage. Recurring Projects Facility Condition Assessment and Retrofit (WQ-04011) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $288,472 $2,508,221 Public Works NA Recurring Project Status: This project funds structural condition assessment and the construction of repairs and retrofits once issues are identified. Construction of two projects, Meter Station Rehabilitation and Aeration Basin Gate Replacement, began in early 2017. Wastewater Treatment Fund Projects – Page 3 of 3 Plant Equipment Replacement (WQ-80021) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $1,028,468 $3,571,655 Public Works NA Recurring Project Status: This project replaces plant equipment as necessary to maintain treatment reliability and ancillary facilities to maintain existing infrastructure. Construction of the Old Pumping Plant Rehabilitation project began in early 2017. The project replaces obsolete raw sewage pumps, valves, and a flowmeter. System Flow Meters (WQ-80022) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $0 $162,683 Public Works NA Recurring Project Status: This project replaces the large diameter flow meters built into the wastewater treatment system on sewers, pipes, and water lines. The meters measure the flow of wastewater and provide data for accurate partner billing, process control, and regulatory reporting. A raw sewage flowmeter damaged by flooding was replaced in May 2017. Water Fund Projects – Page 1 of 6 Water Fund Projects One-Time Projects Water Recycling Facilities (WS-07001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 705,477 $ 1,540,491 Utilities Study Fall 2017 Project Status: This project funds a consultant to prepare the environmental impact report for an expansion of the existing recycled water delivery system to serve customers in the City. The pipeline will primarily access the Stanford Research Park and provide an alternative supply source of 1,000 AFY (acre feet per year). The environmental impact report is complete. The next phase of the project is to draft a business plan, which will be part of a larger recycled water strategic plan. This plan will be 90% funded by Santa Clara Valley Water District. Seismic Water System Upgrades (WS- 09000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 1,786,924 $ 6,121,232 Utilities Construction Summer 2017 Project Status: This project includes seismic upgrades at the Montebello, Mayfield, Corte Madera, Park, Boronda, and Dahl Reservoirs in compliance with the American Society of Civil Engineers (ASCE 7) seismic codes. Work at the steel tank sites includes the installation of new concrete footings, anchor chairs and tie-downs, installation of seismic shut off valves and control valves, flexible joints at the inlet/outlet piping connections, relocation of various inlet and outlet piping, backup power supplies, and reinforcement and/or replacement of interior tank columns. Seismic upgrade work at the Mayfield Reservoir was completed in summer 2013 and work on the Boronda Reservoir was completed in summer of 2016. All remaining reservoirs were to be seismically upgraded as part of the Seismic Upgrade of 4 Steel Tanks and 3 Turnouts Project. However, during construction at the Montebello Reservoir, it was found that the existing roof, support columns and support beams, and floor coating needed total replacement due to their poor condition. Given that all 4 tanks were constructed at the same time, staff assumes that the remaining 3 tanks are in the same condition. In order to determine the most efficient way to upgrade and/or replace the remaining 3 reservoirs, upgrade work at the Corte Madera, Park and Dahl Reservoirs has been removed from the construction contract. The City is currently under contract with an engineering Attachment M Water Fund Projects – Page 2 of 6 consultant to study the water system as a whole and make recommendations for upgrades and/or improvements. Water Regulation Station Improvements (WS-07000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 1,269,071 $ 1,757,675 Utilities Construction Fall 2017 Project Status: This project includes seismic upgrades, piping improvements and other various upgrades to increase the structural reliability of three of the City’s turnouts with SFPUC. Work under this project was included in the Seismic Upgrade of 4 Steel Tanks and 3 Turnouts’ Project. The turnout portion of the project is underway and the Arastradero and Page Mill turnouts are scheduled to be completed by Fall 2017. Due to multiple existing issues at the California Turnout, upgrade work at this facility has been removed from the contract and will be re-evaluated as part of a Water Configuration Study that is currently underway. Water Reservoir Coating Improvements (WS-08001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 1,148,559 $ 2,534,370 Utilities Construction Spring 2017 Project Status: This project includes the recoating of 4 steel tanks. Work under this project was included in the Seismic Upgrade of 4 Steel Tanks and 3 Turnouts Project. Once construction started, it was found that the Montebello Reservoir was in very poor condition. Due to escalating costs associated with roof replacement, staff decided to complete construction of the Montebello Reservoir and re-evaluate the remaining 3 tanks for replacement. Coating work at the 3 remaining steel tanks (Dahl, Park and Corte Madera Reservoirs) was removed from the construction contract. Water System Master Plan (WS-15004) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 298,212 $ 500,000 Utilities Completed Spring 2017 Project Status: The primary objective of the 2015 Water System Master Plan was to identify and present capital improvements and replacement rates required to ensure optimal reliability levels of service to the existing distribution and transmission systems. Further, the Plan serves as a guide for long-range capital improvement planning to ensure the community has a reliable water delivery system for years to come. Water Fund Projects – Page 3 of 6 The scope of work for this project entailed seismic evaluation of the water transmission system, condition assessment of both transmission and distribution systems, optimal replacement and/or rehabilitation rates, and construction methods based on pipe material, coupled with a master operations and maintenance plan. The Master Plan will integrate with the City's existing asset management GIS platform in order to establish a strategic capital improvement plan which stabilizes water rates. Water Main Replacement – Project 25 (WS- 11000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 5,142,500 $ 5,445,069 Utilities Completed Fall 2016 Project Status: This project provided installation of approximately 11,869 linear feet of new High Density Polyethylene (HDPE) water mains, 232 new HDPE water services, and 15 new fire hydrants within the City limits. The project replaced mains and services on various streets, including streets in University South, Community Center, and the Leland Manor/Garland subdivisions. Water Main Replacement – Project 26 (WS- 12001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $ 134,437 $ 6,020,194 Utilities Construction Fall 2018 Project Status: The design of this project was completed and project was advertised for bid in April 2017. Approximately 11,000 linear feet of aging water mains and services along the mains on Hawthorne Avenue, Everett Avenue, Byron Street, Hamilton Avenue, and Oregon Avenue will be replaced to ensure reliable water services for the City of Palo Alto residents and customers. Water Main Replacement Project 27 (WS-13001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $ 6,816,781 Utilities Design Winter 2019 Project Status: This project will replace approximately 9,600 linear feet of structurally deficient, aging, or corroded water mains and services along the mains on University Avenue, Sand Hill Road and Oak Creek Drive. The water main on University Avenue is designed to be installed in a joint-trench with a gas main to minimize construction disruption to downtown businesses. Staff is currently communicating with other departments to coordinate all improvement work on University Avenue. A surveying contractor collected GPS points of above-ground utility features on other streets within this project. The survey data was used to update the existing basemap to increase the accuracy of the utilities information to facilitate the Water Fund Projects – Page 4 of 6 selection of the alignment of the new water mains. Water Main Replacement Project 28 (WS-14001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $ 6,436,177 Utilities Design Winter 2020 Project Status: This project will replace approximately 13,500 linear feet of structurally deficient or aging water mains and services along the mains on Edgewood Drive, Patricia Lane, Jackson Drive, Rhodes Drive, Greer Road, Matadero Avenue and adjacent streets, El Camino Real, Wilkie Way and Dinah’s Court. Staff will work with Purchasing Department to retain a surveying contractor to collect GPS points in the project area. The survey data to be used to update the existing basemap to increase the accuracy of the utilities information to facilitate the selection of the alignment of the new water mains. Recurring Projects Water System, Customer Connections (WS-80013) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $ 816,983 $ 690,000 Utilities NA Recurring Project Status: This project allows for improvements that include new main extensions, valves, domestic services, meters on upgraded services, backflow devices, fire services, and fire hydrants. System extensions are required to provide service to new customers and to serve existing customers requesting expanded service. Water Distribution System Improvements (WS-11003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $ 79,700 $ 865,582 Utilities NA Recurring Project Status: This project provides funds as needed to improve water distribution system deliverability and reliability. Typical activities include: installing restraining joints at critical pipelines and bridge crossings, increasing the size of inadequate facilities, system leakage surveys, network modeling, and fire flow studies or other system improvements as required. Continuous evaluation of system needs and making required improvements is necessary to maintain adequate quantities of quality water, meeting Water Fund Projects – Page 5 of 6 local, state, and federal safe drinking water standards. Water General Equipment/Tools (WS-13002) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $ 9,315 $ 70,685 Utilities NA Recurring Project Status: This project allows for the acquisition of new equipment and tools, the replacement of existing fusion equipment, and other associated tools. The fusion equipment is used to fuse together pipe joints in the City's water distribution system. Equipment and tools are required to be upgraded on an annual basis to maintain high quality standards for the installation of the City's water distribution mains, along with the associated service standards and worker safety and productivity measures. Water Meters (WS-80015) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $ 315,258 $ 817,092 Utilities NA Recurring Project Status: This project allows for the purchase of meters for new customers, upgrading meters for current customers, installing meter bypasses, and replacing obsolete meters that are no longer repairable. This funding also allows for annual testing and calibration of selected meters to maintain meter accuracy and reliability. Water Service Hydrant Replacement (WS-80014) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $ 355,048 $ 400,000 Utilities NA Recurring Project Status: This project replaces system control valves, deteriorated galvanized service lines, and fire hydrant valves/assemblies based on Fire Department flow testing results; upgrades fire hydrants in main replacement project areas; and replaces existing undersized or deteriorated copper water services to maintain a high water quality standard for Palo Alto’s water supplies. Water System Supply Improvements (WS-11004) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $ 62,382 $ 256,700 Utilities NA Recurring Project Status: This project provides funding to continually evaluate and improve the City’s water Water Fund Projects – Page 6 of 6 distribution system on an as-needed basis. Typical activities performed under this project include: piping modifications, equipment replacements associated with water delivery, Supervisory Control software upgrades, system modifications for water system quality compliance, conditional assessment of the reliability of transmission mains, and security system installations. The water system includes the connection facilities between the City’s and the San Francisco Public Utility Commission’s pipelines, emergency water wells within the City, pumping stations, water reservoirs, and pipelines. In addition, this project will provide funding for a Geotechnical Investigation and Assessment of the Existing Subgrade of the Mayfield Reservoir. During routine maintenance checks, it was found that multiple cracks had formed on the floor and side walls of the reservoir. The City has contracted with a geotechnical engineer to try and determine why the cracks are developing and how to resolve the issue. Water, Gas, Wastewater Utility GIS Data (WS-02014) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $ 206,770 $ 366,025 Utilities NA Recurring Project Status: This project covers the annual support and maintenance contract to improve the Utilities staff’s ability to use the Geographic Information System (GIS). Some examples of other GIS activities include enhancing existing applications and user interface, facilitating data transfer with modeling software to perform engineering analysis and master planning, using GIS data to develop and prioritize capital improvement projects, and producing customized utility map books for field crews and on-call personnel to meet their specific needs. http://bit.ly/bcapplications Influence the Future of Your Community We are currently recruiting for the newly formed: Storm Water Management Oversight Committee 3 terms ending May 31, 2019 4 terms ending May 31, 2021 (Term appointments made by City Council) Deadline: August 1, 2017 at 4:30pm APPLICATIONS AVAILABLE ONLINE: http://bit.ly/bcapplications Questions? Contact the City Clerk’s Office at (650) 329‐2571 or David.Carnahan@CityofPaloAlto.org